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HomeMy WebLinkAboutItem 8.1 DSRSD Exh 15I~ i~ i~ i~ i~ i~ i~ CITY ®~' ~~~ ~ M JAN ~ 6 20(1 CITY ~1NAGE1~'S p~FICE City of Dublin 1 Community Group/Organizational Funding Request Due: January 31, 2009 Dublin San Ramon Services District 7051 Dublin Blvd Dublin, Ca 94568 (925) 828-0515 ,~ " ' a ~~ O~y .5~~3,, EXHIBIT 1~ CITY OF DUBLIN 1~ ' I COMMUNITY GROUP/ORGANIZATIONAL FUNDING REQUEST ' APPLICATION PACKET tl Fiscal Year 2009-2010 AGENCY NAME: DUBLIN SAN RAMON SERVICES DISTRICT (DSRSD) PROPOSED PROJECT/PROGRAM NAME: Low nvcoME , RESIDENT WATER SERVICE SUBSIDY FUNDING AMOUNT REQUESTED: $25,000 SECTION 2 Page 2 of 12 1 ~i r CITY OF DUBLIN Fiscal Year 2009-2010 APPLICATION FOR FUNDS ~~ ~i 1. Please select one expense category: ^ Capital / Operating 2. Applicant Information: Organization/Agency Name Dublin San Ramon Services District (DSRSD) Mailing Address Dublin San Ramon Services District Street Address ~ 7051 Dublin Blvd City Dublin ~ State CA Zip 94568 Bert Michalczyk (9251828-0515 michalczykndsrsd.com Executive Director/Chairperson Work Phone Email Daniel Scannell (510) 620-5689 danscannell(a~msn.com Board President (if applicable) Work Phone Email Please list the Primary Project Contact Person who would be able to answer questions about this application and project/program during the funding period. Justin Lo Financial Analyst Contact Person for ProjectlProgram Job Title (925) 875-2241 lo(a~dsrsd.com (9251 829-1 1 80 Work Phone Email Fax Federal Tax Identification No. (required) 946050194 City of Dublin Business License No. (required) N/A SECTION 2 Page 3 of 12 Cit of Dublin , Y Fiscal Year 2009-2010 ' Application for Funds 3. Proposed Project/Program Information (Do not describe organization.) Amount of Funds Requested $ 25,000 (Maximum $25,000 per project.) Proposed Project/Program Name Low Income Resident Water Service Subsidv Proposed Project/Program Date(s): Start 07/ O1 / 09 and End 06 / 30 /10 mo. day yr. mo. day yr. Please note: City Council Grant Funds are distributed on a reimbursement basis. If your Agency needs a 100% disbursement at the beginning of the Fiscal Year, please indicate this below and please provide justification for this need. / Agency is requesting 100% disbursement at the beginning of the Fiscal Year. If selecting this option, please provide justification in the blank space below. ^ Agency is not requesting 100% disbursement at the beginning of the Fiscal Year. Please provide the frequency that reimbursements will be submitted to the City in the blank space below; e.g., monthly, quarterly, at project completion, etc. The District will create a separate account for managing and tracking the use of this grant money, and plans on absorbing 100% of administrative costs so that more money can be used to benefit the community. DSRSD would like to receive the entire amount at the beginning of the Fiscal Year to minimize the administrative impact of this program. Any portion that is unused by the end of the 2010 fiscal year will be refunded back to the City of Dublin. r ~` SECTION 2 Page 4 of 12 i~ I, ~' ~i 'l Fiscal Year 2009-2010 Application for Funds a. How would the requested funds be used? ^ Describe, in detail, the PROPOSED PROJECT/PROGRAM (not the Agency). ^ Bulleted text is acceptable. ^ Identify if the proposed project/program is a new service, or extension of an existing one. ^ An additional page may be added, if needed. Dublin San Ramon Services District (DSRSD) would like to implement a new low-income assistance program that will benefit the residents of the Ciry of Dublin. Because this funding will come from the City of Dublin, the program will only be open to residents of Dublin, not everyone in DSRSD's service area. The funds provided by City of Dublin will be used to subsidize the fixed portion of a household's water bill ($16 every two months) for eligible low-income Dublin customers who meet the income requirements based on PG&E's CARE program (low-income assistance program). This will be a new service that is provided to residents of Dublin. PG&E's income requirements are below in Figure 1. Eligible Dublin customers must provide the District with the first page of their latest annual tax fillings for verification of income and dependants. i~ i~ i~ i~ i~ i~ Figure 1: Income eligibility based on PG&E's CARE program Number of Persons in Household Total Combined Annual Income (beforetax) 1-2 $30,500 3 $35,800 4 $43,200 5 $50,600 6 $58,000 For each additional person, add: $7,400 The District will absorb the cost of administering this program, and all funding from the Ciry of Dublin will be used to help Dublin residents that are in need. The program will continue for the fiscal year (7/1/2009 to 6/30/2010), or until the grant money is depleted. SECTION 2 Page 5 of 12 _ _ E b. How would the PROPOSED PROJECT/PROGRAM address an unmet community need and improve the quality of life for Dublin residents. Why is this project/program ' needed? (Additional page may be added, if needed): The need for low-income assistance programs is well established. Although the general population in the City of Dublin is relatively affluent, there is still a significant population living below poverty levels (see part c below for detailed figures); this program is aimed to help these residents by reducing their cost of water, which is a fundamental need for maintaining basic living standards. DSRSD has wanted to implement aloes-income program for its customers for some time; however, the District cannot fund this program alone in compliance with State law, which prohibits one group of customers to subsidize another group. The grant provided by the City of Dublin is a method to fund this program and is consistent with what neighboring cities do in providing assistance through the use of General fund revenues. c. What documentation/data/records support the need for this PROPOSED PROJECT/PROGRAM? Please identify your data sources. (Additional page may be added, if needed.) U.S. Census data indicates roughly 3% of Dublin's population lives below national poverty levels ($14,000 for a family of two); with estimated population of 47,000 people, that translates to over 1,400 people living below the national poverty level in Dublin. It is important to note that the national poverty line is much lower than the poverty line for living in the Bay Area, as the cost of living is much higher here than most parts of the country. DSRSD believes that a much closer measure is that used by PG&E's CARE program. Recent U.S. economic conditions have further increased the need for such a program. With many stores closing in Dublin (such as retailers Mervyn's and Circuit City, etc.), Dublin's residents are also impacted with rising unemployment and decreased household income. Recent economic indicators published by East Bay EDA (eastbayeda.org) show that Alameda County's unemployment rate as of November 2008 has risen to 7.1%, much higher than the year-ago estimate of 4.9%. DSRSD staff has also contacted PG&E's CARE division and was informed that as of October 31, 2008 roughly 1,275 of the total 16,500 Dublin customers (7.72%) were enrolled in their CARE program. This number has grown 9.44% from a year ago (1,165 to 1,275). SECTION 2 Page 6 of 12 ~1. i~ i~ i~ iii Fiscal Year 2009-2010 Application for Funds d. Specify the PROPOSED PROJECT/PROGRAM population to be served. This program is aimed to assist low income residents within the Dublin community. Using PG&E's data as a benchmark, DSRSD estimates this segment to be roughly 3,630 (7.72%) of Dublin's total population. Due to the current economy, DSRSD expects this number to grow slightly in the coming year. e. Projects/programs must be evaluated to determine if they are being carried out efficiently and if project/program goals are being met. Please describe how you plan to monitor your project/program's success and impact. ^ An additional page may be added, if needed. DSRSD will monitor the number of customers who take advantage of this program. The District has identified two components that should be used to evaluate the program's success: 1. Quality Assurance It is important that funds are distributed to those residents that truly need help.. Most low- income assistance programs the District has researched simply require a PG&E bill as verification for eligibility; however, because PG&E,does not have the resources to actually verify eligibility, DSRSD has created an additional layer of quality assurance by requiring customers bring in the first page of their most recent tax filings as verification. Furthermore, customers will need to reapply for assistance on an annual basis, contingent that the grant is approved by the City of Dublin. This will further ensure that customers who no longer qualify do not stay in the program, and that the funding can be used to help other residents. 2. Community Awareness It is important that Dublin residents in need of assistance are aware that this program is out there, and DSRSD will make efforts of publicizing this program. The program's success will be measured by the actual number of participants, and by the amount of funds used by the end of the year. SECTION 2 Page 7 of 12 i E i f. Specify numbers of clients served by agency, then by PROPOSED PROJECT/PROGRAM: A enc Partici ants Total Number of Partici ants Served b A enc if a licable 140,000 Total Number of Dublin Residents Served b A enc (if a licable) 47,000 Pro'ect/Pro ram Partici ants Total Pro osed Partici ants Served b this Pro'ect/Pro ram 3,630* Total Number of Dublin Residents Served b this Pro'ect 3,630* *Figure is estimated population of eligible residents. However, actual number of households for the first year is estimated at 300 households. SECTION 2 Page8ofl2 FY 2009-2010 EXPF.NSF, BUDGET ORGANIZATION TAIS PROTECT/ PROGRAM GRANT REQUEST Personnel Costs Employee Salaries & Benefits 15,665,579 5,000 0 Non-Personnel Costs Services & Supplies 13,429,264 500 0 Capital Costs 13 287 500 Other (please specify) Other (please specify) TOTAL 42,382,343 5,500 0 b. Revenue Budget FY 2009-2010 REVENUE BUDGET ORGANIZATION PROJECT/PROGRAM Committed/Restricted Funds (specify source) Regional Sewer 23,746,103 Local Sewer 2,726,168 Water 17,522,546 25,000 Low Income Assistance, Dublin Non-Committed/Restricted Funds (s ecify source) TOTAL 43,994,817 25,000 Further Comments/Explanations (if necessary): These figures are from DSRSD 2009 budget year, since the 2009-2010 budget will not be adopted until June 2009. - SECTION 2 Page 10 of 12 ' ~ a. List all years that Organization has previously received City of Dublin funding (not Community Development Block Grant - CDBG). ' N/A b. Describe the population(s) served by the Organization. Dublin San Ramon Services District was founded in 1953 and provides water and recycled water to the District of Dublin and Dougherty Valley; wastewater collection and treatment services to ' the District of Dublin and southern San Ramon; and by contract sewage treatment for the District of Pleasanton. Sewerage services consist of wastewater collection, treatment and disposal to San Francisco Bay. T'he District owns, operates and maintains the Regional Wastewater Treatment ' Facility in Pleasanton, California and a wastewater collection system. The District serves of population of approximately 140,000 customers, including: ' domestic/residential, commercial, industrial, and institutional customers. r City of Dublin Fiscal Year 2009-2010 Application for Funds 7. Required Attachments: o Only one (1) cony aer Agencv of each of the following is required, even with multiple projects/programs submitted. o Applications without the following documents will not be reviewed for funding. o Please label attachments: A, B, C, etc. ' / A. Names of Governing Board; identify current Board officers. / B. Current total Orcamzation operating budget, including revenue. ^ Cleaxly label/identify the program that includes the PROPOSED 1 PROJECT/PROGRAM. / C. Most recent audit report or tax return (if applicable). ' / D. Resolution, letter or other document providing evidence of Board/Organization approval of application, and date approval was granted. ' ^ Board/Organization approval maybe pending. / E. Or anization's certificate of insurance showin covera e for liabili and g g g tY workers' compensation. / F. Application Verification Declaration Signature Page. ' (N/A) G. Signed affidavit form from each collaborating agency named in proposed project/program plan (if applicable). ' / H. Copy of IRS Letter of Determination indicating tax exempt status. SECTION 2 _ -~ ~, _ .:~ Attachment A -Brief Biographies of Board of Directors President Daniel J. Scannell was first elected to the DSRSD Board of Directors in 2000 and previously served as President in 2004. An expert in legislative and regulatory issues, Scannell is a Senior Policy Analyst (contract employee) with the California Department of Public Health. He received a bachelor of arts in political science from the University of California at Berkeley. Vice President Thomas W. Ford was elected to the DSRSD Board in 2002 and re-elected in 2006. He served as Board President in 2005. Retired, Mr. Ford's career spanned manufacturing, aerospace, finance, and insurance where he designed supply chain and manufacturing processes. He holds a business degree from Duquesne University. Director Richard M. Halket has served on the DSRSD Board since December 2004 and was Board President in 2008. Currently Halket is a Staff Accountant at Varenchik Accountancy Corp. of Danville, CA. Previously he spent 10 years in the enterprise software industry and 10 years in hydrogeology consulting. Halket received a bachelor of science in geology from Stanford University and a master of science in hydrogeology from Washington State University. Director Dwight L. (Pat) Howard has served on the DSRSD Board since December 2004 and was Board President in 2007. He is a licensed Professional Engineer with more than 30 years engineering experience. Howard has bachelor and master of science degrees in mechanical engineering from the University of California at Berkeley and a master of science in engineering management from Santa Clara University. Director Jeffrey G. Hansen has been a member of the DSRSD Board of Directors since 1985 and has served four times as its President, most recently in 2006. Hansen is a business and real estate law attorney who has practiced in the East Bay for more than 25 years. He received a bachelor of arts in political science from the University of California at Berkeley and his juris doctor degree from Golden Gate University. Notes on Attachment B: DSRSD adopts a budget every two years, and included is the most recent budget for FY 2009. If funding is approved for this program from the City of Dublin, the grant amount will be moved into the water fund (fund 600). 1 1 1 1 1 '1 Dublin San Ramon Services District Estimated Change in Net Assets for FY 2009 r2r3vzooa Regional Regional Regional Water 2009 Approved Budget (including local Sewer Local Sewer local Sewer Sewer Sewer Sewer Variable Rate Water Wafer Water WateReuse Admin. C~~st Special Refunding DV Standby Posted Ad)ustments) Operations Replacement Expansion Operations Replacement Expansion Sewer Bonds Operations Replacement Expansion Bonds Center Revenue OPEB Bonds District Total INDEX!A1 200 210 220 300 310 320 480 600 610 620 680 900 960 965 980 995 Total Estimated Working Capital July 1, 2008 $ 1,041,732 $ 6,305,246 $ 2,321,644 $ 9,636,688 $ 17,922,054 $ 37,361,783 $ 3,811,252 $ 4,892,844 $ 6,797,076 $14,048,399 $1,347,189 $ 25,060 $ 869,250 $ 4,383,671 $ 359,524 $1,036,004 $112,159,416 Pa ment of Internal Receivable Ad usted Working Capital 1,041,732 6,305,246 2,321,644 9,636,688 17,922,054 37,361,783 3,811,252 4,892,844 6,797,076 14,048,399 1,347,189 25,060 869,250 4,383,671 359,524 1,036,004 112,159,416 Revenues: Service Charges 1,741,950 15,168,736 14,238,078 31,148,764 Connection Fees 71,661 65,358 584,400 3,834,455 177,979 583,917 5,317,770 Other Revenues 10,400 294,596 102,328 679,287 2,093,389 558,400 1,408,235 530,000 5,676,635 Interest 35,318 249,309 102,576 297,308 333,934 1,570,270 58,373 202,847 264,371 495,739 51,867 48,787 71,760 9,964 49,747 3,847,170 Estimated Revenue 1,787,668 320,970 462,530 15,466,044 918,334 5,404,725 58,373 14,543,253 447,350 1,758,943 51,867 2,093,389 607,187 1,479,995 9,964 579,747 45,990,339 Transfers In, Connection Allocation 224,tf17 224,187 Replacement Allocations 155,000 1,957,000 773,000 2,885,000 Other 254,000 254,000 Debt Service 894,636 1,291,752 255,727 2,442,115 Total Transfersln 155,000 1,957,000 894,636 773,000 1,291,752 224,1Fi7 254,000 255,727 5,805,302 Total Revenue 1,787,668 475,970 462,530 15,466,044 2,875,334 5,404,725 953,009 14,543,253 1,220,350 1,758,943 1,343,619 2,317,576 607,187 1,733,995 265,691 579,747 51,795,641 Operating Expenses: Operating Personnel 1,067,016 113,445 420,717 4,741,328 115,607 177,474 2,570,805 459,772 981,336 5,737,729 509,984 16,895,213 Materials 30,802 11,550 1,500 2,256,900 53,500 8,401,291 282,900 25,310 197,105 11,260,859 Contracts 91,785 5,500 1,600 633,500 405,780 16,000 126,484 884,820 2,500 92,900 56,000 1,319,590 2,700 439,103 4,080,262 Other 8,575 250 550 139,725 250 250 826,525 79,025 200 300 1,287,619 81,230 3,087,898 262,991 5,775,388 Contribution to JPA 4,023,091 5,257,070 1,474,598 1,469,160 12,223,919 Capital Outlay 36,750 186,100 142,650 365,500 Allocated Costs 454,628 61,798 212,818 2,292,436 61,194 86,063 1,134,454 224,346 490,141 (5,018,078) - Total Operating Expenses 1,653,006 229,293 637,185 14,086,980 822,431 5,538,857 953,009 14,544,993 1,112,368 3,059,147 1,343,619 2,317,576 3,597,882 265,691 439,103 50,601,141 Capital Projects (cash flow basis) 1,662,000 150,000 2,290,000 3,730,000 1,090,000 4,000,000 12,922,000 Transfers Out: Connection Allocation 3,268 191,723 29,196 224,187 Replacement Allocations 155,000 1,957,000 773,000 2,885,000 Other 254,000 254,000 Debt Service 1,150,363 1,291,752 2,442,115 Total Transfers Out 155,000 3,268 1,957,000 1,342,086 773,000 1,320,948 254,000 5,805,302 Total Expenses 1,808,006 1,891,293 790,453 16,043,980 3,112,431 10,610,943 953,009 15,317,993 2,202,368 8,380,095 1,343,619 2,317,576 254,000 3,597,882 265,691 439,103 69,328,443 Net increase (decrease) (20,338) (1,415,323) (327,923) (577,937) (237,097) (5,206,218) (774,739) (982,018) (6,621,152) 0 353,187 (1,863,887) 140,644 (17,532,801) Ending Working Capital June 30, 2009 $ 1,021,394 $ 4,889,923 $ 1,993,721 $ 9,058,751 $ 17,684,957 $32,155,565 $ 3,811,252 $ 4,118,105 $ 5,815,058 $ 7,427,248 $1,347,189 $ 25,060 $1,222,437 $ 2,519,784 $ 359,524 $1,176,648 $ 94,626,615 Working Capital Target (4 months) 551,002 4,695,660 4,848,331 Working Capital Min(mum (2 months) 275,501 2,347,830 2,424,165 Status Above Target Above Target _ Within Band WC FY 09 new POSTED 1 DUBLIN SAN ItAMON SERVICES DIS'I"RIC'I' BASIC FINANCIAL STATEMENTS FOR 'I'IIF, YEAR ENDED ,TUNE 30, 2008 DUBLIN SAN RAMON SERVICES DISTRICT BASIC FINANCIAL STATEMENTS For the Year Ended June 30, 2008 Table of Contents Page INTRODUCTORY SECTION Independent Auditor's Report ............................................................................................ . 1 Management's Discussion and Analysis .......................................................................... . 3 FINANCIAL STATEMENTS Comparative Statement of Net Assets ............................................................................... 8 Comparative Statements of Revenues, Expenses and Changes in Fund Net Assets...... 10 Statements of Cash Flows ................................................................................... ... I 1 ............................ NOTES TO FINANCIAL STATEMENTS ................................ .......... 13 SUPPLEMENTARY 1NTORMATION Se~irer Operations Combining Statement of Net Assets ........................................................ .................... 34 Combining Statements of Revenues and Expenses and Changes in Fund Net Assets... 35 Regional Sewer Operations Combining Statement of Net Assets ................................................................................ 36 Combining Statements of Revenues and Expenses and Changes in Fund Net Assets... 37 Local Sewer Operations Combining Statement of Net Assets ................................................................................ 3 S Combining Statements of Revenues and Expenses and Changes in Fund Net Assets... 39 DUBLIN SAN RAMON SERVICES DISTRICT BASIC FINANCIAL STATEMENTS For the Year Ended June 30, 2008 Table of Contents Water Operations Combining Statement of Net Assets .................................................................................40 Combining Statements of Revenues and Expenses and Changes in Fund Net Assets ...41 Water Funds Combining Statement of Net Asscts .................................................................................42 Combining Statements of Revenues and l xpenses and Changes in Fund Net Assets ...43 AtIocatians Combining Statement of Net Assets .................................................................................44 Combining Statements of Revenues and l:;xpenses and Changes in Fund Net Assets ...45 ~9 V -.._ _ _._. ACCOUNTANCY C®RPORATiO1V 3478 Buskirk Ave. -Suite 275 ' Pleasant Hi11, California 94523 (925) 930-0902 • FAX (925) 930-0135 maze @mazeassociat es. com ' INDEPENDENT AUDITORS' REPORT www.mazeassociates.com Board of Directors ' Dublin San Ramon Services District Dublin, California We have audited the basic financial statements of the Dublin San Ramon Services District for the year ended lone ' 30, 2008. These basic financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these basic financial statements based on our audit. Comparative data for the year ended June 30, 2007 has been summarized fio-n the prior year financial statements audited by us where we expressed an ' unqualified opinion dated November 1, 2007. We conducted our audit in accordance with generally accepted auditing standards in the United States of America. ' '1"hose standards require that we plan and perform the audit to obtain reasonable assw•ance as to whether the basic financial statements are free of material misstatement. An audit includes examining on a test basis evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing tl~e accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. hi our opinion, the basic financial statements referred to above present fairly in all material respects the respective ' financial position of the Dublin San Ramon Services District at Jtme 30, 2008, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles in the United Stales of America. As described in Notes 8, 10, and 11 the District implemented the provisions of Governmental Accounting Standards Board Statement No. 48, Sales and Pledges of Receivables a,~d Future Revenues a,~d h,tra-Entity Ti•a„sfers of Assets a,~d future 12eve,tz,es and GASB Statement No. 45, rlccozn2lirrg cmd Fi,~a„cial Reporti„g by rnr~loyers far Pasten,ploy,ne»t Benefits Otl,er T1,a,r Persio,~s and GASB Statement No. 50, Perr io„ Disclosures. Management's Discussion and Analysis is required by.the Government Accounting Standards Board, but is not part ' of the basic financial statements. We have applied certain limited procedures to tl~is information, principally inquiries of management regarding the methods of tmeasurement and presentation of this information, but we did not audit this information and we express no opinion on it. Our audit was made for the purpose of forning an opinion on the basic financial statements taken as a whole. The supplemental information listed in the Table of Contents is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Dublin San Ramon Services District. Such information has ' been subjected to the auditing procedures applied in our audit of the basic financial statements, and in our opinion is fait•ly stated in all material respects in relation to the basic financial statements taken as a whole. i~ October 31, 2008 ~"~~ .-~ i~ A Professtonat Corporation 1 DUBLIN SAN RAMON SERVICES DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS OF BASIC FINANCIAL STATEMENTS Fiscal Years Ended June 30, 2008 and 2007 Financial Hi lg_ilights / Total assets decreased by $11.8 million or -3.1%. / Total liabilities decreased by $12.1 million or -17.0% / The District's net assets increased $0.3 million or D.1%. / Total revenues decreased $3.9 million or -6.7% / Total expenses increased $7.9 million or 17.1% Overview of the Financial Statements The following overview of the financial activities of Dublin San Ramon Services District summarizes changes in the District's basic financial statements. Basic financial statements consist of the Statement of Net Assets, Statement of Revenues and Expenses and Changes in Net Assets, Statement of Cash Flows and Notes to 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 healtl~ and. should he considered together with management's short and long-term plans for prospectively financing operations and programs. The Statement of Net Assets includes all District assets and liabilities and provides infot7nation about the nature and amounts of investments in resources (assets} and obligations to creditors (liabilities). These Statements provide data for calculating analytical review measw•es such as rate of rehirn, capital str2rctt-re, and liquidity. Revenues and expenses are accounted for .irt the Statement of Revenues and Expenses and Changes in Net Assets. These statements measure the success of District operations far the year and determine cost recovery through user fees and other charges, profitability, and credit worthiness. Lastly, the Statement 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, the Statement of Cash Plows shows 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 fiends are self-supporting funds that charge fees to users to cover the costs of operation, maintenance and recur•ing 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 applicahle as of the fniancial statement date. The District is governed by a Board of Directors, which sets policy, adopts budgets and appoints a General Manager to run operations. There are five Directors elected at-large to overlapping four-year teens. Chances in Net Assets The following condensed Statement of Net Assets and Statement of Revenues and Expenses and Changes in Fund Net Assets are presented in a comparative format together with percentage of change to facilitate analysis of financial activity. DUBLIN SAN RAMON SERVICES DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSES OF BASIC FINANCIAL STATEMENTS Fiscal Years Ended June 30, 2008 and 2007 Condensed Statement of Net Assets Current and restricted assets Capital assets Other assets Total assets Current and restricted liabilities Long-tem liabilities Total liabilities Net assets Invested in capital assets, net of debt Restricted for expansion Restricted for debt service Restricted for assessment district Unrestricted Total net assets Fiscal Year Fiscal Year Ended Ended 2008 2007 $ 99,771,932 $ 125,182,720 245,371,443 239,008,062 291048,285 21,809,845 374,191,660 385,997,627 3I,105,951 28,095,314 7,245,459 64,096,815 59,201,265 71,342,274 207,$ 89,308 187, 277,912 38,03b,226 46,125,675 3,123,483 5,b47,854 854,612 854,725 bS,086,76b 74,749,187 $ 314,990,395 $ 314,655,353 Fiscal Year Ended Chan a 2006 Change -20.3% $ 145,348,284 -13.9% 2.7% 220,558,098 8.4% 33.2% 22,662,494 -3.8% -3.1% 388,568,876 -0.7% 329.3% 9,529,814 -24.0% -56.2% 76,454,508 -16.2% -17.0% 85,984,327 -17.0% 1I.0% 158,254,460 18.3% -17.5% 68,424,642 -32.6% -44.7% 5,878,545 -3.9% 603,290 41.7% -12.9% 69,423,612 7.7% O.l% $ 302,584,549 4.0% Condensed Statement of Revenues and Cxpenses and Changes in Fund Net Assets Operating revenues -sewer Operating revenues -water Other revenues Inveshnentincome Non-operating revenues Connection fees Conh~ibutions Total revenues $ 16,093,655 $ 16,804,542 14,082,681 12,282,851 4,650,42b 4,620,077 5,492,130 6,684,883 10,292,G87 14,063,483 3,471,772 3,497,300 54,083,351 57,953,136 4.2% $ 16,662,759 0.9% 14.7% 9,504,483 29.2% 0.7% 4,543,]94 1.7% -17.8% 3,795,096 76.1% 3,266,494 -26.8% 32,184,370 -Sb.3% -0.7% 5,012,519 -30.2% 6.7% 74,968,915 -22.7% Operating expenses -sewer Operating expenses -water Non-operating expenses Total expenses Change in net assets Total net assets -beg of year Total net assets -end of year 25,044,621 22,768,447 23,377,198 18,995,357 5,326,490 4,118,528 53,748,309 45,882,332 10.0% 22,253,045 2.3% 23.1% 15,319,371 24.0% 29.3% 1,864,041. 120.9% 17.1% 39,436,457 16.3% $ 335,042 $ 12,070,804 -97.2% $ 35,532,458 -66.0% 314,655,353 302,584,549 $ 314,990,395 $ 314,655,353 4.0% 267,052,091 13.3% 0.1% $ 302,584,549 4.0% 1 t 4 I' 0 DUBLIN SAN RAMON SERVICES DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS OF BASIC FINANCIAL STATEMENTS Fiscal Years Ended June 30, 2008 and 2007 Cut~•ent and restricted assets decreased 20.3% iI1 fiscal year 2008 primarily due to the decrease in investments as $14.5 million was used to pay off debt. Capital assets increased 2.7°/a in the current year and 8.4% in the prior year due to completion of capital pI•ojects ~vl1ic11 expanded and improved the District's infrastruchlre. Other assets increased by 33.2%, which is primarily due to the increase of the net OPEB asset. Culrent liabilities include accounts and interest payable, construction deposits, accnied expenses, connection fee credits and current portion of long-telnl debt. Current liabilities increased 329.3% due to the principal porliotn of the 2000 Variable Rate Demand Celtifcates of Participation {2000 COPS) being reclassified from a long-term liability to a cutTent liability; see Financial Statement Note 8D far a detailed explanation. Long- term liabilities, which include long-term debt atld long-term connection fee credits, decreased 56.2% primarily due to the reclassification of the 2000 COPS $21 million and a prunciple reduction of $14.5 I1111110In. II1 fiscal year 2008 there were small changes in rates for Sewer and Water. At the beginning of the fiscal year the bi-monthly local sewer rate decreased from $12.20 to $9.80 for a single family residence. Sewer revenues decreased 4.2% in fiscal year 2008 due to a decrease in local sewer rates. Local Sewer revenue makes up 10% of total revenue genelated by Sewer operations. Water revenues increased 14.7% in fiscal year 2008 partly due to an 8% rate increase to potable water rates and Iecycled v~~ater rates that went into effect in January, 2008. In fiscal year 2008 we had a 4% increase in the number of customer accounts and an 8% increase in water consumption. The fluch~ation in other revenues was minimal between 2008 alnd 2007. Ilnvestlment income decreased 17.8% between 2008 aIn(1 2007. Accounting standards require the District to adjust the value of investments to market value at year-end. The decrease in investment income in 2008 is partly due to the decrease in interest rates and a decrease in Ialarket value recorded at year-end. In 2008 the District saw a 26.8% decrease in colulection fees and a 0.7% decrease in contributions (developer donated facilities) as residential and commercial development slowed i1 East Dublin and Dougherty Valley. Fiscal yeal• 2008 operating expenses increased 10.0% in Sewer operations, primarily due to increases in personnel, matet•ials and contract sen~ices. As new facilities were put into operation in 2008, increases in operating costs are expected. Operating expenses in Water operations incl~ased 23.1%, due to an increase in costs of water purchased from Zone 7 and an increase in contract selvices. The increase in contract services included payments to t11e DERWA JPA. Operational expenses for recycled water are shared by the JPA paltners in proportion to the recycled water received; in fiscal year 2008 DSRSD's share was 74% of those costs. Non-operating expenses increased 29.3% or $1,2 million in 2008 primarily due to loss on investment in joint powers authorities, LAV WMA and DERWA, Financial Statement Note 6 -- Investment in Joint Powers Authorities provides additional information I•egarding LAVWMA and DERWA, ~ , DUBLIN SAN RAMON SERVICES DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS OF BASIC FINANCIAL STATEMENTS Fiscal Years Ended June 30, 20Q8 and 2007 Capital Assets and Debt Changes ui District-wide capital assets and accumulated depreciation are as follows: Balance at .Transfers & Balance at 06/30/07 Additions Retirements Adjustments 06/30/08 Capital assets benig depreciated: Land & Improvements Buildings Equipment Sub-surface lines Tota] capital assets being depreciated Less: Improvements Buildings Equipment Sub-surface lines Total accumulated depreciation Net capital assets being depreciated Capital assets not Ueing depreciated: Construction in progress $ b,351,169 $ - $ - $ 1,449,104 $ 7,800,273 112,661,094 - - 5,378,327 118,039,421 54,755,809 557,159 (485,390) 4,934,753 59,762,331 92,476,972 3,471,772 3,405,116 99,353,860 $ 266,245,044 $ 4,028,931 $ (485,390) $ 15,167,300 $ 284,955,885 {1,827,439) (258,713} {2,086,152) (15,441,594) (2,326,687) {17,768,281) {19,270,676} (2,225,612) 474,958 {21,021,330) {20,840,106) (2,051.174) {22,891,280) (57,379,815) (b,862,18b) 474,958 - (63,767,043) 208,865,229 (2,833,255) (10,432} 15,]b7,300 221,188,842 ~i ~i ~i ~i ii 30.139,833 9,210.068 - (15,167,300) 24,182,601 ' I Total capital assets, net $ 239,005,062 $ 6,376,813 $ (10,432) $ - $ 245,371,443 In addition to Operations, Maintenance & Replacement (OM&R), the District also maintains an ongoing capita] improvement program (C1P). The CIP i 0-Year Plan (Plan) is a document that reflects the District's capital infrastructure needs for the neat ten years. The Plan is updated every two years in advance of the preparation of the Two-Year C[P Budget. The District spends a great deal on capital asset acquisition and capital projects to support growth in its service area. For fiscal year ended 2008 the District purchased, had contributed, or constructed the following assets: Water reservoir 200B $3,520,334 Contributed sub-surface lines 3,471,772 Water pump station 20B 3,157,034 Water main and water system improvements 2,291,538 Wastewater treatment plant improvements 1,876,514 FSL landscaping and improvements 1,41b,641 Water Reservoir & pump station l0A improvements 1,223,511 Wastewater treatrxrent plant alternative energy and emergency power 1,072,805 Operations equipment, vehicles and office equipment 605,892 Financial, management, and operatuig software upgrades 560,190 $19.196.231 6 0 [] DUBLIN SAN RAMON SERVICES DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS OF BASIC FINANCIAL STATEMENTS Fiscal Years Ended June 30, 2008 and 2007 For fiscal year ended 2008 the District had the following activity in construction in progress: Additions to Consruction in ProEress Water reservoir 4 and pump station 4A $2,365,364 Wastewater treatment plant maintenance building 1,593,808 Water system improvements 1,135,586 Wastewater treatment plant improvements 969,214 Security and emergency preparedness 963,975 Wastewater treatment plant new bar screens 866,540 Building and landscape improvements District wide 550,239 SCADA and technology improvements 495,277 Recycled water system improvements 270A6S 21 Furancial Statement Note 4 -Capital Assets, provides more detailed information on capital asset activity. The changes in long-term liabilities are as follows: ' Debt Payable 1997 Revenue Bonds 2000 Certificates of Participation WateReuse Program I L Balance at Principal Balance at June 30, 2007 Additions Paynrerrts June 30, 2008 $3,640,000 $2,165,000 $1,475,000 35,500,000 11,885,000 23,615,000 13,860,000 475,000 I3,38S,000 53.000.000 $ 14.S2S.000 38.475.000 The District issued debt to fund expansion of the wastewater treatment facility, the recycled water facilities, and to refinance debt issued for the District Administrative Office. For fiscal year 2008, no new debt was issued and total principal repayment was $14,525,000. Rates and Other Economic Factors Financial Statement Note 8 -Long Tenn Debt, provides additional information on debt activity. The District is not subject to general economic conditions such as increases or declines iu property tax values or other types of revenues drat vary with economic conditions such as sales taxes. Accordingly, the District sets its rates to cover the costs of OM&R and debt-financed capital improvements. Contacting the District This financial report is designed to provide our customers, investors and creditors with a general overview of the District's finances and to show accountability for the money it receives. If you have questions about #his report, or need any additional financial information, contact the Financial Services Department at 7051 Dublin Blvd., Dublin, California 44568. llUBLIN SAN RAMON SERVICES DISTRICT CUMPARATIVI; STATEMENT OF NET ASSETS JUNE 30, 2008 ~4r1'Tl"1 SUMMARI%1:D'I'Ol'ALS AS OF JUNE 30, 2007 2UU8 Se4~~er Water Totals 2007 ASSETS Current assets Pooled cash $2,775,948 $1,198,611 $3,974,559 $4,694,904 Pooled invcsuncnts 58,987,156 24,487,508 83,474,664 106,386,969 Restricted investments 1,878,254 1,507,161 3,385,415 6,259,950 Accounts receivable 4,385,21 I 3,309,452 7,694,663 6,131, ] 98 Interest receivable 349,039 145,756 194,795 985,3~t7 Employee notes receivable 35, i 86 35,18b 33,475 llcfen ed cnnnetaion tees receivable 680, 130 680,130 648,986 Prcpatd expenses 5,854 26,fib6 32,520 41,891 'Total current assets 69,09b,77R 30,(,75,154 99,771,932 125, ] 82,720 )\ton-current assels: Ater OP)rB asset 6,921,187 I,Oi5,U88 7,936,575 Capital assels: Property, plant and equipment 170,997,462 1 13,958,423 284,955,885 2GG,2~45,04~4 Leas accumulated depreciation 43,302,b25 20,464,418 63,767,043 57,379;815 1\eE property, plant ant! equipment 127,644,837 93,494,005 221,1 RR,R42 208,865,229 Constntclion in progress 10,435,450 ] 3,?47, 151 24, 182,601 30,139,833 "Total rtpiltd assels 138,130,287 107,241,156 245,371,443 239,005,062 ()[hcf 355CtS: I)el'erred charges 713,191 199,674 942,865 1,272,850 hnresunent in joint potvcrs au[horitics 1~1,U71,558 2,215,798 1b,287,35b 15,452,905 Deterred connections receivable -long term 3;831;489 3,83 ],489 4ss4,o9o "Total outer assets 18,b96,238 2,415,472 21,111,7]0 21,809,845 Total non-current assets 156,826,525 109,656,628 266,483,153 260,814,907 Total assets S232,844,790 $141,316,870 $37~{,191,660 $385,997,627 8 DUBLIN SAN RAMUN SERVICES DISTRICT COMPARt1TIVE STATEMENT OF NET ASSETS 3UNE 30, zaa8 ~t'ITH SUMtivlAltI2EU'1'Q'I'ALS AS OF JUNE 30, 2007 2008 Sen-er Water Totals 2007 LIABILiT1ES Current liabilities: Accounts payable $2,220,824 $3,621,791 $5,842,615 $3,099,813 Coutracror bonds and deposits 706,577 8D1,154 1,5D7,731 1,393,115 Accrued expenses 73,543 73,543 132,155 Accrued compensated absences 479,957 237,955 717,9]2 695,b08 Interest payable 96,370 96,370 124,464 Current portion of long-term debt 21,215,000 490,000 21,7D5,D00 660,000 Deferred rcvcnue and other liabilities i,162,780 1,162,780 1,139,804 Total current liabikities 25,955,051 5,150,900 31,105,951 7,245,459 l.oug term liabilities: Long-term debt Iess current portion 3,875,000 12,895,000 16,770,000 52,340,000 Arbitrage payable 56,371 Sb,371 42,045 n1,D remediation payable 620,000 62Q000 Deferred rcvcnue 3,831,489 6,817;454 10,648,943 11,714,770 'Total long term liabilities 8,326,489 19,7(18,825 Z8,D95,314 b4,D9G,R15 I"o[allittbililies 34.281.540 24,919,725 19,201,265 71,342.274 1\~ET ASSG"1'S Invested in capital assets, net ol'rclated debt 113,833,478 94,055,830 207,889,308 187,277,912 Restricted for: Expansion 32,655,589 5,380,637 38,036,226 46,125,675 Dcbts'ervice 1,872,214 1,251,2b9 3,123,~i83 5,617,854 Assessment district 854,6]2 854,6!2 854,725 iJnrestrictcd 50,201,969 14,884,797 65,086,766 74,749, ] 87 Total net assets 3198,563,250 $116,427,145 $314,990,395 $314,655,353 See accompanying notes to basic financial statements 9 11 DUBLIN SAN RAMON SERVICES DISTRICT COMPARA7`IVE STATEMENTS OI' REVENUES AND EXPENSES AND CHANGES 1N FUND NET ASSETS I~OR THE YEAR ENDED JUNE 30, 2008 11'ITH SIJMMARl~F:[3'I'E)TALS POR TFIE YFAIZ I;ND}:U JUNG 30, 2007 OPERATING REVENUES Wastewater service charges Water sales Utherrevenues "l'otal operating revenues UPERATING EXPENSES Personnel Materials Conb-actual services Other Depreciation "I•otal operating expenses OPERATING (LOSS) NONOPERA•fINCi REVENUES (EXPENSE) Investment income Interest expense Clain (Loss) on investment in ,IPA Gain (Loss} on disposal of capital assets Total non-operating revenues {expense), net 2o0g Sewer Water Total 2007 $16,093,655 $ ] 6,093,655 $16,804,542 $14,082,68] 14,082,681 12,282,851 2,045,885 2,604,541 4,b50,426 4,620,077 18,139,540 16,687,222 34,826,762 33,707,470 9,765,178 6,239,761 16,004,939 13,828,974 2,347,038 8,332,145 10,679,183 9,424,585 8,617,991 5,996,537 14,614,52 8 11,671,270 154,002 106,981 260,983 626,717 4,160,412 2,701,774 6,862,186 6,212,258 25,044,621 23,377,198 ~I8,421,819 41,763,804 (6,905,081) (b,689,97G} (13,595,057) (8,056,334) 3,754,494 1,737,636 5,492,130 6,684,883 {1,416,647} (619,628) (2,03b,275} (2,201,11b) (3,533,636) 220,932 (3,312,704) (1,634,223) 17,004 5,485 22,489 (283, 189) (1,178,785} 1,344,425 165,640 2,566,355 1,OSS 13L1'ORE CONTRIBUTIONS AND TRANSFERS (8,083,866) (5,345,551) (13,429,417) (5,489,979) Non-cash contributions 1,003,088 2,4b8,684 3,471,772 3,497,300 Capital contributions -connection fees 7,876,102 2,416,585 10,292,687 14,063,483 •I'ransfcrs in 187,746 187,746 203,135 Transfers (out} { 187,746) { 187,746} (203,135) Changes in net assets 983,070 (648,025) 335,042 12,070,804 TOTAL NET ASSETS, BEGINNING OF YEAR 197,580,18fl 117,075,173 314,655,353 302,584,549 TOTAI. NE"C ASSETS, END OI' YEAR $] 48,563,250 $I 16,427,145 $314,990,395 $314,655,353 See accompanying notes to basic financial statements 10 11 11 11 II 1 11 11 ~i DUBLIN SAN RAMON SERVICES DISTRICT STATEiViEbTTS OF CASH Fi.OWS PROPIiIEfARY FUNDS - ENTERPRISE FOR THE YEAR ENDED JUNE 3Q 2008 87TH S[JASMARIZED TOTALS FOR 17iE YEAR ENDER JUtvB 30, 2007 CASH FLOWS FROb4 OPERATING ACTIVITIES Receipts from customers, users and joint potters authorities Payments for services and supplies Payments to or on behalf otemployees Net Cash Provided (Used) by Operating Activities CASI[ FLOWS FROM NONCAPITAL FINANCING ACf1V1TIES Due to other funds Due from other funds Transfers in 'Cransfers out Net Cash Used in Noncapital Financing Activities CASH FLOWS FROM CAPITAL AND RF•,LATED FINANCING ACTNTTIES ('rincipal paid onlong-tens debt Jnterest paid on tong-teen debt Acquisition and construction ofcapital asseu Sale of other capital assets Payment ofcapital asset casts reimbursable by DERWA Connection fees collected Net Cash (Used) Financing Activities CASH FT.OWS FRO\4 INVESTING ACTIVITIES City of Livermore expansion fee htvesfinents in joint potters authorities Interest received Purchase of U.S. government securities Sales of [J,S. government securities Net proceeds (purchase) of other im•estmenis Net proceeds {purchase) of i.A[F invesunent Net Cash Provided by in hmesting Activities NET DECREASE IN CASI I AND EQUIVALENTS CASH ANll CASI[ EQUNALENTS, BEGINNING OF YEAR CASH AND CASH EQUNALTiNTS, END OF YEAR RECONCA.IATION OF OPERATING INCOME (LOSS} TO NET CASI-I PROVIDED BY (USEll} OPERATING ACf1V1'C1ES Operating (loss} Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation {Increase) deereasein accountsreceivable (increase) decrease in employees notes receivable (increase) decrease in prepaid expenses (Increase) decrease in net OPEB asset increase (decrease) in accounts pa}able Increase (decrease) in DLD remediation pa}able Increase (decrease}in arbitrage payable Increase {decrease}in contractor bonds and deposits payable Increase (decrease}in accrued expenses increase (decrease}ineompensated absences Total adjustments NET CASH PROVIDED BY (USED) OPERATING ACTIVITIES NON CASH TRANSACTIONS: Pair market value adjustment (decrease) increase Contn'buted assets aoos Setter Water Total 2007 $16,882,197 $16,390,473 $33,272,668 $36,803,429 (9,416,942) {12,704,620) (22,121,562) (24,878,818) {16,691,093} (7,229,828) (23,92Q921) (13,791,629) (9,225,838} {3,543,977) (12,769,815) (1,867,018) 3,061,467 3,061,467 (3,061,467) (3,061,467) 187,746 187,746 203,135 (187,746} (187,746) (203,135) 3,249,213 (3,249,213} (12,921,600} (1,603,400) (14,525,000) (10,640,000) (1,291,287) (493,597) (1,784,884) (2,172,262) {4,936,440) (4,830,787} (9,767,227) (21,445,111) 23,484 9,437 32,921 (96,000) 7,867,934 2,103,359 9.971,293 20,583.266 (11,257,909) (4,814,988) (16,072,897) (13,470,107) 4,871,389 {3,647,156) {3,647,156) (8,662,799) 4,070,170 1,912,513 5,982,683 6,746,693 {9,]25,]63) (5,864,837) (14,994,000} (41,480,128) 29,828,750 19,171,250 49,000,000 47,952,902 (10,666,223) (7,967,317) (18,633,540) 1,]35,583 6,337,319 4,073,061 _ _ 10,410,380 8,963,127 16,797,697 11,324,670 28,122,367 19,026,767 (436,837) (283,508) {720,345) 3,689,642 3,212,785 1,482,1 i9 4,694,904 1,005,262 $2,775,948 $1,198,6]1 $3,974,559 $4,694,904 ($6,905,081) ($6,689,976} ($E3,595,057) ($8,086,334) 4,160,412 2,70],774 6,862,186 6,212,258 (1,263,619) (249,846) {1,563,965) (1,059,906) (1,711) (F,711) 6,321 b,276 3,095 9,371 4,155,865 {6,921,487) {1,015,088) {7,936,575) 797,577 1,945,225 2,742,802 {1,34b,128) 620,000 620,000 14,326 14,326 {48,126) 343,124 (228,508) 114,616 (1,787,514) (58,612) {58,612) 28,827 (2,717} 25,021, _ 22,304 31,024 (2,320,757} 3,145,499 825,242 6,189,316 ($9,2838} {$3,543,977) _($12,769,815) _ ($1,867,0[8) (214,663) (20,921) (235,584) (229,010) 1,003,088 2,468,684 3,471,772 3,497,300 See accwnpanying notes to basic financial statements )) DUBLIN SAN RAMON SERVICES DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2aaa rVQTT #1- SUMMARY()F,SIGNII'1C~INT~I0001UrVTlrVCr POI.It;tls'.S A. General Dublin San Ramon Services District (the District) is organized under the Community Services District Act provisions of the general laws of the State of California and is governed by a flue-member Board of Directors. The District, which was establislted in 1953 and became active in 1960, provides water, recycled water and waste+vater collection and treatment services. "i`he District's jurisdiction is approximately 26 square miles in the counties of Alameda and Contra Costa, Califw•nia. B. Basis of Accounting The DI$tl•ICt l5 a pl'OpCletaly elltlt~; it uses an enterprise fund format to repol-t its activities for financial statement purposes, Enterprise fiends are used to account for operations that are financed and operated in a manner similar to private business enterprise, where the intent of the governing body is that the costs and expenses, including depreciation, and providing goods or services to the gelteral public on a continuing basis, be Cmanced or recovered primarily through user charges. An enterprise fund is used to account for activities similar to those in the private sector, where the proper matching of• revenues and costs is important and the full accrual basis of accounting is required. With this measurelneltt focus, all assets and all liabilities of the enterprise arc recol•ded on its statement of net assets, and under the full accrual, basis of accounting all revenues are 1•ecogni~ed when eal•Ited and all expenses, including depreciation, arc recognised +when incurred, A Major Fund is a futul whose revenues, expenditures/expenses, assets or ]iabilities (excluding extraordinary items) are at least 10 perceltt of col•responding totaks for all fiiutds. The DisU•ici reports the follo+ving major Proprietary Funds: Water F~nterprise - ~fhis enterprise accounts for the operation, maintenance and capital improvement projects of the water system, +vhich is funded by user charges and other fees. Sewer Enterprise --~ This enterprise accounts for the operation, maintenance and capital improvement projects of the sewer system vltich are funded by user charges and other fees. "1'lte District applies all applicable pronouncements of the Gavermnental Accounting Standards Board (GASB) as well as any applicable pronouncements of the Financial Accounting Standards Board, the Accounting ~~ ~ Principles Board, or any Accounting Research Bulletins issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements. ' C. Measurement Focus Enterprise funds are accounted for on a cost of sell~ices or ecoatoutic resources measurement focus, vltich ' means that all assets and all liabilities associated +vith their activity are ittcludcd on their balance sheets. Enterprise fund type operating statements present htcl•eases (revenues) and decreases (expenses) in total net assets. ' 13 NOTL #1 - SUMM~IRY O1~ .SIGNIFICANT ACCOUNTING PUI,ICII'S (Cnntimred) D. [Zepor•tina Entity In evaluating how to define the government for financial purposes, management has considered all potential component units. The decision to include a potential component unit in the reporting entity was made by applying the criteria prescribed by Generally Accepted Accounting Principals {GRAY}. As required by GAAP, these financial statements present the primary government and its component units, entities for which the government is considered to be financially accountable. rinancial accountability is interpreted to mean appointment of a voting tnajority of the component unit's board and either the ability to impose will by the primary government or the possibility tl~at there is a financial benefit or burden on the primary government. In evaluating the financial reporting entity for purpose of preparing the basic financial statements, fire District has determined it is financially accountable for the DSRSD Financing Corporation. The Corporation is included as a blended component unit in these basic financial statements. C:. Capital Assets Capital assets, which include property, plant, and equipment are recorded at historical costs or estimated historical cost, if actual cost is not available. Contributed assets are recorded at estimated fair value on the date of contribution. The District defines capital assets as assets with an initial, individual cost of $5,000 and an estimated useful life in eYCess of one year. Depreciation is computed by the sb•aight-line method based on the estimated usefirl lives of related asset classifications. The District has assigned the useful lives listed below to capital assets: l..and Improvements 15-25 years Buildings 10-50 years F,quipment 5-25 years Sub-surface {roes 25-50 years T'. Cash Flows Defined For purpose of tl~e statements of cash tlows the District defines cash and cash equivalents to include all cash in deposit accounts and cash on hand but does not include cash held in escrow for restricted purposes. G. Accounts Receivable The District bills its water consumption and sewer usage on a cycle billing method. Cycle billing results in an ' amount of services rendered but not yet billed at year-end. The District has recorded this revenue by estimating the cmbilled amount. The estimate was calculated by using the billing subsequent to the balance sheet date (Jame 30) and calculating the amount of service provided prior to June 30. This calculated amount is included in , accounts receivable. 14 ' G J I~ i L DUBLIN SAN RAMON SERVICES DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NUTR #1- SUMMARY OI' SIGNIFICANT ACCOUNTING POLICIES (CofNijrlred) H. Acal•ued Compel~sated Absences '1`lze liability for vested vacation pay is calculated and accrued on an amlual basis. The amount is comprrted using current employee accumulated vacation hours at current pay rates. I. }teclassitication The Dish•ict changed the classification of certain amounts in the current year financial statements to improve their presentation. Amounts for the prior fiscal year have been reclassified to conform to the current year presentation, NUTI' #2 -CASH AND IArVF:STi1/ITNT,S A. Policies California Larv generally requires banks and SaV]ngS and loan 111sfItUt1011S t0 pledge government seall•ities with a market value of 1 10% of the District's cash on deposit, or first U•Elst deed mortgage notes with a market value of 1 SO% of tl~e deposit, as collateral for these deposits. Under California Larv this collateral is held in a separate investment pool by another institution in the District's name and places the District ahead of general creditors of the institution. As of June 30, 2008, the District's cash in bank was insured or collateralized as discussed above. At June 30, 2008, the District held $199,521 in escrow accounts on behalf of developers, which were not collateralized as allor>~~ed in the government code. The District invests in individual investments and in investment pools. lndividual investments are evidenced by specific identifiable securities instrlnnents, or by an electronic enh•y registering the owner in the records of the institution issuing the security, called the book entry system. In order to increase security, the District employs the Trust Del.~artment of a bank as the custodian of certain District managed investments, regardless ol'their form. The District's investments are carries{ at fair value, as required by generally accepted accounting principles. The District adjusts tl~e carrying value of its invesUnents to reflect their fair vahle at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year. B. Classification Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of District debt instruments or Agency agreements. Cash and Cash Equivalents $3,974,559 investments 83,474,6b4 ttestricted investments 3,38S,4iS Total Cash and investments $9t},834,b3$ 15 ii DUBLIN SAN RAMON SERVICES DISTRICT NOTES TO FINANCIAL STATEMENTS JUNF, 30, 2008 NOTE #2 -- CiI~Sll~IND INYL'STR~Is'NT.S (Continued) C. htvestmettts Authorized by the California Government Code and the District's Investment 1'olicY The Dish•ict's Investment Policy and the California Government Code allow the District to invest in the following provided .the credit ratings of the issuers are acceptable to the Disleict; and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the District's Investment Policy where the District's investment Policy is more restrictive. M inimtutt Maximum Credit Authorized Investment Type Maturity Quality Repurchase Agreements 1 Year None California Local Agency Investment Fund Upott Dettland None IJ.S. `I~reasuty Obligations 5 Years None U.S. Agency Securities 5 Years None lnsured or Collateralized Deposits with Banks, Savings and Upon Demand None California Asset Management Program Upon Demand None l of the 2 Local Agency Bonds 5 Years l-lighest Medium Term Notes 5 Years A Commercial Paper l84 Uays A Vhith the exception of U.S. Treasury securities, U.S. Government Agency sponsored obligations, the California Asset Management Program (CAMP) and the Local Agency Investment Fund (LAID), no more titan 50% of the District's total investment portfolio will be invested in a single security type or with a single institution. "I'he District does not enter into reverse repurchase agreements. ~i l6 II II II It II DUBLIN SAN RAMON SERVICES DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 N()TE lit - CASHAND INVESTMENTS (Corrtirruec!) D. Investments Authorized by Debt Agreements The DisU•ict must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the District fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with District resolutions, bond indentures or State statutes. The table below identities the investment types tltat are authorized i'or investments held by fiscal agents. "1'he table also identifies certain provisions of these debt agreements: Authorized Investment •1'ype I1.S Agency Securities Bankers' Acceptances Commercial Paper Money Market Mutual Funds California Local Agency Investment Fund Pre-funded Municipal Obligations Repurchase Agreements Maximum Minimum Credit Maturity 5 years 3G0 days 270 days N/A N/A N/A 30 days Quality Aga P-1 P-1 AAATn None AAA n 'T'here are no restrictions on the maximum amount im~ested in each security type or maximum that call be invested in any one issuer. E. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. T}te District generally manages its interest rate risk by holding investments to maturity. Information about the sensitivit~}J of the fair values of the District's imlesttnents (including investments held by bond trustees) to market interest rate fluchrations is provided by the follarving table that shows the distribution of the District's inveshnents by mattu•ity or eat•liest call date: 17 0 DUBLIN SAN RAMON SERVICES DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2aas NOTls' #2 - CASI~rIND INI~I;'STMI;'NTS (Coirtilrrted) 2 Months 36 to 60 aver 60 Investment "Type or less Months Months Total IJ.S, Agency Securities I~lon-callable $3,OS2,50U $1,978,000 $8,030,500 Callable 20,231,750 20,231,750 California ].oca1 Agency Investment i'und 38,684,271 38,684,271 California Asset Management Program 16,528,143 16,528,143 Total Uirresb•ictet! I~rvesb~tents 78,496,664 4,978,000 83,474,664 WestLFi Guarantee [nvestment Contract $1,170,573 1,170,573 Motley Market Funds 2,015,321 2,015,321 Escj•ow Deposits 199,521 199,521 Tot~rl RestrlcPerll~n~esUirents 2,214,842 1,170,573 3,385,415 Tntrrl tm=est~rrents $80,711,506 $4,978,000 $],170,573 $86,860,079 The District is a participant i~t t17e Local Agency Investment fund {LAIF) that is regulated by California Government Erode Section 16429 under the oversight of the Treasurer o1'the State of Califiornia. The District reports its investment hl L.AII~ at the fair value amount provided by LAIF, which is the same as the value of the pool share. 1'he balance available for withdratival is based on the accounting records maintained by LA1T~, which are recot•ded on att amortized cost basis. Included in LAII~'s investment pot•tfolio at•e collateralized mortgage obligations, mortgage-backed securities, other asset-backed sectu•ities, loans to certain state timds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. At June 30, 2008, these investments matured in an average of 212 days. The District is a voluntary participant in the California Asset Management Program (CAMP}. CAMP is an investment pool offered by tl~e California Asset Management Trust (the Trust}. The Trust is a joint powers authority and public agency created by the Declaration of Trust and established under the provisions of the California Joint hxet•cise of Powers Act (Ca{ifornia Government Code Sections 6500 et sec}., or the "Act") for the purpose of exercising the common power of its Participants to invest certain proceeds of debt issues and surplus funds. The Poal's investments are limited to itn~esttnents permitted by subdivisions (a} to (n), inclusive, of Section 53601 of the California Govermnent Code. 'fhe District reports its investments in CAMP at the fair value amounts. provided by CAMP, which is the same as the value of the pool share. At 3une 30, 2008, the fair valtte approximated is the District's cost. At 3une 30, 2008, these investments have an average maturity of 49 days, Money market funds arc available for withdrawal on demand and at June 30, 2008, matured in an average of 4-19 days. i~ 1 ~i 18 i~ DUBLIN SAN RAMON SERVICES DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NQTIs #2 - CASII ~INU INI~ESTMLNT.S (Cottlit~tred) F. Credit Risk Credit risk is the risk tl~at an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of June 30, 2008 for each investment type as provided by Standard and Poor's. Investment Type U.S Agency Securities California Asset Management Program Not -•atecl: California Local Agency Investment Fund "Total Unrestricted Investments WestLB Guarantee Investment Contract Money Market funds A'ot rntecl: Lacrow Deposits Total Restricted Investments Total investments G. Concentration of Credit Risk Included in the table at E. above are the following significant investments in 1 than U. S, Treasury securities, mutual ftmds, attd eternal investment pools: Investment Issuer Type Federal Nome Loan Mortgage Corporation U.S agency securities Federal Home Loan Bank U.S agency securities AAA t1- Total $28,2b2,250 $28,262,250 16, 528,143 16,528,143 38,684,271 83,474,b64 $ I , ] 70,573 I ,170,573 2,015,32 l 2,015,321 19 199,521 3,385,415 $86,860,079 he seau•ities of issuers other Repotted Atl7outit $15,408,200 13,254,050 NOTE #3 --- RLS1'IZICTED A SSETS AND RIsS7RICTED NET ASSET S A. Restricted Assets u The Board is restricted by resolution in allocating connection fee revenues to tl}e expansion of the Dish•ict facilities and to certain related costs and may exercise discretion only in selecting among competing capital projects and activities. By resolution, the T3oard allocated ninety-five percent of connection fees fir capita! projects and five percent for indirect adminish•adve overhead costs. The administrative overhead percentages may be adjusted at the discretion of the Board. ]3alances afrestricted assets described above as ofJune 30, 2008 and 2007 are as i'ollows: Legalh~ restricted funds 2008 1997 Refunding Revenuel3onds $275,410 2000 Sewer COPs 1,602,844 WasteReuse Installment Purcl3ase Contracts 1,347,640 Contractor Retentions 199,521 `total legally restricted flmds $3,385,415 B. IZestj•icted Net Assets 2007 $374,519 3,941,141 1,389,234 555,056 $b,259,950 The District I~as restricted its net assets for capital expansion, asset replacement and other ptn-poses in the amounts set forth below; C~~tal expansion Local sever expansion Regional sewer expansion Water expansion Debt Service 2000 Sewer COPs 1997 Bonds WasteReuse Bonds Assessment District Dougherty Valley Assessment District 2008 2007 $2,014,132 $2,176,980 30,64 ] ,457 31,669,244 5,380,637 12,279,451 38,036?26 46,125,675 1,602,844 3,941,141 269,370 359,524 1,251,269 I,347,189 3,123,483 5,647,854 854,612 854,725 854,612 854,725 `total restrictions on net assets $42,Ot4,321 $52,628,254 20 ~i ~i ~i ~i ~i AUBLIN SAN RAMON SERVICES DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 200$ ~1TOTE #~ -- C ~1PIT~IL ~ISSLT.S Changes in capital assets accounts are summarized belorv: Balance at June 30, 2007 Additions ]Zetirements Capital assets being depreciated: t-and and Improvements Buildings I:quipmcnt Sub-surface lines 'T'otal capital assets being depreciated: less accumulated depreciation tor: Improvements Buildings Equipment Sub-surface lines l-oral accumulated depreciation NcE capital a+sels being dcpmciatcd Capital assets not being depreciated: Construction in progress Tutal capital a5s'Ms, net Balance at Transfers June 30, 2008 $6,351,169 $1,449,104 $7,800,273 1 12,66l,09~I 5,378,327 1 18,039,42! 54,755,809 $157,159 ($485,390) 4,934,753 59,762,331 92,476,972 3,471,772 3,405,116 99,353,860 266,245,0.14 4,028,931 (485,390) ! 5,167,300 284,915,885 (1,827,439} {258,713) (15,441,594} (2,326,687} { 19,270,676) (2,225,612} 474,958 {20,840,106) (2,051,174) {57,374,815) (6,862,186} 474,958 208,865,229 (2,833,255} (10,432} (2,086, 152) (17,768,281) (21,021,33 U) (22,891,280} (63,767,043) 15,167,300 221,188,842 30.139.833 9,210,068 (15,167,300) 24,182,601 5239,0(15.062 56,376,813 (510,432) $245,371.443 T17e District had outstanding construction commitments on capital projects totaling $16,946,726 at Junc 30, 2008. N07L ii5 -1~L*'I~I'IZRF,1~ COr\riVl'CTIOiV FI;F,.S IZF.CTI i~f113I,I' In fiscal year ended June 30, ] 997, the District implemented a deferred payment program for regional sewer connection fees as a means to attract new business to the area. 'T'he program was modified its subsequent years and is now designed for commercial and affordable housing regions! sewer connection fees behveen $25,000 and $100,000. Customers make a riventy percent down payment and enter into an agJ-eetneni ~vitl-J the District to pay the balance over a maxinnmt often years. The connection fee revenue is recagnized as it is received. The portions ottstanding are recorded as defeJ•red connection fees receivable, which amounted to $4,51 I,6I9 at .Tune 30, 2008. 21 DUBLIN SAN RAMON SERVICES DISTRICT NOTES TO I+INANCIAL STATEMENTS JUNE 30, 20Q8 N07 L tl G - INVESTiYILNT IN JOItVT PO I3~ERS A UTIIORITIES A. LAV\VMA The District is one of three participants in the Livermore Antadot• Valley Water Management Agency (LAVWMA), a joint powers authority formed in 1974, which constructed and operates an export pulmping facility through which ail wastewater in the area is discharged, .The other two participants are the Cities of lavermore anti 1'leasal,ton, each also having cone-third representation in LAVWMA's Board of Directors, composed of two representatives from each participating agency. The I,AVWMA's Board of Directors approves I,AVWMA's annual budget, ~a~hich is prepared by I.AVWMA's general manager. The Agency charges its members for project costs in proportion to their rights to the Agency's capacity. The DisU•ict contracts with the City of Pleasanton ("City"} to provide wastewater treatment and disposal. The District establishes user charges for these wastewater services. The City then establishes those same charges in its service area and remits the charges they collect to the ))ISt!'ICt on a monthly basis. A portion of the user charge is for the services pl°ovided by L.AVWMA. LAVWMA bills the District for both the District's and Pleasanton's slzare of these costs (which includes both operations and debt service}. 7•he District's share of LAVWMA is $14,071,558 at .lone 30, 2008. Financial statements for the Authority may be obtained from LAVWMA, 623 West Myrick Court, Clayton, California 94517. B. Df:RVI~A "I'he District is also a participant {along with bast Bay Municipal [Jtility District} in the DSRSD/EBMUD Recycled Water Authority {DERWA), a joint powers authority formed in 1995 to plan, design, consh•uct, own and operate various facilities which together will maximize the volllrme of recycled water deliveries while recovering its costs. Once those facilities al'e constructed and continue for an approximate 10-20 year period, the members will extend conveyance l~tcilities from the DER\\~A built facilities to their customers. Each member provides t~~ro representatives to llE1t~VA's Board of Directors which approves the annual budget prepared by DT;RWA's treasurer. 1`he Authority began its operations on June 28, 1995. 1)I;RWA has constructed. a water recycling system, 1nCllldltlg tl'Cat]1lCllt, conveyance, pumping and storage facilities which became operational on February 1, 2006. Operation and maintenance expenses are allocated , based on each member's actual usage. Cal}ita! costs, including debt service, will be allocated based on each member's pt•opartiona] value of capital assets. The Dish•ict's share of DER\[l!A is $2,215,798 at June 30, 2008. Financial statements may be obtained from , DERWA, P.O. Box 24055 Oakland, California 94623. ArOTE #7 - INTERFU~VD TRfdA~SI~ERS 1n the year ended Jtu~e 30, 2008, the District made total transfers of $1$7,74b from the Water Fund to the Sewer Fund to move net revenues That were allocated fromm shared funds and were used to account for debt service, administrative expenses, and other post employment benefit activiq~. I I' zz ~ t t t DUBLIN SAN RAMON SERVICES DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NOTE #8 -LONG-TERM DEBT Original Issue Balance Amount Junc 30, 2007 Retirements 1997 Revenue Refunding Bands 4.40%-5.01%, dtte 12/01/2014 $5,025,000 2000 Se.rics COPs variable rate, due 08/01/2035 55,000,000 WateReuse I'rogrartt variable rate, clue OS/U I /2028 16,415,000 1'ata] Long-"fern Debt A. Refunding Revenue }3onds $3,640,000 $2,165,000 35,500,000 11,885,000 13,860,000 475,000 Amount Balance due within June 30, 2008 one year $1,475,000 $195,000 23,615,000 21,020,000 13,385,000 490,400 $53,000,000 $14,525,000 $38,475,000 $21,705,000 On December 11, 1997, the District issued $5,025,000 of ]997 Refunding Revenue Bonds. `these bonds are payable from available Net Revenues of the water and waste water enterprises. Proceeds of the issuance were used to refund and retire the 1990 Certificates of Participation issued by the llSRSD Financing Corporation, to provide a reserve fund and to pay costs of issuance. tnterest rates range from 4% to 5%. These bonds mature through f.)ecember 1, 2014 with principal amounts clue December 1, and interest payments due on December 1 and June 1 of each year. A principal payment of $2.2 million was made in fiscal year etzding 2008. The District is required to maintain a Rescrvc Furtd in an amount equal to the maximum annual debt service. `I'hc Reserve Func1 was initially funded from the proceeds of the Refunding Revenue Bonds in an amoturt equal to the Reserve Requirement. If on any tnterest Payment Date tltere are insufficient monies in the Bond Fund to pay principal and interest then due, the `T'rustee is required to transfer sa much of the Reserve Fund as is necessary to make such payment. Any mantes an deposit in excess of the Reserve Requirement will be transferred to the Bond t~und. The pledge of fuhtre V-'ater and Wastewater Fund Revenues ends ttpat repayment of the $1.7 million in remaining debt service on the bonds which is scheduled to occurr in 2014. Far fiscal year 2008, Water and ~~~astewater Fund Revenues including operating revenues artd non-operating interest earnings amounted to $SO.b million and operating costs include operating expenses, bttt not interest, depreciation or amortizations and amounted to $41.5 million. Net Revenues available for debt service amounted to $9.1 million which represented coverage of 4 over the $2.3 million in debt service. 23 DUBLIN SAN RAMON SERVICES DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NOTE #~i --LONG-TENM DEBT' (cotttitttted) 13. Certificates of Participation 2000 Series On August 2, 2000, $55,000,000 principal amount of 2000 Variable Rate Demand Cel•titicates of Pal-tieipation (2000 GOPs) were issued through the DSRSD Financing Corporation to Finance the expansion of and improvements to the DSRSD Wastewater 'I'reatrnent Plant. The Certificates arc payable from Available Net Revenues of the DisU•ict's Server enter}~rise, exclusive of regional connection fees. "I'he District has a contractual agreement rr~itlt the City of 1'Icasanton that states that surplus fiords in the Regional Server lxpansion Funds will be used to pay debt principal. A principal pa}mteni of $ 11.9 million ryas made in fiscal year ending 2008. The Certificates hear interest at the Bank's Weekly Rate, and is payable on the first of each month, commencing September 1, 2000. The interest rate as of June 30, 2008 was 7%. "1'Itese Certifrcates mature through 2035 with principa! amounts due commencing in 2032. C. WateReuse Variable Rate Financing i'rogram "l'he District entered into an lnstalhnent Plncltase Contract as of November 1, 2000 in the amount of $9,050,000 to finance the acquisition, installment and construction of rivo reservoir projects, a pump station, a water Fine and related improvements. Proceeds were also utilized to establish a Reserve fund and to pay Costs of Issuance. The Purchase Contract bears interest rate at the E3ank of New York Western Trust Company's Weekly Rate, and is payable monthly. The interest rate as of June 30, 2008 ryas 1.32%. `I'bis issuance matul•es tln•ough 2028 with principa] amounts due May l . "I'he Uistrict entered into a second Installment Purchase Contract as on May 1, 2001 in the amount of $7,3b5,000 to finance the acquisition, installation and construction of a water tank, a pump station, a mater line, a recycled water main and related improvements. Proceeds were also utilized to establish a Reserve Fund and to pay costs of issuance. 'I'llc Purchase Cattract bears interest at the (3ank of New York Western Trust Company's Weekly Rate, and is payable monthly. The interest rate as of June 30, 2008 was 1.32%. 'T'his issuance matures through 2028 with principal amounts due May 1. E3otlt issuances are payable from a pledge of fees, cltarges and other amounts received from the available Net Revenue of the water enterprise. "1-he pledge of future Water Fund Revenues ends upon repayment of the $15.4 million in remaining debt service an the bonds which is scheduled to occur in 2028. For fiscal year 2008, Water Flntd Revenues including operating revenues and non-operating interest earnings amounted to $18.4 million and operating costs include operating expenses, but not interest, depreciation or amortizations and amounted to $16.9 Iniliion. Net Revenues available for debt service amounted to $1.5 million rvhiclt represented coverage of 1.5 over the $1 million in debt sen+iee. 'I'lte District is required to maintain a Reserve Fund for both of these contracts in an amount equal to the rnaximtun amtual debt service. The Reserve Fund was initially funded fron the proceeds of the lnstalhnent I'urcltase Contl•acts in an alnotntt equal to the Reservation Fund to pay principal and interest then due, the Trustee is required to transfer so much of the Reserve Fund as is necessary to make such payment. Any monies on deposit in excess of the Reserve Requirement roil) be transferred to the Reservation Fulzd. 24 t C DUBLIN SAN RAMON SERVICES DISTRICT NOTES TO FYNANCIAL STATEMENTS JUNE 30, 2008 NOTr #8 -LONG-TTRh~DrBT {corrtirrrred) D. Variable Rate Debt The District has two debt issues with variable interest rates. The debt is subject to purchase on the demand o#• the holder at a price equal to principal plus accrued interest and delivery to the District's remarketing agent. The retnarketuig agent is authorized to use its hest efforts to sell the repurchased bonds ai a price equal to 100 percent of the principal amount by adjusting the interest rate, Under Stand-By Purchase Agreements issued by banks for each variable rate debt issue, the trustee or the remarketing agent is entitled to draw an amount suf#icient to pay the purchase price of debt delivered to it. 'fhe District is required to pay to the Banks an initial take out agreement fee and an annual commitment fee. I~or the Certificates of Participation 2000 Series, the District entered into an agreement with JP Morgan Chase Bank which expires on December 11, 2008. Under the agreement, the available principal commitment is the lesser of $55,000,000 or the outstanding balance of the COPs. The interest rate on the principle conuniUnettt is the Bank's [J.S. prime commercial lending rate plus l%. 7•he District paid an annual fee of $41,788 to the bank during fiscal 2007-08. Tor the WateReuse Variable Rate Financing Participation, the District entered into an agreement with DEPFA (lt•ish Bank), which expires June 24, 2015. The District paid an annual fee of $21,307 to dte bank during fiscal 2007-08. District management completed a rigorous ratings process which resulted in it receiving a Standard and Poors rating of AA- and a Moody's rating of na3 on the 2000 COPS. 1/. Repayment Schedule Shown below are maturities for the District's debt issues, including principal and interest on the 2000 COPS amounting to $23,615,000 and $1,180,750, respectively, reported in fisca12008-09. i?nter-ln•ise activities I=or ~'hc Year tinding June 30 Principal interest Total 2UU9 $21,705,000 $1,425,423 $23,130,423 2010 710,000 414,553 t ,120,553 2011 735,000 393,909 1,}28,909 2012 760,000 376,260 1,136,260 2013 795,000 357,513 1,152,513 2014-2018 3,435,000 1,559,436 4,994,436 2019-2023 3,570,000 1,327,812 4,897,812 2024-2028 4, E 70,000 1,077,012 5,247,012 2029-2033 908,250 908,250 2034-2038 2,595,000 493,050 3,088,050 Total payments due $38,475,000 $8,329,218 $46,804,218 25 DUBLIN SAN RAMON SERVICES DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NOTE #8 -LONG-TEIt~1LDE13T (co~zti~tzted) Since the District's Stattd-By Purchase Agreement .underlying the 2000 COPS expires prior to June 30, 2009, the balance outstanding on the 2000 COPs has been presented in the accompanying financial statements as "Amount due within one year" and debt service on the 2000 COPS has been reported in the above table in fiscal 2008-09. District management has continued its efforts to remarket the debt. In addition management has indicated that it anticipates tendering the 2000 COPS to tlae Stand-13y Purchase Agreement provider which when completed would converk the 2000 COPS into Bank Certificates. Converted [3ank Certificates bear variable interest at prune plus 2% (6.5% a! June 30, 2008) and are due in semiatmual installments over five years commencing January 3, 2009. A matin'ity table for Converted Bank Certificates is presented below and would replace debt service due on the 2000 COPS, when the conversion takes place. Por The Years }:nded June 30: Principal Interest Total 2009 $2,361,500 $85,276 $2,446,776 2010 4,723,000 k,304,729 6,027,729 2011 4,723,000 997,734 5,720,734 2012 4,723,000 G90,739 5,413,739 2U13 1,723,000 383,744 5,106,744 2014 2,361,500 76,749 2,438,249 $23,615,000 $3,538,970 $27,153,970 Terms above consist with Stand-By Purchase Agreement covenants Interest rate per schedule from John Archer. E-le revived from Financal Advisor. 1-). Subsequent Event: Credit 1_acility Uraws Subsequent to June 30, 2008, financial market dU~a'ntlzl'nS and a significant tighteni~tg of credit limited the ' District's ability to remarket its variable rate debt. "I'he District's remarketing agent was unable to remarket all of the District's outstanding variable rate debt and as a result the District drew down al its Stand-By Purcl}ase Agreements. As of October 31, 2008, the District had drawn $2 ] ,020,000 and $12,433,878 of the 2000 COPs and WateReuse Variable Rate Financing Participation, respectively. NO"TE #9 -- DEFERRED REi'EeIrUE AAtD OTHER LIA13IL1I'IES 9 Deferred revenue and other liabilities for the year ended Jtme 30, 2008 totaled $11,811,723. As of June 30, 2008, the ~~tater Fund retarded $6,817,454 fionz developers foi° fithtrc connection fee credits. , These amounts will be zecognized as revenue when the connections are made. As of June 30, 2008, the Sewer Fund recorded $482,650 from developers for futt.u•e connection fee credits. These amounts will be recognized as revenue ~vhcn the connections are made. Sewer Fund Defe~•red revemze for the Deferred Comtection Fee Program was also recorded ut the amount of $4,511,619 {see Note 5}. The current portion oftlzis balance at June 30, 2008 is $680,130. 26 DUBLIN SAN RAMON SERVICES DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NOTF. #10 - PENSION PLAIN A. Plan Descr~tioru The DisU•ict's defined benefit pension plan, (Miscellaneous Plan), provides retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members and beneficiaries. 'The Miscellaneous flan is part of'the Public Agency portion of the Califon~ia Public Employees Retirement System (CaIPERS), a cost sharing multiple-employer plan administered by CaIPERS, which acts as a common investment and administrative agent for paificipating public employers within the State of California. A menu- of benefit provisions as well as other 3•equrirements is established by State statutes within the Public Employees' Retirement I~aw. The District selects optional benefit provisions from the benefit menu by contract witl~ Ca1PERS and adopts those benefits through local ordinance or resolution. Ca1PERS issues a separate comprehensive annual financial report. Copies of the Call'ERS's annual financial report may be obtained from the Ca1PERS Executive Office, 40U P Street, Sacramento, California 95814. B. Funding Policy ' Active plan members in the Miscellaneous Plan are required to contribute 10% of their annual covered salary. "1'he District is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the Ca1PERS Board ' of Administration. The contribution requirements of the plan members are established by State statute and the employer contribution rate is established and may be amended by Ca1PERS. ' On November Ib, 2004, the Board of Directors approved a resolution authorizing an amendment to the contract between PERS and the Uublin San Ramon Services District. P3•ior to the amendment, the Retirement Plan formula was 2.0% at 55. The iuew fin•mula oi'2.7% at 55 formula provides local miscellaneous members 2.7% of pay at age 55 for each year of service credited with the employer. If retirement is earlier than 55, the percentage of final compensation decreases for each quarter of age to 2% at age 50. Former DSRSD employees' service a•edit will not be affected by ibis change and the change became effective in November 2004, ' 'l'he District has agreed to a cost sharing with employees to implerent the new retirement formula. Ina•eased cost on an annual basis to implement the program is approximately 7% and is spread over the next 20 years, which is the period over which PERS allows an agency to satisfy the increased liability. The cost sharing was negotiated with all employee bargaining groups and continues the employer-employee parntership of jointly finding retirement bene(ts. C. Annual Pension Cost For fiscal year 2007-2008, the District's annual pension cost was $I,261,I97 and was equal to the. District's required and actual contributions. The required contribution for fiscal year 2007-200$ was detetmined as part of the June 30 200b, aehiarial valuation using the entEy age normal actuarial cost method with the contributions determined as a percent of pay. The actuarial assumptions included (a} 7.75% investment rate of return (net of administrative expenses); (b) projected salary increases that vary by duration of service ranging from 3.25% to 14.45% for miscellaneous members; and (c) 3.25% cost-of=living adjustment. Both (a) and (b) include an inflation component of 3.0%. The achrarial value of Miscellaneous Plan's assets vas determined using a technique that smoothes the affect of short-term volatility i~u the market value of investments over a hvo to five year period depending on the size of investment gains and/or losses. Miscellaneous Plan's unfunded actuarial accrued liability (or excess assets) is being amortized as a level percentage of projected payroll on a closed basis. ' 27 DUBLIN SAN RAMON SERVICES DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NOTT #10 - PEl\rSION I'.1;.4N (cor~tifiuccl) D. Funded Status of Plan As required by State lase, effective July 1, 2005, the District's Miscellaneous Plan was terminated, and the employees in this plan were required by GALI'ERS to join new State-wide pools, One of the conditions of entry to these pools was that the District true-up any unfunded liabilities in the former Plans, either by paying cash or by increasing its fuhu•c contribution rates through. a Side Fund offered by CALPERS. The District satisfied its Miscellaneous Plan's unfunded liability ofi $5,392,694 by agreeing to conh•ibute that amount to the Side Fund through an addition to its normal contribution rates over the nest 13 years. Annual Percentage of Net fiscal Year Pension Cost APC Pension Ending (APC) Contributed Obligation 6/30/2008 $1,261,197 100% $ - 6/30/2007 l , 175,296 100% - 6/30/2006 I ,049,705 100% - Audited annual financial statements are available frrnn CALPERS at P.O. 130 942709, Sacramento, CA 94229- 2709. E. "Three Year Trend Information for Miscellaneous Plan Cost Sharing_Pool CALPERS' latest available actuarial value {svl~ich differs from i~iarket value) and funding progress for all members oti the cost sharing pool are set forth belosa~ at their actuarial valuation date of June 30, 2006• Actuarial EnUy Age Valuation Accrued Value of Date Liability Asset 2004 $681,517,006 $580,960,891 2005 872,346,612 729,556,809 2006 1,280,157,040 1,069,546,974 Unfunded Annual Unfunded (Overfunded) Fliilded Covered (Overfunded) Liability Ratio Payroll as % of Payroll $100,556,115 85.2% $160,107,449 62.805% 142,789,803 83.6% 203,995,039 69.997% 210,610,066 $3.5% 304,898,179 69.076°/a ND'I'E #I1- POST Et~~PLOIiLfEN7'IJEfiLTHC~IRE BE~I~EPITS During fiscal year 2008, the District implemented the provisions of Governmental Accounting Standards Board Statement No. 45, Accotntfitt~ rnrd Fi-rrnrcinl IZet~orlin~ h}~ Emt~lot~ers_ af•_Pvstej~tvlovntent Befte~ts Other I%art Pensions. This Statement establishes uniform financial reporting standards for employers providing posteinployi~ient benefits other tlsati pensions (OPEB). The provisions of this statement are applied prospectively and do not affect prior years' financial statements. Required disclosures are presented below. 28 u 1 i DUBLIN SAN RAMON SERVICES DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NOTE #11- POST EMYLOYAgEN7'l1EALTlI CARE 13ENls'I%ITS (contitrrred) By Board resolution and through. agreements with its labor units, the District provides certain health care benefits for retired employees (spouse and dependents are not included} under third-party itsurance plans. The District pays health insurance premiums for retirees up to the following maximums: Employees avith less Employees with more than 5 yrs of service than 5 yrs of service ~` Retiree $478 $471 Couple 957 886 gamily 1,244 1,129 '~ District contributes more than 50% of the cap for employees with at least l0 years of service As of Jtme 30, 2008, approximately 55 pal~icipants were eligible to receive benefits. Funding Policy and Actuarial Assumptions The annual required contribution (ARC} was determined as part of a May 2008 actuarial valuation using the entry age normal actuarial cost method. "Phis is a projected benefit cost method, which takes into account those benefits that ahe etpected to be earned in the firtw•e as well as those already accrued. "fhe actuarial assumptions included (a) 7.75% investment rate of retw•n, (b} 3.25% projected annual salary increase, and (c) 5% ltealth lIlflatloll increases. 7'he actuarial methods and assurnptrons used include techniques that smootlt the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Actuarial calculations reflect along-term perspective and actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to revision at least biannually as results are compared to past e:cpectations and new estimates are made about the future. The District's ~PEB unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll using a 30 year amortization period. In accordance with the District's budget, the annual required contribution (ARC) is to be funded through out the year as a percentage of payroll. Concurrent with implementing Statement No. 45, the District Board passed a resolution to participate in the California Employers Retirees Benefit Trust (CERBT), an irrevocable trust established to fiord OPEB. CEKB'1` is administered by CaIPERS, and is managed by an appointed board not under the control of District Board. This Trust is not considered a component unit 6y the District and has been excluded from these financial statements. Separately issued financial statements for CERBT may be obtained from CALPERS at P.O. Boy 942709, Sacramento, CA 94229-2709. 29 NOIL' #11-POSI'EMI'LOYMENTHl.~1LTHC~IRI; BTNEFITS (ca~ttimred) Funding Progress oral Funded Status Generally accepted accounting principles permits contributions to be treated as OPl/B assets and deducted from tl}e Actuarial Accrued liability when such contributions are placed in an irrevocable trust or egtiivalei~t arrangement, During the fiscal year ended Jane 30, 2008, the District contributed the ARC amOLII1tIElg t0 $1,673,504 to the flan which represented 16% of the $10.5 million of covered payroll. The District also contributed additional funds to CERE3T representing funds accumulated in prior years in the District's Internal Service Fund. As a result, the District has recorded the Net OI'EI3 Asset, representing the difference beriveen the ARC, the amortization of the Net OPCB Asset and actual contributions, as presented below: Annual required contribiltion (ARC) and Annual OPI:l3 cost $1,673,504 Contributions made; District portions of current year premiums paid 455,671 Additonal contributions to CGR[3T 9,154,408 Total contributions 9,610,079 Contributions in excess of the ARC 7,93b,575 Nct OPLB Asset at June 30, 2007 Net OPEl3 Asset ai Jttnc 3U, 2008 $7,936,575 "1'he actuarial accrued liability (AAL) representing the present value of future benefits, included in the actuarial study dated May, 2008, amounted to $11.17 million and was unfunded since no assets had been transferred into CERBT as of that date. I [owever, as of June 30, 2008, the District transferred additional contributions to CEIZB"I', which along with investment income totaled $9.6 million and reduced the unfinded actuarial accl•ued liability. ArO7E #12 -RISK 1bLtNAGEA~IENT , The District is exposed to various risks of loss related to torts: theft, damage, and destruction of assets; errors and omissions; injuries to employees and natural disaster. The District joined togetl~er with other entities to form the California Sanitation Risk Management District (CSRMA), a public entity risk pool currently operating as a common risk management and insuurance program for 54 member entities. The purpose of CSRIVIA is to spread the adverse effects of losses among the member entities and to purchase excess instn•ance as a group, , thereby reducing its cost. The District pays annual premiums to CSRIVfA for its general, liability, property damage and workers compensation insurance. CSRMA is governed by a Board composed of one representative from each member agency. The Board t controls tlye operations of CSRMA including selection of management and approval of operating badgets, ~ independent of any influence by member entities. 1 ~o II DUBLIN SAN RAMON SERVICES DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 ArOTF, #12 -RISK A~AN.4GGMENT (Contimrect7 In addition to the primary insurance types provided for through CSRMA listed above, the District also maintains commercial fidelit,~ bonds, a public employee dishonesty and public official bonds, to protect against employee theft or defalcation. Settled claims for CSRMA or commercial fidelity bcntds have not exceeded coverage in any of the past three fiscal years. The following is a summary of the insurance policies carried by the District as of hole 30, 2008; Company Name ~ `I•ype of Covet•age Limits t~eductibles Pooled Liability Bodily injury and propetrty damage- CSRMA Pooled Liability auto, e1701'S and Om1S510nS $15,750,000 $100,000 CSRMA-Garendon American tnstlrance Company Excess liability 5,000,000 none Pooled Insurance Program CSRMA-Various Special farm Property 135,072,2b8 25,000 Wol•kers' Compensation Plan CSRMA Pooled Workers' Compensation 750,000 none CSRMA-National Union Pirc Insurance of Pittsburgh, PA Excess workers' compensation liability Statutory 750,000 Prior to July I, 1994, tl~e District was self=insured fol• workers' compensation and will continue to be responsible for any claims existing as of tl>at date. Claims and judgments, including provision for claims incurred but not reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is reasonably determinable. As discussed above, tl~e District has coverage for such claims, but it had retained the risk for tl~e deductible or uninsured portion of these claims. 31 llUBLIN SAN RAMON SERVICES DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NUTS #12 -RISK A9ANAGF,MEN""!• (Continued) The District's liability for uninsured claims is limited to workers' compensation and general liability claims, as discussed above, and r~vas estimated by a third party claims administrator based on prior years claims experience as follows: Workers' Compensation Balance at July 1 Net change in liability for claims and claims incurred but not reported Claims paid Balance at June 30 Genera] Liabilih~ Balance at July 1 Net change in liability for claims and claims incurred but not reported Claims paid Balance at June 30 2008 2008 $132,155 7),799 {138,41 I} $73,543 2007 X37,222 {11,806) {25,416) 2007 X68,847 120,655 (57,347) $1.32,!55 The District has not exceeded its insurance coverage limits in any of the last three years. Tl~e District liability is included in accrued expenses on the financial statements, RiUTT•, #13 - COMMI`I'A~ErVIS~ND CONTINGBATT I.,IABIT,ITIL'S "fhe District put•d~ases water from the Alameda County Flood Control and Water Consen~ation Uistrict (Zone 7) under athirty-year contract, which expires August 23, ?024. lhlder the terms of the contract, subject to various exceptions, the District is required to purchase all of its water from 7..one 7. •E•he Uistrict is a defendant in a number of lawsuits, which have arisen in the normal course of business. In the opinion of the C?istrict, these actions when finally adjudicated will not have a material adverse effect on the financial position of the Uistrict. The District operates a Dedicated Land Disposal site upon ~a~hich the District processes biosolids produced by the District's ~vastc~vater treatment plant. On August 8, 2007, the San Francisco Bay Regional Water Quality Control Board issued 4~~aste Discharge Requirements, which require tl~e Uistrict to perform corrective actions for known and reasonably foreseeable releases from the Dedicated Land Disposal site. At this time, the Regional I3oat•d and the District expect that the most likely corrective action, if any is needed, would be related to the potential to contaminate the groundwater supply and resulting closure and post-closure activities. The Uistrict prepared an analysis in December 2007 to determine the estimated costs of these corrective actions which comprise drilling rivo extraction wells and constructing a conveyance pipeline for discharge of potentially impacted ground water into the District's collection system. The Study also included estimated costs of operation, maintenance and mot~itot•ing of the above facilities for a ten year period after closure of the site which is expected to occar within tl~it•ty to fifty years. Actual closure and post-closure care costs may be higher, lower, or even not required due to inflation variances, changes in technology, or changes in State or Federal regulations. The present value of these closure and post clostu•e costs, discotulted at 5 percent amotmted to $620,000 as of June. 30, 2008. 'C'he District is requited by State and federal laws and regulations to make amutal funding contribrrtions to finance closcn•c at~d post-closure care. The District is in compliance •with these requirements for the year ended Jtme 30, 2008 with the establishment of the fully-fiu~ded liability for this purpose. I C 1 ii 32 ~~ i~ SUPPI.Is'MENTARYLNFORMATION ASSF,TS C117r231t 35Sf1S: Pocked cash Pooled inrestmertts Rfsttictcd im•estments Accounts receivable Intfrest receivable Fnglloycf notes receivable Dffftred connection fens receivable Prepaid cxpznses 'fntal ourrent assets Non-current assets: Capiud assets: Property, Plant and eyuipmeal Less accumulated depreciation NCt prnpzrl)•, plan) anti eyuiputrnl Constntction in prakress Tnlal capital a55Cts DIIIeT aSSCIS= Datctrd charkfs lncesUneul in joint potccrs authorities Net OPf - asst Dtfclrad cnnnfctimts receivable - lon{c tcmt 4btal olhzr assns 1btzd noncurrent assets "total assru 1.1r1131LCCItS Current liabilities: Accounts payable ('mttraulorbunds and deposits Acerurd expzltszs ;lccrucd cnlnpensaled absences hverfst payable Cnnt-m portion of lnny.-trnn ttebl Deferred revenue lbtnl vurrent liabilities Luny; tens liabilities: I.unl;-trnv debt Irss current portion ULU rrtnzdiation payable Defzrrcd revenue Total lonRtenn liabilities Total Iiabililies Nor AssETs Invested in capital asseU. net oFrelated debt Restricted !'or: Expaztsion Dfbt sfnicz Unrestricted Total net assets (dzfich) DU-LIN SAN RA,UD1 SERVICES DISTRICT SE14'F.R OPERATIONS CO~tdINING S'TATE1iENT OF NET ASSETS IUNF. 3(t. 20DS Rrldonal DSRSD Local Allocation Allocation Server Financing ReKional Server 1947 OPEd Sorer Total Corporation Subtotal Total Allocation Bonds Fund Tots! $2,1'13,584 52,143,553 $453,950 $]15,385 563,026 52,775,9x8 x7,453,739 47,4 53,739 10,127,8a 6 1,x05,571 58,987, 156 $1,GD2,Raa ],602,844 $275AIp 1,878,254 3,977,735 I,GUO 3,979,335 215,4 i5 ]71,679 15,782 4,385,211 270,405 270,405 54,784 23,850 3•i9,039 3i,)S6 35,186 35,186 680,130 680,130 680,130 S,SSa 5,85x 5x,56D,779 l,G0a;l4a 56,165,223 10,854,995 292,921 275;110 1,566,229 69,096,778 123,779,992 123,779,992 43,766,525 3,450.9x2 170,997x162 27,626.575 27,026,575 1x,493,505 1,281,5x5 43,302,62.5__ , ' 96,753,417 96,753,417 2R,772,023 2,169,397 127,69x,837 R,6.18.71q S,Lx8Jla 1,736,736 1Od35,d50 168,x02.131 !05,402,131 30,558,754 2,]69,397 138,130,287 ' 650,915 680,915 - 142,276 793.191 1x,071,5SR 1x,473.558 14,071,558 6,92!,x87 6,921:187 3.831,x89 3.831;189 3.831x189 , 17,903.U~17 650915 18.5>3,962 142,276 6.921,x87 ?5,617,775 123.365.178 650`)15 123')56.0')3 3Q,558,759 2,311,673 6,921:187 163.748.01? 177,868})S7 2,288,359 IS0,121,3iG 41;IE3,75a 292,921 2,887.083 Q429,7(6 232,8x4,740 139 0x 2 22U 82a 2,067,168 7,363 2,67x,63[ x2.05x , 1 , , 669,8x6 664,R4G 36,731 706,177 73.5x3 73,543 73,5x3 237,936 237,9x6 53,229 188,782 47Q957 90,330 40,330 6,0x0 96,370 , 2LD2U.UDU 21,020.000 195,004 21.215,000 _~ GR0,130 680,1,14 x62,656 1,162.750 3.728,633 21.117.793 2x,R•1G;12G G14,GGx 292,92] 201,0x0 25 X58,051 2,595,000 2.598,OUD 1,26U,ODD 3,875,000 620.000 620,000 620,000 3,831,x89 3,831,x89 3,831,x89 x,gSf,x89 2,595,000 7,OaG,x89 1,280,000 8,326,x89 5,180,122 23,712,793 31,892,915 GIx,GW 292,921 1,x81,Ox0 _ 3x,281,540 6 IOB.xft2.131 (22,96i,UR5) 82,x38,Ox6 30,555,759 836,673 113,833,478 30.6-11.457 1,602,8.13 30,631,x57 1,602,Sxx 2.01x,132 269370 32,b55,589 1,872,214 J3,6x2,2x7 (96,193) 33,546,OSa 8,226,199 $8,429,716 50,201,969 5169,655,835 (521,x57,x3x) SIx8,228,x01 8x0,799,090 81,106,0x3 58,429,716 $198,563,250 34 u i~ J t DUDLIN Si4~7 R.41lON SL'RVICES DISTRICT SER'EA OPL•RATIONS CO\1RINING STATE.IIE\'TS OF RL•VEPEUL• 5 AND Ea"PENSES .4\D CFIATGES itd FUNDA'ET ASSETS FOR Tit E FISCAL ytiAR ENDED IUNE 30, lnn8 Local .Wocalion Allocation $ew'er Fnantin,e Rry3onal St+str 1997 ODES Sex~er 'total C'oroorm ion Subloial Total Allocation Ronds Fund Eliminations Total OPERATING REVENUES N'aslen•ate[sercice char>;es 814,406,435 514,40E;138 51,657,220 $16,093,65$ Other re+-tmle3 508,792 508,792 ~ 448,98) 51,088,109 2,015,853 Total optratin}!revenues 14,915,227 I•fr915,227 2,136,204 1,038,109 15,139,340 L)PERA-PING EXPI:NSk:S Personnel 9,788,087 4,785,087 1,253,912 3,325,758 5397,391 l 765,178 \fatenals 2,166,615 2, 166,615 56,797 123,626- 2,747,036 Coneracmal srniecs 7,778,642 593, U3 7,871,775 ]63,3 i9 881,091 TI,SU6 8,617,991 ~ Other 137,5([ 17'1,564 (7,715) 21,133 151,002 O+'erhead f. BarSea 1,721 A91 1,721,494 514,466 (2,235,960) Drprrciation ),125,695 3,128,Gy_5 971,379 63,336 -0,}60,412 Total oprralink t~prnses 19,7[5,697 93,133 198(18 ';D ;952,185 1,821,665 65,144 397,391 25,M4,621 i OPERATI\G INC'O\Ili (LOSS) 11,799,5'10). (93,133) ~_ 18'1) {515951) (733,559) 16F,14.1) (397,391) (G,905,D81} ~ \O\OPERAT]NG RE\rESNI;ES (EXPENSI:1 ' h,cestmenl income ],754,013 117,791 2871,307 4?9,352 )031 444,304 3,754,)91 Inlefi5t (eCpeM1Sej 11,157,020) 11,157,020) (259,627) (1,436,6-17) Il-ossl on incrslmenl in Ilbl (3,ti3 636) 13,533 1361 (?,5}? G?6) Gain un disv9sal of tisrd assets 14,001 41 IH)1 _ 3,DU0 17,CKr4 Total non-oocratin>; re+,enucs 1765,619) (1,039,2~G) (1,861,545) 43''35? (25Q,596) 444,301 (!,]78,7851 IRCOAtE(1-0851 UEFORE CORiR1EU"PIONS AND TRANSFERS (5,565,439} (1,132,359} (b,697,84R) (3S?,632) (733,559) (31,5,740} 46,913 (8,083,866} Non-cash contributions 1,003,088 ],003,085 Capilxt conlribuliuns -connection fors 7,136,315 T, 136,845 739,257 7,816,102 Transfers in 6,243,993 IO,bS8,650 I%982,643 1,835,651 733,559 1,188,102 158,365 (522,707,$77} 187,746 Tfa nsFers(anl (18,535,4(?) 118,835 J63) (1,474,611) ('_.197,504) 2?,707,3T7 Chan4rs in net assets (8,670,113) 9,556,291 586,178 1,219,756 869,762 -(1,992,226) .953,070 '(07.11. \ET ASSE"1-S {DL"FICI I-i, 131iGINNINGOFYI:AIt 178,355915 f3l,013.7a) 1.17,342221 39.579,334 236,681 10,4?1,942 197,880,130 TOTAL tiE-I ASST: I'S (UIi FICf1'}, E\D OP }'EAR $169,655,335 _ (521,457,434) 51~18,228,4U1 510,799,(N)0 Sl,1CG,043 38,429,716 $195,563;!50 35 DUBLIN SAN RA1+•10N SERV[CES DISTRICT REGIONAL 5E1irER OPERATIONS COMBINING S'1'A1'EMENT OF NET ASSETS JUNE 3Q, 200& ktegional Sc++•er Regional Se+\~er Regional Sc+vcr Regional Se+eer Enterprise RSF Replacement Expansion Total ,assns (lrrrznt assets' Pooled cash 5172,223 5132,796 3387,165 51;151,401 52,143,584 Pooledim'estments 4,$08,196 4,509,237 8,645,615 29,490,661 47,453,739 Restticted invesunznts Accounts rzczivablc 3,621,660 356,075 3.977,735 hnerestreczivable 33,306 11230 52,706 168,163 270,405 Empluy~ee notzs rzceivable 35,1 RG SS,1 SG Defined connection fees receivable 680,130 680,130 1'otaleunentassets 8,675,570 4,653,263 9,085,5!6 32,146,430 54,560,779 n'nn-currznt assets: Capital assets: Properly, plan) and equipment 123,779 992 123,779,992 Less acnnnnlated depreciation 27,026,575 27,026,575 \et properly, plant and equipment 96,753:117 96,753; 417 ('mtsbnction in progress 4,091,277 4,557,437 x,64 x,714 'T'otal capital assz[s 4G,753,4t7 .1,091.277 4,557,437 105,402,131 Other assets: htvestmrnt in joint potvzrs authorities I•},071.55$ 14,071,558 Det'zned connections « ceivable • long temt 3,831;189 3,$31,489 lOtAl Other 35526 1.1.071,558 3,831; 189 17,903A47 Tola]nou-cunenlassets 110,824,975 4,091,277 8,388,926 123,305,178 'I"olal assets 119,500,545 4,653.263 13,176,793 40.535,356 177.865,957 Cun~ent liabilities: :\ecouuts payable R>2')S4 493,8.37 720..347 2.067.168 Cauractor bonds and Deposits 479,718 92:!48 97,6$0 669.x96 Accnmd e~pensa 73.513 73.513 Accrncd crnnpensated absences 221,835 5 295 6.816 237.996 Defcncd «vcnuz 680.130 (,80,130 'l'ots! cunznt liabilities 1.632.080 591,580 1,504!77.3 3,72$,633 Long unn liabilities: D1.D roatediation psyabk 620,000 620,000 Defirrzd revenue 3,831,489 3,831,489 Total long term liabilities .620,000 3,831,489 3,831,489 Total3iabilities 2,252,080 591,580 5,336,462 7,560,122 \ET ASSETS Invested in respites! assets, net of related debt 9b,753,417 4,091,277 4,557,437 ]05,402,131 Restricted for. L•~pansien 30,641,457 30,641,457 Unrestricted 20,495,018 4,653,263 8,493,936 33,642,247 Totalnetasets 5117,248,465 5},653,263 512,585,213 535,198,894 $169,685,835 36 DUBLIN SAN RAMUN SERVICES DIS'1'RTC'P REGIONAL SERVER OPERATIONS CUMT3TNTNG STATEh~[ENTS OF REVENUES AND EXPENSES AND CHANGES IN FUND NET ASSETS FOR TI If F[SCAl.1'f:AR L-NDED JUNE 30, 2008 ' Ol'1:RA'I'[NG REVL:NUI:S 1Vastewater sen~ire charges Olherrevenues Total operating rcveuttes OPERA I1NG EX1'L•:NSES Pc+sonncl \4atcrials Contractual services Other Overhead Charges Depreciation Total operating c~penses OPERA-PING INCOME (LOSS) NONOPT:RA"PING REVENUES (Eal'ENSE} investment income {Loss} on invesUnent in J I'A Gain on disposal of capital assets Total non-operatiug revenues Regional Ser~•rr Regional Sco~cr Regional Se+ver Regional Sewer 1;nterprise RSF Replacement liapansion 'l'ocal $14;10E,435 $14,406,435 508,352 $374 $6b 508,792 14,91'1,787 374 GG 14,915,227 4,544,872 98,952 141,263 4,785,087 2,119,641 46,974 2,166,615 4,314,890 672,105 2,791,647 7,778,b42 127,897 4,57E 5,096 137,564 1,617,397 43,197 60,900 1,721,494 3,125,695 3.125,695 15,850,392 865,799 2,998,90E 19,715,097 (935,605) (865,125) (2,998,840) (4,799,87U) 3(13,336 $54,724 77fi,7~18 1,614,205 2,754,013 (3,533,(136} (3,533,636) 14,004 14,004 (3.211.296) 54,724 776,748 1,614,205 (765,619} INCOME (LOSS) t3GPORE CONTR113UTIONS nNDI-RnNtifl?RS (4,146,901) 54,724 (88.677) (1,384,635) (5,565,489} Capital contributions-connectinnfees 7,136,845 7,13b,845 Rcsiduat egnit~ transfer 7,11.14,963 (2,681,967) (4,9G2,99b) l'ransfcrs in 1,(181,788 4,598,539 ],937,397 96,269 8,293,993 Transfers out (6;198,539) (10,227,107) (1,809.81 G} (18,535162} ' Changes in net assets (1,318,(189) 4,653,263 {11,080,351) (924,333} (8,670,113) ro-rut- N>v-r nSSE rS. 13EG[NNING OP YC•nR 118,567,154 23,665,567 36, 123,227 178,355,948 ' -n.)Tnl. NI:-r nssr: rs, I::ND o~~ vtnR $ 117,248;165 $4,653,263 $12,585,2 13 $35, 198,894 $169,685,835 37 DU[3LIN SAN RAMON SERVICES DISTRICT LOCAL SE~i'ER OPERATIONS COMBINING STATEMENT OF NET ASSETS JUNE 30, 20Q8 Lot:al Sewer Local Sewer Local Sewer Local Sewer Enterprise RSF Replacement Expansion Total ASSETS Current assets: Pooled cash $67,907 $}4,215 $2b4,4G9 $107,359 $453,950 Pooled investments 577,799 1,251,61 I 5,902,253 2,396,183 ]0,127,846 Accounts receivable 218,260 155 218,415 latrresireceivablc 5.175 1,203 34,OSR 1~t,040 54.784 'Ibtal current assets 869.~14a 1,267,031 6,200,780 2,517,737 10,854,995 Non-current assets: Capital assets: Property, plant and equipment 43,766,528 43,766,528 Less accumulated depreciation 14 J94,S05 14,99a,505 \cl propert?~, plant and equipment 28,772,023 28,772,023 Construction in progress 1,132,494 654,242 1,786,736 l'otai capita! assets 28,772,023 1,132,494 654,242 30,558,759 Total non-current assets 23,772,023 1,132,494 654,242 30,SSR,759 "Total assets 29,641 ~1G7 1,267,034 7,333,274 3,171,979 a1,413.754 I.lAF311.1TIF.S Curren) liahililies: Accounts ir~t)'ablc 12,06! 28.084 1,909 42,054 Conlraetor bonds- and deposits 34,395 2,336 36,731 Accn~ed compensated absences 30,880 S,G39 16,710 53,229 Deferred revenue 482,650 482,GS0 Told current liabilities 42.941 65,1 IS 503,605 bl~l,fib~l Iotal liabilities 12.941 68,118 503,(105 614,664 NI:'I' ASSETS lm~ested in capital assets, net ofrelatecl debt 28,772,023 1,132,49a 654,242 30,SS8,759 Restricted for: Expansion 2,014,132 2,014,132 lJnresiricred 526,503 1,2b7,034 6,132,bb2 8,226,199 Total net assets $29,598,526 $1,267,03a $7,265,156 $2,b68,374 $4Q799,090 38 i~ i~ i~ OI'l;RA'rING RGVI~NUIiS \Vaste+vaterservice charges ' Other rcvcnucs ~btal operating revenues OPr:RATINC~ EXPENSES Personnel n~atcrials Contracusa! services Other Overhead Charges T}epreciation ' Total operating expenses OPIiRA']'[N(i INCUn4L' (LOSS} NONOPERATINti REVL'A~UI?S (EXI'LiNSI.i} Invcsuucntincome Clain on disposal of capital assets 'Total non-operating revenues DUBLiN SAN RAAdON SERVICES DIS'I'RIC'I' LOCAL 5E1VL`R OPERATIONS COi\~IBINING STATEMENTS OF REVENUES AND EXPENSES AND CHANGES JN FUND NET ASSETS FOI2 7'HE FISCAL YEAR ENDED J1JNE 30, 2flflS ' NCOA4L (LOSS) BEI'URE CONTR113UTtONS nNl)'rRANSI~IiRS Non-cash contributions Capital contributions -connection fees Residual equit)~ transfer Transfers in ' Transfers (out) Changes in net assets 1'O'fA[_ ~~E"f nSSEI"S, t3EG1N11NG Of Y6nR Tt)rnl. nr:T nsst rs, t:rtt) or vt.ntt i~ i~ II i~ II Local Scn•er Local Sever Local Se++~cr Local Sen~er Eutcrprisc RSF Replacement Expansion Total ~ $I,b87,zzo $1,6s7,zza 21,352 $427,632 448,984 ~ I 1.748,572 427,632 2,136,204 65~},530 $76,7]6 522,69b 1,253,942 44,835 10,579 1,383 56,797 99,431 54,582 9,30b 163,319 {6,539) (32) (1,144) (7,715) 320,789 43,551 ISfl,l26 514,466 971,379 971,379 2,0841125 185,396 b82,3b7 2,952,188 (375.853} {185,396) {254,735} {815,984} 46,484 55,887 236.281 140,700 129,352 3,000 3:000 49,481 5,887 236,281 140,700 432,352 (326,369} 5,887 54,885 {114,035) (383,fi32) 1,443,488 1,443,088. 386,631 352,626 739,257 CG9,726 (548,751} (124,975} 304:1(il 1,2b 1.147 .168,559 101,487 1,835,654 (1,411,147} {108,574) ~ (454,89}} (1,474,611) 2,19.759 1,267,fl34 (51,246} (235,791} 1,219,756 29,358.767 7,3161102 2,944,165 39,579.334 $29,598,526 $1,267,434 $7,265,15b $2,b68,374 $40,799,494 I 1 ~9 UUF3LiN SAN RATION SERVICES D[STR]CT 1irA"CER OPERATIONS CO4113JN1NG STATF:AIENT OF NL•T ASSETS JUNE 30, 26D8 Dougherty Allocation Allocation Water Valley WateReuse 1947 OPFB 'l'ocal Asmnt Uiss [3wtds Allocation Bonds Fund 'l'ocal ASSETS Current 3SSetS: Ponlcdcash $1,051,261 53b,347 534,378 567,332 S9,293 $1,148,611 Pooled im•estmrnts 23,467,813 813,557 206,138 24,487,508 Restricted invesnnents 199,521 1,307,640 1,507,161 Accounts rcccivuhlc 3?06,957 100,180 2,315 3,309,452 interest receivable 137,550 4,708 3,448 145,756 Prepaid c~pcnses 23,250 3,416 26,666 Total current assets 28,086,352 854,612 1,342,018 17Q928 221,244 30,675,154 Noncurrent assets: (:apital assets Property, plant and CgillpnlCR1 112,408,000 51,550,423 113,958,423 Less aeL`llnlLllfltl'd depreciation 19,888,651 575,767 20,464,418 Nct property, plant and equipment 92,519,'s49 974,656 93,494,005 Cunsiruction in progress 13,747,15! 13,747,15! 'Total capital assets 106,2!.,6,500 974,656 107,241,156 Utber assets: Dzl'erred charErs 199 674 199,67) IncesOnent iu jRint pot~ers authorities 3,315.798 ?,'' 15.798 Net OPl.il3 asset 1,015,088 1,015,088 l'otalotherasscts 2,215,798 199,674 1,015,088 3,430,560 Total non-n¢rent assets 108,483,298 199,674 974,656 I ,U 15,088 I 1 D,671,71 b 'Total assets 136,568,650 854,612 1,541,692 170,928 974,656 1,236,332 141,346,870 LIAI311.ITIF.S Current liabilities: Accaaus payable 3,561,033 60,768 3,621,791 Cuniracwr botxls and deposits RO1,15-) 801,154 Accrued compens:ued absences 137,795 110,160 237,955 C:urrem portion of Inng-terns debt ~19QWU 440,000 Total current liabilities 4;189,972 490,000 170,928 5,150,900 Long, teen liabilities: Iltntds payable - Icss cumnc portion 12,895,000 i2,895,D00 Arbitrage payable 56,371 56,371 Deferred revenue 6,817;15:1 6,817,454 total lung Tenn liabilities 6,817,454 13,951,371 19,768,825 'fatal liabilities 11,307,42b 13;1.11,371 170,928 24,919,725 NL•T ASSf:TS ]messed in capital assets, net of refaced debt lUG,ZG6,500 { 13,135,3261 974,656 94,45S,g30 Rcsirictcd 1'or: E.~pansion _5,350,637 5,380,637 Debt sen•ice 1,251,264 1,251,269 Assessment district 854,612 854,612 Unresiricicd 13,614,087 34,378 1,236,332 14,884,797 Total net assets {deficit) 5125,261,224 5854,612 (511,899,679) 5474,656 S[,236,332 5116,427,145 as ' OPE:R:17'1N() AI:Vt:NIIES N'astrn~atcr suvice charkcs ii'ater salts Olherrecenues ' 'I'ota! operatinlt rcrenues O1'ER:ITING E)CPENSES Personnel Materials Canrachm! sen•iees Other Or cnc~ad CharSCs Depreciation lblal opetntinp i~pensrs OI'ERA'ffNG 1NCO~fE(LOSS) NONOPERATING REVENUES (F,XPENSE) Eureuutent inconse Interest(espcnse! Clain on inwsuncnt in JPA Gain un disposal oi'ticcd assets Tota) non-optratink rcr cnues (expenses ) DUBI-[\ SAN R~~\1ON SERVICES DISTRICT \VATER OPERATIONS CO\[BiNING ST ATEMENTS OF REVENUES AND FYPENSF~ AND CHANGES [N FUA'D NET ASSETS FOR THE PEAR ENDED JUNE 34, 2046 OouFheRy Allocation Allocation 1Vater Valley WateReuse 1997 OPfiB 'total Asmnt Oist Bonds Allocatimr Bands Frmd Eliminations '1 otai $14,082,651 514,082,681 1.388,849 $35D,747 $634,945 2,604,511 15,671,330 380 7:37 634,945 (6,687,222 4,239.047 1,942,434 $58,280 b,239,761 8.260.005 72,140 R, 332, I4S SJ93.1(,-1 119943 $•13.534 339.084 5812 3,996,537 92.887 14,094 I Ob,9R I 1,304.753 (1,30.1.753) 2,673,318 28.456 2,701,77.1 21,763.174 •119,943 43,534 I,OG2,9y9 29,268 58,280 23,377,198 (6,091,64.1) (39,19b} (43,534) (428,054) (29,268} (58,280} (6,689 976} 1,574,819 39,083 34,316 1,038 GS,160 1,737.636 (427,460) (k92,16R) (619,628) 22D.y32 220,932 3.483 5,485 1,801136 39,081 (372,944) (188,110) GS,1G0 1,3`14,425 ' 1NCOd•IE (LOSS) BL•FORE CONTRIf3UT1ONS AND'I'R:1\SFERS (4,290;408) (113) (416;178) (428,054} (217,378) 6 880 (5,345,351) Non-cash cunlrihuliuns - 2,'168,684 Capital cantriUutirnrs • connection fees 2;116,385 Transfers in 1,049,823 ' Transfers (Dull (3,271,694 } Clrarptes in utt assets (1,627,010} 1'OTAl. Nf:T :1SSFTS (DEFICIT), 2,468,68.1 2,416,585 785,049 428,054 1,455,699 23,225 (53,311,830) 34,378 (322,280} 3,371,830 _ _(187,7~IG)_ ill3) 402949 868,321 (292,173} (6-18,07.81 BGGINN)NG OF \'FqA 126,885.234 834,725 (12,302,428) IDb 735 1.325,507 f0I":U- NIiT :\SSETS f DI_F]('!l )- ENDpFI'E,\R 5123?GI'_'4 SSS~i.G1? ISII-599,679) 5974.fi>G 51136,332 3 17,075,173 $116:127,145 ~) DtIB1.1N SAN Rt1A~lON SERVICES DISTRIC'T' WATER FLNDS COIYIBININC STATEMGN"1' OP NG~I' ASSE"I'S -TUNE 30, 2008 Water Water Water Water Enterprise RSF Replacement Cxpansi6n Total ASSETS Current assets: Pooled cash 5195,940 S39,278 5222,947 5593,696 51,051,26! Pooled im~estments 4,363,655 875,403 4,950,21 I 13,248,544 23,467,813 Restricted im•esunents 199,521 199,521 Accounts receivahle 3,266,510 447 3,206,957 laterestrccei+~ablc 23?56 3,315 27,408 78,571 -137,SSD Prepaid expenses 23,250 23,350 'total current assets 7,817,611 917,99fi 5,23(1,566 14,120,174 28,08b,352 t\bn-current assets: C.apilal iL55e15: Pruperh~, plan) and equipment i 12.4US,ODp 112,408,060 Less accumulated depreciation 19,8SS,bS I 19,888,651 ltet properly, plant and equipment 9?.519,349 92,519,349 Construction in progress 4.138,335 9 60R,R3b 13,747,151 'fotaicupitalassets 92,519,349 4,138,325 9,608,826 IC1G,3fi6,S00 Other assets: Investment in joint ltoleers authorities 2,075,40h 140,392 2,215,798 Total other assets 2,075,4D6 W0,392 2,215,798 Total non-current assets 94,594,755 4,138,325 9,749,318 108,482?98 "total assets 102,412,366 917,996 9,365,891 23,869,397 136,565,650 LIABII.II'IES Currcm liabilities Accounts payable 1,411,698 341,518 1,8D7,807 3,561,033 Contractor lxmds and deposits 553?63 29 X93 218,599 8U 1,154 Accrued compensated absences 78,1 I I 13,610 36,074 127,795 'Total current liabilities 2,043,071 384,421 2,063,48D 4,489,972 Long term liabilities: Deferred reeenue 6,817;184 6,817,454 Tota] long term liabilities 6,817,454 6,817,454 Total liabilities 3 043 071 384,421 8,879,934 l 1,307,42b NET ASSETS lncested in capital assets, net nfrelated debt 92,519,349 4,135,325 9,608,826 lOb,2b6,500 Restricted Cor Expansion 5,380,637 5,386,637 Unrestricted 7,849,946 917,996 4,546,145 13,614,087 TotaTnetassets S100,364,295 5917,99b 55,9R4,47D S14,989,~1fi3 S125,261,224 42 DUI31.1N Sr1N IZr1i\-lON SERVICES DISTRICT 1Nr\TER FUNDS COMBINING STATEMENTS OF [tEVENUE5 AND f:XPENSES AND CHANGES IN FUND NET ASSETS FOR'fHE PISCA#. YEAR ENDF;D 3UNIi 30, 2005 ' ~l'ater Water Water Water Enterprise ItSI' Replacement Expattsiott Total OPERATING REVENUES Water sales $ t 4,482,681 $ I #,082,681 Other revenues 366,168 $482,808 $38,914 $700,959 1,588,849 -Total operating revenues 14.448,849 482,808 38,914 700,959 15,671,530 Ol'1;RA"17NG liXPl'sNSI:S ' Personnel 2,908,608 283,95! 1,046,488 4,239,047 Cvfaterials 7,666,760 357,258 235,987 8,260,005 {:ontractual services 1,7~#9; #2G 843,708 2,600,030 5,193, I G4 Other 66,857 5,788 20,242 92,887 Overhead{'barges 800,555 #58,270 345,928 !,304,753 Depreciation 2,673,318 2,673,318 -total operating expenses 15,865,524 1,648,975 4,248,b75 21,763,174 ' OPERA"PING [NCOME(LOSSI fl;#16.675) 482,808 (!,610,(}61) (3,547,716) (6,091,644) i\4{)N{)pl:Rr1'I'ING RfiVliNUIiS (IiXPfiNSli} Investment income 297,207 35,587 281,627 96{},398 1,574,819 Gain on investment in .1Pn 194.872 26,060 1.20.932 Gain on disposal of fixed assets 5,485 5,485 ' 'total non-operating revenues (expenses} ~#97.564 35,587 281.627 986,458 1,8O1,23b IVCOA•1L•'(LOSS)l3L-'FORt:CON'1'RI13tJ'1'[ONSANnTRA~SPf:RS (919,111) 518,395 (1,32R;t34) (2,861,2>R) (4,290,408) ' Non-cash contributions 2,468,684 2,468.684 Capital contributions -connection fens 55~I,177 1,862; #08 2,416,585 Residual equity transfer ]0.635.770 (1,080,4 3 1) (9,555,359) '1'ransfcrs in 808,573 241,250 L049,823 '1'ranstcrsout (750,000) 131,590 (224,845) (2,115,259 (3,271,694) Changes in net assets 11;135,343 33fi,R05 (1,270,940) (12,128,218) (1,627,010) 1'03'ALNEfASSE'f5,13E(iINNINGOFYEAR 88,933,952 581,191 10,255,410 27,117,681 #26,888,23# ' "I"0"I'AL Nli'f A551i`I'S, IiND OF YGnR $100,369,295 $917,996 $8,984,470 $14,489; #G3 $125,261,224 r~I I I~ J i ' 43 DUBLIN SAN RAt.•tON SIiKV[CL'S DIS1'R]CT ALLOCATIONS COA4B[NING S"1'A'1'Ei,9ENT OF NET ASSETS JUNE 30, 2008 1997 Administrative Revenue OPEB Cost Center Bonds Fund 'I'ottil ASSF,TS Current assets: Pooled cash $182,720 $72,319 $255,039 Pooled im•estnteatts 1,611,709 1,61 ],709 Restricted imestntenls $275,410 275,410 Accounts receivable 271,859 18,097 289,956 ]nterzst receivable 27,348 27,348 Prepaid Expense 9,270 9,270 "Total current assets 463,R49 275;110 1,729,473 2,46R,732 Non-current assets: Capital assets: Property, plant and equipment 5,001,365 5,001,3fi5 Less accuurulated depreciation 1.857,312 1,857,312 Net propergr. plant and equipment 3.141.053 3,14~I,U53 'I'ota] capital asxts 3,114.053 3.]44,053 Other assets: Deferred charges 142,276 142,276 Net OPIil3 asset 7,936,575 7,936,57; Total other assets 142,276 7,936,575 S,U78,851 Total non-current assets 3,286,329 7,936,575 8,078,85 ] Total assets 163,849 3,561,739 9,666,048 13,691,636 LIABIE.ITIFS Current liabilities: Accuums pay~~hle 164,907 164,907 Accrued compensated absences 298,942 298,942 Interest payable 6,040 6,010 Current portion nflong-term debt 195.000 19>,000 'fohtE current liabilities 463,849 20E,040 664,889 Long term ]iahililies: Bonds payable - ]zss cwrcnl portion 1,280,000 1,280,000 '['Dial long term liabilities 1,280,000 1,280,000 'I'otalliabilitics 463,849 ],181,040 1,944,889 NE'f ASSETS htvested in capital assets, net of related debt 1,811,329 1,811,329 Restricted for. Debt sen~ice 264,370 269,370 Unrestricted 9,b66,048 9,666,048 Total net assets $2,080,699 $9,666,048 $I 1,746,747 44 DUBLIN SAN RAMON SERVICES DISTRICT ALLOCATIONS COMBINING STATEMENTS OF RF..VENUES AND EXPENSES AND CI-IANGFS 1N FUND NET ASSETS FOR "I'1-IE FISCAL YEAR ENDED JUNE 30, 2{)48 OPERATING KIVI;NUI3S Other revenues Total operating revenues OPERATING EXPENSES Perso~rnel Materials Contractual services Other Overhead Charges i)epreciation 't'otal operating expenses OPERA"PING INCOME (LOSS) NONOI'EItA'fING RLVLNi1ES (EXPENSE) hwestment income Interest expense "total non-operating revenues (expenses) Administrative 1997 OPEB Cost Center Bonds Fund `t'otal $1,723,054 ,723,054 5,271,192 $455,671 5,726,863 195,766 195,766 920,175 $2,618 922,793 38,247 38,247 (3,540,713) (3,540,713) 91,794 91,794 2,884,667 94,4 ] 2 455,671 3,434,750 (],161,613) (94,412) (455,671) (1,711,696)_ 13,089 $509,464 522,553 (45 I ,795) (451,795} (438,706) 509,464 70,758 $ i ,723,054 1,723,054 INCOMI? (LOSS) B1:T'ORI: CON"I'R113U`I'IONS AND "I'RANSI'ERS {1,161,613) (533,118) 53,793 (I,b40,938) "transfers in 1,161,613 2,270,801 181,590 3,614,004 "1'ransters out (2,519,784) {2,519,784) Changes in net assets 1,737,683 (2,284,401) (546,718) 'I-O'I'A[.,NE`I' ASST;"!'S, BEGINNING Ol~ YEAR 343,016 1 1,950,449 12,293,465 TUTAL NET ASSETS, END OF YEAR $2,080,b99 $9,b66,048 $1 ]L746,747 45 CALIFORNIA SANITATION RISK MANAGEMENT AUTHORITY WORKERS' COMPENSATION PROGRAM DECLARATIONS 1. Memorandum No.: CSWC DSR 0809 1 2. Member Agency: Dublin San Ramon Services District 70S 1 Dublin Blvd. Dublin, CA 94568 3. Effective Date: July 1, 2008 -July 1, 2009 4. Limit: $750,000 each occurrence, subject to a limit of $750,000 each accurrence as respects liability imposed by law for damages 5. Employers' Liability: $750,000 Bodily Injury By Accident $750,000 Bodily Injury By Disease 6. Manual Premium: $ 234,647. 7. Ex-Mod Factor: .57 8. Deposit Premium: $ 133,749. 9. Payroll reporting and adjusting period: Annual 07/01 /2008 Date It is agreed that this Declaration, the application and the memorandum of coverage, together with the terms of any endorsements, and any specified sections of the 3PA Agreement or Bylaws, constitute the entire Memorandum of Coverage. G:\Share\clientljpa\CSRMA\Workcrs Comp\renewal\2008 - 2009 - PY 19\Policy DocumentsiCS2tMA - OS-09 - WC Daclarations.doc ~" INFORMATION PAtaE ITEM 1: Named Insured and Mailing Address CALIFORNIA SANITATION RISK MANAGEMENT AUTHORITY 600 MONTGOMERY STREET, 9TH FL. SAN FRANCISCO, CA 94111 ITEM 2: States {in which coverage is to apply) CA ITEM 3: Policy Period FROM: 07/01/2008 TO 07/01/2009 t2:01 A.M. Standard Time at the Mailing Address shown hereiri ITEM 4; Our Limit of Indemnity ' PART ONE: WORKERS COMPENSATION STATUTORY - Each Accident ' U STATUTORY - Each Employee For Disease PART TWO: EMPLOYERS LIABILITY 1, 000 , 000 - Each Accident $1, 000, 000 - Each Employee For Disease , ' ITEM 5: Your Retention PART ONE: WORKERS COMPENSATION 750,000 Each Accident _ $750,000 Each Employee For Disease PART TWO: EMPLOYERS LIABILITY 750,000 Each Accident y $ 7~0 , 00'0. Each Employee For Disease ITEM 6: Premium and Premium Computation Estimated Total Annual Remuneration $170, 889.558 Rates Per $100 of Remuneration 0.2930 Deposit Premium $500, 706 Minimum Premium $500, 706 Premium for Certified Acts of Terrorism Coverage Under Terrorism Risk Insurance Act 2002: $29,501 Included In Policy Premium THIS POLICY I NCLUDES THESE ENDORSEMENTS: SEE ATTACHED SCHEDULE ' PRODUCER NAME AND ADDRESS: ALLIANT INSURANCE SERVICES, INC. X00 MONTGOMERY ST L 9TH ```"'SAN FRANCISCO, CA 941 1 1-271 1 54360 10/92 ( ) NATIONAL UNION POLICY NUMBER: FIRE INSURANCE COMPANY xwc 477-07-35 OF PITTSBURGH, PA RENIrWAL OF: . A CAPITAL STOCK COMPANY 4644196 ADMINISTRATIVE OFFICES 70 PINE STREET, NEW YORK, N.Y. 10270-0150 EXCESS WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY. COUNTERSIGNED BY: G~ (AUTHORIZED REPRESENTATIVE) Date Issued 0]/ 18/2008J1 inici ~a~n~c ~nov i EVIDENCE OF COVERAGE CALIFORNIA SANITATION RISK MANAGEMENT AUTHORITY POOLED LIABILITY PROGRAM MEMORANDUM No.: CSL DSRSD 0809 1 ENTITY: Dublin San Ramon Services District MAILING ADDRESS: 7051 Dublin Blvd. Dublin, CA 94568 COVERAGE PERIOD: From December 31, 2008 to December 31, 2009 12:01 A.M. DEDUCTIBLES: $ 100,000 per OCCURRENCE, combined for BODILY INJURY, PROPERTY DAMAGE and PERSONAL INJURY $ 2,500 per OCCURRENCE for PUBLIC ENTITY ERRORS & OMISSIONS other than EMPLOYMENT RELATED PRACTICES $ 25,000 per OCCURRENCE for EMPLOYMENT RELATED PRACTICES $ 2,500 per OCCURRENCE for AUTOMOBILE MEDICAL PAYMENTS $ 500,000 per OCCURRENCE for DAM FAILURE MAXIMUM COVERAGE LIMIT: $ 15,750,000 per OCCURRENCE, combined for BODILY INJURY, PROPERTY DAMAGE, PERSONAL INJURY and/or PUBLIC ENTITY ERRORS AND OMISSIONS $ 15,750,000 per OCCURRENCE for EMPLOYMENT RELATED PRACTICES $ 25,000 per OCCURRENCE for AUTOMOBILE MEDICAL PAYMENTS $ 750,000 per OCCURRENCE for DAM FAILURE G:\Share\clien[\jpa\CSRMA\Pool Liability\renewal\2008-2009\Policy Forms-Documents\CSRMA - PLP - OS-09 -Evidence of Coverage -MAIN MERGE.doc J RESOLUTION NO. 6-09 RESOLUTION OF THE BOARD OF DIRECTORS OF DUBLIN SAN RAMON SERVICES DISTRICT TO APPLY FOR THE CITY OF DUBLIN COMMUNITY GROUP/ORGANIZATIONAL FUNDING REQUEST IN THE AMOUNT OF $25,000 TO FUND A LOW-INCOME ASSISTANCE PROGRAM FOR DUBLIN CUSTOMERS WHEREAS, the District would like to establish aloes-income assistance program to better serve the community; and WHEREAS, the District cannot fund slow-income assistance program from rate revenues due to State regulations prohibiting one group of customers subsidizing another group; and WHEREAS, the City of Dublin Grant provides a method of funding the low-income program that is consistent with how many other cities fund the program through General Fund revenues; and WHEREAS, the External Affairs Committee is recommending that the District proceed with the application. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DUBLIN SAN RAMON SERVICES DISTRICT, a public agency located in the counties of Alameda and Contra Costa, California hereby approve the submittal of the attached Application, attached as "Exhibit A," and by this reference incorporated herein, is hereby approved, and the President of this Board and General Manager are hereby authorized and directed to execute and to attest thereto, respectively, said amendment for and on behalf of the District. ADOPTED by the Board of Directors of Dublin San Ramon Services District, a public agency in the Stateof California, counties of Alameda and Contra Costa, at its regular meeting held on the 20th day of January 2009, and passed by the following vote: AYES: 5 -Directors Daniel J. Scannell, Richard M. Halket, Jeffrey' G. Hansen, D.L. (Pat) Howard, Thomas W.:~~Ford NOES: o ABSENT: 0 Daniel J. Scannell, President ATTEST: _ ty~ P _ ~ . - ~ CERTIFIED AS A TRUE AND CORRECT COPY OF THE ORIGINAL ON Ffl.E AV THE OF Nancy G. H field, Dis ~t Secretary DUBLNV SAN RAMON ~ Secretary H:\Committee\Finance\12-08-OS\RSF\RSF transfer and budget adjustment Res.doc ~ ~ + JAN 2 1 2~~9 'r r ' City of Dublin Fiscal Year 2009-2010 II 11 1' l Application for Funds APPLICATION VERIFICATION I attest that the information contained in this FY 2009-2010 grant application is accurate and that the funds requested will not supplant any other monies secured by the organization. Attached is a resolution, letter, or other document providing evidence that the Board of Directors approved the application as submitted. Successful applicants are required to submit a summary report as soon as possible after submitting the reimbursement request, but not later than August 31, 2010. Failure to submit a report will result in ineligibility for future funding. r J i Signatures: ,~~ ~~~ Executive Director Board President/Chairperson ~~'~ Date ~ L 'L (~ ~ D i i Internal Revenue Service ' Date: August 3, 2007 DUBLIN SAN RAMON SERVICE DISTRICT 7051 DUBLIN BLVD DUBLIN CA 94568 C Dear Sir or Madam: Department of the Treasury P. O. Box 2508 Cincinnati, OH 45201 w_, ,~: .tea Person to Contact: ~; Mrs. Turner 17-57018 "'' Customer Service Specialist Toll Free Telephone Number: .877-829-5500 ~~ Federal Identification Number: 94-6050194 This is in response to your request of August 3, 2007, regarding your organization's federal tax status. Our records indicate that your organization may be a governmental instrumentality or apolitical subdivision of a state. No provision of the Internal Revenue Code imposes a tax on the income of governmental units (such as states and their political subdivisions). Therefore, it has been the position of the Service that income of governmental units is not generally subject to federal income taxation. If, however, an entity is not itself a governmental unit (or an "integral part" thereof), its income will, be subject to tax unless an exclusion or exemption applies. ' One exclusion is provided by section 115(1) of the Code, which excludes from gross income: "...income derived from ... the exercise of any essential governmental function and accruing to a State or any political subdivision thereof ..." 1 i. Your organization's income may not be subject to tax, either because the organization is a governmental unit (or an "integral part" thereof), or because the income is excluded under section 115. In addition, your organization may also be eligible to receive charitable contributions, which are deductible for federal income, estate, and gift tax purposes. Also, your organization is probably exempt from many federal excise taxes. Your organization may obtain a letter ruling on its status under section 115 by following the procedures specified in Rev. Proc. 2002-1 or its successor. Your organization may also qualify for exemption from federal income tax as an organization ,described in section 501(c)(3) of the Code. If the organization is an entity separate from the state, county, or municipal government, and if it does not have powers or purposes inconsistent with exemption (such a~s the power to tax or to exercise enforcement of regulatory powers), your organization would qualify under section 501(c)(3). To apply for exemption, complete Form 1023 and pay the required user fee. i ~ DUBLIN SAN RAMON SERVICE DISTRICT 94-6050194 -2- Sometimes governmental units are asked to provide proof of their status as part of a grant application. If your organization is applying for a grant from a private foundation, the foundation may be requesting certain information from your organization because of the restrictions imposed by the Code on such foundations.. One .such restriction imposes a tax on private foundations that make any "taxable expenditures." Under section 4945(d) and (h) of the Code, "taxable expenditures" include (1) any grant to an organization (unless excepted), unless the foundation exercises "expenditure responsibility" with respect to the grant; and (2) any expenditure for non-charitable purposes. Under section 4942 of the Code, private foundations must also distribute certain amounts for charitable purposes each year-='qualifying distributions"--or incur a tax on the undistributed amount. "Qualifying distributions" include certain amounts paid to accomplish charitable purposes. Private foundation grants to governmental units for public or charitable purposes are not taxable expenditures under these provisions, regardless of whether the foundation exercises "expenditure responsibility." Under section 53.4945-5(a)(4)(ii) of the Foundation and Similar Excise Tax Regulations, expenditure responsibility is not required for grants for charitable purposes to governmental units (as defined in section 170(c)(1) of the code). Similarly; grants to governmental units for public purposes are "qualifying distributions", under section 53.4942(a}-3(a) of the regulations; and, if they are for charitable purposes, will not be taxable expenditures, under section 53.4945-6(a) of the regulations. Most grants to governmental -units will qualify as being for charitable (as well as public} purposes. Because of these restrictions, some private foundations require grant applicants to submit a letter from the Service determining them to be exempt under section 501(c)(3) and classified as anon-private foundation. Such a letter, or an underlying requirement that a grantee be a public charity, is not legally required to be relieved from the restrictions described above, when the prospective grantee is a governmental unit and the grant is for qualifying (public or charitable) purposes. We believe this general information will be of assistance to your organization. This letter, however, is not a ruling and may not be relied on as such. If you have any questions, please call us at the telephone number shown in the heading of this letter. Sincerely, .~~ Michele M. Sullivan, Oper. Mgr. Accounts Management Operations 1 ~i