SESSION October 3, :00 AM

Transcription

1 AGENDA REGULAR STUDY SESSION October 3, :00 AM DIRECTORS PRESENT: Cambero Horton Morris Ryan Williams PUBLIC COMMENTS DISCUSSION ITEMS 1. One-Year Contract Services Agreement for Delivery of Ferric Chloride Plus Four One-Year Optional Extensions 2. Proposed Formation of EVMWD Community Facilities District No Proposed Changes to Variance Processing 4. Quarterly Financial Review 5. Project Updates 6. Board Committee Updates 7. Other 8. Adjournment To request a disability-related modification or accommodation regarding agendas or attendance, contact Terese Quintanar, at (951) , extension 8223 at least 48 hours before the meeting. Posted Chaney Street 9/26/18 11:45 AM Lake Elsinore, CA 92530

2 2 DISCUSSION ITEMS #1. STUDY SESSION DISCUSSION OUTLINE Date: October 3, 2018 Originator: Subject: Tim Collie- Operations ONE-YEAR CONTRACT SERVICES AGREEMENT WITH CALIFORNIA WATER TECHNOLOGIES FOR DELIVERY OF 10% ACIDIFIED FERRIC CHLORIDE TO THE BACK BASIN GROUNDWATER TREAMENT PLANT PLUS FOUR ONE- YEAR OPTIONAL CONTRACT EXTENSIONS BACKGROUND AND RECOMMENDATION Various chemicals are required to obtain treatment process control and regulatory compliance at all wastewater treatment facilities, water treatment plants, wells, and water pump stations. Staff recently contacted California Water Technologies (CWT) for information on the cost to deliver ph-adjusted ferric chloride to the Back Basin Groundwater Treatment Plant on a regular basis. CWT is the only local company that provides this chemical and as such, CWT is considered a sole source provider. Staff plans to present this item at the October 25, 2018 Board meeting and requests that the Board approve a one-year Contract Services Agreement with California Water Technologies in the amount of 70,174,02. Staff also requests that the Board authorize staff the discretion to renew four optional 1-year extensions, each in the amount of 70, for a total approval of 350, ENVIRONMENTAL WORK STATUS Not applicable. FISCAL IMPACT Within Budget Yes. See attached page. Attachments: Fiscal Impact California Water Technologies Proposal

3 3 DISCUSSION ITEMS #1. Fiscal Impact Funding Source Fund 20 - Elsinore Water Budgeted Amount Expended Amount Balance Available Requested Amount Remaining Balance Chemical & Other Treatment Costs FY ,692 23,599 62,093 46,783 15,310 Optional Extensions FY ,174 * FY ,174 * FY ,174 * FY ,174 * FY ,391 * Total Optional Extensions 304,087 Total for 5 Years 350,870 Contract No. 643 Note: The effective date of this contract is October 26, 2018 to October 25, The amount listed for FY18-19 includes 8 months. This request will be incorporated into future budgets. * The extensions will be reviewed and authorized by staff at each renewal date.

4 8851 Dice Road Santa Fe Springs, CA Telephone: (866) Fax: (562) September 6, 2018 Mr. Brian Eddy Elsinore Valley Municipal Water District Dear Brian, California Water Technologies is pleased to provide the following quotation for the ferric chloride requirements at Elsinore Valley Municipal Water District. Product: Ferric chloride (10% HCl) Volume: gallon loads Approximately every two weeks Price: 0.19/liquid pound Effective 9/1/18 8/31/19 Any renewals will be mutually agreeable between CWT and Elsinore Valley Terms: Net 30 days We greatly appreciate the business at Elsinore Valley Municipal Water District and the opportunity to provide pricing through next year. Let us know if any additional information is needed. We look forward to your response. Sincerely, Larissa Rider California Water Technologies Sales Manager 4 DISCUSSION ITEMS #1.

5 5 DISCUSSION ITEMS #2. STUDY SESSION DISCUSSION OUTLINE Date: October 3, 2018 Originator: M. Armstrong- Strategic Planning Subject: PROPOSED FORMATION OF EVMWD COMMUNITY FACILITIES DISTRICT NO BACKGROUND AND RECOMMENDATION Elsinore Valley Municipal Water District ( EVMWD ) has been approached by the development community within the Horsethief Canyon area of the EVMWD service area for the provision of wastewater treatment benefiting approximately 1,000 new residential units (the Project ). The developers and EVMWD in the area have entered into a Development Agreement Regarding Facilities and Facilities Fees in 2016, pursuant to which, the Horsethief Water Reclamation Facility Upgrade would be financed, and the Developers will be providing a capital contribution of roughly 65% of the cost. Three of the four developers participating in this project would like to fund their contribution with a Community Facilities District (CFD). The participating developers are Hill Country S.A., L.P., Rich Haven Visser, L.P., Richland Ventures, Inc., SAM- Horsethief, LLC and Temescal Valley Lands, LLC. The developer that does not want to participate in the CFD is MPLC JBJ Ranch. The proposed CFD would be formed with 6 improvement areas. Each of the three participating developers would have one improvement district on the property for purposes of financing the project. There would be a separate improvement area on each property to fund additional public facilities, either for EVMWD or the School District. The purpose of dividing the CFD into several improvement areas is to provide flexibility in the future and to mitigate risk. Should several developments go forward and one development lag behind, then the slower developing parcel does not impact the credit or the special taxes of the other developments. EVMWD established goals and policies with respect to CFDs many years ago. Primary to the CFD policy is that the value to lien ratio of land in the CFD to the CFD total be 4:1. The policy states that this requirement can be waived for commercial and industrial projects at the Board s discretion.

6 6 DISCUSSION ITEMS #2. The developers are asking that the Board consider waiving the value to lien ratio of 4:1 and reducing it to 3:1. The developers would like to proceed with the issuance of bonds for the Project upon the value of the property being 3 times the lien of the CFD. The purpose is to be able to go to the market more quickly for funding the Project. As a mitigating measure for the lower lien to value, EVMWD staff has asked that the developers provide a letter of credit securing the payment of special taxes for each improvement area for a two-year period. The letter of credit will ensure that there is a revenue source to pay any bonds during the proposed development cycle in the Horsethief Canyon area. The Project is expected to be ready to bid in November and the Developer s portion of the Project will need to be fully funded upon the award of the contract. ENVIRONMENTAL WORK STATUS Not applicable. FISCAL IMPACT Not applicable. Attachments: None

7 7 DISCUSSION ITEMS #3. STUDY SESSION DISCUSSION OUTLINE Date: October 3, 2018 Originator: Subject: Christina Henry- Customer Service PROPOSED CHANGES TO VARIANCE PROCESSING BACKGROUND AND RECOMMENDATION Staff originally brought this item to the June 19, 2018 Study Session. At that time, the Board asked that staff revisit the proposed changes at a later date. As a result of a request made during the September Finance and Administration Committee meeting, staff is bringing the item back for further discussion. ENVIRONMENTAL WORK STATUS Not applicable. FISCAL IMPACT Not applicable. Attachments: None.

8 8 SS Meeting October 3, 2018

9 Table of Contents Budget to Actual Comparisons Operating Revenues & Expenses by Fund Operating Revenues by Cost Center Operating Expenses by Cost Center Operating Expenses by Department District Wide Statement of Revenues, Expenses, & Changes in Net Position Statement of Net Position Statement of Cash Flow 1 9

10 TO ACTUAL Operating Revenues & Expenses By Fund CURRENT YEAR / 2018 Operating Revenue 1.0 Water Revenue 1.1 Wastewater Revenue 1.2 Recycled Water Revenue 1.3 Engineering Revenues 1.4 General & Other Operating Revenue PRIOR YEAR / 2017 REMAINING TARGET ACTUAL 46,898,764 48,647,761 (1,748,997) 103.7% 23,571,007 24,046,130 (475,123) 102.0% 1,126,236 1,146,853 (20,617) 101.8% 2,263, ,905 1,313, % 5,238,527 5,451,235 (212,708) 104.1% REMAINING TARGET ACTUAL 51,933,178 43,749,990 8,183, % 22,613,153 22,261, , % 1,349,504 1,036, , % 1,431, , , % 4,455,551 4,947,715 (492,164) 111.0% 1.5 Total Operating Revenue 79,097,715 80,241,883 (1,144,168) 101.4% 81,783,159 72,915,983 8,867,176 Operating Expenses 2.0 Water Purchases 2.1 Water Operations 2.2 Wastewater Operations 2.3 Recycled Water Operations 2.4 Engineering Expenses 2.5 General & Other Operating Expenses 15,609,009 24,238,018 17,116,718 1,652,382 2,781,317 5,127,957 18,036,267 21,318,090 14,071,948 1,172,102 2,301,306 5,195,546 (2,427,258) 115.6% 2,919, % 3,044, % 480, % 480, % (67,589) 101.3% 19,219,609 24,564,157 17,111,631 1,616,041 1,887,435 4,391,784 16,266,623 21,634,107 14,638,733 1,278,864 1,993,860 4,748,413 2,952, % 2,930, % 2,472, % 337, % (106,425) 105.6% (356,629) 108.1% 2.6 Total Operating Expenses 66,525,401 62,095,259 4,430,142 68,790,658 60,560,600 8,230, Operating Income/(Loss) 12,572,314 18,146,624 (5,574,310) Allow for rounding differences. 93.3% 89.2% 88.0% 12,992,502 12,355, ,

11 TO ACTUAL Operating Revenues By Cost Center CURRENT YEAR / 2018 REMAINING TARGET ACTUAL 100% OPERATING REVENUES Elsinore Water Water Sales Fixed Meter Charge Energy Charge Other Service Charges & Penalties New Service Connections Water Standby Charges Total Elsinore Water 27,287,439 14,652,447 2,392,858 1,399, , ,000 28,513,388 14,698,780 2,593,014 1,886, , ,000 (1,225,949) (46,333) (200,156) (487,510) 11, % 100.3% 108.4% 134.8% 95.6% 46,146,908 48,095,141 (1,948,233) PRIOR YEAR / 2017 REMAINING TARGET ACTUAL 100% 33,611,251 12,547,906 3,195,885 1,343, , ,000 24,850,465 13,103,133 2,327,643 2,229, , ,000 8,760,786 (555,227) 868,242 (886,290) (222,510) % 104.4% 72.8% 166.0% 165.6% 104.2% 51,187,774 43,222,773 7,965, % Temescal Water Water Sales Fixed Meter Charge Energy Charge Other Service Charges & Penalties 257, ,849 36,735 15, , ,482 31,647 12,069 (7,001) 197,367 5,088 3, % 55.3% 86.1% 76.1% 511, ,279 41,891 15, , ,815 37,818 28, ,119 (4,536) 4,073 (12,469) 54.8% 102.6% 90.3% 178.7% 2.4 Total Temescal Water 751, , , % 745, , , % 2.5 Total Water Revenues 46,898,764 48,647,761 (1,748,997) 103.7% 51,933,178 43,749,990 8,183, % 23,046, , ,152 66, ,050 23,490,509 97, ,279 44, ,194 (443,654) 32,572 (30,127) 22,230 (56,144) 101.9% 74.9% 113.9% 66.8% 151.0% 21,833, , ,020 75, ,050 21,692, , ,022 43, , , ,099 (3,002) 32,130 (46,732) 99.4% 41.5% 101.4% 57.4% 146.7% 23,571,007 24,046,130 (475,123) 102.0% 22,613,153 22,261, , % 1,126,236 1,146,853 (20,617) 101.8% 1,349,504 1,036, , % 610,070 1,563,111 70,000 18,000 2, , ,334 44, ,957 5, , ,777 25,007 (132,957) (3,930) 21.6% 39.4% 64.3% 838.7% 296.5% 349,679 1,002,555 70,000 9, , ,114 69,246 34,139 4, , , (25,089) (4,120) 46.4% 64.8% 98.9% 377.2% 940.8% 2,263, ,905 1,313, % 1,431, , , % 137, ,637 (80,026) 158.2% 1, ,332 (146,832) % 1,347, ,590 2,752, ,408 1,347, ,590 2,885, ,411 (3) (132,676) (3) 104.8% 1,211, ,000 58,667 2,143, ,775 1,208, ,000 58,668 2,514, ,142 2,363 (1) (371,327) 23, % 117.3% 97.4% 5,238,527 5,451,235 (212,708) 104.1% 4,455,551 4,947,715 (492,164) 111.0% (1,144,168) 101.4% 8,867, % Wastewater Sewer Service Charge Septage Dumping Fees Sewer Service - EMWD Pre-Treatment Program Other Sewer Revenue Total Wastewater 4.0 Recycled Water Engineering Service Revenues Planning & Plan Check Fees Earned Inspection Fees Earned Master Plan & Atlas Update Fees Research & Design Engineering Fees Sewer Lateral Inspection Fees Earned Total Engineering Service General & Other Operating Revenues General & Administrative Vehicle & Equipment: Internal Service Fees Allocation & Other non operating revenue Lake Maintenance Information Technology Facilities Total General & Other Operating Revenues 7.0 Total Operating Revenues by Cost Center 79,097,715 Allow for rounding differences. 80,241,883 81,783,160 72,915,

12 TO ACTUAL Operating Expenses By Cost Center CURRENT YEAR / 2018 REMAINING TARGET ACTUAL PRIOR YEAR / 2017 REMAINING TARGET ACTUAL 1.0 WATER PURCHASES Water Purchases WATER OPERATIONS Administrative Reservoir Wells Pumping & Booster Transmission & Distribution Canyon Lake Water Treatment Plant Back Basin Water Treatment Plant New Meter Installation Meter Reading Meter Testing & Replacement Water Conservation Laboratory Billable Work Order Subtotal 10,644, ,470 1,496,636 2,682,837 3,821,179 2,501, , , , , ,693 6,881 24,238,018 10,691, ,766 1,023,488 2,432,863 3,375,383 1,297, , , ,850 1,024, , ,904 21,318,090 (47,387) 185, , , ,797 1,203, ,196 74, ,157 (485,738) 401,597 6,881 (100,904) 2,919, % 73.3% 68.4% 90.7% 88.3% 51.9% 46.8% 76.8% 33.7% 190.2% 37.3% 0.0% 88.0% 9,992,257 1,198,096 2,478,192 3,247,153 3,488,162 1,254, , , , , ,233 24,564, WASTEWATER OPERATIONS Administrative Collection Systems Sewage Lift Station Regional WW Treatment Plant Railroad Canyon WW Treatment Plant Horsethief WW Treatment Plant Pretreatment Program RCWD Contractual Agreement Billable Work Order Subtotal 5,531,968 1,122,497 1,549,375 3,950,805 1,081, , ,495 2,781,357 17,116,718 5,099, ,416 1,390,721 4,070, , , ,530 1,042,313 14,071, , , ,655 (119,360) 335, ,890 7,966 1,739,044 3,044, % 76.1% 89.8% 103.0% 69.0% 73.2% 97.0% 37.5% 82.2% RECYCLED WATER OPERATIONS Water Purchases Administrative Reservoir Pumping & Booster Transmission & Distribution Railroad Canyon WW Treatment Plant Horsethief WW Treatment Plant RCWD Contractual Agreement Subtotal 155, ,542 12,866 32, , ,000 94, ,860 1,652,382 57, ,463 7,827 24, ,304 84,882 69, ,801 1,172,102 97,411 (20,920) 5,039 7, ,690 41,118 24, , , ENGINEERING District Project & Inspection Planning & Plan Check Developer Project & Inspection Service Availability, Maps & Records Subtotal 162, ,070 1,563, ,182 2,781,317 5, ,668 1,070, ,779 2,301, , , ,182 (510,598) 480,011 5,127,957 5,195,546 GENERAL & INTERNAL SERVICES 6.0 Total Operating Expenses by Cost Center 15,609,009 18,036,267 (2,427,258) 115.6% Allow for rounding differences. 2,952, % 10,000, ,117 1,355,077 2,554,777 3,177,409 1,941, , , , , ,765 41,647 21,634,107 (8,130) 653,980 1,123, , ,753 (687,350) 336, ,817 (55,736) 244, ,469 (41,647) 2,921, % 45.4% 54.7% 78.7% 91.1% 154.8% 31.6% 59.1% 114.2% 71.7% 77.8% 88.1% 5,134,374 1,433,062 1,473,537 4,928,635 1,042, , ,869 2,052,612 17,111,631 4,692,580 1,233,739 1,503,315 4,376, , , ,514 1,136,677 19,313 14,638, , ,323 (29,778) 552, , ,890 18, ,935 (19,313) 2,472, % 86.1% 102.0% 88.8% 75.4% 82.2% 93.3% 55.4% 85.5% 37.2% 107.6% 60.8% 76.4% 40.5% 67.4% 74.2% 76.0% 70.9% 200, ,558 28,972 40,543 32, , , ,084 1,616,041 89, ,816 3,541 67,026 62,852 83,302 66, ,230 1,278, ,831 (299,743) 25,431 (26,483) (30,019) 28,500 49,320 96,854 (45,308) 44.6% 83.6% 12.2% 165.3% 191.4% 74.5% 57.5% 83.4% 79.1% 3.6% 44.0% 68.5% 214.7% 82.7% 59, ,679 1,002, ,091 1,887,435 4, , , ,098 1,993,860 54, % 165, % 59, % (386,007) 181.1% (106,425) 105.6% 4,391,784 4,748,413 (67,589) 101.3% 66,525,400 62,095,259 4,430, % 19,219,609 16,266,623 68,790,658 60,560,600 (356,629) 108.1% 8,230, % 4 12

13 TO ACTUAL Operating Expenses By Department CURRENT YEAR / 2018 REMAINING TARGET ACTUAL 1.0 Administration Departments: 1.1 Board Of Directors 1.2 General Management 1.3 Administrative Services 1.4 Legislative / Conservation Services 1.5 Human Resources 1.6 Safety 1.7 Strategic Programs ,768 1,513, , , , ,014 3,954, ,962 1,715, , , , ,733 2,254,628 8,078,150 6,359, Business Services Departments: 2.1 Business Services 2.2 Finance And Accounting 2.3 Grant Administration 2.4 Customer Service 2.5 Community Affairs 2.6 Purchasing 2.7 Information Technology 2.8 SCADA 181,039 1,683, ,609 1,919,167 1,193, ,627 2,830, , ,944 1,740, ,878 1,823, , ,030 2,879, , ,211,261 8,770,928 3,294,394 Engineering and Operations Departments: Engineering Engineering Administration & Water Resources 1,212,183 Construction Services 808,286 Development Services 398,297 Capital Design 336, Total Administration Departments Total Business Services Departments Non-Departmental Charges & Allocations 113, % (201,601) 113.3% 69, % (13,505) 103.3% (43,475) 105.0% 94, % 1,699, % 1,718, ,700 1,657, ,681 1,665, , ,301 3,116,019 PRIOR YEAR / 2017 REMAINING TARGET ACTUAL BUIDGET 342,395 1,701, ,000 1,348, , ,672 2,258, , % (44,221) 102.7% 7, % 317, % 22, % (13,371) 107.7% 857, % 78.7% 8,405,929 7,133,884 15, % (57,447) 103.4% 28, % 95, % 431, % (137,403) 132.9% (48,788) 101.7% 112, % 167,195 1,756,892 2,220, ,668 2,378,347 1,013, ,821 1,473,195 31,174 1,871,642 48, ,669 2,627, , % 7,938,346 7,489,532 3,295,000 (606) 291, ,725 (40,734) 114.0% 1,637, , , ,751 (424,974) 135.1% 567, % 276, % 13, % 719, , , , , , , ,600 (72,952) 110.1% 78, % 223, % 3, % 440,333 1,272, % (3,626) 102.2% 283, % (31,174) 346, % (48,847) 13, % (249,004) 110.5% 135, % 446, % Total Engineering 2,754,833 2,323, , % 2,213,781 1,981, , % 5.0 Water Resources 5.1 Water Resources Management 5.2 Water Quality 5.3 Water Resources Planning 5.4 Water Systems Engineering 5.5 Wastewater Systems Engineering 991,847 1,194, , , , , , , , , , ,723 54, , , % 77.2% 87.1% 82.1% 73.2% 1,223,971 1,007, , , , ,168 1,043, , , , ,803 (35,936) (113,750) (30,489) (6,428) 72.6% 103.6% 128.9% 104.6% 101.2% 5.6 3,876,223 3,064, , % 3,828,078 3,679, , % 679, , , % 527, ,295 15,764, ,380 6,237,065 1,268,618 2,016,422 1,528,146 18,093, ,574 4,390,081 1,143,499 1,871,041 1,507,975 (2,329,847) 114.8% 31, % 1,846, % 125, % 145, % 20, % 19,419, ,012 6,981,507 1,912,261 1,491,862 2,166,401 16,355, ,845 5,665,873 1,885,444 1,262,578 1,646,900 3,063,818 46,167 1,315,634 26, , , % 86.1% 81.2% 98.6% 84.6% 76.0% 27,109,641 27,270,027 (160,387) 100.6% 32,304,852 27,103,631 5,201, % 404,337 1,185,668 3,925, , ,435 3,983, , % 264, % (58,218) 101.5% 406,602 1,419,106 5,307, ,660 1,199,942 4,373,930 31, , , % 84.6% 82.4% 5,515,661 5,005, , % 7,133,196 5,948,532 1,184, % 365,103 2,964,209 2,676, ,273 2,499,793 2,548,133 (18,169) 105.0% 464, % 128, % 400,181 3,269,848 2,476, ,049 3,351,849 2,586,689 Total Water Resources 6.0 Operations 6.1 Operations Administration Water: Water Purchases Water Operations Management Water Production/Treatment Preventive Maintenance Construction Field Services Total Water Operations Wastewater: Wastewater Operations Mgmt Wastewater Collections Wastewater Treatment Total Wastewater Operations Maintenance: Maintenance Management Mechanical Maintenance Facilities Maintenance Total Maintenance Operations Subtotal Operations 8.0 Total Operating Expenses by Departments 6,005,552 5,431, , % 6,146,982 6,286,587 39,310,541 38,282,414 1,028, % 46,112,532 39,943,045 66,525,401 62,095,259 4,430, % 68,790,657 60,560,600 Allow for rounding differences. (76,793) 114.6% 52, % (82,001) 102.5% (109,736) 104.4% (139,605) 102.3% 6,169, % 8,230, % 5 13

14 Statement of Revenues, Expenses, and Changes in Net Position JUN18 JUN17 OPERATING REVENUES: Wate r re ve nue s 48,647,761 43,749,990 Was te wate r re ve nue s 24,046,130 22,261,812 1,146,853 1,036,047 Re cycle d wate r re ve nue s Engine e ring Re ve nue Ge ne ral and Othe r inte rnal Funds re ve nue Total ope rating re ve nue s 949, ,419 5,451,235 4,947,715 80,241,883 72,915,983 OPERATING EXPENSES: Wate r purchas e s 18,036,267 16,266,623 Wate r ope rations 21,318,090 21,634,107 Was te wate r ope rations 14,071,948 14,638,733 Re cycle d wate r ope rations 1,172,102 1,278,864 Engine e ring Ope rations 2,301,306 1,993,860 Ge ne ral and Othe r Ope rating Expe ns e s 5,195,546 4,748,413 62,095,259 60,560,600 OPERATING INCOME/(LOSS) Total ope rating e xpe ns e s 18,146,624 12,355,383 DEPRECIATION/AMORTIZATION 19,982,645 19,894,657 Ge ne ral purpos e 6,508,824 6,225,970 Re de ve lopme nt 2,644,790 2,415,096 NON-OPERATING REVENUES: Prope rty taxe s : Te me s cal Valle y Proje ct 482, ,364 9,635,769 9,133,430 Standby charge s 617, ,492 Inve s tme nt Income 934, ,852 Mutual Wate r Company (68,819) Total Prope rty taxe s (67,504) Le as e income 1,433,523 1,520,603 Othe r income 8,096,263 (1,156,661) Total nonope rating re ve nue s 20,649,248 10,152,212 3,571,438 3,523,656 NON-OPERATING EXPENSES: Inte re s t Expe ns e : Ce rtificate s of Participation Bonds and Loans 53,146 28,382 Othe r e xpe ns e s 2,696,939 1,593,303 Total nonope rating e xpe ns e s 6,321,522 5,145,341 INCOME/(LOSS) BEFORE CONTRIBUTIONS 12,491,704 (2,532,403) Capital Contributions Capacity fe e s 10,027,211 14,682,746 Capital grant 3,090,355 6,906,333 Othe r contributions 4,799,226 2,761,676 17,916,793 24,350,755 Total capital contributions Incre as e (De cre as e ) in Ne t Pos ition NET POSITION, BEGINNING OF THE YEAR Allow for rounding differences 30,408,497 21,818, ,008, ,190,

15 Statement of Net Position JUN18 ASSETS: Curre nt Asse ts: Cash and cash e quivale nts Re stricte d asse ts Inve stme nts maturing in le ss than a ye ar Accounts re ce ivable, ne t of allowance s Othe r re ce ivable s Accrue d inte re st re ce ivable Mate rials and supplie s inve ntorie s Pre paid e xpe nse s De posits Total curre nt asse ts Noncurre nt Asse ts: Inve stme nts Inve stme nt in Mutual Wate r Company Inve stme nt in SRRRA Accrue d inte re st re ce ivable Re ce ivable from CFD Note s and contracts re ce ivable Sub-total Capital asse ts, de pre ciate d - ne t Capital asse ts, not de pre ciate d Total noncurre nt asse ts Total Asse ts DEFERRED OUTFLOWS OF RESOURCES: Unamortize d bond re de mption De fe rre d Outflows- Employe e Pe nsion Contributions De fe rre d Outflows- Employe e Pe nsion Actuarials Total De fe rre d Outflow of Re source s LIABILITIES: Curre nt Liabilitie s: Accounts payable Re te ntions Payable Accrue d e xpe nse s Custome r de posits Inte re st payable Long-te rm de bt due within one ye ar De ve lope r and othe r advance s He ld for bondholde rs 51,018,996 11,910,048 44,532,306 8,382,860 2,975,305 67, ,149 1,087,624 13,103 26,966,841 10,796,701 29,067,704 8,102,611 6,154, ,914 1,410,531 13, ,916,379 83,454, ,809,987 4,369,180 5,739, , , ,978, ,290,958 66,653, ,577,805 4,437,999 1,746, , , , ,773, ,677,525 70,872, ,922, ,323, ,839, ,777,673 7,142,143 2,908,487 4,583,025 7,635,123 2,747,053 5,274,247 14,633,656 15,656,424 5,392, ,903 1,060,429 2,663,850 2,032,719 7,029,585 1,160,919 2,443,420 Total Curre nt liabilitie s Allow for rounding differences. JUN17 22,361,790 (1,056) 259,045 6,599,342 2,600,251 2,082,994 6,770,492 1,249,719 2,404,777 21,965,

16 Statement of Net Position Noncurrent Liabilities: Certificates of participation payable Revenue bond payable Loans payable Advances from U.S. Government Accrued compensated absences Net pension liability Less amount due within one year Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred Inflows-employee pension actuarial NET POSITION Net investment in capital assets Restricted for: Rate stabilization fund Operating reserve - debt service Customer deposits Debt service reserves Capacity fees Total restricted net position Unrestricted Total Net Position Allow for rounding differences. JUN18 JUN17 79,190,109 82,513,384 2,589,840 5,024,148 3,855,102 26,103,706 (7,029,585) 80,071,342 84,275,784 1,416,590 5,410,621 3,868,098 22,529,337 (6,770,492) 192,246, ,801, ,608, ,766, ,617 2,658, ,769, ,010,569 3,000,000 11,518,180 3,462,455 4,351,508 29,825,719 52,157,863 3,000,000 12,364,710 3,269,209 4,351,491 26,847,590 49,833, ,489, ,164, ,416, ,008,

17 Statement of Cash Flow CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers Cash payments to employees for services Cash payments to suppliers for goods and services Other operating income JUNE JUNE ,284,721 (20,883,206) (38,611,477) 7,766,175 63,420,942 (27,919,262) (28,067,674) (2,244,004) NET CASH PROVIDED BY OPERATING ACTIVITIES 25,556,213 5,190,002 CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES: Property taxes Property tax collection activities 10,253,717 (6,500) 9,728,922 (8,125) NET CASH PROVIDED BY NONCAPITAL AND RELATED FINANCING ACTIVITIES 10,247,217 9,720,797 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Bond handling fees Deferred outflows-unamortized bond redemption Principal payments of long - term debt Purchase, construction, and disposal of capital assets Capacity fees Capital grant Other contributions Interest and penalty payments Receipts of funds held for bondholders Payment of funds held for bondholders Loan payments received (467,473) 492,980 (2,349,836) (4,977,371) 10,027,211 3,090, ,809 (3,674,858) 69,960 (31,316) 250,000 (502,472) 492,979 (8,107,450) (18,843,470) 14,682,746 6,906, ,430 (2,675,477) 512,452 (29,908) 250,000 3,111,460 (6,567,837) CASH FLOWS FROM INVESTING ACTIVITIES: Lease income Investment income received Sale of investments and maturities Purchase of investments 1,433,523 (3,425,100) 38,795,312 (51,666,470) 1,520,603 (1,873,802) 11,984,018 (23,722,722) NET CASH PROVIDED BY/USED FOR INVESTING ACTIVITIES: (14,862,736) (12,091,903) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS: 24,052,155 (3,748,941) CASH AND CASH EQUIVALENT AT BEGINNING OF THE YEAR 26,966,841 30,715,781 NET CASH (USED) FOR CAPITAL AND RELATED FINANCING ACTIVITIES CASH AND CASH EQUIVALENT AT THE END OF THE YEAR Allow for rounding differences. 51,018,996 26,966,

18 Statement of Cash Flow JUNE 2018 JUNE 2017 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES: Operating Income (loss) (3,728,899) (7,534,633) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation/amortization 19,982,645 19,894, , ,996 7,766,175 (2,244,005) (1,731,443) 54,797 2,724,494 (4,297,930) 337,672 (274,893) (113,066) (688,747) Inc (dec) in retentions payable 318,858 88,816 Inc (dec) in accrued compensated absences (12,996) 23,483 (161,434) (88,509) Bad debt expense - operating Other operating income Employee pension expense Changes in assets and liabilities: (Inc) dec in accounts receivable (Inc) dec in inventory, prepaid expenses and deposits Inc (dec) in accounts payable, accrued expenses and deposits Changes in deferred inflows and outflows: (Inc) dec in deferred outflows-employee pension contributions NET CASH PROVIDED BY OPERATING ACTIVITIES 25,556,213 5,190,032 1,531,529 (1,602,231) 4,117,418 (492,980) NON-CASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES Change in unrealized gain (loss) in market value of investment Capital contribution Change in Deferred outflows of resources, Unamortized bond redemption Allow for rounding differences. 2,015,246 (492,979) 10 18