FY 2022 Annual Report
With drought conditions ravaging the West, the San Diego region’s long-term investments and commitment to conservation resulted in reliable water supplies to sustain the region’s economy and quality of life. Water recycling, seawater desalination, high-priority conserved water through the 2003 Quantification Settlement Agreement, and local sources helped the San Diego region continue to thrive during the worst drought in 1,200 years.
16B
Gallons of water produced at the Claude "Bud" Lewis Carlsbad Desalination Plant
43%
Reduction in per capita water use (from 1990)
3
major water purification projects under development across the region
100%
Deliveries of water supplies in Water Authority service area
While rising inflation pinched consumers across the nation, the Water Authority embraced its mission of protecting ratepayers. Affordability initiatives expanded significantly during the year, with increased advocacy in Sacramento for ratepayer funds, a new internal work group and continued efforts to rethink rate-setting to enhance affordability. In addition, the Water Authority successfully used ratepayer protection lawsuits to secure tens of millions of dollars in rate relief for San Diegans, maintained strong credit ratings and continued investing in an industry-leading Asset Management Program to minimize unexpected expenses.
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
For the Fiscal Year Ended June 30, 2021
| Operating Revenues | 2022 | 2021 |
|---|---|---|
| Water Sales | 669,277,819 | 616,433,122 |
| Other Revenues | 4,127,735 | 3,533,325 |
| Total Operating Revenues | 673,405,554 | 619,966,447 |
| Operating Expenses | 2022 | 2021 |
|---|---|---|
| Cost of Sales | 563,139,096 | 514,395,141 |
| Operations and Maintenance | 21,527,435 | 26,720,889 |
| Planning | 6,896,841 | 9,411,990 |
| General and Administrative | 20,303,371 | 20,346,260 |
| Total Operating Expenses | 611,866,743 | 570,874,280 |
| Net Operating Income before Depreciation and Amortization | 61,538,811 | 49,092,167 |
| Depreciation and Amortization | 64,893,002 | 64,408,571 |
| Total Operating Loss | (3,354,191) | (15,316,404) |
| Nonoperating Revenues (Expenses) | 2022 | 2021 |
|---|---|---|
| Property Taxes and In-lieu Charges | 16,965,774 | 16,233,221 |
| Infrastructure Access Charges | 47,284,548 | 43,921,782 |
| Investment Income | (6,826,393) | 1,183,759 |
| Settlement Proceeds | 50,520,266 | 44,373,872 |
| Other Income | 11,141,459 | 10,353,513 |
| Intergovernmental | 13,303,841 | 11,935,586 |
| Gain (Loss) on Sale/Retirement of Capital Assets | 91,166 | (209,409) |
| Loss on In-Substance Defeasance | - | (393,593) |
| Interest Expense | (73,865,417) | (76,583,539) |
| Debt Issuance Costs | (949,181) | (3,722,023) |
| Settlement Rebate to Member Agencies | (46,320,266) | (44,373,872) |
| Other Expenses | (13,467,960) | (17,642,805) |
| Total Nonoperating Revenues (Expenses) | (2,122,163) | (14,923,508) |
| Loss Before Capital Contributions | (5,476,354) | (30,239,912) |
| Capital Contributions | 2022 | 2021 |
|---|---|---|
| Capacity Charges | 22,103,246 | 18,714,471 |
| Water Standby Availability Charges | 11,141,972 | 11,168,915 |
| Contributions in Aid of Capital Assets | 1,137,154 | 1,424,882 |
| Total Capital Contributions | 34,382,372 | 31,308,268 |
| Changes in Net Position | 28,906,018 | 1,068,356 |
| Net Position at Beginning of Year | 1,595,904,151 | 1,594,835,795 |
| Net Position at End of Year | 1,624,810,169 | 1,595,904,151 |
STATEMENTS OF NET POSITION
| Assets | 2022 | 2021 |
|---|---|---|
| Current Assets: | ||
| Cash and Investments | 169,282,045 | 106,796,774 |
| Restricted Cash and Investments | 94,439,942 | 2,000,666 |
| Water Receivables | 123,104,919 | 114,765,688 |
| Interest Receivable | 1,447,116 | 948,933 |
| Taxes Receivable | 1,104,627 | 1,152,605 |
| Other Receivables | 12,992,763 | 9,565,438 |
| Inventories | 79,517,459 | 103,734,638 |
| Prepaid Expenses | 3,720,981 | 4,620,609 |
| Total Current Assets | 485,609,852 | 343,585,351 |
| Noncurrent Assets | 2022 | 2021 |
|---|---|---|
| Cash and Investments | 100,702,863 | 131,177,192 |
| Restricted Cash and Investments | 137,661,339 | 22,193,650 |
| Retention Receivable | 1,763,923 | 1,339,577 |
| Long-Term Loan Receivables | 8,149,406 | 8,488,964 |
| Net OPEB Asset | 3,024,505 | 1,402,043 |
| Capital Assets: | ||
| Non-Depreciable | 130,915,006 | 137,130,475 |
| Depreciable | 3,273,703,786 | 3,286,852,136 |
| Total Noncurrent Assets | 3,655,920,828 | 3,588,584,037 |
| Total Assets | 4,141,530,680 | 3,932,169,388 |
| Deferred Outflows of Resources | 2022 | 2021 |
|---|---|---|
| Deferred Loss on Refunding | 12,593,085 | 19,890,659 |
| Pension Contributions Subsequent to Measurement Date | 9,054,406 | 8,288,175 |
| OPEB Contributions Subsequent to Measurement Date | 303,260 | 501,912 |
| Deferred Actuarial Amounts Related to Pensions | 3,937,860 | 5,187,709 |
| Deferred Actuarial Amounts Related to OPEB | 638,486 | 845,146 |
| Total Deferred Outflows of Resources | 26,527,097 | 34,713,601 |
| Liabilities | 2022 | 2021 |
|---|---|---|
| Accounts Payable and Other Liabilities | 92,745,528 | 91,481,506 |
| Interest Payable | 17,833,932 | 16,899,412 |
| Construction Deposits | 293,971 | 66,584 |
| Short-Term Liabilities | 245,000,000 | 245,000,000 |
| Current Portion of Long-term Liabilities | 58,974,539 | 39,836,162 |
| Unearned Revenue | 16,866,818 | - |
| Total Current Liabilities | 431,714,788 | 393,283,664 |
| Noncurrent Liabilities | 2022 | 2021 |
|---|---|---|
| Long-term Liabilities | 2,036,137,977 | 1,895,022,088 |
| Net Pension Liability | 43,454,975 | 72,480,967 |
| Total Noncurrent Liabilities | 2,079,592,952 | 1,967,503,055 |
| Total Liabilities | 2,511,307,740 | 2,360,786,719 |
| Deferred Inflows of Resources | 2022 | 2021 |
|---|---|---|
| Deferred Gain on Refunding | 6,874,566 | 7,419,834 |
| Deferred Actuarial Amounts Related to Pensions | 23,599,712 | 1,945,718 |
| Deferred Actuarial Amounts Related to OPEB | 1,465,590 | 826,567 |
| Total Deferred Inflows of Resources | 31,939,868 | 10,192,119 |
| Net Position | 2022 | 2021 |
|---|---|---|
| Net Investment in Capital Assets | 1,281,989,599 | 1,283,285,577 |
| Restricted for Construction Projects | 24,001,613 | 2,000,666 |
| Restricted for Debt Service | 586,676 | 344,315 |
| Unrestricted | 318,232,281 | 310,273,593 |
| Total Net Position | 1,624,810,169 | 1,595,904,151 |
CASH AND INVESTMENTS
| As of June 30, 2022 and 2021, Restricted Cash and Investments Balances Were as Follows | 2022 | 2021 |
|---|---|---|
| Debt Service Reserve | 22,434,150 | 22,193,650 |
| CIP/Bond Construction | 186,124,760 | - |
| Pay-As-You-Go | 23,542,371 | 2,000,666 |
| Total | 232,101,281 | 24,194,316 |
| As of June 30, 2022 and 2021, Unrestricted Cash and Investments Balances Were as Follows | 2022 | 2021 |
|---|---|---|
| Operating | 166,270,446 | 132,137,392 |
| Rate Stabilization | 100,702,863 | 104,195,654 |
| Canal Replacement | 489,332 | 287,574 |
| Equipment Replacement | 2,522,267 | 1,353,346 |
| Total | 269,984,908 | 237,973,966 |
| Total Cash and Investments | 502,086,189 | 262,168,282 |
For both internal and external stakeholders, the Water Authority enhanced efforts to promote equity and inclusion, launching its most expansive outreach campaign to date in five languages and making its website easier to access for people who read languages other than English. In addition, the general manager launched her first assessment of diversity, inclusion, equity and belonging (DEIB). And the Water Authority became the first public agency in California to participate in the Department of Defense SkillBridge program, which connects transitioning military service members to career-track job training opportunities.
