HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 12/05/2022FINANCE & HUMAN RESOURCES COMMITTEE
DECEMBER 5, 2022
East Valley Water District was formed in 1954 and provides water and wastewater services to
103,000 residents within the cities of San Bernardino and Highland, and portions of San
Bernardino County.
EVWD operates under the direction of a 5member elected Board.
COMMITTEE MEMBERS
David E. Smith
Governing Board Member
James Morales Jr.
Governing Board Member
Finance & Human Resources Committee Meeting
December 05, 2022 4:00 PM
31111 Greenspot Road, Highland, CA 92346
www.eastvalley.org
PLEASE NOTE:
Materials related to an item on this agenda submitted to the Board after distribution of the
agenda packet are available for public inspection in the District’s office located at 31111
Greenspot Rd., Highland, during normal business hours. Also, such documents are available
on the District’s website at eastvalley.org and are subject to staff’s ability to post the
documents before the meeting.
Pursuant to Government Code Section 54954.2(a), any request for a disabilityrelated
modification or accommodation, including auxiliary aids or services, that is sought in order
to participate in the above agendized public meeting should be directed to the District Clerk
at (909) 8854900 at least 72 hours prior to said meeting.
In order to comply with legal requirements for posting of agenda, only those items filed
with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday
meeting not requiring departmental investigation, will be considered by the Board of
Directors.
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL OF BOARD MEMBERS
PUBLIC COMMENTS
Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card
and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to
three (3) minutes, unless waived by the Chairman of the Board. Under the State of California
Brown Act, the Board of Directors is prohibited from discussing or taking action on any item
not listed on the posted agenda. The matter will automatically be referred to staff for an
appropriate response or action and may appear on the agenda at a future meeting.
DISCUSSION AND POSSIBLE ACTION ITEMS
1.Review the Draft Annual Comprehensive Financial Report (Annual Report) for Fiscal
Year 202122
2.Review Resolution 2023.01 Establishing Procedures and Policies for the Presentation
of Claims Against the District, which will supersede Resolution 2013.08, and Policy 8.3
– Claims Against the District.
3.Review the Draft Popular Annual Financial Report (PAFR) for Year Ended June 30,
2022
REPORTS
4.Report on Finance Activities
5.Report on Human Resources Activities
ADJOURN
FINANCE & HUMAN RESOURCES COMMITTEEDECEMBER 5, 2022East Valley Water District was formed in 1954 and provides water and wastewater services to103,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5member elected Board.COMMITTEE MEMBERS
David E. Smith
Governing Board Member
James Morales Jr.
Governing Board Member
Finance & Human Resources Committee Meeting
December 05, 2022 4:00 PM
31111 Greenspot Road, Highland, CA 92346
www.eastvalley.org
PLEASE NOTE:
Materials related to an item on this agenda submitted to the Board after distribution of the
agenda packet are available for public inspection in the District’s office located at 31111
Greenspot Rd., Highland, during normal business hours. Also, such documents are available
on the District’s website at eastvalley.org and are subject to staff’s ability to post the
documents before the meeting.
Pursuant to Government Code Section 54954.2(a), any request for a disabilityrelated
modification or accommodation, including auxiliary aids or services, that is sought in order
to participate in the above agendized public meeting should be directed to the District Clerk
at (909) 8854900 at least 72 hours prior to said meeting.
In order to comply with legal requirements for posting of agenda, only those items filed
with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday
meeting not requiring departmental investigation, will be considered by the Board of
Directors.
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL OF BOARD MEMBERS
PUBLIC COMMENTS
Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card
and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to
three (3) minutes, unless waived by the Chairman of the Board. Under the State of California
Brown Act, the Board of Directors is prohibited from discussing or taking action on any item
not listed on the posted agenda. The matter will automatically be referred to staff for an
appropriate response or action and may appear on the agenda at a future meeting.
DISCUSSION AND POSSIBLE ACTION ITEMS
1.Review the Draft Annual Comprehensive Financial Report (Annual Report) for Fiscal
Year 202122
2.Review Resolution 2023.01 Establishing Procedures and Policies for the Presentation
of Claims Against the District, which will supersede Resolution 2013.08, and Policy 8.3
– Claims Against the District.
3.Review the Draft Popular Annual Financial Report (PAFR) for Year Ended June 30,
2022
REPORTS
4.Report on Finance Activities
5.Report on Human Resources Activities
ADJOURN
FINANCE & HUMAN RESOURCES COMMITTEEDECEMBER 5, 2022East Valley Water District was formed in 1954 and provides water and wastewater services to103,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5member elected Board.COMMITTEE MEMBERSDavid E. SmithGoverning Board Member James Morales Jr.Governing Board MemberFinance & Human Resources Committee MeetingDecember 05, 2022 4:00 PM31111 Greenspot Road, Highland, CA 92346www.eastvalley.orgPLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disabilityrelatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 8854900 at least 72 hours prior to said meeting.
In order to comply with legal requirements for posting of agenda, only those items filed
with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday
meeting not requiring departmental investigation, will be considered by the Board of
Directors.
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL OF BOARD MEMBERS
PUBLIC COMMENTS
Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card
and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to
three (3) minutes, unless waived by the Chairman of the Board. Under the State of California
Brown Act, the Board of Directors is prohibited from discussing or taking action on any item
not listed on the posted agenda. The matter will automatically be referred to staff for an
appropriate response or action and may appear on the agenda at a future meeting.
DISCUSSION AND POSSIBLE ACTION ITEMS
1.Review the Draft Annual Comprehensive Financial Report (Annual Report) for Fiscal
Year 202122
2.Review Resolution 2023.01 Establishing Procedures and Policies for the Presentation
of Claims Against the District, which will supersede Resolution 2013.08, and Policy 8.3
– Claims Against the District.
3.Review the Draft Popular Annual Financial Report (PAFR) for Year Ended June 30,
2022
REPORTS
4.Report on Finance Activities
5.Report on Human Resources Activities
ADJOURN
Agenda Item
#1
December 5, 20221
Meeting Date: December 5, 2022
Agenda Item #1
Discussion Item
6
0
0
Regular Meeting
TO: Committee Members
FROM: Chief Financial Officer
SUBJECT: Review the Draft Annual Comprehensive Financial Report (Annual Report)
for Fiscal Year 2021-22
RECOMMENDATION
That the Finance and Human Resources Committee recommend to the Board of
Directors (Board) to approve the attached draft Annual Report for fiscal year 2021-22.
BACKGROUND / ANALYSIS
Each year, the District contracts with an external audit firm to conduct an annual audit
of the District’s books and records for the current fiscal year in compliance with
California Water Code §30540(b)(2). Firms are usually retained by the District to serve
as auditors for a period of five years, after which the District uses a formal Request For
Proposal (RFP) process to solicit proposals from qualified firms and select new auditors.
In February of this year the RFP process was used to select a new audit firm, Rogers,
Anderson, Malody & Scott (RAMS) in San Bernardino.
On May 16, 2022, the audit partner from RAMS met with the Committee to review the
auditing services to be provided during the audit for fiscal year ended June 30, 2022.
In addition, RAMS described the procedures that were to be used to perform their audit
in accordance with generally accepted auditing standards (GAAS).
Once the audit is complete, the final requirement under Statement of Auditing
Standards 114 (SAS 114) is for the auditors to communicate to those charged with
governance:
•Their views about qualitative aspects of the entity's significant accounting
practices, including accounting policies, accounting estimates, and financial
statement disclosures;
•Significant difficulties, if any, encountered during the audit
•Uncorrected misstatements, other than those the auditor believes are trivial, if
any;
•Disagreements with management, if any; and
•Other findings or issues, if any, arising from the audit that are, in the auditor's
professional judgement, significant and relevant to those charged with
governance regarding their oversight of the financial reporting process.
Agenda Item
#1
December 5, 20222
Meeting Date: December 5, 2022
Agenda Item #1
Discussion Item
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0
Also attached is a preliminary draft of the 2021-22 Annual Report for the Committee’s
review. The Annual Report includes the District’s annual financial statements with
accompanying note disclosures, management discussion and analysis, and statistical
information compiled by staff.
The 2021-22 Annual Report will receive an unmodified opinion from RAMS. An
unmodified opinion indicates the financial data of the District is presented fairly. RAMS
conducted an audit in accordance with auditing standards generally accepted in the
United States of America and guidelines established by the California State Controller
for Special Districts.
In addition, the District will apply for the Government Finance Officers Association
(GFOA), Certificate of Achievement for Excellence in Financial Reporting to ensure the
District’s Annual Report once again meets high standards in governmental accounting
and financial reporting. East Valley Water District has received the GFOA award for ten
consecutive years.
AGENCY GOALS AND OBJECTIVES
II - Maintain a Commitment To Sustainability, Transparency, and Accountability
A. Practice Transparent and Accountable Fiscal Management
REVIEW BY OTHERS
This agenda item has been reviewed by the Finance Department.
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
Respectfully submitted:
________________
Brian Tompkins
Chief Financial Officer
ATTACHMENTS
Draft Annual Report 2022
Comprehensive Annual Financial Report
Fiscal Year Ended
June 30, 2022
East Valley Water District
Prepared by: Finance Department
31111 Greenspot Road
Highland, CA 92346
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2022
Table of Contents
1
Page No.
Introductory Section
Letter of Transmittal.......................................................................................................... 5
Organizational Structure .................................................................................................... 9
Principal Officials ............................................................................................................. 10
GFOA Certificate ............................................................................................................ 11
Financial Section
Independent Auditors’ Report ...................................................................................... 13-15
Management’s Discussion and Analysis ......................................................................... 16-27
Basic Financial Statements
Statement of Net Position ......................................................................................... 29-30
Statement of Revenues, Expenses, and Changes in Net Position ................................... 31-32
Statement of Cash Flows ........................................................................................... 33-34
Notes to the Basic Financial Statements ..................................................................... 35-65
Required Supplementary Information
Schedule of District’s Proportionate Share of the Net Pension Liability ............................... 67
Schedule of District’s Contributions ................................................................................ 68
Schedule of Changes in the Net OPEB Liability ................................................................ 69
Schedule of OPEB Healthcare Contributions .................................................................... 70
Notes to the Required Supplementary Information .......................................................... 71
Supplementary Information
History and Organization ............................................................................................... 74
Combining Schedule of Net Position ........................................................................... 75-76
Combining Schedule of Revenues, Expenses, and Changes in Net Position .................... 77-79
Combining Schedule of Cash Flows ............................................................................ 80-82
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2022
Table of Contents
2
Page No.
Statistical Information Section
Financial Trends
Changes in Net Position by Component – Last Ten Fiscal Years .................................... 87-88
Operating Revenue by Source – Last Ten Fiscal Years ..................................................... 89
Water Operating Expenses – Last Ten Fiscal Years .......................................................... 90
Wastewater Operating Expenses – Last Ten Fiscal Years ................................................. 91
Revenue Capacity
Water Sales and Production – Last Ten Fiscal Years ........................................................ 92
Revenue Rates for Water – Last Ten Fiscal Years ........................................................ 93-94
Revenue Rates for Wastewater – Last Ten Fiscal Years ................................................ 95-96
Active Services by Type – Last Ten Fiscal Years .............................................................. 97
Principal Customers – Current Fiscal Year and Nine Years Ago.......................................... 98
Debt Capacity
Ratio of Outstanding Debt – Last Ten Fiscal Years ........................................................... 99
Debt Service Coverage – Last Ten Fiscal Years............................................................... 100
Demographic Information
Demographic and Economic Statistics – Last Ten Calendar / Fiscal Years ......................... 101
Operating Information
Full-Time Equivalent Employees by Department – Last Ten Fiscal Years ........................... 102
Operating and Capacity Indicators for Water and Wastewater – Last Ten Fiscal Years ....... 103
Other Information
Capacity Charge Funds ............................................................................................ 105-107
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December XX, 2022
To the Board of Directors and Customers of East Valley Water District,
We are pleased to submit the Comprehensive Annual Financial Report (Annual Report) for East Valley Water District
for the year ended June 30, 2022. This report was prepared by District staff in accordance with standards
established by the Governmental Accounting Standards Board (GASB).
The District’s management is responsible for the presented data, and the completeness and fairness of the
presentation, including the note disclosures. We believe that the report presented is accurate in all material
respects, and that the financial statements and other information are presented in a manner that enables readers
to gain a full understanding of the District’s financial activities for the year. Readers should also refer to the
Management’s Discussion and Analysis in the Financial Section of the Annual Report for a detailed discussion
regarding the District’s financial condition and results of operations.
The Annual Report follows the guidelines recommended by the Government Finance Officers Association (GFOA)
of the United States and Canada. In December 2022, the District will, again, submit the Annual Report to this
organization for review and possible recognition for achievement in reporting excellence.
Background
East Valley Water District (the District) was formed on January 18, 1954, and since then, has provided retail water
service to customers in an expanding service area which now covers 30.1 square miles. The District directly serves
treated water to approximately 104,000 people in the City of Highland, the eastern portion of the City of San
Bernardino, the San Manuel Band of Mission Indians, and portions of the County of San Bernardino . In 1964, the
District began providing wastewater collection services to the same service area.
As of June 30, 2022, the District had 21,834 water connections and 19,766 wastewater connections.
Water Supply and Reliability
The District’s water supply for the year ended June 30, 2022 includes groundwater (79.7 percent), surface water
(4.1 percent), and imported water (16.2 percent). Groundwater is pumped from the Bunker Hill Basin, and surface
water from the Santa Ana River is diverted based on rights acquired from the North Fork Water Company.
6
Local Economy
East Valley Water District is located within San Bernardino County in a metropolitan area referred to as the “Inland
Empire”. Since 2013, the District’s population has grown by more than 11 percent and currently, comprised of
mostly residential and commercial customers, with no major industrial users. Large consumers remain consistent
year to year with the San Bernardino City Unified School District, Patton State Hospital, San Manuel Mission Indians,
City of Highland, and East Highlands Ranch forming the list of top five users.
In 2022, the average household income within the District’s service area was $56,514, approximately 22% lower
than the County of San Bernardino. Customers who reside in the City of Highland account for approximately 65%
of the District’s customer base. These customers had an average household income of $68,105, approximately 21%
higher than the overall District average.
Financial Management
The District manages its resources conservatively to deliver safe and reliable services to its customers at a fair and
cost-effective price. It focuses on establishing fair rates, cost containment, long -term planning, maintaining and
upgrading infrastructure, and pursuing alternative source of funding. This approach has allowed the District to
undertake substantial capital improvement projects during tough economic times, while passing a series of modest
rate increases. The keys to the District’s successful financial management are the District’s Capital Improvement
and Financial Plan (CIFP), comprehensive reviews of water and wastewater rates, and the annual budget process.
The CIFP provides a comprehensive view of infrastructure investments necessary over a seven-year period to
ensure that water resources are adequate, water quality is maintained, and the water and wastewater service
needs of current and future customers are met. The CIFP is reviewed annually by the District’s Board of Directors
79.7%
4.1%
16.2%
Water Supply Sources
Groundwater
Surface Water
Imported
7
(Board) during the budget process, at which time the highest priority projects are adopted and receive authorization
for expenditure along with the District’s operating budget.
The District’s financial planning also includes the establishment and funding of reserv es, and the pursuit of
alternative funding sources, both of which help reduce reliance on rates and rate increases. In recent years the
District has been very successful in pursuing project funding from the State Revolving Fund and Federal Emergency
Management Agency (FEMA), and have applied for water and energy efficiency project funding from the Bureau of
Reclamation and Edison.
Internal Control
District management is responsible for establishing a system of internal accounting controls designed to provid e
reasonable assurances that assets of the District are safeguarded against losses from unauthorized use or
disposition, and theft. The District’s internal controls also ensure the proper recording of financial transactions, and
the preparation of financial statements in accordance with Generally Accepted Accounting Principles (GAAP). The
District’s internal control structure is designed to provide reasonable assurance that these objectives are met. The
concept of reasonable assurance recognizes that 1) the cost of a control should not exceed the benefits likely to be
derived and 2) the valuation of costs and benefits requires estimates and judgments by management.
Budgetary Control
The District’s Board of Directors annually adopt a balanced operating and capital budget prior to the new fiscal
year. The budget authorizes expenditures and provides a basis for accountability over the District’s enterprise
operations and capital projects. Each quarter, management provides the Board with a quarterly budget review to
allow Board assessment of staff’s progress in meeting goals and objectives, and budget adjustments, if necessary,
are requested at the mid-year budget review in February.
Debt Administration
The District utilizes proceeds from long-term debt, along with reserves and contributions from the operating budget,
to finance major construction projects. Current debt consists of Revenue Bonds and loans from US Bancorp, the
State Revolving Fund, and the San Bernardino Valley Municipal Water District.
The District received a credit rating of AA- from Standard and Poor’s and Fitch when the Revenue Bonds were
issued in September 2020. This rating was affirmed by Fitch as the result of a review conducted in July 2022.
Investment Policy
The Board of Directors annually adopts an investment policy that conforms to California State Law, District
ordinances and resolutions, and the prudent person standard. The objectives of the policy are safety, liquidity, and
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yield. District funds are normally invested in the State Treasurer’s Local Agency Investment Fund (LAIF), and
Federal government Treasury notes or agency obligations.
Audit and Financial Reporting
State law requires the District to obtain an annual audit of its financial statements by a n independent Certified
Public Accountant. This year, the District’s Financial statements were audited by Rogers, Anderson, Malody & Scott,
LLP from San Bernardino, California. Their audit opinion is included in the Basic Financial Statements section of th is
report.
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the District for its Annual Comprehensive Financial Report for
the fiscal year ended June 30, 2021. This was the tenth year that the District has achieved this prestigious award.
To be awarded a Certificate of Achievement, a governmental entity must publish an easily readable and efficiently
organized Annual Comprehensive Financial Report. This report must satisfy both GAAP and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual
Comprehensive Financial Report continues to meet the Certifica te of Achievement Program requirements and we
are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgements
Preparation of this report was accomplished by the combined efforts of District staff. We appreciate the dedication
and professionalism that our staff bring to the District. We would also like to thank the members of the Board of
Directors for their continued support in the planning and implementation of the fin ancial affairs of the District.
Respectfully submitted,
Michael Moore
General Manager/CEO
Brian W. Tompkins
Chief Financial Officer
EAST VALLEY WATER DISTRICT
Organizational Structure
Year Ended June 30, 2022
9
EAST VALLEY WATER DISTRICT
Principal Officials
Year Ended June 30, 2022
10
Vision
Enhance and preserve the quality of life for our community through innovative leadership and
world class public service.
Core Values
Leadership: Motivating a group of people to act towards achieving a common goal or
destination.
Partnership: Developing relationships between a wide range of groups and individuals
through collaboration and shared responsibility.
Stewardship: Embracing the responsibility of enhancing and protecting resources
considered worth caring for and preserving.
East Valley Water District
Governing Board Members as of June 30, 2022
Name Title
Elected /
Appointed Current Term
Phillip R. Goodrich Chairman of the Board Elected 2018 - 2022
James Morales, Jr.Vice-Chairman of the Board Elected 2018 - 2022
David E. Smith Governing Board Member Elected 2020 - 2024
Ronald L. Coats Governing Board Member Elected 2018 - 2022
Chris Carrillo Governing Board Member Elected 2020 - 2024
Contact Information
East Valley Water District
Michael Moore, General Manager/CEO
31111 Greenspot Road
Highland, CA 92346
(909) 889-9501
www.eastvalley.org
EAST VALLEY WATER DISTRICT
GFOA Certificate
Year Ended June 30, 2021
11
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EAST VALLEY WATER DISTRICT
Independent Auditor’s Report
Year Ended June 30, 2022
13
Will be issued once the Audit is completed.
EAST VALLEY WATER DISTRICT
Independent Auditor’s Report
Year Ended June 30, 2022
14
Will be issued once the Audit is completed.
EAST VALLEY WATER DISTRICT
Independent Auditor’s Report
Year Ended June 30, 2022
15
Will be issued once the Audit is completed.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2022
16
The District
East Valley Water District (District) is a California Special District established under section 30000 et seq. of the
California Water Code. The District is engaged in pumping, treating, and distributing water to its customers, as well
as maintaining a collection system for residential and commercial wastewater that is delive red for treatment at a
plant owned by the City of San Bernardino Water Department.
The District serves the City of Highland and portions of the City and County of San Bernardino in California.
The Basic Financial Statements
East Valley Water District is a special-purpose government agency, engaged in activities that are supported
exclusively by user charges. As such, the District’s financial statements are presented in the format prescribed for
proprietary funds by the GASB.
The following financial statements for the year ended June 30, 2022 (2021 for comparative purposes only) consist
of three interrelated statements designed to provide the reader with relevant, understandable data about the
District’s financial condition and operating result s. They are the Statement of Net Position, the Statement of
Revenues, Expenses, and Changes in Net Position, and the Statement of Cash Flows.
The Statement of Net Position presents financial information on the District’s assets, liabilities, and deferred inflow
and outflows of resources, with the difference reported as net position as of the last day of the District’s fiscal year.
Over time, increases or decreases in net position can serve as a useful indicator of whether the financial position
of the East Valley Water District is improving or deteriorating.
The Statement of Revenues, Expenses, and Changes in Net Position presents information showing how the District’s
net position changed during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of the related cash flows.
The Statement of Cash Flows (direct method) conveys to financial statement users how the District managed cash
resources during the year. This statement converts the change in net position presented on the Statement of
Revenues, Expenses, and Changes in Net Position into actual cash provided by or used for operations. The
Statement of Cash Flows also details how the District obtains cash through financing and investing activities, and
conversely, how cash is spent for these purposes.
Summary Financial Information and Analysis
Financial Condition
During the year ended June 30, 2022, the District’s total assets and deferred outflo ws increased by $16.9 million,
to $360.6 million, and included a decrease in Current assets, offset by a significant increase in Capital assets.
Current assets decreased $2.3 million (6%) to $36.4 million. While the decrease is a net between increases and
decreases of the various current asset line items, the most significant decrease was in the amount Due From Other
Governments, which dropped from $18.6 million to $10.3 million. This category recognizes outstanding
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2022
17
reimbursement claims from the state revolving fund for reimbursable construction activity, or reimbursements
receivable from partner agencies in the construction of regional recycled water facilities and as the project nears
completion contractor invoices and corresponding reimbursement requests are for significantly smaller amounts.
Utility Accounts Receivable continued to grow, from $6.0 to $7.0 million, despite the fact that the California
Governor’s moratorium on disconnection of utility services for non -payment ended on December 31, 2021. The
District delayed implementing service disconnections while it applied for California Arrearage Payment Program
(CAPP) funds from the state to apply to customer account balances incurred during a qualifying period during the
pandemic. Inventory balances also increased 84% to $944 thousand as the District stocked up on frequently used
fittings in order to mitigate the effect of supply chain shortages.
Restricted Asset balances increased from $10.0 to $11.0 million. The increase is the result of significant
development activity and the related collection of restricted development impact fees. Restricted assets do not
include large retentions held on the contract construction of the Sterling Natural Resource Center as payment of
the retentions will be made with loan proceeds borrowed from the state revolving fund (converted to Long Term
debt) rather than paid out of current financial resources.
2022 2021
Current Assets 36.4 38.7
Restricted Assets 11.0 10.0
Other Assets 0.3 0.3
Capital Assets - Net 309.2 290.1
Total Assets 356.9 339.1
Total Deferred Outflow of Resources 3.7 4.6
Current Liabilities 21.0 20.0
Non-Current Liabilities 186.9 182.0
Total Liabilities 207.9 202.0
Total Deferred Inflows of Resources 7.6 1.6
Net Position
Net Investment in Capital Assets 117.1 114.8
Restricted 9.1 6.4
Unrestricted 18.9 18.9
Total Net Position 145.1$ 140.1$
Capital Assets increased by $18.5 million during the 2021 -22 fiscal year. For purposes of the table above, Capital
Assets includes construction in progress (CIP), utility plant in service, and the related accumulated depreciation.
Changes in capital assets included additions of $27.3 million, net of asset retirements of $2.3 million and an annual
depreciation charge of $6.5 million. Capital additions during the year were primarily construction in progress on the
SNRC. A more detailed description of capital spending is in the Capital Assets section of this analysis.
Total Deferred Outflow of Resources consists of pension contributions made after the most recent pension plan
actuarial valuation, as well as differences between projected and actual earnings on pension plan investments and
changes in assumptions. Contributions and investment earnings during the year ended June 2021 had the effect of
reducing deferred outflows for 2021-22 by $1.2 million. This amount was reduced by an increase in deferred
outflows related to Other Post-Employment Benefits (OPEB) of $0.3 million.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2022
18
While current assets decreased by $2.3 million, current liabilities increased by $1.0 million, the result of the
growing retentions payable balance related to construction of the SNRC, which is nearing completion. The net
impact of these changes caused the District’s current ratio to fall slightly from 1.9:1 to 1.7:1. However, by
removing the retentions payable of $10 million from the above calculation, the current ratio improves to 3.3:1.
Justification for removing retentions payable from the calculation is that when the contracto r is paid the retention,
the District will request a draw against its SRF loan for the retentions, rather than drawing on District financial
resources, in effect converting retentions to long-term debt.
Non-Current Liabilities increased by $5.0 million, the net effect of:
• $13.1 million in draws on the State Revolving Fund loan for the SNRC; plus
• $(2.3) million in principal payments and premium amortization;
• $(0.1) million decrease in LT Debt amounts classified as current liabilities, and
• $(0.1) million decrease in compensated absences and employee post -retirement benefit obligations
calculated in accordance with GASB statements number 68 (pensions) and 75 (retiree medical).
• $(5.6) million decrease in post-retirement pension and other benefit obligations due to extraordinary plan
asset investment gains during the year ended June 2021, the date of the valuation on which current
obligations are calculated.
Pensions and OPEB (Other Post-Employment Benefits) are further discussed in Notes 8 and 11 of the accompanying
financial statements. Long-term debt and Compensated absences are further explained in financial statement Notes
5 and 6, respectively.
The District’s total Net Position was $145.1 million at the end of fiscal year 2022, a $5.0 million increase compa red
to the end of the previous fiscal year. Of the $145.1 million Net Position balance, $117.1 million is categorized as
Net Investment in Capital Assets, $9.1 million is Restricted for Capital Expansion Projects, and $18.9 million is
Unrestricted. The calculation of Net Investment in Capital Assets is included in Note 7 of the accompanying financial
statements.
Looking at longer term results, the District’s total Net Position has increased $25.8 million and $30.6 million over
five and ten year periods, respectively.
Results of Operations and Changes in Net Position
Water Operations
Water sales for fiscal year 2021-22 decreased 4.0% to $18.5 million, the result of a decrease in water demand by
customers from 18,429 acre-feet in 2020-21, to 17,998 acre-feet. Total water produced by the District during the
year was 18,789 acre feet, with the difference between water produced and water sold of 791 acre feet (4.2%)
being the result of District flushing programs, water use at District facilities, and system leaks.
While actual water sales declined compared to the previous year, current yea r actual sales of $18.5 million did
exceed projections of $17.3 million for fiscal year 2021-22. Projections are based on historical usage, and follow a
predictable pattern starting with high usage in the summer, decreasing usage as the weather cools until the winter
months, when usage is at its lowest, and then increased usage toward the end of the District’s fiscal year in June.
The District usually receives most of its rain between the months of December and February and has an annual
average of 17 inches. However, below average rainfall, like 10.4 inches in 2021-22, usually leads to higher than
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2022
19
expected water demand. Low levels of rainfall has again become a statewide problem as California is entering its
fourth year of drought. In October 2021 a statewide drought emergency was declared for California.
East Valley Water District has been working to mitigate the effects of drought since before the previous drought
emergency ended in April 2017. As referenced throughout this discussion, the District is building a water reclamation
plant known as the Sterling Natural Resource Center (SNRC) which will allow the District to recharge more than six
million gallons of recycled water per day into the local groundwater basin. In addition, when the state experienced
heavy rainfall in the winters of 2017 and 2018, the District participated in regional efforts to buy as much State
Water Project water as possible for recharge into the basin. While these measures will not stave off local water
shortages indefinitely, smart water conservation, including a statewide target of a 15% water use reduction in the
next year, puts the District is in a better position than most for going years into the current drought without facing
water shortages.
Water System, or Meter Charge revenue remained relatively consistent with prior year revenue at $9.2 million for
fiscal year 2021-22. Although a 1% rate increase became effective in February of 2022, associated increases were
offset by a reduction in charges for construction meters due to slowing construction, and a reduction in the accrual
for unbilled revenue at year end. Accrued revenue at June 2021 were approximately $125 thousand higher than
the accrued revenue recognized at June 2022.
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Water Department Operating
Revenue versus Expenses
Revenue
Expenses
Water Department operating expenses increased 15.5% to $26.9 million for fiscal year 2021 -22. The primary factors
contributing to this significant increase were a market median wage adjustment for positions found by an
independent study to be significantly under market median, energy costs, and inflationary pressure on the price of
goods and services overall.
The rising cost of energy has had an impact on operations for the past two year. Over the past few years the
District had implemented multiple energy efficiency and alternative energy production measures, and these helped
mitigate the effects of rising power costs. However, by fiscal year 2019-20, Edison rate increases were beginning
to offset the District’s energy measures, and in 2020-21 increases in power costs could not be avoided.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2022
20
In addition to rate increases, Edison redefined daily ‘peak’ hours. Peak hours and the high rates associated with
them, were shifted away from the period 1:00 p.m. to 5:00 p.m., hours during which demands on the electrical
grid have fallen because many customers are generating their own solar energy during those ho urs, to 4:00 p.m.
to 9:00 p.m. when customers returning home from work/school are using electrical appliances but cannot generate
solar energy. The District was able to adjust to the shift in peak hours during weekdays, but another revision that
added peak hour pricing to weekend days disrupted District operational strategies that avoided peak hour rates by
filling all reservoirs during the weekend.
The effects of power cost increases and other costs fluctuations on the various cost centers and programs ar e
outlined below:
• Pumping: power costs related to boosting water to higher pressure zones increased $127 thousand (25%)
to $646 thousand due to continued changes in Edison rates and rate structures explained above.
• Treatment: these costs increased $37 thousand (4%) overall which consisted of a significant increase in
power and chemicals costs, partially offset by a decrease in materials costs. Materials costs were dropped
because a costly, periodic change out of filtration media at the District’s Plant 28 G ranular Activated Carbon
treatment module in the prior year. Power cost increases are explained above, and chemical costs were
affected by price increases and availability challenges.
• Transmission and Distribution- distribution system maintenance costs increased $310 thousand (9.5%) due
almost entirely to the increased cost of materials. The cost of brass and other metal fittings rose between
150% to 200% due to supply chain issues and related inflation.
Wastewater Operations
Wastewater operating revenues consist of System Charges and Treatment Charges, and Other Operating Revenue.
System Charge rates are set by the District to cover the cost of maintaining the District’s wastewater collection
system and to cover a portion of administrative and ge neral expenses. A rate adjustment implemented in January
2022 was responsible for a 2.6% increase in System charge revenue in 2021 -22.
Treatment Charge rates have historically been established by the City of San Bernardino Water Department (City),
which treats wastewater flows generated by District customers. The District uses the City rates to bill its customers
and then remit payment to the City at the end of each month. This relationship, and use of City rates, was scheduled
to terminate once the District has the capability to treat wastewater upon completion of the Sterling Natural
Resource Center (SNRC). Completion of the SNRC was projected to be May of 2022.
In anticipation of the SNRC start-up, the District adopted its own treatment rates in 2021. T he SNRC was not
completed in May, however, due to COVID and supply chain issues, and the revised completion date is July 2023.
Although the District will continue to pay the City for treatment services for an additional year, the District went
forward with implementation of its own rates in May 2022, and is using the increment between the two rates to
cover some of the SNRC startup costs already being incurred, such as hiring operators to begin training on SNRC
plant operations. The implementation of Distri ct rates in May resulted in a 9.3% increase in treatment charge
revenue during 2021-22.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2022
21
Other Operating Revenue includes inspections, plan checking, and other development related fees, and also periodic
reimbursements from other public agencies or utilities for shared costs or participation in conservation programs.
In fiscal year 2021-22, Other Operating Revenue included significant service connection fees related to new
development (other than impact fees).
Wastewater department collection line maintenance costs decreased by 19% compared to the prior year. This
change is the result of a drop in Contract Services as the District had to deploy contractors for fewer sewer main
repair incidents than in 2020-21.
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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) increased $96 thousand, or 5.9%. This
increase is the net effect of increased labor and contract services costs which were partially offset by a reduction
in postage costs due to disconnection notices not being generated and delive red (prohibited during COVID). Labor
costs increased as the District created a Supervisor position and hired additional part -time staff to bolster the
department in preparations for completion of the SNRC, at which time the department will be split between a new
customer service counter there, and the existing counter at the District Headquarters. Contract Serv ices increased
due to escalating charges for maintenance and hosting of the District’s automated meter data portal and customer
relationship/financial software.
Administrative and general costs for the District increased by 29.9% to $13.9 million. The increase is the effect of
several factors that became due in the current year in preparation for commencement of operations at the SNRC,
and/or because items had been deferred during the height of the COVID19 pandemic. Some of the most significant
were:
1. Conservation rebates increased 181% to $225 thousand as workshops and other customer outreach
resumed.
2. Insurance costs continued to climb, 87.1% in 2021-22. The insurance industry in California continues to
feel the effects of costly wildfires in 2019, including the District’s risk pool which buys excess insurance on
the open market.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2022
22
3. Labor and Benefits rose 19.5% to $8.4 million. This increase included the cost of some wastewater
treatment operators being hired to begin training at the SNRC prior to commencement of operations, and
was also the result ‘market median’ wage adjustments and of COLA increases that were negotiated in
September 2020.
4. Contract services increased 33.6% to $2.1 million. The most significant items were a $170 thousand
contribution to regional habitat conservation efforts, a one-time cost of $190 thousand to extend fiberoptic
communication services to the District headquarters and 2 critical plants, and $153 thousand toward the
fully burdened cost of a law enforcement officer to help ensure increased presence and priority response
at critical District plants.
Non-Operating Activities
The District’s non-operating revenue of $939 thousand includes net investment losses of $137 thousand, a gain on
disposal of vacant land of $1.042 million, and miscellaneous income of $34 thousand. Reported investment losses
are a net between realized earnings during the year of $146 thousand, offset by $283 thousand in unrealized losses
recorded at year end due to the negative variance between cost and market value of securities at year end caused
by rising interest rates. The Gain on Disposal was realized when land that has been held for resale for 15 y ears was
sold to a local development company.
Non-operating expense consist of $1.382 million in interest on District long-term obligations.
East Valley Water District Changes in Net Position
(in millions)
2022 2021 2020
Water Sales 18.5$ 19.3$ 16.9$
System Charges 14.0 13.9 13.7
Treatment Charges 9.8 8.5 8.5
Other Operating Rev 0.8 0.5 0.7
Supply & Pumping (4.3) (4.2) (3.7)
Distribution / Collection (4.2) (4.0) (4.2)
Treatment (10.1) (9.5) (9.4)
Customer Accounts (1.7) (1.6) (1.7)
General & Administrative (13.9) (10.7) (10.6)
Depreciation (6.4) (6.5) (6.6)
Non-Operating Revenues 1.3 0.2 0.7
Interest Expense (1.6) (2.6) (1.6)
Income Before Contributions & Special Item 2.2 3.3 2.7
Developer Contributions 2.7 0.6 3.2
Grant Funds Contributed 0.1 0.3 6.7
Change in Net Position 5.0 4.2 12.6
Beginning Net Position, as Previously Reported 140.1 135.9 123.3
Ending Net Position 145.1$ 140.1$ 135.9$
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2022
23
Investment earnings decreased slightly compared to the prior year, despite the fact that quarterly apportionment
rates paid by the Local Agency Fund rose from 0.33% to 0.75% during fiscal year 2021 -22. Payment of large
construction invoices on the SNRC followed by a 60 – 75 day waiting period for reimbursement under a State Water
Resources Control Board (SWRCB) funding agreement depressed the amount of investible reserves.
Earnings were, however, offset by an unrealized investment loss recorded at year end as the rising interest rates
hampered the value of US Treasury and agency bonds in the District’s investment portfolio.
Capital Contributions
Contributions received during fiscal year 2021-22 included $2.7 million in developer capacity fees and $104
thousand in operating cost reimbursement grants related to COVID19. A majority of the capacity fees received
were related to a 205-unit apartment complex under construction, with the remainder coming from two moderate
developments of single-family homes. $91 thousand of the grant funds received were FEMA funds for pandemic
related expenses and safety protocols put in place during 2021. The remaining $13 thousand is administrative cost
reimbursements for the District’s participation in the California Arrearage Payment Program (CAPP) in which the
state paid delinquent customer accounts for bills incurred during the pandemic. The District received and app lied
$575 thousand directly to customer accounts with the CAPP.
Components of Net Position
The District is required to present its net position in three categories: Net Investment in Capital Assets, Restricted,
and Unrestricted.
Net Investment in Capital Assets
The components comprising Net Investment in Capital Assets are presented in Note 7 of the accompanying financial
statements. The balance at June 30, 2022 is $116.4 million, an increase of $1.7 million compared to June 30, 2021.
The increase is the net result of the acquisition or construction of capital assets for $25.1 million, offset by a $10.7
million increase in outstanding debt, $6.8 million increase in year -end project payables, and depreciation of $5.9
million.
Restricted
Restricted Net Position consists of unexpended development impact fees which may only be appropriated for a
project included in the District’s Capital Improvement Program. During fiscal year 2021 -22 the District received $2.7
million in capacity fees while no restricted funds were used to fund current projects. A summary of the collection
and use of these funds is presented as Other Information in this document.
Unrestricted
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2022
24
Unrestricted Net Position is the balance after amounts to be classified as Net Investment in Capital Assets or
Restricted have been determined. Unrestricted Net Position decreased $1.3 million to $17.6 million in fiscal year
2021-22.
Capital Assets
The District spent approximately $25.1 million for expansion or replacement of prope rty, plant, and equipment
during the 2021-22 fiscal year. These amounts are reflected in Utility Plant, or as additions to Construction in
Progress, in the accompanying financial statements.
Placed in Service
During the 2021-22 fiscal year, District staff, consultants, and contractors completed work on the following:
• Purchased land for a future reservoir site;
• Replaced fourth complete train of filtration membranes in Plant 134;
• Completed security fencing and retaining walls at District Plant 39;
• Completed a lined retention basin for storage of off-spec water should the new SNRC water reclamation
plant need to be taken offline;
• Upgraded network servers, access control software and badge readers at critical plants; and
• Replaced and upsized 2,000 linear feet of sewer main.
Utility Plant in Service – June 30th
(in millions)
Department 2022 2021
Water
Source of Supply 19.5$ 19.3$
Pumping 15.2 14.9
Transmission & Distribution 100.9 101.9
Treatment 29.2 28.9
Wastewater
Collection Lines 27.8 27.6
General
Plant 31.2 30.4
Total 223.8$ 223.0$
Construction in Progress (CIP)
Construction in progress increased $25.2 million to $184.0 million (see note 4) between June 30, 2021 and June
30, 2022. With approximately 32 projects in progress, additions to CIP totaled $27.1 million, while $1.9 million was
capitalized and transferred to Utility Plant in Service, or expenses.
Of the $184.0 million balance in Construction in Progress at June 30, 2022, 92% is related to a single project, the
Sterling Natural Resource Center.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2022
25
The SNRC is a water reclamation plant capable of converting six million gallons per day (mgd) of wastewater into
recycled water that will be recharged into the regional groundwater basin. Future phases will increase capacity of
the plant to 10 mgd.
Other significant work in progress includes upgrades to treatment processes at the District surface water treatment
Plant (134) and continued replacement of treatment membranes at the same plant.
Future Capital Improvements - Water
The District’s ability to meet water quality requirements, promote water conservation, and increase efficiencies in
conducting District business are the driving forces by which District management develops long term capital plans.
To meet these objectives, the District’s 5-year Capital Improvement Plan includes the following projects:
• Rehabilitation of District water storage tanks;
• Replacement of aging water distribution pipelines that require frequent repair and are suspected of causing
system water losses;
• Seismic retrofits for multiple water tanks / reservoirs to help ensure structural integrity of the tank during
a major earthquake; and
• Partner with project developers to upsize their plans to build a new storage tanks to serve their project .
The District has been awarded 10% match funding under the state’s Prepare California Match Program for a $6.8
million project to complete seismic re trofits on several water storage tanks. A District application for FEMA 2022
Building Resilient Infrastructure and Communities (BRIC) grant funds to cover 90% of the project is under review
and should be finalized early in 2023.
The District has also been awarded Phase 1 FEMA funding of over $1.1 million for design of a significant water
main replacement project. Once design is complete, the District will work to finalize Phase 2 funding to cover up to
$40 million in replacement of pipelines which qualify for hazard mitigation assistance. The District is also exploring
the feasibility of building a new surface water treatment plant in the District’s east end, closest to the source of
surface water and to the largest areas of undeveloped land in the District ’s service area.
Future Capital Improvements - Wastewater
The District maintains a list of recommended wastewater main replacements / rehabilitations based on assessments
of pipeline condition noted during video logging of the collections system. Pipelines assessed at the highest risk of
structural failure are prioritized on the District’s 5-year Capital Improvement Plan (CIP).
The District also completed an update to its Wastewater Collection System Master Plan in fiscal year 2018 -19 which
identified three wastewater pipelines that are susceptible to surcharging during heavy rains. Undersized pipelines
can impede new development and will be included in discussions with developers as necessary. These pipelines are
included it the District’s capacity fee structure.
Long Term Debt / Credit
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2022
26
The District’s long-term debt at June 30, 2022 consists of Revenue Bonds, loans from the California Department of
Water Resources (DWR) State Revolving Fund, a capital lease purchase with US Bank, and a loan from the San
Bernardino Valley Municipal Water District (SBVMWD).
Outstanding balances as of June 30, 2022 were as follows:
2020A Refunding Bonds 15,990,000$
2020B Refunding Bonds 13,340,000
SBVMWD Loan 1,704,020
AVAD Construction 5,368,172
EFAD Construction 57,478
Plant 134 Construction 273,337
SNRC Construction 139,669,059
U.S. Bank Lease Purchase 878,871
Total 177,280,938$
The funding agreement with the State Water Resources Control Board for the SNRC construction consists of a
$150.3 million loan at 1.8% and a $6.7 million grant, and was finalized on November 21, 2019. In May of 2022 the
District requested an increase in the loan to $168.3 million for three purposes, 1) finance a large emergency storage
basin for off-spec water in the event of an SNRC emergency shutdown, 2) upgrade boosters to move recycled water
farther to a revised location for recharge, and 3) to fund a g ap between the amount of contracts signed to build
digesters at the SNRC, and the existing loan funding for those digesters.
Debt service of approximately $7.5 million and plant operating expenses will be paid with $8.7 million currently
paid to the City of San Bernardino Water Department for wastewater treatment, Additional revenue streams will
include Local Resource Investment Program payments received from the San Bernardino Valley Municipal Water
Department for the recharge of recycled water produced by the SNRC, tipping fees from waste haulers who dispose
of liquid waste at the District digesters, and energy cost avoidance through use of power produced by the digesters.
The loan balance as of June 30,2022 is $139.7 million; loan payments will begin on e year after the Notice of
Completion is filed for the SNRC.
All scheduled debt payments for fiscal year 2021-22 were paid timely.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2022
27
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Outstanding Long-Term Debt June 30th
2020B Bonds
2020A Bonds
SBVMWD Loan
US Bank Loan
SRF Loans-
Other
SRF Loan-SNRC
Standard & Poor’s and Fitch rated the District’s 2020 Series A and B Revenue Bonds at AA- at the time of issuance.
Fitch affirmed this rating after a review of the District’s financial plans in June 2022. Dun & Bradstreet (D&B), based
on audited financial statements and creditor input, also rated the District. The rating given by D&B is currently 5A1
accompanied by a financial condition assessment of ‘strong’, which is no change from previous years.
Rate Increases
On May 12, 2021 the District adopted rate adjustments for water and wastewater collection act ivities, and adopted
inaugural rates for the District’s water reclamation activities which were implemented in May of 2022 to help pay
startup costs being incurred prior to commencement of operations of the Sterling Natural Resource Center.
Additional rate adjustments for all water and wastewater services are scheduled to become effective on January 1,
2023, and again on January 1, 2024.
Additional information about the District’s water and wastewater rates can be found on the District’s website at
www.eastvalley.org.
Contacting the District’s Financial Management
This financial report is designed to give our customers / ratepayers, creditors, and investors a general overview of
the District’s finances, and to demonstrate the District’s accountability for money it receives, and stewardship over
facilities it maintains.
If you have questions about this report, or need additional information, contact the District’s Finance Departmen t
at 31111 Greenspot Road, Highland, California 92346, or call (909) 381 -6463.
28
EAST VALLEY WATER DISTRICT
Statement of Net Position
June 30, 2022
The accompanying notes are an integral part of this statement.
29
For Comparative
Purposes Only
2022 2021
ASSETS
Current Assets:
Cash and Cash Equivalents 11,313,557$ 8,718,115$
Investments 4,574,471 3,778,726
Accounts Receivable, Net 6,974,934 6,036,701
Interest Receivable 18,461 8,326
Other Receivables 1,994,056 681,203
Due from Other Governments 10,306,002 18,593,458
Inventory 944,539 503,614
Prepaid Expenses 270,497 387,404
Total Current Assets 36,396,517 38,707,547
Non-Current Assets:
Restricted Cash and Cash Equivalents 10,960,683 9,975,888
Assessments Receivable 285,745 308,826
Capital Assets not being Depreciated 190,577,346 166,336,585
Capital Assets, Net 118,693,660 123,772,355
Total Non-Current Assets 320,517,434 300,393,654
Total Assets 356,913,951 339,101,201
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 896,852 946,442
Deferred Outflows - Pensions 2,024,887 3,206,817
Deferred Outflows - OPEB 794,163 463,638
Total Deferred Outflows Of Resources 3,715,902 4,616,897
Total Assets and Deferred Outflows
of Resources 360,629,853$ 343,718,098$
(Continued)
EAST VALLEY WATER DISTRICT
Statement of Net Position - Continued
June 30, 2022
The accompanying notes are an integral part of this statement.
30
For Comparative
Purposes Only
2022 2021
LIABILITIES
Current Liabilities:
Accounts Payable and Accrued Expenses 5,283,932$ 7,337,004$
Accrued Payroll and Benefits 772,778 684,607
Customer Service Deposits 1,390,220 1,331,243
Construction Advances and Retentions 10,188,813 7,324,945
Accrued Interest Payable 263,507 295,316
Current Portion of Compensated Absences 604,122 630,257
Current Portion of Long-Term Debt 2,499,787 2,441,104
Total Current Liabilities 21,003,159 20,044,476
Non-Current Liabilities:
Compensated Absences, Less Current Portion 683,507 576,285
Net Pension Liability 6,657,689 12,313,294
Net OPEB Liability 1,861,875 2,040,977
Long-Term Debt, Less Current Portion 177,740,054 167,030,458
Total Non-Current Liabilities 186,943,125 181,961,014
Total Liabilities 207,946,284 202,005,490
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Refunding 1,181,143 1,268,266
Deferred Inflows - Pensions 6,115,141 275,850
Deferred Inflows - OPEB 288,464 55,030
Total Deferred Inflows Of Resources 7,584,748 1,599,146
Total Liabilities and Deferred
Inflows Of Resources 215,531,032 203,604,636
NET POSITION
Net Investment in Capital Assets 117,079,071 114,767,362
Restricted for:
Future Capital Expansion Projects 9,076,014 6,435,505
Unrestricted 18,943,736 18,910,595
Total Net Position 145,098,821$ 140,113,462$
EAST VALLEY WATER DISTRICT
Statement of Revenues, Expenses, and Changes in Net Position
Year Ended June 30, 2022
The accompanying notes are an integral part of this statement.
31
For Comparative
Purposes Only
2022 2021
OPERATING REVENUES
Water Sales 18,472,876$ 19,305,631$
Wastewater Treatment Charges 9,764,357 8,456,508
System Charges 14,020,823 13,922,686
Other Charges 835,559 551,989
Total Operating Revenues 43,093,615 42,236,814
OPERATING EXPENSES
Water Department:
Source of Supply 3,515,262 3,617,788
Pumping 756,843 596,586
Treatment 1,045,730 1,008,129
Transmission and Distribution 3,563,328 3,253,175
Customer Accounts 1,225,403 1,185,551
Total Water Department 10,106,566 9,661,229
Wastewater Department:
Wastewater Treatment 9,084,061 8,456,508
Wastewater Collection 587,128 722,680
Customer Accounts 494,505 438,645
Total Wastewater Department 10,165,694 9,617,833
Administrative and General 13,927,491 10,724,630
Operating Expenses Before Depreciation 34,199,751 30,003,692
Depreciation 6,378,590 6,492,372
Total Operating Expenses 40,578,341 36,496,064
Operating Income 2,515,274$ 5,740,750$
(Continued)
EAST VALLEY WATER DISTRICT
Statement of Revenues, Expenses, and Changes in Net Position - Continued
Year Ended June 30, 2022
The accompanying notes are an integral part of this statement.
32
For Comparative
Purposes Only
2022 2021
NON-OPERATING REVENUES (EXPENSES)
Investment Income 165,989$ 167,499$
Gain on Disposal 1,042,562 -
Other Income 33,706 43,744
Interest Expense (1,295,223) (1,387,113)
Unrealized Investment Losses (303,474) -
Loss on Disposal of Assets - (1,236,600)
Total Non-Operating Revenues (Expenses)(356,440) (2,412,470)
Income Before Contributions 2,158,834 3,328,280
CONTRIBUTIONS
Capacity Charges 2,722,948 577,185
Operating Grants 103,577 300,000
Total Contributions 2,826,525 877,185
CHANGE IN NET POSITION 4,985,359 4,205,465
TOTAL NET POSITION, BEGINNING 140,113,462 135,907,997
TOTAL NET POSITION, ENDING 145,098,821$ 140,113,462$
EAST VALLEY WATER DISTRICT
Statement of Cash Flows
Year Ended June 30, 2022
The accompanying notes are an integral part of this statement.
33
For Comparative
Purposes Only
2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 42,383,540$ 40,768,273$
Cash Payments for Employees Services (12,167,869) (11,567,176)
Cash Payments to Suppliers (22,435,948) (19,267,178)
Cash to/(from) Other Sources (1,186,152) 24,325
Net Cash Provided by Operating Activities 6,593,571 9,958,244
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Reimbursements Received 8,287,456
Grant Funds Received - 316,145
Proceeds from Sale of Capital Assets 3,379,959 26,552
Developer Fees Received 2,826,525 577,185
Assessments Received 23,081 27,000
Proceeds/Draws from SRF Loan 13,221,385 63,384,866
Proceeds from Issuance of Bonds - 33,761,890
Payments on Capital Debt (2,290,011) (36,225,058)
Interest Paid on Capital Debt (1,527,660) (1,718,549)
Acquisition of Capital Assets (25,897,710) (72,417,532)
Net Cash Used for Capital and
Related Financing Activites (1,976,975) (12,267,501)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received from Investments 62,700 165,235
Acquisition of Investments (3,456,732) (2,465,610)
Proceeds from Sale of Investments 2,357,673 4,330,612
Loan Collections - -
Net Cash Provided (Used) by
Investing Activities (1,036,359) 2,030,237
Net Increase (Decrease) in Cash
and Cash Equivalents 3,580,237 (279,020)
Cash and Equivalents, Beginning of Year 18,694,003 18,973,023
Cash and Equivalents, End of Year 22,274,240$ 18,694,003$
RECONCILIATION TO STATEMENT OF NET POSITION
Cash and Cash Equivalents 11,313,557$ 8,718,115$
Restricted Cash and Cash Equivalents 10,960,683 9,975,888
Total Cash and Cash Equivalents 22,274,240$ 18,694,003$
(Continued)
EAST VALLEY WATER DISTRICT
Statement of Cash Flows - Continued
Year Ended June 30, 2022
The accompanying notes are an integral part of this statement.
34
For Comparative
Purposes Only
2022 2021
Reconciliation of Operating Income to Net
Cash Provided by Operating Activities
Operating Income 3,604,697$ 5,740,750$
Adjustments to Reconcile Operating
Income to Net Cash Provided by
Operating Activities:
Depreciation 6,378,590 6,492,372
Miscellaneous Income/(Expense)126,699 24,325
CIP Projects Expensed 714,343 5,507
Change in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (938,233) (1,236,263)
(Increase) Decrease in Inventory (440,925) (16,643)
(Increase) Decrease in Prepaids 116,907 (137,001)
(Increase) in Deferred Outflows of Resources - Pensions - 298,506
Increase (Decrease) in Accounts Payable (2,053,069) (1,323,261)
Increase (Decrease) in Accrued Salaries
and Benefits 88,171 86,552
Increase (Decrease) in Compensated Absences 81,086 217,552
Increase (Decrease) in Net Pension Liability - 508,154
Increase in Net OPEB Liability - (55,700)
Decrease in Deferred Inflows of Resources - (414,327)
Increase (Decrease) in Customer Deposits (1,312,853) (232,275)
Increase (Decrease) in Developer Deposits 228,158 -
Total Cash Provided by Operating Activities 6,593,571$ 9,958,248$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
35
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Reporting Entity
The East Valley Water District is a special district that was formed in 1954, as a result of an election by local
residents who desired water service by a public water agency. Later, as the population increased, a modern
wastewater system was needed to replace the septic tanks used at the time. Citizens voted to give the District
responsibility for that service. The District encompasses an area of approximately 30.1 square miles and
provides water and wastewater service to the City of Highland, parts of the City of San Bernardino, and
unincorporated parts of the County of San Bernardino, California.
The East Valley Water District Financing Authority (Authority), and the North Fork Water Company (Company)
are component units of the East Valley Water District. A component unit is an entity which is financially
accountable to the primary government, either because the primary government appoints a voting majority
of the component unit's Board, or because the component unit will provide a financial benefit or impose a
financial burden on the primary government. The Authority, and Company are blended component units. Only
North Fork Water Company prepares separate financial statements.
The Authority was created in August 2010 by a joint exercise of powers agreement for the purpose of financing
public capital improvements. It is governed by a Board of Directors comprised of the District's Board of
Directors. The Authority issued debt in October 2010 which is secured solely from installment payments under
an installment purchase agreement entered into by the District and the Authority.
The Company was established in February 1885 to deliver water, taken from the Santa Ana River, to its
property owner /shareholders. The Company is governed by a Board of Directors comprised of, and elected
by, Company shareholders. The District has purchased shares of Company stock as they become available to
secure rights to the Santa Ana River water and have it delivered to the District's surface water treatment
plant. At June 30, 2022, the District owned 7,146.99 of 7,156 outstanding Company shares.
Due to the number of Company shares owned, the District is able to appoint a majority of the Company’s
Governing Board and is therefore, financially accountable for the Company. In addition, management and
staff of the District have complete responsibility for the operations of the Company. As a result, the
Company's financial statements have been included in the accompanying financial statements as a blended
component unit. Copies of the Company's financial statements may be obtained from the District’s Finance
Department at 31111 Greenspot Road, Highland, California 92346.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
36
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
The following condensed combining schedule shows how the District and its component units are blended in
the accompanying financial statements:
Table 1-1
District NFWC Eliminations Total
Statement of Net Position
Current Assets 36,383,785$ 12,732$ -$ 36,396,517$
Capital Assets 311,103,711 233,526 (2,066,231) 309,271,006
Other Assets 8,528,514 2,717,914 - 11,246,428
Deferred Outflows 3,715,902 - 3,715,902
Total Assets & Deferred Outflows 359,731,912 2,964,172 (2,066,231) 360,629,853
Current Liabilities 20,963,013 40,146 - 21,003,159
Long-Term Liabilities 186,943,125 - - 186,943,125
Deferred Inflows 7,584,748 - - 7,584,748
Total Liabilities & Deferred Inflows 215,490,886 40,146 - 215,531,032
Net Investment in Capital Assets 116,298,971 2,846,331 (2,066,231) 117,079,071
Restricted Net Position 8,998,319 77,695 - 9,076,014
Unrestricted Net Position 18,943,736 - 18,943,736
Total Net Position 144,241,026 2,924,026 (2,066,231) 145,098,821
Statement of Changes in Net Position
Sales and Services 42,258,056$ -$ -$ 42,258,056$
Other Operating Revenue 835,559 - 835,559
Operating Expenses 34,033,951 165,800 - 34,199,751
Depreciation 6,322,753 55,837 - 6,378,590
Operating Income 2,736,911 (221,637) - 2,515,274
Net Non-Operating Revenue
(Expenses)(449,435) 92,995 - (356,440)
Capital Contributions 2,826,525 - - 2,826,525
Special Items - - - -
Change in Net Position 5,114,001 (128,642) - 4,985,359
Beginning Net Position 139,127,025 3,052,668 (2,066,231) 140,113,462
Ending Net Position 144,241,026$ 2,924,026$ (2,066,231)$ 145,098,821$
Net Cash from Operating Activities 6,724,455$ (130,884)$ -$ 6,593,571$
Net Cash from Capital and Related
Financing Activities (2,070,485) 93,510 - (1,976,975)
Net Cash from Investing Activities (1,036,359) - - (1,036,359)
Beginning Cash and Equivalents 18,424,561 269,442 - 18,694,003
Ending Cash & Equivalents 22,042,172$ 232,068$ -$ 22,274,240$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
37
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B) Measurement Focus, Basis of Accounting and Financial Statement Presentation
The accounting and financial reporting treatment is determined by the applicable measurement focus and
basis of accounting. Measurement focus indicates the type of resources being measured such as current
financial resources or economic resources. The basis of accounting indicates the timing of transactions or
events for recognition in the financial statements.
The District uses the economic resources measurement focus and the accrual basis of accounting.
Accordingly, revenues are recognized when they are earned, and expenses are recorded when the liability
is incurred.
C) Comparative Data
Prior year data has been included where practical for comparison purposes only. The prior year data does not
represent a complete presentation in accordance with accounting principles generally accepted in the United
States of America.
D) Inventory Valuation
Inventories are valued at cost using the average-cost method.
E) Capitalization and Depreciation
Capital assets purchased or constructed by the District are recorded at cost. Donated capital assets are
recorded at acquisition value as of the date received. The District has a capitalization threshold of $5,000.
Depreciation is computed using the straight-line method over the estimated useful lives of the various assets.
Water canals, water, and wastewater lines are depreciated over 25 to 50 years; office equipment and vehicles
are depreciated over 5 years.
Water stock and rights contributed to the District are recorded at the same value the District is currently
paying for the purchase of similar stock.
F) Restricted Assets
Certain assets of the District are restricted in use by ordinance or debt covenant and accordingly are shown
as restricted assets on the accompanying statement of net position. Unexpended Bond proceeds are set aside
for capital improvements, District deposits into Bond trustee accounts are to be used for debt service, and
utility deposits must be returned to the customers at their request after their account has been paid timely
for 12 consecutive months, or when their account is closed.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
38
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
G) Cash and Cash Equivalents
For the purposes of the statement of cash flows, cash and cash equivalents have been defined as demand
deposits and highly liquid investments purchased with an original maturity of 3 months or less. The District
invests funds with the Local Agency Investment Fund (LAIF) and Money Market Mutual Funds. Due to the
high liquidity of these investments, these funds are classified as cash equivalents.
H) Investments
The District has adopted the provisions of GASB Statement No. 72, Fair Value Measurement and Application.
The objective of this Statement is to enhance comparability of financial statements among governments by
measurement of certain assets and liabilities at their fair value using a consistent and more detailed definition
of fair value and accepted valuation techniques. The definition of fair value is the price that would be received
to sell and asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. This Statement establishes a hierarchy of inputs to valuation techniques used to measure
fair value.
I) Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position includes a separate section for deferred outflows
of resources. This separate financial statement element, deferred outflows of resources, represents a
consumption of net position that applies to future periods and so will not be recognized as an outflow of
resources (expense/expenditure) until then. The District has three items which qualify for reporting in this
category: Deferred Outflows Charge on Refunding, Deferred Outflows Related to Pensions, and Deferred
Outflows Related to OPEB.
In addition to liabilities, the statement of financial position includes a separate section for deferred inflows
of resources. This separate financial statement element, deferred inflows of resources, represents an
acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of
resources (revenue) until that time. The District has three items which qualify for reporting in this category:
Deferred Inflows related to Pensions, Deferred Inflows related to OPEB, and Deferred Inflows related to
Bond Refinancing.
J) Compensated Absences
The District has a policy whereby an employee can accumulate unused sick leave and vacation. Sick leave is
to be used for extended periods of sickness; however, upon termination or retirement, a portion will be paid
as additional benefits to the employee. At retirement or termination, employees who have accumulated over
ten years of service will be paid between 50 to 70% of their unused sick leave (based upon their balance of
unused sick leave) at their regular payroll rates in effect at the date of termination. Also, employees can cash
out up to 300 hours of unused sick time, per calendar year, provided that a minimum of 160 hours is retained
after said cash-out. The District has provided for these future costs by accruing a range of the earned and
unused sick leave and 100% of the earned and unused vacation.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
39
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
K) Classification of Revenue
As an enterprise (proprietary) fund, the District classifies its revenues into three classifications: operating
revenue, non-operating revenue, and contributions.
Operating revenues are defined as revenues realized by the District in exchange for providing its primary
services of water distribution and wastewater collection to its customers. Non-operating revenues are those
derived from the investment of cash reserves and from the disposal of excess property, and include those
resources received from entities other than customers, such as governmental agencies and developers, for
purposes not related to capital improvement. Donated plant and cash received for capital improvement
without the requirement that the District give resources in exchange are recorded as contributions.
L) Use of Restricted Resources
The District uses restricted resources, prior to using unrestricted resources, to pay expenses meeting the
criteria imposed on the use of restricted resources by a third party.
M) Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
N) Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to
pensions, and pension expense, information about the fiduciary net position of the District’s California Public
Employees’ Retirement System (CalPERS) plans (Plans) are additions to/deductions from the Plans’ fiduciary
net position and have been determined on the same basis as they are reported by CalPERS. For this purpose,
benefit payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms.
O) Postemployment Benefits Other Than Pensions (OPEB)
For purposes of measuring the District’s OPEB liability related to the California Employer’s Retirement
Benefits Trust (CERBT), deferred outflows of resources and deferred inflows of resources related to OPEB,
and OPEB expense, information about the fiduciary net position of the CERBT and additions to/deductions
from the CERBT fiduciary net position have been determined on the same basis as they are reported by
the CERBT. For this purpose, the CERBT recognizes benefit payments when due and payable in accordance
with the benefit terms. Investments are reported at fair value, except for money market investments and
participating interest earning investment contracts that have a maturity at the time of purchase of one year
or less, which are reported at cost.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
40
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
P) Future Accounting Pronouncements
The applicable GASB Statements listed below will be implemented in future financial statements:
Table 1-2
GASB Statement Description Effective Date
Statement No. 92 Omnibus 2020
The objectives of this statement are to enhance
comparability in accounting and financial reporting and
to improve the consistency of authoritative literature by
addressing practice issues that have been
identified during implementation and application of certain
GASB Statements. The statement addresses
a variety of topics. Some requirements are effective upon
issuance of the statement and other
requirements are effective for the FY 2022-23.
Statement No. 93
Replacement of
Interbank
Offered Rates
As a result of global reference rate reform, the London
Interbank Offered rate (LIBOR) is expected to
cease to exist in its current form at the end of 2021. The
objective of this statement is to address
accounting and financial reporting implications that result
from replacement of an IBOR. The statement
is effective for the FY 2022-23.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
41
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
P) Future Accounting Pronouncements
Table 1-2 - Continued
GASB Statement Description Effective Date
Statement No. 94
Public-Private
and Public-
Public
Partnership
and Availability
Payment
Arrangements
Addresses issues related to public‐private and public‐public
partnership arrangements (PPPs). A PPP is
an arrangement in which a government (the transferor)
contracts with an operator (a governmental or
nongovernmental entity) to provide public services by
conveying control of the right to operate or use a
nonfinancial asset, such as infrastructure or other capital
asset (the underlying PPP asset), for a period
of time in an exchange or exchange‐like transaction. The
statement is effective for the FY 2022-23.
Statement No. 96
Subscription-
based
Information
Technology
Arrangements
Guidance on the accounting and financial reporting for
subscription-based information technology arrangements
(SBITAs) for government end users (governments). The
statement is effective for the FY 2022-23.
Statement No. 99 Omnibus 2022
Objectives of this Statement are to enhance comparability
in accounting and financial reporting and to improve the
consistency of authoritative literature by addressing (1)
practice issues that have been identified during
implementation and application of certain GASB Statements
and (2) accounting and financial reporting for financial
guarantees. The statement is effective for reporting
periods beginning after June 15, 2023.
Statement No. 100
(an amendment of
GASB Statement No.
62)
Accounting
Changes and
Error
Corrections
Prescribes the accounting and financial reporting for (1)
each type of accounting change and (2) error corrections.
This Statement requires disclosure in notes to financial
statements of descriptive information about accounting
changes and error corrections. The statement is effective
for fiscal years beginning after June 15, 2023.
Statement No. 101 Compensated
Absences
Updates the recognition and measurement guidance for
compensated absences by aligning the recognition and
measurement guidance under a unified model and by
amending certain previously required disclosures. The
statement is effective for fiscal years beginning after
December 15, 2023.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
42
2) CASH AND INVESTMENTS
Cash and Investments as of June 30, 2022 are classified in the accompanying financial statements as follows:
Table 2-1
Cash and Cash Equivalents 11,313,557$
Restricted Cash and Cash Equivalents 10,960,683
Investments 4,574,471
Total 26,848,711$
Cash and investments as of June 30, 2022 consist of the following:
Table 2-2
Cash on Hand 5,400$
Deposits with Financial Institutions 5,078,523
Money Market Accounts with Financial Institutions 1,085,739
Investments with Local Agency Investment Fund 16,078,708
Investment in Debt Securities 4,574,471
Total 26,822,841$
Investments Authorized by the California Government Code and the District’s Investment Policy
The table below identifies the investment types that are authorized by the District's investment policy and in
accordance with Section 52601 of the California Government Code The table also identifies certain provisions
of the District's investment policy that address interest rate risk and concentration of credit risk.
Table 2-3
Authorized Investment Type
Maximum
Maturity
Authorize
d Limit
Required
Rating
Bonds and Certificates of Participation by EVWD 5 years None None
U.S. Treasury Bills, Notes, or Bonds 5 years None None
State Registered Warrants, Notes, or Bonds 5 years None None
Notes and Bonds of other Local California Agencies 5 years None None
U.S. Agencies 5 years None None
Negotiable Certificates of Deposits 5 years 30%None
Money Market Mutual Funds and Mutual Funds 5 years 15%2 - AAA
Collateralized Bank Deposits 5 years None None
Local Agency Investment Fund (LAIF)N/A None None
At June 30, 2022, the District had no investments in repurchase agreements and did not utilize this investment
media during the reporting year. As a matter of investment policy, the District does not borrow funds with reverse
repurchase agreements.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
43
2) CASH AND INVESTMENTS - Continued
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates. One of the ways that the District minimizes its exposure to this type of risk is by
investing in investments with laddered maturity dates.
As of June 30, 2022, the District had the following investments and maturities:
Table 2-4
Investment Type Fair Value
Average
Maturity
Freddie Mac 92,922$ 3.14 years
Federal Home Loan Bank 2,787,605 2.81 years
Federal Farm Credit Bank 185,068 4.4 years
US Treasury 1,209,953 1.99 years
Tenn Valley Authority 298,923 2.21 years
LAIF 16,078,708 N/A
Money Market Mutual Funds 551,231 N/A
21,204,410$
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. Presented below is the minimum rating required by (where applicable) the California Government
Code or the District’s investment policy, and the actual rating as of year-end for each investment type.
Table 2-5
Investment Type Fair Value
Minimum
Legal
Rating
Exempt
From
Disclosure
Rating at
Year End
AAA Not Rated
Freddie Mac 92,922$ N/A -$ 92,922$ -$
Federal Home Loan Bank 2,787,605 N/A - 2,787,605 -
Federal Farm Credit Bank 185,068 - 185,068 -
US Treasury 1,209,953 N/A 1,209,953 - -
Tenn Valley Authority 298,923 N/A - 298,923 -
LAIF 16,078,708 N/A - - 16,078,708
Money Market Mutual Funds 551,231 N/A - 551,231 -
21,204,410$ 1,209,953$ 3,915,749$ 16,078,708$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
44
2) CASH AND INVESTMENTS - Continued
Fair Value Measurements
The District categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. These principles recognize a three-tiered fair value hierarchy, as follows:
• Level 1: Investments reflect prices quoted in active markets;
• Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly,
which may include inputs in markets that are not considered to be active; and
• Level 3: Investments reflect prices based upon unobservable sources.
Valuation Technique: Level 2 Investments use the Market Approach which uses prices generated for identical or
similar assets or liabilities.
The District has the following recurring fair value measurements as of June 30, 2022:
Table 2-6
Quoted
Prices in
Active
Markets for
Identical
Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Investments by Fair Value Level (Level 1)(Level 2)(Level 3)Total
Debt Securities
Freddie Mac 92,922$ -$ -$ 92,922$
Federal Home Loan Bank 2,787,605 - - 2,787,605
Federal Farm Credit Bank 185,068 - - 185,068
US Treasury 1,209,953 - - 1,209,953
Tenn Valley Authority 298,923 - - 298,923
Total Investments Measured at Fair Value 4,574,471$ -$ -$ 4,574,471$
Investments Measured at Amortized Cost
LAIF 16,078,708
Money Market Mutual Funds 551,231
Total Investments 21,204,410$
Fair Value Measurements Using
Disclosure Related to Concentration of Credit Risk
The District's policy places no limits on amounts invested in any given issuer beyond that stipulated by the
California Government Code. At June 30, 2022, there were no investments (other than external pools, U.S.
Government Securities and Money Market Mutual Funds) that exceeded 5% of the District's total investments.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
45
2) CASH AND INVESTMENTS – Continued
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a
government will not be able to recover its deposits or will not be able to recover collateral securities that are in
the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the
failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the
value of its investment or collateral securities that are in the possession of another party. The California
Government Code requires California banks and savings and loan associations to secure deposits by pledging
government securities as collateral. Such collateralization of public funds is accomplished by pooling. As such,
collateralized securities are held by the pledging financial institution's agent on behalf of the District. The fair value
of the pledged securities must equal at least 110% of Districts deposits. California law also allows financial
institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the secured
public deposits. The District may waive collateral requirements for deposits which are fully insured by Federal
depository insurance.
As of June 30, 2022, the District had $9,899,019 deposited with financial institutions that were in excess of federal
depository insurance limits. The federal deposit insurance limit is $250,000.
Investment in State Investment Pool
The management of the State of California Pooled Money Investment Account (generally referred to as LAIF) has
reported to its participating agencies that, as of June 30, 2022, the carrying amount (at amortized cost) of the
pool was $234,590,320,982 and the estimated fair value of the pool was $231,570,067,770. The District's
proportionate share of the fair value (as determined by LAIF) as of June 30, 2022, was $16,078,708. Included in
LAIF's investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-
backed securities, loans to certain State funds, and floating rate securities issued by federal agencies, government-
sponsored enterprises, and corporations.
3) RESTRICTED CASH AND CASH EQUIVALENTS
Restricted cash and cash equivalents at June 30, 2022 are restricted as follows:
Table 3-1
Held for Debt Service 230,576$
Capacity Fees from Developers 8,998,318
Customer Deposits 1,390,220
Construction Advances 109,500
North Fork Water Company 232,069
Total 10,960,683$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
46
4) CAPITAL ASSETS
A summary of changes in capital assets for the year ended June 30, 2022 is as follows:
Table 4-1
Beginning of End of
Year Additions Deletions Adjustments Year
Water Fund
Non-Depreciable Assets
Land and Easements 3,408,270$ 491,883$ (751,842)$ -$ 3,148,311$
Water Rights 732,835 - - - 732,835
Construction in Progress 10,058,568 4,664,736 (1,589,243) - 13,134,061
Total Non-Depreciable Assets 14,199,673 5,156,619 (2,341,085) - 17,015,207
Depreciable Assets
Source of Supply 19,253,685 231,875 - - 19,485,560
Pumping Plant 14,890,661 351,548 (55,365) - 15,186,844
Treatment Plant 28,884,303 343,048 - - 29,227,351
Transmission and Distribution Plant 101,936,554 294,779 (1,314,775) - 100,916,558
General Plant 20,565,864 641,701 - - 21,207,565
Total Depreciable Assets 185,531,067 1,862,951 (1,370,140) - 186,023,878
Accumulated Depreciation
Source of Supply (8,456,369) (649,587) - - (9,105,956)
Pumping Plant (7,600,601) (495,288) 54,314 - (8,041,575)
Treatment Plant (13,185,134) (650,690) - - (13,835,824)
Transmission and Distribution Plant (43,104,381) (2,568,027) 426,277 - (45,246,131)
General Plant (7,626,263) (1,119,122) - - (8,745,385)
Total Accumulated Depreciation (79,972,748) (5,482,714) 480,591 - (84,974,871)
Water Fund Capital Assets, Net 119,757,992 1,536,856 (3,230,634) - 118,064,214
Wastewater Fund
Non-Depreciable Assets
Land and Easements 3,383,431 - (684,725) - 2,698,706
Construction in Progress 148,753,482 22,869,942 (759,991) - 170,863,433
Total Non-Depreciable Assets 152,136,913 22,869,942 (1,444,716) - 173,562,139
Depreciable Assets
Wastewater Collection Plant 27,599,602 242,080 - - 27,841,682
General Plant 9,864,381 84,413 - - 9,948,794
Total Depreciable Assets 37,463,983 326,493 - - 37,790,476
Accumulated Depreciation
Wastewater Collection Plant (15,510,660) (462,576) - - (15,973,236)
General Plant (3,739,288) (433,299) - - (4,172,587)
Total Accumulated Depreciation (19,249,948) (895,875) - - (20,145,823)
Wastewater Fund Capital Assets, Net 170,350,948 22,300,560 (1,444,716) - 191,206,792
Total Capital Assets, Net 290,108,940$ 23,837,416$ (4,675,350)$ -$ 309,271,006$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
47
5) LONG-TERM DEBT
The schedule below summarizes changes in long-term debt during the year ended June 30, 2022:
Table 5-1
Beginning
Balance
(June 30, 2021) Additions
Retirements/
P ayments
Ending
Balance
(June 30, 2022)
Current
P ortion
Long-Term
P ortion
Direct Placement:
2020A Refunding Bonds 16,885,000$ - (895,000) 15,990,000 940,000 15,050,000
2020A Unamortized Premium 3,121,998$ - (163,094) 2,958,904 163,094 2,795,810
2020B Refunding Bonds 13,615,000$ - (275,000) 13,340,000 280,000 13,060,000
2020B Unamortized Premium -$ - - - - -
Subtotal Direct Placement 33,621,998 - (1,333,094) 32,288,904 1,383,094 30,905,810
Direct Borrowing:
U.S. Bank Lease Purchase 1,303,702$ -$ (424,831)$ 878,871 434,496$ 444,375$
SBVMWD Loan 2,146,022$ (12,002) (430,000) 1,704,020 429,020 1,275,000
DWR Contracts -$
AVAD Construction 64,240$ - (6,762) 57,478 6,762 50,716
Plant 134 Construction 5,601,571$ - (233,399) 5,368,172 233,399 5,134,774
EFAD Construction 286,354$ - (13,016) 273,337 13,016 260,321
SNRC 126,447,674$ 13,221,385 - 139,669,059 - 139,669,059
Subtotal Direct Borrowing 135,849,563 13,209,383 (1,108,008) 147,950,938 1,116,693 146,834,245
Total 169,471,561$ 13,209,383$ (2,441,102)$ 180,239,842$ 2,499,787$ 177,740,054$
2020 Revenue Bonds
Series 2020A - On September 10, 2020, the District issued $16,885,000 of East Valley Water District
Refunding Revenue Bonds, Series 2020A (2020A Bonds), to accomplish a current refunding of then outstanding
2010 Revenue Bonds ($21,635,000). The 2020A Bonds carry inter est rates ranging from 3.00% to 5.00% and
will be repaid in various principal increments with the final payment due on October 1, 2040. The refunded
2010 Bonds carried interest rates ranging from 4.00% to 5.00% and were due in various principal increments
until October 1, 2040.
The 2020A bonds were issued at a premium of $3,261,890, and after paying issuance costs of $161,885, net
proceeds were $19,985,005. The net proceeds, combined with a $2,129,931 sinking fund for 2010 bond debt
service, were sufficient to accomplish the refunding of the existing debt. All refunded debt has been retired.
The refunding resulted in a difference between the reacquisition price and the carrying amount of the old debt
of $259,548. This difference is included in the accompanying financial statements as a Deferred Outflows of
Resources and is being charged to operations through the year 2040 using the straight -line method of
amortization. The District completed the refunding to decrease total debt service over the nex t 20 years by
$6,052,794, and to obtain an economic gain (difference between the present values of the old and new debt
service payment) of $4,765,023.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
48
5) LONG-TERM DEBT - Continued
Series 2020B - Also on September 10, 2020, the District issued $13,615,000 of East Valley Water District
Refunding Revenue Bonds, Series 2020B (2020B Bonds), to accomplish an advance refunding of then
outstanding 2013 Revenue Bonds ($12,085,000). The 2020B Refunding Bonds carry interest rates from 0.42
% to 2.93 % (federally taxable) and will be repaid in various principal increments with the final payment due
on October 1, 2043. The refunded 2013 Bonds carried interest rates ranging from 4.00% to 5.00% and were
due in various principal increments until October 1, 2043.
The 2020B bonds were issued at face value, and after paying issuance costs of $123,500, net proceeds were
$13,491,500. The net proceeds, combined with a $292,563 sinking fund held for 2013 bond debt service, were
used to purchase US Government securities which were deposited in an irrevocable trust with an escrow agent
to provide debt service on the 2013 Bonds until October 1, 2023 on which date all outstanding bonds will be
redeemed. The advance refunding met the requirements of an in-substance defeasance there fore, accordingly,
the 2013 Revenue Bonds are no longer reflected as a liability on the accompanying financial statements.
The refunding resulted in a difference between the reacquisition price and the carrying amount of the old debt
of $259,548. This difference is included in the accompanying financial statements as a Deferred Outflows of
Resources and is being charged to operations through the year 2043 using the straight -line method of
amortization. The District completed the refunding to decrease total debt service over the next 23 years by
$3,014,190, and to obtain an economic gain (difference between the present values of the old and new debt
service payment) of $2,154,117.
US Bank Lease Purchase
On November 13, 2013 the District entered into a Lease Purchase Agreement with US Bancorp Government
Leasing and Finance, Inc. (US Bank), to implement Energy Conservation Measures (ECM) identified in a
comprehensive energy conservation and operational efficiency study prepared by Honeywell International, Inc.
(Honeywell). Honeywell has been contracted to install the facilities necessary to achieve the energy savings
identified in their study, and has guaranteed that the savings will be sufficient to pay the debt service on the
lease with US Bank. Project costs paid to Honeywell, and the amount borrowed from US Bank under the lease
agreement is $3,998,560 with an interest rate of 2.3 8%. Semi-annual payments are $226,398, to com mence
in September 2014 through March 2024. The indenture authorizes, upon default, the Trustee to declare
immediate due and payable the total unpaid principal of the Bonds and accrued interest thereon.
San Bernardino Valley Municipal Water District - City Creek Turnout and Plant 134 Hydroelectric
Station Loan
On January 20, 2015, the District entered into an agreement with the SBVMWD for the construction, financing,
and maintenance of a turnout by which the District’s surface water treatment plant can receive State Project
water. The total amount borrowed for construction of the project is $4,367,927 bearing interest at the State of
California Local Agency Investment Fund (LAIF) apportionment rate, which is 0.75% at June 30, 2022. Debt
service payments are to be made annually on February 1st over ten years.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
49
5) LONG-TERM DEBT - Continued
Department of Water Resources Contract 00C412 - Arroyo Verde Assessment District (AVAD)
On June 30, 2004, the District entered into a Funding Agreement for replacement of distribution pipelines in
the section of the District's service area formerly served by the Arroyo Verde Water Company. The original loan
amount was $169,052 with an annual interest rate of 0%. Semi -annual payments of $3,381 are due through
January 2031 and are secured by annual assessments to property owners within the Arroyo Verde Assessment
District. The indenture authorizes, upon default, the Trustee to declare immediate due and payable the total
unpaid principal of the Bonds and accrued interest thereon.
Department of Water Resources Contract 10CX110 - Plant 134
On December 21, 2010, the District entered into a Funding Agreement to upgrade treatment methods utilized
by the District's surface water treatment plant (Plant 134). The amount borrowed under the agreement is
$7,001,964 with an annual interest rate of 0%. Semi-annual payments of $116,699 are due through January
2045, and are secured by a pledge of net revenues of the District's water operating fund . The indenture
authorizes, upon default, the State to declare immediate due and payable the total unpaid prin cipal of the debt
and accrued interest thereon.
Department of Water Resources Contract 11CX101 - Eastwood Farms Assessment District (EFAD)
On June 15, 2011 the District entered into a Funding Agreement for replacement of distribution pipelines in the
section of the District's service area formerly serviced by the Eastwood Farms Water Users Association. The
amount of the loan is $390,482 with an annual interest rate of 0%. Semi-annual payments of $6,508 are due
for 30 years through January 2043. Repayment of the loan is secured by annual assessments to property
owners within the Eastwood Farms Assessment District. The indenture authorizes, upon default, the Trustee to
declare immediate due and payable the total unpaid principal of the Bonds and accrued interest thereon.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
50
5) LONG-TERM DEBT – Continued
The aggregate debt service requirements to maturity for long -term debt as of June 30, 2022 are as follows
(excludes unamortized premiums/discounts and the California State Water Resource Control Board Contract C-
06-8106-110):
Table 5-2
Year Ending
June 30,Principal Interest Total
2023 2,337,673$ 1,016,316$ 3,353,989$
2024 2,397,552 978,199 3,375,751
2025 1,988,177 911,238 2,899,415
2026 1,633,177 855,337 2,488,514
2027 1,243,177 808,729 2,051,906
2028-2032 6,777,505 3,452,319 10,229,824
2033-2037 7,842,075 2,353,005 10,195,080
2038-2042 8,997,075 1,194,543 10,191,618
2043-2045 4,541,421 112,732 4,654,153
37,757,832$ 11,682,418$ 49,440,250$
California State Water Resources Control Board Contract C -06-8106-110 – Sterling Natural
Resource Center
On June 26, 2018 the District entered into a Funding Agreement for the construction of a 6 million gallon per
day (mgd) water recycling plant with the State Water Resources Control Board. The initial agreement approves
$11.5 million for design cost reimbursement, with a revised agreement covering design and construction costs
totaling $157 million executed on December 2, 2019. The revised Agreement includes a $6.7 million grant and
a low interest (1.8%) loan for the balance of $150.3 million.
As of June 30, 2022 the District has incurred $138.6 million in design and construction cost, the District has
drawn approximately $126.4 million, $12.2 million is awaiting reimbursement (Due From Other Governments)
of the $150.3 million in loan financing available. Repayment on the loan will begin one year after the completion
of construction and annual installment payments of principal and interest are projected to be approximately
$6.8 million. The District has pledged available water and wastewater revenue for the repaymen t of the loan,
including the following new revenue streams:
• Wastewater treatment charges (previously paid to the City of San Bernardino)
• Sale of electrical energy produced by plant digesters (beyond energy used on site)
• Local Resource Investment Program fees for recycled water delivered for groundwater recharge
• Tipping fees from waste haulers
Estimated debt service on this loan is not included in Table 5-2 above.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
51
5) LONG-TERM DEBT - Continued
Security for debt is as follows:
Table 5-3
Debt Security
2020A and 2020B Refunding
Revenue Bonds and Department
of Water Resources
Construction Loans
The District is required to maintain net revenues, as
defined by the revenue bond trust agreements and State of
California Department of Public Health Funding agreements
of at least 120% of District's annual debt service (principal
and interest). At June 30, 2021, net water revenues
represented 339% of the annual water debt service and net
wastewater revenues represented 896% of the annual
wastewater debt service.
6) COMPENSATED ABSENCES
Compensated absences are comprised of unused vacation leave and a limited amount of sick leave which is
accrued as earned in accordance with District policy. The District's liability for compensated absences is
determined annually. Current portions are determined based on estimates of usage, amounts in excess of 196
hours that will be voluntarily cashed out and amounts that will be cashed out upon termination of employment.
Table 6-1
Beginning of
Year Additions
Usage /
Payments End of Year
Current
Portion
Long-Term
Portion
Accrued Vacation Leave 604,783$ 231,437$ (206,087)$ 630,133$ 347,001$ 283,132$
Accrued Sick Leave 601,759 808,971 (753,234) 657,496 257,121 400,375
Total 1,206,542$ 1,040,408$ (959,321)$ 1,287,629$ 604,122$ 683,507$
7) NET INVESTMENT IN CAPITAL ASSETS
Net Investment in capital assets at June 30, 2022 consisted of the following:
Table 7-1
Non-Depreciable Capital Assets 190,577,346$
Depreciable Capital Assets 223,814,354
Accumulated Depreciation (105,120,694)
North Fork Water Company 651,683
Loans Payable (160,270,423)
Bonds Payable (32,288,904)
Deferred Inflows (1,181,143)
Deferred Ouflows 896,852
Total 117,079,071$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
52
8) DEFINED BENEFIT PENSION PLAN (PERS)
A) General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the District’s Miscellaneous
Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the
California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plans are established
by State statue and East Valley Water District resolution. CalPERS issues publicly available reports that include
a full description of the pension plans regarding benefit provisions, assumptions, and membership information
that can be found on the CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death
benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of
credited service, equal to one year of full-time employment. Members with five years of total service are
eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability
benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957
Survivor Benefit, or the Optional Settlement 2 W Death Benefit. The cost-of-living adjustments for each plan
are applied as specified by the Public Employees’ Retirement Law.
The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows:
Table 8-1
Prior to On or after
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 2.7% @55 2.0% @62
Benefit Vesting Schedule 5 years service 5 years service
Benefit Payments monthly for life monthly for life
Retirement Age 50 - 55 52 - 67
Monthly Benefits, as a % of Eligible Compensation 2.0% to 2.7%1.0% to 2.5%
Required Employee Contribution Rates 8.0%6.5%
Required Employer Contribution Rates 13.66%7.65%
Miscellaneous
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer
contribution rates for all public employers be determined on an annual basis by the actuary and shall be
effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are
determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the
estimated amount necessary to finance the costs of benefits earned by employees dur ing the year, with an
additional amount to finance any unfunded accrued liability. The District is required to contribute the
difference between the actuarially determined rate and the contribution rate of employees.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
53
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
For the year ended June 30, 2022, the contributions recognized as part of pension expense for the Plans
were as follows:
Table 8-2
Miscellaneous
Contributions - Employer $ 1,019,834
B) Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related
to Pensions
As of June 30, 2022, the District reported net pension liabilities for its proportionate shares of the net
pension liability of the Plans as follows:
Table 8-3
Proportionate Share
of Net Pension
Liability
Miscellaneous $ 6,657,689
The District’s net pension liability for each Plan is measured as the proportionate share of the net
pension liability. The net pension liability of each of the Plans is measured as of June 30, 2022, and the
total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial
valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The
District’s proportion of the net pension liability was based on a projection of the District’s long-term share
of contributions to the pension plans relative to the projected contributions of all participating employers,
actuarially determined. The District’s proportionate share of the net pension liability for each Plan as of
June 30, 2021 and 2022 was as follows:
Table 8-4
Proportion - June 30, 2021 0.29192%
Proportion - June 30, 2022 0.35063%
Change - Increase (Decrease)0.05871%
Miscellaneous
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
54
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
For the year ended June 30, 2022, the District recognized pension expense of $2,159,042. At June 30, 2022,
the District reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Table 8-5
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between expected and actual
experience $ 746,589 -$
Changes in Assumptions -
Net differences between projected and actual
earnings on plan investments - 5,811,810
Change in employer's proportion 48,122 265,265
Difference between the employer's
contributions and the employer's proportionate
share of contributions 210,342 38,066
Pension contributions subsequent to
measurement date 1,019,834
Total $ 2,024,887 $ 6,115,141
$1,019,834 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended June 30,
2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized as pension expense as follows:
Table 8-6
Year Ended
June 30,Amount
2023 $ (1,050,926)
2024 (1,146,027)
2025 (1,307,052)
2026 (1,606,083)
$ (5,110,088)
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
55
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
Actuarial Assumptions
The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following
actuarial assumptions:
Table 8-7
Miscellaneous
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Entry Age Normal in accordance with the requirements of GASB
Market Value of Assets
7.15%
2.50%
Varies by Entry Age and Service
Derived using CalPERS' membership data for all Funds
The lesser of contract COLA or 2.50% until Purchasing Power
Protection Allowance floor on purchasing power applies, 2.50%
thereafter
(1)
Mortality Rate Table (1)
Post Retirement Benefit
Increase
The mortality table used was developed based on CalPERS’ specific data. The probabilities
of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to
2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected
mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
For more details on this table, please refer to the CalPERS Experience Study and Review
of Actuarial Assumptions report from December 2017 that can be found on the CalPERS
website.
Actuarial Cost Method
Asset Valuation Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increases
Discount Rate
The discount rate used to measure the total pension liability remained the same at 7.15%. To determine
whether the municipal bond rate should be used in the calculation of a discount rate for the plan, CalPERS
stress tested plans that would most likely result in a discount rate that would be different from the
actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets.
Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calcu lation
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
56
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
is not necessary. The long term expected discount rate of 7.15% will be applied to all plans in the Public
Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be
obtained from the CalPERS website.
CalPERS continues the Asset Liability Management (ALM) process to expand its review of assets and
liabilities to ensure financial risks to the System are better understood, communicated, and mitigated. To
establish appropriate levels of risk, ALM is focused on investment and actuarial policies. These policies
include key decision factors and intend to drive optimum asset allocations, while stabilizing employer
contribution rates, and the volatility of those rates year to year. Additionally, to better manage risks a rising
from terminating agencies, CalPERS has enhanced its oversight of contracting public agencies' financial
health through its development of a standardized review criteria. These improvements include streamlining
the collection and termination process to reduce the timeframe, accelerating notifications to the Board and
members, and adopting a risk oversight process to improve early detection of financial hardship issues.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which expected future real rates of return (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS considered both short-term and long-term
market return expectations as well as the expected pension fund cash flows. Using historical returns of all
funds’ asset classes, expected compound (geometric) returns were calculated over the short term (first 10
years) and the long term (11+ years) using a building -block approach. Using the expected nominal returns
for both short term and long term, the present value of benefits was calculated for each fund. The expected
rate of return was set by calculating the rounded single equivalent expected return that arrived at the same
present value of benefits for cash flows as the one calculated using both short -term and long-term returns.
The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted
to account for assumed administrative expenses.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
57
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
The table below reflects the long-term expected real rate of return by asset class. The rate of return was
calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
These rates of return are net of administrative expenses.
Table 8-8
Asset Class (1)
Assumed
Asset
Allocation
Real Return
Years 1 - 10 (2)
Real Return
Years 11+(3)
Global Equity 50.0%4.80%5.98%
Fixed Income 28.0%1.00%2.62%
Inflation Assets 0.0%0.77%1.81%
Private Equity 8.0%6.30%7.23%
Real Assets 13.0%3.75%4.93%
Liquidity 1.0%0.00%-0.92%
Total 100.0%
(1)In the System's Annual Report,Fixed Income is included in Global Debt Securities;
Liquidity is included in Short-term Investments;Inflation Assets are included in both Global
Equity.
(2) An expected inflation of 2.00% used for this period.
(3) An expected inflation of 2.92% used for this period.
C) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount
Rate
The following presents East Valley Water District’s proportionate share of the net pension liability for the
Plan, calculated using the current discount rate, as well as what the District’s proportionate share of the
net pension liability would be if it were calculated using a discount rate that is one-percentage point lower
or one-percentage point higher than the current rate:
Table 8-9
Miscellaneous
1% Decrease 6.15%
Net Pension Liability $ 13,346,922
Current Discount Rate 7.15%
Net Pension Liability $ 6,657,689
1% Increase 8.15%
Net Pension Liability $ 1,127,795
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
58
D) Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued
CalPERS financial reports.
E) Payable to the Pension Plan
At June 30, 2022, the District reported a payable of $0 for the outstanding number of contributions to the
pension plan required for the year ended June 30, 2022.
9) COMMITMENTS AND CONTINGENCIES
Grant Awards
Grant funds received by the District are subject to audit by the grantor agencies. Such audit could lead to
requests for reimbursements to the grantor agencies for expenditures disallowed under terms of the grant.
Management of the District believes that such disallowances, if any, would not be significant.
10) RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omission; injuries to employees; and natural disasters. The District participates in a joint powers
agreement (JPA) with the Special District Risk Management Authority (Authority). The Authority is a risk-pooling
self-insurance authority created under the provisions of California Government Code Section 6500 et. sec. The
Authority is governed by a Board consisting of 7 directors that are either a manager or Board member of a current
member agency that were elected by members of SDRMA. The Board controls the operations of the Authority
including selection of management and approval of operation budgets. The relationship between the District and
the Authority is such that the Authority is not a component unit of the District for financial reporting purposes.
Settled claims have been immaterial and claims liabilities have not been reported in these financial statements as
of June 30, 2022, or in the previous two fiscal years.
The purpose of the Authority is to arrange and administer programs of insurance for the pooling of self -insured
losses and to purchase excess insurance coverage.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
59
10) RISK MANAGEMENT – Continued
At June 30, 2022, the District's participation in the self-insurance programs of the Authority was as follows:
Table 10-1
Description Deductible
Personal Injury and
Property Damage Liability
Coverage - General
10,000,000$
Per occurrence /
aggregate where
applicable
$500 (property
damage only)
Personal Injury and
Property Damage Liability
Coverage - Auto
10,000,000$ Per accident None
Public Officials and
Employees Errors and
Omissions Liability
10,000,000$ Per wrongful act / annual
member aggregate None
Employment Practices
Liability 10,000,000$
Per wrongful employment
practice / aggregate limits
per member included with
Public Officials and
Employee Errors and
Omissions Coverage
None up to $10,000,
50% co-insurance from
$10,000 to $50,000,
none for amounts
greater than $50,000
Employee Benefits Liability 10,000,000$ Per wrongful act / annual
member aggregate None
Employee Dishonesty
Coverage 1,000,000$ Per loss None
Public Officials Personal
Liability 500,000$
Per occurrence / annual
aggregate per Board
Member
$ 500
Automobile Physical
Damage ACV Limits
Replacement cost (stated
value adjusted for
depreciation on selected
vehicles)
$250/$500 or
$500/$1,000
comprehensive /
collision (as elected per
vehicle)
Uninsured Motorist Bodily
Injury Coverage 750,000$ Per accident None
Property Coverage 1,000,000,000$
Replacement cost for
scheduled property if
replaced (if not replaced
within two years, actual
cash value basis)
$ 1,000
Boiler and Machinery 100,000,000$ Replacement cost $ 1,000
Limits
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
60
11) POST-EMPLOYMENT HEALTHCARE BENEFITS
The District provides post-employment healthcare benefits for retired employees and eligible surviving spouses
in accordance with the plan as established by the District. As of June 30, 2022, the District’s total liability for
post-employment healthcare benefits and details of the plan are ex plained below:
Table 11-1
OPEB Plan
Net OPEB
Liability
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
OPEB
Expense
Retiree Benefits Plan 3,276,038$ 794,163$ 288,464$ 258,955$
Plan Description and Eligibility
The District contributes to the retiree health coverage of eligible retirees and eligible surviving spouses. As of
June 7, 2011, the District is part of the Public Agency portion of the California Employers’ Retiree Benefit Trust
Fund (CERBT), an agent multiple-employer plan administered by California Public Employees’ Retirement
System (CalPERS), which acts as a common investment and administrative agent for participating public
employers within the State of California. A menu of benefit provisions as well as other requirements is
established by State statute within the Public Employees’ Retirement Law. The District selects optional benefit
provisions from the benefit menu by contract with CalPERS a nd adopts those benefits through District
resolution. CalPERS issues a Comprehensive Annual Financial Report (Report). The Report is issued in aggregate
and includes the sum of all CalPERS plans. Copies of the CalPERS Report may be obtained from the CalPERS
Executive Office, 400 P Street, Sacramento, California 95814.
Membership in the health benefit plan consisted of the following at July 1, 20 22, the date of the latest actuarial
valuation:
Table 11-2
Participant Type
28
0
Active employees 65
93
Number of
Participants
Inactive participants currently receiving benefits
Inactive participants entitled to but not yet receiving benefit
Total
Funding Policy
The contribution requirements of plan members and the District are established and may be amended by the
Board of Directors. At retirement, the District provides the minimum employer contribution under the CalPERS
Health Program for eligible retirees and surviving spouses in receipt of a pension benefit from CalPERS. An
employee is eligible for this employer contribution provided they are vested in their CalPERS pension benefit
and commence payment of their pension benefit within 120 days of retirement with the District. Vesting requires
at least five years of service. The surviving spouse of an eligible retiree who elected spouse coverage under
CalPERS is eligible for the employer contribution upon death of the retiree.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
61
11) POST-EMPLOYMENT HEALTHCARE BENEFITS – Continued
Employees retiring with at least 10 years of District service will receive an additional District contribution through
attainment of Medicare eligibility age. The additional contribution is based on the negotiated dollar am ount at
retirement (currently $750 per month). The surviving spouse of an eligible retiree is eligible for the District's
contribution upon the death of the retiree through the spouse's attainment of Medicare eligibility age.
The District’s funding policy is to contribute the Annual Determined Contribution (ADC) to their account within
the CERBT. For fiscal year ended June 30, 2021, the District paid $412,106 to the plan including the implicit
rate subsidy. The District contributed $186,785 including the implicit rate subsidy for retiree health benefits to
the Trust during the fiscal year ended June 30, 2022.
Net OPEB Liability
The table herein shows the components of the net OPEB liability of the District:
Table 11-3
Balance
June 30, 2022
Total OPEB Liability $ 3,276,038
Plan Fiduciary Net Position 1,414,163
District's Net OPEB Liability (Asset) $ 1,861,875
Investments
As described above, at June 30, 2022, all Plan investments are held in the CERBT through CalPERS.
Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
At June 30, 2022, the District reported deferred outlflows of resources and deferred inflows of resources related
to pensions from the sources as follows:
Table 11-4
Deferred Outflows and Inflows of Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Contributions subsequent to measurement date 348,363$ -$
Differences between expected and actuarial experience 445,800 -
Changes of assumptions - (193,081)
Differences between projected and actual earnings on - (95,383)
Total 794,163$ (288,464)$
The deferred outflow of resources results from a change of assumptions and is amortized over the expected
average remaining service life (EARSL) of the plan participants. Contributions submitted subsequent to the
measurement date will be recognized in the following fiscal year. The EARSL for the OPEB plan for June 30,
2022 is five years. The year of amortization is recognized in OPEB expense for the year the gain or loss occurs.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
62
11) POST-EMPLOYMENT HEALTHCARE BENEFITS – Continued
The remaining amount is deferred and will be amortized over the remaining periods not to exceed four years.
The deferred inflows of resources related to OPEB resulting from the net differences between projected and
actual earnings on planned investments is amortized over a five-year period on a straight-line basis. One-fifth
is recognized in pension expense during the measurement period and the remaining amount is deferred and
will be amortized over the remaining four-year period.
Deferred inflows and outflows will be amortized as follow:
Table 11-5
Year Ending
June 30, Amortization
2023 $ 8,801
2024 8,406
2025 9,100
2026 5,246
2027 31,734
Thereafter 94,049
Total $ 157,336
Actuarial Methods and Assumptions
The District’s net OPEB liability was measured as of June 30, 2021, and the total OPEB liability used to calculate
the net OPEB liability was determined by an actuarial valuation as of June 30, 20 21. Liabilities in this report
were calculated as of the valuation date.
The total OPEB liability was determined by an actuarial valuation as of June 30, 20 21, using the actuarial
assumptions shown herein, applied to all periods included in the measurement, unless otherwise specified.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
63
11) POST-EMPLOYMENT HEALTHCARE BENEFITS - Continued
Table 11-6
Actuarial Methods and Assumptions
Valuation Date June 30, 2021
Measurement Date June 30, 2021
Inflation 2.75%
Salary Increases 2.75%
Investment Rate of Return 6.50%
Health Care Trend Rate 6.00% HMO / 6.00% PPO
Mortality rates were based upon the rates under the CalPERS pensions plan updated to reflect the most recent
experience study.
The long-term expected rate of return on Plan investments was determined using a building -block method in
which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan
investment expense and inflation) are developed for each major asset class. These ranges are combined to
produce the long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of
return for each major asset class included in the OPEB plan’s target asset allocation at June 30, 20 21 are shown
herein:
Table 11-7
Asset Class
Global Equity 40%5.00%
Fixed Income 43%5.00%
Inflation Assets 5%3.00%
Commodities 4%3.00%
REITs 8%5.00%
Total 100%6.50%
Target
Allocation
L/T Expected
Real ROR
The discount rate used to measure the total OPEB liability was 6.50 percent. The discount rate assumes the
District continues to fully fund for its retiree health benefits through the CERBT under its investment allocation
strategy 2. The rate reflects the CERBT published median interest rate for strategy 2 with an additional margin
for adverse deviation.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
64
11) POST-EMPLOYMENT HEALTHCARE BENEFITS - Continued
Changes in the Net OPEB Liability
Table 11-8
Total OPEB
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability
(Asset)
(a) - (b)
Balances at June 30, 2021 $ 3,064,031 $ 1,023,054 $ 2,040,977
Changes for the year:
Service Cost 122,441 - 122,441
Interest 199,913 - 199,913
Differences between expected
and actual experience 278,335 - 278,335
Employer Contributions - 412,106 (412,106)
Net Investment Income - 204,887 (204,887)
Change of assumptions (163,361) - (163,361)
Benefit Payments (225,321) (225,321) -
Administrative Expenses - (563) 563
Other Expenses - - -
Net Changes 212,007 391,109 (179,102)
Balances at June 30, 2022 $ 3,276,038 $ 1,414,163 $ 1,861,875
Increase (Decrease)
The following presents the District’s net OPEB liability calculated using the discount rate of 6.50 percent, as
well as what the net OPEB liability would be if it were calculated using a discount rate that is 1 -percentage-
point lower (5.5 percent) or 1-percentage-point higher (7.5 percent) than the current rate:
Table 11-9
Discount Rate
Net OPEB Liability
(Asset)
2,097,776$
1,861,875$
1,476,536$
1% Decrease (5.50%)
Current Discount Rate (6.50%)
1% Increase (7.50%)
The following presents the District’s net OPEB liability calculated using the current healthcare cost trend rate
of 6.5 percent, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend
rates that are 1-percentage-point lower (5.5 percent) or 1-percentage-point higher (7.5 percent) than the
current rate:
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2022
65
11) POST-EMPLOYMENT HEALTHCARE BENEFITS - Continued
Table 11-10
Healthcare Trend Rate
Net OPEB Liability
(Asset)
1% Decrease (5.00% HMO/5.00% PPO Decreasing to 4.00%
HMO/4.00% PPO)1,418,479$
Current Healthcare Cost Trend Rates (6.00% HMO/6.00% PPO
Decreasing to 5.00% HMO/5.00% PPO)1,861,875$
1% Increase (7.00% HMO/7.00%PPO Decreasing to 6.00%
HMO/6.00% PPO)2,181,020$
OPEB Expense
For the year ended June 30, 2022, the District recognized OPEB expense of $258,955 and recorded deferred
outflows of resources of $794,163 for contributions made during fiscal year 2022 after the measurement date.
The deferred outflows will be recognized in OPEB expense for the period ending June 30, 2023.
The District recorded $288,464 of deferred inflows of resources resulting from the differences between
projected and actual earnings on OPEB plan investments for the period ending June 30, 2021. The deferred
inflows of resources will be amortized and recognized in OPEB expense over three remaining periods ending
June 30, 2025.
12) CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS
The District has three significant active construction project commitments as of June 30, 2022. The following
contracts are related to the construction of the Recycled Water Facility.
Table 12-1
Contractual Commitments Spent to Date
Remaining
Commitment
Design-Build Services of the Granular Activated Carbon
Treatment System -$ 1,777,399$
Design-Build Services of the Recycled Water Facility 180,219,119$ 30,270,445$
Design-Build Services of the Digester 17,983,544$ 2,245,500$
East Valley Water District
Schedule of District’s Proportionate Share of the Net Pension Liability
Year Ended June 30, 2022
Last Ten Years*
The accompanying notes to required supplementary information are an integral part of this schedule.
67
Schedule of District’s Proportionate Share of the Net Pension Liability
The schedule presents information on the District’s proportionate share of the net pension liability, the plans’ fiduciary
net position and, when applicable, the proportionate share of the net pension liability associated with the District. In
the future, as data becomes available, 10 years of information will be presented.
2022 2021 2020
Proportion of the Net Pension
Liability 0.350626%0.291917%0.294797%
Proportionate Share of the
Net Pension Liability $ 6,657,689 $12,313,294 $11,805,140
Covered Payroll $ 6,536,459 $ 6,188,589 $ 5,888,338
Proportionate Share of the
Net Pension Liability as
Percentage of Covered Payroll 101.85%198.97%200.48%
Plan's Fiduciary Net Position $44,006,462 $36,172,219 $34,016,773
Plan's Fiduciary Net Position as
a Percentage of the Total
Pension Liability 86.86%77.71%77.73%
2019 2018 2017 2016 2015
Proportion of the Net Pension
Liability 0.28782%0.11699%0.11585%0.11551%0.10632%
Proportionate Share of the
Net Pension Liability $10,846,955 $11,601,798 $10,024,712 $ 7,928,173 $ 6,615,935
Covered Payroll $ 5,447,702 $ 4,489,575 $ 5,097,156 $ 4,715,712 $ 4,436,236
Proportionate Share of the
Net Pension Liability as
Percentage of Covered Payroll 199.11%258.42%196.67%168.12%149.13%
Plan's Fiduciary Net Position $33,563,265 $27,706,747 $27,529,345 $28,045,198 $29,336,566
Plan's Fiduciary Net Position as
a Percentage of the Total
Pension Liability 77.69%71.37%74.06%78.40%79.82%
Note: Fiscal year 2015 was the first year of implementation, therefore only eight years are shown.
East Valley Water District
Schedule of District’s Contributions
Year Ended June 30, 2022
Last Ten Years*
The accompanying notes to required supplementary information are an integral part of this schedule.
68
Schedule of District’s Contributions
The schedule presents information on the District’s required contribution, the amounts actually contributed, and
any excess or deficiency related to the required contribution. In the future, as data becomes available, 10 years of
information will be presented.
2022 2021 2020
Contractually Required
Contribution (Actuarially
Determined)1,019,834$ 1,900,537$ 1,798,495$
Contributions in Relation to
the Actuarially Determined
Contributions 1,019,834$ 1,900,537$ 1,798,495$
Contribution Deficiency
(Excess)-$ -$ -$
Covered Payroll $ 5,888,338 $ 6,188,589 $ 5,888,338
Contributions as a Percentage
of Covered Payroll 17.32%30.71%30.54%
2019 2018 2017 2016 2015
Contractually Required
Contribution (Actuarially
Determined)1,228,277$ 1,579,268$ 1,035,102$ 895,822$ 742,546$
Contributions in Relation to
the Actuarially Determined
Contributions 1,228,277$ 1,579,268$ 1,035,102$ 895,822$ 742,546$
Contribution Deficiency
(Excess)-$ -$ -$ -$ -$
Covered Payroll $ 5,658,626 $ 5,447,702 $ 4,489,575 $ 5,097,156 $ 4,715,712
Contributions as a Percentage
of Covered Payroll 21.71%28.99%23.06%17.57%15.75%
Note: Fiscal year 2015 was the first year of implementation, therefore only eight years are shown.
East Valley Water District
Schedule of Changes in the Net OPEB Liability
Year Ended June 30, 2022
Last Ten Years*
The accompanying notes to required supplementary information are an integral part of this schedule.
69
Schedule of Changes in the Net OPEB Liability
Accounting standards require presentation of 10 years of information. However, the information in this schedule is
not required to be presented retroactively. Years will be added to this schedule as future data becomes available.
Total OPEB Liability 2022 2021 2020 2019 2018
Service Cost 122,441$ 122,428$ 106,297$ 103,452$ 97,138$
Interest 199,913 189,204 174,233 166,826 160,043
Differences bewteen
exptected and actual
experience
278,335 75,893 192,265 - -
Changes of assumptions (163,361) - (65,796) - -
Benefit Payments, including
refunds of member
contributions
(225,321) (220,316) (168,787) (149,550) (168,724)
Net Change in Total OPEB
Liability 212,007 167,209 238,212 120,728 88,457
Total OPEB Liability - Beginning 3,064,031 2,896,822 2,658,610 2,537,882 2,449,425
Total OPEB Liability - Ending (a)3,276,038$ 3,064,031$ 2,896,822$ 2,658,610$ 2,537,882$
Plan Fiduciary Net Position 2022 2021 2020 2019 2018
Contributions - Employer 412,106$ 405,008$ 278,539$ 149,548$ 218,724$
Net Investment Income 204,887 38,644 48,769 37,365 36,877
Benefit Payments (225,321) (220,316) (168,787) (149,548) (168,724)
Administrative Expense - - (330) - (261)
Other Expense (263) (427) (240) (683) -
Net Change in Plan Fiduciary
Net Position 391,409$ 222,909$ 157,951$ 36,682$ 86,616$
Plan Fiduciary Net Position -
Beginning 1,023,054 800,145 642,194 605,512 518,896
Plan Fiduciary Net Position -
Ending (b)1,414,463$ 1,023,054$ 800,145$ 642,194$ 605,512$
Net OPEB Liability (Asset) -
Ending (a) - (b)1,861,575$ 2,040,977$ 2,096,677$ 2,016,416$ 1,932,370$
Plan Fiduciary Net Position as a
Percentage of the Total OPEB
Liability 43.18%33.39%27.62%24.16%23.86%
Covered-Employee Payroll 5,847,005$ 5,902,604$ 5,744,627$ 5,495,000$ 5,495,000$
Net OPEB Liability (Asset) as a
Percentage of Covered-
Employee Payroll
31.84%34.58%36.50%36.70%35.17%
Note: Fiscal year 2018 was the first year of implementation, therefore only five years are shown.
East Valley Water District
Schedule of OPEB Healthcare Contributions
Year Ended June 30, 2022
Last Ten Years*
The accompanying notes to required supplementary information are an integral part of this schedule.
70
Schedule of OPEB Healthcare Contributions
Accounting standards require presentation of 10 years of information. However, the information in this schedule is
not required to be presented retroactively. Years will be added to this schedule as future data becomes available.
OPEB Contributions 2022 2021 2020 2019 2018
Actuarially Determined
Contribution (ADC)348,363$ 350,024$ 362,533$ 285,551$ 144,415$
Contributions in Relation to
the ADC (412,106) (405,008) (278,539) (149,548) (218,724)
Contribution Deficiency
(Excess)(63,743) (54,984) 83,994 136,003 (74,309)
District's Covered-Employee
Payroll 5,847,005$ 5,903,000$ 5,745,000$ 5,495,000$ 5,495,000$
Contributions as a Percentage
of Covered-Employee Payroll 5.96%5.93%6.31%5.20%2.63%
Note: Fiscal year 2018 was the first year of implementation, therefore only four years are shown.
East Valley Water District
Notes to the Required Supplementary Information
Purpose of Schedules
Year Ended June 30, 2022
71
Schedule of District’s Proportionate Share of the Net Pension Liability
The schedule presents information on the District’s proportionate share of the net pension liability, the plans’ fiduciary
net position and, when applicable, the State’s proportionate share of the net pension liability associated with the
District. In the future, as data becomes available, 10 years of information will be presented.
Schedule of District’s Contributions
The schedule presents information on the District’s required contribution, the amounts actually contributed, and any
excess or deficiency related to the required contribution. In the future, as data becomes available, 10 years of
information will be presented.
Schedule of Changes in Net OPEB Liability
The schedule is intended to show the funded status of the District’s actuarially determined liability for postemployment
benefits other than pensions. In the future, as data becomes available, 10 years of information will be presented.
Schedule of OPEB Healthcare Contributions
The schedule presents information on the District’s required contribution, the amounts actually contributed, and any
excess or deficiency related to the required contribution. In the future, as data becomes available, 10 years of
information will be presented. Pertinent valuation dates and methods and assumptions used to determine the OPEB
liability and required contributions are as follows:
Measurement Date June 30, 2021
Valuation Date June 30, 2021
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percentage of Payroll
Remaining Amortization Period 12 years
Assets Valuation Method 5 Year
Inflation 2.75%
Salary Increases
2.75% Annually Plus Merit
Increases Based on 2017
Experience Study
Investement Rate of Return 6.50%
72
73
East Valley Water District
History and Organization
Year Ended June 30, 2022
74
Formation of the District
The Board of Supervisors of San Bernardino County approved a petition in writing for the formation of the East Valley
Water District (formerly East San Bernardino County Water District) under Division 12 of the Water Code of the State
of California and ordered an election held January 12, 1954. The formation of the District was voted by the electors.
The Board of Supervisors of San Bernardino County, by action on January 18, 1954, approved the formation of the
District. Incorporation of the "East Valley Water District" was approved by the State of California on February 1, 1954.
East Valley Water District Financing Authority
The East Valley Water District Financing Authority (Authority) is a public body organized and existing under a Joint
Exercise of Powers Agreement, and under the Constitution and laws of the State of California, between East Valley
Water District and the California Municipal Finance Authority. The Authority was formed to assist in the financing and
refinancing of capital improvement projects of the District for the use, benefit, and enjoyment of the public.
Nature of Business
The District has been engaged in the furnishing of water service and wastewater transmission services to its customers
since inception.
Location
The District office is located at 31111 Greenspot Road, Highland, California. The office is situated within the District's
boundaries which encompass an area of approximately 30.1 square miles within the County of San Bernardino,
California.
Directors
Phillip R. Goodrich Chairman of the Board
James Morales, Jr.Vice-Chairman of the Board
David E. Smith Governing Board Member
Ronald L. Coats Governing Board Member
Chris Carrillo Governing Board Member
East Valley Water District
Phillip R. Goodrich President
James Morales, Jr.Vice-President
Michael Moore Secretary/Executive Director
Brian W. Tompkins Director of Finance
East Valley Water District Financing Authority
Management
Michael Moore General Manager/CEO
Brian W. Tompkins Chief Financial Officer/Treasurer
East Valley Water District
District General Counsel
Jean Cihigoyenetche JC Law Firm
East Valley Water District
East Valley Water District
Combining Schedule of Net Position
June 30, 2022
75
Water Wastewater Eliminations Total
ASSETS
Current Assets:
Cash & Cash Equivalents 10,441,125$ 872,432$ -$ 11,313,557$
Investments 3,066,942 1,507,529 - 4,574,471
Accounts Receivable, Net 6,154,405 820,529 - 6,974,934
Interest Receivable 15,084 3,377 - 18,461
Other Receivables 1,994,056 - - 1,994,056
Due From Sewer Fund 12,488,658 - 12,488,658 -
Due from Other Governments - 10,306,002 - 10,306,002
Inventory 937,818 6,721 - 944,539
Prepaid Expenses 236,212 34,285 - 270,497
Total Current Assets 35,334,300 13,550,875 12,488,658 36,396,517
Non-Current Assets:
Restricted Cash & Cash Equivalents 5,519,041 5,441,642 - 10,960,683
Assessments Receivable 285,745 - - 285,745
Capital Assets not being Depreciated 17,015,207 173,562,139 - 190,577,346
Capital Assets, Net (Note 4)101,049,007 17,644,653 - 118,693,660
Total Non-Current Assets 123,869,000 196,648,434 - 320,517,434
Total Assets 159,203,300 210,199,309 12,488,658 356,913,951
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 610,559 286,293 - 896,852
Deferred Outflows - Pensions 1,571,216 453,671 - 2,024,887
Deferred Outflows - OPEB 555,915 238,248 - 794,163
Total Deferred Outflows 2,737,690 978,212 - 3,715,902
Total Assets and Deferred
Outflows of Resources 161,940,990$ 211,177,521$ 12,488,658$ 360,629,853$
(Continued)
East Valley Water District
Combining Schedule of Net Position – Continued
June 30, 2022
76
Water Wastewater Eliminations Total
LIABILITIES
Current Liabilities:
Accounts Payable & Accrued Expenses 5,189,794$ 94,138$ -$ 5,283,932$
Accrued Payroll & Benefits 609,394 163,384 - 772,778
Customer Service Deposits 1,390,220 - - 1,390,220
Construction Advances and Retentions 275,180 9,913,633 - 10,188,813
Accrued Interest Payable 238,560 24,947 - 263,507
Current Portion of Compensated
Absences 495,871 108,251 - 604,122
Current Portion of Long-Term Debt 2,324,787 175,000 - 2,499,787
Due To Water Fund - 12,488,658 12,488,658 -
Total Current Liabilities 10,523,806 22,968,011 12,488,658 21,003,159
Non-Current Liabilities:
Compensated Absences,
Less Current Portion 571,309 112,198 - 683,507
Net Pension Liability 5,094,004 1,563,685 - 6,657,689
Net OPEB Liability 1,303,313 558,562 - 1,861,875
Long-Term Debt, Less Current Portion 33,690,995 144,049,059 - 177,740,054
Total Non-Current Liabilities 40,659,621 146,283,504 - 186,943,125
Total Liabilities 51,183,427 169,251,515 12,488,658 207,946,284
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Refunding 1,181,143 - - 1,181,143
Deferred Inflows - Pensions 5,201,672 913,469 - 6,115,141
Deferred Inflows - OPEB 201,925 86,539 - 288,464
Total Deferred Inflows 6,584,740 1,000,008 - 7,584,748
Total Liabilities and Deferred
Inflows of Resources 57,768,167 170,251,523 12,488,658 215,531,032
NET POSITION
Net Investment in Capital Assets 82,129,530 34,949,541 - 117,079,071
Restricted for:
Future Capital Expansion Projects 3,637,872 5,438,142 - 9,076,014
Unrestricted 18,405,421 538,315 - 18,943,736
Total Net Position 104,172,823$ 40,925,998$ -$ 145,098,821$
East Valley Water District
Combining Schedule of Revenues, Expenses, and Changes in Net Position
Year Ended June 30, 2022
77
Water Wastewater Eliminations Total
OPERATING REVENUE
Water Sales 18,472,876$ -$ -$ 18,472,876$
Wastewater Treatment Charges - 9,764,357 - 9,764,357
System Charges 9,192,297 4,828,526 - 14,020,823
Other Revenue 723,093 112,466 - 835,559
Total Operating Revenue 28,388,266 14,705,349 - 43,093,615
OPERATING EXPENSES
Source of Supply:
Salary & Benefits 764,709 - - 764,709
Contract Services 375,125 - - 375,125
Utilities 1,811,850 - - 1,811,850
Insurance 7,314 - - 7,314
Materials & Supplies 44,085 - - 44,085
Purchased Water 301,483 - - 301,483
Water Assessments 71,613 - - 71,613
Chemicals 109,440 - - 109,440
Professional Development 684 - 684
Taxes 28,959 - - 28,959
Total Source of Supply 3,515,262 - - 3,515,262
Pumping:
Salary & Benefits 38,009 - - 38,009
Contract Services 58,641 - - 58,641
Utilities 646,029 - - 646,029
Materials & Supplies 14,164 - - 14,164
Total Pumping 756,843 - - 756,843
Water Treatment:
Salary & Benefits 454,279 - - 454,279
Contract Services 171,347 - - 171,347
Utilities 203,512 - - 203,512
Materials & Supplies 38,742 - - 38,742
Chemicals 177,850 - - 177,850
Total Water Treatment 1,045,730 - - 1,045,730
Wastewater Treatment:
Treatment Services - 9,084,061 - 9,084,061
Transmission & Distribution:
Salary & Benefits 2,375,773 - - 2,375,773
Contract Services 449,747 - - 449,747
Materials & Supplies 699,307 - - 699,307
Chemicals 729 - - 729
Permits 5,670 - - 5,670
Tools 32,027 - - 32,027
Professional Development 75 - - 75
Total Transmission & Distribution 3,563,328$ -$ -$ 3,563,328$
(Continued)
East Valley Water District
Combining Schedule of Revenues, Expenses, and Changes in Net Position -Continued
Year Ended June 30, 2022
78
Water Wastewater Eliminations Total
OPERATING EXPENSES - Continued
Wastewater Collection:
Salary & Benefits -$ 433,506$ -$ 433,506$
Contract Services - 138,574 - 138,574
Materials & Supplies - 10,558 - 10,558
Tools - 4,490 - 4,490
Total Wastewater Collection - 587,128 - 587,128
Customer Accounts:
Salary & Benefits 703,130 280,992 - 984,122
Contract Services 379,509 153,515 - 533,024
Utilities 27,763 13,869 - 41,632
Materials & Supplies 9,477 371 - 9,848
General Office Supplies 10,086 310 - 10,396
Tools 2,991 61 - 3,052
Printing & Publishing 1,290 553 - 1,843
Postage 78,870 39,719 - 118,589
Professional Development 12,287 5,115 - 17,402
Total Customer Accounts 1,225,403 494,505 - 1,719,908
General & Administrative:
Salary & Benefits 6,823,098 1,560,601 - 8,383,699
Contract Services 2,158,892 442,968 - 2,601,860
Conservation Rebates 225,308 - - 225,308
Utilities 417,273 53,573 - 470,846
Insurance 614,024 153,506 - 767,530
Materials & Supplies 453,266 152,458 - 605,724
General Office Supplies 27,180 11,380 - 38,560
Legal Services 136,019 69,457 - 205,476
Permits 52,476 29,707 - 82,183
Memberships & Dues 96,916 29,485 - 126,401
Tools 22,742 3,449 - 26,191
Printing & Publishing 123,255 61,220 - 184,475
Professional Development 143,842 47,401 - 191,243
Rents & Leases 14,396 3,599 - 17,995
Total General & Administrative 11,308,687 2,618,804 - 13,927,491
OPERATING EXPENSES BEFORE
DEPRECIATION 21,415,253 12,784,498 - 34,199,751
Depreciation 5,482,714 895,876 - 6,378,590
Total Operating Expenses 26,897,967 13,680,374 - 40,578,341
OPERATING INCOME (LOSS)1,490,299$ 1,024,975$ -$ 2,515,274$
(Continued)
East Valley Water District
Combining Schedule of Revenues, Expenses, and Changes in Net Position - Continued
Year Ended June 30, 2022
79
Water Wastewater Eliminations Total
NON-OPERATING REVENUES
Investment Income 152,248$ 13,741$ -$ 165,989$
Gain on Disposal of Assets 807,425 235,137 1,042,562
Other Income 33,706 - - 33,706
Total Non-Operating Revenues 993,379 248,878 - 1,242,257
NON-OPERATING EXPENSES
Interest Expense 1,020,436 274,787 - 1,295,223
Unrealized Investment Losses 208,617 94,857 303,474
Total Non-Operating Expenses 1,229,053 369,644 - 1,598,697
INCOME BEFORE CONTRIBUTIONS 1,254,625 904,209 - 2,158,834
CONTRIBUTIONS:
Capacity Charges 983,303 1,739,645 - 2,722,948
Operating Grants 100,248 3,329 - 103,577
Total Contributions 1,083,551 1,742,974 - 2,826,525
CHANGE IN NET POSITION 2,338,176 2,647,183 - 4,985,359
TOTAL NET POSITION, BEGINNING 101,834,647 38,278,815 - 140,113,462
TOTAL NET POSITION, ENDING 104,172,823$ 40,925,998$ -$ 145,098,821$
80
East Valley Water District
Combining Schedule of Cash Flows
Year Ended June 30, 2022
81
Water Wastewater Eliminations Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 28,158,779$ 14,224,761$ -$ 42,383,540$
Cash Payments for Employees Services (9,584,253) (2,583,616) - (12,167,869)
Cash Payments to Suppliers (12,235,070) (10,200,878) - (22,435,948)
Cash from Other SourcesMisc Income / (Expense)(1,186,152) - - (1,186,152)
Net Cash Provided
by Operating Activities 5,153,304 1,440,267 - 6,593,571
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Assessments Received 23,081 - - 23,081
Proceeds from Sale of Capital Assets 2,448,816 931,143 - 3,379,959
Developer Fees Received 1,083,551 1,742,974 - 2,826,525
Reimbursements Received - 8,287,456 - 8,287,456
Proceeds/Draws from SRF Loan - 13,221,385 - 13,221,385
Proceeds from Issuance of Bonds - - - -
Due To Water Fund - (3,730,214) 3,730,214 -
Due From Sewer Fund 3,730,214 - (3,730,214) -
Payments on Capital Debt (2,120,011) (170,000) - (2,290,011)
Interest Paid on Capital Debt (1,268,525) (259,135) - (1,527,660)
Acquisition of Capital Assets (5,924,371) (19,973,339) - (25,897,710)
Net Cash Used for Capital
and Related Financing Activities (2,027,245) 50,270 - (1,976,975)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received from Investments 51,686 11,014 - 62,700
Acquisition of Investment Securities (1,860,198) (1,596,534) - (3,456,732)
Proceeds from Sales of Investments 999,643 1,358,030 - 2,357,673
Net Cash Provided (Used)
by Investing Activities (808,869) (227,490) - (1,036,359)
Net (Decrease) Increase in Cash
and Cash Equivalents 2,317,190 1,263,047 - 3,580,237
Cash and Equivalents, Beginning of Year 13,642,976 5,051,027 - 18,694,003
Cash and Equivalents, End of Year 15,960,166$ 6,314,074$ -$ 22,274,240$
RECONCILIATION TO STATEMENT
OF NET POSITION
Cash and Cash Equivalents 10,441,125$ 872,432$ -$ 11,313,557$
Restricted Cash and Cash Equivalents 5,519,041 5,441,642 10,960,683
Total Cash and Cash Equivalents 15,960,166$ 6,314,074$ -$ 22,274,240$
(Continued)
East Valley Water District
Combining Schedule of Cash Flows - Continued
Year Ended June 30, 2022
82
Water Wastewater Eliminations Total
Reconciliation of Operating Income (Loss) to
Net Cash Provided by Operating Activities
Operating Income (Loss)2,853,836$ 750,861$ -$ 3,604,697$
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided by
Operating Activities:
Depreciation 5,482,714 895,876 - 6,378,590
Miscellaneous Income/(Expense)126,699 - - 126,699
CIP Projects Expensed 494,039 220,304 - 714,343
Change in Assets and Liabilities:
Customer Receivables (457,645) (480,588) - (938,233)
Inventory (440,925) - - (440,925)
Prepaids 95,385 21,522 - 116,907
Accounts Payable - Supplier (2,119,764) 66,695 - (2,053,069)
Salaries & Benefits Payable 96,969 (8,798) - 88,171
Compensated absences 106,691 (25,605) - 81,086
Other Receivables (1,312,853) - - (1,312,853)
Customer / Developer Deposits 228,158 - - 228,158
5,153,304$ 1,440,267$ -$ 6,593,571$
NON-CASH INVESTING, CAPITAL, AND
NON-CAPITAL FINANCING ACTIVITIES:
Fair Value Adjustments to Investments 208,616$ 92,130$ -$ 300,746$
Bond RefinanceLiabilities, Including Retainage -$ 2,079,355$ -$ 2,079,355$
Capital Assets Acquired by Assuming
83
84
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2022
Table of Contents
85
Page No.
Statistical Information Section
Financial Trends .................................................................................................. 87-91
These schedules contain information to help the reader understand how the District’s financial
performance and well-being have changed over time.
Changes in Net Position by Component – Last Ten Fiscal Years .................................... 87-88
Operating Revenue by Source – Last Ten Fiscal Years ..................................................... 89
Water Operating Expenses – Last Ten Fiscal Years .......................................................... 90
Wastewater Operating Expenses – Last Ten Fiscal Years ................................................. 91
Revenue Capacity ................................................................................................ 92-98
These schedules contain information to help the reader assess the District’s most significant
sources of revenue, water sales, meter charges, wastewater system charges, wastewater
treatment charges, and other charges.
Water Sales and Production – Last Ten Fiscal Years ........................................................ 92
Revenue Rates for Water – Last Ten Fiscal Years ........................................................ 93-94
Revenue Rates for Wastewater – Last Ten Fiscal Years ................................................ 95-96
Active Services by Type – Last Ten Fiscal Years .............................................................. 97
Principal Customers – Current Fiscal Year and Nine Years Ago.......................................... 98
Debt Capacity ................................................................................................... 99-100
These schedules present information to help the reader assess the affordability of the District’s
current levels of outstanding debt and the District’s ability to issue additional debt in the future.
Ratio of Outstanding Debt – Last Ten Fiscal Years ........................................................... 99
Debt Service Coverage – Last Ten Fiscal Years............................................................... 100
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2022
Table of Contents
86
Page No.
Statistical Information Section - Continued
Demographic Information ..................................................................................... 101
These schedules offer demographic indicators to help the reader understand the environment
within which the District’s financial activities take place.
Demographic and Economic Statistics – Last Ten Calendar / Fiscal Years ......................... 101
Operating Information ................................................................................... 102-103
These schedules contain service and infrastructure data to help the reader understand how the
information in the District’s financial report relates to the service provided by the District.
Full-Time Equivalent Employees by Department – Last Ten Fiscal Years ........................... 102
Operating and Capacity Indicators for Water and Wastewater – Last Ten Fiscal Years ....... 103
EAST VALLEY WATER DISTRICT
Changes in Net Position by Component
Last Ten Fiscal Years
87
Year ended June 30,
2013 2014 2015 2016 2017
Change In Net Position
Operating Revenue 31,513,194$ 32,620,577$ 30,743,445$ 33,024,082$ 37,448,549$
Operating Expenses 24,859,076 29,191,176 29,146,339 32,655,921 32,299,587
Operating Income (Loss)6,654,118 3,429,401 1,597,106 368,161 5,148,962
Non Operating Revenue
(Expenses)
Investment Income 55,310 49,846 100,830 146,874 69,237
Other Income 397,796 334,700 800,278 830,806 401,323
Interest Expense (1,445,981) (1,917,676) (1,980,062) (1,843,440) (1,776,684)
Amortization (69,038) (99,688) - - -
Gain (Loss) on
Disposal of Assets - (606,085) - - -
(1,061,913) (2,238,903) (1,078,954) (865,760) (1,306,124)
Special Item
Abandoned Projects - - (2,413,478) - (1,615,241)
Hazard Mitigation - - - - -
Capital Contributions 832,515 6,369,890 596,940 732,642 2,446,118
Change in Net Position 6,424,720 7,560,388 (1,298,386) 235,043 4,673,715
Prior Period Adjustment (537,099) - (7,956,231) - -
Cumulative Effect of Change
in Accounting Principles - - - - -
Net Position - Beginning 108,621,485 114,509,106 122,069,494 112,814,877 113,049,920
Net Position - Ending 114,509,106$ 122,069,494$ 112,814,877$ 113,049,920$ 117,723,635$
Net Position By Component
Net Investment in
Capital Assets 95,258,164 101,757,787 98,091,685 103,222,160 104,659,796
Restricted 920,554 2,274,769 2,322,238 2,276,695 2,847,924
Unrestricted 18,330,388 18,036,938 12,400,954 7,551,065 10,215,915
114,509,106$ 122,069,494$ 112,814,877$ 113,049,920$ 117,723,635$
(Continued)
SOURCE: East Valley Water District - Finance Department
EAST VALLEY WATER DISTRICT
Changes in Net Position by Component - Continued
Last Ten Fiscal Years
88
Year ended June 30,Year ended June 30,
2018 2019 2020 2021 2022
Change In Net Position
Operating Revenue 40,291,125$ 39,309,298$ 39,812,912$ 42,236,814$ 43,093,615$
Operating Expenses 35,980,099 35,898,073 36,249,650 36,496,064 40,578,341
Operating Income (Loss)4,311,026 3,411,225 3,563,262 5,740,750 2,515,274
Non Operating Revenue
(Expenses)
Investment Income 221,359 571,549 524,675 167,499 165,989
Other Income 258,560 307,247 121,983 43,744 (269,768)
Interest Expense (1,777,852) (1,684,986) (1,579,104) (1,387,113) (1,295,223)
Amortization - - -
Gain (Loss) on
Disposal of Assets - 705,285 (1,579,104) (1,236,600) 1,042,562
(1,297,933) (100,905) (2,511,550) (2,412,470) (356,440)
Special Item
Abandoned Projects - - - -
Hazard Mitigation (155,177) - - -
Capital Contributions 523,918 611,673 9,961,522 877,185 2,826,525
Change in Net Position 3,381,834 3,921,993 11,013,234 4,205,465 4,985,359
Prior Period Adjustment - - - -
Cumulative Effect of Change
in Accounting Principles (1,711,803) - - -
Net Position - Beginning 117,723,635 119,393,666 123,315,659 135,907,997 140,113,462
Net Position - Ending 119,393,666$ 123,315,659$ 134,328,893$ 140,113,462$ 145,098,821$
Net Position By Component
Net Investment in
Capital Assets 103,210,762 95,468,735 106,708,555 114,767,362 117,079,071
Restricted 3,334,940 3,460,835 6,659,487 6,435,505 9,076,014
Unrestricted 12,847,964 24,386,089 22,539,955 18,910,595 18,943,736
119,393,666$ 123,315,659$ 135,907,997$ 140,113,462$ 145,098,821$
SOURCE: East Valley Water District - Finance Department
EAST VALLEY WATER DISTRICT
Operating Revenue by Source
Last Ten Fiscal Years
89
Wastewater Wastewater Total
Year Ended Water Meter System Treatment Other Operating
June 30,Sales Charges Charges Charges Charges Revenue
2013 14,780,448 4,555,414 4,473,032 6,998,487 705,813 31,513,194
2014 15,351,609 4,704,036 4,649,212 7,197,418 718,302 32,620,577
2015 13,505,159 4,874,581 4,531,355 6,907,828 924,522 30,743,445
2016 11,927,523 8,063,077 4,286,594 7,165,655 1,581,233 33,024,082
2017 14,556,339 8,944,652 4,703,439 8,128,030 1,116,089 37,448,549
2018 17,063,891 8,999,756 4,668,923 8,697,671 860,884 40,291,125
2019 15,746,654 9,009,881 4,643,732 8,592,950 1,316,081 39,309,298
2020 16,902,370 9,023,267 4,647,347 8,496,012 743,916 39,812,912
2021 19,305,631 9,217,003 4,705,683 8,456,508 551,989 42,236,814
2022 18,472,876 9,192,297 4,828,526 9,764,357 835,559 43,093,615
SOURCE: East Valley Water District - Finance Department
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
Other Charges
Wastewater
Treatement Charges
Wastewater System
Charges
Meter Charges
Water Sales
EAST VALLEY WATER DISTRICT
Water Operating Expenses
Last Ten Fiscal Years
90
Trans Customer Accts,Total
Year Ended Source of Water &General, &Water Oper
June 30,Supply Pumping Treatment Distribution Admin Expenses
2013 672,101 2,683,340 874,448 1,469,243 5,323,101 11,022,233
2014 2,875,518 992,555 1,516,412 1,437,831 6,397,534 13,219,850
2015 3,025,714 615,147 743,099 2,120,374 6,785,909 13,290,243
2016 2,442,061 696,432 799,947 2,327,185 8,782,957 15,048,582
2017 3,401,062 646,940 750,052 2,222,953 7,696,211 14,717,218
2018 2,595,071 683,296 969,460 2,538,910 9,347,724 16,134,461
2019 2,975,348 585,585 840,623 2,819,288 9,393,555 16,614,399
2020 3,263,403 457,846 891,127 3,460,642 9,414,762 17,487,780
2021 3,617,788 596,586 1,008,129 3,253,175 9,208,176 17,683,854
2022 3,515,262 756,843 1,045,730 3,563,328 12,534,090 21,415,253
SOURCES: East Valley Water District - Customer Service, Finance, and Operations Departments
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
Source of Supply Pumping
Water Treatment Trans & Distribution
Customer Accts, General, & Admin
EAST VALLEY WATER DISTRICT
Wastewater Operating Expenses
Last Ten Fiscal Years
91
Customer Accts,Total
Year Ended Wastewater Wastewater General, &Wastewater Oper
June 30,Collections Treatment Admin Expenses
2013 382,197 6,998,487 2,758,848 10,139,532
2014 312,193 7,197,418 2,953,997 10,463,608
2015 448,399 6,907,828 3,356,250 10,712,477
2016 407,913 7,302,389 2,752,779 10,463,081
2017 425,944 8,128,030 2,510,920 11,064,894
2018 753,000 8,697,671 3,367,091 12,817,762
2019 700,507 8,592,950 3,309,983 12,603,440
2020 767,448 8,496,012 2,922,949 12,186,409
2021 722,680 8,456,508 3,140,650 12,319,838
2022 587,128 9,084,061 3,113,309 12,784,498
SOURCES: East Valley Water District - Customer Service and Finance Departments
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Customer Accts,
General, & Admin
Wastewater
Treatment
Wastewater
Collections
EAST VALLEY WATER DISTRICT
Water Sales and Production
Last Ten Fiscal Years
92
Year Ended Water Sales Water Produced
June 30,(Acre Feet)(Acre Feet)
2013 20,036 22,308
2014 19,910 20,665
2015 17,431 18,494
2016 14,999 16,614
2017 16,223 17,922
2018 18,361 18,997
2019 16,167 17,397
2020 17,037 17,596
2021 18,429 18,784
2022 17,998 18,789
SOURCES: East Valley Water District - Finance and Operations Departments
0
5,000
10,000
15,000
20,000
25,000
Water Produced
Water Sales
EAST VALLEY WATER DISTRICT
Revenue Rates for Water
Last Ten Fiscal Years
93
Year ended June 30,
2013 2014 2015(1)2016 2017
Tier 1-$1.45 Tier 1-$1.45 Tier 1-$1.63
Tier 2-$2.07 Tier 2-$2.07 Tier 2-$2.32
Tier 3-$2.89 Tier 3-$2.89 Tier 3-$3.24
Year ended June 30,Year ended June 30,
2013 2014 2015 2016 2017
13.71$ 13.71$ 20.96$ 20.96$ 23.06$
13.71 13.71 26.61 26.61 29.27
20.87 20.87 37.92 37.92 41.71
38.60 38.60 66.19 66.19 72.81
88.48 88.48 100.12 100.12 110.13
163.25 163.25 207.54 207.54 228.30
270.06 270.06 365.85 365.85 402.44
537.09 537.09 744.67 744.67 819.14
857.52 857.52 1,366.62 1,366.62 1,503.28
(Continued)
NOTES:
HCF = Hundred Cubic Feet = 748 gallons
(1)On June 1, 2015 the District adopted Water Budget Based Rates.
(2)On January 1, 2020 the District adopted New Water Rates.
(3)On January 1, 2022 the District adopted New Water Rates.
SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions
Meter Size
Charge per HCF 1.77$ 1.77$
Water Monthly System Charges
(inches)
5/8
3/4
8
3
4
6
1
1 1/2
2
Water Consumption Rates
EAST VALLEY WATER DISTRICT
Revenue Rates for Water - Continued
Last Ten Fiscal Years
94
Year ended June 30,Year ended June 30,
2018 2019 2020(2)2021 2022(3)
Tier 1-$1.73 Tier 1-$1.73 Tier 1-$1.83 Tier 1-$1.83 Tier 1-$1.98
Tier 2-$2.46 Tier 2-$2.46 Tier 2-$2.61 Tier 2-$2.61 Tier 2-$2.54
Tier 3-$3.44 Tier 3-$3.44 Tier 3-$3.64 Tier 3-$3.64 Tier 3-$3.93
Year ended June 30,
2018 2019 2020 2021 2022(3)
23.06$ 23.06$ 23.06$ 23.06$ 24.01$
29.27 29.27 29.27 29.27 30.85
41.71 41.71 41.71 41.71 44.52
72.81 72.81 72.81 72.81 78.69
110.13 110.13 110.13 110.13 119.70
228.30 228.30 228.30 228.30 229.05
402.44 402.44 402.44 402.44 352.07
819.14 819.14 819.14 819.14 693.79
1,503.28 1,503.28 1,503.28 1,503.28 1,923.98
NOTES:
HCF = Hundred Cubic Feet = 748 gallons
(1)On June 1, 2015 the District adopted Water Budget Based Rates.
(2)On January 1, 2020 the District adopted New Water Rates.
(3)On January 1, 2022 the District adopted New Water Rates.
SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions
Charge per HCF
Meter Size
Water Monthly System Charges
(inches)
5/8
3/4
8
3
4
6
1
1 1/2
2
Water Consumption Rates
EAST VALLEY WATER DISTRICT
Revenue Rates for Wastewater
Last Ten Fiscal Years
95
Year ended June 30,
2013 2014 2015(1)2016 2017
Single-Family Residential (1 to 3 units)
Flat Monthly Charge (per unit)15.36$ 15.36$ 15.36$ 15.36$ 15.36$
Multi-Family Residential (4 or more units)
Flat Monthly Charge (per unit)15.36 15.36$ 15.36$ 15.36$ 15.36
Commercial Non-Residential
Flat Monthly Charge 3.90 3.90 3.90 3.90 3.90
plus,
Charge per HCF 0.55 0.55 0.55 0.55 0.55
Year ended June 30,
2013 2014 2015(1)2016 2017
Residential (Flat Monthly Charge)
Flat Monthly Charge
Residential (1 unit)18.50$ 18.50$ 18.50$ 19.18$ 20.85$
Residential (2 units)N/A N/A N/A N/A N/A
Residential (3 units)N/A N/A N/A N/A N/A
Multi-Family (2 units)37.00 37.00 37.00 38.37 41.72
Multi-Family (3 units)55.50 55.50 55.50 57.55 62.58
Multi-Family (4 or more units)N/A N/A N/A N/A N/A
Commercial
Multi-Family (4+ units)2.40 2.40 2.40 1.71 1.90
Non-Residential 2.40 2.40 2.40 3.18 3.42
plus,
Charge per HCF:
Multi-Family (4+ units)1.25 1.25 1.25 1.36 1.48
Retail 2.10 2.10 2.10 2.28 2.47
Restaurants/Lounges 2.70 2.70 2.70 2.93 3.18
Schools/Churches 1.10 1.10 1.10 1.19 1.29
Governments/Municipal 1.50 1.50 1.50 1.63 1.77
Laundromats 1.50 1.50 1.50 1.63 1.77
Dry Cleaners 2.10 2.10 2.10 2.28 2.47
Convalescent Homes 1.35 1.35 1.35 1.46 1.58
Auto Repair/Svc Stations 1.30 1.30 1.30 1.41 1.53
Car Wash 1.30 1.30 1.30 1.41 1.53
Patton State Hospital N/A N/A N/A N/A N/A
Hotels 2.70 2.70 2.70 2.93 3.18
Ofc Bldgs/Motels 1.50 1.50 1.50 1.63 1.77
NOTES:(Continued)
HCF = Hundred Cubic Feet = 748 gallons
(1)On June 1, 2015 the District adopted Water Budget Based Rates.
(2)
SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions
Starting in May 2022, the District transitioned from rates established by the City of San Bernardino to
rates adopted as the result of a wastewater Cost of Service Analysis for the District's Sterling Natural
Resource Center Water Reclamation Plant.
Wastewater Maintenance Charges
Wastewater Treatment Charges
EAST VALLEY WATER DISTRICT
Revenue Rates for Wastewater - Continued
Last Ten Fiscal Years
96
Year ended June 30,Year ended June 30,
2018 2019 2020 2021 2022(2)
Single-Family Residential (1 to 3 units)
Flat Monthly Charge (per unit)15.36$ 15.36$ 15.36$ 15.36$ 14.25$
Multi-Family Residential (4 or more units)
Flat Monthly Charge (per unit)N/A N/A N/A N/A 13.46$
Commercial Non-Residential
Flat Monthly Charge 3.90 3.90 3.90 3.90 10.33
plus,
Charge per HCF 0.55 0.55 0.55 0.55 -
Year ended June 30,Year ended June 30,
2018 2019 2020 2021 2022(2)
Residential (Flat Monthly Charge)
Flat Monthly Charge
Residential (1 unit)21.55$ 21.55$ 21.55$ 21.55$ 23.37$
Residential (2 units)N/A N/A N/A N/A 23.37
Residential (3 units)N/A N/A N/A N/A 23.37
Multi-Family (2 units)43.10 43.10 43.10 43.10 20.86
Multi-Family (3 units)64.64 64.64 64.64 64.64 20.86
Multi-Family (4 or more units)N/A N/A N/A N/A 20.86
Commercial
Multi-Family (4+ units)1.97 1.97 1.97 1.97 N/A
Non-Residential 3.52 3.52 3.52 3.52 10.83
plus,
Charge per HCF:
Multi-Family (4 + units)1.53 1.53 1.53 1.53 N/A
Retail 2.55 2.55 2.55 2.55 1.31
Restaurants/Lounges 3.28 3.28 3.28 3.28 1.31
Schools/Churches 1.33 1.33 1.33 1.33 1.31
Governments/Municipal 1.83 1.83 1.83 1.83 1.31
Laundromats 1.83 1.83 1.83 1.83 1.99
Dry Cleaners 2.55 2.55 2.55 2.55 1.99
Convalescent Homes 1.63 1.63 1.63 1.63 1.99
Auto Repair/Svc Stations 1.58 1.58 1.58 1.58 1.99
Car Wash 1.58 1.58 1.58 1.58 1.99
Patton State Hospital N/A N/A N/A N/A 2.36
Hotels 3.28 3.28 3.28 3.28 3.88
Ofc Bldgs/Motels 1.83 1.83 1.83 1.83 3.88
NOTES:
HCF = Hundred Cubic Feet = 748 gallons
(1)On June 1, 2015 the District adopted Water Budget Based Rates.
(2)
SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions
Wastewater Treatment Charges
Starting in May 2022, the District transitioned from rates established by the City of San Bernardino to
rates adopted as the result of a wastewater Cost of Service Analysis for the District's Sterling Natural
Resource Center Water Reclamation Plant.
Wastewater Maintenance Charges
EAST VALLEY WATER DISTRICT
Active Services by Type
Last Ten Fiscal Years
97
Year Ended Residential Multi-Family Total
June 30,(1 to 3 units)(4+ units)Commercial Irrigation Fire Svcs Service
2013 18,584 497 1,268 313 1,321 21,983
2014 18,584 497 1,268 313 1,321 21,983
2015 18,584 497 1,268 313 1,321 21,983
2016 19,500 463 949 275 1,330 22,517
2017 19,526 463 988 275 1,339 22,591
2018 19,526 463 988 275 361 21,613
2019 19,883 474 681 322 252 21,612
2020 19,526 463 988 275 255 21,507
2021 19,526 463 988 275 255 21,507
2022 19,853 463 988 275 255 21,834
SOURCES: East Valley Water District - Customer Service and Finance Departments
0
5,000
10,000
15,000
20,000
25,000
Residential Multi-Family Commercial Irrigation Fire Svcs
EAST VALLEY WATER DISTRICT
Principal Customers
Current Fiscal Year and Nine Years Ago
98
Water Percentage Water Percentage
Consumed of Total Consumed of Total
Customer (AF)Rank (%)(AF)Rank (%)
San Bernardino City Unified School District 649 1 3.45%667 1 2.99%
Patton State Hospital 406 2 2.16%451 2 2.02%
San Manuel Mission Indians 390 3 2.08%270 5 1.21%
City of Highland 348 4 1.85%313 4 1.40%
San Manuel Indian Bingo & Casino 286 5 1.52%220 6 0.99%
East Highlands Ranch 259 6 1.38%318 3 1.43%
Village Lakes Homeowners Association 183 7 0.97%-
Tuscany Apartment Homes 148 8 0.79%-
Stubblefield Mobile Home Parks & Offices 131 9 0.70%170 7 0.76%
Valencia Lea Mobile Home Park 125 10 0.67%136 8 0.61%
City of San Bernardino 111 9 0.50%
Woodman Realty Inc 103 10 0.46%
Total - Top 10 2,925 15.57%2,759 12.37%
Total - Water Produced 18,789 100.00%22,308 100.00%
20132022
EAST VALLEY WATER DISTRICT
Ratio of Outstanding Debt
Last Ten Fiscal Years
99
Fiscal
Year
Revenue
Bonds DWR Loans
Capital
Lease and
Loan
Certificates
of
Participation
Installment
Note
Outstanding
Debt
$ Per
Capita
As a
Share of
Personal
Income
2013 43,400,000 7,101,964 - - - 50,501,964 540 1.69%
2014 42,195,000 7,091,964 3,998,560 - - 53,285,524 561 1.67%
2015 40,930,000 7,071,964 3,671,849 - - 51,673,813 508 1.43%
2016 39,615,000 6,818,565 3,299,108 - - 49,732,673 476 1.30%
2017 38,235,000 6,565,166 7,278,478 - - 52,078,644 510 1.36%
2018 36,800,000 6,721,695 6,392,308 - - 49,914,003 489 1.26%
2019 35,300,000 31,947,551 5,131,238 - - 72,378,789 710 1.72%
2020 33,720,000 69,565,404 4,295,104 - - 107,580,508 1,044 *
2021 30,500,000 132,399,838 3,449,724 - - 166,349,563 1,615 *
2022 29,330,000 145,368,047 2,582,891 - - 177,280,938 1,705 *
Total Outstanding Debt
2020A Refunding Bonds
2020B Refunding Bonds
SBVMWD Loan
Plant 134
AVAD Construction
EFAD Construction
SNRC Construction
U.S. Bank Lease Purchase
Total
NOTE:
** This data was not developed in the format required for this fiscal year.
SOURCE: East Valley Water District - Finance Department
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
$180,000,000
$200,000,000
Revenue Bonds DWR Loans Capital Lease and Loan
Certificates of Participation Installment Note
EAST VALLEY WATER DISTRICT
Debt Service Coverage
Last Ten Fiscal Years
100
Gross Operating Net Available
Revenue(1)Expenses(2)Revenue Principal(3)Interest Total
2013 20,225,013$ 11,022,233$ 9,202,780$ 1,095,000$ 1,382,013$ 2,477,013$ 3.72 %
2014 27,397,559 13,219,850 14,177,709 1,167,718 1,840,671 3,008,389 4.71
2015 20,662,750 12,915,690 7,747,060 1,546,490 1,813,348 3,359,838 2.31
2016 22,543,107 15,048,582 7,494,525 1,851,139 1,718,658 3,569,797 2.10
2017 25,257,709 14,717,219 10,540,490 1,926,956 1,653,322 3,580,278 2.94
2018 27,537,072 16,134,461 11,402,611 2,479,570 1,584,820 4,064,390 2.81
2019 27,071,082 16,614,399 10,456,683 2,904,466 1,593,181 4,497,647 2.32
2020 27,466,707 17,487,780 9,978,927 2,564,310 1,456,842 4,021,152 2.48
2021 29,738,333 17,638,854 12,099,479 4,703,778 1,104,438 5,808,216 2.08
2022 30,465,196 21,415,253 9,049,943 4,703,778 1,104,438 5,808,216 1.56
Gross Operating Net Available
Revenue(1)Expenses(2)Revenue Principal Interest Total
2013 11,600,800$ 10,139,532$ 1,461,268$ 80,000$ 35,100$ $ 115,100 12.70 %
2014 11,974,164 10,463,608 1,510,556 85,000 184,621 269,621 5.60
2015 11,578,742 10,606,751 971,991 85,000 229,725 314,725 3.09
2016 12,095,372 10,463,081 1,632,291 90,000 225,775 315,775 5.17
2017 13,134,564 11,064,894 2,069,670 95,000 221,625 316,625 6.54
2018 13,758,976 12,817,762 941,214 95,000 217,350 312,350 3.01
2019 14,433,970 12,603,440 1,830,530 100,000 212,475 312,475 5.86
2020 22,954,385 12,186,049 10,768,336 105,000 207,350 312,350 34.48
2021 13,586,909 12,319,838 1,267,071 110,000 158,476 268,476 4.72
2022 16,697,201 12,784,498 3,912,703 110,000 158,476 268,476 14.57
NOTES:
(1)
(2)Operating expenses, less depreciation, for the utility fund.
(3)Excludes Debt Service for Assessment Districts' Arroyo Verde and Eastwood Farms.
SOURCE: East Valley Water District - Finance Department
Year Ended
Gross revenue includes all operating revenue, interest income, other non-operating revenue and connection
fees from the utility fund.
Coverage
Debt Service
June 30,
Wastewater Department
Coverage
Year Ended
June 30,
Debt Service
Water Department
EAST VALLEY WATER DISTRICT
Demographics and Economic Statistics
Last Ten Calendar / Fiscal Years
101
Personal Personal
Income Income
District Unemployment Population (thousands Per Capita
Population(3)(4)Rate(1)(3)(2)+of dollars)(2)+(dollars)(2)+
2013 93,500 10.6%2,079,963 66,581,008 32,011
2014 95,000 8.9%2,095,533 70,425,945 33,608
2015 101,733 7.2%2,110,852 74,773,589 35,423
2016 104,457 6.0%2,126,539 77,868,801 36,618
2017 102,208 5.5%2,144,961 80,514,585 37,537
2018 102,000 4.4%2,160,049 83,915,091 38,849
2019 102,000 4.0%2,170,992 89,559,909 41,253
2020 103,000 6.4%2,182,740 99,313,293 45,499
2021 103,000 9.0%2,194,710 108,623,799 49,493
2022 104,000 5.4%***
NOTES:
+This data was revised in 2021(2)
*This data was not developed in the format required for this fiscal year.
SOURCES:
(1)U.S. Department of Labor, Bureau of Labor Statistics (BLS)
Census Bureau midyear population estimates.
(2)Bureau of Economic Analysis (BEA)
Computed using midyear population estimates.
(3)Fiscal Year ends on June 30 of the year that is shown.
(4)East Valley Water District - Finance Department
June 30,
County of San Bernardino
Year Ended
EAST VALLEY WATER DISTRICT
Full-Time Equivalent Employees by Department
Last Ten Fiscal Years
102
District Engineering &Water
Administration Maintenance Operations Reclamation(1)Total
25 27 11 0 63
25.5 29 11 0 65.5*
27.5 28.5 11 0 67*
27 28 13 0 68*
27 29 12 0 68*
26.5 29 13 0 68.5*
27.5 32 11 0 70.5*
26 30 11 0 67
25 30 11 0 66
26 30 11 9 76
NOTES:
*Includes Part-Time Employees (PTEs)
(1)Water Reclamation program started in FY 2021-22
SOURCES: East Valley Water District - Finance and Human Resources Departments
2020
2021
2022
2018
2013
2014
2015
2016
2017
2019
Year Ended
June 30,
0
10
20
30
40
50
60
70
80
District Administration Engineering & Maintenance
Operations Water Reclamation
EAST VALLEY WATER DISTRICT
Operating and Capacity Indicators for Water and Wastewater
Last Ten Fiscal Years
103
Annual Average
Miles of Number of Production Production
Water Main Fire Hydrants (MG)(MGD)
2013 303 2,915 6,529 18
2014 297 2,976 6,488 18
2015 316 3,005 5,680 16
2016 316 3,005 4,887 13
2017 316 3,005 5,286 14
2018 300 3,018 5,983 16
2019 300 3,025 5,268 14
2020 300 3,025 5,552 15
2021 300 3,029 6,121 17
2022 300 3,043 6,122 17
Annual Daily
Miles of Service Sewerage Sewerage
Wastewater Connections (MG)(MGD)
2013 224 19,502 2,285.06 6.26
2014 223 19,504 2,595.08 7.11
2015 224 19,544 2,271.96 6.22
2016 224 19,572 2,167.71 5.94
2017 260 20,290 2,175.40 5.96
2018 225 20,581 2,149.85 5.89
2019 214 20,563 2,091.45 5.73
2020 214 19,679 2,220.61 6.08
2021 214 19,686 2,220.61 6.08
2022 220 19,766 2,448.97 6.71
SOURCE: East Valley Water District - Engineering and Finance Departments
Water System
Wastewater System
Year Ended
June 30,
Year Ended
June 30,
104
EAST VALLEY WATER DISTRICT
Capacity Charge Funds
Year Ended June 30, 2022
105
Capacity Charge Funds
Government Code Section 66013 requires local agencies that collect capacity charges to deposit and account for these
fees in a separate capital facilities fund. In addition, local agencies are required to annual provide the information in
this report to the public upon request. Government Code Section 66013 (b) (3) defines "Capacity charge" means a
charge for public facilities at the time the charge is imposed or charges for new public facilities to be acquired or
constructed in the future that are of proportional benefit to the person or property being charged, including supply or
capacity contracts for rights or entitlements, real property interests, and entitlements and other rights of the local
agency involving capital expense related to its use of the use of existing or new public facilities. "
Government Code Section 66013 (d) outlines the reporting requirements on the capital facilities funds and
expenditures. Government Code Section 66013 (f) (2) exempts capacity charges that are used to pay existing debt
service from the reporting requirements of Section 66013 (d). Two of the District's capacity charges are used to pay
existing debt service; therefore, they are exempt from the reporting requirements. For the purpose of enhancing
transparency, the District has provided the reporting information on its capacity charges that are exempt from Section
66013 (d).
The District has the following capacity charge funds:
Water Capacity Fee Fund. This fund collects System Capacity Charges for new water service connections to pay
for proportionate shares of the District equipment replacements and facility improvements.
Wastewater Capacity Fee Fund. This fund collects a fee for the capacity used by new wastewater connections
and the funds are used to pay for equipment replacements and facility improvements.
EAST VALLEY WATER DISTRICT
Capacity Charge Funds
Year Ended June 30, 2022
106
A summary of changes in Water Fund Capacity Fees collected for the year ended June 30, 2022 is as follows:
Beginning of End of
Categories Year Contributions Usage Year
Storage 162,507$ $ 102,831 $ - $ 265,338
Treatment 813,702 31,463 - 845,165
Supply 436,204 46,637 - 482,841
Trans & Distribution 898,883 424,511 - 1,323,394
General 161,385 27,895 - 189,280
East Treatment Plant 104,193 349,966 - 454,159
2,576,874$ 983,303$ -$ 3,560,177$
A summary of Projects Funded by Capacity Fees for the year ended June 30, 2022:
Categories CIP Project*
FY 2021-22
Expended
% Funded by
Capacity
Total Capacity
Fees Usage
Storage -$ 0%-$
Treatment
Supply
Trans & Distribution
General
New Treatment Plant
-$ -$
Note: * The District did not have any CIP projects utilizing Capacity Fee funds for the year ended June 30, 2022.
EAST VALLEY WATER DISTRICT
Capacity Charge Funds
Year Ended June 30, 2022
107
A summary of changes in Wastewater Fund Capacity Fees collected for the year ended June 30, 2022 is as follows:
Beginning of End of
Categories Year Contributions Usage Year
Collection $ 1,516,891 $ 305,126 $ - $ 1,822,017
General 236,975 44,413 - 281,388
Greenspot Main 56,115 343,329 - 399,444
5th Street Main 22,303 136,457 - 158,760
Lynwood Main 5,604 34,287 - 39,891
Treatment 1,860,609 876,033 - 2,736,642
3,698,497$ 1,739,645$ -$ 5,438,142$
A summary Project Funded by Capacity Fees for the year ended June 30, 2022:
Categories CIP Project
FY 2021-22
Expended
% Funded by
Capacity
Total Capacity
Fees Usage
Collection -$ 0%-$
Transmission -
Recharge -
Operations -
Treatment -
-$ -$
Agenda Item
#2
December 5, 20221
Meeting Date: December 5, 2022
Agenda Item #2
Discussion Item
5
9
4
Regular Meeting
TO: Committee Members
FROM: Director of Administrative Services
SUBJECT: Review Resolution 2023.01 Establishing Procedures and Policies for the
Presentation of Claims Against the District, which will supersede Resolution 2013.08,
and Policy 8.3 – Claims Against the District.
RECOMMENDATION
That the Finance and Human Resources Committee recommend to the Board of
Directors to adopt Resolution 2023.01 to supersede Resolution 2013.08 and adopt
Policy 8.3 – Claims Against the District.
BACKGROUND / ANALYSIS
On April 10, 2013, the District’s Board of Directors (Board) adopted Resolution
2013.08, Establishing Procedures and Policies for the Presentation of Claims Against the
District, which delegated the authority to the General Manager/CEO to approve, deny,
reject, and/or compromise any claim seeking less than $10,000 in damages, with a
requirement that the General Manager/CEO provide the Board with a quarterly report
on the status of all such claims.
It is recommended that the amount under the delegation of authority to the General
Manager/CEO in the resolution be changed from less than $10,000 in damages to
$10,000 or less. This would give the General Manager/CEO the authority to approve,
deny, reject, and/or compromise any claim up to $10,000 in damages, and any claim
over $10,000 in damages would be presented to the Board for consideration.
The District typically receives 5-7 claims per year and most of them are less than
$1,000. The proposed resolution and policy would change the reporting requirement to
the Board from once every three months to once every six months.
In addition to updating the resolution for claims, staff is recommending adoption of a
new policy, Policy 8.3 – Claims Against the District, which establishes procedures for the
filing of claims against the District for money or damages in accordance with the
requirements of the California Tort Claims Act and District Resolution 2023.01.
Policy 8.3 provides examples of claims which may be filed against the District, outlines
the claim submittal process for claimants including the requirement for completion of
the District’s Claims for Damages to Person or Property form, lists the steps the District
will take in consideration and investigation of each claim received, includes the noticing
requirement of District action on a claim, and also includes the delegation of authority
Agenda Item
#2
December 5, 20222
Meeting Date: December 5, 2022
Agenda Item #2
Discussion Item
5
9
4
to the General Manager/CEO as approved in Resolution 2023.01.
AGENCY GOALS AND OBJECTIVES
II - Maintain a Commitment To Sustainability, Transparency, and Accountability
B. Utilize Effective Communication Methods
REVIEW BY OTHERS
This agenda item has been reviewed by the Administrative Department.
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
Respectfully submitted:
________________
Kerrie Bryan
Director of Administrative Services
ATTACHMENTS
Resolution 2023.01
Policy 8.3
RESOLUTION NO. 2023.01
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE EAST VALLEY WATER DISTRICT
ESTABLISHING PROCEDURES AND POLICIES FOR THE
PRESENTATION OF CLAIMS AGAINST THE DISTRICT
WHEREAS, East Valley Water District (“the District”) is a public agency organized and
operating pursuant to the County Water District Law, California Water Code Section 30000 et seq.;
WHEREAS, pursuant to Water Code Section 31084, all claims for money or damages against
the District are governed by the California Tort Claims Act, Government Code Section 900 et seq.
(“the Act”);
WHEREAS, Government Code Section 905 lists fifteen categories of claims that are exempt
from the general requirement under the Act that a party with a cause of action for money or damages
against the District must first present a written claim directly with the District, which must then be
denied or rejected before the claimant may file a lawsuit;
WHEREAS, Government Code Section 935 nevertheless specifically empowers the District
to establish its own policies and procedures for the presentation of those claims against it which are
excepted by Government Code Section 905, so long as the procedures established are similar to, and
not more restrictive than, those set forth in the Act with respect to claims not excepted by
Government Code Section 905;
WHEREAS, Government Code Section 910.4 requires claimants to use a form provided by
the District specifying the information to be contained in a claim; and
WHEREAS, Government Code Section 910.4 further provides that the District may return
any claim which is not presented using the form adopted by the District’s Board of Directors.
NOW, THEREFORE, BE IT RESOLVED by the District’s Board of Directors that a
standard form for claims against the District be hereby adopted and that, pursuant to the
authorization granted by Government Code Section 935, the following procedures be adopted with
respect to claims excepted by Government Code Section 905:
Section 1. Presentment of Claims - Prerequisite for Bringing Suit. There shall be
presented in accordance with this Resolution, and as a prerequisite to filing suit against the
District, all claims for money or damages not governed and controlled by Part 3
(commencing with Section 900) Division 3.6 of Title 1 of the California Government Code,
and which are more specifically listed as exceptions in Section 905 of Chapter 1, Part 3,
provided that the claims covered by this section are not governed by any other statutes o r
regulations expressly relating thereto.
Section 2. Claims Presented.
(a) Those claims required by this Resolution shall be presented to the District on a
standard form, which shall be provided by the District to claimants on request, and in
accordance with and in the manner provided in Part 3 (commencing with Section
900) of Division 3.6 of Title 1 of the California Government Code as contained in
Article 1 of Chapter 2 entitled “Presentation and Consideration of Claims,” and
Article 2 of Chapter 2 entitled “Manner of Presentation and of Giving Notice.”
(b) Any claims received by the District which are not presented on the prescribed form
shall be returned to the claimant along with a copy of the standard form and an
explanation that the claim must be submitted on the approved form in order to be
accepted for consideration.
Section 3. Suits Prohibited Until Written Claim Acted Upon. No suit for money or
damages may be brought against the District on a cause of action for which a claim is
required to be presented in accordance with this Resolution until the claim has been acted
upon by the District’s Board of Directors (or the District’s General Manager for claims
seeking $10,000.00 or less in damages) or has been deemed rejected pursuant to the
applicable provisions of the Act.
Section 4. Six Months Statute of Limitations - Exception.
(a) Except as provided in subdivision (b), any suit brought against the District for which
a claim is required to be presented in accordance with this Resolution must be
commenced within six (6) months after the date the claim is acted upon by the
District’s Board of Directors (or the District’s General Manager for claims seeking
$10,000.00 or less in damages) or deemed rejected by operation of law.
(b) If a claimant is unable to commence a suit on a cause of action described in
subdivision (a) within the time prescribed in that subdivision because he or she has
been sentenced to imprisonment in a state prison, such suit must be commenced
within six (6) months after the date that the civil right to commence such action is
restored to such person. A claimant sentenced to imprisonment in a state prison may
not commence such suit unless he or she presented a claim in accordance with this
Resolution within the time prescribed therein.
Section 5. Suit Prohibited Where Full Payment or Compromise Effected. Where a
claim that is required to be presented to the District in accordance with this Resolution is so
presented and action thereon is taken by the District’s Board of Directors (or the District’s
General Manager for claims seeking $10,000.00 or less in damages):
(a) If the claim is allowed in full and the claimant accepts the amount allowed, no suit
may be maintained on any part of the cause of action to which the claim relates.
(b) If the claim is allowed in part and the claimant accepts the amount allowed, no suit
may be maintained on any portion of the cause of action where, pursuant to a
requirement of the District’s Board of Directors or General Manager to such effect,
the claimant has accepted the amount allowed in settlement of the entire claim.
Section 6. Authorization to Delegate the Power to Compromise and Consider Any
Pending Action. The District’s Board of Directors may compromise any claim or pending
action against the District or may delegate such authority to its attorney or to the District’s
General Manager. Pursuant to this Resolution, the District’s Board of Directors hereby
delegates to its General Manager the authority to approve, deny, reject, and/or compromise
any claim seeking $10,000.00 or less in damages, subject to the requirement that the
District’s General Manager provide the District’s Board of Directors with a biannual report
on the status of all such claims. All other claims must be presented to the District’s Board of
Directors for consideration.
BE IT FURTHER RESOLVED by the District’s Board of Directors that the District’s
General Manager is hereby authorized to create and amend in a manner consistent with the Act a
standard form entitled “East Valley Water District Claims for Damages to Person or Property” for
distribution to potential claimants upon their request for their use in presenting to the District’s
Board of Directors possible claims against the District.
BE IT FURTHER RESOLVED by the District’s Board of Directors that this Resolution shall
supersede Resolution No. 2013.08 adopted by the District’s Board of Directors on April 10, 1993,
and shall take effect immediately upon its adoption.
ADOPTED this ____ day of ___________, 2023.
AYES:
NOES:
ABSTAIN:
ABSENT:
______________________________
President
ATTEST:_________________________
Secretary
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Claims Against the District Policy
Original Approval Date:
January 11, 2023
Last Revised:
Policy No:
8.3
Page
1 of 3
Purpose
The purpose of this policy is to establish procedures for the filing of claims against the
District for money or damages in accordance with the requirements of the California Tort
Claims Act, Government Code Section 900 et seq. (hereinafter referred to the “Act”).
Policy
In general, the Act, Resolution 2023.01, A Resolution of the Board of Directors of the East
Valley Water District Establishing Procedures and Policies for the Presentation of Claims
Against the District, which supersedes Resolution 2013.08, and this policy require that a
legal action for money or damages against the District may not be maintained in a court of
law unless a written claim has first been timely presented to the District and rejected in
whole or in part. Compliance with the procedures specified i n the Act and this policy is
mandatory for the claimant to maintain a judicial action against the District for monetary
damages. This will afford the District an opportunity to settle justifiable claims before
legal action is brought and will also permit the District to make an early investigation of
facts, on which the claim is based, thereby enabling the District to defend itself against
unjust claims and to correct the conditions or practices which gave rise to the claim.
Types of Claims Subject to Claims Presentation Requirements
The Act requires that all claims against the District for money or damages comply with the
claims presentation requirements specified in the Act and summarized in this policy. A
claim for money or damages against the District m ay include a claim of property damage
to real property, property damage to personal property, personal injury damages which
include any form of injury to a person including physical injury or injury to reputation or
character, or a claim of contractual damages. Examples of claims which may be filed
against the District requesting money or damages from the District are as follows:
1. Tort Claims
A. Claims of negligence by the District or its employees resulting in personal
injury or property damage;
B. Claims of nuisance resulting in personal injury or property damages;
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Claims Against the District Policy
Original Approval Date:
January 11, 2023
Last Revised:
Policy No:
8.3
Page
2 of 3
C. Breach of statutory duties;
D. A claim alleging intentional wrongful conduct by District employees in the
course of their employment causing personal injury or property damage
including, but not limited to, fraud, assault and battery, or discrimination.
2. Contract Claims
These claims allege the breach of an oral or written contract by the District resulting
in monetary damages to the other party to the contract.
Claim Submittal
Claimants will complete the District’s Claims for Damages to Person or Property form
(attached) and file it with the District’s Board Secretary. Claims may be delivered in person
or mailed to the District’s offices. A mailed claim will be deemed filed effe ctive on the
date posted by the postal service.
The Claims for Damages to Person or Property form must be fully completed and signed by
the claimant or submitting party on the claimant’s behalf. All supporting documentation
available at the time of filing should be submitted with the form.
Consideration of Claim by District
Upon receipt of a claim, District staff will take one or more of the following actions with
respect to the consideration of the claim:
1. Notice of Insufficiency of Claim
Within twenty (20) days after a claim has been presented, the District shall give the
claimant written notice of any substantial defects or omissions in the content of the
claim that prevent the claim from complying with the requirements of this policy
specified above.
2. Investigation of Claim
Staff will conduct an investigation regarding the facts and circumstances
surrounding the claim both as to potential District liability for the losses specified
EAST VALLEY WATER DISTRICT
Administrative Policies & Programs
Policy Title: Claims Against the District Policy
Original Approval Date:
January 11, 2023
Last Revised:
Policy No:
8.3
Page
3 of 3
in the claim as well as the nature, extent and amount of losses claimed. If the claim
requests action by the District other than compensation, the investigation shall
include an evaluation of the claimant’s requested action on District operations. This
investigation then may be conducted under the auspices of or with the cooperation
of the District’s insurance coverage provider and District Legal Counsel.
District Action on Claim
The Board of Directors, or General Manager/CEO, as authorized, within a period of forty -
five (45) days after the claim has been presented to the District, may take any of th e
following actions: (1) reject the claim entirely; (2) allow the claim in full; (3) allow the
claim in part and reject the balance of the claim; (4) compromise the claim or settle the
claim if the liability or amount due is disputed.
Notice of Action on Claim
Upon final District action on any claim, written notice of the District’s action shall be
mailed to the claimant at the address specified in the Claims for Damages to Person or
Property form. Notice of action is important because it limits the statute of limitations
applicable to any judicial action which the claimant may desire to file in the event of a
rejected claim to six (6) months after the date of the written notice of rejection of claim
from the District.
Notice and Return of Untimely Claim
Tort Claims must be presented within six (6) months after accrual of the cause of action.
All other claims are subject to a one-year statute of limitations. If a claim is not presented
within the time allowed, the District may return the claim with a written notice of
untimeliness.
Delegation of Authority
In accordance with Resolution 2023.01, the District’s Board of Directors delegates to the
General Manager/CEO, the authority to approve, deny, reject, and/or compromise any
claim seeking $10,000.00 or less in damages. All other claims must be presented to the
District’s Board of Directors for consideration. The General Manager/CEO will provide the
District’s Board of Directors with a biannual status update on all claims received.
909-885-4900
INSTRUCTIONS:
CLAIMS FOR DAMAGES
TO PERSON OR PROPERTY
1. Subject to certain statutory exceptions, an action for money or damages may not be maintained against the
District unless written claim has been timely presented to the District and rejected in whole or in part.
2. A claim shall be presented by the claimant or by a person acting on the claimant's behalf.
3. Answer all questions. Omitting information could make your claim legally insufficient.
4. Name and address of the person to whom you desire notices or communications to be sent regarding this claim.
5. This claim form must be signed on page 2 at bottom.
6. Attach separate sheets, if necessary, to give full details.
SIGN EACH SHEET
7. Claim must be filed with Board Secretary.
TO: EAST VALLEY WATER DISTRICT
________________________________________________________
Name of Claimant
Home Address of Claimant City and State Home Telephone Number
Business Address of Claimant City and State Business Telephone Number
Give address to which you desire notices or communications to be sent regarding this claim:
How did DAMAGE or INJURY occur? Give full particulars.
When did DAMAGE or INJURY occur? Give full particulars, date, time of day:
Where did DAMAGE or INJURY occur? Describe fully, and locate on diagram on reverse side of this sheet, where
appropriate, give street names and address and measurements from landmarks:
What particular ACT or OMISSION do you claim caused the injury or damage? Give names of District employees causing the
injury or damage, if known:
What DAMAGE or INJURIES do you claim resulted? Give full extent of injuries or damages claimed:
What AMOUNT do you claim on account of each item of injury or damage as of date of presentation of this claim, giving basis
of computation:
Give ESTIMATED AMOUNT as far as known you claim on account of each item of prospective injury or damage, giving basis
of Insurance payments received, if any, and names of Insurance Company:
SEE PAGE 2 (OVER) THIS CLAIM MUST BE SIGNED ON REVERSE SIDE
EAST VALLEY WATER DISTRICT
LEADERSHIP • PARTNERSHIP • STEWARDSHIP
31111 Greenspot Rd., Highland, CA 92346
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Date
Agenda Item
#3
December 5, 20221
Meeting Date: December 5, 2022
Agenda Item #3
Discussion Item
6
0
1
Regular Meeting
TO: Committee Members
FROM: Chief Financial Officer
SUBJECT: Review the Draft Popular Annual Financial Report (PAFR) for Year Ended
June 30, 2022
RECOMMENDATION
This agenda item is for informational purposes only, no action required.
BACKGROUND / ANALYSIS
The PAFR is designed to be a summarized, user-friendly version of the District’s Annual
Comprehensive Financial Report (Annual Report), which was audited in December and
will be presented to the Board of Directors (Board) in December. Most financial
information in the PAFR is presented in graphic form, and technical note disclosures are
omitted.
In addition, as with the Budget and Annual Report, the Government Finance Officers
Association (GFOA) produces guidelines for producing an effective PAFR, and if an
agency’s PAFR substantially meets or exceeds those guidelines, the GFOA presents the
agency with an Award for Outstanding Achievement in Popular Annual Financial
Reporting. The District applied for the award for its June 2021 PAFR, and eagerly await
GFOA’s response. District staff will submit the current year PAFR for award
consideration in December.
The PAFR document will be presented to the Board on December 14, 2022.
AGENCY GOALS AND OBJECTIVES
II - Maintain a Commitment To Sustainability, Transparency, and Accountability
A. Practice Transparent and Accountable Fiscal Management
REVIEW BY OTHERS
This agenda item has been reviewed by the Finance and Public Affairs Departments.
Agenda Item
#3
December 5, 20222
Meeting Date: December 5, 2022
Agenda Item #3
Discussion Item
6
0
1
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
Respectfully submitted:
________________
Brian Tompkins
Chief Financial Officer
ATTACHMENTS
Draft PAFR 2022
Highland, California
Fiscal Year Ended June 30, 2022Popular Annual Financial Report
TABLE OF CONTENTS
POPULAR ANNUAL FINANCIAL REPORT | PAGE 2
Transmittal Letter .........................................................3
Core Values ................................................................................3
About the District ......................................................................4
Organizational Structure ........................................................4
District Vision .............................................................................5
District-at-a-Glance ..................................................................5
District Wide Goals & Objectives ........................................6
Capital Improvement Projects .............................................6
Sterling Natural Resource Center ......................................8
Community Involvement .....................................................10
Financial Performance .............................................11
Revenue and Expenses ........................................................11
Revenue by Sources .............................................................12
Breakdown of Expenses .....................................................13
Outstanding Long-Term Debt ............................................14
Comparative Net Position ...................................................15
The Government Finance Officers Association of the United States and
Canada (GFOA) has given an Award for Outstanding Achievement in
Popular Annual Financial Reporting to East Valley Water District, California
for its Popular Annual Financial Report (PAFR) for the fiscal year ended
June 30, 2021.
In order to receive this award, a government unit must publish a Popular
Annual Financial Report, whose contents conform to program standards of
creativity, presentation, understandability, and reader appeal.
We believe our current PAFR continues to conform to program
requirements, and we are submitting it to GFOA to determine its eligibility
for another Award. We also welcome and encourage feedback from District
ratepayers to help make this publication more useful and/or informative.
PRESENTED TO East Valley Water District
California
For the Fiscal Year Beginning
July 01, 2021
Executive Director
GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
Popular Annual Financial Reporting Award
BOARD OF DIRECTORS
Phillip R. Goodrich
Chairman of the Board
James Morales, Jr.
Vice Chairman of the Board
Chris Carrillo
Governing Board Member
Ronald L. Coats
Governing Board Member
David E. Smith
Governing Board Member
DISTRICT MANAGEMENT
Kerrie Bryan
Director of
Administrative Services
Justine Hendricksen
District Clerk
Kelly Malloy
Director of Strategic Services
Patrick Milroy
Operations Manager
Jeff Noelte, PhD, P.E.
Director of Engineering &
Operations
Brian Tompkins
Chief Financial Officer
Rocky Welborn
Water Reclamation Manager
Michael Moore, P.E.
General Manager/CEO
EAST VALLEY WATER DISTRICT | PAGE 3
To Our Ratepayers & Community
We are pleased to present East Valley Water District’s (District) Popular Annual Financial Report (PAFR) for the fiscal
year ending June 30, 2022 (FY 2021-22). This report summarizes financial information appearing in the 2022
Annual Report and was created to provide valuable information related to District finances and the Five-Year Capital
Improvement Program, that support the quality and reliability of our community’s distribution system.
The PAFR is unaudited; however, the financial data presented in the PAFR is developed based on the audited
Annual Report, which is consistent with Generally Accepted Accounting Principles. This document can also be
reviewed on the District’s website at eastvalley.org/PAFR2022.
For more detailed information, the District’s 2022 Annual Report is available for interested individuals at the District
Headquarters, 31111 Greenspot Road, Highland, California 92346. It can also be viewed on the District’s website,
along with other key financial documents, at eastvalley.org/2022AnnualReport.
Questions, comments, and feedback regarding this report are encouraged. Please do not hesitate to contact Brian
Tompkins, Chief Financial Officer, at finance@eastvalley.org or (909) 381-6463.
On behalf of the District, thank you for the opportunity to serve you.
Respectfully submitted,
Michael Moore, P.E.
General Manager/CEO
CORE VALUES
Leadership
Motivating a group of people to
act toward achieving a common
goal or destination.
Partnership
Developing relationships
between a wide range of
groups and individuals through
collaboration and shared
responsibility.
Stewardship
Embracing the responsibility
of enhancing and protecting
resources considered worth
caring for and preserving.
TRANSMITTAL LETTER
ABOUT THE DISTRICT
The District was formed through a local election of mostly citrus grove operators, to have water service provided by
a public agency. East Valley Water District is located in the foothills of the San Bernardino Mountains, 65 miles east
of Los Angeles in the County of San Bernardino.
210
210
santa
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plun
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plunge creek
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warm cr
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cook creek
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Highland
Seven
Oaks Dam
San Bernardino
District Boundary Map
ORGANIZATIONAL STRUCTURE
Presented to the right is an overview of
East Valley Water District’s organizational
structure*. The District employed 76
full-time positions during FY 2021-22.
*The organizational chart reflects the District
during the timeframe reflected in this document.
POPULAR ANNUAL FINANCIAL REPORT | PAGE 4
FTE: 3
EO: 5
FTE:3
FTE:5FTE: 4
FTE: 1 FTE: 3 FTE: 15
FTE: 7 FTE: 4
FTE: 2 FTE: 2
FTE: 2 FTE: 1
FTE: 2
FTE: 1
GOVERNING
BOARD
RATEPAYERS
GENERAL
MANAGER/CEO
DIRECTOR OF
ENGINEERING & OPERATIONS
LEGAL
COUNSEL
GENERAL
ADMINISTRATION
HUMAN
RESOURCES
DIRECTOR OF
STRATEGIC SERVICES
DIRECTOR OF
ADMINISTRATIVE
SERVICES
FTE:7
Program
FTE: Full Time Employees
EO: Elected Ocials
Person/Position
LEGEND
CHIEF FINANCIAL
OFFICER
INFORMATION
TECHNOLOGY
FINANCE
CUSTOMER
SERVICE
ENGINEERING
FTE: 9
WATER RECLAMATION
OPERATIONSPUBLIC AFFAIRS
CONSERVATION METER
SERVICES
WATER
PRODUCTION
WATER
TREATMENT
WATER QUALITY
WATER
MAINTENANCE
WASTEWATER
MAINTENANCE
FACILITIES
MAINTENANCE
FLEET
MAINTENANCE
EAST VALLEY WATER DISTRICT | PAGE 5
DISTRICT VISION
Enhance and Preserve the Quality of Lifefor our community through innovative leadershipworld class public service.&
DISTRICT AT-A-GLANCE
East Valley Water District provides water and wastewater services to residents within a 30.1 square mile area. This
includes more than 104,000 people in the cities of Highland and San Bernardino, portions of the unincorporated
County of San Bernardino, the San Manuel Band of Mission Indians, and Patton State Hospital.
30.1
SQ. MILE
SERVICE AREA
104,000
POPULATION SERVED ACTIVE GROUNDWATER WELLS
MONITORED BY THE DISTRICT
15
3,465
SAMPLES
COLLECTED
350
HYDRANTS
FLUSHED
1,950
HYDRANTS REPAIRED,
REPLACED OR PAINTED
7,400
FEET OF WATER MAIN
REPLACED
301 MILES OF WATER MAINS
291
WATER LEAKS
REPAIRED
227
MILES OF
SEWER MAINS
211
MILES OF
SEWER CLEANED
5,115
SEWERMANHOLES
6,000,000
AVERAGE GALLONS OF
WASTEWATER CONVEYED
DAILY
28,977,000
GALLONS OF WATER STORAGE
16,500,000
AVERAGE GALLONS OF
WATER PRODUCED DAILY 71
MILES OF
SEWER VIDEO
MONITORING20,000+
ADVANCED
METERS INSTALLED
DISTRICT WIDE GOALS & OBJECTIVES
POPULAR ANNUAL FINANCIAL REPORT | PAGE 6
As part of the annual budget process, District wide goals are established by the Governing Board to identify priority
programs and projects.
Implement Effective
Solutions Through
Visionary Leadership
Maintain a Commitment to
Sustainability, Transparency,
and Accountability
Deliver Public Service with
Purpose While Embracing
Continuous Growth
Promote Planning,
Maintenance and Preservation
of District Resources
CAPITAL IMPROVEMENT PROJECTS
The District achieved a number of accomplishments during Fiscal Year 2021-22. As a results-oriented organization,
each program has clearly defined goals and objectives. During this period, there were three priority projects that
contributed to supporting not only the District-wide goals, but also the District Vision. These projects are included in
the Five-Year Capital Improvement Program.
Each year as part of the budget process, the District’s program managers and supervisors compile and submit a
list of capital outlay requests for consideration. Staff reviews and prioritizes the list of equipment based on a needs
assessment and the amount of funding available. Proposed Capital Improvement Projects for the budgeted fiscal year
were submitted by the Engineering, Operations and Maintenance Programs in accordance with the anticipated needs
of the District as outlined in the 2019 Sewer System Master Plan and 2019 Water System Master Plan.
Plant 134 Process Improvements – Granular
Activated Carbon Design
The District contracted for design documents and specifications
related to GAC technology at the District's Water Treatment Plant to
remove organics and mitigate the possibility of high Trihalomethane
(THM) levels.
Date Completed: July 2021 Project Cost: $278,400
Project Benefits: Design of GAC technology is the step prior to
installation, which will allow the District to continue meeting local, State,
and Federal water quality requirements and maintain the quality and
safety of water provided to the community.
EAST VALLEY WATER DISTRICT | PAGE 7
Engineering Seismic Study for Reservoirs
The study will include main line assessments, project designs, and
a prevention plan to enhance water system reliability in the event
of an earthquake.
Date Completed: March 2022 Project Cost: $170,870
(CalOES Grant Funding of $90,005)
Project Benefits: East Valley Water District was awarded a
$1.1 million Hazard Mitigation Grant Program (HMGP) grant from the
Federal Emergency Management Agency (FEMA) to fund a District
Water Main Seismic Retrofit Study (Study).
Upon completion of the Study, the District will become eligible to
receive additional funding available through FEMA. During the
secondary phases, East Valley Water District could receive funding
needed to retrofit pipelines identified during the Study.
Plants 56 and 59 Storage Tank Mixers
Installed tank mixers in the reservoirs at Plants 56 and 59 to keep the
water circulating and reduce potential for THM.
Date Completed: May 2022 Project Cost: $34,894
Project Benefits: Maintain the quality and safety of water provided to
the community.
POPULAR ANNUAL FINANCIAL REPORT | PAGE 8
California is not a stranger to drought cycles. The Sterling Natural Resource Center has been built to
serve the community for over 100 years and provide a sustainable new water supply for the region.
Over 600,000 regional residents rely
on groundwater as a source of water.
The SNRC will replenish the local groundwater basin
with up to 8 million gallons of recycled water per day.
Recycled water is treated, clean,
clear, and odorless.
Water meets strict local, state, and federal
guidelines for water quality standards.
A Sustainable Future for Generations to Come
The Sterling Natural Resource Center (SNRC) is a 20-acre state-of-the-art facility located in Highland, California.
Capable of creating 8 million gallons per day of replenished water, the SNRC will create a sustainable water supply
for the region and enhance the quality of life for residents by providing new and training, community space, and
neighborhood improvements. opportunities in the form of education
STERLING NATURAL RESOURCE CENTER
EAST VALLEY WATER DISTRICT | PAGE 9
The Sterling Natural Resource
Center's Administration Center is a
community resource where residents
can speak with a Customer Service
Representative, attend free workshops,
host special events, and get inspired
on ways to be more water efficient by
visiting the demonstration garden.
Payment Kiosk Facility Rental
No fee for using
this service.
Contact us to host your
next special event.
Customer Service
Get assistance in
English and Spanish.
Community Resource
Attend special conservation
workshops and trainings.
Administration Center
Services now available at the SNRC
The SNRC’s treatment facility will utilize state-of-the art technology to
produce recycled water and renewable energy. As part of our commitment to
being a good neighbor, the facility includes advanced odor control systems
to help prevent noticeable smells coming from the SNRC.
Did You Know?
SERVING THE COMMUNITY
POPULAR ANNUAL FINANCIAL REPORT | PAGE 10
Cold weather and limited access to warm clothing often
prevents Jefferson Hunt Elementary students from attending
school. To help bridge the gap between education and
essential comfort, East Valley Water District staff held a drive
and collected 105 sweatshirts.
Sweatshirts provided students with warmth and motivation to
attend classes during the winter months.
During the Thanksgiving season, East Valley Water District
partnered with the San Bernardino City Mission, a local
non-profit that assists residents in need, to conduct a food
drive. Through the combined efforts and generosity of staff
and public, over 300 items were donated.
Each food donation was included in a meal box and cash
donations served to purchase additional items.
East Valley Water District is committed to public service beyond providing water and wastewater services. In addition to
year-round drives that benefit Jefferson Hunt Elementary, the District also works with organization within its service
area to identify where there is a need. Through this effort, the District has helped provide meals to those in need.
Giving Warmth
Canned Food Drive
Revenues & Expenses
Providing safe drinking water to over 104,000 residents every day is the District’s top priority and also one of its most
significant expenses. The graphs below represent the District’s combined revenue and expenses for FY 2021-22.
For comparison purposes, FY 2019-20 and FY 2020-21 revenue and expenses have also been included.
Please refer to the District’s 2022 Annual Report for a comprehensive breakdown of expenses.
FINANCIAL PERFORMANCE
Revenue Expenses
HOW IS REVENUE MANAGED?
East Valley Water District utilizes revenue to fund daily operations, scheduled capital improvements and replacements,
and principal and interest for debt financed construction projects. Remaining revenue is invested back into capital
improvement projects to help maintain and improve the system's reliability so that East Valley Water District may
continue taking steps to support the District's Vision of providing world-class public service.
Revenue also provides funding for conservation programming, which empowers customers to be efficient water
users and encourages water savings indoors and out. Excess net revenue after expenses and payments is added to
reserves for capital replacements and unforeseen emergency expenses.
EAST VALLEY WATER DISTRICT | PAGE 11
-GrantsNon-OperatingOperating
Expenses
Developer Fees Non-Operating
$37.83Million
FY 2019-20FY 2019-20
$50.42Million
FY 2020-21
$43.33Million
Operating
$39.12Million
FY 2020-21
$47.15Million
FY 2021-22
$42.18Million
FY 2021-22
-GrantsNon-OperatingOperating
Expenses
Developer Fees Non-Operating
$37.83Million
FY 2019-20FY 2019-20
$50.42Million
FY 2020-21
$43.33Million
Operating
$39.12Million
FY 2020-21
$47.15Million
FY 2021-22
$42.18Million
FY 2021-22
REVENUE BY SOURCES
POPULAR ANNUAL FINANCIAL REPORT | PAGE 12
The District uses relies on user rates/fees to fund day-to-day operations.
East Valley Water District receives 99 percent of its revenue from user rates and fees; the District receives no funding
from property or sales taxes. Rates and fees are reviewed on 3 to 5 year cycles and are adjusted as necessary to meet
the costs of providing services to customers.
Meter charges are fixed monthly charges
assessed to customers based on the size
of the service connection to their property.
Wastewater collection revenue
consists of 1) fixed monthly charges
for residential customers and 2) a
combination of fixed and volumetric
charges for commercial customers.
Wastewater treatment revenue consists
of 1) fixed monthly charges for residential
customers and 2) a combination of fixed
and volumetric charges for commercial
customers. These revenues are used to
pay the City of San Bernardino Municipal
Water Department, which is currently
contracted to treat all wastewater
generated by District Customers.
Other charges are assessed
according to an adopted fee
schedule, but are only charged to
users who request, or require, use
of District resources beyond the
scope of delivering normal water
and wastewater services.
Water sales are based on
the volume of water used
by a customer during the
monthly billing period.
Revenue History & Forecast (in millions)
43%Water Sales
2% Other
Charges
21%Meter Charges
11%WastewaterCollection
23%WastewaterTreatment
FY 2021-22
Rate Revenue
26.6
13.2 13.3 14.7
9.8 10.410
5
0
15
20
25
30
FY 21-22
Actual
FY 22-23
Projected
FY 23-24
Projected
Water Operating Revenue Wastewater Operating Revenue Water Reclamation Operating Revenue
28.9 28.4 27.4 28.1
FY 19-20
Actual
FY 20-21
Actual
0
5.6 6.0
EAST VALLEY WATER DISTRICT | PAGE 13
BREAKDOWN OF EXPENSES
Expenses are the cost of providing water to meet customer demand and collecting and treating wastewater
from customer residences or places of business. East Valley Water District strives to provide safe and
reliable water delivery services. Despite the severity of the current drought, the District has put forth significant effort to
overcome the challenges of maintaining a fiscally sustainable and operationally dependable organization.
Expenses
Source of Supply
Pumping
Water Treatment
Transmission
Customer Accounts
Wastewater Treatment
Depreciation
Interest Expense
Wastewater Collection
Administrative and General
and Distribution
9 3 1 144
2 9 22 33 3
This graphic identifies
how every dollar spent
is allocated to cover
expenses (in cents).
• Source of Supply - Expenses related to the
extraction of groundwater, and for procuring water
from the Santa Ana River or State Water Project
when supply is available.
• Pumping - Expenses related to moving water
throughout the District’s water distribution system.
• Water Treatment - Expenses related to the
treatment of water.
• Transmission and Distribution - Expenses for
transmitting water to treatment plants and storage
reservoirs for distribution to commercial and
residential customers.
• Customer Accounts - Expenses related to
the service of customer accounts including,
postage, telephone, printing and publishing, and
billing services.
• Wastewater Treatment - Expenses related to the
contracted service currently provided by the City of
San Bernardino Municipal Water Department.
• Wastewater Collection - Expenses for the
operation and maintenance of the District’s system
of wastewater collection pipelines.
• Administrative and General - Expenses related
to the administration of District operations. For
example, employee compensation, benefits,
conservation rebates, office supplies, banking
services, materials and supplies, utilities, fuel,
permits, insurance claims, legal services, and printing
and publishing.
• Depreciation - Expenses related to the use of
capital assets over time.
• Other Expenses - Expenses not related to the
District’s current cost of utility service delivery.
Explanation of Expenses
OUTSTANDING LONG-TERM DEBT
POPULAR ANNUAL FINANCIAL REPORT | PAGE 14
Much like how a mortgage is financed to spread costs over 30 years, East Valley Water District has incurred debt to fund
large capital projects. The District has adopted a Debt Management Policy to clearly state that long-term borrowing is only
to be used for Capital Improvement Projects that cannot be funded from current revenues.
Similar to an individual’s credit score, public agencies have a bond rating used by investors to determine risk. The District
has a bond rating of AA- by both the Fitch and the Standard and Poor’s rating services. This is considered a high quality
investment grade.
US Bank Loan - Issued for the
purchase and installation of
energy conservation equipment
at several of the District’s water
production facilities.
Sterling Natural Resource
Center Loan - Funded the
design and construction of
the District’s water recycling
facility that will capture and treat
District wastewater flows. Recycled
water will be recharged to the
Bunker Hill Groundwater basin.
2020A Bonds - Issued to refund
outstanding 2010 revenue bonds and
save $380,000 annually in interest.
The 2010 bonds were issued to finance
pipeline and other infrastructure projects.
2020B Bonds - Issued to refund
outstanding 2013 revenue
bonds, which were issued
to finance the construction
of a new administration and
operations headquarters.
State Department of Water Resources Loans -
Funded the improvement and expansion of the
District’s surface water treatment plant.
SBVMWD Loans - Agreement
with the San Bernardino Valley
Municipal Water District for
the construction, financing,
and maintenance of a City
Creek Turnout and Plant 134
Hydroelectric Station. The station
provides the District with direct
access to State Project Water,
to be used for the surface water
treatment plant.
consists of bonds, loans and installment purchases.
The District's long-term debt
$900,000US Bank Loan
$139.7 millionSterling Natural Resource Center
Explanation of Debt
(in millions)
$16 million2020ABonds
$5.7 millionState Dept. of Water Resources
$1.7 millionSBVMWD Loan
$13.3 million2020BBonds
EAST VALLEY WATER DISTRICT | PAGE 15
TWO-YEAR COMPARATIVE NET POSITION (IN MILLIONS)
As an infrastructure-based organization, the District directs significant resources in capital investments to maintain and
improve its water and wastewater system. Comparative net position offers perspective of the District’s assets, liabilities,
and equity. The information presented below applies to fiscal years ended June 30, 2022 and 2021.
Current Liabilities - Present financial obligations including,
payments to vendors, payroll, and employee benefits.
Non-Current Liabilities - Long-term financial obligations
including payments for loans, bonds, and employee
retirement benefits.
Deferred Inflow of Resources - Receipt of net assets
attributed to future reporting periods, such as deferred
revenue and advance collections.
Equity (Net Position) - Represents the excess of assets
over liabilities.
Current Assets - Cash and cash equivalents, customer utility
receivables, inventory, prepaid expenses, and other liquid
assets that can be readily converted to cash.
Restricted Assets - Cash equivalents, grants and bonds
restricted for a specific purpose and therefore not readily
available to use.
Other Assets - Special assessments receivable from certain
property owners for system improvements that benefit only
their properties.
Capital Assets - Any land, building, equipment, vehicles,
inventory, treatment plants, pipeline, and water distribution
systems owned by the District.
Deferred Outflow of Resources - Use of net assets attributed
to future reporting periods, such as prepaid items and
deferred charges.
Explanation of Assets Explanation of Liabilities and Equity
(Net Position)
$40.1
$36.4
$8.5
$0.3
$0.3
$290.1
$309.2
$4.6
Current Assets
Restricted Assets
Other Assets
Capital Assets
Deferred Outflows
Current Liabilities
Non-Current Liabilities
Net Position
Deferred Inflows
$20
$21
$181.9
$186.9
$140.1
$145.1
$1.6
$7.6
$11
$3.7
2022 Total Assets: $360.6 Million
2021 Total Assets: $343.6 Million
2021 Liabilities & Equity: $343.6 Million
2022 Liabilities & Equity: $360.6 Million
31111 Greenspot Road
Highland, California 92346
DISTRICT HEADQUARTERS
Office Hours
Monday – Thursday 8:00am – 5:00pm
2nd and 4th Tuesday 9:00am – 5:00pm
Friday 7:30am – 4:30pm
Customer Service & After-Hours
Emergency Service
(909) 889-9501
District Headquarters
31111 Greenspot Road
Highland, California 92346
(909) 889-9501
eastvalley.org
District Board Meetings
Second and Fourth Wednesday of Each Month at 5:30pm
District Headquarters Board Room
31111 Greenspot Road
Highland, CA 92346
Sterling Natural Resource Center
25318 5th Street
Highland, CA 92410
Safe Reliable Water & Wastewater Service Provider
East Valley Water District was formed in 1954 and provides water and wastewater services to over 104,000
residents within the cities of Highland and San Bernardino, and portions of San Bernardino County. The
District operates under the direction of a 5-member elected Board.
@eastvalleywater