omprehensive nnual inancial eport FISCAL YEARS ENDED June 30, 2014 and 2013 Upper District
omprehensive nnual inancial eport FISCAL YEARS ENDED June 30, 2014 and 2013  Upper District
Comprehensive Annual Financial Report Fiscal Years Ended June 30, 2014 and 2013 UPPER SAN GABRIEL VALLEY MUNICIPAL WATER DISTRICT 602 E. Huntington Drive, Suite B Monrovia, California 91016 Prepared by: Finance and Administration Department
Comprehensive Annual Financial Report Fiscal Years Ended June 30, 2014 and 2013  UPPER SAN GABRIEL VALLEY MUNICIPAL WATER ...
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Upper San Gabriel Valley Municipal Water District Table of Contents PAGE INTRODUCTORY SECTION (Unaudited) Letter of Transmittal GFOA Certificate of Achievement Organizational Chart FINANCIAL SECTION Independent Auditors’ Report Management’s Discussion and Analysis (Unaudited) i xi xii 1 3 BASIC FINANCIAL STATEMENTS Statements of Net Position Statements of Revenues, Expenses and Changes in Net Position Statements of Cash Flows Notes to the Financial Statements 8 9 10 12 REQUIRED SUPPLEMENTARY INFORMATION (Unaudited) Schedule of Funding Progress – CalPERS and OPEB 27 STATISTICAL SECTION (Unaudited) Statistical Section – Table of Contents Changes in Net Position Net Position by Component Operating Revenues by Major Source Operating Expenses by Activity Imported Water Deliveries Imported Water Rates and Charges Water Rates per Acre-Foot Treated Water Sales by Customer Demographics and Economic Statistics – Los Angeles County Ten Largest Employers in Los Angeles County Operating Indicators – General Operating Indicators – Water Conservation Ultra-Low Flush and High-Efficiency Toilets Distributed 28 29 30 31 32 33 34 35 36 37 38 39 40 41
Upper San Gabriel Valley Municipal Water District Table of Contents  PAGE INTRODUCTORY SECTION  Unaudited  Letter of Trans...
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Introductory Section
Introductory Section
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December 16, 2014 Board of Directors: Anthony R. Fellow, Ph.D., Division 1 Charles M. Treviño, Division 2 Ed Chavez, Division 3 Michael Touhey, Division 4 Bryan Urias, Division 5 The Honorable Board of Directors Upper San Gabriel Valley Municipal Water District The Upper San Gabriel Valley Municipal Water District (the Upper District) staff is pleased to present the Upper District’s Comprehensive Annual Financial Report (CAFR) for the fiscal years ended June 30, 2014 and 2013. This report is prepared in accordance with the guidelines set forth by the Governmental Accounting Standards Board (GASB). Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control established for this purpose. Because the cost of internal control should not exceed anticipated benefits, this effort provides reasonable, rather than absolute, assurance that the financial statements contain no material misstatements. Vasquez & Company LLP, Certified Public Accountants, has issued an unmodified (“clean”) opinion on the financial statements for the years ended June 30, 2014 and 2013. The independent auditors’ report is located at the front of the financial section of this report. The CAFR consists of five parts, all of which are part of this package: 1) Introductory Section that includes this letter of transmittal, 2) Financial Section, including the management’s discussion and analysis (MD&A) that provides a narrative introduction, overview and analysis of the basic financial statements, 3) Basic Financial Statements, 4) Required Supplementary Information, and 5) Statistical Section. The MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of the Upper District History The Upper District, formed by voters in the San Gabriel Valley on December 8, 1959 to help solve water problems in the rapidly developing San Gabriel Valley, was incorporated on January 7, 1960. On March 12, 1963, residents of the District voted to annex to the Metropolitan Water District of Southern California (MWD), to provide supplemental water, first from the Colorado River and later the State Water Project, to replenish local groundwater supplies. The Upper District played a vital role in determining water rights within the Main San Gabriel Basin by acting as plaintiff in the 1973 court case of the Upper San Gabriel Valley Municipal Water District, Plaintiff, v. City of Alhambra, et al, Defendants. This case brought about the creation of the Main San Gabriel Basin Watermaster (Watermaster), ordered by the court to administer and enforce provisions of the Judgment.
December 16, 2014  Board of Directors  Anthony R. Fellow, Ph.D., Division 1 Charles M. Trevi  o, Division 2 Ed Chavez, Div...
Contaminants such as volatile organic compounds (VOCs) were first discovered in local water supply wells in 1979. The Upper District also played a role in establishing groundwater cleanup programs and eventually the Water Quality Authority which now oversees the cleanup of the groundwater basin. Mission The Upper District aims to provide a reliable, sustainable, diversified and affordable portfolio of high quality water supplies to the San Gabriel Valley including, but not limited to, water conservation, recycled water, storm water capture, storage, transfers, and imported water. The Upper District’s goal is to pursue this mission in a manner that is responsive to the public while protective of the environment. Service Area Five elected Directors, each serving a 4-year term and representing a designated geographic area within the Upper District's boundaries, govern the Upper District. Additionally, as a member agency of the MWD, the Upper District appoints one representative to sit on the MWD Board of Directors. The Upper District also has representation on the San Gabriel Basin Water Quality Authority and the Watermaster Boards. Most of the water imported into the Upper District service area is used to replenish the Main San Gabriel Groundwater Basin. A small percentage is purchased by city water departments and private water utilities for direct sale to customers. ii
Contaminants such as volatile organic compounds  VOCs  were first discovered in local water supply wells in 1979. The Uppe...
Upper District Board of Directors Division 1 – Director Dr. Anthony R. Fellow Representing all or parts of Arcadia, Bradbury, El Monte, Monrovia, Rosemead and Temple City Division 2 – Director Charles M. Treviño Representing all or parts of Arcadia, Rosemead, San Gabriel, South Pasadena, South San Gabriel and Temple City Division 3 – Director Ed Chavez Representing all or parts of Avocado Heights, Bassett, City of Industry, Hacienda Heights, La Puente, North Whittier, Spy Glass Hill, South El Monte, Valinda and West Covina Division 4 – Director Michael Touhey Representing all or parts of Azusa, Covina, Glendora, Irwindale and West Covina Division 5 – Director Bryan Urias Representing all or parts of Baldwin Park, Duarte, El Monte and Irwindale Local Economy California’s economy showed signs of recovery in 2011 from the deep recession that began in 2008. Now on its fourth year of recovery, state unemployment rate is falling, the housing market is improving and, for the first time in years, budget surpluses are anticipated. Between 2007 and 2010, California lost more than 1.3 million jobs. By March 2014, California had recovered about 93% of the jobs lost during the recession, with experts predicting an annual employment growth rate of 1.8% iii
Upper District Board of Directors  Division 1     Director Dr. Anthony R. Fellow Representing all or parts of Arcadia, Bra...
and 2.1% in 2014 and 2015, respectively. During the next two years, California’s economy is projected to grow by 2.8% in 2014 and by 3.5% in 2015. By the end of fiscal year 2014/15, a $5.6 billion surplus is projected under current policies. Los Angeles County’s economy is expected to continue moving forward in 2014 and subsequent years, with nonfarm jobs showing a gain of 2.1% during the first quarter of 2014. Total taxable sales are anticipated to increase by 5.3 % in 2014 and by 6.1% in 2015. Overall, county economy is forecasted to see accelerated growth in the next 18 months. The San Gabriel Valley (Valley) economy showed modest growth in recent years. Population growth in 2013 was accompanied by robust gains in jobs and payroll. Employment in the Valley increased by approximately 2% during the same year. Total taxable sales made a significant improvement and are projected to surpass the pre-recession peak of $22.2 billion by the end of 2014. In the housing market, median prices continue to rise due to limited supply. However, higher interest rates and declining affordability are starting to show a dampening effect on buyer activity. San Gabriel Valley’s strong cultural and business ties to the Asia-Pacific region continues to provide a significant economic advantage, making it one of the main destinations of the growing Chinese direct investments into the Los Angeles County. Major Initiatives Consistent with its mission, the Upper District strives to help local retail water providers manage their water supply safely and cost-effectively by improving water quality and increasing supply reliability. This is a challenging goal because factors such as climate, legislation, regulations, government policy, economics, population and market demand change and, thus, affect the Upper District's planning and operations. The Upper District's primary function has been to provide supplemental water to its retail water providers, sourced from the State Water Project, the Colorado River, and more recently, in the form of recycled water. Integrated Resources Plan (IRP) In May 2011, the Board authorized the preparation of the San Gabriel Valley’s first Integrated Resources Plan (IRP). The IRP, completed in 2012, defines a long term strategy for investments in a balanced portfolio of water supplies that are reliable and affordable in the long term. The Upper District is currently implementing the strategy defined in the IRP, which includes the Recycled Water Program described below. In February 2014, the Board awarded a contract to develop a surface water/groundwater modeling tool to assist the Upper District with the planning and implementation of the options and strategies developed in the IRP. The California Water Foundation is contributing half of the contract costs to develop the surface water/groundwater model for the Upper District. The IRP will be updated regularly to adapt to changing conditions. The Upper District strives to work with all stakeholders to implement innovative conservation, recycling and storm water capture projects to improve long-term water supply reliability. Recycled Water Program Recycled water is a key part of the Upper District's overall strategy of supplementing local water supplies. Recycled water is being used throughout California to irrigate golf courses, parks, freeway landscaping and crops. It is also being used to replenish groundwater basins, to serve as a barrier to seawater intrusion, and by industry for cooling processes and other purposes. Recycled water iv
and 2.1  in 2014 and 2015, respectively. During the next two years, California   s economy is projected to grow by 2.8  in...
directly offsets the need to import increasingly expensive water that is pumped from the sensitive Bay-Delta ecosystem. The Upper District’s success in proactively advancing water recycling is largely attributable to the support of its partners: the United States Bureau of Reclamation (USBR); State Water Resources Control Board; Metropolitan Water District; Sanitation Districts of Los Angeles County; Watermaster, local retail water providers and many others who have contributed to the successful development of recycled water in the San Gabriel Valley. Indirect Reuse Action Plan (IRAP)/ Indirect Reuse Replenishment Project (IRRP) On December 6, 2011, the Board adopted an Indirect Reuse Action Plan (IRAP), which set forth specific tasks to advance a major project, the Indirect Reuse Replenishment Project (IRRP). The IRRP involves the use of highly treated recycled water for groundwater recharge. Immediate work tasks were identified for implementation. These tasks include: research to identify the most appropriate treatment technology; pipeline right-of-way study; a USBR Title XVI feasibility analysis; and a financing plan. A preliminary pipeline right-of-way study was completed in 2012. Pilot testing of alternative treatment technologies is underway and will be completed in late 2014. Results of the pilot testing will be compiled as part of the required Engineer’s Report for project permit. Preparation of the USBR Title XVI feasibility analysis has begun and will be complete in late 2014. In May 2014, the Upper District awarded a contract for the design update of the IRRP pump station and pipeline. We expect the design for the project to be complete by late 2015. Once constructed, the IRRP will provide 10,000 acre-feet or more of highly treated recycled water for groundwater replenishment annually and will reduce the San Gabriel Valley’s dependence on increasingly expensive and unreliable imported supplies pumped from the fragile Bay Delta ecosystem. Direct Reuse The Direct Reuse Program includes the phased construction of a recycled water distribution system used to provide water for irrigation purposes. Over $51 million has been invested to construct a direct reuse recycled water distribution system consisting of more than 24 miles of distribution pipeline. The major components of the direct reuse system are summarized below. All components of the system are in service with the exception of the last two customer retrofit phases of the City of Industry project which will be complete in late 2014. Whittier Narrows The Upper District's Whittier Narrows Water Recycling Project supplies the 2,500 acre Whittier Narrows Recreation Area with about 400 million gallons of recycled water each year. The recycled water provides irrigation for a large public park, soccer, baseball and softball fields as well as the 18-hole Whittier Narrows Golf Course. South El Monte High School In 2007, the Upper District converted South El Monte High School to recycled water for irrigating campus green areas and athletic fields. Recycled water used at the high school conserves nearly 17 million gallons of drinking water each year, enough to supply about 100 households. Rose Hills Memorial Park In early 2006, the Upper District converted Rose Hills Memorial Park to recycled water for irrigation purposes. Prior to using recycled water, Rose Hills used approximately 194 million gallons per year or about 500,000 gallons per day of drinking water for irrigation. By using recycled water, Rose Hills now saves enough drinking water in a year to supply about 1,200 v
directly offsets the need to import increasingly expensive water that is pumped from the sensitive Bay-Delta ecosystem. Th...
average single-family homes. As part of this project, an additional 21 million gallons of recycled water per year are provided to Rio Hondo College, Mill Elementary School and Gateway Pointe Industrial Park for irrigation purposes. With the approval of AB 803 at the state level, allowing the use of hose bibs at cemeteries, the Upper District will coordinate with Rose Hills Memorial Park to expand the recycled water system and serve an additional 600 acre-feet per year. This effort will require approximately $1M in design and construction costs. Rosemead Extension The San Gabriel Valley Water Recycling Project Phase IIA - Rosemead Extension consists of recycled water pipelines extending north and west from the Whittier Narrows Recreation Area to supply approximately 98 million gallons of recycled water per year to Southern California Edison corporate headquarters, Panda Express corporate headquarters, Walmart and several nurseries, schools, and businesses. City of Industry In 2010, the Upper District's City of Industry Water Recycling Project began providing recycled water for irrigation purposes by extending an existing recycled water pipeline, stretching from the City of Industry through Hacienda Heights, to West Covina. Upon completion of the final customer retrofit phase of the project in late 2014, the project will supply more than 400 million gallons of recycled water per year for irrigation to a landfill, golf course, baseball complex, schools, parks, medians, and green belts in the San Gabriel Valley. Storm Water The Upper District participates in the following storm water projects: Peck Water Conservation Improvement Project This project is currently under design by the Los Angeles Flood Control District (LAFCD) and will start construction in late 2014. The project includes construction of a pump station at the spreading basin to convey flows to the San Gabriel River and increase groundwater recharge in the Main San Gabriel Basin. Walnut Creek Spreading Basin Improvement Project The project will install two pumps to drain the facility to improve percolation rates and convey water to other downstream flood control facilities with better percolation rates. LACFCD has completed the design of the Walnut Creek project, with construction scheduled to start in late 2014 and a total project value of $2.4 million. MillerCoors Storm Water Capture Project The Upper District facilitated several meetings with Vulcan, MillerCoors, the LACFCD and Watermaster to determine feasible means of including MillerCoors’ east pit as part of the LACFCD storm water capture system. LACFCD, Vulcan, and MillerCoors are discussing the most feasible means to develop a storm water capture facility that meets the needs of all parties. In February 2014, the Upper District awarded a contract for the development of a feasibility study funded by the California Water Foundation. The study is aimed to identify treatment train alternatives to produce high quality reuse water for on-site irrigation, process water, and for groundwater replenishment. Up to 1,000 acre-feet of facility waste flow is available as a source of potential water reuse on-site. vi
average single-family homes. As part of this project, an additional 21 million gallons of recycled water per year are prov...
Neighborhood Storm Water Project The Neighborhood Storm Water Project is currently funded by the California Water Foundation. Preliminary efforts will include ranking and identifying the top project in the Upper District’s service area, developing a feasibility study and preliminary design for the selected project. Water Use Efficiency The IRP calls for additional investment in water use efficiency to reduce water use by an additional 5,000 acre-feet per year. In August 2012, the Board of Directors adopted a Water Use Efficiency (WUE) Master Plan. The WUE Master Plan was developed to provide a goal-oriented, performancebased and cost-effective strategy for a practical, long-term approach to design and implement water use efficiency measures. Water Conservation and Education Water conservation is an important and low-cost method of preserving our water supply and is a critical part of an effective water supply program. In California and the San Gabriel Valley, cities, water companies, utilities and water districts are deeply involved in conservation efforts and public education that promote water conservation. Informing residents and employers about water use efficiency is the top priority of the Upper District's public education program. Residential Programs High Efficiency Toilet (HET) Retrofit Program - In 2014, a total of 3,472 HETs were distributed. During the fiscal year, the Upper District provided a total of $173,600 in incentive payments to the producers for this program from MWD’s Conservation Credits Program. Residential Rebate Program - Through MWD’s So Cal Water Smart Regional Rebate Program, the Upper District residents are offered rebates for retrofitting several types of high water-use fixtures/equipment with water efficient devices. Rebate items include: HighEfficiency Clothes Washers (HECWs), Weather-Based Irrigation Controllers (WBICs), and Rotating Sprinkler Nozzles. Rebates for residential devices provided during the fiscal year ended June 30, 2014 will produce approximately 642 acre feet (209 million gallons) of lifetime water savings. Commercial, Industrial and Institutional (CII) Programs CII Rebate Program - Through the Save Water, Save A Buck Program, Southern California businesses are eligible for rebates to help encourage water use efficiency and conservation. This program offers cash rebates on a wide variety of water-saving technologies including High-Efficiency Toilets and Urinals, WBICs for outdoor landscaping, as well as many industry-specific water conserving devices. Rebates for CII devices provided during the fiscal year 2013/14 will produce approximately over 135 acre feet (44 million gallons) of lifetime water savings. Landscape Programs Large Landscape Survey and Retrofit Program - The objective of the Large Landscape Survey and Retrofit Program is to actively increase large landscape irrigation efficiency at CII sites. The program offers free irrigation assessments to large landscaped CII sites in the Upper District’s service area. As part of the program, the Upper District offers some funding to pay for implementing survey recommendations. During the fiscal year ended June 30, 2014, 19 surveys and 38 retrofits have been completed, with cumulative lifetime water savings of approximately 33 acre feet (11 million gallons). vii
Neighborhood Storm Water Project The Neighborhood Storm Water Project is currently funded by the California Water Foundati...
Wireless Soil Moisture Sensor Demonstration Project - Five potential school sites have been identified as good locations to install wireless moisture sensor technology to demonstrate significant water use savings. Sustainable Landscape Demonstration Program - To better integrate and communicate the need for low impact, sustainable outdoor landscaping, this program will convert high-waterneed landscaping in five public spaces to drought tolerant and low impact gardens. Five sites (one demonstration site located in each division) have been selected with the intent of reducing the sites’ water footprint by installing high-efficiency irrigation equipment and lowwater-use plants. Sites will be constructed in visible and accessible public locations to provide a focus point for the community that demonstrates sustainable landscaping. The project will also demonstrate the benefits of on-site storm water retention and capture. Education and Community Outreach Programs Watershed Restoration Program - This program is a cooperative partnership between the Upper District and the U.S. Forest Service that incorporates volunteers into efforts to protect and maintain the local watershed. Program activities typically include collection of native seeds, planting of saplings and trash removal. Since the program began in 1991, about 136,400 saplings and thousands of acres of chaparral have been planted. 4th - 6th Grade Sustainable Watershed Education Program - 2014 marks the second year that the Upper District partners with the Discovery Science Center (DSC) and THINK Together. The partnership aims to provide 4th-6th grade student curriculum that focuses on water use efficiency, highlights watershed issues, and groundwater awareness. Offered free to participating schools, the program includes interactive assemblies for fourth and fifth graders and in-class hands-on workshops for sixth graders. Schools that currently work with THINK Together to provide afterschool instruction will also benefit. THINK Together offers afterschool instruction that complements and expands the in-school curriculum associated with water-related topics. During fiscal year 2013/14, 4,527 students participated in the assemblies and hands-on workshops. Water Efficient Landscape Classes - Throughout the year, a number of water efficient landscaping and gardening courses are offered, free of charge, to the public. Courses have been offered in both Spanish and English. As of June 30, 2014, over 1,000 people have participated in these classes since its inception in 1992. Solar Cup - A youth program sponsored by MWD, Solar Cup provides high school teams the hands-on opportunity to build solar powered boats that they compete in race and endurance categories. This three-day event is the culmination of several months of planning and building that offers student participants an opportunity to learn about natural resources, the development/use of alternative fuel sources, the protection of water quality, as well as program management skills. The Upper District has sponsored 39 teams since the program began in 2003. Water Awareness Art Contest - The Upper District’s “Water is Life” art contest inspires students to think about how important water is to all life and encourages youth to express the value of water through their artwork. The contest has 4 categories: K-2, 3-5, 6-8 and 9-12th grade. viii
Wireless Soil Moisture Sensor Demonstration Project - Five potential school sites have been identified as good locations t...
Water Education Grant Program - This program offers up to $1,000 grants for a classroom or school project from K-12th grade that furthers a better understanding of water as a vital resource and the important role it plays in Southern California. The program began in 2004 and to date, 71 applicants have been awarded a total of $53,000 in grants. Relevant Financial Policies Internal Control Structure Management is responsible for establishing and maintaining an internal control structure that ensures that assets are protected from loss, theft, or misuse. The internal control structure also ensures that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (a) the cost of a control should not exceed the benefits likely to be derived, and (b) the valuation of costs and benefits requires estimates and judgments by management. Investment Policy Annually, the Board of Directors adopts an investment policy consistent with the requirements of the California Government Code. In order of priority, three fundamental criteria are followed by the Upper District in the investment program: (a) Safety of Principal - Investments shall be undertaken in a manner that first seeks to ensure the preservation of principal in the portfolio. Each investment transaction shall be entered into after taking into consideration the quality of the issuer, the underlying security or collateral, and diversification of the portfolio. (b) Liquidity - Investments shall be made so that the maturity date is compatible with cash flow needs and safety of principal. (c) Return on Investment - Investments shall be undertaken to produce an acceptable rate of return after first considering safety of principal and liquidity and the prudent investor standard. During fiscal year 2013/14, all funds were invested in accordance to the Upper District’s investment policy. Budget Process and Controls Prior to the beginning of each fiscal year, the Upper District adopts an annual budget as a management tool for planning and control purposes. As part of its budget process, the Upper District conducts budget workshops to encourage stakeholder participation and input prior to adoption of the final budget. Monthly financial statements showing budget-to-actual comparison and analysis are presented to the Board of Directors. Water Rates Pursuant to Water Code Section 71614 et seq., the Upper District establishes water rates and charges through a resolution by the Board of Directors. Prior to adoption of the water rates and charges, workshops are held to solicit input from all stakeholders. ix
Water Education Grant Program - This program offers up to  1,000 grants for a classroom or school project from K-12th grad...
Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Upper District for its CAFRs for the fiscal year ended June 30, 2013. This was the third consecutive year that the Upper District has achieved this prestigious award. In order to be awarded a Certificate of Achievement, the Upper District had to publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable program requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. However, we believe that our current CAFR continues to meet the Certificate of Achievement for Excellence in Financial Reporting Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report was accomplished by the combined efforts of the Upper District staff. We appreciate the dedicated efforts and professionalism that our staff members bring to the Upper District. We would also like to thank the members of the Board of Directors for their continued support in the planning and implementation of the Upper District’s fiscal policies. Respectfully submitted, Shane Chapman General Manager Evelyn M. Rodriguez Chief Financial Officer x
Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada  GFOA  awarded a C...
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Upper San Gabriel Valley Municipal Water District Organizational Chart Board of Directors General Counsel General Manager Chief Financial Officer Assistant Director of Finance Assistant General Manager / Chief Engineer Conservation Coordinator Director of Community and Government Affairs Community and Government Affairs Project Assistant Executive Assistant Administrative Assistant Secretary / Receptionist Project Assistant (1/2 FTE) xii
Upper San Gabriel Valley Municipal Water District Organizational Chart  Board of Directors  General Counsel  General Manag...
Financial Section
Financial Section
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Report of Independent Auditors The Honorable Members of the Board of Directors Upper San Gabriel Valley Municipal Water District Report on the Financial Statements We have audited the accompanying financial statements of the Upper San Gabriel Valley Municipal Water District (the Upper District) as of and for the years ended June 30, 2014 and 2013, and the related notes to the financial statements, which collectively comprise the Upper District’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of the Upper District as of June 30, 2014 and 2013, and the changes in financial position, and cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Report of Independent Auditors  The Honorable Members of the Board of Directors Upper San Gabriel Valley Municipal Water D...
Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 3 through 7, and the required supplementary information on page 27, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Upper District’s basic financial statements. The introductory section and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 16, 2014, on our consideration of the Upper District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Upper District’s internal control over financial reporting and compliance. Los Angeles, California December 16, 2014
Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America ...
Upper San Gabriel Valley Municipal Water District Management’s Discussion and Analysis June 30, 2014 and 2013 The following Management's Discussion and Analysis (MD&A) provides an overview of the financial performance and activities of the Upper San Gabriel Valley Municipal Water District (the Upper District) for the fiscal years ended June 30, 2014 and 2013. We encourage readers to consider the information presented here in conjunction with the transmittal letter in the Introductory Section and with the basic financial statements and related notes, which follow this section. Required Financial Statements The Upper District is a wholesale water utility enterprise and presents its financial statements using the economic resources measurement focus and the full accrual basis of accounting. As an enterprise fund, the Upper District's basic financial statements include the statements of net position, statements of revenues, expenses and changes in net position and statements of cash flows. The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statement of net position presents information on all of the Upper District's assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Upper District is improving or deteriorating. The statement of revenues, expenses and changes in net position presents information showing how the Upper District's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are recognized on the accrual basis. The statement of cash flows is related to the other financial statements by the way it links changes in assets and deferred outflows of resources and liabilities and deferred inflows of resources to the effect on cash and cash equivalents over the course of the fiscal year. The notes to the financial statements provide useful information regarding the Upper District's significant accounting policies, and they explain significant account balances and activities, certain material risks, obligations, commitments, contingencies and subsequent events, if any. Financial Highlights  Water revenue and related water purchased cost increased significantly in fiscal year 2013/14 mainly from the producers’ pre-purchases of untreated water for cyclic storage.  The Upper District engaged the services of an external investment manager in fiscal year 2013/14 and shifted about half of the funds previously held in the Local Agency Investment Fund (LAIF) to enhance investment return, while staying consistent with the Upper District’s investment policy.  Construction activities for the San Gabriel Valley Water Recycling Program Phase IIB City of Industry Recycled Water Project (City of Industry Project), partially funded by State Revolving Fund and American Recovery and Reinvestment Act (ARRA) monies, was substantially completed in fiscal year 2013/14. More information on the financial statement variances is covered in the next sections. 3
Upper San Gabriel Valley Municipal Water District Management   s Discussion and Analysis June 30, 2014 and 2013 The follow...
Upper San Gabriel Valley Municipal Water District Management’s Discussion and Analysis June 30, 2014 and 2013 Financial Analysis of the Upper District The statements of net position and the statements of revenues, expenses and changes in net position report provide an indication of the Upper District’s financial health. It provides a basis for evaluating the capital structure and assessing the liquidity and financial flexibility of the Upper District. The following tables summarize the Upper District’s financial condition and the changes in its net position for the past three years. Statements of Net Position Condensed Statements of Net Position Assets Current assets Investments Capital assets, net Total assets 2014 (in thousands) $ 11,110 7,244 52,950 71,304 Liabilities Current liabilities Noncurrent liabilities Total liabilities Deferred Inflows of Resources Net Position Net investment in capital assets Unrestricted Total net position $ Change June 30 2014/2013 2013/2012 2013 2012 Dollar Dollar (in thousands) (in thousands) (in thousands) Percentage (in thousands) Percentage $ 19,806 $ 18,555 $ (8,696) -43.9% $ 1,251 6.7% 0 0 7,244 100.0% 0 0.0% 51,650 41,032 1,300 2.5% 10,618 25.9% 71,456 59,587 (152) -0.2% 11,869 19.9% 2,159 13,186 15,345 1,621 13,466 15,087 2,250 4,274 6,524 538 (280) 258 33.2% -2.1% 1.7% (629) 9,192 8,563 -28.0% 215.1% 131.3% 82 174 265 (92) -52.9% (91) -34.3% 40,766 15,111 55,877 39,195 17,000 56,195 37,582 15,216 52,798 1,571 (1,889) (318) 4.0% -11.1% -0.6% $ $ $ $ 1,613 1,784 3,397 4.3% 11.7% 6.4% As shown above, the Upper District's total assets exceeded liabilities and deferred inflows of resources by $55.88 million, $56.20 million and $52.80 million as of June 30, 2014, 2013 and 2012, respectively, or a decrease in net position of $0.32 million between 2014 and 2013 and an increase in net position of $3.40 million between 2013 and 2012. Assets In 2014, the Upper District engaged the services of an external investment manager and shifted about half of the funds previously held in LAIF to other investment securities. As of June 30, 2014, approximately $7.24 million of Upper District funds are held in investment securities, decreasing current assets accordingly. The increase in current assets of about $1.25 million from 2012 to 2013 is primarily attributable to amounts receivable from the USBR representing final reimbursements from Title XVI and ARRA grants. For fiscal years ended June 30, 2014 and 2013, the Upper District’s capital assets increased by $1.30 and $10.62 million, respectively, from prior years as IRRP efforts and construction activities for the City of Industry Project continued. Liabilities 4
Upper San Gabriel Valley Municipal Water District Management   s Discussion and Analysis June 30, 2014 and 2013 Financial ...
Upper San Gabriel Valley Municipal Water District Management’s Discussion and Analysis June 30, 2014 and 2013 As of June 30, 2013, the Upper District’s current liabilities decreased by $0.63 million from the prior year due to lower project related payables as construction activities for the City of Industry Phase IIB Recycled Water Program began to wind down. The increase in current liabilities during 2014 is mainly due to IRRP project costs. Noncurrent liabilities increased by $9.19 million in 2013 mainly due to additional loan funds received from the State Water Resources Control Board. In 2014, the Upper District began paying down the state loan, reducing noncurrent liabilities by $0.28 million from prior year. Net Position A large portion of the Upper District’s net position consists of net investment in capital assets. Capital assets are used by the Upper District to provide services to its customers and are, therefore, not available for spending. Consequently, as the Upper District continued to invest in its recycled water program to improve water supply reliability, unrestricted net position will generally decrease. Statements of Revenues, Expenses and Changes in Net Position The statements of revenues, expenses and changes in net position provide information on the nature and sources of these changes. For the fiscal year ended June 30, 2014, the Upper District’s net position decreased by $0.32 million. For the fiscal year ended June 30, 2013, the Upper District’s net position increased by $3.40 million as shown by the table below. Condensed Statements of Revenues, Expenses and Changes in Net Position Change Years ended June 30 2014 2013 (in thousands) Water Revenue $ 2014/2013 26,259 2012 Dollar (in thousands) (in thousands) (in thousands) $ 12,395 $ 2013/2012 Dollar 14,714 $ Percentage 13,864 111.9% (in thousands) $ Percentage (2,319) -15.8% -41.4% Water Conservation 245 195 333 50 25.6% (138) Other Operating Revenues 187 247 269 (60) -24.3% (22) -8.2% Total operating revenues 26,691 12,837 15,316 13,854 107.9% (2,479) -16.2% Total operating expenses 30,869 17,338 19,233 13,531 78.0% (1,895) -9.9% (4,178) (4,501) (3,917) 323 -7.2% (584) 14.9% 3,585 3,542 Operating income (loss) Standby charges Nonoperating program expenses (524) Investment earnings, taxes, others 43 1.2% 467 -47.1% (34) 1,315 -1.0% -57.0% 451 Beginning net position 31 7.4% 18 4.5% 1,672 541 18.2% 1,299 77.7% 348 Change in net position 402 2,971 4,927 1,645 (4,579) -92.9% 3,282 199.5% (318) Capital contributions 420 3,512 Net nonoperating revenues Ending net position 3,576 (2,306) (991) 3,397 (3,715) -109.4% 3,997 -666.2% 56,195 $ 55,877 (600) 52,798 $ 56,195 53,398 $ 52,798 3,397 $ (318) 6.4% -0.6% (600) $ 3,397 -1.1% 6.4% Operating Revenues The temporary ability of the Upper District’s customers to lease groundwater from the cities of Alhambra, Monterey Park and Azusa rather than purchase replacement water available from MWD and the Upper District as per the Judgment and Watermaster’s Rules and Regulations, resulted in significantly lower than anticipated sale of imported water for groundwater recharge during the fiscal year ended 2012/13. Consequently, operating revenues as of June 30, 2013 decreased by 16% or $2.48 million from prior year. During fiscal year 2013/14, Watermaster initiated a routine annual prepurchase of imported water to meet future replacement obligations and build storage, purchasing 5
Upper San Gabriel Valley Municipal Water District Management   s Discussion and Analysis June 30, 2014 and 2013 As of June...
Upper San Gabriel Valley Municipal Water District Management’s Discussion and Analysis June 30, 2014 and 2013 roughly 31,300 acre feet of untreated water. Consequently, operating revenues as of June 30, 2014 increased by 107.9% or $13.85 million from 2013. Nonoperating Revenues/Expenses and Capital Contributions Nonoperating revenues, consisting of standby charges, investment earnings and taxes, remained relatively stable during fiscal years ended June 30, 2014 and 2013. The substantial completion of the Water Use Efficiency Master Plan, the Integrated Resources Plan and grant reimbursements to Sunny Slope in 2012 reduced nonoperating expenses by approximately $0.70 million in 2013 and another $0.38 million in 2014. Operating Expenses The Upper District purchases imported water from MWD and sets its rates based on MWD’s prevailing rates. For the years ended June 30, 2014 and 2013, purchased water cost increased by $12.14 million and decreased by $2.21 million, respectively. During 2014, Watermaster pre-purchased about 31,300 acre feet of imported water for groundwater replenishment, an increase of 160% or 19,300 acre feet from prior year. The lower than anticipated sale of untreated water during fiscal year 2012/13 is primarily due to historic fluctuations resulting from how the Main San Gabriel Basin was managed prior to Watermaster’s current commitment to pre-purchase an average of about 29,000 acre feet of imported water per year for groundwater recharge. Capital Asset Administration At June 30, 2014, 2013 and 2012, the Upper District’s investments in capital assets net of accumulated depreciation amounted to $52.95 million, $51.65 million and $41.03 million, respectively. The following is a summary of capital assets: Land Construction in progress Building and improvements Intangible utility plant Water recycling Source of supply Office furniture and equipment Less accumulated depreciation Net capital assets Change June 30 2014/2013 2013/2012 2014 2013 2012 Dollar Dollar (in thousands) (in thousands) (in thousands) (in thousands) Percentage (in thousands) Percentage $ 81 $ 81 $ 81 $ 0.0% $ 0.0% 6,639 32,583 27,191 (25,944) -79.6% 5,392 19.8% 560 560 560 0.0% 0.0% 583 583 583 0.0% 0.0% 49,124 20,878 15,203 28,246 135.3% 5,675 37.3% 95 95 95 0.0% 0.0% 643 577 530 66 11.4% 47 8.9% 57,725 55,357 44,243 2,368 4.3% 11,114 25.1% (4,775) (3,707) (3,211) (1,068) 28.8% (496) 15.4% $ 52,950 $ 51,650 $ 41,032 $ 1,300 2.5% $ 10,618 25.9% A significant portion of the construction in progress as of June 30, 2013 and 2012 is attributable to construction activities related to the Upper District’s recycled water projects. With the substantial completion of construction activities for the City of Industry Phase IIB Recycled Water Project in 2014, $28.25 million in construction costs were reclassified and reported as completed projects. For more information regarding the Upper District’s capital assets, please refer to Note 3 of the notes to financial statements. 6
Upper San Gabriel Valley Municipal Water District Management   s Discussion and Analysis June 30, 2014 and 2013 roughly 31...
Upper San Gabriel Valley Municipal Water District Management’s Discussion and Analysis June 30, 2014 and 2013 Long-term Debt Construction activities for the City of Industry Project were partially funded by State Revolving Fund (SRF) loan from the State Water Resources Control Board (SWRCB) which, as of June 30, 2014 and 2013, amounted to $12,183,607 and $12,455,676, respectively. Detailed information on the Upper District’s long-term debt is presented under Note 5 in the Notes to Financial Statements. Water Rates and Other Charges On July 2, 2013, the Board of Directors approved water rates and charges for the different classes of water effective on January 1, 2014 with no increase in District surcharge, just a pass through of the increase in MWD’s treatment surcharge. Please refer to page 35 of the statistical section for the Upper District’s water rates for the last ten fiscal years. On June 24, 2014, the Board of Directors approved the adoption of a water standby or availability of service charge at rates equal to prior year’s, $8.00 per acre of land or $8.00 for each parcel of land less than an acre within the Upper District’s service area. This charge generates approximately $1.66 million in revenues. Conditions Affecting Current Financial Position As California faced water shortfalls during the driest year in recorded state history, Governor Brown issued an official drought proclamation in January 2014 and directed state officials to take all necessary actions to prepare for drought conditions. With the State’s industrial and agricultural jobs base highly dependent on reliable and affordable water supplies and the residents’ quality of life closely linked to water, investment in secure, reliable and affordable water supplies is crucial for California’s economic growth. In response to extreme drought conditions, the Upper District ramped up efforts to accelerate delivery of the Indirect Reuse Replenishment Project. Once constructed, this project will provide 10,000 acre feet or more of recycled water for groundwater replenishment and reduce the Upper District’s dependence on increasingly expensive and unreliable imported water supplies. Requests for Information This financial report is designed to provide the Upper District's funding sources, customers, stakeholders and other interested parties with an overview of the Upper District's financial operations and overall financial condition. Should the reader have questions regarding the information included in this report or wish to request additional financial information, please contact the Upper District's Chief Financial Officer at 602 E. Huntington Drive, Suite B, Monrovia, California 91016. 7
Upper San Gabriel Valley Municipal Water District Management   s Discussion and Analysis June 30, 2014 and 2013 Long-term ...
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Basic Financial Statements
Basic Financial Statements
Upper San Gabriel Valley Municipal Water District Statements of Net Position June 30 ASSETS 2013 2014 Current assets Cash and cash equivalents Receivables Water sales Grants Other Prepaid items Total current assets $ 9,850,050 $ 994,478 3,248,201 153,655 49,229 19,805,784 1,056,393 48,916 100,618 53,850 11,109,827 Investments - 7,244,670 Capital assets Land and construction-in-progress Depreciable capital assets, net Net capital assets 15,360,221 LIABILITIES Current liabilities Accounts payable Metropolitan Water District Other Accrued liabilities Total current liabilities Noncurrent liabilities Due to State Water Resources Control Board Other postemployment benefits Compensated absences, net of current portion Total noncurrent liabilities Total liabilities 32,663,771 18,986,564 51,650,335 71,456,119 316,356 1,623,796 218,405 2,158,557 Total assets 6,719,515 46,229,994 52,949,509 71,304,006 350,983 1,134,384 136,121 1,621,488 12,183,607 986,347 16,251 13,186,205 12,455,676 986,347 23,987 13,466,010 15,344,762 15,087,498 82,530 174,006 40,765,902 15,110,812 55,876,714 39,194,659 16,999,956 56,194,615 DEFERRED INFLOWS OF RESOURCES Unearned revenue NET POSITION Net investment in capital assets Unrestricted Total net position $ See notes to the financial statements. 8 $
Upper San Gabriel Valley Municipal Water District Statements of Net Position  June 30 ASSETS  2013  2014  Current assets C...
Upper San Gabriel Valley Municipal Water District Statements of Revenues, Expenses and Changes in Net Position Years ended June 30 2013 2014 Operating revenues Water revenue Water conservation Other $ $ 12,395,427 195,001 246,923 12,837,351 Total operating revenues 26,259,217 245,001 187,084 26,691,302 Operating expenses Sources of supply Water quality and supply program Recycling costs Conservation Depreciation General and administrative Total operating expenses 22,657,332 2,439,285 781,299 1,322,358 1,068,086 2,601,032 30,869,392 10,524,787 1,813,586 1,079,603 776,378 495,789 2,648,452 17,338,595 Operating loss (4,178,090) (4,501,244) Nonoperating revenues (expenses) Standby charges Nonoperating program expenses Investment earnings Taxes Change in fair value of investments Net nonoperating revenues 3,584,423 (524,136) 31,838 416,441 3,054 3,511,620 3,542,467 (991,381) 40,710 379,079 2,970,875 Loss before contributions (666,470) (1,530,369) 348,569 4,927,048 (317,901) 3,396,679 Contributions for capital acquisitions/construction Change in net position Net position at beginning of year 52,797,936 56,194,615 Net position at end of year $ 55,876,714 See notes to the financial statements. 9 $ 56,194,615
Upper San Gabriel Valley Municipal Water District Statements of Revenues, Expenses and Changes in Net Position Years ended...
Upper San Gabriel Valley Municipal Water District Statements of Cash Flows Years ended June 30 2013 2014 Cash flows from operating activities Cash received from customers $ Cash payments to suppliers for goods and services Cash payments to employees for services Net cash provided by (used in) operating activities 29,776,023 $ (27,622,521) (1,654,073) 499,429 Cash flows from noncapital financing activities Cash received for property taxes Cash paid for nonoperating program expenses Cash received for standby charges Net cash provided by noncapital financing activities 10,227,702 (16,000,734) (1,289,308) (7,062,340) 416,441 (524,136) 3,595,174 3,487,479 379,079 (991,381) 3,577,641 2,965,339 (2,367,260) 76,500 (11,113,900) 13,932,514 Cash flows from capital and related financing activities Acquisition and construction of capital assets Capital contributions Net cash provided by (used in) capital and related financing activities Cash flows from investing activities Acquisition of investments Investment earnings Net cash provided by (used in) investing activities (2,290,760) 2,818,614 (7,241,616) 35,297 (7,206,319) 46,725 46,725 Change in cash and cash equivalents (5,510,171) Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year $ 15,360,221 9,850,050 See notes to the financial statements. 10 (1,231,662) $ 16,591,883 15,360,221
Upper San Gabriel Valley Municipal Water District Statements of Cash Flows  Years ended June 30 2013 2014 Cash flows from ...
Upper San Gabriel Valley Municipal Water District Statements of Cash Flows (Continued) Years ended June 30 2013 2014 Reconciliation of operating loss to net cash provided by (used in) operating activities Operating loss $ Adjustments to reconcile operating loss to net cash provided by (used in) operating activities: Depreciation expense Changes in operating assets and liabilities: Accounts receivable Prepaid items Accounts payable and accrued expenses Unearned revenue Net adjustments Net cash provided by (used in) operating activities $ (4,178,090) $ 1,068,086 3,176,197 (4,621) 529,333 (91,476) 4,677,519 499,429 $ See notes to the financial statements. 11 (4,501,244) 495,789 (2,518,173) (5,686) (441,550) (91,476) (2,561,096) (7,062,340)
Upper San Gabriel Valley Municipal Water District Statements of Cash Flows  Continued   Years ended June 30 2013 2014 Reco...
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of the Entity Upper San Gabriel Valley Municipal Water District (the Upper District), which comprises an area of approximately 144 square miles, was incorporated on January 7, 1960 under the provisions of the Municipal Water District Law of 1911, as amended, (now cited as “The Municipal Water District Law of 1911”, Division 20, California Water Code) as a result of a special election held on December 8, 1959. On March 12, 1963, the voters of the Upper District elected to join the Metropolitan Water District of Southern California and, on November 2, 1965, the citizens of West Covina voted to join the Upper District. Adjudication proceedings, which established the legal determination of water rights of individual pumpers in the area in relation to the safe yield of the total water basin, were completed on December 29, 1972. The decree established a Watermaster, the Main San Gabriel Basin Watermaster, who took over the function of levying and collecting the assessments that had previously been levied and collected by the Upper San Gabriel Valley Municipal Water District through its reimbursement contract and replenishment funds. The Upper District’s missions are: 1) to provide a reliable supply of high quality drinking water at the lowest possible cost; 2) to provide a drought-proof and economical supply of recycled water for industrial and irrigation uses; and, 3) to provide and complete projects that aggressively advance water use efficiency throughout the San Gabriel Valley. Basis of Accounting and Measurement Focus The Upper District is considered an enterprise fund for financial reporting purposes. The accompanying financial statements have been prepared using the economic measurement focus and the accrual basis of accounting. Under this basis of accounting and measurement focus, revenues are recognized when they are earned and expenses are recognized when they are incurred. The Upper District’s financial statements are presented in accordance with the provisions of GASB Statement No. 34 Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments as amended by GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and Audits of State and Local Governmental Units issued by the American Institute of Certified Public Accountants. Statement No. 34 established standards for external financial reporting for all state and local governmental entities. It requires the classification of net position into three components – net investment in capital assets; restricted; and unrestricted. These classifications are defined as follows: 12
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013  NOTE 1...
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)  Net investment in capital assets – This component of net position consists of capital assets, including restricted capital assets, net of accumulated depreciation reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. If there are significant unspent related debt proceeds at year-end, the portion of the debt attributable to the unspent proceeds are not included in the calculation of net investment in capital assets. Rather, that portion of the debt is included in the same net position component as the unspent proceeds.  Restricted – This component of net position consists of constraints placed on resources through external constraints imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation.  Unrestricted – This component of net position consists of resources that do not meet the definition of “restricted” or “net investment in capital assets.” The Upper District distinguishes operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with an entity’s ongoing operations. The Upper District defines operating revenues as those realized by the Upper District in exchange for providing its primary services for water sales and water programs including conservation and recycled water. Nonoperating revenues are those derived from the investment of cash reserves and from entities other than customers and other ancillary sources. During the fiscal year ended June 30, 2013, the District early implemented certain provisions of GASB No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position (GASB 63). This statement amends the net asset reporting requirements in GASB Statement No. 34 by incorporating deferred outflows of resources and deferred inflows of resources into the definitions of the required components of the residual measure and by renaming that measure as net position, rather than net assets. GASB 63 provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources. During the fiscal year ended June 30, 2013, the Upper District early implemented certain provisions of GASB No. 65, Items Previously Reported as Assets and Liabilities (GASB 65). GASB 65 establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. 13
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013  NOTE 1...
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Risk Management The Upper District is a member of the Association of California Water Agencies Joint Powers Insurance Authority (Insurance Authority). The Insurance Authority is a riskpooling, self-insurance authority, created under the provisions of California Government Code Sections 6500 et. seq. The purpose of the Insurance Authority is to arrange and administer programs of insurance for the pooling of self-insured losses and to purchase excess insurance coverage. At June 30, 2014, the Upper District participated in the self-insurance program of the Insurance Authority as follows: Property Loss – The Insurance Authority has pooled self-insurance up to $100,000 per occurrence and has purchased excess insurance coverage up to $100,000,000 (total insurable value of $5,971,672), with $25,000 deductible. General Liability – The Insurance Authority has pooled self-insurance up to $2,000,000 and has purchased excess insurance coverage up to $58,000,000. Auto Liability – The Insurance Authority has pooled self-insurance up to $2,000,000 per occurrence and has purchased excess insurance coverage up to $58,000,000. Public Officials’ Liability and Errors and Omissions - The Insurance Authority has pooled self-insurance up to $2,000,000 per occurrence and has purchased excess insurance coverage up to $58,000,000. Fidelity: Public Employee Dishonesty, Forgery or Alteration, Computer Fraud & ERISA – The Insurance Authority has pooled self-insurance up to $100,000 per occurrence, with $1,000 deductible. Workers’ Compensation - The Insurance Authority has pooled self-insurance up to $2,000,000 each for workers’ compensation and employers’ liability. The employers’ liability is insured up to $2,000,000 in excess of $2,000,000 Self-Insured Retention. Workers’ compensation is insured up to the statutory limit. Cash and Cash Equivalents For purposes of the statements of cash flows, cash and cash equivalents have been defined as deposits and highly liquid investments with maturity of 90 days or less at the date of purchase. 14
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013  NOTE 1...
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Capital Assets and Depreciation Capital assets are recorded at cost. The provision for depreciation is computed using the straight-line method over the estimated service lives of the capital assets. The Upper District uses differing capitalization thresholds for the classes of assets based on materiality. The Upper District’s policy is to review for capitalization those expenditures greater than $500 that have a useful life of more than one year. Estimated service lives for the Upper District’s classes of assets are as follows: Distribution system Building Building improvements Furniture and equipment 50 years 50 years 10 - 15 years 5 - 10 years Unearned Revenue Unearned revenue is water revenue paid by customers as well as rental revenue paid by a lessee in the current period but is yet to be earned by the Upper District. Compensated Absences The Upper District's policy is to permit employees to accumulate a limited amount of earned vacation and sick leave. Accumulated vacation time is accrued at year-end to account for the Upper District's obligation to the employees for the amount owed. It is management's belief that the majority of the obligation will be utilized during the course of the next fiscal year. Vacation pay is payable to employees at the time a vacation is taken, cashed out or upon termination of employment. Normally, an employee cannot accrue more than thirty days of vacation each year. Sick leave is payable when an employee is unable to work because of illness. Upon retirement, an employee will be paid for any unused sick leave. Overhead Absorption Certain operating expenses are allocated to capital assets using management's allocation of manpower and service estimates that are directly related to the construction of capital assets. Contributions for Capital Acquisition/Construction Contributions for capital acquisition/construction represent cash and capital asset additions contributed to the Upper District by federal and state granting agencies. Budgetary Policies The Upper District adopts an annual non-appropriated budget for planning, control, and evaluation purposes. Budgetary control and evaluation are affected by comparisons of actual revenues and expenses with planned revenues and expenses for the period. Encumbrance accounting is not used to account for commitments related to unperformed contracts for construction and services. 15
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013  NOTE 1...
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013 NOTE 2 CASH AND INVESTMENTS Cash and cash equivalents as of June 30 consist of the following: Imprest cash on hand Deposit with financial institution (1) Local Agency Investment Fund Money market mutual funds Total cash and cash equivalents $ $ 2014 500 $ 943,582 8,147,584 758,384 9,850,050 $ 2013 500 597,987 14,761,734 15,360,221 (1) The Upper District is a voluntary participant in the Local Agency Investment Fund (LAIF), a special fund regulated by the California State Treasury through which each city, district or agency may invest up to $40 million. As of June 30, 2014 and 2013, the total fair value of LAIF, including accrued interest was approximately $63.0 billion and $58.9 billion, respectively. The Upper District’s proportionate share of that value is $8.1 million and $14.8 million as of June 30, 2014 and 2013, respectively. Investments in LAIF are highly liquid, as deposits can be converted to cash within 24 hours without loss of interest. In regards to credit rating, LAIF is unrated as of June 30, 2014 and 2013. Investment Policy The Upper District’s investment policy outlines the guidelines required to be used in effectively managing the Upper District’s available cash in accordance with the California Government Code. To address interest rate risk, the Upper District’s existing policy limits the maturity of investments to five years, with the exception of special trust funds which shall not be subject to this limitation. To mitigate credit risks associated with its investments, the Upper District’s investment policy limits investments to large institutions and requires diversification to ensure that failure of one issuer will not significantly affect the Upper District’s cash flow. Interest Rate Risk Interest rate risk, as defined under GASB Statement No. 40, is the risk that changes in interest rates will adversely affect the fair value of an investment. The Upper District’s investments in LAIF have a weighted average maturity of 232 days, generally consistent with its cash flow and liquidity needs. Investments in LAIF are highly liquid, as deposits can be converted to cash within 24 hours without loss of interest. Information about the sensitivity of the fair values of the Upper District's investments to market interest rate fluctuations is provided by the following table that shows the distribution of the Upper District's investments by maturity: Maturities of investments at June 30, 2014, were as follows: Investment Type Local Agency Investment Fund $ Cash and investments with fiscal agent: Money Market Mutual Funds Agency Funds U.S. Treasury Funds U.S. Corporate Funds Total $ 16 Total Investment 8,147,584 $ 758,384 3,057,154 2,251,991 1,935,525 16,150,638 $ Remaining Maturity (in Months) 12 Months 13 to 36 36+ or Less Months Months 8,147,584 $ $ 758,384 116,497 9,022,465 $ 2,739,634 2,251,991 1,621,692 6,613,317 $ 317,520 197,336 514,856
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013  NOTE 2...
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013 NOTE 2 CASH AND INVESTMENTS (CONTINUED) Maturities of investments at June 30, 2013, were as follows: Investment Type Local Agency Investment Fund $ Total $ Total Investment 14,761,734 $ 14,761,734 $ Remaining Maturity (in Months) 12 Months 13 to 36 36+ or Less Months Months 14,761,734 $ $ 14,761,734 $ $ - Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Upper District’s investment policy limits eligible investments to large institutions. As of June 30, 2014 and 2013, the Upper District had the majority of its investments in LAIF. Concentration of Credit Risk Under GASB Statement No. 40, concentration of credit risk is the risk of loss attributable to the magnitude of the Upper District’s investment in a single issuer. The Upper District’s investment policy contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. As of June 30, 2014 and 2013, there were no investments in any one issuer (other than U.S. Treasury securities, agency funds, corporate funds, and external investment pools) that represent 5% or more of total Upper District investments. Custodial Credit Risk GASB Statement No. 40 defines custodial credit risk as the risk that the Upper District will not be able to (a) recover deposits if the depository financial institution fails, or (b) recover the value of investments or collateral securities that are in the possession of an outside party if the counterparty to the investment or deposit transaction fails. Deposits The California Government Code requires California banks and savings and loan associations to secure a local governmental agency’s (agency) deposits by pledging government securities as collateral. The market value of pledged securities must equal at least 110% of an agency’s deposits. California law also allows financial institutions to secure an agency’s deposits by pledging first trust deed mortgage notes having a value of 150% of an agency’s total deposits. The agency may waive collateral requirements for deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). Beginning January 1, 2013, the FDIC will insure noninterest-bearing transaction accounts, which generally provides each depositor up to $250,000 in coverage at each separately chartered insured depository institution. Deposits are exposed to custodial credit risk if they are uninsured and are either: a. Uncollateralized. b. Collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the depositor-government’s name. At June 30, 2014 and 2013, the Upper District’s deposits (bank balances) exceeded the maximum deposit insurance amount by $1,092,000 and $337,000, respectively. 17
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013  NOTE 2...
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013 NOTE 2 CASH AND INVESTMENTS (CONTINUED) Investments The California Government Code authorizes the Upper District to invest in obligations of the United States Treasury, agencies, and instrumentalities; prime commercial paper; bankers’ acceptances; repurchase and reverse repurchase agreements; financial futures or financial option contracts; negotiable certificates of deposit; obligations of the State of California; and, obligations of local agencies within California. Investments are exposed to custodial credit risk if they are uninsured, unregistered and held by either: a. Counterparty. b. The counterparty’s trust department or agent but not in the government’s name. Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of year-end for each investment type. Credit ratings of investments as of June 30, 2014, were as follows: Investment Type Local Agency Investment Fund $ Cash and investments with fiscal agent: Money Market Mutual Funds Agency Funds U.S. Treasury Funds U.S. Corporate Funds Total $ Total Investment 8,147,584 $ Ratings as of Year End Unrated AAA 8,147,584 $ - 758,384 3,057,154 2,251,991 1,935,525 16,150,638 $ 8,147,584 $ AA$ BBB+ - - $ - - $ $ BBB+ - $ - 758,384 3,057,154 2,251,991 1,935,525 8,003,054 $ Credit ratings of investments as of June 30, 2013, were as follows: Investment Type Local Agency Investment Fund $ Total $ Total Investment 14,761,734 $ 14,761,734 $ Ratings as of Year End Unrated AAA 14,761,734 $ 14,761,734 $ - AA$ $ At June 30, 2014 and 2013, investments consist of the following: Agency Funds U.S. Treasury Funds U.S. Corporate Funds $ Total $ 18 2014 3,057,154 $ 2,251,991 1,935,525 7,244,670 $ 2013 -
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013  NOTE 2...
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013 NOTE 3 CAPITAL ASSETS Changes in capital assets for the year ended June 30, 2014 were as follows: Balances at July 1, 2013 Additions Deletions/ Transfers 80,848 $ 32,582,923 $ 2,301,454 $ (28,245,710) 80,848 6,638,667 Total non-depreciable capital assets 32,663,771 2,301,454 (28,245,710) 6,719,515 Depreciable capital assets: Building and improvements Intangible utility plant Water recycling Furniture and equipment Other Total depreciable capital assets 559,820 582,772 20,878,040 568,990 103,422 22,693,044 15,511 50,295 65,806 28,245,710 28,245,710 559,820 582,772 49,123,750 584,501 153,717 51,004,560 Accumulated depreciation Building and improvements Intangible utility plant Water recycling Furniture and equipment Other Total Accumulated Depreciation Net depreciable capital assets (445,313) (582,772) (2,282,950) (363,169) (32,276) (3,706,480) 18,986,564 28,245,710 (467,944) (582,772) (3,267,247) (419,298) (37,305) (4,774,566) 46,229,994 Non-depreciable capital assets: Land Construction-in-progress Net capital assets $ $ 51,650,335 $ (22,631) (984,297) (56,129) (5,029) (1,068,086) (1,002,280) 1,299,174 $ - Balances at June 30, 2014 $ 52,949,509 Changes in capital assets for the year ended June 30, 2013 were as follows: Balances at July 1, 2012 Non-depreciable capital assets: Land Construction-in-progress Deletions/ Transfers Balances at June 30, 2013 80,848 $ $ 27,191,260 11,066,457 $ (5,674,794) 80,848 32,582,923 Total non-depreciable capital assets 27,272,108 11,066,457 (5,674,794) 32,663,771 Depreciable capital assets: Building and improvements Intangible utility plant Water recycling Furniture and equipment Other Total depreciable capital assets 559,820 582,772 15,203,246 529,902 95,067 16,970,807 39,088 8,355 47,443 5,674,794 5,674,794 559,820 582,772 20,878,040 568,990 103,422 22,693,044 Accumulated depreciation Building and improvements Intangible utility plant Water recycling Furniture and equipment Other Total Accumulated Depreciation Net depreciable capital assets (422,682) (582,772) (1,863,567) (311,491) (30,179) (3,210,691) 13,760,116 (22,631) (419,383) (51,678) (2,097) (495,789) (448,346) 5,674,794 (445,313) (582,772) (2,282,950) (363,169) (32,276) (3,706,480) 18,986,564 Net capital assets $ Additions $ 19 41,032,224 $ 10,618,111 $ - $ 51,650,335
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013  NOTE 3...
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013 NOTE 3 CAPITAL ASSETS (CONTINUED) Major capital asset additions during the year include work on various stages of construction projects. A significant portion of these additions were constructed by the Upper District and/or sub-contractors. During the fiscal year ended June 30, 2014, the Upper District completed the Water Recycling Program Phase IIB Project and transferred out $28,245,710 of construction-in-progress to Water Recycling. NOTE 4 COMPENSATED ABSENCES Changes in compensated absences were as follows: Balance at beginning of year Earned by employees Taken by/paid to employees Balance at end of year Less current portion Long-term portion $ $ June 30 2014 63,948 $ 78,995 (84,183) 58,760 42,509 16,251 $ 2013 72,891 74,290 (83,233) 63,948 39,961 23,987 Current portion of compensated absences is included as part of accrued liabilities. NOTE 5 AGREEMENTS WITH STATE WATER RESOURCES CONTROL BOARD CSWRCB Grant Agreement In September 2008, the California State Water Resources Control Board (CSWRCB) provided a $5 million Water Recycling Grant to the Upper District for use in expanding its current recycled water use in and around the existing service area with a reliable and supplemental water supply. The term of the agreement began on September 16, 2008, and will continue through project completion plus thirty five (35) years unless otherwise terminated or amended as provided in the grant agreement. All work was completed by March 31, 2013 and no funds were requested after May 1, 2013. During the fiscal years ended June 30, 2014 and 2013, the Upper District received a total of $0 and $1,383,505 from CSWRCB, respectively. Project Finance Agreements In December 2009, the Upper District entered into four (4) project finance agreements with the CSWRCB for a total amount of $17.02 million for the purpose of financing the planning, design, acquisition, construction and installation of the Water Recycling Pipeline and Pump Station Project Phase IIB. These project funds shall be repaid in annual installments commencing on the date that is one year after completion of construction and payable up to 21 years at zero interest rate. As of June 30, 2014 and 2013, the Upper District has drawn down a total of $13,171,937 and $12,862,825 under this agreement, respectively. Construction activities funded by the CSWRCB loans were completed as of June 30, 2013. 20
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013  NOTE 3...
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013 NOTE 5 AGREEMENTS (CONTINUED) WITH STATE WATER RESOURCES CONTROL BOARD Amounts due under the agreements are as follows: Year ending June 30 2015 2016 2017 2018 2019 2020-2024 2025-2029 2030-2033 $ 853,488 853,488 853,488 853,488 853,488 4,267,440 4,267,440 2,725,483 $ 15,527,803 The Upper District repaid $791,232 during the year ended June 30, 2014, of which $561,181 related to principal payments and $230,051 related to imputed interest. NOTE 6 DEFINED BENEFIT PENSION PLAN Plan Description The Upper District’s defined benefit pension plan (the Plan) provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The Plan is part of the Public Agency portion of the California Public Employees Retirement System (CalPERS), a cost-sharing multipleemployer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions, as well as other requirements, is established by State statutes within the Public Employees’ Retirement Law. The Plan selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through the Upper District resolution. CalPERS issues a separate comprehensive annual financial report. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office – 400 Q Street, Sacramento, California 95811. Funding Policy The contribution requirements of the plan members are established by state statute and the employer contribution rate is established and may be amended by CalPERS. Under the Public Employees’ Pension Reform Act (PEPRA) of 2013, the Upper District pays the member contribution to CalPERS (8% of annual covered salary) for employees. New members hired on or after January 1, 2013 are required to contribute at least 50% of their normal pension cost. 21
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013  NOTE 5...
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013 NOTE 6 DEFINED BENEFIT PENSION PLAN (CONTINUED) The Upper District is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The required employer contribution rates for the fiscal years ended June 30, 2014 and 2013 were 17.89% and 34.02%, respectively, for classic members. Required employer contribution rate for new members is 7% for the fiscal year ended June 30, 2014. Annual Pension Cost For the years ended June 30, 2014 and 2013, the Upper District’s annual pension cost and actual contribution was $809,378 and $410,614, respectively. The required contributions for the fiscal year ended June 30, 2014 was determined as part of the June 30, 2011 actuarial valuation. Three Year Trend Information Fiscal year end June 30, 2012 $ June 30, 2013 June 30, 2014 Annual Pension Cost (APC) Percentage of APC Contributed 361,930 410,614 809,378 100% 100% 100% Net Pension Obligation $ - Initial unfunded liabilities are amortized over a closed period equal to the average amortization period at the plan’s date of entry into CalPERS Risk Pool. Subsequent plan amendments are amortized as a level percentage of pay over a closed 20-year period. Gains and losses that occur in the operation of the plan are amortized over a rolling 30-year period. If the plan’s accrued liability exceeds the actuarial value of plan assets, then the amortization payment on the total unfunded liability may not be lower than the payment calculated over a 30-year amortization period. See Schedule of Funding Progress in the Required Supplementary Information section. NOTE 7 DEFERRED COMPENSATION AGREEMENT The Upper District offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all of the Upper District employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or an unforeseeable emergency. All amounts of compensation deferred under the plan are held in trust and are not subject to the creditors of the Upper District. Accordingly, the plan assets and liabilities are not reflected on these financial statements. 22
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013  NOTE 6...
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013 NOTE 8 OTHER POSTEMPLOYMENT BENEFITS (OPEB) The Upper District provides postemployment healthcare benefits to certain employees, directors and their dependents based on resolutions by the Board of Directors as follows:    A Health & Accident and Major Medical Payments Insurance Policy, as selected and approved by the Board A maximum of $2,500 per calendar year for retirees and their dependents for medical costs not covered by the insurance policy above A maximum of $2,500 per calendar year for costs of dental, vision and/or hearing These benefits are provided for each retired employee who has served the Upper District for more than ten years before terminating employment at age 55 years or older and each retired director who served in office after January 1, 1981, was elected to the board prior to January 1, 1995, has served not less than twelve years or three full terms of office and has attained the age of 50 years. The Upper District finances these benefits on a pay-as-you-go basis. Total benefits paid during the years ended June 30, 2014 and 2013 amounted to $135,770 and $129,744, respectively. As of June 30, 2014 and 2013, there were 11 participants receiving benefits under these programs, respectively. In 2004, GASB adopted Statement No. 45, which addresses Accounting and Financial Reporting by Employers for Post-employment Benefits Other Than Pensions. Along with other agencies with total annual revenues of $10 million or more but not over $100 million, the Upper District implemented the GASB Statement No. 45 OPEB reporting requirements beginning in Fiscal Year 2008-2009. As of June 30, 2014, the Upper District has not established a plan or equivalent that contains an irrevocable transfer of assets dedicated to providing benefits to retirees in accordance with the terms of the plan and that are legally protected from creditors. However, the Upper District accrued the required annual contribution based on the actuarial valuation report. Eligible participants to the plan at July 1, 2013, the date of the latest actuarial valuation are as follows: Retirees receiving benefits Active / full-time employees/Directors Total 11 12 23 The funded status of the plan as of June 30, 2013 based on the plan’s most recent actuarial valuation date of July 1, 2013 was: Actuarial accrued liability (AAL) Actuarial value of plan assets Unfunded actuarial accrued liability (UAAL) $ $ Funded ratio (actuarial value of plan assets / AAL) Normal cost 0% $ 23 2,439,201 2,439,201 55,088
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013  NOTE 8...
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013 NOTE 8 OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) Years Ended June 30 2013 2014 Covered Payroll Unfunded Actuarial Accrued Liability as a % of Covered Payroll $ 1,139,000 $ 951,000 214.00% 312.10% The actuarial method used in estimating the liability is the Projected Unit Credit with service prorate cost method. Under this cost method, the Actuarial Accrued Liability (AAL) is the present value of projected benefits multiplied by the ratio of benefit service as of the valuation date to the projected benefit service at retirement, termination, disability or death. The significant assumptions in the computation include a discount rate of 7.11% per annum, inflation of 2.75% per annum and an annual increase in payroll of 3%. The discount rate assumes the Upper District continues to fund for its retiree health benefits on a pay-as-you-go basis. The following table shows the components of the Upper District’s annual OPEB cost for the year (based on 30-year amortization using the level percentage of projected payroll), the amount of benefits and/or insurance premiums actually paid and the District’s net OPEB obligation as of June 30, 2014 and 2013: Annual required contribution $ Interest on net OPEB obligation Adjustment to ARC Annual OPEB cost Benefit payments Increase in net OPEB obligation Net OPEB obligation - beginning of year Net OPEB obligation - end of year $ 2014 252,274 (116,504) 135,770 (135,770) 986,347 986,347 $ $ 2013 299,213 25,713 324,926 (129,744) 195,182 791,165 986,347 The Annual Required Contribution (ARC) is an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a 30-year period based on a level-dollar basis. Three Year Trend Information Fiscal year end June 30, 2012 $ June 30, 2013 June 30, 2014 Annual OPEB cost Benefit Payment 326,283 $ 324,926 135,770 135,778 129,744 135,770 24 Percentage of annual OPEB cost paid 42% 40% 100% Net OPEB Obligation $ 791,165 986,347 986,347
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013  NOTE 8...
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013 NOTE 8 OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) See Schedule of Funding Progress in the Required Supplementary Information section. The following is a summary of the actuarial assumptions and methods: Actuarial Assumptions: Investment Rate of Return Projected Salary Increases Inflation Payroll Growth Individual Salary Growth 7.11% per annum (net of administrative expenses) depending on employer funding policy 3.30% to 14.20% depending on age, service, and type of employment 2.75% 3.00% A merit scale varying by duration of employment coupled with an assumed annual inflation growth of 2.75% and an annual production growth of 0.25%. A 1% increase in the healthcare trend rate for each future year would increase the annual required contribution by 14%. NOTE 9 COMMITMENTS AND CONTINGENCIES Operating Lease The Upper District has entered into a noncancellable operating lease for its office space in Monrovia, California. Amounts due under the lease are as follows: Year ending June 30 2015 2016 2017 $ $ 212,208 218,576 18,259 449,043 The Upper District incurred rental expense of $206,532 and $200,520 for the years ended June 30, 2014 and 2013, respectively. Grant Awards The Upper District has received funds for specific purposes that are subject to review and audit by the grantors. Although such audits could generate expenditure disallowances under terms of the grants or contracts, management believes that any required reimbursements will not be material. Litigation Legal claims and lawsuits arise from time to time in the normal course of business, which, in the opinion of management, will have no material effect on the Upper District’s financial position. 25
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013  NOTE 8...
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013 NOTE 9 COMMITMENTS AND CONTINGENCIES (CONTINUED) Construction Activities The Upper District has a variety of agreements with private contractors relating to the construction of water recycling projects. The Upper District has committed to approximately $0.49 million and $1.51 million of open construction contracts as of June 30, 2014 and 2013, respectively. NOTE 10 GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) STATEMENTS ISSUED, NOT YET EFFECTIVE The Governmental Accounting Standards Board (GASB) has issued several pronouncements prior to June 30, 2014, that have effective dates that may impact future financial presentations. Management has not yet determined any impact the implementation of the following statements may have on the financial statements of the Upper District. GASB No. 68 - GASB has issued Statement No. 68, Accounting and Financial Reporting for Pensions - an Amendment of GASB Statement No. 27. The requirements of this Statement will improve the decision-usefulness of information in employer and governmental nonemployer contributing entity financial reports and will enhance its value for assessing accountability and interperiod equity by requiring recognition of the entire net pension liability and a more comprehensive measure of pension expense. Decision-usefulness and accountability also will be enhanced through new note disclosures and required supplementary information. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2014. GASB No. 69 - GASB has issued Statement No. 69, Government Combinations and Disposals of Government Operations. This Statement establishes accounting and financial reporting standards related government combinations and disposals of government operations. As used in this Statement, the term government combinations includes a variety of transactions referred to as mergers, acquisitions, and transfers of operations. This Statement requires disclosures to be made about government combinations and disposals of government operations to enable financial statement users to evaluate the nature and financial effects of those transactions. The provisions of this Statement are effective for financial statements for periods beginning after December 15, 2013. NOTE 11 SUBSEQUENT EVENTS The Upper District has evaluated events or transactions through December 16, 2014, the date on which the financial statements were available to be issued, for potential recognition or disclosure in the financial statements and determined no other subsequent matters require disclosure or adjustment to the accompanying financial statements. 26
Upper San Gabriel Valley Municipal Water District Notes to Financial Statements Years ended June 30, 2014 and 2013  NOTE 9...
Required Supplementary Information (Unaudited)
Required Supplementary Information  Unaudited
Upper San Gabriel Valley Municipal Water District Required Supplementary Information (Unaudited) Years ended June 30, 2014 and 2013 Schedule of Funding Progress – CalPERS June 30, 2010 June 30, 2011 June 30, 2012 Entry Age Actuarial # Accrued Liability (AAL) in '000s (B) Actuarial Asset Value in ‘000s (A) Actuarial Valuation Date Unfunded Actuarial Accrued Liability (Excess Assets) [(B) - (A)] (UL) in '000s (C) $ 1,815,672 1,981,073 2,178,800 $ 2,297,871 2,486,709 2,680,181 $ 482,199 505,636 501,381 Annual Covered Payroll in '000s (E) Funded Ratio [(A) / (B)] (D) 79.02% 79.67% 81.29% $ 434,023 427,300 417,600 Unfunded Actuarial Accrued Liability as Percentage of Covered Payroll [(B) {(A)/(E)}] (F) 111.10% 118.33% 120.06% The following is a summary of the actuarial assumptions and methods: Actuarial Assumptions: Investment Rate of Return Projected Salary Increases Inflation Payroll Growth Individual Salary Growth 7.75% (net of administrative expenses) (Changed to 7.50% for June 30, 2011 and 2012 valuation) 3.55% to 14.45% depending on age, service, and type of employment (Changed to 3.30% to 14.20% for June 30, 2012 valuation) 3.00% (Changed to 2.75% for June 30, 2011 and 2012 valuation) 3.25% (Changed to 3.00% for June 30, 2012 valuation) A merit scale varying by duration of employment coupled with an assumed annual inflation growth of 2.75% and an annual production growth of 0.25%. Note: Information shown above is for compliance with GASB No. 27 for a cost-sharing multiple employer defined benefit plan. Schedule of Funding Progress – OPEB Actuarial Valuation Date June 30, 2012 June 30, 2013 Actuarial Asset Value (A) $ - Unfunded Actuarial Accrued Liability (Excess Assets) [(B) - (A)] (UL) (C) Entry Age Actuarial Accrued Liability (AAL) (B) $ 2,968,114 2,439,201 $ 2,968,114 2,439,201 Annual Covered Payroll (E) Funded Ratio [(A) / (B)] (D) 0.00% 0.00% $ Unfunded Actuarial Accrued Liability as Percentage of Covered Payroll [(B) {(A)/(E)}] (F) 951,000 1,139,000 312% 214% The significant assumptions in the computation include a discount rate of 5% per annum (changed to 7.11% for June 30, 2013 valuation), inflation of 3% per annum (changed to 2.75% for June 30, 2013 valuation) and an annual increase in payroll of 3.25% (changed to 3.00% for June 30, 2013 valuation). See report of independent auditors. 27
Upper San Gabriel Valley Municipal Water District Required Supplementary Information  Unaudited  Years ended June 30, 2014...
Statistical Section (Unaudited)
Statistical Section  Unaudited
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Upper San Gabriel Valley Municipal Water District Statistical Section Years ended June 30, 2014 and 2013 This part of the Upper District's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Upper District's overall financial health. Table of Contents Page Financial Trends These schedules contain information to help the reader understand how the Upper District's financial performance and financial condition have changed over time. 29 Revenue Capacity These schedules contain information to help the reader assess the Upper District's most significant own-source revenue, water sales. 31 Demographic Information This schedule offers demographic indicators to help the reader understand the environment within which the Upper District's financial activities take place. 37 Operating Information This schedule contains service and infrastructure data to help the reader understand how the information in the Upper District's financial report relates to the service the Upper District provides. 39 See report of independent auditors. 28
Upper San Gabriel Valley Municipal Water District Statistical Section Years ended June 30, 2014 and 2013  This part of the...
Upper San Gabriel Valley Municipal Water District Changes in Net Position Last Ten Fiscal Years (Unaudited) (In Thousands) Fiscal Year Ended June 30 2005 2006 2007 $ 16,435 (19,172) (117) $ 18,526 (22,330) (123) $ 10,325 (14,109) (272) (2,854) (3,927) (4,056) (4,008) (4,555) (5,740) (2,613) (3,917) (4,501) (4,178) 3,584 723 56 12 - 3,558 1,035 80 (118) - 3,487 1,196 294 110 1 3,563 1,141 315 65 11 3,516 436 335 - 3,576 154 305 - 3,573 (174) 99 333 - 3,576 (2,306) 65 337 - 3,542 (991) 41 379 - 3,584 (524) 32 416 3 - Net nonoperating revenues (expenses) 4,375 4,555 5,088 5,095 4,287 4,035 3,831 1,672 2,971 3,511 Net income (loss) before capital contributions 1,521 628 1,032 1,087 (1,705) 1,218 (2,245) (1,530) (667) Contributions for capital acquisition/construction 1,172 2,740 887 710 1,804 3,566 1,645 4,927 349 Changes in net position: Operating revenues Operating expenses Depreciation and amortization Operating income (loss) Nonoperating revenues (expenses) Standby charges Nonoperating program expenses Investment earnings Taxes Change in fair value of investments Other revenue (expense), net Changes in net position $ 2,693 $ 3,368 $ 1,919 2008 $ $ 15,323 (18,998) (333) 1,797 2009 $ 14,566 (18,793) (328) 2010 $ (268) 1,006 $ 738 $ Source: Finance and Administration Department See report of independent auditors. 29 2011 14,487 (19,887) (340) 99 $ $ 26,057 (28,331) (339) 4,784 2012 $ $ 15,316 (18,856) (377) (600) 2013 $ $ 12,837 (16,842) (496) 3,397 2014 $ $ 26,691 (29,801) (1,068) (318)
Upper San Gabriel Valley Municipal Water District Changes in Net Position Last Ten Fiscal Years  Unaudited   In Thousands ...
Upper San Gabriel Valley Municipal Water District Net Position by Component Last Ten Fiscal Years (Unaudited) (In Thousands) Net Investment in Capital Assets June 30 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $ 11,461 15,661 18,269 19,119 21,555 26,625 34,780 37,582 39,195 40,766 Unrestricted $ 29,230 28,398 27,710 28,658 26,960 21,989 18,618 15,216 17,000 15,111 Total $ 40,691 44,059 45,979 47,777 48,515 48,614 53,398 52,798 56,195 55,877 $60,000 In Thousands $50,000 $40,000 $30,000 $20,000 $10,000 $2005 2006 2007 2008 2009 2010 Net Investment in Capital Assets 2011 2012 Unrestricted Source: Finance and Administration Department See report of independent auditors. 30 2013 2014
Upper San Gabriel Valley Municipal Water District Net Position by Component Last Ten Fiscal Years  Unaudited   In Thousand...
Upper San Gabriel Valley Municipal Water District Operating Revenues by Major Source Last Ten Fiscal Years (Unaudited) (In Thousands) Fiscal Year Ended June 30 Water Conservation Other Operating Revenues Total Operating Revenues $ 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Water Revenue $ 369 525 513 559 625 292 144 333 195 245 $ $ 2009 2010 15,946 17,921 9,734 14,684 13,732 14,115 25,811 14,714 12,395 26,259 120 80 78 80 209 80 102 269 247 187 16,435 18,526 10,325 15,323 14,566 14,487 26,057 15,316 12,837 26,691 $30,000 In Thousands $25,000 $20,000 $15,000 $10,000 $5,000 $2005 2006 2007 Water Revenue 2008 Water Conservation 2011 2012 2013 2014 Other Operating Revenues Source: Finance and Administration Department See report of independent auditors. 31
Upper San Gabriel Valley Municipal Water District Operating Revenues by Major Source Last Ten Fiscal Years  Unaudited   In...
Upper San Gabriel Valley Municipal Water District Operating Expenses by Activity Last Ten Fiscal Years (Unaudited) (In Thousands) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sources of Supply Water Quality and Supply $ Fiscal Year Ended June 30 $ 15,317 17,517 9,348 14,336 13,175 13,230 23,119 12,730 10,524 22,657 Water Recycling 719 1,751 1,051 1,035 999 1,320 1,362 1,619 1,814 2,439 $ 230 214 334 487 575 1,108 547 639 1,080 781 Total Depreciation and General and Operating Conservation Amortization Administrative Expenses $ 1,841 1,730 2,020 1,698 1,931 1,919 1,274 1,782 776 1,322 $ 117 123 272 333 328 340 339 378 496 1,068 $ 1,065 1,118 1,356 1,442 2,113 2,311 2,029 2,085 2,648 2,601 $ 19,289 22,453 14,381 19,331 19,121 20,228 28,670 19,233 17,338 30,868 $35,000 In Thousands $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $2005 2006 2007 2008 Sources of Supply Water Recycling Depreciation and Amortization 2009 2010 2011 2012 2013 Water Quality and Supply Conservation and Monitoring General and Administrative Source: Finance and Administration Department See report of independent auditors. 32 2014
Upper San Gabriel Valley Municipal Water District Operating Expenses by Activity Last Ten Fiscal Years  Unaudited   In Tho...
Upper San Gabriel Valley Municipal Water District Imported Water Deliveries Last Ten Fiscal Years (Unaudited) (In Acre Feet) Fiscal Year Ended June 30 Full Service Untreated Treated 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 12,895 10,981 14,290 9,607 8,533 6,557 3,429 3,975 3,529 3,490 Replenishment 13,075 16,076 28,155 12,035 31,289 Total 57,069 7,861 15,879 33,072 7,230 21,426 - 12,895 68,050 22,151 38,561 41,605 22,633 38,814 25,401 15,564 34,779 80,000 70,000 Acre-Feet 60,000 50,000 40,000 30,000 20,000 10,000 2005 2006 2007 2008 Full Service Treated 2009 2010 2011 Full Service Untreated Source: Finance and Administration Department See report of independent auditors. 33 2012 2013 Replenishment 2014
Upper San Gabriel Valley Municipal Water District Imported Water Deliveries Last Ten Fiscal Years  Unaudited   In Acre Fee...
Upper San Gabriel Valley Municipal Water District Imported Water Rates and Charges (Unaudited) Fiscal Years Ended June 30, 2014 and 2013 Rate per Acre-Foot MWD Fiscal Year Ended June 30, 2014 July 1, 2013 to December 31, 2013 Full Service Treated Tier 1 Full Service Treated Tier 2 Full Service Untreated Tier 1 Full Service Untreated Tier 2 Replenishment, Untreated January 1, 2014 to June 30, 2014 Full Service Treated Tier 1 Full Service Treated Tier 2 Full Service Untreated Tier 1 Full Service Untreated Tier 2 Replenishment, Untreated Fiscal Year Ended June 30, 2013 July 1, 2012 to December 31, 2012 Full Service Treated Tier 1 Full Service Treated Tier 2 Full Service Untreated Tier 1 Full Service Untreated Tier 2 Replenishment, Untreated January 1, 2013 to June 30, 2013 Full Service Treated Tier 1 Full Service Treated Tier 2 Full Service Untreated Tier 1 Full Service Untreated Tier 2 Replenishment, Untreated $ Upper District Surcharge 847 997 593 743 - $ 890 1,032 593 735 - $ $ 794 920 560 686 442 $ 847 997 593 743 - $ Total 80 80 80 80 $ 927 1,077 673 823 - 80 80 80 80 $ 970 1,112 673 815 - $ 80 80 80 80 80 $ 874 1,000 640 766 522 $ 80 80 80 80 $ 927 1,077 673 823 - - - Source: Finance and Administration Department See report of independent auditors. 34 -
Upper San Gabriel Valley Municipal Water District Imported Water Rates and Charges  Unaudited  Fiscal Years Ended June 30,...
Upper San Gabriel Valley Municipal Water District Water Rates per Acre Foot (Unaudited) Last Ten Fiscal Years Full Service Treated Tier 1 As of June 30 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $ 484.23 $ 484.23 549.00 549.00 681.00 797.00 840.00 874.00 927.00 970.00 Full Service Treated Tier 2 569.28 $ 585.03 649.80 649.80 808.00 926.00 984.00 1,000.00 1,077.00 1,112.00 Full Service Untreated Tier 1 $ 349.55 450.00 526.00 569.00 640.00 673.00 673.00 Source: Finance and Administration Department See report of independent auditors. 35 Full Service Untreated Tier 2 $ 450.35 577.00 655.00 713.00 766.00 823.00 815.00 Replenishment 246.65 251.90 251.90 251.90 251.90 386.00 429.00 522.00 -
Upper San Gabriel Valley Municipal Water District Water Rates per Acre Foot  Unaudited  Last Ten Fiscal Years Full Service...
Upper San Gabriel Valley Municipal Water District Treated Water Sales by Customer Last Ten Fiscal Years (Unaudited) (In Acre Feet) Fiscal Year Ended June 30 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Golden State/ Southern California Water Company City of South Pasadena Southwest Water Company Watermaster/ City of Alhambra 1,138 935 459 284 167 475 297 172 17 38 209 74 178 458 180 18 14 5 196 106 7,316 6,490 9,483 5,406 3,544 1,489 688 799 278 361 2,998 2,816 2,963 3,027 3,065 2,612 2,425 2,999 3,037 2,984 City of Arcadia City of Monrovia 95 1,399 286 1 Source: Finance and Administration Department See report of independent auditors. 36 1 5 - City of Azusa 1,110 663 1,207 336 179 - Valley County Water District 123 1,679 - Total 12,895 10,981 14,290 9,607 8,533 6,557 3,426 3,975 3,529 3,490
Upper San Gabriel Valley Municipal Water District Treated Water Sales by Customer Last Ten Fiscal Years  Unaudited   In Ac...
Upper San Gabriel Valley Municipal Water District Demographics and Economic Statistics – Los Angeles County Last Ten Calendar Years (Unaudited) Calendar Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Population 9,803,912 9,760,598 9,734,701 9,779,254 9,848,011 9,818,605 9,889,056 9,945,031 10,019,365 10,099,350 Personal Income (In Thousands) $ 357,186,377 385,724,212 400,366,343 412,638,667 402,459,119 410,674,615 420,913,463 443,100,000 468,600,000 493,200,000 Per capita Personal Income $ 36,433 39,519 41,128 42,195 40,867 41,791 42,564 45,062 46,771 48,009 Unemployment Rate 5.4% 4.8% 5.1% 7.5% 11.6% 12.5% 11.6% 10.9% 9.9% 8.8% Notes: Upper District generally utilizes county data from the U.S. Department of Commerce Bureau of Economic Analysis. Census data has not been updated for the years 2012 through 2014. Upper District utilized data from the California Department of Transportation for the years 2012 (actual), 2013 (actual) and 2014 (forecasted). Upper District believes that trends shown by these data are indicative of conditions within its service area. Source: U.S. Bureau of Economic Analysis and Census Bureau and California Department of Transportation See report of independent auditors. 37
Upper San Gabriel Valley Municipal Water District Demographics and Economic Statistics     Los Angeles County Last Ten Cal...
Upper San Gabriel Valley Municipal Water District Ten Largest Employers in Los Angeles County (Unaudited) June 30, 2014 Employer Number of Employees County of Los Angeles Los Angeles Unified School District Federal Government (includes U.S. Postal Service) City of Los Angeles (includes DWP) University of California, Los Angeles Kaiser Permanente State of California (non-education) Northrop Grumman Corp. University of Southern California Target Corp. 95,700 73,300 48,100 47,700 41,000 36,500 30,400 18,000 16,600 14,200 Note: Data was based on 2011 figures which are the latest available information. Source: Los Angeles Almanac See report of independent auditors. 38
Upper San Gabriel Valley Municipal Water District Ten Largest Employers in Los Angeles County  Unaudited  June 30, 2014  E...
Upper San Gabriel Valley Municipal Water District Operating Indicators - General Last Ten Fiscal Years (Unaudited) Number of Active Employees June 30 FTEs 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 6 7 7 9 9 8 9.5 10 9 11.5 Capital Assets per Program (in thousands) Water Recycling June 30 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $ Administration ConstructionIn-Progress Total Capital Assets $ $ $ 2,839 2,839 14,263 14,392 14,999 15,203 15,203 15,203 20,878 49,124 1,555 1,576 1,573 1,596 1,594 1,611 1,662 1,848 1,896 1,962 8,193 12,496 3,941 4,963 7,116 12,305 21,943 27,191 32,583 6,639 Source: Finance and Administration Department See report of independent auditors. 39 12,587 16,911 19,777 20,951 23,709 29,119 38,808 44,242 55,357 57,724
Upper San Gabriel Valley Municipal Water District Operating Indicators - General Last Ten Fiscal Years  Unaudited   Number...
Upper San Gabriel Valley Municipal Water District Operating Indicators – Water Conservation Last Ten Fiscal Years (Unaudited) (In Millions of Gallons) An effective water conservation program plays a critical role in promoting water use efficiencies that increase available supply of water from existing sources to support economic growth. It is also significantly less costly and more energy and cost-efficient than developing new sources of water. Recognizing these, Upper District has developed over the years a robust program that not only promotes water conservation and public awareness on water issues but also one that has generated significant lifetime water savings. The table below shows the lifetime water savings from Upper District's various conservation programs for the past ten fiscal years. Project/Device 2005 2006 2007 2008 Turf Removal Program CII Financial Incentive Retrofits (Sav-A-Buck Program) CII SoCal WaterSmart Rebate Program 1 Showerheads Aerators HECW Rebate Program Olive Sports Park Water Efficient Landscape Project ULFT/HET Retrofit Program Rinse & Save Spray Valve Retrofit Program Synthetic Turf Retrofit Program WBIC Distribution Residential SoCal WaterSmart Rebate Program 2 IPP-Ready Pak Large Landscape Survey and Retrofit Program 88.52 4.16 0.94 55.77 424.26 53.26 - 324.16 4.16 0.94 77.09 697.24 7.50 58.19 - 680.73 27.71 4.21 95.04 601.40 75.19 22.55 - 452.89 8.31 1.33 130.41 637.47 37.59 - - - - - Total 626.91 1 2 1,169.28 1,506.83 1,268.00 2009 2010 2011 2012 2013 2014 1,112.03 11.08 2.00 206.01 607.78 136.37 335.00 - 236.26 8.31 185.90 553.14 28.80 97.46 105.10 278.23 32.31 396.07 67.79 218.89 554.52 267.54 44.04 646.34 192.18 122.09 963.13 209.45 - - - 7.37 3.26 2,410.27 1,109.87 889.93 1,297.93 Program previously named CII Water Efficient Rebate Program Program previously named Residential Rebate Program Source: Planning, Engineering and Resources Department See report of independent auditors. 40 811.71 1,108.74
Upper San Gabriel Valley Municipal Water District Operating Indicators     Water Conservation Last Ten Fiscal Years  Unaud...
Upper San Gabriel Valley Municipal Water District Ultra-Low Flush and High-Efficiency Toilets Distributed Last Ten Fiscal Years (Unaudited) 2005 Alhambra Arcadia Azusa Baldwin Park Covina Duarte El Monte Glendora Hacienda Heights Industry Irwindale La Puente Monrovia Rosemead San Gabriel South El Monte South Pasadena South San Gabriel Temple City Valinda West Covina Whittier Others 2006 2007 2008 2009 2010 2011 2012 2013* 2014* 99 2 54 10 55 211 2 44 4 98 8 405 170 9 13 8 55 14 47 2 12 1 198 19 746 36 105 594 1 61 2 192 220 212 187 84 17 2 82 12 94 4 2 4 262 4 149 38 299 392 2 67 128 158 157 199 23 31 2 119 6 68 38 13 2 466 3 141 32 17 362 2 81 6 122 37 275 234 122 182 2 208 10 52 5 13 96 9 187 32 45 437 2 62 4 3 345 30 151 84 53 5 4 96 19 493 17 8 2 65 9 185 91 22 173 15 390 4 400 18 91 86 23 26 4 65 26 299 14 8 52 3 365 23 18 87 2 27 6 86 36 81 49 6 8 2 98 10 44 - 2 163 8 137 27 13 214 12 49 2 103 40 353 414 22 21 6 223 11 152 14 13 - - 1,322 2,871 2,159 2,374 2,182 2,016 1,003 1,999 - - * Note: During FY 13/14 and FY 12/13, Upper District did not hold HET distribution events inhouse. Instead, Upper District provided a total of $173,500 in incentive payments to the producers for this program from MWD's Conservation Credits Program. A total of 3,472 HETs were distributed by six producers within Upper District’s boundaries. Source: Planning, Engineering and Resources Department 41
Upper San Gabriel Valley Municipal Water District Ultra-Low Flush and High-Efficiency Toilets Distributed Last Ten Fiscal ...
Upper San Gabriel Valley Municipal Water District 602 E. Huntington Drive, Suite B, Monrovia, CA 91016 (626) 443-2297 phone · (626) 443-0617 fax www.upperdistrict.org
Upper San Gabriel Valley Municipal Water District  602 E. Huntington Drive, Suite B, Monrovia, CA 91016  626  443-2297 pho...