HomeMy WebLinkAboutFY 2023 Annual Comprehensive Financial Report
Otay Water District
Annual Comprehensive Financial Report
for the Fiscal Year Ended June 30, 2023
BOARD OF DIRECTORS
Mark Robak, Division 5 President
Jose Lopez, Division 4 Vice President
Ryan Keyes, Division 2 Treasurer
Tim Smith, Division 1
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…………………………………………………………………………………………...………………………………………… xiii
List of Principal Officials…………………………………………………………………………………………………...……………………….. xiv
GFOA Certificate of Achievement……………………………………………………………………………………………...……………. xv
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…….…………………………………………………………………………………………………………………………... 91
Sewer Variable and Fixed Rates…….………………………………………………………………………..…………………………….. 92
Ten Largest Customers…………………………………………………………………………………………………………………………….. 93
Ratios of Outstanding Debt by Type…………………………………………………….……………………………………………….. 94
Pledged Revenue Coverage (Water)……………………………………………………………………………………………………. 95
Pledged Revenue Coverage (Wastewater)…………………………………………………………………………………………. 96
Ratios of General Bonded Debt Outstanding………………………………………………………………….………………..… 97
Computation of Direct and Overlapping Bonded Debt………………………………………………………………… 98
Principal Employers…………………………..……………………………………….......................................................……………….. 100
Demographic and Economic Statistics……………………………………………………………………………………………….. 101
Number of Employees by Function………………………………………………………………………………………………………. 102
Active Meters by Size………………………………………………………………..………………………………………………………………. 103
Operating and Capital Indicators…………………………………………………………………………………………………………... 104
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October 25, 2023
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, 2023.
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, 2023, 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, 2023, 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 xiii. Over the last 67
years, the District has grown from a handful of customers and two employees to become an
organization operating a network of more than 921 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 51,604
potable and 782 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 4,739 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 District's Public Services Division saw a moderate increase in the recent year, approving an
average of 100 permits per month and selling 222 water meters during fiscal year 2023, compared to
218 water meters in fiscal year 2022. As of July 2023, it is estimated that the District served
approximately 240,290 residents. The San Diego Association of Governments (SANDAG), the regional
planning agency, has estimated the District's average long-term growth of 0.25%. The District expects
nominal growth in the customer base of 0.3% for Fiscal Year 2024 and projects an ultimate customer
population of 271,500 residents by 2055.
LEGISLATIVE AND REGULATORY ISSUES
The District continues to monitor legislative and regulatory activity and how it could impact the District
and its customers. September 14, 2023, was the final day of the legislative session, and the Governor
finished signing and vetoing legislation on October 14, 2023.
The District submitted a letter in support of Senate Bill 366 (Caballero), which revises and recasts the
California Water Plan and requires the Water Plan, commencing with the 2028 update, to be a
comprehensive plan for addressing the state’s water needs and meeting water specified long-term
supply targets.
Other bills that the District monitored include:
AB 1594 (Garcia) will require any state regulation that seeks to require, or otherwise compel,
the procurement of medium- and heavy-duty zero-emission vehicles (ZEV) to ensure that
those vehicles can support a public agency utility's ability to maintain reliable water and
electric service, respond to disasters in an emergency capacity, and provide mutual aid
assistance statewide and nationwide. This bill, also supported by the California Municipal
Utilities Association (CMUA), will assist in meeting California’s 100% ZEV goals in a manner
tailored to each publicly owned utility and the essential services they provide their
communities. The bill was signed by the Governor.
AB 249 (Holden) would have required, on or before January 1, 2027, a community water
system that serves a school site receiving federal Title I funds to test for lead in each of the
school site’s potable water system outlets and to report the results to the State Water
Resources Control Board (SWRCB) and applicable school or Local Educational Agency (LEA);
would have required LEAs or schools, if lead levels exceed five parts per billion (ppb), to
perform specified actions. This bill is opposed by the Association of California Water Agencies
(ACWA), CMUA, and the California Special Districts Association (CSDA) because the current
version of the federal rule includes different requirements than the proposed provisions of AB
249, and they expect that those differences could be further exacerbated in the federal Lead
and Copper Rule Revisions and Improvements (LCRR/LCRI). The operative date of AB 249
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would have been January 1, 2024, and the completion date was proposed to be 2027. This
would have directly overlapped with the LCRR/LCRI schedule and water systems likely would
have had to comply with two comprehensive testing regimes without any additional public
health benefit. The bill passed the legislature, but the Governor vetoed the bill due to cost
concerns.
AB 399 (Boerner) will require, as an additional condition to the Local Agency Formation
Commission (LAFCO) process for allowing the detachment of a public agency from their
relevant county water authority, that the majority of the voters within the jurisdiction of the
county water authority vote to approve the detachment at a scheduled election. This bill was
sponsored by the City of San Diego and supported by the San Diego County Water Authority
(CWA), and it was opposed by San Diego LAFCO. The bill was signed by the Governor.
AB 1572 (Friedman) will prohibit the use of potable water to irrigate nonfunctional turf on
commercial, municipal, institutional, and multifamily residential properties with a phase-in ban
for specified property types beginning January 1, 2027. The bill was signed by the Governor.
There is also a package of highly controversial bills that the District is monitoring to “modernize”
California water rights system that ACWA is engaging including AB 1337 (Wicks), AB 460 (Baur Kahan),
AB 676 (Bennett), and AB 560 (Bennett).
Other legislation that the District is tracking includes proposed water, parks, and climate bonds still
being negotiated by legislators. The District also monitored this year’s state budget as the main budget
bill and trailer bills were passed by the end of session.
The District also has been actively engaged in the California Air Resources Board’s (CARB) release of
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 submitted comments regarding its concerns regarding the draft and final regulatory language
that was adopted on April 27, 2023. The District is also part of a coalition through ACWA on the issue.
The Office of Administrative Law approved the rule on September 29, 2023, and became official as of
October 1, 2023.
The District is also monitoring water quality regulatory developments at the SWRCB. In March of this
year, the board adopted a resolution for drinking water regulations development for the remainder of
this calendar year. The Board’s Division of Drinking Water has established a proposed prioritized list
for regulatory development projects for 2023. This includes minimum contaminant levels (MCLs) for
Chromium (hexavalent), Arsenic, Perfluoro-octanoic acid (PFOA), perfluoro-octane sulfonic acid
(PFOS), N-nitroso dimethylamine (NDMA), Disinfection Byproducts, Styrene, Cadmium, and Mercury.
The SWRCB and many water agencies, including the District, continue to focus on conservation-
related laws such as SB 1157 (Hertzberg, 2022), which lowered the indoor residential water-use
standard and superseded SB 606 and AB 1668, which passed in 2018. The bill passed and was signed
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by the Governor last fall. It established the indoor residential water-use standards 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. SB 1157 supersedes SB 606 and AB
1668 which passed in 2018 to build 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 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 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.
Due to the drought, in May 2022, the SWRCB adopted an emergency drought regulation and by June
10, 2022, 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). On March 24, 2023, the Governor issued an executive
order amending the Emergency Drought Proclamation and previous executive orders on
conservation. This order included the following: ended the voluntary 15% water conservation target,
while continuing to encourage that Californians make conservation a way of life; ended the
requirement that local water agencies implement level 2 of their drought contingency plans; and
retained a state of emergency for all 58 counties to allow for drought response and recovery efforts to
continue.
In August of last year, 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 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 (DWR) released its Draft Environmental Impact Report for the Delta
Conveyance Project (DCP), marking an important step in evaluating a key strategy to adapt to a
changing climate and provide clean, reliable water for future generations. 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. Building on that progress, DWR is continuing to advance environmental planning and
permitting activities, as well as public outreach and engagement, including but not limited to
California Environmental Quality Act, National Environmental Policy Act, California Endangered
Species Act Incidental Take Permits, and Endangered Species Act Biological Opinions. DWR released
an “Adapting to Climate Change” fact sheet after the January winter storms, detailing that if the DCP
had been operational, it would have moved 202,000-acre feet of water into the San Luis Reservoir,
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enough supply for 2.1 million people for one year or 710,000 households. This is about 35% of the total
volume exported by the State Water Project (SWP) in water year 2022.
FISCAL YEAR 2023-2026 STRATEGIC PLAN
Since 1956 the District's theme has been and continues to be "Dedicated to Community Service." This
motto serves as a great reminder for our staff of the responsibility and significance of delivering
exceptional service to the residents and businesses in our community.
Over the years the District’s strategic plan has evolved from one focused on growth to one focusing
on consistent, albeit lower, growth levels, long-term operations, and capital maintenance needs 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. Quarterly and annual 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. The new strategic plan addresses 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, retention and recruitment of a skilled
workforce, and maintaining an adaptable organization to meet future challenges. The strategic plan
allows us to also convey our plans to our customers, other agencies, and water regulators. As with
past plans, we are confident that this plan will help us to successfully implement the Board’s direction.
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.
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The success of this approach is proven by the District’s gains in productivity and reduction in staffing
while service growth continues. The District has reduced staffing by 30.75 full-time equivalent
positions, or 18%, while the number of customer accounts increased by 4,675, or 9% from 2007 through
2024. 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.
The District’s Other Post-Employment Benefit (OPEB) plan is 85% funded as of June 30, 2022, which is
a 24% decline from the previous 109% funding status as of June 30, 2021, due to lower investment
returns from California Employers’ Benefit Trust (CERBT). The District will continue its strategy of
advance funding its unfunded pension and OPEB obligations. The FY 2024 budget includes a $1.3
million advance contribution to the retiree healthcare plan, which is consistent with the prior budget
recommendations when OPEB has fallen below a 100% funding level. The strategy of advance funding
the District’s unfunded obligations aims to reduce the District’s highest cost debt. This strategy is
aimed to save the ratepayers money and will save the District approximately $6.0 million over the 12-
year advance funding period, which began in 2021.
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 ninth
lowest water rates of 22 agencies, and fourth lowest sewer rates of 28 agencies in the region.
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 $127,947,600 for Fiscal Year 2024. Revenues from potable
and recycled water sales are projected to be $111,855,000, about $7,330,000 (7.0%) higher than the
Fiscal Year 2023 budget. Water sales volumes are expected to increase by 0.8% versus Fiscal Year
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2023 budget. The MWD and CWA water supply rates are increasing 8.1% in Fiscal Year 2024 due to
the high cost of supply programs, higher energy costs, and increasing operating costs. District staff
projects wastewater revenues to be $3,468,000, approximately $184,000 more than the Fiscal Year
2023. The remaining budgeted revenues of $12.6 million come from various special fees, assessments,
and non-operating revenues. An overall water rate increase of 6.6% has been budgeted for January 1,
2024, while a 4.8% rate increase for wastewater has been budgeted, effective January 1, 2024.
The 2023-24 Capital Improvement Program (CIP) budget consists of 127 projects and a $15.3 million
budget. This year’s six-year CIP budget increased by $39.6 million from $108.4 million to $148.0 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 2022 being a drier year than FY 2023, potable sales volumes decreased 8.7% from Fiscal Year
2022 levels. The District projects a 0.8% increase in water sales volume in Fiscal Year 2024 compared
to the previous year’s budget and an increase of 6.9% versus FY 2023 actual sales volume.
SAN DIEGO COUNTY WATER SUPPLY
San Diego County imports about 72% 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-
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:
Pipeline Replacement Projects (39 Total)
Reservoir Construction or Rehabilitation Projects (16 Total)
Pump Station Replacement and Rehabilitation
Meter Replacement
Sewer Basin Improvements
Pipeline Misc. Appurtenances
Equipment & Vehicles
RWCWRF Projects (10 Total)
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ACCOUNTING SYSTEM
The Finance Department is responsible for providing financial services to the District, including
financial accounting, debt management, reporting, payroll, and 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.
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, 2022. 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 2022-2023. To achieve this award, a governmental unit must publish a budget
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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 2022-2023.
The California Society of Municipal Finance Officers presented the District with the Certificate
of Award for Excellence in Capital Budgeting for Fiscal Year 2022-2023.
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 – (143 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
(29)
Water
Operations
(56)
Collection,
Treatment, and
Reclamation
Operations
District Secretary
General Counsel
Public Information
Conservation
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List of Principal Officials
Mark Robak
President
Division 5
Jose Lopez
Vice President
Division 4
Ryan Keyes
Treasurer
Division 2
Tim Smith
Division 1
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, 2022. This
is the nineteenth 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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xvi
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, 2023 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, 2023, 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 opinion.
Emphasis of Matter
As described further in Note 5 to the financial statements, during the year ended June 30,
2023, the District implemented Governmental Accounting Standards Board (GASB) Statement
No.96, Subscription-Based Information Technology Arrangements 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.
1
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
We have previously audited the District’s 2022 financial statements, and we expressed an
unmodified audit opinion on those audited financial statements in our report dated October
19, 2022. In our opinion, the summarized comparative information presented herein as of
and for the year ended June 30, 2022, is consistent, in all material respects, with the audited
financial statements from which it has been derived.
2
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 25, 2023 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 25, 2023
3
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, 2023. 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
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 $431.1 million (net position). Of this amount, $83.4 million (unrestricted net
position) may be used to meet the District’s ongoing obligations to residents and creditors.
Total assets increased by $6.7 million or 1.09% during Fiscal Year 2023, to $619.8 million, due to increases in cash and
investments, and the recording of new lease receivables 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 $431.1 million at the close of Fiscal Year 2023.
The most significant portion of the District's net position, $341.2 million (79.15%), reflects its investment in
capital assets, 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)
2023 2022
Assets
Current and Other Assets $ 176.3 $ 166.4
Capital Assets 443.5 446.7
Total Assets 619.8 613.1
Deferred Outflows of Resources
Deferred Actuarial Pension Costs 15.9 4.5
Deferred Actuarial OPEB Costs 6.7 3.0
Total Deferred Outflows of Resources 22.6 7.5
Liabilities
Current Liabilities 34.2 33.5
Long-Term Debt Outstanding 95.4 100.9
Net Pension Liability 25.9 0.3
Net OPEB Liability 5.0 0.0
Other Liabilities 3.8 3.7
Total Liabilities 164.3 138.4
Deferred Inflows of Resources
Deferred Inflows from Leases 45.4 36.6
Deferred Actuarial Pension Costs 0.0 14.4
Deferred Actuarial OPEB Costs 1.6 6.5
Total Deferred Inflows of Resources 47.0 57.5
Net Position
Net Investment in Capital Assets 341.2 340.3
Restricted for Debt Service 3.5 3.7
Restricted for OPEB Asset 0.0 3.0
Restricted for Capital Assets 3.0 3.0
Unrestricted 83.4 74.7
Total Net Position $ 431.1 $ 424.7
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 13% to 271,500 residents. The District has created
6
Management’s Discussion and Analysis
several future planning documents to ensure a reliable water supply and sewer system in the future,
including the maintenance of current infrastructure.
In FY 2023, the District's Capital Assets increased by $14.0 million before accumulated depreciation. (See
Note 4 in the Notes to Financial Statements). The District also saw a decrease in long-term debt of $5.5
million (excluding current maturities) due to annual debt service payments (See Note 5 in the Notes to
Financial Statements).
Total liabilities increased by $25.9 million in FY 2023 primarily due to increases in Net Pension and OPEB
liabilities partially offset by the annual debt service payments.
In FY 2023, deferred outflows of resources increased by 15.1 million due to increases in the actuarial
pension and OPEB costs.
Deferred inflows of resources decreased by $10.5 million in FY 2023 due to decreases in the actuarial
pension and OPEB costs partially offset by the increase in deferred inflows from leases.
At the end of FY 2023, the District reports positive balances in all net position categories. This situation also
applies to the prior fiscal year.
7
Management’s Discussion and Analysis
Statement of Revenues, Expenses, and Changes in Net Position
(In Millions of Dollars)
2023 2022
Water Sales $ 99.9 $ 102.8
Wastewater Revenue 3.3 3.1
Connection and Other Fees 3.0 2.9
Non-operating Revenues 14.6 11.9
Total Revenues 120.8 120.7
Depreciation Expense 17.9 17.7
Other Operating Expenses 100.9 91.5
Non-operating Expenses 4.8 5.3
Total Expenses 123.6 114.5
Income (Loss) Before Capital
Contributions (2.8) 6.2
Capital Contributions 9.2 13.2
Change in Net Position 6.4 19.4
Beginning Net Position 424.7 405.3
Ending Net Position $ 431.1 $ 424.7
Water Sales decreased by $2.9 million in FY 2023 due to the decrease in units sold caused by higher
rainfall partially offset by increases in water rates necessary to pass through increasing costs placed on the
District.
Other Operating Expenses increased by $9.4 million in FY 2023, predominantly due to the increase in
administrative and general expenses caused by increases in pension and OPEB costs and an increase in
the cost of water.
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 2023 those expenses were $0.3 million.
Connection and Other Fees increased by $0.1 million in FY 2023 due to an increase in expansion related
operating costs, which are funded by capacity fees.
8
Management’s Discussion and Analysis
Capital Contributions decreased by $4.0 million in FY2023 due to less developer-built facilities.
Non-operating Revenues
Non-operating Revenues by Major Source
(In Millions of Dollars)
2023 2022
Taxes and Assessments $ 5.6 $ 5.2
Rents and Leases 2.2 2.1
Other Non-operating Revenue 6.8 4.6
Total Non-operating Revenues $ 14.6 $ 11.9
The District's total non-operating revenues increased by $2.7 million in FY 2023 due primarily to the
increase in investment earnings. During FY 2023, the Federal Funds Rate increased from 1.75% to 5.25%
which resulted in the overall increase in the market rates of return.
Capital Assets and Debt Administration
The District's capital assets (net of accumulated depreciation) as of June 30, 2023, totaled $443.5 million.
Included in this amount is land, which is a non-depreciable asset. The District's net capital assets
decreased by 0.72% in FY 2023.
9
Management’s Discussion and Analysis
Capital Assets
(In Millions of Dollars)
As indicated by the figures in the table above, most capital assets added during the current fiscal year are
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.
On June 30, 2023, the District had $95.4 million in outstanding debt (net of $5.2 million of maturities
occurring in FY 2024), which consisted of the following:
Lease Payable $ 0.7
Subscription-Based IT Payable 0.1
Revenue Bonds 94.6
Total Long-Term Debt $ 95.4
Additional information on the District's long-term debt can be found in Note 5 of the Notes to Financial
Statements.
2023 2022
Land $ 14.5 $ 14.4
Construction in Progress 11.7 7.3
Potable Water System 542.6 535.5
Recycled Water System 119.2 117.8
Wastewater System 59.4 59.1
Field Equipment 8.3 8.1
Buildings 19.7 19.6
Transportation Equipment 3.9 3.8
Communication Equipment 2.6 2.5
Office Equipment 8.1 8.1
Right to Use Assets 0.9 0.7
Total Capital Assets 790.9 776.9
Less Accumulated
Depreciation (347.4) (330.2)
Net Capital Assets $ 443.5 $ 446.7
10
Management’s Discussion and Analysis
Fiscal Year 2023-2024 Budget
Economic Factors
The San Diego region imports 72% 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 above-average rainfall of 17.12 inches in FY 2023. San Diego's rainfall average over 10 years is
9.94 inches; the 20-year average is 9.52 inches; the 30-year average is 9.40 inches; and the 40-year average
is 9.77 inches.
While water sales peaked in 2008, prolonged droughts led to an increase in conservation which has had
permanent influence on volumes. Higher rainfall resulted in an 8.73% decline in potable water sales
volume in FY 2023. The FY 2024 sales volume is budgeted to increase modestly by 0.84% compared to the
previous year's budget.
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 passing through the benefits of greater efficiencies and
economies of scale.
The District is currently at about 87% of its projected ultimate population, serving approximately 240,000
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 271,500 people, with an average daily
demand of 38.5 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).
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.
11
Management’s Discussion and Analysis
Financial
The District is budgeted to deliver approximately 27,566.5 acre-feet of potable water to 51,758 potable
customer accounts during FY 2024. The FY 2024 budget was prepared with the continuing challenges of
inflation, regulatory compliance requirements, and endeavors related to the District’s strategic plan.
Inflation is expected to have a significant impact on material and administrative expenses in FY 2024, with
an estimated $1.2 million impact and $18.4 million impact on the CIP. SDG&E rate increases are expected
to increase energy costs by 10.1%, resulting in a $392 thousand increase. Regulatory mandates are also
adding pressure to both operating and CIP budgets, increasing material and administrative expense
budgets by $848 thousand. The District partially mitigates inflationary impacts through returns on
investments and long-term contracts that fix District expenses. The London Moeder Advisors' economic
report suggests inflation will likely continue into 2024 at a moderately tempered pace, supported by March
2023 CPI data at a 5.3% inflation rate. The six-year rate model assumes administrative and material
inflation to decrease gradually from 5.5% in FY 2025 to 4.0% by 2028.
District staff projects that the District will sell another 1,123 meters over the next six years, translating to
3,964.5 equivalent dwelling units (EDUs). This growth is estimated to increase sales volumes by an
average of less than 1% per year over the next five years. While all these factors impact the region's water
usage, people's water needs remain an underlying constant.
Management is unaware of any other conditions that are likely to have a significant impact on the District's
current financial position, net position, or operating results.
Contacting the District's Financial Management
This financial report provides a general overview of the Otay Water District's finances for the Board of
Directors, customers, creditors, and other interested parties. Questions concerning any information
provided in the report or requests for additional information should be addressed to the District's Finance
Department, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978-2004.
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14
2023 2022
ASSETS
Current Assets:
Cash and Cash Equivalents (Notes 1 and 2)43,753,408$ 87,556,645$
Restricted Cash and Cash Equivalents (Notes 1 and 2)3,078,363 3,208,111
Investments (Notes 1 and 2)59,781,150 11,689,224
Restricted Investments (Notes 1 and 2)3,444,377 3,499,094
Accounts Receivable, Net 14,313,664 15,450,919
Accrued Interest Receivable 846,231 262,315
Taxes and Availability Charges Receivable, Net 305,094 277,505
Restricted Taxes and Availability Charges Receivable, Net 6,182 15,059
Current Lease Receivable (Note 11)962,482 1,055,499
Inventories 2,053,393 1,350,220
Prepaid Items and Other Receivables 1,501,252 2,507,703
Total Current Assets 130,045,596 126,872,294
Non-current Assets:
Capital Assets (Note 4):
Land 14,479,573 14,423,773
Construction in Progress 11,741,448 7,306,003
Capital Assets, Net of Depreciation 417,230,754 425,017,900
Net OPEB Asset - 3,005,037
Lease Receivable (Note 11)46,270,266 36,446,255
Total Non-current Assets 489,722,041 486,198,968
Total Assets 619,767,637 613,071,262
DEFERRED OUTFLOWS OF RESOURCES
Deferred Actuarial Pension Costs (Note 7)15,951,074 4,481,769
Deferred Actuarial OPEB Costs (Note 8)6,679,231 3,078,056
Total Deferred Outflows of Resources 22,630,305$ 7,559,825$
Continued
STATEMENT OF NET POSITION
June 30, 2023
(with comparative totals as of June 30, 2022)
The accompanying notes are an integral part of this statement.
15
2023 2022
LIABILITIES
Current Liabilities:
Current Maturities of Long-term Debt (Note 5)5,212,060$ 5,525,676$
Accounts Payable 14,985,218 15,694,680
Accrued Payroll Liabilities 1,102,208 978,174
Other Accrued Liabilities 5,729,278 4,973,784
Customer and Developer Deposits 5,573,296 4,658,907
Accrued Interest 1,573,222 1,649,672
Liabilities Payable from Restricted Assets:
Restricted Accrued Interest - 9,600
Total Current Liabilities 34,175,282 33,490,493
Non-current Liabilities:
Long-term Debt (Note 5):
General Obligation Bonds - 2,726
Revenue Bonds 94,634,295 100,237,053
Lease Payable 690,539 707,725
Subscription-Based IT Payable (Note 5)35,476 -
Net Pension Liability (Note 7)25,951,095 280,298
Net OPEB Liability (Note 8)5,051,261 -
Other Non-current Liabilities (Note 1)3,768,468 3,704,232
Total Non-current Liabilities 130,131,134 104,932,034
Total Liabilities 164,306,416 138,422,527
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows from Leases (Note 11)45,442,359 36,619,439
Deferred Actuarial Pension Costs (Note 7)- 14,422,139
Deferred Actuarial OPEB Costs (Note 8)1,574,138 6,444,195
Total Deferred Inflows of Resources 47,016,497 20,866,334
NET POSITION
Net Investment in Capital Assets 341,227,728 340,274,496
Restricted for Debt Service 3,476,509 3,685,440
Restricted for OPEB Asset - 3,005,037
Restricted for Capital Assets 3,046,231 3,021,765
Unrestricted (Note 6)83,324,561 74,736,049
Total Net Position 431,075,029$ 424,722,787$
(with comparative totals as of June 30, 2022)
STATEMENT OF NET POSITION - Continued
June 30, 2023
The accompanying notes are an integral part of this statement.
16
Statements of Revenues, Expenses, and Changes in Net Position
2023 2022
OPERATING REVENUES
Water Sales 99,901,174$ 102,807,098$
Wastewater Revenue 3,315,754 3,073,326
Connection and Other Fees 2,975,495 2,874,174
Total Operating Revenues 106,192,423 108,754,598
OPERATING EXPENSES
Cost of Water Sales 71,342,741 70,562,038
Wastewater 2,497,316 1,802,256
Administrative and General 27,073,523 19,174,479
Depreciation 17,880,335 17,688,535
Total Operating Expenses 118,793,915 109,227,308
Operating Income (Loss)(12,601,492)(472,710)
NON-OPERATING REVENUES (EXPENSES)
Investment Earnings (Losses)4,088,331 (1,506,486)
Taxes and Assessments 5,618,253 5,244,584
Availability Charges 710,954 740,928
Gain (Loss) on Disposal of Capital Assets (111,029)(187,313)
Rents and Leases 2,181,634 2,071,200
Miscellaneous Revenues 1,961,168 5,417,588
Donations (92,000)(106,913)
Interest Expense (4,310,352)(4,551,134)
Miscellaneous Expenses (330,421)(447,192)
Total Non-operating Revenues (Expenses)9,716,538 6,675,262
Income (Loss) Before Capital Contributions (2,884,954)6,202,552
Capital Contributions 9,237,196 13,269,160
Change in Net Position 6,352,242 19,471,712
Total Net Position, Beginning 424,722,787 405,251,075
Total Net Position, Ending 431,075,029$ 424,722,787$
For the Years Ended June 30, 2023 and 2022
The accompanying notes are an integral part of this statement.
17
2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers 105,268,572$ 105,448,398$
Receipts from Connections and Other Fees 2,975,495 2,874,174
Receipts from Property Rents and Leases 314,995 109,941
Other Receipts 1,178,333 4,634,753
Payments to Suppliers (75,408,680)(73,728,635)
Payments to Employees (25,602,901)(22,002,283)
Other Payments (422,421)(554,105)
Net Cash Provided By (Used For) Operating Activities 8,303,393 16,782,243
CASH FLOWS FROM NONCAPITAL AND RELATED
FINANCING ACTIVITIES
Receipts from Taxes and Assessments 6,065,432 5,483,041
Net Cash Provided By (Used For) Noncapital and Related
Financing Activities 6,065,432 5,483,041
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from Capital Contributions 6,148,060 9,236,895
Proceeds from Sale of Capital Assets 64,042 35,370
Proceeds from Property Rents and Leases 1,503,495 1,553,886
Proceeds from Debt Related Taxes and Assessments 245,063 483,260
Principal Payments on Long-Term Debt (5,563,365)(5,265,100)
Interest Payments and Fees (4,074,051)(4,324,324)
Acquisition and Construction of Capital Assets (11,547,330)(8,325,724)
Net Cash Provided By (Used For) Capital and Related
Financing Activities (13,224,086)(6,605,737)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received on Investments 2,407,520 518,928
Proceeds from Sale and Maturities of Investments 7,600,000 3,666,096
Purchase of Investments (55,085,244)(17,806,819)
Net Cash Provided By (Used For) Investing Activities (45,077,724)(13,621,795)
Net Increase (Decrease) in Cash and Cash Equivalents (43,932,985)2,037,752
Cash and Cash Equivalents - Beginning 90,764,756 88,727,004
Cash and Cash Equivalents - Ending 46,831,771$ 90,764,756$
Continued
Statements of Cash Flows
For the Years Ended June 30, 2023 and 2022
The accompanying notes are an integral part of this statement.
18
2023 2022
Reconciliation of Operating Income (Loss) to Net Cash Flows
Provided By (Used For) Operating Activities:
Operating Income (Loss)(12,601,492)$ (472,710)$
Adjustments to Reconcile Operating Income to
Net Cash Provided By (Used For) Operating Activities:
Depreciation 17,880,335 17,688,535
Receipts from Property Rents and Leases 314,995 109,941
Miscellaneous Revenues 1,178,333 4,634,753
Miscellaneous Expenses and Donations (422,421) (554,105)
(Increase) Decrease in Accounts Receivable 1,137,255 (609,982)
(Increase) Decrease in Inventory (703,173) (494,657)
(Increase) Decrease in Prepaid Items and Other Receivables 1,006,451 202,534
(Increase) Decrease in Net OPEB Asset 3,005,037 (3,005,037)
(Increase) Decrease in Deferred Actuarial Pension Costs (11,469,305) 939,754
(Increase) Decrease in Deferred Actuarial OPEB Costs (3,601,175) (638,424)
Increase (Decrease) in Accounts Payable (709,462) 958,954
Increase (Decrease) in Accrued Payroll and Related Expenses 124,034 68,001
Increase (Decrease) in Other Accrued Liabilities 755,494 (11,909)
Increase (Decrease) in Customer and Developer Deposits 914,389 177,956
Increase (Decrease) in Other Non-current Liabilities 64,236 (88,779)
Increase (Decrease) in Net OPEB Liability 5,051,261 (1,801,159)
Increase (Decrease) in Net Pension Liability 25,670,797 (19,763,221)
Increase (Decrease) in Deferred Actuarial Pension Costs (14,422,139) 14,422,139
Increase (Decrease) in Deferred Actuarial OPEB Costs (4,870,057) 5,019,659
Net Cash Provided By (Used For) Operating Activities 8,303,393$ 16,782,243$
Schedule of Cash and Cash Equivalents:
Current Assets:
Cash and Cash Equivalents 43,753,408$ 87,556,645$
Restricted Cash and Cash Equivalents 3,078,363 3,208,111
Total Cash and Cash Equivalents 46,831,771$ 90,764,756$
-
Supplemental Disclosures
Non-Cash Investing and Financing Activities Consisted of the Following:
Contributed Capital for Water and Sewer System 3,089,136$ 4,032,265$
Change in Fair Value of Investments and Recognized Gains/Losses (551,965) 2,618,502
Amortization Related to Long-term Debt 460,484 474,108
For the Years Ended June 30, 2023 and 2022
Statements of Cash Flows - Continued
The accompanying notes are an integral part of this statement.
19
Notes to Financial Statements
Year Ended June 30, 2023
NOTE DESCRIPTION PAGE
1 Reporting Entity and Summary of Significant Accounting Policies..…………… 21 – 30
2 Cash and Investments……………………………………………………………………………..…………….. 30 – 36
3 Fair Value Measurements…………………………………………..………........................................ 36 – 37
4 Capital Assets…………………………………………………..………………………………………………………. 38
5 Long-Term Debt………………………………………………….…………………………………………………… 39 – 45
6 Net Position……………………………………………………………………………………………………………….. 46
7 Defined Benefit Pension Plan……………………………………………………………………………….. 46 – 53
8 Other Post Employment Benefits………………………..…………............................................ 53 – 59
9 Commitments and Contingencies……………………………………………………………………… 59 – 60
10 Risk Management……………………………………………………………………………………………………. 60 – 61
11 Leases Receivable…..………………………………………………..……………………………………………. 62
12 Segment Information………………………………………………..……………………………………………. 62 - 65
13 Implementation of New Accounting Standards………………………………...…………… 65
20
Notes to Financial Statements
Year Ended June 30, 2023
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, 2023
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, 2023
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 $34,587 at June 30, 2023.
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, 2023
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C) New Accounting Pronouncements
Implemented as of June 30, 2023
Governmental Accounting Standard Board Statement No. 94
In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and
Availability Payment Arrangements. The primary objective of this Statement is to improve financial
reporting by addressing issues related to public-private and public-public partnership arrangements
(PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor)
contracts with an operator (a governmental or nongovernmental entity) to provide public services
by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or
other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like
transaction. Currently this Statement has no effect on the District’s financial statements.
Governmental Accounting Standard Board Statement No. 96
In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology
Arrangements. This Statement provides guidance on the accounting and financial reporting for
subscription-based information technology arrangements (SBITAs) for government end users
(governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-
use subscription asset – an intangible asset – and a corresponding liability; (3) provides the
capitalization criteria for outlays other than subscription payments, including implementation costs
of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards
for SBITAs are based on the standards established in Statement No. 87, Leases, as amended.
Pending Accounting Pronouncements
GASB has issued the following statements which may impact the District’s financial reporting
requirements in the future:
i. GASB Statement 99 - “Omnibus 2022”, effective for reporting periods beginning after June 15,
2023.
ii. GASB Statement 100 - “Accounting Changes and Error Corrections”, effective for reporting
periods beginning after June 15, 2023.
iii. GASB Statement 101 - “Compensated Absences”, effective for reporting periods beginning
after December 15, 2023.
24
Notes to Financial Statements
Year Ended June 30, 2023
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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.
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 two items that qualify for reporting in
this category.
Accordingly, the items 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.
25
Notes to Financial Statements
Year Ended June 30, 2023
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
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.
Right-to-use assets for leases and subscription-based information technology arrangements are
recorded at net present value at the time of inception.
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 15-70 Years
Wastewater System 25-50 Years
Right to Use Asset The estimated life of the leased/subscribed
asset or the contract term whichever is shorter
26
Notes to Financial Statements
Year Ended June 30, 2023
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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.
The 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 $166,312 for 2023.
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 $100 assessed valuation, under the provisions of Proposition 13. Tax rates for voter-
approved indebtedness are excluded from this limitation.
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Compensated absences 3,424,551$ 1,483,424$ (1,422,524)$ 3,485,451$ 348,545$
Customer credits 265,493 9,425 - 274,918 -
Reimbursement agreements 356,644 - - 356,644 -
Total 4,046,688$ 1,492,849$ (1,422,524)$ 4,117,013$ 348,545$
27
Notes to Financial Statements
Year Ended June 30, 2023
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
L) Property Taxes - Continued
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, deferred outflows of resource, and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net
position of the Plan and additions to/deductions from the Plans’ fiduciary net position have been
determined on the same basis. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value.
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
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.
28
Notes to Financial Statements
Year Ended June 30, 2023
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
N) Other Post-Employment Benefits (OPEB)
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, 2022
Measurement Period July 1, 2021 to June 30, 2022
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, right to use capital assets, 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 are
recognized as revenue over the life of the lease term.
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.
The District used the weighted average cost of capital rate as the discount rate for leases.
The lease term includes the non-cancellable 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) Subscription Based Information Technology Arrangements (SBITAs)
The District is a participant in subscription-based IT arrangements as detailed in Footnote 5. The
District recognizes a subscription-based IT payable and right to use IT assets in the financial
statements.
29
Notes to Financial Statements
Year Ended June 30, 2023
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
P) Subscription Based Information Technology Arrangements (SBITAs) - Continued
At the commencement of the arrangement, the District initially measures the payable at the present
value of payments expected to be paid during the arrangement term. Subsequently, the payable is
reduced by the principal portion of payments made. The right to use assets are initially measured at
the initial amount of the subscription-based IT payable. Subsequently, the right to use assets are
amortized over the life of the arrangement term.
Q) 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.
R) 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 at a market rate of return under the parameters of such policies.
30
Notes to Financial Statements
Year Ended June 30, 2023
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 below 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 trustees 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 43,753,408$
Restricted Cash and Cash Equivalents 3,078,363
Investments 59,781,150
Restricted Investments 3,444,377
Total Cash and Investments 110,057,298$
Cash on Hand 2,950$
Deposits with Financial Institutions 629,278
Investments 109,425,070
Total Cash and Investments 110,057,298$
31
Notes to Financial Statements
Year Ended June 30, 2023
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, 2023.
32
Notes to Financial Statements
Year Ended June 30, 2023
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, 2023.
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 2023 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 $ 66,215,327 29,737,950$ 36,477,377$ -$
U.S. Treasury Obligations 4,939,250 4,939,250 - -
Local Agency Investment Fund (LAIF) 18,543,575 18,543,575 - -
San Diego County Pool 14,948,000 14,948,000 - -
Money Market Funds 4,778,918 4,778,918 - -
Total $ 109,425,070 $ 72,947,693 $ 36,477,377 -$
Remaining Maturity (in Months)
Legal
Minimum Not
Investment Type Total Rating AAA Rated
U.S. Government Sponsored Entities $ 66,215,327 A 66,215,327$ -$
U.S. Treasury Obligations 4,939,250 N/A - 4,939,250
Local Agency Investment Fund (LAIF) 18,543,575 N/A - 18,543,575
San Diego County Pool 14,948,000 AAA 14,948,000 -
Money Market Funds 4,778,918 AAA - 4,778,918
Total $ 109,425,070 81,163,327$ 28,261,743$
Rating as of Year End
33
Notes to Financial Statements
Year Ended June 30, 2023
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, 2023:
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution,
the District 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, the District 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
District. 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, 2023, $2,199,718 of
the District’s deposits with financial institutions in excess of federal depository insurance limits, were held
in collateralized accounts.
Local Agency Investment Fund (LAIF)
The District is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the State of California.
The fair value of the District’s investment in this pool is reported in the accompanying financial statements
at amounts based upon District’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio
(in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the
accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Reported
Issuer Investment Type Amount
Federal Home Loan Bank U.S. Government Sponsored Entities 34,611,320$
Federal National Mortgage Assoc. U.S. Government Sponsored Entities 11,423,540
Federal Farm Credit Bank U.S. Government Sponsored Entities 10,788,950
Federal Home Loan Mortgage U.S. Government Sponsored Entities 9,391,517
34
Notes to Financial Statements
Year Ended June 30, 2023
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, 2023 was 3.01%. The estimated amortized cost and fair value of the LAIF pool at
June 30, 2023 was $18,543,575.
San Diego County Pooled Fund
The San Diego County Pooled Investment Fund (SDCPIF) is a pooled investment fund program governed
by the County of San Diego Board of Supervisors and administered by the County of San Diego Treasurer
and Tax Collector. Investments in SDCPIF are highly liquid as deposits and withdrawals can be made at
any time without penalty, determined on an amortized cash basis, the same as the fair value of the District’s
position in the pool.
The County of San Diego’s bank deposits are either federally insured or collateralized in accordance with
the California Government Code. Pool detail is included in the County of San Diego Comprehensive Annual
Financial Report (“Annual Report”). Copies of the Annual Report may be obtained from the County of San
Diego Auditor-Controller’s Office – 1600 Pacific Coast Highway, San Diego California 92101.
Cash and investments are restricted for the cost of the following District projects and debt service:
Cash and Cash Equivalents:
New Water Supply 3,046,231$
Cash and Cash Equivalents:
Debt Service:
Water Revenue Bond Series 2010A 10,452$
Water Revenue Bond Series 2010B 21,680
32,132$
35
Notes to Financial Statements
Year Ended June 30, 2023
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 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 948,202$
Water Revenue Bond Series 2010B 2,496,175
3,444,377$
36
Notes to Financial Statements
Year Ended June 30, 2023
3) FAIR VALUE MEASUREMENTS - Continued
Fair value of assets measured on a recurring basis at June 30, 2023 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.
37
Notes to Financial Statements
Year Ended June 30, 2023
4) CAPITAL ASSETS
The following is a summary of changes in Capital Assets for the year ended June 30, 2023:
Depreciation expense for the year ended June 30, 2023 was $17,880,335.
Beginning Ending
Balance Additions Deletions Balance
Capital Assets, Not Depreciated:
Land $ 14,423,773 $ 55,800 $ -$ 14,479,573
Construction in Progress 7,306,003 11,547,328 (7,111,883) 11,741,448
Total Capital Assets, Not Depreciated 21,729,776 11,603,128 (7,111,883) 26,221,021
Capital Assets, Being Depreciated:
Infrastructure 712,401,304 9,071,961 (316,856) 721,156,409
Field Equipment 8,109,764 286,247 (59,010) 8,337,001
Buildings 19,618,254 195,140 (84,091) 19,729,303
Transportation Equipment 3,739,832 357,857 (181,536) 3,916,153
Communication Equipment 2,511,818 223,867 (132,830) 2,602,855
Office Equipment 8,101,720 10,146 (47,491) 8,064,375
Right to Use Assets 738,501 123,039 -861,540
Total Capital Assets, Being Depreciated 755,221,193 10,268,257 (821,814) 764,667,636
Less Accumulated Depreciation:
Infrastructure 300,713,023 16,326,675 (184,603) 316,855,095
Field Equipment 6,594,349 274,193 (59,010) 6,809,532
Buildings 10,507,211 550,471 (42,103) 11,015,579
Transportation Equipment 2,740,153 280,505 (181,536) 2,839,122
Communication Equipment 2,289,429 92,724 (132,830) 2,249,323
Office Equipment 7,323,961 282,751 (46,664) 7,560,048
Right to Use Assets 35,167 73,016 -108,183
Total Accumulated Depreciation 330,203,293 17,880,335 (646,746) 347,436,882
Total Capital Assets, Being Depreciated, Net 425,017,900 (7,612,078) (175,068) 417,230,754
Total Capital Assets, Net $ 446,747,676 $ 3,991,050 $ (7,286,951) $ 443,451,775
38
Notes to Financial Statements
Year Ended June 30, 2023
5) LONG-TERM DEBT
Long-term liabilities for the year ended June 30, 2023 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 $209,884. At June 30, 2023, the bonds were paid
off.
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
General Obligation Bonds:
Improvement District No. 27 – 2009 720,000$ -$ (720,000)$ -$ -$
Unamortized Bond Premium 2,726 - (2,726) - -
Net General Obligation Bonds 722,726 - (722,726) - -
Revenue Bonds:
2010 Water Revenue Bonds Series A 3,705,000 - (1,175,000) 2,530,000 1,235,000
2010 Water Revenue Bonds Series B 36,355,000 - - 36,355,000 -
2013 Water Revenue Refunding Bonds 1,640,000 - (805,000) 835,000 835,000
2016 Water Revenue Refunding Bonds 26,655,000 - (1,285,000) 25,370,000 1,350,000
2018 Water Revenue Bonds 28,510,000 - (1,455,000) 27,055,000 1,650,000
2019 Wastewater Revenue Bonds 3,055,000 - (70,000) 2,985,000 75,000
2010 Series A Unamortized Premium 167,404 - (74,402) 93,002 -
2013 Bonds Unamortized Premium 112,111 - (96,096) 16,015 -
2016 Bonds Unamortized Premium 2,529,762 - (178,572) 2,351,190 -
2018 Bonds Unamortized Premium 2,310,303 - (109,149) 2,201,154 -
2019 Bonds Unamortized Discount (12,527) - 461 (12,066) -
Net Revenue Bonds 105,027,053 - (5,247,758) 99,779,295 5,145,000
Lease Payable 723,401 - (15,674) 707,727 17,188
Subscription-Based IT Payable - 123,039 (37,691) 85,348 49,872
Total Long-Term Liabilities 106,473,180$ 123,039$ (6,023,849)$ 100,572,370$ 5,212,060$
39
Notes to Financial Statements
Year Ended June 30, 2023
5) LONG-TERM DEBT – Continued
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, 2023 was $74,402. The amortization is included in interest expense. The
unamortized premium at June 30, 2023 is $93,002.
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, 2023.
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.
40
Notes to Financial Statements
Year Ended June 30, 2023
5) LONG-TERM DEBT – Continued
Water Revenue Bonds – Continued
The original issue premium is being amortized over the 11-year life of the Series 2013 bonds. Amortization
for the year ending June 30, 2023 was $96,096. The amortization is included in interest expense. The
unamortized premium at June 30, 2023 is $16,015.
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, 2023 was $178,572. The amortization is included in interest expense. The
unamortized premium at June 30, 2023 is $2,351,190.
In November 2018, Water Revenue Bonds were issued by the Otay Water District Financing Authority 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.
The original issue premium is being amortized over the 25-year life of the Series 2018 bonds. Amortization
for the year ending June 30, 2023 was $109,149. The amortization expense is included in interest expense.
The unamortized premium at June 30, 2023 is $2,201,154.
41
Notes to Financial Statements
Year Ended June 30, 2023
5) LONG-TERM DEBT – Continued
Water Revenue Bonds – Continued
The total amount outstanding at June 30, 2023 and aggregate maturities of the revenue bonds for the fiscal
years subsequent to June 30, 2023, are as follows:
For the Year
Ended June 30, Principal Interest Principal Interest Principal Interest
2024 1,235,000$ 98,863$ -$ 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 - - 1,545,000 2,143,093
2029-2033 - - 9,320,000 9,049,258 - -
2034-2038 - - 12,795,000 5,459,732 - -
2039-2043 - - 9,880,000 1,002,335 - -
2,530,000$ 132,857$ 36,355,000$ 26,965,088$ 835,000$ 16,700$
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
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 1,645,000 584,931 1,030,000 805,538
2029-2033 9,315,000 1,917,681 5,950,000 3,207,338
2034-2038 8,575,000 498,078 6,715,000 1,855,625
2039-2043 - - 5,445,000 655,894
2044 - - 800,000 16,000
25,370,000$ 6,073,889$ 27,055,000$ 10,599,172$
2016 Water Revenue 2018 Water Revenue
Refunding Bonds Refunding Bonds
42
Notes to Financial Statements
Year Ended June 30, 2023
5) LONG-TERM DEBT – Continued
Wastewater Revenue Bonds
In December 2019, Wastewater Revenue Bonds were issued by the Otay Water District Financing Authority
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, 2023 was $461. The amortization expense is included in interest expense. The
unamortized discount at June 30, 2023 is $12,066.
The 2019 Wastewater Revenue Bonds contains various covenants and restrictions, principally that the
District fix, prescribe, revise and collect rates, fees and charges for the Wastewater System which will at
least be sufficient to yield, during each fiscal year, net revenues equal to one hundred fifteen percent
(115%) of the debt service for such fiscal year. The District was in compliance with these rate covenants
for the fiscal year ended June 30, 2023.
Future debt service requirements for the bonds are as follows:
For the Year
Ended June 30, Principal Interest
2024 75,000$ 87,291$
2025 75,000 85,416
2026 80,000 83,091
2027 80,000 80,691
2028 85,000 78,216
2029-2033 455,000 352,234
2034-2038 520,000 285,497
2039-2043 600,000 204,422
2044-2048 700,000 105,469
2049-2051 315,000 9,922
2,985,000$ 1,372,249$
2019 Wastewater
Revenue Bonds
43
Notes to Financial Statements
Year Ended June 30, 2023
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. The total principal and interest remaining on the water revenue bonds and
water revenue refunding bonds is $135,932,706 payable through fiscal year 2044. For June 30, 2023,
principal and interest paid by the water sales revenues were $4,720,000 and $4,745,600 respectively.
The District has pledged a portion of future wastewater sales revenues to repay its Wastewater Revenue
Bonds. The total principal and interest remaining on the wastewater revenue bonds is $4,357,249 payable
through fiscal year 2050. For June 30, 2023, principal and interest paid by the wastewater sales revenues
were $70,000 and $88,741, 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, 2023, the value of the lease payable
is $707,727. Future lease payable requirements are as follows:
For the Year
Ended June 30,Principal Interest
2024 17,188$ 9,728$
2025 18,781 9,479
2026 20,469 9,207
2027 22,253 8,911
2028 24,134 8,590
2029-2033 152,686 37,142
2034-2038 217,905 24,399
2038-2042 234,311 6,914
707,727$ 114,370$
44
Notes to Financial Statements
Year Ended June 30, 2023
5) LONG-TERM DEBT – Continued
Subscription-Based Information Technology Arrangements
Fracta AI-Based Condition Assessment Software
On July 20, 2022, the District entered into a 36-month subscription for the use of Fracta AI-Based Condition
Assessment Software. An initial subscription liability was recorded in the amount of $35,494. As of June
30, 2023, the value of the subscription liability is $23,500. The District is required to make annual fixed
payments of $11,995. The subscription has an interest rate of 1.39%. The value of the right to use asset as
of June 30, 2023 is $35,494 with accumulated amortization of $11,831 is included in note 4 with right to
use assets.
Samsara Networks, Inc.
On July 5, 2022, the District entered into a 36-month subscription for the use of GPS fleet management
system software. An initial subscription liability was recorded in the amount of $70,934. As of June 30,
2023, the value of the subscription liability is $46,962. The District is required to make annual fixed
payments of $23,972. The subscription has an interest rate of 1.39%. The value of the right to use asset
as of June 30, 2023 of $70,934 with accumulated amortization of $23,645 is included in note 4 with right
to use assets.
Drone Deploy
On April 30, 2023, the District entered into a 14-month subscription for the use of Drone Deploy software.
An initial subscription liability was recorded in the amount of $16,611. As of June 30, 2023, the value of the
subscription liability is $14,887. The District is required to make annual fixed payments of $1,743 for fiscal
year 2022-23, and $14,999 for fiscal year 2023-24. The subscription has an interest rate of 1.39%. The value
of the right to use asset as of June 30, 2023 of $16,611 with accumulated amortization of $2,373 is included
in note 4 with right to use assets.
For the Year
Ended June 30, Principal Interest
2024 49,872$ 1,092$
2025 35,476 493
85,348$ 1,585$
45
Notes to Financial Statements
Year Ended June 30, 2023
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, 2023:
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 3,076,209$
Replacement Reserve 62,800,637
Designated Insurance 889,183
Designated New Supply Fund 6,132
Undesignated 16,552,400
Total $ 83,324,561
46
Notes to Financial Statements
Year Ended June 30, 2023
7) DEFINED BENEFIT PENSION PLAN – Continued
Benefits Provided
The Plans’ provisions and benefits in effect at June 30, 2023 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
2023 8.00% 7.00%
Required Employer Contribution Rates
2023 22.59% 22.59%
Employees Covered
The following employees were covered by the benefit terms for the Plan:
Inactive Employees or Beneficiaries Currently Receiving Benefits 215
Inactive Employees Entitled to But Not Yet Receiving Benefits 122
Active Employees 134
Total 471
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. The total plan contributions for the
Plan are determined through CalPERS’ annual actuarial valuation process. 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, 2023
7) DEFINED BENEFIT PENSION PLAN – Continued
The employer is required to contribute the difference between the actuarially determined rate and
the contribution rate of employees. Employer contribution rates may change if plan contracts are
amended.
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,
2022 rolled forward to June 30, 2023 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, 2022 actuarial valuations were determined using the
following actuarial assumptions:
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Salaries Increases Varies by entry age and service
Mortality Rate Table Derived using CalPERS
membership data for all funds(1)
Post Retirement Benefit Increase See Footnote(2)
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of
mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-
retirement and Post-retirement mortality rates include generational mortality improvement using
80% of Scale MP-2020 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 from
November 2021 that can be found on the CalPERS website.
(2) The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on
purchasing power applies, 2.30% thereafter.
48
Notes to Financial Statements
Year Ended June 30, 2023
7) DEFINED BENEFIT PENSION PLAN – Continued
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. 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 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. Using historical returns of all the funds’ asset classes, expected compound
(geometric) returns were calculated over the next 20 years using a building block approach. The
expected rate of return was then adjusted to account for assumed administrative expenses of 10
Basis points. The expected real rates of return by asset class are as follows:
(a) An expected inflation of 2.30% used for this period.
(b) Figures are based on the 2021 Asset Liability Management study.
Assumed
Asset Class(a)Asset Allocation Real Return(b)
Global Equity - Cap-weighted 30.00%4.54%
Global Equity - Non-Cap-weighted 12.00 3.84
Private Equity 13.00 7.28
Treasury 5.00 0.27
Mortgage-backed Securities 5.00 0.50
Investment Grade Corporates 10.00 1.56
High Yield 5.00 2.27
Emerging Market Debt 5.00 2.48
Private Debt 5.00 3.57
Real Assets 15.00 3.21
Leverage (5.00) (0.59)
49
Notes to Financial Statements
Year Ended June 30, 2023
7) DEFINED BENEFIT PENSION PLAN – Continued
C) Changes in the Net Pension Liability (Asset)
The changes in the Net Pension Liability (Asset) for the Plan for the year ending June 30, 2023:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
Beginning Balance 154,871,502$ 154,591,204$ 280,298$
Changes in the Year:
Service Cost 2,994,291 - 2,994,291
Interest on the Total Pension Liability 10,864,205 - 10,864,205
Changes in Benefit Terms - - -
Changes in Assumptions 4,984,447 - 4,984,447
Difference Between Expected and Actual Experience 174,717 - 174,717
Net Plan to Plan Resource Movement - - -
Contributions - Employer 3,928,187 (3,928,187)
Contributions - Employees 1,099,592 (1,099,592)
Net Investment Income (11,584,615) 11,584,615
Benefit Payments, Including Refunds of Employee Contributions (8,151,116) (8,151,116) -
Administrative Expense - (96,301) 96,301
Other Miscellaneous Income (Expense)- - -
Net Changes 10,866,544 (14,804,253) 25,670,797
Ending Balance 165,738,046$ 139,786,951$ 25,951,095$
Increase ( Decrease)
50
Notes to Financial Statements
Year Ended June 30, 2023
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, 2023, the District recognized pension expense of $5,275,049. At June 30,
2023, the District reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following services:
1% Decrease 5.90%
Net Pension Liability 47,137,614$
Current Discount Rate 6.90%
Net Pension Liability 25,951,095$
1% Increase 7.90%
Net Pension Liability/(Asset)8,293,919$
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 5,477,698$ -$
Changes of assumptions 3,204,287 -
Differences between actual and expected experience 313,868 -
Net difference between projected and actual earnings
on pension plan investments 6,955,221 -
Total 15,951,074$ -$
51
Notes to Financial Statements
Year Ended June 30, 2023
7) DEFINED BENEFIT PENSION PLAN – Continued
D) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - Continued
For fiscal year 2023, $5,477,698 reported as deferred outflows of resources related to contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in
the fiscal year ended June 30, 2024. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net
position are recognized in pension expense systematically over time. The first amortized amounts
are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are
categorized as deferred outflows and deferred inflows of resources related to pensions and are to
be recognized in future pension expense. The amortization period differs depending on the source
of the gain or loss:
Net difference between projected and actual
earnings on pension plan investments
5-year straight-line amortization
All other amounts
Straight-line amortization over the expected
average remaining service lifetime (EARSL) of
all members that are provided with
benefits (active, inactive, and retired) as of the
beginning of the measurement period
Fiscal Deferred
Year Ended Outflow/(Inflows)
June 30 of Resources
2024 3,039,724$
2025 2,506,829
2026 500,203
2027 4,426,620
2028 -
Thereafter -
52
Notes to Financial Statements
Year Ended June 30, 2023
7) DEFINED BENEFIT PENSION PLAN – Continued
E) Payable to the Pension Plan
At June 30, 2023, the District reported a payable of $122,701 for the outstanding amount of
contributions to the pension plan required for the year ended June 30, 2023. 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.
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.
53
Notes to Financial Statements
Year Ended June 30, 2023
8) OTHER POST EMPLOYMENT BENEFITS (OPEB) - Continued
Employees Covered
As of June 30, 2021 actuarial valuation, 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, 2023, the District made cash contributions to the trust of $1,265,368 and had an estimated
implied subsidy of $129,513, resulting in total payments of $1,394,881.
Net OPEB Liability
The District’s net OPEB liability was measured as of June 30, 2022 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.
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, 2023
8) OTHER POST EMPLOYMENT BENEFITS (OPEB) - Continued
Net OPEB Liability (Continued)
(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.
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 valuation:
Discount Rate
The discount rate used to measure the total OPEB liability was 6.75% for the June 30, 2022 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 Real
Asset 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%
55
Notes to Financial Statements
Year Ended June 30, 2023
8) OTHER POST EMPLOYMENT BENEFITS (OPEB) - Continued
Changes in the OPEB Liability (Asset)
The changes in the net OPEB liability (asset) for the Plan for the year ending June 30, 2023:
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, 2022:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability (Asset)
Beginning Balance 32,530,042$ 35,535,079$ (3,005,037)$
Changes in the year:
Service Cost 991,108 - 991,108
Interest on TOL/Return on FNP 2,189,619 (4,739,093) 6,928,712
Difference Between Expected and Actual Experience 254,888 - 254,888
Changes of Assumptions - - -
Contributions - Employer 127,444 (127,444)
Benefit Payments (1,428,491) (1,428,491) -
Administrative Expenses - (9,034) 9,034
Net Changes 2,007,124 (6,049,174) 8,056,298
Ending Balance 34,537,166$ 29,485,905$ 5,051,261$
Increase ( Decrease)
Current
1% Decrease Discount Rate 1% Increase
2023 Net OPEB Liability (Asset)
(2022 Measurement Date)9,858,523$ 5,051,261$ 1,087,142$
56
Notes to Financial Statements
Year Ended June 30, 2023
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, 2022:
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)
2023 Net OPEB Liability (Asset)
(2022 Measurement Date)230,573$ 5,051,261$ 11,042,643$
57
Notes to Financial Statements
Year Ended June 30, 2023
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, 2023, the District recognized OPEB credit of ($400,921). As of the fiscal
year ended June 30, 2023, the District reported deferred outflows and inflows of resources related to
OPEB from the following sources:
For fiscal year 2023, $1,394,881 reported as deferred outflows of resources related to contributions
subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the
fiscal year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred
inflows of resources related to pensions will be recognized as pension expense as follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to measurement date 1,394,881$ -$
Differences between expected and actual experience 2,769,724 (405,822)
Changes in assumptions - (1,168,316)
Net difference between projected and actual earnings
on OPEB plan investments 2,514,626 -
Total 6,679,231$ (1,574,138)$
Fiscal Deferred
Year Ended Outflows/(Inflows)
June 30, of Resources
2024 307,081$
2025 749,881
2026 566,721
2027 1,752,895
2028 303,651
Thereafter 29,983
58
Notes to Financial Statements
Year Ended June 30, 2023
9) COMMITMENTS AND CONTINGENCIES
Construction Commitments
The District has commitments related to capital projects under construction with an estimated cost to
complete of $8,239,534 at June 30, 2023.
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.
59
Notes to Financial Statements
Year Ended June 30, 2023
9) COMMITMENTS AND CONTINGENCIES – Continued
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
filed an appeal to the Courts decision and believes a favorable outcome is reasonable and as such a
liability has not been recorded.
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, 2023, 1,750 EDUs had been relinquished and refunded, 15,100
EDUs had been connected, and 1,017 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, 2023, 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. Beginning in July 2020, the District began participation as a member
in 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.
60
Notes to Financial Statements
Year Ended June 30, 2023
10) RISK MANAGEMENT - Continued
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.
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
$55 million subject to the following deductibles:
$50,000 per occurrence for third party general liability property damage;
$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, 2022.
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 $25,000 deductible per occurrence, effective July 1, 2022.
Boiler and Machinery: Replacement costs up to $100 million per occurrence, subject to a $25,000
deductible, effective July 1, 2022.
Comprehensive and Collision: Deductibles of $1,000, as elected; ACV limits; fully self-funded by ACWA,
effective July 1, 2022.
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, 2022.
Cyber Coverage: $5,000,000 Annual Program-Wide Aggregate Limit of Liability and $2,000,000 maximum
for each Insured/Member for Information Security & Privacy Liability. The policy includes a $50,000
deductible per claim, effective July 1, 2022.
61
Notes to Financial Statements
Year Ended June 30, 2023
11) LEASES RECEIVABLE
Leases Receivable
The District has entered into 32 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, 2023, the lease receivable is $47,232,748 and deferred inflows of
resources is $45,442,359. The District recognized $1,508,382 of lease revenue during the fiscal year.
12) SEGMENT INFORMATION
The District has issued Water and Wastewater Revenue Bonds in the previous fiscal years to finance
certain capital improvements. While water and wastewater services are accounted for jointly in these
financial statements, the investors in the Water Revenue Bonds rely solely on the revenues of the water
services for repayment and the Wastewater Revenue Bonds solely on the revenues of the wastewater
services for repayment.
Summary financial information for the water and wastewater services is presented for June 30, 2023:
62
Notes to Financial Statements
Year Ended June 30, 2023
12) SEGMENT INFORMATION – Continued
Water Wastewater
Services Services Total
Assets
Cash and Investments 104,214,333$ 5,842,965$ 110,057,298$
Accounts Receivable, Net 14,103,005 210,659 14,313,664
Other Current Assets 4,444,567 267,585 4,712,152
Leases Receivable 47,232,748 - 47,232,748
Capital Assets 415,372,735 28,079,040 443,451,775
Total Assets 585,367,388 34,400,249 619,767,637
Deferred Outflows of Resources
Deferred Actuarial Pension Costs 15,369,944 581,130 15,951,074
Deferred Actuarial OPEB Costs 6,394,398 284,833 6,679,231
Total Deferred Outflows of Resources 21,764,342 865,963 22,630,305
Liabilities
Accounts Payable 14,875,947 109,271 14,985,218
Other Miscellaneous Liabilities 5,872,516 958,970 6,831,486
Other Current Liabilities 12,254,231 104,347 12,358,578
Revenue Bonds 91,736,361 2,897,934 94,634,295
Lease Payable 690,539 - 690,539
Subscription-Based IT Payable 35,476 - 35,476
Net Pension Liability 25,109,322 841,773 25,951,095
Net OPEB Liability 4,834,231 217,030 5,051,261
Other Non-current Liabilities 3,768,468 - 3,768,468
Total Liabilities 159,177,091 5,129,325 164,306,416
Deferred Inflows of Resources
Deferred Actuarial Pension Costs 21,458 (21,458) -
Deferred Actuarial OPEB Costs 1,517,621 56,517 1,574,138
Deferred Inflows from Leases 45,442,359 - 45,442,359
Total Deferred Inflows of Resources 46,981,438 35,059 47,016,497
Net Position
Net Investment in Capital Assets 316,121,622 25,106,106 341,227,728
Restricted for Debt Service 3,476,509 - 3,476,509
Restricted for Capital Assets 3,046,231 - 3,046,231
Unrestricted 78,328,839 4,995,722 83,324,561
Total Net Position 400,973,201$ 30,101,828$ 431,075,029$
June 30, 2023
Condensed Statement of Net Position
63
Notes to Financial Statements
Year Ended June 30, 2023
12) SEGMENT INFORMATION – Continued
Water Wastewater
Services Services Total
Operating Revenues
Water Sales 99,901,174$ -$ 99,901,174$
Wastewater Revenue - 3,315,754 3,315,754
Connection and Other Fees 2,959,693 15,802 2,975,495
Total Operating Revenues 102,860,867 3,331,556 106,192,423
Operating Expenses
Cost of Water Sales 71,342,741 - 71,342,741
Wastewater - 2,497,316 2,497,316
Administrative and General 27,073,523 - 27,073,523
Depreciation 16,801,306 1,079,029 17,880,335
Total Operating Expenses 115,217,570 3,576,345 118,793,915
Operating Income (Loss)(12,356,703) (244,789) (12,601,492)
Non-Operating Revenues (Expenses)
Investment Earnings (Losses)4,032,973 55,358 4,088,331
Taxes and Assessments 5,618,253 - 5,618,253
Availability Charges 659,061 51,893 710,954
Gain (Loss) on Sale of Capital Assets (111,029) - (111,029)
Rents and Leases 2,181,634 - 2,181,634
Miscellaneous Revenues 1,952,540 8,628 1,961,168
Donations (92,000) - (92,000)
Interest Expense (4,221,662) (88,690) (4,310,352)
Miscellaneous Expenses (274,285) (56,136) (330,421)
Total Non-operating Revenues (Expenses)9,745,485 (28,947) 9,716,538
Income (Loss) Before Capital Contributions
and Transfers (2,611,218) (273,736) (2,884,954)
Capital Contributions 9,195,101 42,095 9,237,196
Change in Net Position 6,583,883 (231,641) 6,352,242
Total Net Position, Beginning 394,389,318 30,333,469 424,722,787
Total Net Position, Ending 400,973,201$ 30,101,828$ 431,075,029$
Condensed Statement of Revenues, Expenses and Changes in Net Pension
Year Ended June 30, 2023
64
Notes to Financial Statements
Year Ended June 30, 2023
12) SEGMENT INFORMATION – Continued
13) IMPLEMENTATION OF NEW ACCOUNTING STANDARDS
As described in Note 5 to the financial statements, the District changed accounting policies related to
subscription-based information technology arrangements by adopting Statement of Governmental
Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology
Arrangements, in the fiscal year 2023. The District did not restate the prior year balances as it was not
practical to do so.
Water Wastewater
Services Services Total
Net Cash Provided/(Used) by:
Operating Activities 7,175,806$ 1,127,587$ 8,303,393$
Non-capital and Related Financing Activities 6,013,539 51,893 6,065,432
Capital and Related Financing Activities (12,590,597) (633,489) (13,224,086)
Investing Activities (45,122,081) 44,357 (45,077,724)
Net Increase(Decrease) in
Cash and Cash Equivalents (44,523,333) 590,348 (43,932,985)
Cash and Cash Equivalents, Beginning 85,512,139 5,252,617 90,764,756
Cash and Cash Equivalents, Ending 40,988,806$ 5,842,965$ 46,831,771$
For the Year Ended June 30, 2023
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 2022 2021 2020 2019 2018 2017
Total OPEB Liability
Service Cost 991,108$ 755,756$ 735,529$ 757,725$ 735,655$ 687,528$
Interest on the Total OPEB Liability 2,189,619 2,077,446 1,915,358 1,970,613 1,864,967 1,764,343
Actual and Expected Experience Difference 254,888 2,595,855 1,151,927 (2,029,118) - -
Changes in Assumptions - (1,557,334) - (345,110) - -
Benefit Payment (1,428,491) (1,201,678) (1,120,146) (1,141,344) (1,085,586) (1,039,420)
Net Change in Total OPEB Liability 2,007,124 2,670,045 2,682,668 (787,234) 1,515,036 1,412,451
Total OPEB Liability - Beginning 32,530,042 29,859,997 27,177,329 27,964,563 26,449,527 25,037,076
Total OPEB Liability - Ending (a)34,537,166$ 32,530,042$ 29,859,997$ 27,177,329$ 27,964,563$ 26,449,527$
Plan Fiduciary Net Position
Contributions - Employer 127,444$ 807,867$ 1,011,358$ 2,206,363$ 2,202,004$ 2,284,420$
Net Investment Income (4,739,093) 7,880,863 983,790 1,595,092 1,734,626 2,011,985
Benefit Payments (1,428,491) (1,201,678) (1,120,146) (1,141,344) (1,085,586) (1,039,420)
Administrative Expenses (9,034) (10,811) (13,514) (12,299) (11,784) (10,167)
Net Change in Plan Fiduciary Net Position (6,049,174) 7,476,241 861,488 2,647,812 2,839,260 3,246,818
Plan Fiduciary Net Position - Beginning 35,535,079 28,058,838 27,197,350 24,549,538 21,739,035 18,492,217
Plan Fiduciary Net Position - Ending (b)29,485,905$ 35,535,079$ 28,058,838$ 27,197,350$ 24,578,295$ 21,739,035$
Net OPEB Liability/(Asset) - Ending (a)-(b)5,051,261$ (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 85.37%109.24%94.00%100.10%87.80%82.20%
Covered-Employee Payroll 14,148,052$ 14,006,918$ 13,538,959$ 13,176,602$ 12,677,000$ 12,513,000$
Net OPEB Liability/(Asset) as a Percentage of
Covered-Employee Payroll 35.70%-21.45%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) - 14,006,918 5.77%
2022 - - - 14,148,052 0.00%
2023 - (1,394,881) (1,394,881) 14,054,264 9.92%
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 2023 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 2022 2021 2020 2019
Total Pension Liability
Service Cost 2,994,291$ 2,662,845$ 2,623,208$ 2,586,911$
Interest 10,864,205 10,489,284 10,043,778 9,638,674
Changes in Assumptions 4,984,447 - - -
Difference Between Expected and actual Experience 174,717 705,426 260,337 1,183,213
Benefit Payments, including Refunds of
Employee Contributions (8,151,116) (7,304,947) (7,017,816) (6,658,719)
Net Change in Total Pension Liability 10,866,544 6,552,608 5,909,507 6,750,079
Total Pension Liability - Beginning 154,871,502 148,318,894 142,409,387 135,659,308
Total Pension Liability - Ending (a)165,738,046$ 154,871,502$ 148,318,894$ 142,409,387$
Plan Fiduciary Net Position
Net Plan to Plan Resource Movement -$ -$ -$ -$
Contributions - Employer 3,928,187 3,945,147 2,437,119 36,706,983
Contributions - Employee 1,099,592 1,095,898 1,055,769 1,019,255
Net Investment Income (11,584,615) 28,707,870 6,185,108 7,516,686
Benefit Payments, Including Refunds of
Employee Contributions (8,151,116) (7,304,947) (7,017,816) (6,658,719)
Administrative Expenses (96,301) (128,139) (177,337) (62,278)
Other Changes in Fiduciary Net Position - - - 203
Net Change in Plan Fiduciary Net Position (14,804,253) 26,315,829 2,482,843 38,522,130
Plan Fiduciary Net Position - Beginning 154,591,204 128,275,375 125,792,532 87,270,402
Plan Fiduciary Net Position - Ending (b)139,786,951$ 154,591,204$ 128,275,375$ 125,792,532$
Plan Net Pension Liability/(Asset) - Ending (a)-(b)25,951,095$ 280,298$ 20,043,519$ 16,616,855$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 84.34%99.82%86.49%88.33%
Covered Payroll 14,148,052$ 13,768,586$ 13,383,715$ 12,892,655$
Plan Net Pension Liability/(Asset) as a
Percentage of Covered Payroll 183.43%2.04%149.76%128.89%
(1)Measurement period 2021-22 (fiscal year 2022-2023) was the ninth year of implementation; therefore, only nine years are shown.
(2)Historical information is required only for measurement periods for which GASB 68 is applicable. Future years’ information will be
displayed up to 10 years as information becomes available.
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 2018 2017 2016 2015 2014
Total Pension Liability
Service Cost 2,528,271$ 2,556,902$ 2,298,617$ 2,250,860$ 2,330,709$
Interest 9,168,092 8,836,284 8,575,275 8,229,312 7,907,915
Changes in Assumptions (1,312,634) 7,308,486 - (1,996,819) -
Difference Between Expected and actual Experience 461,917 (1,208,593) (613,440) (981,200) -
Benefit Payments, including Refunds of
Employee Contributions (5,995,949) (5,779,040) (5,448,218) (5,288,251) (4,885,406)
Net Change in Total Pension Liability 4,849,697 11,714,039 4,812,234 2,213,902 5,353,218
Total Pension Liability - Beginning 130,809,611 119,095,572 114,283,338 112,069,436 106,716,218
Total Pension Liability - Ending (a)135,659,308$ 130,809,611$ 119,095,572$ 114,283,338$ 112,069,436$
Plan Fiduciary Net Position
Net Plan to Plan Resource Movement (203)$ -$ -$ -$ -$
Contributions - Employer 4,441,517 4,105,810 3,819,770 3,557,098 3,137,174
Contributions - Employee 1,015,008 1,014,329 1,010,337 1,007,023 1,074,954
Net Investment Income 6,949,676 8,149,097 369,214 1,601,760 10,874,999
Benefit Payments, Including Refunds of
Employee Contributions (5,995,949) (5,779,040) (5,448,218) (5,288,251) (4,885,406)
Administrative Expenses (126,575) (109,029) (45,185) (83,511) -
Other Changes in Fiduciary Net Position (240,367) - - - -
Net Change in Plan Fiduciary Net Position 6,043,107 7,381,167 (294,082) 794,119 10,201,721
Plan Fiduciary Net Position - Beginning 81,227,295 73,846,128 74,140,210 73,346,091 63,144,370
Plan Fiduciary Net Position - Ending (b)87,270,402$ 81,227,295$ 73,846,128$ 74,140,210$ 73,346,091$
Plan Net Pension Liability/(Asset) - Ending (a)-(b)48,388,906$ 49,582,316$ 45,249,444$ 40,143,128$ 38,723,345$
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 64.33%62.10%62.01%64.87%65.45%
Covered Payroll 12,969,485$ 12,829,415$ 12,767,963$ 12,451,513$ 12,276,578$
Plan Net Pension Liability/(Asset) as a
Percentage of Covered Payroll 373.10%386.47%354.40%322.40%315.42%
(1)Measurement period 2021-22 (fiscal year 2022-2023) was the ninth year of implementation; therefore, only nine years are shown.
(2)Historical information is required only for measurement periods for which GASB 68 is applicable. Future years’ information will be
displayed up to 10 years as information becomes available.
72
Schedule of Plan Contributions
for Fiscal Year Ended June 30,
Last Ten Fiscal Years (1)
Actuarially
Determined Contributions in Contribution Contributions as a
Fiscal Contribution Relation to the Deficiency Covered Percentage of
Year (ADC)(2)ADC(2)(Excess)Payroll(3)Covered 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%
2023 3,163,698 (5,477,698) (2,314,000) 14,539,529 37.67%
(1)Historical information is required only for measurement periods for which GASB 68 is applicable. Future years’ information
will be displayed up to 10 years as information becomes available.
Notes to Schedule:
Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details see June 30, 2020 Funding Valuation Report
Asset Valuation Method Equal to the market value of assets. Asset values includes accounts receivable
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
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23
were from the June 30, 2020 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
(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 assumption for fiscal years 2015-2017.
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 94
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 100
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 102
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.
75
Fiscal Net Investment Total
Year in Capital Assets Restricted Unrestricted Net Position
2023 341,227,728$ 6,522,740$ 83,324,561$ 431,075,029$
2022 340,274,496 9,712,242 74,736,049 424,722,787
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
(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 Transitions
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
$500,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Net Position, in Thousands ($)
76
Water & Certificate of Water Revenue Deferred Net
Fiscal Capital Assets Wastewater Participation Refunding GO Capital Related Unamortized Unamortized Amount on Investment in
Year Net Revenue Bonds (COPS) Bonds Bonds Payable (1)Premium Discount Refunding Capital Assets
2023 443,451,773$ (68,925,000)$ -$ (26,205,000)$ -$ (2,444,750)$ (4,661,361)$ 12,066$ -$ 341,227,728$
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
(1) Includes other capital borrowing and liabilities, such as lease and SBITA payable and accounts and retainage payable for capital purposes.
Source: Otay Water District
Net Investment in Capital Assets - Last Ten Fiscal Years
$330,000
$335,000
$340,000
$345,000
$350,000
$355,000
$360,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Net Investment in Capital Assets, in Thousands ($)
77
Total Income/
Operating Non-Operating (Loss) Before Changes
Fiscal Operating Operating Income/Revenues/Capital Capital in Net
Year Revenues Expenses (Loss)(Expenses)Contributions Contributions Position
2023 106,192,423$ 118,793,915$ (12,601,492)$ 9,716,538$ (2,884,954)$ 9,237,196$ 6,352,242$
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)
Source: Otay Water District
Changes in Net Position - Last Ten Fiscal Years
-$5,000
$0
$5,000
$10,000
$15,000
$20,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Changes in Net Position, in Thousands ($)
78
Fiscal Connection and Percent
Year Water Sales Wastewater Other Fees Total Change
2023 99,901,174$ 3,315,754$ 2,975,495$ 106,192,423$ -2.4%
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%
Source: Otay Water District
Operating Revenues by Source - Last Ten Fiscal Years
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Operating Revenues, in Thousands ($)
79
Fiscal Cost of Administrative Percent
Year Water Sales Wastewater and General Depreciation Total Change
2023 71,342,741$ 2,497,316$ 27,073,523$ 17,880,335$ 118,793,915$ 8.8%
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%
Source: Otay Water District
Operating Expenses by Function - Last Ten Fiscal Years
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Operating Expenses, in Thousands ($)
Cost of Water Sales Wastewater Administrative and General Depreciation
80
Fiscal Investment Taxes and Availability Rents and Percent
Year Earnings (Losses) Assessments Charges Leases Miscellaneous Total Change
2023 4,088,331$ 5,618,253$ 710,954$ 2,181,634$ 1,961,168$ 14,560,340$ 21.7%
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%
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
$16,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Non-Operating Revenues, in Thousands ($)
81
Fiscal Interest Percent
Year Donations (1)Expense Miscellaneous Total Change
2023 92,000$ 4,310,352$ 441,450$ (8)4,843,802$ -8.5%
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%
(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.
(8)Miscellaneous expense includes $0.3 million of non-capitalizable expenses which were partially funded by capacity revenue
and $0.1 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
$10,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Non-Operating Expenses, in Thousands ($)
Miscellaneous Interest Expense Donations
82
Fiscal Total Direct
Year Real Personal Total Tax Rate
2023 38,290,356,481$ 581,683,100$ 38,872,039,581 1.00%
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%
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
$40,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Assessed Valuation of Property, In Thousands ($)
83
Fiscal
Year Purchases Sales Production Purchases Sales
2023 11,659,139 11,235,904 381,240 1,071,607 1,428,385
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
(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 88-92 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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Recycled Purchases Recycled Production Potable Purchases
Water Purchases, Productions, and Sales, in Hundred Cubic Feet (HCF)
84
Fiscal
Year Total(1)
2023 203 21 224
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
(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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Meter Sales by Type
Recycled Potable
85
Fiscal
Year Potable Recycled Sewer Total
2023 51,604 782 4,744 57,130
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
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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Number of Customers by Service Type
Potable Sewer Recycled
86
Fiscal
Year 1% Property Tax
Special
Assessments
Total
Levies
Total
Collections (1)
End of the Year
Percent
Collected
2023 $ 5,261,764 $ 1,642,529 $ 6,904,293 $ 6,808,246 99%
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%
(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
$7,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Levies and Collections, in Thousands ($)
Levies Collections
87
Fixed Rates 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
System Charge by Meter Size
Residential Potable
¾"18.07$ 20.08$ 19.27$ 18.87$ 18.05$ 17.38$ 15.91$ 18.91$ 19.39$ 16.19$
1"22.47 28.39 27.24 26.67 25.51 24.56 22.47 26.71 27.39 22.87
1 ½"33.73 49.11 47.12 46.13 44.13 42.49 38.88 46.22 47.40 39.58
2"47.04 73.98 70.98 69.49 66.47 64.00 58.55 69.61 71.39 59.62
¾"16.67 44.17 42.38 41.49 39.69 38.21 15.91 18.91 19.39 16.19
1"20.14 62.37 59.84 58.59 56.05 53.97 22.47 26.71 27.39 22.87
1 ½"29.06 107.92 103.55 101.38 96.98 93.37 38.88 46.22 47.40 39.58
2"39.58 162.53 155.94 152.67 146.04 140.61 58.55 69.61 71.39 59.62
3"83.59 308.22 295.73 289.53 276.96 266.66 111.04 132.02 135.41 113.08
4"140.85 472.17 453.03 443.54 424.28 408.50 170.10 202.24 207.43 173.22
6"276.38 927.63 890.03 871.38 833.54 802.55 334.18 397.31 407.50 340.29
8"426.72 1,474.12 1,414.36 1,384.73 1,324.59 1,275.34 531.05 631.37 647.56 540.76
10"654.34 2,111.67 2,026.07 1,983.62 1,897.47 1,826.91 760.72 904.44 927.63 774.64
¾"18.22 41.61 39.92 39.08 37.38 35.99 15.91 18.91 19.39 16.19
1"22.72 58.75 56.37 55.19 52.79 50.83 22.47 26.71 27.39 22.87
1 ½"34.22 101.66 97.54 95.50 91.35 87.95 38.88 46.22 47.40 39.58
2"47.82 153.11 146.90 143.82 137.57 132.45 58.55 69.61 71.39 59.62
3"101.62 290.34 278.57 272.73 260.89 251.19 111.04 132.02 135.41 113.08
4"173.30 444.76 426.73 417.79 399.65 384.79 170.10 202.24 207.43 173.22
6"348.50 873.81 838.39 820.82 785.17 755.97 334.18 397.31 407.50 340.29
8"550.37 1,388.56 1,332.27 1,304.36 1,247.71 1,201.32 531.05 631.37 647.56 540.76
10"850.11 1,989.08 1,908.45 1,868.46 1,787.32 1,720.86 760.72 904.44 927.63 774.64
¾"16.97 41.61 39.92 39.08 37.38 35.99 15.91 18.91 19.39 16.19
1"20.64 58.75 56.37 55.19 52.79 50.83 22.47 26.71 27.39 22.87
1 ½"30.06 101.66 97.54 95.50 91.35 87.95 38.88 46.22 47.40 39.58
2"41.18 153.11 146.90 143.82 137.57 132.45 58.55 69.61 71.39 59.62
3"87.08 290.34 278.57 272.73 260.89 251.19 111.04 132.02 135.41 113.08
4"147.14 444.76 426.73 417.79 399.65 384.79 170.10 202.24 207.43 173.22
6"290.36 873.81 838.39 820.82 785.17 755.97 334.18 397.31 407.50 340.29
8"450.72 1,388.56 1,332.27 1,304.36 1,247.71 1,201.32 531.05 631.37 647.56 540.76
10"692.32 1,989.08 1,908.45 1,868.46 1,787.32 1,720.86 760.72 904.44 927.63 774.64
¾"16.13 35.13 33.71 33.00 31.57 30.40 15.91 18.91 19.39 16.19
1"19.24 49.62 47.61 46.61 44.59 42.93 22.47 26.71 27.39 22.87
1 ½"27.26 85.86 82.38 80.65 77.15 74.28 38.88 46.22 47.40 39.58
2"36.69 129.28 124.04 121.44 116.17 111.85 58.55 69.61 71.39 59.62
3"77.26 245.19 235.25 230.32 220.32 212.13 111.04 132.02 135.41 113.08
4"129.48 375.63 360.40 352.85 337.53 324.98 170.10 202.24 207.43 173.22
6"251.10 737.94 708.03 693.20 663.10 638.44 334.18 397.31 407.50 340.29
8"383.41 1,172.69 1,125.15 1,101.58 1,053.74 1,014.56 531.05 631.37 647.56 540.76
10"585.74 1,679.86 1,611.76 1,577.99 1,509.46 1,453.33 760.72 904.44 927.63 774.64
Water Fixed Rates - Last Ten Fiscal Years
Non-Public Irrigation and Commercial Agricultural Potable
Business & Commercial Potable
Multi-Residential Potable
Public Agency Potable
88
Fixed Rates 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Water Fixed Rates - Last Ten Fiscal Years
System Charge by Meter Size
¾"16.13$ 35.13$ 33.71$ 33.00$ 31.57$ 30.40$ 15.91$ 18.91$ 19.39$ 16.19$
1"19.24 49.62 47.61 46.61 44.59 42.93 22.47 26.71 27.39 22.87
1 ½"27.26 85.86 82.38 80.65 77.15 74.28 38.88 46.22 47.40 39.58
2"36.69 129.28 124.04 121.44 116.17 111.85 58.55 69.61 71.39 59.62
3"77.26 245.19 235.25 230.32 220.32 212.13 111.04 132.02 135.41 113.08
4"129.48 375.63 360.40 352.85 337.53 324.98 170.10 202.24 207.43 173.22
¾"16.58 35.13 33.71 33.00 31.57 30.40 15.91 18.91 19.39 16.19
1"19.98 49.62 47.61 46.61 44.59 42.93 22.47 26.71 27.39 22.87
1 ½"28.75 85.86 82.38 80.65 77.15 74.28 38.88 46.22 47.40 39.58
2"39.09 129.28 124.04 121.44 116.17 111.85 58.55 69.61 71.39 59.62
3"82.51 245.19 235.25 230.32 220.32 212.13 111.04 132.02 135.41 113.08
4"138.91 375.63 360.40 352.85 337.53 324.98 170.10 202.24 207.43 173.22
6"272.08 737.94 708.03 693.20 663.10 638.44 334.18 397.31 407.50 340.29
8"419.37 1,172.69 1,125.15 1,101.58 1,053.74 1,014.56 531.05 631.37 647.56 540.76
10"642.67 1,679.86 1,611.76 1,577.99 1,509.46 1,453.33 760.72 904.44 927.63 774.64
¾"36.06 43.74 41.54 40.21 38.14 36.85 15.91 18.91 19.39 16.19
1"48.83 61.76 58.65 56.78 53.86 52.04 22.47 26.71 27.39 22.87
1 ½"81.22 106.89 101.51 98.27 93.21 90.06 38.88 46.22 47.40 39.58
2"119.74 160.98 152.88 148.00 140.38 135.63 58.55 69.61 71.39 59.62
3"262.42 305.28 289.91 280.65 266.21 257.21 111.04 132.02 135.41 113.08
4"458.00 467.65 444.11 429.92 407.80 394.01 170.10 202.24 207.43 173.22
6"953.41 918.73 872.49 844.62 801.16 774.07 334.18 397.31 407.50 340.29
8"1,547.17 1,459.97 1,386.49 1,342.20 1,273.13 1,230.08 531.05 631.37 647.56 540.76
10"2,411.52 2,091.41 1,986.14 1,922.69 1,823.75 1,762.08 760.72 904.44 927.63 774.64
¾"36.06 36.93 35.07 33.95 32.20 31.11 15.91 18.91 19.39 16.19
1"48.83 52.16 49.53 47.95 45.48 43.94 22.47 26.71 27.39 22.87
1 ½"81.22 90.25 85.71 82.97 78.70 76.04 38.88 46.22 47.40 39.58
2"119.74 135.90 129.06 124.94 118.51 114.50 58.55 69.61 71.39 59.62
3"262.42 257.73 244.76 236.94 224.75 217.15 111.04 132.02 135.41 113.08
4"458.00 394.84 374.97 362.99 344.31 332.67 170.10 202.24 207.43 173.22
6"953.41 787.55 747.91 724.02 686.76 663.54 334.18 397.31 407.50 340.29
8"1,547.17 1,232.66 1,170.62 1,133.22 1,074.91 1,038.56 531.05 631.37 647.56 540.76
10"2,411.52 1,765.77 1,676.89 1,623.32 1,539.79 1,487.72 760.72 904.44 927.63 774.64
Line Size ¾"2.60 24.00 23.03 22.55 21.57 20.77 20.77 24.69 25.32 21.14
Line Size 1"2.68 24.00 23.03 22.55 21.57 20.77 20.77 24.69 25.32 21.14
Line Size 1 ½"2.94 24.00 23.03 22.55 21.57 20.77 20.77 24.69 25.32 21.14
Line Size 2"3.38 24.00 23.03 22.55 21.57 20.77 20.77 24.69 25.32 21.14
Line Size 3"4.99 24.00 23.03 22.55 21.57 20.77 20.77 24.69 25.32 21.14
Line Size 4"7.75 32.34 31.03 30.38 29.06 27.98 27.98 33.27 34.12 28.49
Line Size 6"17.69 32.34 31.03 30.38 29.06 27.98 27.98 33.27 34.12 28.49
Line Size 8"34.83 32.34 31.03 30.38 29.06 27.98 27.98 33.27 34.12 28.49
Line Size 10"60.61 32.34 31.03 30.38 29.06 27.98 27.98 33.27 34.12 28.49
Fire Services Potable
Recycled Irrigation
Recycled Commercial
Construction Potable
Public Irrigation Potable
89
Fixed Rates 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Water Fixed Rates - Last Ten Fiscal Years
CWA and MWD Pass-through Charges by Meter Size
Residential Potable
¾"16.33$ 17.00$ 16.36$ 15.56$ 15.10$ 15.45$ 15.00$ 16.84$ 13.67$ 14.45$
1"27.22 31.57 30.38 28.89 28.04 28.68 27.84 31.24 25.35 26.79
1 ½"54.42 71.36 68.67 65.31 63.40 64.85 62.96 70.66 57.35 60.61
Non-Residential & Other Potable
¾"16.33 17.00 16.36 15.56 15.10 15.45 15.00 16.84 13.67 14.45
1"27.22 31.57 30.38 28.89 28.04 28.68 27.84 31.24 25.35 26.79
1 ½"54.42 71.36 68.67 65.31 63.40 64.85 62.96 70.66 57.35 60.61
2"87.06 121.39 116.81 111.10 107.84 110.30 107.08 120.17 97.53 103.08
3"190.45 258.17 248.44 236.29 229.36 234.60 227.75 255.60 207.44 219.23
4"342.81 413.41 397.83 378.38 367.29 375.68 364.72 409.32 332.20 351.09
6"761.79 846.28 814.38 774.56 751.85 769.02 746.59 837.89 680.02 718.69
8"1,305.91 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
10"2,067.69 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
Source: Otay Water District
90
Water Rate 2023 2022 2021 2020 2019 2018(1)2017 2016 2015 2014
Tier 1 (conservation tier)-$ -$ -$ -$ -$ -$ 2.53$ 2.13$ 1.95$ 1.86$
Tier 2 5.26 3.52 3.38 3.31 3.17 3.05 3.95 3.32 3.04 2.90
Tier 3 5.71 6.30 6.04 5.91 5.65 5.44 5.13 4.32 3.95 3.77
Tier 4 6.35 8.12 7.79 7.63 7.30 7.03 7.90 6.65 6.08 5.80
Tier 1 5.22 3.29 3.16 3.09 2.96 2.85 3.90 3.28 3.00 2.86
Tier 2 5.65 5.97 5.73 5.61 5.37 5.17 5.05 4.25 3.89 3.71
Tier 3 5.85 7.35 7.05 6.90 6.60 6.35 7.80 6.56 6.00 5.73
Tier 1 5.52 4.17 4.00 3.92 3.75 3.61 4.17 3.51 3.21 3.06
Tier 2 4.23 3.56 3.26 3.14
Tier 3 4.30 3.62 3.31 3.19
Government Fee (2)- 0.43 0.42 0.42 0.42 0.41 0.41 0.37 0.32 0.31
Tier 1 6.08 4.17 4.00 3.92 3.75 3.61 4.17 3.51 3.21 3.06
Tier 2 4.23 3.56 3.26 3.14
Tier 3 4.30 3.62 3.31 3.19
Tier 1 6.36 6.09 5.84 5.72 5.47 5.27 5.68 4.78 4.37 4.17
Tier 2 5.74 4.83 4.42 4.25
Tier 3 5.81 4.89 4.47 4.32
Government Fee (2)- 0.43 0.42 0.42 0.42 0.41 0.41 0.37 0.32 0.31
Tier 1 6.94 6.09 5.84 5.72 5.47 5.27 5.68 4.78 4.37 4.17
Tier 2 5.74 4.83 4.42 4.25
Tier 3 5.81 4.89 4.47 4.32
Tier 1 6.32 6.09 5.84 5.72 5.47 5.27 5.68 4.78 4.37 4.17
Tier 2 5.74 4.83 4.42 4.25
Tier 3 5.81 4.89 4.47 4.32
Tier 1 4.92 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
Tier 1 5.36 5.05 4.80 4.65 4.41 4.26 4.85 4.08 3.73 3.56
Tier 2 4.92 4.14 3.79 3.61
Tier 3 4.99 4.20 3.84 3.68
Government Fee (2)-0.43 0.42 0.42 0.42 0.41 0.41 0.37 0.32 0.31
Tier 1 5.47 5.05 4.80 4.65 4.41 4.26 4.85 4.08 3.73 3.56
Tier 2 4.92 4.14 3.79 3.61
Tier 3 4.99 4.20 3.84 3.68
Energy Pumping Fee (4)
Potable 0.068 0.063 0.063 0.060 0.056 0.053 0.044 0.072 0.050 0.048
Recycled 0.077 0.063 0.063 0.060 0.056 0.053 0.044 0.072 0.050 0.048
(1) Effective 2018, there is no conservation tier for residential customer class and only one tier for all non-residential customer classes.
(2) An additional charge per unit was assessed to governmental customers in lieu of tax revenues, this fee was eliminated in 2023.
(3) This classification was created in Fiscal Year 2016, prior to this the customers paid the Recycled Non-Public Irrigation Rate.
(4) 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 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
Recycled Public Irrigation
Construction
Water Variable Rates - Last Ten Fiscal Years
Recycled Non-Public Irrigation
Recycled Commercial(3)
Business & Commercial
Non-Public Irrigation and Commercial Agricultural
Multi Residential
Residential
Public Agency
Public Irrigation
91
Description 2023 2022 2021* 2020 2019 2018 2017 2016 2015 2014
Per Unit 3.25$ 3.11$ 2.96$ 2.93$ 2.67$ 2.77$ 2.58$ 2.46$ 2.46$ 2.46$
Low Strength 3.25 3.11 2.96 2.93 2.67 2.77 2.58 2.46 2.46 2.46
Medium Strength 3.69 3.54 3.37 3.64 3.31 3.98 3.70 3.53 3.53 3.53
High Strength 5.20 4.98 4.75 5.01 4.56 6.34 5.90 5.63 5.63 5.63
¾" & 1"18.13 17.37 16.55 16.38 14.91 17.08 15.89 27.07 15.89 15.89
¾"18.13 17.37 16.55 16.38 14.91 30.50 28.37 27.07 27.07 27.07
1"45.30 43.41 41.36 40.94 37.27 44.94 41.80 39.86 39.86 39.86
1 ½"90.58 86.80 82.71 81.88 74.55 80.92 75.27 71.82 71.82 71.82
2"144.92 138.88 132.33 131.00 119.27 124.12 115.46 110.17 110.17 110.17
3"271.74 260.41 248.13 245.64 223.64 224.93 209.24 199.66 199.66 199.66
4"452.90 434.02 413.55 409.40 372.73 368.97 343.23 327.51 327.51 327.51
6"905.79 868.03 827.09 818.79 745.45 729.04 678.18 647.12 647.12 647.12
8"1449.29 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
10"2083.35 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
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
(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
92
Customer Name Customer Type Annual
Revenues
% of Water
Sales
1. City of Chula Vista Publicly Owned 4,215,277$ 4.2%
2. State of California Publicly Owned 1,728,000 1.7%
3. County of San Diego Publicly Owned 1,596,017 1.6%
4. Sweetwater School District Publicly Owned 1,475,805 1.5%
5. Chula Vista School District Publicly Owned 1,092,970 1.1%
6.Eastlake III Community Association Commercial 976,591 1.0%
7. Sycuan Commercial 708,419 0.7%
8. Eastlake Country Club Commercial 679,922 0.7%
9. Elite Athlete Services, LLC Commercial 615,574 0.6%
10. Southwestern College Publicly Owned 563,077 0.6%
Total Top Ten Customers 13,651,652$ 13.7%
Other Customers 86,249,522 86.3%
Total Water Sales 99,901,174$ 100.0%
Customer Name Customer Type Annual
Revenues
% of Water
Sales
1. City of Chula Vista Publicly Owned 3,595,360$ 4.4%
2. State of California Publicly Owned 1,130,281 1.4%
3. County of San Diego Publicly Owned 935,465 1.2%
4. Eastlake III Community Publicly Owned 841,818 1.0%
5. Eastlake Country Club Commercial 618,403 0.8%
6. Chula Vista School District Commercial 510,535 0.6%
7. Highlands Golf Company, LLC Publicly Owned 464,298 0.6%
8. SANDAG Commercial 404,250 0.5%
9. Sweetwater School District Publicly Owned 390,445 0.5%
10. City of San Diego Publicly Owned 362,662 0.4%
Total Top Ten Customers 9,253,517$ 11.4%
Other Customers 72,033,647 88.6%
Total Water Sales 81,287,164$ 100.0%
Source: Otay Water District
Ten Largest Customers - Current Year and Nine Years Ago
Fiscal Year 2023
Fiscal Year 2014
93
As a Share
Fiscal Population GO Revenue Lease Subscription-Based Per of Personal
Year Estimate Bond COPS Bonds Payable IT Payable Total Capita Income (1)
2023 240,000 -$ -$ 99,779,295$ 707,727$ 85,348$ (6)100,572,370$ 419.05$ 0.84%
2022 228,000 722,726 - 105,027,053 723,401 (5)- 106,473,180 466.99 0.91%
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 (4)- - 116,902,997 517.27 1.00%
2019 225,000 2,806,789 - 116,189,228 (3)- - 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 (2)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%
(1)See the Demographics and Economic Statistics schedule on page 101 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)2007 COPS were refunded with the issuance of 2016 Water Revenue Refunding Bonds in May 2016.
(3)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.
(4)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.
(5)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.
(6)The District entered into two 36-month and one 14-month Subscription-Based IT Arrangements (SBITA) in FY2023 that required the District to make annual fixed
payments. SBITA payable is measured at the present value of payments expected to be made during the subscription terms.
Source: Otay Water District
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years
$0
$100
$200
$300
$400
$500
$600
$700
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Outstanding Debt, Per Capita
94
Adjusted Net Revenues
Fiscal Adjusted Operating Available for Debt Service Requirements (4)Coverage
Year Revenues (1)Expenses (2)Debt Service Principal Interest Total Factor (3)
2023 119,198,005$ 98,660,691$ 20,537,314$ 4,720,000$ 4,667,830$ 9,387,830$ 219%
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%
(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%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Coverage Factor, in Percentage (%)
Actual Ratio Minimum ratio
95
Adjusted Net Revenues
Fiscal Sewer Operating Available for Debt Service Requirements (3)Coverage
Year Revenues Expenses (1)Debt Service Principal Interest Total Factor (2)
2023 3,516,361$ 2,562,144$ 954,217$ 70,000$ 88,229$ 158,229$ 603%
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 150%.
(3)Pledge debts are Revenue Bonds.
(4)No wastewater revenue bonds were issued between FY2014 and FY2019.
(5)In December 2019, the District issued $3,120,000 in Wastewater Revenue Bonds to pay for certain
capital improvements to the District's wastewater system.
Source : Otay Water District
Pledged Revenue Coverage (Wastewater) - Last Ten Fiscal Years (4)
0%
200%
400%
600%
800%
1000%
1200%
1400%
2020 2021 2022 2023
Coverage Factor, in Percentage (%)
Actual Ratio Minimum ratio
96
Net Bonded
Net Debt to Net Bonded
Fiscal Population Assessed Bonded Assessed Debt Per
Year Estimate Valuation Debt Valuation Capita
2023 240,000 40,067,736,869$ -$ (1)0.000%-$
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
(1)At June 30, 2023, the General Obligation Bonds were paid off.
Source: Otay Water District
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years
0.00%
0.01%
0.02%
0.03%
0.04%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Bonded Debt Ratios, in Percentage (%)
97
Computation of Direct and Overlapping Bonded Debt
June 30, 2023
2022-23 Assessed Valuation: $40,067,736,869
Total Debt District’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2023 % Applicable (1) Debt 6/30/2023
Metropolitan Water District $19,215,000 1.099% $ 211,173
Otay Water District Improvement District No. 27 0 100. 0
Grossmont-Cuyamaca Community College District 363,535,377 14.576 52,988,917
Southwestern Community College District 758,359,345 42.529 322,522,646
Grossmont Union High School District 637,181,318 14.969 95,379,671
Sweetwater Union High School District 617,301,738 50.382 311,008,962
Chula Vista City School District and School Facilities
Improvement District 185,713,285 62.358 & 30.19 91,185,703
San Ysidro School District 131,766,068 57.015 75,126,424
Other School Districts 6,535,747,498 Various 58,361,012
Grossmont Healthcare District 236,992,076 13.474 31,401,450
City of Chula Vista Community Facilities District 119,135,000 100.119,135,000
Sweetwater Union High School District Community Facilities
Districts 41,385,458 19.315 - 100. 38,837,374
City 1915 Act Bonds 5,080,000 100.5,080,000
California Statewide Communities Development Authority:
Venture Community Center, Sweetwater Place and
Sweetwater Vista Assessment Districts 6,305,949 100.6,305,949
California Municipal Finance Authority Community Facilities
District No. 2021-11 39,380,000 100.39,380,000
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $1,246,924,281
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Diego County General Fund Obligations $229,680,000 6.099% $ 14,008,183
San Diego County Pension Obligation Bonds 277,990,000 6.099 16,954,610
San Diego Superintendent of Schools Certificates of Participation 6,935,000 6.099 422,966
Otay Water District 99,779,295 100. 99,779,295
Southwestern Community College District General Fund
Obligations 260,000 42.529 110,575
Sweetwater Union High School District Certificates of Participation 770,000 50.382 387,941
Chula Vista City School District Certificates of Participation 179,945,000 62.358 112,210,103
San Ysidro School District Certificates of Participation 34,490,000 57.015 19,664,474
Other School District Certificates of Participation 46,147,000 Various 8,025,082
City of Chula Vista Certificates of Participation and Pension
Obligations 448,955,000 69.984 314,196,667
City of San Diego General Fund Obligations 642,372,180 0.960 6,166,773
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $591,926,669
Less: Otay Water District Revenue Bonds (100% self-supporting) 99,779,295
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $492,147,374
Continued
98
Computation of Direct and Overlapping Bonded Debt
Total Debt District’s Share of
6/30/2023 % Applicable (1) Debt 6/30/2023
OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $19,010,000 17.572% $3,340,437
TOTAL GROSS DIRECT DEBT $99,779,295
TOTAL NET DIRECT DEBT $0 (2)
TOTAL OVERLAPPING DEBT $1,742,412,092
COMBINED TOTAL DEBT $1,742,412,092 (3)
Ratios to 2022-23 Assessed Valuation:
Direct Debt ($0) ........................................................................................... 0.00%
Total Direct and Overlapping Tax and Assessment Debt .................. 3.11%
Combined Total Debt ......................................................................................... 4.35%
Ratios to Redevelopment Successor Agency Incremental Valuation ($437,442,470):
Total Overlapping Tax Increment Debt ...................................................... 0.76%
(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 $99,779,295 revenue bonds supported by water revenues and backed by a rate covenant.
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Qualified Zone Academy Bonds are included based on principal due at maturity.
Source: California Municipal Statistics, Inc., and Otay Water District
99
2014
% of Total % of Total
County County
Employer Employees Rank Employment Employees Rank Employment
Federal Government(1)(5)47,600 1 3.08% 24,200 3 1.69%
University of California San Diego(2)40,285 2 2.61% 28,672 2 2.01%
State of California(1)(4)20,900 3 1.35% 43,300 1 3.03%
County of San Diego(1)20,300 4 1.31% 20,100 5 1.41%
Sharp HealthCare(3)18,839 5 1.22% 13,175 9 0.92%
Scripps Health(3)13,787 6 0.89% 13,750 7 0.96%
San Diego Unified School District(3)13,559 7 0.88% 13,559 8 0.95%
City of San Diego(3)12,777 8 0.83% 18,000 6 1.26%
Qualcomm Inc.(3)11,546 9 0.75%
Kaiser Permanente(3)9,632 10 0.62% 8,900 10 0.62%
U.S. Department of Defense(5)21,500 4 1.50%
Total 209,225 13.54%205,156 14.35%
Footnotes:
(1) California Employment Development Department Labor Market Information
(2) University of California
(3) City of San Diego
(4) Excludes education
(5) In Fiscal Year 2014, the Federal Government and U.S. Department of Defense were
reported separately, they are combined in Fiscal Year 2023.
Principal Employers - Current Year and Nine Years Ago
2023
100
Personal Per Capita
Fiscal Income Personal Unemployment
Year Population (in thousands)Income Rate
2023 3,369,600 168,304,000$ (1)49,948 (1)3.46%
2022 3,287,300 167,801,000 51,045 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%
(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
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Unemployment Rate, in Percentage (%)
101
Department 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
General Manager 4 4 5 5 5 6 6 5 5 5
Finance 31 31 31 31 31 29 31 32 34 34
Operations 56 54 54 53 52 52 51 51 51 51
Engineering 29 28 26 26 26 24 24 24 24 25
Administrative Services 23 23 23 23 23 23 23 26 26 28
Total 143 140 139 138 137 134 135 138 140 143
Source : Otay Water District
Number of Employees by Function - Last Ten Fiscal Years
0
25
50
75
100
125
150
175
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Employees
102
Meter Size 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
3/4" & 5/8" 44,616 44,583 44,532 44,520 44,490 44,473 44,423 44,413 44,395 44,375
1"4,562 4,389 4,284 4,080 3,680 3,235 2,800 2,756 2,674 2,557
1 ½" 1,417 1,409 1,378 1,365 1,362 1,343 1,349 1,342 1,335 1,332
2"1,344 1,344 1,336 1,344 1,334 1,326 1,301 1,299 1,294 1,293
3"123 120 112 105 102 87 87 82 81 77
4"289 280 283 281 279 272 232 210 207 189
6"26 23 23 25 25 24 22 22 18 18
Others 9 9 9 9 9 9 9 9 9 9
Total 52,386 52,157 51,957 51,729 51,281 50,769 50,223 50,133 50,013 49,850
% Change 0.4% 0.4% 0.4% 0.9% 1.0% 1.1% 0.2% 0.2% 0.3% 0.4%
Increase 229 200 228 448 512 546 90 120 163 184
Source: Otay Water District
Active Meters by Size - Last Ten Fiscal Years
48,500
49,000
49,500
50,000
50,500
51,000
51,500
52,000
52,500
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Active Meters
103
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Water System
Service Area (Square Miles)125.3 125.3 125.5 125.5 125.5 125.5 125.5 125.5 125.5 125.5
Miles of Potable Water Main 731.0 727.0 726.0 723.0 723.0 727.0 727.0 727.0 727.0 726.0
Number of Operational
Storage Reservoirs in Service 40 40 40 40 40 40 40 40 40 40
Water Storage Capacity
(in Acre-Feet)672.0 672.0 672.0 672.0 672.0 672.0 672.0 672.0 668.0 668.0
Total Potable Water Connections
(No. of Meters in Service)51,604 51,389 51,204 50,994 50,555 50,045 49,502 49,425 49,308 49,148
Number of Pump Stations 21 21 21 21 21 21 21 21 21 21
Number of Potable Water
Valves 22,455 22,178 21,218 20,981 20,746 20,746 20,746 20,746 20,676 20,460
Sewer System
Miles of Sewer Lines 88.0 88.0 88.0 84.0 84.0 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)406 385 394 399 388 381 393 336 388 405
Total Sewer Connections
(No. of Meters in Service)4,748 4,738 4,736 4,737 4,737 4,714 4,683 4,677 4,679 4,657
Recycled System
Miles of Recycled Water
Mains 102.0 101.0 104.0 104.0 104.0 104.0 104.0 104.0 104.0 102.0
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 133.2 133.2 133.2 133.2 133.2 134.2 134.2 134.2 134.2 134.2
Total Recycled Water Connections
(No. of Meters in Service)782 768 753 735 726 724 721 708 705 702
Number of Recycled
Water Valves 1,526 1,468 1,522 1,506 1,497 1,497 1,497 1,497 1,492 1,473
(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
(1)
(1)
(1)
104