HomeMy WebLinkAboutFY 2022 Annual Comprehensive Financial Report
Otay Water District
Annual Comprehensive Financial Report
for the Fiscal Year Ended June 30, 2022
BOARD OF DIRECTORS
Tim Smith, Division 1 President
Mark Robak, Division 5 Vice President
Jose Lopez, Division 4 Treasurer
Ryan Keyes, Division 2
Gary Croucher, Division 3
DISTRICT FINANCIAL MANAGEMENT
Jose Martinez General Manager
Joseph R. Beachem Chief Financial Officer
Kevin Koeppen Assistant Chief, Finance
PREPARED BY
Finance Department
Otay Water District, Spring Valley, California
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Table of Contents
Introductory Section
Letter of Transmittal……………………………………………………………………………………………………………………………………. iii
Organization Chart…………………………………………………………………………………………...………………………………………… xii
List of Principal Officials…………………………………………………………………………………………………...……………………….. xiii
GFOA Certificate of Achievement……………………………………………………………………………………………...……………. xiv
Financial Section
Independent Auditors’ Report………………………………………………………………………………………………………...………..… 1
Management’s Discussion & Analysis…………………………………………………...…………………………………...………….. 4
Basic Financial Statements:
Statements of Net Position..…………………………………………………………………………………………………………...….….. 15
Statements of Revenues, Expenses, and Changes in Net Position………….…………………………...…… 17
Statements of Cash Flows……………………………………………………………….…………………………………………………...….. 18
Notes to Financial Statements………………………………………………………………………………………………………………... 20
Required Supplementary Information:
Schedule of Changes in the Net OPEB Liability and Related Ratios for Measurement
Periods Ended June 30, ……………………………………………………………………………………………………………………….. 69
Schedule of Contributions for Fiscal Year Ended June 30, ……………………………………………………………. 70
Schedule of Changes in the Net Pension Liability and Related Ratios for Fiscal Year Ended
June 30, ………………………………………………………….………………………………………………………………………………………... 71
Schedule of Plan Contributions for Fiscal Year Ended June 30, ..…………………………………………………. 73
Statistical Section
Net Position by Component…………………………………………………………………………………………………………………….. 76
Net Investment in Capital Assets…………………….………………………………………………………………….………………..… 77
Changes in Net Position………………………………………………………………..………………………………………………………….. 78
Operating Revenues by Source…………………………………………………………………………………………….……………….. 79
Operating Expenses by Function………………………………………………………..…………………………………………………. 80
Non-Operating Revenues by Source……………………………………………………………………………………………………. 81
Non-Operating Expenses by Function………………………………………………………………………………………………. 82
Assessed Valuation of Taxable Property within the District…………………………………………………………. 83
Water Purchases, Production, and Sales……………………………………………...………………………….…………………. 84
Meter Sales by Type…………………………………………………………………….……………………………………………………………. 85
Number of Customers by Service Type……………………………………………………………………………………………….. 86
Property Tax Levies and Collections…………………………………………………………………………………………………….. 87
Water Fixed Rates ……….………………………………………………………………………………………………………………………….…. 88
Water Variable Rates…….…………………………………………………………………………………………………………………………... 90
Sewer Variable and Fixed Rates…….………………………………………………………………………..…………………………….. 91
Ten Largest Customers…………………………………………………………………………………………………………………………….. 92
Ratios of Outstanding Debt by Type…………………………………………………….……………………………………………….. 93
Pledged Revenue Coverage (Water)……………………………………………………………………………………………………. 94
Pledged Revenue Coverage (Wastewater)…………………………………………………………………………………………. 95
Ratios of General Bonded Debt Outstanding………………………………………………………………….………………..… 96
Computation of Direct and Overlapping Bonded Debt………………………………………………………………… 97
Principal Employers…………………………..……………………………………….......................................................……………….. 99
Demographic and Economic Statistics……………………………………………………………………………………………….. 100
Number of Employees by Function………………………………………………………………………………………………………. 101
Active Meters by Size………………………………………………………………..………………………………………………………………. 102
Operating and Capital Indicators…………………………………………………………………………………………………………... 103
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November 21, 2022
Honorable Board of Directors
Otay Water District
We are pleased to present the Otay Water District's (the "District") Annual Comprehensive Financial
Report for the fiscal year ended June 30, 2022.
This report was prepared by the District's Finance Department following guidelines set forth by the
Government Accounting Standards Board (GASB) and generally accepted accounting principles
(GAAP). Responsibility for the accuracy of the data presented and the completeness and fairness of
the presentation, including all disclosures, rests with the District's management. We believe the data,
as presented, is accurate in all material respects and that it is presented in a manner that provides a
fair representation of the financial position and results of the District's operations. Included are all
disclosures we believe necessary to enhance your understanding of the financial condition of the
District. GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A), which should be read in conjunction with this report. The District's MD&A can be found
immediately following the Independent Auditors' Report.
Davis Farr LLP, a firm of licensed certified public accountants, audited the District's financial
statements. The goal of the independent audit was to provide reasonable assurance that the financial
statements of the District for the fiscal year ended June 30, 2022, are free of material misstatement.
The independent audit involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial statement presentation. In the
independent auditors' opinion, the following financial statements present fairly, in all material respects,
the respective financial position of the District as of June 30, 2022, and are presented in conformity
with GAAP. The Independent Auditors' Report is presented as the first component of the financial
section of this report.
REPORTING ENTITY
The District is a publicly owned water and sewer agency, authorized on January 27, 1956, as a
California special district by the State Legislature, with an entitlement to import water under the
Municipal Water District Act 1911. Its ordinances, policies, taxes, and service rates are set by five
Directors, elected by voters in their respective geographic divisions, to serve staggered four-year terms
on its Governing Board. The District is a "revenue neutral" public agency that does not operate at a
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profit. The District also performs cost of service studies to ensure that each end-user pays only their
proportionate share of the District's costs of water acquisitions, construction, operation, maintenance,
betterment, renewal, and replacement of the public water and sewer facilities.
The General Manager reports directly to the Board of Directors and oversees day-to-day operations of
Administrative Services, Finance, Water Operations, and Engineering through the four District Chiefs.
These and other lines of reporting are shown on the organization chart on page xii. Over the last 66
years, the District has grown from a handful of customers and two employees to become an
organization operating a network of more than 916 miles of pipelines, 44 operational reservoirs, a
recycled water facility, and one of the largest recycled water distribution networks in the State of
California. The service area's character has also changed from predominantly dry-land farming and
cattle ranching to businesses, high-tech industries, and large master-planned communities.
Today the District provides water
service to approximately 51,389
potable and 768 recycled
customers within 125 square miles
of the southeastern San Diego
metropolitan area. The District
purchases all potable water sold to
its customers from the San Diego
County Water Authority (CWA). The
CWA purchases much of this water
from the region's primary water
importer, the Metropolitan Water
District of Southern California
(MWD), and the Imperial Irrigation District. In December 2015, the Claude "Bud" Lewis Carlsbad
Desalination Plant began delivering water to the region. The District also entered into an agreement
with the CWA that brought regional water treatment closer to our customers and helped reduce
dependence on water treatment facilities located outside of San Diego County. In 2010, the District
constructed two 10-million-gallon reservoirs and a 5.1-mile, 36-inch diameter pipeline to receive locally
treated potable water from Helix Water District's R.M. Levy Water Treatment Plant and convey it to
customers.
The District also owns and operates a wastewater collection and recycling system providing public
sewer service to approximately 4,738 customer accounts within portions of the communities of La
Mesa, Rancho San Diego, El Cajon, Jamul, and Spring Valley. Wastewater collected is conveyed to
the District's Ralph W. Chapman Water Reclamation Facility, capable of recycling wastewater at a rate
of 1.3 million gallons per day. The District also can purchase up to 6 million gallons per day of recycled
water from the City of San Diego's South Bay Water Reclamation Plant. The District uses the recycled
water from these two sources to irrigate eastern Chula Vista schools, public parks, roadway
landscapes, a golf course, and various other approved uses per California Code of Regulations, Title
22. The use of recycled water reduces dependency on imported supplies and provides a local supply,
thereby diversifying District resources.
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MISSION, CURRENT ECONOMIC CONDITIONS, AND OUTLOOK
The District's mission is to provide high quality and reliable water and wastewater services to the Otay
Water District customers in a professional, effective, and efficient manner.
The San Diego County growth slowed down in Fiscal Year 2022. The District's Public Services Division
has seen declines in recent years, approving an average of 10 permits per month and selling 218 water
meters during the Fiscal Year 2022, compared to 297 and 306 water meters in fiscal years 2021 and
2020, respectively. As of July 2022, it is estimated that the District served approximately 228,000
residents. The San Diego Association of Governments (SANDAG), the regional planning agency, has
estimated the District's average long-term growth of 0.36%. The District expects nominal growth in the
customer base of 0.2% for Fiscal Year 2023 and projects an ultimate customer population of 271,531
residents by 2055.
LEGISLATIVE AND REGULATORY ISSUES
The District monitors legislative and regulatory activity and how it could impact the District and its
customers. The Governor had until September 30, 2022 to sign or veto legislation.
Senate Bill 222 would have required the State Water Resources Control Board (SWRCB) to implement
a Water Rate Assistance Program that would provide financial assistance for both drinking water and
wastewater services to low-income residential ratepayers. Such a program, if designed in a
reasonable, efficient, and effective manner, is something the District would like to see advanced.
However, the District did have the following fundamental concerns regarding how much funding
would be available for actual low-income household assistance as opposed to program
administration: 1) inefficient use of low-income water rate assistance funding with public water
agencies having to perform enrollment; 2) no cap proposed for the first year of administration costs;
and 3) not all program dollars would go into the program’s fund. The Governor vetoed this bill.
Other bills that the District monitored and the Governor signed are AB 2142 (Gabriel) and SB 230
(Portantino). AB 2142, sponsored by the Association of California Water Agencies (ACWA), will provide
a State tax exclusion from gross income for any amount received as a rebate, voucher, or other
financial incentive issued by a public water system, local government, or State agency for
participation in a turf replacement water conservation program. SB 230 will require the SWRCB to
establish, maintain, and direct a dedicated Constituents of Emerging Concern (CEC) Program to
assess the state of information and recommend areas for further study on the occurrence of CECs in
drinking water, and establishes the CEC Action Fund.
AB 2449 (Rubio), signed by the Governor, is a bill that affects the District and other public entities. This
bill revises the Brown Act to allow teleconference participation by local agency boards during public
meetings through January 2026, provided that a quorum is present in person. Also, the member must
publicly disclose “just cause” or an “emergency circumstance” to the legislative body and that
member may only teleconference for a limited number of meetings.
The District also has been actively engaged in the California Air Resources Board’s (CARB) release of
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its updated draft regulatory language for the Advanced Clean Fleets Regulation for State and Local
Government Fleets. The District has followed this regulatory process closely to make certain that the
District’s first responders in the field who respond to water and wastewater utility emergencies in
specialized vehicles have the resources available to them to ensure that response is not delayed. The
District has submitted comments regarding its concerns regarding the draft regulatory language and
will continue to monitor CARB’s activity on this matter. The District is also part of a coalition through
the Association of California Water Agencies on the issue.
The SWRCB and many water agencies, including the District, continue to focus on conservation-
related laws Senate Bill 606 and Assembly Bill 1668 that passed in 2018. Building on efforts to make
water conservation a way of life and to better prepare the state for droughts and climate change, the
District and other water agencies throughout the state have worked with San Diego County Water
Authority (CWA) and State officials to define how the conservation laws will be implemented. These
laws outline an overall framework to guide the District and other urban water suppliers in setting
water-use targets. The laws require water agencies to establish a residential indoor gallon per capita
per day (GPCD) goal of 55, effective in 2023, decreasing to 52.5 in 2025, followed by a final decrease
to 50 GPCD in 2030. The District projects that its current indoor GPCD levels meet the requirement.
The laws also required the SWRCB to adopt an outdoor water-use standard by June 2022. The District
has worked collectively with other water agencies and water industry associations to discuss and
provide comments to the SWRCB to ensure the regulations are both equitable and reflect local
conditions. The District will continue to work on these efforts as the SWRCB releases more
recommendations and reports.
As a result of the drought, in May 2022, the SWRCB adopted an emergency drought regulation and
by June 10, the regulation went into effect for all water suppliers. The regulation requires that water
suppliers implement demand reduction actions identified in their Water Shortage Contingency Plan
(WSCP) for a shortage level of 10-20% (Level 2). The emergency regulation remains in effect for one
year, unless the SWRCB modifies it, readopts it, or ends it before then. Because the regulation does
not require a formal activation of level 2, the District remains at level 1 but is encouraging customers
to implement level 2 actions. In the District’s WSCP, the difference between being at level 1 and 2 is
that level 2 entails the implementation of mandatory water restrictions and a water shortage condition
must exist prior to declaration. Because restrictions are not mandatory and the region is not currently
facing shortages, the District remains at level 1.
Also related to water-use efficiency, as recommended to the legislature jointly by the Department of
Water Resources (DWR) and the State Board, SB 1157 (Hertzberg), signed by the Governor, will lower
the indoor residential water use standard. This bill supersedes SB 606 and AB 1668 and further
reduces the indoor residential use standards. Under this bill the indoor residential water use standards
are to be as follows: 55 GPCD until January 1, 2025; 47 GPCD until January 1, 2030; and 42 GPCD as
of January 1, 2030. The District is currently projected to meet the GPCD requirements.
In August, the Governor released a new California’s Water Supply Strategy, Adapting to a Hotter, Drier
Future, listing actions needed to address 10% loss of water supplies by 2040. This includes seeking
or expanding new sources of supplies like desalination, recycled water and potable reuse, increased
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storage, reducing urban and agricultural water use, and improved forecasting, data collection, and
management of water. These are all related to actions included in the 2020 Water Resilience Portfolio.
As directed by the Governor and building on work already conducted, on July 27, 2022, the
Department of Water Resources released its Draft Environmental Impact Report (DEIR) for the Delta
Conveyance Project, marking an important step in evaluating a key strategy to adapt to a changing
climate and provide clean, reliable water for future generations. The comment period deadline for the
DEIR is December 16, 2022. This environmental review process is also consistent with the Governor’s
executive order directing State agencies to develop the aforementioned portfolio of statewide water
actions and investments that improve water recycling, recharge depleted groundwater reserves,
strengthen existing levee protections, and improve Delta water quality.
FISCAL YEAR 2023-2026 STRATEGIC PLAN
The District's theme has been "Dedicated to Community Service" since its inception. From its inception
in 1956 to present day, the District has been dedicated to delivering exceptional service to the residents
and businesses it has the distinction of serving. This serves as a great reminder to our staff about the
significance of the District.
Over the years the District’s strategic plan has evolved from one focusing on significant growth to one
focusing on both consistent, albeit lower, growth levels and the long-term operations and
maintenance of the District. The District recently adopted a new strategic plan (FY 2023-2026),
highlighting areas of focus, including a stronger emphasis on financial and long-term demands,
legislative matters, aging workforce and knowledge transfer, organizational culture, customer service,
cybersecurity, and asset management. Performance metrics support short-term and long-term
objectives linked to these strategies to promote and track continuous improvement.
The new strategic plan, adopted by the Board in January 2022, is a four-year plan. The plan reinforces
the Board’s vision, mission, and value statements and the business perspectives that serve as the
foundation for the new strategies, goals, and objectives. Since the previous plan, the District
recognizes that the landscape has shifted in terms of the nature and scope of local water supply
initiatives in the region and financial revenue streams to support the District's operational demands.
The strategic plan goals and objectives are executed and tracked as part of the annual budget process
and serves as a guide for each year's planning activities and budget development. It also establishes
the general policy direction and strategic priorities set forth by Board of Directors. Based on the
Balanced Scorecard methodology, the District develops the strategies, objectives, and programs
required to successfully implement the Board's direction.
There are several challenges facing the District today. They include fulfilling more stringent water
quality requirements, meeting the water demands of a developing community, discovering methods
to better use our current water resources through storage and water conservation, retainment and
recruitment of a skilled workforce, and maintaining an adaptable organization to meet future
challenges. The Board of Directors, senior management, and staff introduced the new strategic plan
to offer a foundation to meet these challenges. The strategic plan allows us to also convey our plans
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to our customers, other agencies, and water regulators. As with past plans, we are confident that this
plan will help us to maneuver and execute through these challenging times.
As the agency matures and its service area expands, fewer development resources and fees will be
available, but operating assets, infrastructure maintenance, rehabilitation, and replacement expenses
will continue to increase. Many of our infrastructure assets are entering a pivotal age point in their
operational lifecycle, and as a result, there will be pressure to increase customer rates to offset these
rising expenses. To balance the customer's interest in reducing rate increases while preserving service
reliability, well maintained infrastructure, and a financially sound position, the management team
continues to prioritize efficiency inside the agency via investments in operational and business
technology to achieve continued efficiencies and maintaining an optimal head count.
The strategic plan details our commitment to remain a model public agency that maintains
stakeholder trust through fiscal responsibility, environmental stewardship, and effective leadership.
These high-level goals and strategic objectives are further articulated with aligned implementation
plans, District-wide accountability, and performance metrics to measure and improve outcomes.
Through community focus, sound planning, preparation, and fiscal management, and a prepared and
adaptable work culture, the District is well positioned to support its growing customer base while
sustaining the quality water service that our community and our ratepayers expect.
The success of this approach is proven by the District’s gains in productivity, reduction in staffing, and
associated costs. The District has reduced staffing by 31.75 full-time equivalent positions, or 18%, while
the number of customer accounts increased by 4,388 from 2007 through 2023. Because of increased
efficiency and higher employee productivity, the District has continued absorbing some of the pass-
through costs from its water suppliers, including the City of San Diego, CWA, and Metropolitan Water
District (MWD). This helps to address customer concerns about rising water rates.
To reduce the District’s costs of retirement obligations, the District made an advanced payment of
$31.8 million to its CalPERS pension plan on August 15, 2018. This strategic action significantly reduced
the high financing cost of the unfunded liability at CalPERS and brought the funding level up to 87%,
which will save the District approximately $16 million. In Fiscal Year 2020, the District’s Other Post
Employee Benefits (OPEB) plan became fully funded. In Fiscal Year 2021, with the OPEB plan being
fully funded, the District began redirecting $1.1 million of additional contributions to PERS. The District
has budgeted to continue the additional $1.1 million contribution in Fiscal Year 2022. When combined
with the $31.8 million 2018 advance funding, the District’s PERS funding strategy is projected to save
the District in excess of $20 million over the next 12 years.
Other cost savings include the reduction in number of vehicles and equipment, fuel consumption,
pavement costs, and decreasing water loss through the successful leak detection and repair program.
Staff continues to seek out other operational efficiencies, thus decreasing costs and minimizing rate
impacts on District customers.
Based on an annual survey of water and sewer rates conducted by staff, the District has the 11th lowest
water rates of 22 agencies, and 5th lowest sewer rates of 28 agencies in the region.
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BUDGETING CONTROLS
The District views the budget as an essential tool for proper financial management, which is adopted
before each fiscal year. The budget is developed by combining the District's strategic objectives and
measures with input from the organization's various departments. The budget becomes a direct
reflection of the District's strategic plan by incorporating these strategic measures and objectives. The
budget is designed and presented for the general needs of the District, its staff, and its customers. It is
a comprehensive and balanced financial plan that features District services, resources and allocation,
financial policies, strategic objectives, and other useful information that allows the users to understand
the District's financial status and future. The District monitors performance monthly by generating
comparative reports of budget to actual and distributing them to all department heads, with top-level
information provided to the Board at the monthly board meetings.
BUDGET SUMMARY
The District's operating expenditures consist of three major sectors: potable water, recycled water, and
wastewater. The total operating budget is $118,618,100 for Fiscal Year 2023. Revenues from potable
and recycled water sales are projected to be $104,525,000, about $4,910,000 (4.9%) higher than the
Fiscal Year 2022 budget. Water sales volumes are expected to increase by 1.2% versus Fiscal Year
2022 budget. The MWD and CWA water supply rates are increasing 6.2% in Fiscal Year 2023 due to
the high cost of supply programs, higher energy costs, and increasing operating costs. District staff
projects wastewater revenues to be $3,284,000, approximately $216,000 more than the Fiscal Year
2022. The remaining budgeted revenues of $10.8 million come from various special fees, assessments,
and non-operating revenues. An overall water rate increase of 4.1% has been budgeted for January 1,
2023, while a 4.5% rate increase for wastewater has been budgeted, effective January 1, 2023.
The 2022-23 Capital Improvement Program (CIP) budget consists of 128 projects and a $12.6 million
budget. This year’s six-year CIP budget increased by $7.0 million from $101.4 million to $108.4 million.
The CIP budget emphasizes long-term planning for ongoing programs to meet population growth,
facilities replacement, and betterment of infrastructure while functioning within fiscal constraints.
THE FUTURE
The District continues its commitment to diversify water resources, reducing dependence on
traditional water supplies from the Colorado River and the Sacramento-San Joaquin Bay-Delta. The
coming years will continue to pose challenges for those in California’s water community. Due to Fiscal
Year 2021 being a drier year than FY 2022, potable sales volumes decreased 2.3% from Fiscal Year
2021 levels. The District projects a 1.2% increase in water sales volume in Fiscal Year 2023 compared
to the previous year’s budget and a decrease of 3.3% versus FY 2022 actual sales volume.
SAN DIEGO COUNTY WATER SUPPLY
San Diego County imports about 76% of its water from the Colorado River and Northern California.
Since these sources face legal and environmental constraints, the region has been exploring other
ways to ensure an adequate water supply, including increased water recycling, incorporating water-
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use efficiency and conservation programs as a way of life, increased water storage, and groundwater,
and seawater desalination.
CAPITAL IMPROVEMENT PROGRAM (CIP)
To ensure a reliable water supply and sewer system for the future, including sustaining the current
infrastructure, the District has developed several future planning documents, which provide a guide
to defining the District's proposed projects.
The major projects planned for delivery over the next six fiscal years include:
x Pipeline Replacement Projects (27 Total)
x Reservoir Construction or Rehabilitation Projects (17 Total)
x Pump Station Replacement and Rehabilitation
x Meter Replacement & AMI Pilot Project
x Sewer Basin Improvements
x Pipeline Misc. Appurtenances
x Equipment & Vehicles
x RWCWRF Projects (12 Total)
ACCOUNTING SYSTEM
The Finance Department is responsible for providing financial services to the District, including
financial accounting, debt management, reporting, payroll, accounts payable; investment of funds,
billing and collection of water and wastewater charges; taxes; and other revenues. The District's books
and records are maintained on an enterprise basis, matching revenues against the costs of providing
services. Revenues and expenses are recorded on an accrual basis when revenues are earned, and
expenses are incurred.
INTERNAL CONTROLS
The District operates within a system of internal controls established and periodically reviewed by
management. This provides reasonable assurance that assets are adequately safeguarded, and
transactions are recorded correctly according to District policies and procedures. When establishing
or reviewing controls, management must also consider the cost of the control and its value derived
from its utilization. Management maintains and implements all sensitive controls and those controls
whose value adequately exceeds their cost.
Management believes the District's internal controls, procedures, and policies adequately safeguard
assets and provide reasonable assurance of proper recording of financial transactions. In addition, the
District maintains controls to provide for compliance with all finance-related legal and contractual
provisions. Management believes the activities reported within the presented Annual Comprehensive
Financial Report comply with these finances related legal and contractual provisions, including bond
covenants and fiduciary responsibilities.
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AWARDS AND ACKNOWLEDGMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to Otay Water District for its Annual
Comprehensive Financial Report for the fiscal year ended June 30, 2021. To earn a Certificate of
Achievement, a government agency must publish an easily readable and efficiently organized Annual
Comprehensive Financial Report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for one year only. Staff believes that the District's current Annual
Comprehensive Financial Report continues to meet the Certificate of Achievement Program's
requirements and is submitting it to the GFOA to determine its eligibility for another certificate.
In addition to the Certificate of Achievement for Excellence in Financial Reporting, the District has
received the following awards:
The Government Finance Officers Association of the United States and Canada presented a
Distinguished Budget Presentation Award to Otay Water District for its annual budget for the
Fiscal Year 2021-2022. To achieve this award, a governmental unit must publish a budget
document that meets program criteria as a policy document, an operations guide, a financial
plan, and a communications device.
The California Society of Municipal Finance Officers presented the District with the Certificate
of Award for Excellence in Operating Budgeting for Fiscal Year 2021-2022.
The California Society of Municipal Finance Officers presented the District with the Certificate
of Award for Excellence in Capital Budgeting for Fiscal Year 2021-2022.
We want to thank all the staff involved for their efforts to prepare this Annual Comprehensive Financial
Report and their hard work to ensure a successful outcome. We would also like to thank the firm of
Davis Farr LLP for their professional work and opinion.
To the Board of Directors, we acknowledge and appreciate the Board's continued support and
direction in achieving excellence in financial management.
Joseph R. Beachem
Chief Financial Officer
Jose Martinez
General Manager
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Organization Chart
District Position Count – (140 Positions)
Citizens and
Customers Board of Directors
General Manager (4)
Safety and
Security
Administration
Purchasing
and Facilities
Controller and
Budgetary
Services
Treasury and
Accounting
Services
Customer
Service
Meter
Services
Water System
Operations
Utility
Maintenance/
Construction
Water Resources,
Planning, Design
and
Environmental
Administrative
Services
(23)
Human
Resources
Information
Technology
and
Geographic
Information
System
Finance
(31)
Strategic
Planning
Public Services
and
Field Services
Engineering
(28)
Water
Operations
(54)
Collection,
Treatment, and
Reclamation
Operations
District Secretary
General Counsel
Public Information
Conservation
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List of Principal Officials
Tim Smith
President
Division 1
Mark Robak
Vice President
Division 5
Jose Lopez
Treasurer
Division 4
Ryan Keyes
Division 2
Board of Directors
The Otay Water District is a revenue-
neutral public agency established in
accordance with the California Water
Code. This not-for-profit status means
Otay has no private shareholders, pays no
dividends and therefore does not report
to, nor answer to the California Public
Utilities Commission. The District does,
however, answer to the public through a
five-member Board of Directors. Each
Director is elected by voters within their
respective division boundaries to
represent the public's interest with regard
to rates for service, taxes, policies,
ordinances, and other matters related to
the management and operation of the
Otay Water District. Directors serve four-
year alternating terms on the Board.
Gary Croucher
Division 3
Mission Statement
To provide exceptional water and
wastewater service to its customers, and
to manage District resources in a
transparent and fiscally responsible
manner.
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GFOA CERTIFICATE OF ACHIEVEMENT
FOR EXCELLENCE IN FINANCIAL REPORTING
The Government Finance Officers Association (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the Otay Water District for its
Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021. This
is the eighteenth year that the District has achieved this prestigious award. In order
to be awarded a Certificate of Achievement, the District had to publish an easily
readable and comprehensive report. This report must satisfy both Generally
Accepted Accounting Principles (GAAP) and applicable legal requirements.
This award is valid for a period of one year only. We believe our current Annual
Comprehensive Financial Report continues to meet the Certificate of Achievement
Program’s requirements, and will be submitting it to GFOA to determine its eligibility
for another certificate.
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Independent Auditor’s Report
Board of Directors
Otay Water District
Spring Valley, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the Otay Water District (District), as of and for
the year ended June 30, 2022 and the related notes to the financial statements, which
collectively comprise the District’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects,
the respective financial position of the District as of June 30, 2022, and the respective changes
in financial position and cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America (GAAS) and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities
for the Audit of the Financial Statements section of our report. We are required to be
independent of the District and to meet our other ethical responsibilities, in accordance with
the relevant ethical requirements relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As described further in Note 13 to the financial statements, during the year ended June 30,
2022, the District implemented Governmental Accounting Standards Board (GASB) Statement
No.87, Lease Accounting. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
The District’s management is responsible for the preparation and fair presentation of the
financial statements in accordance with accounting principles generally accepted in the United
States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the
District’s ability to continue as a going concern for one year after the date that the financial
statements are issued.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in
accordance with GAAS will always detect a material misstatement when it exists. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control. Misstatements are considered material if there is a
substantial likelihood that, individually or in the aggregate, they would influence the judgment
made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the
audit.
Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, and design and perform audit procedures responsive to
those risks. Such procedures include examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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 District’s internal control.
Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the District’s ability to continue as a
going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain
internal control–related matters that we identified during the audit.
Report on Summarized Comparative Information
The financial statements of the District for the year ended June 30, 2021 were audited by
other auditors whose report dated October 20, 2021 expressed an unmodified opinion on
those financial statements. In our opinion, the summarized comparative information
presented herein as of and for the year ended June 30, 2021, is consistent, in all material
respects, with the audited financial statements from which it has been derived.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management’s Discussion and Analysis, Schedule of Changes in the Net OPEB Liability and
Related Ratios, Schedule of Contributions, Schedule of Changes in the Net Pension Liability
and Related Ratios, and Schedule of Plan Contributions, be presented to supplement the basic
financial statements. Such information is the responsibility of management and, 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
Management is responsible for the other information included in the Annual Comprehensive
Financial Report. The other information comprises the introductory section and statistical
section but does not include the financial statements and our auditor's report thereon. Our
opinions on the financial statements do not cover the other information, and we do not
express an opinion or any form of assurance thereon. In connection with our audit of the
financial statements, our responsibility is to read the other information and consider whether
a material inconsistency exists between the other information and the financial statements,
or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
October 19, 2022 on our consideration of the 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 solely 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 the effectiveness of 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 District’s internal control
over financial reporting and compliance.
Irvine, California
October 19, 2022
Management’s Discussion and Analysis
As the management of the Otay Water District (the "District"), we offer readers of the District's financial
statements, this narrative overview, and an analysis of the District's financial performance during the fiscal
year ending June 30, 2022. Please read it in conjunction with the District's financial statements that follow
Management's Discussion and Analysis. All amounts, unless otherwise indicated, are expressed in millions
of dollars.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the District's basic financial
statements, which are comprised of the following: 1) Statement of Net Position, 2) Statement of Revenues,
Expenses, and Changes in Net Position, 3) Statement of Cash Flows, and 4) Notes to the Financial
Statements. This report also contains other supplementary information in addition to the basic financial
statements.
The Statement of Net Position presents information on the District's assets, deferred outflows of resources,
liabilities, and deferred inflows of resources, with the difference reported as Total Net Position. Over time,
increases or decreases in net positions may serve as a valuable indicator of whether the District's financial
position is improving or weakening.
The Statement of Revenues, Expenses, and Changes in Net Position presents information showing how
the District's net position changed during the most recent fiscal year. All changes in net positions 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 reported in this statement for some items that will
only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation
leave).
The Statement of Cash Flows presents information on cash receipts and payments for the fiscal year. The
Notes to the Financial Statements provide additional information essential to a complete understanding of
the data supplied in the specific financial statements listed above.
Financial Highlights
x The assets and deferred outflows of resources of the District exceeded its liabilities and deferred inflows of resources at
the close of the most recent fiscal year by $424.7 million (net position). Of this amount, $80.7 million (unrestricted net
position) may be used to meet the District’s ongoing obligations to residents and creditors.
x Total assets increased by $50.2 million or 8.92% during Fiscal Year 2022, to $613.0 million, due to increases in cash and
cash equivalents, investments, recording of lease receivables due to implementation of GASB 87, and net OPEB assets,
which were partially offset by a drop in capital assets due to depreciation exceeding current year additions.
4
Management’s Discussion and Analysis
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information concerning the District's progress in funding its obligation to provide
retirement benefits to its employees.
Financial Analysis:
As noted, net position may serve, over time, as a valuable indicator of an entity's financial position. In the
case of the District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of
resources by $424.7 million at the close of Fiscal Year 2022.
The most significant portion of the District's net position, $340.3 million (80%), reflects its investment in
capital assets, plus unused debt proceeds, less any remaining outstanding debt used to acquire those
capital assets. The District uses these capital assets to provide services to customers; consequently, these
assets are not available for future spending. Although the District's investment in its capital assets is
reported effectively as a resource, it should be noted that the resources needed to repay the debt must be
provided from other sources since the capital assets themselves cannot be used to liquidate these
liabilities.
5
Management’s Discussion and Analysis
Statement of Net Position
(In Millions of Dollars)
2022 2021 2020
Assets
Current and Other Assets $ 166.3 $ 111.2 $ 94.4
Capital Assets 446.7 451.6 456.5
Total Assets 613.0 562.8 550.9
Deferred Outflows of Resources
Deferred Actuarial Pension Costs 4.5 5.4 3.4
Deferred Actuarial OPEB Costs 3.1 2.5 1.1
Total Deferred Outflows of Resources 7.6 7.9 4.5
Liabilities
Current Liabilities 33.5 32.1 32.2
Long-Term Debt Outstanding 100.9 106.2 112.0
Net Pension Liability 0.3 20.0 16.6
Net OPEB Liability 0.0 1.8 0.0
Other Liabilities 3.7 3.9 3.5
Total Liabilities 138.4 164.0 164.3
Deferred Inflows of Resources
Deferred Inflows from Leases 36.6 0.0 0.0
Deferred Actuarial Pension Costs 14.4 0.0 1.3
Deferred Actuarial OPEB Costs 6.5 1.4 2.3
Total Deferred Inflows of Resources 57.5 1.4 3.6
Net Position
Net Investment in Capital Assets 340.3 340.4 345.2
Restricted for Debt Service 3.7 4.2 4.3
Unrestricted 80.7 60.7 38.0
Total Net Position $ 424.7 $ 405.3 $ 387.5
The District's operations and population are growing. Much of this expansion has occurred in the
residential sector, particularly in the multi-family dwellings and commercial areas. By 2055, the District's
service area population is expected to increase by 19% to 271,531 residents. The District has created
several future planning documents to ensure a reliable water supply and sewer system in the future,
including the maintenance of current infrastructure.
In FY 2022, the District's Capital Assets increased by $3.7 million before accumulated depreciation. (See
Note 4 in the Notes to Financial Statements). The District also saw a decrease in long-term debt of $5.3
6
Management’s Discussion and Analysis
million (excluding current maturities) due to annual debt service payments (See Note 5 in the Notes to
Financial Statements).
Total Liabilities decreased by $25.6 million in FY 2022 primarily due to decreases in Net Pension and OPEB
liabilities and annual debt service payments. In FY 2021, Total Liabilities decreased by $0.3 million due to a
reduction in long-term debt, partially offset by increases in Net Pension and Net OPEB liabilities.
In FY 2022, deferred outflows of resources decreased by $0.3 million due to the amortization of the
difference between projected and actual earnings of the pension plan. Deferred outflows of resources
increased by $3.4 million in FY 2021 due to additional funding of $1.2 million to CalPERS; an increase of
$1.0 million on the net difference between projected and actual earnings for the pension, a $1.0 million
increase in the OPEB differences between expected and actual experience, and a $0.2 million increase in
FY 2021 PERS Unfunded Actuarial Liability (UAL).
Deferred inflows of resources increased by $56.1 million in FY 2022 due to the recognition of deferred
inflows from leases related to the implementation of GASB Statement No. 87 Leases, and increases in
deferred Pension and OPEB investment income. Deferred inflows of resources declined by $2.2 million in
FY 2021 due to decreases in deferred investment income for the pension and OPEB.
At the end of FY 2022, the District reports positive balances in all net position categories. This situation also
applies to the prior two fiscal years.
Statement of Revenues, Expenses, and Changes in Net Position
(In Millions of Dollars)
2022 2021 2020
Water Sales $ 102.8 $ 101.7 $ 90.4
Wastewater Revenue 3.1 2.9 2.9
Connection and Other Fees 2.9 2.5 2.6
Non-operating Revenues 11.9 12.9 10.9
Total Revenues 120.7 120.0 106.8
Depreciation Expense 17.6 17.2 16.8
Other Operating Expenses 91.6 91.5 90.2
Non-operating Expenses 5.3 5.3 6.9
Total Expenses 114.5 114.0 113.9
Income (Loss) Before Capital
Contributions 6.2 6.0 (7.1)
Capital Contributions 13.2 11.8 7.0
Change in Net Position 19.4 17.8 (0.1)
Beginning Net Position 405.3 387.5 387.6
Ending Net Position $ 424.7 $ 405.3 $ 387.5
7
Management’s Discussion and Analysis
Water Sales increased by $1.1 million in FY 2022 due to the increase in water rates. Water Sales increased
by $11.3 million in FY 2021 due to an increase in units sold because of the lockdown during the pandemic
and higher water rates.
Other Operating Expenses increased by $0.1 million in FY 2022, predominantly due to the increase in the
cost of water, partially offset by decreases in wastewater costs and general and admin expenses. Other
Operating Expenses increased by $1.3 million in FY 2021, predominantly due to the increased water units
purchased because of increased water sales volumes. The FY 2021 increases were partially offset by a
credit received from the City of San Diego due to a reduction in the contractual recycled water volumes
resulting from the City's plant being shut down.
Specific planning and environmental study costs associated with capital projects do not qualify as capital
costs under Generally Accepted Accounting Principles. These costs are included in the District's
miscellaneous (non-operating) expenses. For FY 2022 and FY 2021, those expenses were $0.4 million and
$0.2 million, respectively.
Connection and Other Fees increased by $0.4 million in FY 2022 and decreased by $0.1 million in FY 2021
due to continued development in the District.
Capital Contributions increased by $1.4 million and $4.8 million in FY 2022 and FY 2021, respectively, due to
high demand in the housing development market.
Non-operating Revenues
Non-operating Revenues by Major Source
(In Millions of Dollars)
2022 2021 2020
Taxes and Assessments $ 5.2 $ 5.3 $ 4.9
Rents and Leases 2.1 1.6 1.5
Other Non-operating Revenue 4.6 6.0 4.5
Total Non-operating Revenues $ 11.9 $ 12.9 $ 10.9
The District's total non-operating revenues decreased by $1.0 million in FY 2022 due primarily to the
decrease in investment earnings. Total non-operating revenues increased by $2.0 million in FY 2021 due
mainly to the $3.2 million settlement from Metropolitan Water District (MWD), partially offset by a decrease
in investment earnings.
8
Management’s Discussion and Analysis
Capital Assets and Debt Administration
The District's capital assets (net of accumulated depreciation) as of June 30, 2022, totaled $446.7 million.
Included in this amount is land, which is a non-depreciable asset. The District's net capital assets
decreased by 1.09% and 1.07% in FY 2022 and FY 2021, respectively.
Capital Assets
(In Millions of Dollars)
As indicated by the figures in the table above, most capital assets added during both fiscal years were
related to the water systems. Additionally, most of the construction-in-progress cost is associated with
water systems. Additional information on the District's capital assets can be found in Note 4 of the Notes to
Financial Statements.
In November 2018, the District issued $32.4 million in Water Revenue Bonds, Series 2018, to provide funds
for the construction of water storage, treatment, and transmission facilities and advance refunded $6.9
million of the 1996 Certificates of Participation. As of June 30, 2022, all the bond proceeds were used to pay
for the construction cost of the water system.
In December 2019, the District issued $3.1 million in Wastewater Revenue Bonds to fund specific capital
improvements to the District's wastewater system. As of June 30, 2020, all the bond proceeds were used to
pay for the construction cost of the wastewater main replacement at Campo Road.
2022 2021 2020
Land $ 14.4 $ 14.4 $ 14.4
Construction in Progress 7.3 25.8 24.7
Potable Water System 535.5 506.7 498.1
Recycled Water System 117.8 116.6 115.5
Wastewater System 59.1 59.1 59.1
Field Equipment 8.1 8.1 8.4
Buildings 19.6 19.6 19.5
Transportation Equipment 3.8 3.8 3.6
Communication Equipment 2.5 2.8 2.7
Office Equipment 8.1 16.3 16.5
Right to Use Assets 0.7 0.0 0.0
Total Capital Assets 776.9 773.2 762.5
Less Accumulated
Depreciation (330.2) (321.6) (306.0)
Net Capital Assets $ 446.7 $ 451.6 $ 456.5
9
Management’s Discussion and Analysis
On June 30, 2022, the District had $100.9 million in outstanding debt (net of $5.3 million of maturities
occurring in FY 2023), which consisted of the following:
Lease Payable $ 0.7
Revenue Bonds 100.2
Total Long-Term Debt $ 100.9
Additional information on the District's long-term debt can be found in Note 5 of the Notes to Financial
Statements.
Fiscal Year 2022-2023 Budget
Economic Factors
The San Diego region imports 76% of its potable supply; therefore, factors such as local rainfall and
weather conditions elsewhere in the western portion of the nation can affect the region. San Diego
received below-average rainfall of 6.83 inches in FY 2022. The 10-year average of 8.90 inches for San Diego
rainfall reflects the long-term drought conditions for our area. San Diego's rainfall average over 20 years is
9.20 inches; the 30-year average is 9.44 inches, and the 40-year average is 9.80 inches.
While water sales peaked in 2008, prolonged droughts have led to an increase in conservation which has
had permanent influence on volumes. Higher rainfall resulted in a 2.37% decline in potable water sales
volume in FY 2022, whereas below-average rainfall and COVID-19 raised potable water sales volume by
10.7% in FY 2021. The FY 2023 sales volume is anticipated to increase by 1.2% compared to the previous
year's budget and decrease by 3.3% versus the FY 2021 actual sales volume.
The District continues to respond to the challenges presented by growth, State mandates, and drought by
creating new opportunities and new organizational efficiencies. Utilizing and refining its Strategic Business
Plan has captured the Board of Directors' vision and united its staff in a joint mission. The District has
achieved several significant accomplishments due to its successful adherence to its Strategic Business
Plan. The District is poised to continue successfully providing an affordable, safe, and reliable water supply
for the people of its service area, while also being set to reap the rewards of greater efficiencies and
economies of scale.
The District is currently at about 77% of its projected ultimate population, serving approximately 228,000
people. Long-term, this percentage should continue to increase as the District's service area develops and
grows. By 2055, the District is projected to serve approximately 271,531 people, with an average daily
demand of 36.6 million gallons per day (MGD) compared to the current average daily demand of 28.9
million gallons per day (MGD). Currently, the District services the needs of this growing population by
purchasing water from the San Diego County Water Authority (CWA), which in turn purchases its water
from the Metropolitan Water District (MWD) and the Imperial Irrigation District (IID).
10
Management’s Discussion and Analysis
Otay takes delivery of water through several connections of large-diameter pipelines owned and operated
by CWA. The District receives treated water from CWA directly and from the Helix Water District via a CWA
contract. Also, the District has an emergency agreement with the City of San Diego to purchase water in
the case of a shutdown of the primary treated water source. The City of San Diego also has a long-term
contract with the District to provide recycled water for landscape and irrigation usage. Through innovative
agreements like these, both parties can benefit by using another agency's excess capacity and diversifying
local supply, thereby increasing reliability.
Financial
The District is budgeted to deliver approximately 27,337 acre-feet of potable water to 51,494 potable
customer accounts during FY 2022-2023. The Fiscal Year 2023 budget was prepared with the continuing
challenges of inflation, supply-chain challenges, water supply rate increases, added CIP projects,
increasing power costs, and current and pending legislative initiatives. Additional hurdles include the
expenditures associated with the City of San Diego's Pure Water program, the County of San Diego's
renovation of shared facilities, and the anticipated future issuance of debt. The nationwide demand for
new homes and condominiums is expected to continue unabated. An increase in consumer goods
demand is expected due to the Federal government's assistance programs. District staff projects that the
District will sell another 1,384 meters over the next six years, translating to 3,890 equivalent dwelling units
(EDUs). This growth is estimated to increase sales volumes by an average of less than 1% per year over
the next five years. While all these factors impact the region's water usage, people's water needs remain
an underlying constant.
Management is unaware of any other conditions that are likely to have a significant impact on the District's
current financial position, net position, or operating results.
Contacting the District's Financial Management
This financial report provides a general overview of the Otay Water District's finances for the Board of
Directors, customers, creditors, and other interested parties. Questions concerning any information
provided in the report or requests for additional information should be addressed to the District's Finance
Department, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978-2004.
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14
2022 2021
ASSETS
Current Assets:
Cash and Cash Equivalents (Notes 1 and 2)87,556,645$ 84,818,274$
Board Designated Cash and Cash Equivalents (Notes 1 and 2)3,021,765 3,092,512
Restricted Cash and Cash Equivalents (Notes 1 and 2)186,346 816,218
Investments (Notes 1 and 2)11,689,224 -
Restricted Investments (Notes 1 and 2)3,499,094 3,666,097
Accounts Receivable, Net 15,450,919 14,840,937
Accrued Interest Receivable 262,315 144,169
Taxes and Availability Charges Receivable, Net 277,505 252,183
Restricted Taxes and Availability Charges Receivable, Net 15,059 21,170
Current Lease Receivable (Notes 11)1,055,499 -
Inventories 1,350,220 855,563
Prepaid Items and Other Receivables 2,507,703 2,710,237
Total Current Assets 126,872,294 111,217,360
Capital Assets (Note 4):
Land 14,423,773 14,423,773
Construction in Progress 7,306,003 25,786,352
Capital Assets, Net of Depreciation 425,017,900 411,352,279
Net OPEB Asset (Note 8)3,005,037 -
Lease Receivable (Note 11)36,446,255 -
Total Non-current Assets 486,198,968 451,562,404
Total Assets 613,071,262 562,779,764
DEFERRED OUTFLOWS OF RESOURCES
Deferred Actuarial Pension Costs (Note 7)4,481,769 5,421,523
Deferred Actuarial OPEB Costs (Note 8)3,078,056 2,439,632
Total Deferred Outflows of Resources 7,559,825 7,861,155
Continued
STATEMENT OF NET POSITION
(with comparative totals as of June 30, 2021)
June 30, 2022
The accompanying notes are an integral part of this statement.
15
2022 2021
LIABILITIES
Current Liabilities:
Current Maturities of Long-term Debt (Note 5)5,525,676$ 5,250,000$
Accounts Payable 15,694,680 14,735,726
Accrued Payroll Liabilities 978,174 910,173
Other Accrued Liabilities 4,973,784 4,985,693
Customer and Developer Deposits 4,658,907 4,480,951
Accrued Interest 1,649,672 1,722,189
Liabilities Payable from Restricted Assets:
Restricted Accrued Interest 9,600 19,000
Total Current Liabilities 33,490,493 32,103,732
Non-current Liabilities:
Long-term Debt (Note 5):
General Obligation Bonds 2,726 739,080
Revenue Bonds 100,237,053 105,484,807
Lease Payable 707,725 -
Net Pension Liability 280,298 20,043,519
Net OPEB Liability - 1,801,159
Other Non-current Liabilities 3,704,232 3,793,011
Total Non-current Liabilities 104,932,034 131,861,576
Total Liabilities 138,422,527 163,965,308
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows from Leases (Note 11)36,619,439 -
Deferred Actuarial Pension Costs (Note 7)14,422,139 -
Deferred Actuarial OPEB Costs (Note 8)6,444,195 1,424,536
Total Deferred Inflows of Resources 57,485,773 1,424,536
NET POSITION
Net Investment in Capital Assets 340,274,496 340,383,389
Restricted for Debt Service 3,685,440 4,187,443
Unrestricted 80,762,851 60,680,243
Total Net Position 424,722,787$ 405,251,075$
STATEMENT OF NET POSITION - Continued
June 30, 2022
(with comparative totals as of June 30, 2021)
The accompanying notes are an integral part of this statement.
16
Statements of Revenues, Expenses, and Changes in Net Position
2022 2021
OOPERATING REVENUES
Water Sales 102,807,098$ 101,742,970$
Wastewater Revenue 3,073,326 2,899,180
Connection and Other Fees 2,874,174 2,498,318
Total Operating Revenues 108,754,598 107,140,468
OOPERATING EXPENSES
Cost of Water Sales 70,562,038 66,889,570
Wastewater 1,802,256 2,633,413
Administrative and General 19,174,479 21,948,435
Depreciation 17,688,535 17,212,905
Total Operating Expenses 109,227,308 108,684,323
Operating Income (Loss)(472,710)(1,543,855)
NNON-OPERATING REVENUES (EXPENSES)
Investment Earnings (1,506,486)254,668
Taxes and Assessments 5,244,584 5,251,540
Availability Charges 740,928 686,697
Gain (Loss) on Disposal of Capital Assets (187,313)(159,734)
Rents and Leases 2,071,200 1,587,687
Miscellaneous Revenues 5,417,588 5,062,779
Donations (106,913)(84,389)
Interest Expense (4,551,134)(4,782,490)
Miscellaneous Expenses (447,192)(241,379)
Total Non-operating Revenues (Expenses)6,675,262 7,575,379
Income (Loss) Before Capital Contributions 6,202,552 6,031,524
Capital Contributions 13,269,160 11,752,788
Change in Net Position 19,471,712 17,784,312
Total Net Position, Beginning 405,251,075 387,466,763
Total Net Position, Ending 424,722,787$ 405,251,075$
For the Years Ended June 30, 2022 and 2021
The accompanying notes are an integral part of this statement.
17
2022 2021
CCASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers 105,448,398$ 104,028,293$
Receipts from Connections and Other Fees 2,874,174 2,498,318
Receipts from Property Rents and Leases 109,941 1,587,687
Other Receipts 4,634,753 4,222,338
Payments to Suppliers (73,728,635)(70,598,225)
Payments to Employees (22,002,283)(22,630,352)
Other Payments (554,105)(325,768)
Net Cash Provided By (Used For) Operating Activities 16,782,243 18,782,291
CCASH FLOWS FROM NONCAPITAL AND RELATED
FFINANCING ACTIVITIES
Receipts from Taxes and Assessments 5,483,041 5,170,067
Net Cash Provided By (Used For) Noncapital and Related
Financing Activities 5,483,041 5,170,067
CCASH FLOWS FROM CAPITAL AND RELATED
FFINANCING ACTIVITIES
Proceeds from Capital Contributions 9,236,895 8,560,257
Proceeds from Sale of Capital Assets 35,370 24,748
Proceeds from Property Rents and Leases 1,553,886 -
Proceeds from Debt Related Taxes and Assessments 483,260 748,857
Principal Payments on Long-Term Debt (5,265,100)(4,955,000)
Interest Payments and Fees (4,324,324)(4,551,016)
Acquisition and Construction of Capital Assets (8,325,724)(9,264,511)
Net Cash Provided By (Used For) Capital and Related
Financing Activities (6,605,737)(9,436,665)
CCASH FLOWS FROM INVESTING ACTIVITIES
Interest Received on Investments 518,928 371,234
Proceeds from Sale and Maturities of Investments 3,666,096 170,315
Purchase of Investments (17,806,819)(95,892)
Net Cash Provided By (Used For) Investing Activities (13,621,795)445,657
Net Increase (Decrease) in Cash and Cash Equivalents 2,037,752 14,961,350
Cash and Cash Equivalents - Beginning 88,727,004 73,765,654
Cash and Cash Equivalents - Ending 90,764,756$ 88,727,004$
Continued
Statements of Cash Flows
For the Years Ended June 30, 2022 and 2021
The accompanying notes are an integral part of this statement.
18
2022 2021
RReconciliation of Operating Income (Loss) to Net Cash Flows
PProvided By (Used For) Operating Activities:
Operating Income (Loss)(472,710)$ (1,543,855)$
Adjustments to Reconcile Operating Income to
Net Cash Provided By (Used For) Operating Activities:
Depreciation 17,688,535 17,212,905
Receipts from Property Rents and Leases 109,941 1,587,687
Miscellaneous Revenues 4,634,753 4,222,338
Miscellaneous Expenses and Donations (554,105) (325,768)
(Increase) Decrease in Accounts Receivable (609,982) (1,420,833)
(Increase) Decrease in Inventory (494,657) 87,001
(Increase) Decrease in Prepaid Items and Other Receivables 202,534 (706,267)
(Increase) Decrease in Net OPEB Asset (3,005,037) 20,021
(Increase) Decrease in Deferred Actuarial Pension Costs 939,754 (2,063,158)
(Increase) Decrease in Deferred Actuarial OPEB Costs (638,424) (1,300,097)
Increase (Decrease) in Accounts Payable 958,954 (1,488,391)
Increase (Decrease) in Accrued Payroll and Related Expenses 68,001 98,652
Increase (Decrease) in Other Accrued Liabilities (11,909) 341,188
Increase (Decrease) in Customer and Developer Deposits 177,956 806,976
Increase (Decrease) in Other Non-current Liabilities (88,779) 242,440
Increase (Decrease) in Net OPEB Liability (1,801,159) 1,801,159
Increase (Decrease) in Net Pension Liability (19,763,221) 3,426,664
Increase (Decrease) in Deferred Actuarial Pension Costs 14,422,139 (1,366,658)
Increase (Decrease) in Deferred Actuarial OPEB Costs 5,019,659 (849,713)
Net Cash Provided By (Used For) Operating Activities 16,782,243$ 18,782,291$
SSchedule of Cash and Cash Equivalents:
Current Assets:
Cash and Cash Equivalents 87,556,645$ 84,818,274$
Board Designated Cash and Cash Equivalents 3,021,765 3,092,512
Restricted Cash and Cash Equivalents 186,346 816,218
Total Cash and Cash Equivalents 90,764,756$ 88,727,004$
SSupplemental Disclosures
Non-Cash Investing and Financing Activities Consisted of the Following:
Contributed Capital for Water and Sewer System 4,032,265$ 3,192,531$
Change in Fair Value of Investments and Recognized Gains/Losses 2,618,502 360,636
Amortization Related to Long-term Debt 474,108 474,110
For the Years Ended June 30, 2022 and 2021
Statements of Cash Flows - Continued
The accompanying notes are an integral part of this statement.
19
Notes to Financial Statements
Year Ended June 30, 2022
NOTE DESCRIPTION PAGE
1 Reporting Entity and Summary of Significant Accounting Policies..…………… 21 – 31
2 Cash and Investments……………………………………………………………………………..…………….. 31 – 37
3 Fair Value Measurements…………………………………………..………........................................ 37 – 38
4 Capital Assets…………………………………………………..………………………………………………………. 39
5 Long-Term Debt………………………………………………….…………………………………………………… 40 – 45
6 Net Position……………………………………………………………………………………………………………….. 46
7 Defined Benefit Pension Plan……………………………………………………………………………….. 46 – 53
8 Other Post Employment Benefits………………………..…………............................................ 53 – 59
9 Commitments and Contingencies……………………………………………………………………… 59 – 61
10 Risk Management……………………………………………………………………………………………………. 61 – 62
11 Leases Receivable…..………………………………………………..……………………………………………. 62
12 Segment Information………………………………………………..……………………………………………. 63 - 65
13 Implementation of New Accounting Standards………………………………...…………… 65
Notes to Financial Statements
Year Ended June 30, 2022
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Reporting Entity
The reporting entity Otay Water District (the “District”) includes the accounts of the District and the Otay
Water District Financing Authority (the “Financing Authority”).
The District is a public entity established in 1956 pursuant to the Municipal Water District Law of 1911
(Section 711 et. Seq. of the California Water Code) for the purpose of providing water and wastewater
services to the properties in the District. The District is governed by a Board of Directors consisting of
five directors elected by geographical divisions based on District population for a four-year alternating
term.
The District formed the Financing Authority on March 3, 2010 under the Joint Exercise of Powers Act,
constituting Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the
California Government Code. The Financing Authority was formed to assist the District in the financing
of public capital improvements.
The financial statements present the District and its component unit. The District is the primary
government unit. Component units are those entities which are financially accountable to the primary
government, either because the District appoints a voting majority of the component unit’s board, or
because the component units will provide a financial benefit or impose a financial burden on the
District. The District has accounted for the Financing Authority as a “blended” component unit. Despite
being legally separate, the Financing Authority is so intertwined with the District that it is in substance,
part of the District’s operations. Accordingly, the balances and transactions of this component unit are
reported within the funds of the District. Separate financial statements are not issued for the Financing
Authority.
B) Measurement Focus, Basis of Accounting and Financial Statement Presentation
Measurement focus is a term used to describe “which” transactions are recorded within the various
financial statements. Basis of accounting refers to “when” transactions are recorded regardless of the
measurement focus applied. The accompanying financial statements are reported using the
economic resources measurement focus, and the accrual basis of accounting. Under the economic
measurement focus all assets and liabilities (whether current or noncurrent) associated with these
activities are included on the Statement of Net Position.
21
Notes to Financial Statements
Year Ended June 30, 2022
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
B) Measurement Focus, Basis of Accounting and Financial Statement Presentation - Continued
The Statement of Revenues, Expenses and Changes in Net Position present increases (revenues) and
decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing
of related cash flows.
The District reports its activities as an enterprise fund, which is used to account for operations that are
financed and operated in a manner similar to a private business enterprise, where the intent of the
District is that the costs (including depreciation) of providing goods or services to the general public on
a continuing basis be financed or recovered primarily through user charges.
The basic financial statements of the Otay Water District have been prepared in conformity with
accounting principles generally accepted in the United States of America. The Governmental
Accounting Standards Board (GASB) is the accepted standard setting body for governmental
accounting financial reporting purposes.
Net position of the District is classified into three components: (1) net investment in capital assets, (2)
restricted net position, and (3) unrestricted net position. These classifications are defined as follows:
Net Investment in Capital Assets
This component of net position consists of capital assets, net of accumulated depreciation and reduced
by the outstanding balances of notes or borrowing that are attributable to the acquisition of the assets,
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 the net investment in capital assets.
Restricted Net Position
This component of net position consists of net position with constrained use through external constraints
imposed by creditors (such as through debt covenants), grantors, contributions, or laws or regulations
of other governments or constraints imposed by law through constitutional provisions or enabling
legislation.
22
Notes to Financial Statements
Year Ended June 30, 2022
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B) Measurement Focus, Basis of Accounting and Financial Statement Presentation - Continued
Unrestricted Net Position
This component of net position consists of net position that do not meet the definition of “net investment
in capital assets” or “restricted net position”.
The District distinguishes operating revenues and expenses from those revenues and expenses that are
non-operating. Operating revenues are those revenues that are generated by water sales and
wastewater services while operating expenses pertain directly to the furnishing of those services. Non-
operating revenues and expenses are those revenues and expenses generated that are not associated
with the normal business of supplying water and wastewater treatment services.
The District recognizes revenues from water sales, wastewater revenues, and meter fees as they are
earned. Taxes and assessments are recognized as revenues based upon amounts reported to the
District by the County of San Diego, net of allowance for delinquencies of $32,507 at June 30, 2022.
Additionally, capacity fee contributions received which are related to specific operating expenses are
offset against those expenses and included in Cost of Water Sales in the Statement of Revenues and
Expenses and Changes in Net Position.
Sometimes the District will fund outlays for a particular purpose from both restricted (e.g., restricted bond
or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted
- net position and unrestricted - net position, a flow assumption must be made about the order in which
the resources are considered to be applied. It is the District’s practice to consider restricted - net position
to have been depleted before unrestricted - net position is applied, however it is at the Board’s discretion.
23
Notes to Financial Statements
Year Ended June 30, 2022
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C) New Accounting Pronouncements
Implemented as of June 30, 2022
Governmental Accounting Standard Board Statement No. 87
In June 2017, GASB issued Statement No. 87, Leases. This Statement was issued to increase the
usefulness of governmental financial statements by requiring recognition of certain lease assets and
liabilities for all leases, including those that previously were classified as operating leases and
recognized as income by lessors and expenditures by lessees. This Statement replaces the previous
lease accounting methodology and establishes a single model for lease accounting based on the
foundation principle that leases are a financing of the right to use an underlying asset.
Governmental Accounting Standard Board Statement No. 2019-3
In August 2019, GASB issued Statement No. 2019-3, Leases. This Statement was issued to increase
clarify, explain, or elaborate on the GASB’s new standards on accounting and financial reporting for
leases, GASB Statement 87, “Leases.”. The implementation guide includes new Q&As to address
accounting and financial reporting topics for leases relative to the following areas: Scope and
applicability of Statement 87 (1-11); Lease term (12-16); Short-term leases (17-20); Contracts that transfer
ownership (21-22); Lessee and lessor recognition and measurement for leases other than short-term
leases and contracts that transfer ownership (23-36) and (43-53); Notes to financial statements – lessees
and lessors (37-42) and (54-55); Lease incentives (56-57); Contracts with multiple components (58-62);
Contract combinations (63-64); Lease modifications and terminations (65-70); Sale-leaseback
transactions (71-72); Lease-leaseback transactions (73-74); Intra-entity leases (75); Effective date and
transition of Statement 87 (76-77).
Governmental Accounting Standard Board Statement No. 91
In May 2019, GASB issued Statement No. 91, Conduit Obligations. This Statement was issued to
provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in
practice associated with (1) commitments extended by issuers, (2) arrangements associated with
conduit debt obligations, and (3) related note disclosures. Currently, this Statement has no effect on
the District’s financial statements.
24
Notes to Financial Statements
Year Ended June 30, 2022
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C) New Accounting Pronouncements - Continued
Governmental Accounting Standard Board Statement No. 92
In January 2020, GASB issued Statement No. 92, Omnibus 2020. This Statement was issued to
enhance comparability in accounting and financial reporting and to improve the consistency of
authoritative literature by addressing practice issues that have been identified during implementation
and application of certain GASB Statements.
Governmental Accounting Standard Board Statement No. 93
In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates. This
Statement was issued to address those and other accounting and financial reporting implications that
result from the replacement of an IBOR. Currently, this Statement has no effect on the District’s financial
statements.
Governmental Accounting Standard Board Statement No. 97
In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and
Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—An
Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32
Leases. This Statement was issued to (1) increase consistency and comparability related to the
reporting of fiduciary component units in circumstances in which a potential component unit does not
have a governing board and the primary government performs the duties that a governing board
typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution
pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee
benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary
component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency,
and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section
457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and
for benefits provided through those plans. Currently, this Statement has no effect on the District’s
financial statements.
Notes to Financial Statements
Year Ended June 30, 2022
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C) New Accounting Pronouncements - Continued
Governmental Accounting Standard Board Statement No. 2019-1
In May 2019, GASB issued Statement No. 2019-1, Replacement of Interbank Offered Rates. This
Statement was issued to clarify, explain, or elaborate on certain GASB pronouncements. The guide
includes 14 new questions and answers to address application of existing GASB standards covering
various topics including Postemployment benefits – plan and employer (1-5); derivative instruments
(6); nonexchange transactions (7) impairment of capital assets and insurance recoveries (8); intra-
entity transfers of assets (9-10); fund balance reporting and governmental fund type definitions (11);
tax abatement disclosures (12); irrevocable split-interest agreements (13-14). Currently, this Statement
has no effect on the District’s financial statements.
Pending Accounting Pronouncements
GASB has issued the following statements which may impact the District’s financial reporting
requirements in the future:
i. GASB Statement 94 - “Public-Private and Public-Public Partnerships and Availability Payment
Arrangements”, effective for reporting periods beginning after June 15, 2022.
ii. GASB Statement 96 - “Subscription-Based Information Technology Arrangements”, effective
for reporting periods beginning after June 15, 2022.
iii. GASB Statement 99 - “Omnibus 2022”, effective for reporting periods beginning after June 15,
2023.
iv. GASB Statement 100 - “Accounting Changes and Error Corrections”, effective for reporting
periods beginning after June 15, 2023.
v. GASB Statement 101 - “Compensated Absences”, effective for reporting periods beginning
after December 15, 2023.
D) Deferred Outflows/ Deferred Inflows
In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net assets that applies to a future period(s) and so will not be recognized
as an outflow of resources (expense/expenditure) until then. The District has two items that qualify for
reporting in this category, deferred actuarial pension costs and deferred actuarial OPEB costs are items
that are deferred and recognized as an outflow of resources in the period the amounts become available.
26
Notes to Financial Statements
Year Ended June 30, 2022
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
D) Deferred Outflows/ Deferred Inflows - Continued
In addition to liabilities, the Statement of Net Position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net assets that applies to a future period(s) and will not be recognized as an
inflow of resources (revenue) until that time. The District has three items that qualify for reporting in this
category.
Accordingly, the items, deferred actuarial pension costs, deferred actuarial OPEB costs, and deferred
lease revenue are deferred and recognized as an inflow of resources in the period that the amounts
become available.
E) Statement of Cash Flows
For purposes of the Statement of Cash Flows, the District considers all highly liquid investments
(including restricted assets) with a maturity period, at purchase, of three months or less to be cash
equivalents.
F) Investments
Investments are stated at their fair value, which represents the quoted or stated market value.
Investments that are not traded on a market, such as investments in external pools, are valued based
on the stated fair value as presented by the external pool. All investments are stated at their fair value.
The District has not elected to report certain investments at amortized costs.
G) Inventory and Prepaid Items
Inventory consists primarily of materials used in the construction and maintenance of the water and
wastewater system and is valued at weighted average cost. Both inventory and prepaid items use the
consumption method whereby they are reported as an asset and expensed as they are consumed.
H) Capital Assets
Capital assets are recorded at cost, where historical records are available, and at an estimated historical
cost where no historical records exist.
27
Notes to Financial Statements
Year Ended June 30, 2022
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
H) Capital Assets – Continued
Infrastructure assets in excess of $20,000 and other capital assets in excess of $10,000 are capitalized if
they have an expected useful life of two years or more. The District will also capitalize individual
purchases under the capitalization threshold if they are part of a new capital program. The cost of
purchased and self-constructed additions to utility plant and major replacements of property are
capitalized. Costs include materials, direct labor, transportation, and such indirect items as engineering,
supervision, employee fringe benefits and overhead. Repairs, maintenance, and minor replacements of
property are charged to expense. Donated assets are capitalized at their acquisition value on the date
contributed.
Depreciation is calculated using the straight-line method over the following estimated useful lives:
Water System 15-70 Years
Field Equipment 2-50 Years
Buildings 30-50 Years
Communication Equipment 2-10 Years
Transportation Equipment 2-7 Years
Office Equipment 2-10 Years
Recycled Water System 50-75 Years
Wastewater System 25-50 Years
Right to Use Asset The estimated life of the leased asset or the
contract term whichever is shorter
I) Other Non-current Liabilities
For compensated absences, the District’s policy is to record vested and accumulated vacation and sick
leave as an expense and liability as benefits accrue to employees.
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Compensated absences 3,509,161$ 3,437,206$ (3,521,817)$ 3,424,550$ 342,455$
Customer credits 278,122 - (12,629) 265,493 -
Reimbursement agreements 356,644 - - 356,644 -
Total 4,143,927$ 3,437,206$ (3,534,446)$ 4,046,687$ 342,455$
28
Notes to Financial Statements
Year Ended June 30, 2022
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
I) Other Non-current Liabilities – Continued
Current portion is reflected in accrued payroll liabilities and remainder in other non-current liabilities on
the Statement of Net Position.
J) Classification of Liabilities
Certain current liabilities have been classified as current liabilities payable from restricted assets as
they will be funded from restricted assets.
K) Allowance for Doubtful Accounts
The District charges doubtful accounts arising from water sales receivable to bad debt expense when it
is probable that the accounts will be uncollectible. Uncollectible accounts are determined by the
allowance method based upon prior experience and management’s assessment of the collectability of
existing specific accounts. The allowance for doubtful accounts was $177,283 for 2022.
L) Property Taxes
Tax levies are limited to 1% of full market value (at time of purchase) which results in a tax rate of $1.00
per $100 assessed valuation, under the provisions of Proposition 13. Tax rates for voter-approved
indebtedness are excluded from this limitation.
The County of San Diego (the “County”) bills and collects property taxes on behalf of the District. The
County’s tax calendar year is July 1 to June 30. Property taxes attach as a lien on property on January 1.
Taxes are levied on July 1 and are payable in two equal installments on November 1 and February 1,
and become delinquent after December 10 and April 10, respectively.
M) Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related
to pensions, and pension expense, information about the fiduciary net position of the District’s
California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions
from the Plans’ fiduciary net position have been determined on the same basis as they are reported
by CalPERS.
29
Notes to Financial Statements
Year Ended June 30, 2022
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
M) Pensions – Continued
For this purpose, benefit payments (including refunds of employee contributions) are recognized
when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
N) Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability(asset), deferred outflows/inflows of resources related
to OPEB, and OPEB expense, information about the fiduciary net position of the District’s plan (OPEB
Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on
the same basis. For this purpose, benefit payments are recognized when currently due and payable in
accordance with the benefit terms. Investments are reported at fair value.
Generally accepted accounting principles require that the reported results must pertain to liability and
asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2021
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
O) Leases
The District is a lessor and lessee for leases as detailed in Footnotes 5 and 11. The District recognizes
a lease receivable, a deferred inflow of resources, and a lease payable in the financial statements.
At the commencement of the lease, the District initially measures the lease receivable at the present
value of payments expected to be received and paid during the lease term. Subsequently, the lease
receivable is reduced by the principal portion of lease payments received and the lease payable is
reduced by the principal portion of lease payments made. The deferred inflow of resources is initially
measured as the initial amount of the lease receivable, adjusted for lease payments received at or
before the lease commencement date. Subsequently, the deferred inflows of resources is recognized
as revenue over the life of the lease term.
30
Notes to Financial Statements
Year Ended June 30, 2022
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
O) Leases – Continued
Key estimates and judgments include how the district determines the discount rate it uses to discount
the expected lease receipts and payments to present value, lease term and lease receipts.
x The District used the estimated cost of capital rate as the discount rate for leases.
x The lease term includes the noncancellable period of the lease.
The District monitors changes in circumstances that would require a remeasurement of its leases and
will remeasure the lease receivable and deferred inflows of resources if certain changes occur that
are expected to significantly affect the amount of the lease receivable.
P) Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles in
the United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources,
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimates.
Q) Prior Year Comparative Information
Selected information regarding the prior year has been included in the accompanying financial
statements. This information has been included for comparison purposes only and does not represent
a complete presentation in accordance with generally accepted accounting principles. Accordingly,
such information should be read in conjunction with the government’s prior year financial statements,
from which this selected financial data was derived. In addition, certain minor reclassifications of the
prior year data have been made to enhance their comparability to the current year.
2) CASH AND INVESTMENTS
The primary goals of the District’s Investment Policy are to assure compliance with all Federal, State, and
Local laws governing the investment of funds under the control of the organization, protect the principal of
investments entrusted, remain sufficiently liquid to enable the District to meet all operating requirements and
generate income under the parameters of such policies.
31
Notes to Financial Statements
Year Ended June 30, 2022
2) CASH AND INVESTMENTS - Continued
Cash and Investments are classified in the accompanying financial statements as follows:
Cash and Investments consist of the following:
Investments Authorized by the California Government Code and the District’s Investment Policy
The table on the following page identifies the investment types that are authorized for the District by the
California Government Code (or the District’s Investment Policy, where more restrictive). The table also
identifies certain provisions of the California Government Code (or the District’s Investment Policy, where
more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does
not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt
agreements of the District, rather than the general provisions of the California Government Code or the
District’s Investment Policy.
Statement of Net Position:
Cash and Cash Equivalents 87,556,645$
Board Designated Cash and Cash Equivalents 3,021,765
Restricted Cash and Cash Equivalents 186,346
Investments 11,689,224
Restricted Investments 3,499,094
Total Cash and Investments 105,953,074$
Cash on Hand 2,950$
Deposits with Financial Institutions 1,868,242
Investments 104,081,882
Total Cash and Investments 105,953,074$
32
Notes to Financial Statements
Year Ended June 30, 2022
2) CASH AND INVESTMENTS - Continued
Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity Of Portfolio(1) In One Issuer
U.S. Treasury Obligations 5 years 100% 100%
U.S. Government Sponsored Entities 5 years 100% 100%
Certificates of Deposit 5 years 15% 100%
Corporate Medium-Term Notes 5 years 10% 2%
Commercial Paper 270 days 10% 2%
Money Market Mutual Funds N/A 10% 100%
County Pooled Investment Funds N/A 100% N/A
Local Agency Investment Fund (LAIF) N/A $75 Million N/A
(1)Excluding amounts held by bond trustee that are not subject to California Government Code
restrictions.
Investments Authorized by Debt Agreements
Investments of debt proceeds held by the bond trustee are governed by provisions of the debt agreements,
rather than the general provisions of the California Government Code or the District’s Investment Policy.
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates.
One of the ways that the District manages its exposure to interest rate risk is by purchasing investments with
shorter durations than the maximum allowable under the District’s Investment Policy and by timing cash
flows from maturities, so that a portion of the portfolio is maturing or coming close to maturity evenly over
time, as necessary, to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the District’s investments to market interest rate
fluctuations are provided by the following tables that show the distribution of the District’s investments by
maturity as of June 30, 2022.
33
Notes to Financial Statements
Year Ended June 30, 2022
2) CASH AND INVESTMENTS – Continued
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 minimum rating required by (where applicable) the California
Government Code or the District’s Investment Policy, or debt agreements, and the Moody’s ratings as of June
30, 2022.
Concentration of Credit Risk
The investment policy of the District contains various limitations on the amounts that can be invested in any
one type or group of investments and in any issuer, beyond that stipulated by the California Government
Code, Sections 53600 through 53692. All the investments for fiscal year 2022 are within the limitations of the
District’s investment policy.
12 Months 13 to 36 More than
Investment Type Total Or Less Months 36 Months
U.S. Government Sponsored Entities $ 15,122,453 -$ 7,822,100$ 7,300,353$
Local Agency Investment Fund (LAIF) 33,659,564 33,659,564 - -
San Diego County Pool 55,234,000 55,234,000 - -
Money Market Funds 65,865 65,865 - -
Total $ 104,081,882 $ 88,959,429 $ 7,822,100 $ 7,300,353
Remaining Maturity (in Months)
Legal
Minimum Not
Investment Type Total Rating AAA Rated
U.S. Government Sponsored Entities $ 15,122,453 A 15,122,453$ -$
Local Agency Investment Fund (LAIF) 33,659,564 N/A -33,659,564
San Diego County Pool 55,234,000 N/A -55,234,000
Money Market Funds 65,865 AAA 65,865 -
Total $ 104,081,882 15,188,318$ 88,893,564$
Rating as of Year End
34
Notes to Financial Statements
Year Ended June 30, 2022
2) CASH AND INVESTMENTS – Continued
The investments listed below disclose the concentration of risk within the District’s investment portfolio.
Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment
pools) that represent 5% or more of total District investments as of June 30, 2022:
Issuer Investment Type Reported Amount
Federal Home Loan Bank U.S. Government Sponsored
Entities
$ 5,890,920
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution,
a government will not be able to recover its deposits or will not be able to recover collateral securities that
are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event
of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to
recover the value of its investment or collateral securities that are in the possession of another party. The
California Government Code and the District’s Investment Policy do not contain legal or policy requirements
that would limit the exposure to custodial credit risk for deposits or investments, other than the following
provision for deposits: The California Government Code requires that a financial institution secure deposits
made by state or local government units by pledging securities in an undivided collateral pool held by a
depository regulated under state law (unless so waived by the governmental unit). The market value of the
pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public
agencies. California law also allows financial institutions to secure deposits by pledging first trust deed
mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2022, $2,397,878 of
the District’s deposits with financial institutions in excess of federal depository insurance limits, were held in
collateralized accounts.
Local Agency Investment Fund (LAIF)
The District is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the State of California.
The fair value of the District’s investment in this pool is reported in the accompanying financial statements
at amounts based upon District’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio
(in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the
accounting records maintained by LAIF, which are recorded on an amortized cost-basis.
35
Notes to Financial Statements
Year Ended June 30, 2022
2) CASH AND INVESTMENTS – Continued
The LAIF is a special fund of the California State Treasury through which local governments may pool
investments. The District may invest up to $75,000,000 in the fund. Investments in LAIF are highly liquid, as
deposits can be converted to cash within twenty-four hours without loss of interest. Investments with LAIF
are secured by the full faith and credit of the State of California. The annualized yield of LAIF for the quarter
ended June 30, 2022 was 0.69%. The estimated amortized cost and fair value of the LAIF pool at June 30,
2022 was $33,659,564.
San Diego County Pooled Fund
The San Diego County Pooled Investment Fund (SDCPIF) is a pooled investment fund program governed
by the County of San Diego Board of Supervisors and administered by the County of San Diego Treasurer
and Tax Collector. Investments in SDCPIF are highly liquid as deposits and withdrawals can be made at
any time without penalty, determined on an amortized cash basis, the same as the fair value of the District’s
position in the pool.
The County of San Diego’s bank deposits are either federally insured or collateralized in accordance with
the California Government Code. Pool detail is included in the County of San Diego Comprehensive Annual
Financial Report (“Annual Report”). Copies of the Annual Report may be obtained from the County of San
Diego Auditor-Controller’s Office – 1600 Pacific Coast Highway, San Diego California 92101.
Restricted Cash and Cash Equivalents
Board Designated Cash and Investments
Cash and investments are Board restricted for the cost of the following District projects:
Debt Service:
General Obligation Bond ID No. 27-2009 186,346$
Cash and Cash Equivalents:
New Water Supply 3,021,765$
36
Notes to Financial Statements
Year Ended June 30, 2022
2) CASH AND INVESTMENTS – Continued
Restricted Investments
3) FAIR VALUE MEASUREMENTS
Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurements and
Application, provides the framework for measuring fair value. The framework provides a fair value
hierarchy that prioritizes the inputs to valuation techniques used to measure fair value with Level 1 given
the highest priority and Level 3 the lowest priority. The three levels of the fair value hierarchy are as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the
organization has the ability to access at the measurement date.
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly. Level 2 inputs include the following:
a. Quoted prices for similar assets or liabilities in active markets.
b. Quoted prices for identical or similar assets or liabilities in markets that are not active.
c. Inputs other than quoted prices that are observable for the asset or liability (for example, interest
rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds,
loss severities, credit risks, and default rates).
d. Inputs that are derived principally from or corroborated by observable market data by correlation
or other means (market-corroborated inputs).
Level 3 inputs are unobservable inputs for the asset or liability.
Debt Service:
Water Revenue Bond Series 2010A 964,819$
Water Revenue Bond Series 2010B 2,534,275
$ 3,499,094
37
Notes to Financial Statements
Year Ended June 30, 2022
3) FAIR VALUE MEASUREMENTS - Continued
Fair value of assets measured on a recurring basis at June 30, 2022 are as follows:
Investments classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique.
Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices.
Investments not measured at fair value do not fall under the fair value hierarchy as there is no active
market for the investments.
Significant Other
Observable Inputs Not Measured
Total (Level 2)at Fair Value
U.S. Government Sponsored Entities 15,122,453$ 15,122,453$ -$
Local Agency Investment Fund (LAIF) 33,659,564 - 33,659,564
San Diego County Pool 55,234,000 - 55,234,000
Money Market Funds 65,865 - 65,865
Total $ 104,081,882 $ 15,122,453 $ 88,959,429
38
Notes to Financial Statements
Year Ended June 30, 2022
4) CAPITAL ASSETS
The following is a summary of changes in Capital Assets for the year ended June 30, 2022:
Depreciation expense for the year ended June 30, 2022 was $17,688,535.
Beginning Ending
Balance Additions Deletions Balance
Capital Assets, Not Depreciated:
Land $ 14,423,773 $ -$-$ 14,423,773
Construction in Progress 25,786,352 8,325,724 (26,806,073) 7,306,003
Total Capital Assets, Not Depreciated 40,210,125 8,325,724 (26,806,073) 21,729,776
Capital Assets, Being Depreciated:
Infrastructure 682,453,956 30,710,630 (763,282) 712,401,304
Field Equipment 8,107,404 85,186 (82,826) 8,109,764
Buildings 19,581,800 40,230 (3,776) 19,618,254
Transportation Equipment 3,750,101 75,148 (85,417) 3,739,832
Communication Equipment 2,777,165 66,083 (331,430) 2,511,818
Office Equipment 16,313,938 99,896 (8,312,114) 8,101,720
Right to Use Assets -738,501 -738,501
Total Capital Assets, Being Depreciated 732,984,364 31,815,674 (9,578,845) 755,221,193
Less Accumulated Depreciation:
Infrastructure 285,006,319 16,018,245 (311,541) 300,713,023
Field Equipment 6,399,838 277,337 (82,826) 6,594,349
Buildings 9,955,756 555,231 (3,776) 10,507,211
Transportation Equipment 2,550,362 275,208 (85,417) 2,740,153
Communication Equipment 2,485,718 135,141 (331,430) 2,289,429
Office Equipment 15,234,092 392,206 (8,302,337) 7,323,961
Right to Use Assets -35,167 -35,167
Total Accumulated Depreciation 321,632,085 17,688,535 (9,117,327) 330,203,293
Total Capital Assets, Being Depreciated, Net 411,352,279 14,127,139 (461,518) 425,017,900
Total Capital Assets, Net $ 451,562,404 $ 22,452,863 $ (27,267,591) $ 446,747,676
39
Notes to Financial Statements
Year Ended June 30, 2022
5) LONG-TERM DEBT
Long-term liabilities for the year ended June 30, 2022 are as follows:
General Obligation Bonds
In June 1998, the District issued $11,835,000 of General Obligation Refunding Bonds. The proceeds of this
issue, together with other lawfully available monies, were to be used to establish an irrevocable escrow to
advance refund and defease in their entirety the District’s previous outstanding General Obligation Bond
issue. In November 2009, the District issued $7,780,000 of General Obligation Refunding Bonds Improvement
District No. 27-2009 to refund the 1998 issue. The proceeds from the bond issue were $7,989,884, which
included an original issue premium of $209,884.
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
General Obligation Bonds:
Improvement District No. 27 – 2009 1,425,000$ -$ (705,000)$ 720,000$ 720,000$
Unamortized Bond Premium 19,080 - (16,354) 2,726 -
Net General Obligation Bonds 1,444,080 - (721,354) 722,726 720,000
Revenue Bonds:
2010 Water Revenue Bonds Series A 4,825,000 - (1,120,000) 3,705,000 1,175,000
2010 Water Revenue Bonds Series B 36,355,000 - - 36,355,000 -
2013 Water Revenue Refunding Bonds 2,415,000 - (775,000) 1,640,000 805,000
2016 Water Revenue Refunding Bonds 27,870,000 - (1,215,000) 26,655,000 1,285,000
2018 Water Revenue Bonds 29,880,000 - (1,370,000) 28,510,000 1,455,000
2019 Wastewater Revenue Bonds 3,120,000 - (65,000) 3,055,000 70,000
2010 Series A Unamortized Premium 241,805 - (74,401) 167,404 -
2013 Bonds Unamortized Premium 208,206 - (96,095) 112,111 -
2016 Bonds Unamortized Premium 2,708,333 - (178,571) 2,529,762 -
2018 Bonds Unamortized Premium 2,419,451 - (109,148) 2,310,303 -
2019 Bonds Unamortized Discount (12,988) - 461 (12,527) -
Net Revenue Bonds 110,029,807 - (5,002,754) 105,027,053 4,790,000
Lease Payable - 738,501 (15,100) 723,401 15,676
Total Long-Term Liabilities 111,473,887$ 738,501$ (5,739,208)$ 106,473,180$ 5,525,676$
40
Notes to Financial Statements
Year Ended June 30, 2022
5) LONG-TERM DEBT - Continued
These bonds are general obligations of Improvement District No. 27 (ID 27) of the District. The Board of
Directors has the power and is obligated to levy annual ad valorem taxes without limitation, as to rate or
amount for payment of the bonds and the interest upon all property which is within ID 27 and subject to
taxation. The General Obligation Bonds are payable from District-wide tax revenues. The Board may utilize
other sources for servicing the bond debt and interest.
The Improvement District No. 27-2009 General Obligation Refunding Bonds have interest rates from 3.00%
to 4.00% with maturities through Fiscal Year 2023.
Future debt service requirements for the bonds are as follows:
For the Year Ended
June 30, Principal Interest
2023 $ 720,000 $ 14,400
Water Revenue Bonds
In April 2010, Water Revenue Bonds with a face value of $50,195,000 were sold by the Otay Water District
Financing Authority to provide funds for the construction of water storage and transmission facilities. The
bond issue consisted of two series; Water Revenue Bonds, Series 2010A (Non-AMT Tax Exempt) with a face
value of $13,840,000 plus a $1,078,824 original issue premium, and Water Revenue Bonds, Series 2010B
(Taxable Build America Bonds) with a face value of $36,355,000. The Series 2010A bonds are due in annual
installments of $785,000 to $1,295,000 from September 1, 2012 through September 1, 2025; bearing interest
at 2% to 5.25%. The Series 2010B bonds are due in annual installments of $1,365,000 to $3,505,000 from
September 1, 2026 through September 1, 2040; bearing interest at 6.377% to 6.577%.
Interest on both Series is payable on September 1, 2010 and semiannually thereafter on March 1st and
September 1st of each year until maturity or earlier redemption. The installment payments are to be made
from taxes and net revenues of the Water System as described in the installment purchase agreement, on
parity with the payments required to be made by the District for the 2013, 2016 Water Revenue Refunding
Bonds and 2018 Water Revenue Bonds described below.
The original issue premium is being amortized over the 14-year life of the Series 2010A bonds. Amortization
for the year ending June 30, 2022 was $74,401. The amortizations are included in interest expense. The
unamortized premium at June 30, 2022 is $167,404.
41
Notes to Financial Statements
Year Ended June 30, 2022
5) LONG-TERM DEBT – Continued
Water Revenue Bonds – Continued
The 2010 Water Revenue Bonds contains various covenants and restrictions, principally that the District fix,
prescribe, revise and collect rates, fees and charges for the Water System which will at least be sufficient to
yield, during each fiscal year, taxes and net revenues equal to one hundred twenty-five percent (125%) of
the debt service for such fiscal year. The District was in compliance with these rate covenants for the fiscal
year ended June 30, 2022.
In June 2013, the 2013 Water Revenue Refunding Bonds were issued to defease the 2004 Refunding
Certificates of Participation. The bonds were issued with a face value of $7,735,000 plus a $984,975 original
issue premium. The bonds are due in annual installments of $660,000 to $835,000 from September 1, 2013
through September 1, 2023; bearing interest at 1% to 4%. The installment payments are to be made from
taxes and net revenues of the Water System, on parity with the payments required to be made by the District
for the 2016 Water Revenue Refunding Bonds, the 2010A, 2010B and 2018 Water Revenue Bonds.
The original issue premium is being amortized over the 11-year life of the Series 2013 bonds. Amortization
for the year ending June 30, 2022 was $96,095. The amortizations are included in interest expense. The
unamortized premium at June 30, 2022 is $112,111.
In May 2016, Water Revenue Refunding Bonds were issued to defease the 2007 Revenue Certificates of
Participation. The bonds are due in annual installments of $1,200,000 to $2,235,000 from September 1, 2016
through September 1, 2036; bearing interest of 2% to 5%. The bonds were issued with a face value of
$33,385,000 plus $3,630,950 original issue premium. The savings between the cash flow required to service,
the old debt and the cash flow required to service the new debt is $5,664,140 and represent an economic
gain on refunding of $4,538,175.
The original issue premium is being amortized over the 20-year life of the Series 2016 bonds. Amortization
for the year ending June 30, 2022 was $178,571. The amortizations are included in interest expense. The
unamortized premium at June 30, 2022 is $2,529,762.
In November 2018, Water Revenue Bonds were issued to provide funds for construction of water storage,
treatment and transmission facilities and to refinance the 1996 Certificates of Participation. The bonds are
due in annual installments of $775,000 to $1,915,000 from September 1, 2019 through September 1, 2043;
bearing interest of 3% to 5%. The bonds were issued with a face value of $32,435,000 plus $2,710,512 original
issue premium.
42
Notes to Financial Statements
Year Ended June 30, 2022
5) LONG-TERM DEBT – Continued
Water Revenue Bonds – Continued
The original issue premium is being amortized over the 25-year life of the Series 2018 bonds. Amortization
for the year ending June 30, 2022 was $109,148. The amortization expense is included in interest expense.
The unamortized premium at June 30, 2022 is $2,310,303.
The total amount outstanding at June 30, 2022 and aggregate maturities of the revenue bonds for the fiscal
years subsequent to June 30, 2022, are as follows:
For the Year
Ended June 30,Principal Interest Principal Interest Principal Interest
2023 1,175,000$ 159,113$ -$ 2,371,868$ 805,000$ 49,500$
2024 1,235,000 98,862 - 2,371,868 835,000 16,700
2025 1,295,000 33,994 - 2,371,868 - -
2026 - - 1,365,000 2,328,345 - -
2027 - - 1,450,000 2,238,589 - -
2028-2032 - - 8,760,000 9,631,793 - -
2033-2037 - - 12,005,000 6,275,281 - -
2038-2042 --12,775,000 1,747,345 --
3,705,000$ 291,969$ 36,355,000$ 29,336,957$ 1,640,000$ 66,200$
2013 Water Revenue
Refunding Bonds
2010 Water Revenue Bond
Series A
2010 Water Revenue Bond
Series B
For the Year
Ended June 30,Principal Interest Principal Interest
2023 1,285,000$ 941,706$ 1,455,000$ 1,223,413$
2024 1,350,000 875,831 1,650,000 1,145,788
2025 1,420,000 806,581 1,730,000 1,061,288
2026 1,495,000 733,706 1,820,000 972,538
2027 1,570,000 657,081 1,915,000 879,163
2028-2032 8,955,000 2,238,718 5,685,000 3,479,288
2033-2037 10,580,000 761,972 6,775,000 2,122,338
2038-2042 - - 5,905,000 875,269
2043-2044 - - 1,575,000 63,500
26,655,000$ 7,015,595$ 28,510,000$ 11,822,585$
2016 Water Revenue 2018 Water Revenue
Refunding Bonds Refunding Bonds
43
Notes to Financial Statements
Year Ended June 30, 2022
5) LONG-TERM DEBT - Continued
Wastewater Revenue Bonds
In December 2019, Wastewater Revenue Bonds were issued to provide funds to pay for certain capital
improvements to the District’s wastewater system. The bonds are due in annual installments of $65,000 to
$160,000 from September 1, 2021 through September 1, 2049; bearing interest of 2% to 3.125%. The bonds
were issued with a face value of $3,120,000 less a $13,680 original issue discount.
The original issue discount is being amortized over the 30-year life of the Series 2019 bonds. Amortization
for the year ending June 30, 2022 was $(461). The amortization expense is included in interest expense. The
unamortized discount at June 30, 2022 is $(12,527).
The 2019 Wastewater Revenue Bonds contains various covenants and restrictions, principally that the
District fix, prescribe, revise and collect rates, fees and charges for the Wastewater System which will at least
be sufficient to yield, during each fiscal year, net revenues equal to one hundred fifteen percent (115%) of
the debt service for such fiscal year. The District was in compliance with these rate covenants for the fiscal
year ended June 30, 2022.
Future debt service requirements for the bonds are as follows:
For the Year
Ended June 30,Principal Interest
2023 70,000$ 88,741$
2024 75,000 87,291
2025 75,000 85,416
2026 80,000 83,091
2027 80,000 80,691
2028-2032 445,000 365,069
2033-2037 505,000 299,722
2038-2042 585,000 221,984
2043-2047 675,000 126,875
2048-2051 465,000 22,109
3,055,000$ 1,460,989$
2019 Wastewater
Revenue Bonds
44
Notes to Financial Statements
Year Ended June 30, 2022
5) LONG-TERM DEBT – Continued
Revenues Pledged
The District has pledged a portion of future water sales revenues to repay its Water Revenue and Water
Revenue Refunding Bonds. Total principal and interest remaining on the water revenue bonds and water
revenue refunding bonds is $145,398,305 payable through fiscal year 2044. For June 30, 2022, principal and
interest paid by the water sales revenues were $4,480,000 and $4,967,700 respectively.
The District has pledged a portion of future wastewater sales revenues to repay its Wastewater Revenue
Bonds. Total principal and interest remaining on the wastewater revenue bonds is $4,515,991 payable
through fiscal year 2050. For June 30, 2022, principal and interest paid by the wastewater sales revenues
were $65,000 and $90,091, respectively
Lease Payable
Antenna Site Lease
The District has one antenna site sublease payable with a lease term of forty-eight years. The District is
required to make annual fixed payments ranging from $15,100 to $64,303, with a discount rate of 1.39%.
The lease has three extension options of 5 years each. As of June 30, 2022, the value of the lease payable
is $723,401. Future lease payable requirements are as follows:
For the Year
Ended June 30,Principal Interest
2023 15,676$ 9,956$
2024 17,188 9,728
2025 18,781 9,479
2026 20,469 9,207
2027 22,253 8,911
2028-2032 141,611 39,180
2033-2037 203,442 27,318
2038-2042 283,981 10,546
723,401$ 124,325$
45
Notes to Financial Statements
Year Ended June 30, 2022
6) NET POSITION
Designations of Net Position
In addition to the restricted net position, a portion of unrestricted net position has been designated by the
Board of Directors for the following purposes as of June 30, 2022:
7) DEFINED BENEFIT PENSION PLAN
A) General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the District’s Plan,
agent multiple-employer defined benefit pension plans administered by the California Public
Employees’ Retirement System (CalPERS), which acts as a common investment and administrative
agent for its participating member employers. Benefit provisions under the Plans are established by
State statute and District resolution.
CalPERS issues publicly available reports that include a full description of the pension plans regarding
provisions, assumptions and membership information that can be found on the CalPERS website.
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and
death benefits to plan members, who must be public employees and beneficiaries. Benefits are based
on years of credited service, equal to one year of full-time employment. Members with five years of
total service are eligible to retire at age 50 (52 if new PERS member) with statutorily reduced benefits.
All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is
one of the following: the Basic Death Benefit, the 1959 Survivor Benefit, or the Optional Settlement 2W
Death Benefit. The cost-of-living adjustments for the plan are applied as specified by the Public
Employees’ Retirement Law.
Designated Betterment 548,740$
Replacement Reserve 56,027,557
Designated Expansion 440,374
Designated New Supply Fund 5,961
Total $ 57,022,632
46
Notes to Financial Statements
Year Ended June 30, 2022
7) DEFINED BENEFIT PENSION PLAN - Continued
Benefits Provided
The Plans’ provisions and benefits in effect at June 30, 2022 are summarized as follows:
Prior to On or After
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 2.7% at 55 2% at 62
Benefit Vesting Schedule 5 years service 5 years service
Benefit Payments Monthly for life Monthly for life
Retirement Age 50 – 55+ 52 – 67+
Monthly Benefits, as a % of Eligible Compensation 2.0% to 2.7% 1.0% to 2.5%
Required Employee Contribution Rates
2022 8.00% 7.00%
Required Employer Contribution Rates
2022 21.62% 21.62%
Employees Covered
The following employees were covered by the benefit terms for the Plan:
Inactive Employees or Beneficiaries Currently Receiving Benefits 208
Inactive Employees Entitled to But Not Yet Receiving Benefits 121
Active Employees 135
Total 464
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer
contribution rates for all public employers be determined on an annual basis by the actuary and shall
be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan
are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined
rate is the estimated amount necessary to finance the costs of benefits earned by employees during
the year, with an additional amount to finance any unfunded accrued liability.
47
Notes to Financial Statements
Year Ended June 30, 2022
7) DEFINED BENEFIT PENSION PLAN - Continued
The District is required to fund the difference between the actuarially determined rate and the
contribution rate of employees.
B) Net Pension Liability
The District’s net pension liability for the Plan is measured as the total pension liability, less the pension
plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2021 rolled
forward to June 30, 2022 using standard update procedures. A summary of actuarial assumptions
and methods used to determine the net pension liability is shown below:
Actuarial Assumptions
The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the
following actuarial assumptions:
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.50%
Salaries Increases Varies(1)
Mortality Rate Table CalPERS Membership Data(2)
Post Retirement Benefit Increase See Footnote(3)
(1)Depending on age, service and type of employment.
(2)The mortality table used was developed based on CalPERS-specific data. The probabilities of
mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pe-
retirement and Post-retirement mortality rates include 15 years of projected mortality improvement
using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table,
please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report form
December 2017 that can be found on the CalPERS website.
(3)The lesser of contract COLA or 2.5% until Purchasing Power Protection Allowance floor on
purchasing power applies, 2.5% thereafter.
48
Notes to Financial Statements
Year Ended June 30, 2022
7) DEFINED BENEFIT PENSION PLAN – Continued
Discount Rate
The discount rate used to measure the total pension liability at June 30, 2021 measurement date was
7.15% for the Plan. The projection of cash flows used to determine the discount rate assumed that
contributions from plan members will be made at the current member contribution rates and that
contributions from employers will be made at statutorily required rates, actuarially determined. Based
on those assumptions, the Plan’s fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected rate
of return on plan investments was applied to all periods of projected benefit payments to determine
the total pension liability.
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best-estimate ranges of expected future real rates of return (expected returns,
net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and
long-term market return expectations as well as the expected pension fund cash flows. Using
historical returns of all the funds’ asset classes, expected compound (geometric) returns were
calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block
approach. Using the expected nominal returns for both short-term and long-term, the present value
of benefits was calculated for each fund.
The expected rate of return was set by calculating the single equivalent expected return that arrived
at the same present value of benefits for cash flows as the one calculated using both short-term and
long-term returns. The expected rate of return was then set equal to the single equivalent rate
calculated above and adjusted to account for assumed administrative expenses.
49
Notes to Financial Statements
Year Ended June 30, 2022
7) DEFINED BENEFIT PENSION PLAN – Continued
The following table reflects the long-term expected real rate of return by asset class.
(a) In the System’s Comprehensive Annual Financial Report, Fixed Income is included in
Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets
are included in both Global Equity Securities and Global Debt Securities.
(b) An expected inflation of 2.00% used for this period.
(c) An expected inflation of 2.92% used for this period.
Subsequent Events:
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-
21. Based on the threshold specified in CalPERS Funding Risk Mitigation policy, the excess return of
14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount
rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages
of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to
the asset allocation until the ALM process concluded, and the board could make its final decision on
the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation
along with the new capital market assumptions, economic assumptions and administrative expense
assumption support a discount rate of 6.90% (net of investment expense but without a reduction for
administrative expense) for financial reporting purposes.
Assumed Real Return Real Return
Asset Class(a)Asset Allocation Years 1 - 10(b)Years 11+(c)
Global Equity 50.00%4.80%5.98%
Fixed Income 28.00%1.00%2.62%
Inflation Assets/Sensitive -0.77%1.81%
Private Equity 8.00%6.30%7.23%
Real Assets 13.00%3.75%4.93%
Liquidity 1.00%--0.92%
50
Notes to Financial Statements
Year Ended June 30, 2022
7) DEFINED BENEFIT PENSION PLAN – Continued
This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in
the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also
recommended modifications to retirement rates, termination rates, mortality rates and rates of salary
increases that were adopted by the board. These new assumptions will be reflected in the GASB 68
accounting valuation reports for the June 30, 2022, measurement date.
C) Changes in the Net Pension Liability (Asset)
The changes in the Net Pension Liability (Asset) for the Plan for June 30, 2022:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
Beginning Balance 148,318,894$ 128,275,375$ 20,043,519$
Changes in the Year:
Service Cost 2,662,845 - 2,662,845
Interest on the Total Pension Liability 10,489,284 - 10,489,284
Changes in Benefit Terms - - -
Changes in Assumptions - - -
Difference Between Expected and Actual Experience 705,426 - 705,426
Net Plan to Plan Resource Movement - - -
Contributions - Employer 3,945,147 (3,945,147)
Contributions - Employees 1,095,898 (1,095,898)
Net Investment Income 28,707,870 (28,707,870)
Benefit Payments, Including Refunds of Employee
Contributions (7,304,947) (7,304,947) -
Administrative Expense - (128,139) 128,139
Other Miscellaneous Income (Expense) - --
Net Changes 6,552,608 26,315,829 (19,763,221)
Ending Balance 154,871,502$ 154,591,204$ 280,298$
Increase ( Decrease)
51
Notes to Financial Statements
Year Ended June 30, 2022
7) DEFINED BENEFIT PENSION PLAN – Continued
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the District for the Plan, calculated using the discount
rate for the Plan, as well as what the District’s net pension liability would be if it were calculated using
a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately
issued CalPERS financial reports.
D) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the District recognized pension expense (income) of $(440,542). At
June 30, 2022, the District reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following services:
1% Decrease 6.15%
Net Pension Liability 19,737,148$
Current Discount Rate 7.15%
Net Pension Liability 280,298$
1% Increase 8.15%
Net Pension Liability/(Asset) (15,969,291)$
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 3,960,785$ -$
Differences between actual and expected experience 520,984 -
Net difference between projected and actual earnings
on pension plan investments - 14,422,139
Total 4,481,769$ 14,422,139$
52
Notes to Financial Statements
Year Ended June 30, 2022
7) DEFINED BENEFIT PENSION PLAN – Continued
D) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - Continued
For fiscal year 2022, $3,960,785 reported as deferred outflows of resources related to contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in
the fiscal year ended June 30, 2023. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized as pension expense as follows:
E) Payable to the Pension Plan
At June 30, 2022, the District reported a payable of $104,458 for the outstanding amount of
contributions to the pension plan required for the year ended June 30, 2022. These payables are
reflected in the accrued payroll liabilities on the Statement of Net Position.
8) OTHER POST EMPLOYMENT BENEFITS (OPEB)
Plan Description
The District’s defined benefit postemployment healthcare plan, (DPHP), provides medical benefits to
eligible retired District employees and beneficiaries. DPHP is part of the Public Agency portion of the
California Employers’ Retiree Benefit Trust Fund (CERBT), an agent multiple-employer plan administered
by California Public Employees’ Retirement System (CalPERS), which acts as a common investment and
administrative agent for participating public employers within the State of California. CalPERS issues a
separate Comprehensive Annual Financial Report. Copies of the CalPERS’ annual financial report may be
obtained from the CalPERS Executive Office, 400 P Street, Sacramento, California 95814.
Fiscal Deferred
Year Ended Outflow/(Inflows)
June 30 of Resources
2023 (3,351,450)$
2024 (3,229,454)
2025 (3,393,836)
2026 (3,926,415)
2027 -
Thereafter -
53
Notes to Financial Statements
Year Ended June 30, 2022
8) OTHER POST EMPLOYMENT BENEFITS (OPEB) - Continued
Prior to the plan agreements signed in 2011, the eligibility in the plan was broken into 3 tiers, employees
hired before January 1, 1981, employees hired on or after January 1, 1981 but before July 1, 1993 and
employees hired on or after July 1, 1993. Board members elected before January 1, 1995 are also eligible
for the plan. Eligibility also includes age and years of service requirements which vary by tier. Benefits
include up to 100% medical and/or dental premiums for life for the retiree for Tier I or II employees, and
up to 100% spouse premium until death of retiree or age 65 whichever is greater and dependent premium
up to age 19. Tier III employees received up to 50% medical (no dental coverage) up to age 65 and did
not include dependent coverage.
Subsequent to the agreements in 2011 and 2012 all employees are eligible for the plan after 20 years of
consecutive service and unrepresented employees hired before January 1, 2013 are eligible after 15 years.
Survivor benefits are covered beyond Medicare.
Employees Covered
As of June 30, 2021 actuarial valuations, the following current and former employees were covered by the
benefit terms under the Plan:
Contributions
The annual contribution is based on the actuarially determined contribution. For the fiscal year ended
June 30, 2022, the District made no cash contributions to the trust.
Active Employees 132
Inactive Employees or Beneficiaries Currently Receiving Benefits 80
Inactive Employees Entitled to But Not Yet Received Benefits -
Total 212
54
Notes to Financial Statements
Year Ended June 30, 2022
8) OTHER POST EMPLOYMENT BENEFITS (OPEB) - Continued
Net OPEB Liability
The District’s net OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to
calculate the net OPEB liability was determined by actuarial valuations dated June 30, 2021 based on the
following actuarial methods and assumptions:
Actuarial Assumptions
Discount Rate 6.75%
Inflation 2.50%
Salary Increases 2.75% plus merit
Investment Rate of Return 6.75%
Mortality Rate(1)Derived using CalPERS Membership Data for all funds
Pre-Retirement Turnover(2) Derived using CalPERS Membership Data for all funds
Healthcare Trend Rate 6.00% PPO decreasing to 4.50% PPO
Notes:
(1) The pre-retirement mortality information is derived from the 2017 CalPERS Retiree Mortality for All
Employees table created by CalPERS. CalPERS periodically studies mortality for participating agencies
and establishes mortality tables that are modified versions of commonly used tables. This table
incorporates mortality projection as deemed appropriate based on CalPERS analysis.
(2) The pre-retirement turnover information is based on the 2017 CalPERS Turnover for Miscellaneous
Employees table created by CalPERS. CalPERS periodically studies the experience for participating
agencies and establishes tables that are appropriate for each pool.
55
Notes to Financial Statements
Year Ended June 30, 2022
8) OTHER POST EMPLOYMENT BENEFITS (OPEB) - Continued
The long-term expected rate of return on OPEB plan investments was determined using a building block
method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB
plan investment expense and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset are
summarized in the following table for the June 30, 2021 actuarial valuations:
Discount Rate
The discount rate used to measure the total OPEB liability was 6.75% for the June 30, 2021 measurement
period. The projection of cash flows used to determine the discount rate assumed that District contributions
will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions,
the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments
for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return
on OPEB plan investments was applied to all periods of projects benefit payments to determine the total
OPEB liability.
Long-Term
Target Expected RealAsset Class Allocation Rate of Return
Global Equity 59.00%7.55%
Global Fixed Income 25.00%4.25%
TIPS 5.00%3.00%
Commodities 3.00%7.55%
REITs 8.00%7.25%
56
Notes to Financial Statements
Year Ended June 30, 2022
8) OTHER POST EMPLOYMENT BENEFITS (OPEB) - Continued
Changes in the OPEB Liability (Asset)
The changes in the net OPEB liability (asset) for the Plan are as follows:
Sensitivity of the Net OPEB Liability (Asset) to Changes in the Discount Rate
The following presents the net OPEB liability (asset) of the District if it were calculated using a discount
rate that is one percentage point lower or one percentage point higher than the current rate, for the
measurement period ended June 30, 2021:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability (Asset)
Balance at June 20, 2021
(Valuation Date June 30, 2020)29,859,997$ 28,058,838$ 1,801,159$
Changes Recognized for the Measurement Period:
Service Cost 755,756 - 755,756
Interest on TOL/Return on FNP 2,077,446 7,880,863 (5,803,417)
Difference Between Expected and Actual Experience 2,595,855 - 2,595,855
Changes of Assumptions (1,557,334) - (1,557,334)
Contributions - Employer 807,867 (807,867)
Benefit Payments (1,201,678) (1,201,678) -
Administrative Expenses - (10,811) 10,811
Other Expenses - --
Net Changes 2,670,045 7,476,241 (4,806,196)
Balance at June 30, 2022
(Measurement Date June 30, 2021)32,530,042$ 35,535,079$ (3,005,037)$
Increase ( Decrease)
Current
1% Decrease Discount Rate 1% Increase
2022 Net OPEB Liability (Asset)
(2021 Measurement Period)1,573,406$ (3,005,037)$ (6,778,400)$
57
Notes to Financial Statements
Year Ended June 30, 2022
8) OTHER POST EMPLOYMENT BENEFITS (OPEB) - Continued
Sensitivity of the Net OPEB Liability (Asset) to Changes in the Healthcare Cost Trend Rates
The following presents the net OPEB liability of the District if it were calculated using health care cost trend
rates that are one percentage point lower or one percentage point higher than the current rate, for
measurement period ended June 30, 2021:
OPEB Plan Fiduciary Net Position
CERBT issues a publicly available financial report that may be obtained from the California Public
Employees Retirement System Executive Office, 400 P Street, Sacramento, California 95814.
Recognition of Deferred Outflows and Deferred Inflows of Resources
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in
OPEB expense systematically over time.
Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining
amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are
to be recognized in future OPEB expense.
The recognition period differs depending on the source of the gain or loss:
Net difference between projected and
actual earnings on OPEB plan investments
5 years
All other amounts Expected average remaining service lifetime
(EARSL)
Current Healthcare Cost
1% Decrease Trend Rates 1% Increase
(4.00% HMO/4.00% PPO (5.00% HMO/5.00% PPO (6.00% HMO/6.00% PPO
Decreasing to Decreasing to Decreasing to
3.50% HMO/3.50% PPO)4.50% HMO/4.50% PPO)5.50% HMO/5.50% PPO)
2022 Net OPEB Liability (Asset)
(2021 Measurement Period)(7,330,550)$ (3,005,037)$ 2,357,056$
58
Notes to Financial Statements
Year Ended June 30, 2022
8) OTHER POST EMPLOYMENT BENEFITS (OPEB) - Continued
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2022, the District recognized OPEB expense (income) of $(1,672,344).
As of the fiscal year ended June 30, 2022, the District reported deferred outflows and inflows of resources
related to OPEB from the following sources:
Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense
as follows:
9) COMMITMENTS AND CONTINGENCIES
Construction Commitments
The District has commitments related to capital projects under construction with an estimated cost to
complete of $2,552,684 at June 30, 2022.
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience 3,078,056$ (811,646)$
Changes in assumptions - (1,466,358)
Net difference between projected and actual earnings
on OPEB plan investments - (4,166,191)
Total 3,078,056$ (6,444,195)$
Fiscal Deferred
Year Ended Outflows/(Inflows)
June 30, of Resources
2023 (1,184,152)$
2024 (1,149,103)
2025 (706,303)
2026 (889,463)
2027 296,715
Thereafter 266,167
59
Notes to Financial Statements
Year Ended June 30, 2022
9) COMMITMENTS AND CONTINGENCIES – Continued
Litigation
Certain claims, suits and complaints arising in the ordinary course of operation have been filed or are
pending against the District. In the opinion of the staff and counsel, most of those matters are adequately
covered by insurance, or if not so covered, are without merit or are of such kind, or involved such amounts,
as would not have significant effect on the financial position or results of operations of the District if disposed
of unfavorably. There is one potential case, see below, that could have a significant effect on the District’s
financial position.
In November 2015, a District ratepayer filed a lawsuit against the District (Coziahr v. Otay Water District,
Superior Court of the State of California, County of San Diego, contending that the District’s water rates
violated Article XIIID of the California Constitution (“Proposition 218”). The court subsequently certified the
action as a class action on behalf of all single-family residential ratepayers who have received water service
at any time after July 14, 2014.
On March 4, 2021, the court issued a decision in favor of the plaintiffs holding its tiered water rates adopted
in 2013 and 2017 for the following 5-year periods were not proportionate to the cost of service attributable to
each customer’s parcel, as required by Proposition 218.
On June 15, 2022, the court issued a Statement of Decision in the case. The Statement of Decision adopts a
methodology for computing overcharges to ratepayers in the class based on the court’s earlier finding that
the District’s tiered water rates adopted in 2013 and 2017 were not proportionate to the cost of service
attributable to each customer’s parcel, as required by Proposition 218.
Applying its methodology, the court states that the overcharges to ratepayers through June 2021 is estimated
to be approximately $18,105,256, with an approximate additional $208,762 of overcharges, plus interest
accruing each month subsequent to June 2021 until the District changes its rates to be consistent with
Proposition 218.
The District’s position is that the Court decision is inconsistent with rates set by water districts across the
State and the District will vigorously defend its interests. The District also notes that the court’s ruling is
inconsistent with some case law. The District and its Attorney has objected to the decision and the District
will appeal the Courts decision and believes a favorable outcome is reasonable and as such a liability has
not been recorded.
60
Notes to Financial Statements
Year Ended June 30, 2022
9) COMMITMENTS AND CONTINGENCIES – Continued
Refundable Terminal Storage Fees
The District has entered into an agreement with several developers whereby the developers prepaid the
terminal storage fee in order to provide the District with the funds necessary to build additional storage
capacity. The agreement further allows the developers to relinquish all or a portion of such water storage
capacity. If the District grants to another property owner the relinquished storage capacity, the District shall
refund to the applicable developer $746 per equivalent dwelling unit (EDU). There were 17,867 EDUs that
were subject to this agreement. At June 30, 2022, 1,750 EDUs had been relinquished and refunded, 15,095
EDUs had been connected, and 1,022 EDUs have neither been relinquished nor connected.
Developer Agreements
The District has entered into various Developer Agreements with developers towards the expansion of
District facilities. The developers agree to make certain improvements and after the completion of the
projects the District agrees to reimburse such improvements with a maximum reimbursement amount for
each developer. Contractually, the District does not incur a liability for the work until the work is accepted
by the District. As of June 30, 2022, none of the outstanding developer projects had been completed.
10) RISK MANAGEMENT
General Liability and Property
The District is exposed to various risks of loss related to torts, theft, damage and destruction of assets, errors
and omissions, and natural disasters. The District is a member of an insurance pool through the Association
of California Water Agencies Joint Powers Insurance Authority (ACWA JPIA). ACWA JPIA is a not-for-profit
public agency formed under California Government Code Sections 6500 et. Seq.
ACWA JPIA is governed by a board composed of members from participating agencies. The District pays
an annual premium for commercial insurance covering general liability, excess liability, property, automobile,
public employee dishonesty, and various other claims. Separate financial statements of ACWA JPIA may be
obtained at ACWA JPIA 2100 Professional Drive, Roseville, CA 95661-3700.
61
Notes to Financial Statements
Year Ended June 30, 2022
10) RISK MANAGEMENT - Continued
General and Auto Liability, Public Officials’ Errors and Omissions and Employment Practices Liability: Total
limits of $5 million combined single limit at $5 million per occurrence, with excess aggregate coverage at
$50 million subject to the following deductibles:
x $50,000 per occurrence for third party general liability property damage;
x $50,000 per occurrence for third party auto liability property damage;
Employee Dishonesty Coverage: Total of $1,000,000 per loss includes Public Employee Dishonesty, Forgery
or Alteration and Theft and Faithful Performance of Duty effective July 1, 2021.
Property Loss: Replacement cost, for property on file, paid on an actual cash value basis, to a combined
total of $500 million per occurrence, subject to a $1,000 deductible per occurrence, effective July 1, 2021.
Boiler and Machinery: Replacement cost up to $100 million per occurrence, subject to a $1,000 deductible,
effective July 1, 2021.
Comprehensive and Collision: Deductibles of $1,000, as elected; ACV limits; fully self-funded by ACWA,
effective July 1, 2021.
Workers’ Compensation Coverage and Employer’s Liability: Statutory limits per occurrence for Workers’
Compensation and $2.0 million for Employer’s Liability Coverage, subject to the terms, conditions and
exclusions as provided in the Memorandum of Coverage, effective July 1, 2021.
Cyber Coverage: $5,000,000 Annual Program-Wide Aggregate Limit of Liability for each Insured/Member for
Information Security & Privacy Liability. Policy includes $50,000 deductible per claim.
11) LEASES RECEIVABLE
The District has entered into 29 cell site leases with lease terms ranging from less than one year to sixty
years. The lessees are required to make annual fixed payments ranging from $29,532 to $60,503, with
discount rates of 1.39%. As of June 30, 2022, the lease receivable is $37,501,754 and deferred inflows of
resources is $36,619,439. The District recognized $1,402,389 of lease revenue during the fiscal year.
62
Notes to Financial Statements
Year Ended June 30, 2022
12) SEGMENT INFORMATION
The District has issued Water and Wastewater Revenue Bonds in the previous fiscal years to finance certain capital
improvements. While water and wastewater services are accounted for jointly in these financial statements, the
investors in the Water Revenue Bonds rely solely on the revenues of the water services for repayment and the
Wastewater Revenue Bonds solely on the revenues of the wastewater services for repayment.
Summary financial information for the water and wastewater services is presented for June 30, 2022:
Water Wastewater
Services Services Total
Assets
Cash and Investments 100,700,457$ 5,252,617$ 105,953,074$
Accounts Receivable, Net 15,250,261 200,658 15,450,919
Other Current Assets 4,333,973 78,829 4,412,802
Leases Receivable 37,501,754 - 37,501,754
Net OPEB Asset 2,832,142 172,895 3,005,037
Capital Assets 418,117,496 28,630,180 446,747,676
Total Assets 578,736,083 34,335,179 613,071,262
Deferred Outflows of Resources
Deferred Actuarial Pension Costs 4,414,755 67,014 4,481,769
Deferred Actuarial OPEB Costs 2,937,822 140,234 3,078,056
Total Deferred Outflows of Resources 7,352,577 207,248 7,559,825
Liabilities
Accounts Payable 15,661,906 32,774 15,694,680
Other Miscellaneous Liabilities 5,445,866 506,092 5,951,958
Other Current Liabilities 11,744,041 99,814 11,843,855
General Obligation Bonds 2,726 - 2,726
Revenue Bonds 97,264,580 2,972,473 100,237,053
Lease Payable 707,725 - 707,725
Net Pension (Asset) Liability 680,991 (400,693) 280,298
Other Non-current Liabilities 3,704,232 - 3,704,232
Total Liabilities 135,212,067 3,210,460 138,422,527
Deferred Inflows of Resources
Deferred Actuarial Pension Costs 13,745,566 676,573 14,422,139
Deferred Actuarial OPEB Costs 6,122,270 321,925 6,444,195
Deferred Leases 36,619,439 - 36,619,439
Total Deferred Inflows of Resources 56,487,275 998,498 57,485,773
Net Position
Net Investment in Capital Assets 314,686,789 25,587,707 340,274,496
Restricted for Debt Service 3,685,440 - 3,685,440
Unrestricted 76,017,089 4,745,762 80,762,851
Total Net Position 394,389,318$ 30,333,469$ 424,722,787$
June 30, 2022
Condensed Statement of Net Position
63
Notes to Financial Statements
Year Ended June 30, 2022
12) SEGMENT INFORMATION – Continued
Water Wastewater
Services Services Total
Operating Revenues
Water Sales 102,807,098$ -$ 102,807,098$
Wastewater Revenue - 3,073,326 3,073,326
Connection and Other Fees 2,863,017 11,157 2,874,174
Total Operating Revenues 105,670,115 3,084,483 108,754,598
Operating Expenses
Cost of Water Sales 70,562,038 - 70,562,038
Wastewater - 1,802,256 1,802,256
Administrative and General 19,174,479 - 19,174,479
Depreciation 16,577,035 1,111,500 17,688,535
Total Operating Expenses 106,313,552 2,913,756 109,227,308
Operating Income (Loss) (643,437) 170,727 (472,710)
Non-Operating Revenues (Expenses)
Investment Earnings (Losses) (1,490,694) (15,792) (1,506,486)
Taxes and Assessments 5,244,584 - 5,244,584
Availability Charges 688,008 52,920 740,928
Gain (Loss) on Sale of Capital Assets (187,313) - (187,313)
Rents and Leases 2,071,200 - 2,071,200
Miscellaneous Revenues 5,392,269 25,319 5,417,588
Donations (106,913) - (106,913)
Interest Expense (4,461,015) (90,119) (4,551,134)
Miscellaneous Expenses (387,538) (59,654) (447,192)
Total Non-operating Revenues (Expenses) 6,762,588 (87,326) 6,675,262
Income (Loss) Before Capital Contributions
and Transfers 6,119,151 83,401 6,202,552
Capital Contributions 12,874,942 394,218 13,269,160
Change in Net Position 18,994,093 477,619 19,471,712
Total Net Position, Beginning 375,395,225 29,855,850 405,251,075
Total Net Position, Ending 394,389,318$ 30,333,469$ 424,722,787$
Condensed Statement of Revenues, Expenses and Changes in Net Pension
Year Ended June 30, 2022
64
Notes to Financial Statements
Year Ended June 30, 2022
12) SEGMENT INFORMATION – Continued
13) IMPLEMENTATION OF NEW ACCOUNTING STANDARDS
As described in Note 11 to the financial statements, the District changed accounting policies related to
leases by adopting Statement of Governmental Accounting Standards Board (GASB) Statement No. 87,
Leases, in the fiscal year 2022. The District did not restate prior year balances as it was not practicable to
do so.
Water Wastewater
Services Services Total
Net Cash Provided/(Used) by:
Operating Activities 16,039,567$ 742,676$ 16,782,243$
Non-capital and Related Financing Activities 5,430,121 52,920 5,483,041
Capital and Related Financing Activities (6,597,611) (8,126) (6,605,737)
Investing Activities (13,606,003) (15,792) (13,621,795)
Net Increase(Decrease) in
Cash and Cash Equivalents 1,266,074 771,678 2,037,752
Cash and Cash Equivalents, Beginning 84,246,065 4,480,939 88,727,004
Cash and Cash Equivalents, Ending 85,512,139$ 5,252,617$ 90,764,756$
For the Year Ended June 30, 2022
Condensed Statement of Cash Flows
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68
Schedule of Changes in the Net OPEB Liability and Related
Ratios for Measurement Periods Ended June 30,
Last Ten Fiscal Years (1)
Measurement Period 2021 2020 2019 2018 2017
Total OPEB Liability
Service Cost 755,756$ 735,529$ 757,725$ 735,655$ 687,528$
Interest on the Total OPEB Liability 2,077,446 1,915,358 1,970,613 1,864,967 1,764,343
Actual and Expected Experience Difference 2,595,855 1,151,927 (2,029,118) - -
Changes in Assumptions (1,557,334) - (345,110) - -
Benefit Payment (1,201,678) (1,120,146) (1,141,344) (1,085,586) (1,039,420)
Net Change in Total OPEB Liability 2,670,045 2,682,668 (787,234) 1,515,036 1,412,451
Total OPEB Liability - Beginning 29,859,997 27,177,329 27,964,563 26,449,527 25,037,076
Total OPEB Liability - Ending (a)32,530,042$ 29,859,997$ 27,177,329$ 27,964,563$ 26,449,527$
Plan Fiduciary Net Position
Contributions - Employer 807,867$ 1,011,358$ 2,206,363$ 2,202,004$ 2,284,420$
Net Investment Income 7,880,863 983,790 1,595,092 1,734,626 2,011,985
Benefit Payments (1,201,678) (1,120,146) (1,141,344) (1,085,586) (1,039,420)
Administrative Expenses (10,811) (13,514) (12,299) (11,784) (10,167)
Net Change in Plan Fiduciary Net Position 7,476,241 861,488 2,647,812 2,839,260 3,246,818
Plan Fiduciary Net Position - Beginning 28,058,838 27,197,350 24,549,538 21,739,035 18,492,217
Plan Fiduciary Net Position - Ending (b)35,535,079$ 28,058,838$ 27,197,350$ 24,578,295$ 21,739,035$
Net OPEB Liability/(Asset) - Ending (a)-(b)(3,005,037)$ 1,801,159$ (20,021)$ 3,386,268$ 4,710,492$
Plan Fiduciary Net Position as a Percentage of
the Total OPEB Liability 109.24%94.00%100.10%87.80%82.20%
Covered-Employee Payroll 13,917,932$ 13,538,959$ 13,176,602$ 12,677,000$ 12,513,000$
Net OPEB Liability/(Asset) as a Percentage of
Covered-Employee Payroll -21.59%13.30%-0.20%26.90%37.60%
Notes to Schedule
(1)Historical information is required only for measurement periods for which GASB 75 is applicable. Future years’ information will be
displayed up to 10 years as information becomes available. Contributions are determined by an actuarial valuation based on eligible
participants’ estimated medical and dental benefits.
69
Schedule of Contributions
For Fiscal Year Ended June 30,
Last Ten Fiscal Years (1)
Actuarially
Determined Contributions in Contribution Covered-Contributions as a
Fiscal Contribution Relation to the Deficiency Employee Percentage of Covered-
Year (ADC)ADC (Excess)Payroll Employee Payroll
2018 1,116,418$ (2,202,004)$ (1,085,586)$ 12,677,000$ 17.37%
2019 1,149,911 (2,206,363) (1,056,452) 13,176,602 16.74%
2020 1,011,358 (1,011,358) - 13,538,959 7.47%
2021 807,867 (807,867) - 13,917,932 5.80%
2022 - - - 14,148,052 0.00%
Notes to Schedule:
Methods and assumptions used to determine contributions:
Actuarial Cost Method Entry Age Normal
Amortization Method/Period Level percent of payroll over a closed rolling 15-year period
Asset Valuation Method Market value
Inflation 2.50%
Payroll Growth 2.75%
Investment Rate of Return 6.75%
Healthcare Cost-trend Rates 6.00% HMO/6.00% PPO decreasing to 4.50% HMO/4.50% PPO
Retirement Age
Mortality
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022 were
from the June 30, 2021 actuarial valuation. Also note, that some of the data from prior years were updated with the
most current available information.
Tier 1 employees - 2.7% at 55 and Tier 2 employees - 2.0% at 62. The probabilities
of Retirement are based on the 2014 CalPERS Experience Study for the period
from 1997 to 2011.
Pre-retirement mortality and post-retirement mortality probability
based on CalPERS Experience Study with mortality improvements
using Mortality Improvement Scale MP2018
(1)Historical information is required only for measurement periods for which GASB 75 is applicable. Future years’
information will be displayed up to 10 years as information becomes available. Contributions are determined by an
actuarial valuation based on eligible participants’ medical and dental benefits.
70
Schedule of Changes in the Net Pension Liability
and Related Ratios for Fiscal Years Ended June 30,
Last Ten Fiscal Years (1)
Measurement Period 2020 - 2021 2019 - 2020 2018 - 2019 2017 - 2018
Total Pension Liability
Service Cost 2,662,845$ 2,623,208$ 2,586,911$ 2,528,271$
Interest 10,489,284 10,043,778 9,638,674 9,168,092
Changes in Assumptions - - - (1,312,634)
Difference Between Expected and actual Experience 705,426 260,337 1,183,213 461,917
Benefit Payments, including Refunds of
Employee Contributions (7,304,947) (7,017,816) (6,658,719) (5,995,949)
Net Change in Total Pension Liability 6,552,608 5,909,507 6,750,079 4,849,697
Total Pension Liability - Beginning 148,318,894 142,409,387 135,659,308 130,809,611
Total Pension Liability - Ending (a)154,871,502$ 148,318,894$ 142,409,387$ 135,659,308$
Plan Fiduciary Net Position
Net Plan to Plan Resource Movement -$ -$ -$ (203)$
Contributions - Employer 3,945,147 2,437,119 36,706,983 4,441,517
Contributions - Employee 1,095,898 1,055,769 1,019,255 1,015,008
Net Investment Income 28,707,870 6,185,108 7,516,686 6,949,676
Benefit Payments, Including Refunds of
Employee Contributions (7,304,947) (7,017,816) (6,658,719) (5,995,949)
Administrative Expenses (128,139) (177,337) (62,278) (126,575)
Other Changes in Fiduciary Net Position - - 203 (240,367)
Net Change in Plan Fiduciary Net Position 26,315,829 2,482,843 38,522,130 6,043,107
Plan Fiduciary Net Position - Beginning 128,275,375 125,792,532 87,270,402 81,227,295
Plan Fiduciary Net Position - Ending (b)154,591,204$ 128,275,375$ 125,792,532$ 87,270,402$
Plan Net Pension Liability/(Asset) - Ending (a)-(b)280,298$ 20,043,519$ 16,616,855$ 48,388,906$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 99.82%86.49%88.33%64.33%
Covered Payroll 13,768,586$ 13,383,715$ 12,892,655$ 12,969,485$
Plan Net Pension Liability/(Asset) as a
Percentage of Covered Payroll 2.04%149.76%128.89%373.10%
(2)Historical information is required only for measurement periods for which GASB 68 is applicable.
(1)Measurement period 2020-21 (fiscal year 2021-2022) was the eighth year of implementation; therefore, only eight years are
shown.
71
Schedule of Changes in the Net Pension Liability
and Related Ratios for Fiscal Years Ended June 30,
Last Ten Fiscal Years (1)
Measurement Period 2016 - 2017 2015 - 2016 2014 - 2015 2013 - 2014
Total Pension Liability
Service Cost 2,556,902$ 2,298,617$ 2,250,860$ 2,330,709$
Interest 8,836,284 8,575,275 8,229,312 7,907,915
Changes in Assumptions 7,308,486 - (1,996,819) -
Difference Between Expected and actual Experience (1,208,593) (613,440) (981,200) -
Benefit Payments, including Refunds of
Employee Contributions (5,779,040) (5,448,218) (5,288,251) (4,885,406)
Net Change in Total Pension Liability 11,714,039 4,812,234 2,213,902 5,353,218
Total Pension Liability - Beginning 119,095,572 114,283,338 112,069,436 106,716,218
Total Pension Liability - Ending (a)130,809,611$ 119,095,572$ 114,283,338$ 112,069,436$
Plan Fiduciary Net Position
Net Plan to Plan Resource Movement -$ -$ -$ -$
Contributions - Employer 4,105,810 3,819,770 3,557,098 3,137,174
Contributions - Employee 1,014,329 1,010,337 1,007,023 1,074,954
Net Investment Income 8,149,097 369,214 1,601,760 10,874,999
Benefit Payments, Including Refunds of
Employee Contributions (5,779,040) (5,448,218) (5,288,251) (4,885,406)
Administrative Expenses (109,029) (45,185) (83,511) -
Other Changes in Fiduciary Net Position - - - -
Net Change in Plan Fiduciary Net Position 7,381,167 (294,082) 794,119 10,201,721
Plan Fiduciary Net Position - Beginning 73,846,128 74,140,210 73,346,091 63,144,370
Plan Fiduciary Net Position - Ending (b)81,227,295$ 73,846,128$ 74,140,210$ 73,346,091$
Plan Net Pension Liability/(Asset) - Ending (a)-(b)49,582,316$ 45,249,444$ 40,143,128$ 38,723,345$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 62.10%62.01%64.87%65.45%
Covered Payroll 12,829,415$ 12,767,963$ 12,451,513$ 12,276,578$
Plan Net Pension Liability/(Asset) as a
Percentage of Covered Payroll 386.47%354.40%322.40%315.42%
(2)Historical information is required only for measurement periods for which GASB 68 is applicable.
(1)Measurement period 2020-21 (fiscal year 2021-2022) was the eighth year of implementation; therefore, only eight years are
shown.
72
Schedule of Plan Contributions
for Fiscal Year Ended June 30,
Last Ten Fiscal Years (1)
Actuarially
Determined Contributions in Contribution Covered-Contributions as a
Fiscal Contribution Relation to the Deficiency Employee Percentage of Covered-
Year (ADC)(2)ADC(2)(Excess)Payroll(3)Employee Payroll(3)
2015 3,557,098$ (3,557,098)$ -$ 12,451,513$ 28.57%
2016 3,819,770 (3,819,770) - 12,767,963 29.92%
2017 4,105,810 (4,105,810) - 12,829,415 32.00%
2018 4,441,517 (4,441,517) - 12,969,485 34.25%
2019 4,906,983 (36,706,983) (31,800,000) 12,892,655 284.71%
2020 2,437,119 (2,437,119) - 13,383,715 18.21%
2021 2,765,952 (3,965,952) (1,200,000) 13,768,586 28.80%
2022 2,971,785 (3,960,785) (989,000) 14,148,052 28.00%
(1)Historical information is required only for measurement periods for which GASB 68 is applicable.
Notes to Schedule:
Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details see June 30, 2018 Funding Valuation Report
Asset Valuation Method Actuarial Value of Assets. For details see June 30, 2018 Funding Valuation Report
Discount Rate 7.15%
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment Rate of Return 7.00% Net of Pension Plan Investments and Administrative Expenses, includes inflation.
Retirement Age
Mortality
(2)Employers are assumed to make contributions equal to the actuarially determined contributions. However, some
employers may choose to make additional contributions toward their unfunded liability. Employer contributions for
such plans exceed the actuarially determined contributions.
(3)Includes one year’s payroll growth assumption using 2.75% payroll growth assumption for fiscal years 2018-2021;
3.00% payroll growth
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22
were from the June 30, 2019 public agency valuations. Also note, that some of the data from prior years were
updated with the most current available information.
The probabilities of Retirement are based on the 2017 CalPERS
The probabilities of mortality are based on the 2017 CalPERS
73
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74
Statistical Schedules
The Statistical Schedule is part of understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the District’s overall financial health.
Contents Page
Financial Trends 76
These schedules contain trend information to help the reader understand how the
District’s financial performance and well-being have changed over time.
Revenue Capacity 83
These schedules contain information to help the reader assess the factors affecting the
District’s ability to generate its potable and recycled water, and sewer sales as well as
property tax.
Debt 93
These schedules present information to help the reader assess the affordability of the
District’s current levels of outstanding debt and the District’s ability to issue additional
debt.
Demographic and Economic Information 99
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the District’s financial activities take place
and to help make comparisons over time and with other governments.
Operating Information 101
These schedules contain information about the District’s operation and resources to
help the reader understand how the District’s financial information relates to the
services the District provides and the activities it performs.
Sources
Unless otherwise noted, the information in these schedules is derived from the annual comprehensive
financial reports of the relevant year.
Fiscal Net Investment Total
Year in Capital Assets Restricted Unrestricted Net Position
2022 340,274,496$ 3,685,440$ 80,762,851$ 424,722,787$
2021 340,383,389 4,187,443 60,680,243 405,251,075
2020 345,156,470 4,261,399 38,048,894 387,466,763
2019 354,639,520 4,248,007 28,707,083 387,594,610
2018 355,628,577 4,247,025 27,664,926 387,540,528
(1)
2017 350,981,714 4,306,724 45,898,551 401,186,989
2016 351,617,201 4,402,301 45,268,275 401,287,777
2015 354,046,090 4,658,306 43,717,930 402,422,326
(2)
2014 357,912,154 3,855,673 83,039,993 444,807,820
2013 376,549,168 4,612,890 67,071,849 448,233,907
(1)For Fiscal Year ending June 30, 2018, the $13.6 million decrease of Total Net Position is primarily a result of the
implementation of GASB Statement No. 75 "Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions-an amendment of GASB Statement No. 45”. Implementation of this standard decreased the net
position at July 1, 2017 by $17.8 million and recognized a net OPEB liability, deferred outflows of resources, and
expenses related to the OPEB plan.
(2)For Fiscal Year ending June 30, 2015, the $42.4 million decrease of Total Net Position is primarily due to the
implementation of Governmental Accounting Standards Board (GASB) Statements No. 68 "Accounting and
Financial Reporting for Pensions-an amendment of GASB Statement No. 27" and No. 71 "Pension Transistions
for Contributions Made Subsequent to the Measurement Date-an amendment of GASB No. 68". Implementation
of these standards resulted in a decrease of Net Position at July 1, 2014 by $40.4 million.
Source: Otay Water District
Net Position by Component - Last Ten Fiscal Years
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Net Position, in Thousands ($)
76
Water & Certificate of Water Revenue Deferred Net
Fiscal Capital Assets Wastewater Participation Refunding GO Lease Unamortized Unamortized Amount on Investment in
Year Net Revenue Bonds(1)(COPS)Bonds Bonds Payable Premium Discount Refunding Capital Assets
2022 446,747,676$ (71,625,000)$ -$ (28,295,000)$ (720,000)$ (723,401)$ (5,122,306)$ 12,527$ -$ 340,274,496$
2021 451,562,404 (73,885,128) - (30,285,000) (1,425,000) - (5,596,875) 12,988 - 340,383,389
2020 456,522,770 (71,018,303) - (32,185,000) (2,105,000) - (6,071,446) 13,449 - 345,156,470
2019 458,309,347 (60,368,810) - (34,000,000) (2,755,000) - (6,546,017) - - 354,639,520
2018 450,850,563 (44,235,000) (7,600,000) (35,730,000) (3,390,000) - (4,273,693) 6,707 - 355,628,577
2017 450,196,950 (45,175,000) (8,200,000) (37,405,000) (3,995,000) - (4,639,116) 7,452 191,428 350,981,714
2016 453,968,546 (46,075,000) (8,800,000) (39,240,000) (4,580,000) - (5,004,539) 8,197 1,339,997 351,617,201
2015 459,191,394 (46,945,000) (45,195,000) (6,470,000) (5,150,000) - (1,590,201) 204,897 - 354,046,090
2014 466,651,403 (47,790,000) (46,690,000) (7,075,000) (5,700,000) - (1,777,053) 214,686 78,118 357,912,154
2013 476,028,659 (36,015,652) (48,145,000) (7,735,000) (6,235,000) - (1,963,905) 224,475 390,591 376,549,168
(1) Net of unspent bond proceeds.
Source: Otay Water District
Net Investment in Capital Assets - Last Ten Fiscal Years
$320,000
$330,000
$340,000
$350,000
$360,000
$370,000
$380,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Net Investment in Capital Assets, in Thousands ($)
77
TTotal Income/
Operating Non-Operating (Loss) Before Changes
Fiscal Operating Operating Income/Revenues/Capital Capital in Net
Year Revenues Expenses (Loss)(Expenses)Contributions Contributions Position
2022 108,754,598$ 109,227,308$ (472,710)$ 6,675,262$ 6,202,552$ 13,269,160$ 19,471,712$
2021 107,140,468 108,684,323 (1,543,855) 7,575,379 6,031,524 11,752,788 17,784,312
2020 95,938,809 106,987,896 (11,049,087) 3,979,308 (7,069,779) 6,941,932 (127,847)
2019 91,952,166 103,728,988 (11,776,822) 2,374,095 (9,402,727) 9,456,809 54,082
2018 97,473,772 105,734,349 (8,260,577) 2,923,999 (5,336,578) 9,506,192 4,169,614
2017 88,481,254 96,624,381 (8,143,127) 2,471,420 (5,671,707) 5,570,919 (100,788)
2016 78,876,307 89,669,543 (10,793,236) 2,687,368 (8,105,868) 6,971,319 (1,134,549)
2015 83,865,407 91,863,728 (7,998,321) 2,965,607 (5,032,714) 3,081,894 (1,950,820)
2014 86,025,573 92,567,023 (6,541,450) (277,057) (6,818,507) 3,392,420 (3,426,087)
2013 76,881,388 87,335,338 (10,453,950) 1,770,738 (8,683,212) 2,775,132 (5,908,080)
Source: Otay Water District
Changes in Net Position - Last Ten Fiscal Years
-$10,000
-$5,000
$0
$5,000
$10,000
$15,000
$20,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Changes in Net Position, in Thousands ($)
78
FFiscal Connection and Percent
Year Water Sales Wastewater Other Fees Total Change
2022 102,807,098$ 3,073,326$ 2,874,174$ 108,754,598$ 1.5%
2021 101,742,970 2,899,180 2,498,318 107,140,468 11.7%
2020 90,435,148 2,921,310 2,582,351 95,938,809 4.3%
2019 86,756,222 2,961,157 2,234,787 91,952,166 -5.7%
2018 92,595,195 2,865,520 2,013,057 97,473,772 10.2%
2017 83,720,150 2,983,495 1,777,609 88,481,254 12.2%
2016 73,940,200 3,175,300 1,760,807 78,876,307 -5.9%
2015 79,135,000 3,044,158 1,686,249 83,865,407 -2.5%
2014 81,287,164 2,791,523 1,946,886 86,025,573 11.9%
2013 72,187,081 2,625,087 2,069,220 76,881,388 12.4%
Source: Otay Water District
Operating Revenues by Source - Last Ten Fiscal Years
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Operating Revenues, in Thousands ($)
79
Fiscal Cost of Administrative Percent
Year Water Sales Wastewater and General Depreciation Total Change
2022 70,562,038$ 1,802,256$ 19,174,479$ 17,688,535$ 109,227,308$ 0.5%
2021 66,889,570 2,633,413 21,948,435 17,212,905 108,684,323 1.6%
2020 62,573,257 2,439,117 25,196,555 16,778,967 106,987,896 3.1%
2019 60,065,964 2,784,579 24,070,648 16,807,797 103,728,988 -1.9%
2018 62,321,213 2,501,240 23,445,578 17,466,318 105,734,349 9.4%
2017 56,882,487 1,964,855 19,991,542 17,785,497 96,624,381 7.8%
2016 51,826,046 2,051,913 19,318,247 16,473,337 89,669,543 -2.4%
2015 54,364,884 1,866,711 19,437,141 16,194,992 91,863,728 -0.8%
2014 56,068,147 1,834,465 18,608,603 16,055,808 92,567,023 6.0%
2013 50,600,551 1,638,354 18,550,811 16,545,622 87,335,338 6.8%
Source: Otay Water District
Operating Expenses by Function - Last Ten Fiscal Years
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Operating Expenses, in Thousands ($)
Cost of Water Sales Wastewater Administrative and General Depreciation
80
FFiscal Investment Taxes and Availability Rents and Percent
Year Earnings (Losses)Assessments Charges Leases Miscellaneous Total Change
2022 (1,506,486)$ 5,244,584$ 740,928$ 2,071,200$ 5,417,588$ 11,967,814$ -6.8%
2021 254,668 5,251,540 686,697 1,587,687 5,062,779 12,843,371 18.3%
2020 1,784,834 4,939,950 694,768 1,501,328 1,936,162 10,857,042 -6.1%
2019 1,978,392 4,671,182 723,246 1,384,211 2,800,613 11,557,644 20.4%
2018 723,860 4,481,719 697,724 1,439,247 2,255,605 9,598,155 -10.6%
2017 408,754 4,114,583 729,325 1,375,305 4,107,558 10,735,525 20.7%
2016 758,004 3,966,593 616,591 1,281,150 2,274,623 8,896,961 -0.6%
2015 656,925 3,856,276 685,555 1,232,920 2,521,078 8,952,754 15.2%
2014 522,286 3,537,162 729,961 1,317,736 1,661,992 7,769,137 -0.2%
2013 22,155 3,545,595 707,881 1,276,914 2,233,804 7,786,349 -14.9%
Source: Otay Water District
Non-Operating Revenues by Source - Last Ten Fiscal Years
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Non-Operating Revenues, in Thousands ($)
81
Fiscal Interest Percent
Year Donations (1)Expense Miscellaneous Total Change
2022 106,913$ 4,551,134$ 634,505$ (7)5,292,552$ 0.5%
2021 84,389 4,782,490 401,113 (6)5,267,992 -23.4%
2020 121,600 4,953,987 1,802,147 (5)6,877,734 -25.1%
2019 118,040 4,713,883 4,351,626 (4)9,183,549 37.6%
2018 123,050 3,941,321 2,609,785 6,674,156 -19.2%
2017 125,742 5,069,767 3,068,596 (3)8,264,105 33.1%
2016 120,722 4,603,093 1,485,778 6,209,593 3.7%
2015 117,462 4,545,530 1,324,155 5,987,147 -25.6%
2014 119,687 4,872,060 3,054,447 (2)8,046,194 33.8%
2013 120,684 3,977,538 1,917,389 6,015,611 6.8%
(1) Donations are contributions to the Water Conservation Authority formed in 1999.
(2) Miscellaneous expense includes $2.3 million of non-capitalizable expenses which were partially funded by capacity revenue.
(3) Miscellaneous expense includes $1.8 million of non-capitalizable expenses which were primarily funded by capacity revenue.
(4) Miscellaneous expense includes $3.0 million of non-capitalizable expenses which were partially funded by capacity revenue
and $1.1 million loss on disposal of capital assets.
(5) Miscellaneous expense includes $0.4 million of non-capitalizable expenses which were partially funded by capacity revenue
and $1.2 million loss on disposal of capital assets.
(6) Miscellaneous expense includes $0.2 million of non-capitalizable expenses which were partially funded by capacity revenue
and $0.2 million loss on disposal of capital assets.
(7) Miscellaneous expense includes $0.4 million of non-capitalizable expenses which were partially funded by capacity revenue
and $0.2 million loss on disposal of capital assets.
Source: Otay Water District
Non-Operating Expenses by Function - Last Ten Fiscal Years
$0
$2,000
$4,000
$6,000
$8,000
$10,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Non-Operating Expenses, in Thousands ($)
Miscellaneous Interest Expense Donations
82
Fiscal Total Direct
Year Real Personal Total Tax Rate
2022 35,535,165,581$ 690,058,250$ 36,225,223,831$ 1.00%
2021 33,891,881,238 675,894,658 34,567,775,896 1.00%
2020 32,068,524,548 570,816,478 32,639,341,026 1.00%
2019 30,175,832,441 591,916,883 30,767,749,324 1.00%
2018 28,808,597,510 578,765,787 29,387,363,297 1.00%
2017 27,060,627,238 538,359,438 27,598,986,676 1.00%
2016 25,506,243,489 551,455,064 26,057,698,553 1.00%
2015 24,109,906,912 572,400,598 24,682,307,510 1.00%
2014 22,739,584,104 564,518,965 23,304,103,069 1.00%
2013 22,253,255,369 583,080,854 22,836,336,223 1.00%
Source: County of San Diego Auditor and Controller
Last Ten Fiscal Years
Assessed Valuation of Taxable Property within the District -
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Assessed Valuation of Property, In Thousands ($)
83
FFiscal
Year Purchases Sales Production Purchases Sales
2022 12,906,784 12,310,217 436,600 1,279,005 1,685,259
2021 13,079,077 12,604,100 281,830 1,598,358 (2)1,799,377
2020 11,995,858 11,390,483 382,670 1,070,079 (3)1,451,957
2019 11,928,819 11,326,752 323,690 1,168,780 1,462,632
2018 12,910,269 12,227,383 377,450 1,460,271 1,810,502
2017 11,762,115 11,250,331 242,800 1,386,600 1,625,768
2016 11,108,105 10,475,290 439,650 1,163,117 1,591,677
2015 13,198,201 12,744,425 443,090 1,447,737 1,841,956
2014 14,554,049 13,720,119 503,120 1,664,630 2,068,330
2013 13,888,496 13,189,042 486,610 1,415,610 1,878,950
(1)Rates are not presented on this schedule because the District has multiple water rates for various meter sizes
and customer classes and cannot represent rates in a meaningful manner with a weighted average rate.
See Water and Sewer rates on pages 88-91 for meter sizes and their corresponding water rates.
(2)In FY 2021, recycled water purchases from the City of San Diego increased due to the District's plant being shut
down from November 2020 through February 2021 for capital improvements.
(3)In FY 2020, recycled water purchases from the City of San Diego declined due to the City's plant being shut
down from January to June of 2020.
Source: Otay Water District
Per 100 Cubic Feet
Water Purchases, Production, and Sales -
Last Ten Fiscal Years
Recycled Water(1)
Per 100 Cubic Feet
Potable Water(1)
0
5,000,000
10,000,000
15,000,000
20,000,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Recycled Purchases Recycled Production Potable Purchases
Water Purchases, Productions, and Sales, in Hundred Cubic Feet (HCF)
Fiscal
Year Total(1)
2022 200 18 218
2021 270 27 297
2020 302 4 306
2019 463 12 475
2018 574 14 588
2017 109 9 118
2016 116 4 120
2015 138 8 146
2014 195 3 198
2013 305 5 310
(1) Meters may not be activated in the year sold.
Source: Otay Water District
Meter Sales by Type - Last Ten Fiscal Years
Potable Recycled
0
200
400
600
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Meter Sales by Type
Recycled Potable
85
Fiscal
Year Potable Recycled Sewer Total
2022 51,389 768 4,738 56,895
2021 51,204 753 4,736 56,693
2020 50,994 735 4,737 56,466
2019 50,555 726 4,737 56,018
2018 50,045 724 4,714 55,483
2017 49,502 721 4,683 54,906
2016 49,425 708 4,677 54,810
2015 49,308 705 4,679 54,692
2014 49,148 702 4,657 54,507
2013 48,962 704 4,655 54,321
Source: Otay Water District
Number of Customers by Service Type - Last Ten Fiscal Years
0
7,500
15,000
22,500
30,000
37,500
45,000
52,500
60,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Number of Customers by Service Type
Recycled Sewer Potable
86
FFiscal
Year 1% Property Tax
Special
Assessments
Total
Levies
Total
Collections (1)
End of the Year
Percent
Collected
2022 $ 4,737,353 $ 2,134,710 $ 6,872,063 $ 6,642,853 97%
2021 4,469,198 2,007,723 6,476,921 6,377,533 98%
2020 4,203,245 2,013,450 6,216,694 6,122,835 98%
2019 4,036,261 2,023,939 6,060,200 5,955,998 98%
2018 3,795,363 1,960,771 5,756,134 5,691,467 99%
2017 3,539,836 1,999,480 5,539,316 5,532,395 100%
2016 3,367,615 1,998,874 5,366,489 5,127,563 96%
2015 3,276,296 2,012,420 5,288,716 5,071,336 96%
2014 3,032,618 2,096,409 5,129,027 4,885,718 95%
2013 3,014,180 2,139,415 5,153,595 4,790,286 93%
(1)Levies and collections include Current Secured, Current Unsecured, and Supplemental Homeowners Exemptions.
Source: Otay Water District
Property Tax Levies and Collections - Last Ten Fiscal Years
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Levies and Collections, in Thousands ($)
Levies Collections
87
FFixed Rates 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
System Charge by Meter Size
Residential Potable
3/4"20.08$ 19.27$ 18.87$ 18.05$ 17.38$ 15.91$ 18.91$ 19.39$ 16.19$ 16.74$
1"28.39 27.24 26.67 25.51 24.56 22.47 26.71 27.39 22.87 21.26
1.5"49.11 47.12 46.13 44.13 42.49 38.88 46.22 47.40 39.58 32.57
2"73.98 70.98 69.49 66.47 64.00 58.55 69.61 71.39 59.62 46.13
3/4" 44.17 42.38 41.49 39.69 38.21 15.91 18.91 19.39 16.19 16.74
1" 62.37 59.84 58.59 56.05 53.97 22.47 26.71 27.39 22.87 21.26
1.5" 107.92 103.55 101.38 96.98 93.37 38.88 46.22 47.40 39.58 32.57
2" 162.53 155.94 152.67 146.04 140.61 58.55 69.61 71.39 59.62 46.13
3" 308.22 295.73 289.53 276.96 266.66 111.04 132.02 135.41 113.08 82.29
4" 472.17 453.03 443.54 424.28 408.50 170.10 202.24 207.43 173.22 122.99
6" 927.63 890.03 871.38 833.54 802.55 334.18 397.31 407.50 340.29 236.02
8" 1,474.12 1,414.36 1,384.73 1,324.59 1,275.34 531.05 631.37 647.56 540.76 371.64
10" 2,111.67 2,026.07 1,983.62 1,897.47 1,826.91 760.72 904.44 927.63 774.64 529.88
3/4" 41.61 39.92 39.08 37.38 35.99 15.91 18.91 19.39 16.19 16.74
1" 58.75 56.37 55.19 52.79 50.83 22.47 26.71 27.39 22.87 21.26
1.5" 101.66 97.54 95.50 91.35 87.95 38.88 46.22 47.40 39.58 32.57
2" 153.11 146.90 143.82 137.57 132.45 58.55 69.61 71.39 59.62 46.13
3" 290.34 278.57 272.73 260.89 251.19 111.04 132.02 135.41 113.08 82.29
4" 444.76 426.73 417.79 399.65 384.79 170.10 202.24 207.43 173.22 122.99
6" 873.81 838.39 820.82 785.17 755.97 334.18 397.31 407.50 340.29 236.02
8" 1,388.56 1,332.27 1,304.36 1,247.71 1,201.32 531.05 631.37 647.56 540.76 371.64
10" 1,989.08 1,908.45 1,868.46 1,787.32 1,720.86 760.72 904.44 927.63 774.64 529.88
3/4" 35.13 33.71 33.00 31.57 30.40 15.91 18.91 19.39 16.19 16.74
1" 49.62 47.61 46.61 44.59 42.93 22.47 26.71 27.39 22.87 21.26
1.5" 85.86 82.38 80.65 77.15 74.28 38.88 46.22 47.40 39.58 32.57
2" 129.28 124.04 121.44 116.17 111.85 58.55 69.61 71.39 59.62 46.13
3" 245.19 235.25 230.32 220.32 212.13 111.04 132.02 135.41 113.08 82.29
4" 375.63 360.40 352.85 337.53 324.98 170.10 202.24 207.43 173.22 122.99
6" 737.94 708.03 693.20 663.10 638.44 334.18 397.31 407.50 340.29 236.02
8" 1,172.69 1,125.15 1,101.58 1,053.74 1,014.56 531.05 631.37 647.56 540.76 371.64
10" 1,679.86 1,611.76 1,577.99 1,509.46 1,453.33 760.72 904.44 927.63 774.64 529.88
3/4" 43.74 41.54 40.21 38.14 36.85 15.91 18.91 19.39 16.19 16.74
1" 61.76 58.65 56.78 53.86 52.04 22.47 26.71 27.39 22.87 21.26
1.5" 106.89 101.51 98.27 93.21 90.06 38.88 46.22 47.40 39.58 32.57
2" 160.98 152.88 148.00 140.38 135.63 58.55 69.61 71.39 59.62 46.13
3" 305.28 289.91 280.65 266.21 257.21 111.04 132.02 135.41 113.08 82.29
4" 467.65 444.11 429.92 407.80 394.01 170.10 202.24 207.43 173.22 122.99
6" 918.73 872.49 844.62 801.16 774.07 334.18 397.31 407.50 340.29 236.02
8" 1,459.97 1,386.49 1,342.20 1,273.13 1,230.08 531.05 631.37 647.56 540.76 371.64
10" 2,091.41 1,986.14 1,922.69 1,823.75 1,762.08 760.72 904.44 927.63 774.64 529.88
Water Fixed Rates - Last Ten Fiscal Years
Landscape, Agricultural & Construction Potable
Public Agency & Commercial Potable
Master Meter Potable
Recycled Commercial
88
FFixed Rates 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Water Fixed Rates - Last Ten Fiscal Years
System Charge by Meter Size
3/4" 36.93$ 35.07$ 33.95$ 32.20$ 31.11$ 15.91$ 18.91$ 19.39$ 16.19$ 16.74$
1" 52.16 49.53 47.95 45.48 43.94 22.47 26.71 27.39 22.87 21.26
1.5" 90.25 85.71 82.97 78.70 76.04 38.88 46.22 47.40 39.58 32.57
2" 135.90 129.06 124.94 118.51 114.50 58.55 69.61 71.39 59.62 46.13
3" 257.73 244.76 236.94 224.75 217.15 111.04 132.02 135.41 113.08 82.29
4" 394.84 374.97 362.99 344.31 332.67 170.10 202.24 207.43 173.22 122.99
6" 787.55 747.91 724.02 686.76 663.54 334.18 397.31 407.50 340.29 236.02
8" 1,232.66 1,170.62 1,133.22 1,074.91 1,038.56 531.05 631.37 647.56 540.76 371.64
10" 1,765.77 1,676.89 1,623.32 1,539.79 1,487.72 760.72 904.44 927.63 774.64 529.88
Fire Services
3 inch and lower 24.00 23.03 22.55 21.57 20.77 20.77 24.69 25.32 21.14 34.57
4 inch and higher 32.34 31.03 30.38 29.06 27.98 27.98 33.27 34.12 28.49 34.57
CWA and MWD Pass-through charges by Meter Size
Residential Potable
3/4" 17.00 16.36 15.56 15.10 15.45 15.00 16.84 13.67 14.45 13.28
1" 31.57 30.38 28.89 28.04 28.68 27.84 31.24 25.35 26.79 22.12
1.5" 71.36 68.67 65.31 63.40 64.85 62.96 70.66 57.35 60.61 44.31
Non-Residential & Other Potable
3/4" 17.00 16.36 15.56 15.10 15.45 15.00 16.84 13.67 14.45 13.28
1" 31.57 30.38 28.89 28.04 28.68 27.84 31.24 25.35 26.79 22.12
1.5" 71.36 68.67 65.31 63.40 64.85 62.96 70.66 57.35 60.61 44.31
2" 121.39 116.81 111.10 107.84 110.30 107.08 120.17 97.53 103.08 70.85
3" 258.17 248.44 236.29 229.36 234.60 227.75 255.60 207.44 219.23 141.71
4" 413.41 397.83 378.38 367.29 375.68 364.72 409.32 332.20 351.09 221.43
6" 846.28 814.38 774.56 751.85 769.02 746.59 837.89 680.02 718.69 442.80
8" 1,366.65 1,315.14 1,250.83 1,214.16 1,241.89 1,205.65 1,353.09 1,098.15 1,160.59 708.53
10" 1,967.12 1,892.97 1,800.41 1,747.63 1,787.55 1,735.39 1,947.62 1,580.67 1,670.55 1,015.06
Source: Otay Water District
Recycled Irrigation
89
WWater Rate 2022 2021 2020 2019 2018(2)2017 2016 2015 2014 2013
Tier 1 (conservation tier)-$ -$ -$ -$ -$ 2.53$ 2.13$ 1.95$ 1.86$ 1.73$
Tier 2 3.52 3.38 3.31 3.17 3.05 3.95 3.32 3.04 2.90 2.69
Tier 3 6.30 6.04 5.91 5.65 5.44 5.13 4.32 3.95 3.77 3.50
Tier 4 8.12 7.79 7.63 7.30 7.03 7.90 6.65 6.08 5.80 5.39
Tier 1 3.29 3.16 3.09 2.96 2.85 3.90 3.28 3.00 2.86 2.66
Tier 2 5.97 5.73 5.61 5.37 5.17 5.05 4.25 3.89 3.71 3.45
Tier 3 7.35 7.05 6.90 6.60 6.35 7.80 6.56 6.00 5.73 5.32
Government Fee (1)0.43 0.42 0.42 0.42 0.41 0.41 0.37 0.32 0.31 0.29
Tier 1 4.17 4.00 3.92 3.75 3.61 4.17 3.51 3.21 3.06 2.84
Tier 2 4.23 3.56 3.26 3.14 2.92
Tier 3 4.30 3.62 3.31 3.19 2.96
Tier 1 6.09 5.84 5.72 5.47 5.27 5.68 4.78 4.37 4.17 3.87
Tier 2 5.74 4.83 4.42 4.25 3.95
Tier 3 5.81 4.89 4.47 4.32 4.01
Tier 1 3.58 3.40 3.29 3.12 3.01 3.53 2.97
Tier 2 3.60 3.03
Tier 3 3.65 3.07
Government Fee (1)0.43 0.42 0.42 0.42 0.41 0.41 0.37 0.32 0.31 0.29
Tier 1 5.05 4.80 4.65 4.41 4.26 4.85 4.08 3.73 3.56 3.31
Tier 2 4.92 4.14 3.79 3.61 3.35
Tier 3 4.99 4.20 3.84 3.68 3.42
Energy Pumping Fee
Per 100 cubic feet(3)0.063 0.063 0.060 0.056 0.053 0.044 0.072 0.050 0.048 0.042
(1) An additional charge per unit is assessed to governmental customers in lieu of tax revenues.
(2) Effective 2018, there is no more conservation tier for residential; and there is only one tier each for Public Agency & Commercial,
Landscape, Agricultural & Construction, Recycled Commercial, and Recycled Irrigation.
(3) Water customers are charged an energy pumping charge based on the quantity of water used and the elevation to which the water
has been lifted to provide service. The energy pumping charge is the rate of $.063 per 100 cubic feet of water for each 100 feet of
lift above the base elevation of 450 feet. All water customers are in one of twenty-nine zones based on elevation.
Source: Otay Water District
Water Variable Rates - Last Ten Fiscal Years
Recycled Irrigation
Recycled Commercial
Public Agency & Commercial
Landscape, Agricultural & Construction
Master Meter
Residential
90
DDescription 2022 2021*2020 2019 2018 2017 2016 2015 2014 2013**
Per Unit 3.11$ 2.96$ 2.93$ 2.67$ 2.77$ 2.58$ 2.46$ 2.46$ 2.46$ 2.35$
Low Strength 3.11 2.96 2.93 2.67 2.77 2.58 2.46 2.46 2.46 2.35
Medium Strength 3.54 3.37 3.64 3.31 3.98 3.70 3.53 3.53 3.53 3.37
High Strength 4.98 4.75 5.01 4.56 6.34 5.90 5.63 5.63 5.63 5.37
3/4" 17.37 16.55 16.38 14.91 17.08 15.89 27.07 15.89 15.89 14.38
1" 17.37 16.55 16.38 14.91 17.08 15.89 27.07 15.89 15.89 14.38
3/4" 17.37 16.55 16.38 14.91 30.50 28.37 27.07 27.07 27.07 25.83
1" 43.41 41.36 40.94 37.27 44.94 41.80 39.86 39.86 39.86 38.03
1.5" 86.80 82.71 81.88 74.55 80.92 75.27 71.82 71.82 71.82 68.53
2" 138.88 132.33 131.00 119.27 124.12 115.46 110.17 110.17 110.17 105.12
3" 260.41 248.13 245.64 223.64 224.93 209.24 199.66 199.66 199.66 190.52
4" 434.02 413.55 409.40 372.73 368.97 343.23 327.51 327.51 327.51 312.51
6" 868.03 827.09 818.79 745.45 729.04 678.18 647.12 647.12 647.12 617.48
8" 1,388.87 1,323.36 1,310.08 1,192.73 1,161.15 1,080.14 1,030.67 1,030.67 1,030.67 983.46
10" 1,996.50 1,902.34 1,883.23 1,714.54 1,665.25 1,549.07 1,478.12 1,478.12 1,478.12 1,410.42
Calculation of Monthly Residential Sewer Billing:
Bill calculation beginning calendar year 2008: (Winter Average(1) x .85(2) x Sewer Rate) + Fixed Rate(3)
*Bill calculation beginning calendar year 2021: (3-Year Winter Average(4) x .85 (2) x Sewer Rate) + Fixed Rate(3)
Calculation of Monthly Non-Residential Sewer Billing:
Footnotes:
(1) The winter average for a residential customer is defined as the units of water billed from January through April of the
previous calendar year divided by four.(2)Flow is reduced by 15% to reflect that not all water purchased is disposed of into the public sewer system.
(3)The fixed rate is based on the size of the water meter.
(4) The three-year winter average is defined as the sum of prior three years annual winter average divided by three. The annual
winter average is defined as the units of water billed from January through April divided by four.
(5) The average annual usage is defined as the units of water billed from January through December of previous year.(6)The Sewer Rate is a per unit charge based on the non-residential account's strength factor as shown on the rates table as
being either Low, Medium, or High.
Source: Otay Water District
**Bill calculation beginning calendar year 2013: (Average Annual Usage(5) x .85(2) x Sewer Rate(6)) + Fixed Rate(3)
Residential
Non-Residential
Residential
Non-Residential
Sewer Variable and Fixed Rates - Last Ten Fiscal Years
Fixed Rates
Sewer Rates
91
Customer Name Customer Type
Annual
Revenues
% of Water
Sales
1. City of Chula Vista Publicly Owned 4,332,713 4.2%
2. Richard J Donovan Correctional Facility Publicly Owned 1,424,920 1.4%
3. County of San Diego Publicly Owned 1,334,905 1.3%
4.Eastlake III Community Association Commercial 1,138,564 1.1%
5. Chula Vista School District Publicly Owned 818,403 0.8%
6. Homefed Village III Temporary 717,682 0.7%
7. Eastlake Country Club Commercial Recycled 695,455 0.7%
8.Baldwin & Sons, LLC Temporary 578,975 0.6%
9. Sweetwater School District Publicly Owned 572,757 0.6%
10. San Diego Family Housing Publicly Owned 529,098 0.5%
Total Top Ten Customers 12,143,471$ 11.9%
Other Customers 90,663,627 88.1%
Total Water Sales 102,807,098$ 100.0%
Customer Name Customer Type
Annual
Revenues
% of Water
Sales
1. City of Chula Vista Publicly Owned 3,079,176$ 4.3%
2. State of California Publicly Owned 948,779 1.3%
3. County of San Diego Publicly Owned 801,457 1.1%
4. City of San Diego Publicly Owned 638,175 0.9%
5. Eastlake Country Club Commercial 540,498 0.7%
6. Eastlake III Community Commercial 539,273 0.7%
7. Sweetwater School District Publicly Owned 460,200 0.6%
8. Highlands Golf Company, LLC Commercial 454,086 0.6%
9. Chula Vista School District Publicly Owned 448,741 0.6%
10. SANDAG Publicly Owned 362,369 0.6%
Total Top Ten Customers 8,272,754$ 11.5%
Other Customers 63,914,327 88.5%
Total Water Sales 72,187,081$ 100.0%
Source: Otay Water District
Ten Largest Customers - Current Year and Nine Years Ago
Fiscal Year 2022
Fiscal Year 2013
92
AAs a Share
Fiscal Population GO Revenue Lease Per of Personal
Year Estimate Bond COPS Bonds Payable Total Capita Income (1)
2022 228,000 722,726$ -$ 105,027,053$ 723,401$ (6)106,473,180$ 466.99$ 0.89%
2021 226,000 1,444,080 - 110,029,807 - 111,473,887 493.25 0.99%
2020 226,000 2,140,435 - 114,762,562 (5)- 116,902,997 517.27 1.00%
2019 225,000 2,806,789 - 116,189,228 (4)- 118,996,017 528.87 0.93%
2018 225,000 3,458,143 7,593,293 84,170,550 - 95,221,986 423.21 0.73%
2017 224,000 4,079,498 8,192,548 87,134,618 - 99,406,664 443.78 0.80%
2016 220,000 4,680,853 8,791,803 (3)90,218,686 - 103,691,342 471.32 0.86%
2015 217,000 5,267,208 44,990,103 54,887,993 - 105,145,304 484.54 0.90%
2014 213,000 5,833,563 46,475,314 56,508,490 - 108,817,367 510.88 1.00%
2013 211,000 6,384,918 47,920,525 (2)58,158,987 - 112,464,430 533.01 1.06%
(1) See the Demographics and Economic Statistics schedule on page 100 for personal income data. Per Capita Personal Income used
in the calculation of "As a Share of Personal Income" is updated annually for the last ten fiscal years based on the most recent
LAEDC economic reports published. The Share of Personal Income is therefore adjusted to reflect the economic data update.
(2) 2004 COPS were refunded with the issuance of 2013 Water Revenue Refunding Bonds in June 2013.
(3) 2007 COPS were refunded with the issuance of 2016 Water Revenue Refunding Bonds in May 2016.
(4) In November 2018, the District issued $32,435,000 in Water Revenue Bonds, Series 2018, of which a portion of the proceeds was
used to advance refund $6,900,000 of the 1996 Certificates of Participation.
(5) In December 2019, the District issued $3,120,000 in Wastewater Revenue Bonds to pay for certain capital improvements to the
District's wastewater system.
(6) The District is a lessee for an antenna site lease that required annual fixed payments with a lease term of forty-eight years.
Lease payable is measured at the present value of payments expected to be made during the lease term.
Source: Otay Water District
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years
$0
$100
$200
$300
$400
$500
$600
$700
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Outstanding Debt, Per Capita
Adjusted Net Revenues
Fiscal Adjusted Operating Available for Debt Service Requirements (4)Coverage
Year Revenues (1)Expenses (2)Debt Service Principal Interest Total Factor (3)
2022 119,990,007$ 86,853,307$ 33,136,700$ 4,480,000$ 4,892,778$ 9,372,778$ 354%
2021 118,995,389 85,872,652 33,122,737 4,275,000 5,108,566 9,383,566 353%
2020 105,820,913 88,223,522 17,597,391 4,075,000 5,289,640 9,364,640 188%
2019 103,126,288 85,243,519 17,882,769 3,405,000 5,037,638 8,442,638 212%
2018 110,274,227 86,437,355 23,836,872 3,215,000 4,334,368 7,549,368 316%
2017 94,551,308 79,062,983 15,488,325 3,335,000 4,420,433 7,755,433 200%
2016 85,417,850 72,117,631 13,300,219 3,120,000 4,640,947 7,760,947 171%
2015 89,646,845 74,320,591 15,326,254 2,945,000 4,767,618 7,712,618 199%
2014 90,948,021 75,575,679 15,372,342 2,935,000 4,895,622 7,830,622 196%
2013 81,778,447 70,228,987 11,549,460 2,800,000 4,988,640 7,788,640 148%
(1)Adjusted revenues exclude sewer revenues and taxes collected for Improvement District 27 and are inclusive of capacity fees.
(2)Adjusted operating expenses exclude sewer expenses and depreciation expense.
(3)The District's bond covenants require a minimum coverage factor of 125%.
(4)Pledge debts are Revenue Bonds.
Source : Otay Water District
Pledged Revenue Coverage (Water) - Last Ten Fiscal Years
0%
50%
100%
150%
200%
250%
300%
350%
400%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Coverage Factor, in Percentage (%)
Actual Ratio Minimum ratio
94
Adjusted Net Revenues
Fiscal Sewer Operating Available for Debt Service Requirements (3)Coverage
Year Revenues Expenses (1)Debt Service Principal Interest Total Factor (2)
2022 3,192,268$ 1,861,910$ 1,330,358$ 65,000$ 89,658$ 154,658$ 860%
2021 3,075,276 2,677,205 398,071 - 86,500 86,500 460%
2020 (5)3,061,829 2,439,432 622,397 - 50,154 50,154 1241%
(1)Adjusted operating expenses exclude depreciation expense.
(2)The District's bond covenants require a minimum coverage factor of 115%.
(3)Pledge debts are Revenue Bonds.
(4)No wastewater revenue bonds were issued between FY2011 and FY2019.
(5)In December 2019, the District issued $3,120,000 in Wastewater Revenue Bonds to pay for certain
capital improvements to the District's wastewater system.
Source : Otay Water District
Pledged Revenue Coverage (Wastewater) - Last Ten Fiscal Years (4)
0%
200%
400%
600%
800%
1000%
1200%
1400%
2020 2021 2022
Coverage Factor, in Percentage (%)
Actual Ratio Minimum ratio
95
NNet Bonded
Net Debt to Net Bonded
Fiscal Population Assessed Bonded Assessed Debt Per
Year Estimate Valuation Debt Valuation Capita
2022 228,000 36,225,223,831$ 722,726$ 0.002%3.17$
2021 226,000 34,567,775,896 1,444,080 0.004%6.39
2020 226,000 32,639,341,026 2,140,435 0.007%9.47
2019 225,000 30,767,749,324 2,806,789 0.009%12.47
2018 225,000 29,387,363,297 3,458,143 0.012%15.37
2017 224,000 27,598,986,676 4,079,498 0.015%18.21
2016 220,000 26,057,698,553 4,680,853 0.018%21.28
2015 217,000 24,682,307,510 5,267,208 0.021% 24.27
2014 213,000 23,304,103,069 5,833,563 0.025%27.39
2013 211,000 22,836,336,223 6,384,918 0.028%30.26
Source: Otay Water District
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years
0.00%
0.01%
0.02%
0.03%
0.04%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Bonded Debt Ratios, in Percentage (%)
96
Computation of Direct and Overlapping Bonded Debt
June 30, 2022
2021-22 Assessed Valuation: $36,225,223,831
Total Debt District’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2022 % Applicable (1) Debt 6/30/2022
Metropolitan Water District $20,175,000 1.066% $ 215,066
Otay Water District Improvement District No. 27 722,726 100. 722,726
Grossmont-Cuyamaca Community College District 381,640,377 14.645 55,891,233
Southwestern Community College District 777,649,345 41.670 324,046,482
Grossmont Union High School District 618,237,843 15.069 93,162,261
Sweetwater Union High School District 376,281,149 49.442 186,040,926
Chula Vista City School District and School Facilities
Improvement District 203,275,285 62.148 & 29.376 100,857,849
San Ysidro School District 139,506,092 52.599 73,378,809
Other School Districts 6,343,897,140 Various 57,305,404
Grossmont Healthcare District 243,787,076 13.474 32,506,569
City of Chula Vista Community Facilities Districts 126,885,000 100. 126,885,000
Sweetwater Union High School District Community Facilities
Districts 49,782,643 19.315 - 100. 46,717,540
City 1915 Act Bonds 5,555,000 100. 5,555,000
California Statewide Communities Development Authority
Venture Community Center and Sweetwater Place and
Vista Assessment Districts 6,374,781 100. 6,374,781
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $1,109,659,646
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Diego County General Fund Obligations $245,340,000 5.976% $ 14,661,518
San Diego County Pension Obligation Bonds 340,825,000 5.976 20,367,702
San Diego Superintendent of Schools Certificates of Participation 7,780,000 5.976 464,933
Otay Water District 105,027,053 100. 105,027,053
Southwestern Community College District General Fund
Obligations 375,000 41.670 156,263
Sweetwater Union High School District Certificates of Participation 29,140,000 49.442 14,407,399
Chula Vista City School District Certificates of Participation 192,105,000 62.148 119,389,415
San Ysidro School District Certificates of Participation 36,488,596 52.599 19,192,637
Other School District Certificates of Participation 57,016,793 Various 10,106,274
City of Chula Vista Certificates of Participation and Pension
Obligations 469,860,000 69.914 328,497,921
City of San Diego General Fund Obligations 561,794,528 0.868 4,876,377
TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $637,147,492
Less: Otay Water District Revenue Bonds (100% self-supporting) 105,027,053
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $532,120,439
Continued
97
Computation of Direct and Overlapping Bonded Debt
Total Debt District’s Share of
6/30/2022 % Applicable (1) Debt 6/30/2022
OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $20,930,000 16.308% $3,413,264
TOTAL GROSS DIRECT DEBT $105,749,779
TOTAL NET DIRECT DEBT 722,726 (2)
TOTAL OVERLAPPING DEBT $1,644,470,623
COMBINED TOTAL DEBT $1,645,190,623 (3)
Ratios to 2021-22 Assessed Valuation:
Direct Debt ($722,726) .............................................................................. 0.002%
Total Direct and Overlapping Tax and Assessment Debt .................. 3.06%
Combined Total Debt ......................................................................................... 4.54%
Ratios to Redevelopment Successor Agency Incremental Valuation ($368,896,816):
Total Overlapping Tax Increment Debt ...................................................... 0.93%
(1)The percentage of overlapping debt applicable to the district is estimated using taxable assessed property value. Applicable
percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries
of the water district divided by the overlapping district's total taxable assessed value.
(2)Excludes $105,749,779 revenue bonds supported by water revenues and backed by a rate covenant.
(3)Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Qualified Zone Academy Bonds are included based on principal due at maturity.
Source: California Municipal Statistics, Inc., and Otay Water District
98
2013
% of Total % of Total
County County
Employer Employees Rank Employment Employees Rank Employment
Federal Government(1)46,800 1 3.12% 46,400 1 3.28%
University of California San Diego(2)37,064 2 2.47% 26,000 2 1.84%
County of San Diego(1)21,500 3 1.43% 16,011 3 1.13%
Sharp HealthCare(3)19,321 4 1.29% 14,390 6 1.02%
State of California(1)(4)18,600 5 1.24% 14,500 4 1.02%
Scripps Health(3)14,001 6 0.93% 13,000 7 0.92%
San Diego Unified School District(5)15,000 7 1.00% 14,438 5 1.02%
City of San Diego(3)11,295 8 0.75% 10,296 9 0.73%
Qualcomm Inc.(3)11,200 9 0.75% 11,775 8 0.83%
Kaiser Permanente(3)9,166 10 0.61% 7,800 10 0.55%
Total 203,947 13.59% 174,610 12.34%
Sources:
(1) California Employment Development Department Labor Market Information
(2) University of California
(3) City of San Diego
(4) Excludes education
(5) San Diego Unified School District
Principal Employers - Current Year and Nine Years Ago
2022
99
PPersonal Per Capita
Fiscal Income Personal Unemployment
Year Population (in thousands)Income Rate
2022 3,287,300 171,542,000$ (1)52,183$ (1)4.46%
2021 3,315,400 164,786,000 49,703 8.28%
2020 3,343,400 173,279,000 51,827 6.06%
2019 3,351,800 191,558,000 57,151 3.31%
2018 3,337,500 194,633,000 58,317 3.57%
2017 3,316,200 184,260,000 55,563 4.37%
2016 3,288,600 179,717,000 54,649 4.86%
2015 3,275,500 177,300,000 53,628 5.75%
2014 3,212,300 172,900,000 51,190 7.11%
2013 3,182,100 161,100,000 50,288 7.40%
(1)Estimated Figure
Source: SANDAG; Census 2010, California Department of Finance; California Employment
Development Department; LAEDC-Los Angeles Economic Development Corp.
Demographic and Economic Statistics - Last Ten Fiscal Years
-
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Unemployment Rate, in Percentage (%)
100
Department 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
General Manager 4 5 5 5 6 6 5 5 5 5
Finance 31 31 31 31 29 31 32 34 34 36
Operations 54 54 53 52 52 51 51 51 51 54
Engineering 28 26 26 26 24 24 24 24 25 24
Administrative Services 23 23 23 23 23 23 26 26 28 29
Total 140 139 138 137 134 135 138 140 143 148
Source: Otay Water District
Number of Employees by Function - Last Ten Fiscal Years
0
25
50
75
100
125
150
175
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Employees
101
MMeter Size 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
3/4" & 5/8" 44,583 44,532 44,520 44,490 44,473 44,423 44,413 44,395 44,375 44,354
1" 4,389 4,284 4,080 3,680 3,235 2,800 2,756 2,674 2,557 2,412
1-1/2" 1,409 1,378 1,365 1,362 1,343 1,349 1,342 1,335 1,332 1,333
2" 1,344 1,336 1,344 1,334 1,326 1,301 1,299 1,294 1,293 1,295
3" 120 112 105 102 87 87 82 81 77 76
4" 280 283 281 279 272 232 210 207 189 169
6" 23 23 25 25 24 22 22 18 18 18
Others 9 9 9 9 9 9 9 9 9 9
Total 52,157 51,957 51,729 51,281 50,769 50,223 50,133 50,013 49,850 49,666
% Change 0.4% 0.4% 0.9% 1.0% 1.1% 0.2% 0.2% 0.3% 0.4% 0.6%
Increase 200 228 448 512 546 90 120 163 184 305
Source : Otay Water District
Active Meters by Size - Last Ten Fiscal Years
0
6,500
13,000
19,500
26,000
32,500
39,000
45,500
52,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Active Meters
102
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Water System
Service Area (Square Miles) 125.3 125.5 125.5 125.5 125.5 125.5 125.5 125.5 125.5 125.5
Miles of Potable Water Main 727.0 726.0 723.0 723.0
(1) 727.0 727.0 727.0 727.0 726.0 725.0
Number of Operational
Storage Reservoirs in Service 40 40 40 40 40 40 40 40 40 40
Water Storage Capacity
(in Acre-Feet) 672.0 672.0 672.0 672.0 672.0 672.0 672.0 668.0 668.0 667.8
Total Potable Water Connections
(No. of Meters in Service)51,389 51,204 50,994 50,555 50,045 49,502 49,425 49,308 49,148 48,962
Number of Pump Stations 21 21 21 21 21 21 21 21 21 21
Number of Potable Water
Valves 22,178 21,218 20,981 20,746 20,746 20,746 20,746 20,676 20,460 20,317
Sewer System
Miles of Sewer Lines 88.0 88.0 84.0 84.0 (1)88.0 88.0 88.0 88.0 88.0 88.0
Number of Treatment Plants 1 1 1 1 1 1 1 1 1 1
Treatment Plant Capacity
(Million Gallons per Day) 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3
Total Flows for Fiscal
Year (in Million Gallons) 385 394 399 388 381 393 336 388 405 422
Total Sewer Connections
(No. of Meters in Service)4,738 4,736 4,737 4,737 4,714 4,683 4,677 4,679 4,657 4,655
Recycled System
Miles of Recycled Water
Mains 101.0 104.0 104.0 104.0 104.0 104.0 104.0 104.0 102.0 99.0
Number of Pumping Facilities 3 3 3 3 3 3 3 3 3 3
Number of Operational
Storage Reservoirs in Service 4 4 4 4 4 4 4 4 4 4
Number of Acre-Feet Storage 133.2 133.2 133.2 133.2 (1) 134.2 134.2 134.2 134.2 134.2 134.1
Connections
(No. of Meters in Service) 768 753 735 726 724 721 708 705 702 704
Number of Recycled
Water Valves 1,468 1,522 1,506 1,497 1,497 1,497 1,497 1,492 1,473 1,430
(1)For Fiscal Year ending June 30, 2019, the decreases are a result of sewer gravity mains now maintained by the County of San Diego.
Source : Otay Water District
Operating and Capital Indicators - Last Ten Fiscal Years
103