HomeMy WebLinkAbout10-City ClerkCITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From:
Rachel G. Clark, CMC,
City Clerk
Subject: Receive and File - 2003-2004
Annual Audit of the Water Department's
Water and Sewer Utilities.
Dept:
City Clerk
ORIGINAL
Date: January 18,2005
MlCC Meeting Date: February 7, 2005
Synopsis of Previous Council Action:
Similar action taken each year following completion of the annual Audit Report.
Recommended Motion:
That the Mayor and Council receive and file the 2003-2004 Annual Audit of the Water
Department's Water and Sewer Utilities.
-~h.~
Signature
Contact person:
DQ...h~1 G rlarlr
Phone: y 1'10
Supporting data attached:
Yes
Ward:
FUNDING REQUIREMENTS: Amount:
Source:
(Acct. No.)
(Acct. Description)
Finance:
Council Notes:
Agenda Item No.
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
TO:
FROM:
DATE:
SUBJECT:
Honorable Mayor and Members of the Common Council
Rachel G. Clark, CMC, City Clerk
January 18, 2005
2003-2004 Audit Report for Water Department Water and Sewer Utilities
BACKGROUND INFORMATION:
The firm of Conrad and Associates, L.L.P. has completed the 2003-2004 Annual Audit of the
Water Department's Water and Sewer Utilities. This report was presented to and accepted by the
Board of Water Commissioners at their meeting of January 11, 2005.
RECOMMENDED MOTION:
That the Mayor and Council receive and file the completed 2003-2004 Annual Audit of the
Water Department's Water and Sewer Utilities.
~h_~
Rachel G. Clark, CMC
City Clerk
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MUNICIPAL WATER DEPARTMENT OF THE
CITY OF SAN BERNARDINO, CALIFORNIA
Financial Statements
Year ended June 30, 2004
CONRAD AND
ASSOCIATES, L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Financial Statements
Year ended June 30, 2004
TABLE OF CONTENTS
Page
FINANCIAL SECTION
Independent Auditors' Report
Management's Discussion and Analysis
Basic Financial Statements:
Statement of Net Assets
Statement of Revenues, Expenses, and Changes in Net Assets
Statement of Cash Flows
Notes to Basic Financial Statements
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5
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SUPPLEMENTARY INFORMATION
Statistical Schedules:
Board of Water Commissioners and Organization
Schedule of Insurance Coverage
Schedule of Water System Demographics
Schedule of Water Production
Schedule of Water Rates
Schedule of Sundry Water Statistical Data
Schedule of Service Area and Customers
Schedule of Sewer Rates and Statistics
Schedule - 1992 Certificates of Participation, San Bernardino
Public Safety Authority
Schedule - 1998 Refunding Sewer Revenue Certificates of Participation,
San Bernardino Public Safety Authority
Series 1998A Water and Wastewater Revenue Bonds
Bond Schedule - General Obligation Waterworks Bonds, Series C
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Financial Statements
Year ended June 30, 2004
TABLE OF CONTENTS. (CONTINUED)
SUPPLEMENTARY INFORMATION, (CONTINUED)
Water Utility (Individual Fund Statements and Schedules):
Statements of Net Assets
Statements of Revenues and Expenses
Statements of Changes in Net Assets
Statements of Cash Flows
Schedules of Operating Expenses
Schedules of Board of Water Commissioners Expenses
Sch~dules of Administration Expenses
Schedules of Safety and Loss Control Expenses
Schedules of Personnel Expenses
Schedules of Finance and Accounting Expenses
Schedules of Data Processing Expenses
Schedules of Purchasing and Stores Expenses
Schedules of Administrative Services Expenses
Schedules of Customer Services Expenses
Schedules of Billing and Posting Expenses
Schedules of Cashiering Expenses
Schedules of Field and Meter Services Expenses
Schedules of Water Utility Administration
Schedules of Operations Administration Expenses
Schedules of Production and Pumping Expenses
Schedules of Geothermal Expenses
Schedules of Plant and Facilities Maintenance Expenses
Schedules of Specialized Construction Expenses
Schedules of Electrical. Repair Expenses
Schedules of Distribution Administration Expenses
Schedules of Service and Repair Expenses
Page
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Financial Statements
Year ended June 30, 2004
TABLE OF CONTENTS. (CONTINUED)
SUPPLEMENTARY INFORMATION, (CONTINUED)
Water Utility, Continued:
Schedules of Distribution Maintenance Expenses
Schedules of Meter Shop Expenses
Schedules of Garage - Vehicle Maintenance Expenses
Schedules of Engineering Expenses
Schedules of Water Quality and Backflow Connection Expenses
Schedules of General, Administration, and Overhead Expenses
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Sewer Utility (Individual Fund Statements and Schedules):
Statements of Net Assets
Statements of Revenues and Expenses
Statements of Changes in Net Assets
Statements of Cash Flows
Schedules of Operating Expenses
Schedules of Administration Expenses
Schedules of Engineering Services Expenses
Schedules of Plant Operations Expenses
Schedules of Bio-Solids Processing Expenses
Schedules ofRIX Facility Operations Expenses
Schedules of Plant Maintenance Expenses
Schedules of Facilities Maintenance Expenses
Schedules of Electrical Instrumentation Expenses
Schedules of Environmental Control Expenses
Schedules of General, Administration, and Overhead Expenses
Report on Compliance and Internal Control over Financial Reporting
Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
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III
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CONRAD AND
ASSOCIATES, L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS
2301 DUPONT DRIVE, SUITE 200
IRVINE, CALIFORNIA 92612
(949)474-2020
Fax (949) 263-5520
Water Commissioners Board
Municipal Water Department of the City of
San Bernardino, California
Independent Auditors' Report
We have audited the accompanying basic financial statements of the Municipal Water
Department of the City of San Bernardino, California as of and for the year ended June 30, 2004.
These basic ftnancial statements are the responsibility of the management of, the Municipal
Water Department of the City of San Bernardino, California. Our responsibility is to express an
opinion on these basic financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the basic
financial statements are free of material misstatements. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the basic ftnancial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall ftnancial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
As discussed in Note 1, the ftnancial statements present only the Municipal Water Department
and are not intended to present fairly, in all material respects, the ftnancial position of the City of
San Bernardino, California, and the results of its operations and cash flows of its proprietary fund
types, in conformity with accounting principles generally accepted in the United States of
America.
In our opinion, the basic financial statements referred to above present fairly, in all material
respects, the ftnancial position of the Municipal Water Department of the City of San
Bernardino, California, as of June 30, 2004, and the results of its operations and the cash flows
for the year then ended in conformity with accounting principles generally accepted in the United
States of America.
The information identified in the accompanying table of contents as management's discussion
and analysis is not a required part of the basic ftnancial statements, but is supplementary
information required by the Governmental Accounting Standards Board. We have applied certain
limited procedures, which consisted principally of inquiries of management regarding the
methods of measurement and presentation of the supplementary information. However, we did
not audit the information and do not express an opinion on it.
MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INsmUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
Water Commissioners Board
Municipal Water Department of the City of
San Bernardino, California
Page Two
Our audit was made for the purpose of forming an opinion on the basic financial statements taken
as a whole. The individual fund statements and schedules listed in the table of contents are
presented for purposes of additional analysis and are not a required part of the basic financial
statements of the Municipal Water Department of the City of San Bernardino, California. Such
information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole. The scope of our audit did not include the statistical
schedules listed in the table of contents and we do not express an opinion on them.
In accordance with Government Auditing Standards, we have also issued our report dated
November 12,2004 on our consideration of the Municipal Water Department of the City of San
Bernardino's internal control over financial reporting and our tests of its compliance with certain
provisions of laws, regulations, contracts and grants.
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November 12, 2004
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'_..'
MANAGEMENT'S DISCUSSION AND ANALYSIS
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MANAGEMENT'S DISCUSSION AND ANALYSIS
Ol.\f discussion and analysis of the San Bernardino Municipal Water Department's financial performance
provides an overview of the Department's financial activities for the year ended JWle 30, 2004. Please
read it in conjWlction with the Department's basic financial statements.
This annual financial report consists of two parts -- Management's Discussion and Analysis (this section)
and the Basic Financial Statements. The financial statements include notes that explain some of the
information in the fmancial statements and provide more detailed data.
In December 1998 the Governmental AccoWlting Standards Board (GASB) issued Statement No. 33,
Accounting and Financial Reporting for Non-Exchange Transactions. GASB No. 33 set new revenue
recognition rules including the reporting of contributed capital as Income in the Statement of Revenues,
Expenses, and Changes in Equity. In June 1999 the GASB issued Statement No. 34, Basic Financial
Statements -- and Management's Discussion and Analysis -- for State and Local Governments. GASB
No. 34 establishes financial reporting' standards for state and local governments, cities, villages and
special purpose governments. GASB No. 34 required the following changes to the Department's financial
statements:
1. The format of the balance sheet has been changed. Assets and liabilities are now categorized as
current and noncurrent. The equity section is displayed in three categories: 1) Invested in
capital assets, net of related debt, 2) restricted, and 3) unrestricted. Unrestricted equity is no
longer reserved or designated on the face of the balance sheet. .
2. The statement of revenues, expenses, and changes in equity now reports contributed capital as
revenue, rather than a direct change to equity.
3. The statement of cash flows now includes a summarization of the cash flows from operating
activities. The statement of cash flows continues to reconcile the reasons why cash from
operating activities differs from operating income.
Financial Hillhllllhts
During the year ended JWle 30, 2004, the Water FWld net assets increased $8.2 million. This is primarily
due to a net profit of $4.4 million partially caused by a $2.5 million gain on the sale of a $3 million piece
ofland as well as the $3.8 million in capital contributions for the year. The Water Department's increase
of operating revenue ($1,140,841), increase of operating expense ($2,315,142) and increase of
nonoperating revenue ($2,483,111) combined to increase net profit by $1,248,816. Net profit increased
from a $3,094,659 gain to a $4,343,535 gain from 2003 to 2004. The net profit of $4.4 million and
contributed capital of $3.8 million increased net assets by $8.2 million before prior period adjustments.
The Sewer FWld net assets increased $3.0 million for the year ended June 30, 2004. The Sewer
Department's increase in operating revenue ($354,980), decrease in operating expense ($320,695) and
increase of nonoperating expense ($895,131) combined to increase net loss by $.2 million. Net profit
decreased from a $.9 million loss to a $1.1 million loss from 2003 to 2004. The net loss of $1.1 million
and contributed capital of $4.1 million increased net assets by 2.8.
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Financial Analvsis of the Department
Equity - The Water Fund's net assets increased $8.2 million between fiscal years 2003 and 2004 _
increasing from $86.1 million to $94.3 million. One reason for the increase is due to a net profit of $4.3
million which includes a $3 million sale of property for a gain on asset disposition of 2.5 million. The
other reason for the increase is the $3.8 million in capital contributions. The Sewer Fund's net assets
increased from $88.9 million to $91.9 million between fiscal years 2003 and 2004. The main reason for
the increase is the $4.1 million in capital contributions.
Water Department's Equity
(In Millions of Dollars)
Water Fund Sewer Fund
2004 2003 % Change 2004 2003 % Cha1t1!e
Current Other Assets 35.5 23.0 54.3 35.9 34.0 5.6
Capital Assets 79.8 73.8 8.1 112.5 114.6 0.8)
Total Assets 115.3 96.8 19.1 148.4 148.6 lO.t)
Long Term Debt 12.5 3.6 247.2 53.6 56.9 (5.8)
Other Liabilities 8.5 7.1 19.7 2.9 2.8 3.6
Total Liabilities 21.0 10.7 96.3 56.5 59.7 (5.4)
Net Assets
Invested in capital assets net of related debt 77.8 70.2 10.8 62.5 57.7 8.3
Restricted 3.3 2.5 32.0 9.2 9.5 (3.2)
Unrestricted 13.2 13.4 (1.5) 20.2 21.7 (6.9)
Total Net Assts 94.3 86.1 9.5 91.9 88.9 3.4
Change in Net Assets - The Water Fund's operating revenues increased by 5.9% to $21.6 million. This
increase is due to a greater volume of water purchased because of the continued drought conditions. The
Water Fund's operating expenses increased 12.8% to $20.9 million. Operating expenses increased
primarily due to an overall increase in labor and fringe benefit costs of about $1.0 million and a change to
the overhead calculation rate which decreased the capitalized overhead expense by about $.9 million.
The Water Fund's non-operating revenues (expenses) increased 198% to $3.7 million due to a $2.5
million gain on the sale of a $3 million piece of land. Capital contributed to the Water Department
increased 15.2% to $3.8 million due to increased construction activity in our service area. The
combination of non-operating revenues ($3.7 million) and contributed capital ($3.8 million) plus the
current year operating gain of $.6 million caused an increase in net assets of $8.2 million before prior
period adjustments.
The Sewer Fund's operating revenues increased by 2.3% to $17.5 million. The Sewer Fund's operating
expenses decreased 1.9% to $16.5 million.
The Sewer Fund's non-operating revenues (expenses) increased 83.6% to ($2.0 million) due to an
investment adjustment of $694,000 which decreased investment income by this amount. Capital
contributed to the Sewer Fund increased to $4.1 million. The net loss of $1.1 million and contributed
capital of$4.1 million left an increase of$3.0 million to net assets.
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Water Department's Changes in Net Assets
(In Millions of Dollars)
Wilier Fund Sewer Fund
2004 2003 " Chtllllle 2004 2003 %Chtllllle
Revenues:
ProlZ1'lUJl Revenues:
CbarRes for Services 21.6 20.4 5.9 17.5 17.1 2.3
Contnbuted Capital 3.8 3.3 15.2 4.1 3.3 24.2
General Revenues:
Investment Income .2 .7 (71.4) .5 1.5 (66.7)
NoncaDita1 Grant Funds 1.2 .8 50.0
Rental Income and Other .2
27.0 25.2 7.1 22.1 21.9 0.9
Pro2I"am EXDenses: 18.8 18.9 (0.5) 19.1 19.5 (2.1)
Increase in Eauitv 8.2 6.3 30.2 3.0 2.4 25.0
Prior Period Adiustment - Net (3.6) -
Increase in Eauitv after Prior Period Adiustment 8.2 6.3 30.2 3.0 ( 1.2) -
Total Net Assets Be of the Year 86.1 79.8 7.9 88.9 90.1 (1.3)
Total Net Assets - End of the Year 94.3 86.1 9.5 91.9 88.9 3.4
Capital Assets
At June 30, 2004, the Water Fund had invested $79.8 million in capital assets net of $42.7 million of
accumulated depreciation. This amount represents a net increase (including additions and deductions) of
$6.0 million or 8.1% from the prior year. A $.8 million increase in property, plant and equipment and a
$7.6 million increase in construction in progress were partially offset by a $2.4 million increase in
accumulated depreciation. The main cause for the $6.0 million increase in net capital assets is due to
increased construction in progress for newer projects such as the Enhanced Reliability Schedule of
hnprovements projects.
At June 30, 2004, the Sewer Fund had invested $112.5 million in capital assets net of $58.8 million of
accumulated depreciation. This amount represents a net decrease (including additions and deductions) of
$2.1 million or 1.8% from the prior year.
More detailed information about the Department's capital assets is presented in Note 3 to the financial
statements.
Water Department's Capital Assets
(In Millions of Dollars)
Water Fund Sewer Fund
2004 2003 " Chtllllle 2004 2003 "Chanlle
Property, Plant. Eauipment & Water Rights 102.6 101.8 0.8 169.6 167.1 1.5
Construction in Progress 19.9 12.3 61.8 1.7 2.1 (19.0)
Accumulated Depreciation & Amortization 42.7 40.3 6.0 58.8 54.6 7.7
Total 79.8 73.8 8.1 112.5 114.6 ( 1.8)
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LOBi!: Term Debt
At June 30, 2004 the Water Fund had $12.5 million in bonds outstanding, an increase of 247% from the
prior year. The Water Fund has applied and been approved for a $10 million loan from the California
Infrastructure Economic Development Bank to cover the replacement of aging infrastructure and new
reservoirs for water demand on the system, which was funded during fiscal year 2004. The Water Fund
has also been awarded a Department of Defense grant for $8,500,000 to help replace aging infrastructure.
At June 30, 2004 the Sewer Fund had $53.6 million in bonds outstanding, a decrease of 5.8% from the
prior year. No new debt was issued during the year and no new debt is anticipated in the coming year.
More detailed information about the Department's long term debt is presented in Note 5 to the financial
statements.
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BASIC FINANCIAL STATEMENTS
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Statement of Net Assets I
June 30, 2004
(With comparative totals for 2003)
Water Sewer Totals I
Utility Utility Elimination 2004 2003
Assets
Assets: I
Current assets:
Cash and investments (note 2) $ 11,888,399 19,026,236 30,914,635 31,947,749
Accounts receivable, net 4,047,631 2,430,918 6,478,549 5,436,760
Due from other entities 1,070,040 192,767 1,262,807 1,778,972 I
Interfund receivable 23,388 (23,388)
Related parties receivable (note 8) 285,092 477,821 762,913 647,674
Inventory 1,472,401 1,472,401 1,374,613 I
Prepaid expenses 13,178 9,442 22,620 71 ,444
Total current assets 18,800,129 22,137,184 (23,388) 40,913,925 41,257,212
Noncurrent assets: I
Restricted assets:
Cash and investments (note 2): I
Restricted for debt service 462,315 3,539,958 4,002,273 3,966,682
Restricted for capital-related fees 3,314,912 9,217,467 12,532,379 8,719,489
Restricted for consumer deposits 2,224,512 2,224,512 2,066,143
Interest receivable 41,772 80,765 122,537 80,765 I
Note proceeds held by state 10,000,000 10,000,000
Total restricted assets 16,043,511 12,838,190 28,881,701 14,833,079
Notes receivable 600,000 600,000 I
Capital assets (note 3):
Land & easements 2,709,175 12,470,740 15,179,915 15,172,773
Water rights, wells, pumping plants 35,492,836 3,192,218 38,685,054 38,885,688 I
Distribution systems 54,605,417 54,605,417 54,277,581
Building, plants and store yards 1,334,031 147,617,857 148,951,888 146,604,528
Tools and equipment 2,055,082 3,803,195 5,858,277 5,524,346
Autos 2,901,318 994,644 3,895,962 3,567,437 I
Office leasehold improvements 141,926 141,926 112,594
Office, computer, engineering
equipment 2,568,894 936,785 3,505,679 3,408,419 I
Radio and interoffice communication
equipment 304,959 111,811 416,770 262,865
Telemetry systems and equipment 248,336 336,612 584,948 584,948
Miscellaneous 233,534 193,015 426,549 426,549 I
Construction in progress 19,886,793 1,672,160 21,558,953 14,420,384
Less accumulated depreciation and
amortization (42,650,895) (58,791,615) (101,442,510) (94,910,267) I
Total capital assets (net of
accumulated depreciation
and amortization) 79,831,406 112,537,422 192,368,828 188,337,845 I
Other assets:
Debt issue costs, net 16,753 387,688 404,441 465,913
Deferred call premium 530,073 530,073 572,198
Total other assets 16,753 917,761 934,514 1,038,111 I
Total Noncurrent assets 96,491,670 126,293,373 222,785,043 204,209,035
Total assets 115,291,799 148,430,557 (23,388) 263,698,968 245,466,247 I
(Continued)
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I MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Statement of Net Assets
I (Continued)
Water Sewer Totals
I Utility Utility Elimination 2004 2003
Liabilities and net assets
Liabilities :
I Current liabilities:
Accounts payable 2,005,546 1,244,437 3,249,983 2,604,084
Interfimd payable 23,388 (23,388)
I Related parties payable (note 8) 618,618 89,242 707,860 908,217
Accrued expenses 38,956 8,720 47,676 24,540
Accrued compensation 2,039,710 752,868 2,792,578 2,463,335
I Claims payable (note 10) 416,099 29,275 445,374 527,579
Other deposits 976,727 570 977,297 571,163
Deferred revenue 21,495 21,495
I Current portion of notes payable (note 5) 414,147 1,728,295 2,142,442 1,670,365
Total current liabilities 6,531,298 3,876,795 (23,388) 10,384,705 8,769,283
I Current liabilities payable from restricted assets:
Current portion of certificates of
participation (note 5) 1,705,304 1,705,304 1,624,877
I Current portion of bonds payable (note 5) 1,160,640 1,160,640 1,107,662
Accrued interest payable 122,267 761,710 883,977 838,433
Consmner deposits 2,270,516 2,270,516 2,024,812
I Total current liabilities payable from
restricted assets 3,553,423 2,467,014 6,020,437 5,595,784
I Noncurrent liabilities:
Notes payable (note 5) 9,585,853 20,652,476 30,238,329 22,380,771
I Certificates of participation (note 5) 29,523,426 29,523,426 31,228,730
Bonds payable (note 5) 1,324,524 1,324,524 2,485,164
Total Noncurrent liabilities 10,910,377 50,175,902 61,086,279 56,094,665
I T otalliabilities 20,995,098 56,519,711 (23,388) 77,491,421 70,459,732
I Net assets:
Invested in capital assets, net of related
debt (note 12) 77,789,726 62,467,879 140,257,605 131,049,290
I Restricted for:
Capital-related fees 3,314,912 9,217,467 12,532,379 8,719,489
Unrestricted 13,192,063 20,225,500 33,417,563 35,237,736
I Total net assets $ 94,296,701 91,910,846 186,207,547 175,006,515
I See accompanying notes to basic financial statements.
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I MUNlCIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Statement of Revenues, Expenses, and Changes in Net Assets
I Year Ended June 30, 2004
(With comparative totals for 2003)
Water Sewer Totals
I Utility Utility Eliminations 2004 2003
Operating revenues:
I Charges for services $19,738,868 16,782,511 (37,617) 36,483,762 35,249,518
Other operating revenues 1,816,802 642,377 (852,073) 1,607,106 1,454,379
Total operating revenues 21,555,670 17,424,888 (889,690) 38,090,868 36,703,897
I Operating expenses:
Administration and customer service 4,993,846 4,993,846 4,783,093
Engineering, operations, and distribution
I administration 676,688 1,317,061 (839,960) 1,153,789 1,185,961
Plant operations 5,670,649 7,584,176 (3,697) 13,251,128 13,580,401
Maintenance 1,209,713 2,237,681 (11,898) 3,435,496 3,235,652
I Environmental control 377,638 377,638 316,238
Distribution 2,881,570 (215) 2,881,355 2,441,369
Engineering 1,468,972 1,468,972 1,288,902
I General, administration, and overhead 1,229,032 753,354 (33,920) 1,948,466 1,197,154
Depreciation and amortization (note 3) 2,817,822 4,274,823 7 ,092,645 6,628,368
Total operating expenses 20,948,292 16,544,733 (889,690) 36,603,335 34,657,138
I Operating income (loss) 607,378 880,155 1,487,533 2,046,759
Non-operating revenues (expenses):
I Investment income 219,377 525,183 744,560 2,260,293
Rental income 68,098 26,710 94,808 98,415
Noncapital grant funds 1,214,167 1,214,167 794,044
Gain (loss) on asset disposition 2,488,606 (13,519) 2,475,087 (131,829)
I Interest expense and fiscal charges (369,371) (2,431,334) (2,800,705) (2,800,919)
Amortization of issuance costs (15,634) (45,839) (61,473) (68,040)
Other 130,914 (26,356) 104,558 33,187
I Total non-operating revenues (expenses) 3,736,157 (1,965,155) 1,771,002 185,151
Net profit (loss) 4,343,535 (1,085,000) 3,258,535 2,231,910
I Capital contributions:
Capital grants 1,351,197 1,351,197 1,159,787
Acquisition fees 2,055,130 2,055,130 1,248,701
I Capacity fees 239,249 3,939,379 4,178,628 3,091,579
Other capital restricted fees 188,048 169,494 357,542 1,020,502
I Total capital contributions 3,833,624 4,108,873 7,942,497 6,520,569
Net assets:
Balance at beginning of year 86,119,542 88,886,973 175,006,515 166,254,036
I Balance at end of year $94,296,701 91,910,846 186,207,547 175,006,515
I See accompanying notes to basic fmancial statements.
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Statement of Cash Flows
Year Ended June 30, 2004
(With comparative totals for 2003)
Totals
Water Sewer 2004 2003
Cash flows from operating activities:
Cash received from customers $21,656,375 17,143,680 38,800,055 37,069,869
Rental income 68,098 26,710 94,808 98,415
Nonoperating miscellaneous revenue (expenses) 2,019,520 (39,875) 1,979,645 (101,437)
Cash paid to suppliers of goods and services (8,298,248) (815,672) (9,113,920) (10,370,331)
Cash paid to employees for services (6,119,249) (8,800,082) (14,919,331) (15,288,725)
Net cash provided by operating activities 9,326,496 7,514,761 16,841,257 11,407,791
Cash flows from noncapital financing activities:
Grant proceeds received 1,214,167 1,214,167 794,044
Net cash provided by noncapital financing activities 1,214,167 1,214,167 794,044
Cash flows from capital and related financing activities:
Capital fees received 2,482,427 4,108,873 6,591,300 5,166,068
Grant proceeds received 1,351,197 1,351,197 1,159,787
Cash paid to acquire fixed assets (11,808,534) (4,802,498) (16,611,032) (9,988,127)
Principal paid on capital-related debt (1,107,662) (3,295,242) (4,402,904) (4,194,439)
Interest paid on capital-related debt (285,991) (2,427,046) (2,713,037) (2,806,131)
Net cash provided by (used for) capital and related
fmancing activities (9,368,563) (6,415,913) (15,784,476) (10,662,842)
Cash flows from investing activities:
Interest received 177 ,605 525,183 702,788 2,260,293
Net cash provided by investing activities 177,605 525,183 702,788 2,260,293
Net increase in cash 1,349,705 1,624,031 2,973,736 3,799,286
Cash and cash equivalents at beginning of year 16,540,433 26,685,880 43,226,313 39,427,027
Cash and cash equivalents at end of year $17,890,138 28,309,911 46,200,049 43,226,313
(Continued)
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MUNlCIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Statement of Cash Flows
(Continued)
Totals Totals
Water Sewer 2004 2003
Reconciliation of cash and cash equivalents to amounts
reported on the balance sheet:
Reported on the balance sheet:
Cash and investments $11,888,399 19,026,236 30,914,635 31,947,749
Restricted assets 16,043,511 12,838,190 28,881,701 14,833,079
Less restricted assets not meeting the definition of
cash equivalents:
Investment agreements (3,473,750) (3,473,750) (3,473,750)
Interest receivable (41,772) (80,765) (122,537) (80,765)
Note proceeds held by state (10,000,000) - (10,000,000)
Cash and cash equivalents at end of year $17,890,138 28,309,911 46,200,049 43,226,313
Reconciliation of operating income to net cash
provided by (used for) operating activities:
Operating income $ 607,378 880,155 1,487,533 2,046,759
Depreciation and amortization 2,817,822 4,274,823 7,092,645 6,628,368
Nonoperating miscellaneous revenue (expenses) 130,914 (26,356) 104,558 30,392
Rental income 68,098 26,710 94,808 98,415
Gain (loss) on asset disposition 2,488,606 (13,519) 2,475,087 (131,829)
Adjustments:
Change in accounts receivable (827,269) (214,520) (1,041,789) 156,843
Change in due from other entities 514,264 1,901 516,165 (1,128,536)
Change in notes receivable (600,000) (600,000)
Change in interfund receivable 5,402 5,402 72,432
Change in related parties receivable (41,732) (73,507) (115,239) 94,808
Change in inventory (97,788) (97,788) (48,734)
Change in prepaid expenses 37,287 11,537 48,824 410,455
Change in accounts payable 250,707 395,192 645,899 100,000
Change in interfund payable (5,402) (5,402) (69,637)
Change in related parties payable 78,202 (278,559) (200,357) 145,821
Change in accrued expenses 22,933 203 23,136 8,929
Change in accrued compensation 228,088 101,155 329,243 238,120
Change in claims payable 33,200 (115,405) (82,205) 153,964
Change in consumer deposits 245,704 245,704 101,516
Change in other deposits 412,753 (6,619) 406,134 (20,870)
Change in deferred revenue 21,495 21,495
Change in other assets 2,930,432 2,556,972 5,487,404 2,520,575
Net cash provided by operating activities $ 9,326,496 7,514,761 16,841,257 11,407,791
Noncash Inve.<rtinll Capital and Financina Activities
There were no significant non-cash investing, capital and financing activities for the year ended June 30, 2004. During the
year ended June 30, 2003, developer contributions of capital assets were made in the amount of$194,714.
See accompanying notes to basic financial statements.
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
Year ended June 30, 2004
(1)
Summary of Significant Accounting Policies
Reporting Entity
The Municipal Water Department of the City of San Bernardino, California ("the
Department") is governed under the Charter of the City of San Bernardino. A Board of
Water Commissioners who is appointed by the Mayor of the City of San Bernardino has
certain limited powers with respect to the Department. The Department has no separate
organizing document and is a part of the legal entity of the City of San Bernardino. The
Municipal Water Department of the City of San Bernardino operates two enterprise
funds: the Water Utility Enterprise Fund (Water Utility) and the Sewer Utility Enterprise
Fund (Sewer Utility). The Water Utility also provides administrative services and
contracted services to the Sewer Utility. The accounting policies of the Department
conform to generally accepted accounting principles (GAAP) as applicable to
governments.
The preparation of these financial statements requires management to make estimates and
assumptions. Those estimates and assumptions affect the reported amounts of assets,
liabilities, revenues, and expenses, as well as the disclosure of contingent assets and
liabilities. Actual results could differ from those estimates. Management also determines
the accounting principles to be used in the preparation of the financial statements. A
description of the significant accounting policies employed in the preparation of these
financial statements follows:
Fund Accounting
The accounts of the Department are organized and operated on the basis of funds. A fund
is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund
accounting segregates funds according to their intended purpose and uses them to aid
management in demonstrating compliance with finance-related legal and contractual
provisions. The Department's financial statements include only enterprise funds, which
are a proprietary fund type. Enterprise funds are used to account for those operations that
are financed and operated in a manner similar to private business or where the Board has
decided that the determination of revenues earned, costs incurred and/or net income is
necessary for management accountability.
Basis of Accounting
Proprietary funds are accounted for on the flow of economic resources measurement
focus and use the accrual basis of accounting. Under this method, revenues are recorded
when earned and expenses are recorded at the time liabilities are incurred. The
Department applies all applicable GASB pronouncements in accounting and reporting for
its proprietary operations and applicable F ASBs that occurred prior to November 30,
1989.
w~~.~'--'-c-. '.-T~~_"
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(1)
Summary of Significant Accounting Policies, (Continued)
Cash and Investments
Investments are reported in the accompanying balance sheet at fair value, except for
certain certificates of deposit and inv,estment contracts that are reported at cost because
they are not transferable and they have terms that are not affected by changes in market
interest rates.
Changes in fair v.alue that occur during a fiscal year are recognized as investment income
reported for that fiscal year. Investment income includes interest earnings, changes in fair
value and any gains or losses realized upon the liquidation or sale of investments.
Cash for the Department is pooled with the City of San Bernardino for investment
purposes in order to maximize interest earnings. Such earnings are credited to the various
funds within the City of San Bernardino based upon average monthly cash balances. The
investment policies and the associated risk factors as they relate'to the Department are
included in the City's Comprehensive Annual Financial Report.
For the purpose of the statement of cash flows, cash and cash equivalents include all
highly liquid investments (including restricted assets) with maturity of three months or
less when purchased.
Receivables
Trade receivables are shown net of an allowance for uncollectible accounts based on
management's estimate.
Interfund Receivables and Payables
Transactions between funds that are representative of lendinglborrowing arrangements
outstanding at the end of the fiscal year are referred to as either. "interfund
receivables/payables" (Le., the current portion of interfund loans) or "advances to/from
other funds" (i.e., the non-current portion of interfund loans). All interfund transactions
are eliminated for financial reporting purposes.
Inventories
Inventories are valued at the lower of cost, using the average-cost method, or market.
17
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(1)
Summary of Significant Accounting Policies, (Continued)
Restricted Assets
Various resources of the Department are limited as to their use by law or by certificates of
participation and bond covenants and are classified on the balance sheet as restricted
assets. Proceeds of the certificates of participation and bonds are restricted for the
construction of wa.ter and sewer system improvements and for repayments. Assessments
collected from property owners are restricted for the payment of bond principal and
interest. Also, fees imposed on new real estate development are restricted by law for the
construction of capital improvements that benefit the development projects.
Issuance Costs and Discount
Issuance costs, discounts, and deferred funding charges for certificates of participation
and bonds payable are being amortized using the effective interest rate method over the
term of the related certificate or bond or the straight-line method which approximates the
effective interest method.
Capital Assets
Property, plant, equipment and water rights are recorded at cost. The Department's policy
is to capitalize all property having a value of $1,000 or more and a life expectancy of 3
years or more. Major outlays for capital assets and improvements are capitalized as
projects are constructed. Interest incurred during the construction phase is reflected in the
capitalized value of the asset constructed, net of interest earned on the invested proceeds
over the same period, if any. Overhead costs are capitalized at the rate of 28.9% for
laborlbenefits, 10% for materials/supplies, 2% for significant contracts and are reflect in
the capitalized value of the asset constructed. Depreciation has been provided for using
the straight-line method over the estimated useful lives of the related assets. Useful lives
for depreciation purposes are as follows:
Wells, pumping plants, reservoirs, and distribution system
Interceptor lines
Disposal plant
Leasehold improvements
Shops, offices, stores, and yards
Tools and equipment
Office equipment
Communicationequipmem
Computer equipment
Automotive equipment
8 to 50 years
50 years
35 to 50 years
5 to 25 years
10 to 20 years
4 to 20 years
5 to 20 years
8 to 10 years
3 to 5 years
3 to 8 years
Equipment leased under capital leases is recorded at cost, and amortization has been
provided for using the straight-line method over the estimated useful life. Amortization is
included in depreciation expense.
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
Summary of Significant Accounting Policies, (Continued)
Compensated Absences
Employees gain a vested right to.accumulated unpaid vacation based on years of service
but cannot accumulate more than two years of accrued vacation. Once each fiscal year,
employees with at least three weeks of accrued vacation bavethe option of receiving
payment at their regular rate of pay for one week of accumulated unpaid vacation (two
weeks for managers and mid-management employees). Employees' vacation benefits are
recognized as a liability of the Department.
Sick leave is accumulated without limit for each employee at the rate of 3.7 hours per pay
period. Leave with pay is provided when employees are absent for health reasons. Upon
termination employees are entitled to 25 percent of accumulated sick leave with five
years of service and a minimum of 480 hours of accumulated sick leave. Upon retirement
or death, employees are entitled to 50 percent of accumulated sick leave up to a
maximum of 1,152 hours. Accrued sick leave benefits are recognized as a liability of the
Department.
Classification of Revenues and Expenses
Proprietary funds distinguish operating revenues and expenses fr.om nonoperating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund's principal ongoing
operations. The principal operating revenues of ~e Department's enterprise funds are
charges to customers for services. The Department also recognizes as operating revenue
the cost of connecting new customers to the system. Operating expenses for the enterprise
funds include the cost of services, administrative expenses, and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported as nonoperating
revenues and expenses.
Capital contributions consist of contributed capital assets and special charges that are
legally restricted for capital expenditures by state law or by the Board action that
established those charges.
Fund Equity
The Department currently has no reserved retained earnings.
Eliminations
The eliminations column represents entries made to eliminate inter-fund income and
expenditure transactions between the water and sewer funds for the purposes of
consolidated fmancial statements.
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(1)
Summary of Significant Accounting Policies, (Continued)
Prior Year Totals
2003
31,947,749
3,966,682
8,719,489
2,066,143
46.700.063
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Prior year data does not represent a complete presentation of prior year financial
information in accordance with generally accepted accounting principles but has been
presented for comparative purposes only.
(2)
Cash and Investments
Cash and investments are reported as follows in the statement of net assets:
Cash and investments
Restricted cash and investments:
Restricted for debt service
Restricted for capital-related fees
Restricted for consumer deposits
2004
$30,914,635
4,002,273
12,532,379
2,224,512
$49.673.799
Total
Cash and investments held by the Department consisted of the following at June 30:
2004 2003
$ 5,400 5,400
45,370 66,619
45,639,587 42,678,292
3,983,442 3,949,752
$49.673.799 46.700.063
Petty cash
Demand deposits
Internal investment pool with City of San Bernardino
Investments with fiscal agent
Total
The Department maintains substantially all of its operating funds in the City of San
Bernardino Treasury (an internal investment pool). These funds are reported at estimated
fair value. Investment earnings are proportionately shared by all funds in the internal
investment pool of the City.
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(2)
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
Cash and Investments, (Continued)
The Department is generally authorized under provisions of the City of San Bernardino's
investment policy and Section :;3601 of the Government Code to invest in investment
instruments so long as the investment is appropriate when investment objectives and
policies are taken into consideration. Investment instruments may include:
Securities of the U.S. Government or its agencies
Treasury notes, bonds
Negotiable certificates of deposit - (30% max)
Banker's acceptances - (40% max)
Commercial paper - (25% max)
Repurchase agreements
Local Agency Investment Fund (state pool) deposits - a special fund of
the California State Treasury through which local governments may pool
investments.
Money Market Accounts - (20% max)
Medium Term Corporate Notes - (30% max)
Under the California GO\fernment Code, a financial institution is required to secure
deposits made by state or local governmental units by pledging securities held in the form
of an undivided collateral pool. The market value of the pledged securities in the
collateral pool must equal at least 110% of the total amount deposited by the public
agencies. California law also allows financial institutions to secure Department deposits
by pledging first trust deed mortgage notes having a value of 150% of the secured public
deposits.
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(2)
Cash and Investments, (Continued)
Deposits of cities and other state or local governments are classified in three categories to
give an indication of the level of custodial risk assumed by the entity. Category 1
includes deposits that are insured or collateralized with securities held by the Department
or its agent in the Department's name. Category 2 includes deposits collateralized with
securities held by the pledging financial institution's trust department or agent in the
Department's name. Category 2 also includes deposits collateralized by an interest in an
undivided collateral pool held by an authorized Agent of Depository and subject to
certain regulatory requirements under State law. Category 3 includes deposits
collateralized with securities held by the pledging financial institution, or by its trust
department or agent but not in the Department's name. Category 3 also includes any
uncollateralized deposits.
As of June 30, 2004, deposits were categorized as follows:
Category Bank Carrying
Form of Deposit 1 2 3 Balance Amount
Demand deposits $32.715 32,715 45.370
Total deposits $32.715 32.715 45.370
As of June 30, 2003, deposits were categorized as follows:
Category Bank Carrying
Form of Deposit 1 2 3 Balance Amount
Demand deposits $57.153 57,153 66.619
Total deposits $57.153 57.153 66.619
The Department's investments are categorized as either (1) insured or registered or for
which the securities are held by the Department or its agent in the Department's name, (2)
uninsured and unregistered for which the securities are held by the broker's or dealer's
trust department or agent in the Department's name, or (3) uninsured and unregistered for
which the securities are held by the broker or dealer or by its trust department or agent
but not in the Department's name. Category 3 also includes securities held by the same
party (bond trustee) that acts as both the custodian and the counterparty for the
investment transaction. The Department's investments in the Local Agency Investment
Fund and money market funds have not been categorized because securities are not used
as evidence of the investments but are an ownership interest in pooled investment funds:
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(2)
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
Cash and Investments, (Continued)
As of June 30, 2004, investments were categorized as follows:
Form of Investment
1
Category
2
Investments held by fiscal agent:
U.S. Treasury notes
$
$
Investments not subject to categorization:
Mutual funds
Investment agreements
Internal investment pool with the City of San Bernardino
Total investments
As of June 30, 2003, investments were categorized as follows:
Category
2
Form of Investment
1
Investments held by fiscal agent:
U.S. Treasury notes
$
$
Investments not subject to categorization:
Mutual funds
Investment agreements
Internal investment pool with the City of San Bernardino
Total investments
Restricted Assets
3
66,208
66.208
J.
35,255
35.255
Carrying Amount
66,208
66,208
443,484
3,473,750
45,639,587
~49.623.029
Carrying Amount
35,255
35,255
440,747
3,473,750
42,678,292
$46.628.044
Cash and investments held and invested by fiscal agents on behalf of the Department are
pledged to payment or security of certain long~term debt issuances. Fiscal agents are
mandated by bond indentures as to the types of investments in which debt proceeds can
be invested. The investments predominantly consist of U.S. Treasury notes, mutual
funds, and investment agreements.
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(3) Capital Assets
Capital asset activity for the year ended June 30, 2004 is as follows:
Balance at Balance at
June 30. 2003 Additions Deletions June 30. 2004
Capital projects, not being depreciated:
Land and easements $ 15,172,773 8,350 (1,208) 15,179,915
Construction in progress 14,420,384 12.200.822 (5.062.253) 21.558.953
Total capital assets, not being depreciated 29.593.157 12.209.172 (5.063,461) 36.738.868
Capital assets, being depreciated:
Water rights, wells and pumping plants 38,885,688 10,497 (211,131) 38,685,054
Distribution systems 54,277,581 676,476 (348,640) 54,605,417
Building, plants and store yards 146,604,528 2,546,685 (199,325) 148,951,888
Tools and equipment 5,524,346 388,401 (54,470) 5,858,277
Autos 3,567,437 494,525 (166,000) 3,895,962
Office leasehold improvements 112,594 29,332 141,926
Office, computer, engineering equipment 3,408,419 102,040 (4,780) 3,505,679
Radio and interoffice communication equipment 262,865 153,905 416,770
Telemetry system and equipment 584,948 584,948
Miscellaneous 426.549 426.549
Total capital assets, being depreciated 253.654.955 4,401.861 (984.346) 257.072,470
Less accumulated depreciation for:
Water rights, wells and pumping plants (16,703,271) (1,111,467) 95,703 (17,719,035)
Distribution systems (20,412,881) (1,067,645) 326,346 (21,154,180)
Building, plants and store yards (50,448,222) (3,831,568) 2,094 (54,277,697)
Tools and equipment (3,333,461) (264,970) 35,715 (3,562,715)
Autos (1,883,469) (322,868) 96,850 (2,109,486)
Office leasehold improvements (58,465) (4,987) (63,451)
Office, computer and engineering equipment (1,486,989) (410,723) 3,694 (1,894,018)
Radio and interoffice computer equipment (235,835) (23,857) (259,693)
Telemetry system and equipment (141,898) (43,506) (185,404)
Miscellaneous (205,776) (11.054) (216.831)
Total accumulated depreciation (94.910.267) (7,092.645) 560,402 (101,442.510)
Total capital assets, being depreciated, net 158.744.688 (2.690.784) (423.944) 155.629.960
Net property, plant and equipment $188.337.845 9.518.388 (5.487.405) 192 368.828
Depreciation expense for the year was $7,094,250.
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(3) Capital Assets. (Continued)
Significant project commitments as of June 30, 2004 are as follows:
Project Cumulative Unexpended
Proiect Description Budltet Expenditures to date Commitments
Water Fund:
USEPA Network Groundwater
Cleanup Plan Modifications $ 625,052 625,052
USEP A Muscoy site assessment 513,807 513,807
USEP A Muscoy OU EP A wells
108-112 drill and equipment 3,115,400 2,355,109 760,291
Victoria Farms Mutual Water
Company 825,000 645,442 179,558
Ogden Transmission Main-
ERSI Project 3,170,812 1,603,924 1,566,888
Document Management System (DMS) 600,000 527,808 72,192
Sewer Fund:
Replacement of process control
Gates, aeration basin 1,187,254 994,879 192,375
(4) Operating Leases
The Department leases office space from the City of San Bernardino under a
noncancellable operating lease that terminates on March 31, 2007. The following is a
schedule of minimum lease payments as of June 30, 2003:
Office Space
For the year ending June 30 Water Sewer Total
2005 $156,487 21,339 177,826
2006 156,487 21,339 177 ,826
2007 117.365 16.004 133.369
~430.339 58.682 489.021
Rent expense was $177,826 and $176,354 at June 30, 2004 and 2003, respectively.
25
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(5)
Long-Term Debt
The following is a summary of changes in long-term debt obligations for the year ended
June 30, 2004:
Amounts Amounts Due
Balance at Balance at Due Within Beyond
Julv 1. 2003 Additions Reductions June 30. 2004 One Year One Year
Notes payable $24,051,136 10,000,000 (1,670,365) 32,380,771 2,142,442 30,238,329
Certificates of
Participation 33,150,000 (1,650,000) 31,500,000 1,730,000 29,770,000
Less deferred amounts:
Unamortized discounts (296,393) 25,123 (271,270) (24,696) (246,574)
Bonds payable 3,710,000 (1,165,000) 2,545,000 1,200,000 1,345,000
Less deferred amounts:
Unamortized discounts
and advance refunding (117.174) 57.338 (59.836) (39.360) (20A 76)
$60 497 569 10000000 (4402904) 66 094 665 5 008 386 61086279
Notes Payable
California Infrastructure and Economic Development Bank
Maturity date: 2022
Interest rate: 3.34%
Repayment provisions: Annual principal and interest
payments ranging from $776,905 to $750,319
Balance
$10,000,000
San Bernardino Valley Municipal Water District
Original amount: $5,084,729
Maturity date: 2013
Interest rate: 7.25%
Repayment provisions: Annual principal and interest
payments of $456,250
Balance
2,941,218
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(5)
Long-Term Debt. (Continued)
State Water Resources Control Board (SWRCB)
Original amount: $4,015,216
Maturity date: 2011
Interest rate: 3.3%
Repayment provisions: Annual principal and interest
payments of $279,293
Balance
1,720,568
State Water Resources Control Board (SWRCB)
Original amount: $25,978,599
Maturity date: 2016
Interest rate: 2.8%
Repayment provisions: Annual principal and interest
payments of$1,761,739
Balance
Less current portion
Long-term portion
17.718.985
32,380,771
(2.142.442)
~30.238.329
On March 18, 2004, the California Infrastructure and Economic Development Bank
(CIEDB) issued its Infrastructure State Revolving Fund Revenue Bonds to provide
funding for a portion of the costS of Phases I and n of the Water System Reliability
Schedule of Improvements including transmission mains, booster stations, and a
reservoir. Installment Sale Agreement No, 02-027 between the City of San Bernardino
Municipal Water Department and the CmDB was pledged as security for the bonds. The
Department has covenanted to set aside water revenues in an enterprise fund to make
installment payments on the bonds as due.
The State Revolving Fund loans between the State Water Resources Control Board and
the Santa Ana Watershed Authority provided funding for the construction of the San
Bernardino/Colton Rapid Infiltration Extraction (RIX) Project. The loan agreements were
amended in April 2001 to transfer the loan obligations to the successors in interest, being
the City of San Bernardino Board of Water Commissioners, and the City of Colton. The
loans require the Department to establish a Wastewater Capital Reserve Sinking Fund
(WCRF) for expansion, major repair or replacement of wastewater treatment works at
one-half of one percent of the total loan amount over a period of ten years. The
Department has decided to use the revenues of the Sewer Utility Fund towards repayment
of the loans.
27
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(5)
Long-Term Debt, (Continued)
Certificates of Participation
Interest
Rates
Annual
Principal
Installments
Balance
Issue
Date
Maturity
Date
Original
Amount
1998 Refinancing Sewer 3.95%
to
5.00%
1998
2017
$36,230,000 $1,505,000
to
$3,220,000 $31,500,000
Less unamortized discount
(271.270)
31,228,730
Less current portion payable from
restricted assets, net of unamortized
discount of $24,696
(1,705,304)
Long-term portion, net of unamortized
discount of $246,574
$29.523.426
It has been determined that the amount of $24,480 was due under Internal Revenue Code
Section 148(f)(4)(B) for the temporary investments of the 1998 Refinancing Sewer
Treatment Plan Certificates of Participation and for arbitrage rebate.
In 1998, the Department refinanced the acquisition and construction of certain capital
improvements which were originally financed by the 1992 Sewer Certificates of
Participation, dated February I, 1992. The refinancing was accomplished by issue of the
1998 Refunding Sewer Revenue Certificates of Participation in the amount of
$36,230,000. The proceeds of the 1998 Certificates were invested and used to pay interest
on the 1998 issue until February 1, 2001. The 1992 Certificates were called on
February 1,2001 at a prepayment premium of two percent. The funds from the 1998 issue
were used to payoff the 1992 Certificates. The Department will now begin paying the
installment payments on the 1998 Certificates from the net revenues on the Sewer System.
The Department has covenanted that it will budget amounts sufficient to make all
installment payments due.
The required reserve for the 1998 Refunding Sewer Revenue Certificates of Participation
is $1,811,500. As of June 30, 2004, the reserve was fully funded.
Costs related to the issuance of the 1998 Certificates have been paid out of the proceeds of
the issue. .
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(5)
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
Long-Term Debt, (Continued)
Bonds Payable
Interest
Rates
1998 Water and
Wastewater
Revenue Bonds
3.75%
to
4.40%
Waterworks Bonds,
Series C
7.75%
Total bonds payable
Less unamortized discount
and deferred advance
refunding charge
Less current portion payable from
restricted assets, net of unamortized
discount and deferred advance
refunding charge of $39,360
Long-term portion, net of unamortized
discount and deferred advance
refunding charge of$20,476
(Continued)
Issue
Date
Maturity
Date
Original
Amount
Annual
Principal
Installments
Balance
1998
2005
1988
2013
$8,610,000 $860,000
to
$1,260,000 $2,455,000
$150,000 $5,000
to
$15,000 90,000
$2,545,000
(59,836)
2,485,164
(1,160,640)
$1.324.524
The Department has covenanted to set aside Water revenues to make installment
payments on the Bonds as due. A financial guaranty insurance policy has been issued,
and accordingly, no cash reserve balance is required to be established.
29
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MUNICIPAL WATER DEPARTMENT I
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements I
(Continued)
I
(5) Long-Term Debt, (Continued) I
The annual requirements to amortize long-term debt subsequent to June 30, 2004 are as
follows:
June 30 Principal Interest Total I
Notes payable 2005 $ 2,142,442 1,086,543 3,228,985 I
2006 2,216,594 1,054,755 3,271,349
2007 2,293,717 976,348 3,270,065
2008 2,373,955 894,783 3,268,738 I
2009 2,457,461 809,906 3,267,367
2010-2014 12,343,972 2,676,508 15,020,480
2015-2019 6,450,170 868,184 7,318,354
2020-2024 2,102,460 154,735 2,257,195 I
32,380,771 8,521,762 40,902,533
Certificates of participation 2005 $ 1,730,000 1,506,118 3,236,118 I
2006 1,815,000 1,434,323 3,249,323
2007 1,910,000 1,357,185 3,267,185 I
2008 2,010,000 1,275,055 3,285,055
2009 2,125,000 1,174,555 3,299,555
2010-2014 12,570,000 4,251,805 16,821,805
2015-2019 9,340,000 954,163 10,294,163 I
31 ,500,000 11 ,953,204 43,453,204
Bonds payable 2005 $ 1,200,000 63,109 1,263,109 I
2006 1,270,000 34,308 1,304,308
2007 10,000 5,812 15,812
2008 10,000 5,038 15,038 I
2009 10,000 4,263 14,263
2010-2014 45,000 9,298 54,298
2,545,000 121,828 2,666,828 I
$66.425.771 20.596.794 87 .022.565 I
Compensated Absences
The Department's policies relating to compensated absences are described in note 1. This I
liability, amounting to $1,905,220 and $1,858,691 at June 30, 2004 and June 30, 2003,
respectively, will be paid in future years from future resources.
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(5) Long-Term Debt, (Continued)
Prior Year Defeasance of Debt
As of June 30, 2004, approximately $2,373,000 of outstanding 1990 Water Facilities
Certificates of Participation are consider~d in substance defeased through the issuance of the
Series 1998A Water and Wastewater Revenue Bonds (see Bonds Payable) and are not
included as a liability of the Department in these financial statements.
(6) Defined Benefit Pension Plan
Qualified employees are covered under a multiple-employer contributory retirement plan
maintained by an agency of the State of California, California Public Employees'
retirement System (PERS).
Plan Description
The Department is a part of the City of San Bernardino. The City contributes to PERS,
an agent multiple-employer public employee retirement system defined benefit pension
plan administered by PERS. All employees who work 1,000 hours or more are eligible to
participate. The plan provides retirement and disability benefits, annual cost-of-living
adjustments, and death benefits to plan members and beneficiaries. Benefit provisions are
established by state statutes, as legislatively amended, within the Public Employees'
Retirement Law. PERS issues a separate comprehensive annual financial report that
includes financial statements and required supplementary information. Copies of the
PERS annual financial report may be obtained from the PERS Executive Office, 400 "P"
Street, Sacramento, California 95814. PERS also issues a separate report on the actuarial
valuation of the plan of the City of San Bernardino, which is available at the Department.
Additional information regarding the City's participation in PERS can be found in the
City's financial statements.
(7) Post-Retirement Health Care Benefits
In addition to the pension benefits described in note 6, the Department provides the
minimum monthly premium for post-retirement medical-health care benefits to each
retiree that meets the eligibility criteria. for coverage under a department group health
insurance plan. The retirees may continue to participate in the health care plan provided
the retirees make the arrangements for premiums to be paid with the group plan
administrator. This benefit is dependent upon the continued approval of the insurance
carriers.
31
2004 2003
$ 39,104 107,545
42,417 38,730
19,438 20,808
151,870 149,595
5,188 5,076
42,303
3,400 2,400
1,698,445 1,974,328
3.396 2.474
$1.963.258 2.343.259
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(7) Post-Retirement Health Care Benefits. (Continued)
For those retirees who retired on or after attaining age 55 with a minimum of 15 years of
service, the Department's contribution is paid directly to the group plan administrator for
a portion of the premium up to $443 per month. Premium amounts in excess of the
contributioh are paid by the retirees. Twenty-five Water Utility retirees and three Sewer
Utility retirees are receiving the benefit. For those retirees who are not eligible to receive
the monthly contribution and currently enrolled in the Department health group insurance
plan, the Department pays to the group plan administrator the amount equivalent to the
then current minimum eligibility amount from the previous health plan coverage with the
California Public Employees Retirement System. This amount is currently $32 per
month effective January 1, 2004 and is anticipated to escalate annually. Currently,
twenty-five retirees are receiving this benefit. During the year ended June 30,2004, and
June 30, 2003, expenses of$107,195 and $70,065, respectively, were recognized for post-
retirement health care benefits and administrative costs for the Water and Sewer Utilities.
(8). Related Party Transactions
Following is a summary of transactions and balances with the City of San Bernardino and
its various departments as of and for the years ended June 30, 2004 and 2003:
Revenues
City of San Be@ardino
Revenue from water charges
Revenue from sewer charges
Revenue from geothermal charges
Billing and collection charges - refuse
Billing and collection charges - storm drain
Utility billing system - license/hardware
Cost reimbursement
Interest income
Economic Development Agency
Revenue from geothermal charges
Total revenue from related parties
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(8) Related Party Transactions. (Continued)
Expenses 2004 2003
City of San Bernardino
1 0% water revenue $1,957,748 1,888,704
Sewer collection system maintenance 1 ,252,287 1 ,222,992
Worker's compensation - administration charges 102,172 77,408
Printing services 11,327 16,663
Postage 10,661 11,955
City Hall rent 177,827 . 176,353
Phone charges 123,225 109,511
Refuse disposal service 70,321 83,549
Civil service 45,000 45,000
Legal services/affirmative action 105,000 105,000
Rideshare coordination 3,000 3,000
Employee assistance 6,200 15,351
Data processing services 373,400 417,800
Engineering and other services 13,740 8,793
Miscellaneous charges 14,891 8,771
Economic DeveloDment Agencv
Consulting services 1.091
Total expenses to related parties $4.266.799 4.191.941
Receivables
City of San Bernardino
Finance Department $ 762.913 647.674
Total receivables from related parties $ 762.913 647.674
Payables
City of San Bernardino
Finance Department $ 707.860 908.217
Total payables to related parties $ 707.860 908.217
The Department collects and transmits to the City of San Bernardino ten percent of
collections on gross water revenue and one hundred percent of collections on sewer
collection system maintenance charges from Sewer Utility customers. These remittances
are included in the related party expense shown above.
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(9)
Joint Venture
West End Water Development, Treatment and Conservation Joint Powers Authority
On August 15, 1990, the City of San Bernardino joined the West End Water
Development, Treatment and Conservation Joint Powers Authority (WEJPA) as a
financing vehicle for construction of water facilities. A separate three-member board
consisting of one representative from each agency's governing body governs the WEJP A.
The financial statements for the WEJP A are available at the Department. The
Departments' investment in the joint venture is included in the property, plant, and
equipment of the Department. The financial statements ofWEJPA are available at West
Valley Water District, 855 West Base Line, Rialto, California 92736. The joint venture is
not experiencing fiscal stress.
San Bernardino Public Safety Authority
On April 1, 1968, the City of San Bernardino and the County of San Bernardino formed
the San Bernardino Public Safety Authority (PSA), a joint powers authority, as a
financing vehicle to construct (1) public safety buildings and (2) improvements to the
wastewater treatment plant.
According to the original joint powers agreement, title to the PSA-constructed wastewater
treatment facility will automatically vest in the City with the residual cash being
transferred to the City after the bonds are repaid. A separate board consisting of three
members, one appointed by the San Bernardino City Council and two members appointed
by the San Bernardino County Board of Supervisors, governs PSA. Effective with the
transfer of the Sewer Utility to the Department, all the assets and activities of PSA related
to the wastewater treatment plant were also transferred to the Department pursuant to the
enabling resolution of October 1973 and are included in the property, plalit, and
equipment of the Sewer Utility. The fmancial statements of PSA are available at the
Clerk of the Board of Supervisors, County of San Bernardino, 385 N. Arrowhead
Avenue, 2nd Floor, San Bernardino, California 92402. The joint venture is not
experiencing fiscal stress.
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(9) Joint Venture, (Continued)
Colton/San Bernardino Regional Tertiary Treatment and Water Reclamation Authority
On August 2, 1994, the City of San Bernardino, through the Department, formed a joint
powers authority with the City of Colton to construct, operate, use, and maintain tertiary
wastewater treatment, disposal, and water reclamation systems, including the Regional
Rapid Infiltration and Extpction Facility (RIX). The Colton/San BerIUIl"dino Regional
Tertiary Treatment and Water Reclamation Authority is governed by a separate board
consisting of four members, two of whom are appointed by the City of San Bernardino
through the Department's Board of Water Commissioners and two appointed by the City
Council of the City of Colton. Construction of the project was administered by the Santa
Ana Watershed Project Authority (SA WPA) and was substantially completed during
1996. Administration and operation of the project was turned over to the Colton/San
Bernardino Regional Tertiary Treatment and Water Reclamation Authority at that time.
Title to the property will be transferred upon final resolution of construction issues. Each
of the cities, San Bernardino and Colton, has - an undivided interest in the real property
and any related debt of the RIX project based on a split of 80 percent and 20 percent,
respectively. The Departments' investment in the joint venture is included in the
property, plant, and equipment of the Department. The financial statements are available
at the Department. The joint venture is not experiencing fiscal stress,
(10) Construction and Other Significant Commitments
Commitments
Commitments in the form of signed contracts for costs to complete construction projects
or other improvements amounted to $2,874,938 and $396,567 at June 30, 2004 and
June 30, 2003, respectively.
Risk Management
The Department's risk management activities are recorded in both of the utility funds.
Significant losses are covered by commercial insurance for all major events except
workers' compensation, for which the Department retains risk of loss in conjunction with
the City of San Bernardino's risk management program for workers' compensation. For
insured events, there have been no significant reductions in insurance coverage.
Settlement amounts - have not exceeded insurance coverage for the current year or the
three prior years.
35
Liability balance, June 30, 2003
Claims and changes in estimates
Claim payments
Liability balance, June 30, 2004
aggregate liabilities for the
Total
$527,579
176,854
(259,059)
i445.374
aggregate liabilities for the
Total
$373,615
412,302
(258,338)
$527 .579
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(10) Construction and Other Significant Commitments
Workers' Compensation Claims Liabilities
The Department records an estimated liability for workers' compensation. Claims
liabilities are based on estimates of the ultimate cost of reported claims (including future
claim adjustment expenses) and an estimate for claims incurred but not reported based on
historical experience. Workers' compensation unpaid claims liabilities are not discounted.
The following represents the changes in approximate
Department for the year ended June 30, 2004:
The following represents the changes in approximate
Department for the year ended June 30, 2003:
Liability balance, June 30, 2002
Claims and changes in estimates
Claim payments
Liability balance, June 30, 2003
(11) Contingencies
Federal and State Grants
Amounts received or receivable from grant agencies are subject to audit and adjustment
by grantor agencies, principally the federal and state governments. Any disallowed
claims, including amounts already collected, may constitute a liability of the Department.
The amount, if any, of expenditures which may be disallowed by the grantor cannot be
determined at this time although the Department expects such amounts, if any, to be
immaterial.
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'M-r ~ . q "11"
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(11) ContinRencies, (Continued)
Litigation
In 1996, the Department filed a complaint against the United States of America,
Department of the Army to recover damages, response costs and other available remedies
relating to contamination alleged to have originated at a World War II Army installation
known as Camp Ono. The litigation is in the settlement stage. The remaining act to
settle is for the United States to file a motion with the court for entry of judgment. At the
present time, a trial date is set for February 14,2005. If the motion for entry of judgment
is not made and approved prior to February 14,2005, the court has stated it expects trial
to commence, and this could have an affect on settlement prospects. The settlement
addresses ownership of the improvements being constructed and constructed by EP A, and
provides for the payment of $69 million to operate the remedy and defer costs of
construction of improvements necessary for the later operation of the remedy. If the
matter is not settled, ownership of the improvements and amounts available for future
construction and operation of the remedy will need to be determined by the court, if the
court holds the United States liable. Assets reported on the accompanying balance sheet
at June 30, 2004 include approximately $8 million of improvements subject to EP A
reimbursement. An additional $20 million (approximate amount) of improvements
constructed directly by the EP A are not reported on the accompanying balance sheet.
The Department is a defendant in various other lawsuits. Although the outcome of these
lawsuits is not presently determinable, it is the opinion of the Department's counsel that
resolution of these matters will not have a material adverse effect on the financial
condition of the Department.
(12) Net Assets
Amounts invested in capital assets net of related debt is calculated as follows:
Add back:
Portion of debt offsetting debt service reserves
Water Sewer
$79,831,406 112,537,422
(22,380,771)
(2,485,164) -
(31,228,730)
443,484 3,539,958
$77.789.726 62.467 .879
Total capital assets (net of accumulated depreciation
and accumulated amortization)
Less related debt:
Notes payable
Water bonds payable Certificates of participation
37
MUNICIPAL WAlERDEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Basic Financial Statements
(Continued)
(12)
Net Assets, (Continued)
Amounts restricted for debt service is calculated as follows:
Cash and investments with fiscal agent restricted for
debt service
Less portion of debt offsetting unexpended debt
proceeds held in the debt service amounts
38
Water
$443,484
(443,484)
$
Sewer
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3,539,958
(3,539,958)
1 --'"~""~!Fr",",pc'''''---''"r' >
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SUPPLEMENTARY INFORMATION
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Board of Water Commissioners and Organization
Year Ended June 30, 2004
MAYOR OF THE CITY OF SAN BERNARDINO
Judith Valles
BOARD OF WATER COMMISSIONERS
Name
Office
B. Warren Cocke
Toni Callicott
Martin A. Matich
Judith W. Battey
Norine 1. Miller
President
Commissioner
Commissioner
Commissioner
Commissioner
ADMINISTRATION
Bernard C. Kersey
General Manager
Stacy R. Aldstadt
Deputy General Manager
W. William Bryden, P.E.
Director, Water Utility
John A. Perry, P.E.
Director, Water Reclamation
David S. Erickson
Director, Administration and Finance
Jon K. Turnipseed, CSP
Safety Program Manager
ORGANIZATION
The City of San Bernardino Municipal Water Department was formed in 1904 under the Charter
of the City of San Bernardino. The Department is governed by a Board of Water Commissioners
who are appointed by the Mayor of the City of San Bernardino. The Charter gives the Board of
Water Commissioners semi-autonomous authority to govern the Department independent of the
City Council. The Department operates two enterprise funds: the Water Utility Enterprise Fund
and the Sewer Utility Enterprise Fund. Water service encompasses the City, with the exception
of the east end, which is serviced by the East Valley Water District. Sewer service encompasses
all of the City of San Bernardino, East Valley Water District, City of Loma Linda, the former
Norton Air Force Base and Patton State Hospital.
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1,000,000
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Schedule of Insurance Coverage
As of Jooe 30, 2004
Insurance covemge for the Department at Jooe 30, 2004 is summarized below:
Pacific Indemnity Company, Policy #78357989; boiler and machinery
coverage - July I, 2003 to July I, 2004
Per occurrence limit
$ 10,000,000
Multiple insurance companies and policies; all-risk property coverage, including
earthquake and flood - July 1, 2003 to July I, 2004
Primary limit:
Commonwealth Insurance Company, Policy #US4570
Excess limits:
Great American E & S Insumnce Company, Policy #CGP5663757
Arch Specialty Insurance Company, Policy #72ESP2591300
Clarendon Insurance Company, Policy #PCA11 070
Essex Insurance Company, Policy #ESPW2228
Royal Surplus Lines Company, Policy #K2HD407933
AXA ReProperty Casualty, Policy #AXA331597
Royal Surplus Lines Company, Policy #K2HD407932
5,000,000
5,000,000
5,000,OQO
10,000,000
10,000,000
10,000,000
5,000,000
75,000,000
American Alternative Insurance Co., Policy #SDISSK9100525; general
liability, including bodily injury and property damage, personal injury and
advertising injury, professional liability and wrongful acts -
Jooe 30, 2003 to Jooe 30, 2004
Bodily injury and property damage
Per occurance
Aggregrate
Damages to premises rented to you
Anyone premises
Personal injury and advertising injury
Per person
Aggregrate
Employee benefits liability
Per person
Aggregrate
Professional liability
Per claim
Aggregrate
Wrongful acts
Per claim
Aggregrate
1,000,000
3,000,000
1,000,000
3,000,000
1,000,000
3,000,000
1,000,000
3,000,000
1,000,000
3,000,000
American Alternative Insurance Co., Policy #SDISSK9100525; business
automobile coverage - June 30,2003 to Jooe 30 ,2004
Owned automolbile liability limit
Hired/nonowned automobile liability
Hired car physical damage
Uninsured motorist liability
Medical
1,000,000
1,000,000
50,000
1,000,000
5,000
(Continued)
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Schedule of Insurance Coverage
(Continued)
Multiple insurance companies and policies; excess liability coverage -
June 30, 2003 to June 30, 2004
Primary limit:
American Alternative Insurance Company
Excess limits:
Evanston Insurance Company
10,000,000
9,000,000
American International Specialty Lines, Policy #PLS2673997; pollution
liability - October 30,2001 to October 30,2004 (each incident/aggregate)
Third-Party Claims, On-Site Bodily Injury and Property Damage
Third-Party Claims, Off-Site Clean-Up Resulting from New Conditions
Third-Party Claims, Off-Site Bodily Injury and Property Damage
5,000,000
5,000,000
5,000,000
Travelers, Policy #104204117; employment practices liability -
October 30, 2003 to October 30, 2004
1,000,000
Hartford Fire Insurance Company, Policy #72BPEAK.4746; crime
coverages - March 25, 2000 until cancelled
Employee theft (each incident)
Theft, disappearance and destruction
250,000
250,000
The Department is self-insured through the City of San Bernardino for workers' compensation liability
and material damage to rolling stock.
43
MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Schedule of Water System Demographics
Water ProductionlUtilization (Cubic Feet)
Water utilization (shown in cubic feet)
Water sold to direct customers
Water sold to other agencies
Water sold to or used by City*
2003-2004 2002-03 2001-02
1,965,264,900 1,785,563,100 1,848,730,500
38,268,704 86,751,578 120,061,997
69,701,161 76,133,820 93,843,373
2,073,234,765 1,948,448,498 2,062,635,870
180,575,623 178,266,332 168,368,230
8.012% 8.382% 7.547%
2,253,810,388 2,126,714,830 2,231,004,100
Loss and other factors
Loss and other factors percentage
Total water sold, used or lost
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MUNlCIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA ,
Schedule of Water Production
June 30, 2004
2003-2004 2002-2003 2001-2002
Total Water Total Water Total Water
Per 1,000 Per 1,000 Per 1,000
Amount Cubic Feet Amount Cubic Feet Amount Cubic Feet
Summary of total water
production and purchlllled cost
Total production, purchases, and 2,253,810 2,126,715 2,231,004
supplemental
Production and pumping expenses * $5,570,502 $5,659,161 $5,074,987
Total expense before depreciation 5,570,502 $2.47159 5,659,161 $2.66099 5,074,987 $2.27475
Depreciation of plant facilities 1,034,982 0.45921 1,043,319 0.49058 915,121 0.41018
Totals $6,605,484 $2.93081 $6,702,480 $3.15156 $5,990,108 $2.68494
Summary of costs per acre foot
Acre feet 51,740.367 48,822.657 51,216.808
Cost per acre feet before
depreciation $107.66 $115.91 $99.09
Cost per acre feet including
depreciation of plant facilities $127.67 $137.28 $116.96
45
MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Schedule of Water Rates
Water rates are summarized below:
Single Family Dwelling Units
Meter
Size
Minimum Monthly Charge
Effective Dates
January I, 2002 April I, 2000
Cubic Foot
Allowance
5/8"
3/4"
I"
1-1/2"
2"
3"
4"
6"
8"
10"
12"
$8.05
$10.75
$12.85
$23.05
$32.20
$54.75
$92.95
$167.35
$251.00
$313.75
$376.55
$7.60
$10.10
$12.15
$21.75
$30.35
$51.65
$87.70
$157.90
$236.80
$296.00
$355.25
500
500
500
500
500
500
500
500
500
500
500
All water usage in excess of 500 cubic feet per month is at the rate of $0.88 and $0.83 per 100 cubic
feet effective January 1,2002, and April 1, 2000, respectively.
Multiple Family Dwelling Units
Includes duplexes, triplexes, apartments, mobile home parks, condominiums, and town homes served by
one or more master meters.
The minimum monthly charge for the first dwelling unit is the same as a single family dwelling with each
additional dwelling unit served by the meter at the rate of $3.35 and $3. 15 per unit per month effective
January 1,2002, and April 1, 2000, respectively.
The cubic foot allowance for the first dwelling unit is 500 cubic feet per month with each additional
dwelling unit served by the meter at the rate of 200 cubic feet per month.
All water usage in excess of the allowance per month is at the rate of$0.88 and $0.83 per 100 cubic feet
effective January 1, 2002, and April 1, 2000, respectively.
(Continued)
46
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Schedule of Water Rates
(Continued)
Commercial, Landscape, and Industrial Users
Meter
Size
Minimum Monthly Charge
Effective Dates
January 1, 2002 April 1, 2000
5/8"
3/4"
I"
1-1/2"
2"
3"
4"
6"
8"
10"
12"
$8.05
$10.75
$12.85
$23.05
$32.20
$54.75
$92.95
$167.35
$251. 00
$313.75
$376.55
$7.60
$10.10
$12.15
$21.75
$30.35
$51.65
$87.70
$157.90
$236.80
$296.00
$355.25
All water usage per month is at the rate of$0.88 and $0.83 per 100 cubic feet effective January 1,2002,
and April 1 , 2000, respectively with no minimum allowance.
Municipal Water Users
Effective July 1, 1995, water furnished for municipal use to the City of San Bernardino is exempt from
all water service charges as long as water usage does not exceed 110 percent of the fiscal year
1994/1995 water usage. Water usage in excess of this amount is charged at $0.288 per 100 cubic foot.
Water furnished for use by the City of San Bernardino for landscape assessment districts or funded from
other than the City's general fund is charged at $0.288 per 100 cubic foot. All other rates remained
unchanged.
Energy Surcharge
Effective July 5, 2001, all consumption, except municipal, shall be charged $0.05 per cubic foot to
offset the increased power costs.
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MUNICIPAL WATER DEP ARlMENT OF TIlE CITY OF SAN :BERNARDINO, CALIFORNIA I
Schedule of Sundry Water Statistical Data
I
2003-2004 2002-2003 I
Production Percent Production Percent
Pumping Plants in Cubic Feet Production in Cubic Feet Production I
Antil Plant 82,571,200 3.79% 55,968,400 2.70%
Baseline & California Well 20,784,900 0.95% 16,895,500 0.82%
Cajon Boulevard Plant 98,009,400 4.50% 94,775,100 4.58% I
Cajon Pass & Vincent Wells 38,443,100 1.76% 72,855,700 3.52%
Devil Canyon Plant 123,324,880 5.66% 117,012,030 5.65%
EP A Wells - Newmark OU 565,447,170 25.93% 502,864,300 24.28% I
40th Street Well 1,676,100 0.08% 1,569,000 0.08%
Gilbert Street Well 83,912,300 3.85% 34,258,200 1.65%
Kenwood Wells 166,971 ,400 7.66% 62,409,200 3.01% I
LeRoy Street Well 60,969,500 2.80% 101,743,600 4.91%
Lynwood Well 53,509,860 2.45% 95,388,500 4.61% I
Lytle Creek Plant 31,152,100 1.43% 53,527,500 2.58%
Mallory Well 21,317,100 0.98% 10,662,600 0.51%
Mill & "D" Streets Well 14,140,800 0.65% 16,517,300 0.80% I
Newmark Plant 158,321,800 7.26% 174,258,800 8.42%
19th Street Plant 132,848,000 6.09% 182,126,500 8.80%
Olive & Garner Well 115,058,398 5.28% 47,612,000 2.30% I
Perris Hill Plant 17,280,200 0.79% 18,211,200 0.88%
7th Street Well 37,796,200 1.73% 4,544,200 0.22%
Sierra Way & 16th Street Wells 205,100 0.01% 422,900 0.02% I
lOth & "J" Street Well 129,074,500 5.92% 107,610,600 5.20%
30th & Mountain View Wells 122,995,600 5.64% 187,466,000 9.05%
27th Street Well 31,616,500 1.45% 11,021,500 0.53% I
Waterman Avenue Plant 72,891,380 3.34% 101,031,700 4.88%
Total Water Produced 2,180,317,488 100.00% 2,070,752,330 100.00% I
Purchased water -
East Valley Water District 73,492,900 55,962,500 I
Total Water Production 2,253,810,388 100.00% 2,126,714,830 100.00%
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I 2001-2002 2000-2001 1999-2000
Production Percent Production Percent Production Percent
in Cubic Feet Production in Cubic Feet Production in Cubic Feet Production
I 70,400,200 3.28% 84,590,700 4.21% 108,724,200 5.02%
21,749,200 1.01% 16,913,200 0.84% 30,763,900 1.42%
I 112,510,200 5.24% 110,704,500 5.50% 178,164,100 8.23%
68,773,600 3.20% 100,532,800 5.00% 73,289,300 3.38%
109,735,500 5.11% 90,029,660 4.49% 130,228,570 6.01%
I 593,338,500 27.63% 595,230,100 29.59% 651,768,900 30.09%
3,085,700 0.14% 3,669,800 0.18% 5,607,000 0.26%
49,751,700 2.32% 1,483,900 0.07% 433,200 0.02%
I 117,803,100 5.49% 96,952,100 4.82% 84,710,800 3.91%
29,554,700 1.38% 30,756,500 1.53% 15,075,100 0.70%
109,885,900 5.12% 62,404,600 3.10% 62,890,300 2.90%
I 55,204,600 2.57% 85,137,800 4.23% 110,895,200 5.12%
13,922,100 0.65% 16,497,900 0.82% 21,138,300 0.98%
I 16,969,400 0.79% 19,177,500 0.95% 23,771,900 1.1 0%
185,990,500 8.66% 159,374,100 7.92% 134,181,500 6.20%
160,675,200 7.48% 150,736,400 7.49% 146,759,900 6.78%
I 102,798,600 4.79% 82,548,300 4.10% 89,972,100 4.15%
11,699,500 0.54% 1,637,900 0.08% 0 0.00%
6,108,700 0.28% 3,255,400 0.16% 487,300 0.02%
I 205,500 0.01% 162,600 0.01 % 480,200 0.02%
142,552,700 6.64% 126,792,300 6.30% 114,075,400 5.27%
78,513,900 3.66% 71,341,400 3.55% 77,771,300 3.59%
I 15,143,400 0.71% 14,487,800 0.72% 193,100 0.01%
70,918,400 3.30% 87,412,200 4.34% 104,445,500 4.82%
I 2,147,290,800 100.00% 2,011,829,460 100.00% 2,165,827,070 100.00%
I 105,745,800 89,351,500 83,879,400
2,253,036,600 100.00% 2,255,178,570 100.00% 2,170,069,065 100.00%
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
WATER UTILITY
Schedule of Service Area and Customers
Number of Active Connections by Classification of User
as of June 30, 2000 through June 30, 2004
User Type 2004 2003 2002 2001 2000
Single family residential 34,075 33,762 33,512 32,991 32,550
Multiple family residential 2,929 2,886 2,839 2,792 2,793
Commercial/institutional 3,761 3,752 3,728 3,703 3,693
Other 1,223 1,154 1,139 1,148 1,081
Total all users, active 41,988 41,554 41,218 40,634 40,117
Revenue by Class of User
Fiscal Year 2003-2004
User Class
Fiscal Year
Revenue
Percentage of
Annual Revenue
Single family residential
Multiple family residential
Commercial/industrial
Other and unmetered
$10,486,591
3,358,579
5,087,108
580,163
53.74%
17.21%
26.07%
2.97%
Total all users
$19,512,441
100%
Largest users: The System had no customer accounting for more than three percent of the
revenues for the fiscal year 2003-2004
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Schedule of Sewer Rates and Statistics
Classification
Regional
Facilities
and
Treatment
Charge
Collection
System
Charge
Total monthly
City Charge
Rates effective as of June I, 1995:
Residential
Commercial:
Multi-family, mobile home parks
(4 or more units)
Retail, commercial, light industrial
(non-office, bakeries, markets,
theaters, dry cleaners)
Auto repair, car wash
Offices, motels (without restaurants)
Restaurants, hotels (hoteVmotels
with restaurants)
Laundromats
Hospitals, convalescent homes
Schools, churches, nursery schools,
daycares
Industry
$13.25 per month $1.35 per month $14.60
$0.75/HCF $0.15/HCF $0.90/HCF
$l.l O/HCF $0.15/HCF $1.25/HCF
$1.20/HCF $O.l5/HCF $1.35/HCF
$0.95/HCF $0.15/HCF $ 1.1 O/HCF
$1.70/HCF $0. I 5/HCF $1.85/HCF
$0.90/HCF $0.15/HCF $1.05/HCF
$0.80/HCF $0.15/HCF $0.95/HCF
$0.50/HCF $0.15/HCF $0.65/HCF
$826.67/MG $264.22/1,000 LBS BOD
(Discharge flow) $324.28/1,000 LBS SS
Rates effective as of January I, 1994:
Residential
Commercial:
Multi-family, mobile home parks
(4 or more units)
Retail, commercial, light industrial
(non-office, bakeries, markets,
theaters, dry cleaners)
Auto repair, car wash
Offices, motels (without restaurants)
Restaurants, hotels (hoteVmotels
with restaurants)
Laundromats
Hospitals, convalescent homes
Schools, churches, nursery schools,
daycares
Industry
$13.55 per month $1.35 per month $14.90
$0.80/HCF $0. I 5/HCF $0.95/HCF
$1.15/HCF $0. I 5/HCF $1.30/HCF
$1.25/HCF $0.15/HCF $1.40/HCF
$I.OO/HCF $0.15/HCF $1.15/HCF
$1.75/HCF $0.15/HCF $1.90/HCF
$0.95/HCF $0. I 5/HCF $1.10/HCF
$0.85/HCF $0. I 5/HCF $I.OO/HCF
$0.55/HCF $0.15/HCF $0.70/HCF
$908.33/MG $264.22/1,000 LBS BOD
(Discharge flow) $324.28/1,000 LBS SS
HCF = Per 100 cubic feet of water usage.
MG = Per million gallons of water usage.
BOD = Per 1,000 pounds of biological oxygen demand.
SS = Per 1,000 pounds of suspended solids.
(Continued)
51
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Schedule of Sewer Rates and Statistics, (Continued)
June 30, 2004
Residential Nonresidential Total
Number of connections
City of San Bernardino $ 31,553 5,240 36,793
East Valley Water District 17,265 1,128 18,393
City of Lorna Linda 4,061 566 4,627
$ 52,879 6,934 59,813
Annual billings
City of San Bernardino
East Valley Water District
City of Lorna Linda
$5,526,450
2,970,140
617,813
$5,247,261
1,694,656
726,191
$10,773,711
4,664,796
1,344,004
$9,114,403
$7,668,108
$16,782,511
Average monthly billings
City of San Bernardino
East Valley Water District
City of Lorna Linda
$460,537
247,512
51,484
$437,272
141,221
60,516
$897,809
388,733
112,000
$759,534
$639,009
$1,398,543
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I June 30, 2003 June 30, 2002
Residential Nonresidential Total Residential Nonresidential Total
I 30,948 5,160 36,108 30,692 5,135 35,827
16,910 1,126 18,036 16,525 1,125 17,650
I 3,951 563 4,514 3,864 558 4,422
51,809 6,849 58,658 51,081 6,818 57,899
I
I $5,515,768 $5,095,405 $10,611,172 $5,419,223 $4,933,439 $10,352,662
2,836,617 1,627,022 4,463,638 2,817,331 1,708,931 4,526,262
I 612,488 772,148 1,384,635 603,941 745,394 1,349,335
$8,964,872 $7,494,574 $16,459,446 $8,840,495 $7,387,764 $16,228,259
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I $459,647 $424,617 $884,264 $451,602 $411,120 $862,722
236,385 135,585 371,970 234,778 142,411 377,189
I 51,041 64,346 115,386 50,328 62,116 112,445
$747,073 $624,548 $1,371,620 $736,708 $615,647 $1,352,355
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MUNICIPAL WATER DEPARTMENT OF TIIE CITY OF SAN BERNARDINO, CALIFORNIA
Schedule - 1992 Certificates of Participation
San Bernardino Public Safety Authority
June 30, 2004
EARLY PAYOFF
During Fiscal Year 2001, the 1992 Certificates of Participation were retired by an early call and payoff.
The total principal amount of $34,805,000 was paid off February 1,2001.
An early call premium of $674,000 was incurred due to this transaction. This amount will be amortized
annually in the amount of $42, 125 over a sixteen year period.
The unamortized discount balance of $207,921 will continue to be amortized annually in the amount of
$16,520 with the fmal payment of$9,681 due February 1,2017.
Funds usedfor the Primary Hydraulic Reliability Project, remodel of the administration laboratory building
and design of 3A secondary treatment.
nr .-r'~ ^^'
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I MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Schedule - 1998 Refunding Sewer Revenue Certificates of Participation
I San Bernardino Public Safety Authority
June 30, 2004
I Principal
Principal Unamortized Payments Interest
I Date Due Payments Discounts (Net) Interest Total Rate
8/1/04 $ 753,059 753,059 4.15%
I 2/1/05 1,730,000 8,176 1,721,824 753,059 2,474,883 4.15%
8/1/05 717,161 717,161 4.25%
2/1/06 1,815,000 7,727 1,807,273 717,161 2,524,434 4.25%
I 8/1/06 678,593 678,593 4.30%
2/1/07 1,910,000 7,257 1,902,743 678,593 2,581,336 4.30%
8/1/07 637,528 637,528 5.00%
2/1/08 2,010,000 6,760 2,003,240 637,528 2,640,768 5.00%
I 8/1/08 587,278 587,278 4.50%
2/1/09 2;125,000 6,238 2,118,762 587,278 2,706,040 4.50%
8/1/09 539,465 539,465 4.70%
I 2/1/10 2,240,000 5,687 2,234,313 539,465 2,773,778 4.70%
8/1/10 486,825 486,825 5.00%
2/1/11 2,365,000 5,105 2,359,895 486,825 2,846,720 5.00%
I 8/1/11 427,700 427,700 4.75%
2/1/12 2,510,000 4,492 2,505,508 427,700 2,933,208 4.75%
8/1/12 368,088 368,088 4.85%
I 2/1/13 2,650,000 3,840 2,646,160 368,088 3,014,248 4.85%
8/1/13 303,825 303,825 4.75%
2/1/14 2,805,000 3,152 2,801,848 303,825 3,105,673 4.75%
I 8/1/14 237,206 237,206 5.25%
2/1/15 2,965,000 2,424 2,962,576 237,206 3,199,782 5.25%
8/1/15 159,375 159,375 5.00%
2/1/16 3,155,000 1,655 3,153,345 159,375 3,312,720 5.00%
I 8/1/16 80,500 80,500 5.00%
2/1/17 3,220,000 836 3,219,164 80,500 3,299,664 5.00%
I $ 31,500,000 63,349 31,436,651 11,953,206 43,389,857
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Series 1998A Water and Wastewater Revenue Bonds
June 30, 2004
Unamortized
Discounts
and Principal
Principal Deferred Payments Interest
Date Due Payments Charges (Net) Interest Total Rate
10/1/04 $ 1,195,000 39,360 1,155,640 53,413 1,209,053 4.30%
4/1/05 27,720 27,720 4.30%
10/1/05 1,260,000 20,476 1,239,524 27,720 1,267,244 4.40%
$ 2,455,000 59,836 2,395,164 108,853 2,504,017
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Bond Schedule - General Obligation Waterworks Bonds, Series C
June 30, 2004
Principal Interest
Date Due Payments Interest Total Rate
9/1/04 $ 3,488 3,488 7.75%
3/1/05 5,000 3,488 8,488 7.75%
9/1/05 3,294 3,294 7.75%
3/1/06 10,000 3,294 13,294 7.75%
9/1/06 2,906 2,906 7.75%
3/1/07 10,000 2,906 12,906 7.75%
9/1/07 2,519 2,519 7.75%
3/1/08 10,000 2,519 12,519 7.75%
9/1/08 2,131 2,131 7.75%
3/1/09 10,000 2,131 12,131 7.75%
9/1/09 1,744 1,744 7.75%
3/1/10 10,000 1,744 11,744 7.75%
9/1/10 1,356 1,356 7.75%
3/1/11 10,000 1,356 11,356 7.75%
9/1/11 969 969 7.75%
3/1/12 10,000 969 10,969 7.75%
9/1/12 580 580 7.75%
3/1/13 15,000 580 15,580 7.75%
$ 90,000 37,974 127,974
Bonds related to water system improvements for South San Bernardino Water District,
which was acquired by the Department in 1991.
57
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WATER UTILITY
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA I
Water Utility
Statements of Net Assets I
June 30, 2004 and 2003
Increase I
2illM 2llil1 (Decrease)
Assets
Assets: I
Current assets:
Cash and investments $ 11,888,399 11,990,239 (101,840)
Accounts receivable, net 4,047,631 3,220,362 827,269
Due from other entities 1,070,040 1,584,304 (514,264) I
Interfund receivable 23,388 28,790 (5,402)
Related parties receivable 285,092 243,360 41,732
Inventory 1,472,401 1,374,613 97,788 I
Prepaid expenses 13 178 50,465 (37,287)
Total current assets 18,800,129 18,492,133 307,996
Noncurrent assets: I
Restricted assets:
Cash and investments:
Restricted for debt service 462,315 457,677 4,638 I
Restricted for capital-related fees 3,314,912 2,026,374 1,288,538
Restricted for consumer deposits 2,224,512 2,066,143 158,369
Interest receivable 41,772 41,772 I
Note proceeds held by state 10,000,000 10,000,000
Total restricted assets 16,043,511 4,550,194 11,493,317
Notes receivable 600,000 600,000 I
Capital assets:
Land & easements 2,709,175 2,702,033 7,142
Water rights, wells, pumping plants 35,492,836 35,693,470 (200,634) I
Distribution systems 54,605,417 54,277,581 327,836
Building, plants and store yards 1,334,031 1,322,021 12,010
Tools and equipment 2,055,082 1,983,676 71,406 I
Autos 2,901,318 2,558,245 343,073
Office leasehold improvements 141,926 112,594 29,332
Office, computer, engineering equipment 2,568,894 2,420,282 148,612
Radio and interoffice communication equipment 304,959 236,375 68,584 I
Telemetry systems and equipment 248,336 248,336
Miscellaneous 233,534 233,534
Construction in progress 19,886,793 12,331 ,875 7,554,918 I
Less accumulated depreciation and amortization (42,650,895) (40,348,896) (2,301,999)
Total capital assets (net of accumulated
depreciation and amortization) 79,831,406 73,771,126 6,060,280 I
Other assets:
Debt issue costs, net 16,753 32,386 (15,633)
Total Noncurrent assets 96,491,670 78,353,706 18,137,964 I
Total assets 115,291,799 96,845,839 18,445,960
(Continued) I
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I MUNICIPAL WATE~ DEPARTMENT OF TIlE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
I Statements of Net Assets
(Continued)
I Increase
2004 2003 (Decrease )
Liabilities and net assets
I Liabilities:
Current liabilities:
I Accounts payable 2,005,546 1,754,839 250,707
Related parties payable 618,618 540,416 78,202
I Accrued expenses 38,956 16,023 22,933
Accrued compensation 2,039,710 1,811,622 228,088
Claims payable 416,099 382,899 33,200
I Other deposits 976,727 563,974 412,753
Deferred revenue 21,495 21,495
Current portion of notes payable 414,147 414,147
I Total current liabilities 6,531,298 5,069,773 1,461,525
I Current liabilities payable from restricted assets:
Current portion of bonds payable 1,160,640 1,107,662 52,978
I Accrued interest payable 122,267 38,886 83,381
Consumer deposits 2,270,516 2,024,812 245,704
I Total current liabilities payable from
restricted assets 3,553,423 3,171,360 382,063
I Noncurrent liabilities:
Notes payable 9,585,853 9,585,853
Bonds payable 1,324,524 2,485,164 (1,160,640)
I Total Noncurrent liabilities 10,910,377 2,485,164 8,425,213
I Total liabilities 20,995,098 10,726,297 10,268,801
I Net Assets:
Retained earnings 94,296,701 86,119,542 8,177,159
I Total net assets $ 94,296,701 86,119,542 8,177,159
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA I
Water Utility I
Statements of Revenues and Expenses
Years ended June 30, 2004 and 2003
I
Increase
2.QO:1 2003. (Decreas~ I
Operating revenues: I
Charges for services $ 19,738,868 18,820,801 918,067
Other operating revenues 1,816,802 1,594,028 222,774
Total operating revenues 21,555,670 20,414,829 1,140,841 I
Operating expenses: I
Administration and customer service 4,993,846 4,783,093 210,753
Engineering, operations, and distributio~
administration 676,688 591,367 85,321 I
Plant operations 5,670,649 5,818,947 (148,298)
Maintenance 1,209,713 1,062,255 147,458
Distribution 2,881,570 2,441,589 439,981 I
Engineering 1,468,972 1,288,902 180,070
General, administration, and overhead 1,229,032 163,234 1,065,798 I
Depreciation and amortization 2,817,822 2,423,163 394,659
Total operating expenses 20,948,292 18,572,550 2,375,742 I
Operating income (loss) 607,378 1,842,279 (1,234,901)
Non-operating revenues (expenses): I
Investment income 219,377 749,833 (530,456)
Rental income 68,098 69,828 (1,730) I
Noncapital grant funds 1,214,167 794,044 420,123
Gain (loss) on asset disposition 2,488,606 (135,495) 2,624,101
Interest expense and fiscal charges (369,371) (252,552) (116,819) I
Amortization of issuance costs (15,634) (20,481) 4,847
Other 130,914 47,203 83,711 I
Total non-operating revenues (expenses) 3,736,157 1,252,380 2,483,777
Net profit (loss) $ 4,343,535 3,094,659 1,248,876 I
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Statement of Changes in Net Assets
Years ended June 30,2004 and 2003
2004 2003
Balance at beginning of year $ 86,119,542 79,767,474
Net income 4,343,535 3,094,659
Capital contributions 3,833,624 3,257,409
Balance at end of year $ 94,296,701 86,119,542
63
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Statements of Cash Flows
Years Ended June 30,2004 and 2003
2004 2003
Cash flows from operating activities:
Cash received from customers $ 21,656,375 19,737,909
Rental income 68,098 69,828
Nonoperating miscellaneous revenue (expenses) 2,019,520 (88,292)
Cash paid to suppliers of goods and services (8,298,248) (7,280,915)
Cash paid to employees for services (6,119,249) (6,151,671)
Net cash provided by operating activities 9,326,496 6,286,859
Cash flows from noncapital financing activities:
Grant proceeds received 1,214,167 794,044
Net cash provided by noncapital financing activities 1,214,167 794,044
Cash flows from capital and related financing activities:
Capital fees received 2,482,427 1,902,908
Grant proceeds received 1,351,197 1,159,787
Cash paid to acquire fixed assets (11,808,534) (8,778,941)
Principal paid on capital-related debt (1,107,662) (1,025,984)
Interest paid on capital-related debt (285.991) (263.912)
Net cash provided by (used for) capital and related
financing activities (9,368,563) (7,006,142)
Cash flows from investing activities:
Interest received 177,605 749,833
Net cash provided by investing activities 177,605 749,833
Net increase in cash 1,349,705 8~4,594
Cash and cash equivalents at beginning of year 16,540,433 15,715,839
Cash and cash equivalents at end of year $ 17,890,138 16,540,433
(Continued)
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Statements of Cash Flows
(Continued)
~004 2003
Reconciliation of cash and cash equivalents to amounts
reported on the balance sheet:
Reported on the balance sheet:
Cash and investments
Restricted assets
Less restricted assets not meeting the definition of
cash equivalents:
Interest receivable
Note proceeds held by state
$ 11,888,399
16.043,511
11,990,239
4,550,194
(41,772)
(10,000,000)
Cash and cash equivalents at end of year
17,890,138
16,540,433
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss)
Depreciation and amortization
Nonoperating miscellaneous revenue (expenses)
Rental income
Gain (loss) on asset disposition
Adjustments:
Change in accounts receivable
Change in due from other entities
Change in notes receivable
Change in interfund receivable
Change in related parties receivable
Change in inventory
Change in prepaid expenses
Change in accounts payable
Change in related parties payable
Change in accrued expenses
Change in accrued compensation
Change in claims payable
Change in consumer deposits
Change in other deposits
Change in deferred revenue
Change in other assets
607,378 1,842,279
2,817,822 2,423,163
130,914 47,203
68,098 69,828
2,488,606 (135,495)
(827,269) 218,892
514,264 (1,132,763)
(600,000)
5,402 72,432
(41,732) 45,183
(97,788) (48,734)
37,287 147,395
250,707 402,424
78,202 (143,527)
22,933 3,995
228,088 258,643
33,200 41,129
245,704 101,516
412,753 (28,059)
21,495
2,930,432 2,101,355
$ 9,326,496 6,286,859
Net cash provided by operating activities
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2004 2003
$ 31,657 23,331
863,853 727,221
302,177 261,304
135,544 138,166
656,442 656,980
237,922 313,541
510,512 437,836
163,757 166,904
718,345 628,654
507,407 522,655
264,529 276,550
601,701 629,951
4.993.846 4.783.093
676,688 591.367
258,193 192,726
5,300,954 5,466,435
111,502 159,786
5,670,649 5.818.947
526,424 562,455
168,865 243,653
514,424 256,147
1,209,713 1,062,255
272,146 242,243
974,490 826,304
688,897 603,425
474,064 370,365
471,973 399,252
2,881,570 2,441,589
787,654 673,062
681,318 615,840
1,468,972 1,288,902
1,229,032 163,234
18,130,470 16,149,387
2,817,822 2,423,163
$20,948,292 18,572,550
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Operating Expenses
For the years ended June 30,2004 and 2003
Administration and customer seIVice:
Board of water commissioners
Administration
Safety and loss control
Personnel
Finance and accounting
Data processing
Purchasing and stores
Administration seIVices
Customer seIVices
Billing and posting
Cashiering
Field and meter reading seIVices
Water utility administration
Plant operations:
Operations administration
Production and pumping
Geothermal
Maintenance:
Plant and facilities maintenance
Specialized construction
Electrical repair
Distribution:
Administration
SeIVice and repair
Distnbution maintenance
Meter shop
Garage - vehicle maintenance
Engineering:
Engineering
Water quality and backtlow connection
General, administration, and overhead
Total operating expenses before depreciation and amortization
Depreciation and amortization
Total operating expenses
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Board of Water Commissioners Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 900 900
Fringe benefits 28,562 17,848
29,462 18,748
Maintenance and operation:
Travel, meals, and conventions 2.195 4.583
2,195 4,583
Total $ 31,657 23,331
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Administration Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 499,292 403,720
Nonproductive salaries 159,078 103,505
Fringe benefits 79,179 45,015
737,549 552,240
Maintenance and operation:
Trave~ meals, and conventions 8,203 10,526
Training 191
Employee reimbursements 129 470
Safety clothing/supplies 10
Memberships and dues 31,058 28,204
General office supplies 465 811
Books and publications 40
Printed materials 24,726 18,552
Subscriptions 1,016
Office equipment maintenance 865 60
Postage and delivery charges 931 497
Telephone 14,729 10,525
Computer equipment 297 1,255
Software 259
Office furniture 252
Contract services 43,623 102,635
Materials and supplies 72
126,304 174,981
Total $ 863,853 727,221
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Safety and Loss Control Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 171,463 136,048
Nonproductive salaries 31,162 28,886
Fringe benefits 31,013 20,446
233,638 185,380
Maintenance and operation:
Trave~ meals, and conventions 2,741 4,686
Training materials and fees 26,562 14,352
Employee reimbursements 663 275
Uniform rental and cleaning 184 202
Safety clothing and supplies 10,518 9,289
Employee physical exams and x-rays 5,720 3,481
Memberships and dues 475 418
Printed materials 888 106
Books and publications 424 404
Office equipment maintenance 799 108
Postage and delivery charges 40 57
Subscriptions 1,346 1,420
Telephone 6,332 4,692
Contract services 7,163 32,961
Minor office equipment purchases 171 92
Office furniture 2,627 162
Computer equipment 723 2,398
Materials and supplies 316 5
Small tools and equipment 199 58
General office supplies 648 758
68,539 75,924
Total $ 302,177 261,304
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Personnel Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 65,062 56,524
Nonproductive salaries 4,919 9,901
Fringe benefits 16,705 10,106
86,686 76,531
Maintenance and operation:
Trave~ meals, and conventions 2,102 1,195
Training materials and fees 829 1,180
Employee reimbursements 493 882
Employee physical exams and x-rays 2,828 2,665
General office supplies 121 897
Memberships and dues 160 1,637
Printed materials 1,097 69
Books and publications 2,458
Postage charges 33
Telephone 1,605 1,513
Minor office equipment 79
Contract services 29,400 43,614
Computer equipment 127
Advertising 7,653 7,856
48,858 61,635
Total $ 135,544 138,166
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Finance and Accounting Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 463,441 442,436
Nonproductive salaries 60,546 108,464
Fringe benefits 77,568 59,857
601,555 610,757
Maintenance and operation:
Travel, meals, and conventions 1,538 3,901
Training materials and fees 1,647 2,438
Employee reimbursements 904 1,733
Memberships and dues 614 394
Printed materials 4,694 4,082
Books and publications 84
Office equipment maintenance 540 122
Subscriptions 12 851
Postage and delivery charges 96 83
Telephone 8,438 6,748
Contract services 30,715 17,013
Safety clothing and supplies 185 147
Minor office equipment purchases 461 706
Computer equipment 516 3,211
Software 86
Office furniture 1,001 499
General office supplies 3,442 4,209
54,887 46,223
Total $ 656,442 656,980
71
MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Data Processing Expenses
For the years ended June 30,2004 and 2003
2004 2003
Maintenance and operation:
Telephone $ 2,242 10,739
Contract services 205,275 250,150
Equipment maintenance 30,405 52,652
Total $ 237,922 313,541
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Purchasing and Stores Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
$301,251
96,697
54,744
292,896
63,589
41,575
452,692
398,060
Maintenance and operation:
Trave~ meals, and conventions
Training
Employee reimbursements
Safety clothing and supplies
Memberships and dues
Uniform rental and cleaning
Printed materials
Books and publications
Office equipment maintenance
Postage and delivery charges
Advertising
Telephone
Materials and supplies
Small tools and equipment
Equipment maintenance
Minor office equipment purchases
Computer Equipment
Software
Office furniture
Freight charges
Contract services
General office supplies
719 2,062
48 388
57 125
604 344
713 656
1,168 1,263
3,013 4,604
29 73
1,519 681
135 604
9,892 3,198
9,087 7,160
14,757 2,732
616 1,068
628 370
962 363
862 2,311
205 539
1,259 253
7,554 6,018
346 721
3,647 4,243
57,820 39,776
$ 510,512 437,836
Total
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Administrative Services Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 109,287 109,474
Nonproductive salaries 25,964 26,363
Fringe benefits 20,137 13,935
155,388 149,772
Maintenance and operation:
Travel, meals, and conventions 1,234 912
Training materials and fees 190 497
Employment reimbursement 50
Memberships and dues 150 215
General office supplies 155 62
Printed materials 30 27
Books and publications 169
Office equipment maintenance 160 622
Telephone 1,604 1,485
Contract services 4,489 11,835
Computer equipment 194 1,306
Minor office equipment purchases 113 2
8,369 17,132
Total $ 163,757 166,904
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Customer Services Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 481,010 427,375
Nonproductive salaries 98,442 85,485
Fringe benefits 94,823 63,770
674,275 576,630
Maintenance and operation:
Travel, meals, and conventions 204 48
Training materials and fees 1,398 974
Employee reimbursements 311 287
Safety clothing and supplies 59
Printed materials 2,436 5,796
Books and publications 53 79
Office equipment maintenance 2,445
General office supplies 497 1,159
Telephone 21,652 19,753
Contract services 14,118 14,244
Computer equipment 4,790
Minor office equipment purchases 3,401 2,390
44,070 52,024
Total $ 718,345 628,654
7S
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Billing and Posting Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 112,509 114,074
Nonproductive salaries 20,848 19,968
Fringe benefits 17,398 11,888
150,755 145,930
Maintenance and operation:
Travel, meals, and conventions 316 363
Training materials and fees 227
Printed materials 47,351 44,017
Office equipment maintenance 900
Postage and delivery charges 301,212 326,183
Telephone 1,838 1,794
Minor office equipment purchases 702
Computer equipment 808 1,306
General office supplies 3,525 2,835
356,652 376,725
Total $ 507,407 522,655
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Cashiering Expenses
For the years ended June 30,2004 and 2003
2004 2003
Personnel:
Productive salaries $ 169,598 184,940
Nonproductive salaries 34,617 38,695
Fringe benefits 37,691 35,154
241,906 258,789
Maintenance and operation:
Trave~ meals, and conventions 93
Training materials and fees 170
Safety clothing and supplies 136 47
General office supplies 3,122 3,053
Printed materials 909 506
Office equipment maintenance 183
Telephone 1,437 1,291
Contract services 253 174
Equipment maintenance 11,531 10,355
Computer equipment 3,993 1,236
Minor office equipment purchases 1,242 653
22,623 17,761
Total $ 264,529 276,550
77
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules ofField and Meter Services Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 399,264 392,613
Nonproductive salaries 96,946 144,007
Fringe benefits 82,861 66,375
579,071 602,995
Maintenance and operation:
Travel, meals, and conventions 80
Training materials and fees 170
Employee reimbursements 7,154 6,970
Safety clothing and supplies 140 149
Uniform rental and cleaning 2,108 2,260
General office supplies 469
Printed materials 34 30
Postage and delivery charges 100 185
Telephone 7,977 2,751
Minor office equipment purchases 506 886
Computer equipment 1,023 435
Contract services 5,059
Small tools and equipment 852 586
Equipment maintenance 123
Materials and supplies 2.736 6,803
22,630 26,956
Total $ 601,701 629,951
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF. SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Water Utility Administration
For the years ended June 30, 2004 and 2003
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
2004 2003
$ 238,255 218,366
62,030 61,976
45,461 27,849
345,746 308,191
4,317 3,763
7,794 1,451
2,072 1,213
463
153 160
426 241
11,676 8,385
12,491 2,041
2,504 17,760
502 214
642 31
9,899 7,525
3,747 931
2,308 1,469
10,014 29,312
3,478 4,436
8,931
16,546 17,544
3,665 989
878
248
388
43
108
332
65
228,766 184,197
330,942 283,176
$ 676,688 591,367
79
Maintenance and operation:
Travel, meals, and conventions
Training materials and fees
Employee reimbursements
Safety clothing and supplies
Memberships and dues
Postage and delivery
General office supplies
Printed materials
Books and publications
Subscriptions
Office equipment maintenance
Telephone
Minor office equipment purchases
Computer equipment
Software
Office furniture
Advertising
Software support services
Computer maintenance
Security services
Permits and fees
Radio maintenance
Materials and supplies
Small tools & equipment
Equipment maintenance
Facility maintenance
Contract services
Total
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Operations Administration Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 122,444 110,153
Nonproductive salaries 44,105 29,148
Fringe benefits 18,930 14,707
185,479 154,008
Maintenance and operation:
Travel, meals, and conventions 20 36
Training materials and fees 56 208
Employee reimbursements 514 727
Safety clothing and supplies 26 5
Memberships and dues 82 266
Uniform rental and cleaning 288 191
General office supplies 5,827 3,124
Printed materials 566 762
Books and publications 127
Office equipment maintenance 2,694 1,106
Postage and delivery charges 496 495
Telephone 3,994 3,642
Permits and fees 49,045 23,349
Software 70 586
Office furniture 1,082
Contract services 810 2,333
Materials and supplies 1,298 599
Small tools and equipment 269 29
Fuels and lubricants - vehicle and equipment 1,348
Minor office equipment purchases 1,764 498
Equipment maintenance 2,338 762
72,714 38,718
Total $ 258,193 192,726
80
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Production and Pumping Expenses
For the years ended June 30, 2004 and 2003
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
Maintenance and operation:
Travel, meals, and conventions
Training materials and fees
Employee reimbursements
Safety clothing and supplies
Memberships and dues
Unifonn rental and cleaning
General office supplies
Printed materials
Telephone
Contract services
Security services
Pennits and fees
Utilities - natural gas
Utilities - electricity
Materials and supplies
Small tools and equipment
Equipment maintenance
Radio maintenance
Minor office equipment purchases
Facility maintenance
Software
Office furniture
Chlorine
Polymers
Granular activated carbon
Extractions and purchases
Water stock assessments
Water extraction fees
Total
81
2004
$ 487,580
98,606
106,852
693,038
648
2,581
1,480
966
393
2,631
44
54
5,388
6,778
16,879
429
3,086,965
30,040
4,628
35,853
800
469
512
72,302
35,852
297,176
953,600
21,540
29.908
4,607,916
$ 5,300,954
2003
405,144
80,438
66,270
551,852
868
202
1,725
1,982
241
2,199
101
542
2,666
1,302
527
16,295
369
3,636,621
20,319
1,583
30,849
715
586
407
53,190
73,316
317,203
628,084
95,056
27.635
4,914,583
5,466,435
MUNICIPAL WAlERDEPARTMENT OF TIffi CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Geothermal Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 11,891 11,415
Nonproductive salaries 3,103 3,323
Fringe benefits 2,752 3,248
17,746 17,986
Maintenance and operation:
Uniform rental and cleaning 78
Safety clothing and supplies 52 10
Permits and fees 1,985 18,100
Utilities - electricity 78,994 118,175
Materials and supplies 4,803 2,935
Outside laboratory testing 234
Small tools and equipment 23 12
General office supplies 98 99
Equipment maintenance 589
Office equipment maintenance 45
Computer equipment 151
Printed materials 5
Telephone 829 709
Contract services 6,300 1,330
93,756 141,800
Total $ 111,502 159,786
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules ofPIant and Facilities Maintenance Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 235,001 231,871
Nonproductive salaries 54,210 96,341
Fringe benefits 58,667 52,647
347,878 380,859
Maintenance and operation:
Travel, meals, and conventions 874
Training materials and fees 55 202
Employee reimbursements 360 504
Safety clothing and supplies 995 1,281
Uniform rental and cleaning 1,815 1,869
Membership and dues 127
General office supplies 61
Printed material/printing 36
Telephone 3,424 2,314
Software 586
Contract services 67,760 73,463
Materials and supplies 69,686 65,252
Small tools and equipment 3,000 3,429
Equipment maintenance 1,491 2,275
Equipment rental 1,199 619
Vandalism repairs 177 54
Dump fees 2,784 2,043
Chlorine 36 51
Landscape services 25,540 26,780
178,546 181,596
Total $ 526,424 562,455
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Specialized Construction Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 37,918 89,556
Nonproductive salaries 47,943 74,453
Fringe benefits 48,797 45,130
134,658 209,139
Maintenance and operation:
Travel, meals, and conventions 4
Training materials and fees 55 202
Employee reimbursements 70 501
Safety clothing and supplies 410 363
Uniform rental and cleaning 878 1,278
Printed materials 6
Telephone 2,931 1,416
Software 586
Office furniture (198)
Contract services 14,435 2,453
Vandalism repair 2,853
Materials and supplies 8,861 19,284
Small tools and equipment 2,311 4,795
Equipment rental 3,009
Equipment maintenance 1,038 815
Radio maintenance 365
34,207 34,514
Total $ 168,865 243,653
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Electrical Repair Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 214,262 128,618
Nonproductive salaries 74,894 5,658
Fringe benefits 49,410 3,840
338,566 138,116
Maintenance and operation:
Travel and convention 1,363
Training 5,000
Employee reimbursements 277
Uniform rental/cleaning 833
Membership and dues 1,624
Safety clothing and supplies 525 14
General supplies 21
Printed material/printing 19
Telephone 2,989
Contract services 80,231 7,801
Vandalism repair 3,231
Equipment maintenance 652
Materials and supplies 72,524 110,187
Small tools and equipment 6,569 29
175,858 118,031
Total $ 514,424 256,147
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Distribution Administration Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 166,846 155,330
Nonproductive salaries 48,630 39,549
Fringe benefits 35,805 28,676
251,281 223,555
Maintenance and operation:
Travel, meals, and conventions 184
Training materials and fees 338
Employee reimbursements 140 150
Safety clothing and supplies 92 33
Memberships and dues 57 57
Uniform rental and cleaning 176 212
General office supplies 3,888 2,766
Printed materials 2,985 3,074
Books and publications 445 307
Office equipment maintenance 367 556
Postage and delivery charges 470 420
Telephone 9,085 7,621
Software 477 586
Janitorial/cleaning supplies 116
Contract services 1,645 5
Materials and supplies 367 913
Equipment maintenance 189
Minor office equipment purchases 316 68
Computer equipment 239
Office furniture 1,209
20,865 18,688
Total $ 272,146 242,243
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Service and Repair Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 500,597 406,772
Nonproductive salaries 143,042 174,573
Fringe benefits 130,046 103,033
773,685 684,378
Maintenance and operation:
Travel, meals, and conventions 197 18
Training materials and fees 112 404
Employee reimbursements 1,135 1,263
Safety clothing and supplies 4,213 5,374
Physical elt"aminations 3
Memberships and dues 64
General office supplies 202
Uniform rental and cleaning 3,334 3,816
Printed materials 127 121
Telephone 4,418 4,058
Software 953 1,172
Janitorial supplies 6
Contract services 7,208 1,092
Materials and supplies 156,473 100,837
Small tools and equipment 19,098 13,859
Equipment rental 225
Equipment maintenance 3,271 9,662
CWorine 16
200,805 141,926
Total $ 974,490 826,304
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Distribution Maintenance Expenses
For the years ended June 30, 2004 and 2003
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
2004 2003
$ 265,716 228,690
61,207 60,811
67,803 51,987
394,726 341,488
224 170
56 202
284 105
1,441 1,271
57 105
6,344 5,182
67
17
25
3,081 2,970
861
477 586
4,991
3,738 4,539
93,773 107,827
11,638 11,033
59,259 45,944
22,755 3,919
41,342 24,812
7,134 7,773
42,476 39,630
294,171 261,937
$ 688,897 603,425
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Maintenance and operation:
Travel, meals, and conventions
Training materials and fees
Employee reimbursements
Safety clothing and supplies
Memberships and dues
Uniform rental and cleaning
General office supplies
Postage and delivery charges
Printed materials
Telephone
Computer equipment
Software
Office furniture
Janitorial and cleaning supplies
Contract services
Dump fees
Utilities - electricity
Utilities - natural gas
Materials and supplies
Small tools and equipment
Facility maintenance
Total
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Meter Shop Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 223,750 199,300
Nonproductive salaries 59,527 65,456
Fringe benefits 56,963 44,490
340,240 309,246
Maintenance and operation:
Employee reimbursements 486 360
Safety clothing and supplies 2,599 1,905
Uniform rental and cleaning 1,604 1,598
General office supplies 57
Printed material 83 7
Telephone 3,386 2,924
Contract services 19,655 21,850
Security services 439
Materials and supplies 95,762 24,552
Small tools and equipment 7,077 5,613
Equipment maintenance 3,115 1,871
133,824 61,119
Total $ 474,064 370,365
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Garage - Vehicle Maintenance Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 150,650 126,641
Nonproductive salaries 24,100 35,629
Fringe benefits 33,827 22,553
208,577 184,823
Maintenance and operation:
Travel, meals, and conventions 313
Employee reimbursements 17 64
Safety clothing and supplies 834 374
Uniform rental and cleaning 1,925 1,834
General office supplies 72 31
Printed materials 474 100
Telephone 2,649 2,014
Software 1,616 1,616
Contract services 24,637 25,768
Permits and fees 3,350 2,122
Materials and supplies 73,808 80,463
Small tools and equipment 2,053 1,464
Fuels and lubricants - vehicle and equipment 141,121 96,536
Radio maintenance 3,721
Equipment maintenance 7,119 1,730
263,396 214,429
Total $ 471,973 399,252
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Engineering Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
$ 310,798
65,137
65,697
441,632
Maintenance and operation:
Travel, meals, and conventions
Training materials and fees
Employee reimbursements
Safety clothing and supplies
Memberships and dues
Uniform rental and cleaning
Physical examination
General office supplies
Books and publications
Printed materials
Office equipment maintenance
Postage delivery and charges
Telephone
Contract services
Legal services
Advertising services
Permits and fees
Materials and supplies
Small tools and equipment
Equipment rental
Radio maintenance
Facility maintenance
Minor office equipment purchases
Computer equipment and software
Office furniture
Subscriptions
709
225
810
309
589
1,032
12,688
566
7,919
2,422
53
21,847
241,927
550
1,852
5,957
2,766
20,474
1,176
17,454
4,536
161
Total
346,022
$ 787,654
91
287,293
67,094
39,575
393,962
295
2,894
280
70
197
1,245
50
11,482
1,650
10,848
3,728
641
15,744
192,137
47
550
5,248
3,559
381
108
553
25,010
2,214
169
279,100
673,062
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Water Quality and Backflow Connection Expenses
For the years ended June 30, 2004 and 2003
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
2004 2003
$ 221,738 190,695
44,943 45,949
57,509 40,559
324,190 277,203
1,666 79
450 437
232 644
2,094 1,511
1,193 1,151
1,262 1,000
1,935 1,160
1,337 1,000
38 38
367 632
7,447 5,247
226
63
1,299
151
550
4,118 1,145
328,461 316,045
1,499 350
4,237 6,685
16
357,128 338,637
$ 681,318 615,840
92
Maintenance and operation:
Travel, meals, and conventions
Training materials and fees
Employee reimbursements
Safety clothing and supplies
Uniform rental and cleaning
Membership and dues
General office supplies
Printed materials
Subscriptions
Office equipment maintenance
Telephone
Computer equipment
Minor office equipment purchases
Office furniture
Security services
Contract services
Small tools and equipment
Laboratory sampling and testing
Equipment maintenance
Materials and supplies
Chlorine
Total
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of General, Administration, and Overhead Expenses
For the years ended June 30, 2004 and 2003
Personnel:
Disability insurance
Unemployment benefits
Retiree medical insurance
Administrative cost - group medical
Maintenance and operation:
Travel, meals, and conventions
Miscellaneous employee supplies
Books and publications
General office supplies
Printed materials
Contract services
Office equipment maintenance
Postage delivery and charges
Minor office equipment
Computer equipment
City hall office rent
Uncollectible chargeoffs
Liability insurance
Property insurance
Workers' compensation
Noninsurable accidents and losses
Miscellaneous insurance and bonds
Property taxes
Advertising
Legal services
Overhead applied property, plant, and equipment
Total
93
2004 2003
$ 92,945 93,251
10,284 4,446
96,136 65,057
923 3,644
200,288 166,398
10 64
21,546 11,074
1,360 1,343
30,151 25,878
3,265 6,712
51,949 29,641
3,499 2,786
40 17
17
968 940
156,488 155,191
22,246 5,797
257,212 194,982
94,002 99,794
266,871 305,501
10,600 14,157
1,241 1,863
7,002 6,658
12,113 3,577
788.599 788.144
1,729,179 1,654,119
(700,435) (1,657,283)
$ 1,229,032 163,234
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SEWER UTILITY
9S
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MUNICIPAL WATER DEPARTMENT OF TIm CITY OF SAN BERNARDINO, CALIFORNIA I
Sewer Utility
Statements of Net Assets I
June 30, 2004 and 2003
Increase
2004 2003 (Decrease) I
Assets
Assets:
Current assets: I
Cash and investments $ 19,026,236 19,957,510 (931,274)
Accounts receivable, net 2,430,918 2,216,398 214,520
Due from other entities 192,767 194,668 (1,901) I
Related parties receivable 477,821 404,314 73,507
Prepaid expenses 9,442 20,979 (11,537)
Total current assets 22,137,184 22,793,869 (656,685) I
Noncurrent assets:
Restricted assets: I
Cash and investments:
Restricted for debt service 3,539,958 3,509,005 30,953
Restricted for capital-related fees 9,217,467 6,693,115 2,524,352 I
Interest receivable 80,765 80,765
Total restricted assets 12,838,190 10,282,885 2,555,305
Capital assets: I
Land & easements 12,470,740 12,470,740
Water rights, wells, pumping plants 3,192,218 3,192,218
Buildings, plants, and store yards 147,617,857 145,282,507 2,335,350 I
Tools and equipment 3,803,195 3,540,670 262,525
Autos 994,644 1,009,192 (14,548)
Office, computer, engineering equipment 936,785 988,137 (51,352) I
Radio and interoffice communication
equipment 111,811 26,490 85,321
Telemetry systems and equipment 336,612 336,612 I
Miscellaneous 193,015 193,015
Construction in progress 1,672,160 2,088,509 (416,349)
Less accumulated depreciation and I
amortization (58,791,615) (54,561,371) (4,230,244)
Total capital assets (net of accumulated
depreciation and amortization) 112,537,422 114,566,719 (2,029,297) I
Other assets:
Debt issue costs, net 387,688 433,527 (45,839)
Deferred call premium 530,073 572,198 (42,125) I
Total other assets 917,761 1,005,725 (87,964)
Total Noncurrent assets 126,293,373 125,855,329 438,044
Total assets 148,430,557 148,649,198 (218,641) I
(Continued) I
96
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sew~ Utility
StatemeBtsofNet Assets
(Continued)
2004 2003
Increase
(Decrease)
Liabilities and net assets
Liabilities:
Current liabilities:
Accounts payable
Interfund payable
Related parties payable'
Accrued expenses
Accrued compensation
Claims payable
Other deposits
Current portion of notes payable
$ 1,244,437 849,245 395,192
23,388 28,790 (5,402)
89,242 367,801 (278,559)
8,720 8,517 203
752,868 651,713 101,155
29,275 144,680 (115,405)
570 7,189 (6,619)
1,728,295 1,670,365 57,930
3,876,795 3,728,300 148,495
1,705,304 1,624,877 80,427
761,710 799,547 (37,837)
2,467,014 2,424,424 42,590
Total current liabilities
Current liabilities payable from restricted assets:
Current portion of certificates of participation
Accrued interest payable
Total current liabilities payable from
restricted assets
Noncurrent liabilities:
Notes payable
Certificates of participation
20,652,476 22,380,771 (1,728,295)
29,523,426 31,228,730 (1,705,304)
50,175,902 53,609,501 (3,433,599)
56,519,711 59,762,225 (3,242,514)
91,910,846 88,886,973 3,023,873
$ 91,910,846 88,886,973 3,023,873
Total Noncurrent liabilities
Total liabilities
Net Assets:
Retained earnings
Total net assets
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA I
Sewer Utility I
Statements of Revenues and Expenses
Years ended June 30, 2004 and 2003
I
Increase
2illM 2003. (Decrease) I
Operating revenues: I
Charges for services $ 16,782,511 16,459,446 323,065
Other operating revenues 642,377 610,462 31,915
Total operating revenues 17,424,888 17,069,908 354,980 I
Operating expenses: I
Engineering, operations, and distribution
administration 1,317,061 1,324,348 (7,287) I
Plant operations 7,584,176 7,792,183 (208,007)
Maintenance 2,237,681 2,193,534 44,147
Environmental control 377,638 316,238 61,400 I
General, administration, and overhead 753,354 1,033,920 (280,566)
Depreciation and amortization 4,274,823 4,205,205 69,618 I
Total operating expenses 16,544,733 16,865,428 (320,695)
Operating income (loss) 880,155 204,480 675,675 I
Non-operating revenues (expenses): I
Investment income 525,183 1,510,460 (985,277)
Rental income 26,710 28,587 (1,877) I
Gain (loss) on asset disposition (13,519) 3,666 (17,185)
Interest expense and fiscal charges (2,431,334) (2,548,367) 117,033
Amortization of issuance costs (45,839) (47,559) 1,720 I
Other (26,356) (16,811) (9,545)
Total non-operating revenues (expenses) (1,965,155) (1,070,024) (895,131) I
Net profit (loss) $ (1,085,000) (865,544) (219,456) I
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Statement of Changes in Net Assets
Years ended June 30,2004 and 2003
2004 2003
Balance at beginning of year $ 88,886,973 90,130,090
Priorperioda~ustment (3,640,733)
88,886,973 86,489,357
Net income (loss) (1,085,000) (865,544)
Capital contributions 4,108,873 3,263,160
Balance at end of year $ 91,910,846 88,886,973
99
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Statements of Cash Flows
For the Years Ended June 30,2004 and 2003
2004 2003
Cash flows from operating activities:
Cash received from customers
Rental income
Nonoperating miscellaneous expenses
Cash paid to suppliers of goods and services
Cash paid to employees for services
$ 17,143,680
26,710
(39,875)
(815,672)
(8,800,082)
Net cash provided by operating activities
7,514,761
Cash flows from capital and related financing activities:
Capital fees received
Cash paid to acquire fixed assets
Principal paid on capital-related debt
Interest paid on capital-related debt
4,108,873
(4,802,498)
(3,295,242)
(2,427,046)
Net cash provided by (used for) capital and related
financing activities
17,331,960
28,587
(13,145)
(3,089,416)
(9,137,054)
5,120,932
3,263,160
{I,209,186)
(3,168,455)
(2,542,219)
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(6,415,913) (3,656,700)
525,183 1,510,460
525,183 1,510,460
1,624,031 2,974,692
26,685,880 23,711,188
$ 28,309,911 26,685,880
(Continued)
Cash flows from investing activities:
Interest received
Net cash provided by investing activities
Net increase in cash
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Statements of Cash Flows
(Continued)
2004 2003
Reconciliation of cash and cash equivalents to amounts
reported on the balance sheet:
Reported on the balance sheet:
Cash and investments
Restricted assets
Less restricted assets not meeting the definition of
cash equivalents:
Investment agreements
Interest and other receivables
$ 19,026,236
12,838,190
19,957,510
10,282,885
(3,473,750) (3,473,750)
(80,765) (80,765)
Cash and cash equivalents at end of year
$ 28,309,911 26,685,880
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income $ 880,155 204,480
Depreciation and amortization 4,274,823 4,205,205
Nonoperating miscellaneous revenue (expenses) (26,356) (16,811)
Rental income 26,710 28,587
Gain (loss) on asset disposition (13,519) 3,666
Adjustments:
Change in accounts receivable (214,520) (62,049)
Change in due from other entities 1,901 4,227
Change in related parties receivable (73,507) 49,625
Change in prepaid expenses 11,537 263,060
Change in accounts payable 395,192 (302,424)
Change in interfund payable (5,402) (69,637)
Change in related parties payable (278,559) 289,348
Change in accrued expenses 203 4,934
Change in accrued compensation 101,155 (20,523)
Change in claims payable (115,405) 112,835
Change in other deposits (6,619) 7,189
Change in other assets 2,556,972 419,220
Net cash provided by operating activities $ 7,514,761 5,120,932
101
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of Operating Expenses
For the years ended June 30, 2004 and 2003
2004
2003
Engineering, operations, and distribution administration:
Administration
Engineering services
$ 1,155,664
161.397
1,067,771
256.577
1.317.061
1.324.348
Plant Operations:
Plant operations 3,554,365 3,645,734
Bio-solids processing 1,653,358 1,737,109
RlX facility operations 2,376,453 2,409,340
7.584.176 7.792.183
Maintenance:
Plant maintenance 1,194,996 1,058,895
Facilities maintenance 497,889 480,465
Electrical instrumentation 544,796 654,174
2,237,681 2,193,534
Environmental control 377,638 316,238
General, administration, and overhead 753,354 1,033,920
Total operating expenses before depreciation
and amortization 12,269,910 12,660,223
Depreciation and amortization 4,274,823 4,205,205
Total operating expenses $ 16,544,733 16,865,428
102
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of Administration Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 175,047 187,737
Nonproductive salaries 32,372 41,695
Fringe benefits 36,176 32,144
243,595 261,576
Maintenance and operation:
Training materials and fees 3
Memberships and dues 343 631
General office supplies 1,629 1,493
Printed materials 1,415 3,786
Books and publications 153 274
Subscriptions 522
Office equipment maintenance 3,952 3,777
Computer equipment maintenance 300
Telephone 12,684 11,912
Utilities - natural gas 533 936
Utilities - electricity 49,037 51,806
Billing and collection administration 839,960 729,754
Hazard waste disposal 1,550
Minor office equipment purchases 813 1,001
912,069 806,195
Total $ 1,155,664 1,067,771
103
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of Engineering Services Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Maintenance and operation:
Professional services
$ 161,397
256,577
Total
$ 161,397
256,577
104
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of Plant Operations Expenses
For the years ended June 30, 2004 and 2003
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
Maintenance and operation:
Travel, meals and conventions
Training materials and fees
Employee reimbursements
Unifonn rental and cleaning
Safety clothing and supplies
Memberships and dues
General office supplies
Books and publication
Office equipment maintenance
Computer equipment maintenance
Contract services
Pennits and fees
Telephone
Utilities - natural gas
Utilities - electricity
Materials and supplies
Small tools and equipment
Equipment rental
Equipment maintenance
Minor office equipment purchases
Software
Office furniture
Software support services
Radio maintenance
Chlorine
Ferric chloride
Polymer treatment
Other chemicals
Outside laboratory testing
Hazardous waste disposal
Water extraction fees
Total
105
2004 2003
$1,130,173 1,124,287
226,772 223,983
237,660 .193,619
1,594,605 1,541,889
23
6,174 3,409
265
4,779 5,586
5,353 4,121
3,129 3,448
4,116 3,574
483
990 1,124
151
9,208 17,007
59,281 45,490
14,308 14,175
53,381 47,061
1,329,665 1,500,772
36,543 50,294
1,940 1,300
282
4,007 1,793
664 1,193
2,359 1,425
1,587
21,564 27,034
1,900 1,741
698
162,244 154,937
3,435
37,457 46,282
189,282 157,430
4,889
10,235 4,017
1,959,760 2,103,845
$ 3,554,365 3,645,734
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules ofBio-Solids Processing Expenses
For the years ended June 30, 2004 and 2003
Maintenance and operation:
Contract services
Laboratory testing
Materials and supplies
Small tools and equipment
Equipment maintenance
Polymers
Other chemicals
2004 2003
$ 1,159,310 1,193,940
5,908
696 3,724
58
2,901
450,786 489,169
36,600 47,375
1,653,358 1,737,109
$ 1,653,358 1,737,109
Total
106
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MUNICIPAL WATER DEPARTMENT OF TIIECITYOF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules ofRIX Facility Operations Expenses
For the years ended June 30, 2004 and 2003
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
2004 2003
$ 314,579 290,620
49,534 51,137
65,736 49,335
429,849 391,092
11 1,040
2,203 520
5,879 1,433
2,278 1,381
2,033 2,916
108 300
688 578
969
12,137 4,871
23,097 11,000
344 231
308
94,162 172,846
23,208 80,793
44,833
24,997 20,115
8,800 8,354
169,898
61,006 76,763
185
17,124 550
748,628 687,463
331 512
120,455 91 ,506
148,120 171 ,208
6,981 2,975
27,590 5,995
46,678 41,023
38,941 39,373
390
180,904 193,883
173,609
2,094
170 172
20,000 15,000
34,000 25,000
81.000 182892
1,946,604 2,018,248
$ 2,376,453 2,409,340
Maintenance and operation:
Training materials and fees
Employee reimbursements
Safety clothing and supplies
Uniform rental and cleaning
General office supplies
Printed materials
Office equipment maintenance
Computer equipment maintenance
Postage and delivery charges
Telephone
Janitorial supplies
Janitorial services
Contract services
Legal services
Other professional services
Software support services
Landscape services
Laboratory testing
Permits and fees
Dwnp fees
Hazardous waste disposal
Utilities - electricity
Utilities - water
Materials and supplies
UV Lamps
Small tools and equipment
Equipment rental
Fuels and lubricants. vehicle and equipment
Equipment maintenance
Minor office equipment purchases
Other chemicals
Outside laboratory testing
Travel, meals, and conventions
Memberships and dues
Uability insurance
Property insurance
Contingency fees
Total
107
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of Plant Maintenance Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 567,874 499,396
Nonproductive salaries 92,958 92,039
Fringe benefits 122,590 87,331
783,422 678,766
Maintenance and operation:
Training materials and fees 4,375 3,504
Employee reimbursements 221
Uniform rental and cleaning 2,502 3,788
Safety clothing and supplies 4,263 3,318
Memberships and dues 935 1,377
General office supplies 2,172 1,144
Computer supplies 870 115
Printed materials 705
Computer equipment maintenance 388 1,359
Telephone 9,508 5,725
Minor office equipment purchases 1,319 753
Contract services 100,177 59,528
Software support services 19,353 13,285
Hazardous waste disposal 1,669 4,484
Materials and supplies 157,832 170,126
Small tools and equipment 8,978 8,033
Equipment rental 6,269 1,277
Fuels and lubricants - vehicle and equipment 48,573 46,125
Equipment maintenance 39,521 55,483
Radio equipment 1,616
Radio maintenance 1,033
411,574 380,129
Total $ 1,194,996 1,058,895
108
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of Facilities Maintenance Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 229,436 197,883
Nonproductive salaries 45,789 55,822
Fringe benefits 44,909 37,049
320,134 290,754
Maintenance and operation:
Uniform rental and cleaning 1,969 1,864
Safety clothing and supplies 2,189 1,430
General office supplies 54 37
Computer supplies 311
Computer equipment maintenance 81
Telephone 5,498 4,334
Janitorial cleaning/supplies 6,362
Contract services 105,394 124,926
Landscape services 10,800 12,178
Materials and supplies 34,723 29,886
Small tools and equipment 3,276 2,112
Janitorial services 232 10,789
Equipment rental 1,392 1,397
Equipment maintenance 5,866 366
177,755 189,711
Total $ 497,889 480,465
109
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of Electrical Instrumentation Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $ 311,327 368,028
Nonproductive salaries 52,287 75,120
Fringe benefits 66,992 74,881
430,606 518,029
Maintenance and operation:
General office supplies 1,563 1,335
Training expenses 4,030 6,722
Uniform rental and cleaning 1,459 2,781
Safety clothing and supplies 2,525 2,082
Memberships and dues 543 1,040
Minor office equipment 1,877 68
Computer equipment 222 1,622
Computer supplies 868 105
Books and publication 5
Printed materials 449
Telephone 6,428 7,227
Contract services 9,843 6,337
Software support services 2,092
Materials and supplies 57,551 91,163
Small tools and equipment 5,944 4,248
Computer equipment maintenance 184 810
Other chemicals 5,114
Equipment maintenance 13,942 10,156
114,190 136,145
Total $ 544,796 654,174
110
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of Environmental Control Expenses
For the years ended June 30, 2004 and 2003
2004 2003
Personnel:
Productive salaries $219,431 177,002
Nonproductive salaries 45,964 36,543
Fringe benefits 52,363 38,144
317,758 251,689
Maintenance and operation:
Training
Employee reimbursements
Uniform rental and cleaning
Safety clothing and supplies
Memberships and dues
General office supplies
Printed materials
Subscriptions
Computer equipment maintenance
Telephone
Materials and supplies
Small tools and equipment
Minor office equipment purchases
Office furniture
Equipment maintenance
Hazardous waste disposal
Laboratory sampling and testing
3,501
41
544
1,108
846
2,814
2,177
7,818
8,236
803
767
946
1,738
4,234
24,307
59,880
Total
$ 377,638
111
1,240
271
643
693
1,018
2,775
899 .
95
414
8,251
9,191
2,595
1,465
1,030
1,039
4,986
27,944
64,549
316,238
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of General, Administration, and Overhead Expenses
For the years ended June 30, 2004 and 2003
Personnel:
Disability insurance
Retiree medical insurance
Administrative cost - group medical
Maintenance and operation:
Travel, meals, and conventions
Training materials and fees
Safety clothing and supplies
Memberships and dues
Uniform rental and supplies
General office supplies
Computer supplies
Printed materials
Postage and delivery charges
Advertising
Telephone
City hall office rent
Contract services
Legal services
Other professional services
Software support services
Materials and supplies
Minor office equipment purchases
Liability insurance
Property insurance
Workers'compensation
Noninsurable accidents and losses
Miscellaneous insurance and bonds
Permits and fees
Utilities - Water
Fuel and lube
Uncollectible charge-offs
Overhead applied property, plant, and equipment
Total
112
2004
$ 40,551
11,059
500
52,110
9,256
1,509
4,694
21,647
6,778
9,513
1,171
2,357
1,014
7,617
21,339
96
72,355
226,328
1,363
12,965
2,585
181,668
175,231
9,408
3,105
1,241
33,920
807,160
(105,916)
$ 753,354
2003
45,407
5,009
890
51,306
10,120
2,541
7,451
21,429
5,372
7,578
43
1,805
1,877
200
4,063
21,162
73,004
244,171
641
10,273
194
136,517
197,121
188,573
5,620
1,014
645
39,356
289
1,555
982,614
1,033,920
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CONRAD AND
ASSOCIATES, L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS
2301 DUPONT DRIVE, SUITE 200
IRVINE, CALIFORNIA 92612
(949) 474-2020
Fax (949) 263-5520
Water Commissioners Board
Municipal Water Department of the City of San Bernardino, California
Report on Compliance and Internal Control Over Financial
Reportine: Based on an Audit of Financial Statements Performed
in Accordance with Government Auditine: Standards
We have audited the basic financial statements of the Municipal Water Department of the City of
San Bernardino ("Department") as of and for the year ended June 30, 2004, and have issued our
report thereon dated November 12,2004. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General
of the United States.
Compliance
As part of obtaining reasonable assurance about whether the Department's basic financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, and contracts, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. Providing an opinion on
compliance with those provisions was not an objective of our audit, and, accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance
that are required to be reported under Government Auditing Standards.
Internal Control over Financial Reportine:
In planning and performing the audit, we considered the Department's internal control over
financial reporting in order to determine our auditing procedures for the purpose of expressing
our opinion on the basic financial statements, rather than to provide assurance on the internal
control over financial reporting. Our consideration of the internal control over financial reporting
would not necessarily disclose all matters in the internal control over financial' reporting that
might be material weaknesses. A material weakness is a condition in which the design or
operation of one or more of the internal control components does not reduce to a relatively low
level the risk that misstatements in the amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a timely period by employees in
the normal course of performing their assigned functions. We noted no matters involving the
internal control over financial reporting and its operation that we consider to be material
weaknesses.
This report is intended solely for the information and use of the Water Commissioners Board and
management of the Department and is not intended to be and should not be used by anyone other
than these specified parties. L
~. ~/~ ,4#tI'.,-;",~ ~.J ~
November 12, 2004
113
MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
114
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