board of directors agenda matthew roberts … the safety and reliability of the water system ......

I. CALL TO ORDER

II. PUBLIC FORUM (Any person may address the Rate and Budget Committee on any

matter within its jurisdiction which is not on the agenda)

III. OLD BUSINESS

IV. NEW BUSINESS

A. **Review Comprehensive Annual Financial Report Fiscal Year 2013-14.

B. Discuss funding for new motor at Headquarters Well.

C. **Rate & Budget Committee meeting schedule for Fiscal Year 2015-16 Budget.

D. Discuss CalPERS informational item for January 14, 2015 Board meeting.

V. ADJOURNMENT

Charles B. Hamilton, Secretary

Note: The above Agenda was posted at Carpinteria Valley Water District’s Administrative Office in view of the

public, 12:30 p.m., December 19, 2014. The Americans with Disabilities Act provides that no qualified individual

with a disability shall be excluded from participation in, or denied benefits of, the District’s programs, services, or

activities because of any disability. If you need special assistance to participate in this meeting, please contact the

District Office at (805) 684-2816. Notification at least twenty-four (24) hours prior to the meeting will enable the

District to make appropriate arrangements.

Materials related to this Agenda submitted to the Board of Directors after the distribution of the agenda packet are

available for public inspection in the Carpinteria Valley Water District offices located at 1301 Santa Ynez Avenue,

Carpinteria during normal business hours, from 8 am to 5 pm.

BOARD OF DIRECTORS

Matthew Roberts

President

Alonzo Orozco

Vice President

Richard Forde

Polly Holcombe

June Van Wingerden

AGENDA

RATE AND BUDGET COMMITTEE

CARPINTERIA VALLEY WATER DISTRICT

1301 SANTA YNEZ AVENUE

CARPINTERIA, CALIFORNIA

Monday, December 22, 2014 12:30 p.m.

GENERAL MANAGER

Charles B. Hamilton


COMPREHENSIVE ANNUAL FINANCIAL REPORT

for the

Fiscal Years Ended June 30, 2014 and 2013

1301 Santa Ynez Avenue, Carpinteria, California 93013 805.684.2816

www.cvwd.net

This Page Left Blank Intentionally

Carpinteria Valley Water District Carpinteria, California

Comprehensive Annual Financial Report

for the Fiscal Years Ended

June 30, 2014 and 2013

Prepared by the Business Office of Carpinteria Valley Water District

This Page Left Blank Intentionally

i

Carpinteria Valley Water District


for the Fiscal Years Ended June 30, 2014 and 2013

TABLE OF CONTENTS

Page

Table of Contents i-ii

INTRODUCTORY SECTION

Letter of Transmittal· 1-4

Organizational Chart 5

Board of Directors and Management 6

FINANCIAL SECTION

Independent Auditor’s Report 7-8

Management’s Discussion and Analysis 9-19

Basic Financial Statements:

Statement of Net Position 20-21

Statement of Revenues, Expenses, and Changes in Net Position 22

Statement of Cash Flows 23-24

Notes to the Financial Statements 25-49

REQUIRED SUPPLEMENTARY INFORMATION

Schedules of Funding Progress (unaudited) 50

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for the Fiscal Years Ended June 30, 2014 and 2013

TABLE OF CONTENTS (continued)

Page

STATISTICAL SECTION

Statistical Section – Table of Contents 50

Changes in Net Position by Component – Last 10 Fiscal Years 51-52

Operating Revenues by Source – Last 10 Fiscal Years 53

Operating Expenses by Activity – Last 10 Fiscal Years 54

Operating Revenues and Expenses as Percent of Total 55

Revenue Base – Last 10 Fiscal Years 56

Revenue Rates – Last 10 Fiscal Years 57

Customers by Type – Last 10 Fiscal Years 58

Ratios of Outstanding Debt – Last 10 Fiscal Years 59

Debt Coverage – Last 10 Fiscal Years 60

Demographics and Economics Statistics – Last 10 Fiscal Years 61

Operating and Capacity Indicators – Last 10 Fiscal Years 62

REPORT ON INTERNAL CONTROLS AND COMPLIANCE

Independent Auditor’s Report on Internal Control Over Financial Reporting

And on Compliance and Other Matters Based on an Audit of Financial

Statements Performed in Accordance with Government Auditing Standards XXX

INTRODUCTORY SECTION

This page is intentionally blank.

1

December 15, 2014

Board of Directors


Introduction

It is our pleasure to submit the Comprehensive Annual Financial Report (CAFR) for the

Carpinteria Valley Water District (District) for the fiscal years ended June 30, 2014 and 2013,

following guidelines set forth by the Governmental Accounting Standards Board. District staff

prepared this financial report. The District is ultimately responsible for both the accuracy of the

data and the completeness and the fairness of presentation, including all disclosures in this

financial report. We believe that the data presented is accurate in all material respects. This report

is designed in a manner that we believe necessary to enhance your understanding of the District’s

financial position and activities.

District Structure and Leadership

The Carpinteria Valley Water District is a special district of the State of California in the southern

coastal portion of Santa Barbara County and includes the City of Carpinteria. The District, which

covers approximately 11,300 acres, is bound on the south by the Pacific Ocean and on the north

by the foothills of the Santa Ynez mountains. The District provides domestic water service to a

population of about 15,700 and approximately 3,883 acres of orchards (typically citrus and

avocado) and various nurseries and greenhouses through a total of 4,424 service connections.

The District is a single purpose enterprise supported solely by the revenue obtained from the

customers it serves. It is governed by a five-member Board of Directors. Board members are

elected by registered voters of the District to four-year terms with elections held in even numbered

years. The Board establishes policy, sets water rates and charges, establishes an annual budget,

approves contracts and labor agreements, and has the authority to adopt ordinances that have the

force of law within the District.

Day-to-day management of the District is performed by a General Manager hired by the Board.

The General Manager hires and manages a total of 19 employees who perform the administrative,

business, engineering, and operations and maintenance of the District. As a public health and

safety water utility the District provides 24/7 emergency service.

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The Carpinteria County Water District was incorporated in 1941 as an area-wide organization to

recharge valley wells after several dry years led to alarming drops in the water table. In 1997 the

District adopted an AB3030 Groundwater Management Plan establishing its authority as the

groundwater management agency for the Carpinteria Groundwater Basin. In 1949, voters elected

to participate in the Cachuma Project to bring water from Lake Cachuma to south coast water

agencies. In 1966, the District changed its name to Carpinteria Valley Water District. And in 1991,

voters elected to participate in the State Water Project to provide a conduit to import water from

northern California into Lake Cachuma. As of today, the District relies primarily on well water

and allotments from Lake Cachuma, while State water provides a small but important buffer to

these primary sources.

Local economy

Carpinteria Valley Water District provides water service to the City of Carpinteria and to

unincorporated portions of the County of Santa Barbara. Carpinteria Valley has a diverse economy,

including a cut flower industry, a strong industrial sector, and a thriving tourism sector. In 2013,

the Valley enjoyed lower unemployment rates and higher wage increase than the rest of Santa

Barbara County and much of the state of California. The Southern California Leading Economic

Indicator has been increasing since 2009 and in expected to continue increasing in 2015.

Long-term financial planning and major initiatives

The District has adopted a policy to hold funds in reserve to cover six months of operating

expenditures, to fund capital projects, to mitigate volatility in revenues and to provide for

emergency expenditures. The District’s Reserves Policy will be updated in 2015 to address

changes in risk factors and ensure the District has sufficient reserves to meet objectives and

maintain or improve certain credit ratings. The District has maintained a credit rating of AA-

from Standard and Poors since 2008.

Capital expenditures continue to focus on capital assets related to water transmission and

distribution and water production. As a result of drought-related reductions in State water and Lake

Cachuma allotments, the District has several projects in progress and planned that maintain and

upgrade the capacity of existing wells. Transmission and distribution projects include replacing

aging valves and pipelines, upgrading bridge pipelines and replacement and upgrades of pump

station motors and generators.

The District has completed several major capital improvement projects over the last decade to

improve the safety and reliability of the water system as well as to improve water quality.

Headquarters Well: The Headquarters well, completed in 2004, is capable of producing up to

2 million gallons of water per day. Water produced from this well is typically stored in the

Foothill reservoir for use in the Central Pressure zone which supplies the majority of CVWD’s

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residential customers. Additionally, this water can be blended with incoming Cachuma water

using Foothill reservoir booster pumps. Blending Cachuma surface water and District

groundwater reduces the concentration of dissolved organic material that reacts with chlorine

producing potentially harmful disinfection by-products. These disinfectant by-products have

been linked to increased risk of cancer. This project cost approximately $2,100,000.

El Carro Well: The El Carro well, completed in 2010, is capable of producing up to 1.5

million gallons of water per day. Water produced from this well is also stored in the Foothill

reservoir producing the same water quality benefits highlighted in the discussion about

Headquarters well. This well, as the second highest producer also gives the District greater

reliability in its groundwater production capability. $1,000,000 of this project was paid for by

State grant funds. This project cost approximately $2,500,000.

CZ Main: The CZ main project was completed in 2012. The project consisted of a mile and a

half of 12 inch Transmission main to convey water produced from El Carro Well to the Foothill

Reservoir and the Central pressure zone. The project also allows more flexibility for water

delivered to the Central zone. This project cost approximately $1,900,000.

Foothill Reservoir: The three million gallon Foothill Reservoir (underground tank) was built

in 2006 to increase the storage capacity within the District, to store groundwater from

Headquarters well for blending and to reduce the District’s reliance on imported surface water

supplies The Reservoir is situated at elevation 260 feet above sea level located within foothills of

Carpinteria – a location that permits gravity flow distribution of well and blended water to all of

the City of Carpinteria. The tanks location and configuration allows the District to target much of

the local groundwater produced to its residential customers. This project cost approximately

$11,700,000.

Ortega Reservoir Cover: The Ortega Reservoir is a 20 million gallon concrete reservoir built

and owned by the United States Bureau of Reclamation located at elevation 454 feet above sea

level in the hills behind Summerland. Water stored in Ortega Reservoir is utilized by both the

Carpinteria Valley Water District and the Montecito Water District. The reservoir is part of the

USBRs South Coast Conduit transmission system. In order to meet Federal and State water

quality standards, the two agencies jointly paid for the alteration of the reservoir and installation

of a 6 acre aluminum roof. The roof prevents evaporation and contamination of treated surface

water and reduces the amount of disinfectant needed to maintain water quality, thereby

contributing to the reduction of unwanted disinfection by-products. Completed in 2006, the

District’s share of the project’s cost was approximately $10,700,000.

Carpinteria Reservoir Cover: The Carpinteria reservoir is a 14 million gallon concrete

reservoir built and owned by the United States Bureau of Reclamation located at elevation 360

feet above sea level in the eastern Carpinteria foothills. The District alone paid for the alteration

of the reservoir and installation of a protective roof, producing the same benefits as the Ortega

Reservoir. Completed in 2004 this project cost approximately $6,400,000.

4

William B. Cater Water Treatment Plant and Pumping Upgrades: District water from the

State Water Project and Lake Cachuma is treated at the City of Santa Barbara’s Cater Water

Treatment Plant. In order to reduce the concentration of dissolved organic matter (and resulting

disinfection byproducts) the City embarked on an ozone pretreatment upgrade. The ozone

facility oxidizes organic matter in the raw surface water, augmenting the convention treatment

process to remove more organic matter from the water. Completed in 2013, the project also

involved upgrading a pumping station that sends water from Cater to the Montecito and

Carpinteria Water Districts. The District’s share of the project’s cost was approximately

$4,400,000.

Due to the extended California-wide drought, the District declared a Stage One Drought

Emergency in February 2014, calling for voluntary 20 percent reduction in water usage to help

ensure adequate water supplies. In June 2014 the Board held rate hearings to add a drought

surcharge to water billing rates to offset drought-related expenditures. This drought surcharge will

be rescinded once the drought ends. Awards and Acknowledgements

The preparation of this report would not have been possible without the skill, effort, and dedication

of the entire staff of the Business Office. We wish to thank all District departments for their

assistance in providing the data necessary to prepare this report. Credit also is due to the Board for

their unfailing support for maintaining the highest standards of professionalism in their oversight

of the District’s finances.

Respectfully submitted,

Charles B. Hamilton

General Manager

Norma Rosales

Assistant General Manager

5


CITIZENS

Board of Directors

Legal CounselGeneral

Manager/Secretary

Administrative Assistant

Assistant General Manager / Internal

Auditor

Administrative Analyst

Accountant

Account Clerk III

District Engineer

Associate Engineer

Field Engineering Technician

Engineering Technician

Operations & Maintenance

Manager

Water Treatment Foreman

Water Distribution Foreman

Water Treatment Operator

Water Utility / Customer Service

Water Utility Worker

Water Utility Worker Helper

Auditor

6


Board of Directors as of June 30, 2014

Board Member Title Date of Original Election or

Appointment

Current Term

Matthew Roberts Director Elected 1995 2010 – 2014

June Van Wingerden Director Elected 1997 2012 – 2016

Alonzo Orozco Director Elected 2010 2010 – 2014

Richard Forde Director Elected 2012 2012 – 2014

Polly Holcombe Director Elected 2012 2012 - 2016

FINANCIAL SECTION

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Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of Carpinteria Valley Water District, as of June 30, 2014 and 2013, and the respective changes in operations and cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America, as well as accounting systems prescribed by the State Controller’s Office and state regulations governing special districts.

Emphasis of a Matter

As discussed in Note 1 and Note 15 to the basic financial statements, the District has changed its method for accounting and reporting certain items previously reported as assets or liabilities during fiscal years 2013 and 2014 due to the adoption of Governmental Accounting Standards Board’s Statement No. 65, “Items Previously Reporting as Assets and Liabilities”. The adoption of this standard required retrospective application resulting in a $543,285 and $570,940 reduction of previously reported net position as of July 1, 2013 and 2012, respectively. Our opinion is not modified with respect to this matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis on pages 3 through 13 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audits 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.

Santa Barbara, California November 18, 2014

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MANAGEMENT’S DISCUSSION AND ANALYSIS

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Management’s discussion and analysis of the District's financial performance provides an overview of the District's financial activities for the year ended June 30, 2014. Please read it in conjunction with the District's financial statements, which follow this section.

FINANCIAL STATEMENTS

This discussion and analysis provides an introduction and a brief description of the District's financial statements, including the relationship of the statements to each other and the significant differences in the information they provide. The District's financial statements include four components:

Statement of Net Position Statement of Revenues, Expenses and Changes in Net Position Statement of Cash Flows Notes to the Financial Statements

The statement of net position includes all the District's assets and deferred outflows and liabilities and deferred inflows, with the difference reported as net position. Net position may be displayed in the categories:

Net Investment in Capital Assets Restricted Unrestricted

The statement of net position provides the basis for computing rate of return, evaluating the capital structure of the District and assessing the liquidity and financial flexibility of the District.

The statement of revenues, expenses and changes in net position presents information which shows how the District's net position changed during the year. All of the current year's revenues and expenses are recorded when the underlying transaction occurs, regardless of the timing of the related cash flows. The statement of revenues, expenses and changes in net position measures the success of the District's operations over the past year and determines whether the District has recovered its costs through user fees and other charges.

The statement of cash flows provides information regarding the District's cash receipts and cash disbursements during the year. This statement reports cash activity in four categories:

Operations Noncapital financing Capital and related financing Investing

This statement differs from the statement of revenues, expenses and changes in net position because the statement accounts only for transactions that result in cash receipts or cash disbursements.

The notes to the financial statements provide a description of the accounting policies used to prepare the financial statements and present material disclosures required by generally accepted accounting principles that are not otherwise present in the financial statements.

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FINANCIAL HIGHLIGHTS

During the year ended June 30, 2014, the District's total net position increased by $905,417. The District's operating revenues increased by $130,975 (or 1.1%) and operating expenses increased by $954,809 (or 9.9%). Net non-operating loss increased in the current year by $273,971 (or 61.1%).

FINANCIAL ANALYSIS OF THE FINANCIAL STATEMENTS

Net Position

The District's net position at June 30, 2014 totaled $29,533,839 compared with $28,628,422 at June 30, 2013. The change in net position can be attributed primarily to operating income of $1,598,906, non-operating expense of $722,761 and capital contributions of $29,272. The following is a summary of the District's statement of net position:

(As Restated) (As Restated)June 30, 2014 June 30, 2013 June 30, 2012

Assets:Current assets 15,407,491$ 14,536,228$ 13,945,223$ 5.99% 4.24%Noncurrent assets:Restricted assets 3,907,808 3,990,929 5,504,542 -2.08% -27.50%Capital assets, net of depreciation 36,674,775 37,176,818 37,396,931 -1.35% -0.59%Capacity rights, net of amortization 6,998,505 7,277,992 5,698,872 -3.84% 27.71%Intangible assets, net of amortization 164,917 178,054 191,189 -7.38% -6.87%

Total Assets 63,153,496 63,160,021 62,736,757 -0.01% 0.67%

Deferred outflows of resources 484,681 515,124 537,539 -5.91% -4.17%Total Assets and Deferred Outflows 63,638,177$ 63,675,145$ 63,274,296$ -0.06% 0.63%

Liabilities:Current liabilities 3,092,879$ 3,374,336$ 4,364,787$ -8.34% -22.69%Long term liabilities 118,275 90,508 64,123 30.68% 41.15%Long term debt 30,893,184 31,581,879 32,243,324 -2.18% -2.05%

Total Liabilities 34,104,338$ 35,046,723$ 36,672,234$ -2.69% -4.43%

% Change FYE 2014 and 2013


The increase in current assets of $871,263 is primarily related to increases in cash and prepaid expenses at June 30, 2014. The decrease in restricted assets of $83,121 is primarily due to the use of restricted funds for debt service. The decrease in capital assets, net of related accumulated depreciation of $502,043 is a result of total current year improvements not exceeding current year depreciation expense.

The decrease in current liabilities of $281,457 is primarily related to a decrease in accounts payable at June 30, 2014. The decrease in long term debt of $688,695 is the result of principal repayments made during the year.

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Net Position (Continued)

(As Restated) (As Restated)June 30, 2014 June 30, 2013 June 30, 2012

Net Position:Net investment in capital assets 6,122,173$ 6,396,644$ 7,952,900$ -4.29% -19.57%Restricted net position 2,963,713 2,607,682 2,109,456 13.65% 23.62%Unrestricted 20,447,953 19,624,096 16,539,706 4.20% 18.65%

Total Net Position 29,533,839$ 28,628,422$ 26,602,062$ 3.16% 7.62%



The decrease of $274,471 in net investment in capital assets consists primarily of a decrease in unspent bond proceeds. The increase in restricted net position of $356,031 consists primarily of an increase in bond reserve funds. The decrease in net investment in capital assets when combined with the increases in restricted and unrestricted net position results in the current year overall increase in net position of $905,417.

Statement of Revenues, Expenses and Changes in Net Position

The District reported a change in net position of $905,417 for the year ended June 30, 2014, a decrease of $1,120,943 when compared to the year ended June 30, 2013. This decrease results from a decrease in operating income of $823,834, primarily due to drought related expenses, and an increase in non-operating expense of $273,971, primarily due to decreases in grant revenue.

As required by GASB 34, capital contributions are presented as a component of Change in Net Position on the Statement of Revenues, Expenses and Changes in Net Position.

Detailed schedules of operating revenues, operating expenses, and non-operating revenues and expenses, for the last five years including discussion of the significant trends and variances are as follows:

Operating Revenues

(As Restated) (As Restated) (As Restated) (As Restated)FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14

Water Sales 10,089,936$ 9,840,891$ 10,353,227$ 10,798,634$ 11,229,175$ Capital Recovery Fees 112,454 77,787 496,558 855,845 613,972Fire Protection 184,838 224,061 221,989 221,131 228,640Other Operating Revenues 43,959 123,361 109,220 128,631 63,429 Total Operating Revenues 10,431,187$ 10,266,100$ 11,180,994$ 12,004,241$ 12,135,216$

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Statement of Revenues, Expenses and Changes in Net Position (Continued)

-

1,000

2,000

3,000

4,000

5,000

6,000

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14

Acr

e ft

.

Rev

enue

Operating Revenues (in thousands) and Acre Feet Sold

Operating Revenues

Acre Feet Sold

In fiscal year 13/14, an increase in water rates resulted in an increase in water sales revenue of approximately $430,541. This increase in water sales revenue, combined with a decrease in capital cost recovery fees of $241,873 and a decrease in other operating revenues of $65,202, resulted in a net increase in operating revenues of $130,975.

Operating Expenses

DEFINITIONS:

Cost of Purchased Water: Water purchased from the Cachuma Project as well as Central Coast WaterAuthority (CCWA) and Department of Water Resources variable costs.

CCWA Source of Supply: CCWA bond principal & interest, operating expenses and Department ofWater Resources costs.

Cachuma Operating Expense: COMB Operating, special projects, storm damage, and safety of dams(SOD).

Pumping Expense: Maintenance of wells and pumping equipment as well as power and telephone forpumping.

Water Treatment: Cater Treatment Plant, chlorination, AB3030, water quality and water tests. Transmission & Distribution: Maintenance of mains, hydrants and meters, engineering expenses,

vehicle expenses, cross connection expenses and other miscellaneous. Customer Accounting and Service: Meter reading and customer orders, uncollectible accounts. General & Administrative: Salaries and benefits, legal expenses, administration utilities, water

conservation, Cachuma Conservation Release Board cost share, auditor fees, public information. Depreciation and Amortization: Depreciation and amortization of District capital and intangible

assets. Overhead charged to Customers: Overhead on work orders.

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Operating Expenses


Cost of Purchased Water 275,957$ 414,717$ 323,548$ 354,603$ 665,351$ CCWA Source of Supply 2,840,261 2,971,245 2,978,486 2,812,371 3,066,986Cachuma Operating Expense 250,930 304,882 409,972 498,379 541,839Pumping Expense 265,566 249,027 285,050 225,971 287,174Water Treatment 670,103 935,478 944,251 949,594 1,006,344Transmission and Distribution 838,921 833,022 927,733 899,177 931,836Customer Accounting and Service 80,866 61,542 67,025 47,448 75,315General and Administrative 2,102,918 2,172,510 2,093,291 2,125,924 2,203,554Depreciation and Amortization 1,965,498 1,837,803 1,776,991 1,691,401 1,814,851Overhead Charged to Customers (21,429) (29,203) (33,843) (23,367) (56,940)

Total Operating Expenses 9,269,591$ 9,751,023$ 9,772,504$ 9,581,501$ 10,536,310$

$1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000

$10,000,000 $11,000,000 $12,000,000

FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14

Operating Expenses

Overall operating expenses increased by $954,809 in 13/14 fiscal year as follows:

An increase in cost of purchased water of $310,748 related to increases in CCWA and Department ofWater Resources (DWR) variable costs.

An increase in CCWA source of supply expenses of $254,615 was primarily a result of increased DWRcosts and additional deliveries.

An increase in depreciation and amortization expense of $123,450 due to depreciation on recentlycompleted capital projects.

An increase in general and administrative expenses of 4% or $77,630 related to increased insurance,facilities maintenance and water conservation expenses.

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Non-operating Income

Non-operating revenues consist of investment income and grant revenue. Non-operating expenses consist of interest expense.


Non-operating Revenues: Investment income 47,334$ 55,294$ 52,416$ 33,394$ 26,484$ Grant revenue - 1,913,241 54,761 255,105 24,790 Gain from litigation settlement 1,450,000 - - - -

Total Non-operating Revenues 1,497,334 1,968,535 107,177 288,499 51,274

Non-operating Expenses: Interest Expense 943,470 782,159 730,862 737,289 774,035

Total Non-operating Expenses 943,470 782,159 730,862 737,289 774,035

Net Non-operating Income (loss) 553,864$ 1,186,376$ (623,685)$ (448,790)$ (722,761)$

$(800,000) $(650,000) $(500,000) $(350,000) $(200,000) $(50,000) $100,000 $250,000 $400,000 $550,000 $700,000 $850,000

$1,000,000 $1,150,000 $1,300,000

FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14

Grant revenue and interest expense comprise the majority of net non-operating income. Grant income fluctuates based on availability of grant funds and the District’s ability to successfully compete for grant funds.

Interest expense decreased from FY 09/10 through FY 11/12 as a result of the issuance of 2010 Capital Appreciation Bonds and the related debt restructuring. Interest expense was consistent from FY 11/12 to FY 12/13. Interest expense increased from FY 12/13 to FY 13/14 due to a reduction in capitalized interest charged to construction in progress.

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SALARIES AND BENEFITS

The following table summarizes the amounts expended for salaries and benefits for the last five years:


Salaries 1,464,792$ 1,452,182$ 1,490,543$ 1,495,950$ 1,580,595$ Social Security 110,589 105,768 108,716 112,610 112,202 Employee Retirement-PERS 367,575 369,332 364,177 320,802 293,436 Employee Group Insurance 319,273 393,344 385,181 412,792 429,537 Deferred Compensation 26,217 23,951 25,510 28,204 28,906 Total 2,288,446$ 2,344,577$ 2,374,127$ 2,370,358$ 2,444,676$

$2,000,000 $2,050,000 $2,100,000 $2,150,000 $2,200,000 $2,250,000 $2,300,000 $2,350,000 $2,400,000 $2,450,000 $2,500,000

FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14

Salaries and Benefits

In FY 13/14, salaries and benefits expenses increased $74,318 from the prior year. Employee Retirement-PERS costs decreased $27,366 during the year due to the increase in the employee contribution rate. Employee Group Insurance increased by $16,745 as a result of employee plan changes. The salary increase of $84,645 includes an increase in field crew overtime/double-time, salary cost of living increases and filling two previously vacant positions.

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CAPITAL ASSETS

At June 30, 2014 the District had $36,674,775 invested in net capital assets, including construction in progress. This amount represents a decrease of $502,043 or 1.4% over the prior year. See Note 5 for a summary of the capital assets by asset type.

Capital expenditures for the last five fiscal years were as follows:


Capital Expenditures 1,622,782$ 3,998,369$ 1,289,799$ 1,071,945$ 1,020,186$

$- $500,000

$1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000

FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14

Capital Expenditures

The increase in capital expenditures in FY 10/11 was related to the El Carro Well Rehabilitation project, the Central Zone Main project, land purchase, and litigation costs associated with the Ortega Reservoir Cover Project. The decrease in capital expenditures in FY 11/12 was due to the El Carro Well Rehabilitation project and the Central Zone Main project winding down. The decrease in FY 12/13 was due to the completion of major projects in prior years. FY 13/14 was consistent with the prior year.

WATER SOLD AND SOURCE OF WATER SUPPLY

The following tables show how much water the District has sold over the past five fiscal years, and provides information regarding the source of the District’s water. One acre foot (AF) is equal to 325,900 gallons.

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WATER SOLD AND SOURCE OF WATER SUPPLY (Continued)

Water Sold (AF)

PublicFiscal Year Residential Commercial Authority Industrial Agricultural Total

FY 09/10 1,452 349 149 79 1,796 3,825 FY 10/11 1,407 356 135 71 1,633 3,602 FY 11/12 2,213 354 144 86 1,865 4,662 FY 12/13 2,175 381 151 89 2,163 4,959 FY 13/14 1,522 383 170 287 2,419 4,781

-

1,000

2,000

3,000

4,000

5,000

FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14

M&I

Agricultural

A combination of conservation and cooler conditions throughout the year contributed to the decrease in water sales in FY 10/11. The increase in FY 11/12 is attributed to dryer conditions which resulted in increased irrigation demand as well as the sale of 800 AF of water to neighboring water agencies. The increase in FY 12/13 is primarily due to the 680 AF of water sales to neighboring water agencies as well as an increase in demand of 277 AF. The decrease in FY 13/14 reflects a decrease in water sales to neighboring water agencies.

Source of Water Supply (AF)

CachumaFiscal Year Groundwater State Water Project Total

FY 09/10 1,307 - 2,876 4,183 FY 10/11 797 - 3,100 3,897 FY 11/12 1,174 - 3,149 4,323 FY 12/13 864 - 3,648 4,512 FY 13/14 754 846 3,490 5,090

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WATER SOLD AND SOURCE OF WATER SUPPLY (Continued)

Source of Water Supply (AF)

3,500 3,750 4,000 4,250 4,500 4,750 5,000 5,250 5,500

FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14

Sources of water supply include groundwater, Lake Cachuma and State Water. The FY 13/14 increase includes State Water deliveries of 846 AF.

BUDGET TO ACTUAL INFORMATION

The following table compares total annual revenues to budgeted amounts for the last five fiscal years:

2009/10BUDGET

$11,055,957

2009/10ACTUAL

$10,478,521

2010/11BUDGET

$10,949,315

2010/11ACTUAL

$10,321,394

2011/12BUDGET

$10,838,375

2011/12ACTUAL

$11,233,410

2012/13BUDGET

$10,830,870

2012/13ACTUAL

$12,037,633

2013/14BUDGET

$10,824,252

2013/14ACTUAL

$12,161,700

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14

BUDGET

ACTUAL

For FY 12/13 through FY 13/14 annual revenues were greater than budgeted revenues primarily due to higher than expected water sales revenue arising from extreme drought conditions.

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BUDGET TO ACTUAL INFORMATION (Continued)

The following table compares total annual expenses and debt service payments to budgeted amounts for the last five fiscal years:

2009/10BUDGET

$10,456,089

2009/10ACTUAL

$12,543,3162010/11

BUDGET$10,037,196

2010/11ACTUAL

$9,471,880

2011/12ACTUAL

$9,408,364

2011/12BUDGET

$9,835,616

2012/13BUDGET

$9,655,278

2012/13ACTUAL

$9,208,932

2013/14BUDGET

$10,012,988

2013/14ACTUAL

$10,166,057

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

TOTAL DEBTSERVICETOTAL EXPENSE

FY 09/10 actual annual expenses and debt service payments were approximately $2,087,227 higher than budgeted due primarily to the unbudgeted principal reduction on a State Revolving Fund loan, the proceeds for which came from the issuance of the Refunding Revenue (Capital Appreciation) Certificates of Participation, Series 2010A in March of 2010. For FY 10/11 through FY 12/13, actual annual expenses and debt service payments were approximately 5% under budgeted amount. In FY 13/14, actual annual expenses and debt service payments were approximately 1% over budgeted amount.

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(As Restated)2014 2013

ASSETS:

Current Assets:Cash and cash equivalents 9,551,671$ 8,589,431$ Accounts receivable:

Water sales 1,068,398 1,158,638 Other 172,458 294,618Grant receivable - 55,105

Annexation fees receivable 19,022 -Inventories:

Materials and meters 106,930 122,387 Water in storage 96,251 137,646

Prepaid expenses 3,470,626 3,257,358 Deposits with CCWA 922,135 921,045

Total current assets 15,407,491 14,536,228

Restricted Assets:Cash with fiscal agent:

Restricted for debt service 2,963,713 2,607,682Restricted for capital improvements 794 794

Certificates of Participation 198,587 198,098 Restricted for capital improvements 744,714 1,184,355

Total restricted assets 3,907,808 3,990,929

Long-term Assets:Property and equipment 55,654,217 54,551,746

Less: accumulated depreciation (19,418,716) (17,976,971)Construction in progress 439,274 602,043Capacity rights, net of amortization 6,998,505 7,277,992Intangible assets, net of amortization 164,917 178,054

Net long-term assets 43,838,197 44,632,864

Total assets 63,153,496 63,160,021

Deferred Outflow of Resources:Deferred loss on refunding (Note 15) 484,681 515,124

Total assets and deferred outflows of resources 63,638,177 63,675,145

CARPINTERIA VALLEY WATER DISTRICTSTATEMENT OF NET POSITION

June 30, 2014 and 2013

See accompanying notes- 14 -

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LIABILITIES:

Current Liabilities:Accounts payable 783,507$ 1,437,826$ Customer deposits 124,428 98,944Interest payable 346,627 353,610 Advances for construction 896,905 604,763 Compensated absences payable 337,899 297,651 Current portion of long term debt 603,513 581,542

Total current liabilities 3,092,879 3,374,336

Long-term Liabilities:Revenue Certificates of Participation Series 2006A 8,367,049 8,478,210Revenue Certificates of Participation Series 2010A 8,475,844 8,475,844Department of Water Resources loan contracts 11,883,372 12,281,785 Cater Treatment Plant Expansion Project financing agreement 2,166,919 2,346,040 Non-current portion of post-retirement health benefits payable 118,275 90,508

Total long-term liabilities 31,011,459 31,672,387

Total liabilities 34,104,338 35,046,723

NET POSITION:

Net investment in capital assets 6,122,173 6,396,644Restricted 2,963,713 2,607,682Unrestricted 20,447,953 19,624,096

Total net position 29,533,839$ 28,628,422$

CARPINTERIA VALLEY WATER DISTRICTSTATEMENT OF NET POSITION

June 30, 2014 and 2013


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Operating Revenues:Water sales 11,229,175$ 10,798,634$ Capital recovery fees 613,972 855,845Fire protection 228,640 221,131Other revenue 63,429 128,631

Total operating revenues 12,135,216 12,004,241

Operating Expenses:CCWA source of supply 3,066,986 2,812,371Cost of purchased water 665,351 354,603Cachuma operating expense 541,839 498,379Pumping expense 287,174 225,971Water treatment 1,006,344 949,594Transmission and distribution 931,836 899,177Customer accounting and service 75,315 47,448General and administrative 2,203,554 2,125,924Amortization 350,517 350,516Depreciation 1,464,334 1,340,885Overhead charged to customers (56,940) (23,367)

Total operating expenses 10,536,310 9,581,501

Operating income 1,598,906 2,422,740

Non-operating Revenues (Expenses):Grant revenue 24,790 255,105Investment income 26,484 33,394 Interest expense (774,035) (737,289)

Net non-operating income (expense) (722,761) (448,790)

Income before contributions 876,145 1,973,950

Capital Contributions 29,272 52,410

Change in net position 905,417 2,026,360

Net position, beginning of year, as previously stated - 27,173,002

Effect of prior period adjustments (Note 15) - (570,940)

Net position, beginning of year 28,628,422 26,602,062

Net position at end of year 29,533,839$ 28,628,422$

CARPINTERIA VALLEY WATER DISTRICTSTATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

For the years ended June 30, 2014 and 2013


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Cash Flows from Operating Activities:Cash received from customers 12,619,646$ 11,938,214$ Cash payments to suppliers for goods and services (7,942,200) (7,659,466) Cash payments to employees for services (1,521,974) (1,302,981)

Net cash and cash equivalents provided by operating activities 3,155,472 2,975,767

Cash Flows from Noncapital Financing Activities:Net increase in customer deposits 25,484 2,462

Net cash and cash equivalents provided by noncapital financing activities 25,484 2,462

Cash Flows from Capital and Related Financing Activities:Repayments of long-term debt (670,563) (648,606) Interest payments (760,891) (776,381) Capital assets purchased (918,867) (1,007,371) Investment in water facilities (57,895) (1,916,503) Grant revenue 79,895 200,000

Net cash and cash equivalents used by capital and related financing activities (2,328,321) (4,148,861)

Cash Flows from Investing Activities:Interest received 26,484 33,394

Net cash and cash equivalents provided by investing activities 26,484 33,394

Increase (decrease) in cash and cash equivalents 879,119 (1,137,238)

Cash and cash equivalents, beginning of year 12,580,360 13,717,598

Cash and cash equivalents, end of year 13,459,479$ 12,580,360$

CARPINTERIA VALLEY WATER DISTRICTSTATEMENT OF CASH FLOWS



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Cash and cash equivalents are reported in the balance sheet as follows:(As Restated)

2014 2013Unrestricted cash and cash equivalents 9,551,671$ 8,589,431$ Cash with fiscal agent, restricted for debt service 2,963,713 2,607,682 Cash with fiscal agent, restricted for capital improvements 794 794Restricted for capital improvements 744,714 1,184,355 Certificates of Participation 198,587 198,098

13,459,479$ 12,580,360$

Supplemental Schedule of Noncash Investing and Financing Activities:

Property in the amount of $29,272 and $52,410 was contributed by developers during the years ended June 30, 2014 and 2013, respectively.

CARPINTERIA VALLEY WATER DISTRICTSTATEMENT OF CASH FLOWS



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NOTES TO FINANCIAL STATEMENTS

- 19 -

Note 1 - Reporting Entity and Summary of Significant Accounting Policies

A) Reporting Entity

The Carpinteria Valley Water District (the “District”) (formerly known as Carpinteria CountyWater District) was incorporated on February 13, 1941 under authority of the CaliforniaCounty Water Districts Act. By contract dated April 17, 1953, the District entered into anagreement with the U.S. Bureau of Reclamation for the construction of a distribution system toserve approximately 96% of the District, thereby creating Improvement District #1. TheDistrict is governed by a Board of Directors consisting of five members elected from voters ofthe District.

B) Accounting Basis

The District reports its activities as an enterprise fund, which is used to account for operationswhere the intent of the District is that the costs of providing goods and services to the generalpublic on a continuing basis be financed or recovered primarily through user charges.Revenues and expenses are recognized on the accrual basis, as such, revenues are recognizedin the accounting period in which they are earned and expenses are recognized in the periodincurred.

An enterprise fund is accounted for on a cost of services or "capital maintenance"measurement focus. This means that all assets and liabilities (whether current or noncurrent)associated with the activity are included on the statement of net position.

The District distinguishes operating revenues and expenses from non-operating items.Operating revenues and expenses generally result from providing services and the producingand delivering of goods in connection with the District's principal ongoing operations. Theprincipal operating revenues of the District are charges to customers for water sales. Operatingexpenses of the District include the cost of sales and services, administrative expenses, anddepreciation on capital assets. All revenues and expenses not meeting this definition arereported as non-operating revenues and expenses.

C) Cash and Cash Equivalents

For purposes of the statement of cash flows, the District considers all highly liquidinvestments (including restricted assets) with a maturity period, at purchase, of three monthsor less to be cash equivalents.

D) Basis for Recording Accounts Receivable and Allowance for Doubtful Accounts

The District grants credit to its customers, substantially all of whom are residents andbusinesses in Carpinteria, California. The District charges doubtful accounts arising fromwater receivables to bad debt expense when it is probable that the accounts will beuncollectible.

E) Inventories

The District’s inventories are recorded at cost on the first-in, first-out basis.

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Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued)

F) Restricted Assets

These assets consist of cash and other monetary assets restricted by outside parties for variouspurposes.

G) Long Term Assets

Property, plant and equipment and intangible assets are valued at cost. Donated property isvalued at estimated fair value on the date donated. The assets, excluding land, are depreciatedusing the straight line method over estimated useful lives.

Estimated useful lives are:Transmission and distribution lines, wells 30 years Buildings, fire hydrants, meters and service connections, tanks and reservoirs 25 years Water treatment facilities, generalequipment and tools 20 years Corrosion control equipment 15 years Pumping equipment 10 years Office and automotive equipment 5 years Intangible assets 10-30 years

H) Interest Costs

Applicable interest charges incurred during construction of new facilities are capitalized asone of the elements of cost and are amortized over the asset's estimated useful life. All otherinterest costs are expensed as incurred.

I) Intangible Assets

Intangible assets consist of contract renegotiation costs and bond issuance costs. These costsare being amortized over a period ranging from 10 to 30 years.

J) Budgetary Procedures

The District prepares an annual budget which includes estimates of its principal sources ofrevenue to be received during the fiscal year, as well as estimated expenditures and reservesneeded for operation of District facilities.

K) Compensated Absences

The District's personnel policies provide for accumulation of vacation and sick leave.Liabilities for vacation and sick leave are recorded when benefits are earned. Cash payment ofunused vacation and sick leave is available to those qualified employees when retired orterminated.

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L) Concentration of Credit Risk

The District grants credit to its customers, substantially all of whom are residents andbusinesses of the Carpinteria Valley.

M) Construction Advances

Construction advances represent deposits received in advance of construction, which arerefundable if the applicable construction does not take place. Construction advances aretransferred to contributed capital when the applicable construction is completed.

N) Implementation of New Accounting Pronouncements

For the year ended June 30, 2014, the District implemented the following GovernmentalAccounting Standards Board (GASB) Pronouncements:

GASB Statement No. 65 – Items Previously Reported as Assets and Liabilities—anamendment of Concept Statement No. 4, Elements of Financial Statements. This statementamends or supersedes accounting and financial reporting standards to reclassify certain itemsthat were previously reported as assets and liabilities and recognizes them as deferred outflowsof resources or deferred inflows of resources. Due to the implementation of this statement,debt issuance costs were eliminated and are recognized as an expense in the period incurred.Accounting changes adopted to conform to the provisions of this statement should be appliedretroactively. The cumulative impact of the implementation of GASB 65 was a decrease of$543,285 and $570,940 on beginning net position for fiscal year ends June 30, 2013 and 2012,respectively, which is the amount of unamortized debt issuance costs. Additionally, theimplementation resulted in a reclassification of the deferred loss on refunding of debt from aliability to a deferred outflow of resources in the amount of $484,681 and $515,124 as of June30, 2014 and 2013, respectively.

The GASB Statements listed below will be implemented in future financial statements andwill be evaluated by the District to determine if they will have a material impact to thefinancial statements once effective.

GASB Statement No. 68 – Accounting and Financial Reporting for Pensions – An Amendmentof GASB Statement No. 27. The primary objective of this Statement is to improve accountingand financial reporting by state and local governments for pensions. This Statement resultsfrom a comprehensive review of the effectiveness of existing standards of accounting andfinancial reporting for pensions with regard to providing decision-useful information,supporting assessments of accountability and interperiod equity, and creating additionaltransparency. This Statement establishes a definition of a pension plan that reflects theprimary activities associated with the pension arrangement – determining pensions,accumulating and managing assets dedicated for pensions, and paying benefits to planmembers as they come due.

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N) Implementation of New Accounting Pronouncements (Continued)

In addition, this Statement details the recognition and disclosure requirements for employerswith liabilities to a defined benefit pension plan. The provisions of this Statement are effectivefor financial statements for fiscal years beginning after June 15, 2014. The District is currentlyevaluating the revised Statement and has not yet determined the impact on its financialstatements.

O) Deferred Outflows/Inflows of Resources

In June 2011, GASB issued Statement No. 63, Financial Reporting of Deferred Outflows ofResources, Deferred Inflows of Resources and Net Position. The Statement requires deferredoutflows of resources and deferred inflows of resources to be reported separately from assetsand liabilities.

The separate financial statement element, deferred outflows of resources, represents aconsumption of net position that applies to a future period(s) and so will not be recognized asan outflow of resources (expense/expenditure) until that time. Deferred outflows of resourcesare required to be presented separately after assets on the statement of net position. As a resultof GASB 65, Items Previously Reported as Assets and Liabilities, the District’s deferred losson refunding, which resulted from the difference in the carrying value of the refunded debt andits reacquisition price, was reclassified from a liability to a deferred outflow. See Note 15 foradditional information.

The separate financial statement element, deferred inflows of resources, represents anacquisition of net position that applies to a future period(s) and so will not be recognized as aninflow of resources (revenue) until that time. Deferred inflows of resources are required to bepresented separately after liabilities on the statement of net position. The District does nothave any type of these items as of June 30, 2014 and 2013.

P) Net Position

Net position represents the difference between assets and liabilities and is classified into threecomponents.

Net investment in capital assets, consists of capital assets, net of accumulated depreciation,reduced by the outstanding balances of any borrowings used for the acquisition, constructionor improvement of those assets. Net investment in capital assets excludes unspent debtproceeds.

Net position is reported as restricted when there are limitations imposed on their use eitherthrough the enabling legislation adopted by the District or through external restrictionsimposed by creditors, grantors or laws or regulations of other governments.

Unrestricted net position consists of net position that does not meet the definition of“restricted” or “net investment in capital assets.”

It is the District's policy to first apply restricted resources when expenses are incurred forpurposes for which both restricted and unrestricted resources are available.

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Q) Use of Estimates

The preparation of financial statements in conformity with generally accepted accountingprinciples requires management to make estimates and assumptions that affect the reportedamounts of assets and liabilities, disclosure of contingent assets and liabilities, and thereported amounts of revenues and expenses during the reporting period. Actual results coulddiffer from those estimates.

Note 2 - Cash and Investments

Investments are carried at fair value as determined by the external investment pool sponsor. On June 30, 2014 and 2013, the District had the following cash and investments on hand:

2014 2013Cash in banks and on hand 2,422,022$ 2,771,145$ Cash with fiscal agent 2,964,507 2,608,476Local Agency Investment Fund 7,874,363 7,002,641Local Agency Investment Fund- Certificates of Participation 198,587 198,098

Total cash and investments 13,459,479$ 12,580,360$

Investments Authorized by the District’s Investment Policy

The District’s investment policy only authorizes investment in the local government investment pool administered by the State of California (LAIF). The District’s investment policy generally limits deposits to the previous FDIC determined limit of $100,000. This limitation does not apply to LAIF or amounts held with fiscal agents. The District’s investment policy does not contain any specific provisions intended to limit the District’s exposure to interest rate risk or credit risk. Investments in LAIF are not rated by a national rating agency.

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 a combination of shorter term and longer term investments 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.

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Note 2 - Cash and Investments (Continued)

Information about the sensitivity of the fair values of the District’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the District’s investments by maturity as of June 30, 2014:

Carrying 12 Months 13-24 25-60 More thanInvestment Type Amount or Less Months Months 60 Months

Investments with fiscal agent 2,964,507$ 2,964,507$ -$ -$ -$ Local Agency Investment Fund 7,874,363 7,874,363 Local Agency Investment Fund-

Certificates of Participation 198,587 198,587

Total 11,037,457$ 11,037,457$ -$ -$ -$

Disclosures Relating to Credit Risk

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 rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by the California Government Code and the District’s investment policy, and the actual rating as of June 30, 2014 for each investment type.

Minimum ExemptCarrying Legal FromAmount Rating Disclosure AAA Aa Not Rated

Investments with fiscal agent 2,964,507$ N/A -$ 2,964,507$ -$ -$ Local Agency Investment Fund 7,874,363 N/A 7,874,363

Local Agency Investment Fund-Certificates of Participation 198,587 N/A 198,587

Total 11,037,457$ 8,072,950$ 2,964,507$ -$ -$

Rating as of Fiscal Year End

Concentration of Credit Risk

The investment policy of the District contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer that represent 5% or more of total District investments (other than investments guaranteed by the U.S. Government or investments in external investment pools).

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- 25 -

Note 2 - Cash and Investments (Continued)

Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The 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, other than the following provisions for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental 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 fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the District’s deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

None of the District’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts.

The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the District’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

Investment in State Investment Pool

The District is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code 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 basic financial statements at the amounts based upon the 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.

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- 26 -

Note 3 - Restricted Assets

Note 4 - Intangible Assets

The District’s intangible assets as of June 30, 2014 and 2013 consisted of:

(As Restated)

2014 2013Contract renegotiation costs:

Cachuma Project Authority, net of accumulatedamortization of $181,012 and $169,699 135,760$ 147,074$

Deferred expenses:Bureau of Reclamation Title Transfer, net of accumulated amortization of $16,407 and $14,584 29,157 30,980

164,917$ 178,054$

Estimated amortization expense is as follows for the five fiscal years ending June 30:

2015 13,136$ 2016 13,136 2017 13,136 2018 13,136 2019 13,136 Thereafter 99,237

164,917$

Restricted assets consisted of the following at June 30, 2014 and 2013:

2014 2013

Restricted for capital improvements $ 745,508 $ 1,185,149Restricted for capital improvements from the Certificates of Participation 198,587 198,098

Restricted for debt service payments 2,963,713 2,607,682

Total restricted assets $ 3,907,808 $ 3,990,929

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- 27 -

Note 5 - Property and Equipment

A schedule of changes in capital assets and depreciation for the fiscal year ended June 30, 2014, is shown below:

Balance Balance

June 30, June 30,

2013 Additions Disposals Transfers 2014

Capital assets, non-depreciable:

Land and land rights 1,034,008$ -$ -$ -$ 1,034,008$

Construction in progress 602,043 879,506 (1,042,275) 439,274

Total capital assets, non-depreciable 1,636,051 879,506 - (1,042,275) 1,473,282

Capital assets, depreciable/amortizable:

Pumping equipment 652,318 15,886 668,204

Transportation & distribution equipment 5,213,893 186,809 5,400,702

Meters & services 3,043,971 66,376 90,027 3,200,374

Hydrants 880,804 880,804

Corrosion control 45,885 45,885

Administration building 534,616 2,472 537,088

Maintenance center 281,460 281,460

Office equipment & furniture 830,544 1,500 832,044

Automotive equipment 555,954 (22,589) 1,421 534,786

Other equipment & tools 490,989 8,878 5,511 505,378

Wells 5,935,842 6,031 578,886 6,520,759

Tanks and reservoirs 437,522 40,043 477,565

Water treatment equipment 1,063,256 121,220 1,184,476

Facilities/grounds equipment 332,732 332,732

Distribution system 1,333,951 1,333,951

Storage tank 11,692,334 11,692,334

Headquarters well 3,108,971 3,108,971

Reservoir covers 17,082,696 17,082,696

Capacity rights 12,838,024 57,895 12,895,919

Total capital assets, depreciable/amortizable 66,355,762 140,680 (22,589) 1,042,275 67,516,128

Accumulated depreciation (17,976,971) (1,464,334) 22,589 - (19,418,716)

Accumulated amortization (5,560,032) (337,382) - - (5,897,414)

Net capital assets 44,454,810$ (781,530)$ -$ -$ 43,673,280$ Balance Balance

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Note 5 - Property and Equipment (Continued)

A schedule of changes in capital assets and depreciation for the fiscal year ended June 30, 2013, is shown below:

Balance Balance

June 30, June 30,

2012 Additions Disposals Transfers 2013

Capital assets, non-depreciable:

Land and land rights 1,034,008$ -$ -$ -$ 1,034,008$

Construction in progress 4,249,371 1,015,221 (4,662,549) 602,043

Total capital assets, non-depreciable 5,283,379 1,015,221 - (4,662,549) 1,636,051

Capital assets, depreciable/amortizable:

Pumping equipment 595,021 57,297 652,318

Transmission & distribution equipment 5,039,016 24,732 150,145 5,213,893

Meters & services 2,854,811 56,374 132,786 3,043,971

Hydrants 880,804 880,804

Corrosion control 45,885 45,885

Administration building 521,226 13,390 534,616

Maintenance center 281,460 281,460

Office equipment & furniture 818,907 5,763 5,874 830,544

Automotive equipment 500,812 55,142 555,954

Other equipment & tools 488,802 2,187 490,989

Wells 1,698,452 1,373 4,236,017 5,935,842

Tanks and reservoirs 420,713 16,809 437,522

Water treatment equipment 1,063,256 1,063,256

Facilities/grounds equipment 332,732 332,732

Distribution system 1,333,951 1,333,951

Storage tank 11,686,042 6,292 11,692,334

Headquarters well 3,108,971 3,108,971

Reservoir covers 17,078,777 3,919 17,082,696

Capacity rights 10,921,521 1,916,503 12,838,024

Total capital assets, depreciable/amortizable 59,671,159 2,022,054 - 4,662,549 66,355,762

Accumulated depreciation (16,636,086) (1,340,885) - - (17,976,971)

Accumulated amortization (5,222,649) (337,383) - - (5,560,032)

Net capital assets 43,095,803$ 1,359,007$ -$ -$ 44,454,810$

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Note 6 - Long-Term Debt

Long-term debt of the District is as follows:

Balance BalanceJune 30, June 30,

2013 Additions Retirements 2014

Series 2006A Certificates of Participation 8,660,000$ -$ (105,000)$ 8,555,000$ Unamortized bond discount (76,790) 3,839 (72,951) Total Series 2006A Certificates of Participation 8,583,210 - (101,161) 8,482,049

Series 2010A Certificates of Participation 8,475,844 8,475,844 Total Series 2006A Certificates of Participation 8,475,844 - - 8,475,844

Department of Water Resources Loan Contracts 12,670,371 (388,586) 12,281,785

Cater Treatment Plant Financing Agreement 2,433,996 (176,977) 2,257,019

Long-term debt 32,163,421$ -$ (666,724)$ 31,496,697$

A) Revenue Certificates of Participation

Series 2006A:

In June 2006, the District issued the Refunding Revenue Certificates of Participation, Series2006A (“2006A COPs”) in the amount of $10,025,000 with interest rates ranging from 3.625%to 4.50%. The Certificates were executed and delivered to refund the $9,015,000 outstandingaggregate principal amount of Series 2000 Revenue Certificates of Participation, and to pay forthe costs to reconstruct the existing El Carro well.

In accordance with District’s refunding plan, $8,835,290 was deposited with an escrow agent toprovide for payment when due of all interest with respect to the 2000 Refunded Certificates onand prior to July 1, 2010 and to pay the prepayment price on July 1, 2010 of the 2000 RefundedCertificates maturing after July 1, 2010. On July 1, 2010 the final payment from the escrowaccount was made. The refunding resulted in an economic gain of approximately $883,000 anddecreased total debt service payments by approximately $772,000, excluding amounts related toservicing of the $1,000,000 to be applied to El Carro well.

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Note 6 - Long-Term Debt (Continued)

A) Revenue Certificates of Participation (Continued)

Series 2010A:

In March 2010, the District issued the Refunding Revenue (Capital Appreciation) Certificates of Participation, Series 2010A (“2010A COPs”) in the amount of $8,475,844 with interest rates ranging from 5.75% to 6.86%. The Certificates were executed and delivered 1) to refund a portion of the outstanding aggregate principal amount of the 2006A COPs, constituting a portion of the 2006A COPs maturing on July 1, 2010 and each July 1 thereafter through July 1, 2015, inclusive, 2) to refund a portion of the District’s obligations under the Safe Drinking Water State Revolving Fund Contract #SRF99CX125 maturing on July 1, 2010 and each January and July 1 thereafter through July 1, 2017, inclusive, and 3) to fund certain improvements to the City of Santa Barbara’s Cater Water Treatment Plant which serves the District.

In accordance with District’s refunding plan, $1,079,808 was deposited with an escrow agent to provide for payment when due (through July 2015) of all principal and interest with respect to the 2006A Refunded Certificates. The total payments made on the 2006A Refunded Certificates from escrow funds will be $1,000,000 in principal and $142,800 in interest. The refunding resulted in increased total debt service payments from $1,142,800 to $3,300,000, including only amounts related to the 2006A Refunded Certificates. This increased cash flow created an economic loss of approximately $133,052 when discounted at the 2010A COPs’ effective interest rate of 6.61769%. At June 30, 2014 there was $440,000 of defeased Series 2006A Refunded Certificates outstanding, to be paid from escrow funds.

Total annual requirements to amortize the Series 2006A COPs are as follows:

FiscalYear End Principal Interest Total

2015 115,000$ 382,288$ 497,288$ 2016 110,000 377,788 487,788 2017 355,000 367,600 722,600 2018 370,000 351,288 721,288 2019 385,000 334,781 719,781 2020-2024 2,190,000 1,403,106 3,593,106 2025-2029 2,710,000 858,444 3,568,444 2030-2033 2,320,000 206,044 2,526,044

8,555,000$ 4,281,339$ 12,836,339$

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A) Revenue Certificates of Participation (Continued)

Total annual requirements to amortize the Series 2010A COPs are as follows:


2015 -$ -$ -$ 20162017201820192020-2024 864,254 925,746 1,790,000 2025-2029 2,831,582 4,973,417 7,804,999 2030-2034 3,418,381 10,286,619 13,705,000 2035-2036 1,361,627 5,848,374 7,210,001

8,475,844$ 22,034,156$ 30,510,000$

B) Safe Drinking Water State Revolving Fund Contracts

Contract # SRF99CX125:

The Safe Drinking Water State Revolving Fund Contract was issued February 9, 2004. Thepurpose of the loan was to assist in financing various capital improvements which will enablethe District to meet certain safe drinking water standards. The contract provides for a 20 yearloan bearing an interest rate of approximately 2.5%. The District will be required to maintain areserve fund equal to two semi-annual loan payments during the first ten years of the repaymentperiod. The loan requires semi-annual payments of interest and principal due on January 1 andJuly 1 of each year commencing after the completion of the projects.

Contract # SRF99CX121:

The Safe Drinking Water State Revolving Fund Contract was issued March 19, 2004. Thepurpose of the loan was to assist in financing various capital improvements which will enablethe District to meet certain safe drinking water standards. The contract provides for a 20 yearloan bearing an interest rate of approximately 2.5%. This loan was issued to both this Districtand the Montecito Water District in order to finance the capital improvements to the OrtegaReservoir. Each District will be legally liable for half of the joint loan proceeds. CarpinteriaValley Water District’s portion of the principal balance was $9,236,658, and requires semi-annual payments of interest and principal due on January 1 and July 1 of each year commencingin July 2010. Interest payments during the construction period were due semi-annually based onthe funds disbursed. The District will be required to maintain a reserve fund equal to two semi-annual loan payments during the first ten years of the repayment period.

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B) Safe Drinking Water State Revolving Fund Contracts (Continued)

The annual estimated requirements to amortize the Safe Drinking Water State Revolving FundContract #SRF99CX125 are as follows:


2015 -$ 114,172 114,172$ 2016 114,172 114,172 2017 114,172 114,172 2018 374,918 109,907 484,825 2019 418,210 102,139 520,349 2020-2024 2,255,148 346,593 2,601,741 2025-2027 1,494,626 66,419 1,561,045

Total 4,542,902$ 967,574$ 5,510,476$

The annual estimated requirements for the District to amortize the Safe Drinking Water State Revolving Fund Contract #SRF99CX121 are as follows:


2015 398,413$ 192,006$ 590,419$ 2016 408,489 181,930 590,419 2017 418,820 171,599 590,419 2018 429,411 161,008 590,419 2019 440,271 150,148 590,419 2020-2024 2,374,113 577,983 2,952,096 2025-2029 2,689,892 262,205 2,952,097 2030 579,474 10,945 590,419

Total 7,738,883$ 1,707,824$ 9,446,707$

C) Cater Treatment Plant Expansion Project Financing Agreement

The District entered into a financing agreement with the City of Santa Barbara dated February27, 2002, which requires the District to pay twenty percent of a loan obligation between the Cityof Santa Barbara and the California Drinking Water State Revolving Fund. The loan proceedswere used to finance certain improvements to the Cater Treatment Plant in order to meet newwater quality standards imposed on public agencies. The loan provides for a 20 year loanamortization maturing on July 1, 2025, bearing an interest rate of approximately 2.5%. Theimprovements were completed in January 2005 and the District’s portion of the loan in theamount of $3,580,170 was recorded on the statement of net position at June 30, 2005.

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C) Cater Treatment Plant Expansion Project Financing Agreement (Continued)

The District is required to make semi-annual payments of interest and principal in the amount of$114,425 payable to the City of Santa Barbara on December 15th and June 15th each year.

The annual requirements to amortize the Cater Treatment Plant Expansion financing agreementare as follows:


2015 90,100$ 27,487$ 117,587$ 2016 183,491 51,684 235,175 2107 187,972 47,203 235,175 2018 192,566 42,609 235,175 2019 197,275 37,899 235,174 2020-2024 1,061,302 114,571 1,175,873 2025-2026 344,313 8,450 352,763

Total 2,257,019$ 329,903$ 2,586,922$

Note 7 - Supplemental Schedule of the Statement of Cash Flows

The following is a reconciliation of operating income to net cash provided by operating activities: (As Restated)

2014 2013Cash Flows from Operating Activities:

Operating income 1,598,906$ 2,422,740$ Adjustments to reconcile operating income to net cash provided by operating activities:Depreciation 1,464,334 1,340,885 Amortization 350,517 350,516 (Increase) decrease in:

Accounts receivable 193,383 158,391 Inventories 56,852 2,480 Prepaid expenses (213,268) (324,582) Deposit with CCWA (1,090) 4,184

Increase (decrease) in:Accounts payable (654,319) (820,894) Compensated absences payable 40,248 44,264 Accrued post retirement benefit 27,767 26,385 Advances for construction 292,142 (228,602)

Net cash and cash equivalents provided by operating activities 3,155,472$ 2,975,767$

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Note 8 - Defined Benefit Pension Plan

The District contributes to the California Public Employee’s Retirement System (PERS), a cost-sharing multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members and their beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and local ordinance. Copies of PERS' annual financial report may be obtained from its Executive Office, 400 P Street, Sacramento, CA 95814.

Funding Policy:

Participants are required to contribute 7% of their covered salary, excluding the first $133.33 per month since the employees are also covered by Social Security. The District makes a portion of the employee required contribution on their behalf based on hire date. The District is required to contribute at an actuarially determined rate: the rate was 19.537% of covered salaries for the year ended June 30, 2014.

The contribution requirements of plan members and the District are established and may be amended by PERS. The District’s contribution for the years ended June 30, 2014 and 2013 was $299,870 and $320,802, respectively.

Annual Pension Cost:

The following is a summary of the actuarial assumptions and methods:

Valuation Date June 30, 2011Actuarial Cost Method Entry Age Normal Cost MethodAmortization Method Level Percent of PayrollAverage Remaining Period 20 Years as of the Valuation DateAsset Valuation Method 15 Year Smoothed MarketActuarial Assumptions

Investment Rate of Return 7.50% (net of administrative expenses)Projected Salary Increases 3.30% to 14.20% depending on Age, Service, and type

of employmentInflation 2.75%Payroll Growth 3.00%Individual Salary Growth A merit scale varying by duration of employment coupled

with an assumed annual inflation growth of 2.75% and an annual production growth of 0.25%

Initial unfunded liabilities are amortized over a closed period that depends on the plan’s date of entry into CalPERS. Subsequent plan amendments are amortized as a level percentage of pay over a closed 20-year period. Gains and losses that occur in the operation of the plan are amortized over a 30 year rolling period.

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Note 8 - Defined Benefit Pension Plan (Continued)

If the plan’s accrued liability exceeds the actuarial value of plan assets, then the amortization payment on the total unfunded liability may not be lower than the payment calculated over a 30 year amortization period.

Retirement Plan – Three Year Trend Information

Annual Percentage Net Fiscal Year Pension of APC Pension

Ending Cost (APC) Contributed Obligation06/30/12 260,226 100% - 06/30/13 234,615 100% - 06/30/14 259,530 100% -


The schedule for funding progress below represents the recent history of the risk pool’s actuarial value of assets accrued liability, their relationship, and the relationship of the unfunded liability.

(A) (B) (C) (D) (E) (F)UL as a

Actuarial Unfunded Funded Annual % of Valuation Accrued Value of Liability Ratio Covered Payroll

Date Liability Assets (A) - (B) (B)/(A) Payroll (C)/(E)

6/30/2010 3,309,064,934$ 2,946,408,106$ 362,656,828$ 89.0% 748,401,352$ 48.5%6/30/2011 3,619,835,876$ 3,203,214,899$ 416,620,977$ 88.5% 759,263,518$ 54.9%6/30/2012 4,175,139,166$ 3,686,598,343$ 488,540,823$ 88.3% 757,045,663$ 64.5%

At the time of joining a risk pool, a side fund was created to account for the difference between the funded status of the pool and the funded status of the District’s plan. The District’s required contributions are increased by the amortization of this side fund. The District’s side fund as of the June 30, 2012 valuation was ($1,324,950) and the remaining amortization period was 11 years at a rate of 7.50%.

Note 9 - Post-Employment Health Care Benefits

Plan Description

The District provides retiree medical, dental, vision, and prescription drug coverage to current and future eligible retirees and their spouse. Under the Plan, retired employees who attain age 60 with at least 20 years of service are eligible to receive benefits. Spouses may be covered with certain limitations.

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Note 9 - Post-Employment Health Care Benefits (Continued)

Funding Policy

The contribution requirements of plan members and the District are established and may be amended by the District and its board of directors. The required contribution is based on projected pay-as-you-go financing requirements.

The District pays 100% of the premium for pre-65 retirees, and contributes up to 5% of a retiree’s PERS benefit toward the cost of medical coverage for post-65 retirees.

Annual OPEB Cost and Net OPEB Obligation

The District’s annual OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the District’s annual OPEB cost for the year ended June 30, 2014, the amount actually contributed to the plan, and the changes in the District’s net OPEB obligation for plan benefits:

Annual OPEB Cost and Net OPEB Obligation (Continued)

Annual required contribution 45,748$ Annual OPEB cost (expense) 45,748

Contributions made (17,981) Increase in net OPEB 27,767

Net OPEB obligation - beginning of year 90,508 Net OPEB obligation - end of year 118,275$

The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the fiscal year 2014 and the two preceding fiscal years were as follows:

Annual Percentage Net Fiscal Year OPEB Annual OPEB OPEB

Ending Cost Cost Contributed Obligation06/30/12 40,640$ 45% 64,123$ 06/30/13 43,673$ 40% 90,508$ 06/30/14 45,748$ 39% 118,275$

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Funded Status and Funding Progress

As of June 30, 2014, based on the last valuation performed the actuarial accrued liability for benefits was $525,049, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $1,557,756, and the ratio of the unfunded actuarial accrued liability to the covered payroll was 34%.

The projection of future benefit payments for an ongoing plan involves estimates of the value of reported amounts and assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress is presented on the following page, and presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

Actuarial Methods and Assumptions

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

The following simplifying assumptions were made:

Valuation Date July 1, 2012Actuarial Cost Method Projected Unit CreditAmortization Method Level Percent of PayrollAmortization Period for UAAL Open period of 30.0 yearsActuarial Assumptions

Rate of return on investments 4.00% Expected rate of return on plan assets 7.50% Payroll growth 3.00% Inflation 2.75% Healthcare cost trend rate 5.00%-7.00%

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The schedule for funding progress below represents the recent history of the actuarial value of assets, accrued liability, their relationship, and the relationship of the unfunded liability.

The funded status of the plan as of June 30, 2014 was as follows:

Actuarial Accrued UAAL as a

Actuarial Liability (AAL)- Unfunded PercentageActuarial Value of Simplified AAL Funded Covered of CoveredValuation Assets Entry Age (UAAL) Ratio Payroll Payroll

Date (a) (b) (b -a) (a/b) (c) ((b-a)/c)7/1/2012 - 471,449 471,449 0% 1,388,173 34%7/1/2012 - 497,496 497,496 0% 1,468,334 34%7/1/2012 - 525,049 525,049 0% 1,557,756 34%

Note 10 - Deferred Compensation Plan

The District offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan permits participating employees to defer a portion of their salary until future years. The District matches employee contributions up to 2.5% of a contributing employee’s annual salary. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency.

On June 8, 1997 the District amended the plan in accordance with the provisions of IRC Section 457(g). On that date, assets of the plan were placed in trust for the exclusive benefit of participants and their beneficiaries. The requirements of that IRC Section prescribes that the District no longer owns the amounts deferred by employees, including the related income on those amounts. Accordingly, the assets and the liability for the compensation deferred by plan participants, including earnings on plan assets, are not included in the District’s financial statements. Contributions to the Plan for the years ended June 30, 2014 and 2013 were $28,906 and $28,204 respectively.

Note 11 - Lease Obligations

The District has lease obligations for two of its well sites.

The High School Well lease, dated March 1, 1989 and amended April 23, 2008 is for a term of thirty years, terminating July 1, 2030. There are no lease payments associated with this lease. In return the District provides the School District with the Irrigation water rate for specific water accounts.

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Note 11 - Lease Obligations (Continued)

During 2011, the District purchased a permanent easement from the City for the land that contains the El Carro Well. Prior to the purchase of the easement, the District had a lease with the City, dated November 16, 1990, for the useful life of the well. As “in-lieu of rent” for the first twenty year period, the District installed, at a cost of $40,085, water line and fire hydrant facilities to accommodate future development of the property adjoining the well site.

Note 12 - Cachuma Project Authority

This joint exercise of powers authority was created by the participating agencies for the purpose of renegotiating with the United States Bureau of Reclamation (USBR) the contract for the operation of the Cachuma reservoir. Through the authority, the agencies collectively issued revenue bonds to refinance certain obligations each agency had incurred to finance its share of the expansion of the shared Water Treatment Plant. The District’s share of these revenue bonds is shown as a liability on the statement of net position.

The Cachuma Project Authority successfully renegotiated a contract with the USBR. The Authority, effective September 30, 1996 merged into the Cachuma Operations and Maintenance Board (COMB), which is responsible for all operational aspects of the Cachuma reservoir. All assets and liabilities of the Authority were transferred to COMB. The District continues to contribute its share of the operating expenses. The accumulated contract renegotiation costs are being amortized over the term of the new contract, which is twenty-five years.

Note 13 - Joint Powers Insurance Authority

The District participates in the property and liability program organized by the Association of California Water Agencies/Joint Powers Insurance Authority ("ACWA/JPIA"). ACWA/JPIA is a Joint Powers Authority created to provide a self-insurance program to water agencies in the State of California. The ACWA/JPIA is not a component unit of the District for financial reporting purposes, as explained below.

ACWA/JPIA provides liability, property and workers' compensation insurance for approximately 265 water agencies for losses in excess of the member districts' specified self-insurance retention levels. Individual claims (and aggregate public liability and property claims) in excess of specified levels are covered by excess insurance policies purchased from commercial carriers. ACWA/JPIA is governed by a separate board comprised of members from participating districts. The board controls the operations of ACWA/JPIA, including selection of management and approval of operating budgets, independent of any influence by the members beyond their representation on the board. Each member shares surpluses and deficiencies proportionately to its participation in ACWA/JPIA.

Based on financial information at September 30, 2013, ACWA/JPIA had total assets, liabilities and net position of $194,823,604, $100,307,836 and $94,515,768, respectively. The District paid premiums of $66,379 and $69,452 to ACWA/JPIA for property and liability insurance, and $59,021 and $25,189 for workers’ compensation during the years ended June 30, 2014 and 2013, respectively.

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Note 14 - Commitments and Contingencies

A) Central Coast Water Authority

In 1991, the voters of the District elected to participate in the State Water Project (SWP). As aresult, the District joined in the formation of the Central Coast Water Authority (CCWA) inAugust 1991. The purpose of the Central Coast Water Authority is to provide for thefinancing, construction, operation, and maintenance of certain local (non-state owned)facilities required to deliver water from the SWP to certain water purveyors and users in SantaBarbara County.

Each project participant, including the District, has entered into a Water Supply Agreement toprovide for the development, financing, construction, operation and maintenance of theCCWA Project. The purpose of the Water Supply Agreement is to assist in carrying out thepurposes of CCWA with respect to the CCWA Project by:

1) requiring CCWA to sell, and the project participants to buy, a specified amount of waterfrom CCWA ("take or pay"); and

2) assigning the Santa Barbara project participant's entitlement rights in the State Waterproject to CCWA.

Although the District does have an ongoing financial interest pursuant to the Water Supply Agreement between the District and CCWA, the District does not have an equity interest as defined by GASB Code Sec. J50.105.

Each project participant is required to pay to CCWA an amount equal to its share of the total cost of "fixed project costs" and certain other costs in the proportion established in the Water Supply Agreement. This includes the project participant's share of payments to the State Department of Water Resources (DWR) under the State Water Supply Contract (including capital, operation, maintenance, power and replacement costs of the DWR facilities) debt service on CCWA bonds and all CCWA operating and administrative costs.

Each project participant is required to make payments under its Water Supply Agreement solely from the revenues of its water system. Each project participant has agreed in its Water Supply Agreement to fix, prescribe and collect rates and charges for its water system which will be at least sufficient to yield each fiscal year net revenues equal to 125% of the sum of (1) the payment required pursuant to the Water Supply Agreement, and (2) debt service on any existing participant obligation for which revenues are also pledged.

CCWA is composed of eight members, all of which are public agencies. CCWA was organized and exists under a joint exercise of power agreement among the various participating public agencies. The Board of Directors is made up of one representative from each participating entity. Votes on the Board are approximately apportioned between the entities based upon each entity’s allocation of State water entitlement. The Carpinteria Valley Water District share of the project, based upon number of acre-feet of water, is 10.487%.

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Note 14 - Commitments and Contingencies (Continued)

A) Central Coast Water Authority (Continued)

Operating and capital expenses are allocated among the members based upon various formulasrecognizing the benefits of the various project components to each member.

On October 1, 1992, CCWA sold $177,120,000 in revenue bonds at a true interest cost of6.64% to enable CCWA to finance a portion of the costs of constructing a water treatmentplant to treat State water for use by various participating water purveyors and users withinSanta Barbara and San Luis Obispo Counties, a transmission system to deliver such water tothe participating water purveyors and users within Santa Barbara County, and certain localimprovements to the water systems of some of the participating purveyors.

In November 1996, CCWA sold $198,015,000 of revenue bonds at a true interest cost of5.55% to defease CCWA’s $177,120,000 1992 revenue bonds and to pay certain costs ofissuing the bonds. The 1996 bonds were issued in two series: Series A of $173,015,000 andSeries B of $25,000,000. The Series B bonds are subject to mandatory redemption fromamounts transferred from the Construction Fund and the Reserve Fund upon completion of theconstruction of CCWA facilities.

In August 2006, CCWA issued the Series 2006A Refunding Revenue Bonds for $123,190,000at a true interest cost of 4.24% to defease the 1996 Revenue Bonds. A portion of the bondproceeds together with other funds were placed into an escrow account invested in securitieswhich will provide sufficient funds to pay the regularly scheduled principal of and interest onthe refunded bonds on October 1, 2006, and to pay on October 3, 2006 the principal of andaccrued interest to the date of redemption, and redemption premium, if any, on the refundedbonds maturing on and after October 1, 2006.

The Carpinteria Valley Water District estimated minimum State water payments for the nextfive fiscal years are summarized below:

Fiscal Year Ending June 30, Fixed Costs Variable Costs Debt Service Total

2015 1,970,175$ 212,974$ 1,158,974$ 3,342,123$ 2016 1,962,694 71,029 1,158,355 3,192,078 2017 1,987,387 70,104 1,157,270 3,214,761 2018 1,973,994 72,207 1,160,708 3,206,909 2019 1,910,075 74,374 1,155,532 3,139,981 Thereafter (through 2035) 34,228,543 - 3,469,635 37,698,178

Total 44,032,868$ 500,688$ 9,260,474$ 53,794,030$

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Note 14 - Commitments and Contingencies (Continued)

B) Bradbury Dam

The District, as a member of the Cachuma Operations and Maintenance Board (COMB), isresponsible for a portion of costs associated with certain capital improvements to the BradburyDam. The improvements are required to meet certain earthquake and seismic safety standardsimposed by public agencies. Pursuant the “Bradbury Dam SOD ACT Repayment Agreement”,between COMB and the Bureau of Reclamation, the District will be required to make annualpayments of $18,037 commencing October 2002 through 2015, annual payments of $28,649commencing October 2016 through 2026 and annual payments of $10,612 commencingOctober 2027 through 2051 to finance the project.

The Districts future obligations are as follows:

2015 $ 18,0372016 18,0372017 28,6492018 28,6492019 28,649Thereafter 494,492

C) Cater Advanced Treatment Project

The City of Santa Barbara made improvements to the Cater Treatment Plant with a totalestimated cost of approximately $20,000,000. The project was completed during 2014 andwill begin amortization in the next fiscal year. As of the date of these financial statements, theDistrict’s portion of the expenditures incurred amounted to approximately $4,299,000.

D) Ortega Reservoir

The Ortega Reservoir has construction defects to its basin. Although the reservoir is not acapital asset of the District, the District, along with Montecito Water District, will be requiredto pay for the repairs, which may be significant. The total cost of the repairs cannot beestimated.

Note 15 - Prior Period Adjustment

Note 1 describes the GASB pronouncements the District is adopting for this and the prior fiscal years. There is a financial impact for the adoption of GASB Statement No. 65, “Items Previously Reported as Assets and Liabilities”.

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Note 15 - Prior Period Adjustment (Continued)

Bond Issuance Costs

Implementation of GASB Statement 65 recognizes cost of issuance as an expense therefore the adoption of this statement resulted in the write off of the bond issuance costs as of the fiscal year ended June 30, 2012. The effect of this adjustment was to decrease July 1, 2012 net position by $570,940, decrease bond issuance costs of $543,285 at June 30, 2013 and decrease amortization by $27,655 for the year ended June 30, 2013.

Deferred Loss on Refunding

Implementation of GASB Statement 65 recognizes the loss on refunding of debt as a deferred outflow of resources therefore the adoption of this statement resulted in a change to total assets and liabilities as of the fiscal year ended June 30, 2013. Total assets and total liabilities were increased by $484,681 and $515,124 as of June 30, 2014 and 2013, respectively due to this reclassification.

The following table presents the effect of the prior period adjustment on the June 30, 2013 financial statement balances.

(As Restated)2013

Total assets, as previously stated 63,703,306$ Decrease in bond issuance costs (543,285) Total assets, restated 63,160,021 Increase in deferred loss on refunding 515,124Total assets and deferred outflows of resources, restated 63,675,145$

Total liabilities, as previously stated 34,531,599$ Deferred loss on refunding 515,124Total liabilities, restated 35,046,723$

Net position, beginning of the year, as previously stated 27,173,002$ Decrease in net position due to bond issuance cost (570,940) Net position, beginning of the year, restated 26,602,062$

Note 16 - Subsequent Events

Subsequent events have been evaluated through November 18, 2014, the date that the financial statements were available to be issued.

49

Laurie

Rectangle

50

CARINTERIA VALLEY WATER DISTRICT STATISTICAL SECTION

UNAUDITED

This part of the District’s comprehensive annual financial report presents detailed information as

a context for understanding what the information in the financial statements, note disclosures, and

required supplementary information says about the District’s overall financial health.

TABLE OF CONTENTS

Page

Financial Trends 51-55

These schedules contain information to help the reader understand how the

District’s financial performance and well-being have changed over time.

Revenue Capacity 56-58

These schedules contain information to help the reader assess the

District’s most significant own-source revenue, water sales.

Debt Capacity 59-60

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 in the future.

Demographic Information 61

This schedule offers demographic indicators to help the reader understand

the environment within which the District’s financial activities take place.

Operating Information 62

This schedule contains service and infrastructure data to help the reader

understand how the information in the District’s financial report relates to

the service the District provides.

2004-05 1

2005-06 1

2006-07 1

2007-08 1

2008-09 1

Changes in net position

Operating revenues (see Schedule 2) $ 8,332,471 9,187,647 10,112,892 11,274,957 10,778,110

Operating expenses (see Schedule 3) (6,567,466) (6,837,464) (6,932,127) (7,427,172) (8,053,240)

Depreciation and amortization (946,981) (1,144,840) (1,153,298) (1,356,869) (1,828,233)

Operating income (loss) 818,024 1,205,343 2,027,467 2,490,916 896,637

Non-operating revenues (expenses)

Gain from litigation settlement - - - - -

Grant revenue - - - - -

Debt issuance costs - (294,202) - - -

Interest income 84,544 359,150 450,754 369,155 200,654

Interest expense (44,794) (308,660) (440,426) (397,807) (978,503)

Net non-operating revenues (expenses) 39,750 (243,712) 10,328 (28,652) (777,849)

Net income before capital contributions 857,774 961,631 2,037,795 2,462,264 118,788

Capital contributions 49,627 120,141 32,368 67,239 64,195

Increase (decrease) in net position $ 907,401 1,081,772 2,070,163 2,529,503 182,983

Net assets by components

Net Investment in capital assets $ 6,218,794 9,288,901 8,008,341 9,406,119 9,109,491

Restricted 8,304,337 6,187,732 2,597,982 1,364,636 1,430,058

Unrestricted 2,333,471 2,461,741 9,402,214 11,767,285 12,181,474

Total net assets $ 16,856,602 17,938,374 20,008,537 22,538,040 22,721,023

1. Restated

Fiscal Year


Changes in Net Position and Net Position by Component

Last Ten Fiscal Years

Unaudited

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Changes in Net Position

51

Schedule 1

(continued)

2009-10 1

2010-11 1

2011-12 1

2012-13 1

2013-14

10,431,187 10,266,100 11,180,994 12,004,241 12,135,216

(7,304,093) (7,913,220) (7,995,513) (7,890,100) (8,721,459)

(1,965,499) (1,837,807) (1,776,993) (1,691,401) (1,814,851)

1,161,595 515,073 1,408,488 2,422,740 1,598,906

1,450,000 - - - -

- 1,913,241 54,761 255,105 24,790

(376,036) - - - -

47,334 55,294 52,416 33,394 26,484

(943,470) (782,159) (730,862) (737,289) (774,035)

177,828 1,186,376 (623,685) (448,790) (722,761)

1,339,423 1,701,449 784,803 1,973,950 876,145

12,995 31,095 11,274 52,410 29,272

1,352,418 1,732,544 796,077 2,026,360 905,417

9,095,340 11,656,723 11,124,566 6,396,644 6,122,173

1,405,686 1,632,053 2,109,456 2,607,682 2,963,713

13,572,415 12,517,209 13,368,040 19,624,096 20,447,953

24,073,441 25,805,985 26,602,062 28,628,422 29,533,839

Fiscal Year

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Changes in Net Position by Component

Net Investmetnt in Capital Assets Restricted Unrestricted

52

Fiscal Year Water Sales

Monthly

Charge

Capital

Recovery

Fees

Fire

Protection

Other

Revenue

Total

Operating

Revenue

2005 $ 7,903,146 $ $ 53,680 $ 202,341 $ 173,304 $ 8,332,471

2006 8,816,612 125,976 212,463 32,596 9,187,647

2007 9,800,025 73,607 196,126 43,134 10,112,892

2008 10,529,619 523,952 200,322 21,064 11,274,957

2009 4,644,277 5,749,324 111,880 227,403 45,226 10,778,110

2010 4,266,070 5,823,866 112,454 184,838 43,959 10,431,187

2011 4,052,622 5,788,269 77,787 224,061 123,361 10,266,100

2012 4,381,982 5,971,245 496,558 221,989 109,220 11,180,994

2013 4,789,302 6,009,332 855,845 221,131 128,631 12,004,241

2014 5,053,939 6,175,236 613,972 228,640 63,429 12,135,216

1. Monthly charges were included in Water Sales until fiscal year 2009.

Schedule 2


Operating Revenues by Source


-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Water Sales Monthly Charge Capital Recovery Fees Fire Protection Other Revenue

53

Fiscal Year

Source of

Supply 1

Purchased

Water

Water

Treatment

Transmission

& Distribution

General &

Administrative

Depreciation and

Amortization 2

Total

Operating

Expenses

2005 $ 2,862,036 $ 360,351 $ 222,072 $ 1,555,481 $ 1,567,526 $ 946,981 $ 7,514,447

2006 2,738,889 481,046 661,977 1,281,024 1,674,528 1,144,840 7,982,304

2007 2,812,677 271,629 684,864 1,413,658 1,749,299 1,153,298 8,085,425

2008 2,752,258 470,031 801,557 1,496,766 1,906,560 1,356,869 8,784,041

2009 2,684,059 412,956 942,202 1,766,844 2,247,179 1,828,233 9,881,473

2010 2,840,261 275,957 670,103 1,355,417 2,162,355 1,965,500 9,269,593

2011 2,971,245 414,717 935,478 1,386,931 2,204,849 1,837,805 9,751,025

2012 2,978,486 323,548 944,251 1,622,755 2,126,473 1,776,993 9,772,506

2013 2,812,371 354,603 949,594 1,623,527 2,150,005 1,691,401 9,581,501

2014 3,066,986 665,351 1,006,344 1,760,849 2,221,929 1,814,851 10,536,310

1. Monthly charges were included in Water Sales until fiscal year 2009.

NOTES:

1. Source of supply includes debt service on State Water Project loans.

2. Restated.


Operating Expenses by Activity


Schedule 3

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source of Supply 1 Purchased water Water Treatment

Transmission & Distribution General & Administrative Depreciation and Amortization 2

54

Fiscal Year Water Sales

Monthly

Charge 1

Capital

Recovery Fees

Fire

Protection Other Revenue

Total

Operating

Revenue

2005 94.8 % - % 0.6 % 2.4 % 2.1 % 100.0

2006 96.0 - 1.4 2.3 0.4 100.0

2007 96.9 - 0.7 1.9 0.4 100.0

2008 93.4 - 4.6 1.8 0.2 100.0

2009 43.1 53.3 1.0 2.1 0.4 100.0

2010 40.9 55.8 1.1 1.8 0.4 100.0

2011 39.5 56.4 0.8 2.2 1.2 100.0

2012 39.2 53.4 4.4 2.0 1.0 100.0

2013 39.9 50.1 7.1 1.8 1.1 100.0

2014 41.6 50.9 5.1 1.9 0.5 100.0

Fiscal Year

Source of

Supply

Purchased

Water

Water

Treatment

Transmission

& Distribution

General &

Administrative

Depreciation

and

Amortization

Total

Operating

Expenses

2005 38.0 % 4.8 % 3.0 % 20.7 % 20.8 % 12.7 % 100.0 %

2006 34.3 6.0 8.3 16.0 21.0 14.3 100.0

2007 34.7 3.4 8.5 17.5 21.6 14.4 100.0

2008 31.3 5.3 9.1 17.0 21.7 15.6 100.0

2009 27.1 4.2 9.5 17.9 22.7 18.6 100.0

2010 30.6 3.0 7.2 14.6 23.3 21.3 100.0

2011 30.4 4.2 9.6 14.2 22.5 19.1 100.0

2012 30.4 3.3 9.6 16.6 21.7 18.4 100.0

2013 29.4 3.7 9.9 16.9 22.4 17.7 100.0

2014 29.1 6.3 9.6 16.7 21.6 16.7 100.0

NOTE:

1. Monthly charges were included in water sales revenue until Fiscal Year 2009.

Operating Revenues as Percent of Total


Operating Revenues and Expenses as Percent of Total


Schedule 4

Operating Revenues as Percent of Total

55

Fiscal Year

Water Sales

(acre feet)

2004-2005 4,086

2005-2006 3,886

2006-2007 4,479

2007-2008 4,507

2008-2009 4,131

2009-2010 3,825

2010-2011 3,602

2011-2012 4,150

2012-2013 4,329

2013-2014 4,725


Revenue Base


Schedule 5

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

Water Sales, Annual Acre Feet

56

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Monthly Service Charges 1, 2

Meter Size

5/8" 29.87 31.00 28.25 28.25 28.56 29.40 31.23 30.79 30.79 31.37

3/4" 29.87 31.00 28.25 28.25 28.56 29.40 31.23 30.79 30.79 31.37

1" 49.78 51.68 47.08 47.08 47.60 49.00 52.05 51.31 51.31 52.28

1 1/2" 99.55 103.35 94.15 94.15 95.20 98.00 104.10 102.60 102.60 104.55

2" 159.28 165.36 150.64 150.64 152.32 156.80 166.56 164.16 164.16 167.28

3" 318.56 330.72 301.31 301.31 304.64 313.60 333.12 328.32 328.32 334.56

4" 497.75 516.75 470.75 470.75 476.00 490.00 520.50 513.00 513.00 522.75

6" 995.50 1,033.50 941.65 941.65 952.00 980.00 1,041.00 1,026.00 1,026.00 1,045.50

Water Usage Charges (per HCF)

User Type

Residential

Base 2.25 2.38 2.51 2.78 3.00 3.11 3.00 3.00 3.00 3.05

Mid 2.60 2.95 3.11 3.45 3.70 3.85 3.85 3.85 3.85 3.92

Peak 2.95 3.33 3.59 3.89 4.15 4.32 4.85 4.85 4.85 4.94

Commercial/Business

Base 2.75 3.10 3.27 3.63 3.00 3.11 3.00 3.00 3.00 3.05

Mid 3.70 3.85 3.85 3.85 3.85 3.92

Peak 4.15 4.32 4.85 4.85 4.85 4.94

Agricultural 1.44 1.52 1.60 1.67 1.70 1.74 1.70 1.70 1.70 1.72

NOTES:

1. Excludes rates for Fire meters.

2. Monthly Service Charges include basic and State Water Project charges, and exclude Capital Improvement Program (CIP) charges. CIP charges are calculated

individually based on average usage history, and in Fiscal Year 2014 range from $16.50 to $275.00 per month.

Fiscal Year


Revenue Rates


Schedule 6

57

Fiscal Year Residential

Multi-Meter

Residential 1

Commercial/

Business Agricultural

Public

Authority

Fire

Protection

Total

Accounts

2004-2005 3,302 283 429 55 108 4,177

2005-2006 3,304 288 424 56 110 4,182

2006-2007 3,325 289 423 56 112 4,205

2007-2008 3,325 289 423 56 112 4,205

2008-2009 3,069 315 275 431 52 119 4,261

2009-2010 3,085 309 276 428 59 119 4,276

2010-2011 3,086 309 275 429 61 119 4,279

2011-2012 3,077 332 276 428 61 119 4,293

2012-2013 3,101 340 278 427 61 120 4,327

2013-2014 3,207 349 277 404 62 125 4,424

NOTE:

1. Multi-meter residential customers were combined with residential customers through fiscal year 2008.


Accounts by Type


Schedule 7

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

Accounts by Type

Residential Multi-Meter Residential Commercial/ Business Agricultural Public Authority Fire Protection

58

Fiscal Year Loans Payable Bonds Payable Notes Payable Debt Per Customer

As a Share of

Personal Income 1

2004-2005 $ 13,125,303 $ 9,275,000 $ - $ 22,400,303 $ 5,363 4.08%

2005-2006 16,885,385 11,090,000 - 27,975,385 6,689 4.87%

2006-2007 19,778,625 10,875,000 - 30,653,625 7,290 5.04%

2007-2008 19,971,820 10,640,000 - 30,611,820 7,280 4.72%

2008-2009 19,688,618 10,390,000 - 30,078,618 7,059 4.67%

2009-2010 16,702,455 17,600,844 - 34,303,299 8,022 5.36%

2010-2011 16,105,893 17,385,844 - 33,491,737 7,827 6.77%

2011-2012 15,652,974 17,235,844 - 32,888,818 7,661 6.53%

2012-2013 15,104,367 17,135,844 - 32,240,211 7,451 4.58%

2013-2014 14,538,804 17,030,844 - 31,569,648 7,136 4.47%

NOTE:

1. Personal income estimated for 2013-14.

Total


Ratios of Outstanding Debt


Schedule 8

59

Fiscal Year

Operating

Revenues

Operating

Expenses 1

Net Available

Revenues Principal 2

Interest Total

Coverage

Ratio

2004-2005 $ 8,332,471 $ 6,567,466 $ 1,765,005 $ 40,000 $ 741,059 $ 781,059 2.26

2005-2006 9,187,647 6,837,464 2,350,183 309,745 478,871 788,616 2.98

2006-2007 10,112,892 6,932,127 3,180,765 358,279 708,334 1,066,613 2.98

2007-2008 11,274,957 7,427,172 3,847,785 381,902 962,460 1,344,362 2.86

2008-2009 10,778,110 8,053,240 2,724,870 400,618 963,195 1,363,813 2.00

2009-2010 10,431,187 7,304,093 3,127,094 341,731 992,087 1,333,818 2.34

2010-2011 10,266,100 7,913,220 2,352,880 811,562 887,374 1,698,936 1.38

2011-2012 11,180,994 7,995,513 3,185,481 681,989 797,136 1,479,125 2.15

2012-2013 12,004,241 7,890,100 4,114,141 648,606 776,381 1,424,987 2.89

2013-2014 12,135,216 8,778,399 3,356,817 670,563 760,891 1,431,454 2.35

NOTES:

1. Operating expenses exclude depreciation and amortization.

2. Principal payments exclude payments associated with refinancing.


Debt Coverage


Schedule 9

Debt Service

60

District

Fiscal Year Population Population Unemployment Rate

Personal Income

($ millions)

Personal Income per

Capita

2004-2005 16,009 13,622 4.0% $ 549.1 $ 34,300

2005-2006 15,906 13,508 3.5% 574.2 36,100

2006-2007 15,803 13,393 3.8% 608.4 38,500

2007-2008 15,700 13,279 5.2% 648.4 41,300

2008-2009 15,597 13,164 5.2% 644.2 41,300

2009-2010 15,494 13,050 5.2% 639.9 41,300

2010-2011 15,547 13,095 5.8% 495.0 31,837

2011-2012 15,600 13,139 8.2% 503.9 32,302

2012-2013 1 15,653 13,184 6.3% 704.4 45,000

NOTE:

1. The latest fiscal year for which data is available.

City of Carpinteria


Demographics and Economics Statistics


Schedule 10

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 1

Population - District

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 1

Unemployment Rate - City of Carpinteria

0

10,000

20,000

30,000

40,000

50,000

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 1

Income Per Capita - City of Carpinteria

61

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Number of Employees 17 17 18 18 19 18 18 19 19 20

Number of Accounts 4,177 4,182 4,205 4,205 4,261 4,276 4,279 4,293 4,327 4,424

Service Area (Acres) 8,948 11,288 11,288 11,288 11,288 11,288 11,288 11,288 11,288 11,288

Population Served 1

16,009 15,906 15,803 15,700 15,597 15,494 15,547 15,600 15,653

Miles of Pipeline 82.56 84.00 84.82 85.00 85.19 85.32 85.43 85.52 87.45 87.46

Number of Storage Tanks 3 4 4 4 4 4 4 4 4 4

Gallons of Storage Capacity

(millions of gallons) 14.55 17.55 17.55 17.55 17.55 17.55 17.55 17.55 17.55 17.55

Number of Active Wells 4 4 3 2 2 2 2 3 3 3

Number of Treatment Plants 1 1 1 1 1 1 1 1 2 2

NOTE:

1. Data not available for Fiscal Year 2013-14.


Operating and Capacity Indicators


Schedule 11

Fiscal Year

62

12/09/2014

RATE & BUDGET

RATE & BUDGET COMM MTG Thursday, January 22, 2015 12:15

RATE & BUDGET COMM MTG Wednesday, February 04, 2015 12:15

RATE & BUDGET COMM MTG Thursday, February 19, 2015 12:15

RATE & BUDGET COMM MTG Wednesday, March 04, 2015 12:15

RATE & BUDGET COMM MTG Wednesday, March 18, 2015 12:15

BOARD MEETING Wednesday, March 25, 2015 5:30 Proposed Budget Presentation

Proposition 218 Hearing Notice Monday, April 13, 2015 Mail Hearing Notice

RATE & BUDGET COMM MTG Thursday, April 23, 2015 12:15

RATE & BUDGET COMM MTG Tuesday, May 19, 2015 12:15

BOARD MEETING Wednesday, June 10, 2015 5:30 Protest Hearing/Budget Adoption

BOARD MEETING Wednesday, June 24, 2015 5:30

CARPINTERIA VALLEY WATER DISTRICTBUDGET PREPARATION FY 15/16

board of directors agenda matthew roberts … the safety and reliability of the water system ......

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