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CITY OF SAN BERNARDINO
MUNICIPAL WATER DEPARTMENT
INTEROFFICE MEMORANDUM
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TO: Rachel Clark, City Clerk
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FROM: Stacey R. Aldstadt, Deputy General Manager ~
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SUBJECT:
2000-2001 AUDIT REPORT FOR WATER DEPARTMENT
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WATER AND SEWER UTILITIES ~ y
DATE: January 10, 2002
CC: Bernard C. Kersey, David Erickson
The firm of Conrad and Associates, L.L.P., has completed the
2000-2001 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 held on January 8,
2002. Transmitted herein is one copy of the audit report for
the Mayor and Common Council to "receive and file."
Please contact me or David Erickson, Director of Administration
and Finance, if you have questions.
Sta~ Aldstadt
Deputy General Manager
als
Attachment
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MUNICIPAL WATER DEPARTMENT OF THE
CITY OF SAN BERNARDINO, CALIFORNIA
Financial Statements
Years ended June 30, 2001 and 2000
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Financial Statements
Yeazs ended June 30, 2001 and 2000
TABLE OF CONTENTS
FINANCIAL SECTION
Independent Auditors' Report
Combining Financial Statements:
Combining Balance Sheets
Combining Statements of Revenues, Expenses, and Changes
in Retained Earnings
Combining Statements of Cash Flows
Notes to Financial Statements
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 Bernazdino
Public Safety Authority
Schedule -1998 Refunding Sewer Revenue Certificates of Participation,
' San Bernazdino Public Safety Authority
Series 1998A Water and Wastewater Revenue Bonds
Bond Schedule -General Obligation Waterworks Bonds, Series C
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~.ONRAD AND CERTIFIED PUBLIC ACCOUNTANTS
ASSOCIATES, L.L.P. IRVINE, CA IFORNIA 926E74
(949) 474-2020
Fax (949) 263-5520
Water Commissioners Boazd
Municipal Water Department of the City of
San Bernazdino, California
Independent Auditors' Report
We have audited the accompanying general purpose financial statements of the Municipal Water
Department of the City of San Bernardino, Califomia as of and for the yeazs ended June 30, 2001
and June 30, 2000. These general purpose financial statements aze the responsibility of the
management of the Municipal Water Department of the City of San Bernazdino, California. Our
responsibility is to express an opinion on these general purpose financial statements based on our
audit.
We conducted our audit in accordance with auditing standazds generally accepted in the United
States of America and the standazds 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
general purpose fmancial statements aze free of material misstatements. An audit includes
examining on a test basis, evidence supporting the amounts and disclosures in the general
purpose 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
and aze not intended to present fairly, in all material respects, the financial position of the City of
San Bernardino, Califomia, and the results of its operations and cash flows of its proprietary fund
types, in conformity with generally accepted accounting principles.
In our opinion the general purpose financial statements referred above present fairly, in all
material respects, the financial position of the Municipal Water Department of the City of San
Bernazdino, California, as of June 30, 2001 and June 30, 2000, and the results of its operations
and the cash flows for the yeazs then ended in conformity with accounting principles generally
accepted in the United States of America.
During the year ended June 30, 2001, the Municipal Water Department changed its method of
accounting for capital contributions as a result of implementing GASB Statement No. 33, as
described further in note 3 to the financial statements.
Our audit was made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The individual fund statements and schedules listed in the table of
contents aze presented for purposes of additional analysis and aze not a required part of the
general purpose financial statements of the Municipal Water Department of the City of San
Bernardino, Califomia. Such information has been subjected to the auditing procedures applied
in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all
material respects in relation to the general purpose 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.
MEMBERS OF AICPA AND ULIFORNIA SOCIETY OF CERTIFIED PUBLR: ACCOUMANTS
MEMBER OF AMERIGN INSTRUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRNATE COMPANIES PRACTICE SECFION
Water Commissioners Boazd
Municipal Water Department of the City of
San Bemazdino, California
Page Two
In accordance with Government Auditing Standards, we have also issued our report dated
November 8, 2001 on our consideration of the Municipal Water Department of the City of San
Bernazdino's internal control over financial reporting and our tests of its compliance with certain
provisions of laws, regulations, contracts and grants.
`rnsse./~w...//~v4+J~ L.L.
November 8, 2001
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINQ CALffORNIA ,
Combining Balance Sheets '
June 30, 2001 and 2000
Assets
Assets:
Current assets:
Cash and investments (note 2)
Accounts receivable, net
Interfund receivable
Related party receivables (note 9)
Invrntory
Prepaid expenses
Total current assets
Restricted assets:
Cash and investmrnts:
Restricted for debt service (note 2)
Restricted for capital-related fees (note 2)
Restricted for consumer deposits (note 2)
interest receivable
Total restricted assets
Property, plant, equipment, and water rights:
~PertY, Plan[, equipmrnt, and water rights
(note 4)
Less accumulated depreciation and
amortization (note 4)
Constmction in progress (note 4)
Total property, plant, equipmrnt, and
water rights, net
Other assets:
Debt issuance vests, net
Deferred call premium
Total other assets
Total assets
Water Sewer Totals '
Utility Utility Eliminations 2001 2000
$ 7,983,384 17,058,862 - 25,042,246 23,064,958
3,829,908 2,588,315 - 6,418,223 5,860,780
154,734 - (154,734) - -
137,505 297,660 - 435,165 634,388
1,388,738 - - 1,388,738 1,336,542
147,441 179,689 - 327,130 324,672
13,641,710 20,124,526 .((54,734) 33,611,502 31,221,340
566,963 3,507,596 - 4,074,559 38,832,911
64,923 3,791,371 - 3,856,294 3,718,303
1,609,118 - - 1,609,118 1,378,108
3,180 80,861 - 84,041 805,168
2,244,184 7,379,828 9,624,012 44,734,490
95,602,210 170,733,824 - 266,336,034 261,298,910
(39,982,786) (42,983,961) - (82,966,747) (77,025,077)
9,996,203 2,070,430 12,066,633 14,852,662
65,615,627 129,820,293 195,43 5,920 199,126,495
77,702 530,290 - 607,992 686,062
- 656,448 656,448
77,702 1,186,738 1,264,440 686,062
$ 81,579,223 158,511,385 154,734 239,935,874 275,768,387
(Continued)
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALffORNL4
' Combining Balance Sheets
(Continued)
Liabilities and Eouitv
' Liabilities:
Current liabilities:
Current portion of notes payable (note 6)
Accounts payable
Interfund payable
Related party payables (note 9)
Accrued expenses
Accrued compensation
' Other deposits
' Total current liabilities
Current liabilities payable from restricted assets:
Current portion of certificates of participaton
(note 6)
' Current portion of bonds payable (note 6)
Accrued interest payable
Consumer deposits
'
Total current liabilities payable from
restricted assets
' Long-term debt:
Notes payable (note 6)
Certificates of participation (note 6)
' Bonds payable (note 6)
Total long-term deb[
Total liabilities
Fund equity:
Contributed capital (note 3)
' Retained eantings, as restated
Total fund equity
'
Total liabilities and fund equity
Water Sewer Totals
Utili tili Eliminations 2001 200
$ - 1,564,785 - 1,564,785 1,512,500
1,591,261 1,025,656 (102,410) 2,514,507 2,941,836
52,324 (52,324) -
599,350 64,958 - 664,308 614,142
19,936 17,739 - 37,675 11,110
1,529,199 619,962 - 2,149,161 2,043,564
435,038 18,414 453,452 376,692
4,174,784 3,363,838 (154,734) 7,383,888 7,499,844
- 1,495,597 - 1,495,597 1,105,000
970,329 - - 970,329 1,020,000
60,929 869,395 - 930,324 1,871,946
1,584,586 (,584,586 1,404,577
2,615,844 2,364,992 4,980,836 5,401,523
- 25,666,805 - 25,666,805 27,262,111
- 34,386,553 - 34,386,553 69,556,228
4,618,810 4,618,810 5,484,990
4,618,810 60,053,358 64,672,168 102,303,329
11,409,438 65,782,188 (154,734) 77,036,892 115,204,696
49,845,813 63,553,696 - 113,399,509 113,399,509
20,323,972 29,175,501 49,499,473 47,164,182
70.169.785 92.729.197 162.898.982 160.563.691
$ 81,579,223 158,511,385 154,734 239,935,874 275,768,387
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I' See accompanying notes to financial statements.
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MUNICIPAL WATER DEPARTMENT OF THE CTI'N OF SAN BERNARDINO, CALIFORNIA
Combining Statements of Revenues, Expenses, and Changes in Retained Earnings
For the years ended June 30, 2001 and 2000
Water Sewer Totals
tili Utility Eliminations 2001 2000
Operating revenues:
Charges for srnices $ 16,464,346 16,879,970 (717,240) 32,627,076 32,017,146
' Other operating revenues 1,568,256 247,365 1,815,621 1,057,008
Total operating revenues 18,032,602 17,127,335 (717,240) 34,442,697 33,074,154
'
Operating expenses:
Administration and customer srnice 4,329,918 - - 4,329,918 4,482,098
Engineering, operations, and distnbution
' administration 191,134 1,164,686 (678,727) 677,093 617,623
Plant operations 4,394,942 6,387,320 (16,568) 10,765,694 10,008,183
Maintenance 1,149,535 2,037,606 (21,945) 3,165,196 3,302,257
' Environmrntal control - 276,455 - 276,455 346,645
Distribution 2,720,113 2,720,113 2,868,944
Engineering 1,104,134 - - 1,104,134 1,033,141
' General, administration, and overhead
Depreciation and amortization 2,727,907
2,302,270 1,147,397
3,853,726 - 3,875,304
6,155,996 3,404,581
6,647,429
Total operating expenses 18,919,953 14,867,190 (717,240) 33,069,903 32,710,901
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Nonoperating revenues (expenses):
' Investment income 855,620 2,997,651 3,853,271 3,318,007
Rental income
74,014
30,231 -
104,245
108,875
Net gain (loss) on disposition of assets (76,465) 69,457 - (7,008) 253,773
Interest expense and fiscal charges (370,234) (4,008,304) - (4,378,538) (5,459,288)
Amortization of issuance costs (28,866) (49,204) (78,070) (8 (,779)
Other (11,647) (106,085) (117,732) 41,013
' Total non-operating revenues (expenses) 442,422 (1,066,254) - (623,832) (1,819,399)
Netprofit (loss) (444,929) 1,193,891 - 748,962 (1,456,146)
' Capital Contributions (note 3) 2,535,584 1,665,187 - 4,200,771 -
Retained earnings:
Balance at beginning of year, as restated (note 13) 18,233,317 26,316,423 44,549,740 48,620,328
Balance at end of year $ 20,323,972 29,175,501 49,499,473 47,164,182
See accompanying notes to financial statements.
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDEVO, CALIFORNIA
Combining Statemenu of Cash Flows
For the years ended June 30, 2001 and 2000
Cash flows from operating activities:
Cash received from customers
Rental income
Nonoperating miscellaneous revenue received
Cash paid to suppliers of goods & services
Cash paid to employees for services
Net cash provided by (used for) operating activities
Cash flows from capital and related financing activities:
Sale of fixed assets
Charges to property owners for capital purposes
Grant proceeds received
Cash paid to acquire fixed assets
Principal paid oncapital-related debt
Interest paid on capital-related debt
Net cash provided by (used for) capital and related
financing activities
Cash flows from investing activities:
Proceeds from sale of investments
Interest received
Net cash provided by (used for) investing activities
Net increase (decrease) in cash
Cash and cash equivalenu at beginning of year
Cash and cash equivalenu at end of year
Water Sewer Totals
Utility Utility 2001 2000
$ 16,737,465 17,174,425 33,911,890 34,118,183
74,014 30,231 104,245 108,875
(11,647) (106,085) (117,732) 41,013
(9,241,329) (4,501,571) (13,742,900) (14,456,315)
(4,494,416) (7,538,070) (12,032,486) (11,599,969)
3,064,087 5,058,930 8,123,017 8,211,787
(76,465)
811,934
1,723,650
(4,211,085)
(915,851)
(382,971)
- (76,465) 327,689
1,665,187 2,477,121 2,136,527
- 1,723,650 506,721
(1,808,142) (6,019,227) (4,717,617)
(36,322,098) (37,237,949) (3,322,159)
(5,593,637) (5,976,608) (5,516,821)
(3,050,788) (42,058,690) _(45,109,478) (10,585,660)
- 34,406,630 34,406,630 -
855,620 3,718,778 4,574,398 3,329,759
855,620 38,125,408 38,981,028 3,329,759
868,919 1,125,648 1,994,567 955,886
9,355,469 19,758,431 29,113,900 28,158,014
$ 10,224,388 20,884,079 31,108,467 29,113,900
(Continued)
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Combining Statements of Cash Flows
(Continued)
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:
U.S. Treasury notes
Investment agreements
Interest and other receivables
Cash and cash equivalents at end of year
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss)
Depreciaton and amortization
Nonoperating miscellaneous revenue
Rental income
Adjustments:
Change in accounts receivable
Change in interfund receivable
Change in related parties receivable
Change in inventory
Change in prepaid expenses
Change in accounts payable
Change in interfund payable
Change in related parties payable
Change in accrued expenses
Change in accrued compensation
Change in consumer deposits
Change in other deposits
Change in other assets
Net cash provided by (used for) operating activities
Water Sewer Totals Totals
Utility Utility 2001 2000
$ 7,983,384 17,058,862
2,244,184 7,379,828
25,042,246 23,064,958
9,624,012 44,734,490
- (3,473,750)
(3,180) (80,861)
- (34,283,817)
(3,473,750) (3,596,563)
(84,041) (805,168)
$ 10,224,388 20,884,079 31,108,467 29,113,900
$ (887,351) 2,260,145 1,372,794 363,253
2,302,270 3,853,726 6,155,996 6,647,429
(11,647) (106,085) (117,732) 41,013
74,014 30,231 104,245 108,875
(486,787) (70,656) (557,443) (385,607)
(33,36]) 15,791 (17,570) 957
188,553 110,410 298,963 472,075
(52,196) - (52,196) 3,097
5,997 (8,455) (2,458) (38,947)
(418,360) (24,695) (443,055) (721,944)
- 33,296 33,296 16,519
68,386 (117,960) (49,574) 523,836
10,618 15,947 26,565 5,459
91,660 13,937 105,597 (197,546)
1,232,894 (6,586) 1,226,308 224,360
(969,539) ' - (969,539) (9,091)
1,948,936 (940,116) 1,008,820 1,158,049
S 3,064,087 5,058,930 8,123,017 8,211,787
Noncash. investine. capital and financine activities
During the fiscal year 2000-O1, [here were no noncash investing, capital or financing activities.
See accompanying notes to financial statements.
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
Yeaz ended June 30, 2001 and 2000
~1) Summary of Significant Accounting Policies
Reporting Entity
The Municipal Water Department of the City of San Bemazdino, 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 Bernazdino has
certain limited powers with respect to the Department. The Department has no sepazate
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 prepazation 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 prepazation 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 aze organized and operated on the basis of funds. A fund
is an independent fiscal and accounting entity with aself-balancing set of accounts. Fund
accounting segregates funds according to their intended purpose and uses them to aid
management in demonstrating compliance with fmance-related legal and contractual
provisions. The Department's fmancial 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 incun•ed and/or net income is
necessary for management accountability.
Basis of Accounting
Proprietary funds aze accounted for on the flow of economic resources measurement
focus and use the accrual basis of accounting. Under this method, revenues are recorded
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(1) Summarv of Significant Accounting Policies, (Continued)
when earned and expenses aze recorded at the time liabilities aze incurred. The
Department applies all applicable GASB pronouncements in accounting and reporting for
its proprietary operations and applicable FASBs that occurred prior to November 30,
1989.
Cash and Investments
Investments aze reported in the accompanying balance sheet at fair value, except for
certain certificates of deposit and investment contracts that are reported at cost because
they aze not transferable and they have terms that aze not affected by changes in market
interest rates.
Changes in fair value that occur during a fiscal yeaz aze 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.
I , Cash for the Department is pooled with the City of San Bernazdino for investment
purposes in order to maximize interest earnings. Such earnings aze credited to the various
funds within the City of San Bernazdino based upon average monthly cash balances. The
I' investment policies and the associated risk factors as they relate to the Departrnent are
included in the City's Comprehensive Annual Financial Report.
I t 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 aze shown net of an allowance for uncollectible accounts based on
management's estimate.
Interfund Receivables and Parables
Transactions between funds that aze representative of lending/bon•owing arrangements
outstanding at the end of the fiscal year aze referred to as either "interfund
receivables/payables" (i.e., 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 fmancial reporting purposes.
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
Inventories
Inventories aze valued at the lower of cost, using the average-cost method, or mazket.
Restricted Assets
Various resources of the Department aze limited as to their use by law or by certificates of
participation and bond covenants and aze classified on the balance sheet as restricted
assets. Proceeds of the certificates of participation and bonds are restricted for the
construction of water and sewer system improvements and for repayments. Assessments
collected from property owners aze restricted fot 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 chazges for certificates of participation
and bonds payable aze 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.
Property, Plant, Equipment and Water Rights
Property, plant, equipment and water rights aze recorded at cost. Major outlays for capital
assets and improvements aze capitalized as projects aze 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 aze capitalized at the rate of 24.75 percent of direct construction cost and
aze 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. Useful lives for depreciation purposes aze as follows:
Wells, pumping plants, reservoirs, and distribution system 8 to 50 yeazs
Interceptor lines 50 yeazs
Disposal plant 35 to 50 yeazs
Leasehold improvements 5 to 25 yeazs
Shops, offices, stores, and yards 10 to 20 yeazs
Tools and equipment 4 to 20 years
12
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
Office equipment 5 to 20 yeazs
Communication equipment 8 to 10 yeazs
Computer equipment 5 to 10 years
Automotive equipment 3 to 8 yeazs
' 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.
Compensated Absences
' Employees gain a vested right to accumulated unpaid vacation based on years of service
but cannot accumulate more than two yeazs ofaccrued vacation. Once each fiscal yeaz,
employees with at least three weeks of accrued vacation have the option of receiving
' payment at their regulaz rate of pay for one week of accumulated unpaid vacation (two
weeks for managers and mid-management employees). Employees' vacation benefits aze
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 and
employees are entitled to 25 percent of accumulated sick leave with five yeazs of service
' and a minimum of 480 hours of accumulated sick leave. Upon retirement or death,
employees aze entitled to 50 percent of accumulated sick leave up to a maximum of 1,152
hours. Accrued sick leave benefits aze recognized as a liability of the Department.
' Fund Equity
The Department currently has no reserved retained earnings. The Department's
contributed capital represents equity acquired through capital grants and capital
contributions from developers, customers, or other funds.
t 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 financial statements.
1
' 13
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(2) Cash and Investments
Cash and investments held by the Department at June 30, 2001 consisted of the
following:
Demand deposits $ 49,995
Internal investment pool with City of San Bernardino 30,481,385
Investments with fiscal agent 4,050,837
Total
34.582.217
Cash and investments aze reported as follows in the combining balance sheets:
Cash and investments $25,042,246
Restricted cash and investments:
Restricted for debt service 4,074,559
Restricted for capital-related fees 3,856,294
Restricted for consumer deposits 1,609,118
Total $34.582.217
The Department maintains substantially all of its operating funds in the City of San
Bernardino Treasury (an internal investment pool). These funds aze reported at estimated
fair value. Investment earnings aze proportionately shazed by all funds in the internal
investment pool of the City.
The Department is generally authorized under provisions of the City of San Bernazdino's
investment policy and Section 53601 of the Government Code to invest in investment
instruments so long as the investment is appropriate when investment objectives and
policies aze 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 - (30% max)
- Commercial paper - (15% max)
- Repurchase agreements - (10% max)
14
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Local Agency Investment Fund (state pool) deposits - a special fund of
the California State Treasury through which local governments may pool
investments.
Money Mazket Accounts - (20% max)
- Medium Term Corporate Notes - (30% max
' Under the Califomia Government 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 mazket 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.
Deposits of cities and other state or local governments aze 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, 2001, deposits were categorized as follows:
Category Bank Carrying
Form of Deposit 1 2 3 Balance Amount
Demand deposits $15,007 - - 15,007 49,995
Total deposits 15 007 - - 15.007 49.995
15
~i
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
As of June 30, 2000, deposits were categorized as follows:
Form of Deposit
Demand deposits
Total deposits
Category Bank Carrying
1 2 3 Balance Amount
~~
1
t I
44,128 40,010
44.128 40 010 '
$ 44,128
44 128
The Department's investments aze categorized as either (1) insured or registered or for
which the securities aze held by the Department or its agent in the Department's name, (2)
uninsured and unregistered for which the securities aze 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 aze 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 Depaztment's investments in the Local Agency Investment
Fund and money mazket funds have not been categorized because securities are not used
as evidence of the investments but aze an ownership interest in pooled investment funds:
As of June 30, 2001, investments were categorized as follows:
Category
Form of Investment 1 2 3
Investments held by bond trustee:
U.S. Treasury notes $ - - 33,846
33.846
Investments not subject to categorization:
Mutual funds
Investment agreements
Internal investment pool with the City of San Bemazdino
Total investments
Carrvine Amount
33,846
33,846
543,241
3,473,750
30,481,385
$34,532,222
1
1
1
16 '
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
As of June 30, 2000, investments were categorized as follows:
Cateeo
Form of Investment 1 2 3 Carrying Amount
Investments held by bond trustee:
U.S. Treasury notes $ - - 34,283,817 34,283,817
~ - 34.283.817 34,283,817
Investments not subject to categorization:
Mutual funds 932,797
Investment agreements 3,596,563
Internal investment pool with the City of San Bernazdino 28,141,093
Total investments $66,954,270
Restricted Assets
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 aze
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.
(3) Change in Accounting Principle
Effective July 1, 2000, GASB Statement No. 33 changed the manner in which capital
contributions aze recorded in proprietary funds. Previously such capital contributions had
been credited directly to an equity account called contributed capital. Capital
contributions include donated capital assets and resources restricted for the acgmsition,
improvement, or construction of capital assets. As a result of the implementation of
GASB Statement No. 33, capital contributions aze now required to be reflected in the
statement of revenues, expenses and changes in retained earmngs. GASB Statement No.
33 requires that this accounting change be made on a prospective basis. The balance of
the contributed capital account as of June 30, 2000 will be combined with retained
earnings into a single equity account called net assets in conjunction with the
implementation of GASB Statement No. 34, which will be implemented by the Municipal
Water Department for fiscal yeaz ended June 30, 2002.
17
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(4) Property, Plant, Equipment and Water Rights
The following is a summary of property, plant, equipment and water rights at June 30,
2001:
Water Sewer
Utili Utili Total
Land and easements $ 2,732,017 12,169,523 14,901,540
Water rights, wells and pumping plants 31,311,208 3,192,218 34,503,426
Distribution systems 53,865,271 - 53,865,271
Buildings, plants, and store yards 1,301,425 150,023,554 151,324,979
Tools and equipment 1,766,868 3,219,220 4,986,088
Autos 2,150,892 719,256 2,870,148
Office leasehold improvements 111,125 - 111,125
Office, computer, engineering equipment 1,841,151 934,576 2,775,727
Radio and interoffice communication
equipment 187,478 - 187,478
Telemetry systems and equipment 134,303 282,460 416,763
Miscellaneous 200,472 193,017 393,489
Construction in progress 9,996,203 2,070,430 12,066,633
Total 105,598,413 172,804,254 278,402,667
Accumulated Depreciation (39,982,786) (42,983,961) (82,966,747)
Net 65 615 627 129.820.293 195,435.920
The following is a summary of property, plant, equipmen t and water rights at June 30,
2000:
Water Sewer
Utili Utili Total
Land and easements $ 2,732,017 12,200,021 14,932,038
Water rights, wells and pumping plants 31,233,601 3,192,218 34,425,819
Distribution systems 53,186,047 - 53,186,047
Buildings, plants, and store yards 1,279,387 147,237,974 148,517,361
Tools and equipment 1,723,968 2,847,296 4,571,264
Autos 1,930,874 618,203 2,549,077
Office leasehold improvements 111,125 - 111,125
Office, computer, engineering equipment 1,811,666 488,081 2,299,747
Radio and interoffice communication
equipment 178,644 - 178,644
Telemetry systems and equipment 134,303 - 134,303
Miscellaneous 200,470 193,015 393,485
Construction in progress 8,994,785 5,857,877 14,852,662
Total 103,516,887 172,634,685 276,151,572
Accumulated Depreciation (37,861,139) (39,163,938) (77,025,077)
Net 65.655.748 133.470.747 199.126.495
t8
MiJNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
t Notes to Financial Statements
(Continued)
ti
L
O
eases
ng
pera
(5)
The Department leases office space from the City of San Bemazdino under a
' noncancellable operating lease terminating in 2002. The following is a schedule of
minimum lease payments as of June 30, 2001:
' Office Space
For the yeaz ending June 30: Water Sewer Total
2002 121 439 16.351 137.790
(6) Long-Term Debt
' The following is a summary of changes in long-term debt obligations for the yeaz ended
June 30, 2001:
' Balance Balance
July 1, 2000 Reductions June 30, 2001 Current Long-Term
Notes payable $ 28,774,611 1,543,021 27,231,590 1,564,785 25,666,805
' Certificates of
Participation 70,661,228 34,779,078 35,882,150 1,495,597 34,386,553
' Bonds payable 6,504,990 915,851 5,589,139 970,329 4,618,810
$105,940.829 37.237.950 68.702.879 4.030.711 64,672.168
Notes Payable
State Water Resources Control Boazd (SWRCB)
Maturity date: 2011
Interest rate: 3.3%
Repayment provisions: Annual principal and interest
payments of $279,293
Balance $2,346,364
19
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(6) Long-Term Debt, (Continued)
San Bernazdino Valley Municipal Water District
Maturity date: 2013
Interest rate: 7.25%
Repayment provisions: Annual principal and interest
payments of $456,250
Balance 3,576,055
State Water Resources Control Boazd (SWRCB)
Maturity date: 2016
Interest rate: 2.8%
Repayment provisions: Annual principal and interest
payments of $1,761,739
Balance 21.309.171
27,231,590
Less Current portion 1,564,785
Long-term portion $25.666.805
The State Revolving Fund loans between the State Water Resources Control Boazd and
the Santa Ana Watershed Authority provided funding for the construction of the San
Bernazdino/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 Bemazdino Boazd 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 yeazs. The
Department has decided to use the revenues of the Sewer Utility Fund towazds repayment
of the loans.
20
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
1998 Refmancing Sewer
(Continued)
(6) Long-Term Debt, (Continued)
Certificates of Participation
Less unamortized discount
Notes to Financial Statements
Interest Issue
Rates Date
3.95% 1998
to
5.00%
Less current portion payable from
restricted assets
Annual
Maturity Original Principal
Date Amount Installments Balance
2017 $36,230,000 1,505,000
to
3,220,000 36,230.000
36,230,000
347,850
35,882,150
1,495,597
Long-term portion $34.386.553
' It has been determined that no amounts aze currently due under IRS Code Section
148(f)(4)(B) for the temporary investments of the 1992 Sewer Treatment Plant Certificates
of Participation and for rebate azbitrage.
I1
1
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 1, 1992. The refinancing was accomplished by issue of the
1998 Refunding Sewer Revenue Certificates of Participatton 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 pay off
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, 2001, the reserve was fully funded.
Costs related to the issuance of the 1998 Certificates have been paid out of the proceeds of
the issue.
' 21
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(6) Long-Term Debt, (Continued)
Bonds Payable
Annual
Interest Issue Maturity Original Principal
Rates Date Date Amount Installments Balance
1998 Water and Wastewater 3.75% 1998 2005 $8,610,000 860,000
Revenue Bonds to to
4.40% $1,260,000 $5,765,000
Waterworks Bonds, 7.75% 1988 2013 $150,000 $5,000
Series C to
$15,000 105,000
Total bonds payable 5,870,000
Less unamortized discount
and deferred advance
refunding charge 280,86(
5,589,139
Less current portion payable from
restricted assets 970,329
Long-term portion 4 1 10
The Department has covenanted to set aside Water revenues to make installment
payments on the Bonds as due. A financial guazanty insurance policy has been issued,
and accordingly, no cash reserve balance is required to be established.
22
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(6) Long-Term Debt, (Continued)
The annual requirements to amortize long-term debt subsequent to June 30, 2001 are as
follows:
June 30 Pn'ncipal Interest Total
Notes payable 2002 1,564,785 932,497 2,497,282
2003 1,617,520 879,762 2,497,282
' 2004 1,673,255 824,027 2,497,282
2005 1,731,266 766,016 2,497,282
2006 1,791,668 705,614 2,497,282
Thereafter 18,853,096 3,042,806 21,895,902
27,231,590 7,150,722 34,382,312
Certificates of participation 2002 1,505,000 1,672,232 3,177,232
2003 1,575,000 1,610,976 3,185,976
' 2004
2005 1,650,000
1,730,000 1,545,580
1,476,203 3,195,580
3,206,203
2006 1,815,000 1,402,182 3,217,182
Thereafter 27,955,000 9,154,357 37,109,357
' 0 53
091
530
36,230,000 16,861,53 ,
,
Bonds payable 2002 1,060,000 230,490 1,290,490
' 2003 1,100,000 186,016 1,286,016
2004 1,165,000 138,547 1,303,547
' 2005
2006 1,200,000
1,270,000 88,109
20,642 1,288,109
1,290,642
Thereafter 75,000 38,076 113,076
' 5,870,000 701,880 6,571,880
69 331 590 24.714.132 94.045.722
' Compensated Absences
The Department's policies relating to compensated absences are described in note 1. This
' liability, amounting to $1,706,278 and $1,624,150 at June 30, 2001 and June 30, 2000,
respectively, will be paid in future yeazs from future resources.
It
I
' 23
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(6) Long-Term Debt, (Continued)
Prior Year Defeasance of Debt
As of June 30, 2001, approximately $7,026,000 of outstanding 1990 Water Facilities
Certificates of Participation aze considered 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.
(7) Defined Benefit Pension Plan
Qualified employees aze covered under amultiple-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 aze 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, Califomia 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 regazding the City's participation in PERS can be found in the
City's financial statements.
(S) Post-Retirement Health Caze Benefits
In addition to the pension benefits described in note 7, the Department provides the
minimum monthly premium for post-retirement medical-health caze benefits to each
retiree that meets the Public Employees Retirement System eligibility criteria for
coverage under their medical health plan. The retirees may continue to participate in the
health Gaze plan provided the retirees make the arrangements for premiums to be paid
through the retirement program. This benefit is dependent upon the continued approval
of the insurance carrier.
24
t MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
' Notes to Financial Statements
(Continued)
(8) Post-Retirement Health Caze Benefits, (Continued)
For those retirees who retired on or after attaining age 55 with a minimum of 15 yeazs of
' service, the Department will reimburse them a portion of that premium up to $227 per
month for those who aze age 55 and older without Medicare coverage, and up to $126 per
month for those who aze age 65 and older with Medicaze coverage. Currently, eighteen
Water Utility retirees and one Sewer Utility retiree aze receiving reimbursements. The
' Department pays $16 per month per retiree to PERS for the minimum monthly premium,
and an additional one-half percent of the total premium costs for all retirees currently
covered under the health benefits plan as an administrative chazge to PERS. During the
' year ended June 30, 2001, and June 30, 2000, expenses of $44,017 and $39,570,
respectively, were recognized for post-retirement health caze benefits and administrative
costs for the Water and Sewer Utilities.
' (9) Related Party Transactions
Following is a summazy of transactions and balances with the City of San Bemazdino and
' its various depaztments as of and for the year ended June 30, 2001:
Revenues
' City of San Bemazdino
Revenue from water chazges $ 33,537
Revenue from sewer chazges 49,145
Revenue from geothermal charges 14,070
Billing and collection chazges -refuse 142,656
Billing and collection charges -storm drain 4,967
New services and mains -installation 32,400
' Cost reimbursement 120
Interest income 1,830,194
' Economic Development Agency
Revenue from geothermal chazges 2,203
' Total revenue from related parties 2 109 292
1
' 25
MiJNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(9) Related Party Transactions, (Continued)
Expenses
City of San Bemazdino
10% water revenue $1,733,392
Sewer collection system maintenance 1,201,490
Worker's compensation -administration chazges 65,581
Printing services 8,121
Purchases g 1
Postage 9,137
City Hall rent 183,720
Phone chazges 108,011
Refuse disposal service 74,007
Civil service 45,000
Legal services/affirmative action 105,000
Rideshaze coordination 3,000
Payroll services 28,000
Data processing services 434,024
Engineering and other services 15,230
Miscellaneous chazges 14,882
Total expenses to related parties 4 028 676
Receivables
City of San Bernazdino
Finance Department $435,165
Total Receivables to Related Parties 435 165
Payables
City of San Bernazdino
Finance Depaztment $664,308
Total Payables to Related Parties 664 308
Following is a summary of transactions and balances with the City of San Bernazdino and
its various depaztments as of and for the yeaz ended June 30, 2000:
26
II
' MiTNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
' Notes to Financial Statements
' (Continued)
' (9) Related Party Transactions, (Continued)
Revenues
City of San Bernazdino
' Revenue from water chazges
Revenue from sewer chazges
Revenue from geothermal charges
' Billing and collection chazges -refuse
Billing and collection chazges -storm drain
New services and mains -installation
Cost reimbursement
Interest income
' Economic Development Agencv
Revenue from geothermal chazges
Cost reimbursement
Total revenue from related parties
Expenses
City of San Bernazdino
10% water revenue
Sewer collection system maintenance
Worker's compensation -administration chazges
Printing services
Purchases
Postage
City Hall rent
Phone chazges
Refuse disposal service
Civil service
Legal services/affirmative action
Rideshaze coordination
Payroll services
Data processing services
Engineering and other services
Miscellaneous charges
Total expenses to related parties
16,408
84,901
16,870
140,050
5,282
15,386
4,479
1,657,750
1,762
3,220
1 946 108
$1,581,166
1,141,251
53,478
5,406
581
8,454
183,720
100,864
78,552
45,000
105,000
3,000
28,000
424,340
11,381
7,246
3 777 439
27
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(9) Related Party Transactions, (Continued)
Receivables
City of San Bernazdino
Finance Department $574,134
Facilities Management Department 26,005
Public Service/Refuse Depaztment 23,580
Public Works 0
City Library 2 304
'
Animal Shelter 428
Economic Development AQencv 7,937
Total Receivables to Related Parties 634 388
Payables
City of San Bernazdino
Finance Department $614,142
Total Payables to Related Parties 614 142
The Department collects and transmits to the City of San Bernardino ten percent of
collections on gross water revenue and sewer collection system maintenance chazges
from Sewer Utility customers. These remitt ances are included in the related party expense
shown above.
(10) Joint Venture
West End Water Development, Treatment and Conservation Joint Powers Authority
On August 15, 1990, the City of San Bernazdino 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 WEJPA.
The financial statements for the WEJPA aze available at the Department. The
Departrnents' investment in the joint venture is included in the property, plant, and
equipment of the Department. The joint venture is not experiencing fiscal stress.
28
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(10) Joint Venture, (Continued)
San Bernardino Public Safetv Authority
On April 1, 1968, the City of San Bemazdino and the County of San Bemazdino formed
the San Bemazdino 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 Bemazdino 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 aze included in the property, plant, and
equipment of the Sewer Utility. The financial statements of PSA aze available at the
Department. The joint venture is not experiencing fiscal stress.
Colton/San Bemazdino Regional Tertiarv 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 constmct, operate, use, and maintain tertiary
wastewater treatment, disposal, and water reclamation systems, including the Regional
Rapid Infiltration and Extraction Facility (RIX). The Colton/San Bemazdino Regional
Tertiary Treatment and Water Reclamation Authority is governed by a sepazate boazd
consisting of four members, two of whom aze appointed by the City of San Bernardino
through the Department's Boazd 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 (SAWPA) and was substantially completed during
1996. Administration and operation of the project was fumed over to the Colton/San
Bemazdino 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 Bemazdino 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 joint venture is not experiencing
fiscal stress.
29
MiINICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(11) Construction and Other Significant Commitments
Commitments
Commitments in the form of signed contracts for costs to complete construction projects
or other improvements amounted to $528,281 and $704,773 at June 30, 2001 and June
30, 2000, respectively.
Risk Management
The Department's risk management activities are recorded in both of the utility funds.
Significant losses aze 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 Bernazdino'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 yeaz or the
three prior yeazs.
Workers Compensation Claims Liabilities
The Department records an estimated liability for workers' compensation. Claims
liabilities aze 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 aze not discounted.
30
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(11) Construction and Other Significant Commitments, (Continued)
The following represents the changes in approximate aggregate liabilities for the
Department for the yeaz ended June 30, 2001:
Total
I' Liability balance, June 30, 2000
Claims and changes in estimates
Claim payments
Liability balance, June 30, 2001
$323,518
311,113
24( 2,955)
391 676
The following represents the changes in approximate aggregate liabilities for the
Department for the year ended June 30, 2000:
Total
Liability balance, June 30, 1999 $473,282
Claims and changes in estimates 35,816
Claim payments 185 580
Liability balance, June 30, 2000 323 518
(12) Contingencies
Federal and State Grants
Amounts received or receivable from grant agencies aze 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.
31
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(121 Contingencies, (Continued)
Litigation
The Department has filed a complaint against the United States of America, Department
of Army, in connection with alleged contamination of Camp Ono site. This lawsuit is in
the discovery phase and an estimate of recoveries, if any, arising out of this claim cannot
be made at this time. Upon resolution, a consent decree is expected that will address
several issues, including ownership of the improvements currently being constructed
under a cooperative agreement with the U.S. End~ronmental Protection Agency (EPA).
Ownership of such assets is generally determined by which entity has responsibility for
managing the infrastructure asset (responsibility for maintenance, replacement, pro-rata
entitlement to proceeds of sale, etc.). Assets reported on the accompanying balance sheet
at June 30, 2001 include approximately $8 million of improvements subject to EPA
reimbursement. An additional $20 million (approximate amount) of improvements
constructed directly by EPA aze 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.
(13) Restatement of Beginning Retained Earnings
The accompanying financial statements reflect adjustments, which resulted in a
restatement of beginning retained earnings of the Sewer Utility Fund.
In prior years, the Department incurred engineering design costs for a proposed project.
The project had no timeline and the growth of the azea did not justify the need to build for
the project. The Department decided that it would write off the construction order and
properly decreased construction in progess and decreased retained earnings.
The following schedule summarizes the effects of the prior period adjustments to the
beginning retained earnings as of June 30, 2000:
Sewer
Utility Fund
Retained earnings at beginning of yeaz, as previously reported $28,930,865
Write-off of a construction project (2,614.442)
Retained earnings at beginning of the yeaz, as restated $26.316.423
32
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SUPPLEMENTARY INFORMATION
33
(This page intentionally left blank.)
34
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Yeaz Ended June 30, 2001
Boazd of Water Commissioners and Organization
MAYOR OF THE CITY OF SAN BERNARDINO
Judith Valles
Name
BOARD OF WATER COMMISSIONERS
Office
B. Warren Cocke
Toni Callicott
Martin A. Matich
Judith W. Battey
Norine I. Miller
ADMINISTRATION
Bernard C. Kersey
General Manager
Stacy R. Aldstadt
Deputy General Manager
W. William Bryden
Director, Water Utility
John A. Perry, P.E.
Director, Water Reclamation
John P. Murphy
Director, Administration and Finance
Jon K. Turnipseed, CSP
Safety Program Manager
President
Commissioner
Commissioner
Commissioner
Commissioner
~ ORGANIZATION
The City of San Bemazdino Municipal Water Department was formed in 1904 under the Charter
of the City of San Bemazdino. The Department is governed by a Boazd of Water Commissioners
who aze appointed by the Mayor of the City of San Bernazdino. The Charter gives the Boazd 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 Bemazdino, East Valley Water District, City of Loma Linda, the former
Norton Air Force Base and Patton State Hospital.
35
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Schedule oflnsurance Coverage
As of June 30, 2001
Insurance coverage for the Department at June 30, 2001 is summarized below:
Federal Insurance Company, Policy #78357989; boiler and machinery
coverage - Apri130, 2001 to Apri130, 2002
Per occurrence limit
Multiple insurance companies and policies; all-risk property coverage, including
earthquake and flood - Apri130, 2001 to Apri130, 2002
Primary limit:
AIG/I.exington Insurance Company, Policy #8524618
Excess limits:
Commonwealth Insurance Company, Policy #US2693
Caliber One Indemnity Company, Policy #ZS100103502
TIG Insurance Company, Policy #XPT38797327
Essex Insurance Company, Policy #MSP4685
Northfield Insurance Company, Policy #CF001566
Insurance Company of the West, Policy #XH0170103101
Agricultural Insurance Company, Policy #CPP3211367
Greenwich Insurance Company, Policy #ACG3311367
TIG Insurance Company, Policy #XPT38797327
London Companies-Zurich Specialties, Policy #NL20026
Diamond State Insurance Company, Policy #NIM30060
Clarendon National Insurance Company, Policy #AR9800048001
Kemper Surplus Lines Insurance Company, Policy #3ZK11752400
Westchester Fire Insurance Company, Policy #FXL421995
American Protection Insurance Co., Policy #3QX11434900; general
liability -October 30, 2000 to October 30, 2001
Per Occurance
BI/PD Aggregrate
Per Fire
American Protection Insurance Co., Policy #3QX11434900; business
automobile coverage -October 30, 2000 to October 30, 2001
Liability limit
Uninsured/IJnderinsuredmotorisu
Medical expense
Hired/nonowned liability
10,000,000
2,500,000
3,750,000
3,750,000
5,000,000
5,000,000
5,000,000
10,000,000
6,300,000
4,200,000
4,500,000
5,000,000
7,500,000
7,500,000
5,000,000
50,000,000
25,000,000
50,000,000
1,000,000
25,000,000
1,000,000
10,000
1,000,000
36
Schedule of Insurance Coverage
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDBVO, CALIFORNIA
(Continued)
~1
American International Specialty Lines, Policy #PLS2673997; pollution
liability -October 29, 1998 to October 30, 2001 (each incidenUaggregate)
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
II
^ 1
II
American Protection Insurance Co., Policy #3QX11434900; professional
liability -October 30, 2000 to October 30, 2001
Coverages included in American Protection Insurance Company
American Protection Insurance Co., Policy #3QX11434900; persona]
injury & advertising injury liability -October 30, 2000 to October 30, 2001
Coverages included in American Protection Insurance Company
American Protection Insurance Co., Policy #3QX11434900; wrongful
' acts -October 30, 2000 to October 30, 2001
Coverages included in American Protection Insurance Company
Vuginia Surety Company, Policy #0001565VR1; employment practices liability -
October 30, 2000 to October 30, 2001
Hartford Fire Insurance Company, Policy #72BPEAK4746; crime
coverages -Mazch 25, 2001 to Mazch 2, 2002
Employee theft (each incident)
Theft, disappearance and destruction
The Department is self-insured through the City of San Bernardino for workers' compensation liability
and material damage to rolling stock.
5,000,000
250,000
250,000
37
MiINICIPAL WATER DEPARTMENT OF THE CTfY OF
SAN BERNARDINO, CALIFORNIA
Schedule of Water System Demographics
Physical Changes in Water Utility System
2001
July 1, 2000 Added Removed June 30, 2001
Miles of main in system 551.5341 0.697 0.5715 551.6596
Gate valves in system 14,444 32 12 14,464
Fire hydrants in system 4,11 S 71 58 4,131
Water meters in system 40,832 1,113 1,417 40,528
2000
July 1, 1999 Added Removed June 30, 2000
Miles of main in system 551.5203 0.1369 0.1231 551.5341
Gate valves in system 14,379 80 15 14,444
Fire hydrants in system 4,117 87 86 4,118
Water meters in system 40,257 3,411 2,836 40,832
Water Production/Utilization (Cubic Feet)
2000-01 1999-00 1998-99 '
Water utilization (shown in cubic feet)
Water sold to direct customers 1,753,464,900 1,922,461,466 1,803,696,500
Water sold to other agencies
125,690,240
73,187,011
125,883,794 '
Water sold to or used by City 89,650,051 92,782,474 90,117,117
1,968,805,191 2,088,430,951 2,019,697,411 '
Loss and other factors 148,770,069 166,747,619 150,371,654
Loss and other factors percentage 7.025% 7.394% 6.929% '
Total water sold, used or lost 2,117,575,260 2,255,178,570 2,170,069,065
t
1
38 ,
MUNICIPAL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
Schedule of Water Production
June 30, 2001
Summary of total water
production and purchased cost
Total production, purchases, and
supplemental
Production and pumping expenses*
Total expense before depreciation
Depreciation of plant facilities
Totals
Summary of costs per acre foot
Acre feet
Cost per acre foot before
depreciation
Cost per acre foot (including
depreciation of plant facilities)
*Includes operations administration.
2000-2001 1999-2000 1998-99
Total Water Total Water Total Water
Per 1,000 Per 1,000 Per 1,000
Amount Cubic Feet Amount Cubic Feet Amount Cubic Feet
2,117,575
2,255,178
2,170,069
$4,299,573 $3,628,465 $2,985,298
$4,299,573 $2.03042 $3,628,465 $1.60895 $2,985,298 $1.37567
807,493 0.38133 879,646 0.39006 925,290 0.42639
$5,107,066 $2.41175 $4,508,111 $1.99900 $3,910,588 $1.80206
48,612.833 51,771.763
$88.45 $70.09 $59.92
$105.06 $87.08 $78.50
49,817.929
39
MUNICIPAL WATER DEPARTMENT OF THE CTTY OF
SAN BERNARDINO, CALIFORNIA
Schedule of Water Rates
Water rates aze summarized below:
Sinele Family Dwelline Unit
Minimum Monthly Chazge
Meter Effective Dates Cubic Foot
Size April 1, 2000 April 1, 1991 Allowance
5/8" $ 7.60 6.60 500
3/4" 10.10 8.80 500
1 ~~ 12.15 10.55 500
1-1/2" 21.75 18.90 500
2~~ 30.35 26.40 500
3~~ 51.65 44.90 500
4~~ 87.70 76.25 500
6~~ 157.90 137.30 500
8" 236.80 205.90 500
10" 296.00 257.40 500
12" $ 355.25 308.90 500
All water usage in excess of 500 cubic feet per month is at the rate of $0.83 and $0.72 per 100 cubic
feet effective April 1, 2000 and April 1 , 1991, respectively.
Commercial. Landscape. and Industrial Users
Minimum Monthly Chazge
Meter Effective Dates
Size April 1, 2000 April 1, 1991
5/8" $ 7.60 6.60
3/4" 10.10 8.80
1~~ 12.15 10.55
1-1/2" 21.75 18.90
2~~ 30.35 26.40
3 ~~ 51.65 44.90
4~~ 87.70 76.25
6~~ 157.90 137.30
8~~ 236.80 205.90
10" 296.00 257.40
12" $ 355.25 308.90
All water usage per month is at the rate of $0.83 and $0.72 per 100 cubic feet effective April 1, 2000
and April 1, 1991, respectively.
40
MUNICIPAL WATER DEPARTMENT OF THE CTI'Y OF
SAN BERNARDINO, CALIFORNIA
Schedule of Water Rates
(Continued)
Delman Heights Users (Customers formerly
served by Southern California Water Companvl
Minimum Monthly Chazge
Meter Effective Dates
Size April 1, 2000 April 1, 1991
5/8" * 4.60
3/4" * 5.50
1 ~~ * 8.80
1-1/2" * 13.80
2^ * 14.90
3" * 26.60
4" * 35.00
6" * 58.50
g" * 84.00
*Effective April 1, 2000, Dehnann Heights customers will be chazged the same as all other City of
San Bernazdino Municipal Water Depaztment customers.
Effective July 1, 1995, water furnished for municipal use to the City of San Bernazdino is exempt
from all water service chazges 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 chazged at $0.288 per 100 cubic
foot. Water furnished for use by the City of San Bemazdino for landscape assessment districts or
funded from other than the City's general fund is chazged at $0.288 per cubic foot. All other rates
remained unchanged.
41
MUNICIPAL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
Schedule of Sundry Water Statistical Data
2000-2001 1999-2000
Production Percent Production Percent
Pumping Plants in Cubic Feet Production in Cubic Feet Production
Antil Plant
Baseline & California Well
Cajon Boulevazd Plant
Cajon Pass & Vincent Wells
Devil Canyon Plant
EPA Wells - Newmazk OU
40th Street Well
Gilbert Street Well
Kenwood Well
LeRoy Street Well
Lynwood Well
Lytle Creek Plant
Mallory Well
Mill & "D" Streets Well
Newmazk Plant
19th Street Plant
Olive & Gamer Well
Perris Hill Plant
7th Street Well
Sierra Way & 16th Street Wells
10th & "J" Street Well
30th & Mountain View Wells
27th Street Well
Waterman Avenue Plant
Total Water Produced
Purchased water -
East Valley Water District
Total Water Production
84,590,700 4.20% 108,724,200 5.02%
16,913,200 0.84% 30,763,900 1.42%
110,704,500 5.50% 178,164,100 8.23%
100,532,800 5.00% 73,289,300 3.38%
90,029,660 4.48% 130,228,570 6.01%
595,230,100 29.61% 651,768,900 30.09%
3,669,800 0.18% 5,607,000 0.26%
1,483,900 0.07% 433,200 0.02%
96,952,100 4.82% 84,710,800 3.91%
30,756,500 1.53% 15,075,100 0.70%
62,404,600 3.10% 62,890,300 2.90%
85,137,800 4.23% 110,895,200 5.12%
16,497,900 0.82% 21,138,300 0.98%
19,177,500 0.95% 23,771,900 1.10%
159,374,100 7.92% 134,181,500 6.20%
150,736,400 7.49% 146,759,900 6.78%
82,548,300 4.10% 89,972,100 4.15%
1,637,900 0.08% 0 0.00%
3,255,400 0.16% 487,300 0.02%
162,600 0.01% 480,200 0.02%
126,792,300 6.30% 114,075,400 5.27%
71,341,400 3.55% 77,771,300 3.59%
14,487,800 0.72% 193,100 0.01%
87,412,200 4.34% 104,445,500 4.82%
2,011,829,460 100.00% 2,165,827,070 100.00%
105,745,800 89,351,500
2,117,575,260 100.00% 2,255,178,570 100.00%
42 '
II
i~
II
1998-1999 1997-1998 1996-1997
Production Percent Production Percent Production Percent
' in Cubic Feet Production in Cubic Feet Production in Cubic Feet Production
83,555,100 4.01% 110,558,300 6.02% 97,372,000 4.75%
33,485,800 1.61% 22,726,800 1.24% 35,535,200 1.73%
155,952,000 7.48% 159,063,000 8.66% 175,541,300 8.57%
' 119,104,800 5.71% 107,585,000 5.86% 109,452,800 5.34%
107,871,930 5.17% 114,549,050 6.23% 131,031,430 6.40%
530,532,200 25.43% 0 0.00% 0 0.00%
4,084,800 0.20% 4,508,800 0.25% 4,491,800 0.22%
16,437,500 0.79% 60,684,800 3.30% 97,630,100 4.77%
123,904,000 5.94% 129,339,300 7.04% 115,529,600 5.64%
' 40,226,700 1.93% 19,167,100 1.04% 4,563,800 0.22%
43,621,500 2.09% 83,322,600 4.53% 39,860,900 1.95%
' 238,430,635 11.43% 211,407,612 11.51% 249,683,913 12.20%
28,969,900 1.39% 25,900,300 1.41% 13,207,600 0.64%
20,915,000 1.00% 24,489,400 1.33% 29,290,900 1.43%
' 166,982,400 8.00% 173,641,100 9.45% 261,064,200 12.74%
80,904,000 3.88% 148,340,400 8.07% 165,472,100 8.08%
' 105,386,500
8,395,500 5.05%
0.40% 45,237,800
12,082,300 2.46%
0.66% 65,816,600
5,952,100 3.21%
0.29%
27,558,400 1.32% 121,139,100 6.59% 113,110,300 5.52%
' 25,123,000 1.20% 108,345,300 5.90% 106,958,600 5.22%
61,746,500 2.96% 42,676,300 2.32% 34,420,900 1.68%
34,669,100 1.66% 41,095,062 2.24% 63,512,500 3.10%
' 4,033,200 0.19% 5,933,200 0.32% 28,083,800 1.37%
24,299,200 1.16% 65,645,000 3.57% 100,975,900 4.93%
' 2,086,189,665 100.00% 1,837,437,624 100.00% 2,048,558,343 100.00%
' 83,879,400 112,211,100 75,067,900
' 2,170,069,065 100.00% 1,949,648,724 100.00% 2,123,626,243 100.00%
II
' a
MUNICIPAL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
WATER UTILITY
User Twe
Schedule of Service Area and Customers
Number of Active Connections by Classification of User
as of June 30, 1997 through June 30, 2001
2001 2000
1999 1998 1997
Single family residential
Multiple family residential
CommerciaUinstitutional
Other
Total all users, active
32,991 32,550 32,062 31,692 32,105
2,792 2,793 2,798 2,830 2,870
3,703 3,693 3,336 3,268 3,126
1,148 1,081 1,253 1,345 1,267
40,634 40,117 39,449 39,135 39,368
Revenue by Class of User
Fiscal Yeaz 2000-2001
User Class
Single family residential
Multiple family residential
CommerciaUindustrial
Other and unmetered
Total all users
$ 8,692,675 53.51%
2,807,150 17.28%
3,909,529 24.07%
835,540 5.14%
$16,244,894 100%
Lazgest users: The System had no customer accounting for more than three percent of the
revenues for the fiscal yeaz 2000-2001
Fiscal Year Percentage of
Revenue Annual Revenue
44
1
MCRJICIPAL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
Schedule of Sewer Rates and Statistics
Classification
Rates effective as of June 1, 1995:
Residential
Commercial:
Multi-family, mobil home pazks
(4 or mare units)
Retail, commercial, light industrial
(non-office, bakeries, mazkets,
theaters, dry cleaners)
Auto repair, caz wash
Offices, motels (without restaurants)
Restaurants, hotels (hoteUmotels
with restaurants)
Laundromats
Hospitals, convalescent homes
Schools, churches, nursey schools,
daycazes
Industry
Rates effective as of January 1, 1994:
Residential
Commercial:
Multi-family, mobil home pazks
(4 or more units)
Retail, commercial, light industrial
(non-office, bakeries, mazkets,
theaters, dry cleaners)
Auto repair, caz wash
Offices, motels (without restaurants)
Restaurants, hotels (hoteUmotels
with restaurants)
Laundromats
Hospitals, convalescent homes
Schools, churches, nursey schools,
daycazes
Industry
*HCF =Per 100 cubic feet of water usage.
Regional
Facilities
and Collection
Treatment System Total monthly
Chazge Chazge City Chazge
$13.25 per month $1.35 per month $14.60
$OJS/HCF* $0.15/HCF* $0.90/EICF*
$1.10/HCF* $0.15/HCF* $1.25/HCF*
$1.20/HCF* $0.15/HCF* $1.35/HCF*
$0.95/HCF* $0.15/I-ICF* $1.10/HCF*
$1.70/I-ICF* $0.15/HCF* $1.85/HCF*
$0.90/I-ICF* $0.15/I-ICF* $LOS/HCF*
$0.80/I-ICF* $0.15/HCF* $0.95/I-ICF*
$0.50/HCF* $0.15/HCF* $0.65/HCF*
$826.67/MG $264.22/1,000 LBS BOD
(Dischazge flow) $324.28/1,000 LBS SS
$13.55 per month $1.35 per month $14.90
$0.80/HCF* $0.15/IICF* $0.95/HCF*
$1.15/HCF* $0.15/HCF* $1.30/HCF*
$1.25/I-ICF* $0.15/HCF* $1.40/HCF*
$1.00/HCF* $0.15/HCF* $1.15/I-ICF*
$1.75/HCF* $0.15/HCF* $1.90/HCF*
$0.95/HCF* $0.15/I-ICF* $1.10/HCF*
$0.85/HCF* $0.15/HCF* $L00/HCF*
$0.55/HCF* $0.15/HCF* $0.70/HCF*
$908.33/MG $264.22/1,000 LBS BOD
(Dischazge flow) $324.28/1,000 LBS SS
45
MUNICIPAL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
Schedule of Sewer Rates and Statistics, (Continued)
June 30, 2001
Residential Nonresidential Total
Number of connections
City of San Bemazdino 27,416 4,721 32,137
East Valley Water District 16,266 1,112 17,378
City of Loma Linda 3,717 556 4,273
47,399 6,389 53,788
Annual billings
City of San Bemazdino* $5,358,697 $4,845,227 $10,203,924
East Valley Water District 2,668,842 1,694,211 4,363,053
City of Loma Linda 564,432 796,555 1,360,987
$8,591,971 $7,335,993 $15,927,964
Average monthly billings
City of San Bernazdino $446,558 $403,769 $850,327
East Valley Water District 222,404 141,184 363,588
City of Loma Linda 47,036 66,380 113,416
$715,998 $611,333 $1,327,331
46
June 30, 2000 June 30, 1999
Residential Nonresidential Total Residential Nonresidential Total
32,247 3,579 35,826 32,553 3,718 36,271
16,764 1,111 17,875 16,613 1,176 17,789
3,442 1,020 4,462 3,444 818 4,262
52,453 5,710 58,163 52,610 5,712 58,322
$5,210,927 5,185,652 10,396,579 $5,126,734 4,691,828 9,818,562
2,583,418 1,622,650 4,206,068 2,631,064 1,486,077 4,117,141
548,000 779,152 1,327,152 539,410 841,448 1,380,858
$8,342,345 7,587,454 15,929,799 $8,297,208 7,019,353 15,316,561
$434,244 432,138 866,382 $ 427,228 390,986 818,214
215,285 135,221 350,506 219,255 123,840 343,095
45,667 64,929 110,596 44,951 70,121 115,072
$695,196 632,288 1,327,484 $ 691,434 584,947 1,276,381
47
MUNICIPAL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
Schedule - 1992 Certificates of Participation
San Bernardino Public Safety Authority
June 30, 2001
EARLY PAY OFF
During Fiscal Yeaz, 2001, the 1992 Certificates of Participation were retired by an eazly 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 $257,481 will continue to be amortized annually in the amount of
$16,520 with the final payment of $9,681 due February 1, 2017.
Funds used for the Primary Hydraulic Reliability Project, remodel of the administration laboratory
building, and design of 3A secondary treatment.
48
Date Due
8-1-2001
2-1-2002
8-1-2002
2-1-2003
8-1-2003
2-1-2004
8-1-2004
2-1-2005
8-1-2005
2-1-2006
8-1-2006
2-1-2007
8-1-2007
2-1-2008
8-1-2008
2-1-2009
8-1-2009
2-1-2010
8-1-2010
2-1-2011
8-1-2011
2-1-2012
8-1-2012
2-1-2013
8-1-2013
2-1-2014
8-1-2014
2-1-2015
8-1-2015
MUNICIPAL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
Schedule - 1998 Refunding Sewer Revenue Certificates of Participation
San Bernazdino Public Safety Authority
June 30, 2001
Principal
Principal Unamortized Payments
Payments Discounts (Net) Interest Total
$ 1,505,000 9,403 1,495,597
1,575,000 9,013 1,565,987
1,650,000 8,604 1,641,396
1,730,000 8,176 1,721,824
1,815,000 7,727 1,807,273
1,910,000 7,257 1,902,743
2,010,000 6,760 2,003,240
2,125,000 6,238 2,118,762
2,240,000 5,687 2,234,313
2,365,000 5,105 2,359,895
2,510,000 4,492 2,505,508
2,650,000 3,840 2,646,160
2,805,000 3,152 2,801,848
2,965,000 2,424 2,962,576
848,501
848,501
818,777
818,777
786,884
786,884
753,059
753,059
717,161
717,161
678,593
678,593
637,528
637,528
587,278
587,278
539,465
539,465
486,825
486,825
427,700
427,700
368,088
368,088
303,825
303,825
237,206
237,206
159,375
848,501
2,344,098
818,777
2,384,764
786,884
2,428,280
753,059
2,474,883
717,161
2,524,434
678,593
2,581,336
637,528
2,640,768
587,278
2,706,040
539,465
2,773,778
486,825
2,846,720
427,700
2,933,208
368,088
3,014,248
303,825
3,105,673
237,206
3,199,782
159,375
Interest
Rate
3.95%
3.95%
4.05%
4.05%
4.10%
4.10%
4.15%
4.15%
4.25%
4.25%
4.30%
4.30%
5.00%
5.00%
4.50%
4.50%
4.70%
4.70%
5.00%
5.00%
4.75%
4.75%
4.85%
4.85%
4.75%
4.75%
5.25%
5.25%
5.00%
49
MUNICIPAL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
Schedule - 1998 Refunding Sewer Revenue Certificates of Participation
San Bernazdino Public Safety Authority
June 30, 2001
(Continued)
Principal
Principal Unamortized Payments
Date Due Payments Discounts (Net) Interest Total
2-1-2016 $ 3,155,000 1,655 3,153,345 159,375 3,312,720
8-1-2016 80,500 80,500
2-1-2017 3,220,000 836 3,219,164 80,500 3,299,664
$ 36,230,000 90,369 36,139,631 16,861,530 53,001,161
Interest
Rate
5.00%
5.00%
5.00%
50
MUNICIPAL WATER DEPARTMENT OF THE CTI'Y OF
SAN BERNARDINO, CALIFORNIA
Series 1998A Water and Wastewater Revenue Bonds
June 30, 2001
Unamortized
Discounts
and Principal
Principal Deferred Payments Interest
Date Due Payments Chazges (Net) Interest Total Rate
10-1-2001 $1,055,000 89,671 965,329 121,858 1,087,187 4.05%
4-1-2002 100,494 100,494 4.05%
10-1-2002 1,095,000 74,016 1,020,984 100,494 1,121,478 4.15%
4-1-2003 77,772 77,772 4.15%
10-1-2003 1,160,000 57,338 1,102,662 77,773 1,180,435 4.20%
4-1-2004 53,412 53,412 4.20%
10-1-2004 1,195,000 39,360 1,155,640 53,413 1,209,053 4.30%
4-1-2005 27,720 27,720 4.30%
10-1-2005 1,260,000 20,476 1,239,524 27,720 1,267,244 4.40%
$5,765,000 280,861 5,484,139 640,656 6,124,795
Funds used to defease and prepay 1990 Certificates of Participation issued to finance construction of
reservoirs, wells and mains, and to finance future improvements of Water Facilities.
51
MiJNICIPAL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
Bond Schedule -General Obligation Waterworks Bonds, Series C
June 30, 2001
Date Due Payments Interest Total
Interest '
Rate
9-1-2001 $ - 4,069 4,069 7.75%
3-1-2002 5,000 4,069 9,069 7.75%
9-1-2002 - 3,875 3,875 7.75%
3-1-2003 5,000 3,875 8,875 7.75%
9-1-2003 - 3,681 3,681 7.75%
3-1-2004 5,000 3,681 8,681 7.75%
9-1-2004 - 3,488 3,488 7.75%
3-1-2005 5,000 3,488 8,488 7.75%
9-1-2005 - 3,294 3,294 7.75%
3-1-2006 10,000 3,294 13,294 7.75%
9-1-2006 - 2,906 2,906 7.75%
3-1-2007 10,000 2,906 12,906 7.75%
9-1-2007 - 2,519 2,519 7.75%
3-1-2008 10,000 2,519 12,519 7.75%
9-1-2008 - 2,131 2,131 7.75%
3-1-2009 10,000 2,131 12,131 7.75%
9-1-2009 - 1,744 1,744 7.75%
3-1-2010 10,000 1,744 11,744 7.75%
9-1-2010 - 1,356 1,356 7.75%
3-1-2011 10,000 1,356 11,356 7.75%
9-1-2011 - 969 969 7.75%
3-1-2012 10,000 969 10,969 7.75%
9-1-2012 - 580 580 7.75%
3-1-2013 15,000 580 15,580 7.75%
$ 105,000 61,224 166,224
Bonds related to water system improvements for South San Bernardino Water District, which was
acquired by the Department in 1991.
52