2025
ANNUAL
COMPREHENSIVE
FINANCIAL
REPORT
SAN BERNARDINO, CA
FOR THE FISCAL YEAR ENDED JUNE 30,2025
OF THE CITY OF SAN BERNARDINO WATER
DEPARTMENT A COMPONENT UNIT OF THE
CITY OF SAN BERNARDINO
2025
ANNUAL
COMPREHENSIVE
FINANCIAL
REPORT
FOR THE FISCAL YEAR ENDED JUNE 30,2025
OF THE CITY OF SAN BERNARDINO WATER
DEPARTMENT A COMPONENT UNIT OF TH E
CITY OF SAN BERNARDINO
CITY OF SAN BERNARDINO
MUNICIPAL WATER DEPARTMENT
A COMPONENT UNIT OF THE CITY OF SAN BERNARDINO
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
PREPARED BY:
THE FINANCE AND ACCOUNTING DIVISION
7+,63$*(,17(17,21$//</()7%/$1.
CITY OF SAN BERNARDINO
MUNICIPAL WATER DEPARTMENT
A COMPONENT UNIT OF THE CITY OF SAN BERNARDINO
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page(s)
INTRODUCTO
RY SECTION
Letter of Transmittal ..................................................................................................................................................... i Organizational Chart
................................................................................................................................................. vii List of Elected and Appointed Officials .................................................................................................................... viii GFOA Certificate of Achievement for Excellence in Financial Reporting .................................................................. ix
FINANCIAL SECTION
Independent Auditors’ Report ..................................................................................................................................... 1 Management’s Discussion and Analysis .................................................................................................................... 5 Basic Financial Statements:
Statement of Net Position .................................................................................................................................. 15 Statement of Revenues, Expenses and Changes in Net Position ..................................................................... 16 Statement of Cash Flows ................................................................................................................................... 17 Notes to the Basic Financial Statements ........................................................................................................... 19 Required Supplementary Information:
Schedule of Proportionate Share of the Net Pension Liability ........................................................................... 47 Schedule of Changes in Net OPEB Liability/(Asset) and Related Ratios .......................................................... 48 Schedules of Plan Contributions ........................................................................................................................ 50
STATISTICAL SECTION
Changes in Net Position – Combined Funds ........................................................................................................... 55 Changes in Net Position – Water Fund .................................................................................................................... 56 Changes in Net Position – Sewer Fund ................................................................................................................... 57 Changes in Net Position – Sewer Collection Fund ................................................................................................... 58 Net Position by Component – Combined ................................................................................................................. 59 Net Position by Component – Water Fund ............................................................................................................... 60 Net Position by Component – Sewer Fund .............................................................................................................. 61 Net Position by Component – Sewer Collection Fund ............................................................................................. 62 Water Fund Revenue by Type .................................................................................................................................. 63 Sewer Fund Revenue by Type ................................................................................................................................. 64 Sewer Collection Fund Revenue by Type ................................................................................................................ 65 Water Fund Expenses by Type ................................................................................................................................ 66 Sewer Fund Expenses by Type ................................................................................................................................ 67 Sewer Collection Fund Expenses by Type ............................................................................................................... 69 Water Fund Debt Service Coverage ......................................................................................................................... 71 Sewer Fund Debt Service Coverage ........................................................................................................................ 72 Ratios of Outstanding Debt by Type ......................................................................................................................... 73 Demographic Statistics ............................................................................................................................................. 77 Major Employers ....................................................................................................................................................... 78
CITY OF SAN BERNARDINO
MUNICIPAL WATER DEPARTMENT
A COMPONENT UNIT OF THE CITY OF SAN BERNARDINO
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page(s)
STATISTICAL SECTION (CONTINUED)
Authorized Positions History ..................................................................................................................................... 79 Water Rates: Minimum Monthly Charge................................................................................................................... 83 Water Rates: Commodity Charges ........................................................................................................................... 84 Water Rates – Elevation Charges per $ HCF .......................................................................................................... 85 Water Connections and Revenues by User Type .................................................................................................... 86 Top Ten Water Consumers ...................................................................................................................................... 87 Sewer Treatment Rate History ................................................................................................................................. 88 Sewer Treatment Connections and Revenue by User Type .................................................................................... 90 Top Ten Sewer Treatment Customers ..................................................................................................................... 91 Sewer Collection Rate History .................................................................................................................................. 92 Sewer Collection Connections and Revenue by User Type .................................................................................... 93 1350 South “E” Street, San Bernardino, California 92408 P.O. Box 710, 92402 Phone: (909) 384-5141 FACSIMILE NUMBERS: Administration: (909) 453-6399 Customer Service: (909) 453-6396 Finance: (909) 453-6383 Engineering: (909) 4 53-6385 Corporate Yards: (909) 453-6389 Water Reclamation Plant: (909) 453-6395 Environmental & Regulatory Compliance: (909) 453-6391 Environmental Control: (909) 453-6394
CITY OF SAN BERNARDINO
MUNICIPAL WATER DEPARTMENT
CITY OF S
AN BERNARDINO
WATER BOARD
TONI CALLICOTT
President
Commissioners
WAYNE HENDRIX
DAVID E. MLYNARSKI
RIKKE V. JOHNSON
THOMAS BRICKLEY
MIGUEL J. GUERRERO, P
.E.
General Manager
ROBIN L. OHAMA
Deputy General Manager
STEVE R. MILLER
Director of Water Utility
KEVIN T. STEWART, P.E.
Director of Water Reclamation
JENNIFER L. SHEPARDSON
Director of Environmental &
Regulatory Compliance
CYNTHIA J. MOUSER
Director of Finance
“Trusted, Quality Service since 1905”
November 25, 2025
To the Water Board Commissioners & ratepayers of the San Bernardino Municipal Water Department, Intr
oduction:
State law requires that every general-purpose government publish a complete set of audited financial statements within six months of the close of each fiscal year. This report is published to fulfill that requirement for the San Bernardino Municipal Water Department (“Department”) for the fiscal year ended June 30, 2025.
Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose.
Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.
LSL, LLP has issued an unmodified opinion on the Department’s financial statements for the year ended June 30, 2025. The independent auditor’s report is located at the front of the financial section of this report.
Management’s discussion and analysis (“MD&A”) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it.
Profile of the Department:
The San Bernardino Municipal Water Department and the Water Board of Commissioners (“Board”) were established on May 8th, 1905, by the Mayor and Common Council of the City of San Bernardino in accordance with the provisions specified in the City charter. The Board assembled for the first time on May 16th, 1905, to ensure water supply needs of the community are met by providing trusted, quality service to our customers. This service has grown through the years to include water supply, water reclamation, geothermal heating supply, sewer collection, and administrative support for the growing community.
The first water distribution system of San Bernardino included water supply for approximately six thousand citizens within a one square mile service area. Today, the Department’s service area is approximately 50 square miles and the water supply distribution network now encompasses over 45,000 service connections and i
750 miles of water mains. Although the number of connections has increased during the past one hundred years, our commitment to providing trusted, quality service remains the same.
The City of San Bernardino receives the majority of its water supply from an underground aquifer called the Bunker Hill Groundwater Basin which is part of the San Bernardino Basin. The water contained in the Bunker Hill Basin is replenished with rain and snowmelt that filters through our local San Bernardino Mountains. This local water supply ensures that San Bernardino Municipal Water Department customers receive high quality, relatively inexpensive water as compared to other communities. Many other communities in Southern California must import their water supplies from remote locations via the Colorado River and State Water Project systems which adds cost. Many water supplies imported from distant locations can be impacted by certain man-made and natural contaminants as the water is transported to the customer. Reliability of imported supplies is also impacted by drought conditions and environmental impacts.
The Department has operated the Water Reclamation Plant (WRP) since 1973. The WRP is a 33 million gallons per day (MGD) regional secondary treatment facility that provides trusted, quality wastewater treatment services for the City of San Bernardino, City of Loma Linda, San Bernardino International Airport, Patton State Hospital, and unincorporated areas of San Bernardino County. The WRP serves over 60,000 customers/connections, of which 38,000 are located within the City’s boundaries.
The Sewer Collection section is responsible for maintaining more than 450 miles of sewer mains, several thousand maintenance holes, and lift stations. The system encompasses approximately 38,000 connections and conveys over 8 billion gallons of sewage annually to the Department’s Water Reclamation Plant for treatment.
Fiscal Management:
The Board annually adopts an operating and capital budget prior to the new fiscal year. The budget authorizes and provides the basis for reporting and control of financial operations and accountability for the Department’s functions, including the Water Utility and Sewer Funds. The budget and reporting treatment applied to a fund is consistent with the accrual basis of accounting and the financial statement basis. Each year the Department adopts a balanced budget.
Local Economy:
The Department’s offices are located in the City of San Bernardino (“the City”) in San Bernardino County.
According to the California Department of Finance, San Bernardino’s population as of June 30, 2025, was 222,727. The Water Department (“Department”) has been able to maintain a positive economic outlook despite rising inflationary costs, a reduction in sewer revenue and drought regulations through the long-term financial planning. The Department is currently in the fourth year of a four-year rate increase that was approved by the Water Board in March 2022. These adopted rate increases have allowed the Department to maintain revenue stability while experiencing increased inflationary costs for goods and services. The City has received funds from the American Rescue Plan Act (ARPA) that will help stimulate economic growth in the area. The City has given the Department $3 million in ARPA funds to fund the Department’s Lead Service Lateral capital project.
The Department has also received over $5.5 million in grant funding from Federal Emergency Management Act (FEMA) and the Department of Water Resources for the Department’s Steel Reservoir Seismic Retrofits capital project and installation of AMI meters throughout the Department’s service area. Development within the City continues, which encourages economic growth within the city and creates new capital projects for the Department.
Per the Lowe Institute of Political Economy from Claremont McKenna College, in the Inland Empire, the unemployment rate for the Inland Empire increased by a large number (1.1 percentage points), from 4.8 percent to 5.9 percent in June, compared to May 2025. It is also 0.5 percentage points higher than a year ago (June 2024: 5.4 percent, June 2025: 5.9 percent). However, much of the month-to-month increase is due to regularly occurring seasonal patterns in the data. The Employment Development Department (EDD) does not seasonally adjust data for the Riverside-San Bernardino-Ontario Metropolitan Statistical Area (MSA). The Lowe Institute employ standard statistical techniques to remove the seasonal fluctuations. Removing these results in ii
a significantly better outlook: after seasonal adjustment, the Inland Empire unemployment rate stands at 5.6 percent, up 0.2 percentage points up from May 2025 (5.4 percent). Compared to a year ago, it still increased by over half a percentage point, from 5.0 percent to the current level of 5.6%. Bottom line, the alarm bells The Lowe Institute have been ringing over the last few months now sound much louder. We may be witnessing the forecasted regional downturn already. National labor market data, including the unemployment rate, are published earlier, typically on the first Friday of each month. Hence we know, by now, that the national unemployment rate for June 2025 fell by 0.1 percentage points from 4.2 percent to 4.1 percent. Changes in the unemployment rate are approximately equal to the difference between the growth rate of the labor force and the growth rate of employment. While the national news at the beginning of the month was good, it was achieved by positive employment growth coinciding with a slightly shrinking labor force. This could indicate discouraged workers dropping out of the labor force, or migrants deciding to leave the labor force. The unemployment rate is gathered from a household survey and hence does not involve employers indicating the number of jobs at their establishments.
State and regional data are made available in the middle of the month, and the EDD released the June numbers on Friday, July 18. The Lowe Institute had previously warned that the employment picture for both the state, but especially the Inland Empire, does not look very positive: employment gains from a year ago basically were the results of only three sectors generating more employment: Local Government (public education), Health, and Logistics. The remaining sectors are losing jobs. Moreover, the three pillars that hold up the building are threatened by national policies, which are about to impact all three of them to differing degrees.
The main question for the June employment report is to what extent the expected significant decline in regional employment materialized has. The answer is, not yet. After seasonal adjusting the data, employment still went up from May 2025, albeit by a relatively small number (about 250). The reason for the unemployment rate to increase was that the labor force grew by more (that is a good sign), namely by roughly 6,250. Ideally, both the labor force and employment would grow, with employment growth outpacing the labor force growth (in which case, the unemployment rate falls). Job gains from a year ago are still centered on three sectors: Health, and Local Government. Logistics (Transportation, Warehousing, and Wholesale) has stopped being a major contributor to employment growth in the Inland Empire.
Strategic planning and collaboration are essential to the long-term reliability of water supplies in the San Bernardino region. The San Bernardino Municipal Water Department has invested in efforts to secure and produce new water supply, encourage water use efficiency, and minimize water system losses. In addition to this long-standing commitment to water efficiency, SBMWD works collaboratively with water agencies in the San Bernardino Valley to preserve local water resources, ensuring adequate supply for the future. SBMWD and partnering agencies are building a more resilient portfolio of local water resources through regional groundwater management, as well as the execution of projects such as recycled water recharge, critical infrastructure and water storage, direct installation or efficient irrigation and fixtures, and water conservation education programs.
For the Department, the goal of water use efficiency remains paramount. Efficient water use is the most cost-effective and immediate way to achieve long-term conservation goals. As such, the Department is committed to sharing information, programs, and incentives to encourage and support water use efficiency for our customers.
30,000
40,000
50,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Water Production
In Acre Feet
iii
Major Initiatives:
Advanced Metering Infrastructure
The Department was awarded a $500,000 grant from the U.S. Bureau of Reclamation to start phase one of the Department’s Advanced Metering Infrastructure (AMI) project. In addition to this grant, the Department was also awarded a $2 million grant by the CA Department of Water Resources Urban and Multibenefit Drought Relief Grant Program. The first phase of the AMI project will install and connect approximately one quarter of the Department’s water meters to an advanced communications network to gather water consumption data in real time. This water use data will reduce water waste by enabling the Department to identify and notify customers of leaks and abnormally high-water use more quickly. The first phase is close to completion.
Regional Recycled Water
The Department continues to develop its recycled water project. Construction of the Tertiary Treatment System commenced in 2023 and will be completed and operational in 2025. This initial phase will produce up to
2.5 million gallons per day (MGD) for treatment plant use and irrigation. At the same, the Department is working with its regional partners to develop a regional recycled water system that involves connecting recycled water systems in the region and will provide flexibility to deliver produce recycled water where it is most needed in the San Bernardino Basin. The Department has formed a recycled water coalition with San Bernardino Valley, East Valley Water District, and City of Redlands. The coalition will work collaboratively to mitigate water quality impacts that may arise from recycled water activity.
Long Term Financial Planning:
As part of the Department’s Strategic Plan, long-term financial plans were developed for the two Department’s enterprises: Water and Sewer Treatment. These financial plans assisted the Department with a cost of service study for the two enterprises. A cost of service/rate study conducted in FY 21-22 recommended an increase to the Department’s water and sewer rates. As a result of the study, the water Board adopted a four-year rate increase for the water and sewer funds with the first adjustment effective April 1, 2022. The remaining increases are effective annually on July 1 starting July 1, 2022 through July 1, 2025. With the last year of the rate increase starting July 1, 2025, the Department will initiate a request for proposal for a new rate study aimed to be completed and in effect for FY27.
The Department’s financial plan includes the revision of the existing Reserve Policy. The Department’s current Reserve policy was revised and adopted by the Board in September 2021. ¾ Operating Reserve: This reserve is established to ensure adequate cash flow is available to meet day-to-day expenses. The target balance is 45 days of the operating expenses budgeted for each respective f
und.
¾
Rate Stabilization Reserve: This reserve is established to offset revenue risk associated with low service demands years. The minimum target balance f or each fund is twenty percent (20%) of their respective budgeted sales.
¾
Emergency Replacement Reserve: The purpose of this reserve is to minimize the impact of unforeseen capital asset and operating expenses. The target balance for each fund shall be two percent (2%) of the total recorde
d value of capital assets as of the previous fiscal year. ¾
Capital Replacement Reserve: The Capital Replacement Reserve was set up in order to provide funding support of the Departme
nt’s capital program. The basis for calculating the target balance for this reserve is a ro
lling five-year average of the Department’s Capital Improvement Program projects, excluding those with external funding. The target balance will be assessed on an annual basis as part of the budgeting process.
iv
The Department has expanded and updated the previous strategic plan. This updated Strategic Plan builds upon our past efforts and captures key priorities identified by the Water Board, staff, and stakeholders. The Strategic Plan, adopted by the Water Board on July 8, 2025, is derived from SBMWD's commitment to providing trusted quality service. The finished plan provides a clear road map for SBMWD's future development and achievements.
Debt Administration:
The Department’s outstanding debt as of June 30, 2025 consists of one Revenue Bond in the Water Utility Fund, and one Revenue Bond in the Sewer Utility Fund, as shown in the table below:
Water Fund Long-Term Debt Activity
Year of Issuance/Description Use of Proceeds
2016 California Municipal Finance Authority
Revenue Bond
Funding for facility construction, seismic retrofit
of reservoirs and other capital improvement
projects.
Sewer Fund Long-Term Debt Activity
Year of Issuance/Description Use of Proceeds
2016 California Municipal Finance Authority
Revenue Bond
Funding for primary influent flow equalization
project, facility construction, and recycled water
project.
Relevant Financial Policies:
Internal Control Structure
Department
management is responsible for the establishment and maintenance of the internal control structure that ensures that the assets of the Department are protected from loss, theft or misuse. The internal control structure also ensures that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The Department’s internal control structure is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management.
Major Initiatives and Key Values:
The activities of the Board and Department staff are driven by our key value statements as outlined below:
1. Innovation: Applying practical and effective technologies and methods to enhance service delivery and operational efficiency.
2. Community Engagement: Delivering reliable, responsive services whole fostering trust and collaboration with our diverse community.
3. Environmental Stewardship: Protecting our natural resources and proactively adapting to the future challenges.
4. Integrity: Ensuring all actions are conducted with transparency, accountability, and ethical standards.
5. Collaboration: Nurturing strong partnerships with local, regional, and state organizations to address industry challenges and achieve common goals.
Awards and Acknowledgements:
The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the Department for its annual comprehensive financial v
report for the fiscal year ended June 30, 2024. To be awarded a Certificate of Achievement, the Department must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current annual comprehensive financial report continues to meet the Certificate of Achievement program requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
Preparation of this report was accomplished by the combined efforts of Department staff. We appreciate the dedicated efforts and professionalism that these staff members contribute to the service of the Department’s customers. The contributions made by Andrea Parker, Senior Accountant, Garrett Van Leuven, Senior Accountant, Rob Medina, Accountant I, and Dustin Andolsen, Finance Manager deserve special recognition. We would also like to thank and recognize the members of the Board for their continued support in planning and implementation of the Department’s fiscal policies.
Respectfully submitted,
___________________________________ ___________________________________ Miguel J. Guerrero, P.E., General Manager Cynthia J. Mouser, Director of Finance vi
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City of San Bernardino Municipal Water Department
Mayor the City of San Bernardino
Eric Levitt
Water Board
Toni Callicott, President
Wayne Hendrix, P.E., Vice President
David E. Mlynarski, Commissioner
Rikke V. Johnson, Commissioner
Thomas Brickley, Commissioner
Administration
Miguel J. Guerrero, P.E., General Manager
Robin L. Ohama, Deputy General Manager
Steve R. Miller, Director of Water Utility
Kevin T. Stewart, P.E., Director of Water Reclamation
Cynthia J. Mouser, Director of Finance
Jennifer L. Shepardson, Director of Environmental & Regulatory Compliance Mission Statement
To meet the needs of the community by providing sustainable, high quality water supply and wastewater services in the most professional, environmentally responsible, and cost-effective manner possible.
Organization
The City of San Bernardino Municipal Water Department was formed in 1905 under the Charter of the City of San Bernardino and is governed by the Water Board who are appointed by the Mayor of the City of San Bernardino. The most recent Charter, approved by voters in November 2016, gave the Water Board “Responsibility to oversee and manage the City’s water supply, recycled water, wastewater collection and treatment functions in accordance with State Law.” The Department operated three enterprise funds: the Water Utility Enterprise Fund, the Sewer Utility Enterprise Fund and the Sewer Collection Utility Enterprise Fund. Water service encompasses the City, with the exception of the east end, which is served by East Valley Water District. Sewer treatment service encompasses all of the City of San Bernardino, the City of Loma Linda, the former Norton Air Force Base, Patton State Hospital, and portions of the City of Highland serviced by East Valley Water District. Sewer collection service is provided within the City of San Bernardino boundaries.
xiii
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Bernardino Municipal Water Department
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
ix
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LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of each major fund of the City of San Bernardino Municipal Water Department, a component unit of the City of San Bernardino, (hereafter , the Department) as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Department’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Department as of June 30, 2025, and the changes in fi nancial position, and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to f inancial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsi bilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Department and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Department’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
To the Wate
r Board
City of San Bernardino Municipal Water Department
San Bernardino, California
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance wit h generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards we:
x Exercise professional judgment and maintain pr ofessional skepticism throughout the audit. x Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures respon sive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. x Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Department’s internal control. Accordingly, no such opinion is expressed. x Evaluate the appropriateness of accounting policies us ed and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Department’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principl
es generally accepted in the United States of America require that the management’s discussion and analysis and required pension and other post-employment benefits schedules as listed on the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing st andards generally accepted in the United States of America, which consisted of inquiries of management ab out the methods of preparing the information and comparing the information for consistency with managem ent’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 be cause the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 To the Wate
r Board
City of San Bernardino Municipal Water Department
San Bernardino, California
Other Information
Management is responsibl
e for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with G
overnment Auditing Standards, we have also issued our repo rt dated October 15, 2025, on our consideration of the Department’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Department’s 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 Department’s internal c ontrol over financial reporting and compliance.
Irvine, California
October 15, 2025
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4 MANAGEMENT’S DISCUSSION AND ANALYSIS
The City of San Bernardino Municipal Water Department (Department) is a water, sewer collection and treatment utility responsible for delivering high quality, economically priced water, sewer treatment and sewer collections services to a quarter of a million customers in and around the City of San Bernardino, California. This section of the Department’s annual financial report presents management’s analysis of the Department’s financial performance during the fiscal year that ended on June 30, 2025. Please read it in conjunction with the basic financial statements which follow this section.
All amounts in the Management’s Discussion and Analysis within text areas are in thousands unless otherwise noted.
Financial Highlights:
x The Department’s overall net position increased by $28.6 million or 8.2%. x Operating revenues increased $2.7 million or 2.94% from the prior fiscal year. Water consumption was up approximately 8.0% in FY25 from FY24. Water revenues increased due to a rate increase effective July 1, 2024 along with the increased consumption. Sewer revenues decreased mainly due to East Valley Water District putting their treatment plant into service and now treat their own wastewater despite an increase effective July 1, 2024.
x Operating expenses decreased $11.3 million, 10.91% from the prior fiscal year. The most significant decreases were noted in the categories of depreciation and General, Administration and overhead.
Depreciation decreased due to one-time adjustments made to depreciation in the prior year. The Water department’s claims liabilities significantly decreased from the prior year and the offset to the annual entry is grouped in administration and overhead causing a reduction in overall expenditures. x Net income/loss before capital contributions increased by $16.7 million. x The Department’s current ratio (the ability to pay short-term obligations) was 3.9. x Cash available (the ability to cover current expenses with cash) was 470 days.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the Department’s basic financial statements.
The Department’s basic financial statements are comprised of two components: the Financial Statements and the Notes to the Basic Financial Statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Information providing citywide financial results is available in the City’s Annual Comprehensive Financial Report.
Required Financial Statements
The financial statements of the Department report information about the Department using accounting methods similar to those used by private sector companies. These statements offer short-term and long-term financial information about its activities. The Statement of Net Position (page 15) includes all of the Department’s investments in resources (assets) and the obligations to creditors (liabilities). It also provides the basis for evaluating the capital structure of the Department and assessing the liquidity and financial flexibility of the Department. All of the current year’s revenues and expenses are accounted for in the Statement of Revenues, Expenses and Changes in Net Position. (page 16) This statement measures the success of the Department’s operations over the past year and can be used to determine whether the Department has successfully recovered all its costs through its user fees and other charges, profitability, and credit worthiness. The final required financial statement is the Statement of Cash Flows (pages 17-18). The primary purpose of this statement is to provide information about the Department’s cash receipts and cash payments during the reporting period. The statement reports cash receipts, cash payments, 5 and net changes in cash resulting from operations, investing, and financing activities and provides answers to questions such as “where did cash come from, what was cash used for, and what was the change in cash balance during the reporting period?”
Financial Analysis of the Department
Our analysis of the Department begins on page 6 of the financial statements. One of the most important questions to ask about the Department’s finances is “Whether the Department, as a whole, is better off or worse off as a result of the year’s activities?” The Statement of Net Position, and the Statement of Revenues, Expenses and Changes in Net Position report information about the Department’s activities in a way that will help answer this question.
These two statements report the net position of the Department and changes in them. Measuring the change in the Department’s net position - the difference between assets and liabilities - is one way to measure financial health or financial position. Over time, increases or decreases in the Department’s net assets are indications of whether its financial health is improving or deteriorating. However, one will need to consider other non-financial factors such as changes in economic conditions, population growth, and zoning and new or changed government legislation.
Water Utility Fund
To begin our analysis, a summary of the Water Utility Fund’s Statement of Net Position is presented in Table A-1.
The table highlights, the Water Utility total net position increased 11.7% or $22.3 million in fiscal year 2025. The favorable increase in net position is primarily related to the increase in total capital assets ($34.44 million). 2025 2024 $Change % Change
Currentandnoncurrentassets 105,015$ 119,269$ (14,254)$ Ͳ12.0% Capitalassets 247,991 213,546 34,445 16.1% Totalassets 353,006 332,815 20,191 6.1% Deferredoutflowsofresources 8,756 10,266 (1,510) Ͳ14.7% Currentliabilities 18,692 16,031 2,661 16.6% Noncurrentliabilities 123,502 129,021 (5,519) Ͳ4.3% Totalliabilities 142,194 145,052 (2,858) Ͳ2.0% Deferredinflowsofresources 6,684 7,471 (787) Ͳ10.5% Netinvestmentincapitalassets 204,647 180,169 24,478 13.6% Restricted 3,388 2,414 974 40.3% Unrestricted 4,849 7,975 (3,126) 39.2% Totalnetposition 212,884$ 190,558$ 22,326$ 11.7% TABLEAͲ1
Condensed StatementofNetPositionͲWaterUtility
(amountsexpressedinthousandsofdollars)
6 Total revenu
es increased by 9.9% or $4.5 million. Capital grant revenue increased from the prior year due the FEMA grant monies and other state grants used for projects as intended. Investment income decreased in Water but increased in Sewer from the prior year but overall decreased due to poor market performance compared to the prior year. The Water Department sold a piece of land to the City of San Bernardino which resulted in a large gain on sale of asset. Water operating revenues also reflect a modest increase due to a rate increase effective July 1, 2024. Total operating expenses decreased 9.5% or $5.1 million. Significant variances were due to decreased depreciation expense as well as reduced administration and overhead. The Water departments claims liabilities significantly decreased from the prior year and the offset to the entry is grouped in Admin and overhead. 2025 2024 $Change % Change
Operatingrevenue 50,542$ 45,985$ 4,557$ 9.9% Operatingexpenses 48,868 53,997 (5,129) Ͳ9.5% TotalOperatingIncome(loss) 1,674 (8,012) 9,686 Ͳ120.9% InvestmentIncome 1,990 2,545 (555) Ͳ21.8% Noncapitalgrantfunds 9,106 5,567 3,539 63.6% Gain(loss)ondisposalofcapitalassets 2,716 85 2,631 3095.3% Othernonoperatingrevenue 769 567 202 35.6% Interestexpenseandfiscalcharges 1,728 1,784 (56) Ͳ3.1% TotalNonoperatingI ncome(Expenses) 12,853 6,980 258 3.7% Income(loss)beforecapitalcontributions 14,527 (1,032) 15,559 Ͳ1507.7% Capitalcontributions 8,408 5,130 3,278 63.9% Changeinnetposition 22,935 4,098 18,837 Ͳ459.7% NetpositionattheBeginningoftheYear 190,558 186,460 4,098 2.2% Restatement (609) Ͳ Totalnetposition 212,884$ 190,558$ 22,935$ 12.0% TABLEAͲ2
Condensed StatementofRevenues,ExpensesandChangesinNe tPositionͲWaterUtility (amountsexpressedinthousandsofdollars)
7 Total capital assets, net increased by 16.1% or $34.4 million in fiscal year 2025. The Water fund capitalized $6.7 million in various capital projects completed and placed in service during FY2025. The increase is also attributed to an increase in Construction in progress (CIP) expenditures related to Re servoir Seismic upgrades ($9.3 million), SBMWD Administration Facility ($9.2 million), the Mountain Pressure Zone Main Replacement project ($5.6 million), the Advanced Metering Infrastructure project ($3.8 million) and the Muscoy Service Line Replacement project ($3.0 million). The department Additional information on capital assets is presented in Note 3 of the Notes to the Basic Financial Statements.
Total long-term debt decreased by 2.2% or $1.1 million due to annual debt service payments. Additional information on long-term debt is presented in Note 4-6 of the Notes to Basic Financial Statements. 2025 2024 $ Change % Change
Land and easements 5,838$ 5,869$ (31)$ -0.5% Construction in progress 58,715 25,803 32,912 127.6% Wells and pumping 105,491 105,758 (267) -0.3% Distribution 187,660 185,239 2,421 1.3% Right -of-use assets - 402 (402) -100.0% Plant and facilities 6,917 6,943 (26) -0.4% Other capital assets 14,078 11,377 2,701 23.7% Total capital assets 378,699 341,391 37,308 10.9% Less: accumulated depreciation (130,708) (127,846) (2,862) 2.2% Total capital assets, net 247,991$ 213,545$ 34,446$ 16.1% TABLE A-3
Capital Assets - Water Utility
(amounts expressed in thousands of dollars)
2025 2024 $Change % Change
BondsPayable 41,075$ 42,125$ (1,050)$ Ͳ2.5% BondPremium 4,216 4,414 (198) Ͳ4.5% Leasesandsubscriptions Ͳ 12 (12) 100.0% CompensatedAbsences 2,355 2,154 * 201 9.3% TotallongͲtermdebt 47,646$ 48,705$ (1,059)$ Ͳ2.2% *RestatedduetoimplementationofGASB101
TABLEAͲ4
LongͲtermDebtͲWaterUtility
(amountsexpressedinthousandsofdollars)
8 Sewer Utility Fund
To begin our analysis, a summary of the Sewer Utility Fund’s Statement of Net Position is presented in Table B-1.
The table above highlights, the Sewer Utility net position increased 3.5% or $5.4 million in fiscal year 2025. The total net position increased as a result of current year operations. The increase in Capital Assets due to the increased activity in CIP projects for fiscal year 2025.
2025 2024 $Change % Change
Currentandnoncurrentassets 87,019$ 111,716$ (24,697)$ Ͳ22.1% Capitalassets 145,282 118,822 26,460 22.3% Totalassets 232,301 230,538 1,763 0.8% Deferredoutflowofresources 8,190 9,653 (1,463) Ͳ15.2% Currentliabilities 12,122 14,302 (2,180) Ͳ15.2% Noncurrentliabilities 62,043 64,543 (2,500) Ͳ3.9% Totalliabilities 74,165 78,845 (4,680) Ͳ5.9% Deferredinflowofresources 3,273 3,742 (469) Ͳ12.5% Netinvestmentincapitalassets 114,911 95, 673 19,238 20.1% Restricted 3,020 2,152 868 100.0% Unrestricted 45,122 59,779 (14,657) Ͳ24.5% Totalnetposition 163,053$ 157,604$ 5,449$ 3.5% TABLEBͲ1
Condensed StatementofNetPositionͲSewerUtility
(amountsexpressedinthousandsofdollars)
9 Duri
ng fiscal year 2025, total revenues for the Sewer Utility decreased 3.8% or $1.8 million, from the prior year, primarily due to East Valley Water District putting their treatment plant into service and now treat their own wastewater when we had done so in the past. There was a decrease in operating costs by 12.2% or $6.1 million.
Significant variances were due to decreased depreciation expense as well as reduced administration and overhead.
The Water departments claims liabilities significantly decreased from the prior year and the offset to the entry is grouped in administration and overhead. Investment income decreased in Water but increased in Sewer from the prior year but overall decreased due to poor market performance compared to the prior year. 2025 2024 $ Change % Change
Operating revenue 45,596$ 47,385$ (1,789)$ -3.8% Operating expenses 44,207 50,351 (6,144) -12.2%
Total operating income(loss) 1,389 (2,966) (6,144) 207.1% Investment Income 1,914 1,521 393 25.8%
Gain(loss) on disposal of capital assets 13 600 (587) -97.8% Interest expense and fiscal charges 1,136 1,175 (39) -
3.3%
Total nonoperating income(loss) 791 946 432 45.7%
Income (loss) before capital contributions 2,180 (2,020) 4,200 -207.9% Capital contributions 3,515 2,725 790 29.0%
Change in net position 5,695 705 4,990 707.8%
Net position at the Beginning of the Year 157,604 156,899 705 0.4% Restatement (246) - (246)
Total net position 163,053$ 157,604$ 5,449$ 3.5% TABLE B-2
Condens ed Statement of Revenues , Expens es and Changes in Net Pos ition - Sewer Utility (amounts expressed in thousands of dollars)
10 Total capital
assets increased by 22.3% or $26.4 million in fiscal year 2025, primarily due to increased in Capital Assets due to the increased activity in CIP projects for fiscal year 2025. More information relating to capital assets can be found in Note 3 of the Notes to the Basic Financial Statements.
During the year, the Sewer Utility’s long-term debt decreased 2.0% or $0.6 million which can be attributed to the annual debt service payments. Additional information on long-term debt is presented in Note 4-6 of the Notes to Basic Financial Statements.
2025 2024 $ Change % Change
Land and easements 17,603$ 17,603$ -$ 0 .0%
Construction in progress 50,214 31,343 18,871 60.2%
Pumping 3,949 3,958 (9) -0.2%
Buildings, plants and stores 187,004 181,029 5,975 3.3% Field and office equipment 15,428 13,510 1,918 14.2% Pipelines 28,967 27,019 1,948 7.2%
Total capital assets 303,165 274,462 28,703 10.5% Less: accumulated depreciation (157,883) (155,640) (2,243) 1.4% Total net assets 145,282$ 118,822$ 26,460$ 22.3% TABLE B-3
Capital Assets - Sewer Utility
(amounts expressed in thousands of dollars)
2025 2024 $ Change % Change
Bonds Payable 28,930 29,740 (810) -
2.7%
Bond Premium 137 1
44 (
7) -4.9%
Compensated absences 1,028 834
* 194 23.3%
Total long-term debt 30,095$ 30,718$ (623)$ -2.0% *Restated due to implementation of GASB 101
TABLE B-4
Long-term Debt - Sewer Utility
(amounts expressed in thousands of dollars)
11 Economic Factors and Next Year’s Budgets and Rates
The Service Area (Service Area) economy served by the Department continues to grow and develop. Development in the City has increased as San Bernardino is one of the remaining affordable areas in the Inland Empire. The City has also received funds from the American Recovery Act that will help stimulate economic growth in the area.
The City has appropriated for the Department, approximately $3 million from the American Recovery Act funds, to fund the Department’s Lead Service Lateral capital project. Additionally, the Department was approved for a State Revolving Funds loan from the State Water Resource Control Board in May of 2022 and a federal grant from the Bureau of Reclamation and FEMA for designated capital projects. Development within the City continues, which has resulted in several new projects for the Department.
The Department adopted a balanced budget for Fiscal Year 2024-2025. The Fiscal Year 2024-2025 budget takes into consideration rising operational expenses, inflation, and funding our capital program to address aging infrastructure. Additional details regarding the Department’s budget can be found on the Department’s website.
Questions or requests for information regarding the Adopted Budget should be directed to the Finance Department.
The Department completed a rate study and a cost-of-service study for the water and sewer treatment. As a result of the study the water Board adopted a four-year rate increase for the water and sewer funds effective April 1, 2022.
The remaining increases are effective annually starting July 1, 2022, through July 1, 2025. With the last year of the rate increase starting July 1, 2025, the Department will initiate a request for proposal for a new rate study aimed to be completed and in effect for fiscal year 2027.
Contacting the Department’s Director of Finance
This financial report is designed to provide our customers and creditors with a general overview of the Department’s finances and to demonstrate the Department’s accountability for the money it receives. If you have questions about this report or need additional financial information, please contact the Department’s finance department at (909) 453-6009.
12 %$6,&),1$1&,$/67$7(0(176
13 7+,63$*(,17(17,21$//</()7%/$1.
14 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Statement of Net Position
June 30, 2025
Total
ASSETS
Current assets:
Cash and investments 43,039,858$ 58,697,598$ 101,737,456$ Receivables:
Accounts, net 7,090,088 5,243,476 12,333,564 Accrued interest 324,990 482,529 807,519
Leases 211,681 - 211,681
Due from other entities 2,553,620 79,997 2,633,617 Inventories 1,602,680 - 1,602,680
Prepaid expenses 232,396 460,943 693,339
Total current assets 55,055,313 64,964,543 120,019,856 Noncurrent:
Leases 3,054,762 - 3,054,762
Investment in joint venture - RIX - 19,
026,271 19,026,271
Restricted assets:
Net OPEB asset 3,388,293 3,020,432 6,408,725
C
ash and investments:
Restricted for capital 2,531,867 8,017 2,539,884 I
nvestments:
Restricted for consent decree 26,172,408 - 26,172,408 Accrued interest - consent decree 124,205 - 124,205
Prepaid Insurance - consent decree 14,686,896 - 14,686,896 Capital assets:
Land and easements 5,837,963 17,603,413 23,441,376 Cons
truction in progress 58,714,981 50,213,606 108,928,587 Capit
al assets - being depreciated/amortized, net 183,439,031 77,465,002 260,904,033 Total noncurrent assets 297,950,406 167,336,741 465,287,147 Total assets 353,005,719 232,301,284 585,307,003
DEFERRED OUTFLOWS OF RESOURCES
Pension-related 6,594,668 6,262,943 12,857,611 OPEB-related 2,162,031 1,927,303 4,089,334 Total deferred outflows of resources 8,756,699 8,190,246 16,946,945
LIABILITIES
Current liabilities:
Accounts payable 8,109,250 5,420,242 13,529,492 Related parties payable 1,965,482 1,728,379 3,693,861 Accrued compensation 869,175 782,105 1,651,280
Claims payable 3,965,089 2,040,905 6,005,994 Current portion of compensated absences 1,884,180 822,738 2,706,918 Current portion of bonds, leases, and subscriptions 1,100,000 855,000 1,955,000 Accrued interest 799,222 472,717 1,271,939
Total current liabilities 18,692,398 12,122,086 30,814,484 Noncurrent liabilities:
Consumer deposits 2,449,436 - 2,449,436
Compensated absences 471,045 205,684 676,729
Unearned revenue - consent decree 40,983,509 - 40,983,509 Bonds, leases and subscriptions 44,191,281 28,212,134 72,403,415 Net pension liability 35,406,379 33,625,360 69,031,739 Total noncurrent liabilities 123,501,650 62,043,178 185,544,828 Total liabilities 142,194,048 74,165,264 216,359,312
DEFERRED INFLOWS OF RESOURCES
OPEB-related 3,672,169 3,273,527 6,945,696 Lease-related 3,011,630 - 3,011,630
Total deferred inflows of resources 6,683,799 3,273,527 9,957,326
NET POSITION
Net investment in capital assets 204,647,326 114,911,364 319,558,690 Restricted for postemployment benefits 3,388,293 3,020,432 6,408,725 Unrestricted 4,848,952 45,120,943 49,969,895 Total net position 212,884,571$ 163,052,739 $ 375,937,310 $ Water Sewer
See Notes to Financial Statements.
15 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Statement of Revenues, Expenses and Changes in Net Position For the Year Ended June 30, 2025
Interfund
Eliminations Total
OPERATING REVENUES
Sales and service charges 50,163,378$ 44,511,354 $ (684,060) $ 93,990,672$ Other operating revenues 379,135 1,084,288 - 1,463,423 Total operating revenues 50,542,513 45,595,642 (684,060) 95,454,095
OPERATING EXPENSES
Administration and customer service 11,080,475 7,905,078 (228,956) 18,756,597 Utility administration 1,714,760 668,811 (2,440) 2,381,131 Sewer collection and lift stations - 2,919,242 - 2,919,242 Plant operations 10,733,466 14,046,652 (289,530) 24,490,588 Maintenance 3,757,074 5,281,012 (144,625) 8,893,461 Environmental control - 691,159 - 691,159
Distribution 7,132,610 - - 7,132,610
Engineering and water quality 3,494,437 1,849,607 (18,509) 5,325,535 General, administration and overhead 2,228,830 6,248,285 - 8,477,115 Depreciation and amortization 8,726,491 4,596,972 - 13,323,463 Total operating expenses 48,868,143 44,206,818 (684,060) 92,390,901 Operating income (loss) 1,674,370 1,388,824 - 3,063,194
NONOPERATING REVENUES (EXPENSES)
Investment income 1,990,514 1,914,250 - 3,904,764 Rental income 353,483 - - 353,483
Noncapital grant funds 9,106,142 - - 9,106,142 Interest expense and fiscal charges (1,728,231) (1,136,264) - (2,864,495) Gain (loss) on disposal of capital assets 2,716,329 (54,801) - 2,661,528 Other 414,711 67,489 - 482,200
Total nonoperating revenues (expenses) 12,852,948 790,674 - 13,643,622 Income (loss) before capital contributions 14,527,318 2,179,498 - 16,706,816
CAPITAL CONTRIBUTIONS
Acquistion fees 1,725,331 - - 1,725,331
Capacity fees 1,753,520 1,601,407 - 3,354,927 Capital contributions 4,930,104 1,913,672 - 6,843,776 Total capital contributions 8,408,955 3,515,079 - 11,924,034 Change in net position 22,936,273 5,694,577 - 28,630,850 Net position-beginning 190,557,355 157,604,293 - 348,161,648 Restatement - change in accounting principle (609,057) (246,131) - (855,188) Net position-beginning, as restated 189,948,298 157,358,162 - 347,306,460 Net position-ending 212,884,571$ 163,052,739$ -$ 375,937,310$ Water Sewer
See Notes to Financial Statements.
16 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Statement of Cash Flows
For the Year Ended June 30, 2025
Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 49,044,226$ 46,204,410 $ 95,248,636$ Payments to suppliers and service providers (25,349,127) (29,933,806) (55,282,933) Payments to employees for salaries and benefits (15,965,112) (13,248,375) (29,213,487) Net cash provided by (used for)
operating activities 7,729,987 3,022,229 10,752,216
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Consent Decree Insurance Drawdowns 1,693,655 - 1,693,655 Grants and contributions 9,917,043 - 9,917,043
Net cash provided by (used for)
noncapital financing activities 11,610,698 - 11,610,698
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital contributions 3,478,851 1,601,407 5,080,258 Acquisition and construction of capital assets (38,274,229) (29,206,233) (67,480,462) Principal paid on capital debt (1,061,994) (810,000) (1,871,994) Interest paid on capital debt (1,949,163) (1,159,542) (3,108,705) Proceeds from sales of assets 2,650,000 - 2,650,000 Net cash provided by (used for)
capital and related financing activities (35,156,535) (29,574,368) (64,730,903)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 1,544,555 3,154,762 4,699,317 Lease proceeds 232,194 - 232,194
Purchase of investments (1,723,756) - (1,723,756) Net cash provided by (used for)
investing activities 52,993 3,154,762 3,207,755 Net increase (decrease) in
cash and cash equivalents (15,762,857) (23,397,377) (39,160,234) Cash and cash equivalents-beginning 61,334,582 82,102,992 143,437,574 Cash and cash equivalents-ending 45,571,725 $ 58,705,615 $ 104,277,340 $ Water Sewer
See Notes to Financial Statements.
17 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Statement of Cash Flows
For the Year Ended June 30, 2025
Total Water Sewer
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss) 1,674,370$ 1,388,824 $ 3,063,194$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense 8,726,491 4,596,972 13,323,463 Residual nonoperating revenue and expenses 414,711 - 414,711 (Increase) decrease in accounts receivable (845,507) 608,768 (236,739) (Increase) decrease in inventories (62,802) - (62,802) (Increase) decrease in prepaid expenses 167,909 148,335 316,244 (Increase) decrease in net OPEB asset (1,957,873) (1,745,306) (3,703,179) Increase (decrease) in accounts payable 1,519,681 (3,746,539) (2,226,858) Increase (decrease) in accrued liabilities 186,261 137,572 323,833 Increase (decrease) in deposits payable (1,067,491) 109,559 (957,932) Increase (decrease) in compensated absences 810,334 410,745 1,221,079 Increase (decrease) in claims and judgments (2,021,440) 937,281 (1,084,159) Increase (decrease) in net pension liability 185,343 176,018 361,361 Total adjustments 6,055,617 1,633,405 7,689,022 Net cash provided by (used for)
operating activities 7,729,987$ 3,022,229$ 10,752,216$
SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,
AND INVESTING ACTIVITIES
Unrealized gain/(loss) on fair value of investments 392,014 $ 1,019,113 $ 1,411,127 $ Unrealized gain/(loss) on investments in joint ventures - 1,472,861 1,472,861 Contributions of capital assets 4,930,104 1,913,672 6,843,776 Amortization on bond discount/(premium) (197,638) (6,403) (204,041) Retainage payable related to capital assets 571,594 1,303,524 1,875,118 See Notes to Financial Statements.
18 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Organization and Operations of the Reporting Entity
The San Bernardino Municipal Water Department (Department) is governed under the Charter of the City of San Bernardino (City). A Water Board appointed by the Mayor and approved by City Council, has Charter defined powers, with full authority for administration of the water utility and delegated authority for the sewer treatment utility. The Department has served the community since 1905.
B. Basis of Accounting and Measurement Focus
The Department reports its activities as enterprise funds, which are used to account for operations that are financed and operated in a manner similar to a private business enterprise, where the intent of the Department is that the costs (including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Revenues and expenses are recognized on an accrual basis.
Revenues are recognized in the accounting period in which they are earned, and expenses are recognized in the period incurred, regardless of when the related cash flow takes place.
Operating revenues, such as charges for services (water sales, sewer services and water services) result from exchange transactions associated with the principal activity of the Department. Exchange transactions are those in which each party receives and gives up equal values. Nonoperating revenues, such as property taxes and investment income, result from nonexchange transactions or ancillary activities in which the Department gives (receives) value without directly receiving (giving) equal value in exchange.
When both restricted and unrestricted resources are available for use, the Department uses restricted resources and then unrestricted resources.
The major funds of the Department are described below:
x Water Utility Fund – The Water Utility Enterprise Fund (Water Utility) is used to account for the operations of the Department’s water system and related revenues.
x Sewer Utility Fund – The Sewer Utility Enterprise Fund (Sewer Utility) is used to account for the operations of the City’s wastewater treatment system and collection system and related revenues.
Administrative and engineering services are provided by the Water Utility to the Sewer.
C. Financial Reporting
The Depart ment’s basic financial statements are presented in conformance with the provisions of Governmental Accounting Standards Board (GASB) Statement No. 34, “Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments” (GASB No. 34). This statement established revised financial reporting requirements for state and local governments throughout the United States for the purpose of enhancing the understandability and usefulness of financial reports.
GASB Statement No. 34 and its related GASB pronouncements provide for a revised view of financial information and restructure the format of financial information provided prior to its adoption. A statement of net position replaces the balance sheet and reports assets, liabilities, and the difference between them as net position, not equity. A statement of revenues, expenses and changes in net position replaces both the income statement and the statement of changes in retained earnings and contributed capital. GASB Statement No. 34 also requires that the statement of cash flows be prepared using the direct method. Under the direct method, cash flows from operating activities are presented by major categories.
19 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities and Net Position
1. Use of Estimates
The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported changes in net position during the reporting period. Actual results could differ from those estimates.
2. Cash and Investments
For the purpose of the statement of cash flows, cash and cash equivalents include highly liquid investments (including restricted assets) with a maturity of three months or less when purchased.
Investments are reported in the accompanying balance sheet at fair value, except for certain certificates of deposit and investment contracts that are reported at cost as they are not transferable and have terms that are not affected by changes in market interest rates.
Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value and any gains or losses realized upon the liquidation of investments.
3. Fair Value Measurements
Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows:
Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:
x Quoted prices for similar assets or liabilities in active markets. x Quoted prices for identical or similar assets or liabilities in markets that are inactive. x Inputs other than quoted prices that are observable for the asset or liability. x Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect the Department’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). These unobservable inputs are developed based on the best information available in the circumstances and may include the Department’s own data.
4. Accounts Receivable
Customer or trade receivables are shown net of an allowance for uncollectible accounts based on historical and management estimates. Transactions between funds that are representative of lending or borrowing arrangements outstanding at the end of the fiscal year are referred to as “interfund receivables / payables” or “advances to/from” other funds. All interfund transactions are eliminated for financial reporting. 20 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
5. Inventory
Materials and supplies inventory consist primarily of water meters, pipes and pipefittings for construction and repair to the Department’s water transmission and distribution system and items necessary for maintenance at the sewer treatment facilities. Inventory is valued at cost using a weighted average method. Inventory items are charged to expense at the time that individual items are withdrawn from inventory or consumed.
Water inventory is stated at its purchase cost using the first in, first out method. Inventory is recorded when purchased and expensed at the time the inventory is consumed.
6. Prepaid Expense and Deposit
Certain payments to vendors reflect costs or deposits applicable to future accounting periods and are recorded as prepaid items in the basic financial statements.
7. Capital Assets and Intangible Right-to-Use Assets
Capital assets acquired or constructed are capitalized at historic cost. Department policy has set the capitalization threshold for reporting capital assets at $25,000 and a life expectancy of at least 3 years. Overhead is capitalized at the rate of 28.9% of labor and benefits, 10% of material and supplies and 2% of significant contracts.
Intangible right-to-use assets are defined by the Department as assets with an estimated useful life in excess of 3 years and with an initial, individual value of $25,000 or more. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives of the assets as follows:
Source of supply plant 8 to 50 years
Disposal plant and interceptor lines 35 to 50 years
Other facilities (shops, leasehold & yards) 5 to 25 years Tools, office equipment & communications 4 to 20 years
Computer equipment 3 to 5 years
Automotive and fleet equipment 3 to 15 years
Intangible right-to-use assets Shorter of the useful life of the underlying asset or the term
of the arrangement
8. Compensated Absences
Department policy is to permit employees to accumulate a limited amount of earned vacation and sick leave. Various negotiation groups have different sell-back and cash out options. Additionally, cash out options upon retirement or death of the employee vary based on the negotiation group. Employees’ vacation and sick leave benefits are recognized as a liability of the Department.
9. Restricted Assets and Amounts Payable from Restricted Assets
Amounts shown as restricted assets have been restricted by bond indentures or are to be used for specified purposes based on contract provisions, such as bonded debt service. Certain liabilities which are currently payable have been classified as current liabilities payable from restricted assets since assets have been restricted for their payment.
21 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
10. Pensions
For purpo
ses of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the Department.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
GASB 68 requires that the reported results must pertain to liability and asset information within certain defined time limits. For this report, the following periods are used:
11. Other Post-Employment Benefits (OPEB)
For pu
rposes of measuring the net OPEB asset, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB income/expense, information about the fiduciary net position of the Department’s plan (OPEB Plan), the assets of which are held by US Bank in an irrevocable trust, and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
Generally accepted accounting principles require that the reported results must pertain to liability and fiduciary net position information within certain defined time limits. For this report, the following timeframes are used:
12. Deferred Outflows/Inflows
In addition to
assets, the Statement of Net Position will sometimes report a separate section of deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents consumption of net assets that applies to a future period and so will not be recognized as an outflow of resources (expenses/expenditures) until then. The Department has two items that qualify for reporting in this category: the deferred outflows related to pensions and OPEB.
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, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and will not be recognized as inflow of resources (revenue) until that time. The Department has three items that qualify for reporting in this category, of which two relate to deferred inflows related to pensions and OPEB. Lastly, leases related items for the amount of the lease receivable plus any lease payments related to future periods, less any lease incentives paid to, or on behalf of, the lessee at or before the commencement of the lease term.
13. Interfund
Eliminations
The interfund eliminations column represents entries made to eliminate interfund income and expenditure transactions between the water utility fund and the sewer utility fund for the purposes of consolidated financial statements.
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
Valuation Date June 30, 2024
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
22 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
14. Net Position
The financial statements utilize a net position presentation. Net position is categorized as follows:
x Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation/amortization and reduced by any debt outstanding against the acquisition, construction, or improvement of those assets.
x Restricted Net Position – This component of net position consists of constraints placed on net position use through external constraints imposed by creditors, grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation.
x Unrestricted Net Position – This component of net position consists of net position that does not meet the definition of restricted or net investment in capital assets.
15. Capital Contributions
Contributions in aid of construction represent cash and utility plant additions contributed to the Department by property owners or developers desiring services that require capital expenditures or capacity commitment. In accordance with Governmental Accounting Standards Board Statement No. 33, the capital contributions are recorded on the Statement of Revenues, Expenses and Changes in Net position.
16. Budgetary Policies
The Department adopts an annual budget for planning, control, and evaluation purposes. Budgetary control and evaluation are affected by comparisons of actual revenues and expenses with planned revenues and expenses for the period. Encumbrance accounting is not used to account for commitments related to outstanding contracts for construction and services.
17. Leases
Lessee: The Department is a lessee for a noncancellable lease of a building. The Department recognizes a lease liability and an intangible right -to-use lease asset (lease asset) in the statement of net position. The Department recognizes lease liabilities with an initial, individual value of $25,000 or more.
At the commencement of a lease, the Department initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs.
Subsequently, the lease asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to leases include how the Department determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
x The Department uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the Department uses its estimated incremental borrowing rate as the discount rate for leases.
x The lease term includes the non-cancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the Department is reasonably certain to exercise.
23 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Department monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease assets and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.
Lessor: The Department is a lessor for various noncancellable leases of land. The Department recognizes a lease receivable and a deferred inflow of resources in the statement of net position.
At the commencement of a lease, the Department initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date.
Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the Department determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. x The Department uses its estimated incremental borrowing rate as the discount rate for leases. x The lease term includes the non-cancellable period of the lease. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee.
The Department monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
18. Subscription-Based Information Technology Arrangements The Department is a subscriber for a noncancellable subscription of information technology services. The Department recognizes subscription liability and an intangible right-to-use subscription asset (subscription asset) in the government -wide financial statements. The Department recognizes subscription liabilities with an initial, individual value of $25,000 or more.
At the commencement of a subscription, the Department initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to subscriptions include how the Department determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments. x The Department uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provid ed, the Department uses its estima ted incremental borrowing rate as the discount rate for subscriptions.
x The subscription term includes the noncancellable period of the subscription. Subscription payments included in the measurement of the subscription liability are composed of fixed payments that the Department is reasonably certain to exercise.
24 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The Department monitors changes in circumstances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.
Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term debt on the statement of net position.
NOTE 2: CASH AND INVESTMENTS
Cash and investments are reported in the accompanying statement of net position as follows:
Cash and investments at June 30, 2025, consisted of the following:
A. Investments Authorized by the California Government Code and the Department’s Investment Policy
The table below identifies the investment types that are authorized by the Department and Consent Decree (see note 12) in accordance with the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. Due to its long-term nature, the Consent Decree has been explicitly exempted from maximum maturity requirements of the California Government Code, which limits maturity of most investments to five years. All other aspects of the Consent Decree investment policy are consistent with the City’s investment policy.
Investment Type* Department
Consent
Decree
Maximum %
of Portfolio
Maximum %
of Portfolio
US treasury 5 years 5 years None None
US agency 5 years 5 years None None
Bankers acceptances 180 days 180 days 40% 40%
Commercial paper 270 days 270 days 25% 25%
Negotiable CDs 5 years 5 years 30% 30%
Medium-term notes 5 years 5 years 30% 30%
Money market mutual funds N/A N/A 20% 20%
Mortgage pass through 5 years 5 years 20% 20%
Local Agency Investment Fund N/A N/A $40,000,000 $40,000,000 Guaranteed investment N/A N/A None None
Maximum Maturity
Water Utility Sewer Utility Total
Cash and investments 43,039,858 $ 58,697,598 $ 101,737,456 $ Restricted inv estments
Restricted for Consent Degree 26,172,408 - 26,172,408 Proceeds from bond issuances 2,531,867 8,017 2,539,884 Total cash and inv estments 71,744,133 58,705,615 130,449,748 Water Utility Sewer Utility Total
Cash and investments 7,000 $ - $ 7,000$ Deposits with financial institutions 16,546,275 3,415,773 19,962,048 Investments 26,486,583 55,281,825 81,768,408
Restricted inv estments 28,704,275 8,017 28,712,292 Total cash and investments 71,744,133 58,705,615 130,449,748 25 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
B. Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. Investments authorized for funds held by bond trustee include, U.S. Treasury Obligations, U.S. Government Sponsored Enterprise Securities, the California Local Agency Investment Fund, Guaranteed Investment Contracts, Commercial Paper, Local Agency Bonds, Banker’s Acceptance and Money Market Mutual Funds. There are no limitations on the maximum amount that can be invested in one issuer, maximum percentage allowed or the maximum maturity of an investment, except for the maturity of Banker’s Acceptance which are limited to one year.
C. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code requires that a financial institution secure deposit made by a state or local governmental unit by pledging securities in an undivided collateral pool held by a depository regulated under state law.
The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the Department’s deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
For investment identified herein as held by bond trustee, the bond trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government.
D. Investment in State Investment Pool
The Department is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the Department’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Department’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF is not rated by a nationally recognized statistical rating organization, but as stated previously, it is regulated by the California Government Code, and is therefore exempt from rating requirements.
E. Interest Rate Risk
Interest rate risk is the possibility that fluctuations in market interest rates will adversely affect the fair value of an investment. The longer the maturity of an investment, the greater the sensitivity of its fair value will be to changes in market interest rates. One method that the Department uses to manage its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio matures or comes close to maturity evenly over time as necessary to provide requirements for cash flow and liquidity needed for operations.
26 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Information about the sensitivity of the fair values of the Department’s investments to market interest rate fluctuation
s is provided by the following table that shows the distribution of the Department’s investments by maturity date:
F. Credit Risk
Credit risk is the possibility that the issuer of an investment will not fulfill its obligation to the holder of the investment.
This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the Department’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type.
Less than 12 13-24 25-60 More than
Investment Type months months months 60 months Total
U.S. Agency Securities 2,949,943$ 2,031,822$ -$ -$ 4,981,765$ U.S. Treasuries 971,111 5,444,194 21,538,387 - 27,953,692
M
edium Term Corporate Notes 198,442 2,311,337 4,647,259 - 7,157,038
N
on - U.S. Government and Supranational Bonds 1,445,532 - 1,284,926 -
2,730,458
A
sset Backed Securities 13,431 159,999 400,678 - 574,108
Municipal Bonds - -
470,169 -
470,169
Money Market Funds 105,051 - -
-
105,051
Local Agency Investment Fund 37,796,127 - -
-
37,796,127
Consent Decree:
U.S. Treasuries -
270,102 12,480,299 -
12,750,401
U
.S. Agency Asset Backed Securities 133,224 921,685 3,033,161 136,312 4,224,382 U
.S. Agency Collateralized Mortgage Obligations - - -
40,290 40,290
U.S. Agency Securities 693,070 - -
-
693,070
Corporate Notes 1,090,240 687,549 2,705,430 - 4,483,219
C
ertificates of Deposit 702,479 - -
-
702,479
Bank Note - -
357,269 -
357,269
Asset Backed Securities -
1,104,625 1
,680,046 -
2,784,671
M
oney Market Funds 136,627 - - - 136,627 Investments with Fiscal Agent:
Money Market Funds 2,539,884 - -
-
2,539,884
Total Investments 48,775,161$ 12,931,313$ 48,597,624$ 176,602$ 110,480,700$ Maturities
27 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
G. Fair Value Measurement
The
Department categorizes its fair value investments within the fair value hierarchy established by generally accepted accounting principles. The Department has the following recurring fair value measurements as of June 30, 2025:
Minimum
Investment Type Rating Rating Total
U.S. Agency Securities None AA+ 4,981,765 $
U.S. Treasuries Exempt Exempt 27,953,692
Medium Term Corporate Notes AA- AA+ 7,157,038
Non - U.S. Government and Supranational Bonds AA AAA 2,730,458 Asset Backed Securities AA- AAA 574,108
Municipal Bonds AA- AA 470,169
Money Market Funds None AAA 105,051
Local Agency Investment Fund Not Rated Not Rated 37,796,127 Consent Decree:
U.S. Treasuries No Limit Exempt 12,750,401
U.S. Agency Asset Backed Securities No Limit AA+ 4,224,382 U.S. Agency Collateralized Mortgage Obligations AA AA+ 40,290 U.S. Agency Securities No Limit AA+ 693,070
Corporate Notes A+ AAA 4,483,219
Certificates of Deposit A AA- 702,479
Bank Note A A+ 357,269
Asset Backed Securities AA AAA 2,784,671
Money Market Funds AA+ AA+ 136,627
Investments with Fiscal Agent:
Money Market Funds AA+ AA+ 2,539,884
Total Investments 110,480,700$
Investment Type Level 1 Level 2 Total
U.S. Agency Securities -$
4,981,765$ 4,981,765$
U.S. Treasuries -
27,953,692 2
7,953,692
Medium Term Corporate Notes -
7,157,038 7,157,038
Non - U.S. Government and Supranational Bonds -
2,730,458 2,730,458
Asset Backed Securities - 5
74,108 574,108
Consent Decree:
U.S. Treasuries 12,750,401 -
12,750,401
U
.S. Agency Asset Backed Securities -
4,224,382 4,224,382
U.S. Agency Collateralized Mortgage Obligations - 4
0,290 4
0,290
U
.S. Agency Securities - 6
93,070 693,070
Corporate Notes -
4,483,219 4,483,219
Certificates of Deposit - 7
02,479 702,479
Bank Note - 3
57,269 357,269
Asset Backed Securities -
2,784,671 2,784,671
Subtotal - investments subject to fair vale 12,750,401$ 56,682,441$ 69,432,842 Investments not sjubject to fair value 41,047,858
110,480,700$
28 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 3: CAPITAL ASSETS
A. Water Utility Fund
Capital a
sset activity for the water utility for the fiscal year ended June 30, 2025:
Balance Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated or amortized:
Land and easements 5,869,462$ -$ 31,499$ -$ 5,837,963 $ Construction-in-progress 25,803,315 39,630,235 - (6,718,569) 58, 714,981
Total capital assets, not being depreciated or amortized: 31,672,777 39,630,235 31,499 (6,718,569) 64,552,944 Capital assets, being depreciated or amortized:
Water rights, wells, and pumping 105,757,409 239,772 (620,137) 114,104 105,491,148 Distribution system 185,239,166 1,471,111 (4,156,846) 5,107,101 187,660,532 Buildings, plants, and stores 6,942,613 - (25,235) - 6,917,378
Field and office equipment 11,377,306 1,863,215 (659,126) 1 ,497,364 14,078,759
Lease assets
Buildings 155,243 - (155,243) -
-
Subscription assets
Software 246,706 - (246,706) -
-
Total capital assets, being depreciated or amortized: 309,718,443 3,574,098 (5,863,293) 6,718,569 314,147,817 Less: accumulated depreciation and amortization:
Water rights, wells, and pumping (54,105,286) (3,042,150) 620,100 - (56,527,336) Distribution system (62,864,969) (4,650,897) 4,156,846 - (63,359,020) Buildings, plants, and stores (2,323,382) (171,315) 25,235 - (2,469,462) Field and office equipment (8,212,717) (799,377) 659,126 - (8,352,968) Lease assets
Buildings (143,302) (11,941) 155,243 - - Subscription assets
Software (195,895) (50,811) 246,706 - - Total accumulated depreciation and amortization: (127,845,551) (8,726,491) 5,863,256 - (130,708,786) Total capital assets, being depreciated or amortized, net 181,872,892 (5,152,393) (37) 6,718,569 183,
439,031
Total capital assets 213,545,669$ 34,477,842$ 31,462$ -$ 247,991,975 $ 29 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 3: CAPITAL ASSETS (CONTINUED)
B. Sewer Utility Fund
Capital asset activity for the sewer utility for the fiscal year ended June 30, 2025:
NOTE 4: LONG-TERM LIABILITIES
Changes in long-term liabilities for the year ended June 30, 2025, are as follows:
Balance Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated or amortized:
Land and easements 17,603,413$ -$ -$ -$ 17,603,413$ Construction-in-progress 31,343,003 29,859,487 - (10,988,884) 50,213,606 Total capital assets, not being depreciated or amortized: 48,946,416 29,859,487 - (10,988,884) 67,817,019 Capital assets, being depreciated or amortized:
Pumping 3,958,057 - (9,073) - 3,948,984 Piplines 27,018,595 - - 1,948,847 28,967,442 Buildings, plants, and stores 181,029,083 242,090 (1,428,669) 7,161,265 187,003,769 Field and office equipment 13,510,298 1,018,328 (979,007) 1,878,772 15,428,391 Total capital assets, being depreciated or amortized: 225,516,033 1,260,418 (2,416,749) 10,988,884 235,348,586 Less: accumulated depreciation and amortization:
Pumping (2,910,765) (54,964) 9,073 - (2,956,656) Piplines (10,840,617) (545,205) - - (11,385,822) Buildings, plants, and stores (131,948,890) (3,189,212) 1,440,110 - (133,697,992) Field and office equipment (9,973,351) (807,591) 937,828 - (9,843,114) Total accumulated depreciation and amortization: (155,673,623) (4,596,972) 2,387,011 - (157,883,584) Total capital assets, being depreciated or amortized, net 69,842,410 (3,336,554) (29,738) 10,988,884 77,465,002 Total capital assets 118,788,826$ 26,522,933$ (29,738)$ -$ 145,282,021$ Balance Balance Long-term
July 1, 2024 Additions Deletions June 30, 2025 Current Portion Portion Water Utility
Bonds payable
2016 Water Revenue Bond 42,125,000$ -$ 1,050,000$ 41,075,000$ 1,100,000$ 39,975,000$ Premium 4,413,919 - 197,638 4,216,281 - 4,216,281 Total bonds payable 46,538,919 - 1,247,638 45,291,281 1,100,000 44,191,281 Leases 11,994 - 11,994 - - - Total Water Utility 46,650,913$ -$ 1,259,632$ 45,291,281$ 1,100,000$ 44,191,281$ Sewer Utility
Bonds payable
2016 Sewer Revenue Bond 29,740,000$ -$ 810,000$ 28,930,000$ 855,000$ 28,075,000$ Premium 143,537 - 6,403 137,134 - 137,134 Total Sewer Utility 29,883,537$ -$ 816,403$ 29,067,134$ 855,000$ 28,212,134$ 30 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 4: LONG-TERM LIABILITIES (CONTINUED)
A.
2016 Water Revenue Bonds
On No
vember 3, 2016, the Water Utility issued $48,225,000 Water Revenue Bonds to finance the acquisition and construction of certain water system capital improvements and to refund outstanding obligations. The Water Revenue Bonds have interest rates ranging from 3% to 5% with maturities through August 2046. The bonds are secured by revenues pledged for the payment of debt service . In addition, a provision that in the event of default, the bond trustee may take whatever action, at law or in equity, as may appear necessary or desirable to collect the payments of the debt.
Debt service requirements on the 2016 Water Revenue Bond are as follows:
The Water Utility Fund is required to maintain net revenues adequate to cover 110% of annual debt service.
Net Revenues means the Revenues for the Fiscal Year less Operation and Maintenance Costs for such Fiscal Year. Debt service coverage for the Water Utility Fund for the year ended June 30, 2025, was as follows:
B.
2016 Sewer Revenue Bonds
On Dece
mber 8, 2016, the Sewer Utility issued $34,445,000 of Sewer Treatment Revenue Bonds to finance the acquisition and construction of additional capital improvements to the sewer utility. The Sewer Treatment Revenue Bonds have interest rates ranging from 3% to 5% with maturities through August 2046. The bonds are secured by revenues pledged for the payment of debt service. In addition, a provision that in the event of default, the bond trustee may take whatever action, at law or in equity, as may appear necessary or desirable to collect the payments of the debt.
Year Ending
June 30 Principal Interest Total
2026 1,100,000$ 1,890,638 $ 2,990,638 $
2027 1,160,000 1,834,138 2,994,138
2028 1,215,000 1,774,763 2,989,763
2029 1,280,000 1,712,388 2,992,388
2030 1,345,000 1,646,763 2,991,763
2031-2035 7,600,000 7,358,081 14,958,081 2036-2040 9,505,000 5,451,500 14,956,500 2041-2045 12,155,000 2,797,475 14,952,475 2046-2047 5,715,000 267,635 5,982,635 Totals 41,075,000$ 24,733,381$ 65,808,381$
Gross revenue 50,542,513$
Operating expenses (48,868,143)
Add back: depreciation/amortization expense 8,726,491
Non-operating income 14,581,179
Less: gain on disposal (2,716,329)
Net revenues 22,265,711$
Annual debt serv ice 2,994,388$
Actual coverage ratio 7.44
31 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 4: LONG-TERM LIABILITIES (CONTINUED)
Debt service requirements on the 2016 Sewer Revenue Bond are as follows:
The Sewer Utility Fund is required to maintain net revenues adequate to cover 110% of annual debt service. Gross revenue is defined as Operating Revenue combined with non-operating revenue. Debt service coverage for the Sewer Utility Fund for the year ended June 30, 2025, was as follows:
NOTE 5: LEASES AND SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS A.
Leases Receivable and Deferred Inflows of Resources
The Depa
rtment leases land to various companies for installation of cellular towers and fiberoptic communications.
The terms range from 27 months to 268 months as of the contract commencement date. The Department also leases land to Little League International to operate a sports complex. The term is 231 months as of the contract commencement date. Some leases have extension options ranging from 6 months to 20 years. as of June 30, 2025, the total combined value of the lease receivable is $3,266,443, the total combined value of the short-term lease receivable is $211,681, and the combined value of the deferred inflow of resources is $3,011,630.
Year Ending
June 30 Principal Interest Total
2026 855,000$ 1,113,150 $ 1,968,150 $
2027 895,000 1,069,400 1,964,400
2028 935,000 1,033,000 1,968,000
2029 965,000 1,003,897 1,968,897
2030 995,000 972,028 1,967,028
2031-2035 5,590,000 4,290,113 9,880,113 2036-2040 6,685,000 3,096,600 9,781,600 2041-2045 8,230,000 1,605,400 9,835,400 2046-2047 3,780,000 152,500 3,932,500 Totals 28,930,000$ 14,336,088$ 43,266,088$
Gross revenue 45,595,642$
Operating expenses (44,206,818)
Add back: depreciation/amortization expense 4,596,972
Non-operating income 1,926,938
Less: gain on disposal 54,801
Net revenues 7,967,535$
Annual debt service 1,964,775$
Actual coverage ratio 4.06
32 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 5: LEASES AND SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (CONTINUED)
The principal and interest payments that are expected to maturity are as follows:
NOTE 6: COMPENSATED ABSENCES
Compensated absences represent the amount of the accumulated vacation, which is expected to be liquidated with future resources. There is no fixed payment schedule for unpaid compensated absences; see Note 1 for additional information.
During the year ended June 30, 2025 the Department implemented GASB 101 Compensated Absences . The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The implementation of the GASB resulted in a prior period adjustment that is presented in note 13.
NOTE 7: PENSION PLAN
The Department is considered to be part of the City of San Bernardino PERS pension plan, therefore all related information included in this note refers to the City as a whole unless specifically indicating otherwise. All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan, an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are established by State statute and Local Government resolution.
CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Additional disclosures and required supplementary information regarding the City’s plan can be found in the City’s audited financial statements.
Principal Interest Total
20 26 211,681$ 49,755$ 270,413$
2027 231,942 46,412 278,353
2028 243,636 42,896 286,532
2029 253,024 39,202 292,226
2030 265,554 35,349 300,903
2031 - 2035 1,276,248 114,148 1,390,396
2036 - 2040 579,457 42,011 621,468
2041 - 2044 204,901 5,372 201,299
Totals 3,266,443$ 375,145$ 3,641,590$
Year Ending
June 30
Balance
July 1, 2024, Balance Long-term
as restated Net Change June 30, 2025 Current Portion Portion Water Utility Fund 2,153,948$ 201,277$ 2,355,225$ 1,884,180$ 471,045$ Sewer Utility Fund 863,808 164,614 1,028,422 822,738 205,684 Total 3,017,756$ 365,891$ 3,383,647$ 2,706,918$ 676,729$ 33 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 7: PENSION PLAN (CONTINUED)
A. Bene
fits Provided
CalPERS pro
vides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. The Plans’ provisions and benefits in effect at the measurement date, are summarized as follows:
B. Employe
es Covered
As of the Jun
e 30, 2024 valuation date, the following employees were covered by the benefit terms of the Plan:
C. Con
tribution Description
Section 20
814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended.
Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Plan contributions for the year equaled $8,879,997.
Hire date
Prior to
October 3, 2011
On or after
October 4, 2011
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2% @ 55 2% @ 62
Benefit v esting schedule 5 years serv ice 5 years serv ice 5 years serv ice Benefit payments monthly for life monthly for life monthly for life Retirement age 50-55 50-55 52-67
Monthly benefits, as a % of eligible
compensation 2.0% to 2.7% 2.0% to 2.7% 1.0% to 2.5%
Required employee contribution rates 11.68% 11.68% 11.68% Required employer contribution rates 7.75% 7.75% 7.75%
Miscellaneous
City-Wide Department
Inactive employees or beneficiaries currently receiving benefits 1,577 170 Inactiv e employees entitled to but not yet receiv ing benefits 1,163 35 Active employees 718 273
Total 3,458 478
34 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 7: PENSION PLAN (CONTINUED)
D.
Actuarial Methods and Assumptions used to determine Total Pension Liability The Ju
ne 30, 2023 valuation was rolled forward to determine the June 30, 2024 total pension liability, based on the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal Cost Method
Actuarial Assumptions
Discount rate 6.90%
Inflation 2.30%
Salary increa
ses Varies by entry age and services
Mortality rate table Derived using CalPERS’ membership data for all funds Post-retirement benefit increase The lesser of contract COLA or 2.30% until purchasing power protection allowance floor on purchasing power applies,
2.30% thereafter
The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions . Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.
E.
Long-Term Expected Rate of Return
The long
-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:
Asset Class
Assumed
Asset
Allocation
Real Return1, 2
Global Equity Cap-weighted 30.00% 4.54%
Global Equity Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
(1) A
n expected price inflation of 2.30% used for this period. (2) F
igures are based on the 2021-22 Asset Liability Management study.
35 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 7: PENSION PLAN (CONTINUED)
F. Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
G. Amortization of Deferred Outflows and Deferred Inflows of Resources
Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Net difference between projected 5-year straight-line amortization and actual earnings on pension
plan investments
All other amounts Straight-line amortization over the expected average remaining service lifetime (EARSL) of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
The EARSL for the plan for the measurement period ending June 30, 2024, is 2.3 years, which was obtained by dividing the total service years of 8,078 (the sum of remaining service lifetimes of the active employees) by 3,458 (the total number of participants: active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
H. Changes in Net Pension Liability
The following table shows the Department’s proportionate share of the net pension liability of the City’s plan over the measurement period:
The net pension liability of the plan is measured as of June 30, 2024, and the total pension liability for the plan used to calculate the net pension liability was determined by an actuarial valuation of June 30, 2023 rolled forward to June 30, 2024, using standard update procedures. The proportion of the net pension lability was based on a projection of the Department’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The Department’s proportionate share of the net pension lability for the plan as of June 30, 2025 and 2024 was 36 percent.
Net Pension
Total Pension Plan Fiduciary Liability
Liability (a) Net Position (b) (c) = (a) - (b)
Balance at 6/30/2024 (Measurement Date 6/30/2023) 242,663,139$ 173,634,400$ 69,028,739$ Balance at 6/30/2025 (Measurement Date 6/30/2024) 250,626,749 181,595,010 69,031,739 Net changes during 2023-2024 7,963,610$ 7,960,610$ 3,000$ Increase (Decrease)
36 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 7: PENSION PLAN (CONTINUED)
I.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The followi
ng presents the net pension liability of the Plan as of the Measurement Date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate: J.
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions For the fiscal
year ended June 30, 2025, the Department recognized pension expense of $9,241,358.
As of June 30, 2025, the Department reports other amounts for the Plan as deferred outflow and deferred inflow of resources related to pensions as follows:
The $8,879,997 reported as deferred outflows of resources related to employer contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026.
That and other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Discount Rate Current Discount Discount Rate
-1% (5.90%) Rate (6.90%) +1% (7.90%)
Plan's Net Pension Liability
-Department Allocation
(36%) 42,714,794$ 69,031,739$ 100,941,497$
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to
the measurement date 8,879,997 $ - $
Differences between expected and actual
experience 1,329,214 -
N
et difference between projected and actual
earnings on pension plan investments 2,648,400 - T
otal 12,857,611$ -$
Deferred Outflows/
Year Ended (Deferred Inflows)
June 30, of Resources
2026 832,572 $
2027 4,811,288
2028 (729,913)
2029 (936,333)
Total 3,977,614$
37 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 7: PENSION PLAN (CONTINUED)
K.
Pension Plan Fiduciary Net Position
The plan fiduciary net po
sition disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and OPEB expense included as assets. These amounts are excluded for rate setting purp oses in the funding actuarial valuation. In addition, differences may result from early Annual Comprehensive Financial Report closing and final reconciled reserves.
NOTE 8: OTHER POST-EMPLOYMENT BENEFITS (OPEB)
A. Plan Description
The Depa
rtment provides health benefits to all qualifying retirees and their spouses in accordance with Memorandums of Understanding under various labor agreements. The other post-employment benefits plan is a single-employer plan administered by the Department.
B. Employe
es Covered
Employees are eligible for
retiree health benefits if they retire from the Department on or after age 50 with at least 10, 12, or 15 years of service, depending on bargaining unit, and are eligible for a PERS pension. As of the June 30, 2023 valuation date, the following current and former employees were covered by the benefit terms under the OPEB Plan:
C. Con
tributions
The contri
bution requirements of plan members and the Department are established and may be amended by the Board. The required contribution is based on projected pay-as-you-go financing requirements, with an additional amount to prefund benefits as may be determined annually by the Board. The Department has established an irrevocable trust to which pre-funding contributions are made. For the fiscal year ended June 30, 2025, the Department’s contributions were $1,948,530, which include the implicit subsidy of $668,652.
D. Net
OPEB Liability/(Asset)
The Departm
ent’s net OPEB liability/(asset) was measured as of June 30, 2024, and the total OPEB liability used to calculate the net OPEB liability/(asset) was determined by an actuarial valuation dated June 30, 2024, based on the following actuarial methods and assumptions:
Actuarial Cost Method: Entry Age Normal
Discount Rate 6.75%
Inflation 2.50%
Mortality Based on assumptions for Public Agency Miscellaneous members published in the 2021 CalPERS Experience Study. These tables include generational mortality improvement using 80% of scale MP-2020.
Healthcare Trend Rate 8.6% for not Medicare eligible and 6.3% for Medicare eligible for FY 2025, gradually decreasing over several decades to an ultimate rate of
3.9% in FY 2076 and later years.
38 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 8: OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED) The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Asset Class
Target
Allocation
Expected Real Rate
of Return
Fixed income 40% 1.47%
Global Equity 60% 4.82%
Assumed long-term rate of inflation 2.75%
Expected long-term net rate of return 6.25%
Total 1
00%
E. Discou
nt Rate
The discount rate used to measure the total OPEB li
ability was 6.25 percent. The projection of cash flows used to determine the discount rate assumed that the Department’s contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
F.
Changes in the Net OPEB Liability/(Asset)
The changes
in the net OPEB liability/(asset) are as follows:
Net OPEB
Total OPEB Plan Fiduciary Liability (Asset)
Liability (a) Net Position (b) (c )
= (a) - (b)
Balance at 6/30/2024 (Measurement Date 6/30/2023) 34,351,738$ 38,917,823 $ (4,566,085) $ Changes for the year
Service cost 833,949 - 833,949
I
nterest 2,140,288 - 2,140,288
D
ifferences between expected and actual experience 1,788,888 - 1,788,888 E
mployer contributions 635,216 1,882,172 (1,246,956) Net inv estment income - 5,369,928
(5,369,928)
Benefit payments (1,882,172) (1,882,172)
-
Administrative expense - (11,119) 11,119
Net changes 3,516,169 5,358,809 (1,842,640)
Balance at 6/30/2025 (Measurement Date 6/30/2024) 37,867,907$ 44,276,632 $ (6,408,725) $ Increase (Decrease)
39 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 8: OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED) G.
Sensitivity of the Net OPEB Liability/(Asset) to Changes in the Discount Rate The followi
ng presents the net OPEB liability/(asset) of the Department if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2024:
H.
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The followi
ng presents the net OPEB liability of the Department if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2024:
I.
Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses
related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time.
Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expenses.
The recognition period differs depending on the source of the gain or loss. The net difference between projected and actual earnings on OPEB plan investments are amortized over 5 years, while all other deferred outflows and inflows are amortized over the average expected remaining service life of plan participants.
J.
OPEB Income and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal
year ended June 30, 2025, the Department recognized OPEB income of $1,656,107 As of fiscal year ended June 30, 2025, the Department reported deferred outflows of resources related to OPEB from the following sources:
Discount Rate Current Discount Discount Rate
-1% (5.75%) Rate (6.75%) +1% (7.75%)
Net OPEB Liability/(Asset) (1,536,252)$ (6,408,725)$ (10,461,526)$ 1% Decrease Current Rate 1% Increase
Net OPEB Liability/(Asset) (10,747,169)$ (6,408,725)$ (1,091,470)$ Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to
the measurement date 1,948,530$ -$
Differences between expected and actual
experience 1,593,446 3,751,103
Changes in assumptions 547,358 2,001,789
Net difference between projected and actual
earnings on OPEB plan investments -
1,192,804
T
otal 4,089,334$ 6,945,696$
40 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 8: OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED) The $1,948,530 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability for the subsequent fiscal year. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:
NOTE 9: JOINT VENTURES
A.
Colton/San Bernardino Regional Tertiary Treatment and Water Reclamation Authority On Augu
st 2, 1994, the City of San Bernardino, through the Department formed a joint powers authority with the City of Colton to construct, operate, use, and maintain tertiary wastewater treatment, disposal, and water reclamations systems, including the Regional Rapid Infiltration and Extraction Facility (RIX). This authority is governed by a separate board consisting of four members: two appointed by the City of San Bernardino through the Department’s BOWC and two appointed by the City Council of the City of Colton. Construction of RIX was administered by the Santa Ana Watershed Project Authority and was completed during 1996. Administration and operation were turned over at that time. The cities of San Bernardino and Colton each have a measurable equity interest in the net position of RIX in proportion to its contributions, which are based on an 80% / 20% split, respectively. Substantially all of the assets of RIX are in the form of capital assets. Annual revenues (in the form of contributions from the two member cities) are equal to annual expenses. The Department's equity interest in this joint venture has been reported as an investment in joint venture in the accompanying statement of net position. Below are the most currently available condensed audited financial statements of RIX as of June 30, 2025. The RIX complete financial statements may be obtained at City of San Bernardino Municipal Water Department at: 1350 South E. Street, San Bernardino, California 92418.
Deferred Outflows/
Year Ended (Deferred Inflows)
June 30, of Resources
2026 (2,222,425)$
2027 (1,035,361)
2028 (1,345,213)
2029 (961,801)
2030 345,224
Thereafter 414,684
Total (4,804,892)$
Assets 25,433,492$
Liabilities 1,548,216
Net position 23,885,276$
Revenues 5,761,193$
Expenses 7,520,875
Change in net position (1,759,682)
Net position-beginning 25,675,132
Restatement -
change in accounting
principal (30,174)
Net position-beginning,
as restated 25,644,958
Net position-ending 23,885,276$
41 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 9: JOINT VENTURES (CONTINUED)
B.
West End Water Development, Treatment and Conservation Joint Powers Authority On Augu
st 15, 1990, the City of San Bernardino joined the West End Water Development, Treatment and Conservation Joint Powers Authority (WEJPA) as a financing vehicle for construction of water facilities. A three-member board consisting of one representative from each agency’s governing body governs the WEJPA.
This joint venture was formed to provide a financing vehicle for the three member agencies. This joint venture is currently inactive.
NOTE 10: COMMITMENTS AND CONTINGENCIES
A. Risk
Management
Risk ma
nagement activities are recorded in all utility funds. Significant losses are covered by insurance for all major events except workers’ compensation, for which the Department retains risk of loss in conjunction with the City of San Bernardino’s risk management program for workers compensation. Settlement amounts have not exceeded insurance coverage for the current year or the prior three years. Insurance coverage has been increased over the past several years.
The Department records an estimated liability for workers’ compensation. Claims liabilities are based on estimates of the ultimate cost of reported claims and an estimate for claims incurred but not reported based upon historical experience. Workers’ compensation claims liability is not discounted.
The following are the changes in approximate aggregate liabilities for the years ended June 30, 2023 and June 30, 2025. During the past three fiscal (claims) years, the Department had no settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in fiscal year 2024.
B. Litigation
In the ordina
ry course of operations, the Department is subject to claims and litigation from outside parties. After consultation with legal counsel, the Department believes the ultimate outcome of such matters, if any, will not materially affect its financial condition.
Claims Liabilities Water Utility Sewer Utility Total
Balance, June 30, 2023 7,051,451$ 1,304,226$ 8,355,677$ Claims and changes in estimates (1,064,922) (200,602) (1,265,524) Balance, June 30, 2024 5,986,529 1,103,624 7,090,153 Claims and changes in estimates (2,021,440) 937,281 (1,084,159) Balance, June 30, 2025 3,965,089$ 2,040,905$ 6,005,994$ 42 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 10: COMMITMENTS AND CONTINGENCIES (CONTINUED)
C. Cons truction Commitments
The following schedule summarizes the major contractual commitments as of June 30, 2025:
NOTE 11: FEDERAL AND STATE GRANTS
Grant funds received by the Department are subject to audit by the grantor agencies. Such an audit could lead to requ
ests for reimbursements to the grantor agencies for expenditures disallowed under the terms of the grant. The management of the Department believes that such disallowances, if any, would not be significant. The Department produces a Single Audit that details the use of grant and Consent Decree funds (see note 12 for information on the Consent Decree).
NOTE 12: CONSENT DECREE
In 1996, the City of San Bernardino filed a complaint against the United States of America, Department of the Army to recover d
amages, response costs and other available remedies relating to contamination alleged to have originated at a World War II army installation known as Camp Ono. In March 2005, the United States District Court, Central Division entered judgment, in the form of a consent decree, in the matter of City of San Bernardino v. United States of America. The Consent Decree settles the City’s and the State’s claims arising from the groundwater contamination allegedly caused by the Army. The Consent Decree contains a number of provisions obligating the City (through the Department) to operate and maintain the Newmark Groundwater Superfund Site (Site). The Site consists of two operable units, the Newmark Operable Unit, and the Muscoy Operable Unit. The Newmark Operable Unit was declared operational and functional in 1998. The Muscoy Operable unit was declared operational and functional in 2007.
The Consent Decree provided for a payment of $69 million from the Army to the City for performance of the work outlined in th
e Consent Decree. Upon acceptance of the Consent Decree, the Department received title to all facilities constructed by the United States Environmental Protection Agency (EPA) of the Site and agreed to operate and maintain the groundwater extraction and treatment system for a period of 50 years. The $69 million payment consisted of $59 million for operations and maintenance and $10 million for the construction of certain capital facilities that would be required in the future; the funds are subject to strict limitations, contained in the Consent Decree, as to how the money may be spent.
Pursuant to the Consent Decree, $10 million, including interest earned, has been set aside to be used only for (i) fun
ding construction of treatment and directly related transmission systems that expand the Departme nt’s cap
acity to deliver potable water and (ii) funding work performed by the Department to complete construction of the Muscoy Operable Unit extraction system. These capital facility funds may not be used for costs incurred to operate, maintain, repair, or
retrofit components of the site extraction of treatment systems constructed by EPA.
CIP Project Name/Description CIP Project #
PO/Contract
Amount
Expenditures
to date
Remaining
Commitments
SBMWD WATER FACILITIES RELOCATION PHASE I PROJECT 420241790 24,644,242 20,943,500 3,700,742 TERTIARY TREATMENT SYSTEM PROJECT 420231723 14,475,363 13,992,231 483,132 EAST INFLUENT SIPHON-PHASES I AND II PROJECT 420231822 12,487,990 12,054,636 433,355 SYSTEMWIDE 2 PIPELINE REPLACEMENT 4202418462 11,600,977 1,647,330 9,953,647 VERDEMONT 2300 PZ EAST WATER FACILITIES PROJECT 420231811 10,627,336 6,883,120 3,744,216 AMI IMPLEMENTATION PROGRAM PHS 1 420241835 3,332,468 1,178,316 2,154,152 2021/2022 CONSULTANT CM AND INSPECTION SVCS 420221761 2,154,843 1,357,993 796,850 CM and Inspection Services for Verdemont 2300 PZ 420241795 1,437,311 728,744 708,567 GPA AGREEMENT WITH ITRON, INC FOR AMI PROJECT 420231792 1,317,743 642,775 674,968 INTERACTIVE O&M MANUAL PROJECT 420231783 1,250,000 1,065,086 184,914 ENG DSGN MULTIPLE CIP WATER PIPELINE REPLACEMENTS 420231777 1,074,638 877,101 197,537 Digester B Replacement 420201728 1,042,254 418,519 623,736 DESIGN OF TERTIARY TREATMENT SYSTEM 420181686 998,896 475,473 523,423 ENG SVS FOR MTN ZONE PUMP ST AND TRNSMSN MN RPLC 420241801 451,107 299,354 151,753 Verdemont East 2300 PZ Water System Design Updates 420181691 415,950 181,008 234,942 MOUNTAIN PRESSURE ZONE MAIN REPLACEMENTS PHASE II 420221645 311054 131699 179,355 Eng Design Svc for 58th & 59th St Area Pipeline 420251848 196576 34040.6 162,535 43 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: CONSENT DECREE (CONTINUED)
In March 2006, the Department entered into a Guaranteed Investment Contract with AIG Match Funding Corporation. The Department invested $16,482,039 of excess Consent Decree funds into an interest-bearing Escrow Fund investment with an interest rate of 4.95% per annum. These funds were invested to pay costs associated with the water facilities defined in the Consent Decree for the years 2035-2056. An additional $50 million was used to purchase a blended insurance policy to provide a financial vehicle that provides cost gap coverage for the first 30 years of expenses.
The terms of the Guaranteed Investment Contract only provided the Department with the position of a secured creditor with respect to an AIG bankruptcy. As concerns arose regarding AIG’s financial credibility, in October 2009, the Department negotiated and accepted a “payout” in the amount of $18,661,876 which represented the principal and accrued interest as of that date. These funds are currently invested in a diversified portfolio managed by PFM Asset Management and are presented in more detail in Note 3.
NOTE 13: PRIOR PERIOD ADJUSTEMENT
During the current year, the Department implemented GASB Statement No. 101, Compensated Absences. In addition to the value of unused vacation time owed to employees upon separation of employment, the Department now recognizes an estimated amount of sick leave earned as of year-end that will be used by employees as time off in future years as part of the liability for compensated absences. The effects of the change in accounting principle are summarized below in the “Adjustment - GASB 101 Implementation” column in the table below.
NOTE 14: SUBSEQUENT EVENTS
The Department evaluated subsequent events for recognition and disclosure through October 15, 2025, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2025, that required recognition or disclosure in these financial statements.
Net Position
balance at Net Position
June 30, 2024 Adjustment balance at
as previously GASB 101 June 30, 2024
reported Implementation as reported
Water Utility 190,557,355$ (609,057) $ 189,948,298$ Sewer Utility 157,604,293 (246,131) 157,358,162 Total 348,161,648 (855,188) 347,306,460
44 5(48,5('6833/(0(17$5<,1)250$7,21
45 7+,63$*(,17(17,21$//</()7%/$1.
46 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Schedule of Proportationate Share of Net Pension Liability As of June 30, for the Last Ten Fiscal Years
Proportionate Share Plan's Fiduciary
Proportion of the Proportionate of the Net Pension Net Position as a Reporting Date 1 Net Pension Share of Net Liability as a % of % of the Total as of June 30, Liability Pensi on Liability Covered Payroll Covered Payroll Pension Liability 2025 36% 69,031,739$ 24,086,933$ 287% 72% 2024 36% 72,510,649 22,022,839 329% 70% 2023 36% 70,141,831 20,821,422 337% 70% 2022 36% 40,743,630 20,103,974 203% 82% 2021 36% 64,101,577 18,770,894 341% 71% 2020 36% 60,531,689 17,169,126 353% 72% 2019 36% 56,856,346 15,357,635 370% 72% 2018 36% 58,595,075 14,876,739 394% 71% 2017 36% 53,652,216 14,177,779 378% 72% 2016 36% 44,917,863 14,087,004 319% 76% Notes to Schedule of Proportionate Share of the Net Pension Liability:
1 The proportions and proportionate share of the net pension liab ility are measured as of one year behind the reporting date. Refer to notes to basic financial statements.
Benefit Changes : None
Changes of Assumptions : None
47 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Schedule of Changes in Net OPEB Liability (Asset) and Related Ratios As of June 30, for the Last Ten Fiscal Years 1
2025 2024 2023 2022
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021
TOTAL OPEB LIABILITY
Service cost 833,949$ 809,659 $ 984,915 $ 956,228$ Interest on total pension liability 2,140,288 2,066,543 2,336,141 2,240,570 Changes of benefit terms - - - -
Changes
of assumptions 635,216 - (2,619,432) -
Di
fference between expected and actual experience 1,788,888 71,864 (3,119,394) - Benefi
t payments, including refunds of employee
contributions (1,882,172) (1,702,700) (1,738,412) (1,654,270) Net change in total OPEB liability 3,516,169 1,245,366 (4,156,182) 1,542,528 Total OPEB liability-beginning 34,351,738 33,106,372 37,262,554 35,720,026 Total OPEB liability-ending (a) 37,867,907 34,351,738 33,106,372 37,262,554
PLAN FIDUCIARY NET POSITION
Contributions-employer 1,882,172 2,331,720 1,738,412 2,737,270 Net investment income 5,369,928 2,970,846 (4,469,586) 7,886,756 Benefit payments, including refunds of employee
contributions (1,882,172) (1,702,700) (1,738,412) (1,654,270) Administrative expense (11,119) (10,161) (11,068) (10,052) Net change in fiduciary net position 5,358,809 3,589,705 (4,480,654) 8,959,704 Plan fiduciary net position-beginning 38,917,823 35,328,118 39,808,772 30,849,068 Plan fiduciary net position-ending (b) 44,276,632 38,917,823 35,328,118 39,808,772 Net OPEB liability/(asset) (a) - (b) (6,408,725) $ (4,566,085) $ (2,221,746) $ (2,546,218) $ Plan fiduciary net position as a percentage of the
total OPEB liability 117% 113% 107% 107%
Covered-employee payroll 26,706,880$ 28,172,331 $ 25,597,944 $ 21,203,035$ Plan net OPEB liability/(asset) as a percentage of
covered-employee payroll -24% -16% -9% -12%
Notes to Schedule of Changes in the Net OPEB Liability and Related Ratios:
Benefit Changes : None
Changes of Assumptions : None
1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only eight years are shown. 48 2021 2020 2019 2018
6/30/2020 6/30/2019 6/30/2018 6/30/2017
1,352,161$ 1,312,778 $ 1,067,080 $ 1,036,000$ 2,651,878 2,512,269 2,449,681 2,322,000 - - (640,849) -
(1,784,735) - (1,065,369) -
(6,747,960) - 523,834 -
(1,658,421) (1,602,932) (1,554,389) (1,118,000) (6,187,077) 2,222,115 779,988 2,240,000 41,907,103 39,684,988 38,905,000 36,665,000 35,720,026 41,907,103 39,684,988 38,905,000 2,602,421 2,615,932 2,673,389 2,602,000 1,564,423 2,036,956 1,848,262 2,204,000 (1,658,421) (1,602,932) (1,554,389) (1,118,000) (8,657) (8,061) (7,855) (7,000)
2,499,766 3,041,895 2,959,407 3,681,000 28,349,302 25,307,407 22,348,000 18,667,000 30,849,068 28,349,302 25,307,407 22,348,000 4,870,958$ 13,557,801 $ 14,377,581 $ 16,557,000 $ 86% 68% 64% 57%
19,691,462$ 17,981,957 $ 16,768,495 $ 19,132,000$ 25% 75% 86% 87%
49 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Schedules of Plan Contributions
As of June 30, for the Last Ten Fiscal Years 1
Covered/ Contribution as a
Fiscal Year Actuarially Actual Contribution Covered- % of Covered/ Ending Determined Employer Deficiency Employee Covered Employee June 30, Contribution Contributions (Excess) Payroll Payroll 2025 8,879,997$ 8,879,997$ - 26,742,138$ 33%
2024 7,744,386 7,744,386 - 24,086,933 32%
2023 7,304,613 7,304,613 - 22,022,839 33%
2022 6,656,656 6,656,656 - 20,821,422 32%
2021 6,492,199 6,492,199 - 20,103,974 32%
2020 5,814,288 5,814,288 - 18,770,894 31%
2019 5,251,737 5,251,737 - 17,169,126 31%
2018 4,467,847 4,467,847 - 15,357,635 29%
2017 3,886,888 3,886,888 - 14,876,739 26%
2016 3,607,950 3,607,950 - 14,177,779 25%
2025 925,317$ 1,948,530$ (1,023,213) 30,934,538 $ 6% 2024 898,426 1,783,630 (885,204) 26,706,880 7%
2023 1,559,000 2,327,743 (768,743) 28,172,331 8%
2022 1,572,000 1,738,412 (166,412) 25,597,944 7%
2021 1,652,000 2,737,270 (1,085,270) 21,203,035 13%
2020 2,728,000 2,602,421 125,579 19,691,462 13%
2019 2,760,000 2,615,932 144,068 17,981,957 15%
2018 2,592,000 2,673,000 (81,000) 16,768,495 16%
Notes to Schedule of Plan Contributions:
Valuation Date: June 30, 2023 (pension plan); June 30, 2024 (OPEB plan) Actuarial Cost Method: Entry Age Actuarial Cost Method
Asset Valuation Method: Fair Value of Assets
Inflation: 2.3% (pension plan); 2.5% (OPEB plan)
Salary Increases: Varies by entry age and service
Payroll Growth: 2.8% (pension plan)
Investment Rate of Return: 6.8% (pension plan); 6.25% (OPEB plan) Retirement Age: Based on 2021 CalPERS Experience Study, available at CalPERS website (pension) Mortality: 2021CalPERS Experience Study (pension); 2021 CalPERS Experience Study (OPEB) Mortality Improvement (OPEB): 80% of Scale MP-2020
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2023-24 were derived from the following:
Medical Trend (OPEB):8.6% for Non-Medicare and 6.3% for Medi care decreasing to an ultimate rate of 3.9% in 2076 and later years.
1 Fiscal year 2018 was the first year of GASB Statement No. 75 im plementation; therefore only eight years for the Other Post- Employment Benefits Plan are shown.
Other Post-Employment Benefits Plan
Pension Plan
50 67$7,67,&$/6(&7,21
51 7+,63$*(,17(17,21$//</()7%/$1.
52 FINANCIAL TRENDS
These schedules contain trend informaton to help the
reader understand how the Department's financial performance and well-being have changed over time.
53 7+,63$*(,17(17,21$//</()7%/$1.
54 City of San Bernardino Municipal Water Department
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Total
Operating
Expense
Operating
Income
Total Non-
Operating
Income
(Expense)
Total
Contributed
Capital
Changes in
Net Position
6/30/2016 55,376,650 53,529,824 1,846,826 2,059,111 4,271,325 8,177,262 6/30/2017 * 64,488,587 61,895,872 2,592,715 8,431,207 21,995,016 33,018,938 6/30/2018 76,620,620 68,734,958 7,885,662 (1,872,712) 4,854,784 10,867,734 6/30/2019 77,094,723 66,921,125 10,173,598 (7,553,171) 10,121,344 12,741,771 6/30/2020 78,184,698 70,778,987 7,405,711 748,213 4,604,699 12,758,623 6/30/2021 80,831,467 77,247,428 3,584,039 (1,980,043) 6,605,556 8,209,552 6/30/2022 83,517,341 72,109,935 11,407,406 (2,315,279) 8,071,944 17,164,071 6/30/2023 89,113,376 87,785,516 1,327,860 1,397,918 8,613,085 11,338,863 6/30/2024 92,725,810 103,703,223 (10,977,413) 7,923,929 7,855,349 4,801,865 6/30/2025 95,454,095 92,390,901 3,063,194 13,643,622 11,924,034 28,630,850 Source: Department's annual reports
*Fiscal Years 2014-2016 contain only the Sewer Treatment and Water Utility Funds. The Sewer Collections Fund was transferred to the Department on May 1, 2017.
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
THOUSANDS
Changes in Net Position- Combined Funds
Changes in Net Position
55 City of San Bernardino Municipal Water Department
Water Fund
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Total
Operating
Expense
Operating
Income
Total Non-
Operating
Income
(Expense)
Total
Contributed
Capital
Changes in
Net Position
6/30/2016 30,001,871 34,834,362 (4,832,491) 2,283,230 2,812,192 262,931 6/30/2017 33,358,907 37,074,670 (3,715,763) (546,280) 2,194,093 (2,067,950) 6/30/2018 38,280,016 34,446,105 3,833,911 1,198,161 3,323,031 8,355,103 6/30/2019 39,099,960 33,995,037 5,104,923 1,829,448 2,737,031 9,671,402 6/30/2020 40,267,376 38,626,151 1,641,225 1,655,628 2,002,637 5,299,490 6/30/2021 42,758,192 42,480,855 277,337 791,527 3,861,010 4,929,874 6/30/2022 43,150,124 37,626,046 5,524,078 483,961 4,718,864 10,726,903 6/30/2023 44,091,833 46,710,892 (2,619,059) 1,380,979 5,976,186 4,738,106 6/30/2024 45,985,090 53,996,580 (8,011,490) 6,977,920 5,130,185 4,096,615 6/30/2025 50,542,513 48,868,143 1,674,370 12,852,948 8,408,955 22,936,273 Source: Department's annual reports
(3,000)
(1,000)
1,000
3,000
5,000
7,000
9,000
11,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
THOUSANDS
Changes in Net Position-Water Fund
Changes in Net Position
56 City of San Bernardino Municipal Water Department
Sewer Fund
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Total
Operating
Expense
Operating
Income
Total Non-
Operating
Income
(Expense)
Total
Contributed
Capital
Changes in
Net Position
6/30/2016 25,410,740 18,731,423 6,679,317 (224,119) 1,459,133 7,914,331 6/30/2017 28,612,019 24,139,878 4,472,141 (3,624,658) 1,355,494 2,202,977 6/30/2018 30,733,453 22,697,491 8,035,962 (3,275,704) 1,280,280 6,040,538 6/30/2019 30,546,181 24,866,681 5,679,500 (9,967,309) 7,092,785 2,804,976 6/30/2020 30,397,092 24,648,411 5,748,681 (1,537,179) 2,257,330 6,468,832 6/30/2021 30,361,116 26,986,385 3,374,731 (2,782,481) 2,502,263 3,094,513 6/30/2022 34,171,160 26,794,390 7,376,770 (2,288,006) 2,294,541 7,383,305 6/30/2023 * 45,544,260 41,597,341 3,946,919 16,939 2,636,899 6,600,757 6/30/2024 * 47,385,433 50,351,356 (2,965,923) 946,009 2,725,164 705,250 6/30/2025 * 45,595,642 44,206,818 1,388,824 790,674 3,515,079 5,694,577 Source: Department's annual reports
* The FY 2023 budget ha s combined the Sewer Treat ment Fund and the Sewer Collection Fund into one fund. Now called the Sewer Fund.
(2,000)
-
2,000
4,000
6,000
8,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
THOUSANDS
Changes in Net Position-Sewer Fund
Changes in Net Position
57 City of San Bernardino Municipal Water Department
Sewer Collection Fund
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Total
Operating
Expense
Operating
Income
Total Non-
Operating
Income
(Expense)
Total
Contributed
Capital
Changes in
Net Position
6/30/2016 n/a n/a n/a n/a n/a n/a
6/30/2017 * 2,891,203 1,054,866 1,836,337 12,602,145 18,445,429 32,883,911 6/30/2018 7,682,946 11,667,157 (3,984,211) 204,831 251,473 (3,527,907) 6/30/2019 7,562,097 8,172,922 (610,825) 584,690 291,528 265,393 6/30/2020 7,666,309 7,650,504 15,805 629,764 344,732 990,301 6/30/2021 7,794,418 7,862,447 (68,029) 10,911 242,283 185,165 6/30/2022 6,394,623 7,888,065 (1,493,442) (511,234) 1,058,539 (946,137) 6/30/2023 ** - - - - - -
6/30/2024 - - - - - -
6/30/2025 - - - - - -
** The FY 2023 budget has combined the Sewer Treatment Fund and the Sewer Collection Fund into one fund. Now called the Sewer Fund.
Source: Department's annual reports
* The Sewer Collection Utility was transferred to the Water Department on May 1, 2017 so p rior year data is unavailable.
(5,000)
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
THOUSANDS
Changes in Net Position-Sewer Collection Fund
Changes in Net Position
58 City of San Bernardino Municipal Water Department
Net Position by Component
Last Ten Fiscal Years
Fiscal Year
Ended
Net Investment in
Capital Assets
Restricted Net
Position
Unrestricted
Net Position
Total Net
Position
6/30/2016 235,670,073 7,814,086 7,890,390 251,374,549 -
6/30/2017 * 250,399,481 7,944,758 26,049,248 284,393,487 6/30/2018 248,653,963 8,363,037 23,912,311 280,929,311 6/30/2019 259,671,498 - 33,999,894 293,671,392 6/30/2020 255,270,720 - 51,158,985 306,429,705 6/30/2021 253,288,732 - 61,350,525 314,639,257 6/30/2022 250,324,366 - 81,696,554 332,020,920 6/30/2023 251,609,753 2,221,746 89,528,284 343,359,783 6/30/2024 275,842,317 4,566,085 67,753,246 348,161,648 6/30/2025 319,558,690 6,408,725 49,969,895 375,937,310 Source: Department's annual reports
* Fiscal Years 2014-2016 contain only Sewer Treatment and Water Utility Funds. The Sewer Collections Fund was transferred to the Department on May 1, 2017. -
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
THOUSANDS
NET POSITION BY COMPONENT
COMBINED (IN 1000S)
Net Investment in Capital Assets Restricted Net Position Unrestricted Net Position 59 City of San Bernardino Municipal Water Department
Net Position by Component - Water Fund
Last Ten Fiscal Years
Fiscal Year
Ended
Net Investment in
Capital Assets
Restricted Net
Position
Unrestricted Net
Position
Total Net
Position
6/30/2016 169,730,998 n/a (17,657,766) 152,073,232 6/30/2017 169,569,746 n/a (19,564,464) 150,005,282 6/30/2018 171,794,031 n/a (20,699,066) 151,094,965 6/30/2019 177,158,535 n/a (16,391,858) 160,766,677 6/30/2020 168,992,121 n/a (2,926,264) 166,065,857 6/30/2021 168,553,917 n/a 2,441,814 170,995,731 6/30/2022 168,172,810 n/a 13,549,824 181,722,634 6/30/2023 172,417,321 1,152,463 12,890,956 186,460,740 6/30/2024 180,168,996 2,414,089 7,974,270 190,557,355 6/30/2025 204,647,326 3,388,293 4,848,952 212,884,571 Source: Department's annual reports
(50,000)
-
50,000
100,000
150,000
200,000
250,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
THOUSANDS
NET POSITION BY COMPONENT:
WATER FUND (IN 1000S)
Net Investment in Capital Assets Restricted Net Position Unrestricted Net Position 60 City of San Bernardino Municipal Water Department
Net Position by Component - Sewer Fund
Last Ten Fiscal Years
Fiscal Year
Ended
Net Investment in
Capital Assets
Restricted Net
Position
Unrestricted
Net Position
Total Net
Position
6/30/2016 65,939,075 7,814,086 25,548,156 99,301,317 6/30/2017 62,633,783 7,944,758 30,925,753 101,504,294 6/30/2018 59,011,109 8,363,037 33,041,181 100,415,327 6/30/2019 63,243,033 n/a 40,040,285 103,283,318 6/30/2020 66,906,874 n/a 42,845,276 109,752,150 6/30/2021 64,650,540 n/a 48,196,123 112,846,663 6/30/2022 60,853,472 n/a 59,251,320 120,104,792 6/30/2023 * 79,192,432 1,069,283 76,637,328 156,899,043 6/30/2024 95,673,321 2,151,996 59,778,976 157,604,293 6/30/2025 114,911,364 3,020,432 45,120,943 163,052,739 Source: Department's annual reports
* Th e FY 2023 budget has combined the Sewer Treatment Fun d and the Sewer Collection Fund into one fund. Now called the Sewer Fund. -
50,000
100,000
150,000
200,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
THOUSANDS
NET POSITION BY COMPONENT:
SEWER FUND (IN 1000S)
Net Investment in Capital Assets Restricted Net Position Unrestricted Net Position 61 City of San Bernardino Municipal Water Department
Net Position by Component - Sewer Collection Fund
Last Ten Fiscal Years
Fiscal Year
Ended
Net Investment in
Capital Assets
Restricted Net
Position
Unrestricted
Net Position
Total Net
Position
6/30/2016 n/a n/a n/a n/a
6/30/2017 * 18,195,952 n/a 14,687,959 32,883,911 6/30/2018 17,848,823 n/a 11,507,181 29,356,004 6/30/2019 19,269,930 n/a 10,351,467 29,621,397 6/30/2020 19,371,725 n/a 11,239,973 30,611,698 6/30/2021 20,084,275 n/a 10,712,588 30,796,863 6/30/2022 21,298,084 n/a 8,895,410 30,193,494 6/30/2023 ** - - - -
6/30/2024 ** - - - -
6/30/2025 ** - - - -
** The FY 2023 budget has combined the Sewer Treatment Fund and the Sewer Collection Fund into one fund. Now called the Sewer Fund.
Source: Department's annual reports
* The Sewer Collection Utility was transferred to th e Water Department on May 1, 2017 so prior year data is unavailable.
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
THOUSANDS
NET POSITION BY COMPONENT: SEWER
COLLECTION FUND (IN 1000S)
Net Investment in Capital Assets Restricted Net Position Unrestricted Net Position 62 City of San Bernardino Municipal Water Department
Water Fund Revenue by Type
Last Ten Fiscal Years
Fiscal Year
Ended Water Sales Service
Charges/Fees
Other
Services
Total Operating
Revenue
Interest
Income
Rental
Income Other Income Gain on asset
disposition
Noncapital
grant funds
Total Non
Operating
Income
6/30/2016 28,293,790 1,604,472 103,609 30,001,871 63,566 134,845 495,298 - 1,696,219 2,389,928 6/30/2017 31,893,209 1,347,993 117,705 33,358,907 31,504 203,186 301,833 - 2,047,946 2,584,469 6/30/2018 36,825,634 1,350,623 103,753 38,280,010 975,144 208,925 206,645 46,356 1,776,883 3,213,953 6/30/2019 37,775,285 1,237,903 86,772 39,099,960 903,399 206,360 867,763 12,669 1,891,729 3,881,920 6/30/2020 39,162,485 1,020,818 84,073 40,267,376 747,477 245,784 651,031 - 1,991,747 3,636,039 6/30/2021 41,760,745 910,628 86,819 42,758,192 29,541 286,553 306,785 83,682 2,011,099 2,717,660 6/30/2022 42,175,623 905,674 68,828 43,150,124 - 347,849 530,326 28,846 1,910,435 2,817,456 6/30/2023 42,635,542 1,427,234 29,057 44,091,833 1,126,039 267,668 140,266 4,859 1,684,006 3,222,838 6/30/2024 44,697,545 1,252,884 34,661 45,985,090 2,544,768 358,472 206,697 85,041 5,566,773 8,761,751 6/30/2025 49,145,878 1,350,144 46,491 50,542,513 1,990,514 353,483 414,711 2,716,329 9,106,142 14,581,179 Source: Department's annual reports
-
10,000
20,000
30,000
40,000
50,000
60,000Thousands
Operating Revenue by Type-Water Fund
Other Services
Service Charges/Fees
Water Sales
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000Thousands
Non-Operating Revenue by Type: Water Fund
Noncapital grant funds
Gain on asset disposition
Other Income
Rental Income
Interest Income
63 City of San Bernardino Municipal Water Department
Sewer Fund Revenue by Type
Last Ten Fiscal Years
Fiscal Year
Ended
Sewer Treatment
Revenue Industrial Waste
Other
Operating
Revenue
Total Operating
Revenue
Interest
Income
Rental
Income Other Income
Gain on Asset
Disposition
/Joint Venture
Total Non
Operating
Income
6/30/2016 25,030,569 380,171 - 25,410,740 658,456 41,498 359,800 - 1,059,754 6/30/2017 28,022,259 589,760 - 28,612,019 23,391 15,908 - - 39,299 6/30/2018 30,039,110 694,342 - 30,733,452 - 12,481 - 6,063 18,544 6/30/2019 29,861,192 684,989 - 30,546,181 1,361,936 - - 9,417 1,371,353 6/30/2020 29,712,734 684,358 - 30,397,092 1,322,367 - - - 1,322,367 6/30/2021 29,587,597 773,519 - 30,361,116 19,472 - - - 19,472 6/30/2022 33,347,882 823,278 - 34,171,160 - - - - - 6/30/2023 * 44,519,998 1,024,262 - 45,544,260 1,251,526 - (15,420) - 1,236,106 6/30/2024 * 46,224,150 1,161,283 - 47,385,433 1,521,068 - - 599,981 2,121,049 6/30/2025 * 44,511,354 1,084,288 - 45,595,642 1,914,250 - 67,489 - 1,981,739 Source: Department's annual reports
* The FY 2023 budget has combined the Sewer Treatment Fund and the Sewer Collection F
und into one fund. Now called the Sewer Fund.
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000Thousands
Operating Revenue by Type-Sewer Fund
Other Operating Revenue
Industrial Waste
Sewer Treatment Revenue
(500)
-
500
1,000
1,500
2,000
2,500Thousands
Non-Operating Revenue by Type - Sewer Treatment Fund
Gain on Asset Disposition
/Joint Venture
Other Income
Rental Income
Interest Income
64 City of San Bernardino Municipal Water Department
Sewer Collection Fund Revenue by Type
Last Ten Fiscal Years
Fiscal Year
Ended
Sewer Collection
Revenue
Service
Charges/Fees
Other
Operating
Revenue
Total Operating
Revenue
Interest
Income Rental Income Other
Income
Gain on asset
disposition/Cont
ribution from
City
Total Non
Operating
Income
6/30/2016 n/a n/a n/a n/a n/a n/a n/a n/a n/a
6/30/2017 * 2,860,627 30,576 - 2,891,203 28,315 - - 12,580,781 12,609,096 6/30/2018 7,679,020 3,926 - 7,682,946 201,663 - 251,473 3,168 456,304 6/30/2019 7,555,960 6,137 - 7,562,097 584,685 - 5 - 584,690 6/30/2020 7,656,675 9,634 - 7,666,309 626,761 - - 3,003 629,764 6/30/2021 7,759,318 35,100 - 7,794,418 1,605 - 9,306 - 10,911 6/30/2022 6,306,843 87,780 - 6,394,623 - - - 6/30/2023 ** - - - - - - - - - 6/30/2024 ** - - - - - - - - - 6/30/2025 ** - - - - - - - - - ** The FY 2023 budget has combined the Sewer Treatment Fund and the Sewer Collection Fund into one fund. Now called the Sewer Fund.
Source: Department's annual reports
* The Sewer Collection Utility was transferred to the Water Department on May 1, 2017 so prior year data is unavailable.
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025 Thousands
Operating Revenue by Type-Sewer Collection
Fund
Other Operating Revenue
Service Charges/Fees
Sewer Collection Revenue
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000Thousands
Non-Operating Revenue by Type - Sewer Collections Fund
Gain on asset
disposition/Contribution from
City
Other Income
Rental Income
65 City of San Bernardino Municipal Water Department
Water Fund Expenses by Type
Last Ten Fiscal Years
Fiscal Year
Ended
Administration &
Customer Service
Plant Operations
and Distribution Engineering Maintenance
Depreciation
and
Amortization
Total Operating
Expense
Interest
Expense
Loss on asset
disposition
Other Non-
operating
expense
Total Non-
Operating
Expense
6/30/2016 13,313,085 11,406,861 2,326,551 1,978,534 5,809,331 34,834,362 106,698 - - 106,698 6/30/2017 13,971,106 12,436,501 2,329,142 1,859,871 6,478,050 37,074,670 3,130,749 - - 3,130,749 6/30/2018 11,300,091 12,337,763 1,943,659 2,292,625 6,571,957 34,446,095 2,015,792 - - 2,015,792 6/30/2019 9,987,198 12,853,400 2,253,333 2,387,889 6,512,907 33,994,727 1,993,624 - - 1,993,624 6/30/2020 13,418,886 12,472,633 2,641,641 2,528,441 7,564,550 38,626,151 1,955,317 25,094 - 1,980,411 6/30/2021 14,405,557 14,045,232 3,064,623 3,126,556 7,838,887 42,480,855 1,926,133 - - 1,926,133 6/30/2022 11,921,394 14,603,130 3,001,100 2,846,997 5,253,425 37,626,046 1,877,325 - 456,170 2,333,495 6/30/2023 17,923,515 15,374,571 2,976,680 3,138,031 7,298,095 46,710,892 1,841,859 - - 1,841,859 6/30/2024 17,630,159 17,829,965 3,074,606 3,330,387 12,131,463 53,996,580 1,783,831 - - 1,783,831 6/30/2025 15,024,065 17,866,076 3,494,437 3,757,074 8,726,491 48,868,143 1,728,231 - - 1,728,231 Source: Department's annual reports
-
10,000
20,000
30,000
40,000
50,000
60,000Thousands
Operating Expenses by Type-Water Fund
Depreciation and Amortization
Maintenance
Engineering
Plant Operations and Distribution
Administration & Customer Service
-
500
1,000
1,500
2,000
2,500
3,000
3,500
6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025 Thousands
Non-Operating Expense by Type: Water Fund
Other Non-operating expense
Loss on asset disposition
Interest Expense
66 City of San Bernardino Municipal Water Department
Sewer Fund Expenses by Type
Last Ten Fiscal Years
Fiscal Year
Ended
Administration &
Customer Service Plant Operations Engineering Maintenance Depreciation
and
Amortization
Total Operating
Expense
Interest
Expense
Loss on Asset
Disposition
/Joint Venture
Other Non-
operating
expense
Total Non-
Operating
Expense
6/30/2016 4,299,808 9,800,283 464,554 2,874,352 1,292,426 18,731,423 167,795 1,116,078 - 1,283,873 6/30/2017 6,799,639 9,620,639 480,951 3,135,686 4,102,963 24,139,878 1,300,263 2,321,485 42,209 3,663,957 6/30/2018 5,690,507 9,056,518 500,009 3,281,446 4,157,550 22,686,030 1,376,009 1,247,670 733,583 3,357,262 6/30/2019 6,775,552 10,118,506 617,855 3,041,620 4,313,147 24,866,681 1,367,375 1,553,261 - 2,920,635 6/30/2020 5,702,973 10,470,501 369,422 3,508,534 4,596,980 24,648,411 1,313,151 1,546,396 - 2,859,546 6/30/2021 6,292,313 11,986,858 387,932 3,811,413 4,507,869 26,986,385 1,283,861 1,479,729 38,363 2,801,953 6/30/2022 * 3,666,547 14,648,530 385,517 3,764,618 4,329,178 26,794,390 1,249,715 - * 1,038,291 2,288,006 6/30/2023 ** 12,396,331 17,749,049 1,657,022 4,434,120 5,360,819 41,597,341 1,219,167 - * - 1,219,167 6/30/2024 ** 14,539,325 17,524,663 2,030,808 4,845,501 11,411,059 50,351,356 1,175,040 - * - 1,175,040 6/30/2025 ** 14,822,174 17,657,053 1,849,607 5,281,012 4,596,972 44,206,818 1,136,264 54,801 - 1,191,065 Source: Department's annual reports
* Joint Venture expense relating to RIX operations are now classified as Operations beginning in 2022. ** The FY 2023 budget has combined the Sewer Treatment Fund and the Sewer Collection Fund into one fund. Now called the Sewer Fund.
-
10,000
20,000
30,000
40,000
50,000
60,000Thousands
Operating Expenses by Type-Sewer Fund
Depreciation and Amortization
Maintenance
Engineering
Plant Operations
Administration & Customer Service
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000Thousands
Non-Operating Expense by Type: Sewer Fund
Other Non-operating expense
Loss on Asset Disposition /Joint Venture
Interest Expense
67 City of San Bernardino Municipal Water Department
Sewer Collection Fund Expenses by Type
Last Ten Fiscal Years
Fiscal Year
Ended
Administration &
Customer Service Plant Operations Engineering Maintenance Depreciation and Amortization
Total Operating
Expense
Interest
Expense
Loss on Asset
Disposition
Other Non-
operating
expense
Total Non-
Operating
Expense
6/30/2016 * - - - - - - - - - - 6/30/2017 * 314,265 492,675 - - 247,926 1,054,866 - - 6,951 6,951 6/30/2018 2,211,188 354,423 8,071,891 - 1,029,648 11,667,150 - - - - 6/30/2019 1,608,074 439,660 5,051,773 - 1,073,415 8,172,922 - - - - 6/30/2020 1,898,461 483,316 4,124,631 - 1,144,096 7,650,504 - - - - 6/30/2021 3,497,969 533,619 2,549,257 - 1,281,602 7,862,447 - - - - 6/30/2022 2,535,314 590,600 3,333,804 - 1,428,347 7,888,065 - - 511,234 511,234 6/30/2023 ** - - - - - - - - - - 6/30/2024 ** - - - - - - - - - - 6/30/2025 ** - - - - - - - - - - ** The FY 2023 budget has combined the Sewer Treatment Fund and the Sewer Collection Fund into one fund. Now called the Sewer Fund.
Source: Department's annual reports
* The Sewer Collection Utility was transferred to the Water Department on May 1, 2017 so prior year data is unavailable.
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000Thousands
Operating Expenses by Type-Sewer Collection Fund
Depreciation and Amortization
Maintenance
Engineering
Plant Operations
Administration & Customer Service
-
100
200
300
400
500
600Thousands
Non-Operating Expense by Type: Sewer Collection Fund
Other Non-operating expense
Loss on Asset Disposition
Interest Expense
68 DEBT CAPACITY INFORMATION
These schedules contain information to help the reader assess the affordability of the Department's current level of
outstanding debt and ability to issue debt in the future. 69 7+,63$*(,17(17,21$//</()7%/$1.
70 City of San Bernardino Municipal Water Department
Water Fund Debt Service Coverage
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Net Operating
Expenses
(Excluding)
Depreciation
Net Operating
Income (Loss)
Net Non-
Operating
Income/
(Expense)
Amount
Available for
Debt Service
Principal Interest Total Debt
Service
Coverage
Ratio
6/30/2016 30,001,871 29,025,031 976,840 2,283,230 3, 260,070 1,813,594 523,274 2,336,868 1.40 6/30/2017 33,358,907 30,596,620 2,762,287 2,584,468 5,346,755 246,887 218,819 465,706 11.48 6/30/2018 38,280,016 27,874,148 10,405,868 3,167,597 13,573,465 770,000 2,223,838 2,993,838 4.53 6/30/2019 39,099,960 27,482,130 11,617,830 3,810,403 15,428,233 795,000 2,196,388 2,991,388 5.16 6/30/2020 40,267,376 31,061,601 9,205,775 3,636,039 12,841,814 830,000 2,163,888 2,993,888 4.29 6/30/2021 42,758,192 34,641,968 8,116,224 2,633,978 10,750,202 860,000 2,130,088 2,990,088 3.60 6/30/2022 43,150,124 32,372,621 10,777,503 2,332,440 13,109,943 900,000 2,090,388 2,990,388 4.38 6/30/2023 44,091,833 39,412,797 4,679,036 3,217,979 7, 897,015 950,000 2,044,138 2,994,138 2.64 6/30/2024 45,985,090 41,865,117 4,119,973 8,676,710 12,796,683 995,000 1,995,513 2,990,513 4.28 6/30/2025 50,542,513 40,141,652 10,400,861 11,864,850 22,265, 711 1,050,000 1,944,388 2,994,388 7.44 Source: Department's annual reports
71 City of San Bernardino Municipal Water Department
Sewer Fund Debt Service Coverage
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Net Operating
Expenses
(Excluding)
Depreciation
Net Operating
Income (Loss)
Net Non-
Operating
Income/
(Expense)
Amount
Available for
Debt Service
Principal Interest Total Debt
Service
Coverage
Ratio
6/30/2016 25,410,740 17,438,997 7,971,743 (224,119) 7,747,624 300,000 - 300,000 25.83 6/30/2017 28,612,019 20,036,916 8,575,103 39,299 8,61 4,402 300,000 132, 659 432,659 19.91 6/30/2018 30,733,453 18,539 ,941 12,193,512 (721,103) 11,472,409 890,000 1,382,782 2,272,782 5.05 6/30/2019 30,546,181 20,841,699 9,704,482 1,361,93 5 11,066,417 910,000 1,356,125 2,266,125 4.88 6/30/2020 30,397,092 20,051 ,431 10,345,661 1,32 2,367 11,668,028 935,000 1,331,225 2,266,225 5.15 6/30/2021 30,361,116 22,478,516 7,882,600 19,472 7,902,072 665,000 1,301,9 00 1,966,900 4.02 6/30/2022 34,171,160 22,4 65,212 11,705,948 (1,021,981) 10, 683,967 700,000 1,267,775 1,967,775 5.43 6/30/2023 45,544,260 36,236,522 9,307,738 1,251,52 6 10,559,264 735,000 1,231,900 1,966,900 5.37 6/30/2024 47,385,433 38,940,297 8,445,136 1,521,068 9,966,204 770,000 1,194,275 1,964,275 5.07 6/30/2025 45,595,642 39,609,846 5,985,796 1,981,739 7,967,535 810,000 1,154,775 1,964,775 4.06 Source: Department's annual reports
72 City of San Bernardino Municipal Water Department
Ratios of Outstanding Debt by Type (In Thousands of Dollars) Last Ten Fiscal Years
Fiscal Year
Ended
Revenue
Bonds
Notes/Loans
Payable
Certificates of
Participation Leases Total
Percentage of
Personal
Income
Debt Per
Capita
6/30/2016 - 20,569 - - 20,569 0. 3% 0.10 6/30/2017 88,656 900 - - 89,556 1.0% 0.39 6/30/2018 87,092 600 - - 87,692 1.0% 0.37 6/30/2019 85,483 300 - - 85,783 1.0% 0.39 6/30/2020 83,814 - - - 83,814 1. 0% 0.39 6/30/2021 82,085 - - - 82,085 1. 1% 0.38 6/30/2022 80,221 - - - 80,221 1. 7% 0.36 6/30/2023 78,391 - - 183 78,574 1.7% 0.35 6/30/2024 76,422 - - 12 76,434 1.7% 0.34 6/30/2025 74,358 - - - 74,358 1. 6% 0.33 Source: Department's annual reports
73 7+,63$*(,17(17,21$//</()7%/$1.
74 DEMOGRAPHIC AND ECONOMIC INFORMATION
These schedules offer demographic and economic indicators to help the reader understand the environment within which the Department's financial activities take place.
75 7+,63$*(,17(17,21$//</()7%/$1.
76 City of San Bernardino Municipal Water Department
Demographic Statistics
Last Ten Fiscal Years
Fiscal Year
Ended
Estimated
Population (1)
Personal
Income (In
Thousands) (2)
Per Capita
Personal
Income (2)
Unemployment
Rate (3)
6/30/2016 215,491 7,931,577 36,807 6.30% 6/30/2017 216,972 8,459,304 38,988 5.50% 6/30/2018 221,130 8,523,677 38,546 0 6/30/2019 219,233 8,509,748 38,816 4.10% 6/30/2020 217,671 8,159,289 37,485 11.30% 6/30/2021 216,291 7,723,319 35,708 8.10% 6/30/2022 220,840 4,596,122 20,812 4.80% 6/30/2023 223,230 4,608,807 20,646 6.30% 6/30/2024 226,541 5,179,860 22,865 6.30% 6/30/2025 222,727 5,727,648 25,716 6.60% (1) California Department of Finance
(2) City of San Bernardino Economic Development Dept
(3) State of California, Economic Development Department; City of San Bernardino Economic Development Dept 208,000
210,000
212,000
214,000
216,000
218,000
220,000
222,000
224,000
226,000
228,000
Population
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
Personal Income
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Per Capita Personal Income
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
Unemployment
77 City of San Bernardino Municipal Water Department
Major Employers
Current Year and Nine Years Ago
Fiscal Year 2025 Fiscal Year 2016
Employer Ranking Number of Employees Ranking Number of Employees* Patton State Hospital 1 2,283 1 1,000+ California State Unversity- San Bernardino 2 2,100 2 1,000+ Amazon Fullfilment Center 3 2,000 3 1,000+ Burlington Distribution Center 4 2,000 4 1,000+ San Bernardino County Superintendent of Schools 5 2,000 5 1,000+ Dignity Health - St. Bernardine Medical Center 6 1,548 6 1,000+ Stater Bros Markets 7 1,539 7 1,000+ SB County Transportation Department 8 1,450 8 1,000+ Dignity Health - Community Hospital of SB 9 1,136 9 1,000+ Metropolitan Auto Warehouse 10 1,001 10 1,000+
Source: City of San Bernardino Economic Development Department , Data Axle and City's Annual Financial Report. 78 City of San Bernardino Municipal Water Department
Authorized Positions History
Last Ten Fiscal Years
Year End Water Fund
Sewer Treatment
Fund
Sewer Collection
Fund Total
2016 188.5 83.5 0.0 272.0
2017 216.8 70.3 13.0 300.0
2018 215.0 72.0 12.0 299.0
2019 215.0 72.0 12.0 299.0
2020 215.0 72.0 12.0 299.0
2021 199.0 85.0 12.0 296.0
2022 199.0 84.5 12.0 295.5
2023 202.0 85.0 12.0 299.0
2024 205.0 85.0 12.0 302.0
2025 206.0 82.0 16.0 304.0
Source: Department's records
Note: The Sewer Collection Utility was transferred to the Department on May 1, 2017. Prior year data is unavailable.
0.0 50.0
100.0
150.0
200.0
250.0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Authorized Position History
Water Fund Sewer Treatment Fund Sewer Collection Fund
79 7+,63$*(,17(17,21$//</()7%/$1.
80 REVENUE CAPACITY
These schedules contain information to help the reader assess the Department's significant revenue sources.
81 7+,63$*(,17(17,21$//</()7%/$1.
82 City of San Bernardino Municipal Water Department
Water Rates: Minimum Monthly Charge
Last Ten Fiscal Years
Effective
Date 1/2" 5/8" 3/4" 1" 1-1/2" 2" 3" 4" 6" 8" 10" 12"
10/1/2016 16.09 16.09 20.15 28.19 48.40 72.60 129.12 197.36 411.68 653.88 936.44 * 7/1/2017 19.58 19.58 24.51 34.30 58.88 88.32 157.06 240.07 500.78 795.40 1,139.12 * 7/1/2018 23.39 23.39 29.28 40.98 70.35 105. 52 187.66 286.63 598.33 950.34 1,361.01 * 7/1/2019 23.39 23.39 29.28 40.98 70.35 105. 52 187.66 286.63 598.33 950.34 1,361.01 * 7/1/2020 23.39 23.39 29.28 40.98 70.35 105. 52 187.66 286.63 598.33 950.34 1,361.01 * 7/1/2021 23.39 23.39 29.28 40.98 70.35 105. 52 187.66 286.63 598.33 950.34 1,361.01 * 4/1/2022 20.49 20.49 28.17 43.51 81.87 127.91 388.77 772.38 1,232. 72 2,153.40 4,224.92 4,224.92 7/1/2022 21.72 21.72 29.87 46.13 86.79 135.59 412.10 818.73 1,306. 69 2,282.61 4,478.42 4,478.42 7/1/2023 22.59 22.59 31.07 47.98 90.27 141.02 428.59 851.48 1,358. 96 2,373.92 4,657.56 4,657.56 7/1/2024 23.27 23.27 32.01 49.42 92.98 145.26 441.45 877.03 1,399. 73 2,445.14 4,797.29 4,797.29 7/1/2025 23.97 23.97 32.98 50.91 95.77 149.62 454.70 903.35 1,441. 73 2,518.50 4,941.21 4,941.21 Source: Department's Records
($/month)
* Information not reported.
83 Municipal Water Department
Water Rates: Commodity Charges
Last Ten Fiscal Years
7/1/2016 7/1/2017 7/1/2018 7/1/2019 7/1/2020 7/1/2021 4/1/2022 7/1/2022 7/1/2023 7/1/2024 7/1/2025 Customer Class
Single Family Residential
Tier 1 (0-13 HCF) 1.37 1.40 1.43 1.43 1.43 1.43 1.35 1.44 1.50 1.55 1.60 Tier 2 (14-23 HCF) 1.37 1.40 1.43 1.43 1.43 1.43 1.83 1.94 2.02 2.09 2.16 Tier 3 (24+ HCF) 1.86 1.89 1.92 1.92 1.92 1.92 2.33 2.47 2.57 2.65 2.73 Multi-Faimly Residential 1.37 1.40 1.43 1.43 1.43 1.43 1.51 1.61 1.68 1.74 1.80 Commercial 1.37 1.40 1.43 1.43 1.43 1.43 1.65 1.75 1.82 1.88 1.94 Irrigation 1.37 1.40 1.43 1.43 1.43 1.43 2.32 2.46 2.56 2.64 2.72 Institutional 1.37 1.40 1.43 1.43 1.43 1.43 2.06 2.19 2.28 2.35 2.43 Other 1.37 1.40 1.43 1.43 1.43 1.43 3.82 4.05 4.22 4.35 4.49 * Prior years (07/01/14 - 07/01/21) commodity charges reflect rates including conservation, replenishment and elevation zone charges which were consolidated with the rates adopted on 04/01/22. 84 City of San Bernardino Municipal Water Department
Water Rates: Elevation Charges $ per HCF
Last Ten Fiscal Years
Effective Date Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 10/01/16 0.11 0.19 0.17 0.14 0.23 0.23
07/01/17 0.11 0.19 0.17 0.14 0.23 0.23
07/01/18 0.11 0.19 0.17 0.14 0.23 0.23
07/01/19 0.11 0.19 0.17 0.14 0.23 0.23
07/01/20 0.11 0.19 0.17 0.14 0.23 0.23
07/01/21 0.11 0.19 0.17 0.14 0.23 0.23
4/1/2022* N/A N/A N/A N/A N/A N/A
7/1/2022* N/A N/A N/A N/A N/A N/A
7/1/2023* N/A N/A N/A N/A N/A N/A
7/1/2024* N/A N/A N/A N/A N/A N/A
7/1/2025* N/A N/A N/A N/A N/A N/A
Source: Department's records
* Elevation charge was eliminated with the rate adoption on 04/01/22. 85 City of San Bernardino Municipal Water Department
Water Connections and Revenues by User Type
Last Ten Fiscal Years
*Rev from Water Spreadsheet used and difference plugged in to add up to Water Totals User Type Connections Revenue Connections Revenue Connections Revenue Connections Revenue Single family 36,170 $23,557,581 36,140 $22,210,799 36,063 $21,652,852 35,744 $23,761,145 Multiple family 2,953 6,352,591 2,932 6,148,207 2,916 5,835,444 2,905 5,562,012 Commercial 3,128 9,044,456 3,158 8,976,290 3,164 8,454,199 3,151 6,976,893 Landscape 1,192 7,922,591 1,189 6,957,544 1,196 6,742,399 1,184 5,515,046 Other 2,859 3,665,294 2,671 1,692,251 2,574 860,736 2,296 811,219 Total all users 46,302 50,542,513 46,090 45,985,090 45,913 43,545,629$ 45,280 42,626,315$ Connections Revenue Connections Revenue Connections Revenue Connections Revenue Single family 35,995 $23,875,761 36,042 $22,909,054 36,006 $21,579,693 35,824 $20,476,866 Multiple family 2,908 5,569,436 2,907 5,222,345 2,903 5,157,997 2,904 4,944,978 Commercial 3,154 6,579,373 3,117 6,482,560 3,104 6,320,900 3,111 6,117,493 Landscape 1,192 5,277,114 1,181 4,542,108 1,150 4,256,390 1,159 4,694,704 Other 2,241 811,833 2,174 781,428 2,056 808,227 2,018 748,141 Total all users 45,490 42,113,517$ 45,421 39,937,495$ 45,220 38,123,207$ 45,016 36,982,182$ Connections Revenue Connections Revenue
Single family 35,825 $17,346,414 35,729 $15,688,749 Multiple family 2,899 4,449,204 2,873 4,225,832 Commercial 3,131 5,750,672 3,092 4,913,942 Landscape 1,121 3,789,527 1,129 3,203,907 Other 1,956 557,392 1,905 677,180 Total all users 44,932 31,893,209$ 44,728 28,709,610$ Source: Department's records
2016
2025 2024 2023
2017
2022
2021 2020 2019 2018
47%
12%
18%
16%
7%
Water Service Revenue by User Type FY 2024
Single family
Multiple family
Commercial
Landscape
Other
78%
6%
%
%
%
%
7%
%%%%%%%%
%%%%%%%%
%%%%%%%%%
%%
3%
%
%%%%%%%%
%
%%%%%%%6%
Water Service Connections per Customer Type
FY 2024
Single family
Multiple family
Commercial
Landscape
Other
86 City of San Bernardino Municipal Water Department
Top Ten Water Customers
Fiscal Year 2022
City of SB 1,839,579$
San Bernardino City Unified School District 1,728,622
Cal State San Bernardino 696,121
County of San Bernardino 364,937
Housing Authority 280,338
Cott Beverages 274,607
Rialto School District 262,661
W Dean Weidner 221,102
SB Community Hospital Site #373 193,671
Crest Haven Apartments 193,445
Top Ten Customers Total 6,055,082$
Total Water Revenue 50,542,513$
Top Ten Customers Percent of Total 11.98%
2025 Top 10 Customers
87 City of San Bernardino Municipal Water Department
Sewer Treatment Rate History
Last Ten Fiscal Years
7/1/2016 7/1/2017 7/1/2018 7/1/ 2019 7/1/2020 7/1/2021 4/1/2022 * 7/1/2022* 7/1/2023* 7/1/2024* 7/1/2025* Residential (monthly per EDU)
Residential 22.38 23.10 23.10 23.10 23.10 23.10 37.83 41.99 45.35 48.98 52.90 Multi-Family (2 units) 44.76 46.20 ` 66.05 66.05 66.05 75.66 83.98 90.70 97.96 105.80 Multi-family (3 units) 67.14 69.29 99.04 99.04 99.04 99.04 113.49 125.98 136.05 146.94 158.69 All Non-Residential (including multi-family (4 or
more units) and mobile home parks) 3.42 3.52 6.62 6.62 6.62 6.62 16.56 18.38 19.85 21.44 23.16 Industrial 1.78 1.83 4.93 4.93 4.93 4.93 16.56 18.38 19.85 21.44 23.16 * The Sewer Collection rate was combined with the Sewer Treatment rate to become the sewer rate that was effective 04/01/22.
Source: Department's records
88 City of San Bernardino Municipal Water Department
Sewer Treatment Rate History
Last Ten Fiscal Years
7/1/2016 7/1/2017 7/1/2018 7/1/ 2019 7/1/2020 7/1/2021 4/1/2022 * 7/1/2022* 7/1/2023* 7/1/2024* 7/1/2025* Commodity Charge (per HCF):
Low Strength Non-Residiential
Laundromats 1.77 1.83 1.83 1.83 1.83 1.83 2.15 2.39 2.58 2.78 3.01 Schools, churches, nursery schools 1.29 1.33 1.33 1.33 1.33 1.33 2.15 2.39 2.58 2.78 3.01 Medium Strength Non-Residiential
Multi-family, mobile home parks 1.48 1.53 1.53 1.53 1.53 1.53 2.71 3.01 3.25 3.51 3.79 Retail, commercial, light industrial 2.47 2.55 2.55 2.55 2.55 2.55 2.71 3.01 3.25 3.51 3.79 Auto repair, car wash 1.53 1.58 1.58 1.58 1.58 1.58 2.71 3.01 3.25 3.51 3.79 Offices, motels (w/o restaurants) 1.77 1.83 1.83 1.83 1.83 1.83 2.71 3.01 3.25 3.51 3.79 Hospitals, convalescent homes 1.58 1.63 1.63 1.63 1.63 1.63 2.71 3.01 3.25 3.51 3.79 High Strength Non-Residiential
Restaurants, hotels 3.18 3.28 3.28 3.28 3.28 3.28 6.42 7.13 7.7 8.31 8.98 Domecstic Liquid Waste (per gallon) 0.0470 0.0490 0.0490 0.0490 0.0490 0.0490 0.0714 0.0793 0.0856 0.0925 0.0998 Industrial:
Discharge Flow (per million gallons) 1,060.00 1,094. 00 1,094.00 1,094.00 1,094.00 1,094.00 1,420.83 1,577. 12 1703.29 1,839.55 1,986.72 Biological Oxygen demand (per 1,000 lbs) 424.00 438.00 438.00 438.00 438.00 438.00 648.28 719.59 777.16 839.33 906.48 Suspended Solids (per 1,000 lbs) 753.00 778.00 778.00 778.00 778.00 778.00 648.50 719.84 777.42 839.62 906.78 * The Sewer Collection rate was combined with the Sewer Treatment rate to become the sewer rate that was effective 04/01/22.
Source: Department's records
89 City of San Bernardino Municipal Water Department
Sewer Treatment Connections and Revenue by User Type
Last Ten Fiscal Years
User Type Connections Revenue Connections Re venue Connections Revenue Connections Revenue San Bernardino Residential 35,383 $33,303,765 33,398 $29,810,174 33,050 $30,834,983 33,230 $14,359,415 San Bernardino Nonresidential 2,877 8,482,768 5,598 7,008,332 5,576 2,113,002 5,566 7,279,215 East Valley Residential - - - 3,660,647 18,735 5,003,034 18,636 5,011,215 East Valley Nonresidential - - - 2,338,956 1,089 3,329,085 1,106 3,805,558 Loma Linda Residential 2,690 1,655,293 2,690 1,513,264 3,185 1,239,524 3,039 1,219,034 Loma Linda Nonresidential 171 2,153,816 171 1,892,777 170 2,000,370 169 1,673,445 Total all users 41,121 $45,595,642 41,857 $46,224,150 61,805 $44,519,998 61,746 $33,347,882 Connections Revenue Connections Revenue C onnections Revenue Connections Revenue San Bernardino Residential 32,365 $10,165,765 31,828 $10,191,482 33,051 $10,146,660 32,945 $10,135,132 San Bernardino Nonresidential 5,436 8,292,874 5,340 8,463,554 5,531 8,645,032 5,526 8,834,641 East Valley Residential 18,710 4,797,833 18,477 4,778,152 18,477 4,778,152 18,477 4,765,218 East Valley Nonresidential 1,087 3,456,827 1,050 3,483,724 1,050 3,550,973 1,050 3,579,348 Loma Linda Residential 3,010 1,232,048 2,856 1,163,501 2,799 1,171,706 4,824 1,167,823 Loma Linda Nonresidential 169 1,642,250 168 1,622,872 345 1,557,119 703 1,548,574 Total all users 60,777 $29,587,596 59,719 $29,703,284 61,253 $29,849,643 63,525 $30,030,737 Connections Revenue Connections Revenue
San Bernardino Residential 32,960 $9,756,592 32,889 $8,746,617 San Bernardino Nonresidential 5,471 8,010,240 5,377 7,125,053 East Valley Residential 18,477 4,622,944 18,477 4,008,039 East Valley Nonresidential 1,050 3,083,475 1,060 2,825,971 Loma Linda Residential 4,723 1,107,201 5,948 1,008,071
Loma Linda Nonresidential 593 1,441,807 591 1,308,474
Total all users 63,274 $28,022,259 64,342 $25,022,225
Source: Department's records
2022
2021 2020 2019 2018
2017 2016
2025 2024 2023
35,383, 86%
2,877, 7%
-, 0 %
-, 0 %
8 8
8 888877777788
777
8 88
2,690, 7%
7 7
,,,,
, ,
7%%
%%
%%
,
,6
666666669
90 0
6 6666666699
90 0
,
,
7 7%
%
7 7%
%171, 0%
Sewer Utility Connections per
Customer Type FY 2025
San Bernardino
Residential
San Bernardino
Nonresidential
East Valley Residential
East Valley
Nonresidential
73%
18%
0%
%
%
0%
%
00000000
00000000
0000000
00 00
4%
4%%%
%%%%%%%%%
4%%%
%%%%%%%%%5%
Sewer Utility Revenue by User Type
FY 2025
San Bernardino Residential
San Bernardino
Nonresidential
East Valley Residential
East Valley Nonresidential
Loma Linda Residential
90 City of San Bernardino Municipal Water Department
Top Ten Sewer Treatment Customers
Fiscal Year 2022
County of San Bernardino 494,620$
San Bernardino City Unified School District 464,791
City of SB 358,313
Housing Authority 263,247
PAMA Management Co. 220,700
St. Bernardine's Hospital 201,491
SB Comm Hospital Site #373 195,820
Broadstone Investors LLC 193,081
LIDO Condominiums 169,237
W Dean Weidner 165,966
Top Ten Customers Total 2,727,264$
Total Sewer Revenue 45,595,642$
Top Ten Customers Percent of Total 5.98%
Source: Department's records
2025 Top 10 Customers
91 City of San Bernardino Municipal Water Department
Sewer Collection Rate History
Last Ten Fiscal Years
7/1/2016 7/1/2017 7/1/2018 7/1/2019 7/1/2020 7/1/2021 4/1/2022*7/1/2022* 7/1/2023* 7/1/2024* Residential (monthly per EDU) 9.45 9.90 9.90 9.90 9.90 9.90 N/A N/A N/A N/A Multi-Family
Multi-family, 2 units 18.90 19.85 19.85 19.85 19.85 19.85 N/A N/A N/A N/A Multi-family, 3 units 28.35 29.75 29.75 29.75 29.75 29.75 N/A N/A N/A N/A Multi-family, 4 or more units, Non-res.
Monthly Charge 2.95 3.10 3.10 3.10 3.10 3.10 N/A N/A N/A N/A Usage Charge (per HCF) 0.83 0.87 0.87 0.87 0.87 0.87 N/A N/A N/A N/A * The Sewer Collection rate was combined with the Sewer Treatment rate to become the sewer rate that was effective 04/01/22.
Source: Department's records
The Sewer Collection Utility was transferred to the Water Department on May 1, 2017 so details for prior years is unavailable. 92 City of San Bernardino Municipal Water Department
Sewer Collection
Connections and Revenue by User Type
Last Ten Fiscal Years
User Type Connections Consumption Revenue Connections Consumption Revenue Connections Consumption Revenue Connections Consumption Revenue Residential-Single Family - - - - - - 4 2 - - 2 7,748 - 3,061,513 Residential-Multi Family - - - - - - - - - 1 ,345 - 356,051 Residential- Multi Family 4 Units + - - - - - - - - - 1 8 78,494 68,975 Comm/Land/Lt. Industrial/Non-Res. - - - - - - 3 7 - - 2 ,670 2,594,640 2,310,986 Education-Public - - - - - - 2 - - 4 3 127,279 110,588 Education-Private - - - - - - - - - 1 24 5 8,932 55,859 Hospital/Convalescent Homes - - - - - - - - - 2 9 164,836 144,462 Office/Motel-No Restaurant - - - - - - 1 0 - - 8 5 76,768 57,800 Restaurant/ Hotel w/ Restaurant - - - - - - 1 - - 5 1 43,587 39,632 Auto Repair/Car Wash - - - - - - - - - 1 97 7 8,293 75,390 Laundromat - - - - - - - - - 4 29,232 25,587 CS Irrigation - - - - - - - - - - - -
To
tals IVDA - - - - - - - - - 4 9 62,340 -
Total all users - - -$ - - -$ 92 - -$ 32, 363 3,314,401 6,306,843$ Connections Consumption Revenue Connections Consumption Revenue Connections Consumption Revenue Connections Consumption Revenue Residential-Single Family 32,418 - $3,997,513 31,889 - $4,054,020 33,127 - $3,927,784 32,939 - $3,916,946 Residential-Multi Family 1,576 - 418,545 1 ,555 - 412,095 1,606 - 424,665 1 ,607 - 424,024 Residential- Multi Family 4 Units + 19 80,400 70,647 18 63,529 55,921 17 50,331 44,420 16 51,092 44,945 Comm/Land/Lt. Industrial/Non-Res. 3,138 3,051,177 2,726,198 3,069 2,893,018 2,588,912 3,180 2,904,054 2,601,804 3,198 2,997,422 2,668,497 Education-Public 49 124,047 109,205 37 54,207 48,082 27 24,293 21,700 27 29,478 26,118 Education-Private 149 72,141 68,086 150 63,715 60,941 152 64,643 61,858 150 72,936 67,985 Hospital/Convalescent Homes 35 197,360 172,771 35 197,787 173,367 35 190,191 166,768 35 194,560 170,063 Office/Motel-No Restaurant 93 78,338 59,307 92 79,321 61,027 94 88,632 69,280 94 85,397 66,015 Restaurant/ Hotel w/ Restaurant 51 36,181 33,232 52 38,762 35,480 47 41,583 37,750 41 39,909 35,963 Auto Repair/Car Wash 226 81,945 78,971 221 75,027 73,487 229 76,587 74,854 231 93,474 89,565 Laundromat 5 28,349 24,843 5 24,821 21,771 5 26,639 23,362 5 26,464 23,160 CS Irrigation - - - 21 255,400 71,571 43 423,688 115,905 45 540,444 145,737 Totals IVDA 48 65,559 - 48 56,072 - 50 54,387 - 49 57,057 - Total all users 37,806 3,815,497 7,759,318$ 37,192 3,801,659 7,656,675$ 38,613 3,945,028 7,570,150$ 38,438 4,188,233 $7,679,020 Connections Consumption Revenue Connections Consumption Revenue Residential-Single Family 32,899 - $3,719,798 - - - Residential-Multi Family 1,609 - 405,007 - - - Residential- Multi Family 4 Units + 15 45,146 41,351 - - - Comm/Land/Lt. Industrial/Non-Res. 3,204 2,626,645 2,467,470 - - - Education-Public 27 29,586 27,420 - - - Education-Private 150 61,381 61,779 - - - Hospital/Convalescent Homes 35 175,241 161,182 - - - Office/Motel-No Restaurant 96 71,092 58,587 - - - Restaurant/ Hotel w/ Restaurant 37 34,788 32,509 - - - Auto Repair/Car Wash 229 73,436 75,421 - - - Laundromat 5 24,091 21,824 - - - CS Irrigation 46 503,780 158,834 - - - Totals IVDA 51 54,874 - - - -
Total all users 38,402 3,700,060 $7,231,183 - - -
Source: Department's records
2022
2021 2020 2019 2018
2017 2016
* The Sewer Collection Utility was transferred to the Water Depar tment on May 1, 2017 so prior year data is unavailable. Data provided for 2017 represents the entire year.
2025 2024 2023
93