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Home My WebLink About95.PPP AdminCmte_CAFRPresenter: Mike White Controller Comprehensive Annual Financial Report For the Year Ended June 30, 2015 Comprehensive Annual Financial Report (CAFR) •Fully explains financial operations of OCSD •Prepared for the 22st consecutive year •Meets GFOA’s Excellence Award Standard •Important to bond rating agencies and investors Net Position Decreased $60.5 Million (in thousands)PercentageIncrease Increase(Decrease)(Decrease) Assets Current & Other Assets $ 604,005 $ 755,807 $ (151,802)-20.1% Capital Assets, Net 2,504,980 2,420,005 84,975 3.5% Deferred Outflows 52,949 18,173 34,776 191.4% Total Assets $3,161,934 $3,193,985 $ (32,051)-1.0% Liabilities Current Liabilities $ 105,031 $ 113,987 $ (8,956)-7.9% Noncurrent Liabilities 1,269,553 1,257,703 11,850 0.9% Deferred Inflows 25,506 -25,506 N/A Total Liabilities $1,400,090 $1,371,690 $ 28,400 -2.1% Net Assets Net Investment in Capital Assets $1,327,384 $1,204,706 $122,678 10.2% Unrestricted 434,460 617,589 (183,129)-29.7% Total Net Position $1,761,844 $1,822,295 $ (60,451)-3.3% 2015 2014 Net Position Decreased $60.5 Million Over the Prior Year +121.6 M Increase in Beginning Net Position -194.5 M Decr. in Restated Beg. Net Pos. (GASB 68) + 3.5 M Increase in CFCC + 1.0 M Increase in Service Charges & Fees +0.6 M Increase in Non-operating Revenues -2.8 M Increase in Operating Expense +4.5 M Decrease in Non-operating Expense +5.6 M Decrease in Depreciation & Amort. $60.5 M Decrease in Net Position over the Prior Year Source of Funds Use of Funds Change in Net Assets – Last Five Years $1,510.5 M $1,597.6 M $1,700.7 M $1,822.2 M []M 10-11 11-12 12-13 13-14 14-15 +$103.7 M +$121.6 M $-60.5 M +$79.4 M +$96.1 M Cash and Investments Decreased $116.2 Million Cash Provided by: $365.6 M Net Proceeds from Debt Issuance 79.9 M Property Tax Revenues 20.2 M CFCC Fees 19.3 M Net Operating Activities 9.5 M SARI Line Project Reimbursements 8.1 M Interest Received 1.4 M Miscellaneous Resources $ 504.0 M Cash Provided Cash and Investments Decreased $116.2 Million (cont’d) Cash Used by: $376.5 M Debt Retirement 156.7 M Net Capital Outlay 54.9 M Debt Interest Payments 27.9 M Debt Principal Payments 3.0 M Unrealized loss on Investments 1.2 M Debt Issuance Costs $ 620.2 M Cash Used $504.0 M Cash Provided -$620.2 M Cash Used = $116.2 M Decr. Under (Over) Budget Actual Budget Personnel Cost $99,168,800 $94,206,016 $4,962,784 5.0% Contr. & Prof. Svc.27,485,540 25,352,261 2,133,279 7.8% Materials & Supplies 15,832,300 15,364,441 467,859 3.0% Repairs & Maint.13,108,210 11,649,253 1,458,957 11.1% Utilities 7,437,770 7,157,617 280,153 3.7% Other 6,208,200 5,025,014 1,183,186 19.1% Cost Allocation (16,740,700)(17,276,525)535,825 -3.2% Total Oper. Expense $152,500,120 $141,478,077 $11,022,043 7.2% Collection, Treatment and Disposal Cost – Comparison of Budget to Actual For the Year Ended June 30, 2015 Gross Operating Cost Under Budget Explanation Salaries & Wages $1,044,000 Lower than anticipated staffing levels (580 FTE actuals vs. 624 FTE Budget Retirement 3,268,000 Employer premiums were reduced as a result of the $125 M UAAL pay down. Repair & Maint.2,030,000 Deferral of digester cleaning and Central Generation Engine Overhauls. Solids Removal 1,111,000 Hauling costs were less than anticipated. Contingency/PY Reapp.845,000 Unexpected events were not realized. Cost Allocation 536,000 CIP was greater than anticipated. Total Under Budget $8,834,000 Collection, Treatment and Disposal Cost – Comparison of Budget to Actual (cont’d) For the Year Ended June 30, 2015 Collection, Treatment & Disposal Costs = $141.5 Million Increase of $1.5 M or 1.1% over prior year: •Salaries and Benefits increased $2.3 M, or 2.5% Salaries increased $1.2 M, or 1.9 percent due to existing bargaining agreements as total authorized staffing levels were reduced by 2.0 FTE’s to 624.0 in FY 2014-15. Benefit costs increased $1.1 M primarily consisting of increased retirement ($0.4 M), group insurances ($0.4 M), and workers’ comp. (-$0.3M). •Repair Materials & Services increased $1.5 M, or 17.6% Increase is due to digester cleanings completed this year when no cleanings were done in the prior year, repair of two gas compressors, and the startup of Central Generation Engine overhauls. •Electricity increased $0.8 M, or 16.5% Increase is due primarily due to increased electricity rates. •Legal Services increased $0.4 M, or 30.0% Increase is primarily litigation costs in enforcing wastewater discharge regulations. Collection, Treatment & Disposal Costs = $141.5 Million (cont’d) •Property & General Liability decreased $0.4 M, or 45.0% The decrease is reflective of the improvement in the insurance market and the decline in insurance premiums. •Safety Equipment and Tools decreased $0.2 M, or 30.6% The decrease is reflective of the gas detection monitors purchased for field staff in the prior year. •Cost allocation increased $2.9 M, or 1.1% Cost allocation out to the capital improvement program (CIP) increased as a result of the increase in the overall CIP from prior years and the resulting shift of indirect costs used to support Operations. Cost Per Million Gallons Increased Costs Associated with Moving to Full Secondary Treatment Standards and Providing the Most Optimum Treated Water for GWRS Fiscal Year Auditor’s Report Unmodified opinion on Financial Statements No report on Internal Controls as no material weaknesses or significant deficiencies were uncovered. Questions?