HomeMy WebLinkAbout21-Water Department
C I T Y 0 F SAN B ERN A R DIN QCEIVED-CITY elf
MUNICIPAL WATER DEPARTMENT HI(
INTEROFFICE MEMORANDUM .. NIfl18 P2:24
TO:
Rachel Clark, City Clerk
C ,': . ~. , '" : L
FROM: Stacey R. Aldstadt, Deputy General Manager
SUBJECT: REVISED 2000-2001 AUDIT REPORT FOR WATER DEPARTMENT
WATER AND SEWER UTILITIES
DATE: April 10, 2002
CC: Bernard C. Kersey, David Erickson
At their January 8,
Commissioners approved
2000-2001, which was
Associates, L.L.P. A
attention.
2002 meeting, the Board of
the annual audit report for fiscal
prepared by the firm of Conrad
copy of that report was forwarded to
Water
year
and
your
Since that time, financial statements for the Water Department
have been revised to reflect additional non-operating revenue to
the department, and which made it necessary to reflect these
changes into the audit. The Board approved the Revised 2000-
2001 Annual Audit Report at their March 19, 2002 meeting; a copy
is enclosed 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.
~~
Stacey R. Aldstadt
Deputy General Manager
als
Attachment
No.d./
S/JJJ /dr
)
"-- ~--~
REVISED COpy (MARCH 2002)
RECEIVED-CITY CLEHK
'OZ llPR 18 P2:24
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CONRAD AND
ASSOCIATES, L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS
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MUNICIPAL WATER DEPARTMENT OF THE
CITY OF SAN BERNARDINO, CALIFORNIA
Financial Statements
Years ended June 30, 2001 and 2000
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Financial Statements
Years ended June 30, 2001 and 2000
TABLE OF CONTENTS
Page
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
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SUPPLEMENTARY INFORMATION
Statistical Schedules:
Board of Water Commissioners and Organization
Schedule ofInsurance Coverage
Schedule of Water System Demographics
Schedule of Water Production
Schedule of Water Rates
Schedule of Sundry Water Statistical Data
Schedule of Service Area and Customers
Schedule of Sewer Rates and Statistics
Schedule - 1992 Certificates of Participation, San Bernardino
Public Safety Authority
Schedule - 1998 Refunding Sewer Revenue Certificates of Participation,
San Bernardino Public Safety Authority
Series 1998A Water and Wastewater Revenue Bonds
Bond Schedule - General Obligation Waterworks Bonds, Series C
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SUPPLEMENTARY INFORMATION, (CONTINUED)
Water Utility (Individual Fund Statements and Schedules):
Balance Sheets
Statements of Revenues and Expenses
Statements of Changes in Fund Equity
Statements of Cash Flows
Schedules of Operating Expenses
Schedules of Board of Water Commissioners Expenses
Schedules of Administration Expenses
Schedules of Safety and Loss Control Expenses
Schedules of Personnel Expenses
Schedules of Finance and Accounting Expenses
Schedules of Data Processing Expenses
Schedules of Purchasing and Stores Expenses
Schedules of Administrative Services Expenses
Schedules of Customer Services Expenses
Schedules of Billing and Posting Expenses
Schedules of Cashiering Expenses
Schedules of Meter Reading Expenses
Schedules ofField Services Expenses
Schedules of Water Utility Administration
Schedules of Operations Administration Expenses
Schedules of Production and Pumping Expenses
Schedules of Geothermal Expenses
Schedules of Plant and Facilities Maintenance Expenses
Schedules of Specialized Construction Expenses
Schedules of Electrical Repair Expenses
Schedules of Distribution Administration Expenses
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Financial Statements
Years ended June 30, 200 I and 2000
TABLE OF CONTENTS. (CONTINUED)
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Financial Statements
Years ended June 30, 2001 and 2000
TABLE OF CONTENTS, (CONTINUED)
Page
SUPPLEMENTARY INFORMATION, (CONTINUED)
Water Utility, Continued:
Schedules of Service and Repair Expenses
Schedules of Meter Shop Expenses
Schedules of Garage - Vehicle Maintenance Expenses
Schedules of Engineering Expenses
Schedules of Water Quality and Backflow Connection Expenses
Schedules of General, Administration, and Overhead Expenses
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90
Sewer Utility (Individual Fund Statements and Schedules):
Balance Sheets
Statements of Revenues and Expenses
Statements of Changes in Fund Equity
Statements of Cash Flows
Schedules of Operating Expenses
Schedules of Administration Expenses
Schedules of Engineering Services Expenses
Schedules of Plant Operations Expenses
Schedules ofBio-Solids Processing Expenses
Schedules ofRIX Facility Operations Expenses
Schedules of Plant Maintenance Expenses
Schedules of Facilities Maintenance Expenses
Schedules of Electrical Instrumentation Expenses
Schedules of Environmental Control Expenses
Schedules of General, Administration, and Overhead Expenses
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III
Report on Compliance and Internal Control over Financial Reporting
Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
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CONRAD AND
ASSOCIATES, L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS
1100 MAIN STREET, SUITE C
IRVINE, CALIFORNIA 92614
(949) 474-2020
Fax (949) 263-5520
Water Commissioners Board
Municipal Water Department of the City of
San Bernardino, California
Independent Auditors' Report
We have audited the accompanying general purpose financial statements of the Municipal Water
Department of the City of San Bernardino, California as of and for the years ended June 30, 2001
and June 30, 2000. These general purpose financial statements are the responsibility of the
management of the Municipal Water Department of the City of San Bernardino, California. Our
responsibility is to express an opinion on these general purpose financial statements based on our
audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
general purpose financial statements are 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 I, the financial statements present only the Municipal Water Department
and are not intended to present fairly, in all material respects, the financial position of the City of
San Bernardino, California, and the results of its operations and cash flows of its proprietary fund
types, in conformity with 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
Bernardino, California, as of June 30, 2001 and June 30, 2000, and the results of its operations
and the cash flows for the years 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 are presented for purposes of additional analysis and are not a required part of the
general purpose financial statements of the Municipal Water Department of the City of San
Bernardino, California. Such information has been subjected to the auditing procedures applied
in the audit of the 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 aLlFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
Water Commissioners Board
Municipal Water Department of the City of
San Bernardino, 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
Bernardino's internal control over financial reporting and our tests of its compliance with certain
provisions of laws, regulations, contracts and grants.
~A'/-/ ~""";'M ?,?r.'
November 8, 2001
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA I
Combining Balance Sheets I
June 30, 2001 and 2000
I
Water Sewer Totals I
Utility Utility Eliminations 2001 2000
Assets
Assets: I
Current assets:
Cash and investments (note 2) $ 7,983,384 17,058,862 25,042,246 23,064,958
Accounts receivable, net 3,829,908 2,588,315 6,418,223 5,860,780 I
Interfund receivable 154,734 (154,734)
Related party receivables (note 9) 137,505 297,660 435,165 634,388
Inventory 1,388,738 1,388,738 1,336,542 I
Prepaid expenses 147,441 179,689 327,130 324,672
Total current assets 13,641,710 20,124,526 (154,734 ) 33,611,502 31,221,340
Restricted assets: I
Cash and investments:
Restricted for debt service (note 2) 566,963 3,507,596 4,074,559 38,832,911 I
Restricted for capital-related fees (note 2) 64,923 3,791,371 3,856,294 3,718,303
Restricted for consumer deposits (note 2) 1,609,118 1,609,118 1,378,108
Interest receivable 3,180 80,861 84,041 805,168
Total restricted assets 2,244,184 7,379,828 9,624,012 44,734,490 I
Property, plant, equipment, and water rights:
Property, plant, equipment, and water rights I
(note 4) 95,602,210 170,733,824 266,336,034 261,298,910
Less accumulated depreciation and
amortization (note 4) (39,982,786) (42,983,961) (82,966,747) (77,025,077) I
Construction in progress (note 4) 9,996,203 2,070,430 12,066,633 14,852,662
Total property, plant, equipment, and
water rights, net 65,615,627 129,820,293 195,435,920 199,126,495 I
Other assets:
Debt issuance costs. net 77,702 530,290 607,992 686,062 I
Deferred caU premium 656,448 656,448
Total other assets 77,702 1,186,738 1,264,440 686,Q62
Total assets $ 81,579,223 158,511,385 (154,734) 239,935,874 275,768,387 I
(Continued) I
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Combining Balance Sheets
(Continued)
Water Sewer Totals
Utility Utility Eliminations 2001 2000
Liabilities and Eauitv
Liabilities:
Current liabilities:
Current portion of notes payable (note 6) S 1,564,785 1,564,785 1,512,500
Accounts payable 1,591,261 1,025,656 (102,410) 2,514,507 2,941,836
lnterfund payable 52,324 (52,324)
Related party payables (note 9) 599,350 64,958 664,308 614,142
Accrued expenses 19,936 17,739 37,675 11,110
Accrued compensation 1,529,199 619,962 2,149,161 2,043,564
Other deposits 435,038 18,414 453,452 376,692
Total current liabilities 4,174,784 3,363,838 (154,734) 7,383,888 7,499,844
Current liabilities payable from restricted assets:
Current portion of certificates of participation
(note 6) 1,495,597 1,495,597 1,105,000
Current portion of bonds payable (note 6) 970,329 970,329 1,020,000
Accrued interest payable 60,929 869,395 930,324 1,871,946
Consumer deposits 1,584,586 1,584,586 1,404,577
Total current liabilities payable from
restricted assets 2,615,844 2,364,992 4,980,836 5,401,523
Lon8-term debt:
Notes payable (note 6) 25,666,805 25,666,805 27,262, III
Certificates of participation (note 6) 34,386,553 34,386,553 69,556,228
Bonds payable (note 6) 4,618,810 4,618,810 5,484,990
TotatIong-term debt 4,618,810 60,053,358 64,672,168 102,303,329
Total liabilities 11,409,438 65,782,188 (154,734) 77,036,892 115,204,696
Fund equity:
Contributed capital (note 3) 49,461,465 63,553,696 113,015,161 113,015,161
Retained. earnings 20,708,320 29,175,501 49,883,821 47,548,530
Total fund equity 70.169.785 92.729.197 162.898.982 160563.691
Total liabilities and fund equity S 81,579,223 158,511,385 (154,734) 239,935,874 275,768,387
See accompanying notes to financial statements.
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
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Combining Statements of Revenues, Expenses, and Changes in Retained Earnings
For the years coded June 30, 2001 and 2000
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See accompanying notes to financial statements.
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Combining Statements of Cash Flows
For the years ended June 30, 2001 and 2000
Water Sewer Totals
Utility Utility 2001 2000
Cash flows from operating activities:
Cash received from customers $ 16,737,465 17,174,425 33,911,890 34,118,183
Rental income 74,014 30,231 104,245 108,875
Nonoperating miscellaneous revenue received (11,647) (106,085) (117,732) 41,013
Cash paid to suppliers of goods & services (9,241,329) (4,501,571) (13,742,900) (14,456,315)
Cash paid to employees for services (4,494,416) (7,538,070) (12,032,486) (11,599,969)
Net cash provided by (used for) operating activities 3,064,087 5,058,930 8,123,017 8,211,787
Cash flows from noncapital financing activities:
Grant proceeds received 561,320 561,320 384,348
Net cash provided by (used for) noncapital
financing activities 561,320 561,320 384,348
Cash flows from capital and related financing activities:
Sale of fixed assets (76,465) (76,465) 327,689
Charges to property owners for capital purposes 811,934 1,665,187 2,477,121 2,136,527
Grant proceeds received 1,162,330 1,162,330 122,373
Cash paid to acquire fixed assets (4,211,085) (1,808,142) (6,019,227) (4,717,617)
Principal paid on capital-related debt (915,851) (36,322,098) (37,237,949) (3,322,159)
Interest paid on capital-related debt (382,971 ) (5,593,637) (5,976,608) (5,516,821)
Net cash provided by (used for) capital and related
financing activities (3,612,108) (42,058,690) (45,670,798) (10,970,008)
Cash flows from investing activities:
Proceeds from sale of investments 34,406,630 34,406,630
Interest received 855,620 3,718,778 4,574,398 3,329,759
Net cash provided by (used for) investing activities 855,620 38,125,408 38,981,028 3,329,759
Net increase (decrease) in cash 868,919 1,125,648 1,994,567 955,886
Cash and cash equivalents at beginning of year 9,355,469 19,758,431 29,113,900 28,158,014
Cash and cash equivalents at end of year $ 10,224,388 20,884,079 31,108,467 29,113,900
(Continued)
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MUNICIPAL WATER DEPARTMENT OFTRE CITY OF SAN BERNARDINO, CALIFORNIA
Combining Statements of Cash Flows
(Continued)
Water Sewer Totals Totals
Utility Utility 2001 2000
Reconciliation of cash and cash equivalents to amounts
reported on the balance sheet:
Reported on the balance sheet:
Cash and investments $ 7,983,384 17,058,862 25,042,246 23,064,958
Restricted assets 2,244,184 7,379,828 9,624,012 44,734,490
Less restricted assets not meeting the definition of
cash equivalents:
U.S. Treasury notes (34,283,817)
Investment agreements (3,473,750) (3,473,750) (3,596,563)
Interest and other receivables (3,180) (80,861) (84,04 I) (805,168)
Cash and cash equivalents at end of year $ 10,224,388 20,884,079 31,108,467 29,113,900
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating iqcome (loss) $ (887,351) 2,260,145 1,372,794 363,253
Depreciation and amortization 2,302,270 3,853,726 6,155,996 6,647,429
Nonoperating miscellaneous revenue (11,647) (106,085) (117,732) 41,013
Rental income 74,014 30,231 104,245 108,875
Adjustments:
Change in accounts receivable (486,787) (70,656) (557,443) (385,607)
Change in interfund receivable (33,361) 15,791 (17,570) 957
Change in related parties receivable 188,553 110,410 298,963 472,075
Change in inventory (52,196) (52,196) 3,097
Change in prepaid expenses 5,997 (8,455) (2,458) (38,947)
Change in accounts payable (418,360) (24,695) (443,055) (721,944)
Change in interfund payable 33,296 33,296 16,519
Change in related parties payable 68,386 (117 ,960) (49,574) 523,836
Change in accrued expenses 10,618 15,947 26,565 5,459
Change in accrued compensation 91,660 13,937 105,597 (197,546)
Change in consumer deposits 1,232,894 (6,586) 1,226,308 224,360
Change in other deposits (969,539) (969,539) (9,091)
Change in other assets 1,948,936 (940,116) 1,008,820 1,158,049
Net cash provided by (used for) operating activities $ 3,064,087 5,058,930 8,123,017 8,211,787
Noncash. investimz. caoital and financimz activities
During the fiscal year 2000-0 I, there 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
Year ended June 30, 200 I and 2000
(1)
Summary of Significant Accounting Policies
Reporting Entity
The Municipal Water Department of the City of San Bernardino, California ("the
Department") is governed under the Charter of the City of San Bernardino. A Board of
Water Commissioners who is appointed by the Mayor of the City of San Bernardino has
certain limited powers with respect to the Department. The Department has no separate
organizing document and is a part of the legal entity of the City of San Bernardino. The
Municipal Water Department of the City of San Bernardino operates two enterprise
funds: the Water Utility Enterprise Fund (Water Utility) and the Sewer Utility Enterprise
Fund (Sewer Utility). The Water Utility also provides administrative services and
contracted services to the Sewer Utility. The accounting policies of the Department
conform to generally accepted accounting principles (GAAP) as applicable to
governments.
The preparation of these financial statements requires management to make estimates and
assumptions. Those estimates and assumptions affect the reported amounts of assets,
liabilities, revenues, and expenses, as well as the disclosure of contingent assets and
liabilities. Actual results could differ from those estimates. Management also determines
the accounting principles to be used in the preparation of the financial statements. A
description of the significant accounting policies employed in the preparation of these
financial statements follows:
Fund Accounting
The accounts of the Department are organized and operated on the basis of funds. A fund
is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund
accounting segregates funds according to their intended purpose and uses them to aid
management in demonstrating compliance with finance-related legal and contractual
provisions. The Department's financial statements include only enterprise funds, which
are a proprietary fund type. Enterprise funds are used to account for those operations that
are financed and operated in a manner similar to private business or where the Board has
decided that the determination of revenues earned, costs incurred and/or net income is
necessary for management accountability.
Basis of Accounting
Proprietary funds are accounted for on the flow of economic resources measurement
focus and use the accrual basis of accounting. Under this method, revenues are recorded
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(1)
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
Summary of Significant Accounting Policies, (Continued)
when earned and expenses are recorded at the time liabilities are incurred. The
Department applies all applicable GASB pronouncements in accounting and reporting for
its proprietary operations and applicable FASBs that occurred prior to November 30,
1989.
Cash and Investments
Investments are 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 are not transferable and they have terms that are not affected by changes in market
interest rates.
Changes in fair value that occur during a fiscal year are recognized as investment income
reported for that fiscal year. Investment income includes interest earnings, changes in fair
value and any gains or losses realized upon the liquidation or sale of investments.
Cash for the Department is pooled with the City of San Bernardino for investment
purposes in order to maximize interest earnings. Such earnings are credited to the various
funds within the City of San Bernardino based upon average monthly cash balances. The
investment policies and the associated risk factors as they relate to the Department are
included in the City's Comprehensive Annual Financial Report.
For the purpose of the statement of cash flows, cash and cash equivalents include all
highly liquid investments (including restricted assets) with maturity of three months or
less when purchased.
Receivables
Trade receivables are shown net of an allowance for uncollectible accounts based on
management's estimate.
Interfund Receivables and Payables
Transactions between funds that are representative of lendinglborrowing arrangements
outstanding at the end of the fiscal year are referred to as either "interfund
receivables/payables" (i.e., the current portion of interfund loans) or 'advances to/from
other funds" (Le., the non-current portion of interfund loans). All interfund transactions
are eliminated for financial reporting purposes.
Jl
Wells, pumping plants, reservoirs, and distribution system
Interceptor lines
Disposal plant
Leasehold improvements
Shops, offices, stores, and yards
Tools and equipment
8 to 50 years
50 years
35 to 50 years
5 to 25 years
10 to 20 years
4 to 20 years
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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 are valued at the lower of cost, using the average-cost method, or market.
Restricted Assets
Various resources of the Department are limited as to their use by law or by certificates of
participation and bond covenants and are classified on the balance sheet as restricted
assets. Proceeds of the certificates of participation and bonds are restricted for the
construction of water and sewer system improvements and for repayments. Assessments
collected from property owners are restricted for the payment of bond principal and
interest. Also, fees imposed on new real estate development are restricted by law for the
construction of capital improvements that benefit the development projects.
Issuance Costs and Discount
Issuance costs, discounts, and deferred funding charges for certificates of participation
and bonds payable are being amortized using the effective interest rate method over the
term of the related certificate or bond or the straight-line method which approximates the
effective interest method.
Property, Plant, Equipment and Water Rights
Property, plant, equipment and water rights 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 24.75 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. Useful lives for depreciation purposes are as follows:
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(1)
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
Summary of Significant Accounting Policies, (Continued)
Office equipment
Communication equipment
Computer equipment
Automotive equipment
5 to 20 years
8 to 10 years
5 to 10 years
3 to 8 years
Equipment leased under capital leases is recorded at cost, and amortization has been
provided for using the straight-line method over the estimated useful life. Amortization is
included in depreciation expense.
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 (two
weeks for managers and mid-management employees). Employees' vacation benefits are
recognized as a liability of the Department.
Sick leave is accumulated without limit for each employee at the rate of 3.7 hours per pay
period. Leave with pay is provided when employees are absent for health reasons 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 of accumulated sick leave up to a maximum of 1,152
hours. Accrued sick leave benefits are 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.
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.
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MUNICIP AL 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
Internal investment pool with City of San Bernardino
Investments with fiscal agent
$ 49,995
30,481,385
4,050,837
$34.582.217
Total
Cash and investments are reported as follows in the combining balance sheets:
Cash and investments
Restricted cash and investments:
Restricted for debt service
Restricted for capital-related fees
Restricted for consumer deposits
$25,042,246
4,074,559
3,856,294
1,609,118
$34.582.217
Total
The Department maintains substantially all of its operating funds in the City of San
Bernardino Treasury (an internal investment pool). These funds are reported at estimated
fair value. Investment earnings are proportionately shared by all funds in the internal
investment pool of the City.
The Department is generally authorized under provisions of the City of San Bernardino'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 are taken into consideration. Investment instruments may include:
Securities of the U.S. Government or its agencies
Treasury notes, bonds
Negotiable certificates of deposit - (30% max)
Banker's acceptances - (30% max)
Commercial paper - (15% max)
Repurchase agreements - (10% max)
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(2)
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
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 Market Accounts - (20% max)
Medium Term Corporate Notes - (30% max)
Under the California 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 market value of the pledged securities in the
collateral pool must equal at least 110% of the total amount deposited by the public
agencies. California law also allows financial institutions to secure Department deposits
by pledging first trust deed mortgage notes having a value of 150% of the secured public
deposits.
Deposits of cities and other state or local governments are classified in three categories to
give an indication of the level of custodial risk assumed by the entity. Category I
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, 200 I, deposits were categorized as follows:
Category
2
Bank
Balance
Carrying
Amount
F orrn of Deposit
I
3
Demand deposits
Total deposits
$15,007
~15.007
15,007
15.007
49,995
49.995
15
Total deposits
$ 44,128
$ 44.128
44,128
44.128
40,010
40.010
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MUNICIP AL 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:
Category
2
1
3
Bank
Balance
Carrying
Amount
Form of Deposit
Demand deposits
The Department's investments are categorized as either (1) insured or registered or for
which the securities are held by the Department or its agent in the Department's name, (2)
uninsured and unregistered for which the securities are held by the broker's or dealer's
trust department or agent in the Department's name, or (3) uninsured and unregistered for
which the securities are held by the broker or dealer or by its trust department or agent
but not in the Department's name. Category 3 also includes securities held by the same
party (bond trustee) that acts as both the custodian and the counterparty for the
investment transaction. The Department's investments in the Local Agency Investment
Fund and money market funds have not been categorized because securities are not used
as evidence of the investments but are an ownership interest in pooled investment funds:
As of June 30, 2001, investments were categorized as follows:
Form of Investment
1
Category
2
2.
Carrying Amount
Investments held by bond trustee:
U.S. Treasury notes $
33,846
33.846
33,846
33,846
$
Investments not subject to categorization:
Mutual funds
Investment agreements
Internal investment pool with the City of San Bernardino
Total investments
543,241
3,473,750
30,481,385
$34.532.222
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(2)
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
Cash and Investments, (Continued)
As of June 30, 2000, investments were categorized as follows:
Category
2
Carrying Amount
Form ofInvestment
3
1
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
Investment agreements
Internal investment pool with the City of San Bernardino
932,797
3,596,563
28,141,093
$66.954.270
Total investments
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 are
mandated by bond indentures as to the types of investments in which debt proceeds can
be invested. The investments predominantly consist of U.S. Treasury notes, mutual
funds, and investment agreements.
(3)
Change in Accounting Principle
Effective July 1, 2000, GASB Statement No. 33 changed the manner in which capital
contributions are 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 acquisition,
improvement, or construction of capital assets. As a result of the implementation of
GASB Statement No. 33, capital contributions are now required to be reflected in the
statement of revenues, expenses and changes in retained earnings. 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 year ended June 30, 2002.
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MUNICIPAL WATER DEPARTMENT I
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements I
(Continued) I
(4) Property, Plant, Equipment and Water Rights
The following is a summary of property, plant, equipment and water rights at June 30, I
2001:
Water Sewer
Utility Utility Total I
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 I
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 I
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 I
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 I
Total 105,598,413 172,804,254 278,402,667
Accumulated Depreciation (39,982,786) (42,983,961) (82,966,747) I
Net $65.615,627 129,820.293 195.435,920
The following is a summary of property, plant, equipment and water rights at June 30,
2000: I
Water Sewer
Utility Utility Total
Land and easements $ 2,732,017 12,200,021 14,932,038 I
Water rights, wells and pumping plants 31,233,601 3,192,218 34,425,819
Distribution systems 53,186,047 53,186,047 I
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 I
Office, computer, engineering equipment 1,811,666 488,081 2,299,747
Radio and interoffice communication
equipment 178,644 178,644 I
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 I
Accumulated Depreciation (37,861,139) (39.163,938) (77,025,077)
Net $ 65.655.748 133.470.747 199.126.495 I
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(5)
(6)
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
Operating Leases
The Department leases office space from the City of San Bernardino under a
noncancellable operating lease terminating in 2002. The following is a schedule of
minimum lease payments as of June 30, 200 I:
For the year ending June 30:
Office Space
Water Sewer
Total
137.790
2002
$121.439 16.351
Long-Term Debt
The following is a sununary of changes in long-term debt obligations for the year ended
June 30, 2001:
Balance Balance
July I. 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 Board (SWRCB)
Maturity date: 20 II
Interest rate: 3.3 %
Repayment provisions: Annual principal and interest
payments of $279,293
Balance
$2,346,364
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(6)
Long-Term Debt, (Continued)
San Bernardino Valley Municipal Water District
Maturity date: 2013
Interest rate: 7.25%
Repayment provisions: Annual principal and interest
payments of $456,250
Balance
3,576,055
State Water Resources Control Board (SWRCB)
Maturity date: 2016
Interest rate: 2.8%
Repayment provisions: Annual principal and interest
payments of$I,761,739
Balance
21,309,171
27,231,590
1,564,785
$25.666.805
Less Current portion
Long-term portion
The State Revolving Fund loans between the State Water Resources Control Board and
the Santa Ana Watershed Authority provided funding for the construction of the San
Bernardino/Colton Rapid Infiltration Extraction (RIX) Project. The loan agreements were
amended in April 2001 to transfer the loan obligations to the successors in interest, being
the City of San Bernardino Board of Water Commissioners, and the City of Colton. The
loans require the Department to establish a Wastewater Capital Reserve Sinking Fund
(WCRF) for expansion, major repair or replacement of wastewater treatment works at
one-half of one percent of the total loan amount over a period of ten years. The
Department has decided to use the revenues of the Sewer Utility Fund towards repayment
of the loans.
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(6)
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
Long-Term Debt, (Continued)
Certificates of Participation
Annual
Original Principal
Amount Installments Balance
Interest
Rates
Issue
Date
Maturity ,
Date
1998 Refmancing Sewer
1998
2017 $36,230,000 1,505,000
to
3,220,000 36.230.000
3.95%
to
5.00%
36,230,000
Less unamortized discount
347.850
35,882,150
Less current portion payable from
restricted assets
1.495.597
Long-term portion
$34 386 553
It has been determined that no amounts are 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 arbitrage.
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 Participation in the amount of $36,230,000.
The proceeds of the 1998 Certificates were invested and used to pay interest on the 1998
issue until February 1,2001. The 1992 Certificates were called on February 1, 2001 at a
prepayment premium of two percent. The funds from the 1998 issue were used to payoff
the 1992 Certificates. The Department will now begin paying the installment payments on
the 1998 Certificates from the net revenues on the Sewer System. The Department has
covenanted that it will budget amounts sufficient to make all installment payments due.
The required reserve for the 1998 Refunding Sewer Revenue Certificates of Participation is
$1,811,500. As of June 30, 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
Waterworks Bonds,
Series C
7.75%
1988
2013
$150,000
$5,000
to
$15,000
105,000
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(6)
Long-Term Debt, (Continued)
Bonds Payable
1998 Water and Wastewater
Revenue Bonds
3.75%
to
4.40%
Annual
Issue Maturity Original Principal
Date Date Amount Installments Balance
1998 2005 $8,610,000 860,000
to
$1,260,000 $5,765,000
Interest
Rates
Total bonds payable
5,870,000
Less unamortized discount
and deferred advance
refunding charge
280,861
5,589,139
Less current portion payable from
restricted assets
970,329
Long-term portion
$4.618810
The Department has covenanted to set aside Water revenues to make installment
payments on the Bonds as due. A fInancial guaranty insurance policy has been issued,
and accordingly, no cash reserve balance is required to be established.
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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 Principal 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 1,650,000 1,545,580 3,195,580
2005 1,730,000 1,476,203 3,206,203
2006 1,815,000 1,402,182 3,217,182
Thereafter 27,955,000 9,154,357 37,109,357
36,230,000 16,861,530 53,091,530
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 1,200,000 88,109 1,288,109
2006 1,270,000 20,642 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 years from future resources.
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 are 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 are covered under a multiple-employer contributory retirement plan
maintained by an agency of the State of California, California Public Employees'
retirement System (PERS).
Plan Description
The Department is a part of the City of San Bernardino. The City contributes to PERS,
an agent multiple-employer public employee retirement system defined benefit pension
plan administered by PERS. All employees who work 1,000 hours or more are eligible to
participate. The plan provides retirement and disability benefits, annual cost-of-living
adjustments, and death benefits to plan members and beneficiaries. Benefit provisions are
established by state statutes, as legislatively amended, within the Public Employees'
Retirement Law. PERS issues a separate comprehensive annual financial report that
includes financial statements and required supplementary information. Copies of the
PERS annual financial report may be obtained from the PERS Executive Office, 400 "P"
Street, Sacramento, California 95814. PERS also issues a separate report on the actuarial
valuation of the plan of the City of San Bernardino, which is available at the Department.
Additional information regarding the City's participation in PERS can be found in the
City's financial statements.
(8) Post-Retirement Health Care Benefits
In addition to the pension benefits described in note 7, the Department provides the
minimum monthly premium for post-retirement medical-health care 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 care 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.
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(8)
(9)
MUNICIPAL WATERDEPARlMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
Post-Retirement Health Care Benefits, (Continued)
For those retirees who retired on or after attaining age 55 with a minimum of 15 years of
service, the Department will reimburse them a portion of that premium up to $227 per
month for those who are age 55 and older without Medicare coverage, and up to $126 per
month for those who are age 65 and older with Medicare coverage. Currently, eighteen
Water Utility retirees and one Sewer Utility retiree are 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 charge 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 care benefits and administrative
costs for the Water and Sewer Utilities.
Related Party Transactions
Following is a sununary of transactions and balances with the City of San Bernardino and
its various departments as of and for the year ended June 30, 2001:
Revenues
City of San Bernardino
Revenue from water charges
Revenue from sewer charges
Revenue from geothermal charges
Billing and collection charges - refuse
Billing and collection charges - storm drain
New services and mains - installation
Cost reimbursement
Interest income
$ 33,537
49,145
14,070
142,656
4,967
32,400
120
1,830,194
Economic Development Agency
Revenue from geothermal charges
Total revenue from related parties
2,203
$2.109.292
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Total Payables to Related Parties
$664,308
$664.308
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(9)
Related Party Transactions, (Continued)
Expenses
City of San Bernardino
10% water revenue
Sewer collection system maintenance
Worker's compensation - administration charges
Printing services
Purchases
Postage
City Hall rent
Phone charges
Refuse disposal service
Civil service
Legal services/affirmative action
Rideshare coordination
Payroll services
Data processing services
Engineering and other services
Miscellaneous charges
Total expenses to related parties
$1,733,392
1,201,490
65,581
8,121
81
9,137
183,720
108,011
74,007
45,000
105,000
3,000
28,000
434,024
15,230
14,882
$4.028.676
Receivables
City of San Bernardino
Finance Department
Total Receivables to Related Parties
$435,165
$435.165
Payables
City of San Bernardino
Finance Department
Following is a surmnary of transactions and balances with the City of San Bernardino and
its various departments as of and for the year ended June 30, 2000:
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(9)
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
Related Party Transactions, (Continued)
Revenues
City of San Bernardino
Revenue from water charges
Revenue from sewer charges
Revenue from geothermal charges
Billing and collection charges - refuse
Billing and collection charges - storm drain
New services and mains - installation
Cost reimbursement
Interest income
Economic Development Agency
Revenue from geothermal charges
Cost reimbursement
Total revenue from related parties
Expenses
City of San Bernardino
10% water revenue
Sewer collection system maintenance
Worker's compensation - administration charges
Printing services
Purchases
Postage
City Hall rent
Phone charges
Refuse disposal service
Civil service
Legal services/affirmative action
Rideshare coordination
Payroll services
Data processing services
Engineering and other services
Miscellaneous charges
Total expenses to related parties
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$ 16,408
84,901
16,870
140,050
5,282
15,386
4,479
1,657,750
1,762
3,220
$1.946.1 08
$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
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(9)
Related party Transactions, (Continued)
Receivables
City of San Bernardino
Finance Department
Facilities Management Department
Public ServicelRefuse Department
Public Works
City Library
Animal Shelter
$574,134
26,005
23,580
o
2,304
428
7,937
$634.388
Economic Development Agency
Total Receivables to Related Parties
Payables
City of San Bernardino
Finance Department
Total Payables to Related Parties
$614,142
$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 charges
from Sewer Utility customers. These remittances 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 Bernardino joined the West End Water
Development, Treatment and Conservation Joint Powers Authority (WEJPA) as a
financing vehicle for construction of water facilities. A separate three-member board
consisting of one representative from each agency's governing body governs the WEJP A.
The financial statements for the WEJP A are available at the Department. The
Departments' investment in the joint venture is included in the property, plant, and
equipment of the Department. The joint venture is not experiencing fiscal stress.
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
(10) Joint Venture, (Continued)
San Bernardino Public Safety Authority
On April 1, 1968, the City of San Bernardino and the County of San Bernardino formed
the San Bernardino Public Safety Authority (PSA), a joint powers authority, as a
financing vehicle to construct (1) public safety buildings and (2) improvements to the
wastewater treatment plant.
According to the original joint powers agreement, title to the PSA-constructed wastewater
treatment facility will automatically vest in the City with the residual cash being
transferred to the City after the bonds are repaid. A separate board consisting of three
members, one appointed by the San Bernardino City Council and two members appointed
by the San Bernardino County Board of Supervisors, governs PSA. Effective with the
transfer of the Sewer Utility to the Department, all the assets and activities of PSA related
to the wastewater treatment plant were also transferred to the Department pursuant to the
enabling resolution of October 1973 and are included in the property, plant, and
equipment of the Sewer Utility. The financial statements of PSA are available at the
Department. The joint venture is not experiencing fiscal stress.
Colton/San Bernardino Regional Tertiary Treatment and Water Reclamation Authority
On August 2, 1994, the City of San Bernardino, through the Department, formed a joint
powers authority with the City of Colton to construct, operate, use, and maintain tertiary
wastewater treatment, disposal, and water reclamation systems, including the Regional
Rapid Infiltration and Extraction Facility (RIX). The Colton/San Bernardino Regional
Tertiary Treatment and Water Reclamation Authority is governed by a separate board
consisting of four members, two of whom are appointed by the City of San Bernardino
through the Department's Board of Water Commissioners and two appointed by the City
Council of the City of Colton. Construction of the project was administered by the Santa
Ana Watershed Project Authority (SAWPA) and was substantially completed during
1996. Administration and operation of the project was turned over to the Colton/San
Bernardino Regional Tertiary Treatment and Water Reclamation Authority at that time.
Title to the property will be transferred upon final resolution of construction issues. Each
of the cities, San Bernardino and Colton, has an undivided interest in the real property
and any related debt of the RIX project based on a split of 80 percent and 20 percent,
respectively. The Departments' investment in the joint venture is included in the
property, plant, and equipment of the Department. The joint venture is not experiencing
fiscal stress.
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MUNICIPAL 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 are covered by commercial insurance for all major events except
workers' compensation, for which the Department retains risk ofloss in conjunction with
the City of San Bernardino's risk management program for workers' compensation. For
insured events, there have been no significant reductions in insurance coverage.
Settlement amounts have not exceeded insurance coverage for the current year or the
three prior years.
Workers Compensation Claims Liabilities
The Department records an estimated liability for workers' compensation. Claims
liabilities are based on estimates of the ultimate cost of reported claims (including future
claim adjustment expenses) and an estimate for claims incurred but not reported based on
historical experience. Workers' compensation unpaid claims liabilities are not discounted.
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(11)
(12)
MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financial Statements
(Continued)
Construction and Other Significant Commitments, (Continued)
The following represents the changes in approximate aggregate liabilities for the
Department for the year ended June 30, 2001:
Total
Liability balance, June 30, 2000
Claims and changes in estimates
Claim payments
$323,518
311,113
(242,955)
$391.676
Liability balance, June 30, 2001
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
Claims and changes in estimates
Claim payments
$473,282
35,816
(185,580)
$323,518
Liability balance, June 30, 2000
Contingencies
Federal and State Grants
Amounts received or receivable from grant agencies are subject to audit and adjustment
by grantor agencies, principally the federal and state governments. Any disallowed
claims, including amounts already collected, may constitute a liability of the Department.
The amount, if any, of expenditures which may be disallowed by the grantor cannot be
determined at this time although the Department expects such amounts, if any, to be
immaterial.
31
Retained earnings at beginning of year, as previously reported
Write-off of a construction project
Retained earnings at beginning of the year, as restated
Sewer
Utility Fund
$28,930,865
(2.614.442)
$26.3] 6.423
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Notes to Financia] Statements
(Continued)
(]2)
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 ofrecoveries, 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. Environmental Protection Agency (EP A).
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, 200] include approximately $8 million of improvements subject to EPA
reimbursement. An additional $20 million (approximate amount) of improvements
constructed directly by EP A are not reported on the accompanying balance sheet.
The Department is a defendant in various other lawsuits. Although the outcome of these
lawsuits is not presently determinable, it is the opinion of the Department's counsel that
resolution of these matters will not have a material adverse effect on the fmancial
condition ofthe 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 area 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 progress 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:
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SUPPLEMENTARY INFORMA nON
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MUNICIPAL WATER DEPARTMENT
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Board of Water Commissioners and Organization
Year Ended June 30, 2001
MAYOR OF THE CITY OF SAN BERNARDINO
Judith Valles
BOARD OF WATER COMMISSIONERS
Name
B. Warren Cocke
Toni Callicott
Martin A. Matich
Judith W. Battey
N orine 1. Miller
Office
President
Commissioner
Commissioner
Commissioner
Commissioner
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
JohnP. Murphy
Director, Administration and Finance
Jon K. Turnipseed, CSP
Safety Program Manager
ORGANIZATION
The City of San Bernardino Municipal Water Department was formed in 1904 under the Charter
of the City of San Bernardino. The Department is governed by a Board of Water Commissioners
who are appointed by the Mayor of the City of San Bernardino. The Charter gives the Board of
Water Commissioners semi-autonomous authority to govern the Department independent of the
City Council. The Department operates two enterprise funds: the Water Utility Enterprise Fund
and the Sewer Utility Enterprise Fund. Water service encompasses the City, with the exception
of the east end, which is serviced by the East Valley Water District. Sewer service encompasses
all of the City of San Bernardino, East Valley Water District, City of Lorna Linda, the former
Norton Air Force Base and Patton State Hospital.
3S
Multiple insurance companies and policies; all-risk property coverage, iocludiog
earthquake and flood - April 30, 200 I to April 30, 2002
Primary limit:
AIG/Lexington Insurance Company, Policy #8524618
Excess limits:
Commonwealth Insurance Company, Policy #US2693
Caliber One Indemnity Company, Policy #ZS100I03502
TIG Insurance Company, Policy #XPT38797327
Essex Insurance Company, Policy #MSP4685
Northfield Insurance Company, Policy #CFOOI566
Insurance Company of the West, Policy #XH0170103101
Agricultural Insurance Company, Policy #CPP32 I 1367
Greenwich Insurance Company, Policy #ACG33 I 1367
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 Lioes Insurance Company, Policy #3ZK11752400
Westchester Fire Insurance Company, Policy #FXL421995
2,500,000
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Schedule of Insurance Coverage
As ofJune 30, 200 I
Insurance coverage for the Department at June 30, 2001 is summarized below:
Federal Insurance Company, Policy #78357989; boiler and rnachioery
coverage - April 30, 2001 to April 30, 2002
Per occurrence limit
$
10,000,000
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
American Protection Insurance Co., Policy #3QXI1434900; general
liability - October 30, 2000 to October 30, 200 I
Per Occurance
BI/PD Aggregrate
Per Fire
25,000,000
50,000,000
1,000,000
American Protection Insurance Co., Policy #3QXI1434900; busioess
automobile coverage - October 30, 2000 to October 30,2001
Liability limit
UninsuredlUnderinsured motorists
Medical expense
Hired/nonowned liability
25,000,000
1,000,000
10,000
1,000,000
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Schedule of Insurance Coverage
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
(Continued)
American International Specialty Lines, Policy #PLS2673997; pollution
liability - October 29,1998 to October 30,2001 (each incident/aggregate)
Third-Party Claims, On-Site Bodily Injury and Property Damage
Third-Party Claims, Off-Site Clean-Up Resulting from New Conditions
Third-Party Claims, Off-Site Bodily Injury and Property Damage
American Protection Insurance Co., Policy #3QXI1434900; professional
liability - October 30, 2000 to October 30, 2001
Coverages included in American Protection Insurance Company
American Protection Insurance Co., Policy #3QXI1434900; personal
injury & advertising injury liability - October 30,2000 to October 30, 2001
Coverages included in American Protection Insurance Company
American Protection Insurance Co., Policy #3QXI1434900; wrongful
acts - October 30,2000 to October 30,2001
Coverages included in American Protection Insurance Company
Virginia Surety Company, Policy #0001565VRI; employment practices liability-
October 30,2000 to October 30, 2001
Hartford Fire Insurance Company, Policy #72BPEAK4746; crime
coverages - March 25, 2001 to March 2,2002
Employee theft (each incident)
Theft, disappearance and destruction
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The Department is self-insured through the City of San Bernardino for workers' compensation liability
and material damage to rolling stock.
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5,000,000
5,000,000
5,000,000
5,000,000
250,000
250,000
MUNICIPAL WATER DEPARTMENT OF THE CITY 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 4,118 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 ProductionlUtilization (Cubic Feet)
2000-01
Water utilization (shown in cubic feet)
Water sold to direct customers
Water sold to other agencies
Water sold to or used by City
1999-00
1998-99
1,753,464,900
125,690,240
89,650,051
1,968,805,191
148,770,069
7.025%
2,117,575,260
Loss and other factors
Loss and other factors percentage
Total water sold, used or lost
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1,922,461,466
73,187,011
92,782,474
2,088,430,951
166,747,619
7.394%
2,255,178,570
1,803,696,500
125,883,794
90,117,117
2,019,697,411
150,371,654
6.929%
2,170,069,065
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MUNICIPAL WATER DEPARTMENT OF TIIE CITY OF
SAN BERNARDINO, CALIFORNIA
Schedule of Water Production
June 30, 2001
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
Sunnnary of total water
production and purchased cost
Total production, purchases, and
supplemental 2,117,575 2,255,178 2,170,069
Production and pumping expenses. $4,299,573 $3,628,465 $2,985,298
Total expense before depreciation $4,299,573 $2.03042 $3,628,465 $1.60895 $2,985,298 $1.37567
Depreciation of plant facilities 807,493 0.38133 879,646 0.39006 925,290 0.42639
Totals $5,107,066 $2.41175 $4,508,111 $1.99900 $3,910,588 $1.80206
Sunnnary of costs per acre foot
Acre feet 48,612.833 51,771.763 49,817.929
Cost per acre foot before
depreciation $88.45 $70.09 $59.92
Cost per acre foot (including
depreciation of plant facilities) $105.06 $87.08 $78.50
.Includes operations administration.
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5/8"
3/4"
1"
1-1/2"
2"
3"
4"
6"
8"
10"
12"
$ 7.60
10.1 0
12.15
21.75
30.35
51.65
87.70
157.90
236.80
296.00
$ 355.25
6.60
8.80
10.55
18.90
26.40
44.90
76.25
137.30
205.90
257.40
308.90
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
Schedule of Water Rates
Water rates are summarized below:
Single Familv Dwelling Unit
Minimum Monthly Charge
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
I" 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 5,00
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
Meter
Size
Minimum Monthly Charge
Effective Dates
April 1,2000 April 1, 1991
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.
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
Schedule of Water Rates
(Continued)
Delman Heights Users (Customers formerly
served bv Southern California Water Company)
Minimum Monthly Charge
Effective Dates
April 1,2000 April I, 1991
Meter
Size
5/8" * 4.60
3/4" * 5.50
I" * 8.80
1-1/2" * 13.80
2" * 14.90
3" * 26.60
4" * 35.00
6" * 58.50
8" * 84.00
*Effective April I, 2000, Delmann Heights customers will be charged the same as all other City of
San Bernardino Municipal Water Department customers.
Effective July 1,1995, water furnished for municipal use to the City of San Bernardino is exempt
from all water service charges as long as water usage does not exceed 110 percent of the fiscal year
1994/1995 water usage. Water usage in excess of this amount is charged at $0.288 per 100 cubic
foot. Water furnished for use by the City of San Bernardino for landscape assessment districts or
funded from other than the City's general fund is charged at $0.288 per cubic foot. All other rates
remained unchanged.
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA I
Schedule of Sundry Water Statistical Data
I
2000-2001 1999-2000
Production Percent Production Percent I
Pumping Plants in Cubic Feet Production in Cubic Feet Production
Antil Plant 84,590,700 4.20% 108,724,200 5.02% I
Baseline & California Well 16,913,200 0.84% 30,763,900 1.42%
Cajon Boulevard Plant 110,704,500 5.50% 178,164,100 8.23%
Cajon Pass & Vincent Wells 100,532,800 5.00% 73,289,300 3.38% I
Devil Canyon Plant 90,029,660 4.48% 130,228,570 6.01%
EPA Wells - Newmark OU 595,230,100 29.61 % 651,768,900 30.09% I
40th Street Well 3,669,800 0.18% 5,607,000 0.26%
Gilbert Street Well 1,483,900 0.07% 433,200 0.02%
Kenwood Well 96,952,100 4.82% 84,710,800 3.91% I
LeRoy Street Well 30,756,500 1.53% 15,075,100 0.70%
Lynwood Well 62,404,600 3.10% 62,890,300 2.90%
Lytle Creek Plant 85,137,800 4.23% 110,895,200 5.12% I
Mallory Well 16,497,900 0.82% 21,138,300 0.98%
Mill & "D" Streets Well 19,177,500 0.95% 23,771,900 1.1 0% I
Newmark Plant 159,374,100 7.92% 134,181,500 6.20%
19th Street Plant 150,736,400 7.49% 146,759,900 6.78%
Olive & Garner Well 82,548,300 4.10% 89,972,100 4.15% I
Perris Hill Plant 1,637,900 0.08% 0 0.00%
7th Street Well 3,255,400 0.16% 487,300 0.02%
Sierra Way & 16th Street Wells 162,600 0.01 % 480,200 0.02% I
10th & "J" Street Well 126,792,300 6.30% 114,075,400 5.27%
30th & Mountain View Wells 71,341,400 3.55% 77,771,300 3.59% I
27th Street Well 14,487,800 0.72% 193,100 0.01%
Waterman A venue Plant 87,412,200 4.34% 104,445,500 4.82%
Total Water Produced 2,011,829,460 100.00% 2,165,827,070 100.00% I
Purchased water - I
East Valley Water District 105,745,800 89,351,500
Total Water Production 2,117,575,260 100.00% 2,255,178,570 100.00% I
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1998-1999 1997-1998 1996-1997
I Production Percent Production Percent Production Percent
in Cubic Feet Production in Cubic Feet Production in Cubic Feet Production
I 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%
I 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%
I 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%
I 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%
I 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%
I 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%
I 105,386,500 5.05% 45,237,800 2.46% 65,816,600 3.21%
8,395,500 0.40% 12,082,300 0.66% 5,952,100 0.29%
27,558,400 1.32% 121,139,100 6.59% 113,110,300 5.52%
I 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%
I 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%
I 2,086,189,665 100.00% 1,837,437,624 100.00% 2,048,558,343 100.00%
I 83,879,400 112,211,100 75,067,900
I 2,170,069,065 100.00% 1,949,648,724 100.00% 2,123,626,243 100.00%
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1997 I
32,105 I
2,870
3,126 I
1,267
39,368 I
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
WATER UTILITY
Schedule of Service Area and Customers
Number of Active Connections by Classification of User
as of June 30, 1997 through June 30, 2001
User Type 2001 2000 1999 1998
Single family residential 32,991 32,550 32,062 31,692
Multiple family residential 2,792 2,793 2,798 2,830
Commercial/institutional 3,703 3,693 3,336 3,268
Other 1,148 1,081 1,253 1,345
Total all users, active 40,634 40,117 39,449 39,135
Revenue by Class of User
Fiscal Year 2000-2001
User Class
Fiscal Year
Revenue
Single family residential
Multiple family residential
Commercial/industrial
Other and unmetered
$ 8,692,675
2,807,150
3,909,529
835,540
Total all users
$16,244,894
Percentage of
Annual Revenue
53.51%
17.28%
24.07%
5.14%
100%
Largest users: The System had no customer accounting for more than three percent of the
revenues for the fiscal year 2000-2001
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
Schedule of Sewer Rates and Statistics
Classification
Regional
Facilities
and Collection
Treatment System Total monthly
Charge Charge City Charge
$13.25 per month $1.35 per month $14.60
$0.75/HCF* $0.15/HCF* $0.90/HCF*
$ 1.1 O/HCF* $0. I 5/HCF* $1.25/HCF*
$1.20/HCF* $0.15/HCF* $1.35/HCF*
$0.95/HCF* $0. I 5/HCF* $ 1.1 O/HCF*
$1.70/HCF* $O.l5/HCF* $1.85/HCF*
$0.90/HCF* $0.15/HCF* $1.05/HCF*
$0.80/HCF* $O.l5/HCF* $0.95/HCF*
$0.50/HCF* $0.15/HCF* $0.65/HCF*
$826.67/MG $264.22/1,000 LBS BOD
(Discharge flow) $324.28/1,000 LBS SS
Rates effective as ofJune I, 1995:
Residential
Commercial:
Multi-family, mobil home parks
(4 or more units)
Retail, commercial, light industrial
(non-office, bakeries, markets,
theaters, dry cleaners)
Auto repair, car wash
Offices, motels (without restaurants)
Restaurants, hotels (hotel/motels
with restaurants)
Laundromats
Hospitals, convalescent homes
Schools, churches, nursey schools,
daycares
Industry
Rates effective as ofJanuary I, 1994:
Residential
Commercial:
Multi-family, mobil home parks
(4 or more units)
Retail, commercial, light industrial
(non-office, bakeries, markets,
theaters, dry cleaners)
Auto repair, car wash
Offices, motels ( without restaurants)
Restaurants, hotels (hotel/motels
with restaurants)
Laundromats
Hospitals, convalescent homes
Schools, churches, nursey schools,
daycares
Industry
$13.55 per month $1.35 per month $14.90
$0.80/HCF* $O.l5/HCF* $0.95/HCF*
$ 1.1 5/HCF* $0.15/HCF* $1.30/HCF*
$1.25/HCF* $0.15/HCF* $1.40/HCF*
$1.00/HCF* $0. I 5/HCF* $ 1.1 5/HCF*
$1.75/HCF* $O.l5/HCF* $1.90/HCF*
$0.95/HCF* $0.15/HCF* $ 1.1 O/HCF*
$0.85/HCF* $0. I 5/HCF* $1.00/HCF*
$0.55/HCF* $0.15/HCF* $0.70/HCF*
$908.33/MG $264.22/1,000 LBS BOD
(Discharge flow) $324.28/1,000 LBS SS
*HCF = Per 100 cubic feet of water usage.
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$10,203,924
4,363,053
1,360,987
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
Schedule of Sewer Rates and Statistics, (Continued)
June 30, 2001
Residential Nomesidentia1 Total
Number of connections
City of San Bernardino 27,416 4,721 32,137
East Valley Water District 16,266 1,112 17,378
City ofLoma Linda 3,717 556 4,273
47,399 6,389 53,788
Annual billings
City of San Bernardino*
East V alley Water District
City ofLoma Linda
$5,358,697
2,668,842
564,432
$8,591,971
$4,845,227
1,694,211
796,555
$7,335,993
$15,927,964
Average monthly billings
City of San Bernardino
East Valley Water District
City of Loma Linda
$446,558
222,404
47,036
$715,998
$403,769
141,184
66,380
$611,333
$850,327
363,588
113,416
$1,327,331
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Residential Nonresidential Total Residential Nonresidential Total
I 32,247 3,579 35,826 32,553 3,718 36,271
16,764 1,111 17,875 16,613 1,176 17,789
I 3,442 1,020 4,462 3,444 818 4,262
I 52,453 5,710 58,163 52,610 5,712 58,322
I $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
I 548,000 779,152 1,327,152 539,410 841,448 1,380,858
I $8,342,345 7,587,454 15,929,799 $8,297,208 7,019,353 15,316,561
I $434,244 432,138 866,382 $ 427,228 390,986 818,214
I 215,285 135,221 350,506 219,255 123,840 343,095
45,667 64,929 110,596 44,951 70,121 115,072
I $695,196 632,288 1,327,484 $ 691,434 584,947 1,276,381
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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 Year, 200 I, the 1992 Certificates of Participation were retired by an early can and payoff.
The total principal amount of $34,805,000 was paid off February I, 2001.
An early can 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 usedfor the Primary Hydraulic Reliability Project, remodel of the administration laboratory
building, and design of 3A secondary treatment.
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF
I SAN BERNARDINO, CALIFORNIA
Schedule - 1998 Refunding Sewer Revenue Certificates of Participation
I San Bernardino Public Safety Authority
June 30, 2001
I Principal
Principal Unamortized Payments Interest
I Date Due Payments Discounts (Net) Interest Total Rate
8-1-2001 848,501 848,501 3.95%
I 2-1-2002 $ 1,505,000 9,403 1,495,597 848,501 2,344,098 3.95%
8-1-2002 818,777 818,777 4.05%
2-1-2003 1,575,000 9,013 1,565,987 818,777 2,384,764 4.05%
I 8-1-2003 786,884 786,884 4.10%
2-1-2004 1,650,000 8,604 1,641,396 786,884 2,428,280 4.10%
8-1-2004 753,059 753,059 4.15%
I 2-1-2005 1,730,000 8,176 1,721,824 753,059 2,474,883 4.15%
8-1-2005 717,161 717,161 4.25%
I 2-1-2006 1,815,000 7,727 1,807,273 717,161 2,524,434 4.25%
8-1-2006 678,593 678,593 4.30%
2-1-2007 1,910,000 7,257 1,902,743 678,593 2,581,336 4.30%
I 8-1-2007 637,528 637,528 5.00%
2-1-2008 2,010,000 6,760 2,003,240 637,528 2,640,768 5.00%
8-1-2008 587,278 587,278 4.50%
II 2-1-2009 2,125,000 6,238 2,118,762 587,278 2,706,040 4.50%
8-1-2009 539,465 539,465 4.70%
, 2-1-2010 2,240,000 5,687 2,234,313 539,465 2,773,778 4.70%
i I 8-1-2010 486,825 486,825 5.00%
2-1-2011 2,365,000 5,105 2,359,895 486,825 2,846,720 5.00%
I 8-1-2011 427,700 427,700 4.75%
2-1-2012 2,510,000 4,492 2,505,508 427,700 2,933,208 4.75%
8-1-2012 368,088 368,088 4.85%
I 2-1-2013 2,650,000 3,840 2,646,160 368,088 3,014,248 4.85%
8-1-2013 303,825 303,825 4.75%
2-1-2014 2,805,000 3,152 2,801,848 303,825 3,105,673 4.75%
I 8-1-2014 237,206 237,206 5.25%
2-1-2015 2,965,000 2,424 2,962,576 237,206 3,199,782 5.25%
I 8-1-2015 159,375 159,375 5.00%
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
Schedule - 1998 Refunding Sewer Revenue Certificates of Participation
San Bernardino Public Safety Authority
June 30, 2001
(Continued)
Principal
Principal Unamortized Payments Interest
Date Due Payments Discounts (Net) Interest Total Rate
2-1-2016 $ 3,155,000 1,655 3,153,345 159,375 3,312,720 5.00%
8-1-2016 80,500 80,500 5.00%
2-1-2017 3,220,000 836 3,219,164 80,500 3,299,664 5.00%
$ 36,230,000 90,369 36,139,631 16,861,530 53,001,161
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MUNICIPAL WATER DEPARTMENT OF THE CITY 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 Charges (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.
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA I
Bond Schedule - General Obligation Waterworks Bonds, Series C
June 30, 2001 I
Interest I
Date Due Payments Interest Total Rate
9-1-2001 $ 4,069 4,069 7.75% I
3-1-2002 5,000 4,069 9,069 7.75%
9-1-2002 3,875 3,875 7.75% I
3-1-2003 5,000 3,875 8,875 7.75%
9-1-2003 3,681 3,681 7.75% I
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% I
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% I
3-1-2007 10,000 2,906 12,906 7.75%
9-1-2007 2,519 2,519 7.75% I
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% I
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% I
3-1-2011 10,000 1,356 11,356 7.75%
9-1-2011 969 969 7.75% I
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% I
$ 105,000 61,224 166,224
Bonds related to water system improvements for South San Bernardino Water District, which was I
acquired by the Department in 1991. I
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WATER UTILITY
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Balance Sheets
June 30, 200 I and 2000
2001
Increase
lOecrease)
2000
Assets
Assets:
Current assets:
Cash and investments
Accounts receivable, net
Interfund receivable
Related parties receivable
Inventory
Prepaid expenses
$ 7,983,384 7,004,598 978,786
3,829,908 3,497,526 332,382
154,734 121,373 33,361
137,505 171,653 (34,148)
1,388,738 1,336,542 52,196
147,441 153,438 (5,997)
13,641,710 12,285,130 1,356,580
Total current assets
Restricted assets:
Cash and investments:
Restricted for debt service
Restricted for capital-related fees
Restricted for consumer deposits
Interest receivable
566,963 669,910 (102,947)
64,923 302,853 (237,930)
1,609,118 1,378,108 231,010
3,180 3,180
2,244,184 2,354,051 (109,867)
95,602,210 94,522,102 1,080,108
(39,982,786) (37,861,139) (2,121,647)
9,996,203 8,994,785 1,001,418
65,615,627 65,655,748 (40,121)
77,702 106,569 (28,867)
77,702 106,569 (28,867)
$ 81,579,223 80,401,498 1,177,725
(Continued)
Total restricted assets
Property, plant, equipment, and water rights:
Property, plant, equipment, and water rights
Less accumulated depreciation and
amortization
Construction in progress
Total property, plant, equipment, and
water rights, net
Other assets:
Debt issue costs, net
Total other assets
Total assets
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA I
Water Utility I
Balance Sheets
(Continued) I
Increase I
2001 2000 (Decrease )
Liabilities and eauity I
Liabilities:
Current liabilities: I
Accounts payable $ 1,591,261 1,898,044 (306,783)
Related parties payable 599,350 642,541 (43,191)
Accrued expenses 19,936 9,318 10,618
Accrued compensation 1,529,199 1,437,539 91,660 I
Other deposits 435,038 351,692 83,346
Total current liabilities 4,174,784 4,339,134 (164,350) I
Current liabilities payable from restricted assets:
Current portion of bonds payable 970,329 1,020,000 (49,671) I
Accrued interest payable 60,929 73,667 (12,738)
Consumer deposits 1,584,586 1,404,577 180,009
Total current liabilities payable from I
restricted assets 2,615,844 2,498,244 117,600
Long-term debt: I
Bonds payable 4,618,810 5,484,990 (866,180)
Total long-term debt 4,618,810 5,484,990 (866,180) I
Total liabilities 11,409,438 12,322,368 (912,930) I
Fund equity:
Contributed capital 49,461,465 49,461,465 I
Retained earnings 20,708,320 18,617,665 2,090,655
Total fund equity 70.169.785 68.079.130 2,090,655 I
Total liabilities and fund equity $ 81,579,223 80,401,498 1,177,725
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Statements of Revenues and Expenses
For the years ended June 30, 2001 and 2000
Operating revenues:
Charges for services
Other operating revenues
Increase
2001 2000 (Decrease )
$ 16,464,346 15,655,001 809,345
1,568,256 1,553,408 14,848
18,032,602 17,208,409 824,193
Total operating revenues
Operating expenses:
Administration and customer service
Water Utility Administration
Plant operations
Maintenance
Disttibution
Engineering
General, administration, and overhead
Depreciation and amortization
4,329,918 4,482,098 (152,180)
191,134 127,972 63,162
4,394,942 3,774,684 620,258
1,149,535 1,307,745 (158,210)
2,720,113 2,868,944 (148,831)
1,104,134 1,033,141 70,993
2,727,907 2,806,885 (78,978)
2,302,270 2,405,737 (103,467)
18,919,953 18,807,206 112,747
(887,351) (1,598,797) 711,446
855,620 398,836 456,784
74,014 78,721 (4,707)
561,320 384,348 176,972
(76,465) 327,689 (404,154)
(370,234) (437,335) 67,101
(28,866) (32,575) 3,709
(11,647) 37,487 (49,134)
1,003,742 757,171 246,571
$ 116,391 (841,626) 958,017
Total operating expenses
Operating income (loss)
Non-operating revenues (expenses):
Investment income
Rental income
Noncapital grant funds
Net gain (loss) on disposition of assets
Interest expense and fiscal cbarges
Amortization of issuance costs
Other
Total non-operating revenues (expenses)
Net profit (loss)
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Statement of Changes in Fund Equity
For the year ended June 30, 2001
Contributed Retained
Capital Earnings Total
Balance at beginning of year $ 49,461,465 18,617,665 68,079,130
Adjustments
49,461,465 18,617,665 68,079,130
Net income (loss) 116,391 116,391
Capital Contributions 1,974,264 1,974,264
Balance at end of year $ 49,461,465 20,708,320 70,169,785
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Statement of Changes in Fund Equity
For the year ended June 30, 2000
Contributed
Capital
Retained
Earnings
Balance at beginning of year
$ 48,165,082
19,459,291
Adjustment of prior year grants
receivable
Contributions in aid of construction
Impact fees for service acquisition
Grants from other agencies
for capital improvement
185,736
236,124
752,150
122,373
49,461,465
19,459,291
Net income (loss)
(841,626)
Balance at end of year
$ 49,461,465
18,617,665
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Total I
67,624,373
185,736 I
236,124
752,150 I
122,373
68,920,756 I
(841,626)
68,079,130 I
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Statements of Cash Flows
For the years ended June 30, 2001 and 2000
Cash flows from operating activities:
Cash received from customers
Rental income
Nonoperating ntiscel1aneous revenue received
Cash paid to suppliers of goods & services
Cash paid to employees for services
2001 2000
$ 16,737,465 17,181,433
74,014 78,721
(11,647) 37,487
(9,241,329) (8,281,337)
(4,494,416) (7,592,983 )
3,064,087 1,423,321
561,320 384,348
561,320 384,348
Net cash provided by (used for) operating activities
Cash flows from noncapital financing activities:
Grant proceeds received
Net cash provided by (used for) noncapital
financing 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 on capital-related debt
Interest paid on capital-related debt
(76,465) 327,689
811 ,934 988,274
1,162,330 122,373
(4,211,085) (1,997,781)
(915,851) (857,510)
(382,971) (446,558)
(3,612,108) (1,863,513)
855,620 398,743
855,620 398,743
868,919 342,899
9,355,469 9,012,570
$ 10,224,388 9,355,469
Net cash provided by (used for) capital and related
fmancing activities
Cash flows from investing activities:
Interest received
Net cash provided by (used for) investing activities
Net increase (decrease) in cash
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
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(3,180)
(3,180)
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Statements of Cash Flows
(Continued)
2001 2000
Reconciliation of cash and cash equivalents to amounts
reported on the balance sheet:
Reported on the balance sheet:
Cash and investments
Restricted assets
Less restricted assets not meeting the defInition of
cash equivalents:
Interest and other receivables
$ 7,983,384
2,244,184
7,004,598
2,354,051
Cash and cash equivalents at end of year
$ 10,224,388
9,355,469
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss)
Depreciation 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 related parties payable
Change in accrued expenses
Change in accrued compensation
Change in consumer deposits
Change in other deposits
Change in other assets
$ (887,351) (1,598,797)
2,302,270 2,405,737
(11,647) 37,487
74,014 78,721
(486,787) (365,922)
(33,361) 5,666
188,553 172,108
(52,196) 3,097
5,997 (38,188)
(418,360) (381,407)
68,386 132,174
10,618 9,033
91,660 (134,207)
1,232,894 199,360
(969,539) (9,091)
1,948,936 907,550
$ 3,064,087 1,423,321
Net cash provided by (used for) operating activities
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
I Water Utility
Schedules of Operating Expenses
For the years ended June 30, 2001 and 2000
I 2001 2000
Administration and customer service:
I Board of Water Commissioners $ 14,680 13,181
Administration 536,435 510,525
Safety and loss control 220,717 213,015
Personnel 126,128 134,633
I Finance and accounting 620,200 606,899
Data processing 355,882 353,736
Purchasing and stores 436,802 433,944
Administration services 1,870 142,040
I Customer services 772,629 702,164
Billing and posting 390,736 440,082
Cashiering 194,295 242,727
I Meter reading 367,655 415,566
Field services 291,889 273,586
4.329.918 4.482.098
I Water Utility Administration 191.134 127.972
Plant Operations:
Operations administration 169,014 202,499
I Production and pumping 4,075,476 3,425,966
Geothermal 150,452 146,219
4.394.942 3.774.684
I Maintenance:
Plant and facilities maintenance 506,688 962,142
Specialized construction 383,667 345,603
I Electrical repair 259,180
1,149,535 1,307,745
I Distribution:
Administration 411,998 425,719
Service and repair 1,488,394 1,659,819
Meter shop 452,806 408,535
I Garage - vehicle maintenance 366,915 374,871
2,720,113 2,868,944
I Engineering:
Engineering 701,298 700,706
Water quality and bacldlow connection 402,836 332,435
1,104,134 1,033,141
I General, administration, and overhead 2,727 ,907 2,806,885
I Total operating expenses before depreciation
and amortization 16,617,683 16,401,469
Depreciation and amortization 2,302,270 2,405,737
I Total operating expenses $ 18,919,953 18,807,206
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I
MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Board of Water COnmllssioners Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Productive salaries $ 900 900
Frioge benefits 11,961 4,183
12,861 5,083
Maintenance and operation:
Travel, meals, and convention 1,777 7,520
Prioted materials 42 578
1,819 8,098
Total $ 14,680 13,181
64
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I
MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Administration Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Productive salaries $ 343,405 319,367
Nonproductive salaries 69,642 68,283
Fringe benefits 30,935 55,588
443,982 443,238
Maintenance and operation:
Travel, meals, and convention 9,373 12,235
Employee reimbursements 81 I
Memberships and dues 22,824 20,315
Safety Clothing and supplies 49
Miscellaneous employee supplies 334 166
Books and publications 1,183 81
Printed materials 25,368 733
Materials and supplies 8
Office equipment maintenance 214 573
Postage and delivery charges 760 504
Subscriptions 847 883
Telephone 6,247 6,662
Contract services 25,014 24,944
Legal services 3
Minor office equipment purchases 156 182
92,453 67,287
Total $ 536,435 510,525
65
MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Safety and Loss Control Expenses
For the years ended June 30, 2001 and 2000
66
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I
MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Personnel Expenses
For the years ended June 30, 2001 and 2000
Total
2001 2000
$ 52,510 69,255
11,430 8,956
10,041 15,206
73,981 93,417
1,128 1,554
657 625
573
377
1,030 1,090
227 36
50
366 152
292
60
1,113 1,332
495
44,258 35,410
1,940
453 145
52,147 41,216
$ 126,128 134,633
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
Maintenance and operation:
Travel, meals, and convention
Training materials and fees
Employee reimbursements
Safety clothing and supplies
Employee physical exams and X-rays
Miscellaneous employee supplies
Membership and dues expense
Printed materials
Books and publications
Office equipment maintenance
Telephone
Software
Contract services
Minor office equipment
Advertising
67
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Finance and Accounting Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Productive salaries $ 356,494 333,341
Nonproductive salaries 75,533 81,954
Fringe benefits 49,994 65,408
482,021 480,703
Maintenance and operation:
Travel, meals, and convention 1,975 1,754
Training materials and fees 4,879 900
Employee reimbursements 1,340 74
Memberships and dues 467 305
Printed materials 2,335 2,116
Office equipment maintenance 642 2,181
Subscriptions 267
Postage and delivery charges 24
Telephone 6,134 6,866
Contract services 116,899 11 0,688
Safety clothing and supplies 49
Minor office equipment purchases 379 1,288
Office furniture 1,235
General office supplies 1,578
138,179 126,196
Total $ 620,200 606,899
68
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MUNICIPAL W ATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Data Processing Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Maintenance and operation:
Telephone $ 11,195 11 ,964
Contract services 188,400 205,000
Materials and supplies 1,946
Equipment maintenance 156,287 134,826
Total $ 355,882 353,736
69
MUNlCIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Purchasing and Stores Expenses
For the years ended June 30, 2001 and 2000
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
2001 2000
$ 297,219 280,893
62,317 66,354
40,538 61,152
400,074 408,399
46 877
25
627 9
530 427
1,551 1,425
5,263 1,516
526
777 2,665
2,428 2,483
6,407 7,252
1,694 2,819
1,677 1,873
18
3,039 122
1,064
603
8,753 2,890
1,134 76
167 585
925
36,728 25,545
$ 436,802 433,944
Maintenance and operation:
Travel, meals, and convention
Employee Reimbursements
Safety clothing and supplies
Memberships and dues
Uniform rental and cleaning
Printed materials
Books and publications
Office equipment maintenance
Advertising
Telephone
Materials and supplies
Small tools and equipment
Equipment maintenance
Minor office equipment purchases
Computer Equipment
Office furniture
Freight charges
Subscriptions
Contract services
General Office supplies
Total
70
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I
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Administrative Services Expenses
For the years ended June 30, 2001 and 2000
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71
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Customer Services Expenses
For the years ended June 30, 2001 and 2000
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2001 2000
Personnel:
Productive salaries $ 538,937 466,803
Nonproductive salaries 97,459 85,939
Fringe benefits 76,883 105,449
713,279 658,191
Maintenance and operation:
Travel, meals, and conventions 556
Employee reimbursements 137
Safety clothing and supplies 123 4,377
Memberships and dues 225 26
Printed materials 2,818 9,491
Books and publications 47
Office equipment maintenance 1,163 2,635
General office snpplies 3,518 82
Telephone 29,731 24,899
Contract services 19,821
Materials and supplies 78
Minor office equipment purchases 1,348 2,248
59,350 43,973
Total $ 772,629 702,164
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72
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Billing and Posting Expenses
For the years ended June 30, 2001 and 2000
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Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
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I
Maintenance and operation:
Travel, meals, and conventions
General office maintenance
Printed materials
Office equipment maintenance
Postage and delivery charges
Telephone
Minor office equipment purchases
Materials and supplies
General Office supplies
Total
73
MUNIClP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Cashiering Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Productive salaries $ 147,836 180,738
Nonproductive salaries 23,074 25,012
Fringe benefits 17,456 25,333
188,366 231,083
Maintenance and operation:
Employee reimbursements 33 182
General office supplies 1,030 123
Printed materials 160 15
Office equipment maintenance 2,770 9,022
Telephone 1,117 1,402
Contract services 174 384
Minor office equipment purchases 645 516
5,929 11,644
Total $ 194,295 242,727
74
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Meter Reading Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Productive salaries $ 274,608 281,807
Nonproductive salaries 50,174 68,631
Fringe benefits 33,232 56,102
358,014 406,540
Maintenance and operation:
Employee reimbursements 6,880 6,965
Safety clothing and supplies 105 11
Uniform rental and cleaning 1,464 1,330
General office supplies 594 225
Postage and delivery charges 73 66
Telephone 398 394
Materials and supplies 51 35
Small tools and equipment 76
9,641 9,026
Total $ 367,655 415,566
75
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules ofField Services Expenses
For the years ended June 30, 200 I and 2000
2001 2000
Personnel:
Productive salaries $ 187,177 183,391
Nonproductive salaries 58,069 39,406
Fringe benefits 27,402 38,739
272,648 261,536
Maintenance and operation:
Safety clothing and supplies 71 40
Uniform rental and cleaning 947 877
Membersip dues and expenses 30
Printed materials 21
Postage and delivery charges 40
Telephone 3,289 2,939
Contract services 170
Materials and supplies 14,072 7,249
Small tools and equipment 366 397
Equipment maintenance 466 317
19,241 12,050
Total $ 291,889 273,586
76
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I
MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Water Utility Administration
For the years ended June 30, 200 I and 2000
I
I
2001 2000
Personnel:
Productive salaries $ 122,267 78,286
Nonproductive salaries 40,840 14,965
Fringe benefits 12,730 11,539
175,837 104,790
Maintenance and operation:
Travel, meals, and convention 1,234 1,544
Training materials and fees 2,898 378
Employee Reimbursements 199
Memberships and dues 55 80
Postage and delivery 730
General office supplies 121
Office equipment maintenance 182
Telephone 2,690 2,539
Minor office equipment 2,101
Sooftware 556
Office furniture 4,615
Materials and supplies 219
Contract services 18,338
15,297 23,182
Total $ 191,134 127,972
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77
MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Operations Administration Expenses
For the years ended June 30, 2001 and 2000
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
2001 2000
$ 107,351 105,867
21,297 22,731
10,791 18,834
139,439 147,432
365
450
491 313
167 3
243 125
239 234
2,726 3,527
145 54
1,042 269
419 542
4,228 4,319
17,937 43,609
246
1,070
61
566 942
153
56 101
29,575 55,067
$ 169,014 202,499
Maintenance and operation:
Travel, meals, and convention
Training materials and fees
Employee reimbursements
Safety clothing and supplies
Memberships and dues
Uniform rental and cleaning
General office supplies
Printed materials
Office equipment maintenance
Postage and delivery charges
Telephone
Permits and fees
Contract Services
Materials and supplies
Small tools and equipment
Minor office equipment purchases
Radio maintenance
Books and publications
Total
78
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Production and Pumping Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Productive salaries $ 451,104 451,630
Nonproductive salaries 84,892 63,785
Fringe benefits 71,365 96,848
607,361 612,263
Maintenance and operation:
Training materials and fees 3,023
Employee reimbursements 1,130 480
Safety clothing and supplies 1,038 1,347
Memberships and dues 210 431
Uniform rental and cleaning 2,519 2,418
Telephone 2,368 2,873
Contract services 58 6,888
Pennits and fees 10,683 2,145
Hazard waste disposal 159
Utilities - natural gas 496 719
Utilities - electricity 2,575,958 2,406,437
Materials and supplies 32,871 25,727
Small tools and equipment 2,625 4,381
Equipment maintenance 22,101 16,282
Radio maintenance 2,830 178
Minor office equipment purchases 766 176
Chlorine 50,942 43,159
Polymers 37,832 21,416
Granular activated carbon 202,055 245,368
Extractions and purchases 477,570 12,088
Water stock assessments 37,630 21,190
Capital outlay 3,251
3,468,115 2,813,703
Total $ 4,075,476 3,425,966
79
Total
2001 2000
$ 32,376 37,407
7,257 7,925
3,896 7,859
43,529 53,191
133 36
38 48
50 45
400 400
97,880 85,345
7,040 5,639
448
180
14 609
13
167 279
373 414
200 200
106,923 93,028
$ 150,452 146,219
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MUNIClP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Geothennal Expenses
For the years ended June 30, 2001 and 2000
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
Maintenance and operation:
Employee reimbursements
Safety clothing and supplies
Memberships and dues
Permits and fees
Utilities - electricity
Materials and supplies
Equipment maintenance
Outside laboratory testing
Small tools and equipment
General office supplies
Uniform rental and cleaning
Telephone
Contract services
80
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Plant and Facilities Maintenance Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Productivesahuies $ 253,207 256,876
Nonproductive salaries 51,392 35,995
Fringe benefits 43,258 59,893
347,857 352,764
Maintenance and operation:
Employee reimbursements 243 187
Safety clothing and supplies 1,151 1,519
Uniform rental and cleaning 1,820 1,813
Telephone 1,803 1,468
Contract services 35,520 319,976
Office furniture 525
Permits and fees 1,400
Materials and supplies 70,422 139,730
Small tools and equipment 6,254 4,060
Eqnipment maintenance 2,770 2,839
Equipment rental 596
Vandalism repairs 1,129 1,595
Electrical services 15,956 121,382
Dump fees 1,745 1,860
Chlorine 7 14
Landscape services 17,490 12,935
158,831 609,378
Total $ 506,688 962,142
81
2001 2000
$ 248,511 168,502
51,926 71,694
40,139 54,979
340,576 295,175
67 118
1,328 616
36
1,150 1,434
1,229 1,396
1,611 7,786
28,504 36,099
5,268 2,936
2,920
20
974
7
20
43,091 50,428
$ 383,667 345,603
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Specialized Construction Expenses
For the years ended June 30, 2001 and 2000
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
Maintenance and operation:
Employee reimbursements
Safety clothing and supplies
Memberships and dues
Uniform rental and cleaning
Telephone
Contract services
Materials and supplies
Small tools and equipment
Equipment rental
Equipment maintenance
Radio maintenance
Chlorine
Dump fees
Total
82
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MUNICIP AL WATER DEPARTMENT OF THE CIlY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Electrical Repair Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Productive salaries $ 98,287
Nonproductive salaries 5,367
Fringe benefits 3,079
106,733
Maintenance and operation:
Safety clothing and supplies 21
Contract services 27,555
Materials and supplies 124,836
Small tools and equipment 31
Electrical services 4
152,447
Total $ 259,180
83
2001 2000
$ 176,810 176,886
16,557 40,502
23,686 34,702
217,053 252,090
219 116
160 8
131 45
3,293 3,435
1,896 1,449
297 1,149
505
674 1,225
6,580 7,292
11,728 5,694
42,472 58,601
53,177 52,409
7,466 4,832
37,892 32,376
1,236 2,448
13
99 713
137 1,167
128
323
26,953
71
165
194,945 173,629
$ 411,998 425,719
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MUNlCIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Distribution Administration Expenses
For the years ended June 30, 2001 and 2000
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
Maintenance and operation:
Employee reimbursements
Safety clothing and supplies
Memberships and dues
Uniform rental and cleaning
General office supplies
Printed materials
Office equipment maintenance
Postage and delivery charges
Telephone
Janitorial services
Contract services
Security services - yards
Utilities - natural gas
Utilities - electricity
Materials and supplies
Small tools and equipment
Equipment maintenance
Minor office equipment purchases
Computer Equipment
Office Furniture
Facility maintenance
Freight charges
Radio maintenance
Total
84
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MUNlCIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Service and Repair Expenses
For the years ended June 30, 2001 and 2000
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
2001 2000
$ 835,188 765,968
177,959 176,562
128,451 191,108
1,141,598 1,133,638
688 123
3,905 7,653
30 187
615 49
4,732 4,795
698 433
239
3,500 3,219
71,397 99,924
10,397 12,922
235,186 385,521
11,674 11 ,000
480
905
170
339
16
2,180
346,796 526,181
$ 1,488,394 1,659,819
Maintenance and operation:
Employee reimbursements
Safety clothing and supplies
Memberships and dues
General office supplies
Uniform rental and cleaning
Printed materials
Office equipment and maintenance
Telephone
Contract services
Dump fees
Materials and supplies
Small tools and equipment
Eqnipment rental
Eqnipment maintenance
Facility maintenance
Radio maintenance
Chlorine
Capital outlay
Total
85
MUNICIPAL WATER DEP AR1MENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Meter Shop Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Productive salaries $ 225,785 223,915
Nonproductive salaries 63,774 65,576
Fringe benefits 42,389 55,482
331,948 344,973
Maintenance and operation:
Employee reimbursements 30
Safety clothing and supplies 602 1,053
Memberships and dues 80 25
Uniform rental and cleaning 1,400 1,611
General office supplies 111 184
Printed material 270 378
Telephone 1,720 1,845
Contract services 2,831 4,611
Materials and supplies 110,733 48,686
Small tools and equipment 3,111 4,411
Equipment maintenance 728
120,858 63,562
Total $ 452,806 408,535
86
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Garage - Vehicle Maintenance Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Productive salaries $ 112,524 109,347
Nonproductive salaries 14,685 18,756
Fringe benefits 20,820 27,867
148,029 155,970
Maintenance and operation:
Safety clothing and supplies 523 262
Uniform rental and cleaning 1,397 1,546
General office supplies 376 17
Printed materials 29
Telephone 1,561 1,607
Contract services 34,865 41,286
Pennits and fees 2,350 1,913
Materials and supplies 56,277 58,630
Small tools and equipment 2,736 3,278
Fuels and lubricants - vehicle and equipment 113,757 107,286
Office equipment maintenance 1,616 1,616
Equipment maintenance 2,302 1,431
Radio maintenance 1.126
218,886 218,901
Total $ 366,915 374,871
"
87
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Engineering Expenses
For the years ended JW1e 30, 2001 and 2000
2001 2000
Personnel:
Productive salaries $ 413 ,950 412,071
Nonproductive salaries 68,476 83,237
Fringe benefits 45,174 72,801
527,600 568,109
Maintenance and operation:
Travel, meals, and convention 1,575 1,871
Training materials and fees 1,409 465
Employee reimbursements 1,435 2,461
Safety clothing and supplies 296 198
Memberships and dues 1,183 210
Uniform rental and cleaning 678 578
Books and publications 3,431 170
Printed materials 5,734 2,627
Office equipment maintenance 4,119 5,973
Telephone 17,887 17,108
Contract services 83,453 65,334
Materials and supplies 41,388 32,937
Small tools and equipment 951 445
Radio maintenance III 178
Facility maintenance 546
Minor office equipment purchases 796 1,874
Computer equipment and software 8,139
Subscriptions 567 168
173,698 132,597
Total $ 701,298 700,706
88
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of Water Quality and Backflow Connection Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Productive salaries $ 130,466 112,770
Nonproductive salaries 23,357 18,421
Fringe benefits 24,647 29,054
178,470 160,245
Maintenance and operation:
Training materials and fees 45 1,415
Employee reimbursements 253 50
Safety clothing and supplies 118 368
Memberships and dues 1,080
Uniform rental and cleaning 641 556
Printed materials 204
Subscriptions 35
Office equipment maintenance 239
Telephone 2,772 2,255
Office furniture 1,905
Contract services 1,119 3,820
Small tools and equipment 144 1,045
Laboratory sampling and testing 209,447 153,443
Materials and supplies 7,444 8,155
Chlorine 3
224,366 172,190
Total $ 402,836 332,435
89
MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Water Utility
Schedules of General, Administration, and Overhead Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Disability insurance $ 83,198 64,671
Unemployment benefits (111) 2,817
Retiree medical insurance 41,343 37,230
Administrative cost - group medical 3,238 5,267
127,668 109,985
Maintenance and operation:
Training materials and fees 5
Miscellaneous employee supplies 8,866 12,026
Books and publications 312 189
General office supplies 28,048 51,370
Printed materials 1,541 4,712
Contract services 33,190 62,126
Office equipment maintenance 2,120
City hall office rent 161,918 161,918
General office maintenance 530
Office furniture 2,305
Uncollectible chargeoffs 175,067
Liability insurance 170,736 171,865
Property insurance 70,295 39,103
Workers' compensation 353,918 229,684
Noninsurable accidents and losses 13,588 22,923
Miscellaneous insurance and bonds 2,502 2,702
Materials and supplies 41
Property taxes 6,221 6,288
Advertising 872 4,402
Legal services 2.042.989 2.189.545
3,075,059 2,958,858
Overhead applied property, plant, and equipment (474,820) (261,958)
Total $ 2,727,907 2,806,885
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SEWER UTILITY
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Balance Sheets
June 30,2001 and 2000
2001
Increase
(Decrease)
2000
Assets
Assets:
Current assets:
Cash and investments
Accounts receivable, net
Interfund receivable
Related parties receivable
Prepaid expenses
$ 17,058,862 16,060,360 998,502
2,588,315 2,539,681 48,634
15,791 (15,791)
297,660 386,048 (88,388)
179,689 171,234 8,455
20,124,526 19,173,114 951,412
Total current assets
Restricted assets:
Cash and investments:
Restricted for debt service
Restricted for capital-related rees
Interest receivable
3,507,596 38,163,001 (34,655,405)
3,791,371 3,415,450 375,921
80,861 801,988 (721,127)
7,379,828 42,380,439 (35,000,611)
170,733,824 166,776,808 3,957,016
(42,983,961) (39,163,938) (3,820,023)
2,070,430 5,857,877 (3,787,447)
129,820,293 133,470,747 (3,650,454)
530,290 579,493 (49,203)
656,448 656,448
1,186,738 579,493 607,245
$ 158,511,385 195,603,793 (37,092,408)
(Continued)
Total restricted assets
Property, plant, equipment, and water rights:
Property, plant, equipment, and water rights
Less accumulated depreciation and
amortization
Construction in progress
Total property, plant, equipment, and
water rights, net
Other assets:
Debt issue costs, net
Deferred call premium
Total other assets
Total assets
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA I
Sewer Utility I
Balance Sheets
(Continued) I
Increase I
2001 2000 (Decrease ) I
Liabilities and eauitv
Liabilities:
Current liabilities: I
Current portion of notes payable $ 1,564,785 1,512,500 52,285
Accounts payable 1,025,656 841,607 184,049
Interfund payable 52,324 19,028 33,296 I
Related parties payable 64,958 391,662 (326,704)
Accrued expenses 17,739 1,792 15,947
Accrued compensation 619,962 606,025 13,937 I
Other deposits 18,414 25,000 (6,586)
Total current liabilities 3,363,838 3,397,614 (33,776)
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Current liabilities payable from restricted assets:
Current portion of certificates of participation 1,495,597 1,105,000 390,597
Accrued interest payable 869,395 1,798,279 (928,884) I
Total current liabilities payable from
restricted assets 2,364,992 2,903,279 (538,287) I
Long-term debt:
Notes payable 25,666,805 27,262, III (1,595,306) I
Certificates of participation 34,386,553 69,556,228 (35,169,675)
Total long-term debt 60,053,358 96,818,339 (36,764,981) I
Total liabilities 65,782,188 103,119,232 (37,337,044)
Fund equity: I
Contributed capital 63,553,696 63,553,696
Retained earnings 29,175,501 28,930,865 244,636 I
Total fund equity 92.729.197 92.484.561 244,636
Total liabilities and fund equity $ 158,511,385 195,603,793 (37,092,408) I
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Statements of Revenues and Expenses
For the years ended June 30, 2001 and 2000
Operating revenues:
Charges for services
Other operating revenues
Increase
2001 2000 (Decrease )
$ 16,879,970 16,363,671 516,299
247,365 298,265 (50,900)
17,127,335 16,661,936 465,399
Total operating revenues
Operating expenses:
Engineering, operations, and distribution
administration
Plant operations
Maintenance
Environmental control
General, administration, and overhead
Depreciation and amortization
1,164,686 1,129,724 34,962
6,387,320 6,247,584 139,736
2,037,606 2,103,495 (65,889)
276,455 346,707 (70,252)
1,147,397 630,684 516,713
3,853,726 4,241,692 (387,966)
14,867,190 14,699,886 167,304
2,260,145 1,962,050 298,095
2,997,651 2,919,171 78,480
30,231 30,154 77
69,457 (73,916) 143,373
(4,008,304) (5,021,953) 1,013,649
(49,204) (49,204)
(106,085) 3,526 (109,611)
(1,066,254) (2,192,222) 1,125,968
$ 1,193,891 (230,172) 1,424,063
Total operating expenses
Operating income (loss)
Non-operating revenues (expenses):
Investment income
Rental income
Net gain (loss) on disposition of assets
Interest expense and fiscal charges
Amortization of issuance costs
Other
Total non-operating revenues (expenses)
Net profit (loss)
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Statement of Changes in Fund Equity
For the year ended June 30, 2001
Contributed Retained
Capital Earnings Total
Balance at beginning of year $ 63,553,696 28,930,865 92,484,561
Prior period adjustment (2,614,442) (2,614,442)
63,553,696 26,316,423 89,870,119
Net income (loss) 1,193,891 1,193,891
1,665,187 1,665,187
Balance at end of year $ 63,553,696 29,175,501 92,729,197
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MUNICIPAL WATER DEPARTMENT OF TIlE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Statement of Changes in Fund Equity
For the year ended June 30, 2000
Contributed Retained
Capital Earnings Total
Balance at beginning of year $ 62,327,758 29,161,037 91,488,795
Adjustment of prior year grants
receivable 77,685 77,685
Impact fees for capacity rights - net of
repurchase, refunds, and write-offs 1,060,840 1,060,840
East trunk line fees 87,413 87,413
63,553,696 29,161,037 92,714,733
Net income (loss) (230,172) (230,172)
Balance at end of year $ 63,553,696 28,930,865 92,484,561
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Statements of Cash Flows
For the years ended June 30, 200 I 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
2001 2000
$ 17,174,425 16,936,750
30,231 30,154
(106,085) 3,526
(4,501,571) (6,174,978)
(7,538,070) (4,006,986)
5,058,930 6,788,466
Net cash provided by (used for) operating activities
Cash flows from capital and related financing activities:
Charges to property owners for capital purposes
Cash paid to acquire fixed assets
Principal paid on capital-related debt
Interest paid on capital-related debt
1,665,187 1,148,253
(1,808,142) (2,719,836)
(36,322,098) (2,464,649)
(5,593,637) (5,070,263)
(42,058,690) (9,106,495)
34,406,630
3,718,778 2,931,016
38,125,408 2,931,016
1,125,648 612,987
19,758,431 19,145,444
$ 20,884,079 19,758,431
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 equivalents at beginning of year
Cash and cash equivalents at end of year
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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
$ 17,058,862
7,379,828
16,060,360
42,380,439
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MUNICIPAL WATER DEPARlMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Statements of Cash Flows
(Continued)
2001 2000
(3,473,750)
(80,861)
(34,283,817)
(3,596,563)
(801,988)
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Cash and cash equivalents at end of year
$ 20,884,079
19,758,431
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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 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 assets
$ 2,260,144 1,962,050
3,853,726 4,241,692
( 106,085) 3,526
30,231 30,154
(70,656) (19,685)
15,791 (4,709)
110,410 299,967
(8,455) (759)
(24,695) (340,537)
33,296 16,519
(117,960) 391,662
15,947 (3,574)
13,937 (63,339)
(6,586) 25,000
(940,115) 250,499
$ 5,058,930 6,788,466
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Net cash provided by (used for) operating activities
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of Operating Expenses
For the years ended June 30, 2001 and 2000
Engineering, operations, and distnbution administration:
Administration
Engineering services
2001 2000
$ 996,020 958,305
168.666 171.419
I.I 64.686 I.I29.724
2,977,945 3,097,173
1,108,595 965,825
2,300,780 2,184,586
6.387.320 6.247.584
1,065,185 1,112,453
390,198 457,830
582,223 533,212
2,037,606 2,103,495
276,455 346,707
1,147,397 630,684
11,013,464 10,458,194
3,853,726 4,241,692
$ 14,867,190 14,699,886
Plant Operations:
Plant operations
Bio-solids processing
RIX facility operations
Maintenance:
Plant maintenance
Facilities maintenance
Electrical instrumentation
Environmental control
General, administration, and overhead
Total operating expenses before depreciation
and amortization
Depreciation and amortization
Total operating expenses
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of Administration Expenses
For the years ended June 30, 2001 and 2000
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
Maintenance and operation:
General office supplies
Printed materials
Office equipment maintenance
Postage and delivery charges
Telephone
Advertising
Utilities - natural gas
Utilities - electricity
Billing and collection administration
Hazardous waste disposal
Minor office equipment purchases
Total
102
2001 2000
$ 173,976 171,495
30,127 29,892
26,481 38,164
230,584 239,551
1,618 4,031
2,920 2,514
3,847 3,389
3
39,541 37,783
26
682 467
36,179 31,744
678,726 637,068
572
1,923 1,157
765,436 718,754
$ 996,020 958,305
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of Engineering Services Expenses
For the years ended June 30, 2001 and 2000
Maintenance and operation:
Professional services
Total
103
2001
$
168,666
$
168,666
2000
171,419
171,419
MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules or Plant Operations Expenses
For the years ended June 30, 2001 and 2000
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
Maintenance and operation:
Training materials and rees
Membership & Dues Expense
General office supplies
Printed materials
Engineering and drafting supplies
Office equipment maintenance
Contract services
Permits and rees
Utilities - natural gas
Utilities - electricity
Materials and supplies
Small tools and equipment
Equipment rental
Equipment maintenance
Minor office equipment purchases
Radio maintenance
Chlorine
Ferric chloride
Other chernicals
Outside laboratory testing
Hazardous waste disposal
Water extraction rees
Total
104
2001 2000
$ 1,093,322 1,136,537
199,836 229,450
163,879 243,089
1,457,037 1,609,076
6,031 6,081
130
3,287 5,087
410
26
1,515 373
78,411 30,454
36,180 34,040
52,999 143,248
848,186 803,834
71,774 55,409
1,003 386
3,174 10,798
908 3,563
2,185 2,560
1,438 1,066
414 2,345
100,493 109,338
81,875 60,743
216,567 181,525
7,164 31,714
7.174 5.097
1,520,908 1,488,097
$ 2,977,945 3,097,173
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of Bio-Solids Processiog Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Productive salaries $ 17,192 45,713
Nonproductive salaries 5,040
Frioge benefits 3,796 18,157
26,028 63,870
Maiotenance and operation:
Contract services 681,193 597,491
Materials and supplies 4,065 4,027
Small Tools & Equipment 265
Equipment Maiotenance 1,000
Polymers 390,425 295,128
Other chemicals 5,619 5,309
1,082,567 901,955
Total $ 1,108,595 965,825
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
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Schedules ofRIX Facility Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Productive salaries $ 228,206 205,595
Nonproductive salaries 38,861 30,533
Fringe benefits 35,305 42,848
302,372 278,976
Maintenance and operation:
Training materials and fees 1,373 551
Safety clothing and supplies 2,135 1,354
Uniform rental and cleaning 1,276 1,354
General office supplies 2,536 2,610
Printed materials 237 27
Office equipment maintenance 371 131
Radio maintenance 91
Postage and delivery charges 5,810 5,780
Telephone 7,655 7,182
Janitorial supplies 260 2,035
Contract services 139,857 192,093
Landscape services 8,649 12,631
Pennits and fees 10,800 12,833
Dump fees 35 2,628
Hazardous waste disposal 1,440 153
Utilities - electricity 718,755 643,728
Materials and supplies 181,996 114,159
SmalI tools and equipment 2,847 3,402
Equipment rental 13,078 40,418
Fuels and lubricants - vehicle and equipment 19,633 17,766
Equipment maintenance 21,997 61,280
Minor office equipment purchases 564 469
Other chemicals 4,428 3,994
Outside laboratory testing 134,866 164,789
Travel, meals, and conventions 239 88
Memberships and dues 487 150
Liability insurance 15,000 13,018
Property insurance 25,000 22,459
Noninsurable accidents and losses 3,087 139
Sari line discharge fee 673,997 578,298
1,998,408 1,905,610
Total $ 2,300,780 2,184,586
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of Plant Maintenance Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Productive salaries $ 521,336 530,460
Nonproductive salaries 124,718 99,832
Fringe henefits 86,732 124,247
732,786 754,539
Maintenance and operation:
Training materials and fees 28
Safety clothing and supplies 45
General office supplies 1,745 1,738
Computer equipment maintenance 383
Minor office equipment purchases 1,974 1,375
Contract services 62,438 114,904
Materials and supplies 142,322 142,618
Small tools and equipment 2,165 1,169
Equipment rental 4,044 2,186
Fuels and lubricants - vebicle and equipment 53,666 44,474
Equipment maintenance 63,662 49,324
CbIorine 53
332,399 357,914
Total $ 1,065,185 1,112,453
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183,650 I
35,223
40,485 I
259,358
418 I
21
107,036 I
25,621
1,600
27,578 I
861
10,309
162 I
24,866
198,472 I
457,830
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Personnel:
Productive salaries
Nonproductive salaries
Fringe benefits
Maintenance and operation:
Training materials and fees
Safety clothing and supplies
Contract services
Landscape services
Laboratory sampling and testing
Materials and supplies
Small tools and equipment
Janitorial services
Equipment rental
Equipment maintenance
Total
Schedules of Facilities Maintenance Expenses
For the years ended June 30, 2001 and 2000
108
2001
$
185,149
36,185
27,418
248,752
109,662
10,135
10,400
1,259
7,871
1,726
393
141,446
$ 390,198
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of Electrical Instrumentation Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Productive salaries $ 353,065 319,573
Nonproductive salaries 69,219 52,839
Fringe benefits 54,202 65,670
476,486 438,082
Maintenance and operation:
General office supplies 1,405 849
Training Expenses 5,034
Safety Clothing/Supplies 66
Minor Office Equipment 332
Contract services 13,213 6,897
Materials and supplies 70,219 67,794
SrnaI1 tools and equipment 4,503 2,950
Computer Equipment Maintenance 138
Equipment maintenance 10,827 16,640
105,737 95,130
Total $ 582,223 533,212
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2001 2000
Personnel:
Productive salaries $ 188,831 205,662
Nonproductive salaries 41,661 68,723
Fringe benefits 26,375 46,876
256,867 321,261
Maintenance and operation:
Safety Clothing Suppies 58
General office supplies 1,450 1,417
Office equipment maintenance 38 244
Computer equipment maintenance 685
Materials and supplies 5,324 3,385
Small tools and equipment 808 1,676
Minor Office Equipment 293
Equipment maintenance 656 4,063
Laboratory sampling and testing 10,961 13,976
19,588 25,446
Total $ 276,455 346,707
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MUNICIP AL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of Environmental Control Expenses
For the years ended June 30, 2001 and 2000
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MUNICIPAL WATER DEPARTMENT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
Sewer Utility
Schedules of General, Administration, and Overhead Expenses
For the years ended June 30, 2001 and 2000
2001 2000
Personnel:
Disability insurance $ 42,549 33,232
Unemployment benefits 3,450
Retiree medical insurance 2,674 2,341
Administrative cost - group medical 1,965 3,250
47,188 42,273
Maintenance and operation:
Travel, meals, and conventions 9,581 7,591
Training materials and fees 5,219 9,577
Employee reimbursements 4,587 3,342
Safety clothing and supplies 17,547 17,964
Employee physical examinations and X-rays 672 612
Memberships and dues 21,312 14,377
Uniform rental and supplies 18,896 17,903
General office supplies 6,564 6,526
Printed materials 450 251
Postage and delivery charges 1,948 1,689
Subscriptions 499 299
Advertising 86
Telephone 2,457 2,720
City hall office rent 21,802 21,802
Legal services 434,287 132,728
Other professional services 205,241 185,473
Materials and supplies 12,802 10,387
Small tools and equipment 55
Fuels and lubricants - vehicle and equipment 107
Minor office equipment purchases 1,826 3,529
Liability insurance 113,735 107,618
Property insurance 110,744 104,469
Workers' compensation 100,994 (72,338)
Noninsurable accidents and losses 7,729 10,323
Miscellaneous insurance and bonds 1,231 1,143
Freight charges 264
1,100,209 588,411
Total $ 1,147,397 630,684
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CONRAD AND
ASSOCIATES, L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS
1100 MAIN STREET, SUITE C
IRVINE, CALIFORNIA 92614
(949) 474-2020
Fax (949) 263-5520
Water Commissioners Board
Municipal Water Department of the City of San Bernardino, California
Report on Compliance and Internal Control Over Financial
Reporting Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
We have audited the financial statements of the Municipal Water Department of the City of San
Bernardino ("Department") as of and for the year ended June 30, 2001, and have issued our
report thereon dated November 8, 2001. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General
of the United States.
Compliance
As part of obtaining reasonable assurance about whether the Department's financial statements
are free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, and contracts, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. Providing an opinion on compliance
with those provisions was not an objective of our audit, and, accordingly, we do not express such
an opinion. The results of our tests disclosed no instances of noncompliance that are
required to be reported under Government Auditing Standards.
Internal Control over Financial Reporting
In planning and performing the audit, we considered the Department's internal control over
financial reporting in order to determine our auditing procedures for the purpose of expressing
our opinion on the financial statements, rather than to provide assurance on the internal control
over financial reporting. Our consideration of the internal control over financial reporting would
not necessarily disclose all matters in the internal control over financial reporting that might be
material weaknesses. A material weakness is a condition in which the design or operation of one
or more of the internal control components does not reduce to a relatively low level the risk that
misstatements in the amounts that would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by employees in the normal course
of performing their assigned functions. We noted no matters involving the internal control
over financial reporting and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofthe Water Commissioners Board and
management of the Department and is not intended to be and should not be used by anyone other
than these specified parties.
~../,....,./ 4sPIol....~ L.~.,f
November 8, 2001
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MEMBERS OF AICPA AND CALIFORNIA SOCIE1Y OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOLlNTANTS PRIVATE COMPANIES PRACTICE SECTION
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