HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 11/10/2020FINANCE AND HUMAN RESOURCES COMMITTEE
November 10, 2020 - 3:30 PM
In an effort to prevent the spread of COVID-19 and in accordance with Governor
Newsom's Executive Order N-25-20 and N-29-20, this meeting
is being conducted via teleconference.
There will be no public location for attending this meeting in person. Members of the
public may listen and provide public comment telephonically.
Anyone wishing to join the meeting may do so using the following information:
DIAL: 1-209-425-5876 and enter CONFERENCE ID: 212 096 821#
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AGENDA
CALL TO ORDER
PLEDGE OF ALLEGIANCE
PUBLIC COMMENTS
NEW BUSINESS
1.Approve the October 13, 2020 Finance and Human Resources Committee Meeting
Minutes
2.Review Auditor's Communication Letter with those Charged with Governance
3.Review Draft Popular Annual Financial Report for Year Ended June 30, 2020
ADJOURN
PLEASE NOTE:
Pursuant to Government Code Section 54954.2(a), any request for a disability-related modification or
accommodation, including auxiliary aids or services, that is sought in order to participate in the above-
agendized public meeting should be directed to the District Clerk at (909) 885-4900 at least 72 hours prior
to said meeting.
Page 1 of 2
Minutes 10/13/20 cmk
Subject to Approval
EAST VALLEY WATER DISTRICT October 13, 2020
FINANCE AND HUMAN RESOURCES COMMITTEE MEETING
MINUTES
Ms. Koide called the meeting to order at 3:30 p.m. and Director Morales led the flag
salute.
PRESENT: Directors: Goodrich, Morales
ABSENT: None
STAFF: Brian Tompkins, Chief Financial Officer; Ryan Ritualo, Information
Technology Manager; Rudy Guerrero, Accountant; Christi Koide,
Senior Administrative Assistant
GUEST(s): Members of the public
PUBLIC COMMENTS
The Senior Administrative Assistant declared the public participation section of the
meeting open at 3:31 p.m.
There being no written or verbal comments, the public participation section was closed.
APPROVE THE JUNE 9, 2020 AND AUGUST 11, 2020 FINANCE AND HUMAN RESOURCES
COMMITTEE MEETING MINUTES
M/S/C (Morales-Goodrich) by unanimous roll call vote to approve the June 9,
2020 and August 11, 2020 Finance and Human Resources Committee meeting minutes
as submitted.
REVIEW TRANSFER OF UNCLAIMED FUNDS INTO THE DISTRICT GENERAL FUND
The Chief Financial Officer stated the criteria and procedures to transfer old
outstanding checks issued to customers, that have not been cashed, into the District’s
general fund.
Directors Morales and Goodrich stated they are pleased that staff is going above and
beyond to contact previous District customers, to inform them of their outstanding
checks.
Information only.
Page 2 of 2
Minutes 10/13/20 cmk
ADJOURN
The meeting adjourned at 3:38 p.m.
James Morales, Jr. Phillip R. Goodrich
Governing Board Member Governing Board Member
S TAF F R E P ORT
Agenda Item #2.
Meeting Date: November 10, 2020
Disc ussion Item
To: F I NANC E AND HUMAN R ES O UR C ES C O MMI T T EE
F rom: C hief F inancial O ffic er
Subject: R eview Auditor's C ommunic ation Letter with thos e C harged with G overnance
R E C OMME N D AT ION:
S taff rec ommend s that the F inance and Human R esources C ommittee (C o mmittee) review the Auditor
C ommunic ation Letter from C lifton Lars o n Allen L L P (C LA) and the d raft C omprehensive Annual F inanc ial
R eport (C AF R ) for fisc al year 2019-20.
B AC KG R OUN D / AN ALYS IS:
O n June 9, 2020 C L A met with the C ommittee to review the auditing services to be provid ed during the audit
for fisc al year ended June 30, 2020.
In ad d ition, C L A des c rib ed the p ro cedures that were to be used to perform their aud it in ac cordance with
generally acc epted auditing standards (G AAS ).
Now that the audit is complete the final requirement under S tatement of Auditing S tandards 114 (S AS 114) is
for the auditors to c ommunicate to those charged with governance:
T heir views about qualitative aspects of the entity's significant accounting practices, including
accounting policies, accounting estimates, and financial statement disclosures
S ignificant difficulties, if any, encountered during the audit
U ncorrected misstatements, other than those the auditor believes are trivial, if any
D isagreements with management, if any
O ther findings or issues, if any, arising from the audit that are, in the auditor's professional
judgement, significant and relevant to those charged with governance regarding their oversight of the
financial reporting process
Als o attac hed is a preliminary d raft o f the 2019-20 C AF R for the C ommittee’s review. T he 2019-20 C AF R
will receive an unmodified opinion from C LA. An unmodified opinion indicates the financial data of the Dis tric t
is presented fairly acc o rd ing to G AAP. In additio n, the Dis tric t will ap p ly fo r the G overnment F inance
O ffic ers As s o ciatio n (G F O A), C ertific ate o f Ac hievement for Exc ellenc e in F inanc ial R eporting to ens ure the
Dis tric t’s C AF R o nc e again meets high s tand ard s in governmental ac counting and financial rep o rting. Eas t
Valley Water District has rec eived the G F O A award for s even c onsec utive years and the prior year certificate is
inc luded in the 2019-20 C AF R report.
AG E N C Y G O ALS AN D O B J E C T IVE S :
G oal and O bjectives I I - Maintain a C ommitment to S ustainability, Transparency, and Acc ountability
a) P rac tic e Trans parent and Acc ountable F is cal Management
R E VIE W B Y O T HE R S :
T his agenda item has been reviewed by the F inanc e Department.
F IS C AL IMPAC T
T here is no fisc al impac t as s ociated with this agenda item.
ATTAC H M EN TS:
Description Type
Draft C AF R 2020 Backup Material
Board of Directors
East Valley Water District
Highland, California
We have audited the financial statements of the East Valley Water District (the District) as of and for the
year ended June 30, 2020, and have issued our report thereon dated November 10, 2020. We have
previously communicated to you information about our responsibilities under auditing standards
generally accepted in the United States of America, Government Auditing Standards, and Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance), as well as certain information related to
the planned scope and timing of our audit. Professional standards also require that we communicate to
you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by East Valley Water District are described in Note 1 to the financial
statements.
No new accounting policies were adopted and the application of existing policies was not changed
during 2019-20.
We noted no transactions entered into by the entity during the year for which there is a lack of
authoritative guidance or consensus. All significant transactions have been recognized in the financial
statements in the proper period.
Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their
significance to the financial statements and because of the possibility that future events affecting them
may differ significantly from those expected. The most sensitive accounting estimates affecting the
financial statements were:
Management’s estimate of the useful lives of its capital assets and the related period of
depreciation which is based on historic knowledge of the assets and the frequency with which
capital assets must be replaced;
Management’s estimate of the fair value of investments based upon relevant information about
similar investments held in managed portfolios and used to determine the probable market
value of the investments;
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Board of Directors
East Valley Water District
Highland, California
Page 2
Management’s estimate of pension liabilities and postemployment benefits based upon actuarial
assumptions; and
Management’s estimate of unbilled revenues which is based on the revenue cycle of the water
system and expected usage of water using historic information.
We evaluated the key factors and assumptions used to develop the sensitive accounting estimates
described above in determining that they are reasonable in relation to the financial statements taken as
a whole.
Financial statement disclosures
Certain financial statement disclosures are particularly sensitive because of their significance to
financial statement users. There were no particularly sensitive financial statement disclosures.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Uncorrected Misstatements
Professional standards require us to accumulate all misstatements identified during the audit, other
than those that are clearly trivial, and communicate them to the appropriate level of management.
Management did not identify and we did not notify them of any uncorrected financial statement
misstatements.
Corrected Misstatements
Management did not identify and we did not notify them of any financial statement misstatements
detected as a result of audit procedures.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditors’ report. No such disagreements arose during our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated November 10, 2020 .
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation
involves application of an accounting principle to the entity’s financial statements or a determination of
the type of auditors’ opinion that may be expressed on those statements, our professional standards
require the consulting accountant to check with us to determine that the consultant has all the relevant
facts. To our knowledge, there were no such consultations with other accountants.
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Board of Directors
East Valley Water District
Highland, California
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Significant Issues Discussed With Management Prior To Engagement
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to engagement as the entity’s auditors. However,
these discussions occurred in the normal course of our professional relationship and our responses
were not a condition to our engagement.
Other Information in Documents Containing Audited Financial Statements
With respect to the required supplementary information (RSI) accompanying the financial statements,
we made certain inquiries of management about the methods of preparing the RSI, including whether
the RSI has been measured and presented in accordance with prescribed guidelines, and whether
there were any significant assumptions or interpretations underlying the measurement or presentation
of the RSI. We compared the RSI for consistency with management’s responses to the foregoing
inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic
financial statements. Because these limited procedures do not provide sufficient evidence, we did not
express an opinion or provide any assurance on the RSI.
With respect to the schedule of expenditures of federal awards (SEFA) accompanying the financial
statements, on which we were engaged to report in relation to the financial statements as a whole, we
made certain inquiries of management and evaluated the form, content, and methods of preparing the
SEFA to determine that the SEFA complies with the requirements of the Uniform Guidance, the method
of preparing it has not changed from the prior period or the reasons for such changes, and the SEFA is
appropriate and complete in relation to our audit of the financial statements. We compared and
reconciled the SEFA to the underlying accounting records used to prepare the financial statements or
to the financial statements themselves. We have issued our report thereon dated November 10, 2020.
With respect to the supplementary information accompanying the financial statements, on which we
were engaged to report in relation to the financial statements as a whole, we made certain inquiries of
management and evaluated the form, content, and methods of preparing the information to determine
that the information complies with accounting principles generally accepted in the United States of
America, the method of preparing it has not changed from the prior period or the reasons for such
changes, and the information is appropriate and complete in relation to our audit of the financial
statements. We compared and reconciled the supplementary information to the underlying accounting
records used to prepare the financial statements or to the financial statements themselves. We have
issued our report thereon dated November 10, 2020.
The introductory and statistical sections accompanying the financial statements, which is the
responsibility of management, was prepared for purposes of additional analysis and is not a required
part of the financial statements. Such information was not subjected to the auditing procedures applied
in the audit of the financial statements, and, accordingly, we did not express an opinion or provide any
assurance on it.
This communication is intended solely for the information and use of the Board of Directors and
management of East Valley Water District and is not intended to be, and should not be, used by
anyone other than these specified parties.
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Board of Directors
East Valley Water District
Highland, California
Page 4
CliftonLarsonAllen LLP
Glendora, California
November 10, 2020
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Comprehensive Annual Financial Report
Fiscal Year Ended
June 30, 2020
East Valley Water District
Prepared by: Finance Department
31111 Greenspot Road
Highland, CA 92346
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2020
Table of Contents
1
Page No.
Introductory Section
Letter of Transmittal .....................................................................................................................6
Organizational Structure ............................................................................................................10
Principal Officials .......................................................................................................................11
GFOA Certificate .......................................................................................................................12
Financial Section
Independent Auditors’ Report .............................................................................................. 15-17
Management’s Discussion and Analysis .............................................................................. 18-28
Basic Financial Statements
Statement of Net Position ................................................................................................. 31-32
Statement of Revenues, Expenses, and Changes in Net Position ................................... 33-34
Statement of Cash Flows .................................................................................................. 35-36
Notes to the Basic Financial Statements .......................................................................... 37-66
Required Supplementary Information
Schedule of Proportionate Share of the Net Pension Liability ................................................68
Schedule of Contributions .......................................................................................................69
Schedule of Changes in the Net OPEB Liability .....................................................................70
Schedule of OPEB Contributions ............................................................................................71
Notes to the Required Supplementary Information .................................................................72
Supplementary Information
History and Organization ........................................................................................................76
Combining Schedule of Net Position................................................................................. 77-78
Combining Schedule of Revenues, Expenses, and Changes in Net Position .................. 79-80
Combining Schedule of Cash Flows ................................................................................. 83-84
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2020
Table of Contents
2
Page No.
Statistical Information Section
Financial Trends
Changes in Net Position by Component – Last Ten Fiscal Years .................................... 89-90
Operating Revenue by Source – Last Ten Fiscal Years .........................................................91
Water Operating Expenses – Last Ten Fiscal Years ..............................................................92
Wastewater Operating Expenses – Last Ten Fiscal Years .....................................................93
Revenue Capacity
Water Sales and Production – Last Ten Fiscal Years.............................................................94
Revenue Rates for Water – Last Ten Fiscal Years ........................................................... 95-96
Revenue Rates for Wastewater – Last Ten Fiscal Years ................................................. 97-98
Active Services by Type – Last Ten Fiscal Years ...................................................................99
Principal Customers – Current Fiscal Year and Nine Years Ago ..........................................100
Debt Capacity
Ratio of Outstanding Debt – Last Ten Fiscal Years ..............................................................101
Debt Service Coverage – Last Ten Fiscal Years ..................................................................102
Demographic Information
Demographic and Economic Statistics – Last Ten Calendar / Fiscal Years .........................103
Operating Information
Full-Time Equivalent Employees by Department – Last Ten Fiscal Years ...........................104
Operating and Capacity Indicators for Water and Wastewater – Last Ten Fiscal Years ......105
Other Information
Capacity Charge Funds ................................................................................................... 107-109
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November 10, 2020
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, 2020. This report was prepared by District staff in accordance with standards established
by the Governmental Accounting Standards Board.
The District’s management is responsible for the presented data, and the completeness and fairness of the
presentation, including the note disclosures. We believe that the report presented is accurate in all material
respects, and that the financial statements and other information are presented in a manner that enables readers
to gain a full understanding of the District’s financial activities for the year. Readers should also refer to the
Management’s Discussion and Analysis in the Financial Section of the CAFR for a detailed discussion regarding
the District’s financial condition and results of operations.
The CAFR follows the guidelines recommended by the Government Finance Officers Association (GFOA) of the
United States and Canada. In November 2020, 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 (the District) was formed on January 18, 1954, and since then, has provided retail water
service to customers in an expanding service area which now covers 30.1 square miles. The District directly serves
treated water to approximately 103,000 people in the City of Highland, the eastern portion of the City of San
Bernardino, the San Manuel Band of Mission Indians, and portions of the County of San Bernardino. In 1964, the
District began providing wastewater collection services to the same service area.
As of June 30, 2020, the District had 21,507 water connections and 19,679 wastewater connections.
Water Supply and Reliability
The District’s water supply for the year ended June 30, 2020 includes groundwater (78.2 percent), surface water
(2.4 percent), and imported water (19.4 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
East Valley Water District is located within San Bernardino County in a metropolitan area referred to as the “Inland
Empire”. Since 2011, the District’s population has grown by more than 59 percent and currently, comprised of mostly
residential and commercial customers, with no major industrial users. Large consumers remain consistent year to
year with the San Bernardino City Unified School District, Patton State Hospital, San Manuel Mission Indians, East
Highlands Ranch, and the City of Highland, forming the list of top five users.
In 2020, the average household income within the District’s service area was $47,000, approximately 21% lower
than the County of San Bernardino. Customers who reside in the City of Highland account for approximately 65%
of the District’s customer base. These customers had an average household income of $55,000, approximately
17% higher than the overall District average.
Financial Management
The District manages its resources conservatively in order to deliver safe and reliable services to its customers at
a fair and cost-effective price. It focuses on establishing fair rates, cost containment, long-term planning, maintaining
and upgrading infrastructure, and pursuing alternative source of funding. This approach has allowed the District to
undertake substantial capital improvement projects during tough economic times, while passing a series of modest
rate increases. The keys to the District’s successful financial management are the District’s Capital Improvement
and Financial Plan (CIFP), comprehensive reviews of water and wastewater rates, and the annual budget process.
The CIFP provides a comprehensive view of infrastructure investments necessary over a seven-year period to
ensure that water resources are adequate, water quality is maintained, and the water and wastewater service needs
of current and future customers are met. The CIFP is reviewed annually by the District’s Board of Directors (the
78.2%
2.4%
19.4%
Water Supply Sources
Groundwater
Surface Water
Imported
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Board) during the budget process, at which time the highest priority projects are adopted and receive authorization
for expenditure along with the District’s operating budget.
The District’s financial planning also includes the establishment and funding of reserves, and the pursuit of
alternative funding sources, both of which help reduce reliance on rates and rate increases. In recent years the
District has been very successful in pursuing project funding from the State Revolving Fund and Federal Emergency
Management Agency (FEMA), and have applied for water and energy efficiency project funding from the Bureau of
Reclamation and Edison.
Internal Control
District management is responsible for establishing a system of internal accounting controls designed to provide
reasonable assurances that assets of the District are safeguarded against losses from unauthorized use or
disposition, and theft. The District’s internal controls also ensure the proper recording of financial transactions, and
the preparation of financial statements in accordance with generally accepted accounting principles. The District’s
internal control structure is designed to provide reasonable assurance that these objectives are met. The concept
of reasonable assurance recognizes that 1) the cost of a control should not exceed the benefits likely to be derived
and 2) the valuation of costs and benefits requires estimates and judgments by management.
Budgetary Control
The District’s Board of Directors annually adopt a balanced operating and capital budget prior to the new fiscal year.
The budget authorizes expenditures and provides a basis for accountability over the District’s enterprise operations
and capital projects. Each quarter, management provides the Board with a quarterly budget review to allow Board
assessment of staff’s progress in meeting goals and objectives, and budget adjustments, if necessary, are
requested at the mid-year budget review in February.
Debt Administration
The District utilizes proceeds from long-term debt, along with reserves and contributions from the operating budget,
to finance major construction projects. Current debt consists of Revenue Bonds and loans from US Bancorp, the
State Revolving Fund, and the San Bernardino Valley Municipal Water District.
The District received a credit rating of AA- from Standard and Poor’s and Fitch when the Revenue Bonds were
issued in June 2013. This rating was affirmed by Fitch as the result of a review conducted in July 2020.
Investment Policy
The Board of Directors annually adopts an investment policy that conforms to California State Law, District
ordinances and resolutions, and the prudent person standard. The objectives of the policy are safety, liquidity, and
yield. District funds are normally invested in the State Treasurer’s Local Agency Investment Fund (LAIF), and
Federal government Treasury notes or agency obligations.
9
Audit and Financial Reporting
State law requires the District to obtain an annual audit of its financial statements by an independent Certified Public
Accountant. This year, the District’s Financial statements were audited by CliftonLarsonAllen LLP from Glendora,
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, 2019. This was the seventh year that the District has achieved this prestigious award.
To be awarded a Certificate of Achievement, a governmental entity must publish an easily readable and efficiently
organized Comprehensive Annual Financial Report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive
Annual Financial Report continues to meet the Certificate of Achievement Program’s requirements and we are
submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgements
Preparation of this report was accomplished by the combined efforts of District staff. We appreciate the dedication
and professionalism that our staff bring to the District. We would also like to thank the members of the Board of
Directors for their continued support in the planning and implementation of the financial affairs of the District.
Respectfully submitted,
John Mura
General Manager
Brian W. Tompkins
Chief Financial Officer
EAST VALLEY WATER DISTRICT
Organizational Structure
Year Ended June 30, 2020
10
EAST VALLEY WATER DISTRICT
Principal Officials
Year Ended June 30, 2020
11
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, 2020
Name Title
Elected /
Appointed Current Term
David E. Smith Chairman of the Board Elected 2015 - 2020
Phillip R. Goodrich Vice-Chairman of the Board Elected 2018 - 2022
Ronald L. Coats Governing Board Member Elected 2018 - 2022
James Morales, Jr.Governing Board Member Elected 2018 - 2022
Chris Carrillo Governing Board Member Elected 2015 - 2020
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, 2019
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EAST VALLEY WATER DISTRICT
Independent Auditor’s Report
Year Ended June 30, 2020
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EAST VALLEY WATER DISTRICT
Independent Auditor’s Report
Year Ended June 30, 2020
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EAST VALLEY WATER DISTRICT
Independent Auditor’s Report
Year Ended June 30, 2020
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EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2020
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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 and County of San Bernardino in California.
The Basic Financial Statements
East Valley Water District is a special-purpose government agency, engaged in activities that are supported
exclusively by user charges. As such, the District’s financial statements are presented in the format prescribed for
proprietary funds by the Governmental Accounting Standards Board (GASB).
The following financial statements for the year ended June 30, 2020 (2019 for comparative purposes only) consist
of three interrelated statements designed to provide the reader with relevant, understandable data about the
District’s financial condition and operating results. They are the Statement of Net Position, the Statement of
Revenues, Expenses, and Changes in Net Position, and the Statement of Cash Flows.
The Statement of Net Position presents financial information on the District’s assets, liabilities, and deferred inflow
and outflows of resources, with the difference reported as net position as of the last day of the District’s fiscal year.
Over time, increases or decreases in net position can serve as a useful indicator of whether the financial position
of the East Valley Water District is improving or deteriorating.
The Statement of Revenues, Expenses, and Changes in Net Position presents information showing how the
District’s net position changed during the most recent fiscal year. All changes in net position are reported as soon
as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows.
The Statement of Cash Flows (direct method) conveys to financial statement users how the District managed cash
resources during the year. This statement converts the change in net position presented on the Statement of
Revenues, Expenses, and Changes in Net Position into actual cash provided by or used for operations. The
Statement of Cash Flows also details how the District obtains cash through financing and investing activities, and
conversely, how cash is spent for these purposes.
Summary Financial Information and Analysis
Financial Condition
During the year ended June 30, 2020, the District’s total assets increased by $55.2 million, to $272.1 million, and
included increases to Current, Restricted, and Capital asset categories.
Current assets increased 2% to $39.5 million. The increase is almost entirely in a single line item – Due From Other
Governments. This receivable is related to a funding agreement with the California State Water Resources Control
Board (SWRCB) for the District’s Sterling Natural Resource Center (SNRC) recycled water project. The receivable
balance of $18.9 million is accumulated construction costs paid by the District but not yet reimbursed by the
SWRCB. District staff is working with staff at the SWRCB to minimize the turnaround time for reimbursement claims.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2020
19
Restricted Asset balances increased from $8.2 to $10.2 million. The increase is the result of developer capacity
fees received, primarily from a large hotel being built within the District’s service area. The nature of Restricted
Cash balances at June 30, 2020 are further detailed in Note 3 of the financial statements.
2020 2019
Current Assets 39.5$ 38.6$
Restricted Assets 10.2 8.2
Other Assets 0.3 0.3
Capital Assets - Net 222.0 169.7
Total Assets 272.0 216.8
Total Deferred Outflow of Resources 4.1 3.6
Current Liabilities 18.5 11.5
Non-Current Liabilities 121.0 85.0
Total Liabilities 139.5 96.5
Total Deferred Inflows of Resources 0.7 0.7
Net Position
Net Investment in Capital Assets 106.7 95.4
Restricted 6.7 3.5
Unrestricted 22.5 24.3
Total Net Position 135.9$ 123.2$
Capital Assets increased by $52.3 million during the 2019-20 fiscal year. This amount is a net between capital
additions of $56.9 million, less $6.6 million in charges for depreciation during the year. Capital additions during the
year were primarily construction in progress on the SNRC. A more detailed description of capital spending is in the
Capital Assets section of this analysis.
Total Deferred Outflow of Resources consists of pension contributions made after the most recent pension plan
actuarial valuation, as well as differences between projected and actual earnings on pension plan investments and
changes in assumptions. Deferred outflows increased as of June 30, 2020 because the District has adopted a plan
to increase voluntary contributions against outstanding post-employment benefit obligations.
While current assets increased by $1.0 million, current liabilities also increased by $7.0 million, the result of a
significant contractor invoice and retentions payable at year-end. The impact of these increases caused the District’s
current ratio to fall from 3.4:1 to 2.1:1. The large receivable from the SWRCB at year end also dropped the District’s
liquidity ratio from 1.6:1 at June 30, 2019, to 0.8:1 at June 30, 2020.
Non-Current Liabilities increased by $36 million, the net effect of:
• $37.9 million in new State Revolving Fund loans; less
• $2.9 million in principal payments on outstanding debt; and
• $1.0 million increase in employee post-retirement benefit obligations calculated in accordance with GASB
statements number 68 (pensions) and 75 (retiree medical).
Pensions and OPEB (Other Post Employment Benefits) are further discussed in Notes 8 and 11 of the
accompanying financial statements. Compensated absences and Long-term debt are further explained in financial
statement Notes 6 and 5, respectively.
The District’s total Net Position was $135.9 million at the end of fiscal year 2020, a $12.7 million increase compared
to the end of the previous fiscal year. Of the $135.9 million Net Position balance, $106.7 million is categorized as
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2020
20
Net Investment in Capital Assets, $6.7 million is Restricted for Capital Expansion Projects, and $22.5 million is
Unrestricted. The calculation of Net Investment in Capital Assets is included in Note 7 of the accompanying financial
statements.
Looking at longer term results, the District’s total Net Position has increased $22.9 million and $36.5 million over
five and ten year periods, respectively.
Activities and Changes in Net Position
Water Operations
California emerged from four years of severe drought in the winter of 2017 with the Governor lifting a ‘state of
emergency’ and declaring an end to the drought on April 7, 2017. The total volume of water sold by the District in
2016-17, the final year of the drought, was 16,223 acre-feet. In the ensuing 2017-18 fiscal year, consumption by
District customers reached its highest levels since 2014 when water sales increased 13% to 18,361 acre-feet, likely
because of the lifting of the state of emergency. However, though the drought had ended, conservation measures
remained, as did the District’s water budget based, tiered rates which were adopted in March 2015 and are designed
to make inefficient use of water more expensive. As a result, water consumption dropped significantly in fiscal year
2018-19 to 16,167 acre-feet.to billed as inefficient use at the District’s highest rates totaled $4.4 million.
Water sales for fiscal year 2019-20 increased slightly, 3.2% to 17,037 acre-feet, or $16.9 million in water sales
revenue. Total water produced by the District during the year was 17,596 acre feet, with the difference between
water produced and water sold of 904 acre feet being the result of District flushing programs, water use at District
facilities, and system leaks.
The COVID-19 pandemic was likely a factor in the small increase in consumption as students and many employees
within the District’s service area were asked to work from home for the last four months of the fiscal year. With
94.1% of the District’s customer accounts being residential, making up 79.1% of sales, extra time at home resulted
in more indoor water use. To accommodate this, the District Board acted to temporarily increase residential
customer water budgets, from 60 gallons per capita per day (gpcd) to 75 gallons, recognizing that custom ers
spending more time at home would result in a higher need for Tier 1 (indoor health and safety) water use. This
action gave residential customers 25% more water billed at the cheapest priced rate tier for the months April through
June.
Water System, or Meter Charge revenue increased by only 0.15% to finish at $9 million for fiscal year 2019-20.
These are fixed charges assessed to each account, and no rate adjustments were effective for these charges during
the year, so revenue was relatively the same as the prior year as was projected.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2020
21
$-
$5
$10
$15
$20
$25
$30
2016 2017 2018 2019 2020
Mi
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Water Department Operating
Revenue versus Expenses
Revenue
Expenses
Water Department operating expenses increased 3.2% to $23.2 million for fiscal year 2019-20. Overall, water
operations were affected by an increase in purchases of State water for delivery at its surface water treatment plant
to utilize a newly commissioned hydro-electric generation facility. In addition, the District increased voluntary
contributions toward post employment benefit obligations which affected costs across all programs and
departments. Specific cost fluctuations included:
• Source of Supply: purchased water costs increased 101.5% to $816 thousand for state project water
delivered to the District’s surface water treatment plant.
• Pumping: power costs for boosting water to higher pressure zones continued to decrease as water more
water production was shifted to the surface water treatment plant from wells.
• Transmission & Distribution (T&D): costs increased 22.7% because of two line items – Labor and Contract
Services. Labor increased because two field staff, previously meter reader positions, transitioned to
maintenance as the automated metering project nears completion. Contract Services increased due to a
higher number of main leaks that required assistance from on-call contractors.
Wastewater Operations
Wastewater operating revenues consist of System Charges and Treatment Charges, and Other Operating
Revenue.
System Charge rates are set by the District to cover the cost of maintaining the District’s wastewater collection
system and to cover a portion of administrative and general expenses. Treatment Charge rates are established by
the City of San Bernardino Water Department, which treats the wastewater generated by the District’s customers –
the District currently has no wastewater treatment facilities. All wastewater treatment revenues collected by the
District are directly offset by remittance payments to the City of San Bernardino Water Department, therefore,
wastewater treatment has no net effect on the District’s operating results.
Other Operating Revenue includes inspections, plan checking, and other development related fees, and also
periodic reimbursements from other public agencies or utilities for shared costs or participation in conservation
programs. In fiscal year 2018-19, Other Operating Revenue included a $453 thousand reimbursement for costs
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2020
22
incurred on a joint project, the reason prior year Other Operating Revenue were significantly higher than in the
2019-20 fiscal year.
Rate related wastewater revenue during the 2019-20 fiscal year decreased $93 thousand (0.7%), from $13.2 to
$13.1 million. This result is a net effect between an increase in system charges, and a decrease in treatment
charges.
System charges, assessed by the District for maintenance of wastewater collection mains, increased by 0.07% as
a result of an increase in water usage by commercial customers. Commercial customers, which include multi-family
residential complexes larger than three units, are billed for wastewater charges based on water consumption. The
rate charged to commercial customers is the same for all customer types at $0.55 per hundred cubic feet. As
discussed above, increased usage was generally residential, so multi-family complexes had the greatest effect on
system charge revenue.
Wastewater treatment revenues and costs, both fell 1.1% to $8.5 million in fiscal year 2019-20. As with billing for
system charges, commercial customer bills have a component based on water consumption, but the consumptions
based rates vary, based on customer types - charges to multi-family complexes being the lowest, and restaurants
and hotels being the highest due to the nature of wastewater discharged. Restaurants were forced to limit operations
with the outbreak of COVID 19, therefore, decreased treatment charge revenue from restaurants and other high
discharge businesses led to decreased wastewater treatment revenue.
Wastewater collection line maintenance costs increased by 9.5% compared to the prior year. This change is the
result of higher Labor costs as the District increase the number of full-time employees charged to the program from
two to four.
$6
$7
$8
$9
$10
$11
$12
$13
$14
$15
2016 2017 2018 2019 2020
Mi
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Wastewater Department Operating
Revenue versus Expenses
Revenue
Expenses
Shared Customer Account & Administrative Costs
Costs related to Customer Accounts (Water & Wastewater Operations) decreased $201 thousand, or 10.4%, due
primarily to the elimination of a position in the Customer Service Department and a significant reduction in the
number of costly final notices to delinquent customers delivered. The number of notices was reduced, not because
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2020
23
of a reduction in the number of delinquent customers, but because of legislation (SB998) and an Executive Order
by the Governor of California prohibiting the disconnection of delinquent customers during the COVID 19 pandemic.
Administrative and general costs for the District decreased by 1.5% to $10.6 million. The primary reasons for the
decrease were a significant reduction in engineering contract services due to completion of water and sewer master
plan updates and a transition to in-house project management with increasing staff capabilities. The District also
ended turf replacement as one of its conservation programs which significantly reduced the cost of conservation
programs.
Other significant changes in general and administrative costs included:
1. Legal Services decreased 31% as the District nears the end of negotiations to acquire shares in the North
Fork Water Company from other shareholders.
2. Insurance costs increased 25.2%; an industry wide result of the costly California wildfires in 2019.
3. Labor and Contract Services in Public Affairs increased 24.7% as a Public Affairs manager position was
created and filled, and consultants were hired to help staff update the District’s Emergency Response and
Business Continuity plans.
Non-Operating Activities
The District’s non-operating revenue of $647 thousand includes investment earnings of $525 thousand, and $122
thousand in miscellaneous income and reimbursements. Non-operating expenses is $1.58 million in interest on
District long-term obligations.
East Valley Water District Changes in Net Position
(in millions)
2020 2019
Water Revenues 26.6$ 25.5$
Water Operating Expenses (23.1) (22.5)
Wastewater Services 13.3 13.8
Wastewater Operating Expenses (13.0) (13.4)
Non-Operating Revenues 0.6 1.6
Non-Operating Expenses (1.6) (1.7)
Income Before Contributions & Special Item 2.8 3.3
Developer Contributions 3.2 0.6
Grant Funds Contributed 6.7 -
Change in Net Position 12.7 3.9
Beginning Net Position, as Previously Reported 123.2 119.3
Ending Net Position 135.9$ 123.2$
Investment earnings decreased 8.2% compared to the prior year due to the use of investible funds to prepay
contractor costs on the SNRC project, costs which are being reimbursed under a State Water Resources Control
Board (SWRCB) funding agreement. Earnings were also hampered by a decreasing interest rate paid by the
California Local Agency Investment Fund, which dropped from 2.57% to 1.47% during fiscal year 2019-20.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2020
24
Capital Contributions
Contributions received during fiscal year 2019-20 included $3.2 million in developer capacity fees, and a $6.8 million
capital grant received from the SWRCB as part of the funding agreement mentioned above.
Components of Net Position
The District is required to present its net position in three categories: Net Investment in Capital Assets, Restricted,
and Unrestricted.
Net Investment in Capital Assets
The components comprising Net Investment in Capital Assets are presented in Note 7 of the accompanying financial
statements. The balance at June 30, 2020 is $106.7 million, an increase of $11.2 million compared to June 30,
2019. The increase is the net result of the acquisition or construction of capital assets for $58 million, offset by a
$40.9 million increase in outstanding debt, and a net increase in accumulated depreciation of $5.9 million.
Restricted
Restricted Net Position consists of unexpended development impact fees which may only be appropriated by
approval of the Board of Directors for a project included in the District’s Capital Improvement Program. A summary
of the collection and use of these funds is presented as Other Information in this document.
Unrestricted
Unrestricted Net Position is the balance after amounts to be classified as Net Investment in Capital Assets or
Restricted have been determined. Unrestricted Net Position decreased $1.8 million to $22.5 million in fiscal year
2019-20.
Capital Assets
The District spent approximately $58 million for expansion or replacement of property, plant, and equipment during
the 2019-20 fiscal year. These amounts are reflected in Utility Plant, or as additions to Construction in Progress, in
the accompanying financial statements.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2020
25
Placed in Service
During the 2019-20 fiscal year, District staff, consultants, and contractors completed work on the following:
• Installed Tank Mixers at Plant 108;
• Removed and replaced perimeter fence at Plant 134;
• Replaced third complete train of filtration membranes in Plant 134;
• Rehabilitated equipment and well at Plant 39A;
• Installed 4,685 new automated meters;
• Replaced 2,526 linear feet of water main; and
• Replaced 7,530 linear feet of sewer main.
Utility Plant in Service – June 30th
(in millions)
Department 2020 2019
Water
Source of Supply 19.1$ 18.9$
Pumping 14.6 14.4
Transmission & Distribution 101.8 100.1
Treatment 28.5 28.2
Wastewater
Collection Lines 27.6 27.5
General
Buildings & Improvements 19.1 18.1
Equipment 9.8 9.8
Total 220.5$ 217.0$
Construction in Progress (CIP)
Construction in progress increased $51.21 million to $88.95 million (see note 4) between June 30, 2019 and June
30, 2020. With approximately 17 projects in progress, additions to CIP totaled $56.84 million, while $2.13 million
was capitalized and transferred to Utility Plant in Service.
Of the $88.95 million balance in Construction in Progress at June 30, 2020, 85% is related to a single project, the
Sterling Natural Resource Center.
The SNRC is a water recycling plant capable of converting six million gallons per day (mgd) of wastewater into
recycled water that can be recharged into the local groundwater basin. Future phases will increase capacity of the
plant to 10 mgd.
The SNRC project includes new interceptor mains to divert wastewater flows, treatment plant and administration
facilities, solid waste digesters, and a recycled water pipeline for delivering water to recharge ponds. The total cost
to build the project is approximately $181 million. Through June 30, 2020, project costs totaled $75 million.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2020
26
Funding for the project will include a grant and low interest loan from the SWRCB totaling $157 million, an $18
million contribution for the basin water master for the recycled water pipeline, $4.5 million from anticipated sales tax
exclusions / Edison rebates, and $1.5 million from District development impact fees or other reserves.
One other very important project is the installation of automated metering infrastructure (AMI). Five of seven phases
of a plan to convert all District meters to remote read capability are completed and approximately three-quarters of
the District’s 22 thousand accounts have been converted. The District plans to complete the remaining phases by
June of 2021.
Future Capital Improvements - Water
The District’s ability to meet water quality requirements, promote water conservation, and increase efficiencies in
conducting District business are the driving forces by which District management develops long term capital plans.
To meet these objectives, the District’s 5-year Capital Improvement Plan includes the following projects:
• Rehabilitation of District water storage tanks.
• Replacement of aging water distribution pipelines that require frequent repair and are suspected of causing
system water losses.
Additional water storage capacity was identified in a water system master plan update as a top priority over the next
five years. To address this issue, land has been purchased for a reservoir site, and discussions with developers
include upsizing on their plans to provide storage for their project. The master plan also discussed the feasibility of
building a new surface water treatment plant in the District’s east end, closest to the source of surface water and to
the largest areas of undeveloped land in the District’s service area.
Future Capital Improvements - Wastewater
The District maintains a list of recommended wastewater main replacements / rehabilitations based on assessments
of pipeline condition noted during video logging of the collections system. Pipelines assessed at the highest risk of
structural failure are prioritized on the District’s 5-year Capital Improvement Plan (CIP).
The District also completed an update to its Wastewater Collection System Master Plan in fiscal year 2018-19 which
identified three wastewater pipelines that are susceptible to surcharging during heavy rains. Undersized pipelines
can impede new development and will be included in discussions with developers as necessary.
Long Term Debt / Credit
The District’s long-term debt at June 30, 2020 consists of Revenue Bonds issued through the East Valley Water
District Financing Authority (Authority), a blended component unit, loans from the California Department of Water
Resources (DWR), a capital lease purchase with US Bank, and a loan from the San Bernardino Valley Municipal
Water District (SBVMWD). Outstanding balances as of June 30, 2020 were as follows:
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2020
27
2010 Refunding Bonds 21,635,000$
2013 Refunding Bonds 12,085,000
SBVMWD Loan 2,576,022
AVAD Construction 71,002
EFAD Construction 299,370
Plant 134 Construction 5,834,970
SNRC Construction 63,360,062
U.S. Bank Lease Purchase 1,719,082
Total 107,580,508$
On September 10, 2020 the District refinanced both the 2010 Revenue Bonds, in a current refunding, and the 2013
Revenue Bonds, in an advanced refunding, to take advantage of lower interest rates. The favorable pricing received
through the refunding transaction will save the District approximately $385,000 annually over the next 20 years.
Note 5 to the accompanying financial statements explains the purposes for issuing all debt scheduled above.
The funding agreement with the State Water Resources Control Board for the SNRC construction consists of a
$150.3 million loan at 1.8% and a $6.7 million grant, was finalized on November 21, 2019.
Debt service of $6.8 million and plant operating expenses will be paid with $8.7 million currently paid to the City of
San Bernardino Water Department for wastewater treatment, Additional revenue streams will include Local
Resource Investment Program payments received from the San Bernardino Valley Municipal Water Department for
the use of recycled water produced by the plant for groundwater recharge, tipping fees from waste haulers who
dispose of liquid waste at the District digesters, and energy cost avoidance through use of power produced by the
digesters. The loan balance as of June 30,2020 is $63.4 million; loan payments will begin one year after the Notice
of Completion is filed for the SNRC.
All scheduled debt payments for fiscal year 2019-20 were paid timely.
$-
$20
$40
$60
$80
$100
$120
2016 2017 2018 2019 2020
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Outstanding Long-Term Debt June 30th
2013 Bonds
2010 Bonds
SBVMWD Loan
Inst Purchase
SFR Loan
DWR Loans
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2020
28
Standard & Poor’s and Fitch rated the District’s 2020 Series A and B Revenue Bonds at AA- at the time of issuance.
Dun & Bradstreet (D&B), based on audited financial statements and creditor input, also rated the District. The rating
given by D&B is currently 5A1 accompanied by a financial condition assessment of ‘strong’, which is no change
from previous years.
Rate Increases
The District has contracted with IB Consulting, LLC to perform water and wastewater utility Cost of Service Analysis’.
The analysis’ has determined the need for rate adjustments to current District water and wastewater rates, and will
propose wastewater treatment rates to be established for the SNRC.
Additional information about the District’s Water Budget based rate structure can be found on the District’s website
at www.eastvalley.org.
Contacting the District’s Financial Management
This financial report is designed to give our customers / ratepayers, creditors, and investors a general overview of
the District’s finances, and to demonstrate the District’s accountability for money it receives, and stewardship over
facilities it maintains.
If you have questions about this report, or need additional information, contact the District’s Finance Department at
31111 Greenspot Road, Highland, California 92346, or call (909) 381-6463.
29
30
EAST VALLEY WATER DISTRICT
Statement of Net Position
June 30, 2020
The accompanying notes are an integral part of this statement.
31
For Comparative
Purposes Only
2020 2019
ASSETS
Current Assets:
Cash and Cash Equivalents 8,777,977$ 13,377,049$
Investments 5,683,093 5,328,361
Accounts Receivable, Net 4,800,438 4,129,816
Interest Receivable 59,283 103,867
Other Receivables 567,882 822,525
Due from Other Governments 18,906,857 14,268,673
Inventory 486,971 345,634
Prepaid Expenses 250,403 269,864
Total Current Assets 39,532,904 38,645,789
Non-Current Assets:
Restricted Cash and Cash Equivalents 10,195,046 8,171,966
Assessments Receivable 335,820 341,939
Capital Assets not being Depreciated 96,479,313 41,770,736
Capital Assets, Net 125,558,372 127,952,243
Total Non-Current Assets 232,568,551 178,236,884
Total Assets 272,101,455 216,882,673
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 84,675 102,610
Deferred Outflows - Pensions 3,532,373 3,355,284
Deferred Outflows - OPEB 436,587 183,404
Total Deferred Outflows Of Resources 4,053,635 3,641,298
Total Assets and Deferred Outflows
of Resources 276,155,090$ 220,523,971$
(Continued)
EAST VALLEY WATER DISTRICT
Statement of Net Position - Continued
June 30, 2020
The accompanying notes are an integral part of this statement.
32
For Comparative
Purposes Only
2020 2019
LIABILITIES
Current Liabilities:
Accounts Payable and Accrued Expenses 8,660,260$ 4,570,788$
Accrued Payroll and Benefits 598,055 493,278
Customer Service Deposits 1,563,518 1,550,338
Construction Advances and Retentions 3,908,876 1,276,212
Accrued Interest Payable 421,001 462,550
Current Portion of Compensated Absences 534,469 422,964
Current Portion of Long-Term Debt 2,838,685 2,769,898
Total Current Liabilities 18,524,864 11,546,028
Non-Current Liabilities:
Compensated Absences, Less Current Portion 454,521 534,314
Net Pension Liability 11,805,140 10,846,955
Net OPEB Liability 2,096,677 2,016,418
Long-Term Debt, Less Current Portion 106,620,683 71,590,954
Total Non-Current Liabilities 120,977,021 84,988,641
Total Liabilities 139,501,885 96,534,669
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Pensions 682,596 672,725
Deferred Inflows - OPEB 62,612 918
Total Deferred Inflows Of Resources 745,208 673,643
Total Liabilities and Deferred
Inflows Of Resources 140,247,093 97,208,312
NET POSITION
Net Investment in Capital Assets 106,708,555 95,468,735
Restricted for:
Future Capital Expansion Projects 6,659,487 3,460,835
Unrestricted 22,539,955 24,386,089
Total Net Position 135,907,997$ 123,315,659$
EAST VALLEY WATER DISTRICT
Statement of Revenues, Expenses, and Changes in Net Position
Year Ended June 30, 2020
The accompanying notes are an integral part of this statement.
33
For Comparative
Purposes Only
2020 2019
OPERATING REVENUES
Water Sales 16,902,370$ 15,746,654$
Wastewater Treatment Charges 8,496,012 8,592,950
System Charges 13,670,614 13,653,613
Other Charges 743,916 1,316,081
Total Operating Revenues 39,812,912 39,309,298
OPERATING EXPENSES
Water Department:
Source of Supply 3,263,403 2,975,348
Pumping 457,846 585,585
Treatment 891,127 840,623
Transmission and Distribution 3,460,642 2,819,288
Customer Accounts 1,356,840 1,535,681
Total Water Department 9,429,858 8,756,525
Wastewater Department:
Wastewater Treatment 8,496,012 8,592,950
Wastewater Collection 767,448 700,507
Customer Accounts 367,097 388,914
Total Wastewater Department 9,630,557 9,682,371
Administrative and General 10,613,414 10,778,943
Operating Expenses Before Depreciation 29,673,829 29,217,839
Depreciation 6,575,821 6,680,234
Total Operating Expenses 36,249,650 35,898,073
Operating Income 3,563,262$ 3,411,225$
(Continued)
EAST VALLEY WATER DISTRICT
Statement of Revenues, Expenses, and Changes in Net Position - Continued
Year Ended June 30, 2020
The accompanying notes are an integral part of this statement.
34
For Comparative
Purposes Only
2020 2019
NON-OPERATING REVENUES (EXPENSES)
Investment Income 524,675$ 571,549$
Gain on Disposal - 705,285
Other Income 121,983 307,247
Interest Expense (1,579,104) (1,684,986)
Total Non-Operating Revenues (Expenses)(932,446) (100,905)
Income Before Contributions 2,630,816 3,310,320
CONTRIBUTIONS
Capacity Charges 3,219,397 611,673
Capital Grants 6,742,125 -
Total Contributions 9,961,522 611,673
CHANGE IN NET POSITION 12,592,338 3,921,993
TOTAL NET POSITION, BEGINNING
(AS PREVIOUSLY REPORTED)123,315,659 119,393,666
TOTAL NET POSITION, ENDING 135,907,997$ 123,315,659$
EAST VALLEY WATER DISTRICT
Statement of Cash Flows
Year Ended June 30, 2020
The accompanying notes are an integral part of this statement.
35
For Comparative
Purposes Only
2020 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 41,788,133$ 40,848,979$
Cash Payments for Employees Services (10,822,584) (9,986,866)
Cash Payments to Suppliers (14,067,425) (16,089,708)
Cash to/(from) Other Sources 254,644 (401,490)
Net Cash Provided by Operating Activities 17,152,768 14,370,915
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Grant Funds Received 6,742,125 -
Gain on Disposal 51,722 705,286
Contributed Capital 3,219,397 918,919
Proceeds from Loan of Capital Debt 33,232,846 11,236,504
Principal Paid on Capital Debt (2,669,311) (3,024,244)
Interest Paid on Capital Debt (1,705,919) (1,805,656)
Acquisition of Capital Assets (58,934,799) (21,329,743)
Net Cash Used for Capital and
Related Financing Activites (20,063,939) (13,298,934)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received from Investments 550,141 508,352
Acquisition of Investments (5,819,234) (703,195)
Proceeds from Sale of Investments 5,598,153 774,255
Loan Collections 6,119 13,791
Net Cash Provided (Used) by
Investing Activities 335,179 593,203
Net Increase (Decrease) in Cash
and Cash Equivalents (2,575,992) 1,665,184
Cash and Equivalents, Beginning of Year 21,549,015 19,883,831
Cash and Equivalents, End of Year 18,973,023$ 21,549,015$
RECONCILIATION TO STATEMENT OF NET POSITION
Cash and Cash Equivalents 8,777,977$ 13,377,049$
Restricted Cash and Cash Equivalents 10,195,046 8,171,966
Total Cash and Cash Equivalents 18,973,023$ 21,549,015$
(Continued)
EAST VALLEY WATER DISTRICT
Statement of Cash Flows - Continued
Year Ended June 30, 2020
The accompanying notes are an integral part of this statement.
36
For Comparative
Purposes Only
2020 2019
Reconciliation of Operating Income to Net
Cash Provided by Operating Activities
Operating Income 3,563,262$ 3,411,225$
Adjustments to Reconcile Operating
Income to Net Cash Provided by
Operating Activities:
Depreciation 6,575,821 6,680,234
Change in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (670,622) 411,553
(Increase) Decrease in Other Receivables 254,644 (401,490)
(Increase) Decrease in Inventory (141,338) (60,416)
(Increase) Decrease in Prepaids 19,459 (65,993)
(Increase) in Deferred Outflows of Resources - Pensions (430,273) 851,042
Increase (Decrease) in Accounts Payable 4,089,472 2,950,379
Increase (Decrease) in Accrued Salaries
and Benefits 104,777 21,888
Increase (Decrease) in Compensated Absences 31,711 5,032
Increase (Decrease) in Net Pension Liability 958,186 (754,843)
Increase in Net OPEB Liability 80,259 84,048
Decrease in Deferred Inflows of Resources 71,566 110,124
Increase (Decrease) in Customer Deposits 13,180 (38,580)
Increase (Decrease) in Developer Deposits 2,632,664 1,166,712
Total Cash Provided by Operating Activities 17,152,768$ 14,370,915$
NON-CASH INVESTING, CAPITAL, AND NON-CAPITAL
FINANCING ACTIVITIES:
Fair Value Adjustments to Investments 130,129$ 48,874$
10,093,412 1,490,842
Capital Assets Acquired by Assuming
Liabilities, Including Retainage Payable
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
37
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Reporting Entity
The East Valley Water District is a special district that was formed in 1954, as a result of an election by local
residents who desired water service by a public water agency. Later, as the population increased, a modern
wastewater system was needed to replace the septic tanks used at the time. Citizens voted to give the District
responsibility for that service. The District encompasses an area of approximately 30.1 square miles and
provides water and wastewater service to the City of Highland, parts of the City of San Bernardino, and
unincorporated parts of the County of San Bernardino, California.
The East Valley Water District Financing Authority (Authority), and the North Fork Water Company (Company)
are component units of the East Valley Water District. A component unit is an entity which is financially
accountable to the primary government, either because the primary government appoints a voting majority of
the component unit's Board, or because the component unit will provide a financial benefit or impose a
financial burden on the primary government. The Authority, and Company are blended component units. Only
North Fork Water Company prepares separate financial statements.
The Authority was created in August 2010 by a joint exercise of powers agreement for the purpose of financing
public capital improvements. It is governed by a Board of Directors comprised of the District's Board of
Directors. The Authority issued debt in October 2010 which is secured solely from installment payments under
an installment purchase agreement entered into by the District and the Authority.
The Company was established in February 1885 to deliver water, taken from the Santa Ana River, to its
property owner /shareholders. The Company is governed by a Board of Directors comprised of, and elected
by, Company shareholders. The District has purchased shares of Company stock as they become available
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, 2020, the District owned 6,613.15 of 7,156 outstanding Company shares.
Due to the number of Company shares owned, the District is able to appoint a majority of the Company’s
Governing Board and is therefore, financially accountable for the Company. In addition, management and
staff of the District have complete responsibility for the operations of the Company. As a result, the
Company's financial statements have been included in the accompanying financial statements as a blended
component unit. Copies of the Company's financial statements may be obtained from the District’s Finance
Department at 31111 Greenspot Road, Highland, California 92346.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
38
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 39,515,793$ 17,111$ 386,247$ (386,247)$ 39,532,904$
Capital Assets 221,073,816 2,834,868 - (1,870,999) 222,037,685
Other Assets 10,235,449 295,417 33,720,000 (33,720,000) 10,530,866
Deferred Outflows 4,053,635 - - 4,053,635
Total Assets & Deferred Outflows 274,878,693 3,147,396 34,106,247 (35,977,246) 276,155,090
Current Liabilities 18,514,507 10,357 386,247 (386,247) 18,524,864
Long-Term Liabilities 120,977,021 - 33,720,000 (33,720,000) 120,977,021
Deferred Inflows 745,208 - - - 745,208
Total Liabilities & Deferred Inflows 140,236,736 10,357 34,106,247 (34,106,247) 140,247,093
Net Investment in Capital Assets 105,602,650 2,976,904 - (1,870,999) 106,708,555
Restricted Net Position 6,499,352 160,135 - - 6,659,487
Unrestricted Net Position 22,539,955 - - - 22,539,955
Total Net Position 134,641,957 3,137,039 - (1,870,999) 135,907,997
Statement of Changes in Net Position
Sales and Services 39,068,996$ -$ -$ -$ 39,068,996$
Other Operating Revenue 743,916 - - - 743,916
Operating Expenses 29,824,041 (149,852) - - 29,674,189
Depreciation 6,631,658 (55,837) - - 6,575,821
Operating Income 3,357,213 205,689 - - 3,562,902
Net Non-Operating Revenue
(Expenses)(1,046,978) 114,532 - - (932,446)
Capital Contributions 9,961,882 - - - 9,961,882
Special Items - - - - -
Change in Net Position 12,272,117 320,221 - - 12,592,338
Beginning Net Position 122,369,840 2,816,818 - (1,870,999) 123,315,659
Ending Net Position 134,641,957$ 3,137,039$ -$ (1,870,999)$ 135,907,997$
- - - - -
Net Cash from Operating Activities 17,205,086$ (52,678) -$ -$ 17,152,408$
Net Cash from Capital and Related
Financing Activities (20,040,191) (23,388) 3,161,488 (3,161,488) (20,063,579)
Net Cash from Investing Activities 335,332 (153) (3,161,488) 3,161,488 335,179
Beginning Cash and Equivalents 21,170,065 378,950 - - 21,549,015
Ending Cash & Equivalents 18,670,292$ 302,731$ -$ -$ 18,973,023$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
39
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B) Measurement Focus, Basis of Accounting and Financial Statement Presentation
The accounting and financial reporting treatment is determined by the applicable measurement focus and
basis of accounting. Measurement focus indicates the type of resources being measured such as current
financial resources or economic resources. The basis of accounting indicates the timing of transactions or
events for recognition in the financial statements.
The District uses the economic resources measurement focus and the accrual basis of accounting.
Accordingly, revenues are recognized when they are earned and expenses are recorded when the liability
is incurred.
C) Comparative Data
Prior year data has been included where practical for comparison purposes only. The prior year data does
not represent a complete presentation in accordance with accounting principles generally accepted in the
United States of America.
D) Inventory Valuation
Inventories are valued at cost using the average-cost method.
E) Capitalization and Depreciation
Capital assets purchased or constructed by the District are recorded at cost. Donated capital assets are
recorded at acquisition value as of the date received. The District has a capitalization threshold of $5,000.
Depreciation is computed using the straight-line method over the estimated useful lives of the various assets.
Water canals, water, and wastewater lines are depreciated over 25 to 50 years; office equipment and vehicles
are depreciated over 5 years.
Water stock and rights contributed to the District are recorded at the same value the District is currently paying
for the purchase of similar stock.
F) Restricted Assets
Certain assets of the District are restricted in use by ordinance or debt covenant and accordingly are shown
as restricted assets on the accompanying statement of net position. Unexpended Bond proceeds are set
aside for capital improvements, District deposits into Bond trustee accounts are to be used for debt service,
and utility deposits must be returned to the customers at their request after their account has been paid timely
for 12 consecutive months, or when their account is closed.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
40
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
G) Cash and Cash Equivalents
For the purposes of the statement of cash flows, cash and cash equivalents have been defined as demand
deposits and highly liquid investments purchased with an original maturity of 3 months or less. The District
invests funds with the Local Agency Investment Fund (LAIF) and Money Market Mutual Funds. Due to the
high liquidity of these investments, these funds are classified as cash equivalents.
H) Investments
The District has adopted the provisions of GASB Statement No. 72, Fair Value Measurement and Application.
The objective of this Statement is to enhance comparability of financial statements among governments by
measurement of certain assets and liabilities at their fair value using a consistent and more detailed definition
of fair value and accepted valuation techniques. The definition of fair value is the price that would be received
to sell and asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. This Statement establishes a hierarchy of inputs to valuation techniques used to measure
fair value.
I) Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position includes a separate section for deferred outflows
of resources. This separate financial statement element, deferred outflows of resources, represents a
consumption of net position that applies to future periods and so will not be recognized as an outflow of
resources (expense/expenditure) until then. The District has three items which qualify for reporting in this
category; Deferred Outflows Charge on Refunding, Deferred Outflows Related to Pensions, and Deferred
Outflows Related to OPEB.
In addition to liabilities, the statement of financial position includes a separate section for deferred inflows
of resources. This separate financial statement element, deferred inflows of resources, represents an
acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of
resources (revenue) until that time. The District has two items which qualify for reporting in this category:
Deferred Inflows related to Pensions and Deferred Inflows related to OPEB.
J) Compensated Absences
The District has a policy whereby an employee can accumulate unused sick leave and vacation. Sick leave
is to be used for extended periods of sickness; however, upon termination or retirement, a portion will be paid
as additional benefits to the employee. At retirement or termination, employees who have accumulated over
ten years of service will be paid between 50 to 70% of their unused sick leave (based upon their balance of
unused sick leave) at their regular payroll rates in effect at the date of termination. Also, employees can cash
out up to 300 hours of unused sick time, per calendar year, provided that a minimum of 160 hours is retained
after said cash-out. The District has provided for these future costs by accruing a range of the earned and
unused sick leave and 100% of the earned and unused vacation.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
41
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
K) Classification of Revenue
As an enterprise (proprietary) fund, the District classifies its revenues into three classifications: operating
revenue, non-operating revenue, and contributions.
Operating revenues are defined as revenues realized by the District in exchange for providing its primary
services of water distribution and wastewater collection to its customers. Non-operating revenues are those
derived from the investment of cash reserves and from the disposal of excess property, and 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.
L) Use of Restricted Resources
The District uses restricted resources, prior to using unrestricted resources, to pay expenses meeting the
criteria imposed on the use of restricted resources by a third party.
M) Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
N) Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to
pensions, and pension expense, information about the fiduciary net position of the District’s California Public
Employees’ Retirement System (CalPERS) plans (Plans) are additions to/deductions from the Plans’ fiduciary
net position and have been determined on the same basis as they are reported by CalPERS. For this purpose,
benefit payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms.
O) Postemployment Benefits Other Than Pensions (OPEB)
For purposes of measuring the District’s OPEB liability related to the California Employer’s Retirement
Benefits Trust (CERBT), deferred outflows of resources and deferred inflows of resources related to OPEB,
and OPEB expense, information about the fiduciary net position of the CERBT and additions to/deductions
from the CERBT fiduciary net position have been determined on the same basis as they are reported by
the CERBT. For this purpose, the CERBT recognizes benefit payments when due and payable in
accordance with the benefit terms. Investments are reported at fair value, except for money market
investments and participating interest earning investment contracts that have a maturity at the time of
purchase of one year or less, which are reported at cost.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
42
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
P) Future Accounting Pronouncements
The applicable GASB Statements listed below will be implemented in future financial statements:
Table 1-2
GASB Statement Description Effective Date
Statement No. 84 Fiduciary Activities
The statement improves guidance regarding the recognition
of fiduciary activities for accounting and financial reporting
purposes by establishing criteria for identifying fiduciary
activities of all state and local governments. The statement
is effective for reporting periods beginning after December
15, 2018. Earlier application is encouraged.
Statement No. 87 Leases
The statement addresses accounting and financial reporting
for leases by governments. This statement requires
recognition of certain lease assets and liabilities for leases
that previously were classified as operating leases and
recognized as inflows of resources or outflows of resources
based on the payment provisions of the contract. It
establishes a single model for lease accounting based on
the foundational principle that leases are financings of the
right to use an underlying asset. Under this statement,
lessee is required to recognize a lease liability and an
intangible right-to-use lease asset, and a lessor is required
to recognize a lease receivable and a deferred inflow of
resources. The statement is effective for reporting periods
beginning after December 15, 2019. Earlier application is
encouraged.
Statement No. 89
Accounting for
Interest Cost
Incurred before the
End of a
Construction
Period
The statement requires that interest costs incurred before
the end of a construction period be recognized as an
expense in the period in which the cost is incurred for
financial statements prepared using the economic
resources measurement focus. As a result, interest costs
incurred before the end of a construction period will not be
included in the historical costs of a capital asset reported in
a business-type activity or enterprise fund. The statement
is effective for reporting periods beginning after December
15, 2019. Earlier application is encouraged.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
43
REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
P) Future Accounting Pronouncements
Table 1-2 - Continued
GASB Statement Description Effective Date
Statement No. 90
Majority Equity
Interests - an
amendment of
GASB Statements
No. 14 and No. 61
The statement modifies previous guidance for reporting a
majority equity interest in a legally separate organization
and provides guidance for reporting a component unit if 100
percent equity interest is acquired in that component unit.
The statement is effective for reporting periods beginning
after December 15, 2018. Earlier application is encouraged.
Statement No. 91 Conduit Debt
Obligations
The statement provides a single method of reporting conduit
debt to eliminate diversity in reporting and the related note
disclosures. The statement also addresses arrangements -
often characterized as leases - that are associated with
conduit debt obligations. The statement is effective for
reporting periods beginning after December 15, 2020.
Earlier application is encouraged.
Statement No. 95
Postponement of
the effective Dates
of Certain
Authoritative
Guidance
Provides temporary relief to governments and other
stakeholders in light of the COVID-19 pandemic. That
objective is accomplished by postponing the effective dates
of certain provisions in Statementsx and Implementation
Guides that first became effective or are scheduled to
become effective for periods beginning after June 15, 2018,
and later.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
44
2) CASH AND INVESTMENTS
Cash and Investments as of June 30, 2020 are classified in the accompanying financial statements as follows:
Table 2-1
Cash and Cash Equivalents 8,777,977$
Restricted Cash and Cash Equivalents 10,195,046
Investments 5,683,093
Total 24,656,116$
Cash and investments as of June 30, 2020 consist of the following:
Table 2-2
Cash on Hand 5,250$
Deposits with Financial Institutions 3,424,484
Money Market Accounts with Financial Institutions 222,002
Investments with Local Agency Investment Fund 15,321,287
Investment in Debt Securities 5,683,093
Total 24,656,116$
Investments Authorized by the California Government Code and the District’s Investment Policy
The table below identifies the investment types that are authorized by the District's investment policy and in
accordance with Section 52601 of the California Government Code The table also identifies certain provisions
of the District's investment policy that address interest rate risk and concentration of credit risk.
Table 2-3
Authorized Investment Type
Maximum
Maturity
Authorized
Limit
Required
Rating
Bonds and Certificates of Participation by EVWD 5 years None None
U.S. Treasury Bills, Notes, or Bonds 5 years None None
State Registered Warrants, Notes, or Bonds 5 years None None
Notes and Bonds of other Local California Agencies 5 years None None
U.S. Agencies 5 years None None
Negotiable Certificates of Deposits 5 years 30%None
Money Market Mutual Funds and Mutual Funds 5 years 15%2 - AAA
Collateralized Bank Deposits 5 years None None
Local Agency Investment Fund (LAIF)N/A None None
At June 30, 2020, 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, 2020
45
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, 2020, the District had the following investments and maturities:
Table 2-4
Investment Type Fair Value
Average
Maturity
Fannie Mae 554,164$ 2.01 years
Freddie Mac 601,595 3.19 years
Federal Home Loan Bank 858,367 1.31 years
Federal Farm Credit Bank 1,300,697 2.19 years
US Treasury 1,923,867 1.49 years
Tenn Valley Authority 444,403 2.42 years
LAIF 15,321,287 N/A
Money Market Mutual Funds 222,002 N/A
21,226,382
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. Presented below is the minimum rating required by (where applicable) the California Government
Code or the District’s investment policy, and the actual rating as of year-end for each investment type.
Table 2-5
Investment Type Fair Value
Minimum
Legal
Rating
Exempt
From
Disclosure
Rating at
Year End
AAA Not Rated
Fannie Mae 554,164$ N/A -$ 554,164$ -$
Freddie Mac 601,595 N/A - 601,595 -
Federal Home Loan Bank 858,367 N/A - 858,367 -
Federal Farm Credit Bank 1,300,697 1,300,697
US Treasury 1,923,867 N/A 1,923,867 - -
Tenn Valley Authority 444,403 N/A - 444,403 -
LAIF 15,321,287 N/A - - 15,321,287
Money Market Mutual Funds 222,002 N/A - 222,002 -
21,226,382$ 1,923,867$ 3,981,228$ 15,321,287$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
46
2) CASH AND INVESTMENTS – Continued
Fair Value Measurements
The District categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. These principles recognize a three-tiered fair value hierarchy, as follows:
• Level 1: Investments reflect prices quoted in active markets;
• Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly,
which may include inputs in markets that are not considered to be active; and
• Level 3: Investments reflect prices based upon unobservable sources.
Valuation Technique: Level 2 Investments use the Market Approach which uses prices generated for identical or
similar assets or liabilities.
The District has the following recurring fair value measurements as of June 30, 2020:
Table 2-6
Quoted Prices
in Active
Markets for
Identical
Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Investments by Fair Value Level (Level 1)(Level 2)(Level 3)Total
Debt Securities
Fannie Mae -$ 554,164$ -$ 554,164$
Freddie Mac - 601,595 - 601,595
Federal Home Loan Bank - 858,367 - 858,367
Federal Farm Credit Bank - 1,300,697 - 1,300,697
US Treasury 1,923,867 - - 1,923,867
Tenn Valley Authority - 444,403 - 444,403
Total Investments Measured at Fair Value 1,923,867$ 3,759,226$ -$ 5,683,093$
Investments Measured at Amortized Cost
LAIF 15,321,287
Money Market Mutual Funds 222,002
Total Investments 21,226,382$
Fair Value Measurements Using
Disclosure Related to Concentration of Credit Risk
The District's policy places no limits on amounts invested in any given issuer beyond that stipulated by the
California Government Code. At June 30, 2020, there were no investments (other than external pools, U.S.
Government Securities and Money Market Mutual Funds) that exceeded 5% of the District's total investments.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
47
2) CASH AND INVESTMENTS – Continued
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a
government will not be able to recover its deposits or will not be able to recover collateral securities that are in the
possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure
of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California Government Code
requires California banks and savings and loan associations to secure deposits by pledging government securities
as collateral. Such collateralization of public funds is accomplished by pooling. As such, collateralized securities
are held by the pledging financial institution's agent on behalf of the District. The fair value of the pledged securities
must equal at least 110% of Districts deposits. California law also allows financial institutions to secure deposits
by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The District
may waive collateral requirements for deposits which are fully insured by Federal depository insurance.
As of June 30, 2020, the District had $9,285,794 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, 2020, the carrying amount (at amortized cost) of the pool
was $101,607,078,218 and the estimated fair value of the pool was $101,607,078,218. The District's proportionate
share of the fair value (as determined by LAIF) as of June 30, 2020, was $15,321,287. Included in LAIF's
investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed
securities, loans to certain State funds, and floating rate securities issued by federal agencies, government-
sponsored enterprises, and corporations.
3) RESTRICTED CASH AND CASH EQUIVALENTS
Restricted cash and cash equivalents at June 30, 2020 are restricted as follows:
Table 3-1
Held for Debt Service 1,659,286$
Capacity Fees from Developers 6,499,353
Customer Deposits 1,563,518
Construction Advances 186,663
North Fork Water Company 286,226
Total 10,195,046$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
48
4) CAPITAL ASSETS
A summary of changes in capital assets for the year ended June 30, 2020 is as follows:
Table 4-1
Beginning of End of
Year Additions Deletions Year
Water Fund
Non-Depreciable Assets
Land and Easements 2,583,057$ 3,494,704$ -$ 6,077,761$
Water Rights 732,835 - - 732,835
Construction in Progress 3,519,720 4,027,002 (5,576,364) 1,970,358
Total Non-Depreciable Assets 6,835,612 7,521,706 (5,576,364) 8,780,954
Depreciable Assets
Source of Supply 18,874,920 255,774 - 19,130,694
Pumping Plant 14,422,348 192,869 - 14,615,217
Treatment Plant 28,162,779 364,076 - 28,526,855
Transmission and Distribution Plant 100,147,622 2,234,532 (578,591) 101,803,563
General Plant 18,581,118 610,689 (58,472) 19,133,335
Total Depreciable Assets 180,188,787 3,657,940 (637,063) 183,209,664
Accumulated Depreciation
Source of Supply (7,134,348) (653,743) - (7,788,091)
Pumping Plant (6,699,128) (435,408) - (7,134,536)
Treatment Plant (11,151,647) (1,170,474) - (12,322,121)
Transmission and Distribution Plant (40,196,081) (2,628,234) 534,321 (42,289,994)
General Plant (5,945,666) (865,040) 58,472 (6,752,234)
Total Accumulated Depreciation (71,126,870) (5,752,899) 592,793 (76,286,976)
Water Fund Capital Assets, Net 115,897,529 5,426,747 (5,620,634) 115,703,642
Wastewater Fund
Non-Depreciable Assets
Land and Easements 713,940 - - 713,940
Construction in Progress 34,221,184 52,812,005 (48,770) 86,984,419
Total Non-Depreciable Assets 34,935,124 52,812,005 (48,770) 87,698,359
Depreciable Assets
Wastewater Collection Plant 27,510,245 48,770 - 27,559,015
General Plant 9,357,806 519,511 (58,472) 9,818,845
Total Depreciable Assets 36,868,051 568,281 (58,472) 37,377,860
Accumulated Depreciation
Wastewater Collection Plant (14,581,277) (462,634) - (15,043,911)
General Plant (3,396,448) (360,289) 58,472 (3,698,265)
Total Accumulated Depreciation (17,977,725) (822,923) 58,472 (18,742,176)
Wastewater Fund Capital Assets, Net 53,825,450 52,557,363 (48,770) 106,334,043
Total Capital Assets, Net 169,722,979$ 57,984,110$ (5,669,404)$ 222,037,685$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
49
5) LONG-TERM DEBT
The schedule below summarizes changes in long-term debt during the year ended June 30, 2020:
Table 5-1
Beginning
Balance Additions
Retirements/
Payments
Ending
Balance
Current
Portion
Long-Term
Portion
Direct Placement:
2010 Refunding Bonds 23,215,000$ -$ (1,580,000)$ 21,635,000$ 1,650,000$ 19,985,000$
Unamortized Premium 1,506,579 - (80,741) 1,425,838 80,741 1,345,097
2013 Revenue Bonds 12,085,000 - - 12,085,000 - 12,085,000
Unamortized Premium 507,912 - (21,202) 486,710 21,200 465,510
Unamortized Discount (32,427) - 1,354 (31,073) (1,354) (29,719)
Subtotal Direct Placement 37,282,064 - (1,680,589) 35,601,475 1,750,587 33,850,888
Direct Borrowing:
U.S. Bank Lease Purchase 2,125,215 - (406,133) 1,719,082 415,379 1,303,703
SBVMWD Loan 3,006,022 - (430,000) 2,576,022 430,000 2,146,022
DWR Contracts -
AVAD Construction 77,764 - (6,762) 71,002 6,762 64,240
Plant 134 Construction 6,068,369 - (233,399) 5,834,970 233,399 5,601,571
EFAD Construction 312,386 - (13,016) 299,370 13,016 286,354
SNRC 25,489,032 37,871,030 - 63,360,062 - 63,360,062
Subtotal Direct Borrowing 37,078,788 37,871,030 (1,089,310) 73,860,508 1,098,556 72,761,952
Total 74,360,852$ 37,871,030$ (2,769,899)$ 109,461,983$ 2,849,143$ 106,612,840$
2010 Refunding Revenue Bonds
On October 29, 2010, the District issued $33,545,000 of East Valley Water District Financing Authority
Refunding Revenue Bonds, Series 2010 (2010 Bonds), with interest rates ranging from 2.00% to 5.00%. The
purpose for issuing the 2010 Bonds was to provide $16,000,000 for future capital improvements, and for
refunding virtually all the District’s 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. All refunded debt has been retired leaving $0 of outstanding in-substance defeased debt.
The refunding resulted in a difference between the reacquisition price and the carrying amount of the old debt
of $259,548. This difference is included in the accompanying financial statements as a Deferred Outflows of
Resources and is being charged to operations through the year 2024 using the straight-line method of
amortization. The indenture authorizes, upon default, the Trustee to declare immediate due and payable the
total unpaid principal of the Bonds and accrued interest thereon.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
50
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. The indenture authorizes, upon default, the
Trustee to declare immediate due and payable the total unpaid principal of the Bonds and accrued interest
thereon.
US Bank Lease Purchase
On November 13, 2013 the District entered into a Lease Purchase Agreement with US Bancorp Government
Leasing and Finance, Inc. (US Bank), in order to implement Energy Conservation Measures (ECM) identified
in a comprehensive energy conservation and operational efficiency study prepared by Honeywell International,
Inc. (Honeywell). Honeywell has been contracted to install the facilities necessary to achieve the energy savings
identified in their study, and has guaranteed that the savings will be sufficient to pay the debt service on the
lease with US Bank. Project costs paid to Honeywell, and the amount borrowed from US Bank under the lease
agreement is $3,998,560 with an interest rate of 2.38%. Semi-annual payments are $226,398, to commence
on September 2014 through March 2024. The indenture authorizes, upon default, the Trustee to declare
immediate due and payable the total unpaid principal of the Bonds and accrued interest thereon.
San Bernardino Valley Municipal Water District - City Creek Turnout and Plant 134 Hydroelectric Station
Loan
On January 20, 2015, the District entered into an agreement with the SBVMWD for the construction, financing,
and maintenance of a turnout by which the District’s surface water treatment plant can receive State Project
water. The total amount borrowed for construction of the project is $4,367,927 bearing interest at the State of
California Local Agency Investment Fund (LAIF) apportionment rate, which is 1.47% at June 30, 2020. Debt
service payments are to be made annually on February 1st over ten years.
Department of Water Resources Contract 00C412 - Arroyo Verde Assessment District (AVAD)
On June 30, 2004, the District entered into a Funding Agreement for replacement of distribution pipelines in the
section of the District's service area formerly served by the Arroyo Verde Water Company. The original loan
amount was $169,052 with an annual interest rate of 0%. Semi-annual payments of $3,381 are due through
January 2031 and are secured by annual assessments to property owners within the Arroyo Verde Assessment
District. The indenture authorizes, upon default, the Trustee to declare immediate due and payable the total
unpaid principal of the Bonds and accrued interest thereon.
Department of Water Resources Contract 10CX110 - Plant 134
On December 21, 2010, the District entered into a Funding Agreement to upgrade treatment methods utilized
by the District's surface water treatment plant (Plant 134). The amount borrowed under the agreement is
$7,001,964 with an annual interest rate of 0%. Semi-annual payments of $116,699 are due through January
2045, and are secured by a pledge of net revenues of the District's water operating fund. The indenture
authorizes, upon default, the State to declare immediate due and payable the total unpaid principal of the debt
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
51
5) LONG-TERM DEBT - Continued
and accrued interest thereon.
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 $6,508 are due
for 30 years through January 2043. Repayment of the loan is secured by annual assessments to property
owners within the Eastwood Farms Assessment District. The indenture authorizes, upon default, the Trustee to
declare immediate due and payable the total unpaid principal of the Bonds and accrued interest thereon.
The aggregate debt service requirements to maturity for long-term debt as of June 30, 2020 are as follows
(excludes unamortized premiums/discounts and the California State Water Resource Control Board Contract
C-06-8106-110):
Table 5-2
Year Ending
June 30,Principal Interest Total
2021 2,748,555$ 1,609,845$ 4,358,400$
2022 2,243,008 1,529,485 3,772,493
2023 2,302,672 1,468,447 3,771,119
2024 2,362,550 1,405,128 3,767,678
2025 1,958,176 1,342,223 3,300,399
2026-2030 6,741,902 5,970,934 12,712,836
2031-2035 7,100,452 4,815,388 11,915,840
2036-2040 9,002,070 3,231,100 12,233,170
2041-2045 9,761,060 1,055,750 10,816,810
44,220,445$ 22,428,300$ 66,648,745$
California State Water Resources Control Board Contract C-06-8106-110 – Sterling Natural Resource
Center
On June 26, 2018 the District entered into a Funding Agreement for the construction of a 6 million gallon per
day (mgd) water recycling plant with the State Water Resources Control Board. The initial agreement approves
$11.5 million for design cost reimbursement, with a revised agreement covering design and construction costs
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
52
5) LONG-TERM DEBT - Continued
totaling $157 million executed on December 2, 2019. The revised Agreement includes a $6.7 million grant and
a low interest (1.8%) loan for the balance of $150.3 million.
As of June 30, 2020 the District has incurred $70.4 million in design and construction cost, the District has
drawn approximately $51.5 million, $18.9 million is awaiting reimbursement (Due From Other Governments) of
the $150.3 million in loan financing available. Repayment on the loan will begin one year after the completion
of construction and annual installment payments of principal and interest are projected to be approximately $6.8
million. The District has pledged available water and wastewater revenue for the repayment of the loan,
including the following new revenue streams:
• Wastewater treatment charges (previously paid to the City of San Bernardino)
• Sale of electrical energy produced by plant digesters (beyond energy used on site)
• Local Resource Investment Program fees for recycled water delivered for groundwater recharge
• Tipping fees from waste haulers
Estimated debt service on this loan is not included in the Table 5-2 above.
Security for debt is as follows:
Table 5-3
Debt Security
2010 and 2013 Refunding
Revenue Bonds and Department
of Water Resources
Construction Loans
The District is required to maintain net revenues, as defined
by the revenue bond trust agreements and State of
California Department of Public Health Funding agreements
of at least 120% of District's annual debt service (principal
and interest). At June 30, 2020, net water revenues
represented 266% of the annual water debt service and net
wastewater revenues represented 4949% of the annual
wastewater debt service.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
53
6) COMPENSATED ABSENCES
Compensated absences are comprised of unused vacation leave and a limited amount of sick leave which is
accrued as earned in accordance with District policy. The District's liability for compensated absences is
determined annually. Current portions are determined based on estimates of usage, amounts in excess of 196
hours that will be voluntarily cashed out and amounts that will be cashed out upon termination of employment.
Table 6-1
Beginning
of Year Additions
Usage /
Payments
End of
Year
Current
Portion
Long-Term
Portion
Accrued Vacation Leave 486,255$ 555,413$ (332,837)$ 708,831$ 359,043$ 349,788$
Accrued Sick Leave 471,023 408,181 (599,045) 280,159 175,426 104,733
Total 957,278$ 963,594$ (931,882)$ 988,990$ 534,469$ 454,521$
7) NET INVESTMENT IN CAPITAL ASSETS
Net Investment in capital assets at June 30, 2020 consisted of the following:
Table 7-1
Non-Depreciable Capital Assets 96,255,683$
Depreciable Capital Assets 220,587,523
Accumulated Depreciation (95,029,151)
Loans Payable (79,613,249)
Bonds Payable (35,598,861)
Deferred Amount on Refunding 106,610
Total 106,708,555$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
54
8) DEFINED BENEFIT PENSION PLAN (PERS)
A) General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the District’s Miscellaneous
Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the
California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plans are
established by State statue and East Valley Water District resolution. CalPERS issues publicly available
reports that include a full description of the pension plans regarding benefit provisions, assumptions, and
membership information that can be found on the CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death
benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of
credited service, equal to one year of full-time employment. Members with five years of total service are eligible
to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits
after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor
Benefit, or the Optional Settlement 2 W Death Benefit. The cost of living adjustments for each plan are applied
as specified by the Public Employees’ Retirement Law.
The Plans’ provisions and benefits in effect at June 30, 2020, 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 12.805%7.026%
Miscellaneous
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
55
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer
contribution rates for all public employers be determined on an annual basis by the actuary and shall be
effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are
determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is
the estimated amount necessary to finance the costs of benefits earned by employees during the year, with
an additional amount to finance any unfunded accrued liability. The District is required to contribute the
difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2020, the contributions recognized as part of pension expense for the Plans
were as follows:
Table 8-2
Miscellaneous
Contributions - Employer $ 1,798,495
B) Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to
Pensions
As of June 30, 2020, the District reported net pension liabilities for its proportionate shares of the net
pension liability of the Plans as follows:
Table 8-3
Proportionate Share of
Net Pension Liability
Miscellaneous $ 11,805,140
The District’s net pension liability for each Plan is measured as the proportionate share of the net
pension liability. The net pension liability of each of the Plans is measured as of June 30, 2019, 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, 2018 rolled forward to June 30, 2019 using standard update procedures. The
District’s proportion of the net pension liability was based on a projection of the District’s long-term share
of contributions to the pension plans relative to the projected contributions of all participating employers,
actuarially determined. The District’s proportionate share of the net pension liability for each Plan as of
June 30, 2018 and 2019 was as follows:
Table 8-4
Prior to
January 1, 2013
Proportion - June 30, 2018 0.287816%
Proportion - June 30, 2019 0.294797%
Change - Increase (Decrease)0.006981%
Miscellaneous
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
56
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
For the year ended June 30, 2020, the District recognized pension expense of $1,361,184. At June 30, 2020,
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 $ 819,917 63,527$
Changes in Assumptions 562,924 199,552
Net differences between projected and actual
earnings on plan investments - 206,390
Change in employer's proportion 168,426 79,580
Difference between the employer's
contributions and the employer's proportionate
share of contributions 182,612 133,547
Pension contributions subsequent to
measurement date 1,798,495 -
Total $ 3,532,374 $ 682,596
$1,798,495 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,
2021. 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
2021 $ 868,636
2022 (17,128)
2023 148,104
2024 51,671
$ 1,051,283
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
57
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
Actuarial Assumptions
The total pension liabilities in the June 30, 2018 actuarial valuations were determined using the following
actuarial assumptions:
Table 8-7
Miscellaneous
Valuation Date June 30, 2018
Measurement Date June 30, 2019
Entry Age Normal
Market Value of Assets
7.15%
2.50%
Annual increase vary by Category, entry age and duration of service
2.5
7.15%
Derived using CalPERS' membership data for all Funds
(1)
(2)
Payroll Growth
Actuarial Cost Method
Asset Valuation Method
Actuarial Assumptions:
Discount Rate
Inflation
Net of pension plan investment expenses and administative expeneses; including inflation
The Mortality table used was developed based on CalPERS-specific data. The table includes 15
years of mortality improvements using Society of Actuaries Scales 90% of scale MP2016. For
more details on this table, please refer to the December 2017 experience study report (based on
Cal PERS demographic data from 1997 to 2015) that can be found on the CalPERS website.
Mortality Rate Table (2)
Projected Salary Increase
Investment Rate of Return (1)
Discount Rate
The discount rate used to measure the total pension liability remained the same at 7.15%. To determine
whether the municipal bond rate should be used in the calculation of a discount rate for the plan, CalPERS
stress tested plans that would most likely result in a discount rate that would be different from the actuarially
assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current
7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long
term expected discount rate of 7.15% will be applied to all plans in the Public Employees Retirement Fund
(PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS
website.
CalPERS continues the Asset Liability Management (ALM) process to expand its review of assets and
liabilities to ensure financial risks to the System are better understood, communicated, and mitigated. To
establish appropriate levels of risk, ALM is focused on investment and actuarial policies. These policies
include key decision factors and intend to drive optimum asset allocations, while stabilizing employer
contribution rates, and the volatility of those rates year to year. Additionally, to better manage risks arising
from terminating agencies, CalPERS has enhanced its oversight of contracting public agencies' financial
health through its development of a standardized review criteria. These improvements include streamlining
the collection and termination process to reduce the timeframe, accelerating notifications to the Board and
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
58
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
members, and adopting a risk oversight process to improve early detection of financial hardship issues.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which expected future real rates of return (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS considered both short-term and long-term
market return expectations as well as the expected pension fund cash flows. Using historical returns of all
funds’ asset classes, expected compound (geometric) returns were calculated over the short term (first 10
years) and the long term (11+ years) using a building-block approach. Using the expected nominal returns
for both short term and long term, the present value of benefits was calculated for each fund. The expected
rate of return was set by calculating the rounded single equivalent expected return that arrived at the same
present value of benefits for cash flows as the one calculated using both short-term and long-term returns.
The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted
to account for assumed administrative expenses.
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 50.0%4.80%5.98%
Global Fixed Income 28.0%1.00%2.62%
Inflation Sensitive 0.0%0.77%1.81%
Private Equity 8.0%6.30%7.23%
Real Assets 13.0%3.75%4.93%
Liquidity 1.0%0.00%-0.92%
Total 100.0%
(a) An expected inflation of 2.0 % used for this period
(b) An expected inflation of 2.92 % used for this period
C) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents East Valley Water District’s proportionate share of the net pension liability for the
Plan, calculated using the current discount rate, as well as what the District’s proportionate share of the
net pension liability would be if it were calculated using a discount rate that is one-percentage point lower
or one-percentage point higher than the current rate:
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
59
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
Table 8-9
Miscellaneous
1% Decrease 6.15%
Net Pension Liability $ 17,968,327
Current Discount Rate 7.15%
Net Pension Liability $ 11,805,140
1% Increase 8.15%
Net Pension Liability $ 6,717,865
D) Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued
CalPERS financial reports.
E) Payable to the Pension Plan
At June 30, 2020, the District reported a payable of $0 for the outstanding amount of contributions to the
pension plan required for the year ended June 30, 2020.
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, 2020, or in the previous two fiscal years.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
60
10) RISK MANAGEMENT - Continued
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.
At June 30, 2020, 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, 2020
61
11) POST EMPLOYMENT HEALTHCARE BENEFITS
The District provides post employment healthcare benefits for retired employees and eligible surviving spouses
in accordance with the plan as established by the District. As of June 30, 2020, the District’s total liability for
post-employment healthcare benefits and details of the plan are explained below:
Table 11-1
OPEB Plan
Net OPEB
Liability
Deferred Outflows
of Resources
Deferred Inflows of
Resources
OPEB
Expense
Retiree Benefits Plan 2,096,677$ 436,587$ 62,612$ 247,849$
Plan Description and Eligibility
The District contributes to the retiree health coverage of eligible retirees and eligible surviving spouses. As of
June 7, 2011, the District is part of the Public Agency portion of the California Employers’ Retiree Benefit Trust
Fund (CERBT), an agent multiple-employer plan administered by California Public Employees’ Retirement
System (CalPERS), which acts as a common investment and administrative agent for participating public
employers within the State of California. A menu of benefit provisions as well as other requirements is
established by State statute within the Public Employees’ Retirement Law. The District selects optional benefit
provisions from the benefit menu by contract with CalPERS and adopts those benefits through District
resolution. CalPERS issues a Comprehensive Annual Financial Report (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.
Membership in the health benefit plan consisted of the following at July 1, 2019, the date of the latest actuarial
valuation:
Table 11-2
Participant Type:
26
0
Active employees 65
91
Inactive participants currently receiving benefits
Inactive participants entitled to but not yet receiving benefit
Total
Number of
Participants
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 10 years of District service will receive an additional District contribution through
attainment of Medicare eligibility age. The additional contribution is based on the negotiated dollar amount at
retirement (currently $700 per month). The surviving spouse of an eligible retiree is eligible for the District's
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
62
11) POST EMPLOYMENT HEALTHCARE BENEFITS - Continued
contribution upon the death of the retiree through the spouse's attainment of Medicare eligibility age.
The District’s funding policy is to contribute the Annual Determined Contribution (ADC) to their account within
the CERBT. For fiscal year ended June 30, 2019, the District paid $278,539 to the plan including the implicit
rate subsidy. The District contributed $436,587 including the implicit rate subsidy for retiree health benefits to
the Trust during the fiscal year ended June 30, 2020.
Net OPEB Liability
The table herein shows the components of the net OPEB liability of the District:
Table 11-3
Balance
June 30, 2020
Total OPEB Liability $ 2,896,822
Plan Fiduciary Net Position 800,145
District's Net OPEB Liability (Asset) $ 2,096,677
Investments
As described above, at June 30, 2020, all Plan investments are held in the CERBT through CalPERS.
Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
At June 30, 2020, the District reported deferred outlflows of resources and deferred inflows of resources related
to pensions from the sources as follows:
Table 11-4
Deferred Outflows and Inflows of Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Contributions subsequent to measurement date 262,358$ -$
Differences between expected and actuarial experience 173,038 -
Changes of assumptions - 59,216
Differences between projected and actual earnings on 1,191 3,396
Total 436,587$ 62,612$
The deferred outflow of resources results from a change of assumptions and is amortized over the expected
average remaining service life (EARSL) of the plan participants. The EARSL for the OPEB plan for June 30,
2020 is five years. The year of amortization is recognized in OPEB expense for the year the gain or loss occurs.
The remaining amount is deferred and will be amortized over the remaining periods not to exceed four years.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
63
11) POST EMPLOYMENT HEALTHCARE BENEFITS - Continued
The deferred inflows of resources related to OPEB resulting from the net differences between projected and
actual earnings on the plan investents is amortized over a five year period on a straight-line basis. One-fifth is
recognized in pension expense during the measurement period and the remaining amount is deferred and will
be amortized over the remaining four-year period.
The deferred inflows of resources related to OPEB resulting from the net differences between projected and
actual earnings on the plan investments is amortized over a five year period on a straight-line basis. One-fifth
is recognized in pension expense during the measurement period and the remaining amount is deferred and
will be amortized over the remaining four-year period.
Deferred inflows and outflows will be amortized as follow:
Table 11-5
Year Ending
June 30, Amortization
2021 $ 12,042
2022 12,040
2023 12,348
2024 11,953
2025 12,647
Thereafter 50,587
Total $ 111,617
Actuarial Methods and Assumptions
The District’s net OPEB liability was measured as of June 30, 2019, and the total OPEB liability used to calculate
the net OPEB liability was determined by an actuarial valuation as of June 30, 2019. Liabilities in this report
were calculated as of the valuation date.
The total OPEB liability was determined by an actuarial valuation as of June 30, 2019, using the actuarial
assumptions shown herein, applied to all periods included in the measurement, unless otherwise specified.
Table 11-6
Actuarial Methods and Assumptions
Valuation Date June 30, 2019
Measurement Date June 30, 2019
Inflation 2.50%
Salary Increases 2.75%
Investment Rate of Return 6.50%
Health Care Trend Rate 6.50% HMO / 6.50% PPO
Mortality rates were based upon the rates under the CalPERS pensions plan updated to reflect the most recent
experience study.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
64
11) POST EMPLOYMENT HEALTHCARE BENEFITS - Continued
The long-term expected rate of return on Plan investments was determined using a building-block method in
which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan
investment expense and inflation) are developed for each major asset class. These ranges are combined to
produce the long-term expected rate of return by weighting the expected future real rates of return by the target
asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return
for each major asset class included in the OPEB plan’s target asset allocation at June 30, 2019 are shown
herein:
Table 11-7
Asset Class
Global Equity 40%5.50%
Global Debt Securities 43%2.35%
Inflation Assets 5%1.50%
Commodities 4%1.75%
REITs 8%3.65%
Assumed Gross
Return
Percentage of
Portfolio
The discount rate used to measure the total OPEB liability was 6.50 percent. The discount rate assumes the
District continues to fully fund for its retiree health benefits through the CERBT under its investment allocation
strategy 2. The rate reflects the CERBT published median interest rate for strategy 2 with an additional margin
for adverse deviation.
Changes in the Net OPEB Liability
Table 11-8
Total OPEB
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability (Asset)
(a) - (b)
Balances at June 30, 2019 $ 2,658,612 $ 642,194 $ 2,016,418
Changes for the year:
Service Cost 106,297 - 106,297
Interest 174,233 - 174,233
Differences between expected
and actual experience 192,265 - 192,265
Employer Contributions 278,539 (278,539)
Net Investment Income 48,769 (48,769)
Change of assumptions (65,798) - (65,798)
Benefit Payments (168,787) (168,787) -
Administrative Expenses (330) 330
Other Expenses (240) 240
Net Changes 238,210 157,951 80,259
Balances at June 30, 2020 $ 2,896,822 $ 800,145 $ 2,096,677
Increase (Decrease)
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
65
11) POST EMPLOYMENT HEALTHCARE BENEFITS - Continued
The following presents the District’s net OPEB liability calculated using the discount rate of 6.50 percent, as
well as what the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (5.5 percent) or 1-percentage-point higher (7.5 percent) than the current rate:
Table 11-9
Discount Rate
Net OPEB Liability
(Asset)
2,389,112$
2,096,677$
1,842,889$
1% Decrease (5.50%)
Current Discount Rate (6.50%)
1% Increase (7.50%)
The following presents the District’s net OPEB liability calculated using the current healthcare cost trend rate of
6.5 percent, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend
rates that are 1-percentage-point lower (5.5 percent) or 1-percentage-point higher (7.5 percent) than the current
rate:
Table 11-10
Healthcare Trend Rate
Net OPEB Liability
(Asset)
1% Decrease (5.50%HMO/5.50%PPO decreasing to
4.00%HMO/4.00%PPO)1,791,125$
Current Healthcare Cost Trend Rates (6.50%HMO/6.50%PPO
decreasing to 5.00%HMO/5.00%PPO)2,096,677$
1% Increase (7.50%HMO/7.50%PPO decreasing to
6.00%HMP/6.00%PPO)2,464,016$
OPEB Expense
For the year ended June 30, 2020, the District recognized OPEB expense of $247,849 and recorded deferred
outflows of resources of $436,587 for contributions made during fiscal year 2020 after the measurement date.
The deferred outflows will be recognized in OPEB expense for the period ending June 30, 2021.
The District recorded $62,612 of deferred inflows of resources resulting from the differences between projected
and actual earnings on OPEB plan investments for the period ending June 30, 2019. The deferred inflows of
resources will be amortized and recognized in OPEB expense over three remaining periods ending June 30,
2023.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2020
66
12) SUBSEQUENT EVENTS
On September 10, 2020 the District issued $16,885,000 Refunding Revenue Bonds, Series 2020A and
$13,615,000 Refunding Revenue Bonds, Series 2020B (Federally Taxable). The issuance is for refunding the
East Valley Water District Financing Authority Refunding Revenue Bonds, Series 2010, and 2013 in full; and
to pay costs of issuance associated with the 2020A and 2020B Bonds while saving the District a potential $9
million in debt service payments.
Table 12-1
Year Ended
June 30,
Prior Debt
Service
Refunding
Debt Service Savings
2021 739,494$ 590,738$ 148,756$
2022 2,590,763 2,205,086 385,677
2023 2,593,288 2,207,878 385,410
2024 2,593,763 2,207,962 385,801
2025-2044 44,250,542 36,489,201 7,761,341
Total 52,767,850$ 43,700,865$ 9,066,985$
13) CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS
The District has three significant active construction project commitments as of June 30, 2020. The following
contracts are related to the construction of the Recycled Water Facility.
Table 13-1
Contractual Commitments Spent to Date
Remaining
Commitment
Project Management & Labor Compliance for the
Recycled Water Facility 1,387,087$ 279,502$
Design-Build Services of the Recycled Water
Facility 58,751,011$ 106,878,073$
Design-Build Services of the Digester 10,586,079$ 9,642,776$
67
East Valley Water District
Schedule of Proportionate Share of the Net Pension Liability
Year Ended June 30, 2020
Last Ten Years*
68
Schedule of Proportionate Share of the Net Pension Liability
The schedule presents information on the District’s proportionate share of the net pension liability, the plans’ fiduciary
net position and, when applicable, the proportionate share of the net pension liability associated with the District. In
the future, as data becomes available, 10 years of information will be presented.
2020
Proportion of the Net Pension
Liability 0.29480%
Proportionate Share of the Net
Pension Liability $11,805,140
Covered Payroll $ 5,888,338
Proportionate Share of the Net
Pension Liability as
Percentage of Covered Payroll 200.48%
Plan's Fiduciary Net Position $34,016,773
Plan's Fiduciary Net Position
as a Percentage of the Total
Pension Liability 77.73%
2019 2018 2017 2016 2015
Proportion of the Net Pension
Liability 0.28782%0.11699%0.11585%0.11551%0.10632%
Proportionate Share of the Net
Pension Liability $10,846,955 $11,601,798 $10,024,712 $ 7,928,173 $ 6,615,935
Covered Payroll $ 5,447,702 $ 4,489,575 $ 5,097,156 $ 4,715,712 $ 4,436,236
Proportionate Share of the Net
Pension Liability as
Percentage of Covered Payroll 199.11%258.42%196.67%168.12%149.13%
Plan's Fiduciary Net Position $33,563,265 $27,706,747 $27,529,345 $28,045,198 $29,336,566
Plan's Fiduciary Net Position
as a Percentage of the Total
Pension Liability 77.69%71.37%74.06%78.40%79.82%
Note: Fiscal year 2015 was the first year of implementation, therefore only six years are shown.
East Valley Water District
Schedule of Contributions
Year Ended June 30, 2020
Last Ten Years*
69
Schedule of Contributions
The schedule presents information on the District’s required contribution, the amounts actually contributed and any
excess or deficiency related to the required contribution. In the future, as data becomes available, 10 years of
information will be presented.
2020
Contractually Required
Contribution (Actuarially
Determined)1,798,495$
Contributions in Relation to
the Actuarially Determined
Contributions 1,798,495$
Contribution Deficiency
(Excess)-$
Covered Payroll $ 5,888,338
Contributions as a
Percentage of Covered
Payroll 30.54%
2019 2018 2017 2016 2015
Contractually Required
Contribution (Actuarially
Determined)1,228,277$ 1,579,268$ 1,035,102$ 895,822$ 742,546$
Contributions in Relation to
the Actuarially Determined
Contributions 1,228,277$ 1,579,268$ 1,035,102$ 895,822$ 742,546$
Contribution Deficiency
(Excess)-$ -$ -$ -$ -$
Covered Payroll $ 5,658,626 $ 5,447,702 $ 4,489,575 $ 5,097,156 $ 4,715,712
Contributions as a
Percentage of Covered
Payroll 21.71%28.99%23.06%17.57%15.75%
Note: Fiscal year 2015 was the first year of implementation, therefore only six years are shown.
East Valley Water District
Schedule of Changes in the Net OPEB Liability
Year Ended June 30, 2020
70
Schedule of Changes in the Net OPEB Liability
Accounting standards require presentation of 10 years of information. However, the information in this schedule is not
required to be presented retroactively. Years will be added to this schedule as future data becomes available.
Total OPEB Liability 2020 2019 2018
Service Cost 106,297$ 103,452$ 97,138$
Interest 174,233 166,826 160,043
Differences bewteen exptected and actual experience 192,265
Changes of assumptions (65,796)
Benefit Payments, including refunds of member contributions (168,787) (149,550) (168,724)
Net Change in Total OPEB Liability 238,212 120,728 88,457
Total OPEB Liability - Beginning 2,658,610 2,537,882 2,449,425
Total OPEB Liability - Ending (a)2,896,822$ 2,658,610$ 2,537,882$
Plan Fiduciary Net Position 2020 2019 2018
Contributions - Employer 278,539$ 149,548$ 218,724$
Net Investment Income 48,769 37,365 36,877
Benefit Payments (168,787) (149,548) (168,724)
Administrative Expense (330) - (261)
Other Expense (240) (683) -
Net Change in Plan Fiduciary Net Position 157,951$ 36,682$ 86,616$
Plan Fiduciary Net Position - Beginning 642,194 605,512 518,896
Plan Fiduciary Net Position - Ending (b)800,145$ 642,194$ 605,512$
Net OPEB Liability (Asset) - Ending (a) - (b)2,096,677$ 2,016,416$ 1,932,370$
Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 27.62%24.16%23.86%
Covered-Employee Payroll 5,744,627$ 5,495,000$ 5,495,000$
Net OPEB Liability (Asset) as a Percentage of Covered-Employee Payroll 36.50%36.70%35.17%
Note: Fiscal year 2018 was the first year of implementation, therefore only three years are shown.
East Valley Water District
Schedule of OPEB Contributions
Year Ended June 30, 2020
71
Schedule of OPEB Contributions
Accounting standards require presentation of 10 years of information. However, the information in this schedule is
not required to be presented retroactively. Years will be added to this schedule as future data becomes available.
OPEB Contributions 2020 2019 2018
Actuarially Determined Contribution (ADC)362,533$ 285,551$ 144,415$
Contributions in Relation to the ADC (278,539) (149,548) (218,724)
Contribution Deficiency (Excess)83,994 136,003 (74,309)
District's Covered-Employee Payroll 5,744,627$ 5,495,000$ 5,495,000$
Contributions as a Percentage of Covered-Employee Payroll 6.31%5.20%2.63%
Note: Fiscal year 2018 was the first year of implementation, therefore only three years are shown.
East Valley Water District
Notes to the Required Supplementary Information
Purpose of Schedules
Year Ended June 30, 2020
72
Schedule of Changes in Net OPEB Liability
The schedule is intended to show the funded status of the District’s actuarially determind liability for postemployment
benefits other than pensions. In the future, as data becomes available, 10 years of information will be presented.
Schedule of Postemployment Healthcare Contributions
The schedule presents information on the District’s required contribution, the amounts actually contributed and any
excess or deficiency related to the required contribution. In the future, as data becomes available, 10 years of
information will be presented.
Schedule of District’s Proportionate Share of the Net Pension Liability
The schedule presents information on the District’s proportionate share of the net pension liability, the plans’ fiduciary
net position and, when applicable, the State’s proportionate share of the net pension liability associated with the
District. In the future, as data becomes available, 10 years of information will be presented.
Schedule of District’s Contributions
The schedule presents information on the District’s required contribution, the amounts actually contributed and any
excess or deficiency related to the required contribution. In the future, as data becomes available, 10 years of
information will be presented.
73
74
75
East Valley Water District
History and Organization
Year Ended June 30, 2020
76
Formation of the District
The Board of Supervisors of San Bernardino County approved a petition in writing for the formation of the East Valley
Water District (formerly East San Bernardino County Water District) under Division 12 of the Water Code of the State
of California and ordered an election held January 12, 1954. The formation of the District was voted by the electors.
The Board of Supervisors of San Bernardino County, by action on January 18, 1954, approved the formation of the
District. Incorporation of the "East Valley Water District" was approved by the State of California on February 1, 1954.
East Valley Water District Financing Authority
The East Valley Water District Financing Authority (Authority) is a public body organized and existing under a Joint
Exercise of Powers Agreement, and under the Constitution and laws of the State of California, between East Valley
Water District and the California Municipal Finance Authority. The Authority was formed to assist in the financing and
refinancing of capital improvement projects of the District for the use, benefit, and enjoyment of the public.
Nature of Business
The District has been engaged in the furnishing of water service and wastewater transmission services to its customers
since inception.
Location
The District office is located at 31111 Greenspot Road, Highland, California. The office is situated within the District's
boundaries which encompass an area of approximately 30.1 square miles within the County of San Bernardino,
California.
Directors
David E. Smith Chairman of the Board
Phillip R. Goodrich Vice-Chairman of the Board
Ronald L. Coats Governing Board Member
James Morales, Jr.Governing Board Member
Chris Carrillo Governing Board Member
East Valley Water District
David E. Smith President
Phillip R. Goodrich 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
District General Counsel
Jean Cihigoyenetche JC Law Firm
East Valley Water District
East Valley Water District
Combining Schedule of Net Position
June 30, 2020
77
Water Wastewater Eliminations Total
ASSETS
Current Assets:
Cash & Cash Equivalents 8,777,977$ -$ 8,777,977$
Investments 3,658,968 2,024,125 5,683,093
Accounts Receivable, Net 4,528,220 272,218 4,800,438
Interest Receivable 55,906 3,377 59,283
Other Receivables 567,882 - 567,882
Due From Sewer Fund 12,918,463 - 12,918,463 -
Due from Other Governments 16,145 18,890,712 18,906,857
Inventory 480,250 6,721 486,971
Prepaid Expenses 203,816 46,587 250,403
Total Current Assets 31,207,627 21,243,740 12,918,463 39,532,904
Non-Current Assets:
Restricted Cash & Cash Equivalents 5,765,371 4,429,675 10,195,046
Assessments Receivable 335,820 - 335,820
Capital Assets not being Depreciated 8,780,954 87,698,359 96,479,313
Capital Assets, Net (Note 4)106,922,688 18,635,684 125,558,372
Total Non-Current Assets 121,804,833 110,763,718 - 232,568,551
Total Assets 153,012,460 132,007,458 12,918,463 272,101,455
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 84,675 - 84,675
Deferred Outflows - Pensions 2,716,227 816,146 3,532,373
305,611 130,976 436,587
Total Deferred Outflows 3,106,513 947,122 - 4,053,635
Total Assets and Deferred
Outflows of Resources 156,118,973$ 132,954,580$ 12,918,463$ 276,155,090$
(Continued)
East Valley Water District
Combining Schedule of Net Position – Continued
June 30, 2020
78
Water Wastewater Eliminations Total
LIABILITIES
Current Liabilities:
Accounts Payable & Accrued Expenses 2,304,545$ 6,355,715$ -$ 8,660,260$
Accrued Payroll & Benefits 464,104 133,951 598,055
Customer Service Deposits 1,563,518 - 1,563,518
Construction Advances and Retentions 106,000 3,802,876 3,908,876
Accrued Interest Payable 369,820 51,181 421,001
Current Portion of Compensated
Absences 414,000 120,469 534,469
Current Portion of Long-Term Debt 2,721,186 117,499 2,838,685
Due To Water Fund - 12,918,463 12,918,463 -
Total Current Liabilities 7,943,173 23,500,154 12,918,463 18,524,864
Non-Current Liabilities:
Compensated Absences,
Less Current Portion 353,887 100,634 454,521
Net Pension Liability 9,065,574 2,739,566 11,805,140
Net OPEB Liability 1,467,674 629,003 2,096,677
Long-Term Debt, Less Current Portion 38,885,951 67,734,732 106,620,683
Total Non-Current Liabilities 49,773,086 71,203,935 - 120,977,021
Total Liabilities 57,716,259 94,704,089 12,918,463 139,501,885
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Pensions 519,366 163,230 682,596
Deferred Inflows - OPEB 43,828 18,784 62,612
Total Deferred Inflows 563,194 182,014 - 745,208
Total Liabilities and Deferred
Inflows of Resources 58,279,453 94,886,103 12,918,463 140,247,093
NET POSITION
Net Investment in Capital Assets 75,166,983 31,541,572 106,708,555
Restricted for:
Future Capital Expansion Projects 2,444,157 4,215,330 6,659,487
Unrestricted 20,228,380 2,311,575 22,539,955
Total Net Position 97,839,520$ 38,068,477$ -$ 135,907,997$
East Valley Water District
Combining Schedule of Revenues, Expenses, and Changes in Net Position
Year Ended June 30, 2020
79
Water Wastewater Total
OPERATING REVENUE
Water Sales 16,902,370$ -$ 16,902,370$
Wastewater Treatment Charges - 8,496,012 8,496,012
System Charges 9,023,267 4,647,347 13,670,614
Other Revenue 657,697 86,219 743,916
Total Operating Revenue 26,583,334 13,229,578 39,812,912
OPERATING EXPENSES
Source of Supply:
Salary & Benefits 603,432 - 603,432
Contract Services 447,085 - 447,085
Utilities 1,196,961 - 1,196,961
Insurance 3,674 - 3,674
Materials & Supplies 52,945 - 52,945
Purchased Water 816,085 - 816,085
Water Assessments 16,811 - 16,811
Chemicals 94,902 - 94,902
Professional Development 443 - 443
Taxes 31,065 - 31,065
Total Source of Supply 3,263,403 - 3,263,403
Pumping:
Salary & Benefits 58,241 - 58,241
Contract Services 39,594 - 39,594
Utilities 349,651 - 349,651
Materials & Supplies 10,360 - 10,360
Total Pumping 457,846 - 457,846
Water Treatment:
Salary & Benefits 447,308 - 447,308
Contract Services 143,971 - 143,971
Utilities 133,445 - 133,445
Materials & Supplies 27,710 - 27,710
Chemicals 138,693 - 138,693
Total Water Treatment 891,127 - 891,127
Wastewater Treatment:
Treatment Services - 8,496,012 8,496,012
Transmission & Distribution:
Salary & Benefits 2,290,630 - 2,290,630
Contract Services 802,162 - 802,162
Materials & Supplies 290,847 - 290,847
Chemicals 23,300 - 23,300
Permits 18,132 - 18,132
Tools 35,571 - 35,571
Total Transmission & Distribution 3,460,642$ -$ 3,460,642$
(Continued)
East Valley Water District
Combining Schedule of Revenues, Expenses, and Changes in Net Position - Continued
Year Ended June 30, 2020
80
Water Wastewater Total
OPERATING EXPENSES - Continued
Wastewater Collection:
Salary & Benefits -$ 462,308$ 462,308$
Contract Services - 283,436 283,436
Materials & Supplies - 21,009 21,009
Tools - 695 695
Total Wastewater Collection - 767,448 767,448
Customer Accounts:
Salary & Benefits 668,749 180,781 849,530
Contract Services 576,065 145,278 721,343
Utilities 11,650 2,009 13,659
Materials & Supplies 4,206 745 4,951
General Office Supplies 5,935 827 6,762
Tools 1,752 - 1,752
Printing & Publishing 4,175 1,789 5,964
Postage 82,782 35,478 118,260
Professional Development 1,526 190 1,716
Total Customer Accounts 1,356,840 367,097 1,723,937
General & Administrative:
Salary & Benefits 5,205,279 1,722,084 6,927,363
Contract Services 1,541,941 437,887 1,979,828
Conservation Rebates 144,259 - 144,259
Utilities 263,738 40,966 304,704
Insurance 213,136 91,344 304,480
Materials & Supplies 201,911 87,294 289,205
General Office Supplies 15,354 12,404 27,758
Legal Services 117,255 48,828 166,083
Permits 63,707 2,459 66,166
Memberships & Dues 70,122 28,774 98,896
Tools 17,725 6,546 24,271
Printing & Publishing 87,447 44,647 132,094
Professional Development 102,666 27,798 130,464
Rents & Leases 13,382 4,461 17,843
Total General & Administrative 8,057,922 2,555,492 10,613,414
OPERATING EXPENSES BEFORE
DEPRECIATION 17,487,780 12,186,049 29,673,829
Depreciation 5,752,899 822,922 6,575,821
Total Operating Expenses 23,240,679 13,008,971 36,249,650
OPERATING INCOME (LOSS)3,342,655$ 220,607$ 3,563,262$
(Continued)
East Valley Water District
Combining Schedule of Revenues, Expenses, and Changes in Net Position - Continued
Year Ended June 30, 2020
81
Water Wastewater Total
NON-OPERATING REVENUES
Investment Income 476,514$ 48,161$ 524,675$
Other Income 119,215 2,768 121,983
Total Non-Operating Revenues 595,729 50,929 646,658
NON-OPERATING EXPENSES
Interest Expense 1,393,639 185,465 1,579,104
Total Non-Operating Expenses 1,393,639 185,465 1,579,104
INCOME BEFORE CONTRIBUTIONS 2,544,745 86,071 2,630,816
CONTRIBUTIONS:
Capacity Charges 287,644 2,931,753 3,219,397
Capital Grants - 6,742,125 6,742,125
Total Contributions 287,644 9,673,878 9,961,522
CHANGE IN NET POSITION 2,832,389 9,759,949 12,592,338
TOTAL NET POSITION, BEGINNING
(AS PREVIOUSLY REPORTED)95,007,131 28,308,528 123,315,659
TOTAL NET POSITION, ENDING 97,839,520$ 38,068,477$ 135,907,997$
82
East Valley Water District
Combining Schedule of Cash Flows
Year Ended June 30, 2020
83
Water Wastewater Eliminations Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 25,927,296$ 15,860,837$ -$ 41,788,133$
Cash Payments for Employees Services (8,751,204) (2,071,380) (10,822,584)
Cash Payments to Suppliers (10,194,169) (3,873,256) (14,067,425)
Cash from Other Sources 254,644 - 254,644
Net Cash Provided
by Operating Activities 7,236,567 9,916,201 - 17,152,768
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Grant Funds Received - 6,742,125 6,742,125
Gain on Disposal 48,954 2,768 51,722
Contributed Capital 287,644 2,931,753 3,219,397
Proceeds from Loan of Capital Debt - 33,232,846 33,232,846
Due To Water Fund - 2,736,361 (2,736,361) -
Due From Sewer Fund (2,736,361) - 2,736,361 -
Principal Paid on Capital Debt (2,564,311) (105,000) (2,669,311)
Interest Paid on Capital Debt (1,498,569) (207,350) (1,705,919)
Acquisition of Capital Assets (5,603,282) (53,331,517) (58,934,799)
Net Cash Used for Capital
and Related Financing Activities (12,065,925) (7,998,014) - (20,063,939)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received from Investments 522,252 27,889 550,141
Acquisition of Investment Securities (4,819,634) (999,600) (5,819,234)
Proceeds from Sales of Investments 4,699,988 898,165 5,598,153
Loan Proceeds 6,119 - 6,119
Net Cash Provided (Used)
by Investing Activities 402,606 (73,546) 329,060
Net (Decrease) Increase in Cash
and Cash Equivalents (4,426,752) 1,844,641 (2,582,111)
Cash and Equivalents, Beginning of Year 18,963,981 2,585,034 21,549,015
Cash and Equivalents, End of Year 14,537,229$ 4,429,675$ -$ 18,966,904$
RECONCILIATION TO STATEMENT
OF NET POSITION
Cash and Cash Equivalents 8,777,977$ -$ -$ 8,777,977$
Restricted Cash and Cash Equivalents 5,765,371 4,429,675 10,195,046
Total Cash and Cash Equivalents 14,543,348$ 4,429,675$ -$ 18,973,023$
(Continued)
East Valley Water District
Combining Schedule of Cash Flows - Continued
Year Ended June 30, 2020
84
Water Wastewater Eliminations Total
Reconciliation of Operating Income (Loss) to
Net Cash Provided by Operating Activities
Operating Income (Loss)3,342,655$ 220,607$ -$ 3,563,262$
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided by
Operating Activities:
Depreciation 5,752,899 822,922 6,575,821
Change in Assets and Liabilities:
Customer Receivables (669,218) (1,404) (670,622)
Other operating receivables 254,644 - 254,644
Inventory (141,338) - (141,338)
Prepaids 36,698 (17,239) 19,459
Deferred Outflow of Resources (301,191) (129,082) (430,273)
Accounts Payable - Supplier (1,875,391) 5,964,863 4,089,472
Salaries & Benefits Payable 77,355 27,422 104,777
Compensated absences (30,733) 62,444 31,711
Net Pension Liability 670,730 287,456 958,186
Net OPEB Liability 56,181 24,078 80,259
Deferred Inflows of Resources 50,096 21,470 71,566
Customer Deposits 13,180 - 13,180
Developer Deposits - 2,632,664 2,632,664
7,236,567$ 9,916,201$ -$ 17,152,768$
NON-CASH INVESTING, CAPITAL, AND
NON-CAPITAL FINANCING ACTIVITIES:
Fair Value Adjustments to Investments 109,857$ 20,272$ -$ 130,129$
45,326 10,048,086 10,093,412
Capital Assets Acquired by Assuming
Liabilities, Including Retainage Payable
85
86
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2020
Table of Contents
87
Page No.
Statistical Information Section
Financial Trends .................................................................................................................. 89-93
These schedules contain information to help the reader understand how the District’s financial
performance and well-being have changed over time.
Changes in Net Position by Component – Last Ten Fiscal Years .................................... 89-90
Operating Revenue by Source – Last Ten Fiscal Years .........................................................91
Water Operating Expenses – Last Ten Fiscal Years ..............................................................92
Wastewater Operating Expenses – Last Ten Fiscal Years .....................................................93
Revenue Capacity ............................................................................................................. 94-100
These schedules contain information to help the reader assess the District’s most significant
sources of revenue, water sales, meter charges, wastewater system charges, wastewater
treatment charges, and other charges.
Water Sales and Production – Last Ten Fiscal Years.............................................................94
Revenue Rates for Water – Last Ten Fiscal Years ........................................................... 95-96
Revenue Rates for Wastewater – Last Ten Fiscal Years ................................................. 97-98
Active Services by Type – Last Ten Fiscal Years ...................................................................99
Principal Customers – Current Fiscal Year and Nine Years Ago ..........................................100
Debt Capacity ................................................................................................................. 101-102
These schedules present information to help the reader assess the affordability of the District’s
current levels of outstanding debt and the District’s ability to issue additional debt in the future.
Ratio of Outstanding Debt – Last Ten Fiscal Years ..............................................................101
Debt Service Coverage – Last Ten Fiscal Years ..................................................................102
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2020
Table of Contents
88
Page No.
Statistical Information Section - Continued
Demographic Information ......................................................................................................103
These schedules offer demographic indicators to help the reader understand the environment
within which the District’s financial activities take place.
Demographic and Economic Statistics – Last Ten Calendar / Fiscal Years .........................103
Operating Information .................................................................................................... 104-105
These schedules contain service and infrastructure data to help the reader understand how the
information in the District’s financial report relates to the service provided by the District.
Full-Time Equivalent Employees by Department – Last Ten Fiscal Years ...........................104
Operating and Capacity Indicators for Water and Wastewater – Last Ten Fiscal Years ......105
EAST VALLEY WATER DISTRICT
Changes in Net Position by Component
Last Ten Fiscal Years
89
Year ended June 30,
2011 2012 2013 2014 2015
Change In Net Position
Operating Revenue 25,205,990$ 28,652,017$ 31,513,194$ 32,620,577$ 30,743,445$
Operating Expenses 24,368,478 24,664,829 24,859,076 29,191,176 29,146,339
Operating Income (Loss)837,512 3,987,188 6,654,118 3,429,401 1,597,106
Non Operating Revenue
(Expenses)
Investment Income 87,589 84,094 55,310 49,846 100,830
Other Income 195,070 137,094 397,796 334,700 800,278
Interest Expense (1,286,352) (1,451,516) (1,445,981) (1,917,676) (1,980,062)
Amortization (32,851) (35,284) (69,038) (99,688) -
Gain (Loss) on
Disposal of Assets (140,301) - - (606,085) -
(1,176,845) (1,265,612) (1,061,913) (2,238,903) (1,078,954)
Special Item
Abandoned Projects - - - - (2,413,478)
Hazard Mitigation - - - - -
Capital Contributions 778,049 3,562,822 832,515 6,369,890 596,940
Change in Net Position 438,716 6,284,398 6,424,720 7,560,388 (1,298,386)
Prior Period Adjustment - 2,861,951 (537,099) - (7,956,231)
Cumulative Effect of Change
in Accounting Principles - - - - -
Net Position - Beginning 99,036,420 99,475,136 108,621,485 114,509,106 122,069,494
Net Position - Ending 99,475,136$ 108,621,485$ 114,509,106$ 122,069,494$ 112,814,877$
Net Position By Component
Net Investment in
Capital Assets 95,251,762 96,919,789 95,258,164 101,757,787 98,091,685
Restricted 103,029 416,250 920,554 2,274,769 2,322,238
Unrestricted 4,120,345 11,285,446 18,330,388 18,036,938 12,400,954
99,475,136$ 108,621,485$ 114,509,106$ 122,069,494$ 112,814,877$
(Continued)
EAST VALLEY WATER DISTRICT
Changes in Net Position by Component - Continued
Last Ten Fiscal Years
90
Year ended June 30,Year ended June 30,
2016 2017 2018 2019 2020
Change In Net Position
Operating Revenue 33,024,082$ 37,448,549$ 40,291,125$ 39,309,298$ 39,812,912$
Operating Expenses 32,655,921 32,299,587 35,980,099 35,898,073 36,249,650
Operating Income (Loss)368,161 5,148,962 4,311,026 3,411,225 3,563,262
Non Operating Revenue
(Expenses)
Investment Income 146,874 69,237 221,359 571,549 524,675
Other Income 830,806 401,323 258,560 307,247 121,983
Interest Expense (1,843,440) (1,776,684) (1,777,852) (1,684,986) (1,579,104)
Amortization - - - - -
Gain (Loss) on
Disposal of Assets - - - 705,285 -
(865,760) (1,306,124) (1,297,933) (100,905) (932,446)
Special Item
Abandoned Projects - (1,615,241) - - -
Hazard Mitigation - - (155,177) - -
Capital Contributions 732,642 2,446,118 523,918 611,673 9,961,522
Change in Net Position 235,043 4,673,715 3,381,834 3,921,993 12,592,338
Prior Period Adjustment - - - -
Cumulative Effect of Change
in Accounting Principles - - (1,711,803) - -
Net Position - Beginning 112,814,877 113,049,920 117,723,635 119,393,666 123,315,659
Net Position - Ending 113,049,920$ 117,723,635$ 119,393,666$ 123,315,659$ 135,907,997$
Net Position By Component
Net Investment in
Capital Assets 103,222,160 104,659,796 103,210,762 95,468,735 106,708,555
Restricted 2,276,695 2,847,924 3,334,940 3,460,835 6,659,487
Unrestricted 7,551,065 10,215,915 12,847,964 24,386,089 22,539,955
113,049,920$ 117,723,635$ 119,393,666$ 123,315,659$ 135,907,997$
EAST VALLEY WATER DISTRICT
Operating Revenue by Source
Last Ten Fiscal Years
91
Wastewater Wastewater Total
Year Ended Water Meter System Treatment Operating
June 30, Sales Charges Charges Charges Other Revenue
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
2017 14,556,339 8,944,652 4,703,439 8,128,030 1,116,089 37,448,549
2018 17,063,891 8,999,756 4,668,923 8,697,671 860,884 40,291,125
2019 15,746,654 9,009,881 4,643,732 8,592,950 1,316,081 39,309,298
2020 16,902,370 9,023,267 4,647,347 8,496,012 743,916 39,812,912
SOURCE: East Valley Water District - Finance Department
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
Other
Wastewater
Treatement Charges
Wastewater System
Charges
Meter Charges
Water Sales
EAST VALLEY WATER DISTRICT
Water Operating Expenses
Last Ten Fiscal Years
92
Trans Customer Accts,Total
Year Ended Source of Water & General, & Water Oper
June 30, Supply Pumping Treatment Distribution Admin Expenses
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
2017 3,401,062 646,940 750,052 2,222,953 7,696,211 14,717,218
2018 2,595,071 683,296 969,460 2,538,910 9,347,724 16,134,461
2019 2,975,348 585,585 840,623 2,819,288 9,393,555 16,614,399
2020 3,263,403 457,846 891,127 3,460,642 9,414,762 17,487,780
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
18,000,000
20,000,000
Source of Supply Pumping
Water Treatment Trans & Distribution
Customer Accts, General, & Admin
EAST VALLEY WATER DISTRICT
Wastewater Operating Expenses
Last Ten Fiscal Years
93
Customer Accts,Total
Year Ended Wastewater Wastewater General, &Wastewater Oper
June 30,Collections Treatment Admin Expenses
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
2017 425,944 8,128,030 2,510,920 11,064,894
2018 753,000 8,697,671 3,367,091 12,817,762
2019 700,507 8,592,950 3,309,983 12,603,440
2020 767,448 8,496,012 2,922,949 12,186,409
SOURCES: East Valley Water District - Customer Service and Finance Departments
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Customer Accts,
General, & Admin
Wastewater
Treatment
Wastewater
Collections
EAST VALLEY WATER DISTRICT
Water Sales and Production
Last Ten Fiscal Years
94
Water Sales Water Produced
(Acre Feet)(Acre Feet)
2010 19,803 21,792
2011 18,712 20,605
2012 19,708 20,982
2013 20,036 22,308
2014 19,910 20,665
2015 17,431 18,494
2016 14,999 16,614
2017 16,223 17,922
2018 18,361 18,997
2019 16,167 17,397
2020 17,037 17,596
SOURCES: East Valley Water District - Finance and Operations Departments
Year Ended
June 30,
0
5,000
10,000
15,000
20,000
25,000
Water Produced
Water Sales
EAST VALLEY WATER DISTRICT
Revenue Rates for Water
Last Ten Fiscal Years
95
Year ended June 30,
2011 2012 2013 2014 2015*
Tier 1-$1.45
Tier 2-$2.07
Tier 3-$2.89
Year ended June 30,
2011 2012 2013 2014 2015*
11.54$ 12.58$ 13.71$ 13.71$ 20.96$
11.54 12.58 13.71 13.71 26.61
17.56 19.14 20.87 20.87 37.92
32.49 35.41 38.60 38.60 66.19
74.47 81.17 88.48 88.48 100.12
137.40 149.77 163.25 163.25 207.54
227.30 247.76 270.06 270.06 365.85
452.06 492.74 537.09 537.09 744.67
721.76 786.72 857.52 857.52 1,366.62
(Continued)
NOTES:
HCF = Hundred Cubic Feet = 748 gallons
*On June 1, 2015 the District adopted Water Budget Based Rates.
**On January 1, 2020 the District Adopted New Water Rates.
SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions
Meter Size
Charge per HCF 1.49$ 1.62$ 1.77$ 1.77$
2
(inches)
5/8
3/4
Water Consumption Rates
Water Monthly System Charges
8
3
4
6
1
1 1/2
EAST VALLEY WATER DISTRICT
Revenue Rates for Water - Continued
Last Ten Fiscal Years
96
Year ended June 30,Year ended June 30,
2016 2017 2018 2019 2020**
Tier 1-$1.45 Tier 1-$1.63 Tier 1-$1.73 Tier 1-$1.73 Tier 1-$1.83
Tier 2-$2.07 Tier 2-$2.32 Tier 2-$2.46 Tier 2-$2.46 Tier 2-$2.61
Tier 3-$2.89 Tier 3-$3.24 Tier 3-$3.44 Tier 3-$3.44 Tier 3-$3.64
Year ended June 30,Year ended June 30,
2016 2017 2018 2019 2020
20.96$ 23.06$ 23.06$ 23.06$ 23.06$
26.61 29.27 29.27 29.27 29.27
37.92 41.71 41.71 41.71 41.71
66.19 72.81 72.81 72.81 72.81
100.12 110.13 110.13 110.13 110.13
207.54 228.30 228.30 228.30 228.30
365.85 402.44 402.44 402.44 402.44
744.67 819.14 819.14 819.14 819.14
1,366.62 1,503.28 1,503.28 1,503.28 1,503.28
NOTES:
HCF = Hundred Cubic Feet = 748 gallons
*On June 1, 2015 the District adopted Water Budget Based Rates.
**On January 1, 2020 the District Adopted New Water Rates.
SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions
Charge per HCF
Meter Size
2
(inches)
5/8
3/4
Water Monthly System Charges
8
Water Consumption Rates
3
4
6
1
1 1/2
EAST VALLEY WATER DISTRICT
Revenue Rates for Wastewater
Last Ten Fiscal Years
97
Year ended June 30,
2011 2012 2013 2014 2015*
Residential (1 to 3 units)
Flat Monthly Charge (per unit)12.93$ 14.09$ 15.36$ 15.36$ 15.36$
Commercial
Flat Monthly Charge 3.28 3.58 3.90 3.90 3.90
plus,
Charge per HCF 0.46 0.50 0.55 0.55 0.55
Year ended June 30,
2011 2012 2013 2014 2015*
Residential (Flat Monthly Charge)
Flat Monthly Charge
Residential (1 unit)16.00$ 18.50$ 18.50$ 18.50$ 18.50$
Multi-Family (2 units)16.00 37.00 37.00 37.00 37.00
Multi-Family (3 units)16.00 55.50 55.50 55.50 55.50
Commercial
Multi-family (4+ units)2.00 2.40 2.40 2.40 2.40
Non-Residential 2.00 2.40 2.40 2.40 2.40
plus,
Charge per HCF:
Multi-family (4+ units)0.95 1.25 1.25 1.25 1.25
Retail 1.90 2.10 2.10 2.10 2.10
Restaurants/Lounges 2.00 2.70 2.70 2.70 2.70
Laundromats 1.30 1.50 1.50 1.50 1.50
Dry Cleaners 1.90 2.10 2.10 2.10 2.10
Schools/Churches 0.70 1.10 1.10 1.10 1.10
Governments/Municipal 1.50 1.50 1.50 1.50 1.50
Convalescent Homes 0.95 1.35 1.35 1.35 1.35
Hotels 2.00 2.70 2.70 2.70 2.70
Ofc Bldgs/Motels 1.50 1.50 1.50 1.50 1.50
Auto Repair/Svc Stations 1.30 1.30 1.30 1.30 1.30
Car Wash 1.30 1.30 1.30 1.30 1.30
NOTES:(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 Wastewater Rate Resolutions
Wastewater Maintenance Charges
Wastewater Treatment Charges
EAST VALLEY WATER DISTRICT
Revenue Rates for Wastewater - Continued
Last Ten Fiscal Years
98
Year ended June 30,Year ended June 30,
2016 2017 2018 2019 2020
Residential (1 to 3 units)
Flat Monthly Charge (per unit)15.36$ 15.36$ 15.36$ 15.36$ 15.36$
Commercial
Flat Monthly Charge 3.90 3.90 3.90 3.90 3.90
plus,
Charge per HCF 0.55 0.55 0.55 0.55 0.55
Year ended June 30,Year ended June 30,
2016 2017 2018 2019 2020
Residential (Flat Monthly Charge)
Flat Monthly Charge
Residential (1 unit)19.18$ 20.85$ 21.55$ 21.55$ 21.55$
Multi-Family (2 units)38.37 41.72 43.10 43.10 43.10
Multi-Family (3 units)57.55 62.58 64.64 64.64 64.64
Commercial
Multi-family (4+ units)1.71 1.90 1.97 1.97 1.97
Non-Residential 3.18 3.42 3.52 3.52 3.52
plus,
Charge per HCF:
Multi-family (4 + units)1.36 1.48 1.53 1.53 1.53
Retail 2.28 2.47 2.55 2.55 2.55
Restaurants/Lounges 2.93 3.18 3.28 3.28 3.28
Laundromats 1.63 1.77 1.83 1.83 1.83
Dry Cleaners 2.28 2.47 2.55 2.55 2.55
Schools/Churches 1.19 1.29 1.33 1.33 1.33
Governments/Municipal 1.63 1.77 1.83 1.83 1.83
Convalescent Homes 1.46 1.58 1.63 1.63 1.63
Hotels 2.93 3.18 3.28 3.28 3.28
Ofc Bldgs/Motels 1.63 1.77 1.83 1.83 1.83
Auto Repair/Svc Stations 1.41 1.53 1.58 1.58 1.58
Car Wash 1.41 1.53 1.58 1.58 1.58
NOTES:
HCF = Hundred Cubic Feet = 748 gallons
*On June 1, 2015 the District adopted Water Budget Based Rates.
SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions
Wastewater Maintenance Charges
Wastewater Treatment Charges
EAST VALLEY WATER DISTRICT
Active Services by Type
Last Ten Fiscal Years
99
Year Ended Residential Multi-Family Total
June 30, (1 to 3 units) (4+ units) Commercial Irrigation Fire Svcs Service
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 19,500 463 949 275 1,330 22,517
2017 19,526 463 988 275 1,339 22,591
2018 19,526 463 988 275 361 21,613
2019 19,883 474 681 322 252 21,612
2020 19,526 463 988 275 255 21,507
SOURCES: East Valley Water District - Customer Service and Finance Departments
0
5,000
10,000
15,000
20,000
25,000
Residential Multi-Family Commercial Irrigation Fire Svcs
EAST VALLEY WATER DISTRICT
Principal Customers
Current Fiscal Year and Nine Years Ago
100
Water Percentage Water Percentage
Consumed of Total Consumed of Total
Customer (AF)Rank (%)(AF)Rank (%)
San Bernardino City Unified School District 590 1 3.35%449 2 2.18%
Patton State Hospital 419 2 2.38%793 1 3.85%
San Manuel Mission Indians 287 3 1.63%248 5 1.20%
East Highlands Ranch 258 4 1.47%434 3 2.11%
City of Highland 253 5 1.44%243 6 1.18%
San Manuel Indian Bingo & Casino 213 6 1.21%386 4 1.87%
Village Lakes Homeowners Association 162 7 0.92%150 8 0.73%
Tuscany Apartments 145 8 0.82%
Valencia Lea Mobile Home Park 119 9 0.68%129 9 0.63%
Woodman Realty Inc 118 10 0.67%
Stubblefield Mobile Home Parks & Offices 215 7 1.04%
Victoria Village Apartments 113 10 0.55%
Total - Top 10 2,564 14.57%3,160 15.34%
Total - District 17,596 100.00%20,605 100.00%
SOURCES: East Valley Water District - Customer Service and IT Departments
20112020
EAST VALLEY WATER DISTRICT
Ratio of Outstanding Debt
Last Ten Fiscal Years
101
Fiscal
Year
Revenue
Bonds DWR Loans
Capital
Lease and
Loan
Certificates
of
Particaption
Installment
Note
Outstanding
Debt
$ Per
Capita
As a Share
of Personal
Income
2011 33,545,000 - - - - 33,545,000 518 1.67%
2012 32,490,000 3,460,760 - - - 35,950,760 546 1.72%
2013 43,400,000 7,101,964 - - - 50,501,964 540 1.66%
2014 42,195,000 7,091,964 3,998,560 - - 53,285,524 561 1.63%
2015 40,930,000 7,071,964 3,671,849 - - 51,673,813 508 1.40%
2016 39,615,000 6,818,565 3,299,108 - - 49,732,673 476 *
2017 38,235,000 6,565,166 7,278,478 - - 52,078,644 510 *
2018 36,800,000 6,721,695 6,392,308 - - 49,914,003 489 *
2019 35,300,000 31,947,551 5,131,238 - - 72,378,789 710 *
2020 33,720,000 69,565,404 4,295,104 - - 107,580,508 1,044 *
NOTE:
** This data was not developed in the format required for this fiscal year.
SOURCE: East Valley Water District - Finance Department
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
Revenue Bonds DWR Loans Capital Lease and Loan
Certificates of Particaption Installment Note
EAST VALLEY WATER DISTRICT
Debt Service Coverage
Last Ten Fiscal Years
102
Gross Operating Net Available
Revenue (1)Expenses(2)Revenue Principal(3)Interest Total
2011 16,911,310 11,129,387 5,781,923 1,347,250 828,894 2,176,144 2.66
2012 18,286,850 11,424,899 6,861,951 1,048,319 980,000 2,028,319 3.38
2013 20,225,013 11,022,233 9,202,780 1,095,000 1,382,013 2,477,013 3.72
2014 27,397,559 13,219,850 14,177,709 1,167,718 1,840,671 3,008,389 4.71
2015 20,662,750 12,915,690 7,747,060 1,546,490 1,813,348 3,359,838 2.31
2016 22,543,107 15,048,582 7,494,525 1,851,139 1,718,658 3,569,797 2.10
2017 25,257,709 14,717,219 10,540,490 1,926,956 1,653,322 3,580,278 2.94
2018 27,537,072 16,134,461 11,402,611 2,479,570 1,584,820 4,064,390 2.81
2019 27,071,082 16,614,399 10,456,683 2,904,466 1,593,181 4,497,647 2.32
2020 27,466,707 17,487,780 9,978,927 2,564,310 1,456,842 4,021,152 2.48
Gross Operating Net Available
Revenue (1)Expenses(2)Revenue Principal Interest Total
2011 * * * * * * *
2012 10,674,998$ 9,500,834$ 1,174,164$ 75,000$ 36,650$ $ 111,650 10.52 %
2013 11,600,800 10,139,532 1,461,268 80,000 35,100 115,100 12.70
2014 11,974,164 10,463,608 1,510,556 85,000 184,621 269,621 5.60
2015 11,578,742 10,606,751 971,991 85,000 229,725 314,725 3.09
2016 12,095,372 10,463,081 1,632,291 90,000 225,775 315,775 5.17
2017 13,134,564 11,064,894 2,069,670 95,000 221,625 316,625 6.54
2018 13,758,976 12,817,762 941,214 95,000 217,350 312,350 3.01
2019 14,433,970 12,603,440 1,830,530 100,000 212,475 312,475 5.86
2020 22,954,385 12,186,049 10,768,336 105,000 207,350 312,350 34.48
NOTES:
(1)
(2)Operating expenses, less depreciation, for the utility fund.
(3)Excludes Debt Service for Assessment Districts' Arroyo Verde and Eastwood Farms.
* Not Applicable
SOURCE: East Valley Water District - Finance Department
Wastewater Department
Coverage
Year Ended
June 30,
Debt Service
Water Department
Year Ended
Gross revenue includes all operating revenue, interest income, other non-operating revenue and connection
fees from the utility fund.
Coverage
Debt Service
June 30,
EAST VALLEY WATER DISTRICT
Demographics and Economic Statistics
Last Ten Calendar / Fiscal Years
103
Personal Personal
Income Income
District Unemployment (thousands Per Capita
Population(3)Rate (1), (3)Population(2), +of dollars)(2), +(dollars)(2), +
2011 64,698 13.3%2,061,040 64,031,994 31,068
2012 65,850 12.2%2,074,195 65,821,308 31,733
2013 93,500 10.6%2,083,871 67,628,367 32,453
2014 95,000 8.9%2,100,776 72,097,622 34,320
2015 101,733 7.2%2,117,311 76,881,147 36,311
2016 104,457 6.0%2,134,174 80,228,377 37,592
2017 102,208 5.5%2,153,203 83,217,749 38,648
2018 102,000 4.4%2,171,603 87,550,004 40,316
2019 102,000 4.0%***
2020 103,000 6.4%***
NOTES:
+This data was revised in 2020 (2)
*This data was not developed in the format required for this fiscal year.
SOURCES:
(1)U.S. Department of Labor, Bureau of Labor Statistics (BLS)
Census Bureau midyear population estimates.
(2)Bureau of Economic Analysis (BEA)
Computed using midyear population estimates.
(3)Fiscal Year ends on June 30 of the year that is shown.
SOURCE: East Valley Water District - Finance Department
June 30,
County of San Bernardino
Year Ended
EAST VALLEY WATER DISTRICT
Full-Time Equivalent Employees by Department
Last Ten Fiscal Years
104
Year Ended District Engineering &
June 30,Administration Maintenance Operations Total
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 27 28 13 68*
2017 27 29 12 68*
2018 26.5 29 13 68.5*
2019 27.5 32 11 70.5*
2020 26 30 11 67.0
NOTES:
* - Includes Part-Time Employees (PTEs)
SOURCES: East Valley Water District - Finance and HR Departments
0
10
20
30
40
50
60
70
80
District
Administration
Engineering &
Maintenance
Operations
EAST VALLEY WATER DISTRICT
Operating and Capacity Indicators for Water and Wastewater
Last Ten Fiscal Years
105
Annual Average
Miles of Number of Production Production
Water Main Fire Hydrants (MG)(MGD)
2011 294 2,854 6,097 17
2012 297 2,854 6,422 18
2013 303 2,915 6,529 18
2014 297 2,976 6,488 18
2015 316 3,005 5,680 16
2016 316 3,005 4,887 13
2017 316 3,005 5,286 14
2018 300 3,018 5,983 16
2019 300 3,025 5,268 14
2020 300 3,025 5,552 15
Annual Daily
Miles of Service Sewerage Sewerage
Wastewater Connections (MG)(MGD)
2011 208 19,435 2,073.09 5.68
2012 224 19,477 2,247.66 6.16
2013 224 19,502 2,285.06 6.26
2014 223 19,504 2,595.08 7.11
2015 224 19,544 2,271.96 6.22
2016 224 19,572 2,167.71 5.94
2017 260 20,290 2,175.40 5.96
2018 225 20,581 2,149.85 5.89
2019 214 20,563 2,091.45 5.73
2020 214 19,679 2,220.61 6.08
NOTES:
* This data was not developed in the format required for this fiscal year.
SOURCE: East Valley Water District - Engineering and IT Departments
Water System
Wastewater System
Year Ended
June 30,
Year Ended
June 30,
106
EAST VALLEY WATER DISTRICT
Capacity Charge Funds
Year Ended June 30, 2020
107
Capacity Charge Funds
Government Code Section 66013 requires local agencies that collect capacity charges to deposit and account for
these fees in a separate capital facilities fund. In addition, local agencies are required to annual provide the information
in this report to the public upon request. Government Code Section 66013 (b) (3) defines "Capacity charge" means a
charge for public facilities at the time the charge is imposed or charges for new public facilities to be acquired or
constructed in the future that are of proportional benefit to the person or property being charged, including supply or
capacity contracts for rights or entitlements, real property interests, and entitlements and other rights of the local
agency involving capital expense related to its use of the use of existing or new public facilities. "
Government Code Section 66013 (d) outlines the reporting requirements on the capital facilities funds and
expenditures. Government Code Section 66013 (f) (2) exempts capacity charges that are used to pay existing debt
service from the reporting requirements of Section 66013 (d). Two of the District's capacity charges are used to pay
existing debt service; therefore, they are exempt from the reporting requirements. For the purpose of enhancing
transparency, the District has provided the reporting information on its capacity charges that are exempt from Section
66013 (d).
The District has the following capacity charge funds:
Water Capacity Fee Fund. This fund collects System Capacity Charges for new water service connections to pay for
proportionate shares of the District equipment replacements and facility improvements.
Wastewater Capacity Fee Fund. This fund collects a fee for the capacity used by new wastewater connections and
the funds are used to pay for equipment replacements and facility improvements.
A summary of changes in Water Fund Capacity Fees collected for the year ended June 30, 2020 is as follows:
Beginning of End of
Categories Year Contributions Usage Year
Storage 68,459$ $ 62,936 $ - $ 131,395
Treatment 658,061 143,042 801,103
Supply 390,868 37,274 428,142
Transmission 297,403 1,061 298,464
Distribution 446,932 30,781 477,713
Operations 134,656 12,550 147,206
1,996,379$ 287,644$ -$ 2,284,023$
EAST VALLEY WATER DISTRICT
Capacity Charge Funds
Year Ended June 30, 2020
108
A summary of Projects Funded by Capacity Fees for the year ended June 30, 2020:
Categories CIP Project
FY 2019-20
Expended
% Funded by
Capacity
Total Capacity
Fees Usage
Storage -$ 0%-$
Treatment 0%
Supply 0%
Transmission 0%
Distribution 0%
Operations 0%
-$ -$
A summary of Projects Funded by Capacity Fees for the year ended June 30, 2021:
Categories CIP Project *
FY 2020-21
Expended
% Funded by
Capacity
Total Capacity
Fees Usage
Storage -$ 0%-$
Treatment 0%
Supply 0%
Transmission 0%
Distribution 0%
Operations 0%
-$ -$
Note: * The District did not have any CIP projects utilizing Capacity Fee funds for the year ended June 30, 2021.
EAST VALLEY WATER DISTRICT
Capacity Charge Funds
Year Ended June 30, 2020
109
A summary of changes in Wastewater Fund Capacity Fees collected for the year ended June 30, 2020 is as follows:
Beginning of End of
Categories Year Contributions Usage Year
Collection $ 550,754 $ 916,266 $ 1,467,020
Transmission 158,406 263,534 421,940
Recharge 129,405 215,287 344,692
Operations 86,241 143,475 229,716
Treatment 358,772 1,393,191 1,751,963
1,283,578$ 2,931,753$ -$ 4,215,331$
A summary Project Funded by Capacity Fees for the year ended June 30, 2020:
Categories CIP Project*
FY 2019-20
Expended
% Funded by
Capacity
Total Capacity
Fees Usage
Collection -$ -$
Transmission
Recharge
Operations
Treatment
-$ -$
Note: * The District did not have any CIP projects utilizing Capacity Fee funds for the year ended June 30, 2020.
A summary of Projects Funded by Capacity Fees for the year ended June 30, 2021:
Categories CIP Project **
FY 2020-21
Expended
% Funded by
Capacity
Total Capacity
Fees Usage
Collection -$
Transmission
Recharge
Operations
Treatment
-$ -$
Note: ** The District did not have any CIP projects utilizing Capacity Fee funds for the year ended June 30, 2021.
S TAF F R E P ORT
Agenda Item #3.
Meeting Date: November 10, 2020
Disc ussion Item
To: F I NANC E AND HUMAN R ES O UR C ES C O MMI T T EE
F rom: C hief F inancial O ffic er
Subject: R eview Draft P opular Annual F inancial R eport for Year Ended June 30, 2020
R E C OMME N D AT ION:
S taff rec ommend s that the F inance & Human R esource C ommittee (C o mmittee) review the attac hed F Y
2019-20 P opular Annual F inanc ial R eport (PAF R ).
B AC KG R OUN D / AN ALYS IS:
Attached is the East Valley Water Dis tric t PAF R for the fisc al year ended June 30, 2020.
T he PAF R is designed to b e a summarized , us er friend ly vers io n of the Dis tric t’s C omprehens ive Annual
F inancial R ep o rt (C AF R ), which was audited and will be finalized in No vember. Mo s t financial info rmation in
the PAF R is presented in graphic form, and tec hnical note disc los ures are omitted.
In ad d ition, as with the Bud get and C AF R , the G overnment F inance O fficers Assoc iation (G F O A) produces
guidelines fo r p ro d uc ing an effec tive PAF R , and if an agenc y’s PAF R s ubstantially meets or exceeds those
guidelines, the G F O A p res ents the agency with an Award fo r O uts tand ing Ac hievement in P o p ular Annual
F inancial R eporting. T he Dis tric t received the award for its June 2019 PAF R , and that award appears o n page
2 in the c urrent year report. T he Dis tric t will s ubmit the current year PAF R for award c onsideration.
S taff rec o mmends that the June 30, 2020 PAF R d o cument be p res ented to the Board o f Direc tors in
December to approve and dis tribute to Dis tric t ratepayers .
AG E N C Y G O ALS AN D O B J E C T IVE S :
G oal and O bjectives I I - Maintain a C ommitment to S ustainability, Transparency, and Acc ountability
a) P rac tic e Trans parent and Acc ountable F is cal Management
R E VIE W B Y O T HE R S :
T his agenda item has been reviewed by the F inanc e and P ublic Affairs Departments.
F IS C AL IMPAC T
T here is no fisc al impac t as s ociated with this agenda item.
ATTAC H M EN TS:
Description Type
Draft PAFR 2020 Backup Material
HIGHLAND, CALIFORNIA
FISCAL YEAR ENDED JUNE 30, 2020
FINANCE EDITION
FINANCIAL REPORTPopular Annual
Contents
POPULAR ANNUAL FINANCIAL
REPORTING AWARD
The Government Finance Officers Association of the United States and Canada
(GFOA) has given an Award for Outstanding Achievement in Popular Annual
Financial Reporting to East Valley Water District, California for its Popular
Annual Financial Report (PAFR) for the fiscal year ended June 30, 2019.
In order to receive this award, a government unit must publish a Popular Annual
Financial Report, whose contents conform to program standards of creativity,
presentation, understandability, and reader appeal.
We believe our current PAFR continues to conform to program requirements,
and we are submitting it to GFOA to determine its eligibility for another Award.
We also welcome and encourage feedback from District ratepayers to help
make this publication more useful and/or informative.
2 POPULAR ANNUAL FINANCIAL REPORT
TRANSMITTAL LETTER .............................................1
Core Values .................................................................................1
About the District .......................................................................1
Organizational Structure .........................................................1
District Vision ..............................................................................1
District-At-A-Glance ..................................................................1
District-wide Goals ....................................................................1
Capital Improvement Projects ..............................................1
Sterling Natural Resource Center .......................................1
Community Involvement ........................................................1
FINANCIAL PERFORMANCE ...................................1
Revenue and Expenses ..........................................................1
Revenue by Sources ................................................................1
Breakdown of Expenses ........................................................1
Outstanding Long-Term Debt ...............................................1
Comparative Net Position ......................................................1
Award for
Presented to
East Valley Water District
For its Annual
June 30, 2019
Executive Director/CEO
Financial Report
for the Fiscal Year Ended
Financial ReportingPopular Annual
Achievement inOutstanding
Text38:California
Government Finance Officers Association
Governing Board of Directors
Chairman of the Board Vice Chairman
DAVID E. SMITH PHILLIP R. GOODRICH
Governing Board Member Governing Board Member
RONALD L. COATS CHRIS CARRILLO
Governing Board Member
JAMES MORALES, JR.
District Management
General Manager/CEO District Clerk
JOHN MURA JUSTINE HENDRICKSEN
Chief Financial Officer Director of Strategic Services
BRIAN TOMPKINS KELLY MALLOY
Director of Engineering & Operations
JEFF NOELTE, PHD, PE
Director of Administrative Services
KERRIE BRYAN
Operations Manager
PATRICK MILROY
Core Values
TRANSMITTALLETTER
To Our Ratepayers and Community,
We are pleased to present East Valley Water District’s (EVWD or District) Popular Annual
Financial Report (PAFR) for the fiscal year ending June 30, 2020. This report summarizes financial
information appearing in the 2020 Comprehensive Annual Financial Report (CAFR) and was created to provide
valuable information related to District finances and the Capital Improvement Projects that support the expansion and
improvement of our community’s distribution system.
The PAFR is unaudited; however, the financial data presented in the PAFR is developed based on the audited CAFR
which is consistent with Generally Accepted Accounting Principles also known as GAAP. This document can also be
reviewed on the District’s website at www.eastvalley.org/PAFR2020.
For more detailed information, the District’s Comprehensive Annual Financial Report is available for interested users
at the District Headquarters, 31111 Greenspot Road, Highland, California 92346. It can also be viewed on the District’s
website, along with other key financial documents, at www.eastvalley.org/CAFR2020. Questions comments and
feedback regarding this report are encouraged, so please do not hesitate to contact Brian Tompkins, Chief Financial
Officer, at finance@eastvalley.org or (909) 381-6463.
On behalf of the District, thank you for the opportunity to serve you.
Respectfully submitted,
John Mura
General Manager/CEO
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.
Core Values
3EAST VALLEY WATER DISTRICT
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210
HIGHLAND
SAN BERNARDINO
SEVEN OAKS DAM
About the District
The District was formed through a local election of mostly citrus grove operators, to have water service
provided by a public agency. EVWD is located in the foothills of the San Bernardino Mountains, 65 miles east
of Los Angeles in the County of San Bernardino.
District Service Area
4 POPULAR ANNUAL FINANCIAL REPORT
Organizational
Structure
Presented to the right is an overview
of the East Valley Water District’s
organizational structure. The District
employs 67 full-time positions.
Ratepayers
Governing Board
Engineering
General Manager/
CEO
Chief
Financial Officer
Information
Technology
Customer
ServiceOperations
Water
Maintenance
Meter
Services
Wastewater
Maintenance
Water
Production
Facilities
Maintenance
Water
Treatment
Fleet
Maintenance
Water
Quality
Director of
Engineering &
Operations
General
Administration
Human
Resources
Public Affairs
Legal Counsel
Finance
Conservation
PERSON/POSITION
PROGRAM
FTE: 3
FTE: 1
FTE: 4
FTE: 5
EO: 5
FTE: 5
FTE: 2
FTE: 7
FTE: 2
FTE: 2
FTE: 15
FTE: 6 FTE: 4
FTE: 2 FTE: 2
FTE: 2 FTE: 1
FTE: FULL TIME EMPLOYEES
EO: ELECTED OFFICIALS
Director of
Strategic Services
5EAST VALLEY WATER DISTRICT
&Enhance Preserve
THE QUALITY OF LIFE
FOR OUR CommunityTHROUGH INNOVATIVE LEADERSHIP
&World ClassPUBLIC SERVICE
District Vision
District At-A-Glance
EVWD provides water and wastewater services to residents within its 30.1 square mile area. This includes
over 103,000 people within the cities of Highland and San Bernardino, portions of the unincorporated County of
San Bernardino, the San Manuel Band of Mission Indians, and Patton State Hospital.
16,600,000
Average Gallons of Water Produced Daily28,977,000
Maximum Gallons of Potable Water Stored
6,000,000
Gallons of Sewage Conveyed Daily
The District serves a population
of over 103,000 FireHydrantsFlushed
625
ValvesExercised
1,500
30.1
Service Area
246
Leaks Repaired
ActiveGroundWater Wells
15 Manual &
10,000
AMI AutomaticMeters ReadMonthly
13,000
Samples Collected
3,700
Miles ofSewer Monitored
74 Miles ofSewer Cleaned177Miles of Sewer Main
214
Miles of Water Main
300
Established 1954
sq. mi.
6 POPULAR ANNUAL FINANCIAL REPORT
1 Optimize Infrastructure
Systems 2Financial Stability with Full
Understanding of Operational
Complexities
3 Protect Organizational
Investments 4 Maximize the District’s
Position 5Have Others See the District
as a Premier Agency
DISTRICT-WIDE GOALS & OBJECTIVES
District-Wide Goals & Objectives
As part of the annual budget process, District-wide goals are established by the Governing Board in order to identify
priority programs and projects. More specific program goals were established for each program consistent with
District-wide goals.
Capital Improvement Projects
The District achieved a number of different accomplishments during Fiscal Year (FY) 2019-20. As a results-oriented
organization, each program has clearly defined goals and objectives. During this period, there were four priority projects
that contributed to supporting not only the District-wide goals, but also the District-wide Vision. These projects are
included in the Five-Year Capital Improvement Program.
Each year as part of the budget process, the District’s Program Managers and Supervisors compile and submit a list of
capital outlay requests for consideration. Staff reviews and prioritizes the list of equipment based on a needs assessment
and the amount of funding available. Proposed Capital Improvement Projects for the budgeted fiscal year were submitted
by the Engineering, Operations and Maintenance Programs in accordance with the anticipated needs of the District as
outlined in the 2019 Wastewater Master Plan and 2014 Water Master Plan.
Plant 108 Tank Mixer Addition Plant 134 Security Fence Upgrade Water Main Replacements
Plant 134 Surface Water Treatment
Plant Membrane Replacement
Plant 39A Rehabilitation
No.1 No.2 No.3
No.4 No.5
7EAST VALLEY WATER DISTRICT
Plant 108 Tank Mixer Addition
Installed tank mixers in the reservoir at Plant 108 to keep the water
circulating and reduce the potential for TTHMs.
DATE COMPLETED: May 2020 PROJECT COST: $28,394
PROJECT BENEFITS: Prevent taste and odor concerns within the District’s
water supply.
Plant 134 Security Fence Upgrade
Removed existing 2,050 feet of 6-foot-tall chain-linked fence and replaced
it with 8-foot-tall wrought iron.
DATE COMPLETED: December 2019 PROJECT COST: $210,885
PROJECT BENEFITS: This perimeter fence addressed site security
enhancements identified in the vulnerability assessment.
Water Main Replacements
Replaced approximately 2,530 feet of water main with limited access on
Barton Street, and several cul-de-sacs that were served by under-sized
polyvinyl chloride or PVC pipe.
DATE COMPLETED: June 2020 PROJECT COST: $216,343
PROJECT BENEFITS: Reduced the potential for future water leaks in
Barton Street caused by old water mains and virtually eliminated the need
for staff time to repair them; and enhanced fire protection and water quality
for 34 customer connections living on five different cul-de-sacs.
Plant 134 Surface Water TreatmentPlant Membrane Replacement
The Plant 134 Surface Water Treatment Plant has five treatment units or
"trains" that consist of 180 membrane filters per train. The manufacturer
of the filters recommends replacing the filter every five to seven years. In
Fiscal Year 2019-20 staff replaced one full train.
DATE COMPLETED: January 2020 PROJECT COST: $248,146
PROJECT BENEFITS: Reduced staff time since new membranes
decreased the repair work required compared to aging membranes.
Plant 39A Rehabilitation
Rehabilitated Plant 39A and replaced or rehabilitated booster motors, well
and booster pumps, and the well motor.
DATE COMPLETED: June 2020 PROJECT COST: $389,591
PROJECT BENEFITS: Reduced water leaks and spillage from the
equipment and increased the plant's efficiency resulting in electrical
savings.
No.1
No.2
No.3
No.4
No.5
8 POPULAR ANNUAL FINANCIAL REPORT
MAKING EVERY SOURCE A RESOURCE
Capable of recycling up to 8 million gallons of water per day, the Sterling Natural Resource Center (SNRC) will create a
sustainable new water supply for our region and enhance the quality of life for residents by providing new opportunities
in the form of education and training, community space, and neighborhood improvements.
The SNRC is being constructed on a 16-acre parcel of land located at North Del Rosa Drive between East 5th Street and
East 6th Street, and strives to create a sustainable future by maximizing the use of resources.
Benefits to the Community
Picnic area, demonstration garden, walking paths,
workshop space, and special events area.
Water treated at the SNRC will recharge the local
Bunker Hill Groundwater Basin.
Hands-on training and career experiences in wastewater
treatment available to students and residents.
Improvements to the surrounding area include street
paving, water lines, sidewalks, and more.
3 Yearsto construct
Building a Community Partner
While under construction, the SNRC is investing in
future generations.
Striving to inspire and prepare future water
professionals, the SNRC has partnered with the
San Bernardino City Unified School District and
San Bernardino Valley College to develop a Water
and Resource Management Pathway Program.
The program offers local high school students with
training and certifications in wastewater treatment at
no cost. Now in its second school year, there are 17
students virtually participating in the program.
The Sterling Natural Resouce Center
is changing every day!
Time-lapse construction videos for both
east and west portions of the project can
be viewed online at eastvalley.org/snrc.
Watch Now
*Funding for this Sterling Natural Resource Center project has been provided in full or in part by the Proposition 1 - the Water Quality, Supply, and Infrastructure Improvement Act of 2014 and the Clean Water
State Revolving Fund through an agreement with the State Water Resources Control Board. California’s Clean Water State Revolving Fund is capitalized through a variety of funding sources, including grants
from the United States Environmental Protection Agency and state bond proceeds.
The Urban Greening Program is part of California Climate Investments, a statewide program that puts billions of cap-and-trade dollars to work reducing greenhouse gas emissions, strengthening the economy
and improving public health and the environment—particularly in disadvantaged communities. The cap-and-trade program also creates a financial incentive for industries to invest in clean technologies and
develop innovative ways to reduce pollution. California Climate Investment projects include affordable housing, renewable energy, public transportation, zero-emission vehicles, environmental restoration, more
sustainable agriculture, recycling and much more. At least 35 percent of these investments are made in disadvantaged and low-income communities. For more information, visit California Climate Investments.
GOVERNOR GAVIN NEWSOM Cap and TradeDollars at Work
The SNRC is Funded in Part By:
3 Years
9EAST VALLEY WATER DISTRICT
Maximizing Resources
State-of-the-art co-digestion technology
will give food waste a new purpose.
Material remaining after the treatment of
wastewater will be combined with food
waste to create renewable electricity.
Renewable electricity will offset
the SNRC’s operating costs.
Extra energy created will be
transferred onto the electricity grid.
Being Good Neighbors
As part of the SNRC’s commitment to being a good
neighbor, the project’s design includes extensive state-
of-the-art vessel systems to help prevent unwanted
odors. These systems will “scrub” the air so that there is
no noticeable odor coming from the facility.
Additionally, through the use of Membrane BioReactors,
which is a process that combines filtration with biological
treatment to dramatically reduce the amount of space
needed to operate the facility. Therefore, allowing for the
reclamation process to be completely self-contained.
Water produced by the SNRC will be cleaned
and disinfected through multiple processes.
Recycled water is clear and has no smell.
Southern California Edison’s Self
Generation Incentive Program rewards
new construction that offsets energy
demands, resulting in approximately
$3 million in construction incentives.
If constructed at one time, most of the
SNRC will be eligible for an exclusion
from sales tax, when applicable, resulting
in $3.5 million in sales tax exclusions.
Project Saving Opportunities
Striving to being stewards of rate payer dollars, the
District continues to identify programs that offer
incentives for projects like the SNRC.
10 POPULAR ANNUAL FINANCIAL REPORT
Serving the Community
The unexpected COVID-19 pandemic impacted the lives of communities around the world and residents served by
East Valley Water District in ways that could not have been predicted. Witnessing the amount of uncertainty and need
for assistance during this critical time, the District partnered up with local organizations to lend a helping hand. Never
wavering on its commitment to public service, District staff continued working throughout the pandemic to maintain
services to the community.
Sharing Important Resources
During the COVID-19 outbreak, the need for previously
underutilized resources became greater. Residents were
faced with the challenge of researching resources available
in their city while also dealing with concerns for their health
and safety. Aiming to alleviate some of the stress, the District
partnered with a local grocery store to provide residents with
contact information to free mental support services, food
distribution events, testing sites, infection prevention tips,
and other community services.
Supporting Local Non-Profits
Together we can do more. Striving to make an impact on
the lives of residents, East Valley Water District is proud
to support local non-profit organization with fulfilling their
mission of serving the community through its Surplus
Vehicle Donation Program. This program provides fully
functional vehicles to organizations that provide valuable
services to the community. This fiscal year, the District
donated a vehicle to Santa Claus Inc.
Para Más Información Visite eastvalley.org/covid19resources
Guí d Recurso Comunitario
E Agu de Gif e Segur Par Bebe
COMIDAS PARAS
PERSONAS MAYORES
El Centro Para Personas Mayores de Highland, en asociación con la Banda de Indios Misioneros de San Manuel, están proporcionando almuerzos calientes gratuitos
a los mayores. Lunes a viernes de 11:30 AM a 12:30 PM. Pase por la linea de carros localizado en 3102 de Highland Ave., Highland.
RESULTADOS DE
LAS PRUEBAS
El Departamento de Salud Pública del
Condado de San Bernardino tiene una
pagina de web que registra el numero de
casos de COVID-19 en nuestro condado.
Visite la pagina en:
http://wp.sbcounty.gov/dph/coronavirus
WWW
NÚMEROS
IMPORTANTES
Línea de información pública del Condado
de San Bernardino: (909) 387-3911
Distrito Escolar Unificado de la Ciudad de
San Bernardino: (909) 888-5437
Centro Para Personas Mayores de Highland:
(909) 862-8104
SERVICIOS
DE ASISTENCIA
Si usted o alguien que conoce se siente solo o
necesita apoyo, llame o envíe un mensaje de texto
para comunicarse con personal especializada del
Departamento de Salud. Es gratis y confidencial.
Llame al (909) 458-1517 o envíe un mensaje de
texto al (909) 420-0560
NO NECESITA COMPRAR AGUA EMBOTELLADA
East Valley Water District utiliza tecnología moderna y un método de
ultrafiltración de tratamiento que tratar hasta 8 millones de galones de
agua por día. No hay necesidad de almacenar agua embotellada. Usted
tiene un suministro de agua segura en casa.
JUNTOS
PODEMOS
PREVENIR
LA INFECCION
Evite Tocarse Su Cara
Mantenga Su Distancia de Al Menos 6 pies
Cubra Su Tos y Estornudos
Lávese SusManos Con Frecuencia
Opcione d Pag d Factura Gatuita
7 ELEVENSolo Efectivo, Recuerde Traer Su Factura
(909) 889-9501VISA, Mastercard,Amex o E-Check
TELÉFONO31111 Greenspot RoadCash, VISA,Mastercard o Amex
KIOSCO DE PAGO
eastvalley.orgVISA, Mastercardo Amex
POR POR LÍNEA
Senior Meal Events
With residents asked to shelter in place, organizations
like the Highland Senior Center were temporarily closed,
leaving older adult residents in need of nutrition services.
As a result, East Valley Water District and the San Manuel
Band of Mission Indians partnered with the Center to
provide free hot lunches through various drive-thru
events. Over 100 meals where distributed each day from
March 30 to April 11, 2020. The District also participated in
contact-less grocery delivery to a local senior living facility
in partnership with the City of Highland.
For More Information
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TRACK COVID19
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IMPORTANT
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District: (909) 888-5437
Highland Senior Center
:
(909) 862-8104
SUPPORT
SERVICES
If you or anyone you kn
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Call (909) 458-1517 or Text
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NO NEED FOR BO
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LET’S WORK
TOGETHER
TO SLOW
THE SPREAD
AvoidTouchingYour Face
Keep aDistanceof at Least6 Feet
Cover aCoughor Sneeze
Wash Your
Hands Often
Fe Bil Paymen Option
Cash Only,Rememberto Bring Your Bill
7 ELEVEN(909) 889-9501VISA, Mastercard,Amex or E-Check
PHONE31111 Greenspot RoadCash, VISA,Mastercard or Amex
KIOSKeastvalley.orgVISA, Mastercardor Amex
ONLINE
11EAST VALLEY WATER DISTRICT
FINANCIALPERFORMANCE
Revenue and Expenses
Providing safe drinking water to over 103,000 customers every day is the District’s
top priority and also one of its most significant expenses. The graphs below represent the
District’s combined revenue and expenses for FY 2019-20. For comparison purposes, FY 2017-18 and
FY 2018-19 revenue and expenses have also been included.
Please refer to the District’s CAFR for a comprehensive breakdown of expenses, which includes the
availability of additional details.
How is Revenue Managed?
The District utilizes revenue to fund daily operations, scheduled capital improvements and replacements, and principal
and interest for debt financed construction projects. Remaining revenue is invested back into capital improvement
projects to help maintain and improve the District’s system health so that EVWD may continue taking steps to support
the Vision Statement of providing world class public service.
Revenue also provides funding for conservation and rebate programs, which empowers customers to be efficient water
users and encourages water savings indoors and out. Excess net revenue after covering expenses and payments is
added to reserves, for capital replacements and unforeseen emergency expenses.
-GrantsNon-OperatingOperating
FY 2019-20
$50.42MILLION
FY 2018-19 FY 2017-18
$41.50MILLION $41.29MILLION
$37.92MILLION$37.58MILLION
$37.83MILLION
Revnue Expense
Contributions -Non-OperatingOperating Special Items
FY 2019-20 FY 2018-19 FY 2017-18
Fiscal Year 2019-20 Rae Revnue
42%WATER SALES
23%METER CHARGES
12%WASTEWATERCOLLECTION
21%WASTEWATERTREATMENT
2% OTHER CHARGES
12 POPULAR ANNUAL FINANCIAL REPORT
Revenue by Sources
The District uses revenue to fund day-to-day operations.
East Valley Water District receives 97 percent of its revenue from user rates and fees; the District receives no increment
from property or sales taxes. Rates and fees are reviewed on 3 to 5 year cycles and are adjusted as necessary to
meet the costs of providing services to ratepayers.
26.9 25.5 26.6 25.4 25.9
13.4 13.8 13.2 13.6 13.8
10
15
20
25
30
FY 17-18
Actual
FY 18-19
Actual
FY 19-20
Actual
FY 20-21
Projected
FY 21-22
Projected
Water Operating Revenue Wastewater Operating Revenue
Revnue Hisry & Frecas (in milins)
Note: The District’s
water sales and meter
charge revenue is
expected to decrease
through FY 2020-21.
Due to rate increases,
residents tend to reduce
their water usage.
Additional information
regarding the approved
rates can be found at
eastvalley.org/rates.
Meter charges are fixed monthly charges
assessed to customers based on the size
of the service connection to their property.
Wastewater collection charges
are 1) fixed monthly charges for
single family residences, and
2) a combination of fixed and
volumetric charges for commercial
and multi-family customers.
Wastewater treatment rates are
established by, and revenue remitted
to, the City of San Bernardino Municipal
Water Department, which is currently
contracted to treat all wastewater
generated by District customers.
Other charges are assessed
according to an adopted fee
schedule, but are only charged to
users who request, or require, use
of District resources beyond the
scope of delivering normal water
and wastewater services.
Water sales are based on
the volume of water used
by a customer during the
monthly billing period.
13EAST VALLEY WATER DISTRICT
Breakdown of Expenses
Expenses are the cost of providing water to meet customer demand and collecting and treating wastewater
from customer residences or places of business. East Valley Water District strives to provide safe and
reliable water delivery services. Despite the severity of the recent drought, the District has put forth significant effort
to overcome the challenges of maintaining a fiscally sustainable and operationally dependable organization.
Operating expenses are identified and accounted for at the department level.
Source of Supply - Expenses related to the extraction of groundwater,
and for procuring water from the Santa Ana River or State Water Project
when supply is available.
Pumping - Expenses related to moving water throughout the District’s
water distribution system.
Water Treatment - Expenses related to the treatment of water.
Transmission and Distribution - Expenses for transmitting water to
treatment plants and storage reservoirs for distribution to commercial
and residential customers.
Customer Accounts - Expenses related to the service of customer
accounts including, postage, telephone, printing and publishing, and
billing services.
Wastewater Treatment - Expenses related to the contracted service
currently provided by the City of San Bernardino Municipal Water
Department.
Wastewater Collection - Expenses for the operation and maintenance
of the District’s system of wastewater collection pipelines.
Administrative and General - Expenses related to the administration
of District operations. For example, employee compensation, benefits,
conservation rebates, office supplies, banking services, materials and
supplies, utilities, fuel, permits, insurance claims, legal services, and
printing and publishing.
Depreciation - Expenses related to the use of capital assets over time.
Other Expenses - Expenses not related to the District’s current cost of
utility service delivery.
Explanation of Expenses
Expense
9
1
2
9
5
23
2
28
17
4
Source of Supply
Pumping
Treatment
Trans & Distribution
Customer Accts
Wastewater Treatment
Wastewater Collection
Admin & General
Depreciation
Interest Expense
This graph identifies how every dollar spent
is allocated to cover expenses (in cents).
14 POPULAR ANNUAL FINANCIAL REPORT
Outstanding Long-Term Debt
Much like how a mortgage is financed to spread costs over 30 years, East Valley Water District has incurred debt to fund
large capital projects. The District has adopted a Debt Management Policy to clearly state that long-term borrowing is
only to be used for Capital Improvement Projects that cannot be funded from current revenues.
Similar to an individual’s credit score, public agencies have a bond rating used by investors to determine risk. The
District has a bond rating of AA- by both the Fitch and the Standard and Poor’s rating services. This is considered a high
quality investment grade.
East Valley Water District’s long-term debt consists of bonds, loans and installment purchases.
Explanin f Deb (in milins)
63.4%STERLING NATURALRESOURCE CENTER
1.7% US BANK LOAN
21.6%2010 BONDS
12.1%2013 BONDS
2.6% SBVMWD LOAN
6.2% STATE DEPT. OF WATER RESOURCE
US Bank Loan - Issued
for the purchase and
installation of energy
conservation equipment
at several of the District’s
water production facilities.
Sterling Natural Resource
Center Loan - Funded the
design and construction of
the District’s water recycling
facility that will capture and treat
District wastewater flows. Recycled
water will be recharged to the
Bunker Hill Groundwater basin.
2010 Bonds - Issued to refinance all
previous outstanding long-term debt
and to provide $16 million for water
quality improvement projects.
2013 Bonds - Financed the
construction of the District’s
new administration and
operations headquarters
designed to serve as a
resource for the community.
State Department of Water Resources Loans -
Funded the improvement and expansion of the
District’s surface water treatment plant.
SBVMWD Loans - Agreement
with the San Bernardino Valley
Municipal Water District for
the construction, financing,
and maintenance of a City
Creek Turnout and Plant 134
Hydroelectric Station. The station
provides the District with direct
access to State Project Water,
to be used for the surface water
treatment plant.
15EAST VALLEY WATER DISTRICT
Two-Year Comparative Net Position (In Millions)
As an infrastructure based organization, the District directs significant resources in capital investments to maintain
and improve its water and wastewater system. Comparative net position offers perspective of the District’s assets,
liabilities, and equity. The information presented below applies to fiscal years ended June 30, 2020 and 2019.
Current Assets - Cash and cash equivalents, customer utility
receivables, inventory, prepaid expenses, and other liquid
assets that can be readily converted to cash.
Restricted Assets - Cash equivalents, grants and bonds
restricted for a specific purpose and therefore not readily
available to use.
Other Assets - Special Assessments receivable from certain
property owners for system improvements that benefit only
their properties.
Capital Assets - Any land, building, equipment, vehicles,
inventory, treatment plants, pipeline, and water distribution
systems owned by the District.
Deferred Outflow of Resources - Use of net assets attributed
to future reporting periods, such as prepaid items and
deferred charges.
Explanation of Assets
Current Liabilities - Present financial obligations including,
payments to vendors, payroll, and employee benefits.
Non-Current Liabilities - Long-term financial obligations
including payments for loans, bonds, and employee
retirement benefits.
Deferred Inflow of Resources - Receipt of net assets
attributed to future reporting periods, such as deferred
revenue and advance collections.
Equity (Net Position) - Represents the excess of assets
over liabilities.
Explanation of Liabilities and
Equity (Net Position)
Ne Psin 2020
$276.1 MILLION TOTAL ASSETS
Ne Psin 2019
$220.4 MILLION TOTAL ASSETS
$39.5 $10.2
$0.3
$4.1
$222Current Assets
Restricted Assets
Other Assets
Capital Assets
Deferred Outflows of Resources
Current Liabilities
Non-Current Liabilities
Net Position
Deferred Inflows
$276.1 MILLION LIABILITIES & EQUITY $220.4 MILLION LIABILITIES & EQUITY$18.5
$121
$0.70
$3.6
$135.9
$38.6
$169.7
$0.3
$8.2
$11.5
$123.2
$85
$0.70
Safe Reliable Water & Wastewater Service Provider
East Valley Water District was formed in 1954 and provides
water and wastewater services to over 103,000 residents
within the cities of Highland and San Bernardino, and
portions of San Bernardino County. EVWD operates
under the direction of a 5-member elected Board.
Office Hours
Monday – Thursday 8:00am – 5:00pm
2nd and 4th Tuesday 9:00am – 5:00pm
Friday 7:30am – 4:30pm
Customer Service & After-Hours
Emergency Service
(909) 889-9501
District Headquarters
31111 Greenspot Road
Highland, California 92346
(909) 889-9501 www.eastvalley.org
District Board Meetings
Second and Fourth Wednesday of Each Month
To attend online or telephonically or through the Microsoft
Teams App, visit www.eastvalley.org/AgendaCenter for
details and login information.