LVVWD Comprehensive Annual Financial Report

Transcription

Las Vegas Valley Water District
Comprehensive Annual Financial Report
A Component Unit of Clark County, Nevada
Fiscal Years Ended June 30, 2015 and 2014
Mary Beth Scow, President
Steve Sisolak, Vice President
Susan Brager
Larry Brown
Tom Collins
Chris Giunchigliani
Lawrence Weekly
John J. Entsminger
General Manager
Philip D. Speight
Assistant
General Manager
Julie A. Wilcox
Deputy General Manager
Administration
David L. Johnson
Deputy General Manager
Engineering/Operations
Gina L. Neilson
Chief Financial Officer
1001 South Valley View Blvd., Las Vegas, NV 89153
Table of Contents
Beginning on
Page No.
Introductory Section
Transmittal Letter ........................................................................................................................ 1
GFOA Certificate of Achievement ............................................................................................... 9
Organization Chart ...................................................................................................................... 10
Financial Section
Independent Auditors’ Report on Financial Statements and
Supplementary Information ....................................................................................................... 11
Management’s Discussion and Analysis ..................................................................................... 13
Basic Financial Statements
Statements of Net Position..................................................................................................... 21
Statements of Revenues, Expenses and Changes in Net Position ...................................... 23
Statements of Cash Flows...................................................................................................... 24
Statements of Fiduciary Net Position ................................................................................... 25
Statements of Changes in Fiduciary Net Position ............................................................... 26
Notes to Basic Financial Statements
Note
Note
Note
Note
Note
1.
2.
3.
4.
5.
Note
Note
Note
Note
Note
Note
Note
Note
Note
Note
Note
Note
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Summary of Significant Accounting Policies ......................................... 27
Capital Assets ............................................................................................ 33
Short-Term Debt ...................................................................................... 35
Long-Term Debt ....................................................................................... 36
Restricted Cash, Investments, Accounts Receivable
and Accounts Payable .............................................................................. 42
Unearned Revenue.................................................................................... 44
Southern Nevada Water Authority (SNWA) ......................................... 44
Southern Nevada Water System (SNWS)............................................... 45
Enterprise Fund Investments .................................................................. 45
Risk Management ..................................................................................... 47
Capital Contributions............................................................................... 48
Related Party Transactions ..................................................................... 49
Commitments and Contingencies............................................................ 50
Post Employment Benefits Other Than Pension (OPEB) ..................... 51
Termination Benefits ................................................................................ 53
Defined Benefit Pension Plan................................................................... 54
Subsequent Events .................................................................................... 61
i
Table of Contents
Beginning on
Page No.
Required Supplementary Information
Schedule of Changes in Net Pension Liability ..................................................................... 62
Schedule of Defined Benefit Plan Contributions................................................................. 63
Schedule of Defined Benefit Plan Investment Returns ....................................................... 64
Schedule of Funding Progress Postemployment
Benefit Plan Other than Pension ............................................................. 65
Statistical Section (unaudited)
Net Position by Component ......................................................................................................... 66
Changes in Net Position ............................................................................................................... 67
Water Consumption, Revenue and Active Accounts ................................................................ 68
Revenue Analysis - by Class of Service....................................................................................... 69
Water Rates – Last Ten Fiscal Years ......................................................................................... 70
2015 Municipal Water Rates Survey .......................................................................................... 76
Top Ten Principal Ratepayers - Calendar Year 2014 and Nine Years Ago............................ 77
Ratios of Outstanding Total Net Debt – Last Ten Fiscal Years ............................................... 78
Net Pledged Revenue Coverage – Last Ten Fiscal Years.......................................................... 79
Outstanding Direct and Overlapping General Obligation Indebtedness ................................ 80
Demographic Statistics – Last Ten Calendar Years.................................................................. 81
Clark County Principal Employers – Fiscal Year 2014 and Nine Years Ago ......................... 82
Ten Largest Property-Owning Taxpayers ................................................................................. 83
Authorized Full-Time Equivalent Employees by Department ................................................. 84
Water Production by Month – Last Ten Calendar Years ........................................................ 85
Pumpage From Wells by Months – Last Ten Calendar Years................................................. 86
Surface Water by Month Southern Nevada Water System – Last Ten Calendar Years....... 87
Water Production Maximum and Minimum Days by Month – Last Ten Calendar Years... 88
Annual Treated Water Delivered by The Southern Nevada Water System ........................... 89
Enterprise Fund Selected Capital Asset Statistics ..................................................................... 90
Schedule of Insurance as of June 30, 2015 ................................................................................. 91
Independent Auditors’ Report
Independent Auditors’ Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards ............................................. 95
ii
INTRODUCTORY
SECTION

Transmittal Letter

GFOA Certificate of Achievement

Organization Chart
TM
LAS VEGAS VALLEY
WATER DISTRICT
1001 South Valley View Boulevard
Las Vegas, NV 89153
(702) 870-2011 • lwwd.com
November 23, 2015
Board of Directors
1001 S. Valley View Boulevard
Las Vegas, NV 89153
We are pleased to present the Comprehensive Annual Financial Report (CAFR) of the Las Vegas Valley
Water District (District) for the fiscal year ended June 30, 2015. The CAFR was prepared in conformance
with accounting principles generally accepted in the United States of America (GAAP).
District management is responsible for the completeness and reliability of the financial information
presented in this report. To provide reasonable assurance of the proper recording of transactions,
management has established and maintains a system of internal accounting and other controls. The
concept of reasonable assurance recognizes that the cost of internal controls should not exceed the
benefits derived. Where necessary, the basic financial statements include amounts based upon
management's best estimates and judgments.
Nevada Revised Statute 354.624 and bond covenants require an annual audit of the basic financial
statements of the District. Piercy Bowler Taylor & Kem, a firm of licensed certified public accountants,
has audited the District's basic financial statements as of and for the fiscal years ended June 30, 2015 and
2014. The objective of the independent audit was to provide reasonable assurance that the basic financial
statements of the District for the fiscal years ended June 30, 2015 and 2014 are free of material
misstatement. An independent audit involves examining, on a test basis, evidence supporting the amounts
and disclosures in the basic financial statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial statement presentation. Based upon
the audit, the independent auditor concluded there was a reasonable basis for rendering an unmodified
("clean") opinion that the District' s basic financial statements for the fiscal years ended June 30, 2015 and
2014 are fairly presented in all material respects in conformity with GAAP. The independent auditor's
report is presented as the first component of the financial section of this report.
Management's Discussion and Analysis (MD&A) immediately follows the independent auditor's report
and provides a narrative introduction, overview and analysis of the basic financial statements. This
transmittal letter is designed to complement the MD&A and should be read in conjunction with it.
THE REPORTING ENTITY AND ITS SERVICES
The District is a governmental subdivision of the State of Nevada and a quasi-municipal corporation
created by a special act of the Nevada Legislature in 1947. The District was established to acquire and
distribute water primarily in the Las Vegas Valley, which includes the unincorporated metropolitan area
of Clark County and the City of Las Vegas. The District commenced operations on July 1, 1954.
The District is governed by a seven-member Board of Directors (Board) comprised of the elected Clark
County Commissioners. The Board has the sole authority to set rates and charges for water. Such rates
and charges must be reasonable and cannot be applied until after a public hearing and subsequent Board
approval. The enabling legislation that created the District, in conjunction with various bond covenants,
require that rates and charges be sufficient to provide for operation and maintenance costs, general
expenses of the District and debt service payments.
Day-to-day operations of the District are directed by a general manager appointed by the Board and two
deputy general managers. The District’s vision is “To be a global leader in service, innovation and
stewardship” and its mission is to “Provide world class water service in a sustainable, adaptive and
responsible manner to our customers through reliable, cost effective systems.” The Board has adopted a
series of strategic goals to support the District’s vision and mission.
Beginning in September 2008, the District was appointed to be the operating agent for the Big Bend
Water District (BBWD). Prior to the appointment, BBWD’s operating agent was the Clark County Water
Reclamation District. The BBWD was established in 1983 under the provisions of Nevada Revised
Statutes 318 for the purpose of obtaining and distributing water in Laughlin, Nevada. The Clark County
Board of Commissioners serves as the BBWD Board of Trustees.
The District also functions as the operating agent for the Southern Nevada Water Authority (SNWA).
The SNWA is a joint powers authority created in 1991 to address Southern Nevada’s unique water needs
on a regional basis. The SNWA is charged with acquiring and managing current and future resources,
constructing and managing regional water facilities and promoting water conservation. The District is one
of the SNWA’s seven member agencies. In 1996, the SNWA assumed all assets and liabilities of the
Southern Nevada Water System (SNWS) from the Colorado River Commission of Nevada (CRC).
Originally financed and constructed by the State of Nevada with assistance from the federal government,
the SNWS is responsible for the treatment and distribution of Colorado River water from Lake Mead.
The District operates the SNWS on behalf of the SNWA as it did previously for the CRC. Additional
information on the District’s relationship to the SNWS and the SNWA can be found in the notes to the
basic financial statements (Notes 7, 8 and 12).
As required by Nevada law, the District’s budget is approved annually by its Board following a public
hearing, and a copy of the budget is submitted to the Nevada Department of Taxation. Budgetary controls
are established at the levels of total estimated operating and non-operating expenses.
The budget controls District expenditures at various levels. These levels always include departments and
divisions, and in some instances, sections. Most disbursements are made through the issuance of purchase
orders. Purchases of new furniture and vehicles are administered by the District’s Operations Department
and Fleet Division, respectively; communication and computer equipment purchases are administered
under the authority of the Information Technology Department; and new positions are controlled by the
Human Resources Department. Financial Services prepares variance reports by division and division
managers are accountable for expenditures over and under budget.
Because the members of the Clark County Commission also serve as the Board of Directors for the
District, the District’s financial report is included as a blended component unit within Clark County’s
CAFR. A “blended component unit” means that the District’s balances and transactions are included in
Clark County’s financial report in combination with Clark County’s balances and transactions.
2
FACTORS AFFECTING FINANCIAL CONDITION
Local Economy. According to a report from the University of Nevada, Las Vegas' Center for Business
and Economic Research (CBER) issued on June 25, 2015, the Southern Nevada economy is continuing to
experience growth. The 2015 Midyear Economic Outlook publication states that in addition to strong
employment gains, financial conditions also are improving and visitor volume is still rising after a strong
2014. The CBER expects the Southern Nevada economy will continue to see improvement in 2015 and
2016. The gains will be stronger in 2015 than in 2014 and stronger in 2016 than in 2015. The CBER also
expects Las Vegas to reach its prerecession levels of employment in early 2016. Because the Southern
Nevada economy is heavily dependent on tourism, its outlook is tied to the growth of the U.S. and
western states' economies. The CBER forecast visitor volume, gross gaming revenue and housing units
permitted to continue to improve through 2015 and 2016. Visitor volume in Southern Nevada in 2014
reached 41.1 million people and is forecast to increase to 42.2 million in 2015 and 43.3 million in 2016.
Gross gaming revenue in Southern Nevada was $9.6 billion in 2014 and forecast to increase to $9.8
billion in 2015 and $10.0 billion in 2016. Housing units permitted in Southern Nevada were 9,738 in
2014 and forecast to increase to 10,870 in 2015 and 12,141 in 2016.
The Southern Nevada unemployment rate continues to show improvement. The Nevada Department of
Employment, Training and Rehabilitation (DETR) reported that the unemployment rate for the Las Vegas
Metropolitan Statistical Area (MSA) for June 2015 was 7.0%. This compares to an unemployment rate of
8.0% for June 2014. The seasonally adjusted unemployment rate for the State of Nevada was 6.9% for
June 2015 compared to 7.9% for June 2014. Although improving, Nevada's unemployment rate is still
well above the national average. The average seasonally adjusted unemployment rate for the United
States was 5.3% for June 2015 and 6.1% for June 2014. Nevada's unemployment rate hit a seven year low
in June 2015 and was the first time since July 2008 that the statewide unemployment rate has dipped
below 7%. June 2015 was the 54th straight month of year-to-year job gains across Nevada. Through the
end of 2014, Nevada ranked No. 2 in the nation for job formation with a growth rate of 4%. The number
of Nevadans working in June 2015 was at its highest level since August 2008, reaching 1.26 million.
Total employment for the Las Vegas MSA was 976,000 in June 2015 compared to 937,000 in June 2014,
an increase of 4.1%.
District Initiatives. As the economy continues to improve, the District has embraced the new economic
reality in which it operates. Implementing sustainable solutions for fiscal stability and enhancing
operations has become a top priority. This focus has replaced temporary measures which enabled the
District to survive the worst of the economic downturn. The District's focus has shifted from system
expansion to asset management with an increased emphasis on customer service. The District is
committed to providing a safe and reliable water supply in a fiscally responsible manner. The District's
evolution from system expansion to the maintenance, rehabilitation and replacement of existing
infrastructure means more than installing fewer distribution mains and preventing leaks. It requires an
organizational axis shift as the District aligns itself with its new strategic plan. With a reinvigorated focus
on customer care, the District strives to streamline processes, increase efficiency and minimize costs.
Strategic Plan. In 2013, the District underwent a strategic planning process to enhance the organization's
ability to adapt to dynamic economic conditions and environmental challenges. The result of this process
was an updated Strategic Plan that was reviewed by the Board and is in the process of being implemented.
The plan has served as an effective tool to guide organizational transition, increase communication,
emphasize accountability, reduce costs and eliminate duplication. Because the standards, goals and
expectations set forth by the Plan were developed using input from all staff levels, the entire workforce
has been engaged in its implementation.
Organizational Realignment. For the goals set forth by the Strategic plan to be fully implemented,
organizational realignment was necessary and will continue as additional opportunities present
3
themselves. As part of the ongoing realignment process over the past year, the SNWA Operations
Department merged with the District Operations Department. Additionally, the Facilities Division merged
with the Water and Environmental Resources Department to form the Resources and Facilities
Department.
Asset Management. The unprecedented growth experienced in the Las Vegas Valley throughout the
early and mid-2000s required significant system expansion. Despite the relative youth of the District's
water system, various components are more than 50 years old. Aging infrastructure requires maintenance,
rehabilitation and eventual replacement to meet customer needs and conservation goals. To this end, the
District's Infrastructure Management Department was formed to manage existing infrastructure. Under
the District's asset management plan, the condition of existing water infrastructure is assessed to forecast
short and long-term capital replacement needs. These assessments allow staff to determine costs and
timelines associated with major capital projects while ensuring adequate financial resources to replace
infrastructure reaching the end of its useful life. The proactive monitoring and maintenance of the
District's assets helps the organization prevent costly emergency repairs, avoid unanticipated service
interruptions, reduce maintenance deferrals and provide a more reliable water system for customers.
Financial policy. The District's financial policy is to charge reasonable rates, fees and other charges
sufficient to pay for water service, the costs of operation and maintenance of its facilities, the general
expenses of the District, and principal and interest on all bonds and other obligations of the District. It is
also District policy to fix rates and charges sufficient to maintain a debt service coverage ratio in
accordance with its bond covenants. The District deposits all moneys received from the sale or
distribution of water or otherwise derived from the works or property of the District into the Revenue
Fund. Further, the District keeps proper books of record and account in accordance with sound accounting
practice; complete and correct entries are made of its works, properties, and the revenues received
therefrom. The District has not deviated from its financial policy.
Long Term Financial Planning. The District is consistently engaged in proactive, long-term financial
planning to identify future infrastructure needs and ensure rates are predictable and increases controlled.
The District's long-term financing plan includes utilizing a combination of the District's unrestricted cash
funds and debt financing. The District has substantially reduced expenditures, maintained budgetary
restrictions and did not require a rate increase in fiscal year 2015 or fiscal year 2014. The District collects
from District customers and remits to the SNWA several fees and charges. In March 2012 the District's
Board approved a SNWA infrastructure charge based upon meter diameter size and type. In August 2012
a credit to the SNWA infrastructure charge amounting to 50 percent of the approved charges levied
against fire meters was approved by the Board. In December 2013, the District’s Board approved
increases to the SNWA infrastructure charge and to the SNWA commodity charge. Increases to these
SNWA charges were effective on January 1, 2014 and will increase annually on January 1 through 2017.
Revenues generated from these SNWA charges will help to fund debt service on SNWA bond obligations
which are associated with existing infrastructure and projects under construction.
In March 2015, the District's Board approved increases to the infrastructure charge (no increases to
infrastructure fireline charges). Increases to these SNWA charges will be effective on January 1, 2016 and
will increase annually on January 1 through 2018. Revenues generated from these SNWA charges will
help fund debt service on SNWA bond obligations associated with a new low lake level pumping station
which is needed to maintain Southern Nevada's access to Colorado River water even in severe drought
conditions. Bonds to help fund construction of the new low lake level pumping station are expected to be
sold during the latter part of fiscal year 2016. Revenue from the SNWA infrastructure charge, as well as
revenue from other SNWA fees and charges, is forwarded to the SNWA (see Note 7 -Southern Nevada
Water Authority (SNWA)).
4
Debt Issuances. On December 1, 2014, the District entered into an agreement with the State of Nevada
Department of Conservation and Natural Resources to receive a loan from the State Revolving Fund
(SRF) for an amount not to exceed $20 million. Disbursement of loan amounts is based upon submittal of
proper and acceptable costs that have been incurred. As of June 30, 2015, $1,298,309 is outstanding (see
Note 4 - Long-Term Debt).
On January 13, 2015, the District issued $332,405,000 par value general obligation bonds additionally
secured by SNWA pledged revenues that refunded and/or defeased $348,115,000 in principal payments
on prior issued SNWA bonds (see Note 4 - Long-Term Debt).
On June 1, 2015, the District issued $172,430,000 par value general obligation bonds that refunded and/or
defeased $198,070,000 in principal payments on prior issued bonds (see Note 4 - Long-Term Debt).
On June 1, 2015, the District issued $177,635,000 par value general obligation bonds additionally secured
by SNWA pledged revenues that refunded and/or defeased $205,140,000 in principal payments on prior
issued SNWA bonds (see Note 4- Long-Term Debt).
On June 1, 2015, the District issued $42,125,000 par value general obligation bonds additionally secured
by SNWA pledged revenues that refunded and/or defeased $47,755,000 in principal payments on prior
issued SNWA bonds (see Note 4 - Long-Term Debt).
Credit Rating Upgrade. On April 22, 2015, Moody's Investor Service upgraded the District's credit
rating on its general obligation bonds to Aal from Aa2. Moody's noted the District's very large service
area, an enormous tax base, a local economy that is in recovery and a manageable debt burden. The rating
upgrade takes into consideration the District's satisfactory and recently improved operating position
supported by management's actions to increase rates and reduce capital and operating expenses. Moody's
also notes the improving credit strength of the SNWA, whose net revenues secure a substantial portion of
the District's outstanding general obligation bonds. The rating also reflects the near-term expected
completion of the SNWA third intake project that will increase the security of the region's water supply.
Major initiatives. The District evaluates on an ongoing basis opportunities to improve efficiencies and
performance through major initiatives. The District has made significant efforts during the past year to
increase its ability to respond to changes in the economy, environment and customer base through the
efficient use of existing assets, the optimization of available resources and greater focus on customer
experience. Major initiatives for the fiscal year 2015 unless otherwise indicated were as follows:
•
The District currently operates and maintains more than 6,350 miles of pipeline, 53 pumping
stations, 41 reservoirs/tanks, 63 active wells, more than 373,000 water meters and a 3.1
megawatt solar-electric system. With a system this large, continued maintenance and
management of a robust Asset Management Plan is critical to meet the District's conservation
objectives and customer obligations. Not only does the District's Asset Management System
provide a means to evaluate current and future financial needs as they pertain to necessary water
infrastructure, it also identifies opportunities to extend infrastructure life, improve operational
efficiencies and reduce costs. The District will continue to implement this plan as a foundation
for assessing the condition of the District's water production and distribution system
infrastructure and forecasting short and long-term capital renewal needs.
•
District staff is currently in the process of rehabilitating the 40 million gallon Fayle Reservoir
which has been in service since 1971. When the structure was first evaluated to determine the
extent of necessary improvements, it was thought that the entire reservoir and its pumping
stations should be replaced - a construction project estimated at approximately $45 million. In an
5
effort to minimize rate impacts, the District hired a structural engineering consultant to assess the
condition of the reservoir and determine if rehabilitation could be performed more economically,
but still bring the reservoir into compliance with seismic zone requirements, state regulations and
county standards. Ultimately, the inspection report recommended that structural rehabilitation
would not only cost significantly less, but it would bring the reservoir up to standard and extend
its life up to 25 years. The cost of the rehabilitation is approximately $12.4 million and a contract
to begin the rehabilitation was awarded on July 7, 2015.
•
Since December 2011, approximately 215,000 water meters and automatic meter reader (AMR)
devices have been replaced within the District service area as they experienced technical
malfunctions or their batteries approached expiration. Approximately 32,000 meters/AMR
devices remain to be replaced within the District service area. The new devices being installed
allow District staff increased flexibility and responsiveness to customer billing needs. Total
funding for this project is $38.7 million.
•
The automated outbound dialing program continues to yield approximately $1 million in annual
savings by reducing truck rolls through proactive notification of debt arrears. The automated
outbound system dials customers in arrears, reminds them that their bill is due and gives them the
option to pay via an agent or the Interactive Voice Response system and avoid service
disconnection.
•
To reduce non-revenue water loss, Distribution is utilizing a system-wide leak detection program
(Permalog). This program typically detects leaks before they surface which in turn reduces the
overall damage that can be caused by a long-running leak, inconvenience to the District's
customers and energy costs due to water loss within the distribution system. There were 167
subsurface leaks detected by Permalog during calendar year 2014.
•
District employees continued to contribute to the organization’s cost-reducing efforts. Since the
implementation of a voluntary furlough program, employees have contributed more than 58,000
hours, resulting in more than $2.3 million in savings. The program concluded January 1, 2015.
•
To ensure water supplies remain available, the District, the SNWA and its other member agencies
have implemented a number of initiatives. These efforts include water conservation programs,
securing additional water resources and when appropriate, banking unused water resources. The
District’s award winning water conservation efforts have been particularly effective. Over the
last 10 years, the District's average monthly water use for residential single-service declined by
20 percent, from approximately 13,800 gallons in fiscal year 2005 to approximately 11,100
gallons in fiscal year 2015.
•
The Springs Preserve, located on District property, is a 180-acre cultural and historical attraction
designed to commemorate Las Vegas’ dynamic history and provide a vision for a sustainable
future. The Springs Preserve:
•
•
•
•
Welcomed over 258,000 visitors in fiscal year 2015;
Increased total operating revenues to $2.44 million in fiscal year 2015 from $2.25
million in fiscal year 2014, an 8% increase;
Increased facility rental revenue for meetings and private events to $0.28 million in
fiscal year 2015 from $0.25 million in fiscal year 2014, a 10% increase;
Earned $0.11 million in fiscal year 2015 for the first year of operating a butterfly
habitat seasonal exhibit;
6
•
•
•
•
•
•
•
•
Increased membership revenues to $0.45 million in fiscal year 2015 from $0.43
million in fiscal year 2014, a 4% increase;
Increased special event revenues to $0.46 million in fiscal year 2015 from $0.43
million in fiscal year 2014, a 9% increase;
Welcomed approximately 16,000 students through the free field trip program in
fiscal year 2015;
Increased general admission revenues to $0.52 million in fiscal year 2015 from
$0.51 million in fiscal year 2014, a 2% increase;
Received $0.23 million in contribution funding from program sponsors, grants and
members in fiscal year 2015;
Increased gift shop revenues to $0.27 million in fiscal year 2015 from $0.25 million
in fiscal year 2014, an 8% increase;
Increased cafe and catering revenues to $0.11 million in fiscal year 2015 from $0.10
million in fiscal year 2014, an 8% increase; and
Will receive $0.34 million in federal grants for fiscal year 2015 capital expenditures.
SEC REQUIREMENT
On November 10, 1994, the U.S. Securities and Exchange Commission (SEC) amended the Securities
Exchange Act of 1934, Rule 15c2-12, regarding continuing disclosure by issuers of municipal securities
for the benefit of holders of such securities. Along with other requirements, the amendments require that
certain annual financial information be provided to various information repositories for bond issues sold
on or after July 3, 1995. The annual financial information must include an update of the same historical
financial statements that are included in the final official statement issued at the time of the bond sale.
The required annual financial information for the District is incorporated in the Statements of Revenues,
Expenses, and Changes in Net Position, page 23, and in Note 4, Long Term Debt, pages 36 to 42,
inclusive. Additional required information can be found in the Statistical Section on pages 66 to 94,
inclusive. The District forwards its CAFR to the appropriate information repositories.
AWARDS AND ACKNOWLEDGMENTS
The Government Finance Officers Association (GFOA) of the United States and Canada awarded a
“Certificate of Achievement for Excellence in Financial Reporting” to the District for its CAFR for the
fiscal year ended June 30, 2014. This is a prestigious national award recognizing conformance with the
highest standards for the preparation of state and local government financial reports.
To receive this award, a governmental unit must publish an easily readable and efficiently organized
financial report that conforms to program standards. Such reports must satisfy both accounting principles
generally accepted in the United States as well as other applicable legal requirements. The District has
received this award for the last 36 consecutive years.
In addition, the District has also received the GFOA’s “Distinguished Budget Presentation Award” for its
budget documents for the previous 20 consecutive years. In order to receive this award, a governmental
unit must publish a budget document that meets program criteria as an operations guide, a financial plan
and a policy and communication document.
The Distinguished Budget Presentation Award is awarded on an annual basis. We believe the current
budget continues to conform to program requirements and we have submitted it for award consideration.
7
We also believe this report continues to conform to certificate requirements and plan to submit it to the
GFOA after approval from the Board.
We express our appreciation to the District's accounting staff for their dedication in the preparation of this
report, the staff members of other departments for their assistance, and the auditing firm of Piercy Bowler
Taylor & Kern for their professional services. We also want to thank the members of the Board of
Directors for their continued support and sound governance.
Sincerely,
Gina L. Neilson
Chief Financial Officer
John [Entsminger
General Manager
8
9
Organizational Chart
As of June 30, 2015
Board of Directors
General Manager
Assistant GM
Deputy GM:
Administration
Deputy GM:
Engineering /
Operations
Chief Financial
Officer
General Counsel
Customer Care
and Field Services
Energy
Management
Finance
Legal
Environmental,
Health, Safety,
and Corporate
Security
Engineering
Human Resources
Infrastructure
Management
Information
Technology
Operations
Public Services
Resources &
Facilities
Water Quality
and Treatment
10
FINANCIAL
SECTION

Independent Auditors’ Report on Financial
Statements and Supplementary Information

Management’s Discussion and Analysis

Basic Financial Statements

Required Supplementary Information
TM
MANAGEMENT’S DISCUSSION AND ANALYSIS
We offer readers this narrative overview and analysis of the Las Vegas Valley Water District’s (District)
financial activities for the fiscal years ended June 30, 2015 and 2014. We encourage readers to consider
the information presented here in conjunction with our audited basic financial statements and additional
information furnished in our letter of transmittal, which can be found on pages 1-8 of this report.
Fiscal Year 2015 Financial Highlights
•
Operating income before depreciation in fiscal year 2015 increased to $91.8 million from $86.0
million in fiscal year 2014, an increase of $5.8 million or 6.8%. Net income/(loss) improved from a
($6.1 million) net loss in fiscal year 2014 to net income of $10.5 million in fiscal year 2015, an
improvement of $16.7 million or 266.7%. A more detailed explanation of the changes in operating
income before depreciation and net income can be found in the Fiscal Year 2015 Summary included in
this Management’s Discussion and Analysis.
•
Unrestricted net position decreased $73.4 million or 44.8% to $90.6 million in fiscal year 2015 from
$164.0 million in fiscal year 2014 following a $103.8 million prior period adjustment due to the
implementation of Governmental Accounting Standards Board (GASB) Statement No. 68 which was
offset by a $19.3 million decrease in net position on net investment in capital assets, a $0.6 million
decrease in net position restricted for debt service, and the $10.5 million net income.
•
Net capital assets decreased $34.6 million or 2.0% to $1,698.5 million in fiscal year 2015 from
$1,733.1 million in fiscal year 2014 because net increase in accumulated depreciation ($58.8 million)
exceeded net increase in acquisition and construction of capital assets ($24.1 million).
•
Unrestricted cash/investments increased $41.5 million or 23.6% to $217.4 million in fiscal year 2015
from $175.9 million in fiscal year 2014. Net cash flow from operations, investment earnings, and
capital contributions continue to exceed disbursements for acquisition and construction of capital
assets and debt service.
Overview of financial statements. This discussion and analysis is intended to serve as an introduction to
the District’s basic financial statements. The District’s basic financial statements are comprised of three
components: 1) a proprietary (enterprise) fund, 2) a fiduciary pension trust fund, and 3) notes to the basic
financial statements. This report also contains supplementary and statistical information in addition to the
basic financial statements.
Fund financial statements. A fund is a fiscal and accounting entity with a self-balancing set of accounts
recording cash and other financial resources, together with all related liabilities and residual equities or
balances and changes therein, which are segregated for specific activities or objectives. The District
maintains two types of funds: a proprietary fund and a fiduciary pension trust fund.
Proprietary fund. The proprietary fund reports all of the District’s operations, except pension activity.
The operations are reported similar to a private-sector business enterprise. There are three components
presented in the basic financial statements: 1) comparative statements of net position, 2) comparative
statements of revenues, expenditures and changes in net position, and 3) comparative statements of
cash flows. These can be found on pages 21-24 of this report.
13
The comparative statements of net position present the District’s assets and liabilities, with the difference
reported as “net position.” Over time, increases or decreases in net position may serve as a useful indicator
of whether the financial position of the District is improving or deteriorating.
The comparative statements of revenues, expenses and changes in net position outline how the District’s
net position has changed over time. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will result in cash flows in future fiscal years.
The statements of cash flows are the third basic financial statement for the proprietary fund. The primary
purpose of the statements of cash flows is to provide relevant information about the District’s cash receipts
and cash payments; these are segregated among operating, capital and related financing, and investing
activities.
Fiduciary pension trust fund. The fiduciary pension trust fund accounts for the assets, liabilities and
changes in net assets of the District’s defined benefit pension plan. The fiduciary fund is not reflected in
the proprietary fund financial statement because fiduciary fund resources are not available to support
District operations. The fiduciary pension trust fund is accounted for in essentially the same manner as
the proprietary fund. The fiduciary pension trust fund financial statements can be found on pages 25-26 of
this report.
A more detailed description of the plan, including additional details regarding benefits, calculations of
average monthly compensation, the vesting schedule for benefits, the valuation date, actuarial cost method,
asset valuation method (including the use of smoothing techniques) and other significant assumptions for
the fiscal year ended June 30, 2015 can be found in Note 16 and in the Required Supplementary
Information in the audited financial statements.
Notes to the basic financial statements. The notes provide additional information that is essential to a
full understanding of the data provided in the District’s basic financial statements. The notes to the
basic financial statements can be found on pages 27-61 of this report.
Required supplementary information. In addition to the basic financial statements and accompanying
notes, this report includes required supplementary information describing the District’s contributions to,
and funding progress of, the pension plan for District employees. Also included is a schedule of funding
progress for the District’s postemployment benefits other than pensions. Required
supplementary information can be found on pages 62-65 of this report.
14
Financial position. As noted earlier, the value remaining after the subtraction of the liabilities from the
assets is net position that over time may serve as a useful indicator of financial condition. The following
schedule provides an overview of the District’s financial position for the fiscal years ended June 30, 2015,
2014 and 2013.
CONDENSED COMPARATIVE STATEMENTS OF NET POSITION
PROPRIETARY (ENTERPRISE) FUND
(IN THOUSANDS)
June 30
2015
ASSETS
Current and Other Assets
Capital Assets, Net
Total Assets
$
DEFERRED OUTFLOW OF RESOURCES
Total Assets and Deferred Outflow of Resources
$
LIABILITIES
Current Liabilities
Noncurrent Liabilities
Total Liabilities
$
DEFERRED INFLOW OF RESOURCES
NET POSITION
Net Investment in Capital Assets
Related Debt
Restricted for Debt Service/Capital Projects
Unrestricted
Total Net Position
Total Liabilities, Deferred Inflow of Resources
and Net Position
$
2014
2,457,842
1,698,484
4,156,326
7,082
4,163,408
626,671
2,574,340
3,201,011
$
$
$
2013
2,180,686
1,733,115
3,913,801
8,619
3,922,420
593,714
2,279,874
2,873,588
$
$
$
2,183,711
1,774,567
3,958,278
9,365
3,967,643
584,145
2,328,470
2,912,615
7,723
870
918
853,977
10,127
90,570
954,674
873,306
10,688
163,966
1,047,962
905,312
10,697
138,101
1,054,110
4,163,408
$
3,922,420
$
3,967,643
Most of the District’s net position is in capital assets. Capital assets are extended and improved as needed
to provide continuous and reliable water service while meeting the demands of growth. The District’s net
investment in capital assets, increased from 83% to 89% of total net position in the current fiscal year and
decreased from 86% to 83% in the prior fiscal year. The current fiscal year increase is due to depreciation
expense exceeding reduced capital contributions and capital expenditures along with a decrease to
unrestricted net position resulting from the prior period adjustment due to the implementation of GASB
68. The prior fiscal year decrease is due to depreciation expense exceeding reduced capital contributions
and capital expenditures.
For the current fiscal year, $10.1 million of the District’s net position was restricted for bond debt service
and capital projects. For the prior fiscal year, $10.7 million of the District’s net position was restricted for
bond debt service and capital projects. Bond debt service funds are restricted by bond covenants while
sales tax revenue is restricted by enabling legislation for use related to capital projects. The remaining
balance of net position is unrestricted and may be used for asset addition and replacement, debt retirement
and other obligations.
15
The District maintains positive balances in all three components of net position and remains in a healthy
financial condition.
CONDENSED STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
(IN THOUSANDS)
Years Ended June 30
2015
Operating Revenues:
Water Sales
Other
Total Operating Revenues
$
2014
331,654
6,136
337,790
Non-Operating Revenues
Interest and Investment Revenue
$
2013
333,852
5,096
338,948
$
332,465
3,967
336,432
1,514
1,476
492
339,304
340,424
336,924
84,918
11,328
149,751
245,997
84,985
9,719
158,264
252,968
83,290
10,005
153,063
246,358
Non-Operating Expenses
Interest Expense
Other
Total Non-Operating Expenses
34,632
1,906
36,538
36,423
3,063
39,486
36,459
3,909
40,368
Depreciation Expense
80,750
84,814
83,495
Total Expenses
363,285
377,268
370, 221
Loss Before Contributions
(23,981)
(36,844)
(33,297)
Capital and Other Contributions
34,526
30,696
20,192
Net Income (Loss)
10,545
(6,148)
(13,105)
Net position, Beginning of the Year
1,047,962
1,054,110
1,067,215
Prior period adjustment of net pension liability
(103,833)
-
-
Net position, Beginning of the Year as adjusted
944,129
-
-
Total Revenues Excluding
Capital and Other Contributions
Operating Expenses:
Purchased Water
Purchased Energy
Operation and Maintenance
Total Operating Expenses
Net position, End of the Year
$
16
954,674
$
1,047,962
$
1,054,110
Results of operations
Fiscal Year 2015 Summary
Total operating revenues were essentially flat in fiscal year 2015 compared to fiscal year 2014. Total
operating revenues decreased slightly to $337.8 million in fiscal year 2015 from $338.9 million in fiscal
year 2014, a decrease of $1.1 million or 0.3%. Water sales revenue and water consumption were
essentially flat in fiscal year 2015 compared to fiscal year 2014. Water sales revenue slightly decreased to
$331.7 million in fiscal year 2014 from $333.9 million in fiscal year 2014, a decrease of $2.2 million or
0.7%. Water consumption was 102.0 million gallons in fiscal year 2015 compared to 102.3 million gallons
in fiscal year 2014, a decrease of 0.3 million gallons or 0.3%. The number of active accounts increased to
373,000 at June 30, 2015 from 367,000 at June 30, 2014, an increase of 6,000 active accounts or 1.5%.
Since water rates are variable based upon usage and because of the emphasis placed upon conservation, it
is possible for active accounts, usage and revenues to increase or decrease at different rates. As the
economy in Southern Nevada continues to improve, inspection/application fees increased to $3.6 million
in fiscal year 2015 from $2.8 million in fiscal year 2014, an increase of $0.8 million or 28.5% Although
still significantly below the inspection/application fees collected in the mid 2000s, fiscal year 2015
inspection/application fees were the most collected since fiscal year 2007. Operating revenues at the
Springs Preserve were the highest since opening in June 2007, increasing to $2.5 million in fiscal year
2015 from $2.3 million in fiscal year 2014, an increase of $0.2 million or 8.3%.
Total operating expenses decreased to $246.0 million in fiscal year 2015 from $253.0 million in fiscal year
2014, a decrease of $7.0 million or 2.8%. Purchased energy expense increased to $11.3 million in fiscal
year 2015 from $9.7 million in fiscal year 2014, an increase of $1.6 million or 16.6%. This increase was
primarily due to an increase in both electricity expense and natural gas expense along with a slight
reduction in the renewable energy credits received from solar generation. Operation and maintenance
expense decreased to $149.8 million in fiscal year 2015 from $158.3 million in fiscal year 2014, a decrease
of $8.5 million or 5.4%. This decrease was due to a decrease in payroll and payroll related expenses of
approximately $6.3 million resulting primarily from a reduction in workforce that occurred in late fiscal
year 2014 and a decrease in purchased services of approximately $1.6 million.
Depreciation expense decreased by $4.1 million or 4.8% to $80.7 million in fiscal year 2015 from $84.8
million in fiscal year 2014.
Interest expense decreased by $1.8 million or 4.9% to $34.6 million in fiscal year 2015 from $36.4 million
in fiscal year 2014. This decrease is primarily due because principal payments reduced long-term debt in
fiscal year 2015.
Other non-operating revenues (expenses) improved by $1.2 million or 37.8% to ($1.9 million) in fiscal
year 2015 from ($3.1 million) in fiscal year 2014. This is primarily due to a decrease in the loss on
retirement of capital assets due to replacement of water meters and automatic meter reader devices.
Capital contributions increased by $3.8 million or 12.5% to $34.5 million in fiscal year 2015 from $30.7
million in fiscal year 2014. This is primarily due to an increase in facilities connection fees which
increased by $6.6 million to $17.6 million in fiscal year 2015 from $11.0 million in fiscal year 2014; a
decrease in donated mains and services which decreased by $0.9 million to $12.8 million in fiscal year
2015 from $13.7 million in fiscal year 2014; and a decrease in Springs Preserve capital contributions
which decreased by $1.5 million to $0.4 million in fiscal year 2015 from $1.9 million in fiscal year 2014.
Net income was $10.6 million in fiscal year 2015 which was an improvement of $16.7 million from the net
loss of ($6.1 million) in fiscal year 2014 primarily due to the above explanations.
17
Fiscal Year 2014 Summary
Total operating revenues were flat in fiscal year 2014 compared to fiscal year 2013. Total operating
revenues increased slightly to $338.9 million in fiscal year 2014 from $336.4 million in fiscal year 2013,
an increase of $2.5 million or 0.7%. Water sales revenue and water consumption were essentially flat in
fiscal year 2014 compared to fiscal year 2013. Water sales revenue slightly increased to $333.9 million in
fiscal year 2014 from $332.5 million in fiscal year 2013, an increase of $1.4 million or 0.4%. Water
consumption was 102.3 million gallons in fiscal year 2014 compared to 101.9 million gallons in fiscal year
2013, an increase of 0.4 million gallons or 0.4%. The number of active accounts increased to 367,000 at
June 30, 2014 from 360,000 at June 30, 2013, an increase of 7,000 active accounts or 2.0%. Since water
rates are variable based upon usage, it is possible for active accounts, usage and revenues to increase at
different rates. As the economy in Southern Nevada continues to improve, inspection/application fees
increased to $2.8 million in fiscal year 2014 from $1.6 million in fiscal year 2013, an increase of $1.2
million or 79.9%. Although still significantly below the inspection/application fees collected in the mid2000s, fiscal year 2014 inspection/application fees were the most collected since fiscal year 2007.
Operating revenues at the Springs Preserve were the highest since opening in June 2007, increasing to $2.3
million in fiscal year 2014 from $2.1 million in fiscal year 2013, an increase of $0.2 million or 9.7%.
Total operating expenses increased to $253.0 million in fiscal year 2014 from $246.4 million in fiscal year
2013, an increase of $6.6 million or 2.7%. Purchased water expense increased to $85.0 million in fiscal
primarily due to an increase in the wholesale delivery charge paid to the Southern Nevada Water Authority
(SNWA) to $303 per acre foot of water delivered in fiscal year 2014 from $293 per acre foot of water
delivered in fiscal year 2013. Operation and maintenance expense increased to $158.3 million in fiscal
primarily due to expensing $5.1 million in design fees for reservoir and pumping station projects that are
no longer necessary due to the slowdown in growth in Southern Nevada.
Depreciation expense increased by $1.3 million or 1.6% to $84.8 million in fiscal year 2014, from $83.5
million in fiscal year 2013.
Capital contributions increased by $10.5 million or 52.0% to $30.7 million in fiscal year 2014 from $20.2
million in fiscal year 2013. This is primarily due to an increase in facilities connection fees which
increased by $4.2 million to $11.1 million in fiscal year 2014 from $6.9 million in fiscal year 2013 and an
increase in donated mains and services which increased by $4.8 million to $13.7 million in fiscal year
2014 from $8.9 million in fiscal year 2013.
Net loss decreased by $7.0 million or 53.1% to $6.1 million in fiscal year 2014 from $13.1 million in fiscal
year 2013 primarily due to the above explanations.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The District’s investment in capital assets on June 30, 2015 was $1.7 billion (net of
accumulated depreciation). Capital asset investments include land, collecting and impounding reservoirs,
pumping stations and equipment, transmission and distribution mains, service pipes from the distribution
mains to customer meters, and transportation and office equipment. Additional information on the types
and values of the District’s capital assets can be found in Notes 1 and 2 to the basic financial statements of
this report.
The District’s ongoing capital improvements are funded with bond proceeds and state revolving fund loan
proceeds and consists of new pumping stations, reservoirs and wells, land acquisition, new water pipelines
and recycled water distribution system facilities. Total capital expenditures in fiscal year 2015 were $16.7
18
million, net of current and prior period reimbursements. Approximately $1.2 million of this amount is
expected to be reimbursed from grant proceeds. Total contract commitments were $1.2 million at June 30,
2015.
Significant capital expenditures during the current fiscal year include the following:
•
Fayle Water Facility Improvements. Bond fund/State Revolving Loan fund expenditures in fiscal
year 2015 were $0.6 million. Contract commitments at June 30, 2015 were $0.5 million.
•
Service Line Replacements. Bond fund expenditures in fiscal year 2015 were $2.8 million. There
were no contract commitments at June 30, 2015.
•
Automatic Meter Reading/Meter Replacement Program. Bond fund expenditures in fiscal year
2015 were $14.5 million. There were no contract commitments at June 30, 2015.
Long-term debt. At the end of fiscal year 2015, the District had total bond debt outstanding of $2.5
billion, $1.6 billion of which is secured by pledged revenue of the SNWA that does not affect the District’s
financial position. All but $1.3 million of the debt is general obligation debt. The District issued a $2.5
million Subordinate Lien Revenue Clean Renewable Energy Bond (CREB) in fiscal year 2009, which is a
tax-credit bond in which the holder realizes a tax-credit in lieu of or in addition to an interest payment.
As of June 30, 2015, Moody’s rates the District’s general obligation bonds, including advanced refunded
bonds in escrow, Aa1 and Standard & Poor’s rates them AA+. No rating was requested on the $2.5
million CREB revenue bond.
See Note 4, Long-Term Debt, for more information on long-term debt.
Economic factors and next year’s budget. The Southern Nevada economy continued to experience
growth during fiscal year 2015. New service applications increased to 6,035 applications in calendar year
2014, from 3,902 applications in calendar year 2013. The number of active customer accounts increased by
5,598 accounts or 1.5% to 373,080 active accounts as of June 30, 2015 from 367,482 active accounts as of
June 30, 2014. The District projects continued modest growth for fiscal year 2016.
To ensure water supplies remain available, the District, SNWA and its other member agencies have
implemented a number of initiatives. These efforts include water-conservation programs, securing
additional water resources and banking unused resources. Water conservation efforts have been
particularly effective. Over the last 10 years, the District’s average monthly water use for residential
single-services declined by 18%.
Over the last 15 years, the Colorado River Basin has experienced one of the worst droughts on record,
which has affected Lake Powell’s and Lake Mead’s reservoir levels. As of September 28, 2015, reservoir
storage levels at Lake Powell and Lake Mead were at 51% and 38% of capacity, respectively. Lake
Mead’s surface elevation was down approximately 138 feet from its pre-drought conditions. Because of
the “V” shape of Lake Mead, this results in a 60% reduction in water levels over the indicated time period.
Should the drought continue and reservoir levels continue to decline, the Lower Basin States (including
Nevada) could see their basic apportionment of the Colorado River water curtailed in future years. This
shortage condition is the worst-case scenario on the river.
The fiscal year 2016 budget projects $51.5 million in capital expenditures which includes rehabilitation of
the Fayle Reservoir. This facility was built in 1968 and placed in service in 1971. The reservoir will be
structurally rehabilitated to meet current standards. Also included in next year’s budget is the continuation
of the replacement of water meters and automatic meter reader devices project.
19
Requests for information. This financial report is designed to provide a general overview of the
District’s finances. Questions concerning any of the information provided in this report, or requests for
additional information, should be addressed to the Office of the Chief Financial Officer, Las Vegas Valley
Water District, 1001 South Valley View Blvd, Las Vegas, NV 89153 (telephone number 702-258-3106).
This report is also available on our Website: http://www.lvvwd.com/about/financial_cafr.html.
20
LAS VEGAS VALLEY WATER DISTRICT
STATEMENTS OF NET POSITION
JUNE 30, 2015 AND 2014
2015
ASSETS
CURRENT ASSETS
Unrestricted assets:
Cash and cash equivalents
Investments
Interest receivable
Accounts receivable, net of allowance for doubtful accounts
Inventories and prepaid expenses
Restricted assets:
Cash and cash equivalents
Investments
Due from related party
Total current assets
NONCURRENT ASSETS
Other assets
Due from related party, unrestricted
Due from related party, restricted
Total noncurrent assets, excluding capital assets
Capital assets:
Property and equipment
Less accumulated depreciation
Construction in progress
Total capital assets, net
Total noncurrent assets
TOTAL ASSETS
$
59,358,732
158,080,054
275,354
61,706,070
18,645,220
2014
$
92,010,758
83,889,930
285,512
63,359,731
19,013,023
11,524,932
59,919,313
450,462,198
819,971,873
11,792,703
71,432,213
425,945,180
767,729,050
47,725
69,147,798
1,568,675,000
1,637,870,523
60,025
4,291,267
1,408,605,000
1,412,956,292
2,864,852,109
(1,182,046,044)
1,682,806,065
15,677,478
1,698,483,543
2,838,570,317
(1,123,285,125)
1,715,285,192
17,830,071
1,733,115,263
3,336,354,066
3,146,071,555
4,156,325,939
3,913,800,605
1,446,159
5,636,135
8,618,707
-
7,082,294
8,618,707
$ 4,163,408,233
$ 3,922,419,312
DEFERRED OUTFLOW OF RESOURCES
Deferred amount related to bond refundings
Deferred amount related to pension
TOTAL DEFERRED OUTFLOW OF RESOURCES
TOTAL ASSETS AND DEFERRED OUTFLOW OF RESOURCES
(Continued)
The accompanying notes are an integral part of these basic financial statements.
21
STATEMENTS OF NET POSITION
JUNE 30, 2015 AND 2014
(Continued)
2015
2014
LIABILITIES AND NET POSTION
CURRENT LIABILITIES
Accounts payable and other accrued liabilities
$
70,700,128
Service installation deposits
717,342
Customer advances for construction
Payroll and related liabilities
Current portion of bonds payable
Current portion of bonds payable, related party
Commercial paper payable, related party
Accrued bond interest
Accrued state revolving fund loan interest
Accrued debt interest, related party
Construction contracts payable
Customer guarantee deposits
Agency account
Advance from related party
Total current liabilities
NONCURRENT LIABILITIES
Net pension liability
Liability for postemployment benefits other than pension
Unearned revenue
Bonds payable, net of current portion
State revolving fund loan
Bonds payable, related party, net of current portion
Total noncurrent liabilities
TOTAL LIABILITIES
DEFERRED INFLOW OF RESOURCES
Deferred amount related to bond refundings
Deferred amount related to pension
TOTAL DEFERRED INFLOW OF RESOURCES
NET POSITION
Net investment in capital assets
Restricted for debt service
Restricted for capital projects
Unrestricted
TOTAL NET POSITION
$
61,824,534
681,992
5,380,032
5,518,025
33,465,386
31,795,682
27,918,000
43,980,000
400,000,000
6,625,090
17,116
6,482,198
293,819
22,112,156
1,631,403
7,348,255
626,670,925
28,618,000
19,515,000
400,000,000
6,939,767
6,430,180
377,530
21,517,656
1,929,863
8,565,648
593,713,877
171,425,892
15,144,631
1,847,214
815,949,112
1,298,309
1,568,675,000
2,574,340,158
13,726,324
1,876,401
855,666,516
1,408,605,000
2,279,874,241
3,201,011,083
2,873,588,118
4,274,574
3,448,545
7,723,119
869,675
869,675
853,976,982
9,995,073
132,404
90,569,572
954,674,031
873,306,116
10,570,973
118,714
163,965,716
1,047,961,519
4,163,408,233
$ 3,922,419,312
TOTAL LIABILITIES, DEFERRED INFLOW
OF RESOURCES AND NET POSITION
$
22
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
FOR THE FISCAL YEARS ENDED JUNE 30, 2015 AND 2014
2015
OPERATING REVENUES
Water sales
Inspection/application fees
$
Springs Preserve
331,653,871
3,612,475
2014
$
333,851,405
2,811,054
2,443,004
2,254,947
Other
Total operating revenues
81,075
337,790,425
30,113
338,947,519
OPERATING EXPENSES
Purchased water
Purchased energy
Operation and maintenance
Total operating expenses
84,918,440
11,328,302
149,750,677
245,997,419
84,985,143
9,718,597
158,264,499
252,968,239
OPERATING INCOME BEFORE DEPRECIATION EXPENSE
Depreciation expense
91,793,006
(80,750,035)
85,979,280
(84,814,023)
11,042,971
1,165,257
NON-OPERATING REVENUES (EXPENSES)
Interest expense
Interest and investment revenue, unrestricted
Interest and investment revenue, restricted
Other
Total non-operating revenues (expenses)
(34,632,256)
1,265,650
248,210
(1,905,908)
(35,024,304)
(36,422,644)
1,094,644
381,689
(3,063,090)
(38,009,401)
LOSS BEFORE CONTRIBUTIONS
(23,981,333)
(36,844,144)
34,526,142
30,695,851
10,544,809
(6,148,293)
OPERATING INCOME
Capital contributions
NET INCOME (LOSS)
NET POSITION, BEGINNING OF THE YEAR
1,047,961,519
PRIOR PERIOD ADJUSTMENT OF NET PENSION LIABILITY
1,054,109,812
(103,832,297)
NET POSITION, BEGINNING OF THE YEAR AS ADJUSTED
-
944,129,222
NET POSITION, END OF THE YEAR
$
954,674,031
23
1,054,109,812
$
1,047,961,519
STATEMENTS OF CASH FLOWS
2015
2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
$
339,680,236
$
343,870,722
Cash payments to suppliers for goods and services
(122,973,636)
(122,747,618)
Cash payments for salaries and benefits
(113,750,402)
(128,089,881)
Other cash receipts
1,175,652
Other cash payments
1,259,102
(5,956)
Net cash provided by operating activities
(5,698)
104,125,894
94,286,627
(38,256,811)
(38,958,391)
24,225,809
19,617,325
Proceeds from sale of property and equipment
279,239
256,590
Proceeds of bond sale
262,727
-
1,298,309
-
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
Capital contributed for construction
Proceeds of State Revolving Fund Loan
Bond issue costs
(245,373)
State Revolving Fund Loan Issue Costs
(102,530)
-
Principal paid on bonds
(28,618,000)
(27,313,000)
Interest paid
(35,945,206)
(37,230,070)
1,399,082
1,387,138
Interest rebate
Construction deposits
Net cash used in capital and related financing activities
(102,643)
(166,486)
(75,805,397)
(82,406,894)
(171,690,939)
(122,201,302)
107,852,547
94,460,376
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities
Proceeds from sales and redemptions of investment securities
Interest income on investments
Net cash used in investing activities
2,598,098
2,613,267
(61,240,294)
(25,127,659)
NET DECREASE IN CASH
(32,919,797)
(13,247,926)
CASH AT BEGINNING OF YEAR
103,803,461
117,051,387
UNRESTRICTED CASH, END OF YEAR
59,358,732
92,010,758
RESTRICTED CASH, END OF YEAR
11,524,932
TOTAL CASH AT END OF YEAR
11,792,703
$
70,883,664
$
103,803,461
$
11,042,971
$
1,165,257
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
OPERATING INCOME
Adjustments to reconcile operating income
to net cash provided by operating activities:
80,750,035
84,814,023
1,712,807
4,218,887
Changes in assets and liabilities:
Decrease in accounts receivable
(Increase)/Decrease in inventories and prepaid expenses
367,803
(303,845)
Increase in accounts payable for operations
5,266,050
2,019,661
Increase in payroll and other accrued liabilities
3,928,519
1,180,265
Decrease in unearned revenue for operations
(30,912)
Other
(30,912)
1,088,621
NET CASH PROVIDED BY OPERATING ACTIVITIES
1,223,291
$
104,125,894
$
94,286,627
$
10,300,333
$
11,078,526
NON-CASH INVESTING, CAPITAL AND FINANCING ACTIVITIES:
Capital asset contributions
Change in fair value of investments
(275,357)
Bond issuance costs deducted from bond proceeds
(202,012)
Refunding bonds issued plus premium
Bonds refunded plus premium plus unamortized deferred gain
Deferred gain on refunded bonds
Debt issued on behalf of related party
24
(1,333,487)
-
198,543,739
-
(201,547,589)
-
3,477,589
-
552,165,000
-
STATEMENTS OF FIDUCIARY NET POSITION
PENSION TRUST FUND
JUNE 30, 2015 AND 2014
2015
2014
ASSETS
Cash and Cash Equivalents:
Money market funds
$
Investments at contract value:
Insurance account and contracts
Investments at fair value:
Domestic equity funds
Domestic bond funds
International equity fund
Global REIT
Total investments
Accrued interest receivable
Total assets
2,175,209
$
1,200,357
3,276,824
1,941,614
173,214,365
77,305,448
43,811,183
9,475,218
303,806,214
151,247,407
71,141,978
39,993,901
8,343,261
270,726,547
309,258,247
273,868,518
58,696
7,641
$
309,316,943
$
273,876,159
$
309,316,943
$
273,876,159
NET POSITION
Held in trust for pension benefits
25
STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUND
2015
2014
ADDITIONS
Employer contributions
$
28,853,341
$
30,700,443
Employee contributions
1,595,551
599,685
Total contributions
30,448,892
31,300,128
159,412
13,539,166
13,698,578
(109,462)
13,589,116
44,038,008
124,379
37,874,587
37,998,966
(105,426)
37,893,540
69,193,668
370,040
8,227,184
8,597,224
277,319
9,038,268
9,315,587
35,440,784
59,878,081
Investment earnings:
Interest
Net change in fair value of investments
Total investment earnings
Less investment expense
Net investment earnings
Total additions
DEDUCTIONS
Administrative and general
Benefits
Total deductions
Net increase
NET POSITION
Beginning of year
End of year
$
273,876,159
309,316,943
26
$
213,998,078
273,876,159
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the Las Vegas Valley Water District (District) are prepared in conformity
with generally accepted accounting principles (GAAP) in the United States of America as defined by the
Governmental Accounting Standards Board (GASB), the independent and ultimate authoritative accounting
and financial reporting standard-setting body for state and local governments. The significant accounting and
reporting policies for the District are discussed below.
Reporting Entity
The District is a quasi-municipal corporation created for the purpose of obtaining and distributing water,
primarily in the Las Vegas Valley, which includes the metropolitan area of Clark County and the City of Las
Vegas. Because the Clark County Board of Commissioners serves as the District’s Board of Directors
(Board), the District is included as a blended component unit within the Clark County Comprehensive Annual
Financial Report. A component unit can be a legally separate organization for which the elected officials of
the primary government are financially accountable. For purposes of these financial statements, the District is
the reporting entity.
Fund Accounting
The District’s financial report presents the activities of the District on a fund basis. In governmental
accounting, a fund is a fiscal and accounting entity with a self-balancing set of accounts recording cash and
other financial resources, together with all related liabilities and residual equities or balances, and changes
therein. The District uses two types of funds: a proprietary (enterprise) fund and a fiduciary (pension trust)
fund.
Proprietary (Enterprise) Fund
Except for pension activity, the proprietary (enterprise) fund accounts for all of the District’s operations,
similar to a commercial enterprise, using the economic resources measurement focus and the accrual basis of
accounting. Accordingly, revenues are recorded when earned and expenses are recorded when a liability is
incurred. The District adheres to all applicable financial accounting and reporting standards of the GASB. The
intent of the District is to establish water rates sufficient to provide for payment of general operations and
maintenance expenses, as well as required debt service. Typically, unrestricted resources are used first for all
expenditures, followed by reimbursement from restricted resources when appropriate. When both restricted
and unrestricted resources are available for the same expenditure, restricted resources are generally used first.
The District distinguishes operating revenues and expenses from non-operating items. Operating revenues
include revenues derived from water sales, water related activities and the Springs Preserve. Operating
expenses include all expenses applicable to the furnishing of these services. Non-operating revenues and
expenses include revenues and expenses not associated with the District’s normal business of supplying water
or with the Springs Preserve.
Included in operating revenues are regional connection fees, regional commodity charges and infrastructure
charges. These regional revenues are offset in operating expenses by equivalent contributions to the Southern
Nevada Water Authority (SNWA), a related party.
To avoid a “grossing-up” effect on operating revenues and operating expenses in the Statements of Revenues,
Expenses, and Changes in Net Position, revenue collected for the SNWA is offset against the related
27
Notes to Basic Financial Statements (Continued)
remittances to the SNWA. Any remaining balance is classified as an operating expense and adjusted in a
following period.
Operating revenues do not include discounts and allowances. Operating expenses (and work-in-progress
accounts) include allocations for indirect costs. These indirect costs include payroll taxes and employee
benefits, which are initially charged to administrative and general expense accounts, but reported only in the
accounts to which they are allocated. Depreciation expense is reported separately from operating expenses,
but it is a subcategory of operating expenses.
Non-operating revenues and expenses include interest and investment income and expense, and other
peripheral activities. Although capital contributions, as well as extraordinary items, if any, are shown
separately, they are subcategories of non-operating revenues and expenses.
Fiduciary Pension Trust Fund and Pension Account
The fiduciary pension trust fund accounts for the assets, liabilities, and changes in net position of the District’s
defined benefit pension plan in accordance with GASB Statements No. 67, 68, and 71. The fiduciary pension
trust fund is accounted for in essentially the same manner as the proprietary (enterprise) fund using the same
measurement focus and basis of accounting.
Retiree benefits not accounted for in the fiduciary pension trust fund were purchased through annuity
contracts funded in a contractual allocated Pension Account with an insurance company through December
31, 2013. Beginning January 1, 2014, retiree benefits are paid by the fiduciary pension trust fund account by a
large multi-national bank and are accounted for in the fiduciary pension trust fund. The assets and liabilities of
the Pension Account are not recorded on the District’s books.
Postemployment Benefits Other Than Pensions (OPEB)
Effective July 1, 2007, the District implemented the provisions of GASB Statement No. 45, Accounting and
Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. The OPEB plan is
administered by the District and not by a trust or equivalent arrangement.
Cash, Cash Equivalents and Investments
The District’s cash and cash equivalents consist of cash on hand and interest-bearing bank deposits. No
investments are considered cash equivalents regardless of liquidity or maturity. The total carrying amount of
District cash on hand and on deposit was $70,883,664, as of June 30, 2015 and $103,803,461 as of June 30,
2014. At the request of the SNWA, the District deposited SNWA funds into the District’s interest-bearing
checking account beginning in December 2009 and ending in December 2014 while interest rates were
suppressed and until the investment market provided better investing opportunities. The funds were readily
available to the SNWA and were collateralized. As of June 30, 2015, bank balances consisting entirely of
District funds were $70,135,029. As of June 30, 2014, bank balances were $116,353,786 consisting of
$100,489,226 for the District and $15,864,560 for SNWA. The District and the SNWA often carry cash and
cash equivalents on deposit with a financial institution in excess of federally-insured limits. The financial
institution pledges sufficient collateral with the Nevada State Treasurer for all amounts which exceed the
applicable FDIC insurance. The financial institution pledges only AAA rated securities to secure the deposits.
Investments, with the exception of certain pension investments, are reported at fair value and consist of bank
certificates of deposit, U.S. Government sponsored agency obligations, and municipal bonds. Pension assets
(Note 16) are comprised of equity and bond funds, a global real estate investment trust (REIT), insurance
contracts, pooled accounts, and money market accounts. The equity and bond funds, global REIT and the
money market accounts are stated at fair value, measured by underlying market value as reported by the
managing institutions. Investments in the insurance contracts and pooled accounts are stated at contract value
as determined by insurance companies according to the terms of the contracts. Excluded from pension assets
28
are annuities purchased for retired employees or their beneficiaries from an insurance company with a
financial strength rating of A++ by A.M. Best rating company.
Recharged Water
On January 1, 1993, the District and other purveyor members of the SNWA entered into a cooperative
agreement for the District to store water in the Las Vegas Groundwater Basin. Since then, the District has
recharged water into underground storage facilities and recorded the costs as water recharge inventory.
Payments from other members for future use of banked water were recorded as unearned revenue.
In February 2006, the District and the other purveyor members terminated the 1993 agreement and agreed to
the sale and transfer of approximately 290,000 acre-feet of banked water to the SNWA. The SNWA paid the
District $55.0 million and reimbursed the other members $12.4 million.
Also in February 2006, the District entered into a cooperative agreement with the SNWA that provides,
among other things, for the establishment of a groundwater bank to be operated by the District for benefit of
the SNWA. The SNWA is to have an account in the groundwater bank that includes existing storage and
water placed in storage by the District on behalf of the SNWA after January 1, 2006. The SNWA is expected
to reimburse the District its costs for both placing water into storage and for withdrawing it.
In fiscal year 2015 and 2014, no recharged water revenue was recorded.
Inventories
Inventories consist primarily of materials and supplies stated at the lower of market or average cost.
Restricted Assets
Restricted assets include amounts due from the SNWA for the repayment of the District’s notes and bonds
whose proceeds were delivered to the SNWA (Notes 3 and 4). Restricted assets also include certain resources
set aside to repay bond debt in accordance with bond covenants. Further, the District has restricted
investments for major maintenance contingencies, customer security deposits, sales tax and oversized mains.
Oversized mains are constructed to meet estimated future demands on the District’s distribution system.
Capital Assets
Property and equipment are recorded at purchase or construction cost, except for certain facilities that were
transferred to the District at approximate original cost less estimated accumulated depreciation. Developer
donated facilities are recorded at engineering estimates of fair value at the time the assets are donated.
Expenditures for improvements and betterments, including labor and indirect costs, are capitalized. The
capitalization threshold is generally $5,000 and an estimated useful life of three years following the date of
acquisition. Capitalization thresholds generally are applied to individual capital assets rather than to groups of
capital assets. Depreciation is computed using the straight-line method over the following estimated useful
lives:
Transmission and distribution mains, reservoirs and services
Buildings, wells, pumping facilities and meters
Transportation and office equipment
29
30 to 75 years
20 to 30 years
5 to 10 years
Interest Expense and Income Capitalized
The District capitalizes interest expense as a component of the cost of construction in progress. Consistent
with its policy, the District follows FASB Statement No. 34, as amended by Statement No. 62, and offsets
capitalized interest cost with interest income related to unspent bond proceeds.
Interest expense and capitalized interest expense and income for fiscal years 2015 and 2014 were as follows:
2015
2014
Bond interest
Other interest expense
Total interest expense
Bond interest expense capitalized
Net interest expense
$ 34,510,865
5,955
34,516,820
115,436
$ 34,632,256
$ 35,540,761
5,692
35,546,453
876,191
$ 36,422,644
Interest income capitalized
Reduction of restricted interest income
$
$
87,088
197,245
During fiscal years 2015 and 2014, bond interest expense capitalized was an increase to net interest expense
because several long-term capital projects were terminated and capitalized bond interest expense was
reversed.
Accumulated Unpaid Employee Benefits
Accumulated unpaid vacation and sick pay benefits are accrued based on the vested rights of the employees,
using the accrual basis of accounting.
Capital Contributions
Capital contributions are contributions in cash to connect to the existing system and donations, or
contributions in cash, services, or property from any person or governmental agency for the acquisition,
relocation, improvement or construction of property, facilities, or equipment. Capital contributions include
shared sales tax revenue received from the State of Nevada. The sales tax proceeds received are statutorily
restricted for construction purposes in a rural area. Sales tax proceeds received in fiscal year 2015 were
$45,494 and in fiscal year 2014 were $42,271. No distinction is made between property acquired through
capital contributions and property purchased from funds received through operating channels. Depreciation is
recorded and the property is retired in the appropriate manner.
Net Position
Net Position is displayed in three components:
(1) Net investment in capital assets. This component represents the District’s net position in its capital assets.
It reflects the cost of capital assets, less accumulated depreciation and less the outstanding principal of related
debt, excluding unspent proceeds.
(2) Restricted. This component reflects the carrying value of assets, less related liabilities, that are restricted
by law or by other externally imposed restrictions, such as bond covenants. Assets that are restricted only
because of District imposed limitations are not included in the calculation.
(3) Unrestricted. This component represents the remaining net position balance that is available to support
District operations and capital asset acquisition/construction
30
Legal Costs
The District does not accrue for estimated future legal and defense costs, if any, to be incurred in connection
with outstanding or threatened litigation and other disputed matters, but rather records such as period costs
when services are rendered.
New Accounting Pronouncements
In February 2015, the GASB issued Statement No. 72, Fair Value Measurement and Application, which is
effective for fiscal years beginning after June 15, 2015. Earlier application is encouraged. This Statement
addresses accounting and financial reporting issues related to fair value measurements. This statement
provides guidance for determining a fair value measurement for financial reporting purposes and for applying
fair value to certain investments and disclosures related to all fair value measurements. The District is
currently evaluating how the adoption of Statement No. 72 will affect the District's financial position, results
of operation or cash flow.
In June 2015, the GASB issued Statement No. 74, Financial Reporting for Postemployment Benefit Plans
Other Than Pension Plans, which is effective for fiscal years beginning after June 15, 2016. Earlier
application is encouraged. The objective of this Statement is to improve the usefulness of information about
postemployment benefits other than pensions (other postemployment benefits or OPEB) included in the
general purpose external financial reports of state and local governmental OPEB plans for making decisions
and assessing accountability. This Statement replaces Statement No. 43, Financial Reporting For
Postemployment Benefit Plans Other Than Pension Plans, as amended, and Statement No. 57, OPEB
Measurements by Agent Employers and Agent Multiple Employer Plans. It also includes requirements for
defined contribution OPEB plans that replace the requirements for those OPEB plans in Statement No. 25,
Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans,
as amended, Statement No. 43, and Statement No. 50, Pension Disclosures. The District is currently
evaluating how the adoption of Statement No. 74 will affect the District's financial position, results of
operation or cash flow.
In June 2015, the GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment
Benefits Other Than Pensions, which is effective for fiscal years beginning after June 15, 2017. Earlier
application is encouraged. The primary objective of this Statement is to improve accounting and financial
reporting by state and local governments for postemployment benefits other than pensions (other
postemployment benefits or OPEB). It also improves information provided by state and local governmental
employers about financial support for OPEB that is provided by other entities. This Statement replaces the
requirements of Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment
Benefits Other Than Pensions, as amended, and Statement No. 57, OPEB Measurements by Agent Employers
and Agent Multi-Employer Plans, for OPEB. The District is currently evaluating how the adoption of
Statement No. 75 will affect the District's financial position, results of operation or cash flow.
In August 2015, the GASB issued Statement No. 77, Tax Abatement Disclosures, which is effective for fiscal
years beginning after December 15, 2015. Earlier application is encouraged. This Statement requires
disclosure of tax abatement information about (1) a reporting government’s own tax abatement agreements
and (2) those that are entered into by other governments and that reduce the reporting government's tax
revenues. The District does not expect the adoption of Statement No. 77 to affect the District's financial
position, results of operation or cash flow.
31
Prior Period Adjustment
The District adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions – an
amendment of GASB Statement No. 27, effective for fiscal year 2015. The cumulative effect of applying the
new Statement is reported as a restatement of the beginning net position as of the beginning of the initial
period of implementation.
Beginning net position as previously reported at June 30, 2014
Prior period adjustment - implementation of GABS 68 - net pension liability
Deferred outflows - contributions subsequent to the measurement date
Net position as restated, July 1, 2014
$ 1,047,961,519
(103,832,297)
$ 944,129,222
The restatement does not include restatement for prior fiscal years because the information measured in
conformity with the requirements of GASB 68 is not available. The restatement of beginning balances does
not include restatement of deferred inflow of resources related to pensions and deferred outflow of resources
related to pensions because the information measured in conformity with the requirements of GASB 68 is not
available.
Other Reclassifications
Certain minor other reclassifications have been made in the fiscal year 2014 basic financial statements to
conform to the fiscal year 2015 presentation.
Estimates
The preparation of financial statements in conformity with GAAP requires the use of estimates by
management. Such estimates primarily relate to unsettled transactions and events as of the date of the basic
financial statements. Actual results could differ from those estimates.
32
NOTE 2. CAPITAL ASSETS
For the year ended June 30, 2015, capital asset activity is as follows:
Balance
Additions and
June 30, 2014
Adjustments
Balance
Retirements
June 30, 2015
Property and Equipment
Capital Assets, not Depreciated,
Excluding Construction in Progress:
Land and Land Rights
$
22,583,716
$
-
$
-
$
22,583,716
Capital Assets, Depreciated:
Organization Costs and Improvements
1,648,018
-
-
1,648,018
Collecting and Impounding Structures
846,666,044
7,249,978
9,323
853,906,699
Pumping Stations and Wells
273,960,482
7,473,340
-
281,433,822
855,269
-
-
855,269
931,074,097
8,514,448
-
939,588,545
Purification Equipment
Transmission/Distribution/Mains
Telemetering/Valves and Miscellaneous
52,696,792
750,178
-
53,446,970
Meters/Services
540,046,008
22,784,502
9,035,755
553,794,755
Office Furniture and Equipment
123,202,660
2,453,972
16,353,328
109,303,304
Transportation/Work/Equipment
45,837,232
3,723,295
1,269,514
48,291,012
2,815,986,601
52,949,712
26,667,920
2,842,268,393
2,838,570,317
52,949,712
26,667,920
2,864,852,109
17,830,071
2,856,400,388
38,616,818
91,566,530
40,769,411
67,437,331
15,677,478
2,880,529,587
1,463,568
31,246
-
1,494,814
369,312,805
32,807,437
9,323
402,110,919
153,998,197
11,868,176
-
165,866,373
555,028
30,962
-
585,990
202,461,487
12,570,651
-
215,032,138
15,648,731
838,995
-
16,487,726
Meters/Services
221,501,662
18,596,222
4,356,949
235,740,936
115,959,331
2,304,303
16,353,328
101,910,306
42,384,313
1,702,043
1,269,514
42,816,842
1,123,285,125
80,750,035
21,989,114
1,182,046,044
Total Capital Assets, Being Depreciated
Total Capital Assets, Excluding
Construction in Progress
Total
Accumulated Depreciation
Total
Total Capital Assets, net
$
1,733,115,263
$
33
10,816,495
$
45,448,217
$
1,698,483,543
For the year ended June 30, 2014, capital asset activity is as follows:
Balance
Additions and
June 30, 2013
Adjustments
Balance
Retirements
June 30, 2014
Property and Equipment
Capital Assets, not Depreciated,
Excluding Construction in Progress:
Land and Land Rights
$
22,583,716
$
-
$
-
$
22,583,716
Capital Assets, Depreciated:
1,648,018
-
-
1,648,018
835,830,490
10,863,048
27,495
846,666,044
270,085,091
3,888,536
13,145
273,960,482
855,269
-
-
855,269
919,148,926
11,934,616
9,445
931,074,097
51,396,219
1,306,436
5,863
52,696,792
Meters/Services
529,704,454
25,087,686
14,746,133
540,046,008
122,549,032
1,059,105
405,477
123,202,660
45,501,824
1,849,460
1,514,053
45,837,232
2,776,719,323
55,988,886
16,721,610
2,815,986,601
2,779,303,040
55,988,886
16,721,610
2,838,570,317
24,520,826
2,823,823,866
39,354,068
95,342,954
46,044,823
62,766,433
17,830,071
2,856,400,388
1,432,322
31,246
-
1,463,568
337,162,219
32,178,081
27,495
369,312,805
142,377,570
11,633,772
13,145
153,998,197
524,066
30,962
-
555,028
190,051,164
12,414,321
3,999
202,461,487
14,815,724
838,870
5,863
15,648,731
Meters/Services
211,884,575
18,432,858
8,815,771
221,501,662
108,859,105
7,505,702
405,477
115,959,331
42,150,155
1,748,211
1,514,053
42,384,313
1,049,256,903
84,814,024
10,785,802
1,123,285,125
Total Capital Assets, Being Depreciated
Total Capital Assets, Excluding
Total
Accumulated Depreciation
Total
Total Capital Assets, net
$
1,774,566,963
$
*Balances may not total due to rounding.
34
10,528,930
$
51,980,631
$
1,733,115,263
NOTE 3. SHORT-TERM DEBT
On March 10, 2004, the District began a Tax-Exempt Commercial Paper (TECP) program for the SNWA,
authorizing a maximum of $400.0 million in general obligation (limited tax) commercial paper notes (notes)
supported by the SNWA revenues. Proceeds from the sale of the notes were used to fund the SNWA’s capital
expenditures, to purchase a 25% interest in the Silverhawk power plant, and to purchase water resources. The
TECP program was most recently renegotiated on March 5, 2014, and is currently facilitated by letters of
credit between the District, J. P. Morgan Chase, N.A., and Wells Fargo Bank, N.A. The termination date for
each agreement is April 14, 2017. The District’s commercial paper, comprised of 11 tranches ranging in size
from $11.0 million to $134.0 million, is traded on the open market and subject to market interest fluctuations.
The notes have multiple interest rates, ranging from 0.07% to 0.11% with a 0.10% average rate. The notes
matured in 2015 as follows: $134.0 million in July; $194.0 million in August; $38.0 million in September; and
$34.0 million in October. The District replaced the maturing notes with additional notes. Standard & Poor’s
rating is A-l+ and Moody’s is P-1 based on ratings dated October 2013 and February 2011 respectively.
As of June 30, 2015 and 2014, the entire $400.0 million principal balance was outstanding. Principal and
accrued interest total $400,064,320 as of June 30, 2015. The liability for the notes and the receivable from the
SNWA are shown in the basic financial statements of the District.
In fiscal years 2015 and 2014, other than interest payments on the notes and rollover of principal, the District
had no short-term debt activity.
For the years ended June 30, 2015 and June 30, 2014, short-term debt activity is as follows:
Balance Beginning of Period
Additions
Retirements
Balance End of Period
June 30, 2015
$400,000,000
2,002,960,000
(2,002,960,000)
$400,000,000
June 30, 2014
$400,000,000
2,665,125,000
(2,665,125,000)
$400,000,000
End of Period
Accrued Interest
Average Interest Rate
Number of Traunches
Smallest
Largest
Shortest Maturity, in days
Longest Maturity, in days
$64,320
0.10%
11
$11,000,000
$134,000,000
47
156
$58,859
0.09%
11
$7,500,000
$134,000,000
29
162
35
NOTE 4. LONG-TERM DEBT
For the year ended June 30, 2015, long-term debt activity is as follows:
Balance
Additions
June 30, 2014
Bonds payable
Reductions
Balance
Due within
Due after
June 30, 2015
one year
one year
$849,082,000
$172,430,000
$(226,668,000)
$794,824,000
$27,918,000
$766,906,000
35,202,516
26,104,739
(12,264,143)
49,043,112
-
49,043,112
884,284,516
198,534,739
(238,952,143)
843,867,112
27,918,000
815,949,112
-
1,298,309
1,428,120,000
552,165,000
(367,630,000)
1,612,655,000
43,980,000
1,568,675,000
$2,312,404,516
$751,998,048
$(606,582,143)
$2,457,820,421
$71,898,000
$2,385,922,421
Unamortized
premium
Total bonds
payable
State Revolving
Fund Loan
1,298,309
1,298,309
Bonds payable,
related party
Total long-term
debt
For the year ended June 30, 2014, long-term debt activity is as follows:
Balance
Additions
June 30, 2013
Bonds payable
$876,395,000
$
Reductions
Balance
Due within
Due after
June 30, 2014
one year
one year
-
$(27,313,000)
$849,082,000
$28,618,000
$820,464,000
37,396,068
-
(2,193,552)
35,202,516
-
35,202,516
913,791,068
-
(29,506,552)
884,284,516
28,618,000
855,666,516
1,440,390,000
-
(12,270,000)
1,428,120,000
19,515,000
1,408,605,000
-
$(41,776,552)
$2,312,404,516
$48,133,000
$2,264,271,516
Unamortized
premium
Total bonds
payable
Bonds payable,
related party
Total long-term
debt
$2,354,181,068
$
Bonds Secured by SNWA Pledged Revenue
As of June 30, 2015, the District had $1,612,655,000 outstanding general obligation bonds additionally
secured by pledged revenue of the SNWA. The bond proceeds were delivered to the SNWA to finance water
projects and to refund existing debt. The receivable from the SNWA, as well as the liability for the bonds, is
shown on the basic financial statements of the District. As of June 30, 2015, bond principal and accrued
interest total $1,619,072,878, of which $6,417,878 represents accrued bond interest due within one year.
36
General Obligation Bond Covenants
Management believes that the District has complied with all legal requirements, limitations and restrictions of
the bond covenants. Such covenants include minimum revenue requirements and maintenance of a bond
service account.
After payment of the costs of operation, maintenance and general expenses of the District, excluding
depreciation expense and including interest income on operating funds, the District is required to establish
rates sufficient to provide annual “Revenues” equal to the average annual debt service, excluding bond debt
secured by pledged revenue of the SNWA. Net revenue available for debt service for the year ended June 30,
2015 was sufficient to meet the requirements of the bond covenants.
The District is required to maintain a bond service account to ensure payment of interest and principal when
due. For the outstanding bond issues, a transfer is made each month from revenue to provide for one-sixth of
the next semiannual interest payment and one-twelfth of the annual bond maturities of each issue. At June 30,
2015 the bond service account balance of $10.0 million met the scheduled requirement.
In-Substance Debt Defeasance and Deferred Balance
In prior years, the District issued bonds to advance refund various debt issues, resulting in the in-substance
defeasance of the old debt. Proceeds from the new debt and other funds were placed into escrow and invested
to pay principal and interest on the old debt at a future time. When the funds were put into escrow, the liability
for the old debt was removed from the District’s statement of net position. As of June 30, 2015, outstanding
in-substance defeased debt totaled $275.8 million.
For current refundings and advance refundings, the difference between the reacquisition price and the net
carrying amount of the old debt is deferred and amortized as a component of interest expense over the shortest
term of the related debt obligations. At June 30, 2015, the aggregate unamortized deferred loss was $1.4
million and the aggregate unamortized deferred gain was $4.3 million.
Current Year Debt Issuances
On December 1, 2014 the District entered into an agreement with the State of Nevada Department of
Conservation and Natural Resources to receive a loan from the State Revolving Fund (SRF) for an amount not
to exceed $20.0 million. Funds will be used for water system rehabilitation projects. The SRF loan is secured
by a $20.0 million general obligation bond the District gave to the State of Nevada as collateral for the loan.
Disbursement of loan amounts is based upon submittal of proper and acceptable costs that have been incurred.
As of June 30, 2015, $1.3 million is outstanding. The interest rate on the loan is fixed at 2.57% and the term is
20 years. Interest payments are payable semiannually on January 1 and July 1 of each year, commencing July
1, 2015. Principal payments are payable semiannually on January 1 and July 1 of each year, commencing on
the first January 1 or July 1 immediately following the date the maximum principal amount is drawn; the date
the projects are complete; or three years from the date of the loan contract, whichever occurs first.
On January 13, 2015, the District issued Series 2015, $332.4 million par value general obligation refunding
bonds additionally secured by SNWA pledged revenues, for a net premium of $49.3 million and a true interest
cost of 3.90%. The bonds were dated and delivered January 13, 2015. Proceeds of the bonds, less $1.4 million
to pay the costs of issuing the bonds, were deposited with the paying agent to currently refund at 109% of par
plus accrued interest $348.1 million of the SNWA's Series 2009C (taxable, direct pay Build America) bonds.
The average coupon rate of the 2009C refunded bonds is 4.60%.
On June 1, 2015, the District issued Series 2015A, $172.4 million par value general obligation refunding
bonds for a net premium of $26.1 million and a true interest cost of 2.46%. The bonds were dated and
delivered June 1, 2015. Proceeds of the bonds, less $0.5 million to pay the costs of issuing the bonds, were
deposited with the paying agent to currently refund at 100% of par plus accrued interest $198.1 million of the
37
District's Series 2005A general obligation refunding bonds. The average coupon rate of the 2005A refunded
bonds is 4.86%.
On June 1, 2015, the District issued Series 2015B, $177.6 million par value general obligation refunding
bonds additionally secured by SNWA pledged revenues, for a net premium of $28.8 milion and a true interest
cost of 2.59%. The bonds were dated and delivered June 1, 2015. Proceeds of the bonds, less $0.5 million to
pay the costs of issuing the bonds, were deposited into escrow to currently refund at 100% of par plus accrued
interest $173.5 million of the SNWA's Series 2005F general obligation refunding bonds and to currently
refund at 100% of par plus accrued interest $31.6 million of the SNWA's Series 2005H State of Nevada
general obligation refunding bonds. The average coupon rate of the 2005F and 2005H refunded bonds is
4.94%.
On June 18, 2015, the District issued Series 2015C, $42.1 million par value general obligation refunding
bonds additionally secured by SNWA pledged revenues, for a net premium of $6.3 million and a true interest
cost of 2.58%. The bonds were dated and delivered June 18, 2015. Proceeds of the bonds, less $0.1 million to
pay the costs of issuing the bonds, were deposited into escrow to currently refund at 100% of par plus accrued
interest $47.8 million of the SNWA's Series 2005I State of Nevada, Colorado River Commission power
delivery project general obligation refunding bonds. The average coupon rate of the 2005I refunded bonds is
4.74%.
The refunding of the Series 2005A bonds by the Series 2015A issue resulted in an accounting gain of $3.5
million. Following GASB Statement No. 65, the District has deferred the accounting gain and will amortize it
as a component of interest expense through fiscal year 2027. The District reduced its debt service payments
through fiscal year 2027 by $33.9 million and obtained a present value economic gain of $29.2 million.
Because the liability for bonds additionally secured by pledged revenue of the SNWA are offset by an SNWA
receivable, issuing the Series 2015, Series 2015B and Series 2015C bonds and refunding the Series 2009C
bonds had no effect on District operations or financial position.
Adjustable Rate Bonds
On July 20, 2006, the District issued $75.0 million Adjustable Rate Bonds, Series 2006B and $75.0 million
Adjustable Rate Bonds, Series 2006C (2006B/C Bonds). Each series of the 2006B/C Bonds currently bear
interest at a Daily Rate. While in the Daily Rate Mode, the interest rate for the 2006B/C Bonds is the rate of
interest per annum determined by the applicable Remarketing Agent each Business Day as the minimum rate
of interest that, in the opinion of the applicable Remarketing Agent, would, under then existing market
conditions, result in the sale of the 2006B/C Bonds in the Daily Rate Mode on the Rate Determination Date at
a price equal to the principal amount thereof, plus accrued interest, if any. At June 30, 2015, the interest rate
for the 2006B/C Bonds was 0.25%. As required by GASB Statement No. 38, Certain Financial Statement
Note Disclosures, this rate was used to calculate future interest requirements for the 2006B/C Bonds
outstanding as of June 30, 2015.
38
General obligation bonds and a subordinate lien revenue bond payable as of June 30, 2015:
GENERAL OBLIGATION IMPROVEMENT AND REFUNDING BONDS
…………..(REVENUE SUPPORTED)……………
Date of issue
Coupon interest rate
Interest payment dates
Principal payment date
2006A
2006B
2006C
2006C
June 15, 2006
4.75% to 5.00%
6/1 and 12/1
June 1
July 20, 2006
Variable
Monthly
June 1
July 20, 2006
Variable
Monthly
June 1
February 19, 2008
5.00%
8/1 and 2/1
February 1
$ 75,000,000
(7,555,000)
(2,900,000)
64,545,000
(1,805,000)
$ 62,740,000
$
Original amount
Redeemed as of 6/30/15
Advance refunded
Outstanding as of 6/30/15
Less current portion
Portion due after one year
Date of issue
$ 151,555,000
(15,320,000)
(5,885,000)
130,350,000
(3,665,000)
$126,685,000
$ 75,000,000
(7,555,000)
(2,900,000)
64,545,000
(1,805,000)
$ 62,740,000
$
190,760,000
(40,760,000)
150,000,000
(3,620,000)
146,380,000
2008 CREB(1)
2010A BABS(2)
2010B
July 15, 2008
1.30%
9/15,12/15,3/15,6/15
December 15
June 15, 2010
5.60% to 5.70%
9/1 and 3/1
March 1
June 15, 2010
2.00% to 4.625%
9/1 and 3/1
March 1
Original amount
$
$
2,520,000
(1,176,000)
1,344,000
(168,000)
1,176,000
$
$
75,995,000
75,995,000
75,995,000
$
$
31,075,000
(1,545,000)
29,530,000
(805,000)
28,725,000
2011D
2012A
2015A
Date of issue
October 19, 2011
2.00% to 5.25%
6/1 and 12/1
June 1
September 5, 2012
5.00%
6/1/ and 12/1
June 1
June 1, 2015
2.00% to 5.00%
6/1/ and 12/1
June 1
Original amount
$
$
78,680,000
(11,905,000)
66,775,000
(4,275,000)
62,500,000
$
$
39,310,000
39,310,000
39,310,000
$
$
172,430,000
172,430,000
(11,775,000)
160,655,000
______
(1)
2008 CREB (Clean Renewable Energy Bond) subordinate lien revenue bond.
(2)
BABS are Build America Bonds that provide for federal subsidy payments to the issuer as of each interest payment
date, resulting in an effective interest rate of 3.73% for the 2010A Bonds; 4.67% for the 2009A Pledged SNWA
Revenue Bonds; and 4.65% for the 2009C Pledged SNWA Revenue Bonds. As a result of the federal budget cuts
known as “sequestration,” the federal subsidy payments for these bonds were reduced by 7.30% for fiscal year
2015.
39
STATE REVOLVING FUND LOAN
State Revolving Fund Loan
2014
Date of issue
Principal payment dates
December 1, 2014
2.57%
1/1 and 7/1
1/1 and 7/1
Amount Available
Amount Drawn as of 6/30/15
$
20,000,000
1,298,309
1,298,309
$ 1,298,309
GENERAL OBLIGATION BONDS – PLEDGED SNWA REVENUE
Date of issue
2008B
2009A BABS(1)
2009B
February 19, 2008
3.50% to 5.00%
6/1 and 12/1
June 1
August 5, 2009
7.10%
6/1 and 12/1
June 1
August 5, 2009
4.00% to 5.25%
6/1 and 12/1
June 1
Original amount
Advance refunded
Date of issue
Original amount
$
$
171,720,000
(3,455,000)
(51,930,000)
116,335,000
(10,445,000)
105,890,000
$
$
90,000,000
90,000,000
90,000,000
$
$
10,000,000
(715,000)
9,285,000
(380,000)
8,905,000
2009D
2011A
2011B
December 23, 2009
4.25% to 5.25%
6/1 and 12/1
June 1
May 26, 2011
3.051% to 5.434%
6/1 and 12/1
June 1
October 19, 2011
2.789% to 4.958%
6/1 and 12/1
June 1
$
$
71,965,000
(8,770,000)
63,195,000
(3,220,000)
59,975,000
$
$
58,110,000
(100,000)
58,110,000
(4,255,000)
53,755,000
$
129,650,000
129,650,000
(9,220,000)
$ 120,430,000
_________
(1) BABS are Build America Bonds that provide for federal subsidy payments to the issuer as of each interest payment
date, resulting in an effective interest rate of 3.73% for the 2010A Bonds; 4.67% for the 2009A Pledged SNWA
Revenue Bonds; and 4.65% for the 2009C Pledged SNWA Revenue Bonds. As a result of the federal budget cuts
known as “sequestration,” the federal subsidy payments for these bonds were reduced by 7.30% for fiscal year
2015.
40
Continued
GENERAL OBLIGATION BONDS – PLEDGED SNWA REVENUE
2011C
2012B
2015
Date of issue
October 19, 2011
2.00% to 5.00%
6/1 and 12/1
June 1
July 31, 2012
3.00% to 5.00%
6/1 and 12/1
June 1
January 13, 2015
2.00% to 5.00%
6/1 and 12/1
June 1
Original amount
$
$
$
Date of issue
Original amount
$
267,815,000
(27,205,000)
240,610,000
(9,670,000)
230,940,000
$
360,000,000
(6,595,000)
353,405,000
(6,790,000)
346,615,000
2015B
2015C
June 1, 2015
4.00% to 5.00%
6/1 and 12/1
December 1
June 18, 2015
3.00% to 5.00%
3/15 and 9/15
September 15
$
$
177,635,000
177,635,000
177,635,000
$
$
332,405,000
332,405,000
332,405,000
$
42,125,000
42,125,000
42,125,000
As of June 30, 2015, annual requirements to retire outstanding bonds were as follows:
Fiscal Number
Years
of
Ending Years
2016
2017
2018
2019
2020
2025
2030
2035
2040
2042
Total
1
1
1
1
1
5
5
5
5
2
General Obligation
(Revenue Supported)
and Revenue Bonds(1)
Principal
Interest
State Revolving
Fund Loan
Principal
Interest
General Obligation Bonds
(Pledged SNWA Revenue)
Principal
Interest
$ 27,918,000 $ 33,098,393
28,963,000
32,249,534
30,223,000
31,182,800
31,573,000
30,047,366
33,163,000
28,682,432
192,239,000 120,418,341
179,135,000
78,230,891
168,575,000
43,871,413
103,035,000
14,434,071
-
$
30,690
62,569
64,187
346,715
393,935
400,212
-
$
33,799 $ 43,980,000
33,367
56,565,000
33,367
58,990,000
32,178
61,650,000
30,560
64,490,000
127,021
371,560,000
79,802
283,485,000
26,151
248,655,000
379,205,000
44,075,000
$ 78,911,009
77,348,820
74,905,301
72,246,801
69,405,428
298,014,006
206,200,785
153,779,935
70,366,005
3,137,900
$ 794,824,000 $ 412,215,238
$ 1,298,309
$
396,245 $1,612,655,000
$1,104,315,989
41
Fiscal Number
Years
of
Ending Years
2016
2017
2018
2019
2020
2025
2030
2035
2040
2042
Total
1
1
1
1
1
5
5
5
5
2
Total General Obligation and Revenue Bonds
Principal
$
Interest
Principal and Interest
71,898,000
85,528,000
89,243,690
93,285,569
97,717,187
564,145,715
463,013,935
417,630,212
482,240,000
44,075,000
$ 112,043,201
109,631,720
106,121,467
102,326,345
98,118,419
418,559,367
284,511,478
197,677,499
84,800,076
3,137,900
$
183,941,201
195,159,720
195,365,157
195,611,914
195,835,606
982,205,083
747,525,413
615,307,711
567,040,076
47,212,900
$2,408,777,309
$1,516,927,472
$3,925,704,781
(1) Includes Revenue (Clean Renewable Energy) Bond issued July 15, 2008. Outstanding balance $1,344,000
at June 30, 2015.
NOTE 5. RESTRICTED CASH, INVESTMENTS, ACCOUNTS RECEIVABLE AND ACCOUNTS
PAYABLE
Restricted Cash
At June 30, 2015 and 2014, the balances of the restricted cash accounts were as follows:
2015
Major Maintenance Contingency Account
Big Bend Agency Account
SNWA Energy Collateral
Sales Tax Account
Total Restricted Cash
$
3,761,125
1,631,403
6,000,000
132,404
$ 11,524,932
2014
$ 3,744,126
1,929,863
6,000,000
118,714
$ 11,792,703
Restricted Investments
At June 30, 2015 and 2014, the balances of the restricted investment accounts were as follows:
2015
Sinking Fund Debt Service
Bond Acquisition and Construction
Customer Guarantee Deposits
Oversizing Account
Total Restricted Investments
$
9,995,073
2,188,965
22,112,156
25,623,119
$ 59,919,313
42
2014
$ 10,570,973
16,726,337
21,517,656
22,617,247
$ 71,432, 213
Accounts Receivable
Accounts receivable include water accounts receivable and other accounts receivable as shown below. The
net accounts receivable balance at June 30, 2015, is expected to be collected within one year. The total
allowance for doubtful accounts of $1,921,875 is believed to be reasonable and adequate at June 30, 2015.
2015
Water Accounts Receivable:
Outstanding Billings
Unbilled Water Revenue
Allowance for Doubtful Collection
Water Accounts Receivable, net
$
2014
29,294,711
29,100,695
(1,886,875)
56,508,531
Other Accounts Receivable:
Other Governments
Other
Allowance for Doubtful Collection
Other Accounts Receivable, net
$
31,502,455
29,285,403
(1,850,979)
58,936,879
4,142,821
1,089,718
(35,000)
5,197,539
Total Accounts Receivable, net
$
61,706,070
2,886,109
1,581,743
(45,000)
4,422,852
$
63,359,731
Accounts Payable and Other Accrued Liabilities
Accounts payable includes all amounts payable by the District within one year not provided for in other
accounts. At June 30, 2015 and 2014, Accounts Payable consists of the following:
2015
Purchased Water (SNWA)
Other SNWA Expenses
Recycled Water Distribution
Other Expenses
Capital Assets and Contracts
Total
SNWA
$ 8,010,114
13,563,303
37,812
$ 21,611,229
City of
Las Vegas
$
10,464,309
9,250
$ 10,473,559
Clark
County
$
22,898,178
$ 22,898,178
Other
Vendors
$
12,378,195
3,338,967
$ 15,717,162
Total
Payables
$ 8,010,114
13,563,303
33,362,487
12,425,257
3,338,967
$ 70,700,128
2014
Purchased Water (SNWA)
Other SNWA Expenses
Recycled Water Distribution
Other Expenses
Capital Assets and Contracts
Total
SNWA
$ 8,133,365
11,636,308
38,279
$ 19,807,952
City of
Las Vegas
$
8,926,845
$ 8,926,845
43
Clark
County
$
19,544,575
$ 19,544,575
Other
Vendors
$
12,598,346
946,816
$ 13,545,162
Total
Payables
$ 8,133,365
11,636,308
28,471,420
12,636,625
946,816
$ 61,824,534
NOTE 6. UNEARNED REVENUE
2015
$ 633,696
203,050
39,200
971,268
$1,847,214
Developer Advance
Facility Charges
Oversizing Charges
Prepaid Meters/AMRs
Total
2014
$ 664,608
208,550
42,330
960,913
$1,876,401
In prior fiscal years, a developer paid the District a total of $1.0 million to partially offset the District’s future
cost of maintaining and operating a small pump station constructed at the developer’s expense to serve the
developer’s property. The developer also agreed to pay the District a monthly operating and maintenance
assessment until January 1, 2036. The $1.0 million, classified as unearned revenue, is being amortized
$30,912 annually as an offset to operating expenses through January 1, 2036.
At June 30, 2015, based on estimated probable future refunds, the District classified as unearned revenue $0.2
million in facilities charges and $39,200 in oversizing charges, and at June 30, 2014, $0.2 million in facilities
charges and $42,330 in oversizing charges.
Developers frequently pay the District in advance for water meters and automatic meter reading devices
(AMRs) that they pick up at a later time from the District warehouse. Prepaid water meters and AMRs are
classified as unearned revenue. The prepaid meters/AMRs balance totaled $1.0 million at June 30, 2015 and
$1.0 million at June 30, 2014.
NOTE 7. SOUTHERN NEVADA WATER AUTHORITY (SNWA)
The SNWA is a political subdivision of the State of Nevada created in 1991 by a cooperative agreement
among the District, the Big Bend Water District, the City of Boulder City, the City of Henderson, the City of
Las Vegas, the City of North Las Vegas, and the Clark County Water Reclamation District (member
agencies). The SNWA was created to secure additional supplies of water and effectively manage existing
supplies of water on a regional basis through the cooperative action of the member agencies.
The SNWA is governed by a seven-member board of directors, comprised of one director from each member
agency. The District is the operating agent for the SNWA; the General Manager of the District is the General
Manager of the SNWA, and the Chief Financial Officer for the District is the Treasurer of the SNWA.
The SNWA has the power to periodically assess the member agencies directly for operating and capital costs
and for the satisfaction of any liabilities imposed against the SNWA. The District and other members do not
have an express claim to the resources of the SNWA except that upon termination of the joint venture any
assets remaining after payment of all obligations shall be returned to the contributing member agencies.
In 1995, agreements were approved for the repayment of the cost of an additional expansion of the Southern
Nevada Water System (SNWS). The agreements require contributions from purveyor members, including the
District, benefiting from the expansion. In 1996, the District’s Board approved the collection from District
customers and remittance to the SNWA a regional connection charge, regional commodity charge and
regional reliability charge to fund these contributions. In March 2012 a regional infrastructure charge based
upon meter size was approved. In August 2012 a credit to the regional infrastructure charge amounting to 50
percent of the approved charges levied against fire meters was approved.
The District records these revenues as operating revenues and the contributions as operating expenses.
However, to avoid a “grossing-up” effect on operating revenues and operating expenses in the Statements of
Revenues, Expenses, and Changes in Net Position, revenue collected for the SNWA is offset against the
44
related remittances to the SNWA. Any remaining balance is classified as an operating expense and adjusted in
a following period. The table below shows the SNWA regional charges collected for and remitted to the
SNWA for fiscal years 2015 and 2014.
Connection charges, net of refunds
Commodity and reliability charges
Infrastructure charges
Total
2015
2014
$ 47,125,630
38,718,018
62,202,122
$148,045,770
$ 26,284,180
34,908,299
57,375,876
$118,568,355
Audited financial reports of the SNWA for fiscal year 2015 can be obtained on the SNWA internet website:
www.snwa.com/html/about_financial.html or by writing to:
Office of the Treasurer
Southern Nevada Water Authority
1001 South Valley View Boulevard
Las Vegas, NV 89153
NOTE 8. SOUTHERN NEVADA WATER SYSTEM (SNWS)
The District operates for the SNWA the SNWS, a regional system consisting of water treatment plants and
pumping and distribution facilities that supply water to the water purveyors in Southern Nevada.
During fiscal year 2015, the District billed the SNWA $111.1 million for expenditures made on behalf of the
SNWA. During fiscal year 2014, the District billed the SNWA $107.9 million for expenditures made on
behalf of the SNWA. The SNWA, in turn, billed the District for its share of these and other costs, computed
at a flat rate per acre-foot of water delivered (wholesale delivery charge). The District records the wholesale
delivery charge as a component of purchased water expense.
NOTE 9. ENTERPRISE FUND INVESTMENTS
The District’s investment policy limits investments and risks to those permitted under the laws of the State of
Nevada. The investments and risks authorized by NRS 355.170 relevant to District investments are as
follows:
•
Bonds, debentures, bills, and notes of the United States (U.S.), the maturity dates of which are not
more than ten years after the date of purchase.
•
Farm loan bonds, consolidated farm loan bonds, debentures, consolidated debentures and other
obligations issued by federal land banks and federal intermediate credit banks under the authority of
the Federal Farm Loan Act and bonds debentures, consolidated debentures and other obligations
issued by banks for cooperatives under the authority of the Farm Credit Act of 1933.
•
Obligations of an agency or instrumentalities of the U.S. or a corporation sponsored by the
government, the maturity dates of which are not to exceed ten years after the date of purchase.
45
•
Negotiable certificates of deposit (CDs) issued by commercial banks, insured credit unions, or savings
and loan associations. Credit quality ratings and percentage allowed of total investments are not
specified.
•
Non-negotiable CDs issued by insured commercial banks, insured credit unions, or insured savings
and loan associations, except certificates that are not within the limit of insurance provided by an
instrumentality of the U.S. unless those certificates are appropriately collateralized.
•
Negotiable notes medium-term obligations issued by local governments of the State of Nevada.
•
Obligations of state and local governments if (1) the interest on the obligation is exempt from gross
income for federal income tax purposes and (2) the obligation has been rated “A” or higher by one or
more nationally recognized bond credit rating agencies.
•
Commercial paper issued by a corporation organized and operating in the U.S. or by a depository
institution licensed by the U.S. or any state and operating in the U.S. that (1) is purchased from a
registered broker-dealer; (2) has a remaining term to maturity at the time of purchase of no more than
270 days; and (3) is rated by a nationally recognized rating service as “A-l,” “P-l” or its equivalent, or
better, except that investments in commercial paper may not, in aggregate value, exceed 20% of the
total portfolio as determined on the date of purchase. If the rating of the obligation is reduced to a
level that does not meet the requirements, it must be sold as soon as possible.
•
Obligations of the Federal Agricultural Mortgage Corporation.
The District’s investments were as follows:
Estimated Fair Value
June 30, 2015
June 30, 2014
$ 112,251,310
$ 74,295,927
92,943,087
74,506,062
6,042,240
4,961,050
1,081,100
3,158,001
720,580
3,362,153
$ 217,999,367
$ 155,322,143
Investment Type
U.S. Treasury Notes
U.S. Agency Non-Callable Bonds
U.S. Agency Discount Notes
U.S. Agency Callable Bonds
Municipal Bonds
Negotiable CDs
Total Investments
Credit Risk
As of June 30, 2015, the District’s investment ratings and estimated fair values were as follows:
Investment Type
U.S. Agency Callable Bonds
Municipal Bonds
Negotiable CDs
S&P
AA+
Unrated
AA+
Unrated
Unrated
Moody’s
Aaa
Unrated
Aaa
Aa1
Unrated
Fair Value
$92,943,087
6,042,240
4,961,050
1,081,100
720,580
As of June 30, 2014, the District’s investment ratings and estimated fair values were as follows:
Investment Type
Municipal Bonds
Municipal Bonds
Negotiable CDs
S&P
AA+
AAUnrated
Unrated
Moody’s
Aaa
A1
A2
Unrated
46
Fair Value
$74,506,062
2,049,001
1,109,000
3,362,153
Concentration of Credit Risk
As of June 30, 2015, the following investments individually comprise 5% or more of the District’s total
investment portfolio (excluding the pension fund).
Percentage of
Issuer
Investment Type
Investments
Federal Home Loan Bank
26%
Federal National Mortgage Association
13%
Federal Home Loan Mortgage Corporation
6%
As of June 30, 2014, the following investments individually comprise 5% or more of the District’s total
investment portfolio (excluding the pension fund).
Percentage of
Issuer
Investment Type
Investments
Federal National Mortgage Association
36%
Federal Home Loan Mortgage Corporation
8%
Interest Rate Risk
As of June 30, 2015, the District’s investments were as follows:
Investment Type
U.S. Treasury Notes
U.S Agency Callable Bonds
Municipal Bonds
Negotiable CDs
Total Fair Value
Portfolio Weighted Average Maturity
Fair Value
$112,251,310
92,943,087
6,042,240
4,961,050
1,081,100
720,580
$217,999,367
Weighted Average
Maturity (Days)
501
485
416
1,674
1,080
112
520
As of June 30, 2014, the District’s investments were as follows:
Investment Type
U.S. Treasury Notes
Municipal Bonds
Negotiable CDs
Total Fair Value
Portfolio Weighted Average Maturity
Fair Value
$74,295,927
74,506,062
3,158,001
3,362,153
$155,322,143
Weighted Average
Maturity (Days)
681
308
1,425
208
506
The District’s policy related to interest rate risk is:
a. In order to ensure liquidity and to provide for the District’s cash flow needs, 5 percent of the District’s
investment portfolio must mature within 90 days.
b. The average weighted duration of the District’s investment portfolio will not exceed 2.5 years.
NOTE 10. RISK MANAGEMENT
The District is exposed to a variety of risks that may result in losses. These risks include possible losses
related to torts; theft of, damage, or destruction of assets; extra expense; errors and omissions; job-related
illnesses or injuries to employees; product liability claims; and natural disasters. The District manages these
47
risks through a multifaceted approach, which includes transfer, elimination, avoidance, reduction, and/or
assumption of risk of loss.
The District purchases insurance from the commercial insurance market on real and personal property,
including earthquake and flood, with common policy restrictions covering direct physical loss of, or damage
to, buildings, fixtures, equipment, boilers, machinery, and supplies. The blanket limit of liability under the
property insurance program is $500.0 million with a deductible of $1.0 million for all locations except
earthquake and flood which has a limit of $100.0 million and $50.0 million respectively and a deductible of
$0.1 million. This program also provides terrorism insurance for all locations with a blanket limit of $500.0
million for all terrorist acts. The District self-insures the first $1.0 million for automobile and general liability
exposure and purchases excess liability insurance in the amount of $30.0 million. Employee fidelity insurance
in the amount of $3.0 million and other miscellaneous coverage are also purchased. For the fiscal year ended
June 30, 2015, the District had no significant reductions in insurance coverage from the prior fiscal year.
In contracts, the District obtains indemnification and hold harmless agreements. These agreements require
that contractors name the District as an additional insured under the indemnitor’s insurance coverage, usually
in the amount of $1.0 million to $10.0 million for commercial general and automobile liability insurance. The
District provides builders risk insurance for all construction projects with a blanket limit of $500.0 million per
contract, with a $50,000 deductible per occurrence, except earthquake and flood where the deductible is $0.5
million per occurrence. This coverage is included under the property insurance policy.
GASB Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance
Issues, requires that for retained risks, a liability for claims be reported if information available prior to
issuance of the financial statements indicates it is probable that a liability has been incurred at the date of the
financial statements and the amount of the loss can be reasonably estimated. As of June 30, 2015, the District
has no significant retained risks and therefore has no accrued liability for retained risks. In addition, there are
also situations in which incidents occur before the balance sheet date, but claims are not reported or asserted
when the financial statements are prepared. These incurred but not reported claims have been estimated based
upon the District’s past experience and adjusted for current trends. A summary is provided in the table below.
During fiscal years 2015 and 2014, changes in the balance of claims for retained risks were as follows
(rounded to the nearest thousand):
Fiscal Year
Beginning of fiscal
year liability
2015
2014
$2,073,000
2,348,000
Current Year Claims
and changes in
estimates
$737,000
1,061,000
Claim Payments
Balance at fiscal
year end
($881,000)
($1,336,000)
$1,929,000
2,073,000
NOTE 11. CAPITAL CONTRIBUTIONS
For the fiscal years ended June 30, 2015 and 2014, capital contributions, excluding unearned revenue, are as
follows:
2015
2014
Mains and Services
Facilities Connection Charges, net of refunds
Oversizing Charges, net of refunds
Springs Preserve
Frontage Connection Charges
Fees and Other Contributions
Total
48
$ 12,776,292
17,657,015
2,913,220
410,305
674,136
95,174
$34,526,142
$ 13,663,185
11,049,850
1,897,190
1,888,592
431,562
1,765,472
$30,695,851
Probable future refunds have been estimated and recorded as a component of unearned revenue. (See Note 6,
Unearned Revenue).
NOTE 12.
RELATED PARTY TRANSACTIONS
Southern Nevada Water Authority (SNWA)
In 1991, the District joined with other local governmental entities to form the SNWA (see Note 7), defined by
Nevada law as a political subdivision of the State of Nevada. By GASB definition, the SNWA is a joint
venture. The District is confident that the amounts related to debt secured by SNWA pledged revenue (Notes
3 and 4) are collectible.
Besides being a member of the SNWA, the District is its operating agent. Beginning in fiscal year 2009, the
SNWA advanced funds to the District for expenditures to be made on its behalf. The District credits the
SNWA interest on the monthly average advance balance at the District’s current investment earnings rate. The
advance balance at June 30, 2015 and at June 30, 2014, was $7.3 million and $8.6 million respectively.
The District has allocated to and recorded $63.1 million at June 30, 2015 and $0 at June 30, 2014 as a
noncurrent receivable from the SNWA for net pension liability (Note 16) for District employees devoted to
SNWA operations. The District has allocated to and recorded $4.7 million at June 30, 2015 and $4.3 million
at June 30, 2014 as a noncurrent receivable from the SNWA for postemployment benefits, other than pensions
(Note 14), for District employees devoted to SNWA operations. The District is confident that the amounts are
collectible.
Springs Preserve
In 1998, the District entered into a partnership with the Las Vegas Springs Preserve Foundation, a tax-exempt
charitable organization founded to provide funding for the Springs Preserve. The Springs Preserve is a
cultural and historic attraction located on District property. The 180-acre national historic site is widely
known as the “birthplace” of Las Vegas. The presence of an abundant water supply at the site was the original
catalyst for the growth, development, and the resulting economic prosperity of the Las Vegas Valley. The
Springs Preserve opened in June 2007.
Besides investing its own funds toward the Springs Preserve, the District has expended funds that have been
or will be reimbursed by the State and by others through grants and gifts. The unreimbursed portion at June
30, 2015 was $147,356, and at June 30, 2014 was $88,209.
Big Bend Water District
On September 2, 2008, the District became the operating agent for the Big Bend Water District (BBWD),
located in Laughlin, Nevada, 95 miles south of Las Vegas. The BBWD is a general improvement district and
a political subdivision of the State of Nevada. It is also a member agency of the SNWA. The BBWD is
governed by a seven-member Board of Trustees whose members also serve as the Board of Clark County
Commissioners.
The District has allocated to and recorded $1.3 million at June 30, 2015 and $0 at June 30, 2014 as a
noncurrent receivable from the BBWD for net pension liability (Note 16) for District employees devoted to
BBWD operations. The District is confident that the amounts are collectible.
49
NOTE 13. COMMITMENTS AND CONTINGENCIES
The District is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
determinable, it is the opinion of management and the District's general counsel that the resolution of these
matters will not have a material adverse effect on the future financial condition, results of operations or cash
flows of the District.
At June 30, 2015 and 2014, commitments for unperformed work on outstanding contracts totaled $14.5
million and $15.3 million, respectively.
Forward Energy Contracts
The District and the SNWA actively manage a portfolio of energy resources. The agencies adhere to a strict
set of energy risk management procedures established by a Risk Management Committee that serves to fulfill
the Energy Risk Management Policy adopted by the District's Board.
To provide energy at a known and budgeted cost, the District has entered into forward energy contracts with
the SNWA. Because Las Vegas is at a higher elevation than its principal major water supply, reliable
electrical service is essential to the District's ability to deliver water. To better manage energy reliability and
costs, the District manages a significant portion of its energy supply, rather than purchasing energy from the
local regulated investor-owned utilities under tariff rates approved by the Nevada Public Utilities
Commission.
The portfolio exists solely for the purpose of providing the District's projected energy requirements through
December 2019, at a known and budgetable cost, while incorporating renewable energy where appropriate.
Under current accounting standards, these forward energy contracts, for which the District neither paid nor
was paid anything at inception, are accounted for as "normal purchases and normal sales" contracts and not as
investments. The primary risks associated with these forward energy contracts are counter-party credit and
termination risks. Currently, there is no intent to terminate these contracts with offsetting contracts. As of June
30, 2015, the District had commitments totaling $17.2 million related to its forward energy contracts. As of
June 30, 2014, the District had commitments totaling $17.0 million related to its forward energy contracts.
Arbitrage Rebate Requirement
The federal Tax Reform Act of 1986 imposes a rebate requirement with respect to some bonds issued by the
District. Under this Act, an amount may be required to be rebated to the United States Treasury (called
“arbitrage”) for interest on the bonds to qualify for exclusion from gross income for federal income tax
purposes. Rebatable arbitrage is computed as of each installment computation date. The arbitrage rebate
calculation as of the most recent such date indicates that no amount is due. Future calculations might result in
adjustments to this determination.
Operating Lease
The District entered into a sublease agreement with the SNWA for office space and parking for a term of no
longer than 20 years, commencing September 1, 2007. The lease agreement includes the right to sublease and
a purchase option. In December 2007, the SNWA purchased part of the premises, including part of the
premises subleased to the District. Under the terms of the sublease agreement, the sublease will continue as a
lease on any space purchased by the SNWA as long as the space is not needed by the SNWA. The sublease
agreement may be terminated by the SNWA if breached by the District. Cancellation of the sublease at any
time by the District is not prohibited.
The sublease agreement provides for the District to sublease about 34,000 square feet of office space with an
option to sublease up to an additional 16,000 square feet. During fiscal years 2015 and 2014, the District
50
occupied about 36,000 square feet of the office space for a total cost of $1.6 million in fiscal years 2015 and
2014.
The sublease agreement contains provisions for contingent rentals (rentals in which amounts are dependent
upon some factor other than the passage of time). The District is responsible for paying, and does pay $11,406
monthly, for the amortized value of tenant improvements during the time that the improved space is occupied
by the District. Should the SNWA assign designated parking spaces to the District, the District will pay to the
SNWA an additional $75.00 per space per month for each such parking space designated. The District had no
contingent rental expenditures in fiscal years 2015 and 2014.
The District must comply with all applicable and appropriate provisions of the lease and will take no action or
fail to act in such a way that would cause the SNWA to be in breach of any provision, rule or regulation of the
lease agreement. Further, the District shall not enter into any assignments or subleases of the premises without
the written consent of the SNWA.
Following is a schedule by fiscal year of estimated future minimum rental payments under the sublease:
2016
2017
2018
2019
2020
Later years
Total
$ 1,564,881
1,564,881
1,564,881
1,564,881
1,564,881
11,214,982
$19,039,387
NOTE 14. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)
From the accrual accounting perspective, the cost of postemployment healthcare benefits, like the cost of
pension benefits, generally should be associated with the periods in which the costs occur rather than in future
years when it will be paid. Following the requirements of GASB Statement No. 45, Accounting and Financial
Reporting by Employers for Postemployment Benefits Other than Pensions (GASB Statement No. 45), the
District recognizes the cost of postemployment healthcare in the year when the employee services are received
by reporting the accumulated liability from the prior years and providing useful information in assessing
potential demands on the District’s future cash flows.
Plan Description
The District contributes to a single-employer defined benefit “other postemployment benefit plan” (OPEB
plan) as explained below. Benefit provisions are established and may be amended by the District’s Board
subject to collective bargaining agreements. Unlike the pension plan (Note 16), the OPEB plan is administered
by the District and not by a trust or equivalent arrangement. The OPEB plan does not issue a stand-alone
financial report.
Under the OPEB plan, the District pays 100% of life insurance and group health insurance premiums for
eligible retirees and 85% for their dependents until the retirees become eligible for Medicare. The District’s
insurance provider (Clark County) charges the District the same premiums for retirees who are not yet eligible
for Medicare as for active employees. Therefore, the retiree premium rates are subsidized by the inclusion of
current employees in setting rates.
Funding Policy
Subject to collective bargaining agreements, the contribution requirements of plan members and the District
are established and may be amended by the District’s Board. There are no legal or contractual maximum
51
contribution rates. The required contribution is based on pay-as-you-go financing requirements. For fiscal year
2015, actuarial projected age-adjusted premiums totaled $1.7 million. Retirees receiving benefits contributed
$57,684, approximately 3%, resulting in District contributions of $1.6 million.
The District’s annual OPEB cost (expense) is calculated based on the annual required contribution (ARC), an
amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal costs each year
and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.
For the fiscal year ended June 30, 2015, the following table shows the components of the District’s annual
OPEB cost (expense) for the year, the amount contributed to the plan and changes in the District’s net OPEB
obligation.
Annual Required Contribution (ARC)
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost
Contributions made
Increase in net OPEB obligation
Net OPEB obligation, beginning of the year
Net OPEB obligation, end of the year
$3,242,492
549,053
(763,265)
3,028,280
(1,609,973)
1,418,307
13,726,324
$15,144,631
The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for the three most recent fiscal years are shown below.
Fiscal
Year
2015
2014
2013
Percentage of
Annual OPEB
Cost Contributed
53.2%
37.2%
30.7%
Annual
OPEB Cost
$ 3,028,280
2,819,328
3,217,826
Net
OPEB
Obligation
$15,144,631
13,726,324
11,956,155
Funded Status and Funding Progress
As of July 1, 2014, the most recent actuarial valuation date, the plan was zero percent funded. The actuarial
accrued liability for benefits was $28.4 million and the actuarial value of assets was $0, resulting in an
unfunded actuarial accrued liability (UAAL) of $28.4 million. The covered payroll (annual payroll of active
employees covered by the plan) was $112.9 million and the ratio of the UAAL to the covered payroll was
25.1%.
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability
of occurrence of events far into the future. Examples include assumptions about future employment, mortality
and healthcare costs. Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The schedule of funding progress, presented as
required supplementary information (RSI) immediately following the notes to the financial statements, will
present in subsequent years, as additional valuations are obtained, multiyear trend information about whether
the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability
for benefits. The reference to the schedule of funding progress presented as RSI does not represent or imply
incorporation of the schedule into the notes to the basic financial statements.
52
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to
that point. The actuarial methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with
the long-term perspective of the calculations.
In the July 1, 2014 actuarial valuation, the Projected Unit Credit Cost Method was used. Under this method,
the actuarial present value of projected benefits is the value of benefits expected to be paid for current
employees and retirees. The economic assumptions include a 4.00% discount rate (unfunded), based on the
expected long-term investment return on the District’s assets and an initial healthcare inflation rate of 7.00%,
grading down over 56 years to an ultimate rate of 4.50%. Both rates assume a 2.50% inflation assumption.
The Actuarial Accrued Liability (AAL) is the actuarial present value of benefits attributed to employee service
rendered prior to the valuation date. The AAL equals the present value of benefits multiplied by a fraction
equal to service to date over service at expected retirement. The Normal Cost is the actuarial present value of
benefits attributed to one year of service. This equals the present value of benefits divided by service at
expected retirement. Since retirees are not accruing any more service, their normal cost is zero. In determining
the ARC, the Unfunded Actuarial Accrued Liability (UAAL) is amortized as a level dollar amount over 30
years on an open period. At June 30, 2015, the remaining amortization period is 30 years.
Insured Benefit
GASB Statement No. 45 defines an insured benefit as an OPEB financing arrangement whereby an employer
pays premiums to an insurance company, while employees are in active service, in return for which the
insurance company unconditionally undertakes an obligation to pay the postemployment benefits of those
employees or their beneficiaries, as defined in the employer’s plan. Insured benefits are excluded from the
calculation of annual OPEB cost and the net OPEB obligation.
The District provides long-term disability benefits for totally or partially disabled employees earning less than
20% of their indexed total monthly earnings by paying premiums to an insurer while the employees are in
active service for covered events that occur during the premium period. Generally, benefits are paid only to
totally disabled-separated employees.
Subject to collective bargaining agreements, benefit provisions are established and may be amended by the
District’s Board. The obligation to pay the benefits has been effectively transferred from the District to an
insurance company. The District has not guaranteed benefits in the event of the insurance company’s
insolvency. For fiscal years 2015 and 2014, the District paid premiums of $0.5 million and $0.5 million,
respectively.
NOTE 15. TERMINATION BENEFITS
GASB Statement No. 47, Accounting for Termination Benefits, requires accrual of termination benefits if an
offer for voluntary termination benefits is accepted or a plan for involuntary termination has been approved.
During fiscal year 2015, the District offered a voluntary separation plan for regular full-time or part-time
employees who had at least 15 years of service and were eligible to retire with a full or reduced pension
benefit. These employees were eligible to receive an incentive equal to 25% of their accrued disability leave
at retirement if application were made prior to May 1, 2015, and the desired date of retirement was by June
30, 2015. The District reserved the right to approve exceptions to the criteria. Since eligible terminating
53
employees normally receive 75% of unused disability leave, employees retiring under the voluntary separation
plan received 100%.
During fiscal year 2015, the District paid $432,790 in voluntary separation benefits to 37 employees. Because
the liability for disability leave is already accrued at 100%, no additional accrual was necessary at June 30,
2015.
During fiscal year 2014, the District paid $392,340 in voluntary separation benefits to 28 employees.
The voluntary separation plan will not be offered during fiscal year 2016.
NOTE 16. DEFINED BENEFIT PENSION PLAN
Plan Description
The District contributes to the Las Vegas Valley Water District Pension Plan (Plan), a single-employer
defined benefit pension trust fund established by the District to provide pension benefits solely for the
employees of the District. A Board of Trustees, comprised of the District’s Board, has the authority to
establish and amend the benefit provisions of the Plan and the contribution requirements of the District and its
employees. Employee contributions are not required or permitted, except under certain conditions in which
employees may purchase additional years of service for eligibility and increased benefits. During fiscal years
2015 and 2014, employee contributions for this purpose were $1.6 million and $0.6 million, respectively.
The Plan was amended effective February 15, 2005, to provide the following: (1) Increase the annual service
credit of 2.00% to 2.17% for years of service after July 1, 2001 (service credit is the accumulation of pension
plan years an employee was in paid status at the District); (2) change the benefit formula to increase the
calculation of highest average pay by 50.00% of the employer contribution rate charged by Nevada PERS to
employers who pay the full contribution rate, as prescribed in the Nevada Revised Statutes; and (3) add shift
differential and standby pay to the total compensation counted toward the pension benefit.
Other than cost of living adjustments, the Plan does not provide ad hoc postretirement benefit increases nor
does it administer postemployment healthcare plans. The Plan does not issue a stand-alone financial report.
All District employees are eligible to participate in the Plan after attaining age 20 and completing six months
of employment. Subject to a maximum pension benefit, normally 60.00% of average monthly compensation,
District employees who retire at age 65 are entitled to an annual retirement benefit, payable monthly for life,
of an amount equal to 2.00% of their average monthly compensation multiplied for the years of service prior
to July 1, 2001, and 2.17% of their average monthly compensation multiplied for the years of service after
July 1, 2001. For the purposes of calculating the pension benefit, average monthly compensation means the
average of a member’s 36 consecutive months of highest compensation, after excluding certain elements,
times 50.00% of the employer contribution rate charged by Nevada PERS to employers who pay the full
contribution rate that is in effect for the 36 consecutive months of highest compensation, while participating in
the Plan.
For participants in the plan prior to January 1, 2001, benefits start to vest after three years of service with a
20.00% vested interest. The benefit increases to 40.00% after four years of service and 100.00% after five
years of service. New participants after January 1, 2001 start to vest at 5 years of service, at which time they
are vested 100.00%. The Plan also provides for early retirement and pre-retirement death benefits. The Plan is
not subject to the Employee Retirement Income Security Act (ERISA) of 1974, but is operated consistent with
ERISA fiduciary requirements.
54
For employees on or after January 1, 2001, benefits are increased after retirement by cost of living
adjustments that become effective on the first month following the anniversary of benefit commencement
according to the following schedule:
0.00%
2.00%
3.00%
3.50%
4.00%
5.00%
following the 1st, 2nd and 3rd anniversaries
following the 4th, 5th and 6th anniversaries
following the 13th and 14th anniversaries
following each anniversary thereafter
However, if the benefit amount at the time of an increase is at least or equal to the original benefit amount
multiplied by cumulative inflation since retirement, as measured by the increase in the Consumer Price Index
(All Items), then the increase cannot exceed the average rate of inflation for the three proceeding years.
The District contributes amounts actuarially determined necessary to fund the Plan to pay benefits when due,
and to provide an allowance sufficient to finance the administrative costs of the Plan. Contributions cannot
revert to or be revoked by the District or be used for any purpose other than the exclusive benefit of the
participants.
At June 30, 2015 and 2014, participants in the plan consist of the following:
2015
Participant Count
- Retirees in pay status with unpurchased benefits
- Terminated employees not yet receiving benefits
- Retirees paid monthly from plan
- Active employees
- fully vested
- nonvested
2014
317
377
142
1,090
80
318
395
33
1,170
76
- Total Active Employees
1,170
1,246
- Total Participants
2,006
1,992
Basis of Accounting
The financial statements of the Plan are prepared using the accrual basis of accounting. Employer
contributions are recognized when due. Participants do not make contributions except voluntarily under
certain conditions to purchase additional years of service. Participant contributions are non-refundable.
Allocated Insurance Contracts
Through December 31, 2013, benefit obligations were recognized and paid when due by purchasing annuity
contracts from a life insurance company with a financial strength rating of A++ by A.M. Best rating company.
Beginning January 1, 2014, benefit obligations are paid by the Plan through a large multi-national bank. Cost
of living adjustments for benefit obligations that were initially paid by purchasing annuity contracts from a
life insurance company continue to be paid by purchasing additional annuity contracts from a life insurance
company. The costs to purchase annuity contracts from a life insurance company for benefit obligations or
cost of living adjustments were $2.7 million and $8.4 million for the years ended June 30, 2015 and June 30,
2014, respectively. The obligation for the payment of benefits covered by these annuity contracts have been
transferred to a life insurance company and are excluded from the Plan assets.
Method Used to Value Investments
The domestic equity, international equity, domestic bond, global real estate investment trust (REIT) and
money market accounts are stated at fair value, measured by the underlying market value as reported by the
55
managing institutions. Investments at contract value are insurance contracts and pooled accounts, stated at
contract value as determined by the insurance companies in accordance with the terms of the contracts.
Actuarially Determined Contribution
The District’s policy is to pay the current year’s actuarially determined contribution when due. This amount
was $28.9 million and $30.7 million for the years ended June 30, 2015, and June 30, 2014, respectively.
Net Pension Liability
The total pension liability was determined by an actuarial valuation as of the valuation date, calculated based
upon the discount rate and actuarial assumptions listed below. The total pension liability was then projected
forward to the measurement date taking into account any significant changes between the valuation date and
the fiscal year end. The liabilities are calculated using a discount rate that is a blend of the expected
investment rate of return and a high quality bond index rate. The expected investment rate of return applies
for as long as the Plan assets (including future contributions) are projected to be sufficient to make the
projected benefit payments. If Plan assets are projected to be depleted at some point in the future, the rate of
return of a high quality bond index is used for the period after the depletion date. The disclosures below
exclude assets and liabilities held with a life insurance company, which provides benefits for retirees or their
beneficiaries whose benefits were purchased with annuity contracts from the life insurance company.
The components of net pension liability are:
As of
June 30, 2015
$480,743,435
309,316,943
$171,426,492
64.34%
As of
June 30, 2014
$441,508,189
273,876,159
$167,632,030
62.03%
Covered Payroll
Net Pension Liability as a % of Covered Payroll
$112,917,601
151.82%
$121,696,965
137.75%
Valuation Date
Measurement Date
GASB No. 67 Reporting Date
June 30, 2014
June 30, 2015
June 30, 2015
June 30, 2013
June 30, 2013
June 30, 2014
None
7.25%
7.25%
N/A
None
7.25%
7.25%
N/A
Total Pension Liability
Fiduciary Net Position
Fiduciary Net Position as a % of Total Pension Liability
Depletion Date
Discount Rate
Expected Rate of Return, Net of Investment Expenses
Municipal Bond Rate
If the assets and liabilities for retirees or their beneficiaries whose benefits were purchased with annuity
contracts from a life insurance company were included with the Plan assets:
As of
As of
June 30, 2015
June 30, 2014
73.88%
72.99%
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability calculated using the discount rate of 7.25%, as well as what
the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower
(6.25%) and 1 percentage point higher (8.25%) than the current rate.
56
As of June 30, 2015
1% Decrease
Discount
In Discount Rate
Rate
6.25%
7.25%
$559,389,845
$480,743,435
309,316,943
309,316,943
$250,072,902
$171,426,492
Sensitivity Analysis
Total Pension Liability
Fiduciary Net Position
1% Increase
In Discount Rate
8.25%
$415,784,106
309,316,943
$106,467,163
Actuarial Assumptions
Actuarial cost method
Amortization method
Remaining amortization period
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
Entry age.
30 year amortization of unfunded liability (closed period) as a level
percent of pay, using layered bases starting July 1, 2009.
24 years for the initial unfunded liability base established July 1,
2009. Bases established between July 1, 2010 and July 1, 2014 have
remaining amortization periods ranging from 25 to 29 years.
2.75% per year.
4.75% per year, including inflation.
7.25%, net of pension plan investment expenses, including inflation.
Normal retirement age is attainment of age 65. Unreduced early
retirement is available after either 1) 30 years of service, or 2) age 60
with 10 years of service. Reduced early retirement benefits are
available after attainment of age 55 and completion of 5 years of
service (3 years of service if a participant prior to January 1, 2001).
Future mortality follows the 1994 Group Annuity Mortality Basic
table projected to 2004 using Scale AA.
Changes in Net Pension Liability
Balance as of June 30, 2014
Service Cost
Interest on the Total Pension Liability
Changes in Benefit Terms
Differences between Actual and Expected
Experience with regard to Economic or
Demographic Factors
Changes of Assumptions
Contributions from Employer
Purchase of Service Payments
Net Investment Income
Benefit Payments
Administration Expense
Total Changes
Balance as of June 30, 2015
Total Pension
Liability
$441,508,189
Fiscal Year Ending
June 30, 2015
Increase/Decrease
Plan Fiduciary
Net Position
$273,876,159
Net Pension
Liability
$167,632,030
17,189,921
32,672,891
-
17,189,921
32,672,891
(3,995,933)
-
(3,995,933)
39,235,246
28,853,341
1,595,551
13,589,116
(8,227,184)
(370,040)
35,440,784
(28,853,341)
(13,589,116)
370,040
3,794,462
$480,743,435
$309,316,943
$171,426,492
1,595,551
(8,227,184)
57
Pension Expense
Total employer pension expense was $30.5 million for the fiscal year ended June 30, 2015 and $28.9 million
for the fiscal year ended June 30, 2014.
Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2015, the District reported the following deferred inflows of resources and deferred outflows of
resources related to pensions:
As of June 30, 2015
Deferred Inflows
Deferred Outflows
of Resources
of Resources
Differences between Expected and
Actual Experience
Net Difference between Projected and
Actual Earnings
Contributions Made Subsequent to
Measure Date
Total
$ (3,448,545)
-
$
-
-
5,636,135
$ (3,448,545)
$ 5,636,135
Amounts currently reported as deferred inflows of resources and deferred outflows of resources related to
pensions will be recognized as follows:
Recognized Deferred
Inflows/Outflows
$861,646
861,646
861,646
861,646
(547,388)
(711,605)
Fiscal Year Ending June 30
2016
2017
2018
2019
2020
Thereafter
Investment Rate of Return
Asset Class
Large Cap U.S. Equities
Mid Cap U.S. Equities
Small Cap U.S. Equities
International Developed Equities
Emerging Market Equities
Core Fixed Income
High Yield Bonds
REITs
Cash
Expected
Nominal Return
8.39%
9.14%
10.12%
8.79%
11.64%
4.84%
6.79%
8.35%
3.26%
Expected Average Return (1 year)
Expected Geometric Average Return
(30 years)
Target Asset
Allocation
38.00%
8.00%
8.00%
12.00%
2.00%
21.00%
6.00%
3.00%
2.00%
7.76%
6.91%
58
The expected geometric average return over 30 years is less than the expected 1 year return due to expected
deviations each year from the average which, due to the compounding effect, lower long term returns.
Pension Investments
Management believes the District’s pension investment policy conforms to the District’s enabling act which
requires the District to follow the “prudent person” rule, i.e., invest with discretion, care and intelligence. The
investment policy does not specify credit quality ratings or maturities except that investments must be those
that are allowed by law and those that the investment managers are trained and competent to handle.
To diversify investment risk, the District’s investment policy currently limits pension plan investments as
follows:
Investment Type
Cash and Cash Equivalents
Fixed-Income Securities
Equity Securities
Global REIT
Percent of Portfolio
2%
+/- 2%
27%
+/- 10%
68%
+/- 10%
3%
+/- 3%
At June 30, 2015, the Pension Trust Fund had the following investments (includes contract investments at
contract value; carrying value excludes accrued interest):
Investment Type
Equity Securities
Fixed Income Securities
Global REIT
Total
Carrying Value
$
2,175,209
217,025,548
80,582,272
9,475,218
$ 309,258,247
Percent
of Total
0.70%
70.20%
26.00%
3.10%
100.00%
Investment
Money Market Fund
Maturities
Weighted Average 20 days
Carrying Value
$
1,727,444
Money Market Fund
447,765
U.S. Equity Securities1
N/A
173,214,365
International Equity Securities
N/A
43,811,183
U.S. Fixed Income Securities
Weighted Average 7.9 years
59,386,168
High Yield Fixed Income Securities
17,919,280
Global REIT
N/A
9,475,218
Union Central Life Ins. Co. Contract
Open
1,726,076
New York Life Ins. Co. Contract
Open
1,550,748
Total
$ 309,258,247
1
This investment category includes approximately 69.80% large cap and 30.20% small and mid-cap domestic
equity investments.
59
At June 30, 2014, the Pension Trust Fund had the following investments (includes contract investments at
contract value; carrying value excludes accrued interest):
Investment Type
Equity Securities
Fixed Income Securities
Global REIT
Total
Percent
of Total
0.40%
69.80%
26.70%
3.10%
100.00%
Carrying Value
$
1,200,357
191,241,308
73,083,592
8,343,261
$273,868,518
Investment
Money Market Fund
Maturities
Carrying Value
$
897,938
Money Market Fund
302,419
U.S. Equity Securities1
N/A
151,247,407
International Equity Securities
N/A
39,993,901
U.S. Fixed Income Securities
54,766,270
High Yield Fixed Income Securities
16,375,708
Global REIT
N/A
8,343,261
Union Central Life Ins. Co. Contract
Open
1,671,659
New York Life Ins. Co. Contract
Open
269,955
Total
$ 273,868,518
1
This investment category includes approximately 69.70% large cap and 30.30% small and mid-cap domestic
equity investments.
Credit Exposure As a Percentage of Total Fixed-Income Investments
Domestic Bond Fund
High Yield Bond Fund
Contracts
2015
73.70%
22.20%
4.10%
2014
74.90%
22.40%
2.70%
Credit Quality of Fixed Income Investments
The pension fund fixed-income investments are in insurance company contracts, a domestic bond fund and a
high yield bond fund. The insurance company contracts are not rated by credit rating agencies. The managing
institution of the domestic bond fund reports an average quality rating of AA1/AA2 at June 30, 2015 and at
June 30, 2014 for the underlying securities. The managing institution of the high yield bond fund reports an
average quality rating of B1 at June 30, 2015 and at June 30, 2014 for the underlying securities.
60
Credit Quality of Money Market Funds
One of the Plan’s money market funds reports ratings of AAAm by Standard & Poors and Aaa-mf by
Moody’s, at June 30, 2015 and at June 30, 2014. The other money market account fund was not rated by
either Standard & Poors or Moody’s at June 30, 2015 or June 30, 2014.
Concentration of Credit Risk – Excluding Money Market and Mutual Funds
The pension investment policy does not restrict the amount that may be invested with any one issuer as long
as the prudent person rule is followed. Excluding the money market, equity, bond and REIT funds, no
investment comprised more than 5% of the pension trust investments at June 30, 2015 and at June 30, 2014.
Rate of Return
For the year ended June 30, 2015, the annual money-weighted rate of return on pension plan investments, net
of pension plan investment expense, was 4.54%. For the year ended June 30, 2014, the annual moneyweighted rate of return on pension plan investments, net of pension plan investment expense, was 15.99%.
The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for
the changing amounts actually invested.
NOTE 17. SUBSEQUENT EVENTS
On October 6, 2015, the Las Vegas Valley Water District’s (District) Board of Directors approved a resolution
requesting the Clark County Debt Management Commission (DMC) to convene to consider the District’s
proposal to authorize the issuance of general obligation bonds secured by Southern Nevada Water Authority
(Authority) revenues in one or more series in an aggregate principal amount not to exceed $520,000,000. The
proposed bonds will be issued for the purpose of financing the costs of acquiring and
constructing improvements for water projects for the Authority. The DMC met in November 2015 and
approved the resolution.
61
THIS PAGE LEFT
INTENTIONALLY BLANK
Required
Supplementary
Information
REQUIRED SUPPLEMENTARY INFORMATION
Schedule B-1
SCHEDULE OF CHANGES IN NET PENSION LIABILITY
LAST TEN FISCAL YEARS
(Unaudited)
Total Pension Liability - Beginning of Year
Service Cost
Interest on the Total Pension Liability
Changes of Benefit Terms
Differences between Actual and Expected Experience
with regard to Economic or Demographic Factors
Benefit Payments
Total Changes
2015
$ 441,508,189
2014
401,160,155
2013
n/a
2012
n/a
2011
n/a
2010
n/a
2009
n/a
2008
n/a
2007
n/a
2006
n/a
17,189,921
1,595,551
32,672,891
-
18,670,779
599,685
30,115,838
-
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
(3,995,933)
(8,227,184)
39,235,246
(9,038,268)
40,348,034
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
$
62
Total Pension Liability - End of Year
$ 480,743,435
$
441,508,189
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Fiduciary Net Position - Beginning of Year
$ 273,876,159
$
213,998,078
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Contributions from Employer
Net Investment Income
Benefit Payments
Administrative Expenses
Total Changes
28,853,341
1,595,551
13,589,116
(8,227,184)
(370,040)
35,440,784
30,700,443
599,685
37,893,540
(9,038,268)
(277,319)
59,878,081
Fiduciary Net Position - End of Year
$ 309,316,943
$
273,876,159
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
$ 171,426,492
$
167,632,030
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Covered Employee Payroll
Net Pension Liability as a % of Covered Employee Payroll
64.34%
$ 112,917,601
151.82%
62.03%
$
121,696,965
137.75%
The required supplementary information is presented for fiscal years 2015 and 2014, for which information measured in conformity with the requirements of GASB No. 67 is available.
This schedule will ultimately present information for the last 10 fiscal years.
SCHEDULE OF DEFINED BENEFIT PLAN CONTRIBUTIONS
(Unaudited)
Schedule B-2
Plan Year
Ending
June 30
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Actuarially
Determined
Contribution
$
28,853,341
30,700,443
29,058,894
26,721,710
26,606,950
25,753,794
27,262,106
23,587,076
22,040,681
18,913,372
Actual
Employer
Contribution
$
28,853,341
30,700,443
29,058,894
26,721,710
26,606,950
25,753,794
27,262,106
23,587,076
22,040,681
18,913,372
Contribution
Deficiency
(Excess)
$
-
Covered
Payroll
$ 112,917,601
121,696,965
119,067,304
117,220,320
119,663,339
122,006,497
111,054,552
97,880,824
86,960,597
76,673,296
Contribution
as a % of
Covered Payroll
25.55%
25.23%
24.41%
22.80%
22.23%
21.11%
24.55%
24.10%
25.35%
24.67%
Notes to Schedule
Valuation Date: Actuarially determined contribution rates are calculated as of July 1 of the fiscal year in which contributions are reported.
Methods and assumptions used to determine contribution rate as of the last actuarial valuation:
Actuarial cost method
Entry age.
Amortization method
30 year amortization of unfunded liability (closed period) as a level percent of pay, using layered
bases starting July 1, 2009.
Remaining amortization period
24 years for the initial unfunded liability base established July 1, 2009. Bases established between
July 1, 2010 and July 1, 2014 have remaining amortization periods ranging from 25 to 29 years.
Asset valuation method
5 year phase-in of gains/losses relative to interest rate assumptions.
Inflation
2.75% per year.
Salary increases
4.75% per year, including inflation.
Investment rate of return
7.25%, net of pension plan investment expenses, including inflation.
Retirement age
Normal retirement age is attainment of age 65. Unreduced early retirement is available after either
1) 30 years of service, or 2) age 60 with 10 years of service. Reduced early retirement benefits are
available after attainment of age 55 and completion of 5 years of service (3 years of service if a
participant prior to January 1, 2001).
Mortality
Future mortality follows the 1994 Group Annuity Mortality Basic table projected to 2004 using Scale AA.
63
Schedule B-3
SCHEDULE OF DEFINED BENEFIT PLAN INVESTMENT RETURNS
(Unaudited)
2015
Actual money-weighted rate of return,
net of investment expense
4.54%
2014
2013
2012
2011
2010
2009
2008
2007
2006
15.99%
9.15%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
64
GASB No. 67 requires the disclosure of the money-weighted rate of return on Plan investments. The money-weighted rate of return considers the
changing amounts actually invested during a period and weights the amount of pension plan investments by the proportionate amount of time they are
available to earn a return during that period. External cash flows are determined on a monthly basis and are assumed to occur at the beginning of each
month. The money-weighted rate of return is calculated net of investment expense.
The required supplementary information is presented for fiscal years 2013 through 2015, for which information measured in conformity with the
requirements of GASB No. 67 is available. This schedule will ultimately present information for the last 10 fiscal years.
Schedule B-4
SCHEDULE OF FUNDING PROGRESS
POSTEMPLOYMENT BENEFIT PLAN
PROPRIETARY ENTERPRISE FUND
(Unaudited)
Actuarial
Valuation
Date
7/1/14
7/1/12
7/1/10
7/1/08
7/1/06
Actuarial Actuarial Accrued
Unfunded
Value of
Liability
Actuarial Accrued
Assets
(AAL)
Liability (UAAL)
$0
$28,365,781
$28,365,781
0
23,489,420
23,489,420
0
23,455,123
23,455,123
0
16,116,100
16,116,100
0
15,776,208
15,776,208
Funded
Ratio
0.0%
0.0%
0.0%
0.0%
0.0%
Covered
Payroll
$112,917,601
119,067,304
119,663,339
111,054,552
86,960,597
The actuarially determined AAL and UAAL involve estimates of the value of
reported amounts and assumptions about the probability of occurrence of
events far into the future. The estimates are subject to continual revision.
The July 1, 2006 actuarial valuation is the first valuation of the
postemployment benefit plan.
65
UAAL as a
Percentage of
Covered
Payroll
25.1%
19.7%
19.6%
14.5%
18.1%
STATISTICAL
SECTION
(UNAUDITED)

Financial Trends
These schedules contain trend information to help the
reader understand how the District’s financial performance
and well-being have changed over time.

Revenue Capacity
These schedules contain information to help the reader
assess the District’s revenue sources and rate structures.

Debt Capacity
These schedules contain 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.

Demographic and Economic Information
These schedules offer demographic, economic and District
indicators to help the reader understand the environment
within which the District financial activities take place.

Operating Information
These schedules contain service and infrastructure data to
help the reader understand how the information in the
District’s financial report relates to the services the District
provides and the activities it performs.
TM
FINANCIAL TRENDS
SECTION

Net Position by Component

Changes in Net Position
TM
UNAUDITED
ENTERPRISE FUND
FINANCIAL TRENDS
NET POSITION BY COMPONENT
(1)
Table 1
Fiscal Year
2015(2)
Net investment in capital assets
Restricted
Unrestricted
Total Net Position
$
$
853,976,982
10,127,477
90,569,572
954,674,031
2014
$
873,306,116
10,689,687
163,965,716
$ 1,047,961,519
2013
$
905,312,138
10,697,000
138,100,674
$ 1,054,109,812
2012
$
932,362,278
12,687,979
122,164,937
$ 1,067,215,194
(1) For fiscal years 2006 through 2011, following GASB Statements No. 63 and No. 65, unrestricted and total net
position have been restated to recognize most debt issuance costs as an expense in the period incurred.
(2) The District adopted GASB Statement No. 68 effective for fiscal year 2015. The cumulative effect of applying the new
Statement is reported as a restatement of the beginning unrestricted net position, in the amount of $103,832,297 as of the
beginning of the initial period of implementation.
2011
2010
2009
972,216,922
14,981,679
104,248,163
$ 1,091,446,764
$ 1,013,107,281
19,208,382
83,594,749
$ 1,115,910,412
$ 1,054,055,721
10,908,929
76,257,685
$ 1,141,222,335
$
2008
(Restated)
$ 1,061,830,231
13,546,266
86,075,564
$ 1,161,452,061
2007
$
999,087,187
5,166,034
140,605,175
$ 1,144,858,396
2006
$
966,040,632
6,434,015
142,365,839
$ 1,114,840,486
66
UNAUDITED
ENTERPRISE FUND
FINANCIAL TRENDS
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS(1)
Table 2
FISCAL YEAR
2015
Operating revenues
Water sales
Regional connectional fees2
Regional commodity & surcharges2
Recharged water sales
Inspection/application fees
Springs Preserve
Other revenue
Total operating revenue
$
Operating expenses
Purchased water
Purchased energy
Connection, commodity, reliability and groundwater charges2
Operation and maintenance
Total operating expenses
331,653,871
3,612,475
2,443,004
81,075
337,790,425
2014
$
333,851,405
2,811,054
2,254,947
30,113
338,947,519
2013
$
332,465,011
317,254
1,562,178
2,056,183
31,527
336,432,153
2012
$
333,602,721
915,666
1,857,261
21,074
336,396,722
2011
$
323,963,259
4,245,661
960,849
1,533,765
27,692
330,731,226
2010
$
320,695,958
556,520
1,676,942
30,444
322,959,864
2009
$
317,577,072
885,753
521,941
1,944,602
15,434
320,944,802
2008
$
291,695,857
40,523,611
13,694,038
5,521,199
2,001,343
1,740,833
28,507
355,205,388
2007
$
268,622,298
83,288,614
13,659,171
7,223,446
4,439,131
210,767
16,724
377,460,151
2006
$
238,869,865
133,415,890
10,301,550
56,831,464
9,713,002
16,696
449,148,467
84,918,440
11,328,302
149,750,677
245,997,419
84,985,143
9,718,597
158,264,499
252,968,239
83,290,163
10,005,417
153,062,894
246,358,474
83,464,195
10,278,751
160,065,672
253,808,618
83,981,578
11,776,035
153,023,845
248,781,458
76,445,269
11,196,130
153,740,709
241,382,108
79,110,078
14,715,831
165,893,266
259,719,175
84,433,787
15,297,584
55,419,987
156,961,431
312,112,789
86,757,838
17,357,409
98,144,211
145,472,214
347,731,672
120,403,765
21,490,436
144,926,640
132,003,551
418,824,392
91,793,006
85,979,280
90,073,679
82,588,104
81,949,768
81,577,756
61,225,627
43,092,599
29,728,479
30,324,075
(80,750,035)
(84,814,023)
(83,495,332)
(85,072,124)
(89,745,416)
(91,453,721)
(83,026,725)
(80,558,454)
(70,526,931)
(58,590,353)
11,042,971
1,165,257
6,578,347
(2,484,020)
(7,795,648)
(9,875,965)
(21,801,098)
(37,465,855)
(40,798,452)
(28,266,278)
Non-operating revenues (expenses)
Interest expense3
Investment income, unrestricted
Investment income, restricted
Other4
Total non-operating expense, net
(34,632,256)
1,265,650
248,210
(1,905,908)
(35,024,304)
(36,422,644)
1,094,644
381,689
(3,063,090)
(38,009,401)
(36,458,533)
256,072
235,726
(3,908,783)
(39,875,518)
(39,624,869)
601,416
192,892
593,955
(38,236,606)
(39,518,361)
388,506
186,750
104,317
(38,838,788)
(35,331,631)
687,747
154,716
849,078
(33,640,090)
(36,106,404)
1,447,684
818,883
481,205
(33,358,632)
(35,326,780)
3,962,864
1,580,550
423,351
(29,360,015)
(33,906,908)
7,622,213
4,401,968
(225,958)
(22,108,685)
(23,537,538)
2,008,037
1,159,331
(110,332)
(20,480,502)
Income (loss) before contributions
(23,981,333)
(36,844,144)
(33,297,171)
(40,720,626)
(46,634,436)
(43,516,055)
(55,159,730)
(66,825,870)
(62,907,137)
(48,746,780)
34,526,142
-
30,695,851
-
20,191,789
-
16,489,056
-
22,170,788
-
23,226,959
-
34,930,004
-
63,324,840
-
93,725,693
-
104,803,294
-
Operating income before depreciation expense
67
Operating income (loss)
Capital contributions
Other contributions
Change in Net Position
1FY2006
$
10,544,809
$
(6,148,293)
$
(13,105,382)
Through FY2008 are restated, predominately depreciation expense and capital contributions.
2Beginning
in FY 2009, regional connection charges, commodity charges, and reliabilty surcharges collected for the SNWA are offset against
the related expense for remitting the amounts to the SNWA. Groundwater charges are reclassified as operation and maintenance expense.
3FY2006
Through FY2011, following GASB Statements No, 63 and 65, Interest Expense restated to recognize most debt issuance costs as an
expense in the period incurred.
4Gain
(Loss) on disposition of property and equipment; scrap sales and other income. Beginning in FY 2009 , other contributions reclassified
as other income.
$
(24,231,570)
$
(24,463,648)
$
(20,289,096)
$
(20,229,726)
$
(3,501,030)
$
30,818,556
$
56,056,514
REVENUE CAPACITY
SECTION

Water Consumption, Revenue and Active Accounts

Revenue Analysis
by Class of Service

Water Rates
Last Ten Fiscal Years

2015 Municipal Water Rates Survey

Top Ten Principal Ratepayers
Calendar Year 2014 and Nine Years Ago
TM
UNAUDITED
ENTERPRISE FUND
REVENUE CAPACITY
WATER CONSUMPTION, REVENUE AND ACTIVE ACCOUNTS1
Table 3
FISCAL YEAR
Class of Service
Residential - single service
Residential - duplex, triplex/fourplex
Apts., condos & townhouses
Residential, other
Hotels
Motels
Community facilities
Schools
Fireline
Irrigation
Commercial/business
Recreational
Industrial
Construction water
Other
Total
68
Water Revenue3
$
Effective rate per 1,000 gal.4
$
Active Accounts at June 30
1Excludes
2At
2015
2014
2013
2012
2011
2010
Thousands of Gallons
2009
2008
2007
2006
44,991,526
685,356
15,079,361
1,758,032
9,300,207
1,202,549
1,895,184
1,674,701
533,454
13,597,974
8,304,191
213,441
1,269,195
1,004,599
531,314
45,665,514
673,863
14,779,868
1,910,898
9,183,026
1,067,988
1,859,986
1,587,395
461,627
14,161,515
8,159,823
175,423
1,201,732
871,323
566,052
45,513,855
683,980
14,963,548
1,052,194
9,341,023
1,113,680
1,977,402
1,645,652
404,427
14,276,087
8,291,645
183,084
1,183,615
724,445
591,594
45,320,607
723,885
14,749,229
1,066,847
9,444,531
1,097,440
1,784,624
1,679,146
397,255
14,429,234
8,199,688
217,679
1,078,118
907,904
540,057
45,654,551
714,842
14,492,669
1,159,070
9,066,012
1,069,458
1,918,946
1,564,444
587,712
14,180,267
8,428,254
201,451
1,013,105
998,273
519,995
46,225,989
806,109
14,496,627
1,186,387
9,110,727
1,101,504
1,773,599
1,764,857
577,074
14,477,922
8,378,786
232,213
1,005,582
1,318,793
751,682
46,088,751
817,068
15,250,835
1,204,773
8,983,294
1,165,394
2,024,590
1,321,078
2,197,894
15,207,736
8,616,167
296,867
1,128,590
1,306,674
253,182
48,909,391
887,815
14,900,299
1,270,669
9,669,831
1,283,996
2,364,850
1,130,389
1,043,269
15,345,791
8,697,458
(208,413)
1,292,479
3,146,088
849,452
50,433,682
943,499
15,814,323
1,376,552
10,047,493
1,227,084
2,521,623
1,255,911
26,202
16,790,726
8,600,558
370,334
1,228,116
3,562,145
1,478,161
47,055,520
937,824
15,250,140
1,291,317
10,513,447
1,593,363
2,555,781
1,295,808
24,356
13,502,697
9,404,616
1,071,413
1,218,646
3,415,202
785,928
102,041,083
102,326,033
101,946,231
101,636,244
101,569,049
103,207,851
105,862,893
115,676,409
109,916,058
2
433,366,358
$
4.2470
$
373,080
426,489,464
$
4.1679
$
421,957,342
$
4.1390
$
367,482
360,125
383,660,967
$
3.7748
$
353,503,072
$
3.4804
$
356,274
352,603
recharged water sales.
various times certain accounts were reclassified, primarily affecting the community facilities, irrigation and recreational categories.
3Consists
of water sales, SNWA regional and surcharges, delinquent and other charges.
4Effective
rate is water revenue divided by total consumption. Because water rates are variable, the effective rate can fluctuate
336,979,459
$
3.2651
$
350,290
110,583,364
331,442,012
$
3.1309
$
349,922
305,389,895
$
2.7616
$
341,668
382,281,469
$
3.3047
$
334,305
249,171,415
2.2669
322,555
UNAUDITED
ENTERPRISE FUND
REVENUE ANALYSIS BY CLASS OF SERVICE
FISCAL YEAR ENDED JUNE 30, 2015
Class of Service
69
Residential - single service
Residential - duplex/triplex/fourplex
Apts., condos, & townhouses
Residential, other
Hotels
Motels
Community facilities
Schools
Fireline
Irrigation
Commercial/business
Recreational
Industrial
Construction water
Other
Total
Annual
Revenue(1)
Annual
Consumption
Per Billing
(1,000 gal.)
Annual
Number of
Billings
Average
Revenue
(1,000 gal.)
(2)
$188,268,490
2,660,857
55,247,965
6,182,480
35,875,278
4,900,367
8,448,156
6,978,391
23,914,788
49,140,497
37,645,798
877,482
5,959,972
4,977,808
2,288,031
$433,366,358
44,991,526
685,356
15,079,361
1,758,032
9,300,207
1,202,549
1,895,184
1,674,701
533,454
13,597,974
8,304,191
213,441
1,269,195
1,004,599
531,314
102,041,084
4,036,352
33,782
51,523
7,931
2,785
3,086
12,120
8,275
57,567
75,823
98,209
796
15,037
38,800
3,762
4,445,848
$4.185
3.882
3.664
3.517
3.857
4.075
4.458
4.167
44.830
3.614
4.533
4.111
4.696
4.955
4.306
$4.247
(1) Total Revenue includes $101,776,180 SNWA regional revenues and infrastructure charges.
(2) Annual Revenue divided by Annual Consumption Per Billing (1,000 gal.)
(3) Annual Revenue divided by Annual Number of Billings.
(4) Annual Consumption Per Billing (1,000 gal.) divided by Annual Number of Billings.
Table 4
Average
Monthly
Revenue
per
Customer (3)
$46.64
78.77
1,072.30
779.53
12,881.61
1,587.93
697.04
843.31
415.43
648.09
383.32
1,102.36
396.35
128.29
608.20
$97.48
Average
Monthly
Consumption
Per Billing
(1,000gal.) (4)
11.1
20.3
292.7
221.7
3,339.4
389.7
156.4
202.4
9.3
179.3
84.6
268.1
84.4
25.9
141.2
23.0
Active
Customers
6/30/15
338,704
2,830
4,339
269
236
255
1,037
669
4,991
6,431
8,378
68
1,273
3,365
235
373,080
Unaudited
Enterprise Fund
Revenue Capacity
Water Rates
Las Ten Fiscal Years
Water rates for the last ten fiscal years are displayed on the following pages. The ⅝”
and ¾” meter diameter services are primarily residential. Monthly water costs vary
based on the number of days in the billing period.
Water rates are structured to promote conservation, pay operating expenses and bond
debt, and to fund expenditures for utility plant not funded by bond proceeds.
70
UNAUDITED
ENTERPRISE FUND
REVENUE CAPACITY
WATER RATES¹
JANUARY 1, 2011 TO JUNE 30, 2015
Meter Size
(inches)
Service Charge
Daily
5/8
$0.3355
3/4
$0.3863
1
$0.4880
1 1/2
$0.7419
2
$1.0472
3
$1.8609
4
$2.7761
6
$5.3186
8
$8.3696
10
$11.9289
12
$17.5224
Rate Thresholds
Avg. Daily Use
Non-Residential
Single Family Residential
(In Gallons)
(In Gallons)
First 167
First 167
Next 167
Next 167
Next 333
Next 333
Over 667
Over 667
First 250
First 222
Next 250
Next 222
Next 500
Next 444
Over 1,000
Over 889
First 417
First 334
Next 417
Next 334
Next 1,666
Next 1,222
Over 2,500
Over 1,889
First 833
First 611
Next 833
Next 611
Next 6,667
Next 4,556
Over 8,333
Over 5,778
First 1,333
First 944
Next 1,333
Next 944
Next 16,000
Next 10,778
Over 18,666
Over 12,666
First 2,667
Next 2,667
Next 42,666
Over 48,000
First 4,167
Next 4,167
Next 125,000
Over 133,334
First 8,333
Next 8,333
Next 400,000
Over 416,666
First 13,333
Next 13,333
Next 773,337
Over 800,000
First 19,167
Next 19,167
Next 1,303,333
Over 1,341,667
First 28,333
Next 28,333
Next 1,926,667
Over 1,983,333
Table 5
Rate
Per 1,000 gallons
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
¹ Excluded:
Continued
(a) Rates for outlying areas and mobile home parks;
(b) Special purpose rates and charges, such as for private fire protection water and metered construction water;
(c) SNWA reliability surcharge on residential class customers at .25% of the total water bill and 2.5% for all other customer classes; in
effect since March 1, 1998;
(d) SNWA commodity charge (not charged to outlying areas): $0.05/1,000 gallons from July 1, 1999 to October 31, 2005; $0.10/1,000
gallons from November 1, 2005 to December 31, 2009; $0.20/1,000 gallons from January 1, 2010 to December 31, 2010; $0.30/1,000
gallons from January 1, 2011 to December 31, 2013; $0.34/1,000 gallons from January 1, 2014 to December 31, 2014; $0.38/1,000 gallons
from January 1, 2015 to June 30, 2015;
(e) SNWA regional infrastructure surcharge with a wide range of fees based on meter diameter size. The fee for residential ⅝'' and ¾"
meters, the primary residential sizes, is $5 monthly, but for other sizes, the fee can range up to $1,660 monthly; in effect since April 1, 2012
to December 31, 2013. Beginning January 1, 2014 to December 31, 2014, the fee for residential ⅝'' and ¾" meters increased to $5.64
monthly and for other sizes, the fee can range up to $1,715 monthly; Beginning January 1, 2015 to June 30, 2015, the fee for residential ⅝''
and ¾" meters increased to $6.36 monthly and for other sizes, the fee can range up to $1,778 monthly.
71
UNAUDITED
ENTERPRISE FUND
REVENUE CAPACITY
WATER RATES¹
JANUARY 1, 2010 TO DECEMBER 31, 2010
Meter Size
(inches)
Service Charge
Daily
5/8
$0.2688
3/4
$0.3095
1
$0.3910
1 1/2
$0.5945
2
$0.8391
3
$1.4911
4
$2.2244
6
$4.2617
8
$6.7064
10
$9.5584
12
$14.0404
Rate Thresholds
Avg. Daily Use
Non-Residential
(In Gallons)
(In Gallons)
First 167
First 167
Next 167
Next 167
Next 333
Next 333
Over 667
Over 667
First 250
First 222
Next 250
Next 222
Next 500
Next 444
Over 1,000
Over 889
First 417
First 334
Next 417
Next 334
Next 1,666
Next 1,222
Over 2,500
Over 1,889
First 833
First 611
Next 833
Next 611
Next 6,667
Next 4,556
Over 8,333
Over 5,778
First 1,333
First 944
Next 1,333
Next 944
Next 16,000
Next 10,778
Over 18,666
Over 12,666
First 2,667
Next 2,667
Next 42,666
Over 48,000
First 4,167
Next 4,167
Next 125,000
Over 133,334
First 8,333
Next 8,333
Next 400,000
Over 416,666
First 13,333
Next 13,333
Next 773,337
Over 800,000
First 19,167
Next 19,167
Next 1,303,333
Over 1,341,667
First 28,333
Next 28,333
Next 1,926,667
Over 1,983,333
Table 5
Rate
Per 1,000 gallons
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
¹ Excluded:
Continued
(c) SNWA reliability surcharge on residential class customers at .25% of the total water bill and 2.5% for all other customer classes; in effect
since March 1, 1998;
gallons from November 1, 2005 to December 31, 2009; $0.20/1,000 gallons from January 1, 2010 to December 31, 2010; $0.30/1,000 gallons
from January 1, 2011 to December 31, 2013; $0.34/1,000 gallons from January 1, 2014 to December 31, 2014; $0.38/1,000 gallons from
January 1, 2015 to June 30, 2015;
(e) SNWA regional infrastructure surcharge with a wide range of fees based on meter diameter size. The fee for residential ⅝'' and ¾" meters,
the primary residential sizes, is $5 monthly, but for other sizes, the fee can range up to $1,660 monthly; in effect since April 1, 2012 to
December 31, 2013. Beginning January 1, 2014 to December 31, 2014, the fee for residential ⅝'' and ¾" meters increased to $5.64 monthly
and for other sizes, the fee can range up to $1,715 monthly; Beginning January 1, 2015 to June 30, 2015, the fee for residential ⅝'' and ¾"
meters increased to $6.36 monthly and for other sizes, the fee can range up to $1,778 monthly.
72
UNAUDITED
ENTERPRISE FUND
REVENUE CAPACITY
WATER RATES¹
MAY 1, 2008 TO DECEMBER 31, 2009
Meter Size
(inches)
Service Charge
Daily
5/8
$0.2021
3/4
$0.2327
1
$0.2940
1 1/2
$0.4470
2
$0.6309
3
$1.1211
4
$1.6725
6
$3.2043
8
$5.0424
10
$7.1868
12
$10.5567
Rate Thresholds
Avg. Daily Use
Non-Residential
(In Gallons)
(In Gallons)
First 167
First 167
Next 167
Next 167
Next 333
Next 333
Over 667
Over 667
First 250
First 222
Next 250
Next 222
Next 500
Next 444
Over 1,000
Over 889
First 417
First 334
Next 417
Next 334
Next 1,666
Next 1,222
Over 2,500
Over 1,889
First 833
First 611
Next 833
Next 611
Next 6,667
Next 4,556
Over 8,333
Over 5,778
First 1,333
First 944
Next 1,333
Next 944
Next 16,000
Next 10,778
Over 18,666
Over 12,666
First 2,667
Next 2,667
Next 42,666
Over 48,000
First 4,167
Next 4,167
Next 125,000
Over 133,334
First 8,333
Next 8,333
Next 400,000
Over 416,666
First 13,333
Next 13,333
Next 773,337
Over 800,000
First 19,167
Next 19,167
Next 1,303,333
Over 1,341,667
First 28,333
Next 28,333
Next 1,926,667
Over 1,983,333
Table 5
Continued
Rate
Per 1,000 gallons
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
$1.16
$2.08
$3.09
$4.58
Continued
¹ Excluded:
January 1, 2015 to June 30, 2015;
73
UNAUDITED
ENTERPRISE FUND
REVENUE CAPACITY
WATER RATES¹
JANUARY 1, 2007 TO APRIL 30, 2008
Meter Size
(inches)
Service Charge
Daily
5/8
$0.1347
3/4
$0.1551
1
$0.1960
1 1/2
$0.2980
2
$0.4206
3
$0.7474
4
$1.1150
6
$2.1362
8
$3.3616
10
$4.7912
12
$7.0378
Rate Thresholds
Avg. Daily Use
(in gallons)
First 167
Next 167
Next 333
Over 667
First 250
Next 250
Next 500
Over 1,000
First 417
Next 417
Next 1,666
Over 2,500
First 833
Next 833
Next 6,667
Over 8,333
First 1,333
Next 1,333
Next 16,000
Over 18,666
First 2,667
Next 2,667
Next 42,666
Over 48,000
First 4,167
Next 4,167
Next 125,000
Over 133,334
First 8,333
Next 8,333
Next 400,000
Over 416,666
First 13,333
Next 13,333
Next 773,337
Over 800,000
First 19,167
Next 19,167
Next 1,303,333
Over 1,341,667
First 28,333
Next 28,333
Next 1,926,667
Over 1,983,333
Table 5
Continued
Rate
Per 1,000 gallons
$1.10
$1.89
$2.62
$3.48
$1.10
$1.89
$2.62
$3.48
$1.10
$1.89
$2.62
$3.48
$1.10
$1.89
$2.62
$3.48
$1.10
$1.89
$2.62
$3.48
$1.10
$1.89
$2.62
$3.48
$1.10
$1.89
$2.62
$3.48
$1.10
$1.89
$2.62
$3.48
$1.10
$1.89
$2.62
$3.48
$1.10
$1.89
$2.62
$3.48
$1.10
$1.89
$2.62
$3.48
¹ Excluded:
Continued
January 1, 2015 to June 30, 2015;
74
UNAUDITED
ENTERPRISE FUND
REVENUE CAPACITY
WATER RATES1
SEPTEMBER 1, 2003 TO DECEMBER 31, 2006
Meter Size
(inches)
Service Charge
Daily
5/8
$0.1223
3/4
$0.1409
1
$0.1780
1 1/2
$0.2707
2
$0.3820
3
$0.6788
4
$1.0127
6
$1.9402
8
$3.0532
10
$4.3517
12
$6.3922
Rate Thresholds
Avg. Daily Use
(in gallons)
First 167
Next 167
Next 333
Over 667
First 250
Next 250
Next 500
Over 1,000
First 417
Next 417
Next 1,666
Over 2,500
First 833
Next 833
Next 6,667
Over 8,333
First 1,333
Next 1,333
Next 16,000
Over 18,666
First 2,667
Next 2,667
Next 42,666
Over 48,000
First 4,167
Next 4,167
Next 125,000
Over 133,334
First 8,333
Next 8,333
Next 400,000
Over 416,666
First 13,333
Next 13,333
Next 773,337
Over 800,000
First 19,167
Next 19,167
Next 1,303,333
Over 1,341,667
First 28,333
Next 28,333
Next 1,926,667
Over 1,983,333
Table 5
Continued
Rate
Per 1,000 gallons
$1.05
$1.75
$2.38
$3.02
$1.05
$1.75
$2.38
$3.02
$1.05
$1.75
$2.38
$3.02
$1.05
$1.75
$2.38
$3.02
$1.05
$1.75
$2.38
$3.02
$1.05
$1.75
$2.38
$3.02
$1.05
$1.75
$2.38
$3.02
$1.05
$1.75
$2.38
$3.02
$1.05
$1.75
$2.38
$3.02
$1.05
$1.75
$2.38
$3.02
$1.05
$1.75
$2.38
$3.02
¹ Excluded:
January 1, 2015 to June 30, 2015;
75
Table 6
UNAUDITED
ENTERPRISE FUND
REVENUE CAPACITY
2015 MUNICIPAL WATER RATES SURVEY
AVERAGE MONTHLY BILL FOR 11,200 GALLONS
CITY
Santa Barbara, CA (OC)
Santa Barbara, CA
Santa Cruz, CA (OC)
Santa Fe, NM
Colorado Springs, CO (OC)
Seattle, WA (OC)
San Francisco, CA
Santa Cruz, CA
Reno, NV (Unmetered)
Seattle, WA
Portland, OR
Flagstaff, AZ (OC)
San Diego, CA
San Jose, CA (Company)
Colorado Springs, CO
Flagstaff, AZ
Marin, CA (MMWD)
San Jose, CA (City)
Los Angeles, CA
Oakland, CA (EBMUD)
Santa Rosa, CA
Tucson, AZ
Houston, TX
Phoenix, AZ (OC)
Pasadena, CA (OC)
Tacoma, WA (OC)
Cheyenne, WY
Long Beach, CA
Riverside, CA (OC)
Pasadena, CA
San Antonio, TX (OC)
Kingman, AZ (OC)
Tacoma, WA
Reno, NV (Metered)
Boulder, CO (OC)
Dallas, TX
North Las Vegas, NV
Victorville, CA
Henderson, NV
Denver, CO (OC)
Denver, CO
Las Vegas, NV
Scottsdale, AZ
San Antonio, TX
Phoenix, AZ
Billings, MT (OC)
Billings, MT
Boulder, CO
El Paso, TX
Salt Lake City, UT (OC)
Kingman, AZ
Anaheim, CA (OC)
Boise, ID
Anaheim, CA
San Bernardino, CA
Riverside, CA
Redding, CA
Salt Lake City, UT
St. George, UT
Albuquerque, NM
Boulder City, NV
Cedar City, UT
$10 - $20
$20 - $30
$30 - $40
$40 - $50
$50 - $60
$60 - $70
$70 - $80
$80 - $90
$90 - $100
Over $100
191.24
147.11
140.28
136.02
125.17
112.67
111.59
110.88
105.16
98.79
95.07
91.53
90.10
86.92
83.41
83.21
79.30
78.07
74.63
73.97
71.14
65.78
60.68
60.19
58.50
55.48
53.10
48.94
48.27
48.12
47.94
47.55
46.23
45.18
43.85
43.72
43.69
43.60
43.02
42.38
41.49
41.48
41.29
41.25
40.36
40.25
39.65
39.01
38.40
38.35
36.39
36.19
34.54
33.07
33.06
32.18
30.33
29.84
29.80
29.26
29.11
27.39
76
Based on LVVWD Average Monthly Single-Family
Consumption of 11,200 gallons and a ⅝ or ¾ Inch
Service Charge for Comparison.
OC - Outside City
MMWD - Marin Municipal Water District
EBMUD - East Bay Metropolitan Utilities District
Table 7
UNAUDITED
ENTERPRISE FUND
REVENUE CAPACITY
TOP TEN PRINCIPAL RATEPAYERS
CALENDAR YEAR 2014 AND NINE YEARS AGO
2014
Ratepayer
77
Clark County School District
City of Las Vegas
Clark County
Mandalay Bay Hotel
Wynn Las Vegas
Bellagio Hotel and Casino
Venetian Casino-Resort LLC
Clark County Aviation
Mirage Hotel and Casino
Caesars Palace Hotel
MGM Grand Hotel
Golden Nugget Hotel
New Castle Corp.
Flamingo Hilton
American Golf Corporation
Revenue
$
$
Total Revenue
Rank
9,590,554
4,990,546
4,713,540
2,291,787
2,013,545
1,995,093
1,611,781
1,560,303
1,480,711
1,414,544
----------31,662,404
1
2
3
4
5
6
7
8
9
10
-----------
$
436,172,852
Note: Year 2005 does not include SNWA and other various charges.
2005
Percentage
of Total
Revenue
2.20%
1.14
1.08
0.53
0.46
0.46
0.37
0.36
0.34
0.32
----------7.26%
Revenue
$
$
Rank
3,408,265
2,852,049
--1,063,825
--1,257,173
------840,841
1,206,996
1,032,045
866,863
757,312
668,310
13,953,679
1
2
--5
--3
------8
4
6
7
9
10
$
211,556,727
Percentage
of Total
Revenue
1.61%
1.35
--0.50
--0.59
------0.40
0.57
0.49
0.41
0.36
0.32
6.60%
DEBT CAPACITY
SECTION

Ratios of Net General Obligation Debt Outstanding

Net Pledged Revenue Coverage

Outstanding Direct and Overlapping General
Obligation Indebtedness
TM
UNAUDITED
ENTERPRISE FUND
DEBT CAPACITY
RATIOS OF OUTSTANDING TOTAL NET DEBT1
General Obligation
Bond Debt
Excluding
Fiscal
Year SNWA Secured Debt
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
$
Fiscal
Year
78
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
842,523,112
882,772,516
912,111,068
943,645,471
960,427,588
980,313,752
919,728,286
946,594,937
811,184,815
682,100,515
Personal
Income1
$
75,957,334,000
75,957,334,000
75,957,334,000
74,886,428,000
70,652,760,000
69,328,897,000
69,457,349,000
74,026,395,000
73,640,621,000
70,163,362,000
Bond Debt
Additionally
Secured by
SNWA Revenue
$
1,612,655,000
1,428,120,000
1,440,390,000
1,091,990,000
883,405,000
877,225,000
389,300,000
404,710,000
430,965,000
444,480,000
Percent of
Personal Income
3.76%
3.57%
3.63%
3.25%
3.18%
3.26%
2.46%
2.37%
2.23%
2.18%
Net
Revenue
Bond Debt
$
1,344,000
1,512,000
1,680,000
1,848,000
2,016,000
2,184,000
2,352,000
-
Active
Accounts
373,080
367,482
360,125
356,274
352,603
350,290
349,922
341,668
334,305
322,555
Notes
Additionally
Secured by
SNWA Revenue
State
Revolving
Fund Loan
$
1,298,309
-
$
Per
Active Account
$
7,660
7,381
7,648
6,842
6,369
6,451
4,891
5,126
4,912
4,733
400,000,000
400,000,000
400,000,000
400,000,000
400,000,000
400,000,000
400,000,000
400,000,000
400,000,000
400,000,000
Taxable Real
Property Value2
$
178,020,516,265
156,193,685,142
153,321,893,568
163,707,474,254
180,763,035,128
254,683,564,234
317,048,184,343
300,806,283,897
254,069,387,503
182,987,354,440
Total Debt
$
2,857,820,421
2,712,404,516
2,754,181,068
2,437,483,471
2,245,848,588
2,259,722,752
1,711,380,286
1,751,304,937
1,642,149,815
1,526,580,515
Percent of
Taxable Real
Property Value
1.61%
1.74%
1.80%
1.49%
1.24%
0.89%
0.54%
0.58%
0.65%
0.83%
1Calendar
year. Source is U.S. Bureau of Economic Analysis as reported for Clark County. Personal income data for 2015 and 2014 is not available.
Estimates for 2015 and 2014 are based upon 2013 data.
2Neither
the State nor the County Assessor maintains an official taxable or assessed valuation for the Las Vegas Valley Water District. Because the
District's boundaries encompass the County, excluding the property within the Virgin Valley Water District, the District historically has calculated
its assessed valuation to be the same as the County's after deducting the Virgin Valley Water District's assessed valuation. The taxable value is
derived from the assessed valuation.
Table 8
Table 9
UNAUDITED
ENTERPRISE FUND
DEBT CAPACITY
NET PLEDGED REVENUE COVERAGE
2015
2014
2013
2012
Restated
2011
$337,790,425
17,657,015
1,265,650
356,713,090
$338,947,519
11,049,850
1,094,644
351,092,013
$336,432,153
6,867,660
256,072
343,555,885
$336,396,722
2,669,480
601,416
339,667,618
$330,731,226
2,741,240
388,506
333,860,972
Operating Expenses
245,997,419
252,968,239
246,358,474
253,808,618
Net Pledged Revenues
110,715,671
98,123,774
97,197,411
49,002,721
50,794,514
51,407,966
Operating Revenue
1
Facilities connection charge
Interest income on operating funds
Total Revenues
2
Average annual G.O. bond debt service
Coverage3
2.26
1.93
1.89
2009
2008
2007
2006
$322,959,864
(1,422,830)
687,747
322,224,781
$320,944,802
2,379,630
1,447,684
324,772,116
$355,205,388
7,826,260
3,962,864
366,994,512
$377,460,151
11,242,682
7,622,213
396,325,046
$449,148,467
17,066,958
2,008,037
468,223,462
248,781,458
241,382,108
259,719,175
312,112,789
347,731,672
418,824,391
85,859,000
85,079,514
80,842,673
65,052,941
54,881,723
48,593,374
49,399,071
52,586,098
54,748,477
52,665,205
49,459,361
51,534,563
46,601,860
37,106,162
1.63
1.55
79
1
2
3
Negative facilities connection charge in FY 2010 reflects refunds of prior period receipts and an estimate of probable future refunds.
Operating expenses exclude depreciation.
Bond covenants require net pledged revenues to be at least one (1) times the average annual debt. Averge annual debt is the aggregate
debt service, excluding debt additionally secured by SNWA revenue, divided by the number of years from June 30 to the final maturity date
of the indebtedness with the longest maturity. Calculations by District staff.
2010
1.54
1.32
1.06
1.04
1.33
Table 10
UNAUDITED
ENTERPRISE FUND
DEBT CAPACITY
OUTSTANDING DIRECT AND OVERLAPPING GENERAL OBLIGATION INDEBTEDNESS
AS OF JUNE 30, 2015
Assessed Valuation
June 30, 2015
State of Nevada
Clark County
Henderson
Las Vegas
North Las Vegas
80
Las Vegas-Clark County Library District
TOTAL
$
62,307,180,693
91,045,746,662
62,904,942,089
62,904,942,089
9,599,639,616
13,852,723,777
4,730,877,154
47,887,915,087
Presently
Self-Supporting
General
Obligation
Indebtedness
Total
General
Obligation
Indebtedness
(2)
(4)
(5)
(6)
(7)
(8)
$ 2,807,433,309 (3)
1,729,010,000
2,835,706,851
2,548,890,000
221,273,829
338,410,000
428,525,000
27,055,000
$
2,807,433,309
499,005,000
2,804,600,000
583,895,000
199,840,829
302,180,000
414,455,000
--
Percent
Applicable
-68.44%
99.05
99.05
100.00
100.00
100.00
100.00
Applicable Net
Overlapping
(1)
Indebtedness
-$ 841,815,422
30,811,336
1,946,327,548
21,433,000
36,230,000
14,070,000
27,055,000
$ 2,917,742,306
(1) Net overlapping general obligation indebtedness equals total general obligation indebtedness less presently self-supporting general obligation indebtedness
times percent applicable.
(2) Because the Las Vegas Valley Water District has never levied an ad valorem property tax, neither the State nor the County Assessor maintains an official assessed valuation for the
District. The District's boundaries encompass all of the County, excluding the property within the Virgin Valley Water District. Accordingly, the District has calculated its assessed
valuation by deducting the assessed valuation of the Virgin Valley Water District from the County's assessed valuation.
(3) The Las Vegas Valley Water District has no legal debt limit per se. The Las Vegas Valley Water District's debt margin is a function of balancing capital outlay needs and market
acceptance for its debt at competitive interest rates.
(4) Excludes Statewide Redevelopment Agency assessed valuation in the amount of $1,681,744,227.
(5) Excludes $1,347,691,561 for the Clark County, Las Vegas, North Las Vegas, Henderson, Mesquite and Boulder City Redevelopment Agencies.
(6) Excludes $314,319,375 for the Henderson Redevelopment Agency.
(7) Excludes $627,006,745 for the Las Vegas Redevelopment Agency.
(8) Excludes $50,973,538 for the North Las Vegas Redevelopment Agency.
DEMOGRAPHIC
AND ECONOMIC
INFORMATION
SECTION

Demographic Statistics

Clark County Principal Employers
Fiscal Year 2014 and Nine Years Ago

Ten Largest Property
Owning Taxpayers
TM
UNAUDITED
ENTERPRISE FUND
DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC STATISTICS(1)
CLARK COUNTY, NEVADA
(2)
LAST TEN CALENDAR YEARS
81
Year
Population(3)
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2,069,450
2,031,723
1,988,195
1,967,722
1,951,269
1,952,040
1,967,716
1,954,319
1,874,837
1,796,380
Per Capita
Income(4)
Table 11
Median
Household
Income(5)
School
Enrollment(6)
Total
Labor Force
Thousands(7)
U.S.
Unemployment
Rate(8)
n/a
$ 51,057
49,546
48,215
51,437
53,505
56,696
55,996
53,536
49,571
314,598
311,218
308,377
309,899
309,442
311,221
308,745
302,547
291,329
280,795
1,019.6
1,006.7
1,000.9
995.5
984.0
967.7
980.2
951.1
917.9
869.3
6.2%
7.4%
8.1%
8.9%
9.6%
9.3%
5.8%
4.6%
4.6%
5.1%
$ 37,457
37,457
37,487
35,927
35,497
35,814
38,710
39,426
38,898
37,563
(1) All figures are subject to revision. The abbreviation "n/a" means not available.
(2) Population as of July 1; school enrollment in fall.
(3) Source: 2010 figure from the U.S. Bureau of the Census; 2005-2009 and 2011-2014 figures from the Nevada State
Demographer.
(4) Source: U.S. Bureau of Economic Analysis as reported for the Las Vegas-Paradise MSA (which is comprised of Clark
County). Year 2014 per capita income is not available; therefore, per capita income for 2013 is used as an estimate.
(5) Source: U.S. Census Bureau, American Community Survey.
(6) Source: Clark County School District.
(7) Source: State of Nevada - Department of Employment, Training & Rehabiliation. Revised April 2015.
(8) Source: Bureau of Labor Statistics (annual averages).
Table 12
UNAUDITED
ENTERPRISE FUND
CLARK COUNTY TOP TEN PRINCIPAL EMPLOYERS1
FISCAL YEAR 2014 AND NINE YEARS AGO2
2014
Employer
82
Clark County
MGM Grand Hotel/Casino
Bellagio LLC
Wynn Las Vegas
Aria Resort & Casino LLC
Mandalay Bay Resort & Casino
Caesars Palace
University of Nevada, Las Vegas
Las Vegas Metropolitan Police
The Mirage Casino-Hotel
Rio Suite Hotel & Casino
Total Labor Force
1
Employee Range
Rank
Percentage
of Total
Labor Force4
30,000 to 39,999
8,500 to 8,999
8,000 to 8,499
8,000 to 8,499
8,000 to 8,499
7,500 to 7,999
7,000 to 7,499
6,000 to 6,499
5,000 to 5,499
4,500 to 4,999
-----
1
2
3
4
5
6
7
8
9
10
-----
3.43%
0.86
0.81
0.81
0.81
0.76
0.71
0.61
0.51
0.47
-----
3
1,019,373
Source: Nevada Department of Employment, Training & Rehabilitation.
Fiscal Year 2014 Lastest date information available.
3
Nevada law prohibits publishing exact numbers.
4
Average employee range divided by total labor force
2
2005
Employee Range
Rank
Percentage
of Total
Labor Force4
30,000 to 39,999
9,000 to 9,499
8,000 to 8,499
9,500 to 9,999
9,000 to 9,499
--8,000 to 8,499
--4,500 to 4,999
4,500 to 4,999
5,500 to 5,999
4,500 to 4,999
1
4
5
2
3
--6
--8
9
7
10
4.03%
1.06
0.95
1.12
1.06
--0.95
--0.55
0.55
0.66
0.55
3
868,605
UNAUDITED
ENTERPRISE FUND
TEN LARGEST PROPERTY-OWNING TAXPAYERS
(1)
CLARK COUNTY, NEVADA
FISCAL YEAR 2014-2015
Taxpayer (2)
Taxable Assessed
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
MGM Resorts International
NV Energy
Caesars Entertainment Corporation
Las Vegas Sands Corporation
Wynn Resorts Limited
Station Casinos Incorporated
Boyd Gaming Corporation
Nevada Property 1 LLC
Eldorado Energy LLC
Hilton Grand Vacations
$ 3,164,727,682
2,005,977,837
1,623,779,567
997,888,951
853,434,852
552,630,398
292,763,981
275,029,024
209,865,386
190,040,774
(1)
(2)
Includes the five incorporated cities.
Some taxpayers are hotel/casinos that may have multiple properties.
SOURCE: Clark County Assessor's Report, October 15, 2014.
83
Table 13
Taxable Appraised
$ 9,042,079,091
5,731,365,249
4,639,370,191
2,851,111,289
2,438,385,291
1,578,943,994
836,468,517
785,797,211
599,615,389
542,973,640
OPERATING
INFORMATION
SECTION

Authorized Full-Time Equivalent Employees
by Department

Water Production by Month
Last Ten Years

Pumpage from Wells by Months
Last Ten Years

Surface Water by Month Southern Nevada
Water System
Last Ten Years

Water Production Maximum and Minimum
Days by Month
Last Ten Years

Annual Treated Water Delivered by the
Southern Nevada Water System

Enterprise Fund Selected Capital Asset

Schedule of Insurance as of June 30, 2015
TM
UNAUDITED
ENTERPRISE FUND
OPERATING INFORMATION
AUTHORIZED FULL-TIME EQUIVALENT EMPLOYEES BY DEPARTMENT
AS OF JUNE 30
Department
84
Executive Management
AM/FM/GIS & Asset Mgmt1
Legal Services
Finance5
Energy Management
5
Human Resources
Information Technology9
Public Services5, 6
LV Springs Preserve6
EHS & Corporate Security5
5
Customer Care & Field Services
5
Support Services
LVVWD Engineering2, 8
LVVWD Operations2, 5
LVVWD Resources
7
SNWA Environmental Resources
4, 7
SNWA Groundwater Resources
Environmental & Water Resource Law3, 5
SNWA Surface Water Resources4, 7
SNWA Resources4
SNWA Engineering8
8
Engineering
8
Infrastructure Management
9
SNWS Operations
7, 9
Water & Environmental Resources
7
Water Quality & Treatment
Unfunded Positions
Total
1New
Table 14
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
14
0
18
108
6
18
119
95
0
49
165
0
1
202
0
0
0
0
0
0
0
102
80
57
142
95
309.5
1,580.5
14
0
18
108
5
24
110
91
0
50
168
0
1
204
0
0
0
0
0
0
0
102
74
138
86
95
292.5
1,580.5
16
0
11
132
7
29
134
113
0
55
179
0
205
315.5
0
0
0
0
0
0
62
15
0
10
133
7
30
134
58
55
55
176
0
196
312.5
0
50.5
53
0
23
0
73
14
0
7
155
7
41
136
144
56
16
56
7
157
7
38
136
138
61
17
61
5
146
7
42
138
132
71
13
11
9
12
142
7
41
133
117
88
10
141
8
39
131
112.5
87
10
132
6
39
112
107
46
197.5
181
226
0
52.5
54
4
24
0
81
197.5
132
219
0
52.5
52
4
21
0
86
189.5
139
246
0
34
64.5
4
21
0
66
185.5
147
217
83
23
56.5
175.5
143
210
83
167.5
136
204
80
89.5
82.5
30
0
61
15
0
58
12
0
52
96
122.5
103.5
199.5
200.5
200.5
197.5
183.5
177.5
172.5
1,580.5
1,580.5
1,580.5
1,580.5
1,580.5
1,539.5
1,491.0
1,367.5
department created from LVVWD Resources in FY2009; transferred to LVVWD Operations and LVVWD Engineering in FY2011.
2Includes transfers from LVVWD Resources in FY2009.
3New department created from Legal Services in FY2009.
4SNWA Resources organized into two departments in FY2006: (1) SNWA Groundwater Resources and (2) SNWA Surface Water Resources.
5Departmental restructuring in FY2012 involved a large number of transferred employees; two discontinued departments (1) Support Services and (2) Environmental & Water Resource Law;
and two new departments (1) Environmental Health, Safety & Corporate Security (EHS & CS) and (2) Customer Care & Field Services.
6LV Springs Preserve merged into Public Services in FY2013.
7Departmental restructuring in FY 2013 involved a large number of transferred employees; three discontinued departments (1) SNWA Environmental Resources, (2) SNWA Groundwater
Resources and (3) SNWA Surface Water Resources; and two new departments (1) Water & Environmental Resources and (2) Water Quality & Treatment.
8Departmental restructuring in FY 2014 involved a large number of transferred employees; a large reduction in workforce; the consolidation of LVVWD Engineering and SNWA Engineering into
Engineering; and a new department, Infrastructure Management.
9Departmental restructuring in FY 2015 involved Facilities moving to Water and Environmental Resources department and Data Resources moving to Information Technology department.
UNAUDITED
ENTERPRISE FUND
WATER PRODUCTION BY MONTH
(MILLIONS OF GALLONS - EXCLUDES ARTIFICIAL RECHARGE, INCLUDES REUSE)
Month
January
February
March
April
May
June
July
August
September
October
November
December
2014
6,387
5,999
7,773
8,558
10,674
11,786
12,293
11,543
10,069
9,332
7,235
6,178
2013
6,103
5,746
7,604
8,404
10,847
12,116
12,680
12,019
9,735
9,012
6,865
6,103
2012
6,143
5,924
7,535
8,318
11,085
12,039
12,476
11,692
10,297
8,875
7,211
6,243
2011
5,972
5,649
7,557
8,245
10,136
11,394
12,390
12,519
10,486
8,751
6,918
6,109
2010
5,878
5,057
7,109
8,081
10,319
11,695
13,260
13,051
10,818
8,630
7,078
5,970
2009
6,221
5,558
7,910
8,450
11,375
11,513
12,990
12,779
10,976
9,376
7,284
6,108
2008
6,291
6,095
8,056
9,122
11,212
12,570
13,551
13,657
10,647
9,874
7,361
6,160
2007
6,515
6,344
8,494
9,219
12,308
13,361
14,452
13,666
11,362
9,861
7,507
6,649
Table 15
2006
6,632
6,389
7,665
8,751
12,172
13,092
13,904
14,008
11,982
9,535
7,435
6,705
2005
5,308
4,783
7,061
8,691
11,258
12,727
14,001
12,990
11,364
9,451
7,297
6,900
85
Total*
107,827
107,234
107,839
106,126
106,946
110,539
114,595
119,737
118,270
111,830
Total (Acre Feet)
330,910
329,089
330,945
325,689
328,204
339,232
351,679
367,460
362,959
343,195
* Total of pumpage from wells and surface water, plus or minus reservoir changes, reuse and excluding artificial recharge.
Table 16
UNAUDITED
ENTERPRISE FUND
PUMPAGE FROM WELLS BY MONTHS
(MILLIONS OF GALLONS)
Month
86
January
February
March
April
May
June
July
August
September
October
November
December
2014
2013
Million Avg. Million Avg.
Gallons Daily Gallons Daily
2012
Million Avg.
Gallons Daily
2011
Million Avg.
Gallons Daily
2010
Million Avg.
Gallons Daily
2009
Million Avg.
Gallons Daily
2008
Million Avg.
Gallons Daily
2007
Million Avg.
Gallons Daily
2006
Million Avg.
Gallons Daily
2005
Million Avg.
Gallons Daily
522
391
221
257
3,095
3,206
3,022
2,556
364
435
449
17
14
7
8
103
103
97
85
12
15
14
1,030
3,216
3,016
2,721
2,837
540
512
531
33
107
97
88
95
18
17
18
752
3,140
3,050
2,926
3,297
-
24
105
98
94
110
-
696
3,137
3,321
3,236
2,900
-
22
105
107
104
97
-
469
3,033
3,147
3,013
3,114
-
15
101
102
97
104
-
138
3,138
3,393
3,233
3,337
-
4
105
109
104
111
-
1,226
3,223
3,444
2,883
2,476
-
40
107
111
93
83
-
1,439
2,930
2,913
3,218
2,865
-
46
98
94
104
95
-
935
2,999
3,307
3,085
1,355
-
30
100
107
100
45
-
2,713
2,711
2,755
1,793
345
90
87
89
60
11
Total
14,518
40
14,402
39
13,166
36
13,290
36
12,776
35
13,239
36
13,252
36
13,365
37
11,681
32
10,317
28
Total Acre Feet
44,554
40,404
40,785
39,208
40,627
40,670
41,014
35,845
35,848
31,661
Table 17
UNAUDITED
ENTERPRISE FUND
SURFACE WATER BY MONTH
SOUTHERN NEVADA WATER SYSTEM
(MILLIONS OF GALLONS - EXCLUDES ARTIFICIAL RECHARGE, INCLUDES REUSE)
Month
2014
Million Avg.
Gallons Daily
2013
Million Avg.
Gallons Daily
2012
Million Avg.
Gallons Daily
2011
Million Avg.
Gallons Daily
2010
Million Avg.
Gallons Daily
2009
Million Avg.
Gallons Daily
2008
Million Avg.
Gallons Daily
2007
Million
Avg.
Gallons
Daily
2006
Million
Avg.
Gallons
Daily
2005
Million
Avg.
Gallons
Daily
87
January
February
March
April
May
June
July
August
September
October
November
December
5,865
5,608
7,552
8,558
10,417
8,691
9,087
8,521
7,513
8,968
6,800
5,729
189
200
244
285
336
290
293
275
250
289
227
185
6,103
5,746
7,604
8,404
9,818
8,900
9,665
9,298
6,899
8,472
6,353
5,572
197
205
245
280
317
297
312
300
230
273
212
180
6,143
5,924
7,535
8,318
10,333
8,899
9,426
8,766
7,000
8,875
7,211
6,243
198
212
243
277
333
297
304
283
233
286
240
201
5,972
5,649
7,557
8,245
9,440
8,257
9,069
9,283
7,587
8,751
6,918
6,109
193
202
244
275
305
275
293
299
253
282
231
197
5,878
5,057
7,109
8,081
9,849
8,662
10,113
10,038
7,705
8,630
7,078
5,970
190
181
229
269
318
289
326
324
257
278
236
193
6,221
5,558
7,910
8,450
11,237
8,375
9,597
9,546
7,639
9,376
7,284
6,108
201
199
255
282
362
279
310
308
255
302
243
197
6,291
6,095
8,056
9,122
9,986
9,347
10,107
10,774
8,171
9,874
7,361
6,160
203
218
260
304
322
312
326
348
272
319
245
199
6,515
6,344
8,494
9,219
10,870
10,430
11,539
10,448
8,497
9,861
7,507
6,649
210
227
274
307
351
348
372
337
283
318
250
214
6,632
6,389
7,665
8,751
11,236
10,093
10,597
10,923
10,627
9,535
7,435
6,705
214
228
247
292
362
336
342
352
354
308
248
216
5,750
5,489
7,359
8,236
11,656
9,618
9,755
8,743
8,116
8,940
6,248
5,940
185
196
237
275
376
321
315
282
271
288
208
192
Total
93,309
255
92,832
254
94,673
259
92,836
254
94,169
257
97,301
266
101,344
277
106,590
291
106,590
291
95,849
262
Table 18
UNAUDITED
ENTERPRISE FUND
WATER PRODUCTION
MAXIMUM AND MINIMUM DAYS BY MONTH
(MILLIONS OF GALLONS)
Month
88
January
February
March
April
May
June
July
August
September
October
November
December
2014
Max. Min.
2013
Max. Min.
2012
Max. Min.
2011
Max. Min.
2010
Max. Min.
2009
Max. Min.
2008
Max. Min.
2007
Max. Min.
2006
Max. Min.
2005
Max. Min.
217.2
235.1
277.9
309.8
376.1
415.4
421.4
400.7
379.9
322.9
281.3
232.6
211.7
222.8
275.3
326.0
371.8
429.8
437.0
412.6
348.6
331.4
276.0
218.5
212.1
215.8
265.0
315.6
378.3
412.6
420.6
413.1
378.7
331.8
274.8
231.7
213.6
219.6
265.3
296.2
348.9
406.7
405.6
409.3
402.8
319.8
272.0
215.0
209.5
194.7
266.4
296.9
358.2
404.9
436.8
431.1
392.1
327.2
266.7
212.1
221.6
221.2
275.7
311.6
388.9
408.4
428.6
421.8
394.3
331.1
286.5
222.6
223.2
238.4
294.1
331.9
402.5
447.4
450.4
444.8
405.0
343.7
289.0
222.2
228.2
244.9
310.2
351.2
417.2
460.5
482.8
460.0
412.4
355.1
282.2
227.1
230.5
243.1
283.7
320.1
422.1
457.5
475.8
464.8
443.3
367.7
278.5
233.4
189.4
196.2
264.6
305.8
410.6
430.9
470.6
430.7
402.2
366.2
269.7
237.0
182.4
187.7
185.5
225.0
270.8
324.5
347.8
321.8
260.0
247.9
197.5
176.7
178.1
169.7
188.0
233.8
276.8
324.8
335.5
309.4
270.8
239.8
185.0
178.3
175.8
173.1
182.9
199.6
279.9
336.2
325.7
296.4
276.7
223.1
200.2
176.9
175.7
169.8
191.6
207.0
238.4
303.3
319.9
345.4
270.2
230.8
192.8
171.9
164.9
165.4
174.4
214.8
238.3
323.8
361.0
367.9
287.9
210.4
182.5
166.4
181.1
177.8
192.0
208.4
273.1
323.2
352.6
346.6
284.4
241.6
192.4
173.5
178.8
182.2
194.3
232.8
284.7
330.3
372.5
359.8
274.6
245.9
191.3
179.2
188.0
196.6
211.3
234.0
307.9
368.6
409.1
370.6
271.7
247.4
208.2
185.4
184.0
185.0
198.1
220.9
317.3
373.3
390.2
401.2
318.7
237.9
205.2
179.9
158.1
156.6
165.1
217.6
255.0
348.4
336.2
360.9
297.1
234.1
202.3
181.2
Average Daily Production
295.40
293.79
295.45
290.76
293.00
302.85
313.10
328.05
324.03
306.38
Maximum Daily Production
421.4
437.0
420.6
409.3
436.8
428.6
450.4
482.8
475.8
470.6
Table 19
UNAUDITED
ENTERPRISE FUND
ANNUAL TREATED WATER DELIVERED BY
THE SOUTHERN NEVADA WATER SYSTEM
(ACRE FEET)
Year
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
1May
Boulder
City
10,887
11,239
11,345
11,121
10,845
10,534
10,514
10,280
10,688
10,378
Henderson
66,451
69,738
66,897
64,611
63,092
64,262
63,450
62,127
61,890
64,168
Las Vegas
Valley
Water District
328,012
344,200
328,435
301,854
283,052
296,672
284,662
284,196
280,417
280,195
not total due to rounding.
_____________________________
SOURCE: Southern Nevada Water Authority
89
Nellis Air
Force Base
2,022
2,682
2,664
1,800
1,511
1,334
1,069
1,088
1,097
1,008
North
Las Vegas
49,527
55,436
53,987
51,306
50,302
50,256
48,120
44,414
46,459
44,934
Total
1
Deliveries
456,899
483,295
463,328
430,692
408,802
423,059
407,815
402,105
400,551
400,683
UNAUDITED
ENTERPRISE FUND
SELECTED CAPITAL ASSET STATISTICS
AS OF JUNE 30
Table 20
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
6,354
6,284
6,236
6,208
6,185
6,163
6,138
4,152
3,963
3,796
Active Wells(2)
63
63
63
63
63
63
64
64
65
67
Reservoirs/Tanks
41
41
41
41
41
41
40
40
39
38
Pumping Stations
53
53
53
53
53
53
51
48
46
43
Miles of Pipeline
(1)
2006 through 2008, as of December 31.
(2)
Excludes recharge wells.
90
(1)
Table 21
UNAUDITED
ENTERPRISE FUND
SCHEDULE OF INSURANCE AS OF JUNE 30, 2015
Type of Coverage and
Name of Company
Real and Personal
Property
Lexington Insurance
Company
Policy Number
Expiration Date
020413078
05/01/2016
Details of Coverage
All Risks of Direct Physical Loss or Damage including Earth Movement, Flood and
Equipment Breakdown subject to policy exclusions.
Covered Property includes Real and Personal Property, Improvements and
Betterment’s, Extra Expense, Business Interruption all as per policy form.
Policy Limit $500,000,000 subject to $100,000,000 per occurrence and annual
aggregate as respects Earth Movement, $50,000,000 per occurrence and annual
aggregate as respects Flood except $25,000,000 per occurrence and annual aggregate
as respects Flood for specific locations (5025 S Hualapai Way, 4995 Dean Martin Dr.,
3589 N. Torrey Pines Dr.)
91
Sublimits include $10,000,000 Accounts Receivable, Civil/Military Authority (30
days), Ingress/Egress (30 days), Electronic Data and Media, Errors & Omissions,
Extra Expense, including Expediting Expense, Fine Arts, Misc. Unnamed Locations,
Underground communications and water transmission/distribution lines beyond 1,000
ft, Service Interruption (24 hour qualifying period), and Valuable Papers and Records;
$15,000,000 Transit, $5,000,000 Wells as scheduled, Mobile Equipment as scheduled,
Leasehold Interest; $1,000,000 Fire Brigade Charges, Professional Fees; $694,100
Barge – VX29; $500,000 Fine Arts; $250,000 annual aggregate Pollution, Spoilage;
90 days subject to $100,000,000 Newly Acquired
Deductible $1,000,000 with the following exceptions:
Flood $100,000 per occurrence, except 5% of total insurable values for locations
within special hazard flood zone (as defined in the policy) subject to a minimum of
$100,000; and except $500,000 as respects Builder’s Risk locations
Earth Movement $100,000 per occurrence except $500,000 per occurrence as respects
Builder’s Risk locations
Windstorm/Hail $1,000,000 per occurrence except 5% of total insurable values at each
location as respects Named Storm (as defined in the policy)
Equipment Breakdown $1,000,000
Specific Described Locations under constructionMisc. Backflow installations $229,950, Communications Network Upgrade $278,300,
Perimeter Wall Improvements $425,506, Three Kids Weir $11,617,000, Silver Bowl
and Archery Weirs $11,692,000, and Springs Preserve Entrance Sign $147,229
Terrorism included in policy limit
Continued
Table 21
UNAUDITED
ENTERPRISE FUND
Continued
Name of Company
92
Policy Number
Expiration Date
Commercial General and
Auto Liability Umbrella
Excess
Starr Indemnity &
Liability Company
(NOTE: Limits of
Liability apply only once
regardless of the number
of Named Insureds
1000005352
05/01/2016
Excess Liability coverage for the Las Vegas Valley Water District, its Officials &
Employees, $10,000,000 Per Occurrence for GL & AL, $10,000,000 Employee
Benefit Liability Wrongful Acts Aggregate; $10,000,000 Products – Completed
Operations Hazard Aggregate; $1,000,000 Self-Insured Retention; Excess coverage
for General Liability, Auto Liability, Employee Benefits Liability, Work Boat P&I,
Non-Owned Aircraft and Terrorism
Following Form Excess
Liability
Allied World National
Assurance Company
(NOTE: Limits of
Liability apply only once
of Named Insureds
3054894
05/01/2016
Excess Liability coverage for the Las Vegas Valley Water District, its Officials &
Employees, $20,000,000 Per Occurrence, $20,000,000 Products/Completed
Operations, $20,000,000 Other Aggregate excess of $10,000,000 underlying coverage
BGOV45000329-20
05/01/2016
Employee Theft $3,000,000 per loss – $25,000 Deductible; Forgery or Alteration
$3,000,000 – $25,000 Deductible; Theft of Money & Security Inside the Premises
$3,000,000 – $25,000 Deductible; Robbery & Safe Burglary Inside the Premises
$3,000,000 – $25,000 Deductible; Outside the Premises $3,000,000 – $25,000
Deductible; Computer Fraud $3,000,000 – $25,000 Deductible; Funds Transfer Fraud
$3,000,000 – $25,000 Deductible; Money Orders & Counterfeit Money $1,000,000 –
$1,000 Deductible; Destruction of Electronic Data or Computer Programs $100,000
per occurrence – $25,000 Deductible; Credit, Debit or Charge Card Forgery $100,000
– $1,000 Deductible
Public Officials and
Employees Liability
ACE American Insurance
Company
G25658619-005
05/01/2016
$10,000,000 Each Claim (including Claim Expenses), $10,000,000 Aggregate;
$100,000 Crisis Management Fund; Retention – $100,000 each claim – Public
Officials Liability, Retention – $100,000 each claim – Public Entity Reimbursement
and Public Entity Liability
Pending or Prior Date: May 1, 1997, Continuity Date: May 1, 1997
Excess Public Officials
and Employees Liability
Zurich American
Insurance Company
DOC
6540125-06
05/01/2016
$10,000,000 Maximum Aggregate excess of $10,000,000 Primary Limit
Employee Fidelity
Berkley Regional
Insurance Company
Details of Coverage
Continued
Table 21
UNAUDITED
ENTERPRISE FUND
Continued
Name of Company
Employment Practices
Liability
National Union Fire
Insurance Company
Policy Number
Expiration Date
Details of Coverage
93
12325285
05/01/2016
$10,000,000 Each Claim and in the Aggregate all claims
Retention - $100,000 Class Action, Third Party, and all other loss
Specific Excess Workers
Compensation and
Employers Liability
Safety National Casualty
Corporation
(NOTE: Limits of
Liability apply only once,
except statutory,
of Named Insureds)
SP 4052886
05/01/2016
Maximum Limit of Indemnity per occurrence – Statutory, Employers’ Liability
Maximum Limit of Indemnity per occurrence $1,000,000; Self-Insured Retention per
occurrence $500,000 All Other; $1,000,000 USLH; $1,000,000 Maritime or Jones Act
Boat Hull and Protection
& Indemnity
Hartford Fire Insurance
Company
72OMGM5701
05/01/2016
Insuring 1999 32’ Duckworth Water Quality Sampling Work Boat – Hull Limit
$300,000 described perils subject to $3,000 deductible; Protection & Indemnity limit
$1,000,000 subject to $500 deductible each occurrence
BA-15-05-00015
05/01/2016
Legal Liability for the Las Vegas Valley Water District, its officials and employees;
$10,000,000 Single Limit Bodily Injury & Property Damage including Passengers
each occurrence; $25,000 Each Passenger Medical Expenses; $10,000,000 Personal
Injury Liability; $10,000 Personal Effects and Baggage Liability each Passenger;
$10,000,000 Aviation Premises Liability
SIB3097 NV
01/01/2016
Self-Insured Workers Compensation Bond – Principal:
District – Obligee: State of Nevada
Non-Owned Aircraft
Liability
StarNet Insurance
Company
Self-Insurer’s Surety
Bond
Safety National Casualty
Corporation
Las Vegas Valley Water
Continued
Table 21
UNAUDITED
ENTERPRISE FUND
Continued
Name of Company
Exhibition Floater
Hartford Fire
94
Privacy and Network
Liability
ACE American Insurance
Company
Blanket Accident
Insurance
National Union Fire
Insurance Company of
Pittsburgh, PA
Policy Number
Expiration Date
Details of Coverage
72MSKC6712
10/01/2015
Exhibit: SMG ART
(10/1/14 to 10/6/14) / Limit: $264,100
Exhibit: WICKED PLANTS
(10/1/14 to 1/16/15) / Limit: $365,000
Exhibit: BE THE DINOSAUR
(6/16/15 to 9/20/15) / Limit: $500,000
Exhibit: DINOSAUR DISCOVERY
(6/21/15 to 9/20/15) / Limit: $201,400
Exhibit: STUCCO
(10/1/14 to 10/1/15) / Limit: $5,000
Exhibit: SILVER STATE
(10/1/14 to 10/1/15) / Limit: $5,000
Exhibit: CARROT ON A STICK
(10/1/14 to 10/1/15) / Limit: $5,000
G2167509A 011
05/01/2016
Privacy Liability $5,000,000 each claim, $5,000,000 aggregate – Deductible $50,000;
Network Security Liability $5,000,000 each claim, $5,000,000 aggregate – Deductible
$50,000; Internet Media Liability $5,000,000 each claim, $5,000,000 aggregate –
Deductible $50,000; Network Extortion $5,000,000 each claim, $5,000,000 aggregate
– Deductible $50,000; Data Breach Fund – $1,000,000 each claim, $1,000,000
aggregate – Deductible $50,000; Data Breach Expenses $500,000 each claim,
$500,000 aggregate – Deductible $0; Notification and Credit Monitoring Expenses
$500,000 each claim, $500,000 aggregate – Deductible $0; Maximum Policy
Aggregate $5,000,000; Retroactive Date: Privacy Liability – May 1, 2005, Internet
Media Liability – May 1, 2005, Network Extortion – May 1, 2005, Data Breach Fund
– May 1, 2008
SRG
0009109280
12/01/2015
Accident Death Benefit – Maximum Amount $100,000, Accidental Dismemberment
Benefit – Maximum Amount $100,000, Accident Medical Expense Benefit –
Maximum Amount $100,000, Deductible Per Accident $0
Dental Maximum – Per Tooth per accident $250, Accidental Death &
Dismemberment Aggregate Limit $1,000,000
Independent
auditors’ report on
internal control
over financial
reporting and on
compliance and
other matters
based on an audit of
financial statements

LVVWD Comprehensive Annual Financial Report

Transcription

Similar documents

Poster LVA WACAC 2016

flyer here

Terry Fator Fox Theatre_PP1

Combat Veterans Motorcycle Association of Nevada - Nevada 41-1

SKYBOT HAND

FiestaPoster2012

welcome entertainment and amenities

BOY SCOUTS NIGHT OUT AT BLUE MAN GROUP!

How Did They Do That? - Sacramento Civil War Round Table

HERE