HomeMy WebLinkAbout19- Water Department CITY OF SAN BERV RDINO - REQUEST [ )R COUNCIL ACTION
From: Cheryl Flowers Subject: 1993-94 Annual Audit of the
Assistant General Manager Water Department' s Water,
D Water Department Sewer and Geothermal Funds
Date: February 2 , 1995
Synopsis of Previous Council action:
2 FEB T� 4 2;
Recommended motion:
.'hat the 1993-94 annual audit of the Water Department ' s Water,
Sewer and Geothermal Funds be received and filed.
Signature
Contact person: Cheryl Flowers/Paul Harmon Phone: 384-5393/384-5184
Supporting data attached: Audit Reports Ward: N/A
FUNDING REQUIREMENTS: Amount: N/A
Source: (Acct. No.) N/A
(Acct. Description) N/A
Finance: N/A
C( ' Notes:
75-0262 Agenda Item No.— /
3- 6-95
CITY OF SAN BERG" RDINO - REQUEST F"R COUNCIL ACTION
STAFF REPORT
The firm of Soren ♦ McAdam ♦ Bartells has completed the 1993-94
Annual Audit of the Water Department's Water, Sewer and Geothermal
Funds. These reports were presented to and accepted by the Board
of Water Commissioners on January 24, 1995.
Staff has been directed to transmit to the Mayor and Common Council
the 1993-94 Annual Audit of the Water Deprtment's Water, Sewer and
Geothermal Funds as a "receive and file" item.
i
F
MUNICIPAL WAFER DEPARTMENT
CITY OF SAN PERNARDINO
WATER UTILITY
ENTERPRISE FUND
Financial Statements
And
Supplementary Information
With
Independent Auditors' Report
For the Years Ended Ame 30, 1994 and 1993
SOREN • McADAM • BARTELLS
CERTIFIED PUBLIC ACCOUNTANTS, INC.
3//��'
TABLE OF CONTENTS
Page
Independent Auditors' Report 1
Financial Statements
Balance Sheets 3
Statements of Operations 5
Statements of Changes in Fund Equity 6
Statements of Cash Flows 8
Notes to Financial Statements 10
Supplementary Information
Independent Auditors' Report on Supplementary Information 25
Schedule of Federal Financial Assistance 26
Schedule of Property, Plant, Equipment and Water Rights and Accumulated Depreciation 27
Bond Schedule - General Obligation Waterworks Bond, Series C 35
Certificates of Participation Schedule - West End Water Development,
Treatment and Conservation Joint Powers Authority 36
Schedule of Direct Plant Production Expenses 37
Schedule of Direct Expenses of Other Plant Facilities 38
Schedule of Water Production and Purchased Cost 39
Schedule of Sundry Statistical Data 41
Schedule of Water System Demographics 43
Schedule of Distribution System Expenses 44
Schedule of Overhead Salaries and Related Costs 45
Schedule of General Administrative and Overhead Expenses 46
Schedule of Insurance Coverage 47
THOMAS E.AHERN,C.P.A.
MEMBERS . BRUCE J.BARTELLS,C.P.A.
. GARY L.CHRISTENSON,C.P.A.
CHARLES P.COPELAND,C.P.A.
ASSOCIATED REGIONAL RHEE ELIKER,C.P.A.
COUNTING FIRMS(ARAF) WING K.LAU,C.P.A.
DOUGLAS R.McADAM,C.P.A.
AMERICAN INSTITUTE OF JESSIE C.POWELL.C.P.A.
SOREN • McADAM • BARTELLS JAMES L.SOREN,C.P.A.
CERTIFIED PUBLIC ACCOUNTANTS KIRK G.STITT,C.P.A.
PRIVATE COMPANIES PRACTICE SECTION CERTIFIED PUBLIC ACCOUNTANTS. INC. DAVID P.TUTTLE,C.P.A.
INDEPENDENT AUDITORS' REPORT
Board of Water Commissioners
Municipal Water Department
Water Utility Enterprise Fund
City of San Bernardino, California
We have audited the accompanying financial statements of the Municipal Water Department - Water
Utility Enterprise Fund of the City of San Bernardino, California as of and for the year ended June 30,
1994. These financial statements are the responsibility of the Municipal Water Department's
management. Our responsibility is to express an opinion on these financial statements based on our audit.
We did not audit the financial statements of the West End Water Development, Treatment and
Conservation Joint Powers Authority that has been consolidated with the Municipal Water Department -
Water Utility Enterprise Fund. This represents 2 percent and .4 percent, respectively, of the assets and
total revenue of the Municipal Water Department - Water Utility Enterprise Fund for the year ended
June 30, 1994. That portion was audited by other auditors whose report has been furnished to us, and
our opinion, insofar as it relates to the amounts included for West End Water Development, Treatment
and Conservation Joint Powers Authority, is based solely on the report of the other auditors. The
financial statements of the Municipal Water Department - Water Utility Enterprise Fund as of and for the
year ended June 30, 1993 were audited by other auditors whose opinion dated October 18, 1993
expressed an unqualified opinion on those statements. As discussed in Note 2 to the financial statements,
the Department has restated its 1993 financial statements during the current year to reflect a correction
of an error in the recording of revenue earned from utility services provided, but not yet billed, and the
recording of an allowance for uncollectible accounts receivable in conformity with generally accepted
accounting principles. The other auditors reported on the 1993 financial statements before restatement.
We conducted our audit in accordance with generally accepted auditing standards. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
As discussed in Note 1, the financial statements present only the Municipal Water Department - Water
Utility Enterprise Fund and are not intended to present fairly, in all material respects, the financial
position of City of San Bernardino, California, and the results of its operations and cash flows of its
proprietary fund types, in conformity with generally accepted accounting principles.
-1-
2068 Orange Tree lane,Suite 100 ♦ Post Office Box 8010 ♦ Redlands,CA 92375-1210 ♦ (909)798-2222 ♦ (909)824-5110 ♦ FAX(909)798-9772
In our opinion, based on our audit and the report of other auditors, the 1994 financial statements referred
to above present fairly, in all material respects, the financial position of the Municipal Water
Department - Water Utility Enterprise Fund of the City of San Bernardino, California as of June 30,
1994, and the results of its operations and its cash flows for the year then ended, in conformity with
generally accepted accounting principles.
We also audited the adjustments described in Note 2 that were applied to restate the 1993 financial
statements. In our opinion, such adjustments are appropriate and have been properly applied.
Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a
whole. The supplementary information shown on pages 25 through 47 is presented for purposes of
additional analysis and is not a required part of the financial statements. The supplementary information,
except for management-supplied data on pages 41 through 43 on which we express no opinion, was
subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion
and the report of other auditors, is fairly stated, in all material respects, in relation to the financial
statements taken as a whole.
SOREN ♦ McADAM ♦ BARTELLS
Certified Public Accountants, Inc.
October 31, 1994 By: Jessie C. Powell, CPA
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MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Balance Sheets
June 30, 1994 1993
ASSETS
Current assets
Cash and cash equivalents $ 68,610 $ 55,109
Equity in pooled cash and investments 3,598,058 2,743,062
Accounts receivable 4,224,572 4,120,317
Note receivable 79,834 79,834
Inventory 1,114,367 1,095,968
Prepaid expenses 115,736 113.816
Total current assets 9,201,177 8.208,106
Restricted assets
Cash and cash equivalents (WEJPA) 26,526 44,008
Equity in pooled cash and investments 1,692,980 1,492,488
Cash with fiscal agent 281,298 1,613,318
Investments with fiscal agent 896,992
Taxes receivable 17,669
Total restricted assets 2,915,465 3.149,814
Property, plant, equipment and water rights
Property, plant, equipment and water rights 78,246,039 73,013,720
Less accumulated depreciation and amortization 25,366.461 23,323,285
52,879,578 49,690,435
Construction in progress 1.485.278 4,313,518
Total property, plant, equipment and water rights (net) 54 364,856 54,003,953
Other assets
Long-term note receivable - related party 79,834
Idle assets 326,790 344,073
Issuance costs of notes payable, net of accumulated amortization 2,878 6,742
Issuance costs of certificates of participation, net of
accumulated amortization 102,909 112,159
Total other assets 432,577 542,808
Total assets $66,914,075 $65.904,681
The accompanying notes are an integral part of these financial statements.
-3-
June 30, 1994 1993
LIABILITIES AND FUND EQUITY
Current liabilities
Current portion of notes payable $ 65,417 $ 102,125
Current portion of obligation under capital lease 123,517 118,632
Accounts payable 490,462 773,259
Related parties payable 797,143 683,526
Other accrued liabilities 10,454 9,210
Accrued compensation 676,009 638,234
Deposits for performance bonds and other charges subject to refund 6,212 12,796
Consumer deposits, advance payments and credit available 256,546 177,077
Deferred revenue 4,173 4.173
Total current liabilities 2,429,933 2,519,032
Current liabilities payable from restricted assets
Current portion of certificates of participation 539,181 507,494
Accrued interest payable 176,554 184,934
Consumer deposits 555,148 491,520
Total current liabilities payable from restricted assets 1,270,883 1,183.948
Long-term debt
Accrued compensation 540,866 488,749
Obligations under capital lease 228,427 344,810
Notes payable 65,417 167,542
Certificates of participation 10,124,019 10,631,512
Bonds payable 150,000 150,000
11,108,729 11,782,613
Less current portion (728.115) (728,251)
Total long-term debt 10,380.614 11,054,362
Total liabilities 14,081,430 14,757,342
Fund equity
Contributed capital 32,994,434 30,822,174
Retained earnings 19,838,211 20,325,165
52,832.645 51,147.339
Total liabilities and fund equity $66.914.075 $65,904,681
-4-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO -
WATER UTILITY ENTERPRISE FUND
Statements of Operations
For the Years Ended .Tune 30, 1994 1993
Operating revenues
Water sales
Metered consumers $12,681,372 $12,467,508
Fire service 169,576 164,052
Contractors 48,034 40,191
Municipal 323,669 265,522
Other agencies 72,123 149,327
13,294,774 13,086,600
Service charges 54,517 40,736
Hydrogeneration 67,578 65,635
Administration charges 670,391 659,418
Contracted services 605,866 576,008
Other 106,881 78,675
Total operating revenues 14,800,007 14,507,072
Operating expenses
Costs of water
Production 2,464,675 2,469,815
Purchased water, delivery charges and assessments 156,930 18,556
Other plant facilities 656,027 552,239
3,277,632 3,040,610
Distribution system 1,584,923 1,365,113
Overhead salaries and related costs 3,495,889 2,894,547
General administrative and overhead 3,691,859 3,706,089
Costs of contracted services 577,726 562,396
Depreciation 2,268,328 2,204,985
Total operating expenses 14,896.357 13,773,740
Operating income (loss) (96,350) 733,332
Nonoperating revenue (expense)
Interest income 449,784 424,650
Property taxes 33,198 389
Loss on capital assets and inventory items (82,948) (95,455)
Interest expense (777,524) (882,418)
Amortization of issuance costs (13,114) (13,930)
Grant revenue 85,564
Total nonoperating revenue (expense) (390,604) (481.200)
Net income (loss) $ (486.954) $ 252.132
The accompanying notes are an integral part of these financial statements.
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MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Statements of Changes in Fund Equity
For the Years Ended June 30, 1994 and 1993
1994
Contributed Retained
Capital Earninss Total
Fund equity balance, beginning of year, as
previously stated $30,887,406 $19,534,743 $50,422,149
Prior period adjustments (65,232) 790,422 725.190
Balance, beginning of year, as restated 30,822,174 20,325,165 51,147.339
Add nonoperating credits and adjustments
Charges to property owners for capital purposes
Service connections 219,817 219,817
Main extensions 363,499 363,499
Acquisition of service 578,150 578,150
Other 58,378 58,378
Grants from government agencies
Capital improvements 952,416 952,416
2,172,260 - 2,172,260
Net income (loss) (486,954) (486,954)
Balance, end of year $32,994.434 $19,838,211 $52,832,645
The accompanying notes are an integral part of these financial statements.
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1993
Contributed Retained
Capital Earnines Total
$27,597,130 $19,277,261 $46,874,391
795,772 795.772
27,597,130 20,073,033 47,670,163
255,612 255,612
168,899 168,899
1,029,032 1,029,032
107,875 107,875
1,663,626 1,663,626
3,225,044 - 3,225,044
252,132 252,132
$30,822.174 $20,325,165 $51,147,339
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MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Statements of Cash Flows
For the Years Ended June 30, 1994 1993
Cash flows from operating activities
Operating income (loss) $ (96,350) $ 733,332
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 2,268,328 2,204,985
Uncollectible accounts charged off 79,431 69,189
(Increase) decrease in
Accounts receivable (236,584) (476,916)
Inventory (18,399) 138,459
Prepaid expenses (1,920) 484,708
Increase (decrease) in
Accounts payable (282,797) 339,617
Related parties payables 113,617 92,509
Contracts payable (135,809)
Other accrued liabilities 1,244 6,274
Deposits for performance bonds and other charges (6,584) (458)
Consumer deposits, advance payments and credit available 143,097 (46,894)
Accrued vacation and sick leave 89,892 109,365
Net cash provided by operating activities 2,052,975 3,518,361
Cash flows from capital and related financing activities
Acquisitions of property, plant and equipment (2,671,232) (5,743,305)
Charges to property owners for capital purposes 1,139,921 1,561,418
Grant proceeds from government agencies 1,080,891 1,518,082
Payments received on notes receivable 79,834 163,666
Principal payments on notes payable (102,125) (96,238)
Principal payments under capital lease (116,383) (124,488)
Principal payments on certificates of participation (523,873) (493,057)
Property taxes received 15,529 389
Interest paid (769,524) (883,612)
Net cash used in capital and related financing activities (1,866,962) (4,097,145).
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MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Statements of Cash Flows
_ For the Years Ended June 30, 1994 1993
Cash flows from investing activities
Purchase of investments $ (896,992)
Interest received 430,466 $ 322,793
Net cash provided by (used in) investing activities (466,526) 322,793
Net decrease in cash and cash equivalents (280,513) (255,991)
Cash and cash equivalents at beginning of year 5,947,985 6,203,976
Cash and cash equivalents at end of year $ 5,667,472 $5,947,985
Noncash transactions
During the year ended June 30, 1994, developers contributed mains and gates at a recorded value of
$79,923.
The accompanying notes are an integral part of these financial statements.
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MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Notes to Financial Statements
1. Summary of Significant Accounting Policies
The City of San Bernardino Municipal Water Department (a component unit of the City of San
Bernardino) 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 semiautonomous authority to govern
the Department independent of the City Council. The City of San Bernardino Municipal Water
Department operates three enterprise funds: the Water Utility Enterprise Fund, the Sewer Utility Fund
and the Geothermal Utility Enterprise Fund. In addition, the Water Utility Enterprise Fund provides
administrative services and contracted services to the Sewer and Geothermal Utility Enterprise Funds.
The accounting policies of the Water Utility Enterprise Fund conform to generally accepted accounting
principles (GAAP) as applicable to governments. A summary of the more significant accounting policies
of the Water Utility Enterprise Fund follows:
Reporting Entity
As required by generally accepted accounting principles, these financial statements present the Water
Utility Enterprise Fund and its component unit, an entity for which the Fund is considered to be
financially accountable. The component unit, although a legally separate entity, is in substance part of
the Fund's operations and, therefore, data from this unit is combined with data of the Fund. Complete
financial statements for the componet unit may be obtained from the Municipal Water Department.
West End Water Development Treatment and Conservation Joint Powers Authoriri
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.
In accordance with the joint powers agreement, title to the WEJPA constructed water facilities will
automatically vest with the Municipal Water Department in the Water Utility Enterprise Fund upon
repayment of the certificates of participation issued to fund the construction. The WEJPA is governed
by a separate board consisting of a three-member commission consisting of one representative from each
agency's governing body.
These financial statements include only the activity of the Water Utility Enterprise Fund and its
component unit.
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MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Notes to Financial Statements
1. Summary of Significant Accounting Policies (Continued)
Fund Accounting
The accounts of the Fund are organized and operated on the basis of a fund. 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 Fund's financial statements include only the
proprietary fund type and its enterprise fund.
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 Fund applies all applicable FASB pronouncements in
accounting and reporting for its proprietary operation.
Cash and Investments
Cash for the Fund is pooled with the Department and 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 Fund 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 a maturity of three months or less when purchased. Cash
and cash equivalents are presented on the balance sheet as cash and cash equivalents, equity in pooled
cash and investments and cash with fiscal agent.
In addition, the Fund has monies and investments held by trustees or fiscal agents pledged to the payment
or security of certificates of participation, which are presented on the balance sheet as cash with fiscal
agent and investments with fiscal agent.
Receivables
Receivables are shown net of an allowance for uncollectibles; the allowance is based on management's
estimate.
- -11-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Notes to Financial Statements
1. Summary of Significant Accounting Policies (Continued)
Inventories
Inventories are valued at the lower of cost, using the average-cost method, or market.
Issuance Costs and Discount
Issuance costs and discount for notes payable and certificates of participation are being amortized using
the straight-line method over the term of the related note or certificate.
Property, Plant, Equipment and Water Rights
Property, plant and equipment are recorded at cost. 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 17 percent of direct construction cost
and are reflected 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 which vary from 5 to
50 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 of eight years. Amortization is included in
depreciation expense.
Water company stock is stated at cost, which approximates market value.
Idle Assets
Idle assets consist of water wells, pumping plants and reservoirs not in production.
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 have the option of receiving payment at their regular rate of pay for one week
of accumulated unpaid vacation. Employees' vacation benefits are recognized as a liability of the Fund.
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MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Notes to Financial Statements
1. Summary of Significant Accounting Policies (Continued)
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 and 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 accumulated sick
leave up to a maximum of 960 hours. Accrued sick leave benefits are recognized as a liability of the
Fund.
Fund Equity
Contributed capital represents equity acquired through capital grants and capital contributions from
developers, customers or other funds.
2. Prior Period Adjustment
Retained Earnings
The financial statements for 1993 have been restated to correct errors in the recording of revenue earned
from utility services provided, but not yet billed, and the recording of an allowance for doubtful accounts
as required by generally accepted accounting principles. The effect of the restatement was to decrease
net income for 1993 by $5,530. Retained earnings at the beginning of 1993 has also been adjusted for
the effects of the restatement on prior years by an increase of$795,772.
3. Cash and Investments
Cash and Cash Equivalents
As of June 30, 1994 and 1993, the carrying amount of the cash and cash equivalents was $95,136 and
$99,117 and the bank balance was $67,341 and $40,982, respectively. The bank balance is covered by
federal depository insurance (FDIC).
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MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Notes to Financial Statements
3. Cash and Investments (Continued)
Cash and Investments with Fiscal Agent
The Department has monies held by trustees or fiscal agents pledged to the payment or security of
certificates of participation. The California Government Code provides that these monies, in the absence
of specific statutory provisions governing the issuance of certificates, may be invested in accordance with
the ordinance, resolutions or indentures specifying the types of investments its trustees or fiscal agents
make. At June 30, 1994 and 1993, cash and investments with fiscal agent in the amount of$1,178,290
and $1,613,318, respectively, were covered by collateral held by the government's agent in the
government's name.
4. Accounts Receivable
Accounts receivables at June 30, 1994 and 1993 consisted of the following:
1994 1993
Less Net Less Net
Amount Allowance Receivable Amount Allowance Receivable
Consumer $3,030,747 $185,272 $2,845,475 $2,584,312 $123,290 $2,461,022
Related parties 1,109,523 1,109,523 1,240,873 1,240,873
Grant funding 120,239 120,239 248,714 248,714
Other 188,105 38,770 149,335 198,056 28,348 169,708
$4,448.614 $224,042 14,224,572 $4,271,955 $151,638 $4,120,317
5. Note Receivable
i
Note receivable at June 30, 1994 and 1993 consisted of the following:
1994 1993
City of San Bernardino Development Department
Interest rate: None
Repayment provision: $79,834 annual installments
Balances $ 79,834 $159,668
Less current portion (79,834) (79,834)
Long-term portion $
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MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Notes to Financial Statements
6. Property, Plant, Equipment and Water Rights
A summary of property, plant, equipment and water rights as of June 30 follows:
1994 1993
Sundry lands, rights-of-way, service areas and easements $ 2,368,402 $ 2,307,493
Water rights, wells, pumping plants, reservoirs, etc. 27,146,695 24,602,127
Distribution systems 42,431,774 40,462,496
Shops, office and store yards 1,094,227 695,865
Tools and equipment 1,578,163 1,587,534
Automobiles and trucks 1,705,189 1,619,726
Office leasehold improvements 55,409 47,322
Office and engineering equipment 1,395,569 1,247,793
"E" Street property 54,202 54,202
Radio and interoffice communications equipment 215,009 200,346
Telemetering systems and equipment 65,348 57,052
Miscellaneous capital items 136.052 131,764
78,246,039 73,013,720
Less accumulated depreciation and amortization 25,366.461 23.323,285
52,879,578 49,690,435
Construction in progress 1,485,278 4.313,518
Total property, plant, equipment and water rights (net) $54,364.856 $54.003,953
Details of construction in progress as of June 30 follow:
1994 1993
19th Street GAC plant $2,009,279
WEJPA water facilities 100,000
Rehabilitation yard facilities 368,749
Devils Canyon filter plant 330,134
19th Street boosting/blending station $ 333,609
Devils Canyon filter plant survey 140,659
Other miscellaneous projects 1,011.010 1,505,356
Totals $1485.278 $4,313,518
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MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Notes to Financial Statements
7. Capital Leases
The Fund has entered into lease agreements for various pieces of equipment. All leases qualify as capital
leases for accounting purposes and, therefore, have been recorded at the present value of the future
minimum lease payments as of the date of their inception. The following is an analysis of equipment
leased under capital lease obligations as of June 30:
June 30,
1994 1993
Equipment, automobiles and trucks $611,806 $655,493
Less accumulated amortization 336,692 253,396
$275,114 $402,097
Amortization charged to depreciation expense for the years ended June 30, 1994 and 1993 amounted to
$100,391 and$106,772, respectively. The following is a schedule of the future minimum lease payments
under these capital lease obligations and the present value of the net minimum lease payments at June 30,
1994:
For the year ended June 30,
1995 $139,469
1996 103,464
1997 6,705
Total minimum lease payments 249,638
Less amount representing interest 21.211
Present value of future minimum lease payments 228,427
Less current portion 123,517
Long-term portion of obligations under capital leases $101910
-16-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Notes to Financial Statements
8. Long-Term Debt
The following is a summary of changes in long-term debt obligations for the year ended June 30, 1994:
Balance Balance
July 1, 1993 Additions Reductions June 30, 1994
Accrued compensation $ 488,749 $52,117 $ 540,866
Capital lease obligations 344,810 $116,383 228,427
Notes payable 167,542 102,125 65,417
Certificates of participation 10,631,512 507,493 10,124,019
Bonds payable 150,000 150.000
$11,782.613 $52,117 1726,001 111,108,729
The following is a description of long-term debt as of June 30:
1994 1993
Notes payable
East Valley Water District
Interest rate: 7.5%
Repayment provisions: Monthly principal and interest
payments of$7,498 through March 1, 1995
Balances $65,417 $147,124
Herbert B. Wessel
Interest rate: 4%
Repayment provisions: Annual principal payments of
$20,418 through March 1, 1994; interest paid at maturity
Balance 20,418
65,417 167,542
Less current portion 65.417 102.125
Long-term portion $ - $ 65,417
-17-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Notes to Financial Statements
8. Long-Term Debt (Continued)
Annual Outstandin e
Interest Issue Maturity Original Principal June 30,
Rates Date Date Amount Installments 1994 1993
Certificates of participation
1990 Water facilities 6.1% 1991 2005 $11,461,581 $493,057
to to
7.0% $1,232,643 $10,124,019 $106631,512
Bonds payable
South San Bernardino Water
District Waterworks Bonds,
Series C 7.75% 1988 2013 $150,000 $150,000 $150,000 $150,000
The requirements to amortize notes payable and certificates of participation subsequent to June 30, 1994
are as follows:
June 30, Principal Interest Total
Notes payable 1995 $65,417 $2,061 $67,478
Certificates of participation 1995 $ 539,181 $ 686,123 $ 1,225,304
1996 570,910 650,835 1,221,745
1997 633,541 609,835 1,243,376
1998 665,416 565,105 1,230,521
1999 728,193 516,539 1,244,732
Thereafter 6.986,778 1.861,199 8,847,977
$10,124,019 $4,889,636 $15,013,655
The bonds payable are due in 2013 and the Fund is required to establish a sinking fund. The balance of
the sinking fund and future debt service requirements as of June 30, 1994 follows:
1958 Series C Bonds $150,000
Accumulated sinking fund at 6-30-94 (10,000)
Future sinking fund requirements $140,000
-18-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Notes to Financial Statements
8. Long-Term Debt (Continued)
Sinking
Fund
June 30, Requirement Interest Total
1995 $ 5,000 $ 11,625 $ 16,625
1996 5,000 11,625 16,625
1997 5,000 11,625 16,625
1998 5,000 11,625 16,625
1999 5,000 11,625 16,625
Thereafter 115,000 104,625 219,625
$140,000 1162,750 $302,750
9. Operating Leases
The Fund leases office space from the City of San Bernardino and equipment under a noncancellable
operating lease terminating in 2002. The following is a schedule of minimum lease payments as of
June 30, 1994:
Office Space Equipment Total
For the year ending June 30,
1995 $ 161,259 $12,556 $ 173,815
1996 161,259 1,046 162,305
1997 161,259 161,259
1998 161,259 161,259
1999 161,259 161,259
Thereafter 443.462 443.462
$1,249,757 113,602 $1,263,359
Rental expense for the years ended June 30, 1994 and 1993 amounted to $169,084 and $168,038,
respectively.
10. Defined Benefit Pension Plan
The Water Department (Water Utility Enterprise and Sewer Utility), as a component unit of the City of
San Bernardino, contributes to the California Public Employees' Retirement System (PERS), an agent
multiple-employer public employee retirement system that acts as a common investment and administrative
agent for participating public entities within the State of California.
-19-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Notes to Financial Statements
10. Defined Benefit Pension Plan (Continued)
The City of San Bernardino is the contracting agent with PERS, and the participants' accounts are not
segregated for the Department. Contributions are made in accordance with the actuarially determined
employer requirements. Complete information on the funding status, actuarially determined contributions
and trend information is included in the City's Comprehensive Annual Financial Report.
The following condensed information applies to the total employees' accounts for the City of San
Bernardino as a whole.
Total unfunded pension benefit obligation applicable to employees was $9,210,320 at June 30, 1993 as
follows:
Pension benefit obligation
Retirees and beneficiaries currently receiving benefits and terminated
employees not yet receiving benefits $122,346,489
Current employees
Accumulated employees' contributions including allocated investment earnings 50,845,043
Employer-financed vested 60,578,439
Employer-financed nonvested 2,431,715
Total pension benefit obligation 236,201,686
Net assets available for benefits, at cost (market value is $263,082,993) 226.991.366
Unfunded pension benefit obligation $ 9.2
The Department's payroll for employees covered by PERS for the year ended June 30, 1994 was
$8,143,780, which was 95 percent of the Department's payroll and for the year ended June 30, 1993 was
$7,610,534, which was 88 percent of the Department's payroll.
11. Postretirement Health Care Benefits
In addition to the pension benefits described in Note 10, the Department provides postretirement health
care benefits to all employees who retire from the Department on or after attaining age 55 with a
minimum of 15 years of service. Currently, eight Water Utility Enterprise Fund retirees meet those
eligibility requirements. The Department pays monthly contributions for health insurance premiums up
to $150 per month per retiree. The Department also pays $16 per month per retiree to PERS for
administrative costs of this program. Expenditures for monthly premiums are recognized as incurred.
During the years ended June 30, 1994 and 1993, expenditures of$15,848 and $11,530, respectively, were
recognized for postretirement health care benefits for the Water Utility Enterprise Fund.
-20-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Notes to Financial Statements
12. Related Party Transactions
Following is a summary of transactions and balances with the City of San Bernardino, its various
departments and the Sewer and Geothermal Utility Enterprise Funds:
June 30,
1994 1993
Income
City of San Bernardino
Revenue from water charges $ 335,924 $ 354,868
Administrative charges - refuse 121,139 119,274
Repairs and maintenance 2,195 4,536
Relocation of services and mains 8,760 121,943
Reimbursement - consulting services 7,436 7,314
Interest income 383,315 348,363
Miscellaneous income 1,228 466
Redevelopment Agency
Reimbursement - consulting services 7,436 7,314
Retrofit installation 50,800 26,321
Repairs and maintenance 147
New services installation 203,730 49,483
Sewer Utility Enterprise Fund
Administration charges 484,400 464,185
Cost reimbursement 50,664 118,162
Water services 35,215 8,553
Computer charges 35,753 30,048
Geothermal Utility Enterprise Fund
Administration charges 19,665 18,889
Equipment rental 12,167 5,215
Labor benefits 22,709 17.974
Total income $1,782,683 $1,702,908
-21-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO -
WATER UTILITY ENTERPRISE FUND
Notes to Financial Statements
12. Related Party Transactions (Continued)
June 30,
1994 1993
Expenses
City of San Bernardino
Street - cut charges $ 22,294 $ 27,003
Street collection - west side 1,114 1,047
Radio maintenance 955 3,432
Workers' compensation program 127,063 102,417
Loss prevention program 26,518 30,441
Printing services 6,395 10,268
Warehouse purchases 5,588 2,009
City Hall rent 156,528 156,528
Telephone charges 79,283 140,492
Miscellaneous repairs 407 1,816
Refuse disposal service 10,024 12,946
Employee assistance program 7,707 3,830
Civil Service 31,050 31,500
Property tax assessments 27,466
Rideshare coordination 2,130
Permits and engineering services 8,506 1,673
Miscellaneous 345 1,407
Redevelopment Agency
Reimbursement - consulting services 6,000 10,500
Sewer Utility Enterprise Fund
Purchases 2,714 5,918
Miscellaneous 155 20
Total expenses $492,646 $573.298
-22-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Notes to Financial Statements
12. Related Party Transactions (Continued)
June 30,
1994 1993
Receivables
City of San Bernardino
Parks and Recreation $ 75
Finance Department $ 149,033 113,128
Refuse Department 81,932
Public Services 10,687
Public Works 98,680
Redevelopment Agency 106,605 23,289
Sewer Utility Enterprise Fund 233,272 202,407
Geothermal Utility Enterprise Fund 609,926 721.361
1,109,523 1,240,872
Note receivable from City of San Bernardino
Redevelopment Agency - five annual receipts to $79,834
starting June 30, 1991 79,834 159.668
Total receivables $1,189,357 $1,400,540
Payables
Due to the City of San Bernardino Finance Department -
various terms for repayment $796,437 $680,570
Due to the City of San Bernardino Sewer Utility Enterprise Fund -
various terms for repayment 706 2.956
Total payables $797,143 $683,526
The Fund collects and transmits to the City of San Bernardino 10 percent of collections on gross water
sales, exclusive of sales to the City. Collections submitted to the City are as follows:
1994 1993
$1,380.223 $1,401,473
-23-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Notes to Financial Statements
13. Commitments and 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 Fund. The amount, if any, of expenditures which may be
disallowed by the grantor cannot be determined at this time although the Fund expects such amounts, if
any, to be immaterial.
Litigation
The Municipal Water Department is a defendant in various 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 Water Utility
Enterprise Fund.
Risk Management
The Fund is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;
errors and omissions and natural disasters for which the Municipal Water Department carries commercial
insurance coverage for the Water Utility Enterprise Fund.
In addition, the Municipal Water Department, in conjunction with the City of San Bernardino, established
a limited risk management program for workers' compensation. Premiums are paid on behalf of the
Water Utility Enterprise Fund by the Municipal Water Department to pay claims and administrative costs.
Commitments
Commitments in the form of signed contracts for costs to complete on construction projects or other
improvements amounted to $3,200,377 at June 30, 1994.
-24-
SUPPLEMENTARY INFORMATION
son THOMAS E.AHERN,C.P.A.
MEMBERS BRUCE J.BARTELLS.C.P.A.
GARY L.CHRISTENSON,C.P.A.
ASSOCIATED REGIONAL
CHARLES P.COPELAND,C.P.A.1CCOUNTING FIRMS(ARAF) RHEE ELIKER,C.P.A.WING K.LAU,C.P.A.
DOUGLAS R.McADAM.C.P.A.
AMERICAN INSTITUTE OF JESSIE C.POWELL,C.P.A.
CERTIFIED PUBLIC ACCOUNTANTS SOREN • McADAM • BARTELLS JAMES L.SOREN,C.P.A.
KIRK G.STITT,C.P.A.
PRIVATE COMPANIES PRACTICE SECTION CERTIFIED PUBLIC ACCOUNTANTS. INC. DAVID P.TUTTLE,C.P.A.
INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTARY INFORMATION
Board of Water Commissioners
Municipal Water Department
Water Utility Enterprise Fund
City of San Bernardino, California
We have audited the financial statements of the Municipal Water Department - Water Utility Enterprise
Fund of the City of San Bernardino, California as of and for the year ended June 30, 1994 and have
issued our report thereon dated October 31, 1994. These financial statements are the responsibility of
the Municipal Water Department's management. Our responsibility is to express an opinion on these
financial statements based on our audit. We did not audit the financial statements of the West End Water
Development, Treatment and Conservation Joint Powers Authority that has been consolidated with the
Municipal Water Department- Water Utility Enterprise Fund. This represents 2 percent and .4 percent,
respectively, of the assets and total revenue of the Municipal Water Department - Water Utility Enterprise
Fund for the year ended June 30, 1994. That portion was audited by other auditors whose report has
been furnished to us, and our opinion, insofar as it relates to the amounts included for the West End
Water Development, Treatment and Conservation Joint Powers Authority, is based solely on the report
of the other auditors.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing
Standards issued by the Comptroller General of the United States and Office of Management and Budget
Circular A-128, Audits of State and Local Governments. Those standards and OMB Circular A-128
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole.
The supplementary financial and statistical information on pages 26 through 47, including the Schedule
of Federal Financial Assistance, is presented for purposes of additional analysis and is not a required part
of the financial statements. The supplementary information, except for management supplied data on
pages 41 through 43, on which we express no opinion, was subjected to the auditing procedures applied
in the audit of the financial statements and, in our opinion and the report of other auditors, is fairly stated
in all material respects in relation to the financial statements taken as a whole.
SOREN ♦ McADAM ♦ BARTELLS
Certified Public Accountants, Inc.
October 31, 1994 By: essie C. Powell, CPA
-25-
2068 Orange Tree Lane,Suite 100 ♦ Post Office Box 8010 ♦ Redlands,CA 92375-1210 ♦ (909)798-2222 ♦ (909)824-5110 ♦ FAX(909)798-9772
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Schedule of Federal Financial Assistance
For the Year Ended June 30, 1994
Federal Grantor Catalog of Federal Pass-Through Program/
Pass-Through Grantor Domestic Assistance Grantor's Award Reimbursable
Program Title Number Number Amount Expenditures
U.S. Department of HUD
Pass-through from the
County of San Bernardino
Rehabilitation of
Delman Heights 14.218 B-94-MC-06-0539 $338,000 $298,237
Rehabilitation of
Cardiff Farms 14.218 B-94-MC-06-0539 67,256 67,256
Center for Individuals
with Disabilities 14.218 B-94-MC-06-0539 60.800 60.800
$466.056 $426.293
-26-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Schedule of Property, Plant, Equipment and Water Rights
and Accumulated Depreciation
For the Year Ended June 30, 1994
Property, Plant, Enuipment and Water Rights
Balance Balance
July 1, 1993 Additions Retirements June 30, 1994
Sundry lands, rights-of-way, service
areas and easements $ 2,307.493 $24,069,909 $ 2,368,402
Water rights, wells, pumping plants,
reservoirs, etc.
Devils Canyon residence 28,589 28,589
Antil plant 674,084 30,308 $ 5,000 699,392
Baseline and California plant 74,995 119,091 194,086
Cajon Pass well/intake 166,864 3,898 170,762
Cajon Blvd. plant 1,139,117 2 1,139,119
Cajon Blvd. hydrogeneration plant 164,728 164,728
Daley Canyon reservoir 246,922 4,158 4,959 246,121
Del Rosa reservoir #1 and pumping
facilities 55,922 55,922
Del Rosa reservoir #2 32,631 32,631
Del Rosa reservoir #3 730,946 730,946
Del Rosa booster station 103,796 103,796
Devils Canyon filter plant/chlorination
reservoir #1 764,834 7,732 772,566
Devils Canyon reservoir#2 -
college tank 188,748 188,748
Devils Canyon well #1 boosters 173,698 1 173,699
Devils Canyon well #2 100,037 17,686 117,723
Devils Canyon well #3 190,201 190,201
Devore reservoir 516,875 2,856 5,248 514,483
Devore hydrogeneration station 333,122 333,122
Mount Vernon assets 251,450 37,189 288,639
Electric Drive reservoir and
pumping facility 95,819 43,875 3,721 135,973
Ellena Bros. well 100,049 100,049
Foothill booster station 165,889 165,889
40th Street well 402,241 402,241
Gilbert Street plant 125,512 5,810 499 130,823
Kenwood well 376,756 376,756
-27-
Accumulated Depreciation Net Book
Balance Balance Value
July 1 1993 Depreciation Retirements June 30, 1994 June 30, 1994
$ 2,368,402
$ 10,421 $ 897 $ 11,318 17,271
223,052 23,265 $ 1,300 245,017 454,375
36,718 4,487 41,205 152,881
41,109 2,229 43,338 127,424
299,506 31,386 330,892 808,227
24,779 3,313 28,092 136,636
96,520 6,257 1,240 101,537 144,584
39,771 1,248 41,019 14,903
22,518 701 23,219 9,412
157,129 15,708 172,837 558,109
30,823 4,506 35,329 68,467
257,115 22,666 279,781 492,785
95,327 4,691 100,018 88,730
81,263 6,220 87,483 86,216
83,303 2,252 85,555 32,168
30,796 4,571 35,367 154,834
101,522 10,629 984 111,167 403,316
19,986 6,662 26,648 306,474
3,428 1,791 5,219 283,420
77,489 3,129 3,610 77,008 58,965
22,122 2,285 24,407 75,642
10,833 7,222 18,055 147,834
11,632 11,632 23,264 378,977
57,325 3,722 61,047 69,776
22,715 22,715 354,041
-28-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Schedule of Property, Plant, Equipment and Water Rights
and Accumulated Depreciation
For the Year Ended June 30, 1994
Property, Plant, Equipment and Water Rights
Balance Balance
July 1. 1993 Additions Retirements .Tune 30. 1994
Water rights, wells, pumping plants,
reservoirs, etc. (Continued)
LeRoy Street well and pumping station $ 181,717 $ 181,717
Lynwood plant 118,881 $ 83,910 $ 4,816 197,975
Lytle Creek plant 1,847,327 1 4,434 1,842,894
Mallory plant 80,654 80,654
Meyers Canyon reservoir 1,873,763 7,208 9,393 1,871,578
Meyers Canyon pumping station 46,633 46,633
Mill and "D" Street plant 89,931 89,931
Newmark plant 1,506,099 1,506,099
Newmark stripping towers 950,951 950,951
19th Street plant 190,416 165,942 42,116 314,242
19th Street GAC plant 2,013,764 2,013,764
North "E" Street (25th and "E" Streets) 107,696 2,856 4,467 106,085
Olive and Garner Street well 516,172 18,890 5,450 529,612
Palm Avenue reservoirs #1 and#2 797,581 797,581
Palm Avenue hydrogeneration plant 235,487 235,487
Perris Hill plant 750,686 29,116 4,514 775,288
Ridgeview reservoir 36,191 21,299 57,490
Ridgeview booster station 25,805 5,379 20,426
San Bernardino Heights mountain
reservoirs #1 and #2 150,888 7,365 158,253
Seventh Street plant 279,693 5,934 285,627
Shandin Hills plant #1 63,727 63,727
Shandin Hills plant #2 349,684 2,239 4,434 347,489
Sierra Way plant 449,977 4,654 454,631
17th Street GAC plant 1,047,697 1,047,697
16th Street plant 57,131 57,131
Sycamore Canyon reservoirs #1 and#2 2,000,072 2,000,072
Sycamore Canyon reservoir station #1 12,118 12,118
Sycamore Canyon reservoir station #2 12,461 12,461
Sycamore Canyon reservoir stations
#3 and #4 311,034 311,034
10th and "J" Street well 576,211 576,211
30th and Mt. View plant 246,205 246,205
-29-
Accumulated Depreciation Net Book
Balance Balance Value
July 1, 1993 Depreciation Retirements Tune 30, 1994 Tune 30, 1994
$ 21,852 $ 6,582 $ 28,434 $ 153,283
56,437 6,899 $ 4,654 58,682 139,293
758,842 50,954 809,796 1,033,098
48,224 2,658 50,882 29,772
85,982 39,015 1,240 123,757 1,747,821
26,414 2,018 28,432 18,201
29,167 3,059 32,226 57,705
809,948 33,483 843,431 662,668
185,749 48,013 233,762 717,189
94,335 6,292 14,202 86,425 227,817
48,707 48,707 1,965,057
64,188 3,624 838 66,974 39,111
24,900 17,138 327 41,711 487,901
183,593 17,403 200,996 596,585
75,355 9,420 84,775 150,712
453,357 16,432 1,411 468,378 306,910
17,879 2,377 20,256 37,234
6,496 1,513 1,345 6,664 13,762
76,743 3,436 80,179 78,074
72,446 8,268 80,714 204,913
17,367 4,818 22,185 41,542
26,493 11,931 1,128 37,296 310,193
70,568 12,796 83,364 371,267
240,058 46,151 286,209 761,488
36,245 1,255 37,500 19,631
149,370 40,956 190,326 1,809,746
10,292 93 10,385 1,733
6,917 333 7,250 5,211
18,662 12,441 31,103 279,931
27,589 18,393 45,982 530,229
106,738 7,960 114,698 131,507
-30-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Schedule of Property, Plant, Equipment and Water Rights
and Accumulated Depreciation
For the Year Ended June 30, 1994
Property, Plant, Equipment and Water Rights
Balance Balance
July 1, 1993 Additions Retirements June 30, 1994
Water rights, wells, pumping plants,
reservoirs, etc. (Continued)
27th and Acacia Street plant $ 108,715 $ 108,715
23rd and "E" Street pumping station 79,036 79,036
Vincent plant 42,722 42,722
Waterman Avenue plant 584,400 $ 13,214 597,614
Waterman Avenue stripping towers 1,649,702 1,649,702
Ground water monitoring wells 8,582 8,582
Permanent water rights - W.S.B.C.W.D. 6,447 6,447
Water stock - Del Rosa Mutual Water
Company 5,810 5,810
24,602,127 2.648,998 $104,430 27,146,695
Distribution systems
Mains 27,398,060 1,323,705 33,600 28,688,165
Gates 2,786,487 143,543 1,403 2,928,627
Fire hydrants 1,785,409 174,435 20 1,959,824
Meters - general 2,700,275 86,132 134,102 2,652,305
Service connections 5,792,265 464,508 53,920 6.202,853
40,462,496 2,192,323 223,045 42,431,774
Shops, office and store yards
Second and "D" Street property 644,950 411,009 12,647 1,043,312
South San Bernardino shop and yard 50,915 50,915
695,865 411.009 12,647 1.094,227
Tools and equipment 1,587.534 43.414 52,785 1.578.163
Automobiles and trucks 1,619,726 139.957 54,494 1,705,189
Office leasehold improvements 47,322 8.087 55.409
-31-
Accumulated Depreciation Net Book
Balance Balance Value
July 1, 1993 Depreciation Retirements Tune 30, 1994 Tune 30, 1994
$ 61,654 $ 3,198 $ 64,852 $ 43,863
45,253 2,222 47,475 31,561
20,335 900 21,235 21,487
223,005 13,759 236,764 360,850
261,021 84,079 345,100 1,304,602
3,081 343 3,424 5,158
6,447
5,810
6,251,042 793,103 $ 32,279 7,011,866 20,134,829
8,958,320 560,528 2,216 9,516,632 19,171,533
676,764 57,137 30 733,871 2,194,756
421,022 37,452 19 458,455 1,501,369
2,142,738 200,911 74,036 2,269,613 382,692
2,002,200 161,687 18,155 2,145,732 4,057,121
14,201,044 1,017,715 94,456 15,124,303 27,307,471
310,510 32,484 11,008 331,986 711,326
25,217 1,250 26,467 24,448
335,727 33,734 11,008 358,453 735.77
815,836 111.411 22,509 904,738 673,425
1,020,651 165,801 46,786 1,139,666 565,523
15,968 2,930 18,898 36,511
-32-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Schedule of Property, Plant, Equipment and Water Rights
and Accumulated Depreciation
For the Year Ended June 30, 1994
Property, Plant, Equipment and Water Rights
Balance Balance
July 1, 1993 Additions Retirements .Tune 30, 1994
Office and engineering equipment
General office equipment $ 397,344 $ 20,636 $ 2,757 $ 415,223
Computer equipment 850,449 129,897 980.346
1,247,793 150,533 2,757 1,395.569
"E" Street property 54,202 54.202
Radio and interoffice
communications systems 200,346 15,419 756 215.009
Telemarketing systems and
equipment 57,052 8,296 65.348
Miscellaneous capital items 131,764 4,288 136.052
Totals $73,013,720 $5,683,233 1450,914 178,246,039
-33-
Accumulated Depreciation Net Book
Balance Balance Value
July 1. 1993 Depreciation Retirements .Tune 30. 1994 Tune 30, 1994
$ 188,971 $ 30,125 $ 736 $ 218,360 $ 196,863
287,316 73,372 360,688 619,658
476,287 103,497 736 579,048 816.521
35,884 34 35,918 18,284
117,737 15,727 95 133,369 81,640
_48,987 2,450 51,437 13,911
4,122 4,643 8,765 127,287
$23,323,285 $2,251,045 1207,869 $25,366,461 $52,879,578
-34-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Bond Schedule - General Obligation Waterworks Bond, Series C
For the Year Ended June 30, 1994
Sinking Fund Interest
Date Requirement Interest Total Rate
9-1-1994 $ 5,812 $ 5,812 7.75%
3-1-1995 $ 5,000 5,812 10,812 7.75
9-1-1995 5,812 5,812 7.75
3-1-1996 5,000 5,812 10,812 7.75
9-1-1996 5,812 5,812 7.75
3-1-1997 5,000 5,812 10,812 7.75
9-1-1997 5,812 5,812 7.75
3-1-1998 5,000 5,812 10,812 7.75
9-1-1998 5,812 5,812 7.75
3-1-1999 5,000 5,812 10,812 7.75
9-1-1999 5,812 5,812 7.75
3-1-2000 5,000 5,812 10,812 7.75
9-1-2000 5,812 5,812 7.75
3-1-2001 5,000 5,812 10,812 7.75
9-1-2001 5,812 5,812 7.75
3-1-2002 5,000 5,812 10,812 7.75
9-1-2002 5,812 5,812 7.75
3-1-2003 5,000 5,812 10,812 7.75
9-1-2003 5,812 5,812 7.75
3-1-2004 5,000 5,812 10,812 7.75
9-1-2004 5,812 5,812 7.75
3-1-2005 5,000 5,812 10,812 7.75
9-1-2005 5,812 5,812 7.75
3-1-2006 10,000 5,812 15,812 7.75
9-1-2006 5,812 5,812 7.75
3-1-2007 10,000 5,812 15,812 7.75
9-1-2007 5,812 5,812 7.75
3-1-2008 10,000 5,812 15,812 7.75
9-1-2008 5,812 5,812 7.75
3-1-2009 10,000 5,812 15,812 7.75
9-1-2009 5,812 5,812 7.75
3-1-2010 10,000 5,812 15,812 7.75
9-1-2010 5,812 5,812 7.75
3-1-2011 10,000 5,812 15,812 7.75
9-1-2011 5,812 5,812 7.75
3-1-2012 10,000 5,812 15,812 7.75
9-1-2012 5,812 5,812 7.75
3-1-2013 15.000 5,812 20,812 7.75
140,000 220,856 360,856
Amount in sinking fund at 6-30-94 10,000 10,000
$150,000 $220,856 $370,856
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MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Certificates of Participation Schedule - West End Water Development,
Treatment and Conservation Joint Powers Authority
June 30, 1994
Interest
Date Due Principal Interest Total Rate
10-1-1994 $ 539,181 $ 353,106 $ 892,287 6.50%
4-1-1995 335,079 335,079 6.50
10-1-1995 570,910 335,079 905,989 6.60
4-1-1996 315,757 315,757 6.60
10-1-1996 633,541 315,757 949,298 6.70
j 4-1-1997 294,078 294,078 6.70
10-1-1997 665,416 294,078 959,494 6.80
4-1-1998 271,027 271,027 6.80
10-1-1998 728,193 271,027 999,220 6.90
4-1-1999 245,512 245,512 6.90
10-1-1999 791,066 245,512 1,036,578 6.90
4-1-2000 217,870 217,870 6.90
10-1-2000 854,037 217,870 1,071,907 7.00
4-1-2001 187,670 187,670 7.00
10-1-2001 917,106 187,670 1,104,776 7.00
4-1-2002 155,313 155,313 7.00
10-1-2002 980,271 155,313 1,135,584 7.00
4-1-2003 120,799 120,799 7.00
10-1-2003 1,074,388 120,799 1,195,187 7.00
4-1-2004 83,049 83,049 7.00
10-1-2004 1,137,797 83,049 1,220,846 7.00
4-1-2005 43,142 43,142 7.00
10-1-2005 1,232,113 43,142 1,275,255 7.00
$10,124,019 $4,891,698 $15,015,717
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MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Schedule of Direct Plant Production Expenses
For the Year Ended June 30, 1994
Materials
and All 1993-94 1992-93 Increase
Salaries Power Supplies Others Total Total (Decrease)
Perris Hill $ 14,078 $ 32,460 $ 1,352 $ 824 $ 48,714 $ 48,904 $ (190)
Sierra Way (and
16th Street) 7,641 218,311 (427) 1,596 227,121 256,531 (29,410)
Antil pumping 33,055 160,791 1,764 2,132 197,742 109,541 88,201
Waterman Avenue
pumping 12,860 172,674 2,573 3,357 191,464 289,585 (98,121)
Mill and "D" Street 4,364 37,792 1,210 43,366 46,865 (3,499)
Lytle Creek 37,172 93,289 12,761 30,927 174,149 142,394 31,755
Seccombe well -
7th Street plants 4,198 72,382 3,049 60 79,689 85,292 (5,603)
Cajon Pass and
Vincent plant 6,280 34,694 1,512 4 42,490 37,612 4,878
"E" Street plant (23rd
and 2nd Streets) 4,844 54 331 5,229 4,221 1,008
Devils Canyon 58,589 126,516 1,880 7,939 194,924 159,120 35,804
Newmark 15,260 155,253 5,270 533 176,316 325,338 (149,022)
19th Street 23,068 169,409 4,292 69,515 266,284 15,544 250,740
Gilbert Street 14,799 21,697 2,135 12,586 51,217 24,067 27,150
Lynwood 12,806 66,101 11,692 3,886 94,485 77,301 17,184
27th Street 2,488 958 1 3,447 29,409 (25,962)
Baseline and California
plant 4,688 19,938 491 25,117 1,885 23,232
Ellena Bros. well 81 81 18,672 (18,591)
Cajon Boulevard 14,771 142,723 3,374 2,623 163,491 100,489 63,002
Mallory well and
reservoir 3,783 11,329 40 1,053 16,205 14,142 2,063
30th and Mt. View 2,749 130,655 8,118 1,474 142,996 135,028 7,968
Olive and Garner well 4,209 96,974 1,538 12,371 115,092 178,416 (63,324)
LeRoy Street well 4,090 33,541 15 9 37,655 118,377 (80,722)
10th and "J" Street 3,921 76,665 763 280 81,629 157,767 (76,138)
Kenwood well 3,875 64,260 412 198 68,745 65,175 3,570
40th Street well 2,131 14,570 263 63 17,027 28.140 (11,113)
Totals $295,800 $1,953,036 $63,198 $152,641 $2,464,675 $2,469,815$ (5,140)
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MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Schedule of Direct Expenses of Other Plant Facilities
For the Year Ended June 30, 1994
Materials Outside
and Service 1993-94 1992-93 Increase
Salaries Power Supplies and Other Total Total (Decrease)
Chlorination through
production facilities $ 1,777 $22,336 $ 24,113 $ 25,064 $ (951)
Sycamore Canyon
reservoir 4,168 $ 19 1,505 5,692 6,399 (707)
Sycamore Canyon pumping
station #1 1,647 $ 301 565 2,513 1,904 609
Sycamore Canyon pumping
station #2 1,830 309 1,849 3,988 1,922 2,066
Del Rosa reservoir #1 3,946 8,846 113 12,905 14,906 (2,001)
Del Rosa reservoir #2 8,407 3,122 11,529 6,017 5,512
Del Rosa reservoir #3 9,097 1,800 1,068 11,965 7,771 4,194
Quail and Daley Canyon
reservoir 8,844 158 21 9,023 6,816 2,207
Electric Drive reservoir 11,690 39,127 4,079 4,166 59,062 58,477 585
San Bernardino Heights
reservoir 5,337 5,337 1,391 3,946
Shandin Hills reservoir #1 4,549 2,191 495 4,575 11,810 5,916 5,894
Shandin Hills reservoir #2 4,664 5,227 495 220 10,606 10,174 432
40th and Harrison pumping
station 66 66 120 (54)
Ridgeview pumping station 2,373 3,065 22 5,460 7,463 (2,003)
Meyers Canyon reservoir 12,999 12,679 2,972 2,433 31,083 25,568 5,515
Ridgeview reservoir 3,355 (11) 3,344 2,241 1,103
Palm Avenue reservoir 5,487 768 675 6,930 3,509 3,421
Devore reservoir 4,407 1,953 93 6,453 2,751 3,702
Newmark stripping towers 10,723 7,788 88,974 1,995 109,480 80,580 28,900
Waterman stripping towers 11,452 13,462 67,357 1,417 93,688 88,310 5,378
Del Rosa booster station 5,652 24,477 885 110 31,124 26,431 4,693
Delmann Heights system 561 14 575 1,602 (1,027)
17th Street GAC plant 10,068 99,128 2,100 111,296 108,092 3,204
Acacia Street well 311 13 3,461 3,785 579 3,206
Devils Canyon College 40,222 705 (71) 40,856 35,093 5,763
Sycamore booster
stations #3 and #4 1,670 7,323 412 9,405 (9,752) 19,157
Foothill booster station 4,291 28,765 22 33,078 32,047 1,031
South San Bernardino
system 861 861 848 13
$180,454 $153,560 $275,873 546,140 $656,027 $552,239 $103,788
-38-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE
Schedule of Water Production and Purchased Cost
For the Year Ended June 30, 1994
Purchased Water* Produced Water
Per 1,000 Per 1,000
Amount Cubic Feet Amount Cubic Feet
Summary of total water
production and purchased cost
Total production, purchases and
supplemental 114,969,600 1,752,688,700
Direct plant production expense
Direct expense of other plant
facilities 656,027
Cost of purchased water
(including assessments) $120.000 36.930
Total expense before depreciation $120,000 1.04375 $3,1571632 1.80159
Depreciation of plant facilities
Totals
Summary of costs per acre foot
Acre feet 2,639.338 40,236.193
Cost per acre foot before depreciation $45.47 $78.48
Cost per acre foot (including
depreciation of plant facilities)
*Note: Includes water purchased and water produced on a substitute extraction basis.
i
-39-
1993-94 1992-93
Total Water Total Water
Per 1,000 Per 1,000
Amount Cubic Feet Amount Cubic Feet
1,867,658,300 1,837,940,400
$2,464,675 $2,469,815
656,027 552,239
156.930 18.556
3,277,632 1.75494 3,040,610 1.65436
793.103 .42465 803.970 .43743
$4,070,735 2.17959 13.844.580 2.09179
42,192.415 42,192.415
$77.68 $72.07
$96.48 $91.12
-40-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Schedule of Sundry Statistical Data
For the Year Ended June 30, 1994
1993-94 1992-93
Direct Production Cost Per Cost Per
Plant in 1,000 Percent 1,000 Percent
Expenses Cubic Feet* Cubic Feet Production Cubic Feet Production
Perris Hill $ 48,714 29,805,300 $1.6344 1.70% $2.5616 1.07%
Sierra Way (and 16th Street) 227,121 155,636,900 1.4593 8.88 1.2664 11.38
Antil pumping 197,742 73,317,200 2.6971 4.18 5.9057 1.04
Waterman Avenue pumping 191,464 79,189,400 2.4178 4.52 1.8659 8.72
Mill and "D" Streets 43,366 23,157,100 1.8727 1.32 1.7985 1.46
Lytle Creek 174,149 62,383,100 2.7916 3.56 3.2625 2.45
Seccombe well -
7th Street plants 79,689 140,632,000(1) .5666 8.02 1.5897 3.01
Cajon Pass and
Vicent plant 42,490 98,572,200 .4311 5.62 .3601 5.87
"E" Street plant
(23rd and 2nd Streets) 5,229
Devil's Canyon 194,924 121,258,501 1.6075 6.92 .9659 9.26
Newmark 176,316 173,007,339(2) 1.0191 9.87 1.2582 14.53
19th Street 266,284 89,640,700 2.9706 5.11
Gilbert Street 51,217 26,451,100 1.9363 1.51 4.6765 .29
Lynwood 94,485 72,098,600 1.3105 4.11 3.0828 1.41
27th Street 3,447 2.9871 .55
Baseline and California plant 25,117 25,665,300 .9786 1.46
Ellena Bros. well 81 18,605,160(3) .0044 1.06 2.1906 .48
Cajon #1, #2 and#3 163,491 151,083,500 1.0821 8.62 1.0322 5.47
Mallory well and reservoir 16,205 5,736,100 2.8251 .33 2.4243 .33
30th and Mt. View 142,996 103,165,400 1.3861 5.89 1.5875 4.79
Olive and Garner well 115,092 80,857,900 1.4234 4.61 1.4173 7.07
LeRoy Street well 37,655 19,324,000 1.9486 1.10 1.3348 4.98
10th and "J" Street 81,629 44,761,200 1.8237 2.55 1.505 5.89
Kenwood well 68,745 154,721,600 .4443 8.83 .3825 9.57
40th Street well 17,027 3.619,100 4.7048 .21 4.204 .38
Totals $2,464,675 1.752,688,700 $1.4062 100.00% $1.3877 100.00%
*Note: The above production figures include amounts produced on a substitute extraction basis as follows:
(1) 66,511,060
(2) 11,627,199
(3) 18,605,160
96,743,419 Total cubic feet
-41-
1991-92 1990-91
Cost Per Cost Per
1,000 Percent 1,000 Percent
Cubic Feet Production Cubic Feet Production
$1.9529 2.49% $2.5329 1.34%
1.6537 9.04 1.4226 6.48
3.0759 3.97 1.2799 18.41
2.2608 9.34 3.1771 5.40
2.3495 1.52 1.8397 1.85
4.9054 1.98 2.6574 4.37
1.4478 5.02 1.0054 11.80
.6727 8.83 .5504 6.53
2.6454 .82 3.4625 .86
1.4906 7.35 1.0594 9.42
1.5236 10.52 1.1432 10.85
4.3092 1.86 1.5506 3.48
4.5083 .20 1.6742 2.36
2.3116 1.50 1.4418 1.39
1.5990 2.10 2.9814 .84
.7252 1.07 2.1731 1.31
1.6126 4.02 1.3811 4.13
6.2662 .33 2.4755 .30
1.5538 5.89 1.4310 7.36
1.1575 5.45
1.5320 2.74 1.2502 1.41
1.1808 11.33 1.1020 .11
.3772 2.59
1.9267 .04
$1.6811 100.00% $1.4490 100.00%
-42-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Schedule of Water System Demographics
For the Year Ended June 30, 1994
July 1, 1993 Added Removed .Tune 30 1994
Physical changes in water
utility system
Miles of main in service 541.2388 8.3780 2.4085 547.2083
Gate valves in system 13,596 214 28 13,782
Fire hydrants in system 3,983 92 35 4,040
Water meters in use 43,515 3,533 3,170 43,878
1993-94 1992-93
Water utilization (shown in
cubic feet)
Domestic metered services 1,654,533,500 1,640,588,900
Municipal services (partially
estimated) 93,392,145 81,090,725
East Valley Water - exchange
agreement 42,329,822 15,708,607
Water reclamation plant 7,517,400 2,587,300
Irrigation water - AVMW 426,700 439,400
Edison - wash lines 1.203 14.037
1,798,200,770 1,740,428,969
Loss and other factors
1993-94 - 3.72% 69,457,530
1992-93 - 5.31% 97.511,431
Totals 1,867.658,300 1.837,940.400
-43-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Schedule of Distribution System Expenses
For the Years Ended June 30, 1994 1993
Meter repair and maintenance $ 271,126 $ 229,941
Distribution system repairs 250,354 199,192
Service connection maintenance 410,988 248,775
Tools and equipment maintenance 217,384 132,234
Automobile and truck maintenance 65,066 169,638
Store yard, shop and yard security expense 281,625 288,740
Unallocated distribution system and other 88,380 96,593
$1,584,923 $1,365,113
-44-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Schedule of Overhead Salaries and Related Costs
For the Years Ended Tune 30, 1994 1993
Board of Water Commissioners $ 800 $ 832
General manager and assistant 165,736 164,078
General office 1,346,304 1,291,342
Engineering office, planning department and field supervision 753,708 675,806
Cross-connection program (including related expenses) 13,657 16,351
Vacations 380,100 347,865
Sick leave, holidays, nonproductive, recruitment and other time 701,465 710,577
Collections, inspection and meter reading (including related expenses) 496,267 468,339
Absorption of department overhead (362,148) (780,643)
$3,495,889 $2,894,547
-45-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO - -
WATER UTILITY ENTERPRISE FUND
Schedule of General Administrative and Overhead Expenses
For the Years Ended June 30, 1994 1993
Office supplies, expenses and postage $ 387,175 $ 385,892
Office rent 156,528 156,528
Data processing expense 191,874 177,833
Advertising 1,995 870
Insurance (general) 464,241 471,625
Workers' compensation and self-insurance 127,063 102,417
Noninsurable accidents and vandalism losses 7,982 16,143
Uniform and laundry 49,755 49,639
Legal, engineering and other professional fees 148,754 210,686
Audit fees 39,999 38,729
Bacterial determination and water quality control 149,570 129,926
Taxes 5,871 32,988
Communication system expense 1,896 4,356
Engineering and telemetering supplies and expense 2,858 29,984
Employer contribution to employee health, life and
unemployment insurance 842,961 835,779
City Employees' Retirement Fund 877,347 839,056
Stores inventory adjustment 3,072 (14,093)
Uncollectible accounts 79,431 69,189
Miscellaneous gardening supplies 4,752 5,000
Miscellaneous charges 148.735 163.542
$3,691,859 $3.706.089
-46-
MUNICIPAL WATER DEPARTMENT
CITY OF SAN BERNARDINO
WATER UTILITY ENTERPRISE FUND
Schedule of Insurance Coverage
Insurance coverage for the Municipal Water Department - Water, Sewer and Geothermal Utility Enterprise
Funds at June 30, 1994 is summarized below:
Rollins Hudig Hall - multiple insurance companies and
policies, all-risk property coverage - April 30, 1994
to April 30, 1995
Per occurrence limit, excluding earthquake and flood $100,000,000
Sub-limit for earthquake and flood $50,000,000
Insurance Company of North America, Policy #GPPD28567078,
i general liability, personal injury liability and commercial
automobile coverage - September 30, 1993 to September 30, 1994
General and personal injury
General aggregate limit $2,000,000
Products/completed operations aggregate limit $2,000,000
Personal and advertising injury limit $1,000,000
Fire damage limit $50,000
Automobile
Liability insurance per accident $11000,000
Medical limit $5,000
Uninsured motorist $60,000
Hartford Fire Insurance Company Policy #KU0000260, primary
commercial umbrella liability policy - September 30, 1993 to
September 30, 1994
Per occurrence limit $10,000,000
General aggregate limit $10,000,000
CNA Insurance Companies, Policy #RDX127452988, excess third-
party liability coverage - September 30, 1993 to September 30, 1994
Per occurrence limit $5,000,000
General aggregate limit $5,000,000
Hartford Accident and Indemnity Company, Policy #MBOBDO528,
burglary and robbery coverage - March 15, 1993 to March 15, 1996
Inside of premises $23,000
Outside of premises $3,000
Hartford Accident and Indemnity Company, Policies
#86S100551258, #86S100569048, #60140801, #60140802 and
#60140803, public official bonds, members of the board, each $1,000
Hartford Accident and Indemnity Company, Policy #72PEBCB7807,
public employees' blanket bond - March 15, 1994 to March 15, 1995 $15,000
The Department is self-insured as to workers' compensation liability and material damage to rolling stock.
-47-