Vallejo Sanitation and Flood Control District Comprehensive Annual

Transcription

Vallejo Sanitation and Flood Control District
Comprehensive Annual Financial Report
A Component Unit of the City of Vallejo
For the Fiscal Year Ended June 30, 2012
Vallejo, California
Prepared by:
District Finance Department
Kenneth R. Spray, CPA
Finance Director and Treasurer
Introductory Section
LOCATION MAP
DISTRICT P R O F I L E
Located in southern-most Solano County along the northeast interior of the San Pablo Bay, the
Vallejo Sanitation and Flood Control District (VSFCD) is a special district created by an Act of the
California State Legislature May 19, 1952. The District is not coterminous with the City of Vallejo,
and serves an area slightly larger encompassing unincorporated County areas, and Mare Island.
VSFCD's net overall service area covers approximately thirty-six square miles.
VSFCD provides uninterrupted wastewater collection, treatment and disposal, and storm water
transmission and pollution control services, generally on a 24-hour basis, to all customer
connections within its boundary. The District owns 436 miles of sewer main and 226 miles of
storm water main and channel, operates 35 wastewater pump stations together with 9 storm
water pump stations, operates a secondary treatment wastewater treatment plant and manages
biosolids disposal through District owned land on Tubbs Island in Sonoma County. The District
mal<es beneficial use of its biosolids disposed through providing farming fertilizer for wheat crops.
The District also protects lands and inhabitants from flooding damage through its storm drainage
systems. Several of the storm drainage basins drain into Lake Dalwigk, a District owned storage
facility that appeals aesthetically with its park setting and provides marsh habitat for salamanders,
frogs, grasses, birds and other ecologically compatible wildlife.
The District services approximately 38,000 accounts that equate to approximately 48,000 dwelling
units. Dwelling units exceed accounts due to multi-residential apartments and mobile home parks.
VSFCD's service area is predominantly residential with low strength commercial establishments
and professional offices. The District does not contain any large industrial users; however, there
are several significant dischargers such as Six Flags Discovery Kingdom and certain high density
residential.
The District is governed by an eight member Board of Trustees, composed of the seven members
of the Vallejo City Council and one member from the Solano County Board of Supervisors.
Accordingly, the District is a component unit of the City of Vallejo. The Board sets policy for the
District and appoints the District Manager and Treasurer who serve at the pleasure of the Board.
The District Manager is the chief administrative official responsible for the District's day-to-day
operations in accordance with Board policies, approved budget and legal and regulatory
compliance. The Treasurer is charged with cash and investment management in accordance with
CA law, policy, and general direction.
V A L L E J O SANITATION AND F L O O D C O N T R O L DISTRICT
BOARD O F T R U S T E E S
Bob Sampayan
Trustee
Robert McConnell
Trustee
Barbara Kondylis
Trustee
MISSION
The Vallejo Sanitation and Flood Control District's Purpose
Is To Provide Quality and Cost-Effective
Wastewater
And Flood Control Services to our Community
To Protect the Public's Health, Safety and Environment
VISION
The Vallejo Sanitation and Flood Control District
Will continue to be a Model
Of Customer Service, Environmental Sensitivity, Innovation
And Regional Cooperation
VALUES
The Vallejo Sanitation and Flood Control District
Values...
Honesty and Integrity
Responsible Stewardship of Public Facilities and Funds
Excellent Customer Service
Protection of the Environment
Innovation and Initiative
A Good Work Environment
VALLEJO SANITATION AND FLOOD CONTROL DISTRICT
A COMPONENT UNIT OF THE CITY OF VALLEJO
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Introductory Section
District Profile
Board of Trustees
Mission Statement and Goals
District Boundary
Letter of Transmittal
Organizational Chart and Principal Officials
Certificate of Achievement for Excellence in Financial Reporting
Financial Section
Independent Auditors' Report
Management's Discussion and Analysis
i - vi
vii
viii
'.
Basic Financial Statements:
Statements of Net Assets 2012
. Statements of Revenues and Expenses and Changes in Fund Net Assets 2012 ..
Statements of Cash Flows 2012
Statements of Net Assets 2011
Statements of Revenues and Expenses and Changes in Fund Net Assets 2011 ..
Statements of Cash Flows 2011
Notes to Financial Statements
Required Supplementary Information
1 - 02
3-09
10-11
12
13-14
15-16
17
18-19
20 - 40
41
Statistical Section
Financial Trends Information:
Table 1 - Net Assets by Component
Table 2 - Changes in Fund Net Assets
42
42
Revenue Capacity Information:
Table 1 - Service Charge Base Rates
Table 2 - Sewer Service Accounts by Type
Table 3 - Service Area Ten Largest Users and Percentage of Service Charges...
43
43
44
Debt Capacity Information:
Table 1 - Ratios of Outstanding Debt by Type
Table 2 - Pledged Revenue Coverage
45
45
Demographic Information:
Table 1 - District Population and Economic Statistics
Table 2 - Table of Principal Employers for Current Year and Nine Years Ago
46
47
Operating Information:
Table 1 - Employees by Department
Table 2 - Operating Indicators
Table 3 - Capital Assets Data
48
48
48
Other Information
49
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CARQUINEZ
Vallejo Sanitation and
Flood Control District
WATER SHED
RESOURCE INVENTORY
1
DISTRICT BOUNDARY
3 6 ' - I 0 8 ' STORM DRAIN U N E
IMPROVED CHANNEL
NATURAL CREEKS
2 0 0 ' BUFFER ZONE
Board of Trustees
Decembers, 2012
VALLEJO SANITATION &
FLOOD CONTROL DISTRICT
Protecting public health
and the San Francisco Bay
since 1952.
450 Ryder Street
Vallejo, California 94590
phone 707-644-8949
This is the Comprehensive Annual Financial Report of the Vallejo Sanitation and
Flood Control District 0/SFCD), a component unit of the City of Vallejo, for the
fiscal year ended June 30, 2012. This report consists of three sections:
introductory, financial and statistical. Responsibility for both the accuracy of the
data, and the completeness and fairness of the presentation, including all
disclosures, rests with the District. To the best of our knowledge and belief, the
enclosed data are accurate in all material respects and are reported in a manner
designed to present fairly the financial position and results of operations of
VSFCD. All disclosures necessary to enatiie the reader to gain an understanding
of VSFCD's services to customers have been included.
www.VSFCD.com
Board of Trustees
Osby Davis
Erin Hannigan
Marti Brown
Stephanie Gomes
Barbara Kondylis
Robert H. McConnell
Bob Sampayan
Flermie Sunga
District Manager
Ronald J. Matheson
California statutes require that VSFCD issue annually a report on its financial
position and results of operations, and that this report be audited by independent
certified public accountants. The accounting firm of Vavrinek, Trine, Day & Co.,
LLP, performed the audit and issued their unqualified opinion located at the front
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.
MD&A complements this letter of transmittal and should be read in conjunction
with it.
Management of the District is responsible for establishing and maintaining a
system of internal accounting control. In fulfilling this responsibility, estimates
and judgments by management are made to assess the expected benefits and
related costs of control procedures. The objectives of a system of internal control
are to provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or disposition, and
that transactions are executed in accordance with management and board
authorization and are properly recorded to permit the preparation of financial
statements in conformity with generally accepted accounting principles. We
believe that the District's internal accounting control techniques and procedures
adequately safeguard assets and provide reasonable assurance that financial
transactions are propedy recorded.
DISTRICT S T R U C T U R E
The Board of Trustees approves the District's audit and budget, and certain
financial information must also be submitted to the State Controller's Office as
well as the County of Solano. Like financial accountability, the District is also
subject to other forms of accountability such as open meeting laws established by
California's Ralph M. Brown Act and a standing Citizens Advisory Committee.
Citizens are welcome and encouraged to attend meetings, ask questions and
voice opinions.
i
DISTRICT S T R U C T U R E (Continued)
Bi-annually, the Board adopts a user-fee based budget to serve as the approved financial plan.
The District utilizes sanitary sewer, upper lateral, and storm drainage fee ordinances to authorize
rates required to fund the District's operations and capital programs. The budget is used as a key
control device (1) to ensure Board approval for amounts set for operations and capital projects, (2)
to monitor expenses and project progress and (3) as compliance that approved spending levels
have not been exceeded. All operating activities and capital activities of the District are included
within the approved budget, and project length financial plans are adopted for all capital projects.
Financial policy supports the fiduciary responsibility for the proper safekeeping and custody of
assets. Financiai management must follow various requirements set forth by law, accounting
principles, ordinance, regulatory agencies, and covenants. The District utilizes six financial
related programs for the administration of operating goals and objectives. These programs are
the Cash and Investment Management Program, the Utility Billing and Customer Service
Program, the Debt Management Program, the Capital Assets Management Program, the
Purchasing Program, and the Financial Reporting Program. Each of these programs plays an
integral role in connection with the financial operations ofthe District.
Utility Billing and Customer Service Program: Particulady in economic downturns, it is essential to
bill and collect revenues and ensure timely and consistent practices to enforce collection and
prevent revenues from loss. The District bills its customers for wastewater and storm drainage
services directly to the property owner of record. Delinquent billings constitute a lien on the real
property served until the lien is paid or the property is sold therefore. High foreclosure activity
resulted in revenue losses that have been corrected through increasing the frequency of recording
liens to the property served. The new procedure reduced revenue losses generally to those that
cannot be prevented, such as those arising from personal bankruptcy, and was viewed favorably
by credit rating agencies who raised the District's credit rating from A to AA-.
One of the objectives of the customer service program is to provide a level of service that is
efficient, timely, consistent, and easy to understand. The District uses a written customer service
and billing procedure manual to ensure consistent level of service and application of billing policy,
including protection of confidential customer information. Planning is at the heart of a well
functioning billing program. The billing calendar is planned six months in advance to schedule the
numerous and many tasks necessary for a billing program that is timely and consistent.
Cash and Investments Management Program: The District revised its investments policy and
strategy to be more conservative through increasing its rating requirement for corporate
investments and investing in governments, minimum corporate position, and FDIC insured
investments. The billing and cash changes improve cash collections and protect investments.
Purchasing Program: The District has a purchasing program whose policy it is to perform
procurement activities in conformance with all applicable laws, rules, and regulations, and with the
highest ethical standards of business conduct. The District will contract for the purchase, rent or
lease of materials, supplies and equipment, and secure services for the District's use with the
objective that such goods and services will be available at the proper time, in the proper place,
and in quantity, quality, and price so as to receive maximum value; and, to maintain inventories of
goods at minimum levels consistent with user department's needs to . allow for maximum
conservation of District funds. Materials and supplies costs have generally trended down in the
past 10 years, in part, due to effective purchasing. See financial trends information in the
statistical section of the CAFR.
ii
DISTRICT S T R U C T U R E (Continued)
Capital Assets and Debt Management Programs: Tine District performs and bills for services due
largely to the nature and existence of extensive capital assets, such as sanitary sewer and storm
drain collection systems, a wastewater treatment plant, and the necessary tools and equipment.
The District inventories capital assets and performs condition assessments as applicable, and
identifies items to include in the Capital Improvement Plan (CIP). The CIP is a five-year rolling
plan to capture projects that take more than one year to complete. The District's debt burden per
capita decreased $28 from last year to $569. Though not considered high, the District's preferred
method is to finance capital projects on a pay-as-you-go basis. One of the major initiatives is to
perform a reserve analysis in connection with long-term financial planning to find the right balance
between rates, reserve levels, use of debt, and a consistent capital replacement program.
Cooperative Efforts: The District participates in significant cooperative efforts with the City of
Vallejo, Solano County public agencies, and utilities when common needs arise. Examples
include participation with City programs for street sweeping and odor control, and certain animal
control in unincorporated areas. The District works in conjunction with the Solano County
Disaster Council, a coalition of Solano County safety personnel, to adequately prepare and
respond in the event of an emergency. The District also participates in joint training efforts with
the greater area for emergency response and safety.
L O C A L ECONOMY
Solano County is centrally located between San Francisco and Sacramento, on Interstate 80.
The Sacramento River, San Pablo and Suisun Bays, and the Carquinez Strait are the vital water
transportation arteries that surround and serve the County.
The County encompasses
approximately 910 square miles consisting of 830 square miles of land and 80 square miles of
water. Approximately 128 square miles of the county, or 14 percent of the total land area, lies
within seven incorporated cities of Benicia, Dixon, Fairfield, Rio Vista, Suisun City, Vacaville, and
Vallejo. 95% of the County's residents live within the seven cities. The County has a rich history
as both the cities of Vallejo and Benicia have served as California's state capital during the
1850's. The County supports diversification of the local economy so that many activities
contribute to the County's prosperity and offer opportunities for residents to meet their needs.
Housing prices are extremely competitive with the larger metropolitan centers surrounding the
county, and certain segments of high school students consistently place in the top ten percent in
nationwide test scores. The County's General Plan Vision is founded on the principles of the
environment, the economy, and social equity.
For the City of Vallejo and correspondingly the District, growth is welcome so long as the growth is
consistent with plans set forth by the City. The City has plans for development of its waterfront
along the Mare Island Strait as well as redevelopment of its historic downtown. Given that the
region is an affordable and desirable place to live, with convenient commute to larger metropolitan
areas, trends show that populations and the related economics will continue to improve. Vallejo
boasts strong demographics such as high educational attainment, and a diverse and affluent
population. Vallejo scores high in many rankings of business climate, labor force, educational
opportunities, housing, transportation, and overall quality of life. These factors ensure a stable
customer base and source of revenues. With the annexation of Mare Island, the District has more
room for residential and commercial growth. Although on hold due to the recent economic
downturn, several new communities have been planned at Garth Ranch, Bordoni Ranch, Mariners
Cove, and others.
iii
MAJOR INITIATIVES
WASTEWATER
Sanitary Sewer Management Program - Capitai: The District's comprehensive sanitary sewer
management program (SSMP) utilizes a system of cleaning, flow monitoring, and TV inspection
activities to help identify problem areas in sewer lines, and sewer lines in need of replacement.
The District budgets a recurring amount for pipe replacement and rehabilitation to remove sources
of inflow & infiltration (l&l) into the sanitary sewer system to reduce or eliminate sewer overflows.
Sewer mains and laterals are prioritized on an ongoing basis using maintainability, potential of
blocl<ages, and structural integrity as the main criteria.
The projects below are some of the more significant l&l reduction and conveyance improvement
projects currently within the CIP or recently completed. The eight projects are for the replacement
of leaky easement sewer lines, a pump station refurbish, and a pump station to replace multiple
private pump stations. Lines and pipes scheduled for replacement are predominantly deteriorated
clay pipes that will be replaced with 8" HDPE pipe through pipe-bursting.
Wilson Avenue Sewer Improvements
Benson Street Sewer Improvements
Lower Lateral Replacement Project
14* Street Parallel Sewer
46 Alabama Street Sewer Replace
732 Alabama Street Sewer Replace
Sears Point Wet Well
Cypress Central Pump Station
Sanitary Sewer Management Program - Operating: The O&M portion of the SSMP consists of a
line maintenance program that is both preventative and predictive, and a fats-oils-grease (FOG)
program that is designed to reduce blockages through regulating FOG at its source. Preventative
line maintenance consists of high pressure cleaning and root removal in lines where known
problems exist. Hot spot lines can be cleaned more frequently, such as those with heavy FOG
concentrations. The District also follows a predictive approach to line maintenance through field
observation, computer modeling, and TV inspections. The District uses information that it gathers
to determine the best approach to either maintain lines or prioritize them for replacement.
Soiar Project: The District completed and placed in sen/ice a solar energy project to power the
largest pump station located at Sears Point. The solar field was good space utilization covering
the landscaped area atop an underground storage tank, approximately one-half acre. The system
consists of 744 photovoltaic modules coupled with two inverters rated 135,000 and 75,000 watts.
The combined inverters are rated at approximately 230,000 watts DC. The system will generate
approximately 350,000 kilowatt hours per year and power roughly 70% of the pump station's
electricity needs. System payback is approximately 10 years with a 25 year lifespan. The District
installed strong site security systems consisting of vibration fencing, video cameras, high voltage
lights, alarms, and a two foot deep trench to protect its investment from theft or vandalism.
STORM WATER
Stonn Drain Master Plan Projects: Given the neariy built out nature of the District, there are no
new flooding problems to identify. Tasks of the storm drain master plan included data collection,
flooding site visits, GIS mapping, computer modeling, and technical analysis of the above. These
tasks resulted in a prioritization of flooding problems and solutions structured into a 15-year capital
improvement plan. Various master plan projects are scheduled for construction as part of the
storm water CIP, e.g., the District eliminated a storm drain on Carison Street that discharged onto
private property. The system is now connected to a large storm drain on Lemon Street.
iv
MAJOR INITIATIVES (Continued)
Storm Drainage Rate Equity Study: The District conducted a storm drainage rate equity study that
determined that the current flat rate billing system does not take into account pollutant and runoff
loadings contributed to the system, and is therefore inequitable. The Citizens Advisory Committee
completed their review of the study and recommended proceeding with implementation.
Wliite Slough Project: The District and the Army Corps of Engineers have been jointly working on
a project known as White Slough. The project is to alleviate tidal and fluvial flooding caused by
White Slough and Austin Creek by utilizing the slough as a detention basin for floodwaters from
Austin Creek during the winter months. White Slough is a marsh wetland area situated between
the Napa River and the City of Vallejo that is bisected by Highway 37. The project includes
construction of enlarged concrete box culverts with powered, self-regulating flap gates under
Highway 37 to maintain water surface elevation in the slough and to allow for increased tidal
exchange during the dry season. Other improvements include additional culverts, floodwall and
levee modifications, and construction of a regulating one-way weir on Austin Creek to improve
drainage and maintain the Creek's freshwater habitat. Design for this project is nearly complete,
and like the Lemon Street Channel project below, costs have risen significantly. The District must
streamline the project to achieve flood control goals while reducing costs.
Lake Dalwigk Detention Basin: Lake Dalwigk is a flood detention basin maintained by the
District. Thick growths of tules have made vegetation control in the lake increasingly difficult, thus
reducing flood detention volume and degrading the habitat value of the lake. The Lake Dalwigk
Habitat Enhancement Project will remove most of the tule growth from the lake and create a lower
level outlet, 3 ft lower than the existing outlet, which will allow drying out of the lake in summer for
maintenance. The lake will be re-graded and most of the tules' root mass will be removed. The
re-grading will create a low flow channel and several wetlands where varying hydraulic conditions
will foster different types of vegetation and create a more varied habitat.
UPPER LATERAL
Upper Lateral Program: The Upper Lateral Program is an innovative program whose purpose is
to reduce inflow & infiltration, l&l, through replacing leaky upper laterals. The upper lateral is the
line that connects private property structures to the sewer main under the street. The District
benefits through l&l reduction while the customer benefits through receiving a replacement upper
lateral at reduced or no cost. The program is funded from charges to all customers at $1.38 per
month similar to an insurance policy. A customer applies for the program and upon approval
makes the arrangements and initially pays for the replacement of the upper lateral. The customer
then submits the receipts and receives reimbursement from the District. The upper lateral
program has been very popular and cost effective since its implementation in 1994. The intent of
the Upper Lateral Program, and hence the ongoing need, is to systematically replace every leaky
lateral in the District thereby eliminating I&l into the sewer system from laterals.
ADMINISTRATIVE
Long Term Financial Planning: In the Spring of 2012, the District started a project for long term
financial planning. The goal of long term financial planning is to find a balance of rates, reserves,
and pay-as-you-go capital financing without the issuance of new debt. An important aspect of the
project will be a quantitative analysis to determine an adequate level of reserves. Capital assets
and line replacements will be scheduled out to determine future needs and costs. The project
when complete will be updated with each new budget.
V
MAJOR INITIATIVES (Continued)
Records Management Program: The District has embarl<ed on a project to develop and enable a
comprehensive records management program to expand-on and automate the current program.
The goals of the program are to achieve effective document retention, archiving, and destruction
compliant with local, state, and federal laws, and records management with discovery capabilities
to enhance compliance, reduce litigation discovery risks, improve employee productivity, and
lower costs. The project addresses retention and management of business records kept in paper
and electronic format, including semi-structured, electronic records for e-mails and attachments,
unstructured electronic records for shared document files, and structured electronic records for
application databases. Project implementation includes five phases,(1) assessment, (2) policy
development, (3) litigation preparedness including readiness and holds, (4) solution architecture
design and data mapping, and (5) communications, training, and audit. The first two phases are
complete with three remaining.
OTHER INFORMATION
Department Focus: This year's focus has been on improving the affordability of our sewer service
charges to more of our customers by promoting our Reduced Rate Program. The Reduced Rate
Program is open to all customers of the District who are eligible for PG&E's CARE Program.
Simply complete an application, provide proof of participation in the CARE program, and that's it!
The Reduced Rate Program is 10% off the standard rate. The District has added over 250 new
reduced rate participants in just a few short months and will continue to promote the program to
expand its use to as many eligible customers as possible.
Awards: The District is the recipient of many awards of excellence at the local, state and national
levels for maintaining an efficient, well run operation. These awards are received from the local
chapter of the California Water Environment Association (CWEA), the state CWEA, the national
Water Environment Federation, and the National Association of Clean Water Agencies. Awards
received typically are for plant of the year, collection system of the year. Burke award for safety,
excellence in management recognition, and awards for individual achievements.
For the fiscal year 2011, the District received the Certificate of Achievement for Excellence in
Financial Reporting for its Comprehensive Annual Financial Report from the Government Finance
Officers Association of the United States and Canada. We believe the current Report for 2012
conforms to Certificate of Achievement program requirements and have submitted it for an award.
Acknowledgments:
In submitting this June 30, 2012 Comprehensive Annual Financial Report,
sincere appreciation is expressed to the Trustees of VSFCD for their support, to the members of
the Finance and Administrative staff, and the members of all other departments that provided
information and ideas and participated in the preparation of this report.
Very truly yours,
District Manager
vi
ORGANIZATIONAL CHART AND PRINCIPAL OFFICIALS
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1
Board of Trustees
Citizens Advisory Committee
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|| •
jl
District Legal Counsel
District Manager
Director, Engineering/Field Operations
Human Resources/District Clerk
||
Director, Plant Operations/Maintenance
Director, Safety and Risk Management
i
Field Operations Superintendent
Operations Supervisor
Director, Finance and Treasurer
Upper Lateral Program
Mechanical Maint Supervisor
HI
Director, Environmental Services
Electrical Maint Supervisor
BOARD OF T R U S T E E S
Osby Davis, President
Erin Hannigan, Vice President
Hermie Sunga, Trustee
Marti Brown, Trustee
Stephanie Gomes, Trustee
Bob Sampayan, Trustee
Robert McConnell, Trustee
Barbara Kondylis, Trustee
DISTRICT MANAGER
Ronald J . Matheson, District Manager
MANAGEMENT TEAM
Catherine Sparks, District Clerk
Gretchen Watkins, Human Resources Administrator
Zoeanne Tafolla, Director of Safety and Risk Management
Kenneth R, Spray, Finance Director and Treasurer
Rolf Ohiemutz, Director of Engineering and Field Operations
Andy Jannings, Field Operations Superintendent
Johnson Ho, Director of Plant Operations
Daniel Tafolla, Environmental Services Director
vii
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
VaUejo Sanitation and Flood
Control District, California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2011
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAERs) achieve the highest
standards in government accounting
andfinancialreporting.
President
Executive Director
viii
Financial Section
VAVRINEK, TRINE, DAY
& COMPANY, LLP
Certified Public Accountan ts
INDEPENDENT AUDITORS' REPORT
Board of Trustees
Vallejo, California
We have audited the accompanying basic financial statements of Vallejo Sanitation and Flood Control District, a
component unit of the City of Vallejo, California, as of and for the years ended June 30, 2012 and 2011. These
basic fmancial statements are the responsibility of Vallejo Sanitation and Flood Control District's management.
Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to fmancial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States. Those standards require that we plan and perform the audits to
obtaui reasonable assurance about whether the fmancial statements are free of material misstatement. A n audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements.
An audit also includes assessuig the accounting principles used and the significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the basic fmancial statements referred to above present fairly, in all material respects, the fmancial
position of Vallejo Sanitation and Flood Control District, as of June 30, 2012 and 2011, and the results of its
operations and cash flows for the years then ended in conformity with accounting principles generally accepted in
the United States of America, as well as accounting systems prescribed by the California State Controller's office
for special districts.
In accordance with Government Auditing Standards, we have also issued our report dated December 5, 2012 on
our consideration of the District's intemal control over financial reporting .and our tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that,
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the internal control over fmancial reporting or on
compliance. That report is an integral part of an audit perfoimed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and schedule of funding progress of other post-employment benefits plan, as presented in
the table of contents, be presented to supplement the basic financial statements. Such information, although not a
part of the basic financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information and
comparuig the information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic fmancial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
I
5000 Hopyard Road, Suite 335
Pleasanton, CA 94588
Tel; 925.734.6600
Fax: 925.734.6611
www.vtdcDa.com
F R E S N O • L A G U N A H I L L S • P L E A S A N T O N • R A N C H O CTJCAMONGA • P A L O A L T O • S A C R A M E N T O
Our audits were conducted for the purpose of forming opinions on the fmancial statements that collectively comprise
the Vallejo Sanitation and Flood Control District's fmancial statements as a whole. The introductory section and
statistical section are presented for purposes of additional analysis and are not a required part of the fmancial
statements. These sections have not been subjected to the auditing procedures applied in the audit of the basic
fmancial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Pleasanton, California
December 5,2012
2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
BASIC FINANCIAL STATEMENTS
Fiscal Years Ended June 30, 2012 and 2011
General
The following overview of the financial activities of the Vallejo Sanitation and Flood Control District
summarizes changes in the District's basic financial statements that begin on page 8. Basic
financial statements consist of the Statements of Net Assets, Statements of Revenues and
Expenses and Changes in Fund Net Assets, Statements of Cash Flows and Notes to Basic
Financial Statements. The main purpose of these statements is to provide the reader with
sufficient information to assess whether or not the District's overall financial position has improved
or deteriorated. Increases or decreases in net assets over time are an indicator of the District's
overall financial health and should be considered together with management's short and long-term
plans for prospectively financing programs and services. The statistical section of this report
contains a table of changes in position in net assets presented on a ten-year basis.
The Statements of Net Assets include all District assets and liabilities and provide information
about the nature and amounts of investments in resources (assets) and obligations to creditors
(liabilities). These Statements provide data for calculating analytical review measures such as
rate of return, capital structure, and liquidity. Revenues and expenses are accounted for in the
Statements of Revenues and Expenses and Changes in Fund Net Assets. These statements
measure the success of District operations for the year and determine cost recovery through user
fees and other charges, profitability, and credit worthiness. Lastly, the Statements of Cash Flows
provide information about District cash receipts and disbursements and net changes in cash that
result from operating activities, non-capital financing activities, capital financing activities and
investing activities. Thus, Statements of Cash Flows show sources and uses of cash.
The format of the District's financial statements is in accordance with business-type activities
known as enterprise funds. Enterprise funds are self-supporting funds that charge fees to users
to cover the costs of operation, maintenance and recurring capital replacement (OM&R) similar to
the accounting used by private sector companies. Enterprise funds report on the accrual basis of
accounting recognizing all assets, liabilities, revenues and expenses applicable as o f t h e financial
statement date. Although the District separately issues its own financial report, the District is a
component unit of the City of Vallejo by nature of the composition of the Board. Accordingly, the
governing body of the District, the Board of Trustees, is substantively the same as the governing
body ofthe primary government, the Vallejo City Council ofthe City of Vallejo..
For questions regarding this report, contact the District at (707) 644-8949.
Changes in Net Assets
Net assets for the fiscal years 2011-12 and 2010-11 increased (decreased) in the amounts of
$1,376,710 and ($510,694), respectively. To assist with analyzing changes in net assets and net
asset position, the following condensed financial statements show net asset position. Statements
of Net Assets, and changes in net assets, Statements of Revenues and Expenses and Changes
in Fund Net Assets, in a comparative format together with amount and percentage of change.
3
MANAGEMENT'S DISCUSSION AND ANALYSIS: (Continued)
Condensed Statements of Net Assets
Description
Fiscal
Year Ended
June 30, 2012
Fiscal
Year Ended
June 30, 2011
Current and other assets
Capital assets - net
Total assets
$64,292,829
205,126,236
269,419,065
$62,216,678
205.867.577
268.084.255
$2,076,151
(741,341)
1,334,810
3.3%
(0.4)
0.5
68,638,523
9,208,716
77,847,239
72,258,686
5.630.453
77,889.139
(3,620,163)
3,578,263
(41,900)
(5.0)
63.6
(0.1)
Net assets Invested in capital assets net of debt
Restricted for capital improvements
Restricted for debt service
Unrestricted
Total net assets
139,176,650
27,038,852
8,164,933
17,191,391
S191.571.826
136,056,343
30,462,287
6,149,838
17,526.648
$190,195,116
3,120,307
(3,423,435)
2,015,095
(335,257)
$1,376,710
2.3
(11.2)
32.8
(1.9)
0.7%
Description
Fiscal
Year Ended
June 30. 2011
Fiscal
Year Ended
June 30, 2010
Current and other assets
Total assets
$62,216,678
205.867.577
268,084,255
$62,647,120
209,155,499
271,802,619
($430,442)
(3,287.922)
(3,718,364)
(0.7%)
(1.6)
(1.4)
72,258,686
5,630.453
77,889,139
75,723,876
5,372,933
81,096,809
(3,465,190)
257,520
(3,207.670)
(4.6)
4.8
(4.0)
136,056,343
30,462,287
6,149,838
17,526,648
$190,195,116
135,697,158
30,153,562
7,723,681
17,131,409
$190,705,810
359,185
308,725
(1,573,843)
395.239
($510,694)
0.3
1.0
(20.4)
2.3
(0.3%)
Long-term debt - net
Other liabilities
Total liabilities
Other liabilities
Total liabilities
Net assets Invested in capital assets net of debt
Unrestricted
Total net assets
Amount
Increase
(Decrease)
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
Percent
Increase
(Decrease)
The Statements of Net Assets reflect debt repayment for each of the fiscal years 2011-12 and
2010- 11 with refinancing of debt in 2010-11. Capital assets increased for each of the fiscal years
2011- 12 and 2010-11 for capital assets constructed and for capital contributions from developers,
but decreased on a net basis after depreciation. Changes in net assets restricted for capital
improvements represent net increases (decreases) in connection fees collected or reimbursed
through debt issuance. Changes in unrestricted net assets reflect swings due to debt issuance
and the utilization of cash to construct capital assets. Net assets in total increased (decreased)
overall by the amount of income (loss) before capital contributions plus capital contributions
recognized from connection fees and developers.
4
MANAGEMENTS DISCUSSION AND ANALYSIS: (Continued)
Condensed Statements of Revenues and Expenses and Changes in Fund Net Assets
Fiscal
Year Ended
June 30, 2012
Fiscal
Year Ended
June 30, 2011
$25,917,040
743,917
729,637
1,606,780
329,894
29,327,268
$25,192,643
731,993
762,361
1,042,068
200,344
27,929,409
$724,397
11,924
(32,724)
564,712
129,550
1,397,859
Salaries and benefits
Operations supplies and services
Depreciation and amortization
Utilities and telephone
General and administrative
Interest expense
Total expenses
15,326,564
2,607,931
8,279,443
1,357,460
1,996,831
3,195,587
32,763,816
11,806,666
2,645,808
8,164,530
1,737,079
1,686,030
3,244.200
29,284,313
3,519,898
(37,877)
114,913
(379,619)
310,801
(48,613)
3,479,503
Income (loss) before capitai contrib
Add: connection fee revenue
Add: capitai contributions
Inc (dec) in fund net assets
(3,436,548)
306,174
4,507,084
1,376,710
(1,354,904)
214,574
629,636
(510,694)
(2,081,644)
91,600
3,877.448
1,887,404
Description
Service charges
Other operating revenues
Property taxes
Interest and investment income
Other nonoper revenues(expenses)
Total revenues
Fund net assets - beg of year
Fund net assets - end of year
190.195,116
$191,571,826
190,705,810
$190,195,116
Amount
Increase
(Decrease)
(510.694)
$1,376,710
Percent
Increase
(Decrease)
2.9%
1.6
(4.3)
54.2
64.7
5.0
29.8
(1.4)
1.4
(21.9)
18.4
(1.5)
11.9
153.6
42.7
615.8
369.6
(0.3)
0.7%
Service charges increased overall for 2012 due to a rate increase of 4 % within the wastewater
fund. There were no rate increases for each of the storm water and upper iaterai funds. Other
operating revenues consist of inspection fees and late charges and are consistent between years.
Property taxes are an allocation from the State of California to special districts known as ABS
money that are subventions not restricted as to purpose, and decreased due to assessed value
decline. Non-operating revenue increased for share crop and solar rebates. Interest and
investment income increased over the prior year due to large non-cash fair value increase of
approximately $650K. Actual interest received is consistent with the prior year at approximately
$1M or about 2%o on average. Capital contributions were up due to new developments accepted.
Connection fees increased in 2012 due to slightly larger fees per connection.
Salaries and benefits are slightly lower for the current year at approximately $11.3M due to
staffing reductions from previous years. The amount reported for salaries and benefits is higher
due to the one-time approximate $4M side fund payoff with CalPERS. The wastewater fund
borrowed from the storm water fund for repayment over twelve years at 2% interest financed from
savings from the CalPERS employer rate. The transaction will save the District approximately
$2M from CalPERS side fund payments avoided. Operating supplies are consistent and slightly
down from the prior year, and utilities are down due to savings from the solar panels. General
and administrative are up due mainly to increases in claims deductibles and permit fees.
5
Condensed Statements of Revenues and Expenses and Changes in Fund Net Assets
Fiscal
Year Ended
June 30, 2011
Fiscal
Year Ended
June 30, 2010
$25,192,643
731,993
762,361
1,042,068
200,344
27,929,409
$24,122,220
709,218
853,499
2,328,809
189,135
28,202,881
$1,070,423
22,775
(91,138)
(1,286,741)
11.209
(273,472)
Operations supplies and services
Interest expense
Total expenses
11,806,666
2,645,808
8,164,530
1,737,079
1,686,030
3,244,200
29,284,313
11,046,193
2,893,886
8,207,116
1,699,546
2,034,036
3,380,499
29,261,276
760,473
(248,078)
(42,586)
37,533
(348,006)
(136.299)
23,037
6.9
(8.6)
(0.5)
2.2
(17.1)
(4.0)
0.1
Income (loss) before capital contrib
Add (less): capital contributions
Inc (dec) in fund net assets
(1,354,904)
214,574 .
629,636
(510,694)
(1,058,395)
906,339
(296,509)
(691,765)
629,636
(358,638)
(28.0)
(76.3)
100.0
(235.9)
Description
Service charges
Property taxes
Interest and investment income
Other nonoper revenues(expenses)
Total revenues
190,705,810
$190,195,116
(152,056)
190,857,866
$190,705,810
Amount
Increase
(Decrease)
(152,056)
($510,694)
Percent
Increase
(Decrease)
4.4%
3.2
(10.7)
(55.3)
5.9
(1.0)
(0.1)
(0.3%)
Service charges increased overall for 2011 due to a rate increase of 4 % within the wastewater
fund. There were no rate increases for each of the storm water and upper lateral funds. Other
operating revenues increased slightly due to a small increase in late charges, while other types of
revenue sources-were consistent between years. Property taxes are an allocation from the State
of California to special districts known as ABS money that are subventions not restricted as to
purpose. Property tax revenue decreased due to declining County of Soiano assessed values.
Interest and investment income decreased substantially due to interest rates that were essentially
cut in half. The District previously earned approximately 4%) interest income on average and now
receives approximately 2% on average. Interest rates on investments are not expected to rise
anytime soon. The District currently invests in governments and FDIC insured investments, and
small positions in corporate. Connection fees represent a one-time fee for hookup to the sewer
system, include a capacity component, and are legally restricted for future capital purposes.
Connection fees are also collected for change of use when increasing discharge strength. These
fees vary with construction activity and decreased in 2011 due to fewer large connections. Capital
contributions received include cash contributions from intergovernmental and private developers
as well as non-cash contributions from the donation of new development sewage and storm
drainage infrastructure placed in service. There were no new developments accepted during the
fiscal year 2010, and accordingly, no contributions from developers.
6
Capital Assets and Debt Administration (Notes 3 and 6, respectively)
In addition to OM&R, the District also maintains an ongoing capital improvement program. This
program largely influences how the District budgets and sets its rates. The most recent update to
the capital improvement program was with the adoption of the 11-12 & 12-13 bi-annual budget.
The program sets forth a series of projects to upgrade and replace aging District sewer systems
with emphasis on line rehabilitation and elimination of overflows. The total program amounts to
approximately $3M annually to be financed from the rate pay-as-you-go. During the year ended
June 30, 2012, the District completed and placed in service projects and various capitai assets
while adding to its construction in progress all totaling approximately $7,612,000.
Capital assets net of accumulated depreciation are as follows:
DescriDtion
Land and land improvements
Construction in progress
Treatment plant & facilities
Pump stations
Collection & transmission systems
Buildings and improvements
Machinery and equipment
Description
Pump stations
Collection & transmission systems
Fiscal
Year Ended
June 30, 2012
Fiscal
Year Ended
June 30, 2011
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
$2,810,716
5,404,868
75,768,877
21,972,239
93,836,836
1,006,554
4326,146
$205,126,236
$2,810,716
6,896,153
78,867,886
21,376,428
90,345,203
924,357
4,646,834
$205,867,577
($1,491,285)
(3,099,009)
595,811
3,491,633
82,197
(320,688)
($741,341)
0.0%
(21.6)
(3.9)
2.8
3.9
8.9
(6.9)
(0.4)
Fiscal
Year Ended
June 30, 2011
Fiscal
Year Ended
June 30, 2010
Amount
Increase
(Decrease)
$2,810,716
6,896,153
78,867,886
21,376,428
90,345,203
924,357
4,646,834
$205,867,577
$2,810,716
6,230,889
81,802,079
22,392,561
90,437,419
936,182
4.545,653
$209,155,499
$665,264
(2,934,193)
(1,016,133)
(92,216)
(11,825)
101,181
($3,287,922)
Percent
Increase
(Decrease)
0.0%
10.7
(3.6)
(4.5)
(0.1)
(1.3)
2.2
(1.6)
Some ofthe more significant capital assets placed in service and construction in progress include:
1.
2.
3.
4.
5.
6.
7.
Various plant facilities and collection equipment
Completed project - Solar panels Sears Point
Completed project - Wilson Avenue sewer improvements
Completed project - Bar Screen for Missouri pump station
Completed project - various collection systems/drainage improv
CIP - various sanitary sewer overflow elimination program
CIP - various storm drainage projects
Total
7
$1,927,306
1,300,110
1,379,529
137,353
776,076
1,557,451
645,521
$7.723.346
Long-term debt net of premium (discount) is as follows:
Description
2011 Revenue bonds, net
2006 Certificates of participation, net
2008 State Revolving Fund loan
Description
2011 Revenue bonds, net
2001 Certificates of participation
Interest rebate liability
Fiscal
Year Ended
June 30. 2012
Fiscal
Year Ended
June 30. 2011
$3,151,297
35,925,211
17,422,591
3,509,355
8,630,069
$68,638,523
$3,330,229
36,749,568
19,137,247
3,737,115
9,304,527
$72,258,686
Fiscal
Year Ended
June 30. 2011
Fiscal
Year Ended
June 30, 2010
$3,330,229
36,749,568
19,137,247
3,737,115
9,304,527
$72,258,686
$37,543,924
3,460,000
20,766,902
3,959,536
9,962,536
30,978
$75,723,876
Amount
Increase
(Decrease)
($178,932)
(824,357)
(1,714,656)
(227,760)
(674,458)
($3,620,163)
Percent
Increase
(Decrease)
(5.4%)
(2.2)
(9.0)
(6.1)
(7.2)
(5.0)
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
$3,330,229
(794,356)
(3,460,000)
(1,629,655)
(222,421)
(658,009)
(30,978)
($3,465,190)
100.0%
(2.1)
(100.0)
(7.8)
(5.6)
(6.6)
(100.0)
(4.6)
The District continues to expand, upgrade and improve the quality of its sewage collection and
treatment systems to keep current with environmental regulations and the needs of its service
area. The District uses debt to finance the significant costs of major upgrades to spread the costs
to future as well as current residents, rather than current residents bearing ail the costs through
use of pay-as-you-go. There are three issuances of bonded debt currently outstanding, but there
have been a total of five.
The District issued Series 2011 Revenue Bonds in the principal amount of $3,345,000 refunding
the 2001 Ceri:ificates of Part:icipation to replace variable-rate debt with fixed rate. The series 2006
Certificates of Participation were issued at premium during 2005-06 to construct the Ryder Street
Storage Basin and to correct a bottleneck, the Calaveras / Mendocino / Mariposa sewer
improvement project now completed and placed in service. The District entered into a loan dated
January 24, 2008 with the State of California's State Revolving Fund. The loan is in the principal
amount of $4,406,072 with interest at 2.4%) for repayment over 20 years. The District entered into
a loan August 24, 2004, with the State Revolving Fund program to continue financing the SSOEP
project. The loan was in the principal amount of $13.9M with interest at 2.5% to be repaid over 20
years.
The above capital asset and debt administration information is summary only. See the notes to
the financial statements for additional details. Total principal repayment for 2012 and 2011 was
$3,677,217 and $3,360,429, respectively.
8
Rates and Other Economic Factors
The District is governed in part by provisions of the State Water Resources Control Board that say
that rate-based revenues must at minimum cover the costs of operation, maintenance and
recurring capital replacement (OM&R). Economic downturns can lead to increased customer
bankruptcies and foreclosures that can reduce billed utility revenues realized, and also reduce
construction activity that reduces connection fees received. Revenues can also be affected by
declines in assessed property values that reduce property taxes, and the impact of unfavorable
economic conditions on investment interest rates. Accordingly, the District sets its rates to its
users to cover the costs of OM&R and debt financed capitai improvements plus any increments
for known or anticipated changes that may occur in connection with respective program costs.
For the wastewater fund, rate adjustments were approved by the Board of Trustees for each of
the three fiscal years beginning July 1, 2012, 2013, and 2014 to fund debt service, maintain a
capital program, keep with rising costs, and in accordance with the District's Long Term Financiai
Plan. The rate adjustments were 2.5% for each of the three fiscal years, respectively. The storm
water fund last changed its rate in 1998 from $1.77 per month to $1.97 per month. A rate equity
study was performed for the storm water fund that included workshops conducted with the
Citizens Advisory Committee that determined the rate structure to be inequitable. The current flat
rate of $1.97 per month does not take into account runoff and pollutant loadings for customer
classifications. The Committee's findings recommend proceeding to implement the rate equity
study. The upper lateral fund saw a rate adjustment during the 2004-05 fiscal year from .69 cents
per month to $1.38 per month. The upper lateral rate is a function of program demand that
remains high.
District Funding: With each budget cycle, the District starts the funding process by reviewing its
financial requirements for salaries & benefits, operations materials, supplies & services, debt
service, insurance, and capital improvements. Service charges to customers are established after
funding is considered from all other alternative sources such as property tax revenues, connection
fees, probable interest revenues, and intergovernmental and developer contributions.
For the fiscal year 2011-12, the District contained approximately 38,000 customer accounts and
recognized approximately $25,917,000 in revenue from rate-based service charges. The District
diligently pursues control of its service charges with its review of expenses, revenues, and cash
reserves. The statistical section of this report contains a table of service charge rates that shows
steady but mild growth.
Property Taxes: The District receives an ailocation of property taxes authorized by the State of
California that historically has amounted to approximately $1,000,000 annually or 5% of total
revenues. High unemployment and high foreclosure rates within Solano County are the two
leading adverse economic conditions that have driven Solano County property tax revenues down
to now approximateiy $730,000, and they may go down a iittie bit further if conditions do not
improve. The District will compensate through use of rate-based revenues to properiy finance its
requirements for operations, maintenance, and capital programs.
9
Statements of Net Assets
June 30, 2012
ASSETS
Wastewater
CURRENT ASSETS:
Equity in pooled cash and investments
investments restricted for certificates of participation
Accounts receivable - net of uncollectible allowance
Accrued interest receivable
Inventory and prepaid expenses
Current portion of notes receivable
Other current assets
Total current assets
NONCURRENT ASSETS:
Wastewater and storm drainage facilities - net
of accumulated depreciation
Issuance costs on certificates of participation - net
of accumulated amortization
Deferred lease - wet weather storage basin
Deferred project costs - encroachment permits
Notes receivable
Total noncurrent assets
Total assets
Business Type Activities - Enterprise Funds
Storm Water
Upper Lateral
Totals
$15,533,442
8,977,699
7,122,764
1,860
250,973
9,745
35.827
31.932.310
$24,223,655
$943,230
308,153
2,499
9,451
305,322
176,072
96
541
24.849.080
1,119,939
$40,700,327
8,977,699
7,606,989
4,455
260,965
315,067
35.827
57.901.329
170,174,621
34,104,312
847,303
205,126,236
847.303
$1,967,242
818,128
1,568,199
324,705
3.680.468
211.517.736
$269,419,065
818,128
1,568,199
175.502
172.736.450
$204,668,760
324,705
3.504.966
37.933.983
$62,783,063
(Continued on Page 11)
See accompanying notes to financial statements
1
June 30, 2012
LIABILITIES AND NET ASSETS
Wastewater
CURRENT LIABILITIES:
Accounts payable
Construction retentions payable
Accrued salaries and employee benefits
Interest payable on bonds and loans payable
Refundable connection deposits
Current portion of certificates of participation
Current portion of revenue bonds payable
Current portion of loans and notes payable
Other current liabilities
Total current liabilities
LONG TERM LIABILITIES:
Certificates of participation, net of (disc) prem
and deferred amount on refunding
Revenue bonds payable, net of premium
Loans and notes payable
Compensated absences payable
Net OPEB obligation
Total long term liabilities
Total liabilities
NET ASSETS:
Invested in capital assets net of related debt
Unrestricted
Total net assets
Business Type Activities - Enterorise Funds
Storm Water
Upper Lateral
$687,488
15,411
765,733
812,766
280,697
2,720,000
195,000
1,229,867
267.947
6.974.909
$240,658
6,684
26,351
$14,385
9,106
612,673
886.366
23.491
Totals
$942,531
22,095
801,190
812,766
893,370
2,720,000
195,000
1,229,867
267.947
7.884.766
50,627,803
50,627,803
2,956,297
14,624,926
897,256
736.317
69.842.599
76.817.508
2,956,297
14,624,926
926,829
826.618
69.962.473
77.847.239
103,907,014
5,304,387
8,164,933
10.474.918
SI 27,851.252
18,347
90.301
108.648
995.014
11,226
11.226
34.717
34,422,333
21,734,465
847,303
5.631.251
$61,788,049
1.085.222
$1,932,525
139,176,650
27,038,852
8,164,933
17.191.391
$191,571,826
(Continued from Page 10)
11
Statements of Revenues and Expenses and Changes in Fund Net Assets
Year Ended June 30, 2012
Wastewater
OPERATING REVENUES:
Service charges
Total operating revenues
Business Tvoe Activities - Enterorise Funds
Storm Water
Upper Lateral
$24,190,378
718.813
24.909.191
OPERATING EXPENSES:
Operations materials, supplies and services
Total operating expenses
Operating income (loss)
14,704,094
2,208,626
7,137,448
1,314,106
1.831.875
27.196.149
(2.286.9581
$1,133,686
15.928
1.149.614
514,738
155,041
1,112,612
43,354
160.979
1.986.724
(837.110)
$592,976
9.176
602.152
107,732
244,264
29,383
3.977
385.356
216.796
Totals
$25,917,040
743.917
26.660.957
15,326,564
2,607,931
8,279,443
1,357,460
1.996.831
29.568.229
(2.907.272)
NONOPERATING REVENUES (EXPENSES):
Property taxes
Interest and other investment income
Interest expense
Other nonoperating revenues (expenses)
Total nonoperating revenues (expenses)
729,637
918,409
(3,195,587)
331.885
(1.215.656)
Income (loss) before capital contributions
Add: capital contributions received
Increase (decrease) in fund net assets
(3,502,614)
135,008
2.143.844
(1,223,762)
(167,929)
171,166
2.363.240
2,366,477
233,995
233,995
(3,436,548)
306,174
4.507.084
1,376,710
129.075.014
$127,851,252
59.421.572
$61,788,049
1.698.530
$1,932,525
190.195.116
$191,571,826
671,172
17,199
(1.991)
669.181
17.199
• 729,637
1,606,780
(3,195,587)
329.894
(529.276)
1
Statements of Cash Flows
Wastewater
OPERATING ACTIVITIES:
Cash received from user charges
Cash paid for employee salaries and benefits
Payments to vendors and suppliers
Other nonoperating revenues
Net cash provided by (used in) operating activities
NONCAPITAL FINANCING ACTIVITIES:
Property taxes
Net cash provided by noncapital financing activities
$24,799,966
(14,662,010)
(5,389,494)
350.783
5.099.245
Stonn Water
$1,150,921
(510,376)
(185,098)
2.557
458.004
U p p e r Lateral
$590,767
(106,820)
(235,651)
248,296
729.637
729.637
Totals
$26,541,654
(15,279,206)
(5,810,243)
353.340
5.805,545
729.637
729.637
CAPITAL FINANCING ACTIVITIES:
Connection fees received
Cash paid for capital acquisitions
Funding payment on long-term lease
Notes receivable cash collections
Proceeds from sale of fixed assets
Principal payments on long-temn debt
Interest paid on long-term debt
Net cash provided by (used in) capital financing activities
116,402
(2,473,377)
(250,000)
10,389
10,211
(3,677,217)
(3.211.946)
(9.475.538)
178,916
(715,519)
(35,700)
(536.603)
(35.700)
295,318
(3,224,596)
(250,000)
10,389
10,211
(3,677,217)
(3.211,946)
(10,047.841)
INVESTING ACTIVITIES:
Investment interest received
Proceeds from investment sales and maturities
Purchase of investments
Net cash provided by (used in) investing activities
Net increase (decrease) in cash and cash equivalents
537,516
13,920,120
(8,822,605)
5.635,031
1,988,375
419,146
21,716,983
(21.859.639)
276,490
197,891
10,190
845,623
(1.001.178)
(145.365)
67,231
966,852
36,482,726
(31.683,422)
5.766.156
2,253,497
Cash and cash equivalents - beg of year
Cash and cash equivalents - end of year
3,905.547
S5.893.922
4,632,885
S4.830.776
120.872
S1R8,in?!
8,659,304
S10.912.801
13
Wastewater
CASH AND CASH EQUIVALENTS RECONCILIATION:
Total carrying amount of deposits
Total carrying / fair value of investments
Petty casii
Total cash and investments
$333,516
24,171,025
6,600
$24,511,141
Investments restricted for certificates of participation
Less non cash and cash equivalents
Total cash and cash equivalents
OPERATING ACTIVITIES RECONCILIATION:
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Provision for uncollectible allowance
Deferred lease amortization
Feasibility studies and CIP not capitalized
Net OPEB obligation
Changes in current assets and liabilities:
(Increase) decrease in:
Accounts receivable and other current assets
Increase (decrease) in:
Accounts payable and other current liabilities
NON-CASH TRANSACTIONS:
Investment fair value increase (decrease)
Total non-cash transactions
Storm Water
Upper Lateral
Totals
$520,323
23,703,332
$20,261
922,969
S24,2??!,a'i5
£943.230
$24,223,655
$943,230
24,223,655
(19.392.879)
$4,830,776
943,230
(755,127)
$188,103
$40,700,327
8.977.699
49,678,026
(38.765.225)
sinqi2.8ni
($2,286,958)
($837,110)
$216,796
($2,907,272)
7,137,448
62,656
26,605
98,254
44,471
1,112,612
(7,102)
$15,533,442
8.977,699
24,511,141
(18,617,219')
$5,893,fl2?
2,935
5,577
(172,426)
(161,688)
350.783
.^.6 099245
$384,830
S384.830
29,383
(7,570)
6,276
172,259
2,557
S45R nn4
$259,359
S259.359
$874,100
48,797,326
6.600
S49.678.026
8,279,443
47,984
26,605
101,189
50,048
(3,970)
(170,120)
13,657
S248.296
24,328
353.340
S5,Rn5,.545
$7,156
S7.156
$651,345
S651.345
14
June 30, 2011
ASSETS
Wastewater
CURRENT ASSETS:
Restricted-construction debt proceeds
Accounts receivable - net of uncollectible allowance
Accrued interest receivable
Inventory and prepaid expenses
Current portion of notes receivable
Other current assets
Total current assets
NONCURRENT ASSETS:
Wastewater and storm drainage facilities - net
of accumulated depreciation
Issuance costs on certificates of participation - net
of accumulated amortization
Deferred lease - wet weather storage basin
Deferred project costs - encroachment permits
Notes receivable
Total noncurrent assets
Total assets
Upper Lateral
Storm Water
Totals
$16,446,689
7,036,019
40,641
7,013,539
2,532
249,372
10,391
36.883
30.836.066
$27,344,896
$713,427
309,460
4,052
7,318
164,687
104
386
27.665.726
878.604
$44,505,012
7,036,019
40,641
7,487,686
6,688
257,076
10,391
36.883
59.380.396
172,877,710
32,148,881
840,986
205,867,577
840,986
$1,719,590
878,746
1,344,804
332,568
280.164
208.703.859
$268,084,255
878,746
1,344,804
185.245
175.286.505
$206,122,571
332,568
94919
32.576.368
$60,242,094
See accompanying notes to financial-statements
15
June 30, 2011
LIABILITIES AND NET ASSETS
Wastewater
CURRENT LIABILITIES:
Accounts payable
Construction retentions payable
Accrued salaries and employee benefits
Interest payable on certificates of participation
Refundable connection deposits
Current portion of certificates of participation
Current portion of revenue bonds payable
Current portion of loans payable
Ottier current liabilities
Total current liabilities
LONG TERM LIABILITIES:
Certificates of participation, net of (disc) prem
Revenue bonds payable, net of premium
Loans payable
Compensated absences payable
Net OPEB obligation
Total long term liabilities
Total liabilities
NET ASSETS:
Invested in capital assets net of related debt
Restricted for debt sen/ice
Unsrestricted
Total net assets
Storm Water
Upper Lateral
$911,109
131,529
698,712
886,180
299,304
2,595,000
180,000
902,218
203.527
6.807.579
$67,184
17,779
20,197
$1,640
7,706
604,922
710.082
9.346
Totals
$979,933
149,308
726,615
886,180
904,226
2,595,000
180,000
902,218
203.527
7.527.007
53,291,815
53,291,815
3,150,229
12,139,424
966,664
691.846
70.239.978
77.047.557
3,150,229
12,139,424
1,004,094
776.570
70.362.132
77.889.139
102,751,687
5,062,773
6,149,838
15.110.716
$129.075.014
25,716
84.724
110.440
820.522
11,714
11.714
21.060
32,463,670
25,399,514
840,986
1.558.388
$59.421.572
857.544
$1.698.530
136,056,343
30,462,287
6,149,838
17.526.648
$190.195.116
16
Statements of Revenues and Expenses and Changes in Fund Net Assets
Wastewater
OPERATING REVENUES:
Service charges
Business Tvoe Activities - Enterprise Funds
Storm Water
Upper Lateral
$23,480,649
714,093
24,194.742
OPERATING EXPENSES:
11,159,601
2,164,674
7,043,950
1,580,958
1.541.620
23.490.803
703.939
$1,133,415
11.339
1.144.754
541,090
249,908
1,091,554
156,121
140.433
2.179.106
f1.034.352)
$578,579
6.561
585.140
105,975
231,226
29,026
3.977
370.204
214936
Totals
$25,192,643
731.993
25.924.636
11,806,666
2,645,808
8,164,530
1,737,079
1.686.030
26.040.113
(115.477)
Property taxes
Interest and other investment income (loss)
Interest expense
Other nonoperating revenues (expenses)
762,361
581,386
(3,244,200)
196.070
n.704.383)
Add: capital contributions received
(1,000,444)
95,088
309.265
(596,091)
(579,924)
119,486
320.371
(140,067)
225,464
225,464
(1,354,904)
214,574
629.636
(510,694)
129.671.105
$129,075,014
59.561.639
$59,421,572
1.473,066
$1,698,530
190.705.810
$190,195,116
450,154
10,528
4.274
454.428
10.528
762,361
1,042,068
(3,244,200)
200.344
n.239.427)
17
Wastewater
OPERATING ACTIVITIES:
Cash received from user charges
Cash paid for employee salaries and benefits
Payments to vendors and suppliers
NONCAPITAL FINANCING ACTIVITIES:
Property taxes
Net cash provided by noncapital financing activities
$23,792,313
(10,864,317)
(5,204,617)
196.070
7.919.449
Business Tvoe Activities - Enterprise Funds
Storm Water
Upper Lateral
$1,136,087
(515,260)
(548,964)
4.274
76.137
$585,629
(103,082)
(239,087)
243.460
762.361
762.361
Totals
$25,514,029
(11,482,659)
(5,992,668)
200.344
8.239.046
762.361
762.361
CAPITAL FINANCING ACTIVITIES:
Connection fees received
Cash paid for capital acquisitions
Capital contributions cash received
Funding payment on long-term lease
Notes receivable cash collections
Proceeds from issuance of debt
Refunding amount placed in escrow
Issuance costs paid on new debt
Principal payments on long-tenn debt
Interest paid on long-term debt
Net cash used in capital financing activities
49,116
(3,833,051)
67,202
(250,000)
11,348
3,383,409
(3,460,000)
(160,900)
(3,360,429)
(3.216.358)
(10.769.663)
125,770
(436,529)
(36,390)
(310.759)
(36,390)
INVESTING ACTIVITIES:
Investment interest received
Interest rebate liability paid
Proceeds from investment sales and maturities
Purchase of investments
Net cash provided by (used in) investing activities
Net increase (decrease) in cash and cash equivalents
610,639
(24,517)
15,347,504
(17.342.916)
(1.409.290)
(3,497,143)
460,856
10,722
24,940,511
(28.848.290)
(3.446,923)
(3,681,545)
659,446
(908,414)
(238.246)
(31,176)
1,082,217
(24,517)
40,947,461
(47,099.620)
(5.094,459)
(7,209,864)
Cash and cash equivalents - beg of year
Cash and cash equivalents - end of year
7.402,690
S3.905.547
8.314.430
$4,632,885
152,048
SI 20.872
15,869,168
S8.659.304
174,886
(4,305,970)
67,202
(250,000)
11,348
3,383,409
(3,460,000)
(160,900)
(3,360,429)
(3.216.358)
(11.116,812)
18
Wastewater
CASH AND CASH EQUIVALENTS RECONCILIATION:
Total carrying amount of deposits
Total carrying / fair value of investments
Petty cash
$338,499
23,178,250
6.600
$23,523,349
Restricted construction debt proceeds
Less non cash and cash equivalents
Total cash and cash equivalents
OPERATING ACTIVITIES RECONCILIATION:
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Provision for uncollectible allowance
Deferred lease amortization
Feasibility studies and CIP not capitalized
Net OPEB obligation
Changes in current assets and liabilities:
(Increase) decrease in:
Accounts receivable and other current assets
Increase (decrease) in:
Accounts payable and other current liabilities
NON-CASH TRANSACTIONS:
Investment fair value increase (decrease)
Interest rebate liability (increase) decrease
Total non-cash transactions
Business Type Activities - Enterorise Funds
Storm Water
Upper Lateral
$16,446,689
40,641
7.036.419
23,523,349
(19.617.802')
$3,905,547
$703,939
7,043,950
18,210
26,605
94,853
124,415
.
Totals
$563,027
26,781,869
$14,689
698,738
$27 344 R9R
.$713,427
$27,344,896
$713,427
27,344,896
(22.712.011')
$4.R3?RR5
713,427
(592.555)
$120,872
($1,034,352)
$214,936
($115,477)
29,026
3,507
8,164,530
22,924
26,605
109,752
140,342
1,091,554
1,207
(418,918)
130,325
196.070
$7,919,449
($28,406)
6.461
($21.94.51
14,899
15,927
(9,600)
(3,083)
(7,732)
4.274
$76,137
(926)
$243,460
($1,585)
($24)
($1.5851
($241
$916,215
50,658,857
6.600
$51,581,672
$44,505,012
40,641
7,036.419
51,581,672
(42,922,368)
$8,659,304
(431,601)
121,627
200,344
$8,239,046
($30,015)
6.461
($23.5541
19
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
General
The Vallejo Sanitation and Flood Control District is a special district body corporate and politic of
the County of Solano formed April 19, 1952 by Act 8934 of the California legislature. The District
is not coterminous with the City of Vallejo and serves additional unincorporated County areas.
The District provides wastewater collection and treatment and storm water transmission over its
entire service area.
The Financial Reporting Entity
The nucleus for the financial reporting entity usually is a primary government, but may be a
component unit when the component unit provides separately issued financial statements.
Component units are legally separate organizations for which the elected officials of the primary
government are financially accountable. Financial accountability exists in situations where a
voting majority of an organization's governing body is substantively the same as the governing
body ofthe primary government. The District's Board of Trustees consists ofthe seven members
of the Vallejo City Council and one member appointed by the Solano County Board of
Supervisors. There is no financial benefit or burden relationship with the primary government or
operational responsibility. The District is a discrete component unit of the City of Vallejo.
Financing Corporation
The Vallejo Sanitation and Flood Control District's Financing Corporation was organized July 1,
1993 under the Non-Profit Public Benefit Corporation Law of the State of California solely for the
purpose of providing financial assistance to the District by acquiring, constructing, improving and
financing various facilities, land and equipment, and by leasing or selling certain facilities, land and
equipment for the use, benefit and enjoyment of the public served by the District. The Corporation
has no members and its Board of Directors consists of the same, persons who serve as the Board
of Trustees of the District. There is no financial benefit or burden relationship with the primary
government or operational responsibility. The Financing Corporation is a discrete component unit
of the City of Vallejo. There are no separate financial statements prepared for the Corporation.
Basis of Presentation
The District provides three services to users within its sen/ice area, wastewater, storm water, and
upper lateral, utilizing separate enterprise funds. For financial statement purposes, the District
reports each fund as a major fund for accountability, consistency, and public interest. Enterprise
funds are used to account for those operations that are financed and operated through user fees
in a manner similar to private business or where the Board has decided that the determination of
revenues earned, costs incurred and/or net income is necessary for management accountability.
Measurement Focus and Basis of Accounting
Enterprise funds are accounted for on the flow of economic resources measurement focus
utilizing the full accrual basis of accounting. Under this method, assets and revenues are
recorded when earned, and liabilities and expenses are recorded when the related obligations are
incurred. As permitted by the Governmental Accounting Standards Board's Statement Number
20, the District applies all applicable GASB pronouncements as well as all applicable FASB
pronouncements issued on or before November 30,1989.
20
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)
Cash Equivalents and Investments
Cash equivalents include short-term, highly liquid investments that are readily convertible to
known amounts of cash with an original maturity of three months or less. These consist of the
carrying value of the District's deposits with financial institutions, short-term investments with the
State of CA's Local Agency Investment Fund and the money fund portion of custody investment
and debt service trustee accounts. The statements of cash flows measure and identify changes in
these cash and cash equivalents.
Investments are stated at fair value.
Fair value is the amount at which an investment could be
exchanged in a current transaction between willing parties. All investment income and changes in
fair value is recognized in the Statements of Revenues and Expenses and Changes in Fund Net
Assets. Investments include custody securities with a fiscal agent and construction and reserve
funds with trustee banks.
Accounts Receivable
Accounts receivable represent service charges and other revenues billed and uncollected at yearend, and includes accrued amounts for items billed after year-end for service periods before yearend. Each year the District records liens for delinquent charges and collects through the property
tax bill for active accounts, and pursues full-collection for closed accounts with unpaid balances.
Non-recoverable collections are provided for through an allowance for doubtful accounts.
Supplies Inventory
Supplies inventories are valued at cost and follow a first-in-first-out (FIFO) flow. This flow
approximates market because ending inventory consists of the most recent items purchased.
Inventories are recorded as expenses when consumed rather than when purchased.
Restricted Assets
Certain proceeds of the District's ceri:ificate of participation issuances are classified as restricted
assets because bond covenants limit their use. Reserve balances are to be maintained as set
forth in installment purchase contracts or trust agreements, as applicable.
Wastewater and Storm Drainage Facilities
Wastewater and storm drainage facilities purchased or constructed are stated at cost less
accumulated depreciation. Assets contributed have been recorded at the fair market value at the
date received. Interest is capitalized for assets constructed when applicable. The costs of normal
repairs and maintenance that do not add to the value of an asset or materially extend asset lives
are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives
of the related capital assets, as applicable. The District capitalizes applicable assets greater than
$1,000. Straight-line depreciation is provided for estimated lives of capital assets as follows:
Wastewater treatment plant and facilities
Wastewater and storm water pump stations
Wastewater collection and storm water transmission systems
21
5-40
5-25
5-50
5-40
5-25
years
years
years
years
years
Long-Term Debt Costs of Issuance
Costs of issuance are amortized on a straight-line basis over the life of the related debt issue.
Discount, premium and deferred amount on refunding are components of interest expense.
Compensated Absences and Other Post Employment Benefits
Accumulated vacation leave and vested sick leave benefits are recorded as an expense and
liability of applicable enterprise funds as the benefits accrue to employees. No liability is recorded
for the nonvesting portion of sick leave benefits. The employer contribution for post-retirement
health insurance benefits is funded based upon actuarially determined requirements.
Risk Retention
Liability claims below policy deductibles, including claims related administration and legal
expenses, are charged to operations as incurred. The District maintains insurance coverage for
catastrophic occurrences that would othenwise result in property loss amounts greater than the
per occurrence deductible. The annual premium for this policy is charged to operating expense.
Refundable Connection Deposits
Connection fees represent a one-time contribution of resources imposed on contractors and
developers for the purpose of financing capital improvements. Connection fees remain the
property of the contractor for a period of one year recorded as a liability and are recognized as
revenue when the development is complete and passed final engineering inspection. The
unspent balance of connection fees available at year-end, if any, is classified as net assets
restricted for capital improvements.
Net Assets
Net assets is the excess of assets over liabilities and consists of four components, invested in
wastewater and storm drainage facilities net of related debt, restricted for capital improvements,
restricted for debt service, and unrestricted. Restrictions represent constraints placed on use
either by external groups, laws or regulations. The District first applies unrestricted net assets to
transactions and adjusts balances of restricted net assets as applicable.
Service Charges
The District charges separate user fees established by Ordinance for each of its three businesstype activities.
Operating Revenues and Expenses
Operating revenues and expenses fund rate-based service charges and the costs of operation
and maintenance and recurring capital replacement (OM&R), respectively.
Non-operating
revenues and expenses are non rate-based and are received from or paid to other sources.
Capital Contributions
Certain capital projects financed or constructed by external parties and contributed to the District
with or without restrictions are reported separately as income after operating and non-operating
revenues. District constructed projects may receive financing assistance from intergovernmental
or other sources, such as developers, and developers may construct and transfer ownership of
sewage and storm drainage facilities to the District at acceptance of the project.
22
Propertv Taxes
State statutes authorize the allocation of property tax revenues to Special Districts. The County of
Solano administers the program and remits applicable installments in December and April of each
year. These revenues are considered subventions not restricted as to purpose.
Estimates
Generally accepted accounting principles requires using estimates that affect reported amounts of
assets and liabilities at the financial statement date, and reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those estimates.
NOTE 2 - CASH AND INVESTMENTS:
Governmental Accounting Standards Board Statement No. 3 (GASB 3), Deposits witli Financial
Institutions, Investments (Including Repurchase Agreements),
and Reverse
Repurchase
Agreements, and Statement No. 40 (GASB 40), Deposit and Investment Risk Disclosures, sets
forth reporting requirements for deposit and investment risks assumed by a governmental entity in
connection with its cash and investments. GASB 40 amends GASB 3 to require disclosures by
exception of risks that deposits and investments are exposed to.
At June 30, 2012, the District had a total bank balance of deposits of $874,100 and investment
securities with a fair value of $48,797,326 in the following types and maturities:
Investment Maturities (in Years)
Less
than 1
Government agencies
Corporate bonds and notes
Corporate cert of deposit
Investments with LAIF
Money market investments
Total investments
$1,016,794
735,019
4,282,776
5,749,324
$11.783.913
1-5
6-10
More
than 10
Total
Carrying/
Fair Value
$21,947,398
652,126
6,675,906
$4,018,670
$3,719,313
$29,685,381
1,668,920
7,410,925
4,282,776
5,749,324
$29.275.430
$4.018.670
$3.719.313
$48.797.326
Custodial credit risk is the risk that the government may not be able to recover the value of its
deposits or investment securities in the event of bank or counterparty failure. The District does
not have a formal policy for custodial credit risk. At June 30, 2012, deposit and investment
balances were exposed to custodial credit risk as follows:
Deposits - uninsured and collateralized with securities held by the
pledging bank's trust department or agent not in the District's name
23
$1.433.788
NOTE 2 - CASH AND INVESTMENTS: (Continued)
Interest rate risk: The California Government Code limits investment maturities to five years or
less unless authorized by the Board of Trustees for a specific purpose. The District does not have
a formal investment policy that further limits investment maturities as a means of managing
exposure to fair value losses arising from increasing interest rates.
Concentration of credit risk: GASB 40 requires disclosure of investment concentrations that
exceed 5%. At year-end, 22% was invested with government agency FNMA securities, 8% with
FHLMC, and 8% FHLB. No other investments exceeded 5%. These investment concentrations
are in compliance with limit requirements descnbed below.
Credit risk: The California Government Code limits credit quality ratings to high investment grade.
The District investment policy with respect to credit ratings follows the government code except for
corporate medium-term notes that require ratings of AA or better. All of the District's investments
in obligations of United States Government Agencies were rated Aaa by Moody's. Ratings for the
District's corporate bonds ranged from Aa3 to Aa2 by Moody's and to NR for investments in
Lehman Brothers in default. Investments in certificates of deposit (CD's) are FDIC insured. The
LAIF investment pool is not rated, and the money market pools consisting of Dreyfus, Goldman
Sachs and Highmark are rated AAA by S&P and Moody's, respectively.
Authorized Investments
District policy following California Statutes permits the following types of investments:
Limits
•
•
•
•
•
•
•
•
•
•
United States Treasury Securities
Obligations of United States Government Agencies
Repurchase Agreements and Reverse Repurchase Agreements
Negotiable Certificates of Deposit
Bankers' Acceptances of U.S. Commercial Banks
Commercial Paper of "Prime" Quality
Corporate Medium-Term Notes, rated AA or better
10-Year Maturity Eligible Investments
Shares in Beneficial Interest Money Funds, two AAA ratings
State of California Local Agency Investment Fund
None
None
Various
30%
40%
15%
5% / 30%
10%
20%
$30M
At year-end, the District's investments were in compliance with the above provisions.
Investments in the State Treasurer's Pool
The Local Agency Investment Fund (LAIF) is an external investment pool administered by the
California State Treasurer's Office authorized under Section 16429.1,2 and 3 of the California
Government Code. The fund is a voluntary program created by statute as an investment
alternative for California municipalities and special districts. The LAIF has oversight by the Local
Agency Investment Advisory Board. The Board consists of five members designated by statute.
The difference between the fair value of the District's equity in the pool and pool shares is not
material, and accordingly, no adjustment has been recorded.
24
NOTE 3 - WASTEWATER AND STORM DRAINAGE FACILITIES:
Changes in the District's wastewater and storm drainage facilities and accumulated depreciation
for the year ended June 30, 2012, is summarized as follows:
Historical Cost
Balance at
June 30. 2011
Additions
Wastewater
Total nondepreciable
Pump stations
Collection systems
Total depreciable
Total wastewater facilities
$2,119,445
3.297.438
5,416,883
130,342,306
29,293,725
102,819,105
2,288,041
10,420,126
275,163.303
$280,580,186
$1,557,451
1.557,451
243,884
5,087
2,248,534
117,205
328,942
2,943.652
$4,501,103
Storm Water
Plant & facilities
Pump stations
Transmission systems
Total depreciable
Total storm water facilities
$691,271
3,598,715
4.289.986
5,015,462
11,491,025
31,077,472
502,439
1,124,458
49,210,856
$53,500,842
Upper Lateral
Collection systems
Total upper lateral facilities
$1,010,923
20,609
$1,031,532
$35,700
$335,112,560
$7,612,330
Total wastewater and storm
drainage facilities
Retirements
($98,254)
(98,254)
(1,697)
(325,959)
(327.656)
($425,910)
$645,521
645.521
($2,935)
(2.935)
(424)
26,071
2,363,240
12,672
28,023
2,430,006
$3,075,527
(31.007)
(31.431)
($34,366)
Transfers &
Adiustments
$2,119,445
($3,284,060)
1,472,575
(3,284,060)
3,592,020
57,808
130,642,301
1,501,217
30,800,029
1,711,802
106,779,441
4,663
2,409,909
8,570
10,431,679
3.284.060
281,063,359
$0 $284,655,379
($309,008)
(309,008)
137,354
170,184
518
952
309.008
$0
$35,700
$691,271
3.932.293
4.623,564
5,015,038
11,654,450
33,610,896
515,629
1,122,426
51,918,439
$56,542,003
$1,046,623
20.609
$1,067,232
($460,276)
(Continued on page 26)
25
Balance at
June 30, 2012
$0
$342,264,614
NOTE 3 - WASTEWATER AND STORM DRAINAGE FACILITIES: (Continued)
Accumulated Depreciation
Balance at
June 30, 2011
Additions
Retirements
Transfers &
Adiustments
Balance at
June 30, 2012
Wastewater
Pump stations
Collection systems
$54,364,547
13,638,443
32,041,495
1,537,442
6,120,549
$3,287,874
808,861
2,343,548
41,257
595,289
(297,388)
$57,651,262
14,447,304
34,385,043
1,578,699
6,418,450
Accumulated depreciation
$107,702,476
$7,076,829
($298,547)
$114,480,758
Plant & facilities
Pump stations
$2,125,335
5,769,879
12,350,866
328,681
777,200
$112,155
265,057
664,896
11,604
58,901
($290)
(26,593)
$2,237,200
6,034,936
13,015,762
340,285
809,508
$21,351,961
$1,112,613
($26,883)
$22,437,691
Upper Lateral
Collection systems
$169,936
20,610
$190,546
$29,383
$29,383
$129,244,983
$8,218,825
($1,159)
Storm Water
$199,319
20,610
$219,929
($325,430)
(Continued from page 25)
26
$137,138,378
Changes in the District's wastewater and storm drainage facilities and accumulated depreciation
for the year ended June 30, 2011, is summarized as follows:
Historical Cost
Balance at
June 30, 2010
Wastewater
Pump stations
Collection systems
Total depreciable
Total wastewater facilities
$2,119,445
2,827,052
4,946,497
129,869,709
29,293,725
100,488,509
2,254,040
9,701,572
271,607,555
$276,554,052
Additions
$3,156,868
3.156.868
($94,853)
(94.853)
323,715
Transfers &
Balance at
Adiustments June 30, 2011
($2,591,629)
(2,591,629)
472,597
640,404
964119
$4120,987
($94,853)
2,006,881
34,001
78,150
2,591,629
$0
$409,437
409,437
($14,899)
(14899)
($199,660)
(199.660)
($14,899)
187,274
3,737
8,649
199,660
$0
Storm Water
Plant & facilities
Pump stations
Total depreciable
Total storm water facilities
$691,271
3,403,837
4095,108
5,015,462
11,491,025
30,569,827
498,702
1,070.938
48,645,954
$52,741,062 •
Upper Lateral
Collection systems
Total upper lateral facilities
$974,533
20.609
$995,142
$36,390
$330,290,256
$4,932,056
Total wastewater and storm
drainage facilities
Retirements
320,371
44,871
365.242
$774,679
$691,271
3,598,715
4,289,986
5,015,462
11,491,025
31,077,472
502,439
1,124,458
49,210,856
$53,500,842
$1,010,923
20,609
$1,031,532
$36,390
($109,752)
(Continued on page 28)
27
$2,119,445
3,297.438
5416.883
130,342,306
29,293,725
102,819,105
2,288,041
10,420,126
275,163,303
$280,580,186
$0
$335,112,560
Accumulated Depreciation
Balance at
June 30, 2010
Additions
Retirements
Transfers &
Adiustments
Balance at
June 30, 2011
Wastewater
Pump stations
Collection systems
$51,070,345
12,886,292
29,744,028
1,499,157
5,513,007
$3,294,202
752,151
2,297,467
38,285
607,542
$54,364,547
13,638,443
32,041,495
1,537,442
6,120,549
$100,712,829
$6,989,647
$107,702,476
Plant & facilities
Pump stations
$2,012,747
5,505,897
11,710,512
317,403
713,849
$112,588
263,982
640,354
11,278
63,351
$2,125,335
5,769,879
12,350,866
328,681
777,200
$20,260,408
$1,091,553
$21,351,961
Upper Lateral
Collection systems
$140,910
20,610
$161,520
$29,026
$29,026
$169,936
20,610
$190,546
$121,134,757
$8,110,226
$129,244,983
Storm Water
(Continued from page 27)
28
NOTE 4 - NOTES RECEIVABLE:
Notes receivable as of June 30, 2012, are as follows
Long Term
Current
Note receivable witli Gtiiringelli, Inc. for connection fees
dated September 23, 2008 in the principal amount of
$45,192.95, with interest at 3%, and is payable in sixty
monthly payments of $812.06 commencing April 1, 2009.
$17,052
$9,745
Note receivable of the Storm Water fund with the Waste
Water fund for the CalPERS Side Fund payoff, dated
October 11, 2011, in the principal amount of $4,014,704,
with interest at 2%, payable in twelve annual payments
of $379,629 beginning June 1, 2012.
3,410,047
305,322
Note receivable with Sereno Village Associates for
connection fees dated November 19, 2002, in the
principal amount of $351,635.20, secured by deed of
trust, bearing simple interest at 3% payable from net
surplus cash with the entire unpaid interest and principal
due in 15 years.
253,369
Total notes receivable
$3.680.468
$315.067
NOTE 5 - DEFERRED LEASE:
In May 2005, the District entered into an operating lease agreement for land with the City of
Vallejo as the site for the Ryder Street Storage Basin. The lease term is 66 years commencing
September 1, 2005 and does not transfer ownership. The lease calls for seven annual payments
in the amount of $250,000 and 59 annual payments of $100 for years thereafter. The District
recognizes rent expense on a straight-line basis over the life of the lease. The accompanying
Statements of Revenues and Expenses and Changes in Fund Net Assets contain rent expense of
$26,605 for the fiscal years 2012 and 2011, respectively. Deferred lease amounts of $1,568,199
at June 30, 2012, and $1,344,804 at June 30, 2011, represent pro-rata future rent and is reflected
in the accompanying Statements of Net Assets. Future payments required under the lease as of
June 30, 2012, are as follows:
Years Ending
June 30
2013
2014
2015
2016
2017
Thereafter
$100
100
100
100
100
5,400
Totals
$5,900
29
NOTE 6 - LONG TERM LIABILITIES:
Changes in long-term liabilities for the fiscal years ended June 30, 2012 and June 30, 2011, are
summarized below:
Balance at
June 30,2011
Wastewater
2011 Revenue bonds
2006 Cert of participation
2008 State Revolving Fund
Net premiums (discounts)
Deferred amts on refunding
Compensated absences
Net OPEB obligation
Total wastewater
$3,345,000
36,275,000
19,700,000
3,737,115
9,304,528
197,939
(300,896)
1,355,786
691,846
$74,306,318
Additions
$678,199
44,471
$722,670
Storm Water
Net OPEB obligation
Total storm water
$31,972
84,724
$116,696
$15,557
5,577
$21,134
Upper Lateral
$16,174
$8,422
Total long-term liabilities
$74,439,188
Balance at
June 30,2010
Wastewater
2011 Revenue bonds
Interest rebate - cert of part
Net premiums (discounts)
Deferred amts on refunding
Net OPEB obligation
Total wastewater
$752,226 _
Additions
($180,000)
(810,000)
(1,785,000)
(227,759)
(674,459)
38,504
18,551
(701,503)
($4,321,666)
($18,059)
38,409
(53,447)
732,177
124,415
$4,186,554
$24,061
68,797
$92,858
$17,349
15,927
$33,276
Upper Lateral
$13,991
$8,341
$77,633,301
$4,228,171
30
Balance at
June 30, 2012
$3,165,000
35,465,000
17,915,000
3,509,356
8,630,069
236,443
(282,345)
1,332,482
736,317
$70,707,322
Amount
Current
$195,000
845,000
1,875,000
233,225
691,320
435,226
$4,274,771
$11,123
($18,059)
$29,470
90,301
$119,771
($7,979)
$16,617
$5,391
($4,347,704)
$70,843,710
$4,291,285
Retirements
$3,345,000
$37,055,000
3,460,000
21,400,000
3,959,536
9,962,536
30,978
118,980
(263,156)
1,235,147
567,431
$77,526,452
Storm Water
Net OPEB obligation
Total storm water
Total long-term liabilities
Retirements
($780,000)
(3,460,000)
(1,700,000)
(222,421)
(658,008)
(30,978)
40,550
15,707
(611,538)
($7,406,688)
($9,438)
Balance at
June 30, 2011
$11,123
Amount
Current
$3,345,000
36,275,000
$180,000
810,000
19,700,000
3,737,115
9,304,528
1,785,000
227,759
674,458
197,939
(300,896)
1,355,786
691,486
$74,306,318
389,122
$4,066,339
$14,210
($9,438)
$31,972
84.724
$116,696
($6,158)
$16,174
$4,460
($7,422,284) . $74,439,188
$4,085,009
$14,210
NOTE 6 - LONG TERM LIABILITIES: (Continued)
2011 Revenue Bonds: the District and the WateReuse Finance Authority issued 2011 Revenue
Bonds in a current refunding (1) to prepay the outstanding principal of 2001 Certificates of
Participation, (2) to fund a reserve fund for the Bonds, and (3) to pay certain costs of issuing the
Bonds. The Bonds are fully registered with principal due annually on May 1, and interest payable
semi-annually on May 1 and November 1. The Bonds maturing on or after May 1, 2022 are
subject to optional redemption on any date on or after May 1, 2021, together with accrued interest
to the redemption date, without a premium.
The transaction paid scheduled principal due on the 2001 Certificates in the amount of $145,000
and redeemed the remaining principal amounting to $3,315,000 pursuant to notice and exercise
of optional prepayment of the Ceri:ificates for a total of $3,460,000. The transaction resulted in a
deferred amount on refunding of $53,447, a decrease in total cash flows of $262,952, and an
economic loss of $64,708. The deferred amount on refunding and the premium are carried as a
net reduction to the 2011 Revenue Bonds to be amortized on a straight-line basis over the life of
the Bonds as components of interest expense.
Annual debt service requirements for the 2011 Revenue Bonds are as follows:
Fiscal
Year
Endina
2013
2014
2015
2016
2017
2018-2022
2023 - 2025
Total requirements
2011 Revenue Bonds
2.0 to 5.0%
Principal
Interest
$195,000
200,000
205,000
210,000
220,000
1,250,000
885.000
$3,165,000
$130,525
126,625
126,625
114,475
106,075
390,050
90,000
$1,084375
Annual
Total
$325,525
326,625
331,625
324,475
326,075
1,640,050
975,000
$4,249,375
2006 Certificates of Participation: The District and its Financing Corporation on March 13, 2006,
issued $39,665,000 of Certificates of Participation at premium of $878,234. The Certificates were
(1) to refund in part the then outstanding Series 2001 Certificates of Participation, (2) to finance
construction of the overflow elimination project, (3) to fund in whole or in part, a reserve fund for
the Certificates, and (4) to pay certain costs of issuing the Certificates. The Certificates are fully
registered with principal due annually on May 1 and interest payable semi-annually on May 1 and
November 1. The Certificates are subject to optional prepayment on any date on or after May 1,
2015, together with accrued interest to the prepayment date, without premium.
The transaction advance refunded in part $19,075,000 of the 2001 Certificates by placing an
amount in an irrevocable escrow fund sufficient to retire the debt on May 3, 2006, terminating and
legally defeasing the 2001 Certificates. The transaction resulted in a deferred amount on
refunding of $327,099, an increase in total cash flows of $23,633,811, and an economic gain of
$245,472. The deferred amount on refunding and premium are carried as a net addition to the
31
2006 Certificates to be amortized on a straight-line basis over the life of the old debt for the
deferred amount and the new debt for the premium as components of interest expense.
Annual debt service requirements for the 2006 Certificates of Participation are as follows:
Fiscal
Year
Endinq
2013
2014
2015
2016
2017
2018-2022
2023 - 2027
2028 - 2032
2033-2036
Total requirements
2006 Certificates of
Participation 4.0 to 5.0%
Principal
Interest
$845,000
880,000
915,000
955,000
990,000
5,645,000
7,200,000
9,065,000
8.970,000
$35,465,000
$1,675,487
1,639,575
1,602,175
1,565,575
1,527,375
6,942,075
5,394,625
3,530,350
1,100.550
$24,977,787
Annual
Total
$2,520,487
2,519,575
2,517,175
2,520,575
2,517,375
12,587,075
12,594,625
12,595,350
10,070,550
$60,442,787
1993 Certificates of Participation: The District together with its Financing Corporation on July 1,
1993, issued $38,905,000 of Certificates of Participation, the net proceeds of which were used to
finance the construction of sewage collection and treatment and flood control facilities, to defease
the District's then outstanding 1988 Certificates of Participation, and to fund a debt service reserve
fund. The defeased 1988 Certificates were subsequently retired during the fiscal year ended June
30, 1998.
The Certificates are fully registered with provision for transfer. Principal is due annually beginning
July 1, 1994. Interest is due semi-annually on January 1 and July 1 beginning January 1, 1994.
The Certificates are not subject to optional prepayment prior to their stated maturity dates except
from the proceeds of insurance or condemnation. Certificates maturing on or after July 1, 2009,
are subject to mandatory prepayment without premium on dates and in amounts set forth in the
Official Statement. Annual debt service requirements for the 1993 Certificates of Participation are
as follows:
Fiscal
Year
Endina
2013
2014
2015
2016
2017
2018-2020
Total requirements
1993 Certificates of
Participation 5.0 to 5.04%
Principal
Interest
$1,875,000
1,970,000
2,070,000
2,170,000
2,280,000
7.550,000
$17,915,000
$802,000
703,500
600,000
491,500
377,500
389,750
$3,364,250
32
Annual
Total
$2,677,000
2,673,500
2,670,000
2,661,500
2,657,500
7.939.750
$21,279,250
2008 State Revolving Fund: During the fiscal year ended June 30, 2008, the District completed a
second loan agreement with the State Water Resources Control Board's Division of Financial
Assistance. The loan is dated January 24, 2008, and is in the principal amount of $4,406,072.
Payments in the amount of $317,450 with interest at 2.4% commence January 24, 2009, and are
due annually thereafter until maturity in 2025. Annual debt service requirements for the loan with
the State Revolving Fund are as follows:
Fiscal
Year
Endinq
2013
2014
2015
2016
2017
2018-2022
2023-2025
Total requirements
2008 State Revolving
Fund Loan 2.4%
Principal
Interest
$233,225
238,823
244,555
250,424
256,434
1,377,493
908,402
$3,509,356
$84,225
78,627
72,895
67,026
61,016
209,755
43,948
$617,492
Annual
Total
$317,450
317,450
317,450
317,450
317,450
1,587,248
952,350
$4126,848
2004 State Revolving Fund: During the fiscal year ended June 30, 2005, the District entered into
a loan agreement with the Division of Financial Assistance of the State Water Resources Control
Board under the Clean Water State Revolving Fund loan program. The loan is dated August 1,
2004, for principal of $13,798,201. Payments in the amount of $907,072 with interest at 2.5%
commence May 1, 2005, and are due annually thereafter until maturity in 2023. Annual debt
service requirements for the loan with the State Revolving Fund are as follows:
Fiscal
Year
Endinq
2013
2014
2015
2016
2017
2018-2022
2023
Total requirements
2004 State Revolving
Fund Loan 2.5%
Principal
Interest
$691,320
708,603
726,318
744,476
763,088
4111,316
884.948
$8,630,069
$215,752
198,469
180,753
162,595
143,984
424,042
22,124
$1,347,719
33
Annual
Total
$907,072
907,072
907,071
907,071
907,072
4,535,358
907,072
$9,977,788
NOTE 7 - OTHER NON-OPERATING REVENUES (EXPENSES):
Balance at
June 30. 2012
Balance at
June 30. 2011
Tubbs island share crop income
Gain (loss) on disposition of capital assets
Radio station site lease income
Pacific Gas & Electric rebates
Other
$255,953
(23,446)
37,807
43,948
15,632
$154,957
Total other non-operating revenues (expenses)
$329.894
$200.344
36,524
8,863
NOTE 8 - COMMITMENTS AND CONTINGENCIES:
Contingencies of an indeterminable amount include normal recurring pending claims and litigation.
District management is of the opinion that the resolution of these matters will not result in a
material liability to the District. Accordingly, no provision has been made for a contingent liability
that meets the criteria for accrual set forth in Accounting Standards Codification (ASC) Topic 450.
The District has various ongoing capital projects that involve long-term construction contracts with
progress payments billed and paid on a percentage-of-completion basis.
Construction
commitments related to these contracts amounted to approximately $5,603,134 at June 30, 2012,
and $2,318,505 for 2011, respectively.
NOTE 9 - EMPLOYEE BENEFITS:
RETIREMENT PLANS
Plan Description
The District contributes to the California Public Employees' Retirement System, CALPERS, a
cost-sharing multiple-employer defined benefit pension plan. Substantially all full-time employees,
with exception of seasonal and temporary employees, participate in the CALPERS plan. Eligible
employees who retire at or after age 50, with a minimum of 5 years credited service, are entitled
to a monthly retirement benefit based upon compensation, years of credited service and
retirement age. The plan also provides disability, death and survivor benefits to eligible retirees
and their beneficiaries. The Board of Trustees of the Distnct authorizes plan benefit provisions
established by contract and California Public Employees' Retirement Law. Stand-alone financiai
information for the plan is not available. However, system-wide reports that contain the costsharing plan may be obtained through contacting CALPERS directly. See the statistical section of
this report for contact information for CALPERS.
Funding Policy
CALPERS participating employees contribute 8% of their salary as required by CALPERS for
local miscellaneous plan members. The District contributes the remaining amounts necessary to
fund contracted benefits at rates set forth using the actuanai methods and assumptions
34
NOTE 9 - EMPLOYEE BENEFITS: (Continued)
recommended by CALPERS actuanes and actuarial consultants, and adopted by the CALPERS
Board of Administration. The employer required contribution rate for the fiscal year 2011-12 was
14.762% of covered payroll, a reduction of 5.882% due to payoff of the sidefund. CALPERS
establishes and may amend employee and employer contribution requirements. CALPERS
prepares actuarial valuation reports annually for each member participant in the cost-sharing plan.
The employer rate by member consists of the normal cost of the cost-shanng plan plus side fund
amortization to account for the difference between the funded status of the cost-sharing plan and
the funded status of the member plan upon entry into the cost-sharing plan. The District's
employer rate is the normal cost only with no side fund amortization of the cost-sharing plan.
Required Contributions
For the fiscal year 2011-12 and each of the two preceding fiscal years, contribution requirements
and contributions made were as follows:
Fiscal
Year Ended
June 30
2012
2011
2010
CALPERS Local Miscellaneous
2.7 m 55 Cost-Sharing Plan
Contribution
Percent
Pension
Requirements
Contributions
Assets
Dollars
Paid
(Liabilities)
$1,080,049
1,278,284
1,194,964
100%
100%
100%
$0
0
0
Temporary and Seasonal Employees
Federal law requires that employees not covered by an employer retirement system be covered
by Social Security or an alternative plan. The District hires temporary employees whose positions
are exempt from PERS membership, and utilizes Social Security for these positions.
POST EMPLOYMENT BENEFITS
Plan Description
The District's defined benefit postemployment healthcare plan, Public Agency Post-Retirement
Health Care Plan (the Plan), provides medical benefits to eligible retired employees and their
beneficiaries. The Public Agency Retirement System (PARS) administers the Plan, an agent
multiple-employer trust arrangement established to provide economies of scale and efficiency ofadministration to public agencies that hold assets used to fund OPEB obligations. Plan benefits
were established in accordance with Board policy and Memorandums of Understanding for
respective employee groups, and may be amended by the Board of Trustees. PARS provides an
annual financial report for the aggregate Plan that may be obtained by contacting PARS directly.
Contact information for PARS is located in the Statistical section of this report.
Funding Policy
The Plan is fully funded by employer contributions with no requirement for matching or othenwise
pro-rata employee contributions. As the plan's sponsor, the District establishes and may amend
employee and employer contribution requirements. The District is required to contribute the
annual required contribution (ARC), an amount actuarially determined in accordance with the
35
parameters of GASB Statement Number 45 (GASB 45). The ARC represents a level of funding
that, if paid on an ongoing basis, projects to cover the normal cost each year and amortize
unfunded actuarial liabilities, if any, over a period not to exceed thirty years. The ARC is subject
to change with each actuarial valuation date performed no later than every three years.
Annual OPEB Cost
The District's annual OPEB expense (the ARC plus interest) and the amount paid for the fiscal
year 2011-12 amount to $1,074,642 and $1,024,593, respectively. The District's annual OPEB
cost, the percent paid, and the net OPEB obligation for the fiscal year 2011-12 was as follows:
Fiscal
Year Ended
June 30
Actuarial
Valuation
Date
Annual
Required
Contrib
2012
2011
2010
01/01/10
01/01/10
01/01/10
$1,016,399
1,016,399
1,016,399
PARS Public Agency Post-Retirement Health Care Plan
OPEB
Adjust
Annual
%
Inc (Dec) in
OPEB
Interest
to
Contrib
Net OPEB
ARC
Cost
Paid
(5). 7.5%
Obligation
$58,243
49,137
36,567
$0
0
0
$1,074,642
1,065,536
1,052,966
95.3%
88.6
84.1
$50,049
121,405
167,606
Net OPEB
Obligation
End of Year
$826,619
776,570
655,165
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan as
understood by the employer and eligible Plan members and include the actuarial present value of
all Plan benefits allocated between the periods before and after the valuation date. The present
value of Plan benefits earned prior to the valuation date is called the actuarial liability. The
present value of Plan benefits to be earned after the valuation date is called the present value of
future normal costs. Actuarial assumptions include a 7.5% investment return, a medical trend rate
beginning at 8.6% declining to 5.7% after 10 years, and a 3.25% inflation rate. Actuarial methods
may also include techniques that are designed to reduce short-term volatility in actuarially accrued
liabilities and actuarial assets, consistent with the long-term perspective of the calculations.
The cost method for valuation of liabilities used for valuation of the District's Plan dated January 1,
2007 is the entry age normal method, Under the entry age normal actuarial cost method, an
individual entry age normal cost ratio is determined for each participant by taking the value of the
participant's projected future benefits and dividing it by the value of his expected future salary.
This ratio for each participant is then multiplied by the present value of the participant's future
salary. The sum of the values of all active participants is the Plan's present value of future normal
costs. The excess of the present value of Plan benefits over the present value of future normal
costs is the actuarial liability. The difference between the actuarial liability and. the value of the
Plan assets is the unfunded actuarial liability.
The unfunded actuarial liability is amortized over a period of 30 years from the valuation date
(closed basis) with payments increasing by a payroll growth assumption of 3.25% per annum.
The amortization method used is a level percent of payroll. Payments are assumed to be made
throughout the year. Subsequent gains and losses and benefit improvements will be amortized
over the same remaining period.
36
Funded Status and Funding Progress
Actuarial valuations of an ongoing plan involve estimates of tlie value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about investment return, future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the Plan and annual required contributions
are subject to change when actual results are compared with past expectations together with new
estimates about the future. Plan assets are stated at current market prices. The table below
presents funded status information of the Plan for the current year, and is as follows:
Actuarial
Valuation
Date
01/01/10
Entry Age
Actuarial
Accrued
Liability
$11,297,650
Value of
Plan
Assets
Unfunded
Liability/
(Excess
Assets)
$2,874,685
$8,422,965
Funded
Ratio
25.4%
Annual
Covered
Payroll
UAAL as a
Percent of
Covered
Payroll
$7,316,414
154.4%
Note: Three-year funding progress data is shown as supplementary information after the notes to financial statements.
NOTE 10 - RISK MANAGEMENT:
The District is exposed to various risks of loss, such as torts, errors and omissions, employment
practices, pollution, auto physical damage, injuries to employees, theft of, damage to, and
destruction of assets, and natural disaster. The District part:icipates in a joint powers agreement
with other public entities that form the California Sanitation Risk Management Authority (CSRMA),
a public entity risk pool operating as a common risk management and insurance program for 60
member entities. CSRMA spreads the adverse effects of losses among its member entities for its
pooled programs, and purchases excess insurance, reinsurance, and commercial insurance,
where applicable and as a group, for its group insurance programs to reduce costs.
CSRMA is governed by a Board of Directors composed of one representative from each member
agency that meet three times per year in conjunction with meetings of the California Association of
Sanitation Agencies. The Board controls CSRMA's operations including selection of management
and approval of operating budgets, independent of any influence by member entities.
The District pays annual deposits to CSRMA for the programs listed below. Pooled liability and
pooled workers' compensation programs charge the member funded SIR (self-insured reserve)
for claims below limits, and utilize excess insurance and reinsurance for claims above the SIR.
The primary, pollution, and property programs are entirely covered through commercial insurance.
Settled claims for CSRMA have not exceeded coverage in any of the past three fiscal years. The
District also maintains employee fidelity bonds to protect against the risk of employee theft or
defalcation. Public official bonds are used for the District Manager and Treasurer, a notary bond
for the District Clerk, and a public employee dishonesty bond for all other employees.
37
A COIVIPONENT UNIT OF THE CITY OF VALLEJO
NOTE 1 0 - R I S K M A N A G E M E N T : (Continued)
The following summarizes active insurance policies as of June 30, 2012, together with coverage
limits for each insured event:
Insurance Program
Pooled Liability Program
CSRMA - Self Insurance Retention
CSRMA - Munich American Ins. Co.
Primary Insurance Program
CSRMA - Beazley Ins. Company
Pollution Program
CSRMA - Harbor Ins. Company
Propertv Insurance Program
CSRMA - Public Entity Property
Workers' Compensation Program
CSRMA - Self Insurance Retention
CSRMA - Safety National Casualty Corp.
Limits
Coverage Description
$500,000
15,500,000
$2,500 E&O ded, $25,000 EPL ded,
$500,000 sewer backup deductible
$2,765,750
Cash value
Automobile liability, $1,000 deductible
Physical damage of sched vehicles
$1,000,000
$99,650,275
$750,000
1,000,000
$5,000,000 agg, $25,000 retention
$10,000 deductible
Workers' compensation, employer's
liability; $0 deductible
NOTE 11 - NEW ACCOUNTING PRONOUNCEMENTS:
The GASB issued Statement Number 60 in November 2010 entitled Accounting and Financiai
Reporting for Sen/ice Concession Arrangements. The objective of this Statement is to address
issues related to service concession arrangements (SCA's), which are a type of public-private or
public-private partnership. This Statement requires disclosures about an SCA including a general
description of the arrangement and information about the associated assets, liabilities, and
deferred inflows, the rights granted and retained, and guarantees and commitments. This
Statement is effective for the 2012-13 fiscal year and requires retroactive application to all periods
presented. The District has a service concession arrangement with its wheat farmer on Tubbs
Island for the reuse of biosolids as a soil amendment and will make the disclosures required by
GASB No. 60 effective for the 2012-13 fiscal year.
GASB Statement Number 6 1 , entitled Tiie Financial Reporting Entity: Omnibus, was issued in
November 2010 and is effective for the fiscal year 2012-13. This Statement amends GASB
Statements Numbers 14 and 34 and modifies certain requirements for inclusion of component
units in the financial reporting entity. This Statement also clarifies the reporting of equity interests
in legally separate organizations. It requires a primary government to report its equity interest in a
component unit as an asset. The District early implemented GASB No. 61 for the 2010-11 fiscal
year and, accordingly, is a discrete component unit ofthe City of Vallejo versus blended.
38
NOTE 11 - NEW ACCOUNTING PRONOUNCEMENTS: (Continued)
GASB Statement Number 62 issued in June 2011 is entitled Codification of Accounting and
Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AlCPA
Pronouncements.
This Statement incorporates into GASB authoritative literature certain
accounting and financial reporting guidance that is included in FASB Statements, ARB Opinions,
and Accounting Research Bulletins of the AlCPA. The provisions of this Statement shall apply
retroactively to all periods presented and is effective for the fiscal year 2012-13. The District shall
determine the effects of this Statement, if any, on its financial statements.
The GASB issued in June 2011 Statement Number 63, Financial Reporting of Deferred Outflows
of Resources, Deferred Inflows of Resources, and Net Position, and is effective for the fiscal year
2012-13. This Statement standardizes the presentation of deferred outflows of resources and
deferred inflows of resources and their effects on a government's net position, formerly net assets.
The District shall determine the effects of this Statement, if any, on its financial statements.
The GASB also issued in June 2011 Statement Number 64, entitled Derivative Instruments:
Application of Hedge Accounting Termination Provisions, and. is effective for the fiscal year 201112. This Statement amends Statement Number 53 and clarifies whether an effective hedging
relationship continues after the replacement of a swap counterparty or a swap counterparty's
credit support provider. This Statement sets forth criteria that establish when the effective
hedging relationship continues and hedge accounting should continue to be applied. The District
implemented this Statement in the fiscal year 2011-12 with no impact on the financial statements.
Statement No. 65 o f t h e Governmental Accounting Standards Board was issued in March 2012
and is entitled /teA77s Previously Reported as Assets and Liabilities. This Statement establishes
accounting and financial reporting standards that reclassify, as deferred outflows of resources or
deferred inflows of resources, certain items that were previously reported as assets and liabilities
and recognizes, as outflows of resources or inflows of resources, certain items that were
previously reported as assets and liabilities. This Statement amends the financial statement
element classification of certain items previously reported as assets and liabilities to be consistent
with the definitions in Concepts Statement 4. This Statement also provides other financial
reporting guidance related to the impact of the financial statement elements deferred outflows of
resources and deferred inflows of resources, such as changes in the determination of the major^
fund calculation and limiting the use of the term deferred in financial statement presentations. The
provisions of this Statement are effective for financial statements for periods beginning after
December 15, 2012.
Statement No. 66 of the Governmental Accounting Standards Board, entitled Technical
Corrections - 2012 was issued in March 2012. The objective of this Statement is to improve
accounting and financial reporting for a governmental financial reporting entity by resolving
conflicting guidance that resulted from the issuance of two pronouncements. Statements No. 54,
Fund Balance Reporting and Governmental Fund Type Definitions, and No. 762, Codification of
Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and
AlCPA Pronouncements. The provisions of this Statement are effective for financial statements
for periods beginning after December 15, 2012.
39
NOTE 11 - NEW ACCOUNTING PRONOUNCEMENTS: (Continued)
Statement No. 67 is entitled Financial Repoiiing for Pension Plans and is effective for financial
statements for fiscal years beginning after June 15, 2013. This Statement applies to pension
plans themselves and does not apply to member participants of pension plans. Accordingly, this
Statement has no bearing to the District.
Statement No. 68 of the Governmental Accounting Standards Board is entitled Accounting and
Financial Reporting for Pensions and is effective for fiscal years beginning after June 15, 2014.
This Statement establishes standards for measuring and recognizing liabilities, deferred outflows
of resources, deferred inflows of resources, and expense/expenditures. For defined benefit
pensions, this Statement identifies the methods and assumptions that should be used to project
benefit payments, discount projected benefits payments to their actuarial present value and
attribute that present value to periods of employee service.
40
REQUIRED SUPPLEMENTARY INFORMATION
POST EMPLOYMENT BENEFITS
Three-Year Table of Funding Progress
The three-year table of funding progress below for the District's postemployment healthcare plan
presents information that shows whether the value of Plan assets is increasing or decreasing over
time relative to the actuarial accrued liability for Plan benefits. The fiscal year 2007-08 was the
first year of implementation of the postemployment healthcare plan. Accordingly, there are no
factors that significantly affect the identification of trends in the amounts reported.
Fiscal
Year Ended
June 30
Actuarial
Valuation
Date
2012
2011
2010
01/01/10
01/01/10
01/01/10
Entry Age
Actuarial
Accrued
Liabilitv
$11,297,650
11,297,650
11,297,650
Value of
Plan
Assets
Unfunded
Liability/
(Excess
Assets)
Funded
Ratio
Annual
Covered
Payroll
$2,874,685
2,344,318
1,102,420
$8,422,965
8,953,332
10,195,230
25.4%
20.8
9.8
$7,316,414
7,191,470
6,842,832
41
UAAL as a
Percent of
Covered
Payroll
154.4%
124.5
149.0
statistical Section
STATISTICAL SECTION
Financial Trends Information
June 30,2012
Description: Financial trend information helps the reader to understand changes in financial performance and financial well-being over time.
Table 1 - Net Assets by Component
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
$ 139,176,650
27,038,852
8,164,933
17,191,391
$ 136,056,343
30,462,287
6,149,838
17,526,648
$ 135,697,158
30,153,562
7,723,681
17,131,409
$ 138,623,787
28,120,839
7,497,595
16,615,645
$ 141,001,329
32,688,370
7,320,913
16,154,913
$ 143,607,780
28,843,900
7,103,919
17,877,108
$ 148,047,266
31,064,034
7,136,370
9,413,376
$ 137,239,044
30,934,149
7,014,865
19,094,243
$ 144,036,104
32,500,771
6,645,298
8,640,862
$ 139,528,956
32,089,655
4,889,184
13,263,161
$ 191,571,826
$ 190,195,116
$ 190,705,810
$ 190,857,866
$ 197,165,525
$ 197,432,707
$ 195,661,046
$ 194,282,301
$ 191,823,035
$ 189,770,956
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Invested in wastewater and storm drainage
facilities, net of related debt
Unrestricted
Total net assets
Table 2 - Changes in Fund Net Assets
OPERATING REVENUES:
Service charges
other operating revenues
OPERATING EXPENSES:
$
25,917,040
743,917
26,660,957
$
25,192,643
731,993
25,924,636
$
24,1??,7?0
709,218
24,831,438
$
23,390,622
1,011,602
24,402,224
22,513,304
642,567
23,155,871
21,033,004
576,336
21,609,340
20,162,008
496,057
20,658,065
$
18,661,223
135,275
18,796,498
$
17,307,089
174,202
17,481,291
381,621
(1,612,296)
(483,568)
286,096
2,133,635
(2,141,338)
110,847
389,240
716;352
533,242
(1,831,320)
91.145
(490,581)
566,511
2,042,515
(1,954,556)
958,843
1,613,313
770,861
1,042,301
646,104
2,459,266
(2,102,877)
1,826,241
1,295,292
1,018,656
1,129,745
1,748,372
5,392,050
8,270,167
194,282,301
191,823,035
181,500,789
$ 195,661,046
$ 194,282,301
189,770,956
1,033,423
$ 191,823,035
(115,477)
(1,049,339)
(938,525)
(787,364)
(788,994)
(1,332,694)
Property taxes
Interest and other investment income
Interest expense
other nonoperating revenue (expense)
729,637
1,606,780
(3,195,587)
329,894
(529,276)
762,361
1,042,068
(3,244,200)
200,344
(1,239,427)
853,499
2,328,809
(3,380,499)
189,135
(9,056)
998,959
(3,504,338)
(3,524,461)
241,895
(5,787,945)
1,092,213
1,634,261
(3,535,757)
247,080
(562,203)
1,026,061
3,111,249
(3,614,296)
64,536
587,550
401,520
1,258,267
(2,911,351)
37,705
(1,213,859)
Add: capital contributions received (paid)
(3,436,548)
306,174
4,507,084
1,376,710
(1,354,904)
214,574
629,636
(510,694)
(1,058,395)
906,339
(6,726,470)
633,471
(214,660)
(6,307,659)
(1,349,567)
982,385
100,000
(267,182)
(201,444)
880,760
1,092,345
1,771,661
(2,546,553)
2,191,787
1,733,511
1,378,745
190,195.116
190,705,810
190,857,866
197,165,525
197,432,707
195,661,046
$ 191,571,826
$ 190,195,116
$ 190,705,810
$ 190,857,866
$ 197,165,525
$ 197,432,707
Audited District Financial Statements
20,745,006
168,150
20,913,156
7,041,822
3,713,702
6,622,758
1,272,034
1,758,478
20,408,794
(2,907,272)
Source;
$
7,947,633
2,817,667
6,772,802
1,304,585
1,688,848
20,531,535
11,046,193
2,893,886
8,207,116
1,699,546
2,034,036
25,880.777
Add (less): prior period adjustments
9,073,619
3,083,084
7,335,657
1,409,592
1,496,382
22,398,334
$
11,806,666
2,645,808
8,164,530
1,737,079
1,686,030
26,040,113
(152,056)
10,414,622
2,751,303
7.993,277
1,512,589
1,271,444
23,943,235
$
15,326,564
2,607,931
8,279,443
1,357,460
1,996,831
29,568,229
10,881,103
3,230,834
8,173,334
1,559,545
1,495,933
25,340,749
$
8,515,621
3,256,371
7,141,545
1,345,132
1,732,090
21,990,759
6,649,243
2,840,805
5,716,218
1,345,647
1,412,946
17,964,859
$ 189,770,956
42
STATISTICAL SECTION
Revenue Capacity Information
June 30, 2012
Description: Revenue capacity information helps the reader to understand the composition of rate
based sewer service charges, the District's most significant revenue source.
Table 1
Service Charge Base Rates
Fiscal
Year
Base
Monthly
W W Rate
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
$40.26
38.71
37.22
35.79
34.75
32.78
29.80
29.80
29.84
26.67
Source:
Percent
Increase
(Decrease)
4.0%
4.0
4.0
3.0
6.0
10.0
0.0
(0.1)
11.9
11.8
Base
Monthly
SW Rate
Percent
Increase
(Decrease)
$1.97
1.97
1.97
1.97
1.97
1.97
1.97
1.97
1.97
1.97
0.0%
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Combined
Monthly
Rate
Base
Monthly
UL Rate
Percent
Increase
(Decrease)
$1.38
1.38
1.38
1.38
1.38
1.38
1.38
1.38
.69
.69
0.0%
0.0
0.0
0.0
0.0
0.0
0.0
100.0
0.0
0.0
Govt
Total
Billable
Accounts
Total
Billable
Units (1)
50
50
50
50
50
50
50
49
48
51
37,692
37,659
37,588
37,493
37,465
37,612
37,600
37,359
34,584
34,324
48,000
48,000
48,000
48,000
48,000
48,000
48,000
48,000
46,000
43,000
$43.61
42.06
40.57
39.14
38.10
36.13
33.15
33.15
32.50
29.33
District Rate Ordinances
Table 2
Sewer Service Accounts by Type
Fiscal
Year Ended
June 30
Single
Familv
Multi
Family
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
33,917
33,873
33,799
33,694
33,661
33,725
33,715
33,475
30,951
30,674
2,096
2,105
2,101
2,108
2,117
2,134
2,134
2,137
2,055
2,064
Source:
(1)
Commercial
1,629
1,631
1,638
1,641
1,637
1,703
1,701
1,698
1,530
1,535
District Billing Data
Certain accounts contain multiple units. Residential rates are flat-rate per unit. Commercial
rates are based upon a combination of wintertime water consumption and strength.
43
STATISTICAL SECTION
Revenue Capacity Information
June 30, 2012
Table 3 - Service Area Ten Largest Users and Percentage of Annual Service Charges
Ten Largest Users
Prime Ascot DBA Blue Rook Village
Six Flags Discovery Kingdom
Hillcrest Park HOA
Sundance - Vallejo
KW/WDC Vallejo LLC
Bay Village Apartments
Glen Cove Landing
Vallejo Mobile Estates
Fairgrounds Mobile Estates
Seafood City Supermarket
David & Eariine Lund
Vallejo Highlands Associates
Marina Vista Apartments
Eugene Hsu
Marina Tow/er Annex
Far West Sanitation
Totals
Annual Service Charges
Percentage of Annual Service Charges:
Prime Ascot DBA Blue Rock Village
Six Flags Discovery Kingdom
Hillcrest Park HOA
Sundance - Vallejo
KW/WDC Vallejo LLC
Bay Village Apartments
Glen Cove Landing
Vallejo Mobile Estates
Fairgrounds Mobile Estates
Seafood City Supermarket
David & Eariine Lund
Vallejo Highlands Associates
Marina Vista Apartments
Eugene Hsu
Marina Tower Annex
Far West Sanitation
Totals
Source:
Audited District Financial Statements
2012
$
271,037
221,284
159,187
147,039
130,928
2011
3;
129,017
128,410
119,702
105,304
102,228
294,435
242,532
153,371
141,645
126,125
2010
3;
134,656
123,699
130,498
114,677
98,478
260,289
270,615
147,155
130,419
116,126
2009
3;
114,370
113,893
124,735
121,575
90,668
185,787
384,766
143,133
131,995
117,530
2008
$
115,764
115,270
121,818
106,557
91,768
122,591
347,106
138,641
128,053
114,020
2007
3;
116,693
157,546
131,684
121,693
108,359
2006
$
106,764
243,160
120,539
111,339
99,139
2005
$
106,764
102,147
120,488
111,339
112,325
111,827
118,676
103,156
106,689
106,276
111,619
104,000
97,716
97,233
102,327
97,849
99,139
97,614
97,233
110,810
108,109
122,591
116,693
106,764
106,764
2004
3i
214,078
115,082
120,632
152,181
2003
31
192,775
96,007
108,611
137,041
99,363
97,861
96,998
102,683
89,473
88,123
87,336
230,277
78,667
81,150
153,741
78,900
$
1,514,136
$
1,560,116
$
25,917,040
$
25,192,643
2012
2011
!i
1,489,845
$
1,514,388
$
1,418,986
$
1,181,252
55 24,122,220
$
23,390,622
$
22,513,304
$
21,033,004
2010
2009
2008
2007
:5
1,182,830
$
1,060,407
i5 20,162,008
$
20,745,006
2006
2005
55
Si
1,307,822
18,661,223
2004
ii
1,113,157
?5 17,307,089
2003
1.05%
0.85%
0.61%
0.57%
0.51%
0.00%
0.50%
0.50%
0.46%
0.41%
0.39%
0.00%
0.00%
0.00%
0.00%
0.00%
1.17%
0.96%
0.61%
0.56%
0.50%
0.00%
0.53%
0.49%
0.52%
0.46%
0.39%
0.00%
0.00%
0.00%
0.00%
0.00%
1.08%
1.12%
0.61%
0.54%
0.48%
0.00%
0.47%
0.47%
0.52%
0.50%
0.38%
0.00%
0.00%
0.00%
0.00%
0.00%
0.79%
1.64%
0.61%
0.56%
0.50%
0.00%
0.49%
0.49%
0.52%
0.46%
0.39%
0.00%
0.00%
0.00%
0.00%
0.00%
0.54%
1.54%
0.62%
0.57%
0.51%
0.00%
0.50%
0.50%
0.53%
0.46%0.00%
0.54%
0.00%
0.00%
0.00%
0.00%
0.55%
0.75%
0.63%
0.58%
0.52%
0.00%
0.51%
0.51%
0.53%
0.49%
0.00%
0.55%
0.00%
0.00%
0.00%
0.00%
0.53%
1.21%
0.60%
0.55%
0.49%
0.00%
0.48%
0.48%
0.51%
0.49%
0.00%
0.53%
0.00%
0.00%
0.00%
0.00%
0.51%
0.49%
0.58%
0.54%
0.00%
0.48%
0.47%
0.47%
0.53%
0.52%
0.00%
0.51%
0.00%
0.00%
0.00%
0.00%
1.15%
0.62%
0.65%
0.82%
0.00%
0.53%
0.52%
0.52%
0.55%
0.00%
0.00%
0.00%
1.23%
0.42%
0.00%
0.00%
1.11%
0.55%
0.63%
0.79%
0.00%
0.52%
0.51%
0.50%
0.00%
0.00%
0.00%
0.00%
0.47%
0.00%
0.89%
0.46%
5.84%
6.19%
6.18%
6.47%
6.30%
5.62%
5.87%
5.11%
7.01%
6.43%
44
STATISTICAL SECTION
Debt Capacity Information
June 30, 2012
Description; These tables present infonnation that help the reader assess the affordability of the District's current levels of outstanding debt and the ability to pay debt
Table 1 - Ratios of Outstanding Debt by Type
Fiscal
Year Ended
June 30
2011
Revenue
Bonds
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
$
3,165,000
3,345,000
2008
State Revolving
Fund Loan
2006
Certificates of
Participation
2004
State Revolving
Fund Loan
$
$
$
3,509,356
3,737,115
3,959,536
4,176,744
4,406,072
35,465,000
36,275,000
37,055,000
37,805,000
38,525,000
39,220,000
39,665,000
8,630,069
9,304,528
9,962,536
10,604,495
11,230,797
11,841,823
12,437,946
13,019,529
2001
Certificates of
Participation
1993
Certificates of
Participation
$
3,460,000
3,600,000
3,740,000
3,870,000
4,000,000
23,075,000
23,750,000
24,405,000
17.915,000
19,700,000
21,400,000
23,020,000
24,560,000
26,020,000
27,410,000
28,735,000
29,995,000
31,195,000
$
-
Total
Outstanding
Debt
$
68,684,425
72,361,643
75,837,072
79,206,239
82,461,869
80,951,823
83,512,946
64,829,529
53,745,000
55,600,000
Total
Debt Per
Capita (1)
$
569
597
601
630
656
636
658
513
422
440
Total
Debt Per
Billing Unit (1)
$
1,431
1,508
1,580
1,650
1,718
1,686
1,740
1,409
1,168
1,293
Table 2 - Pledged Revenue Coverage
Fiscal
Year Ended
June 30
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Utility
Service
Charges
$
26,639,300
25,853,201
25,384,971
25,190,639
24,379,225
22.674,374
21,896,473
21,170,567
19,746,266
18,133,377
Less
Operating
Expenses
$
15,838,616
16,209,375
15,812,036
13,893,269
13,136,914
12,156,158
11,974,517
11,182,735
10,101,814
9,889,928
Net
Revenues
Available
$
10,800,684
9,643,826
9,572,935
11,297,370
11,242,311
10,518,216
9,921,956
9,987,832
9,644,452
8,243,449
2011
Revenue
Bonds
$
313,742
33,160
2008
State Revolving
Fund Loan
2006
Certificates of
Participation
2004
State Revolving
Fund Loan
2001
Certificates of
Participation
1993
Certificates of
Participation
$
$
$
$
$
315,172
315,226
315,278
337,187
22,030
2,490,967
2,499,531
2,521,221
2,477,241
2,501,698'
2,247,115
576,089
904,261
904,330
904,397
904,462
904,526
904,588
904,648
961,320
664
236,769
248,426
297,857
240,565
268,459
1,260,243
1,108,710
891,393
924,219
2,767,704
2,755,344
2,760,344
2,761,344
2,762,964
2,699,270
2,705,508
2,708,413
2,783,017
2,647,330
Total
Annual
Debt Service
$
6,792,510
6,744,360
6,749,666
6,778,091
6,431,783
6,119,432
5,446,488
4,778,443
3,674,410
3,571,549
Wastewater
Debt Service
Coverage
159%
143%
142%
167%
175%
172%
182%
209%
262%
231%
(1) Denominators per population and billing unit tables
45
STATISTICAL SECTION
Demographic Information
June 30, 2012
Description:
Demographic information provides customer base statistical information by
geographical boundary.
Table 1
District Population and Economic Statistics
Fiscal
Year Ended
June 30
City Of
Valleio M)
County of
Solano (2)
District
Total
Personal
Income
fOOO's) (3)
Per Capita
Personal
Income (311)
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
115,928
116,508
121,435
121,055
121,097
121,425
121,099
120,724
121,100
120,200
4,696
4,700
4,672
4,676
4,644
5,760
5,512
5,300
5,300
5,304
120,624
121,208
126,107
125,731
125,741
127,185
126,611
126,024
126,400
125,504
$4,397,729
4,543,695
5,002,160
4,602,511
4,293,504
4,287,638
4,188,572
4,054,033
3,876,191
3,636,811
$37,935
38,999
39,666
38,020
35,455
35,311
34,588
33,581
32,008
30,256
Sources:
(1)
(2)
(3)
(4)
Unemployment
Rate f4)
11.5%
13.6
14.3
13.6
6.4
6.5
5.7
6.8
7.4
7.9
CityofVaiiejo
Vallejo Sanitation and Flood Control District estimates
U.S. Bureau of Economic Analysis (data shown is for the City of Vallejo)
State of California Employment Development Department (data shown is for
the CityofVaiiejo)
46
STATISTICAL SECTION
Demographic Information
June 30, 2012
Table 2
Table of Principal Employers for Current Year and Nine Years Ago
Employer
Kaiser Permanente
Six Flags Discoyery Kingdom
Vallejo Unified School District
Kaiser Permanente Call Center
Sutter Solano Medical Center
CityofVaiiejo
CA Highway Patrol, Regional Office
Touro Uniyersity California
U.S. Forest Service
Petrochem Corporate Headquarters
U.S. Postal Service
TIMEC Co
CA Maritime Academy
2012
Percent of
Number of
Total
Employees
Employment
3,906
1,600
1,600
950
690
574
400
385
300
225
-
6.88%
2.82
2.82
1.67
1.21
1.01
0.70
0.68
0.53
0.40
0.00
0.00
0.00
2003
Number of
Employees
2,685
1,660
2,160
830
601
625
344
400
215
200
Percent of
Total
Employment
4.71%
2.91
3.79
1.46
1.05
1.10
0.60
0.00
0.70
0.00
0.38
0.00
0.35
Note:
"Total Employment" as used above represents the total employment of all
employers located within the City of Vallejo.
Sources:
Vallejo Chamber of Commerce
City of Vallejo
California Employment Development Department
47
STATISTICAL SECTION
Operating Information
June 30, 2012
Description: Tfie following tables contain service and infrastructure information that helps the reader better understand services provided and activities performed.
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Administration
Safety and Risk Management
Finance
Engineering
Field Operations
Plant Operations
Environmental Services
Facilities Maintenance
5
2
8
6
28
14
11
15
5
2
7
6
28
16
11
14
5
2
7
6
28
16
It
14
5
2
7
6
28
16
12
13
5
2
7
6
28
16
12
13
5
2
7
6
28
16
12
13
4
2
7
7
27
16
12
13
4
2
5
7
27
16
12
12
4
2
5
7
27
16
12
12
4
2
5
7
27
16
12
12
Total district employees
89
89
89
89
89
89
88
85
85
85
Table 2 - Operating Indicators
2012
2008
29
189
1,477
79
24
11
3
3,986
4,400
3,683
0
2007
122
165
875
48
89
418
0
3,877
4,105
3,798
7
108
214
835
215
103
310
0
4,716
3,187
4,266
0
2005
501
133
874
72
101
355
1
4,499
2,962
4,236
0
2004
26
216
1,351
153
67
322
5
4,031
4,911
3,606
0
2009
26
198
1,229
87
35
12
2
3,812
4,865
3,641
0
2006
33
136
1,176
69
41
216
1
3,717
5,176
3,654
0
2011
16
146
1,091
100
56
208
4
4,341
4,536
3,696
0
2010
New connections
Number of upper laterals replaced
Number of service calls - wastewater
Number of service calls - storm drain
Blockages in mains - wastewater
Blockages in laterals - wastewater
Blockages in mains - storm drain
Amounts of wastewater treated (MG)
Operating costs net of depreciation per MG
Dry tons of sludge produced
Number of effluent violations
405
179
1,198
103
101
311
2
4,444
2,690
4,338
2
2003
420
268
1,273
94
139
NA
20
4,562
2,652
4,329
4
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
36
1
15.5
60.0
36
9
436.3
219.9
5.6
9,629
4,408
309
4,780
36
1
15.5
60.0
34
10
435.5
219.2
5.6
6,559
1,787
393
4,780
36
1
15.5
60.0
34
10
432.0
217.0
5.6
24,132
18,345
11,264
4,780
36
1
15.5
60.0
34
10
432.0
217.0
5.6
12,594
14
961
4,780
32
1
15.5
60.0
34
10
430.5
214.3
5.6
6,314
Table 1 - Employees by Department
Table 3 - Capital Assets Data
Area served (square miles)
Number of treatment plants
Permitted treatment capacity - dry (mgd)
Permitted treatment capacity - wet (mgd)
Number of pump stations - wastewater
Number of pump stations - storm water
Miles of main - wastewater
Miles of main - storm water
Miles of channel - storm water
Main line rep/rplc - wastewater (feet)
Main line rep/rplc - storm water (feet)
Service line rep/rplc - wastewater (feet)
Open channel cleaned - storm water (feet)
36
1
15.5
60.0
35
9
436.3
219.9
5.6
2,000
0
281
13,968
36
1
15.5
60.0
35
9
436.3
219.9
5.6
8,169
0
883
7.915
36
1
15.5
60.0
36
9
436.3
219.9
5.6
9,600
0
1,173
12,260
36
1
15.5
60.0
36
9
436.3
219.9
5.6
3,313
130
463
14,700
36
1
15.5
60.0
36
9
436.3
219.9
5.6
8,158
940
663
7,525
.
767
5,285
48
Statistical Section
Other Information
June 30, 2012
General:
Authority
Governing Body
Reporting Entity
Chief Executive Officer
Date of Formation
Type of Service
Sen/ice Area
Square Mileage
Established by Enabling Act 8934 of the State of California, as
amended July 1995
Seven members of Vallejo City Council and one member
appointed from Solano County Board of Supervisors
Component unit of the City of Vallejo
District Manager
May 19, 1952
Sewage collection, treatment and disposal, storm water
transmission and remediation, and upper lateral program
City of Vallejo, Mare Island plus unincorporated County Areas
Approximately 36 square miles
Employee Benefit Plans Contact Information:
Public Employee's Retirement System
Lincoln Plaza
400 P Street
Sacramento, CA95814
(916) 326-3420
Public Agency Retirement System
3961 MacArthur Boulevard, Suite 200
Newport Beach, CA 92660
(949) 250-6369
Primary Government Contact Information:
City of Vallejo
City Hall
555 Santa Clara Street
Vallejo, CA 94590
Finance Department
(707) 648-4592
49

Vallejo Sanitation and Flood Control District Comprehensive Annual

Transcription

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