ARSA Amador Regional Sanitation Authority ARSA Agenda Packet.pdfSep 25, 2019 · 4:05 PM 09/17/19. Amador Regional Sanitation Authority (ARSA) Check Detail. September 2019. Type Num

Amador Regional Sanitation Authority “Servicing Amador City, Martell, & Sutter Creek”

A G E N D A September 25, 2019

10:00 A.M. Regular Meeting

SUTTER CREEK COMMUNITY BUILDING

33 CHURCH STREET, SUTTER CREEK

1. CALL TO ORDER AND ESTABLISH A QUORUM – 10:00 AM

2. PLEDGE OF ALLEGIANCE TO THE FLAG

3. PUBLIC FORUM Discussion items only, no action to be taken. Any person may address the Board at this time upon any subject within the

jurisdiction of the Amador Regional Sanitation Authority; however, any matter that requires action may be referred to staff

and/or Committee for a report and recommendation for possible action at a subsequent Board meeting. Please note –

there is a five (5) minute limit per topic.

4.

*

*

*

*

CONSENT AGENDA

Items listed on the consent agenda are considered routine and may be enacted in one motion. Any item may be

removed for discussion at the request of the Board or the Public.

A. Minutes of July 10, 2019

Approve Minutes of July 10, 2019.

B. Approval of Warrants

Approve warrants.

C. Financial Statements

For information only.

D. System Status Report


5.

*

ADMINISTRATIVE AGENDA

A. Audit for FYE 2017 & 2018


6. ADJOURNMENT

* Attachments

Proceedings of the Meeting will be tape recorded. In compliance with the Americans with Disabilities Act, if you need special assistance to

participate in this meeting, please call (209) 267-5647. Notification 48 hours prior to the meeting will allow for reasonable arrangements to be made.

1

Amador Regional Sanitation Authority

“Servicing Amador City, Martell, & Sutter Creek”

MINUTES

OF THE BOARD OF DIRECTORS MEETING

July 10, 2019

Present: Staff Present:

Robin Peters, Chairman Amy Gedney, Interim General Manager

Jim Swift, Board Member Harriet Steiner, ARSA Attorney

Susan Bragstad, Board Member Karen Darrow, Secretary

Absent: Richard Forster, Vice Chairman

Frank Axe, Board Member

1. CALL TO ORDER AND ESTABLISH A QUORUM

Meeting called to order by Chairman Peters at 10:00 A.M.

2. PLEDGE OF ALLEGIANCE TO THE FLAG

Chairman Peters led the Pledge of Allegiance.

3. PUBLIC FORUM

Board member Bragstad asked what happens to the reservoir when they go to tertiary. ARSA Attorney

Steiner noted that they will be working on the wind down process and what that entails as it gets near.

Board member Bragstad also asked how the Audit was progressing. Staff noted that it is being held up with

Capital Assets and it should be completed and available by the next meeting.

Interim General Manager Gedney noted that the City of Sutter creek wastewater treatment plant grant is

moving forward but at a very slow pace. A revised plan of study had recently been requested.

She also noted that the City of Sutter Creek has begun a Sewer Rate Study that has a built-in component that

will include the wastewater treatment plant once it is approved.

Chairman Peters noted that ARSA Engineer Ghio would be retiring and asked who would be taking his place.

ARSA Engineer Ghio noted that Matt Ospital of Weber Ghio would be the contact moving forward but that

he would remain available as a resource.

Chairman Peters, on behalf of the ARSA Board, thanked Mr. Ghio for his work with ARSA and

congratulated him on his retirement.

4. CONSENT AGENDA

Items listed on the consent agenda are considered routine and may be enacted in one motion. Any item may

be removed for discussion at the request of the Board or the Public.

A. Minutes of March 27, 2019

Approve Minutes of March 27, 2019.

B. Approval of Warrants

Approve warrants.

C. FY 18-19 Budget vs. Actual


D. System Status Report


kdarrow

Textbox

Item 4A

2

Item 4A was pulled for discussion

M/S Swift/Bragstad to Approve the Minutes of March 27, 2019, as amended.

AYES: Bragstad, Swift and Peters

NOES: None

ABSTAIN: None

ABSENT: Axe and Forster

MOTION CARRIED

M/S Bragstad/Swift to Approve Consent Agenda Items B, C & D, as presented.


NOES: None

ABSTAIN: None


MOTION CARRIED

5.

ADMINISTRATIVE MATTERS

A. Inundation Mapping

For information only and staff direction to choose a method of public outreach.

ARSA Engineer Gary Ghio outlined and gave a recommendation regarding outreach methods

based on DSOD requirements.

The Board directed staff to utilize all recommended methods of notification to include:

1. Transmittal of informational mailers to downstream property owners that are within the

inundation area

2. Coordination of additional outreach activities with Amador County, the City of Ione,

CDCR,

and Castle Oaks Golf Course and require posting of information in areas of normal public

notice postings used by the agencies.

3. Public notice advertisement in the local newspaper where residents can find the

information.

B. Fiscal Year 2019-2020 Annual Budget

Adopt Resolution 19-20-* Adopting the 2019-2020 Annual Budget.

Interim General Manager Gedney presented the Final Budget.

M/S Swift/Bragstad to Adopt Resolution 19-20-01 Adopting the 2019-2020 Annual Budget, as

presented with a correction to the date on the Resolution.


NOES: None

ABSTAIN: None


MOTION CARRIED

3

____________________________ _________________________

Karen Darrow, Secretary Robin Peters, Chairman

Date Approved:

6. ADJOURNMENT

The meeting was adjourned at 10:35 a.m.

4:05 PM

09/17/19 Amador Regional Sanitation Authority (ARSA)

Check Detail September 2019

Type Num Date Name Account Paid Amount

Bill Pmt -Check 1499 09/25/2019 CD & Power 10000 · Checking - Umpqua

Bill 02-21334 08/15/2019 Vehicle Maintenance -231.09

TOTAL -231.09

Bill Pmt -Check 1500 09/25/2019 City of Sutter Creek 10000 · Checking - Umpqua

Bill 2019-09 09/11/2019 Contract with COSC -11,185.33

Overtime -13,737.96

Repairs & Maintenance -1,560.31

TOTAL -26,483.60

Bill Pmt -Check 1501 09/25/2019 Hunt & Sons, Inc. 10000 · Checking - Umpqua

Bill 165605 08/31/2019 Fuel -389.57

Bill 47703 08/31/2019 Fuel -30.00

Bill 180943 09/15/2019 Fuel -149.06

TOTAL -568.63

Bill Pmt -Check 1502 09/25/2019 Jackson Tire 10000 · Checking - Umpqua

Bill GS172783 08/07/2019 Vehicle Maintenance -990.29

TOTAL -990.29

Bill Pmt -Check 1503 09/25/2019 Weber, Ghio & Associates 10000 · Checking - Umpqua

Bill 6669 09/11/2019 Engineering -701.75

TOTAL -701.75

Page 1 of 1

kdarrow

Textbox

Item 4B

Aug 31, 19

ASSETSCurrent Assets

Checking/Savings10000 · Checking - Umpqua

10005 · FEMA/CalOES Allen Crossing Rd W -33,861.0110006 · FEMA/CalOES Preston 13,404.0010000 · Checking - Umpqua - Other 132,309.76

Total 10000 · Checking - Umpqua 111,852.75

10010 · Savings - Umpqua 296,894.62

Total Checking/Savings 408,747.37

Accounts Receivable11000 · Accounts Receivable 469,317.75

Total Accounts Receivable 469,317.75

Total Current Assets 878,065.12

Fixed Assets101707 · Capital Replacement Fund 292,432.03101708 · ARSA District 15,588.59150620 · Long Term Assets Structures 1,884,800.13150621 · Long Term Assets Structures Dep -1,432,448.15150630 · Long Term Assets Equipment 350.00150631 · Long Term Assets Equipment Depr -151.0035000 · Investment in Capital Assets 841,648.00

Total Fixed Assets 1,602,219.60

Other Assets120000 · Note Receivable 450,000.00120100 · Accrued Interest Receivable 134,154.00

Total Other Assets 584,154.00

TOTAL ASSETS 3,064,438.72

LIABILITIES & EQUITYLiabilities

Current LiabilitiesAccounts Payable

20000 · Accounts Payable 1,495.21

Total Accounts Payable 1,495.21

Total Current Liabilities 1,495.21

Total Liabilities 1,495.21

Equity30000 · Opening Balance Equity 2,956,020.5532000 · Retained Earnings -288,759.61Net Income 395,682.57

Total Equity 3,062,943.51

TOTAL LIABILITIES & EQUITY 3,064,438.72

4:04 PM Amador Regional Sanitation Authority (ARSA)09/17/19 Balance SheetAccrual Basis As of August 31, 2019

Page 1

kdarrow

Textbox

Item 4C

Amador Regional Sanitation Authority (ARSA)

Budget vs. Actual July through August 2019

Budget Jul - Aug 19 % of Budget Projected YE

Income

Interest Income 150.00 11.75 7.83% 150.00

Use Fee Revenue

Amador City 14,613.00 3,653.25 25.0% 14,613.00

Amador Water Agency 80,066.00 0.00 0.0% 80,066.00

City of Sutter Creek 378,292.00 0.00 0.0% 378,292.00

Total Use Fee Revenue 472,971.00 3,653.25 0.77% 472,971.00

Total Income 473,121.00 3,665.00 0.78% 473,121.00

Expense

Employee Services

Contract with COSC 134,224.00 23,930.66 17.83% 134,224.00

Overtime 65,000.00 24,756.71 38.09% 65,000.00

Total Employee Services 199,224.00 48,687.37 24.44% 199,224.00

Operations

Audit & Accounting 8,000.00 0.00 0.0% 8,000.00

Contingency 26,000.00 0.00 0.0% 26,000.00

Engineering

Inundation mapping 10,000.00 243.75 2.44% 10,000.00

Engineering - Other 30,000.00 7,271.50 24.24% 30,000.00

Total Engineering 40,000.00 7,515.25 18.79% 40,000.00

Flood Control 2,000.00 0.00 0.0% 2,000.00

Fuel 22,000.00 4,208.82 19.13% 22,000.00

General Supplies 500.00 0.00 0.0% 500.00

Legal 20,000.00 656.72 3.28% 20,000.00

Membership Dues 1,800.00 0.00 0.0% 1,800.00

Repairs & Maintenance 10,000.00 14,801.24 148.01% 10,000.00

Risk Management - Liabilty 14,200.00 0.00 0.0% 14,200.00

Taxes/Fees/Licenses 55,000.00 209.40 0.38% 55,000.00

Tertiary Treatment Fees 70,000.00 0.00 0.0% 70,000.00

Vehicle Maintenance 2,700.00 1,221.38 45.24% 2,700.00

Weed Control 1,500.00 0.00 0.0% 1,500.00

Total Operations 273,700.00 28,612.81 10.45% 273,700.00

Total Expense 472,924.00 77,300.18 16.35% 472,924.00

Page 1 of 1

ARSA SYSTEM FLOWS

2014 - Present

Date

Sutter Creek

WWTP Flow

(mg)

Bowers

Irrigation

(mg)

Henderson

Freeboard

Henderson

Outflow

(mg)

Hoskins

Irrigation

(mg)

Mule

Creek

Inflow (mg)

Preston

Freeboard

Outflow to

Ione (af)

Date

Sutter Creek

WWTP Flow

(mg)

Bowers

Irrigation

(mg)

Henderson

Freeboard

Henderson

Outflow

(mg)

Hoskins

Irrigation

(mg)

Mule

Creek

Inflow (mg)

Preston

Freeboard

Outflow to

Ione

(650acft)

2014

1/31/2014 6.8 0.0 15'8" 7.1 0.0 3.4 17'1" 0.0

2/28/2014 12.3 0.0 11'5" 5.5 0.0 12.1 11'9" 0.0

3/31/2014 13.9 0.0 8' 7.3 0.0 0.0 13'2" 0.0

4/30/2014 11.0 0.0 6'2" 13.6 0.0 0.0 8'7" 5.2

5/31/2014 8.8 0.0 5'9" 12.2 0.0 0.0 12'3" 21.9

6/30/2014 8.2 8.2 7'1" 9.7 4.5 45.2 9'1" 28.4

7/31/2014 8.0 7.8 9'9" 13.0 4.7 31.4 10'3" 37.4

8/31/2014 8.4 5.8 11'6" 15.1 4.6 11.1 16'6" 38.9

9/30/2014 8.2 5.2 14'4" 16.4 4.6 10.1 19'3" 27.7

10/31/2014 8.1 3.7 17'7" 15.7 3.2 5.8 18'5" 14.1

11/30/2014 8.2 3.2 19' 16.2 0.8 0.0 13'3" 0.1

12/31/2014 16.0 0.0 13'1" 7.1 0.0 0.0 10'9" 0.0

Total Flow 117.9 33.9 138.9 22.4 119.1 173.7

Annual ac ft 361.8 104.0 426.3 68.7 365.5 533.1

2015

1/31/2015 9.7 0.0 10' 4.2 0.0 0.0 10'5" 0.0

2/28/2015 13.3 0.0 7'1" 6.6 0.0 0.0 8'8" 0.0

3/31/2015 9.7 0.0 6'5" 12.3 1.7 0.1 6'8" 0.0

4/30/2015 8.5 0.0 5'9" 19.2 5.6 0.0 5'8" 8.8

5/31/2015 8.2 0.0 5'7" 12.7 7.3 0.0 9'3" 22.6

6/30/2015 7.2 5.7 8'7" 20.7 10.1 15.8 8'9" 28.3

7/31/2015 7.2 6.6 12'3" 22.7 10.0 24.8 8'1" 32.6

8/31/2015 7.5 7.5 15'9" 16.9 10.3 23.3 7'2" 32.6

9/30/2015 7.6 5.8 19'6" 14.6 6.5 15.6 8'9" 31.4

10/31/2015 7.8 4.5 24'1" 19.7 5.8 0.0 10'9" 23.0

11/30/2015 8.4 0.0 21'1" 3.9 0.0 0.0 14'6" 10.9

12/31/2015 13.4 0.0 17'2" 9.8 0.0 0.0 14' 6.6

Total Flow 108.4 30.1 163.4 57.3 79.6 196.6

Annual ac ft 332.7 92.3 501.4 175.8 244.2 603.5

2016

1/31/2016 19.0 0.0 12'1" 12.4 0.0 0.0 11'4" 3.9

2/29/2016 10.7 0.0 10'9' 17.8 0.0 0.0 8'7" 4.0

3/31/2016 17.7 0.0 8'7" 15.1 0.0 0.0 5'7" 3.4

4/30/2016 10.7 0.0 8'5" 13.7 0.0 0.0 5'7" 9.1

5/31/2016 9.3 0.0 9'9" 23.0 0.0 0.0 7'7" 27.3

6/30/2016 8.3 2.9 14'4" 32.2 2.2 0.0 9'8" 36.0

7/31/2016 9.0 9.0 20'1" 25.4 5.3 35.9 7'6" 40.9

8/31/2016 9.2 9.2 22'3" 8.7 3.2 32.9 8'3" 44.1

9/30/2016 8.3 6.3 25'8" 10.8 2.2 10.3 13'2" 37.5

10/31/2016 11.0 2.5 23'2" 5.9 0.0 4.0 14'4" 6.4

11/30/2016 11.2 0.0 20'8" 5.3 0 0.0 14'2" 0.0

12/31/2016 16.5 0.0 16'8" 10.4 0.0 0.0 11'6" 0.0

Total Flow 140.8 29.8 180.8 12.9 83.2 212.6

Annual ac ft 432.1 91.5 554.9 39.6 255.2 652.5

kdarrow

Textbox

Item 4D

ARSA SYSTEM FLOWS

2014 - Present

Date

Sutter Creek

WWTP Flow

(mg)

Bowers

Irrigation

(mg)

Henderson

Freeboard

Henderson

Outflow

(mg)

Hoskins

Irrigation

(mg)

Mule

Creek

Inflow (mg)

Preston

Freeboard

Outflow to

Ione (af)

2017

1/31/2017 30.9 0.0 9'3" 10.7 0.0 0.0 6'8" 0.0

2/28/2017 26.5 0.0 4'1" 10.2 0.0 0.0 4'4" 0.0

3/31/2017 15.5 0.0 1'5" 14.1 0.0 0.0 1'5" 1.5

4/30/2017 16.1 0.0 1'6" 34.9 0.0 0.0 1'8" 5.9

5/31/2017 9.6 0.0 3'7" 38.0 2.7 0.0 1'2" 27.4

6/30/2017 8.9 8.0 6'7" 36.0 8.8 0.0 3'2" 36.2

7/31/2017 8.6 8.7 11' 35.0 10.7 0.0 6'11" 41.8

8/31/2017 8.8 8.7 13'9" 20.6 8.6 0.0 7'6" 12.1

9/30/2017 8.7 8.7 16'2" 18.3 11.9 0.0 6'10 0.0

10/31/2017 8.0 8.1 17'4" 13.8 9.4 0.0 9'7" 17.2

11/30/2017 11.5 0.9 14'10" 9.7 7.4 0.0 11'1" 27.2

12/31/2017 9.5 0.0 12'9" 6.3 0.0 10'6" 0.0

Total Flow 162.6 43.1 241.3 65.8 0.0 169.3

Annual ac ft 499.0 132.2 740.6 202.1 0.0 519.6

Average ac feet per

Year 313.51 76.46 385.57 74.90 216.80 485.36

2018

1/31/2018 13.6 0 9'7" 8.4 0 0 8'8" 0

2/28/2018 8.7 0 7'10" 5.1 0 0 8'3" 0

3/31/2018 22.1 0 4'1" 8.00 0 0 5'11" 0

4/30/2018 14.1 0 3'9" 23.8 6.0 0 3'3" 1.15

5/31/2018 9.3 0 3'10" 16.9 9.9 0 8'2" 27.71

6/30/2018 8.4 5.3 5'8" 21.2 9.6 0 15'1" 37.73

7/31/2018 9.3 9.2 10'0" 35.4 9.5 0 22'0" 42.85

8/31/2018 9.7 9.7 11'7" 12 5.8 0 20'9" 0

9/30/2018 9 9 13'11" 16 10.7 0 19'3" 0

10/31/2018 8.9 8.9 15'2" 16.2 10.0 0 11' 0

11/30/2018 10.5 5.8 15'1" 14.9 5.6 0 14'10" 0

12/31/2018 11.7 0 13'6" 15.2 0 0 11'2" 0

Total Flow 135.3 47.9 0 193.1 67.1 0 0 109.44

Annual ac ft 415.2 147.0 0.0 592.6 205.9 0.0 0.0 335.9

2019

1/31/2019 17.4 0 10'5" 36.7 0 0 8'3" 0

2/28/209 23.3 0 6'6" 4.8 0 0 6'6" 0

3/31/2019 20.2 0 3'6" 7.6 0 0 4'8" 0

4/30/2019 11.9 0 2'9" 15.8 4.2 0 3'2" 2

5/31/2019 12.7 0 3'6" 24.0 5.8 0 4'8" 20.9

6/30/2019 10 5.2 5'10" 26.5 12.3 0 7'3" 29

7/31/2019 7.6 9.9 8'11" 22.9 13.8 0 14'7" 40.6

8/31/2019 10 10 10'7" 11.8 0 17'2" 6.2

9/30/2019

10/31/2019

11/30/2019

12/31/2019

Total Flow (mg) 113.1 25.1 0 138.3 47.9 0 0 98.7

Annual ac ft 347.1 77.0 0.0 424.4 147.0 0.0 0.0 302.9

Amador Regional Sanitation Authority “Servicing Amador City, Martell, & Sutter Creek”

STAFF REPORT

TO: ARSA BOARD OF DIRECTORS

MEETING DATE: SEPTEMBER 25, 2019

FROM: JODI STENECK, ACCOUNTING SUPERVISOR

SUBJECT: BASIC FINANCIAL STATEMENTS (AUDIT) FOR FISCAL YEAR

END (FYE) 2018 & 2017

RECOMMENDATION:

For information.

DISCUSSION:

Maze & Associates conducted an independent audit of the ARSA financial records for fiscal years

2017 – 2018 and 2016 – 2017 and prepared a draft Basic Financial Statements report that

combines both years. (Attachment A). There will be a correction to the Statements of Net

Position before the report is finalized. The Accrued interest currently shows $112,815 in columns

2018 & 2017 and the correct amount is $134,154 for 2018 and $123,957 for 2017.

The total net position which represents the difference between ARSA’s assets and its liabilities

was $1,035,811 as of June 30, 2018 a decrease of $244,553 from the prior year.

Operating expenses exceeded operating revenues for both years audited which resulted in an

operating loss of $224,694 in FYE 2018 and $275,317 in FYE 2017.

The cash and cash equivalents was $473,630 for FYE 2018 which was a decrease of $107,532

from FYE 2017.

Capital assets which consist of structures and equipment were fully depreciated with fiscal year

ending June 30, 2018, which resulted in a net capital asset of $0.

BUDGET IMPACT:

None

Item 5A

REVIEW DRAFT 9/10/2019 11:54:29 AM

AMADOR REGIONAL SANITATION AUTHORITY

BASIC FINANCIAL STATEMENTS

FOR THE YEARS ENDED JUNE 30, 2018 AND 2017

kdarrow

Textbox

Attachment A

REVIEW DRAFT 9/10/2019 10:22:58 AM

This Page Left Intentionally Blank

AMADOR REGIONAL SANITATION AUTHORITY BASIC FINANCIAL STATEMENTS

For the Years Ended June 30, 2018 and 2017

Table of Contents

REVIEW DRAFT 9/10/2019 10:22:58 AM

Page INTRODUCTORY SECTION Table of Contents ................................................................................................................................................ i FINANCIAL SECTION Independent Auditor’s Report ............................................................................................................................ 1 Management’s Discussion and Analysis ............................................................................................................ 3 Basic Financial Statements: Statements of Net Position ........................................................................................................................... 6 Statements of Revenues and Expenses and Changes in Net Position ......................................................... 7 Statements of Cash Flows ............................................................................................................................ 8 Notes to Financial Statements ............................................................................................................................ 9

i

REVIEW DRAFT 9/10/2019 10:22:58 AM


REVIEW DRAFT 9/10/2019 10:22:58 AM

INDEPENDENT AUDITOR’S REPORT

Board of Directors Amador Regional Sanitation Authority Sutter Creek, California

We have audited the accompanying basic financial statements of the Amador Regional Sanitation Authority (Authority) as of and for the years ended June 30, 2018 and 2017, and the related notes to the financial statements, which collectively comprise the Agency’s basic financial statements as listed in the Table of Contents.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the 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 Agency’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 Agency’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Authority as of June 30, 2018 and 2017, respectively, and changes in financial position and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

1

REVIEW DRAFT 9/10/2019 10:22:58 AM

Other Matters

Required Supplementary Information

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

Pleasant Hill, California DATE

2

MANAGEMENT’S DISCUSSION AND ANALYSIS

June 30, 2018 and 2017

This discussion and analysis of the Amador Regional Sanitation Authority (Authority) financial performance provides

an overview of the financial activities for the fiscal year ended June 30, 2018 and 2017. Please read in conjunction

with the accompanying financial statements and related notes, which follow this section.

Financial Highlights:

Cash and cash equivalents decreased over the last year by $107,532 for the fiscal year ended June 30, 2018

and decreased by $847 for the year ended June 30, 2017

Total assets exceeded total liabilities by $1,035,811 for the year ended June 30, 2018 and $1,260,364 for

the year ended June 30, 2017; of which $1,035,811 and $1,071,844 respectively is reported as unrestricted

net position and may be used to meet ongoing operations.

Operating expenses exceeded operating revenues by $224,694 for year ended June 30, 2018 and $275,317

for year ended June 30, 2017.

Basic Financial Statements:

In accordance with the Government Accounting Standards Board (GASB) Statement No. 34, the Authority’s basic

financial statements include a statement of net position, statements of revenues, expenses and changes in net

position, and a statements of cash flows.

The statement of net position includes the Authority’s assets and liabilities and provides information about the

nature and amounts of investments in resources (assets) and the obligations to the Authority creditors (liabilities).

The difference between the assets and liabilities is shown as net position. This statement also provides the basis of

evaluating the capital structure of the Authority and assessing its liquidity and financial flexibility.

The statement of revenues, expenses and changes in net position accounts for the current year’s revenues and

expenses. This statement measures the success of the Authority’s operations over the past year and determines

whether the Authority has recovered its cost through user fees and other charges.

The final required statement is the statements of cash flows. This statement reports cash receipts, cash

disbursements, and net changes in cash resulting from operations and investments during the reporting period.

The notes to financial statements provide a description of the accounting policies used to prepare the financial

statements and present disclosures required by generally accepted accounting principles that are not otherwise

present in the financial statements.

3

Financial Analysis

The following table summarizes the net position for the Authority’s activities:

2018 2017

Current assets 473,630$ 581,162$

Capital assets ‐ 188,480

Other assets 562,815 562,815

Total Assets 1,036,445 1,332,457

Total Liabilities 634 72,093

Net investment in capital assets ‐ 188,480

Unrestricted 1,035,811 1,071,884

Total Net Position 1,035,811$ 1,260,364$

Total

Net position represents the difference between the Authority’s resources and its obligations. At June 30, 2018, the largest portion of assets was non‐current assets and then current assets. The net position decreased by $224,553 for year end June 30, 2018 and $274,743 for year end June 30, 2017.

4

Statements of Revenues, Expenses and Changes in Net Position:

The following table summarizes the revenue, expenses and change in net position, showing the beginning net position and the year‐end net position:

2018 2017

Revenues:

Operating revenues 653,042$ 496,034$

Investment income 141 574

Total revenues 653,183 496,608

Expenses:

Operating expenses 877,736 771,351

Total expesnes 877,736 771,351

Change in net position (224,553) (274,743)

Net position, beginning of the year 1,260,364 1,535,107

Net position, end of the year 1,035,811$ 1,260,364$

Total revenues for the year ended June 30, 2018 and 2017 were $653,183 and $496,608 respectively. Total

expenses were $877,736 for year ended June 30, 2018 which exceeded revenue by $224,553 and June 30, 2017

total expenses were $771,351 which exceeded revenue by $274,743. The change in net position for the two years

combined was a decrease of$499,296.

Contacting the General Manager

This financial report is designed to provide the citizens, taxpayers, customers, investors, and creditors with a

general overview of the Authority’s finances and to show the Authority’s accountability for the money it receives. If

you have questions about this report or would like additional financial information, please contact the Interim

General Manager, Amador Regional Sanitation Authority, 18 Main Street, Sutter Creek, California 95685.

5


STATEMENTS OF NET POSITION

JUNE 30, 2018 AND 2017

2018 2017

ASSETS

Current assets:

Cash and cash equivalents $473,630 $581,162

Total current assets 473,630 581,162

Capital Assets:

Structures, net 188,480

Equipment, net

Total capital assets 188,480

Other assets:

Note receivable 450,000 450,000

Accrued interest 112,815 112,815

Total non-current assets 562,815 562,815

Total assets 1,036,445 1,332,457

LIABILITIES

Current liabilities:

Accounts payable 634 72,093

Total current liabilities 634 72,093

NET POSITION

Net investment in capital assets 188,480

Unrestricted 1,035,811 1,071,884

Total net position $1,035,811 $1,260,364

See notes to financial statements

6


STATEMENTS OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION


2018 2017

Operating revenues:

Service charges $493,045 $496,034

Intergovernmental revenue 122,749

Other 37,248

Total operating revenues 653,042 496,034

Operating expenses:

Services and Supplies 689,256 582,871

Depreciation expense 188,480 188,480

Total operating expenses 877,736 771,351

Operating income(loss) (224,694) (275,317)

Non-operating revenues (expenses)

Investment income 141 574

Total non-operating revenues (expenses) 141 574

Change in net position (224,553) (274,743)

Net position, beginning of year 1,260,364 1,535,107

Net position, end of year $1,035,811 $1,260,364

See notes to finanical statements

7

2018 2017

Cash flows from operating activities:

Cash received from customers $653,042 $458,534

Cash paid to suppliers (760,715) (539,905)

Interest 141 (4,376)

Net cash provided (used) by operating activities (107,532) (85,747)

Net increase (decrease) in cash and cash equivalents (107,532) (85,747)

Cash and cash equivalents - beginning of period 581,162 666,909

Cash and cash equivalents - end of period $473,630 $581,162

Reconciliation of operating loss to net cash

provided (used) in operating activities:

Operating loss ($224,553) ($274,743)

Adjustments to reconcile operating loss to cash flows from

operating activities:

Depreciation 188,480 188,480

(Increase) decrease in:

Receivables (37,500)

Accrued interest (4,950)

Increase (decrease) in:

Accounts payable (71,459) 42,966Net cash provided (used) by operating activities ($107,532) ($85,747)

See notes to finanical statements


STATEMENTS OF CASH FLOWS


8

AMADOR REGIONAL SANITATION AUTHORITY NOTES TO FINANCIAL STATEMENTS


REVIEW DRAFT 9/10/2019 10:22:58 AM

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. General

The Amador Regional Sanitation Authority (Authority) is a joint powers authority organized under CaliforniaGovernment Code Section 6505. The Authority was created September 19, 1978 for the specific purpose todesign, construct, maintain and operate the outfall line and facilities that extend the Sutter Creek Treatment Plantto the City of Ione’s secondary treatment ponds. Its members consist of the cities of Amador and Sutter Creekand the County of Amador. Its operations are supported by member contributions collected from its members toreimburse expenses associated with the operation of the Authority. The governing board is made up of fiverepresentatives, consisting of two County Supervisors, two Sutter Creek City Council members and one AmadorCity Council member.

B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The Authority uses a proprietary (enterprise) fund to account for its activities. Proprietary funds are used toaccount for operations that are financed and operated in a manner similar to a private business enterprisewhere the intent of the governing body is that the cost of providing goods or services to individuals outsidethe governing body, on a continuing basis, be financed or recovered primarily through user changes.

The Authority’s financial statements are prepared in conformity with accounting principles generally acceptedin the United States of America. The Government Accounting Standards Board is the acknowledged standardsetting body for establishing accounting and financial reporting standards followed by governmental entitiesin the U.S.A.

C. Basis of Accounting

Financial statements for the Authority are reported using the economic resources measurement focus and theaccrual basis of accounting. All assets and liabilities associated with the operation of the Authority areincluded on the statement of net position. Revenues are recorded when earned and expenses are recordedwhen the liability is incurred, regardless of the timing of related cash flows.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenuesand expenses generally result from providing services and producing and delivering goods in connection withthe proprietary fund's principal ongoing operations. All revenues and expenses not meeting this definition arereported as non-operating revenues and expenses.

Non-exchange transactions, in which the Authority gives (or receives) value without directly receiving (orgiving) equal value in exchange, include grants and donations. On an accrual basis, revenue from grants anddonations are recognized in the fiscal year in which all eligibility requirements have been satisfied.

9



REVIEW DRAFT 9/10/2019 10:22:58 AM

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Receivables and Payables

Transactions representing accrual of revenues and expenses at year-end are referred to as either accounts receivable or accounts payable. Accounts receivable include transactions in which the Authority has either earned or has met all eligibility requirements and is entitled the revenue. Accounts payable include transactions in which the Authority has received goods and or services during the current year but has not paid for them as of the end of the fiscal year.

E. Revenue

Operating revenues are recognized in the accounting period in which they are earned. Amounts recorded as charges for services represent payments from the members of the Authority.

F. Expenses

On the statement of revenues, expenses and changes in fund net position, expenses are recognized in the accounting period in which the related liability is incurred.

G. Capital Assets

The Authority’s policy is to capitalize assets with an initial individual cost of more than $5,000 and an estimated useful life of more than one year. Depreciation is computed using the straight-line method over the estimated useful lives of equipment.

H. Net Position Net position is classified into three components - net investment in capital assets, restricted and unrestricted. These classifications are defined as follows: Net investment in capital assets - This component of net position consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted - Net position is reported as restricted when there are limitations imposed on its use either through enabling legislation or through external restrictions imposed by creditors, grantors, laws, or regulation of other governments. Unrestricted - Unrestricted net position represents net position that is not restricted for any purpose.

I. Risk Management

The Authority is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Authority, as a member of the Special District Risk Management Authority (SDRMA), has purchased various insurance policies to manage the potential liabilities that may occur from the previously named sources. SDRMA’s purpose is to arrange and administer programs of self-insure losses and to purchase excess insurance coverage

10



REVIEW DRAFT 9/10/2019 10:22:58 AM

NOTE 2 – CASH IN BANK A. Composition

The Authority’s cash held with financial institutions at June 30, 2018 and 2017 is $473,630 and $581,162 respectively.

B. Investment Policy

The Authority has not adopted an investment policy. But the County's Board of Supervisors approves an investment policy each year and provides oversight for all pooled investments in the County Treasury. California statutes authorize authorities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4-Financial Affairs.

C. Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the Authority may not be able to recover its deposits or may not be able to recover collateral securities that are in the possession of an outside party. Under California Government Code Section 53651, depending on specific types of eligible securities, a bank must deposit eligible securities posted as collateral with its agent having a fair value of 110% to 150% of the Authority’s cash on deposit. All of the Authority’s deposits are either insured by the Federal Depository Insurance Corporation (FDIC) or collateralized with pledged securities held in the trust department of the financial institutions in the Authority’s name.

NOTE 3 – CAPITAL ASSETS

Capital assets at June 30, 2018 and 2017 consist of structures and equipment. Estimated useful lives range from 5-30 years.

Capital assets are as follows as of June 30, 2018:

Balance Balance

June 30, 2017 Additions June 30, 2018

Capital assets being depreciated:

Structures and improvements $1,884,800 $1,884,800

Office equipment 350 350

Total capital assets being depreciated 1,885,150 1,885,150

Accumulated depreciation:

Structures and improvements (1,696,320) ($188,480) (1,884,800)

Office equipment (350) (350)

Total accumulated depreciation (1,696,670) (188,480) (1,885,150)

Total capital assets, being depreciated, net 188,480

Capital assets, net $188,480

11



REVIEW DRAFT 9/10/2019 10:22:58 AM

NOTE 3 – CAPITAL ASSETS (Continued)

Capital assets are as follows as of June 30, 2017:

Balance Balance

June 30, 2016 Additions June 30, 2017

Capital assets being depreciated:

Structures and improvements $1,884,800 $1,884,800

Office equipment 350 350

Total capital assets being depreciated 1,885,150 1,885,150

Accumulated depreciation:

Structures and improvements (1,507,840) ($188,480) (1,696,320)

Office equipment (350) (350)

Total accumulated depreciation (1,508,190) (188,480) (1,696,670)

Total capital assets, being depreciated, net 376,960 188,480

Capital assets, net $376,960 $188,480

NOTE 4 – NOTE RECEIVABLE

In March 2006, the Authority and City of Sutter Creek funded the acquisition of an easement costing $750,000. The easement provides for the eventual delivery of effluent (pipeline easement) to a spray field for the discharging of partially treated effluent. The facilities are to provide additional effluent disposal for the Authority. The agreement with the City of Sutter Creek calls for the construction of a pipeline along the easement and for the proper discharge of effluent once the Gold Rush development occurs. The City of Sutter Creek agreement with Gold Rush Golf calls for the construction to the pipeline by the developer. The City of Sutter Creek provided $300,000 of the funding of the easement while the Authority provided the remaining $450,000. The purchase agreement calls for the City of Sutter Creek to reimburse the Authority the principal of $450,000 plus interest at the State treasurer’s LAIF rate. For this reason, the Authority has granted a delay to the City in the repayment schedule, including accrued interest. The most recent deferral approved by the Authority grants the City of Sutter Creek a delay until needed. If the Gold Rush Golf development does no occur, the City of Sutter Creek intends to use sewer connection fees and sewer rate charges for making the repayments to the Authority. Although the Authority is not in need of the funds currently, it appears the Gold Rush Gold Resort may not happen at all and we would recommend the Authority start a repayment schedule for the accumulated interest at a minimum, and preferably the full principal and interest repayment.

12



REVIEW DRAFT 9/10/2019 10:22:58 AM

NOTE 5 – OPERATING LEASE

The Authority entered into an agreement with the State of California (the State) to lease space on the existing Mule Creek State Prison at 4001 Highway 104, Sutter Creek, CA 95685, and the Preston youth Correctional Facility at 201 Waterman Road, Ione, CA 95640. The initial agreement requires an annual rent of 41 due in advance and payable January 1 of each year starting 2009. The initial term of the agreement is for a period of twenty-nine years eight months to commence on January 1, 2009 and terminates on September 10, 2037.

NOTE 6 – RELATED PARTY TRANSACTIONS

The Authority contracts with the City of Sutter Creek to provide administration, operation, maintenance and responsibility for the Authority’s system and to be responsible for maintaining the property comprising the system in accordance with applicable waste discharge requirements, laws and regulations of the California Regional Water Control Board Central Valley Region. The expenses for services totaled $191,406 and $175,744 for the year ended June 30, 2018 and 2017.

13

REVIEW DRAFT 9/10/2019 10:32:02 AM


14

Documents

ARSA Amador Regional Sanitation Authority ARSA Agenda Packet.pdfSep 25, 2019 · 4:05 PM 09/17/19. Amador Regional Sanitation Authority (ARSA) Check Detail. September 2019. Type Num