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EAST QUINCY SERVICES DISTRICT BOARD OF DIRECTORS REGULAR MEETING ON TUESDAY FEBRUARY 9, 2016 at 6:30pm

TO BE HELD AT 179 ROGERS AVENUE, QUINCY, CA1. CHAIRMAN TO CALL REGULAR MEETING TO ORDER-Chairman to open

meeting at 6:30pm.

2. PUBLIC COMMENT other than an Agenda item. Any person may address the Board at this time on any matter within the jurisdiction of the Board. The Chairman requests a five (5) minute limit for each person addressing the Board.

3. ADDING OR REMOVING ITEMS ON AGENDA

4. MINUTES -of the Special Meeting on January 26, 2016 will be presented to the board for their review and approval. Action Item

5. DISTRICT CORRESPONDENCE- Present, review and act on any district correspondence received within the last month.

6. AUDIT- Staff will present the Board with final Audit Report Year Ending June 30,2015.Mr. Clay Singleton will be present to answer any questions regarding the final report. The board will be asked to approve the report as presented. Action Item

7. SOLAR FARM- There will be an update on the Solar Farm project. Possible Action Item

8. EQSD-QCSD BI-DISTRICT RATE SETTING COMMITTEE-There will be an update on the latest meeting.

9. WATER CONSERVATION PROGRAM-Manager Green will present the latest correspondence from the California Water Boards regarding our conservation efforts. The board will be asked to limit our watering days to 2 days a week. They will also be askedto implement a fine program for those homeowners that do not comply with the program.

Action Item10. GENERAL MANAGER'S REPORT

(a) Ground Water Management Plan-Manager Green will report on the Ground WaterManagement Plan that is to be presented at the next American Valley Services Authority Meeting Scheduled for Feb 23,2016 at 6:00pm to be held at the Feather River Publishing Office on Lawrence Street. Discussion Item

(b) On Going Projects-Manager Green will report on any ongoing projects.

11. STAFF REPORT(a) Water Report-Gallons Pumped and Metered in January 2015.(b) Wastewater Flow-Effluent flows to QCSD in January 2015.(c) Quincy Community Services District Agenda-Present the latest agenda.(d) WWT Capital Expenditure Account-Staffwill present the board with the monthly

reconciliation of the QCSD WWT Capital Expenditure account held at Plumas Bank.(e) Write off-The board will be asked to write off the debt that was left on 276 Sierra

Way in June 2015 in the amount of$192.94. The home was a foreclosed on.Action Item

12. FINANCE REPORT-Staffto report the fund balances and propose a transfer of funds.Action Item

13. APPROVE MONTHLY PAYMENTS- The board to review approve and sign the checks for the monthly expenses and direct the staff to issue the payments.

Action Item

14. DIRECTOR'S & MANAGER'S COMMENTS-Present an opportunity for any member of the board or the manager to share thoughts or ideas with the board as a group.

Discussion Item

15. ADJOURNMENT Action Item

In compliance with the Americans with Disabilities Act, if you are a disabled person and you need disability-related modifications or accommodation to participate in this meeting, and then please contact Shawneen Howe, District Secretary at (530) 283-2390. Requests must be made as early as possible, and at least one-full business day before the start of the meeting Posted 2-5-2016

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EAST QUINCY SERVICES DISTRICT /179 ROGERS AVENUE QUINCY SPECIAL MEETING MINUTES OF

JANUARY 26, 2016 AT 9:00AM

BOARD MEMBERS PRESENT

Kathy Felker, ChairmanMike Beatty, Director Bill

Martin, Vice Chairman John Kolb, Director

Darrell Brown, Director BOARD

MEMBERS ABSENT None

DISTRICT PERSONNEL PRESENT

Mike Green, General Manager Shawneen Howe, District Secretary Vicki Poh, Administrative Assistant

PUBLIC PRESENT

None

CALL THE SPECIAL MEETING TO ORDER

Chairman Felker called the Special Meeting to order at 9:00am.

There was no public comment.PUBLIC COMMENT

MINUTES

The Minutes of the Regular Board Meeting of January 12, 2016 and the Special Meeting of January 14,2016 was presented to the board for their review and approval. After the board read the minutes and made one correction, A MOTION was made by Director Martin to accept the corrected minutes of the Regular Meeting of January 12,2016 and the minutes of the Special Meeting ofJanuary 14, 2016. The motion was seconded by Director Brown and the results of the vote are as follows:

AYES: Director Martin, Brown, Kolb, Beatty and Chairman FelkerNOES: NoneABSENT: None

Minutes of the Special Meeting on January 26, 2016

WATER CONSERVATION AD

Ms. Poh presented the board with a mock up ad that would help in our water conservation efforts. The cost for these ads are as follows:

Ad in color would be $114.00 per week for 12 weeks.Ad in Black and White would be $68.00 per week for 12 weeks.

After the board discussed the ad and its content, A MOTION was made by Director Martin to go with the Black and White ad for the 12 weeks. The motion was seconded by Director Beatty and the results of the vote are as follows:


PURCHASE OF VEIDCLE

Manager Green presented the board four different bids for the new vehicle. They are listed below:

Quincy Auto 2015 Dodge Ram 1 ton from Crown Motors, Redding $37,609.03Oroville Ford 2016 Ford 14 ton $36,972.21Reno Buick 2016 GMC 14 ton $36,978.47Susanville Ford 2016 Ford 14 ton $36,850.00

After a discussion regarding these bids, A MOTION was made by Director Beatty to approve the purchase of the 2015 Dodge Ram 1 ton truck from Quincy Auto. The motion was seconded by Director Martin and the results of the vote are as follows:


ADJOURNMENT

A MOTION was made by Director Martin to adjourn the meeting at 9:25 p.m. The Motion was seconded byDirector Kolb and the results of the vote are as follows:

AYES: Director Martin, Ko1b, Brown, Beatty, and Chairman FelkerNOES: NoneABSENT: None

Respectfully Submitted

Shawneen HoweDistrict Secretary

Shawneen Howe

From: Sent: To: Subject:

SDRMA- Greg Hall, CEO <[email protected]> Friday, February 05, 2016 1:32 PM [email protected] Rates, Longevity Distributions, Bylaw Revisions

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SDRMA Board Approve11 Rates for 2016-17

On February 3, 2016 the SDRMA Board of Directors took action approving rates for 2016-17. There will be no rate increases for either the Property/Liability and Workers' Compensation Programs! However, your agency's actual annual contribution amount for 2016-17 may vary compared to 2015-16 as a result of any coverage limit changes, scheduled item additions/deletions, reported payroll changes, EMOD changes, risk factor adjustments and Credit Incentive Program (CIP) points earned.

All members will be receiving a letter in the next two weeks outlining the approved rates for 2016-17. In addition/ Workers' Compensation members will receive an estimated annual contribution amount to use for budgeting purposes.

As a reminder/ SDRMA now bills both Workers' Compensation andProperty/Liability members annually.

SDRMA Board Approves Longevity Distribution

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The SDRMA Board of Directors believe it is important to recognize and reward members for their loyalty and commitment to SDRMA's programs and for the 6th year in a row approved a Longevity Distribution at their February 3, 2016 board meeting. The distribution may only be declared by the Board of Directors each year after all Board policy reserve requirements have been met. The distribution is weighted based on the member's length of time in that program and the amount of the member's annual contributions compared to the total contributions of all pool members.

The approved longevity Distribution amount is $856,492 for Property/Liability members and $327,076 for Workers' Compensation members. For the Property/Liability program, over 90% of members will receive the distribution credit and for the Workers'Compensation program, over 86% of members will receive the distribution credit. There is no action required by your agency. Every member that completed the 3 full program year initial commitment period by June 30,2015 for either the Property/Liability or Workers' Compensation program is eligible to receive the Longevity Distribution credit for that particular program.

All members wi!! be receiving a detailed letter in the next two weeks and qualifying members will receive the Longevity Distribution credit on their

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2016-17 renewal invoice(s). If you have any questions please cal! theSDRMA Finance Department at 800.537.7790.

Proposed Bylaw Revisions.

On January 6, 2016 the SDRMA Board of Directors approved tentative revisions to the SDRMA Bylaws. The Bylaws were last revised in 2003 during the merger of SDRMA and SDWCA (Special District Workers' Compensation Authority). There were several issues that needed to be addressed to help clarify and protect the overall pool as well as some housekeeping revisions.

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A proud California SpecialDistricts Alliance Partner

Sub cribe Now

All members will be receiving a letter along with a copy of the proposed Bylaw revisions for review and comment and to meet the 30 day written notice provision in accordance with the current Bylaws. The Board will take final action to approve the revised Bylaws at their May 4-5 boardmeeting.

REMINDER- Loss Prevention Allowance fUI'JdS

The Loss Prevention Allowance Fund was created so members could receive reimbursement for loss prevention efforts such as:

*Purchase of safety equipment*Safety videos*Ergonomic equipment*Training courses and/or materials*SDRMA or CSDA seminars, conferences, regional trainings or workshops(not including travel & hotel expenses)

Members can submit a request for reimbursement to 5_DRMA for amounts spent on loss prevention efforts during the program year up to a maximum of $1,000 per year. All requests must be accompanied by a copy ofan invoice and proof of payment. Requests will be processed on a firstcome, first-serve basis until the funds are depleted.

Members have already been reimbursed for items such as;safety vests and cones, security cameras, ergonomic equipment, eye and ear protection, fire extinguishers, safety boots and gloves, first aid training courses and chlorine leak alarms just to name a few.

Please contact Paul Frydendal, Chief Operating Officer at [email protected] or 800.537.7790 if you have questions or want to get pre-approval for a reimbursement or to submit your actual reimbursement request. Requests can also be faxed to 916.231.4111.

WithdrawalNotice Deadline"April .,........

Members intending to withdraw from the Workers' Compensation Program and/or Property/Liability Program are required to submit a "Notice of Intent to Withdraw". The notice must be received in the SDRMA office before April 1 according to SDRMA Bylaws.

Members not renewing coverage for 2016-17 will not receive the longevity distribution credit recently approved by the Board.

New Members

The SDRMA Board of Directors approved the following new members at their January and February board meetings;

Property /Liability Program (currently 496 members) No new members

Workers' Compensation Program (currently 424 members) Sky View County Water District

Health Benefits Program (currently 124 members) Bighorn-Desert View Water AgencyCity of CaIipatria

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Ebbetts Pass Fire District Garberville Sanitary District Modoc CountyOroville Cemetery DistrictSutter-Yuba Mosquito and Vector Control District

The SDRMA Board of Directors and staff welcome you to SDRMA and are here to serve all your risk management needs!

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SDRMA I 800.537.7790 I 1112 I Street Suite 300 I Sacramento I CA i95814

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EAST QUINCY SERVICES DISTRICT

AUDIT REPORT FOR THE YEAR ENDED

JUNE 30, 2015

SingletonAumanpcCertified Public Accountants & Consultants

EAST QUINCY SERVICES DISTRICT Audit Report

JUNE 30, 2015

TABLE OF CONTENTSPage No

Financial Section

Independent Auditor's Report on Financial Statements 1Management's Discussion and Analysis (Required Supplementary

Information) 4

Basic Financial Statements

Government-wide Statement of Net Position 11Goverilment-wide Statement of Activities 12

Fund Financial Statements

Statement of Net Position- Proprietary Funds 13Statement of Revenue, Expenses and Changes in Fund Net Position

Proprietary Funds 14Statement of Cash Flows - Proprietary Funds 15Notes to Financial Statements 16

Required Supplementary Information Statement of Operations- Water Fund Budget and Actual 31Statement of Operations- Sewer Fund Budget and Actual 32Schedule of the Proportionate Share of Net Pension Liability 33Schedule of District Contributions 35

Other Supplementary Information

Report on Internal Control Over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with GovernmentAuditing Standards 37

Combined Schedule of Findings and Questioned Costs 39Summary Schedule of Prior Year Audit Findings 43Corrective Action Plan 44

Singl !Qn8 un J2 John E. Auman, CPAClay E. Singleton, CPA, MSAcc

Independent Auditors' Report

Board of DirectorsEast Quincy Services DistrictQuincy, CA

We have audited the accompanying fmancial statements of the business-type activities and each major fund of the East Quincy Services District (District) as of and for the year ended June 30,2015, and the related notes to the fmancial statements, which collectively comprise the District'sbasic fmancial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of fmancial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the District's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

Susanville:1740 Main Street, Suite A, Susanville, CA 96130530.257.1040 Fax: 530.257.8876

[email protected] www.sa-cpas.com

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Chester:PO Box 795, Chester, CA 96020

530.258.2272 Fax: 530.258.2282

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and each major fund of East Quincy Services District as of June 30, 2015, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of a Matter

Change in Accounting Principle

As described in Note 1 to the fmancial statements, in 2015, the District adopted new accounting guidance, Government Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 71, Pension Transition for contributions made Subsequent to the Measurement, an amendment of GASB Statement No. 68. 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 and budgetary comparison information identified in the table of contents be presented to supplement the basic financial statements. Such information, although not a basic part of the 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 Americwhich consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated September 11, 2015, on our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control over financial reporting and compliance.

Respectfully Submitted,

V----- ) /e-SingletonAuman PC Susanville, CA September 11, 2015

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EAST QUINCY SERVICES DISTRICT Management's Discussion and Analysis (MD&A)

June 30, 2015

INTRODUCTION

East Quincy Services District's present operations include providing water and sewer services to residents of the District.

Our discussion and analysis of East Quincy Services District's (District) financial performance provides an overview of the District's fmancial activities for the fiscal year ended June 30, 2015. It should be read in conjunction with the District's financial statements, including notes and supplementary information, which follow this section.

FINANCIAL HIGHLIGHTS

o The net position was $7,486,309 at June 30, 2015. This was a decrease of $239,628 from the prior year, with $189,118 of the decrease attributed to a prior period adjustment from the implementation of GASB 68, which recognizes net pension liability for the first time. More details are provided in the discussion under pension liabilities.

o Overall revenues were $1,524,946, which were less than expenses of$1,575,456 by $50,510.

o The total cost of the District's programs increased by $52,988 from last year.

o Debt has increased by $157,549 from the implementation of GASB 68.

OVERVIEW OF FINANCIAL STATEMENTS

This armual report consists of three parts - management's discussion and analysis (this section), the basic financial statements, and required supplementary information. The three sections together provide a comprehensive overview of the District. The basic financial statements are comprised of two kinds of statements that present financial information from different perspectives:

o Goverrnnent-wide fmancial statements, which comprise the first two statements, provide both short-term and long-term information about the entity's overall financial position.

o Fund financial statements focus on reporting the individual parts of the District operations in more detail. The fund financial statements comprise the remaining statements.

• Proprietary funds statements provide information about the short and long-term financial information of the district that operate like businesses.

The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The basic fmancial statements are followed by a section of required supplementary information that further explains and supports the financial statements. A comparison of the district's budget for the year is included.

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Government-Wide Statements

The government-wide statements report information about the District as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all of the government's assets and liabilities. All of the current year's revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid.

The two government-wide statements report the District's net assets and how they have changed. Net assets, the difference between the assets and liabilities, are one way to measure the District's financial health or position.

o Over time, increases or decreases in the District's net assets are an indicator of whether its financial health is improving or deteriorating, respectively.

o To assess the overall health of the District, one needs to consider additional nonfinancial factors such as changes in the property tax base, changes in program funding by the Federal and State governments, and condition of facilities.

The government-wide financial statements of the District include business-type activities. Most of the District's basic services are included here, such as water and sewer. Customer payments finance most of these activities.

Fund Financial Statements

The fund financial statements provide more detailed information about the District's most significant funds-not the District as a whole. Funds are accounting devises that the District uses to keep track of specific sources of funding and spending for particular programs. Some funds are required to be established by state law and by bond covenants. The Board of Directors establishes other funds to control and manage money for particular purposes or to show that the District is meeting legal responsibilities for using certain revenues. The District has one kind of fund:

Proprietary Funds - Services for which the District charges a fee are generally reported in proprietary funds. Proprietary funds are reported in the same way as the district-wide financial statements.

FINANCIAL ANALYSIS OF THE ENTITY AS A WHOLE

Net Position

The District's combined net position was $7,486,309 at June 30, 2015. See Table 1.The significant changes in Table 1line items for fiscal2015 vs 2014 are:

• Increase in cash due to rate increases.• The implementation of GASB 68 in fiscal year 2015 resulted in the recognition of the $173,192

Pension Liability, the $189,188 prior period adjustment, and the recognition of $39,892 of deferred inflows and $49,319 of deferred outflows.

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Table 1:Net Position

Assets

Total% Business-Type Activities Change2015 2014 2015-2014

Cash $ 391,608 $ 200,851 94.97% Accounts Receivable 115,433 89,503 28.97% Other Current Assets 17,620 35,588 -50.49% Cash Reserves 1,708,340 1,678,051 1.81% Capital Assets, Net of Accumulated

Depreciation 7,715,349 7,992,140 -3.46%TOTAL ASSETS $ 9,948,350 $ 9,996,133

DEFERRED OUTFLOWS OF RESOURCESDeferred Recognition of Contributions to Pension Plan $ 39,892 $

Current Liabilities:Accounts Payable and Accrued Expenses $ 67,767 $ 88,064 -23.05% Utility Deposits 9,420 9,486 -0.70% Accrued Payroll Liabilities 8,978 12,245 -26.68% Current Portion of Long-Term Debt 48,500 46,000 5.43%

Total Current Liabilities 134,665 155,795

Long Term Liabilities:Net OPEB Obligations 454,176 375,318Note Payable 1,690,581 1,739,082 -2.79%

Net Pension Liability 173,192Total Long Term Liabilities 2,317,949

TOTAL LIABILITIES $ 2,452,614 $ 2,270,195

DEFERRED INFLOWS OF RESOURCESDeferred Recognition of Pension Plan Earnings $ 49,319 $

Net PositionNet Investment in Capital Assets $ 5,976,268 $ 6,207,058 -3.72%

Unrestricted 1,510,041 1,518,880 -0.58%

TOTAL NET POSITION $ 7,486,309 $ 7,725,938

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Changes in Net Position

The District's total revenues were $1,524,946. A majority of the revenue comes from Utility Sales(85%). Property taxes accounted for 5.4% of total revenues.

The total cost of all programs and services was $1,575,456

Table 2:Changes in Net Position

RevenuesProgram Revenues:

Business-Type Activities2015 2014

Total PercentageChange

2015-2014

Charges for ServicesCapital Grants and Contributions

General Revenues Property Taxes Interest Income

TOTAL REVENUES

$ 1,295,996 $ 1,220,947 6.15%139,924 135,480 3.28%

82,957 92,469 -10.29%6,069 4,426 37.12%

1,524,946 1,453,322

Program ExpensesWaterSewer

TOTAL EXPENSES

561,8511,013,6051,575,456

547,748974,720

1,522,468

2.57%3.99%

DECREASE IN NET POSITION $ (50,510) $ (69,146) -26.95%

Governmental Activities

Table 3 presents the cost of each of the District's functions as well as each function's net cost (total cost less fees generated by the activities and intergovemental aid). The net cost reflects what was funded by charges for services, operating grants and capital grants and contributions.

The amount that our taxpayers paid for these activities through property taxes was $82,957.

Most of the costs were paid directly from people who directly benefited from the programs of$1,295,996 or by grants and contributions of $139,924.

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Table3Net Cost of Business-Type Activities

Water

Total Cost of Services Net Cost of Services2015 2014 2015 2014

$ 561, )1 :ii 547,748 $ 2,228 $ 44,498Sewer 1,013,605 885,621 (141,764) 167,924TOTAL $ 1,575,456 $ 1,433,369 $ (139,536) $ 212,422

FINANCIAL ANALYSIS OF THE DISTRICT'S FUNDS

The overall financial performance of the District as a whole is reflected in the communication between the Board of Directors and the District employees as they all work together in providing the best quality of service to its customers. As the District completed the year, its proprietary funds reported equity of$7,486,310.

Budgetary Highlights

The District prepares a preliminary budget in May or June of each fiscal year. A final budget is adopted by the Board in August. A schedule of the District's original and final budget amounts compared with actual revenues and expenses is provided in the supplemental section of the audited financial report.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

At June 30, 2015, the District had invested $7,715,349 in a broad range of capital assets, includingland and the water and sewer systems. During the year the District invested in a grinder, a submersible pump and a valve cluster, See Table 4. More detailed information about the District'scapital assets is presented in the notes to the financial statements.

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Table 4Capital Assets

Business-Type Activities2015 2014

Change2015-2014

Land and Easements $ 203,396 $ 158,430 28.38%Water System 3,723,088 3,757,614 -0.92%Sewer System 9,528,555 9,502,611 0.27%Totals at Historical Cost 13,455,039 13,418,655

Total Accumulated Depreciation (5,739,689) (5,426,515) 5.77%NET CAPITAL ASSETS $ 7,715,350 $ 7,992,140

For the 2015-2016 fiscal year, the District expects to spend $100,000 on Capital Assets including purchasing a new truck and backhoe and the Districts tank project.

Long-Term Debt

At year end, the District had $2,114,400 in long-term debt, consisting of a USDA loan and OPEB Obligations, as shown in Table 5. More detailed information about the District's debt is presented in the notes to the financial statements.

PENSION LIABILITIES, CHANGE IN ACCOUNTING PRINCIPLE AND PRIOR PERIOD ADJUSTMENTS:

The District implemented GASB Statement No. 68 for the year ended June 30, 2015. The Statement requires numerous new pension disclosures in the notes to the financial statements and two new schedules as required supplementary information. Also, for the first time, the District is required to recognize pension expense, report deferred outflows of resources and deferred inflows of resources related to pensions and a net pension liability for its proportionate shares of the collective pension expense, collective deferred outflows of resources and deferred inflows of resources related to pensions and collective net pension liability. More detailed information about the Districts pension plans and related expenses and liabilities is presented in the notes to the financial statements. The reporting of these new amounts on the financial statements, resulted in a prior period adjustment that decreased the net position by $189,118.

Governmental Activities

June 30, 2014Net Position as Previously

StatedGASB68

Restatement

June 30, 2014Net Position as Restated

Total Net Position $ 7,725,938 $ {189,118) $ 7,536,820

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Net Pension Liability

As of June 30, 2015, the District reported net pension liabilities for the first time. Although a valid comparison to the amounts at June 30, 2014 is not available in the first year of implementation of GASB Statement No. 68, that disclosure will be available in subsequent years.

Table 5Long-Term Debt

Total PercentageBusiness-Tr12e Activities Change

2015 2014 2015-2014

USDA Loan $ 1,690,581 $ 1,739,082 -2.79%Net OPEB Obligation 454,176 375,318 21.01%Net Pension Liability 173,192TOTAL LONG-TERM DEBT $ 2,317,949 $ 2,114,400 9.63%

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES

At the time these financial statements were prepared and audited, the District was aware of circumstances that could affect its future financial health, specifically:

o The continuing increases in fuel and power costs along with the influence of inflation on all costs.

o The inevitable increases in pension contributions which will be needed to pay the unfundedNet Pension Liability will require careful planuing and budgeting.

CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, parents, participants, investors and creditors with a general overview of the District's finances and to demonstrate the District's accountability for the money it receives. If you have questions about this report, or need additional financial information, contact:

East Quincy Services DistrictMike Green, General Manager

179 Rogers Quincy, CA 95971

(530) 283-2390

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EAST QUINCY SERVICES DISTRICT STATEMENT OF NET POSITION

JUNE 30, 2015

ASSETS

Current Assets:Cash on Hand and in Banks Accounts Receivable Prepaid ExpensesOther Cnrrent Assets

Total Current Assets

Other Assets:Cash - System Facility Reserves

Total Other Assets

Property, Plant & Equipment, Net:

Total Assets

Business-Type Activities Water and

Sewer Funds

$ 391,608115,433

17,620524,661

1,708,3401,708,340

7,715,349

$ 9,948,350

DEFERRED OUTFLOWS OF RESOURCESDeferred Recognition of Contributions to Pension Plan $ 39,892

LIABILITIES

Current Liabilities:Accounts Payable $ 67,767Utility Deposits 9,420Accrued Payroll and Related Liabilities 8,978Current Portion of Long Term Debt 48,500

Total Current Liabilities 134,665

Long Term Liabilities:Bonds Payable 1,690,581OPEB Obligations 454,176Net Pension Liability 173,192

Total Long Term Liabilities 2,317,949

Total Liabilities $ 2,452,614

DEFERRED INFLOWS OF RESOURCESDeferred recognition of Pension Plan Earuings $ 49,319

NET POSITIONNet Investment in Capital AssetsUnrestricted

Total Net Position

$ 5,976,2681,510,041

$ 7,486,309

The accompanying notes are an integral part of this statement-11-

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Sewer 1,013,605 731,917 139,924 (141,764)Total Business-Type Activities $ 1,575,456 $ 1,295,996 $ 139,924 (139,536)

EAST QUINCY SERVICES DISTRICT STATEMENT OF ACTIVITIES JUNE

30, 2015

Business-Type Activities

Program Revenue Net (Expense) Charges Capital Revenue and

For Grants and Changes in_Expenses Services Contributions Net Assets

Water $ 561,851 $ 564,079 $ $ 2,228

General Revenues:Property Taxes Levied for General PurposeInterest EarningsTotal General Revenue

Change in Net Position

Net Position- Beginning, as restated (Note 1)Net Position- Ending $


854,170 854,170 1,708,340854,170 854,170 1,708,340

EAST QUINCY SERVICES DISTRICTSTATEMENT OF FUND NET POSITION- PROPRIETARY FUNDS

JUNE 30, 2015

Business-TypeActivities

ASSETS Water SewerFund Fund Total

Current Assets:Cash on Hand and in Banks $ 391,608 $ 391,608Accounts Receivable 40,839 74,594 115,433Other Current Assets 4,770 12,850 17,620

Total Current Assets 45,609 479,052 524,661

Other Assets:Cash- System Facility Reserves

Total Other Assets

Property, Plant & Equipment, Net: 1,764,949 5,950,400 7,715,349

Total Assets $ 2,664,728 $ 7,283,622 $ 9,948,350

DEFERRED OUTFLOWS OF RESOURCESDeferred Recognition of Contributions to Pension Plan $ 19,946 $ 19,946 $ 39,892

LIABILITIESCurrent Liabilities:

Accounts Payable $ 7,826 $ 59,941 $ 67,767Utility Deposits 10,337 (917) 9,420Accrued Payroll and Related Liabilities 6,103 2,875 8,978Current Portion of Long Term Debt 48,500 48,500

Total Current Liabilities 24,266 110,399 134,665

Long Term Liabilities:Bonds Payable 1,690,581 1,690,581Net OPEB Obligation 227,088 227,088 454,176Net Pension Liability 86,596 86,596 173,192

Total Liabilities $ 337,950 $ 2,114,664 $ 2,452,614=

DEFERRED INFLOWS OF RESOURCESDeferred Recognition of Pension Plan Earnings $ 24,660 $ 24,659 $ 49,319

NET POSITIONNet Investment in Capital Assets $ 1,764,949 $ 4,211,319 $ 5,976,268Umestricted 557,115 952,926 1,510,041

Total Net Position $ 2,322,064 $ 5,164,245 $ 7,486,309

,- The accompanying notes are an integral part of this statement.-13-

EAST QUINCY SERVICES DISTRICTSTATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDSFOR THE YEAR ENDED JUNE 30, 2015

Operating Revenues:

Water Sewer Fund Fund Total

Utility Revenue $ 528,822 $ 721,704 $ 1,250,526Other Operating Revenue 35,257 10,213 45,470

Total Operating Revenue 564,079 731,917 1,295,996

Expenses:Salaries and Benefits 245,979 246,270 492,249Insurance 8,984 8,984 17,968Legal, Accounting and Professional Services 50,763 67,829 118,592Utilities 74,192 21,919 96,IllVehicles and Equipment 5,859 3,468 9,327Permits and Fees 10,607 746 11,353Depreciation 114,435 198,739 313,174Sewage Treatment 355,012 355,012Repairs and Maintenance 26,891 8,377 35,268Office 11,600 10,731 22,331Director's Fees 2,224 1,864 4,088Miscellaneous 10,317 128 10,445

Total Operating Expenses 561,851 924,067 1,485,918--Operating Income (Loss) 2,228 (192,150) (189,922)

Non-Operating Revenues and Expenses:Interest Income 4,096 1,973 6,069Property Taxes 82,957 82,957System Facility Fees 139,924 139,924Interest Expense (89,538) (89,538)

Total Non-Operating Revenues and Expenses 87,053 52,359 139,412-

Change in Net Position $ 89,281 $ (139,791) $ (50,510)

The accompanying notes are an integral part of this statement.-14-

EAST QUINCY SERVICES DISTRICT STATEMENT OF CASH FLOWS-PROPRIETARY FUNDS FOR THE YEAR

ENDED JUNE 30, 2015

Cash Flows from Operating Activities:

Business-TypeActivities

Water SewerFund Fund Total

Cash Received from Costomers $ 540,491 $ 729,509 $1,270,000Cash Payments to Employees (208,856) (214,302) (423,158) Cash Payments to Suppliers for Goods and Services (207,710) (475,114) (682,824) Net Cash Provided (used) by Operating Activities 123,925 40,093 164,018

Cash Flows from Non-Capital Financing Activities:Property Taxes 82,957 82,957

Net Cash Provided (used) by Non-Capital Financing Activities 82,957 - 82,957

Casb Flows from Capital and Related Financing Activities:Purchases of Fixed Assets (10,440) (25,944) (36,384)Interfund Loans (163,115) 163,115Principal Payments on Long-term Debt (46,000) (46,000)Interest Payments on Long-term Debt - (89,538) (89,538)Proceeds from Special Assessment 139,924 139,924

Net Cash Provided (used) by Capital Financing Activities (173,555) 141,557 (31,998)

Cash Flows from Investing Activities:Interest Received 4,096 1,973 6,069

Net Cash Provided (used) by Investing Activities 4,096 1,973 6,069

Net Increase (Decrease) in Cash and Cash Equivalents 37,423 183,623 221,046

Casb and Cash Equivalents:Balance - July 1 816,747 1,062,155 -1,878,902

Balance - June 30 $ 854,170 $1,245,778 $2,099,948

Reconciliation:Operating Income (Loss)

Adjustments to Reconcile Operating Income (Loss) to NetCash Provided by Operating Activities:

Depreciation

$ (56,437)

114,435

$ (195,400)

198,739

$ (251,837)

313,174(Increase)/Decrease in Accounts Receivable 32,342 (2,857) 29,485(Increase)/Decrease in Prepaid Expenses 8,984 8,984 17,968Increase/(Decrease) in Accounts Payable (15,257) (5,040) (20,297)Increase/(Decrease) in Utility Deposits (515) 449 (66)Increase/(Decrease) in Net OPEB Obligation 39,429 39,429 78,858Increase/(Decrease) in Payroll Liabilities 944 (4,211) (3,267)

Net Cash Provided (used) by Operating Activities $ 123,925 $ 40,093 $ 164,018


EAST QUINCY SERVICES DISTRICT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2015

NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The District provides water and sewer services to approximately 960 residential and commercial customers within the boundaries of the District.

East Quincy Services District (District) accounts for its financial transactions in accordance with accounting principles generally accepted in the United States of America (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB) and the American Institute of Certified Public Accountants (AICPA).

1. Reporting Entity

The District's combined financial statements include the accounts of all its operations. The District evaluated whether any other entity should be included in these financial statements. The criteria for including organizations as component units within the District's reporting entity, as set forth in GASB Statement No. 14 "The Financial Reporting Entity" and GASB Statement No.39 "Determining Whether Certain Organizations Are Component Units," include whether:

The organization is legally separate (can sue and be sued in its name) The District holds the corporate powers of the organizationThe District appoints a voting majority of the organization's boardThe District is able to impose its will on the organizationThe organization has the potential to impose a financial benefit/burden on the DistrictThere is fiscal dependency by the organization on the DistrictThe economic resources received or held by the separate organization are entirely oralmost entirely for the direct benefit of the primary governmentThe primary government is entitled to, or has the ability to otherwise access, a majority ofthe economic resources received or held by the separate organizationThe economic resources received or held by an individual organization that the specific primary government is entitled to, or has the ability to otherwise access, are significant to that primary government

Based on these criteria, the District has no component units. Additionally, the District is not a component unit of any other reporting entity as defined by the GASB Statement.

2. Basis of Presentation, Basis of Accounting

a. Basis of Presentation

Government-wide Statements: The statement of net position and the statement of activitiesinclude the fmancial activities of the overall government, except for fiduciary activities.


JUNE 30, 2015

Eliminations have been made to minimize the double-counting of internal activities. Business-type activities are financed in whole or in part by fees charged to external parties.

The statement of activities presents a comparison between direct expenses and program revenues for the different business-type activities of the District. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. The District does not allocate indirect expenses in the statement of activities. Program revenues include (a) fees, fines, and charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements: The fund financial statements provide information about the District's funds, with separate statements presented for each fund category. The emphasis of fund financial statements is on major enterprise funds, each displayed in a separate colunm.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.

The District reports the following major Enterprise Funds:

The Water Fund accounts for water revenue, expenses, and net position. The Sewer Fund accounts for sewer revenue, expenses, and net position.

b. Measurement Focus, Basis of Accounting

Proprietary Fund Financial Statements: These fmancial statements are reported using the economic resources measurement focus. They are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

When the District incurs an expense for which both restricted and unrestricted resources may be used, it is the District's policy to use restricted resources fust, then unrestricted resources.

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JUNE 30, 2015

Under GASB Statement No. 20, "Accounting and Financial Reporting for Proprietary Funds and Other Govermnental Entities That Use Proprietary Fund Accounting," all proprietary funds will continue to follow Financial Accounting Standards Board ("FASB") standards issued on or before November 30, 1989. However, from tbat date forward, proprietary funds will have the option of either 1) choosing not to apply future FASB standards (including amendments of earlier pronouncements), or 2) continuing to follow new FASB pronouncements unless they conflict with GASB guidance. The District has chosen not to apply future FASB standards.

3. Assets, Liabilities, and Eguity

a. Cash, Cash Eguivalents and Concentrations of Risk

For the purpose of the statement of cash flows, highly liquid investments, including restricted funds, are considered to be cash equivalents if they have a maturity of three months or less when purchased. The District considers cash, investments in the Local Agency Investment Fund, and reserved cash to be cash equivalents.

Cash balances held in banks are insured to $250,000 by the Federal Depository InsuranceCorporation.

The District is authorized to deposit cash and invest excess funds by California Govermnent Code Section 53648 et seq. The funds maintained by the District are either secured by federal depository insurance or are collateralized.

b .. Capital Assets

Property, Plant and Equipment owned by the Enterprise Fund is stated at cost. Donated fixed assets are recorded at their estimated fair value at the date of the donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. A capitalization threshold of $5,000 is nsed. Capital assets are being depreciated using the straight-line method over the following estimated useful lives:

Asset Class BuildingsOffice EquipmentMeters and Maint. EquipmentUtility Plant and Infrastructure

Estimated Useful Lives

333-75-2015-50

Gain or loss is recognized when assets are retired from service or are otherwise disposed.

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JUNE 30, 2015

c. Property Tax

Secured property taxes attach as an enforceable lien on property as of January I. Taxes are payable in two installments on December 10 and April 10. Unsecured property taxes are payable in one installment on or before August 31. The County of Plumas bills and collects the taxes for the District. The District recognizes tax revenues when apportioned by the County.

d. Receivable and Payable Balances

The District believes that sufficient detail of receivable and payable balances is provided in the financial statements to avoid the obscuring of significant components by aggregation. Therefore, no disclosure is provided which disaggregates those balances.

There are no significant receivables which are not scheduled for collection within one year of yearend.

e. Deferred Inflows and Deferred Outflows of Resources

In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expenses/expenditure) until then. Currently, the District has only one item that qualifies for reporting in this category, deferred amounts from District pension contributions.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District has only one type of item that qualifies for reporting in this category, deferred recognition of pension plan earnings.

f. Compensated Absences

Accumulated unpaid employee vacation leave benefits are recognized as liabilities of the District. The current portion of the liabilities is recognized in the Water Fund and Sewer Fund at year end.

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JUNE 30, 2015

g. Eguity Restrictions

Following are the District's designated portions of the Net Position:

Designated for System Facilities $ 911,237Designated for Vehicles 44,704Other Umestricted Net Position 554,100

Total Umestricted Net Position $ 1,510,041

The System Facility Reserves are for futme replacement of the water and sewer systems. The Vehicle Fund Reserve is for futme replacement of district vehicles. Additionally, the water fund has a Reserve to track refundable customer utility deposits.

h. Use of Estimates

The preparation of financial statements in conformity with GAAP requires the use of management's estimates. Actual results could differ from those estimates.

i. Components of Net Position

For Government-Wide Financial Statements, equity is classified in three components as follows:

Net Investment in Capital Assets consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of debt borrowings that are attributable to the acquisition, construction, or improvement of those assets.

Restricted Net Position consists of net assets with restrictions placed on their use either by external groups such as contributors, grantors or regulations of other governments, or law through constitutional provisions or enabling legislation.

Umestricted Net Position consists of all other net assets that do not meet the definition of"restricted" or "net investment in capital assets."

When both restricted and umestricted resources are available for use, it is the District's policy to use restricted resources first, then unrestricted resources as they are needed.

j . Change in Accounting Principles

In June 2012, the GASB issued Statement No. 68, "Accounting and Financial Reporting forPensions-an Amendment of GASB No. 27," which is effective for fiscal years beginning after


JUNE 30, 2015

June 15, 2014. The District has implemented the provisions of this Statement for the year ended June 30, 2015.

The Statement requires munerous new pension disclosures in the notes to the financial statement and two new 10-year schedules as required supplementary information. Also, for the first time the District is required to recognize pension expense, report deferred outflows of resources and deferred inflows of resources related to pensions, and a net pension liability for its proportionate shares of the collective pension expense, collective deferred outflows of resources and deferred inflows of resources related to pensions and collective net pension liability. The reporting of these new amounts on government-wide financial statements, along with the effect of the restatement of the beginning net position, will also affect the District's government-wide net position as follows:

Governmental Activities:

Net Position asPreviously GASB68 Net Position

Stated Restatement As Restated

Total Net Position $ 7,725,938 $ (189,118) $ 7,536,820 Total Governmental Activities $ 7 , 725,938 $ (189,118) $ 7,536,820

NOTE 2- COMPLIANCE AND ACCOUNTABILITY

1. Finance-Related Legal and Contractual Provisions

In accordance with GASB Statement No. 38, "Certain Financial Statement Note Disclosures," violations of finance-related legal and contractual provisions, if any, are reported below, along with actions taken to address such violations:

ViolationNone reported

Action Taken Not applicable

2. Deficit Fund Net Assets of Individual Funds

Following are funds having deficit fund net assets at year end, if any, along with remarks which address such deficits:

Fund Name None

Deficit Amount

n/aRemarks n/a

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JUNE 30, 2015

NOTE 3- PROPERTY, PLANT AND EQUIPMENT

A summary of changes in fixed assets follows:

Balance6/30/14 Additions Dispositions

Land and Easements $ 158,430 $ 44,966 $ - $ 203,396Water System 3,757,614 10,440 44,966 3,723,088Sewer System 9,502,611 25,944 9,528,555

13,418,655 81,350 44,966 13,455,039

Accnmulated Depreciation (5,426,515) (313,174) (5,739,689)

Property, Plant and Equipment, Net $ 7,992,140 $ (231,824) $ 44,966 $ 7,715,350

Depreciation was charged to functions as follows:

Water $ 114,435Sewer 198,739Total $313.174

NOTE4-BONDSPAYABLE

Long Term Debt is summarized as follows:

5.125% Series 1996 USDA Improvement Bonds, $2,400,020Original Issue, Semi-Annual

Balance6/30/14 Increases Decreases

Balance6/30/15

Payments of Principal and InterestTotal Bonds Payable

$ 1,785,083 $ 46,000 $ 1,739,083$ 1,785,083 $ - $ 46,000 1,739,083

Less Current PortionLong-Term Portion of Bonds Payable

(48,500)$ 1,690,583

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JUNE 30, 2015

Debt service requirements on long term debt at June 30, 2015 are as follows:

Year Ending June 30, Princi[Jal Interest Total2016 48,500 89,128 $ 137,6282017 5\,100 86,642 $ 137,7422018 53,800 84,023 $ 137,8232019 56,600 81,266 $ 137,8662020 59,600 78,365 $ 137,9652021-2025 343,900 343,140 687,0402026-2030 441,800 245,396 687,1962031-2035 567,600 119,961 687,5612036 116,181 5,954 122,135Totals $ 1,739,081 $ 1,133,875 $ 2,872,956

NOTE 5- EXCESS OF EXPENSES OVER APPROPRIATIONSAppropriations category Water Fund:

Salaries and Benefits

Insurance

Amount Explanation

$ 16,682 The District does not budget for OPEB expense

$ 984 Minor cost overruns

Vehicles and Equipment $ 1,859 Minor cost overruns

Office $ 1,600 Minor cost overruns

Legal,Accounting and Professional $ 16,863 Tank #1- Rehab Project

Permits and Fees $ 607 Minor cost overruns

Depreciation $ 114,435 The District does not budget for Depreciation

Sewer Fund:Salaries and Benefits $ 14,672 The District does not budget for OPEB expense

Legal,Accounting and Professional $ 39,929 Waste water treatment plan study

Office

Insurance

Depreciation

$ 1,731 Minor cost overruns

$ 198,739 The District does not budget for Depreciation

$ 984 Minor cost overruns

NOTE 6- COMMITMENTS AND CONTINGENCIES

Legal Matters The District is not currently involved in any litigation. In the opinion of management and legalcounsel, the disposition of all litigation pending will not have a material effect on the financial statements.


JUNE 30, 2015

NOTE 7- RISK MANAGEMENT AND LITIGATION

The District is exposed to various risks of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees and customers; and natural disasters. The District has managed these risks by obtaining coverage from commercial insurance companies as well as providing employee education and prevention programs. All risk management activities are accounted for in the Water Fund and Sewer Fund. Expenses and claims are recognized when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. In determining claims, events that might create claims, bnt for which none have been reported are considered.

The District's attorney estimates that the amount of aetna! or potential claims against the District as of June 30, 2015 will not materially affect the financial condition of the District. Therefore, the funds contain no provision for estimated claims. Information relating to an analysis of claims activities for the year was not available.

NOTE 8- FORMATION OF AMERICAN VALLEY COMMUNITY SERVICE AUTHORITY

In October 1995, The East Quincy Services District formed a Joint Powers Authority (JPA) with the Quincy Community Services District to more effectively serve the residents of Quincy, California. The main task of the JPA is to oversee the joint use of the Quincy Community Services District Sewage Treatment Plant. The agreement will allow East Quincy Services District to use the sewage treatment plant for at least 40 years upon payment of a one-time investment of $1.822 million. The payments for the investment were completed during the fiscal year ending June 30, 1997.

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JUNE 30, 2015

NOTE 9- SEGMENT INFORMATION FOR ENTERPRISE FUNDS

The District maintains enterprise funds, which provide water and sewer services. Segment information for the year ended June 30,2015 is as follows:

Water Enterprise

SewerEnterprise

Operating Revenues $ 564,079 $ 731,917Operating Expenses Excluding Depreciation (447,416) (725,328)Depreciation Expense (114,435) (198,739)Operating Income(Loss) 2,228 (192,150)Non-Operating Revenues and Expenses 87,053 52,359Net Income(Loss) $ 89,281 $ (139,791)

Fixed Asset Additions $ 10,440 $ 25,944Net Working Capital $ 820,098 $ 1,222,823Total Assets $ 2,664,728 $ 7,283,622Bonds and Other Long-Term Liabilities $ 313,684 $ 2,004,265Total Equity $ 2,322,064 $ 5,164,245

NOTE 10- PENSION PLAN

Plan Description

The District, as the employer, participates in the cost-sharing, multiple-employer defined benefit pension plan administered by the California Public Employees' Retirement System (CalPERS). The plan provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members, and beneficiaries. A full description of the pension plan benefit provisions, and assumptions for funding purposes can be obtained in Appendix B of the June 30,2013 CalPERS actuarial evaluation report available at https://www.calpers.ca.gov/page/formspublications.

Contributions

The contribution requirements of the Plan are established by Section 20814(c) of the California Public Employees' Retirement Law, which requires that employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. For the measurement period ended June 30, 2014 the active employee contribution rate was 6.25%(PEPRA) and 7%(Misc) of annual pay, and the Districts contribution rate was 6.25% (PEPRA) and 18.5% (Mise). Contributions to the pension plan from the District were $51,920 for the year ended June 30, 2015.

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JUNE 30, 2015

Pension Liabilities, Pension Expense, and Deferred Outflows and Inflows of Resources Related to Pensions

At June 30, 2015, the District reported a net pension liability of $173,191 for its proportionate share of the total net pension liability. The net pension liability was measured as of June 30,2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2014. The District's proportion of the net pension liability was based on the District's contributions received by the pension plan relative to the totalcontributions received by the pension plan for all participating employers as of June 30, 2014. Based upon this information, the District's proportion was .0077%.

For the year ended June 30, 2015, the District recognized pension expense of $33,392 At June30, 2015, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Defurred Outflows Deferred Infuws ofResources ofResources

Diffurences between expected andActual Experience $ $

Changes of Assumption

Net Diffurence between Projectedand Actual Earnings on Pension PlanInvestments

Adjustment due to Diffurences inProportions

District Contributions Subsequent

38,529

to the Measurement Date 39,892 10,790

Total $ 39,892 $ 49,319

$39,892 of contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2015. Any other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended June 30:2016 $ 13,4852017 13,4852018 12,7162019 9,633Total $ 49,319

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JUNE 30, 2015

Actuarial Assumptions

The total pension liability was determined by an actuarial valuation as of June 30. 2014, using the following actuarial assumptions, applied to all prior periods included in the measurement:

Discount Rate: Inflation:Salary Increases: Investment Rate of Return:

Mortality Rate Table: Post Retirement Benefit

7.50%2.75%Varies by Entry Age and Service7.50% net of Pension Plan Investment and AdministrativeExpensesDerived using CalPERS Membership Data for all Funds

Increase Contract COLA up to 2.75% until Purchasing Power Protection AllowanceFloor on Purchasing Power applies, 2.75% thereafter

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. The table below reflects long-term expected real rates of return by asset class. The rate of return was calculated using the capital marked assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

New Strategic Real Return Real ReturnAsset Class Allocation Years 1-10 1 years 11 +2

Global Eqcity 47.00% 5.25% 5.71%Global Fixed Income 19.00 0.99 2.43Inflation Sensitive 6.00 0.45 3.36Private Eqcity 12.00 6.83 6.95Real Estate 11.00 4.50 5.13Infrastructure and Forestland 3.00 4.50 5.09Liquidity 2.00 (0.55) (1.05)

1An expected inflation of2.5% used fur this period2An expected inflation of3.0% used fur this period

Discount Rate

The discount rate used to measure the total pension liability was 7.50%. To determine whether the municipal bond rate should be sued in the calculation of a discount rate for each plan,

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JUNE 30, 2015

CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.50% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.50% is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called "GASB Crossover Testing Report" that can be obtained at the CalPERS' website under the GASB 68 section.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the net pension liability/(asset) of the Plan as of the measurement date using the discount rate of 7.50%, as well as what the net pension liability/(asset) would be if it were calculated using a discount rate that is 1 percentage-point lower (6.50%) or 1 percentage point higher (8.50%) than the current rate:

Plan's Net Pension

Discount Rate - 1% (6.50%)

Current DiscountRate (7.50%)

Discount Rate + 1% (8.50%)

Liability/(Asset) $ 288,619 $ 189,118 $ 106,541

Pension Plan Fiduciarv Net Position

Detailed information about the pension plan's fiduciary net position is available in the separately issued financial report of CalPERS which can be located at https:ljwww.calpers.ca.gov/page/forms-pub\ications.

NOTEll-OTHERPOSTEMPLOYMENTBENETITS

In the fiscal year ending June 30, 2010, the District implemented Governmental Accounting Standards Board Statement No. 45 Accounting and Reporting for Postemployment Benefits Other than Pensions, for certain postemployment health care and life insurance benefits provided by the District. The requirements of this Statement were implemented prospectively, and accordingly, for financial reporting purposes, no liability is reported for the postemployment health care and life insurance benefits liability at the date of transition. The recognition of the liability accumulated from prior years will be phased in over 30 years.

Plan Description and Eligibility Requirements

The District provides certain postretirement healthcare benefits, as established by board policy, to eligible employees who retire from the District based on standards determined by PERS.

The District pays health insurance premiums on behalf of pre-Medicare retirees at a rate of 45%of the cost.


JUNE 30, 2015

All contracts with District employees will be renegotiated periodically in the future, thus costs and benefits are subject to change. Benefits and contribution requirements for the OPEB plan are established by various labor agreements.

For the District, OPEB benefits are administered by District personnel. No separate financial statements are issued.

Funding Policy

The District currently pays for post employment healthcare benefits on a pay-as-you-go basis. Due to the requirements of GASB No. 45, assets intended to fund future obligations are not considered to offset the unfunded benefit obligation until the assets are transferred to an irrevocable trust designed to pay for future OPEB obligations.

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 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. Significant actuarial methods and assumptions are as follows:

Plan TypeActuarial Valuation DateAlternative Measurement MethodAmortization MethodRemaining Amortization PeriodActuarial Assumptions:

Investment Rate of Return Projected Salary Increases Healthcare Inflation Rate

Single Employer07/1/12Projected UnitLevel Dollar25 Years

4.0%5.0%5.7%

The District has elected to calculate information of an actuarial nature using the alternative measurement method permitted by GASB Statement No. 43 for single-employer plans with fewer than one hundred employees.

Annual OPEB Cost and Net OPEB Obligations

The following table shows the District's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the District's net OPEB obligation:

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JUNE 30, 2015

Description June 30, 2015

Normal Cost (service cost for one year)Amortization of Unfunded Acnarial Accrued LiabilityInterest on Normal Cost and Amortization

$ 50,05828,800

Aunual Required Contribution (ARC) Interest on Net OPEB ObligationAdjustment to Aunual Required Contribution

78,858

Annual OPEB Cost (Expense) 78,858

Contribution toward tbe OPEB Cost

Increase (Decrease) in Net OPEB ObligationNet OPEB Obligation, Beginning of tbe Year

78,858 375,318

Net OPEB Obligation, End oftbe Year $ 454,176

Three year trend information will not be fully available until the third year that the District has adopted GASB Statement No. 45.

Funding Status and Funding Progress

The required schedule of funding progress presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.

The funded status of the plan as of June 30,2015 is as follows:

Actuarial UAALasaActuarial Accrued Unfunded Percentage

Actuarial Value of Liability AAL Funded Covered Of CoveredValuation Assets (AAL) (UAAL) Ratio Payroll Payroll

Date a2 (b) b-a alb c) ((b- a)/c) 06/30/13 $ $ 436,153 $ 436,153 0.00% $ 240,193 174.1%06/30/14 $ - $ 498,015 $ 498,015 0.00% $ 236,964 210.2%06/30/15 $ $ 498,015 $ 498,015 0.00% $ 259,463 191.9%

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events in the future. Examples include assumptions about future employment and termination, mortality, and healthcare cost trends. 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.

-30-

EAST QUINCY SERVICES DISTRICTSTATEMENT OF OPERATIONS- WATER FUND BUDGET AND ACTUAL

FOR THE YEAR ENDED JUNE 30, 2015

Budget AmouutsOriginal Final Actual

Operating Revenues:Utility Revenue $ 450,000 $ 450,000 $ 528,822 $ 78,822Other Operating Revenue 4,500 35,257 35,257

Total Operating Revenue 454,500 450,000 564,079 114,079

Expenses:Salaries and Benefits 228,601 229,297 245,979 (16,682)lnsurance 8,000 8,000 8,984 (984)Legal, Accouuting and Professional Services 32,900 33,900 50,763 (16,863)Utilities 85,000 85,000 74,192 10,808Vehicles and Equipment 4,000 4,000 5,859 (1,859)Permits and Fees 10,000 10,000 10,607 (607)Depreciation 114,435 (114,435)Repairs and Maintenance 34,000 34,000 26,891 7,109Office 8,000 10,000 11,600 (1,600)Director's Fees 2,846 3,500 2,224 1,276Miscellaneous 11,500 11,500 10,317 1,183Contingencies

Total Operating Expenses 424,847 429,197 561,851 (132,654)

Operating Income (Loss) 29,653 20,803 2,228 (18,575)

Non-Operating Revenue(Expense):Interest Income 2,000 2,000 4,096 2,096Property Taxes 80,000 85,000 82,957 (2,043)System Facility Fees 9,000 9,000 - (9,000)

Total Non-Operating Revenues(Expenses) 91,000 96,000 87,053 (8,947)

Net Income (Loss) $ 120,653 $ 116,803 $ 89,281 $ (27,522)

-31-

·- ------ --- - ·-----"'----------

EAST QUINCY SERVICES DISTRICTSTATEMENT OF OPERATIONS- SEWER FUND BUDGET AND ACTUAL

FOR THE YEAR ENDED JUNE 30, 2015

Budget AmouutsOriginal Final Actnal

Operating Revenues:Utility Revenue $ 700,000 $ 700,000 $ 721,704 $ 21,704Other Operating Revenue 3,700 3,700 10,213 6,513

Total Operating Revenue 703,700 703,700 731,917 28,217

Expenses:Salaries and Benefits 230,201 231,598 246,270 (14,672)Insurance 8,000 8,000 8,984 (984)Legal, Accounting and Professional Services 27,900 27,900 67,829 (39,929)Utilities 23,000 23,000 21,919 1,081Vehicles and Equipment 6,000 6,000 3,468 2,532Permits and Fees 5,000 5,000 746 4,254Depreciation - 198,739 (198,739)Sewage Treatment 356,291 356,291 355,012 1,279Repairs and Maintenance 23,000 23,000 8,377 14,623Office 8,000 9,000 10,731 (1,731)Director,s Fees 2,846 3,500 1,864 1,636Miscellaneous 5,500 5,500 128 5,372

Total Operating Expenses 695,738 698,789 924,067 (225,278)

Operating Income (Loss) 7,962 4,911 (192,150) (197,061)

Non-Operating Revenue(Expense):Interest Income 2,000 2,000 1,973 (27)System Facilty Fees - 139,924 139,924Interest Expense (89,538) (89,538)

Total Non-Operating Revenues(Expenses) 2,000 2,000 52,359- 50,359

Net Income (Loss) $ 9,962 $ 6,911 $ (139,791) $ (146,702)

-32-

---- ----- -- ------

SCHEDULE OF THE EAST QUINCY SERVICES DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM

WUSCELLANEOUSPLJune 30, 2015

District's Proportion of the Net Pension Liability/(Asset) .00304%

Districts Proportionate Share of the Net Pension Liability/(Asset) $ 173,137

District's Covered-Employee Payroll $ 195,939

District's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered-Employee Payroll 88.36%

Plan's Proportionate Share of the Fiduciary Net Position as aPercentage of the Plan's total Net Pension Liability 74.78%

Notes to Schedule:Only the current fiscal year is presented because 10-year data is not yet available.

-33-

SCHEDULE OF THE EAST QUINCY SERVICES DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM

(PEPRA PLAN)

June 30, 2015

District's Proportion of the Net Pension Liability/(Asset) .00000%

Districts Proportionate Share of the Net Pension Liability/(Asset) $ 55

District's Covered-Employee Payroll $ 59,535

District's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered-Employee Payroll 0.09%

Plan's Proportionate Share of the Fiduciary Net Position as aPercentage of the Plan's total Net Pension Liability 83.13%


-34-

--··- ·----•r••.-.-----

EAST QUINCY SERVICES DISTRICT'S SCHEDULE OF DISTRICT CONTRIBUTIONS

CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEMSCELLANEOUSPL

Fiscal Year 2014-15

Actuarially Determined Contribution $ 30,690

Contributions in Relation to the Actuarially Determined Contribution (37,013)

Contribution Deficiency (Excess) $ (6,323)

Covered Employee Payroll $ 195,939

Contributions as a Percentage of Covered-Employee Payroll 18.89%


-35-

·-----·-" - - --·,_ - · ---..·-----··

EAST QUINCY SERVICES DISTRICT'S SCHEDULE OF DISTRICT CONTRIBUTIONS

CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM(PEPRA PLAN)

Fiscal Year 2014-15

Actuarially Determined Contribution $ 2,702

Contributions in Relation to the Actuarially Determined Contribution (2,879)

Contribution Deficiency (Excess) $ (177)

Covered Employee Payroll $ 59,353

Contributions as a Percentage of Covered-Employee Payroll 4.85%


-36-

Singl !QJJljJdXU J2 t John E. Auman, CPA

Clay E. Singleton, CPA, MSAcc

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

Board of DirectorsEast Quincy Services DistrictQuincy, CA

Members of the Board of Directors:

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the business-type activities, each major fund, and the aggregate remaining fund information of East Quincy Services District as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the District's basic financial statements and have issued om report thereon dated September 11, 2015.

Internal Control over Financial Reporting

In planuing and performing om audit of the fmancial statements, we considered the District's internal control over fmancial reporting (internal control) to determine the audit procedmes that are appropriate in the circumstances for the purpose of expressing om opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal controL Accordingly, we do not express an opinion on the effectiveness of the District's internal controL

Our consideration of the internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses, or significant deficiencies may exist that were not identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal comse of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the District's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies described in

Susanville: Chester:1740 Main Street, Suite A, Susanville, CA 96130530.257.1040 Fax: 530.257.8876

[email protected] www.sa-c.eas.com

-3!-

PO Box 795, Chester, CA 96020530.258.2272 Fax: 530.258.2282

- · ····- ..... -··--------

the accompanying schedule offmclings and questioned costs listed as items 2015-1 and 2015-2to be material weaknesses.

A significant deficiency is a deficiency, or combination of deficiencies in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies described in the accompanying schedule of findings and questioned costs as items 2015-1 to 2015-3 to be significant deficiencies.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, provicling an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.

District's Response to Findings

The District's response to the fmdings identified in our audit is described in the accompanying schedule of findings and questioned costs. The District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accorclingly, we express no opinion on it.

Purpose of the Report

This purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Respectfully submitted,

cSingletonAuman PC /Susanville, CASeptember 11, 2015

-38-

- ---- ------ ' ---- ----- ·----··-·-····-·------

EAST QUINCY SERVICES DISTRICT COMBINED SCHEDULE OF FINDINGS AND RESPONSES JUNE 30,

2015

EXECUTIVE SUMMARY

East Quincy Services District provides water and sewer services to residential and commercial customers within the boundaries of the District. The quality of the District's internal controls is highly dependent upon involvement io the day to day operations by the District Board Members. Also, due to the limited number of employees of the District, there is an inability to segregate the custody of and accountability for District assets in the manner generally required for model systems of internal accounting controls. A summary of the auditors' results follows:

1. Type of Auditors' Report on Financial Statements: Unmodified2. Internal Control Findings: 3 Significant Deficiencies, 2 beiog Material Weaknesses.3. Material Noncompliance Noted: None.

-39-

EAST QUINCY SERVICES DISTRICTCOMBINED SCHEDULE OF FINDINGS AND QUESTIONED COSTS

JUNE 30, 2015

YELLOW BOOK SECTION Material Weakness

Finding 2015-1 Lack of Segregation of Duties

Criteria Upon Which Audit Finding is Based (Legal Citation)Internal Control Standards.

Finding (Condition)An inadequate segregation of duties exists.

Amount of Questioned Cost, How Computed and PrevalenceNone.

EffectThe District has exposure to risk of fmancial statement misstatement and the potentialrisk of errors or fraud.

CauseDue to the District only having a few personnel assigned to duties that involve access tothe general ledger and other accounting records and who also have custody of andresponsibility for handling cash and other assets, an inadequate segregation of duties exists.

RecommendationWe reco=end that the District employees and Board examine all activities of theDistrict carefully to help decrease the risks of any individual being in a position to both perpetrate and conceal errors or fraud.

District's ResponseDue to the number of employees of the District, it is not possible for the District to costeffectively mitigate this finding. The District cannot, with its current budget hire anadequate number of employees to insure that custody of assets and accountability for assets is separated.

The District does, however, believe that being aware of this weakness will insure that existing employees and Board members will maintain diligence to potential risks of not having an adequate segregation of duties.

-40-


JUNE 30, 2015

YELLOW BOOK SECTION Material Weakness

Finding 2015-2 Financial Reporting

Criteria Upon Which Audit Finding is Based (Legal Citation)The Organization is responsible for preparing complete and accurate financial statements and footnote disclosures in accordance with Generally Accepted Accounting Principles (GAAP).

Finding (Condition)Similar to many other small special districts, the District does not have policies and procedures in place to ensure that complete and accurate financial statements, MD&Aand footnote disclosures are prepared in accordance with GAAP prior to the annual audit. Management relies upon the auditor to recommend footnote disclosures for the financial statements and to prepare adjusting journal entries for approval in order to report financial information in accordance with GAAP.


EffectThere is a risk that a material financial statement misstatement may exist and not beprevented or detected by the District's system of internal control.

CauseThis condition has always existed at the District, and is being reported in accordance withStatement on Auditing Standards No. 122 (SAS 122).

RecommendationWe recommend that the District consider the cost benefit of hiring an accountant familiar with GAAP or contracting with an independent CPA firm to compile financial statementsin conformity with GAAP.

District's ResponseThe District has determined that the costs of correcting this control weakness outweighthe benefits to be received. The District will continue to rely on the independent auditor to prepare its annual financial statements.


JUNE 30, 2015

YELLOW BOOK SECTION Significant Deficiency

Finding 2015-3 Reconciliation of the Utility Billing System to the General Ledger

Criteria Upon Which Audit Finding is Based (Legal Citation)Internal Control Standards.

Finding (Condition)The ammmt of utility revenue posted to the utility billing system does not reconcile withthe utility revenue in the genera! ledger.


EffectThe District has exposure to risk of financial statement misstatement and the potentialrisk of errors or fraud.

CauseThe District has been unable to get enough help from the software vendor to producereports that will help the District reconcile revenue on the general ledger to the utilitybilling system.

RecommendationThe District should develop a system of reconciling revenue on the general ledger to theutility billing system. The District should consider getting help from the software vendor and reconciling short periods of time until a pattern is determined for any discrepancies.

District's ResponseThe District concurs with this finding.

-42-

EAST QUINCY SERVICES DISTRICTSUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS

JUNE 30, 2015

Finding 2014-1 Due to the number of employees an inadequate segregation of duties exists.

StatusNot implemented. See current year finding 2015-l.

Finding 2014-2Similar to many other small special districts, the District does not have policies and procedures in place to ensure that complete and accurate financial statements, MD&A and footnote disclosures are prepared in accordance with GAAP prior to the annual audit. Management relies upon the auditor to reco=end footnote disclosures for the financial statements and to prepare adjusting journal entries for approval in order to report financial information in accordance with GAAP.

StatusNot implemented. See current finding 2015-2.

Finding 2014-3 The amount of utility revenue posted to the utility billing system does not reconcile with the utility revenue in the general ledger.

StatusNot implemented. See current year finding 2015-3.

-43-

---- . ' ------"·-- ··--···"·- -----··--- --

EAST QUINCY SERVICES DISTRICT CORRECTIVE ACTION PLAN JUNE

30, 2015

Person Monitoring Corrective Action PlanGeneral Manager, Mike Green

Finding 2015-1 Lack of Segregation of Duties

Finding (Condition)An inadequate segregation of duties exists.

Corrective Action Planned Due to the number of employees of the District it is not possible for the District to cost effectively mitigate this finding. The District cannot, with its current budget hire an adequate number of employees to insure that custody of assets and accountability for assets is separated.

The District does, however, believe that being aware of this weakness will insure that existing employees and Board members will maintain diligence to potential risks of not having an adequate segregation of duties.

Expected Completion DateOngoing.

Finding 2015-2 Financial Reporting

Finding (Condition)The District is responsible for preparing complete and accurate financial statements, footnote disclosures, and management's discussion and analysis in accordance with Generally Accepted Accounting Principles (GAAP).

Corrective Action Planned The District has determined that the costs of correcting this control weakness outweigh the benefits to be received. The District will continue to rely on the independent auditorto prepare its annual financial statements.

Expected Completion Date Ongoing

-44-

EAST QUINCY SERVICES DISTRICT CORRECTIVE ACTION PLAN (CONTINUED)

JUNE 30, 2015

Finding 2015-3 Reconciliation of the Utility Billing System to the General Ledger

Finding (Condition)The amount of utility revenue posted to the utility billing system does not reconcile with the utility revenue in the general ledger.

Corrective Action Planned The District's staff is continuing efforts to rectifY the problem.

Expected Completion DateJune 30,2016.

-45-

EQSD-QCSD Bi-District Rate Setting CommitteeProgress Report #3 1/22/16 {FINAL 2/1}

The Bi-District Rate-Setting Committee for wastewater treatment met for 2.5 hours on · Friday, January 22, 2016 in the QCSD Conference Room to continue its discussion around the financial reserves necessary to sustain the wastewater treatment plant (WWTP) serving American Valley.

The agenda included additional review of our work in advance of the Prop. 218 schedule, a review of the first six months of booked operating expenses for FY2015-16, a report on two upcoming capital projects, and the bi-district application for a state WWTP planning grant.

The Committee verified that Prop. 218 notices and protest hearings are required by that 1996 law amending the California constitution when there are new categories

of fees or charges, and increases in service fees within existing categories.

Further review of the California p gl?l_ _ _Districts Association's Proposition 218Guide for Special Districts shows that mailed notifications and a schedule for a protest hearing on rates and/or fees is necessary by either QCSD or EQSD (only when) their billed fees to customers will contain a future fee increase for water supply, wastewater collection, or wastewater treatment.

A continued review of the FY15/16 WWTP operating budget versus its booked expenses for the six months to date revealed that they (thus far) tracked well compared to the audited expenditures from FY14/15. There is no way to compress the period for review of a fiscal year's expenses in advance of the starting point for the following fiscal year.

This is why the Committee confirmed inDecember, 2015 that booked expensesafter six mo11_tos of WWTP operat ions would become our standard for projecting operating expenses for the following fiscal year (and thus any necessary rateincreases for that following year). This approach was deemed necessary due to both board's approval schedule for their individual budgets and potential Prop. 218 notifications and protest proceedings that must precede the July 1st activation date for any new rates.

Pace Engineering will present its WWTP feasibility study to the AVCSA meeting scheduled for February 23rd. This report will identify the pathways to comply with state requirements for a discharge permit whose notifications to QCSD will be tardy by almost a year as of that meeting. The final state requirements should be known

by June 2016, and Pace has a proximate idea of what the critical discharge limits are likely to be.------- -- - -------- --- ---- ·-

The options for the WWTP's retrofitting or new construction will be presented in thereport. As covered previously in Progress Report #1, final construction and commissioning of the updated plant is expected in December 2020. Some subjective benefits? Wastewater discharge to irrigation, groundwater, and the North Fork of the Feather River willbecome cleaner than it has ever been sinceAmerican Valley's population expanded toward its current total.

The day after the AVCSA meeting, state water regulators from Redding and Sacramento Offices will join us for a tour of the WWTP. Hopefully, they will take away an understanding of the fiscal challenge of only 2,787 dwelling unit equivalents

supporting technical and expensive WWTPtechnology.

Larry rep_()rt dthat the gorps of Engineer§ _is slowing progress on the boulder vein project with requests for information that are unclear. Larry will re-engage, and hopefully this will not result in anypostponement of construction next season.

There is nothing new on the planning grant for WWTP improvement, other than there having been an interest in the bi-district's median household income statistic by the agencies completing our application packet.

The next meeting of the committee will be on Friday 2/19/16.

QUINCY COMMUNITY SERVICES DISTRICTQUINCY-EAST QUINCY WASTEWATER TREATMENT PLANT

IMPROVEMENTSPLAN OF STUDY-Amendment

FEBRUARY 1, 2016

1. Scope of Work

Planning funds are being requested for the following:

• Preparation of a feasibility study/preliminary engineering report to evaluate

alternatives for making improvements to the existing WWTP and disposal

facilities;

• Perform Income Survey

• Environmental documentation for recommended alternative;

• Assistance with project funding procurement;

• Assist wrth Proposition 218 sewer rate increase proceedings;

• Project design.

An income survey will be conducted for OCSD and EQSD per Multi Agency Guidelines

for Median Household Income Surveys established for the State Water Resources

Control Board- Clean Water/Division of Drinking Water State Revolving Loan Fund

(SRF), and the United States Department of Agriculture- Rural Development.

Anticipated planning deliverables with associated tentative dates are shown in Table 1.

Quincy Community Services District 1Quincy-East Quincy Wastewater Treatment Plant Improvements

.

TABLE 1Quincy CSD WWTP ImprovementsAnticipated Planning Deliverables

.

Deliverable Draft FinalFeasibility Study/Preliminary Enqineering Report (PER) Feb 5, 2016 Jun 9, 2016

Oct15,2016lncom e Survey Sep 15, 2016

Environmental Documentation (CEQA & NEPA, as needed) Oct13 ?n1R nPrR

Submit final applications for project funding - Dec 23, 2016Obtain project funding commitments - Jun 16, 2017Complete Proposition 218 proceedings - Jan 11, 2018Design documents Sep 14, 2018 Oct 11,2018

TABLE 2Quincy CSD WWTP Improvements

Preliminary Planning Cost EstimateNo. ....· ....· Item . TotalCost (tl

1 INDIRECT COSTS

2 Basic Engineering Services3 Feasibility Study/Preliminary Engineering Report $100,000

4 Design survey and geotechnical investigation $40,000

5 10% Preliminary Design & Development Report (PDDR) $40,000

6 Portion of Design/Bid documentj:Jreparation $150,000

7 Total Engineering Services $330,0008 OTHER INDIRECT COSTS

9 Income Survey $20,000

10 Funding Application Assistance $30,000

11 Proposition 218 Compliance Assistance $10,000

12 Legal $20,000

13 Administration $20,000

14 Environmental Documentation $60,000

15 Assistance with Permits $10,000

16 Total Other Indirect Costs $170,000

17 TOTAL INDIRECT COSTS $500,000

18 Project Contingencies @ 0% of Indirect Costs $0

19 TOTAL ESTIMATED PROJECT COST $500,000(1) Preliminary costs based on July 2015 ENR of 10037.


Item

TABLE 3Quincy CSD WWTP Improvements

Proposed Preliminary Project Schedule. .

Action Target Date CompletionNo. . . . . Date

1 District authorizes PACE to prepare FAA & Plan of Study Oct 8, 2015

2 PACE submits application for planning funding to CWSRF Oct15,2015

3 Complete draft Feasibility Study/PER 1 Feb15,2016

4 QCSD & EQSD approve implementation of recommended option Jun 9, 2016

5 Begin environmental review & Income Survey Jun 13, 2016

6 Perform Mixing Zone and Dilution Study I Sep 26, 2016

7 Complete Income Survey Oct15,2016

8 Complete Environmental Documentation Dec 8, 2016

9 Submit final construction funding applications Jan 13, 2017

10 I Initiate Proposition 218 proceedings Jun 12, 2017

11 Complete Proposition 218 proceedings Jan 11, 2018

12 District directs PACE to proceed with design Feb 8, 2018

13 Complete design surveys and Geotechnical May 18,2018

14 Provide 10% POOR Jul 13,2018

15 Draft plans submitted to Districts and RWQCB Sep 28, 2018

16 District & RWQCB approves final design and specifications Oct 26, 2018

17 District invites construction bids Oct 29, 2018

18 Construction bids received Nov 29, 2018

19 Construction contract awarded Dec 13, 2018

20 Begin construction Jan 21, 2019

21 Construction complete Dec 31, 2020


N

Mike Green

From: Sent: To:Cc:Subject:

Water Boards

Oaxaca, Jasmine@Waterboards <[email protected]> Friday, January 22, 2016 2:49 PMOaxaca, Jasmine@WaterboardsBuffleben, Matthew@WaterboardsNotice of Violation for Failure to Meet Small Water Supplier Water ConservationRequirements

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" - MATTHE;N RODRIQUEZ"- SECil-ET..,AY 00

EOI'!If'.GNM >IP.L f>RGTEUION

State Water Resources Control Board

January 22, 2016 Sent via Electronic Mail

SUBJECT: NOTICE OF VIOlATION FOR FAILURE TO MEET SMALL WATER SUPPLIER WATER CONSERVATION REQUIREMENTS

On May 5, 2015, the State Water Resources Control Board (State Water Board) adopted Resolution 2015-0032, anEmergency Regulation for Statewide Urban Water Conservation (Emergency Regulation) pursuant to Water Code section1058.5. The Emergency Regulation became effective on May 18, 2015. Among other things, the Emergency Regulation is designed to achieve the 25 percent statewide potable water usage reduction through February 2016 ordered by Governor Brown in his April 1, 2015 executive order.

Section 865 (f)(1) of the Emergency Regulation requires that each public water supplier that supplies less than 3,000 customers, or supplies less than 3,000 acre feet annually to take one or both of the following actions:

(A) Limit outdoor irrigation of ornamental landscapes or turf with potable water by the persons it serves to no more than two days per week; or(B) Reduce by 25 percent its total potable water production relative to the amount produced in 2013.

Water Code section 1846(a)(2), provides that any person or entity that violates a regulation adopted by the State WaterBoard may be liable for up to five hundred dollars ($500) for each day the violation occurs.

We have reviewed your submitted small water supplier report and have determined that you have not met the requirements of the Emergency Regulation specified in Section 865(f)(1)(A) and/or (B). The Notice of Violation is an informal enforcement action intended to bring your attention to the violation and to give you an opportunity to return to compliance as soon as possible. The State Water Board requires that you comply with the Emergency Regulation. Failure

1

---------·--------------- ------- ----··----

to comply with the Emergency Regulation may subject you to formal enforcement action and subject to civil liability of up to $500 per day, for each day the violation continues.

As required by Governor Brown's executive order B-36-15, the State Water Board is in the process of modifying and extending the Emergency Regulation until October 31, 2016. Therefore, you should immediately evaluate your water conservation program to ensure that the impending extended Emergency Regulation is met in future months.

If you have any questions or need assistance regarding this matter, please contact me at {916) 322-5327 or [email protected], or Dr. Matthew Buffleben at {916) 341-5891 or [email protected].

Sincerely,

Jasmine Oaxaca, PEWater Resource Control Engineer, Special Investigations UnitOffice of EnforcementState Water Resources Control Board

2

Larry Sullivan

From: Sent: To:Cc:Subject:Attachments:

Burkhard Bohm <[email protected]> Wednesday, January 13, 2016 6:27 PM'Larry Sullivan' Bohm, Burkhardpreliminary Map for American Valley GW Management PlanQCSD_Wei1Ratings1.pdf; Ratings QCSD dec 9- 2008.pdl

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From: Larry Sullivan [C'la ;,,,::a·;-,'::·; J',-c;csd ..:onc] Sent: Wednesday,January 06, 2016 2:19PMTo: Burkhard Bohm; Denny ChurchillCc: Bill Martin; !'like Green; Katie GaySubject: American Valley Ground Water Management Plan

To All,At the next JPA meeting (Feb. or Mar.) I would like to discuss developing an American Valley Groundwater ManagementPlan.Burkhard is working on an American Valley Water Basin map, that will include the QCSD and EQSD wells. Any thoughts?

Larry SullivanGeneral ManagerQuincy Community Services District900 Spanish Creek Rd. Quincy, CA 95971-9393Phone: 530-283-0836Fax: 530-283-0838E-maiL i3 :-'r::: :i·J'rc"t:::iJ -::::-::Web: 1N'h'11' q.Jir·:>r::sJ ·:·::r

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QUINCY COMMUNITY SERVICES DISTRICT: November 26, 2008Priority raling table for future well locations.Criteria are indications of how soon the source can be brought on lllne.

Criteria:1 Access: site accessibility (right of way)2 Pipeline: proximity to delivery system3 Flow: well productivity4 Contamination: sources, known past5 Soils: vulnerability to contamination6 Ambient water quality; low mineral content7 PCA ratings, based on 2008 study

Weighting: Comments:1 bEtsed on 1994 Input data2 based on 1994 input data3 revised flow data

revised databased on DRASTIC map b tsed on 1994 input data

1

RATINGS:1 - least favorable5 - most favorable

Rating TableCriteria: 1 2 3 4 5 6 7

Weighting: 1 2 3 1 1 1 1

1 1 Gansner Spring, enhanceme2 2A Airport east evaluation area3 2B Airport west evaluation area4 3A High School Well, replace5 38 Kelsy Lane evaluation area6 4A Boyle Ravine, Coburn Well7 48 Goodwin explor. well8 5 FRC property, 2 existing9 6A Gansner Creek Fan

10 68 Dellinger evaluation area11 6C Bellomy Well, exlotlng12 7A Nugget Canyon Fan area13 78 Nugget well14 8 Courthoufie Annex Spring15 9 Elintbethtown Flat16 10 Area South of Jackson St.17 11 Spanish Creek western18 11A Sunset Well, existing19 11B Dublin Jack ev luatlon area20 11C Golf Well area, test well21 12 Bresclani well22 13 Norton Well, contaminated23 13 Norton Well, not cantamin.

access, good WQ, resolved assumed as In Bresciani Well assumed as in Bresciani Wellassumed as in extrapolated from current v.rating as In High School Wellrating based on Coburn & BRV2 wells good flow, limited access

_ good flow, access unlikelyassuming Bellamy well flow, assumed good WCuncertain flow, assumed good WOgood flow, good WQassumed good flow, assumed good WQ

flow, limited by WQflow data, probably good WQdata, rating is uncertain

!assuming Bellamy flow, good WQflow, limited by WQ, but could use severa

_ flow, limited by WQ, guarnateed access1!uncertain flow, good WQ

limited by WQ. flow, limited access

flow, limited by WQ, good access flow, limited by WQ, good access

max min

range

Hydrologic Region Sacramento RiverAmerican Va!ley Groundwater Basin

American Valley Groundwater Basin

• Groundwater Basin Number: 5-l 0• County: Plumas• Surface Area: 6,800 acres (11 square miles)

Basin Boundaries and HydrologyThe American Valley Groundwater Basin is bounded to the southwest and northeast by a northwest trending fault system. The basin is bounded to the northeast by Paleozoic metavolcanic rocks and is bounded on all other sides by Paleozoic marine sedimentary and meta-sedimentary rocks of the Sierra Nevada Mountains. Spanish Creek drains the valley and is tributary to the North Fork Feather River to the northwest. Annual precipitation ranges from43- to 49-inches, increasing to the southwest.

Hydrogeologic InformationHydrogeologic information was not available for the following:

Water-Bearing FormationsGroundwater Level Trends

Groundwater StorageDWR (1960) estimates storage capacity to be 50,000 acre-feet for a saturated depth interval of 10 to 210-feet.

Groundwater Budget (Type B)The estimate of groundwater extraction for the American Valley Basin is based on a 1997 survey conducted by the California Department of Water Resmrrces. The survey included landuse and sources of water. Groundwater extraction for municipal and industrial uses is estimated to be 1,400 acre-feet. Deep percolation of applied water is estimated to be 800 acre-feet.

Groundwater QualityWater Quality in Public Supply WellsConstituent Group1 Number of Number of wells with a

wells sampled' concentration above an MCL3

tnorganlcs- Primary 29 0

Radiological 14 0

Nitrates 34 0

Pesticides 12 0

VOCs and SVOCs 13

lnorganics- Secondary 29 71 A description of each member in the constituent groups and a generalized discussion of the relevance of these groups are included in California's Groundwater-Bulletin 118 by DWR (2003).2 Represents dlstlnct number of wens sampled as required under DHS Title 22 program from 1994 through 2000.

Last update 2127104

California's GroundwaterBulletin 118

Hydrologic Region Sacramento RiverAmerican Valley Groundwater Basin

3 Each well reported with a concentration above an MCL was confirmed with a second detection above an MCL. This information is intended as an indicator of the types of activities that cause contamination in a given basin. It represents the water quality at the sample location. It does not indicate the water quality dellvered to the consumer. More detailed drinking water quality information can be obtained from the local water purveyor and its annual Consumer Confidence Report.

Well CharacteristicsWell yields (gal/min)

Municipal/Irrigation 40 (2 Well CompletionReports)

Total depths (ft)


Domestic

Municipal/Irrigation

Range: 20 - 561

Range: 44 - 250

Average: 127 (286 Well Completion Reports) Average: 125 (15 Well Completion Reports)

Active Monitoring DataAgency Parameter Number of wells

/measurement frequencyGroundwater levels NKD

DWR Misce!!aneouswater quality

4 wells bi-yearly

Department of Miscellaneous 11Health Services water qualityNKD- No Known Data

Basin ManagementGroundwater management No known groundwater management plans,

groundwater ordinances, or basin adjudications

Water agencies

Public Quincy Community SO, East Quincy ServicesDistrict.

Private None

Selected ReferencesCalifornia Department of Water Resources. 1960. Northeastern Counties Investigation.

CaliforniaDepartment of Water Resources. Bulletin 53.

BibliographyBailey EH. 1966. Geology ofNorthem California. California Division of Mines and Geology.

Bulletin 190.

California Department of Water Resources. t9n. California's Ground Water. CaliforniaDepartment of Water Resources. Bulletin 118.

California Department of Water Resources. 1980. Ground Water Basins in CaliforniaCalifornia Department of Water Resources. BuHetin 118-&0.

Dickinson "WR, Ingersoll RV, Grahm SA 1979. Paleogene Sediment Dispersal andPaleotectonics in Northern California. Geological Society of America Bulletin 90: 14581528.

Last update 2127104

Hydrologic Region Sacramento RiverAmerican Valley Groundwater Basin

Hill M. !975. Geology of the Sierra Nevada: University of California Press. 232 p.

Planert M, Williams JS. 1995. Ground Water Atlas of the United States, Segment 1, California, Nevada. USGS. HA-730-R

ErrataChanges made to the basin description will be noted here.

Last update 2127/04


- if; Lf r": ;\

1f-: ; :i ;- ;

"':_,.v

)

Alluvial Groundwater Basins and Subbasins withinSacramento River Hydrologic Region

Basin number

Subbasin number

Groundwater basin/subbasin ,- !Hydrologic region boundary \

County boundary

/V ,,(,;: :, "-'>- .. "'Altur:s aasm -;

c-< S- c -- -J7. -41•' •- •

\, .,. '}' --5-33-"; 5-40 '. 0.-Lt... -2-c:._

--'"?

!

s 4s - - ,s-:-5

54f . ., ;- - 0 c 1:) ';:3-tiJ

/ .;i(;:e -5-4<V

5-46 .5-§3 i

·-- ----< .a:C4:c>- <5-49 5-52'-._,//

5-51; !_-\;_;-;Red n:_·:- ddi?, S a n ---_S-50 . =-=- ;.:.;_>

(/ - i:=i :- -·s,) - ..._.._ -:;_i '""'-.""'\ .susanville

- ;Red Bluff _.5 5t_54o•?o 5 ;..,\..r·- ,"-,_

.::,, -...,_ _,2.-5.-;t-5e :-"""--.'iz1.s5l - <_5-2 :.---e =r-2 -ie-

Sacr nto Vafle'{

._·s se .-..5-S 5- '1

r·?,&$ . -

- '---< >-\.' c£_( ?

5:95 0 - Q incY _5,9. \

?;_ 's 62 - ztsa-1.

,_

"' --·!-;:-

'. ,;.9f$vffie _-:; . ,-,. Siero:a_vaifeIll- omvnleVl !e ,"" "' -- • '

-;- .. ./

'e '1- S'S 1;: 'E-2L5rJ {_. '\..,_ - _:: ,::; ,_ ;-_- ; .· -'. ·--- --\: :: fkgr -92 u::2 l_ 1 -;; '

=-··· Miu'[sville-- -cfa s Yalley_

--1''cO, ---.-

Lakepqrt ,, :r ;=s-su

\,<1s :3o ,""; .;c•.

5-13 - 5_- ,a

:E-21 52.5-?i 5_r\, '-"<{" ---- -- ----"

'·-"1

.Autiurn

r \"-'{ '

\_ >s-ss·,.J 5-21.64 "f -.

.PlacerVil·"'""-,-

--

"-ii ·_.

',

· "t"Vc0dfanci'5-Z1- 07 :Sac'.'""'" T"''-r/ j

0

E; -/

---.,...._ -'

)

\ 5-Zi £8 •/.,"" -,_j(

"'Nalnut GroveRiJ'•Vs-'ca'0, .-

t )

Source: Department of Water Resources, CWP 2013

P·,merican Valley Groundl.,vater BasinThe American Valley Groundwater Basin is a 6,800-acre basin bounded to the southwest and northeast by a northwest trending fault system. The basin is bounded to the northeast by Paleozoic metavolcanic rocks and on all other sides by Paleozoic marine sedimentary and meta-sedimentary rocks of the Sierra Nevada. Spanish Creek drains the valley and is a tributary to the North Fork Feather River to the northwest. In 1960, the DWR estimates storage capacity to be 50,000 AF for a saturated depth interval of 10 to 210 feet. There are no known groundwater management plans, groundwater ordinances, or basin adjudications associated with this basin. In 2014, DWR ranked the basin with an overall basin priority of very low.'

1CA Department of Water Resources, May 30, 2014. CASGEM Basin Summary- Sacramento Hydrologic Region,American Va!fey Groundwater Basin. Available at:htr.p:!/www.wa t"' r.ca.go v /groun d \ .V a tP . r / cas g em / odis/b<: . si n nri o riti z.at\ o n/ N R0% 1 0 3 8 .pdf

Plumas Geo-HydrologyLAND AND WATER RESOURCES

P.O. Box 1922, Portola, CA 96122 tel. (530) 836-2208

MEMORANDUM

August 29, 2015

To: Larry Sullivan, General Manager, Quincy Community Services District, 900Spanish Creek Road, Quincy, CA. ph. 530-283-0836

From: Burkhard Bohm, Hydrogeologist, 530-836-2208

Regarding: American Valley groundwater information.

As requested, available groundwater information for American Valley has been surveyed. Since its inception in the early 1990's the QCSD has taken it upon itself to upgrade an aged water supply and waste water treatment infrastructure, whereas groundwater resource development and planning remained limited to a wellhead protection demonstration project report in the late 1990's and a number of well drilling and testing reports. However, no comprehensive groundwater monitoring program and resource management plan has ever been developed.

Introduction

This memorandum is intended to provide an overview of available pertinent groundwater data in American Valley, data that become the basis for developing a Groundwater Management Plan (GWMP) for American Valley. The GWMP should eventually meet the specifications of the groundwater management guidelines recently adopted by the State of California. The purpose of the GWMP is to serve as a tool for rational long termaquifer management and development. The objectives are to minimize well interference, to prevent ground water quality degradation, to protect recharge areas from excessive development, and to establish avenues whereby local stakeholders' concerns can be met.

Overview- Historic Background

The queries how to resolve the increasingly pressing need to expand groundwater resources in AV began as far back as 1994. In October of that year a study was conducted to evaluate the possibilities and the weaknesses in the existing groundwater supply system of the Quincy Community Services District (see report, PGH, 1994}. The

American Valley groundwater information, August 2015 Page 1 of6

report constituted a review of then perceived available municipal water well drilling alternatives for the QCSD in western American Valley. It was mostly based on hydrogeologic analysis, i.e. with emphasis on:

1. water availability (pumping rate, productivity);2. water quality problems related to iron and manganese;3. existing and potential future contamination potential.

The final analysis included a qualitative discussion of economic feasibility, like pipeline costs, time required to develop the new source, and site accessibility. Given the urgency of locating new water supply sources for the QCSD, it was proposed that there was little choice but to accept initial high drilling costs, just to overcome the current impasse. For further information about the situation the reader is referred to the detailed study by Files Engineering in 1989 (Files, 1989), in particular the economic analysis (Appendix I) and water use projections (page 10) of that report.

Eventually, in order to streamline the decision-making process a rating system was developed. This rating system has undergone several iterations and has helped to keep the discussion about groundwater resource development more understandable for District Management, the District Board members and the general public.

The original rating system developed up to 2008 was based on:

1. Site access.2. Delivery system (length of pipeline needed)3. Productivity expected4. Likelihood of contamination5. Vulnerability to contamination6. Ambient groundwater quality

At that time a selection of 23 alternative drill sites were identified and rated. Specific test drilling methods (and subsequent well testing) was recommended to facilitate subsurface data collection.

Meanwhile the problem became more pressing due to several new developments, some of which seemed predictable after completion of the Wellhead Protection Report (PGH,1998). This included well deterioration and casing collapse in aged wells and MTBE contamination due to poor choice of well location (and/or industrial sites). Additionally new sources of poor water quality posed constraints on selection of new well sites (PGH,2003). Other issues pertain to gradual groundwater quality changes associated withurban sprawl in American Valley (PGH, 1998).

In other words, although American Valley is blessed with abundant groundwater resources, it appears as if development and management of this resource increasingly becomes like a "moving target", given the changes in land development and possibly changing environmental (climatic) conditions.


It is also becoming increasingly clear that under such conditions it becomes increasingly difficult to manage and protect a resource without a comprehensive groundwater management plan (GWMP). Recommendations to develop a GWMP were made as far back as 2003, in part as a valuable tool and in part as a means to help the District qualify for outside funding.

Data and Other Information

A host of data and technical reports addressing groundwater issues (and hydrologic issues in general) have accumulated since the QCSD came into existence in the early1990's:

A. A listing of more than 25 pertinent reports and other documents is given below.

B. The Districts are required to collect certain groundwater quality data on a regularbasis. These data are stored in a database at the offices of the State DHS. We have requested a "data dump" for both East and West Quincy. Such data have proven invaluable to identify groundwater quality trends (see for example PGH (1998) and PGH (2005)). Unfortunately the data are provided in a very impractical format, i.e. more than 170 pages of printouts in MS Word files.

C. Additional water quality data are contained in some of the technical reports (PGH1998, 2003, 2005, and others).

D. Pumping test data analysis and interpretation for at least five test wells. The data are not included in the technical reports (PGH 2003, 2005), and need to be retrieved from our project filing archives.

E. Other information includes geophysical survey results and geologic drilling logs(PGH 2003, 2005).

F. We did not research the availability of data in the "coffers" of the District offices.

To our knowledge, up to now neither QCSD nor EQSD have engaged in systematic and consistent groundwater data collection and database development, probably mostly because both Districts remained preoccupied with resolving more immediate day-to-day issues to keep "the water flowing", while upgrading an aging water and wastewater infrastructure. The absence of a well water level and monthly (weekly) pumping volume database can become an obstacle in future groundwater management schemes.

Recommendations

In the past, when applying for funding from the State, entities with some sort of ground water management plan (GWMP) in place were given funding preference. It is thus strongly recommended to start working on implementing a GWMP as soon as possible, preferably under the umbrella of the AV Joint Powers Agreement (JPA). More so, a GWMP should be more than just a formality, not knowing the course of further urban


sprawl in American Valley, especially given the ongoing difficulties in securing good well sites, and potential problems with industrial contamination in both parts of Quincy.

Probably the GWMP needs to be integrated into the County General Plan, and initially may not have to be very comprehensive, thereby remaining a "living document", a document that serves as a strategy towards long term groundwater development in AV. It should change as the strategy is implemented and the aquifer system is further developed (like in adaptive management).

Important References

Aller, L., Bennett, T., Lehr, J.H., Petty, R.J. and Hackett, G., 1987: DRASTIC: A standardized system for evaluating ground water pollution potential using hydrogeologic settings. RobertS. Kerr Environmental Research Laboratory, US EPA, Ada, OK, EPA-600/2-87-035. April1987.

Barnes I, RW Kistler, RH Mariner and TS Presser, 1981: Geochemical evidence on the nature of the basement rocks of the Sierra Nevada, California. US Geological Survey Water-Supply Paper 2181.

Bastian Engineering, 2001. Letter report to Larry Sullivan, general manager of QCSDreporting on the drilling effort near the Coburn Well, Quincy.

Blandford, T.N. and Huyakorn, P.S., 1991, WHPA, A modular semi-analytical model for delineation of wellhead protection areas. US-EPA, Office of Ground Water Protection. March 1991.

Canter, L.W. and Knox, R.C., 1985, Septic tank system effects on ground water quality.Lewis Publishers, Chelsea, Michigan, 336 pp.

Carollo Engineers, 2002. Water Supply Capacity Evaluation, October 2002.

CH2MHILL, 1996, Reinvestment opportunities for the Feather River Watershed. Report prepared for Plumas County, by CH2MHILL Engineering. 2525 Airpark Dr., Redding California. April 1996, 26 pages.

Churchill, D.M., 1990, Soil Survey of the Plumas National Forest, US Forest Service, ("SRI", obtained from the Plumas National Forest Supervisors Office, Lawrence Str., Quincy).

Carollo Engineers, 2002, Water supply capacity and alternatives evaluation. Prepared for QCSD by Carollo Engineers, Sacramento. October 2002.

EPA, 1987, Guidelines for delineation of wellhead protection areas. US-EPA Office ofGround Water Protection. June 1987.

EPA, 1989: Wellhead protection programs: tools for local governments. US EPA. EPA440/6-89-002. April 1989.


EPA, 1993: Wellhead protection: A guide for small communities. Seminar publication.February 1993. EPAI625/R-93/002.

Files Engineering, 1989, Water Systems Acquisition and Improvement Project, Preliminary Engineering Report, for Plumas County Service Area No. 13, Quincy, California. Larry Fites Engineering, Graeagle, CA.

Files, 1989, Water Systems Acquisition and Improvement Project, Preliminary Engineering Report, for Plumas County Service Area No. 13, Quincy, California. Larry Files Engineering, Graeagle, CA.

Job, CA, 1996, Benefits and costs of wellhead protection. Ground Water Monitoring andRemediation, Spring 1996, p. 65.

PGH, 1994, Ground water monitoring program. Wellhead Protection DemonstrationProgram, American Valley, Plumas County, California. Prepared for QCSD. June9, 1994.

PGH, 1994, Well and spring development alternatives. Report prepared for QuincyCommunity Services District, by Plumas Geo-Hydrology, October 1994.

PGH, 1994. Ground water monitoring program. Wellhead protection demonstration program, American Valley, Plumas County, California. Prepared for Quincy Community Services District. Plumas Geo-Hydrology, June 9, 1994

PGH, 1994. Well and spring development alternatives. Report prepared for QuincyCommunity Services District, by Plumas Geo-Hydrology, October 1994.

PGH, 1998. American Valley Wellhead Protection Demonstration Program, Plumas County, California. Technical summary report. Prepared for QCSD, by Plumas Geo-Hydrology, February 28, 1998.

PGH, 2003, Drilling and testing the Sunset Exploration Well near Bucks Lake Road, West of Quincy. Technical Summary Report, February 18, 2003. Prepared by Plumas Geo-Hydrology, Portola, CA. For Quincy Community Services District, Quincy, CA.

PGH, 2003. Brock Well: Results of modeling pumping scenarios and invasion of high TDS water. Memorandum from Burkhard Bohm, Hydrogeologist, to Larry Sullivan, General Manager, QCSD, February 27,2003.

PGH, 2003. Drilling and testing the Brock Exploration Well near Bucks Lake Road, West of Quincy. Technical Summary Report prepared for Quincy Community Services District. Plumas Geo-Hydrology, February 2003.

PGH, 2005. Ground water exploration in American Valley, Plumas County, California.Drilling in Nugget Canyon, Boyle Ravine, Goodwin Ravine, and the western


floodplain. Report prepared for Quincy Community Services District by PlumasGeo-Hydrology, Portola, CA. September 2005.

Plumas County General Plan, Current Edition, Plumas County, California.


EAST QUINCY SERVICES DISTRICT PUMPING REPORT JANUARY 2016

WELL NUMBER GALLONS PUMPED STATIC LEVEL & DRAW DOWN

1 576,900 17.8 FEET 31.8 FEET

2 810,790 23.4 FEET 35.6 FEET

4 1,105,000 100.6 FEET 122.4 FEET

7 1,456,800 16.8 FEET 32.5 FEET

8 595,200 6.1 FEET 76.1 FEET

9 1,961,100 13.4 FEET 51.8 FEET

TOTAL GALLONS 6,505,790

Average Gallons Pumped Per Day 201,711

METERED GALLONS BILLED TO CUSTOMERS FOR JANUARY 2016

Number of Gallons Average GallonsAccounts MeteredServed This Month Daily Per AccountPer Day

832 3,679,130* 221,095 266

Gallons/Recap: Wells Pumped Metered Sales

6,505,790

Residential 3,170,350Commercial 430,230Other 74,850QCSD 3,700

Difference 2,828,660 43.4%

*ALL METERS WERE READ THIS MONTH. HIGH DIFFERENCE CAN BE ATTRIBUTED TO ESTI!VlATION CORRECTIONS.

East Quincy SDMonthly Wastewater Report

ReportPeriod ·• · ·.•·· Begin 01/01/20t612:oo:ooAM · •End.. ·.. 02/01/201612:00:00.AM ....· •

West Lift Station

Flow Total

Total

EAST QUINCY SERVICES DISTRICT179 Rogers I5301Quincy CA

ACCOUNT# SERVICE FROM SERVICE TO #DAYS07126701 06/24 07/20 26 0

283-239095971

PRESORTEDFIRST-CLASS MAIL

U.S. POSTAGE PAIDQuincy CA

5971 PERMIT N0.10 1DUE DATE

2/15/2016PREVIOUS <READINGS> PRESENT USAGE CHARGES

156400 156400Previous Balance 192.94

FREE INDOOR WATER CONSERVATION KITS ARE NOW AVAILABLE! STOP BY THE OFFICE TO GET YOURS!

RETURN SERVICE REQUESTED

RETURN THIS STUB WITH YOUR PAYMEN1DUE DATE

02/15/2016GROSS DUE IF LATE192.94

ACCOUNT#07126701

NET DUE NOW192.94

LAST PAYMENT LAST BILLING <USAGE> LAST YEAR07/07/2015 50.00 7930 16510

METER NUMBER REFERENCE NUMBER71370804 11626118

GROSS DUE IF LATE192.94

SERVICE ADDRESS276 SIERRA WAY N1g'2':'aw

SERVICE ADDRESS276 SIERRA WAY

ECOLE HAGEN9170 TRAPPER WAYAKHURST, CA

93644

' n;o,f"t-o <TO ' '

TRANSFER OF FUNDS FOR JANUARY 2016 (Meeting Date of February 9, 2016)

a. From Revolving to Short Term MM Water. ....... $ 6,697.03(Water income $31,646.71 and Water expenses $24,949.68)

b. From Revolving to State Farm MM Sewer .... $ 7,235.47(Sewer income $67,380.32 and Sewer expenses $60,144.85)

c. From Revolving to State Farm MM Water ..... $ 50,109.62(Tax$$$)

d. From Revolving to State Farm MM Sewer ..... $ 125.00(insp. fee)

MEMO

FEBRUARY 9, 2016

ITEM #12- FUND BALANCE

THE INFORMATION WILL BE PRESENTED AT THE REGULAR MEETING. STAFF IS HAVING TO REDESIGN THE

FORM TO ACCOMMODATE THE NEW INFORMATION THAT HAS BEEN REQUESTED.

) 5, 2016 EAST QUINCY SERVICES DISTRICT Page 1

08 am Check Register (Checks of Type(s): Outstanding, Other)(EFTs: Outstanding), Sorted by Check Number

(Report period: January 14, 2016 to February 29, 2016)

Check EFT#Nend Invoice Amount NetNumber Date /Invoice Amount Paid Credits Discounts Amount

Cash Account #1 [CASH- REVOLVING]

EFT 01/15/16 1-695-376-512EMPLOYMENT D Employment Devlp. Dept

01/01-01/15/2016 946.49 946.49 0.00 0.00 946.49

EFT Total 946.49 0.00 0.00 946.49

EFT 01/27/16 270642832391359FEDERAL TAXE Dept of Treasury

4TH QUATER 15 404.69 404.69 0.00 0.00 404.69

EFT Total 404.69 0.00 0.00 404.69

EFT 01/15/16 270641900744991FEDERAL TAXE Dept of Treasury

01/01-0 1/15/2016 2960.43 2960.43 0.00 0.00 2960.43

EFT Total 2960.43 0.00 0.00 2960.43

28010 01/15/16 BANK OF THE Bank of the WestSAGE 2015 53.54 53.54 0.00 0.00 53.54

ONESTOP 8/18 -101.00 -101.00 0.00 0.00 -101.00ONESTOP 9/12 -85.00 -85.00 0.00 0.00 -85.00

CRWA TRAINING 500.00 500.00 0.00 0.00 500.00RITE AID 12/02 4.50 4.50 0.00 0.00 4.50

USPS 12/09/2015 7.24 7.24 0.00 0.00 7.24CABELAS 12/18/15 97.00 97.00 0.00 0.00 97.00

CONSERVATION MART 1000.00 1000.00 0.00 0.00 1000.00NAVI TABES 12/17/15 80.00 80.00 0.00 0.00 80.00

ONE STOP 12/2 WATER 57.50 57.50 0.00 0.00 57.50ONE STOP 12/3 SEWER 55.24 55.24 0.00 0.00 55.24ONE STOP 08/18 SEWER 101.00 101.00 0.00 0.00 101.00ONE STOP 12/14 WATER 56.00 56.00 0.00 0.00 56.00ONE STOP 12/15 SEWER 61.27 61.27 0.00 0.00 61.27ONE STOP 12/23 SEWER 55.78 55.78 0.00 0.00 55.78ONE STOP 9/12/15 WAT 85.00 85.00 0.00 0.00 85.00

SPORTSMAN'S WAREHOUS 53.85 53.85 0.00 0.00 53.85

Check Total 2081.92 0.00 0.00 2081.92

28012 01/15/16 SINGLETON AU Singleton Auman PC34658 1500.00 1500.00 0.00 0.00 1500.00

Check Total 1500.00 0.00 0.00 1500.00

Feb 5, 2016 EAST QUINCY SERVICES DISTRICT Page :2

11:08 am Check Register (Checks of Type(s): Outstanding, Other)(EFTs: Outstanding), Sorted by Check Number


CheckNumber Date

EFT#!Vend/Invoice

InvoiceAmount

AmonntPaid Credits Discounts

NetAmount

-28013 01/15/16 SJNGLETON AU Singleton Auman PC

34757 1300.00 1300.00 0.00 0.00 !300.00

Check Total 1300.00 0.00 0.00 1300.00

28015 01/15/16 PAYROLL Tobi R Leathers 1460.82

28016 01/15116 PAYROLL Tobi R Leathers 357.!!

28017 01/14/16 PGE Pacific Gas & Electric01/ll/!6 509.02 509.02 0.00 0.00 509.02

Check Total 509.02 0.00 0.00 509.02

28018 01/16/16 PAYROLL David L Cottle 1883.50

28019 01/16/16 PAYROLL Michael T Green !904.03

28020 01/16/16 PAYROLL Shawneen Howe 1445.27

28021 01/16/16 PAYROLL Vicki S Poh 1327.53

28022 01/15/16 FRANCIDSE TA State of California01/01-01115/2016 50.00 50.00 0.00 0.00 50.00

Check Total 50.00 0.00 0.00

28023 01115/16 STATE BOARD State Board of Equalization0!/0l-Ol/!5/2016 15.00 15.00 0.00 0.00

Check Total 15.00 0.00 0.00

28024 01116/16 PAYROLL David L Cottle 313.03

28025 01/15/16 PGE Pacific Gas & Electric01/12/2016 179.86 179.86 0.00 0.00 179.86

Check Total 179.86 0.00 0.00 179.86

28026 01/20/16 MIKE GREEN WALMART !116/16

Mike Green102.65 102.65 0.00 0.00 102.65

Check Total 102.65 0.00 0.00 102.65

-

Feb 5, 2016 EAST QUINCY SERVICES DISTRICT Page 3


(Report period: January 14,2016 to February 29, 2016)

Check EFT#Nend Invoice Amonnt NetNumber Date /Invoice Amount Paid Credits

DiscountsAmount

28027 01/21/16 EQSD-LAIF S East Quincy Services District01/12/16 TRANS 9423.62 9423.62 0.00 0.00 9423.62

Check Total 9423.62 0.00 0.00 9423.62

28028 01/21116 EQSD-LAIF W East Quincy Services District01112/16 TRANS 937.16 937.16 0.00 0.00 937.16

Check Total 937.16 0.00 0.00 937.16

28030 02/01/16 PAYROLL David L Cottle 1780.81

28031 02/01116 PAYROLL Michael T Green 1904.03

28032 02/01/16 PAYROLL Shawneen Howe 1321.88

28033 02/01116 PAYROLL Tobi R Leathers 1296.76

28034 02/01/16 PAYROLL Vicki S Poh 1152.85

28034 01/26/16 PGE Pacific Gas & Electric01/15/2016 2473.97 2473.97 0.00 0.00 2473.97

Check Total 2473.97 0.00 0.00 2473.97

28035 02/01116 PAYROLL David L Cottle 357.73

28035 01/26/16 PLUMAS RURAL Plumas Rural Services12/31/15 INTERNET 360.50 0.00 360.50 0.00 0.00

Check Total 0.00 360.50 0.00 0.00

28036 02/01/16 PAYROLL Tobi R Leathers 401.54

28037 01/31/16 FRANCHISE TA State of California01116-01/31/2016 50.00 50.00 0.00 0.00 50.00

Check Total 50.00 0.00 0.00 50.00

28038 01/31/16 STATE BOARD State Board of Equalization0 1/16-01/31/2016 15.00 15.00 0.00 0.00 15.00

Check Total 15.00 0.00 0.00 15.00

Feb 5, 2016 EAST QUINCY SERVICES DISTRICT Page



CheckNumber Date

EFT#Nend/Invoice

InvoiceAmount

AmountPaid Credits Discounts

NetAmount

-28040 02/01/16 CROWN MOTORS Crown Motors

2015 RAM 3500 37609.03 37609.03 0.00 0.00 37609.03

Check Total 37609.03 0.00 0.00 37609.03

28040 02/10/16 PAYROLL JohnEKolb 123.46

28043 02/10/16 AFLAC AFLAC1/31/16 785.74 785.74 0.00 0.00 785.74

Check Total 785.74 0.00 0.00 785.74

28044 02110/16 AMERICAN VAL American Valley HardwareB93056 66.04 66.04 0.00 0.00B95414 37.61 37.61 0.00 0.00C20101 3.19 3.19 0.00 0.00

Check Total 106.84 0.00 0.00 106.84

28045 02110/16 ATT-2390 AT&T1!28/16 244.26 244.26 0.00 0.00

Check Total 244.26 0.00 0.00 244.26

28046 02/10/16 BASIC LABORA Basic Laboratory Inc,1600248 47.00 47.00 0.00 0.001600557 47.00 47.00 0.00 0.001600788 47.00 47.00 0.00 0.00

Check Total 141.00 0.00 0.00 141.00

28047 02110/16 BASTIAN ENGI Bastian Engineering16-02-870 366.25 366.25 0.00 0.00

Check Total 366.25 0.00 0.00 366.25

28048 02/10/16 BILL MARTIN1/12-1/14-1/26

Bill Martin157.50 157.50 0.00 0.00

Check Total 157.50 0.00 0.00

28049 02110/16 CALPERS01/16-01/31/2016

CalPERS1396.01 1396.01 0.00 0.00 1396.0

12116-12/31 2016 1498.88 1498.88 0.00 0.00 1498.88

Check Total 2894.89 0.00 0.00 2894.89

eb5,2016 EAST QUINCY SERVICES DISTRICT Page 6

1:08am Check Register (Checks of Type(s): Outstanding, Other)(EFTs: Outstanding), Sorted by Check Number



Check Total 180.00 0.00 0.00 180.00

28059 02110116 PETTY CASH Mike Green/Petty Cash01/2016 88.48 88.48 0.00 0.00 88.48

Check Total 88.48 0.00 0.00 88.48

28060 02110/16 PLUMAS MOTOR Plumas Motor Supply7472-132720 68.08 68.08 0.00 0.007472-132756 19.24 19.24 0.00 0.00

Check Total 87.32 0.00 0.00 87.32

28061 02110116 PLUMAS SIERR Plumas Sierra Rural Elec013116 225.00 225.00 0.00 0.00 225.00

Check Total 225.00 0.00 0.00 225.00

28062 02/10116 PLUMAS TELEC Plumas Sierra Telecornmuncations1/29/16 360.50 360.50 0.00 0.00 360.50

Check Total 360.50 0.00 0.00 360.50

28063 02/10116 QUINCY COMMU Quincy Comm Serv Dist1/31/2106 216.90 216.90 0.00 0.00

1/31116 TREATMENT 38790.99 38790.99 0.00 0.00

Check Total 39007.89 0.00 0.00 39007.89

28064 02/10116 SCOTTTANNER Scott Tanner Business Equip00217342 40.79 40.79 0.00 0.00 40.79

Check Total 40.79 0.00 0.00 40.79

28065 02/10116 TJ MOUNTIAN TJ's Mountain Jauitorial01/31116 175.00 175.00 0.00 0.00 175.00

Check Total 175.00 0.00 0.00 175.00

28066 02110/16 US POST OFF U S Post Office03/31/2016 348.00 348.00 0.00 0.00 348.00

Check Total 348.00 0.00 0.00 348.00

02/10/16 WASTE MANAGE Waste Management0350132-0539-4 39.06 39.06 0.00 0.00 39.06

Feb 5, 2016 EAST QUINCY SERVICES DISTRICT Page 7



CheckNumber Date

EFT#Nend/Invoice

InvoiceAmount

AmountPaid Credits Discounts

NetAmount

-28067 02/10/16 USABLUEBOO

852443Utility Supply of Arneric

108.69 108.69 0.00 0.00 108.69

Check Total 108.69 0.00 0.00 108.69

28068 02/10/16 VERJZON WIRE Verizon Wireless01/2016 5.00 5.00 0.00 0.00 5.00

Check Total 5.00 0.00 0.00 5.00

28069 02/10/16 VSP HealthSmart Benefit Solutions Inc.01/3112016 [[1.35 111.35 0.00 0.00 111.35

Check Total lll.35 0.00 0.00 111.35

28070

Check Total 39.06 0.00 0.00 39.06

28071 02/!0/16 WILBURN CONS Wilburn Construction12274 90.00 90.00 0.00 0.00 90.00

Check Total 90.00 0.00 0.00 90.00

28072 02/10/16 yp yp

01/21/16 16.00 16.00 0.00 0.00 16.00

Check Total 16.00 0.00 0.00 16.00

Cash account ll6676.09 524.50 0.00 133706.44

-· .·- ·-·------


Feb 5, 2016 EAST QUINCY SERVICES DISTRICT Page E



-Cash Account#2 [STATE FARM MM WATER]

1021 02/04/16 EQSD EQSDCROWN MOTORS W 18804.51 18804.51 0.00 0.00 18804.51

Check Total 18804.51 0.00 0.00 18804.51

Cash account 18804.51 0.00 0.00 18804.51


) 5, 2016

08 amEAST QUINCY SERVICES DISTRICT Check

Register (Checks of Type(s): Outstanding, Other) (EFTs: Outstanding), Sorted by Check Number


Page 9

-Cash Account #3 [STATE FARM MM SEWER]

1028 02/04/16 EQSD EQSDCROWN MOTORS 18804.52 18804.52 0.00 0.00 18804.52

Check Total 18804.52 0.00 0.00 18804.52

Cash account 18804.52 0.00 0.00 18804.52

Report Tota1 154285.12 524.50 0.00 171315.47

EAST QUINCY SERVICES DISTRICT Income Statement

Year-to-Date Performance, January 2016- current month

7 Months EndedJanuary 31, 2016 Annual

Budget Unused %Used

IncomeWATER SALES-W 310,353.57 504,400.00 194,046.43 61.5%SEWER SERVICE CHARGES-S 481,917.52 829,150.00 347,232.48 58.1%PERMIT & INSP. FEES- S 250.00 300.00 50.00 83.3%CONNECTION FEES-W 0.00 100.00 100.00CONNECTION FEES- S 0.00 500.00 500.00MISC. REVENUE-W 2,500.00 3,000.00 500.00 83.3%MISC. REVENUE-S 0.00 300.00 300.00SYSTEM FACILITY-W 8,503.94 9,000.00 496.06 94.5%SYSTEM FACILITY- S 2,750.06 4,500.00 1,749.94 61.1%

TOTAL Income 806,275.09 1,351,250.00 544,974.91 59.7%

NET REVENUE 806,275.09 1,351,250.00 544,974.91 59.7%

GROSS PROFIT 806,275.09 1,351,250.00 544,974.91 59.7%

ExpensesSEWAGE TREATMENT-S 271,054.47 466,317.00 195,262.53 58.1%MANAGER'S SALARY-W 24,270.82 36,655.50 12,384.68 66.2%MANAGER'S SALARY- S 24,270.83 36,655.50 12,384.67 66.2%ADMIN. ASSISTANT-W 11,725.35 20,604.32 8,878.97 56.9%ADMIN. ASSISTANT- S 11,725.36 20,604.32 8,878.96 56.9%TRAINING-W 616.50 2,000.00 1,383.50 30.8%TRAINING-S 66.50 1,000.00 933.50 6.7%PAYROLL TAXES-W 6,832.65 18,520.14 1!,687.49 36.9%PAYROLL TAXES-S 6,832.65 18,520.14 11,687.49 36.9%Earning Withholding Order 5.00 0.00 (5.00)WATER OPERATOR WAGES-W 31,843.38 54,995.32 23,151.94 57.9%WATER OPERATOR WAGES-S 31,843.38 54,995.32 23,151.94 57.9%WORKER'S COMP-W 7,915.32 6,000.00 (1,915.32) 131.9 %

WORKER'S COMP- S 9,106.83 7,000.00 (2,106.83) 130.1%PAGER DUTY- WATER 4,223.85 8,865.85 4,642.00 47.6%PAGER DUTY- SEWER 4,223.85 8,865.85 4,642.00 47.6%PENSION- MGR.-W 2,824.74 4,583.57 1,758.83 61.6%PENSION- MGR.- S 2,824.75 4,583.57 1,758.82 61.6%PENSION-ADMIN. ASST.-W 1,608.39 2,523.16 914.77 63.7%PENSION-ADMIN. ASST.- S 1,608.39 2,523.16 914.77 63.7%

_,_,_,..,,, 1n...,n.1f'\ A"!l,f VTD V:wi> nce Performance Income Statement Page

lilfonths EndedJanuary 31, 2016 Annual

Budget Unused %Used

PENSION-WATER OPERATOR 1,072.65 4,494.70 3,422.05 23.9%PENSION-WATER OPERATOR 1,072.65 4,494.70 3,422.05 23.9%MEDICAL INSURANCE - W 34,687.39 46,288.26 11,600.87 74.9%MEDICAL INSURANCE- S 34,966.85 46,288.26 11,321.41 75.5%BOOKKEEPER-W 13,396.19 22,603.64 9,207.45 59.3%BOOKKEEPER-S 13,396.20 22,603.64 9,207.44 59.3%DIRECTORS FEES -W 1,068.75 2,000.00 931.25 53.4%DIRECTORS FEES- S 798.75 2,200.00 1,401.25 36.3%OTHER FEES & LICENSES -W 12,905.41 10,000.00 (2,905.41) 129.1 %OTHER FEES & LICENSES - S 4,917.67 2,000.00 (2,917.67) 245.9%PENSION-BOOKKEEPER 1,779.18 3,283.13 1,503.95 54.2%PENSION-BOOKKEEPER 1,779.18 3,283.13 1,503.95 54.2%TRUCK EXPENSE - W 1,097.58 4,000.00 2;902.42 27.4%TRUCK EXPENSE- S 2,451.86 5,000.00 2,548.14 49.0%SEWER JET EXPENSE 403.12 0.00 (403.12)LIABILITY INSURANCE -W 7,274.70 8,000.00 725.30 90.9%LIABILITY INSURANCE-, S 7,274.70 8,000.00 725.30 90.9%OFFICE EXPENSE-W 6,514.08 8,000.00 1,485.92 81.4%OFFICE EXPENSE-S 7,822.11 7,000.00 (822.11) 111.7%

OFFICE UTILITIES -W 2,940.68 4,200.00 1,259.32 70.0%OFFICE UTILITIES -S . 2,940.65 4,200.i)0 1,259.35 70.0%FACILITY MAINT. -W 2,060.54 15,000.00 12,939.46 13.7%

FACILITY MAINT.- S 464.78 3,000.00 2,535.22 15.5%

ENGINEER-W 323.75 15,000.00 14,676.25 2.2%

ENGINEER-S 323.75 5,000.00 4,676.25 6.5%

AUDITOR!BKPR-W 5,325.00 5,000.00 (325.00) 106.5%

AUDITOR!BKPR -S 5,325.00 5,000.00 (325.00) 106.5%

ATTORNEY-W 1,940.63 7,500.00 5,559.37 25.9%

ATTORNEY-S 1,940.62 7,500.00 5,559.38 25.9%

WATERLABORATORY-W 2,564.00 5,500.00 2,936.00 46.6%

WATERLABORATORY-S 20.40 0.00 (20.40)

OTHER PROF. SERVICES-W 6,356.14 8,500.00 2,143.86 74.8%

OTHER PROF. SERVICES- S 6,300.75 7,000.00 699.25 90.0%

METER INST. -W 2,484.48 10,000.00 7,515.52 24.8%

PUMPING REPAIRS-W 90.00 6,000.00 5,910.00 1.5%

LIFT STATION MAINT- S 1,199.41 10,000.00 8,800.59 12.0%

TRANSMISSION REPAIRS-W 10,837.63 20,000.00 9,162.37 54.2%

TRANSMISSION REPAIRS- S 6,607.27 15,000.00 8,392.73 44.0%

TOOLS & EQUIP. - W 740.84 4,000.00 3,259.16 18.5%

TOOLS & EQUIP. - S 1,156.34 2,000.00 843.66 57.8%

PUMPING UTILITIES -W 44,052.20 80,000.00 35,947.80 55.1%

PUMPING UTILITIES - S 7,646.28 18,000.00 10,353.72 42.5%

UNIFORMS- W 435.76 750.00 314.24 58.1%

UNIFORMS- S 435.79 750.00 314.21 58.1%

Travel Expense-W 529.01 3,000.00 2,470.99 17.6%

Travel Expense-S 529.02 1,000.00 470.98 52.9%

"'""'"r" '" 1A."lf1.tn Al\.f VTTJ V:: ri> nc.e Performance Income Statement Page:---- ·-·-- ---- ---·- ··---- -·-- -- ------ ·- ---------- ---------

7 Months EndedJanuary 31, 2016 Annual

Budget Unused %Used

MISCELLANEOUS -W 0.00 500.00 500.00MISCELLANEOUS - S 0.00 500.00 500.00CAPITAL EXPENDITURES -W 6,761.25 0.00 (6,761.25)CONSERVATION EFFORTS-W 1,299.98 4,000.00 2,700.02 32.5%Med Savings-Green (160.51) 8,054.04 8,214.55 -2.0%Med Savings-Green (160.51) 8,054.04 8,214.55 -2.0%

TOTAL Expenses 733,412.96 1,269,360.26 535,947.30 57.8%

OPERATING PROFIT 72,862.13 81,889.74 9,027.61 89.0%

Other Income & ExpensesAPPLICATION FEES-W 150.00 100.00 (50.00) 150.0%TAXES-W 67,505.14 80,000.00 12,494.86 84.4%INTEREST-W 1,515.49 2,500.00 984.51 60.6%INTEREST-S 1,083.62 2,000.00 916.38 54.2%CUSTOMER ASSESSMENTS-S 84,408.02 0.00 (84,408.02)

TOTAL Other Income & Expenses 154,662.27 84,600.00 (70,062.27) 182.8%

PROFIT BEFORE TAXES 227,524.40 166,489.74 (61,034.66) 136.7%

NET PROFIT 227,524.40 166,489.74 (61,034.66) 136.7%

_,_, ,._,,.- <f\.">1"\,11"\ A ,r YTD Variance Performance Income Statement Fag(

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