12-15-2020 PCSA PacketPITTSYLVANIA COUNTY SERVICE AUTHORITY
REGULAR MEETING
Tuesday, December 15, 2020; 3:30 p.m.
Chatham Community Center (Gallery Room)
115 South Main Street, Chatham, Virginia 24531
AGENDA
1. CALL TO ORDER
2. ROLL CALL
3. ANY REVISIONS/ADDITIONS TO AGENDA
4. APPROVAL OF AGENDA
5. CONSENT AGENDA
A. Minutes Approval (October 20, 2020, Regular Meeting)
6. HEARING OF THE CITIZENS
Each person addressing the Authority under Hearing of the Citizens shall be a resident or
landowner of the County, or the registered agent of such resident or landowner. Each
person shall step up, give his/her name and district in an audible tone of voice for the
record, and unless further time is granted by the Chairman, shall limit his/her address to
three (3) minutes. No person shall be permitted to address the Authority more than once
during Hearing of the Citizens. All remarks shall be addressed to the Authority as a body
and not to any individual member thereof. Hearing of the Citizens shall last for a maximum
of forty-five (45) minutes. Any individual that is signed up to speak during said section
who does not get the opportunity to do so because of the time limit, shall be given speaking
priority at the next Authority meeting. Absent Chairman’s approval, no person shall be
able to speak who has not signed up.
7. PRESENTATIONS
A. Employee Spotlight (Charles McWilliams); (Presented by Adcock)
B. PCSA Audit Presentation (Scott Wickham, CPA); (Robinson, Farmer, Cox)
8. NEW BUSINESS
A. Staff Reports: (Adcock)
1. EDA Public Works Funding Application Discussion
2. Utility Shut Off Update
3. Use of Grant Funds for Delinquent Account Payments
9. MATTERS FROM AUTHORITY MEMBERS
10. ADJOURNMENT
405 R&L Smith Drive • Danville, Virginia 24540-9805
P.O. Box 209 • Blairs, Virginia 24527
Phone: (434) 836-7135 • Fax: (434) 836-7139
Website: pcsa.co
PCSA Members:
Joe B. Davis • Tim W. Dudley • Ben L. Farmer • William ("Vic") Ingram • Charles H. Miller, Jr. •
Ronald S. Scearce • Robert W. (“Bob”) Warren
MINUTES OF THE REGULAR MEETING OF PITTSYLVANIA COUNTY
SERVICE AUTHORITY
Tuesday, October 20, 2020, Chatham Community Center,
115 South Main Street, Chatham, Virginia 24531
1. CALL TO ORDER
Miller called the Meeting to Order at 3:30 P.M.
2. ROLL CALL
McCluster conducted the following Roll Call:
Members Present
Charles H. Miller, Jr., Chairman
Joe B. Davis, Vice-Chairman
Tim W. Dudley
Ben L. Farmer
William (“Vic”) Ingram
Ronald S. Scearce
Robert (“Bob”) W. Warren
Staff Present
David Smitherman (County Administrator/PCSA Chief Administrative Officer)
J. Vaden Hunt, Esq. (County Attorney/PCSA Legal Counsel)
Richard N. Hicks (Deputy County Administrator)
Kim Van Der Hyde (County Finance Director)
Chris Adcock (County Director of Public Works/PCSA Secretary)
Kaylyn M. McCluster (BOS Deputy Clerk)
3. ANY ADDITIONS/REVISIONS TO AGENDA
None.
4. APPROVAL OF AGENDA
On Motion by Scearce, seconded by Dudley, without discussion, Agenda approved unanimously.
5. CONSENT AGENDA
On Motion by Scearce, seconded by Davis, without discussion, Consent Agenda approved
unanimously.
A. Minutes Approval (September 15, 2020 Regular Meeting)
PCSA Meeting Minutes (October 20, 2020)
Page | 2
6. HEARING OF THE CITIZENS
None.
7. PRESENTATIONS
A. PCSA Employee Spotlight
Adcock recognized Matt Gosnell, Water and Sewer Operations Technician, for his
dedicated service to the Authority.
B. Water and Sewer Long Range Plan Engineering Services Presentation
Mr. Charles Archer, Vice President with Freese and Nichols, Inc., presented an overview
of their proposal to provide water and sewer master planning and rate study services to the
Authority.
8. NEW BUSINESS
A. Water and Sewer Long Range Plan Engineering Services Agreement Bid Award
On Motion by Scearce, seconded by Davis, without discussion, the Board unanimously
approved an agreement with Freese & Nichols, Inc. to provide water and sewer master
planning and other related services.
B. Staff Reports
1. Robin Court and Grit Road Waer System Improvements Funding Update
Adcock reported that the Authority was successful in receiving Planning and Design
Fund grants from the Virginia Drinking Water Program to assist with studying the
Robin Court and Grit Road Water Systems. These systems have had recent
exceedances of regulated contaminants and these funds will be used to prepare
engineering reports that will outline recommended corrective actions.
2. Utility Cut-offs Update
Adcock discussed the expiration of Virginia’s moratorium on utility disconnections.
While this policy did not apply to publicly owned utilities, the Authority has been
following these guidelines and suspended service disconnections for non-payment
during the pandemic emergency. Some localities have resumed disconnections and
staff is requesting guidance from the Board.
On Motion by Warren, seconded by Ingram, without discussion, the Authority directed
staff to wait for clarification from the State level, if the moratorium will be extended,
prior to sending notification to delinquent customers that disconnections will resume.
PCSA Meeting Minutes (October 20, 2020)
Page | 3
9. MATTERS FROM AUTHORITY MEMBERS
Scearce asked for clarification on the Authorities policy regarding utility marking on private
property. Adcock explained that the Authority is a member of VA 811 and marks its assets in
public rights-of-way or easements but does not mark private utility lines. Scearce asked for that
policy to be included on the Authority website.
10. CLOSED SESSION
On Motion by Dudley, seconded by Scearce, without discussion, the Authority unanimously
approved to enter Closed Session on the following items at 3:38 P.M.
A. Discussion concerning a prospective business or industry or the expansion of an existing
business or industry where no previous announcement has been made of the business' or
industry's interest in locating or expanding its facilities in the community.
• Legal Authority: Virginia Code § 2.2-3711(A)(5)
• Subject: Project Matterhorn
• Purpose: Discussion/Update on Unannounced Industry
11. RETURN TO OPEN SESSION AND CLOSED SESSION CERTIFICATION
The Board returned to Open Session at 4:26 P.M. and the following Closed Session Certification
was recorded:
CLOSED MEETING CERTIFICATION:
BE IT RESOLVED that at the Pittsylvania County Service Authority (“Authority”) Meeting on
October 20, 2020, the Authority hereby certifies by a recorded vote that to the best of each
Authority member’s knowledge only public business matters lawfully exempted from the Open
Meeting requirements of the Virginia Freedom of Information Act (“Act”) and identified in the
Motion authorizing the Closed Meeting were heard, discussed, or considered in the Closed
Meeting. If any Authority Member believes that there was a departure from the requirements of
the Act, he shall so state prior to the vote indicating the substance of the departure. The Statement
shall be recorded in the Authority's Minutes.
Roll Call Vote
Davis – Yes Dudley – Yes
Farmer – Yes Ingram – Yes
Miller – Yes Scearce – Yes
Warren – Yes
12. MATTERS FROM CLOSED SESSION
None
13. ADJOURNMENT
Miller adjourned the Meeting at 4:27 P.M.
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
FINANCIAL REPORT
FOR THE SIX MONTHS ENDED JUNE 30, 2020
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA
FINANCIAL REPORT
FOR THE SIX MONTHS ENDED JUNE 30, 2020
TABLE OF CONTENTS
FINANCIAL SECTION
Exhibit Page(s)
Independent Auditors' Report ............................................................................... 1-2
Management’s Discussion and Analysis .................................................................... 3-6
Basic Financial Statements:
Statement of Net Position ................................................................................. 1 7
Statement of Revenues, Expenses, and Changes in Net Position ..................................... 2 8
Statement of Cash Flows .................................................................................... 3 9
Notes to the Financial Statements ......................................................................... 10-40
Required Supplementary Information:
Schedule of Authority’s Share of Net OPEB Liability – Group Life Insurance (GLI) Plan ............ 4 41
Schedule of Employer Contributions – Group Life Insurance (GLI) Plan ............................... 5 42
Notes to Required Supplementary Information – Group Life Insurance (GLI) Plan ................. 6 43
Schedule of Changes in Total OPEB Liability (Asset) and Related Ratios – Health Insurance ..... 7 44
Notes to Required Supplementary Information – Health Insurance OPEB ............................. 8 45
Schedule of Changes in in Net Pension Liability (Asset) and Related Ratios ........................ 9 46
Schedule of Employer Contributions - Pension ........................................................... 10 47
Notes to Required Supplementary Information - Pension .............................................. 11 48
COMPLIANCE SECTION
Independent Auditors’ Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards .................................................. 49-50
FINANCIAL SECTION
Independent Auditors’Report
To the Board of Commissioners
Pittsylvania County Service Authority
Chatham, Virginia
Report on the Financial Statements
We have audited the accompanying financial statements of the business-type activities of the
Pittsylvania County Service Authority,a component unit of Pittsylvania County, Virginia,as of and for
the six months ended June 30, 2020, and the related notes to the financial statements, which
collectively comprise the Authority’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; and the Specifications for Audits of
Authorities, Boards, and Commissions,issued by the Auditor of Public Accounts of the Commonwealth
of Virginia. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
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Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the business-type activities of the Pittsylvania County Service Authority, as of June
30, 2020, and the changes in financial position, and cash flows thereof for the six months then ended in
accordance with accounting principles generally accepted in the United States of America.
Restatement of Beginning Balances
As described in Note 16 to the financial statements, in 2020, the Authority restated beginning balances.
Our opinion is not modified with respect to this matter.
Emphasis of a Matter
The Authority changed its fiscal year end to June 30 effective June 30, 2020 and it resulted in a short
year (six month) one-time audit.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and schedules related to pension and OPEB funding on pages 3-6
and 41-48 respectively, be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November
17, 2020 on our consideration of the Pittsylvania County Service Authority’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 Pittsylvania County Service Authority’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 Pittsylvania County
Service Authority’s internal control over financial reporting and compliance.
Blacksburg, Virginia
November 17, 2020
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PITTSYLVANIA COUNTY SERVICE AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE SIX MONTHS ENDED JUNE 30, 2020
Management’s Discussion and Analysis (MD&A) of the Pittsylvania County Service Authority
financial performance provides an overview of the Authority’s financial activities for the six
months ended June 30, 2020. The PCSA recently changed from a calendar year-end to a fiscal
year ending June 30. Comparisons throughout this document are based on the last audited
financials as of December 31, 2019 and the current audited financials as of June 30, 2020. The
MD&A should be read in conjunction with the Authority’s basic financial statements. It is
designed to a) assist the reader in understanding the significant financial issues, b) provide an
overview of the Authority’s financial activity, c) identify changes in the financial position and
its ability to address subsequent year issues, and d) identify individual fund issues or concerns.
THE AUTHORITY AS A WHOLE
The Authority’s total net position for the six months ended June 30, 2020 and December 31,
2019, increased/(decreased)by ($136,453)and $2,749,352,respectively. A majority of the
2019 increase resulted from capital contributions from Pittsylvania County, Virginia.
Unrestricted net position –the part of net position that can be used to finance day to day
operations without constraints established by debt covenants, enabling legislation, or other
legal requirements is $3,743,839 at June 30, 2020.
Business-type Activities
The Authority operates as a “business-type activity”, or “enterprise fund activity”. Business-
type activities utilize the accrual basis of accounting and their statements provide both short
and long-term financial information.
FINANCIAL STATEMENT PRESENTATION
The financial statements of the Authority report information of the Authority using accounting
methods similar to those used by private sector companies. These statements offer short and
long-term financial information about its activities. The Statement of Net Position includes all
of the Authority’s assets and liabilities and provides information about the nature and amounts
of investments in resources (assets) and the obligations to Authority creditors (liabilities). It
also provides the basis for evaluating the capital structure and assessing the liquidity and
financial flexibility of the Authority.
All of the current year’s revenues and expenses are accounted for in the Statement of
Revenues, Expenses and Changes in Net Position. This statement measures the successes of
the Authority’s operations over the past year and can be used to determine whether the
Authority has successfully recovered all its costs through its user fees, profitability and credit
worthiness.
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FINANCIAL STATEMENT PRESENTATION (CONTINUED)
The final required financial statement is the Statement of Cash Flows. This statement reports
cash receipts, cash payments, and net changes in cash resulting from operations, investing and
financing activities. This statement also provides answers to questions such as from where did
the cash come, how was cash used, and what was the change in cash balance during the
reporting period.
CONDENSED FINANCIAL INFORMATION
June 30, 2020 December 31, 2019
Assets
Current assets $ 3,842,376 $4,002,681
Noncurrent assets 35,512,147 35,599,442
Total assets $ 39,354,523 $39,602,123
Deferred outflows of resources $ 142,180 $72,477
Liabilities
Current liabilities $ 358,719 $438,048
Noncurrent liabilities 82,650 169,369
Total liabilities $ 441,369 $607,417
Deferred inflows of resources $ 431,851 $183,934
Net Position $ 38,623,483 $38,883,249
The current assets experienced a decrease of $(160,305), which consisted mostly of a decrease
in cash. The noncurrent assets decreased by $(87,295), which consisted mostly of depreciation
expense. Capital assets and long-term debt are discussed in detail on the following pages. The
Authority recently implemented GASB Statement Nos. 68 and 75 related to pensions and OPEBs
which make up the deferred outflows of resources and deferred inflows of resources. For more
information on those items reference the corresponding notes.
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CONDENSED FINANCIAL INFORMATION (CONTINUED)
June 30, 2020 December 31, 2019
Revenues
Operating revenues $1,246,098 $2,816,451
Nonoperating revenues 83,396 533,282
Total revenues $1,329,494 $3,349,733
Expenses
Operating expenses $1,465,947 $3,904,910
Change in Net Position $(136,453) $(555,177)
Operating revenues for the Authority consist of two primary categories: Water Charges and
Sewer Charges. It is important to note that the figures included for June 30, 2020 only include
6 months whereas the figures included for December 31, 2019 are for a 12-month period. Also
important to note, revenues were down during the first 6 months of 2020 due to the COVID-19
pandemic. The Authority continued to provide water and sewer service continued regardless of
customer payment.
CAPITAL ASSETS and LONG-TERM DEBT
Capital Assets
As of June 30, 2020, the Authority had $34,879,644 invested in capital assets (net of
accumulated depreciation). This investment includes land, construction in progress,
equipment, water systems, sewer systems, pump stations, tank and wells, and buildings.The
total net decrease (additions less retirements and depreciation) in the Authority’s investment
in capital assets for the current fiscal year was ($215,214). The following is a summary of the
capital assets at year-end (net of depreciation).
June 30, 2020 December 31, 2019
Land $388,900 $388,900
Construction in progress 5,413,863 5,329,792
Machinery, equipment, and vehicles 1,344,816 1,305,788
Water systems 24,183,710 24,173,232
Sewer systems 11,867,424 11,867,424
Pump stations 976,900 976,900
Tanks and Wells 4,686,900 4,686,900
Buildings and equipment 986,763 986,763
Total capital assets $49,849,276 $49,715,699
Less: accumulated depreciation (14,969,632)(14,620,841)
Capital assets, net $34,879,644 $35,094,858
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CAPITAL ASSETS and LONG-TERM DEBT (CONTINUED)
The changes in each category of capital assets are presented in detail in Note 3 to the Basic
Financial Statements. Current year additions to the capital assets were $133,577. The
Authority completed several minor improvements during fiscal year 2020 including the purchase
of a new vehicle.
Long-term obligations
At June 30, 2020, the Authority’s long-term liabilities totaled $98,663. Total long-term debt
increased by $30,663 during the fiscal year mostly related to the change in discount rate used
for VRS net pension calculations and accruing compensated absences. Long-term debt consisted
of the following:
June 30, 2020 December 31, 2019
Compensated absences
Net OPEB liabilities
$ 21,351
77,312
$ -
68,000
Total $ 98,663 $ 68,000
The changes in long-term debt are presented in detail in Note 4 to the Basic Financial
Statements.
ECONOMIC FACTORS AND NEXT YEARS BUDGETS AND RATES
The Authority considered several factors when setting the fiscal year 2020-2021 budget. The
budget for the PCSA has now been incorporated into the Pittsylvania County, Virginia budget.
Financials for the PCSA are maintained as an enterprise fund so that all revenues and
expenditures for the PCSA are segregated from other revenues and expenditures of the County.
Within this budget, water and sewer functions have been separated to more clearly track
revenues and expenditures. Budgeted shared expenditures for these divisions have been divided
as follows: Water 65% and Sewer 35%. Rates are currently being reviewed to ensure that
adequate funding exists to cover all expenditures for each division. An increase in current rates
will not occur until fiscal year 2021-2022.
CONTACTING THE AUTHORITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers and creditors
with a general overview of the Authority’s finances and to demonstrate the Authority’s
accountability for the resources it receives and their uses. Questions concerning this report or
requests for additional information should be directed to Kim Van Der Hyde, Finance Director
for Pittsylvania County at (434) 432-7742.
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Basic Financial Statements
Exhibit 1
Current Assets:
Cash and cash equivalents $2,280,924
Investments 1,000,467
Accounts receivable, net of allowance 295,417
Inventory 42,355
Prepaid expenses 11,382
Capital lease receviable - current portion 25,000
Due from other governments - Town of Chatham 56,016
Due from other governments 130,815
Total current assets $3,842,376
Noncurrent Assets:
Restricted cash and cash equivalents $205,539
Capital lease receivable - net of current portion 125,000
Net pension asset 301,964
Capital assets, net of depreciation:
Land 388,900
Construction in progress 5,413,863
Machinery, equipment, and vehicles 896,609
Water systems 16,319,373
Sewer systems 7,680,730
Pump stations 645,999
Tanks and wells 3,011,842
Buildings and improvements 522,328
Total capital assets, net of depreciation $34,879,644
Total noncurrent assets $35,512,147
Total assets $39,354,523
Pension related items $97,013
OPEB related items 45,167
Total deferred outflows of resources $142,180
Current Liabilities:
Accounts payable $67,269
Payroll liabilities 174
Customer deposits payable 205,539
Unearned revenue 69,724
Compensated absences - current portion 16,013
Total current liabilities $358,719
Noncurrent Liabilities:
Compensated absences, net of current portion $5,338
Net OPEB liability 77,312
Total noncurrent liabilities $82,650
Total liabilities $441,369
Pension related items $425,278
OPEB related items 6,573
Total deferred inflows of resources $431,851
Investment in capital assets $34,879,644
Unrestricted 3,743,839
Total net position $38,623,483
The accompanying notes to the financial statements are an integral part of this statement.
ASSETS
LIABILITIES
NET POSITION
Pittsylvania County Service Authority
Statement of Net Position
DEFERRED OUTFLOWS OF RESOURCES
DEFERRED INFLOWS OF RESOURCES
As of June 30, 2020
(A Component Unit of Pittsylvania County, Virginia)
-7-
Exhibit 2
Operating Revenues:
Water charges $746,395
Sewer charges 397,650
Penalties 12,433
Miscellaneous 89,620
Total operating revenues $1,246,098
Operating Expenses:
General and Administrative:
Salaries $256,327
Fringe benefits and payroll taxes (138,010)
Professional services 14,053
Contracted meter reading 19,798
IT services 8,655
Office expense 16,274
Insurance 14,285
Vehicle fuels 6,519
Miss Utility 1,132
Repair and maintenance 7,640
Utilities 5,883
Uniforms 2,142
Miscellaneous 6,431
Total general and administrative $221,129
Operations:
Engineering $16,776
Water tank maintenance 33,688
Water pumping electricity 17,911
Contracted sewage treatment 350,664
Water distribution maintenance 47,346
Purchased water 429,642
Depreciation 348,791
Total operations $1,244,818
Total operating expenses $1,465,947
Net operating income (loss) $(219,849)
Nonoperating Revenues (Expenses):
Interest income $31,125
Contributions in aid of construction 52,271
Total nonoperating revenues (expenses) $83,396
Change in net position $(136,453)
Net position, beginning of year, as restated 38,759,936
Net position, end of year $38,623,483
The accompanying notes to the financial statements are an integral part of this statement.
Pittsylvania County Service Authority
Statement of Revenues, Expenses and Changes in Net Position
For the Six Months Ended June 30, 2020
(A Component Unit of Pittsylvania County, Virginia)
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Exhibit 3
Cash flows from operating activities:
Receipts from customers and users $1,346,942
Payments to suppliers (1,089,205)
Payments to employees and retirees (340,607)
Net cash provided by (used for) operating activities $(82,870)
Cash flows from capital and related financing activities:
Purchase of utility plant and equipment $(81,306)
Capital lease receivable payments 25,000
Capital grants and contributions 195,488
Net cash provided by (used for) capital and related financing activities $139,182
Cash flow from investing activities:
Purchase of investments $(2,027,600)
Sale of investments 3,567,591
Interest income 4,093
Net cash provided by (used for) investing activities $1,544,084
Net increase (decrease) in cash and cash equivalents $1,600,396
Cash and cash equivalents at beginning of year
(including restricted cash and cash equivalents of $202,537)886,067
Cash and cash equivalents at end of year
(including restricted cash and cash equivalents of $205,539) $2,486,463
Reconciliation of operating income (loss) to net cash provided
by (used for) operating activities:
Net operating income (loss) $(219,849)
Adjustments to reconcile operating income (loss) to net cash provided
by (used for) operating activities:
Depreciation 348,791
Changes in operating assets, deferred outflows of resources, liabilities,
and deferred inflows of resources:
(Increase) decrease in accounts receivable 90,432
(Increase) decrease in inventory (2,587)
(Increase) decrease in prepaid expenses 44,319
(Increase) decrease in deferred outflows of resources (44,865)
Increase (decrease) in accounts payable (132,098)
Increase (decrease) in payroll payables (6,672)
Increase (decrease) in customer deposits 3,002
Increase (decrease) in unearned revenue 7,410
Increase (decrease) in compensated absences 21,351
Increase (decrease) in net OPEB liabilities 9,312
Increase (decrease) in deferred inflows of resources 243,917
Increase (decrease) in net pension liability/asset (445,333)
Net cash provided by (used for) operating activities $(82,870)
Schedule of non-cash capital and related financing activities:
Construction in progress donated by Pittsylvania County, Virginia $52,271
The accompanying notes to the financial statements are an integral part of this statement.
Pittsylvania County Service Authority
Statement of Cash Flows
For the Six Months Ended June 30, 2020
(A Component Unit of Pittsylvania County, Virginia)
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PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS
AS OF JUNE 30,2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The financial statements of the Authority conform to generally accepted accounting principles (GAAP) applicable
to governmental units promulgated by the Governmental Accounting Standards Board (GASB). The following is a
summary of the more significant policies:
A.Financial Reporting Entity
The Pittsylvania County Service Authority was created February 27, 1973 as an authority pursuant to the
Virginia Water and Sewer Authorities Act,Code of Virginia (1950, as amended) for the purpose of providing
water and sewer services to Pittsylvania County, Virginia citizens. The Authority's Board consists of seven
members. Historically, the Board members were appointed by the Board of Supervisors of Pittsylvania
County, Virginia. In March 2020, the Board of Supervisors removed the appointed Commission members and
appointed themselves as the Board for the Authority.
The Governmental Accounting Standards Board (GASB) has determined that, under certain circumstances,
related organizations should be considered component units of a primary entity and, as such, reported as
part of the primary entity. In so doing, GASB established criteria for determining whether a related entity
should be reported as a component unit and, under different circumstances, how component units must be
presented.In defining the Authority as a primary reporting entity, related organizations were evaluated for
possible inclusion, using the criteria established by the GASB. The criteria would require the reporting entity
to include entities that hold resources entirely or almost entirely for the direct benefit of the Authority
where the Authority has the ability to access a majority of those resources and those resources are
significant to the Authority. Based on these criteria, the Authority does not have any component units, but
the Authority is considered a blended component unit of the County of Pittsylvania, Virginia based on the
shared Board and nature of the relationship.
B.Financial Statement Presentation
The financial statements have been prepared in accordance with current financial reporting guidance.
The Authority follows the business-type activities requirements which provides that the following sections be
included in the annual financial report:
1.Management discussion and analysis
2.Basic financial statements including a statement of net position, statement of revenues, expenses
and changes in net position, and a statement of cash flows
3.Notes to the financial statements
4.Required supplementary information
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PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (CONTINUED)
C.Basis of Accounting
For financial reporting purposes, the Pittsylvania County Service Authority is considered a special-purpose
government, engaged only in business-type activities. Accordingly, the Authority’s financial statements have
been prepared using the economic resources measurement focus and the accrual basis of accounting. Under
the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has
been incurred. All significant intra-agency transactions have been eliminated.
D.Proprietary Fund Revenue and Expense Classifications
The Authority distinguishes operating revenues and expenses from nonoperating items. Operating revenues
and expenses generally result from providing services in connection with the Authority’s principal ongoing
operations. The principal operating revenues of the Authority are charges to customers for services.
Nonoperating revenues include activities that have the characteristics of nonexchange transactions,
including gifts, and other revenue sources that are defined as nonoperating revenues, such as state
appropriations and interest and other investment income.
Nonoperating expenses include interest on debt related to the purchase of capital assets and losses on the
disposal of capital assets. All other expenses are classified as operating expenses.
E.Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s) and so will not be recognized as
an outflow of resources (expense) until then.The Authority has one item that qualifies for reporting in this
category. It is comprised of certain items related to the measurement of the net pension liability/(asset)
and the net OPEB liabilities and contributions to the pension and OPEB plans made during the current year
and subsequent to the net pension liability/(asset)and net OPEB liabilities measurement date. For more
detailed information on these items, reference the related notes.
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 position that applies to a future period(s) and so will not be recognized as an
inflow of resources (revenue) until that time. The Authority has one type of item that qualifies for reporting
in this category. Certain items related to the measurement of the net pension liability/(asset)and net OPEB
liabilities are reported as deferred inflows of resources. For more detailed information on these items,
reference the related notes.
-11-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:(CONTINUED)
F.Net Position
The Statement of Net Position reports the difference between (a) assets and deferred outflows of resources
and (b) liabilities and deferred inflows of resources as net position.
The Authority’s net position is classified as follows:
Net Investment in Capital Assets –This category represents the net value of capital assets (property,
plant, and equipment less accumulated depreciation) reduced by the debt incurred to acquire or
construct the asset. Deferred outflows of resources and deferred inflows of resources that are
attributable to the acquisition, construction, or improvement of those assets or related debt are also
included in the component of net position.
Restricted–This category includes resources for which the Authority is legally or contractually obligated
to spend in accordance with restrictions imposed by external parties.
Unrestricted –Unrestricted net position represents resources derived from charges to customers for
goods received, services rendered or privileges provided, operating grants and contributions, and capital
grants and contributions. These resources are used for transactions relating to the operations of the
Authority and may be used at the Authority’s discretion to meet current expenses for any lawful
purposes.
G.Net Position Flow Assumption
Sometimes the Authority will fund outlays for a particular purpose from both restricted and unrestricted
resources. In order to calculate the amounts to report as restricted—net position and unrestricted—net
position in the financial statements, a flow assumption must be made about the order in which the resources
are considered to be applied. It is the Authority’s policy to consider restricted—net position to have been
depleted before unrestricted—net position is applied.
H.Restricted Assets
The Authority has restricted cash deposits in the amount of $205,539 representing customer security
deposits.
I.Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Accordingly,
actual results could differ from these amounts.
-12-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:(CONTINUED)
J.Capital Assets
Capital assets, which include property, plant, equipment,and infrastructure assets (e.g., roads, sidewalks,
and similar items), are reported in the financial statements. Capital assets are defined by the Authority as
assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life
in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
the asset’s life are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. No interest
was capitalized during the six months ended June 30, 2020.
Property, plant, equipment, and infrastructure are depreciated using the straight-line method over the
following estimated useful lives:
Asset Years
Machinery, equipment, and vehicles 7-15
Water systems 66
Sewer systems 66
Pump stations 66
Tanks and wells 66
Buildings and improvements 66
K. Compensated Absences
Authority employees earn vacation and sick leave each month at a scheduled rate in accordance with the
Authority’s personnel policies. Vested or accumulated vacation leave that is expected to be liquidated with
expendable available financial resources is reported as an expense and a liability of the Authority. No
liability is recorded for non-vesting accumulating rights to receive sick pay benefits. However, a liability is
recognized for that portion of accumulating sick leave benefits that it is estimated will be taken as "terminal
leave" prior to retirement. The Authority accrues salary-related payments associated with the payment of
compensated absences.
L. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, amounts in demand deposits as well as short-term
investments with a maturity date within three months of the date acquired by the government. For purposes
of the statement of cash flows, the Authority considers their demand deposits and all highly liquid
investments with an original maturity of three months or less when purchased to be cash equivalents.
-13-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:(CONTINUED)
M.Investments
Investments with a maturity of less than one year when purchased, non-negotiable certificates of deposit,
and other nonparticipating investments, and external investment pools are stated at cost or amortized cost.
Investments with a maturity greater than one year when purchased are stated at fair value. Fair value is the
price that would be received to sell an investment in an orderly transaction at year end.
N. Prepaid Items
Certain payments to vendors represent costs applicable to future accounting periods and are recorded as
prepaid items in the statement of net position.
O. Inventory
Inventories of materials and supplies are valued at the lower of cost or market using the first in, first out
method.
P. Accounts Receivable
Accounts receivable are stated net of allowance. As of June 30, 2020, unbilled accounts receivable is
$99,148 and the allowance for uncollectable accounts is $27,423.
Q. Pensions
For purposes of measuring the net pension liability/(asset), deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net position
of the Authority’s Retirement Plan and the additions to/deductions from the Authority Retirement Plan’s net
fiduciary position have been determined on the same basis as they are reported by the Virginia Retirement
System (VRS). For this purpose, benefit payments (including refunds of employee contributions)are
recognized when due and payable in accordance with the benefit terms. Investments are reported at fair
value.
R. Other Postemployment Benefits (OPEB)
Group Life Insurance
For purposes of measuring the net VRS related OPEB liabilities, deferred outflows of resources and deferred
inflows of resources related to the OPEB, and OPEB expense, information about the fiduciary net position of
the VRS GLI OPEB Plan and the additions to/deductions from the VRS OPEB Plans’ net fiduciary position have
been determined on the same basis as they were reported by VRS. In addition, benefit payments are
recognized when due and payable in accordance with the benefit terms. Investments are reported at fair
value.
Health Insurance
In addition to the OPEB Group Life Insurance benefit, the Authority allows their retirees to stay on the health
insurance plan after retirement. The retiree is required to pay the blended premium cost creating an
implicit subsidy OPEB liability.
-14-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 2 – DEPOSITS AND INVESTMENTS:
Deposits with banks are covered by the Federal Deposit Insurance Corporation (FDIC) and collateralized in
accordance with the Virginia Security for Public Deposits Act (the “Act”) Section 2.2-4400 et. seq. of the Code of
Virginia. Under the Act, banks and savings institutions holding public deposits in excess of the amount insured
by the FDIC must pledge collateral to the Commonwealth of Virginia Treasury Board. Financial Institutions may
choose between two collateralization methodologies and depending upon that choice, will pledge collateral that
ranges in the amounts from 50% to 130% of excess deposits. Accordingly, all deposits are considered fully
collateralized.
Statutes authorize local governments and other public bodies to invest in obligations of the United States or
agencies thereof, obligations of the Commonwealth of Virginia or political subdivisions thereof, obligations of
the International Bank for Reconstruction and Development (World Bank), the Asian Development Bank, the
African Development Bank, “prime quality” commercial paper that has received at least two of the following
ratings: P-1 by Moody’s Investors Service, Inc.; A-1 by Standard and Poor’s; or F1 by Fitch Ratings, Inc. (Section
2.2-4502), banker’s acceptances, repurchase agreements, and the State Treasurer’s Local Government
Investment Pool (LGIP).
Custodial Credit Risk: Custodial credit risk is the risk that, in the event of the failure of the counterparty, the
Authority will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. The Authority’s investments on June 30, 2020 were held in the Authority’s name
by the Authority’s custodial bank.
Credit Risk of Debt Securities: The Authority has not adopted an investment policy for credit risk.
Rated Debt Investments Fair Quality Ratings
Unrated
Certificates of Deposit $1,000,467
Authority's Rated Debt Investments' Values
Interest Rate Risk: The Authority has not adopted an investment policy for interest rate risk. Investments
subject to interest rate risk are presented below along with their corresponding maturities.
Investment Type Fair Value Less than 1 year
Certificates of Deposit $1,000,467 $1,000,467
Investment Maturities (in years)
-15-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 2 – DEPOSITS AND INVESTMENTS:(CONTINUED)
Fair Value Measurements: Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The Authority
categorizes its fair value measurements within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.
The Authority maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable
inputs are inputs that market participants would use in pricing the asset or liability based on market data
obtained from independent sources. Unobservable inputs reflect assumptions that market participants would use
in pricing the asset or liability based on the best information available in the circumstances. The fair value
hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels as follows:
Level 1. Quoted prices (unadjusted) for identical assets or liabilities in active markets that a
government can access at a measurement date
Level 2. Directly or indirectly observable inputs for the asset or liability other than quoted prices
Level 3. Unobservable inputs that are supported by little or no market activity for the asset or
liability
Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market
participants use to make valuation decisions, including assumptions about risk.
Quoted Prices in Significant Significant
Active Markets Other Observable Unobservable
for Identical Assets Inputs Inputs
Investment 6/30/2020 (Level 1)(Level 2)(Level 3)
Certificates of Deposit 1,000,467$ 1,000,467$ -$ -$
Fair Value Measurement Using
-16-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 3 – CAPITAL ASSETS:
A summary of changes in capital assets for the six months ended June 30, 2020 follows:
As Restated,
Beginning Ending
Balance Increases Decreases Balance
Capital assets, not being depreciated:
Land $388,900 $- $- $388,900
Construction in progress 5,329,792 84,071 - 5,413,863
Total capital assets, not being depreciated $5,718,692 $84,071 $- $5,802,763
Capital assets, being depreciated:
Machinery, equipment, and vehicles $1,305,788 $39,028 $- $1,344,816
Water systems 24,173,232 10,478 - 24,183,710
Sewer systems 11,867,424 - - 11,867,424
Pump stations 976,900 - - 976,900
Tanks and wells 4,686,900 - - 4,686,900
Buildings and improvements 986,763 - - 986,763
Total capital assets being depreciated $43,997,007 $49,506 $- $44,046,513
Accumulated depreciation:
Machinery, equipment, and vehicles $(423,040) $(25,167) $- $(448,207)
Water systems (7,681,207) (183,130) - (7,864,337)
Sewer systems (4,096,790) (89,904) - (4,186,694)
Pump stations (323,500) (7,401) - (330,901)
Tanks and wells (1,639,551) (35,507) - (1,675,058)
Buildings and improvements (456,753) (7,682) - (464,435)
Total accumulated depreciation $(14,620,841) $(348,791) $- $(14,969,632)
Capital assets, being depreciated, net $29,376,166 $(299,285) $- $29,076,881
Capital assets, net $35,094,858 $(215,214) $- $34,879,644
-17-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 4 – LONG-TERM OBLIGATIONS:
The following is a summary of long-term obligation transactions of the Authority for the six months ended June
30, 2020:
As Restated,
Balance Increases/Decreases/Balance
December 31, 2019 Issuances Retirements June 30, 2020
Compensated absences $- $37,364 $(16,013) $21,351
Net OPEB liabilities 68,000 36,327 (27,015) 77,312
Total $68,000 $73,691 $(43,028) $98,663
Details of long-term obligations:
Amount
Balance Due Within
Outstanding One Year
Other Obiligations
Compensated absences $21,351 $16,013
Net OPEB liabilities 77,312 -
Total Other Obligations $98,663 $16,013
Total Long-term Obiligations $98,663 $16,013
-18-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 5 – PENSION PLAN:
Plan Description
All full-time, salaried permanent employees of the Pittsylvania County Service Authority are automatically
covered by a VRS Retirement Plan upon employment. This is an agent multiple-employer plan administered by
the Virginia Retirement System (the System) along with plans for other employer groups in the Commonwealth of
Virginia. Members earn one month of service credit for each month they are employed and for which they and
their employer pay contributions to VRS. Members are eligible to purchase prior service, based on specific
criteria as defined in the Code of Virginia, as amended. Eligible prior service that may be purchased includes
prior public service, active military service, certain periods of leave, and previously refunded service.
Benefit Structures
The System administers three different benefit structures for covered employees –Plan 1, Plan 2 and Hybrid.
Each of these benefit structures has different eligibility criteria, as detailed below.
a.Employees hired before July 1, 2010, vested as of January 1, 2013, and have not taken a refund, are
covered under Plan 1, a defined benefit plan. Non-hazardous duty employees are eligible for an
unreduced retirement benefit beginning at age 65 with at least 5 years of service credit or age 50 with at
least 30 years of service credit. Non-hazardous duty employees may retire with a reduced benefit as
early as age 55 with at least 5 years of service credit or age 50 with at least 10 years of service credit.
b.Employees hired on or after July 1,2010, or their membership date is before July 1, 2010, and they were
not vested as of January 1, 2013 are covered under Plan 2, a defined benefit plan. Non-hazardous duty
employees are eligible for an unreduced benefit beginning at their normal social security retirement age
with at least 5 years of service credit or when the sum of their age plus service credit equals 90. Non-
hazardous duty employees may retire with a reduced benefit as early as age 60 with at least 5 years of
service credit.
c.Non-hazardous duty employees hired on or after January 1, 2014 are covered by the Hybrid Plan
combining the features of a defined benefit plan and a defined contribution plan. Plan 1 and Plan 2
members also had the option of opting into this plan during the election window held January 1 –April
30, 2014 with an effective date of July 1, 2014.Employees covered by this plan are eligible for an
unreduced benefit beginning at their normal social security retirement age with at least 5 years of
service credit, or when the sum of their age plus service credit equals 90. Employees may retire with a
reduced benefit as early as age 60 with at least 5 years of service credit. For the defined contribution
component, members are eligible to receive distributions upon leaving employment, subject to
restrictions.
-19-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 5 – PENSION PLAN:(CONTINUED)
Average Final Compensation and Service Retirement Multiplier
The VRS defined benefit is a lifetime monthly benefit based on a retirement multiplier as a percentage of the
employee’s average final compensation multiplied by the employee’s total service credit. Under Plan 1, average
final compensation is the average of the employee’s 36 consecutive months of highest compensation and the
multiplier is 1.70% for non-hazardous duty employees, 1.85% for sheriffs and regional jail superintendents.Under
Plan 2, average final compensation is the average of the employee’s 60 consecutive months of highest
compensation and the retirement multiplier is 1.65% for non-hazardous duty employees, 1.85% for sheriffs and
regional jail superintendents.Under the Hybrid Plan, average final compensation is the average of the
employee’s 60 consecutive months of highest compensation and the multiplier is 1.00%. For members who opted
into the Hybrid Retirement Plan from Plan 1 or Plan 2, the applicable multipliers for those plans will be used to
calculate the retirement benefit for service credited in those plans.
Cost-of-Living Adjustment (COLA) in Retirement and Death and Disability Benefits
Retirees with an unreduced benefit or with a reduced benefit with at least 20 years of service credit are eligible
for an annual COLA beginning July 1 after one full calendar year from the retirement date.Retirees with a
reduced benefit and who have less than 20 years of service credit are eligible for an annual COLA beginning on
July 1 after one calendar year following the unreduced retirement eligibility date.Under Plan 1, the COLA
cannot exceed 5.00%. Under Plan 2 and the Hybrid Plan, the COLA cannot exceed 3.00%.The VRS also provides
death and disability benefits. Title 51.1 of the Code of Virginia,as amended, assigns the authority to establish
and amend benefit provisions to the General Assembly of Virginia.
Employees Covered by Benefit Terms
As of the June 30, 2018 actuarial valuation, the following employees were covered by the benefit terms of the
pension plan:
Number
Inactive members or their beneficiaries currently receiving benefits 2
Active members 6
Total covered employees 8
-20-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 5 – PENSION PLAN:(CONTINUED)
Contributions
The contribution requirement for active employees is governed by §51.1-145 of the Code of Virginia, as
amended, but may be impacted as a result of funding options provided to political subdivisions by the Virginia
General Assembly. Employees are required to contribute 5.00% of their compensation toward their retirement.
The Pittsylvania County Service Authority’s contractually required employer contribution rate for the year ended
June 30, 2020 was 10.03%of covered employee compensation. This rate was based on an actuarially determined
rate from an actuarial valuation as of June 30, 2017.
This rate, when combined with employee contributions, was expected to finance the costs of benefits earned by
employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions
to the pension plan from the Pittsylvania County Service Authority were $37,786 and $35,840 for the years ended
June 30, 2020 and June 30, 2019, respectively.
Net Pension Asset
The net pension asset (NPA)is calculated separately for each employer and represents that particular
employer’s total pension liability determined in accordance with GASB Statement No. 68, less that employer’s
fiduciary net position. For Pittsylvania County Service Authority, the net pension asset was measured as of June
30, 2019. The total pension liability used to calculate the net pension asset was determined by an actuarial
valuation performed as of June 30, 2018, rolled forward to the measurement date of June 30, 2019.
Actuarial Assumptions –General Employees
The total pension liability for General Employees in the Pittsylvania County Service Authority’s Retirement Plan
was based on an actuarial valuation as of June 30, 2018, using the Entry Age Normal actuarial cost method and
the following assumptions, applied to all periods included in the measurement and rolled forward to the
measurement date of June 30,2019.
Inflation 2.50%
Salary increases, including inflation 3.50% – 5.35%
Investment rate of return 6.75%, net of pension plan investment
expenses, including inflation*
* Administrative expenses as a percent of the market value of assets for the last experience study were found to
be approximately 0.06% of the market assets for all of the VRS plans. This would provide an assumed investment
return rate for GASB purposes of slightly more than the assumed 6.75%. However, since the difference was
minimal, and a more conservative 6.75% investment return assumption provided a projected plan net position
that exceeded the projected benefit payments, the long-term expected rate of return on investments was
assumed to be 6.75% to simplify preparation of pension liabilities.
-21-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 5 – PENSION PLAN:(CONTINUED)
Actuarial Assumptions –General Employees (Continued)
Mortality rates:
All Others (Non-10 Largest) – Non-Hazardous Duty:15% of deaths are assumed to be service-related
Pre-Retirement:
RP-2014 Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with scale
BB to 2020; males 95% of rates; females 105% of rates.
Post-Retirement:
RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with scale
BB to 2020; males set forward 3 years; females 1.0% increase compounded from ages 70 to 90.
Post-Disablement:
RP-2014 Disability Mortality Rates projected with scale BB to 2020; males set forward 2 years, 110% of
rates; females 125% of rates.
The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial
experience study for the period from July 1, 2012 through June 30, 2016, except the change in the discount
rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as
a result of the experience study and VRS Board action are as follows:
All Others (Non-10 Largest) –Non-Hazardous Duty:
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-
2014 projected to 2020
Retirement Rates Lowered rates at older ages and changed final
retirement from 70 to 75
Withdrawal Rates Adjusted rates to better fit experience at each year
age and service through 9 years of service
Disability Rates Lowered rates
Salary Scale No change
Line of Duty Disability Increased rate from 14.00% to 15.00%
Discount Rate Decreased rate from 7.00% to 6.75%
-22-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 5 – PENSION PLAN:(CONTINUED)
Long-Term Expected Rate of Return
The long-term expected rate of return on pension System investments was determined using a log-normal
distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net
of pension System 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 weighting the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation. The target asset allocation
and best estimate of arithmetic real rates of return for each major asset class are summarized in the following
table:
Weighted
Arithmetic Average
Long-term Long-term
Target Expected Expected
Asset Class (Strategy)Allocation Rate of Return Rate of Return*
Public Equity 34.00%5.61%1.91%
Fixed Income 15.00%0.88%0.13%
Credit Strategies 14.00%5.13%0.72%
Real Assets 14.00%5.27%0.74%
Private Equity 14.00%8.77%1.23%
MAPS - Multi-Asset Public Strategies 6.00%3.52%0.21%
PIP - Private Investment Partnership 3.00%6.29%0.19%
Total 100.00%5.13%
Inflation 2.50%
Expected arithmetic nominal return*7.63%
* The above allocation provides a one-year return of 7.63%. However, one-year returns do not take into account
the volatility present in each of the asset classes. In setting the long-term expected return for the system,
stochastic projections are employed to model future returns under various economic conditions. The results
provide a range of returns over various time periods that ultimately provide a median return of 7.11%, including
expected inflation of 2.50%.The VRS Board elected a long-term rate of 6.75% which is roughly at the 40th
percentile of expected long-term results of the VRS fund asset allocation.
-23-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 5 – PENSION PLAN:(CONTINUED)
Discount Rate:
The discount rate used to measure the total pension liability was 6.75%. The projection of cash flows used to
determine the discount rate assumed that System member contributions will be made per the VRS Statutes and
the employer contributions will be made in accordance with the VRS funding policy at rates equal to the
difference between actuarially determined contribution rates adopted by the VRS Board of Trustees and the
member rate.Consistent with the phased-in funding provided by the General Assembly for state and teacher
employer contributions; the Pittsylvania County Service Authority was also provided with an opportunity to use
an alternative employer contribution rate. For the year ended June 30, 2019, the alternate rate was the
employer contribution rate used in FY 2012 or 100%of the actuarially determined employer contribution rate
from the June 30, 2017 actuarial valuations, whichever was greater. From July 1, 2019,on, participating
employers are assumed to continue to contribute 100% of the actuarially determined contribution rates. Based
on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all
projected future benefit payments of current active and inactive employees. Therefore,the long-term expected
rate of return was applied to all periods of projected benefit payments to determine the total pension liability.
Changes in Net Pension Liability (Asset)
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability (Asset)
(a)(b)(a) - (b)
Balances at June 30, 2018 $1,914,809 $1,771,440 $143,369
Changes for the year:
Service cost $21,048 $- $21,048
Interest 130,771 - 130,771
Differences between expected
and actual experience (356,597) - (356,597)
Assumption changes 47,244 - 47,244
Contributions - employer - 115,413 (115,413)
Contributions - employee - 46,444 (46,444)
Net investment income - 127,126 (127,126)
Benefit payments, including refunds (93,306) (93,306) -
Administrative expenses - (1,106) 1,106
Other changes - (78) 78
Net changes $(250,840) $194,493 $(445,333)
Balances at June 30, 2019 $1,663,969 $1,965,933 $(301,964)
Increase (Decrease)
-24-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 5 – PENSION PLAN:(CONTINUED)
Sensitivity of the Net Pension Asset to Changes in the Discount Rate
The following presents the net pension asset of the Pittsylvania County Service Authority using the discount rate
of 6.75%, as well as what the Pittsylvania County Service Authority‘s net pension asset would be if it were
calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher
(7.75%) than the current rate:
1% Decrease Current Discount 1% Increase
(5.75%)(6.75%)(7.75%)
Pittsylvania County Service Authority's
Net Pension Liability (Asset)(86,976)$ (301,964)$ (474,785)$
Rate
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
For the year ended June 30, 2020, the Pittsylvania County Service Authority recognized pension expense of
$(109,331). At June 30, 2020, the Pittsylvania County Service Authority reported deferred outflows of resources
and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience $19,805 $402,913
Change in assumptions 39,422 1,580
Net difference between projected and actual
earnings on pension plan investments - 20,785
Employer contributions subsequent to the
measurement date 37,786 -
Total $97,013 $425,278
-25-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 5 – PENSION PLAN:(CONTINUED)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions (Continued)
$37,786 reported as deferred outflows of resources related to pensions resulting from the Pittsylvania County
Service Authority’s contributions subsequent to the measurement date will be recognized as a reduction of the
Net Pension Liability in the fiscal year ending June 30, 2021. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension expense in future
reporting periods as follows:
Year Ended June 30
2021 $(76,519)
2022 (91,457)
2023 (80,834)
2024 (63,973)
2025 (51,217)
Thereafter (2,051)
Pension Plan Data
Information about the VRS Political Subdivision Retirement Plan is also available in the separately issued VRS
2019 Comprehensive Annual Financial Report (CAFR). A copy of the 2019 VRS CAFR may be downloaded from the
VRS website at http://www.varetire.org/pdf/publications/2019-annual-report.pdf, or by writing to the System’s
Chief Financial Officer at P.O. Box 2500, Richmond, VA 23218-2500.
NOTE 6 – OTHER POSTEMPLOYMENT BENEFITS - HEALTHCARE PLAN:
Plan Description
In addition to the pension benefits,the Authority participates in a cost-sharing defined benefit healthcare plan,
the Pittsylvania County Post-Retirement Medical Plan (PPRMP). Several entities participate in the defined
benefit healthcare plan through the County of Pittsylvania,Virginia and the participating entities report their
proportionate information on the basis of a cost-sharing plan. The benefit provisions, including employer and
employee contributions, are governed by the Pittsylvania County Board of Supervisors and can be amended
through Board action. The PPRMP does not issue a publicly available financial report.
-26-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 6 – OTHER POSTEMPLOYMENT BENEFITS - HEALTHCARE PLAN:(CONTINUED)
Benefits Provided
PPRMP provides health insurance benefits to eligible retirees and their spouses. To be eligible,employees must
meet the age and service criteria for retirement benefits under VRS, which requires that the employee be (1)
age 50 with 10 years of service; (2) age 55 with 5 years of service; or (3) age 65 with 5 years of service.
Additionally, the employee must be of full-time status in VRS and must be covered by the active plan at the time
of retirement. Coverage continues as documented below:
Medical Coverage:
o Retiree pays 100% of Pre-65 premium.
o Retiree pays 100% of spousal Pre-65 premium.
o Medicare eligible retirees pay 100% of carve out premium for retiree and spouse.
o Effective 10/1/2017, the County no longer allows post 65 retirees to elect coverage but still
has 4 retirees that are grandfathered into the plan.
Dental Coverage:
o Retiree pays 100% of employee premium less $12 monthly County credit.
o Retiree pays 100% of premium for spouse.
o Coverage stops at death.
Contributions
The Authority does not pre-fund benefits; therefore, no assets are accumulated in a trust fund.The current
funding policy is to pay benefits directly from general assets on a pay-as-you-go basis. The funding requirements
are established and may be amended by the Pittsylvania County Board of Supervisors. The amount paid by the
Authority for OPEB as the benefits came due during the year ended June 30, 2020 was $19,000.
Actuarial Assumptions
The total OPEB liability in the July 1, 2019 actuarial valuation was determined using the following actuarial
assumptions,applied to all periods included in the measurement, unless otherwise specified:
Salary Increases 2.50% as of July 1, 2019
Participation Rate 50% of active participants who retire at age 50 or greater are assumed to
elect coverage in retirement. 25 % of their spouses are assumed to elect
coverage in retirement. 100% of actives who become disabled are assumed
to elect coverage.
Discount Rate 3.13% as of July 1, 2019
Medical Trend Rate The healthcare trend rate assumption starts at 6.67% for 2020 decreasing
by 0.33% per year to an ultimate rate of 5.00%.
Retirement Age Retirement is assumed to occur beginning once a participant attains age 55
and completes 5 years of service or age 50 and completes 10 years of
service.
Mortality Rates The mortality rates were based on the RP-2014 Mortality Table fully
generational, with base year 2006, projected using two-dimensional
mortality improvement scale MP-2019.
-27-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 6 – OTHER POSTEMPLOYMENT BENEFITS - HEALTHCARE PLAN:(CONTINUED)
Actuarial Assumptions (Continued)
The actuarial assumptions used in the July 1,2019 valuation were based on July 1, 2019 valuation data. The
methods, assumptions, and participant data used can be found in the July 1, 2019 actuarial valuation report.
Discount Rate
The discount rate used to measure the total OPEB liability was 3.13%based on the Fidelity Index’s “20-year
Municipal GO AA Index” as of July 1, 2019.
Sensitivity of the Employer’s Proportionate Share of the Total OPEB Liability to Changes in the Discount
Rate
The following amounts present the total OPEB liability of the Authority, as well as what the total OPEB liability
would be if it were calculated using a discount rate that is one percentage point lower (2.13%) or one
percentage point higher (4.13%) than the current discount rate:
1% Decrease Current Discount 1% Increase
(2.13%)(3.13%)(4.13%)
46,206$ 42,000$ 38,226$
Sensitivity of the Employer’s Proportionate Share of the Total OPEB Liability to Changes in the Healthcare
Cost Trend Rates
The following presents the total OPEB liability of the Authority as well as what the total OPEB liability would be
if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage
point higher than the current healthcare cost trend rates:
1% Decrease Current 1% Increase
(5.67%)(6.67%)(7.67%)
37,566$ 42,000$ 47,257$
Healthcare Cost Trend Rates
Total OPEB Liability, OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources
At June 30, 2020, the Authority reported a liability of $42,000 for its proportionate share of the total OPEB
Liability. The total OPEB Liability was measured as of July 1, 2019 and the total OPEB liability used to calculate
the total OPEB Liability was determined by an actuarial valuation as of July 1, 2019. At June 30, 2020 and 2019,
the Authority’s proportion was 0.454% and 0.461%,respectively.
For the year ended June 30, 2020, the Authority recognized OPEB expense in the amount of $5,000.
-28-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 6 – OTHER POSTEMPLOYMENT BENEFITS - HEALTHCARE PLAN:(CONTINUED)
Total OPEB Liability, OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources
(Continued)
At June 30, 2020, the employer reported deferred outflows of resources and deferred inflows of resources
related to the OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $13,000 $-
Change in assumptions - 2,000
Employer contributions subsequent to the
measurement date 19,000 -
Total $32,000 $2,000
$19,000 reported as deferred outflows of resources related to the OPEB resulting from the employer’s
contributions subsequent to the measurement date will be recognized as a reduction of the Net OPEB Liability in
the fiscal year ending June 30, 2021. Other amounts reported as deferred outflows of resources and deferred
inflows of resources related to the OPEB will be recognized in the OPEB expense in future reporting periods as
follows:
Year Ended June 30
2021 $1,000
2022 1,000
2023 1,000
2024 2,000
2025 2,000
Thereafter 4,000
Additional disclosures on changes in total OPEB liability, related ratios, and employer contributions can be found
in the required supplementary information following the notes to the financial statements.
-29-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 7 – GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN):
Plan Description
The Group Life Insurance (GLI)Plan was established pursuant to §51.1-500 et seq. of the Code of Virginia, as
amended, and which provides the authority under which benefit terms are established or may be amended. All
full-time,salaried permanent employees of the state agencies, teachers, and employees of participating
political subdivisions are automatically covered by the VRS GLI Plan upon employment.This is a cost-sharing
multiple-employer plan administered by the Virginia Retirement System (the System),along with pensions and
other OPEB plans, for public employer groups in the Commonwealth of Virginia.
In addition to the Basic GLI benefit, members are also eligible to elect additional coverage for themselves as
well as a spouse or dependent children through the Optional GLI Plan. For members who elect the optional group
life insurance coverage, the insurer bills employers directly for the premiums. Employers deduct these premiums
from members’ paychecks and pay the premiums to the insurer. Since this is a separate and fully insured plan, it
is not included as part of the GLI Plan OPEB.
The specific information for GLI OPEB, including eligibility, coverage and benefits is described below:
Eligible Employees
The GLI Plan was established July 1, 1960, for state employees, teachers, and employees of political subdivisions
that elect the plan. Basic GLI coverage is automatic upon employment. Coverage ends for employees who leave
their position before retirement eligibility or who take a refund of their accumulated retirement member
contributions and accrued interest.
Benefit Amounts
The GLI Plan is a defined benefit plan with several components. The natural death benefit is equal to the
employee’s covered compensation rounded to the next highest thousand and then doubled. The accidental
death benefit is double the natural death benefit. In addition to basic natural and accidental death benefits, the
plan provides additional benefits provided under specific circumstances that include the following: accidental
dismemberment benefit, safety belt benefit, repatriation benefit, felonious assault benefit, and accelerated
death benefit option. The benefit amounts are subject to a reduction factor. The benefit amount reduces by 25%
on January 1 following one calendar year of separation. The benefit amount reduces by an additional 25% on
each subsequent January 1 until it reaches 25% of its original value. For covered members with at least 30 years
of service credit, the minimum benefit payable was set at $8,000 by statute in 2015. This will be increased
annually based on the VRS Plan 2 cost-of-living adjustment calculation. The minimum benefit adjusted for the
COLA was $8,463 as of June 30, 2020.
-30-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 7 – GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN):(CONTINUED)
Contributions
The contribution requirements for the GLI Plan are governed by §51.1-506 and §51.1-508 of the Code of Virginia,
as amended, but may be impacted as a result of funding provided to state agencies and school divisions by the
Virginia General Assembly. The total rate for the GLI Plan was 1.31% of covered employee compensation. This
was allocated into an employee and an employer component using a 60/40 split. The employee component was
0.79% (1.31% x 60%) and the employer component was 0.52% (1.31% x 40%). Employers may elect to pay all or
part of the employee contribution;however, the employer must pay all of the employer contribution.Each
employer’s contractually required employer contribution rate for the year ended June 30, 2020 was 0.52% of
covered employee compensation. This rate was based on an actuarially determined rate from an actuarial
valuation as of June 30, 2017. The actuarially determined rate, when combined with employee contributions,
was expected to finance the costs of benefits payable during the year, with an additional amount to finance any
unfunded accrued liability.Contributions to the Group Life Insurance Plan from the entity were $2,186 and
$2,165 for the years ended June 30, 2020 and June 30, 2019, respectively.
GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to the GLI Plan OPEB
At June 30,2020, the entity reported a liability of $35,312 for its proportionate share of the Net GLI OPEB
Liability. The Net GLI OPEB Liability was measured as of June 30, 2019 and the total GLI OPEB liability used to
calculate the Net GLI OPEB Liability was determined by an actuarial valuation performed as of June 30, 2018,
and rolled forward to the measurement date of June 30, 2019. The covered employer’s proportion of the Net GLI
OPEB Liability was based on the covered employer’s actuarially determined employer contributions to the GLI
Plan for the year ended June 30, 2019 relative to the total of the actuarially determined employer contributions
for all participating employers.At June 30, 2019,the participating employer’s proportion was 0.00217% as
compared to 0.00169%at June 30, 2018.
For the year ended June 30, 2020, the participating employer recognized GLI OPEB expense of $1,346.Since
there was a change in proportionate share between measurement dates, a portion of the GLI OPEB expense was
related to deferred amounts from changes in proportion.
-31-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 7 – GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN): (CONTINUED)
GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to the GLI Plan OPEB: (Continued)
At June 30, 2020, the employer reported deferred outflows of resources and deferred inflows of resources
related to the GLI OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience $2,348 $457
Net difference between projected and actual
earnings on GLI OPEB plan investments - 725
Change in assumptions 2,229 1,065
Changes in proportion 6,404 2,326
Employer contributions subsequent to the
measurement date 2,186 -
Total $13,167 $4,573
$2,186 reported as deferred outflows of resources related to the GLI OPEB resulting from the employer’s
contributions subsequent to the measurement date will be recognized as a reduction of the Net GLI OPEB
Liability in the fiscal year ending June 30, 2021. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to the GLI OPEB will be recognized in the GLI OPEB expense in future
reporting periods as follows:
Year Ended June 30
2021 $655
2022 655
2023 962
2024 1,612
2025 1,929
Thereafter 595
-32-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 7 – GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN):(CONTINUED)
Actuarial Assumptions
The total GLI OPEB liability was based on an actuarial valuation as of June 30, 2018, using the Entry Age
Normal actuarial cost method and the following assumptions, applied to all periods included in the
measurement and rolled forward to the measurement date of June 30, 2019. The assumptions include
several employer groups as noted below. Salary increases and mortality rates included herein are for
relevant employer groups. Information for other groups can be referenced in the VRS CAFR.
Inflation 2.50%
Salary increases, including inflation:
Locality - General employees 3.50%-5.35%
Investment rate of return 6.75%, net of investment expenses,
including inflation*
*Administrative expenses as a percent of the market value of assets for the last experience study were found to
be approximately 0.06% of the market assets for all of the VRS plans. This would provide an assumed investment
return rate for GASB purposes of slightly more than the assumed 6.75%. However, since the difference was
minimal, and a more conservative 6.75% investment return assumption provided a projected plan net position
that exceeded the projected benefit payments, the long-term expected rate of return on investments was
assumed to be 6.75% to simplify preparation of OPEB liabilities.
Mortality Rates –Non-Largest Ten Locality Employers –General Employees
Pre-Retirement:
RP-2014 Employee Rates to age 80, Healthy Annuitant Rates to 81 and older projected with scale BB to
2020; males 95% of rates; females 105% of rates.
Post-Retirement:
RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with scale BB
to 2020; males set forward 3 years; females 1.0% increase compounded from ages 70 to 90.
Post-Disablement:
RP-2014 Disability Mortality Rates projected with scale BB to 2020; males set forward 2 years, 110% of
rates; females 125% of rates.
-33-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 7 – GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN):(CONTINUED)
Actuarial Assumptions: (Continued)
Mortality Rates –Non-Largest Ten Locality Employers –General Employees: (Continued)
The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial
experience study for the period from July 1, 2012 through June 30, 2016, except the change in the discount
rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as
a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-
2014 projected to 2020
Retirement Rates Lowered retirement rates at older ages and
extended final retirement age from 70 to 75
Withdrawal Rates Adjusted termination rates to better fit
experience at each age and service year
Disability Rates Lowered disability rates
Salary Scale No change
Line of Duty Disability Increased rate from 14.00% to 15.00%
Discount Rate Decreased rate from 7.00% to 6.75%
NET GLI OPEB Liability
The net OPEB liability (NOL) for the GLI Plan represents the plan’s total OPEB liability determined in accordance
with GASB Statement No. 74, less the associated fiduciary net position. As of the measurement date of June 30,
2019, NOL amounts for the GLI Plan are as follows (amounts expressed in thousands):
GLI OPEB
Plan
Total GLI OPEB Liability $3,390,238
Plan Fiduciary Net Position 1,762,972
GLI Net OPEB Liability (Asset)$1,627,266
Plan Fiduciary Net Position as a Percentage
of the Total GLI OPEB Liability 52.00%
The total GLI OPEB liability is calculated by the System’s actuary, and each plan’s fiduciary net position is
reported in the System’s financial statements. The net GLI OPEB liability is disclosed in accordance with the
requirements of GASB Statement No. 74 in the System’s notes to the financial statements and required
supplementary information.
-34-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 7 – GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN):(CONTINUED)
Long-Term Expected Rate of Return
The long-term expected rate of return on the System’s investments was determined using a log-normal
distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net
of System’s 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 weighting the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation. The target asset allocation
and best estimate of arithmetic real rates of return for each major asset class are summarized in the following
table:
Weighted
Arithmetic Average
Long-term Long-term
Target Expected Expected
Asset Class (Strategy)Allocation Rate of Return Rate of Return*
Public Equity 34.00%5.61%1.91%
Fixed Income 15.00%0.88%0.13%
Credit Strategies 14.00%5.13%0.72%
Real Assets 14.00%5.27%0.74%
Private Equity 14.00%8.77%1.23%
MAPS - Multi-Asset Public Strategies 6.00%3.52%0.21%
PIP - Private Investment Partnership 3.00%6.29%0.19%
Total 100.00%5.13%
Inflation 2.50%
Expected arithmetic nominal return*7.63%
*The above allocation provides a one-year return of 7.63%. However, one-year returns do not take into account
the volatility present in each of the asset classes. In setting the long-term expected return for the system,
stochastic projections are employed to model future returns under various economic conditions. The results
provide a range of returns over various time periods that ultimately provide a median return of 7.11%, including
expected inflation of 2.50%.The VRS Board elected a long-term rate of 6.75% which is roughly at the 40th
percentile of expected long-term results of the VRS fund asset allocation.
Discount Rate
The discount rate used to measure the total GLI OPEB liability was 6.75%. The projection of cash flows used to
determine the discount rate assumed that member contributions will be made per the VRS guidance and the
employer contributions will be made in accordance with the VRS funding policy at rates equal to the difference
between actuarially determined contribution rates adopted by the VRS Board of Trustees and the member rate.
Through the fiscal year ended June 30, 2019, the rate contributed by the entity for the GLI OPEB will be subject
to the portion of the VRS Board-certified rates that are funded by the Virginia General Assembly which was 100%
of the actuarially determined contribution rate. From July 1, 2019 on, employers are assumed to continue to
contribute 100% of the actuarially determined contribution rates. Based on those assumptions, the GLI OPEB’s
-35-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 7 – GROUP LIFE INSURANCE (GLI) PLAN (OPEB PLAN): (CONTINUED)
Discount Rate: (Continued)
fiduciary net position was projected to be available to make all projected future benefit payments of eligible
employees. Therefore,the long-term expected rate of return was applied to all periods of projected benefit
payments to determine the total GLI OPEB liability.
Sensitivity of the Employer’s Proportionate Share of the Net GLI OPEB Liability to Changes in the
Discount Rate
The following presents the employer’s proportionate share of the net GLI OPEB liability using the discount rate
of 6.75%, as well as what the employer’s proportionate share of the net GLI OPEB liability would be if it were
calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher
(7.75%) than the current rate:
1% Decrease Current Discount 1% Increase
(5.75%)(6.75%)(7.75%)
Pittsylvania County Service Authority's
share of the GLI Plan
Net OPEB Liability 46,390$ 35,312$ 26,328$
Rate
GLI Plan Fiduciary Net Position
Detailed information about the GLI Plan’s Fiduciary Net Position is available in the separately issued VRS 2019
Comprehensive Annual Financial Report (CAFR). A copy of the 2019 VRS CAFR may be downloaded from the VRS
website at http://www.varetire.org/pdf/publications/2019-annual-report.pdf, or by writing to the System’s
Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
NOTE 8 – AGGREGATE OPEB TOTALS
Deferred Deferred Net OPEB OPEB
Outflows Inflows Liability Expense
Authority's Stand-Alone Plan (Note 6)$32,000 $2,000 $42,000 $5,000
VRS OPEB - Group Life Insurance (GLI) Pla n (Note 7) 13,167 4,573 35,312 1,346
Totals $45,167 $6,573 $77,312 $6,346
NOTE 9 – DUE FROM OTHER GOVERNMENTS:
On October 11, 2018, Tropical Storm Michael caused major flooding in Pittsylvania County resulting in significant
damage to Authority owned infrastructure requiring major repairs.Through a federal disaster declaration,
federal assistance funds in the amount of $276,091 were granted to the Authority, of which $145,276 was
received in March 2020. The remaining funds are expected to be received soon after year end.
-36-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 9 – DUE FROM OTHER GOVERNMENTS: (CONTINUED)
The Authority has entered into an intergovernmental agreement related to certain water and sewer customers
within the Town of Chatham, Virginia. The Authority pays the Town monthly estimated operation costs related
to those customers and annually a true up is calculated and paid. As of June 30, 2020, the true-up showed an
amount due from the Town to the Authority for overpayment of $56,016.
NOTE 10 – RELATED PARTIES:
The Authority is a component unit of Pittsylvania County. Other support provided by Pittsylvania County, Virginia
is included in contributed capital. See Note 11 regarding the County’s contribution to the Authority as of June
30, 2020. In addition, the County rents fire hydrants from the Authority. As of June 30, 2020,the County paid
the Authority $78,800 for fire hydrant rentals.
NOTE 11- CONTRIBUTED CAPITAL
Contributions received from Pittsylvania County, private corporations, individuals, and others that are used to
defray a part, or all, of the costs of installing additions to the utility plant or retirement of the related debt, are
credited to contributed capital –contributions in aid of construction. The Authority reports cash and non-cash
contributions as part of non-operating revenues (expenses). Contributed capital for the six months ended June
30, 2020 consisted of the following:
Pittsylvania County Contributions:
Noncash contribution - construction in progress $52,271
NOTE 12- CAPITAL LEASE RECEIVABLE
The Town of Gretna annexed a portion of Pittsylvania County which incorporated water lines belonging to
Pittsylvania County Service Authority. In 2013, the Town contracted to purchase those line that now lie inside
the corporate limits of the Town through a capital lease. The lease obligation requires the Town to make annual
payments of $25,000 for a period of fourteen years for a total of $350,000. The loan was interest free. If the
Town defaults on this obligation, the facilities would revert back to the Authority. A summary of the annual
maturities on the lease receivable for the next five years and thereafter is as follows:
Year Principal
2021 $25,000
2022 25,000
2023 25,000
2024 25,000
2025 25,000
2026 25,000
$150,000
-37-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 13- UNEARNED REVENUE
Water and sewer connection fees paid in advance for services related to incomplete water and sewer line
projects.
Water connection fees $42,494
Sewer connection fees 27,230
Total $69,724
NOTE 14 – RISK MANAGEMENT:
The Authority is exposed to various risks of loss related to torts;theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters. The Authority participates with other localities in a public entity
risk pool for its coverage of general liability, property, equipment,crime and auto insurance with the Virginia
Municipal League (VML) Insurance Programs. Each member of this risk pool jointly and severally agrees to
assume, pay and discharge any liability. The Authority pays the Risk Pool contributions and assessments into a
designated cash reserve fund out of which expenses of the pool, claims and awards are to be paid. In the event
of the loss,deficit or depletion of all available funds, the pool may assess all members in the proportion to
which the premium of each bears to the total premiums of all members in the year in which such deficit occurs.
Settled claims resulting from these risks have not exceeded coverage in any of the past three fiscal years.
NOTE 15 – LITIGATION:
As of June 30, 2020, there were no matters of litigation involving the Authority which would materially affect
the Authority’s financial position should any court decisions on pending matters not be favorable.
Although, the Authority does not have any pending matters of litigation there are two outstanding consent
orders the Authority received from the Virginia Department of Health subsequent to June 30, 2020. The
Authority was unable to estimate the financial impact as it responds to the consent orders as required.
NOTE 16 - RESTATEMENT OF BEGINNING NET POSITION
The Authority changed their year end from December 31 to June 30.This implementation resulted in the
following restatement of net position:
Net Position, December 31, 2019, as previously stated 38,883,249$
Correction of FEMA receivable (19,821)
Correction of investments (15,449)
Construction aid refund - Pittslyvania County 23,000
Net pension related items 23,838
Net OPEB related items (45,000)
Correction of capital assets, net of accumulated depreciation (106,749)
Correction of capital lease receivable 16,868
Net Position, June 30, 2020, as restated 38,759,936$
-38-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 17 – SUBSEQUENT EVENTS
The full impact of the COVID-19 outbreak continues to evolve as of the release date of this report. As such, the
full magnitude that the pandemic will have on the Authority’s financial condition, liquidity, and future results of
operations is uncertain. Management is monitoring the global situation and impact that it may have on its
financial condition, liquidity,operations, suppliers, industry, and workforce. Given the daily evolution of the
COVID-19 outbreak and global responses to curb its spread, the Authority is not able to estimate the effects of
the COVID-19 outbreak on its results of operations, financial condition, or liquidity for fiscal year 2021.
In August 2020, the Authority voted to begin the dissolution process with plans for the Authority to revert to the
Pittsylvania County Public Works department and operate as part of Pittsylvania County,Virginia.
In August 2020, the Authority approved an engineering contract in the amount of $183,339 to update the
Authority’s master plan and provide a billing rate analysis.
NOTE 18 – UPCOMING PRONOUNCEMENTS:
Statement No. 84, Fiduciary Activities, establishes criteria for identifying fiduciary activities of all state and
local governments for accounting and financial reporting purposes and how those activities should be reported.
The requirements of this Statement are effective for reporting periods beginning after December 15, 2019.
Statement No. 87, Leases, requires recognition of certain lease assets and liabilities for leases that previously
were classified as operating leases and recognized as inflows of resources or outflows of resources based on the
payment provisions of the contract.It establishes a single model for lease accounting based on the foundational
principle that leases are financings of the right to use an underlying asset.The requirements of this Statement
are effective for reporting periods beginning after June 15, 2021.
Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period, provides
guidance for reporting capital assets and the cost of borrowing for a reporting period and simplifies accounting
for interest cost incurred before the end of a construction period. The requirements of this Statement are
effective for reporting periods beginning after December 15, 2020.
Statement No. 90,Majority Equity Interests –An Amendment of GASB Statements No, 14 and No. 61, provides
guidance for reporting a government’s majority equity interest in a legally separate organization and for
reporting financial statement information for certain component units. The requirements of this Statement are
effective for reporting periods beginning after December 15, 2019.
Statement No. 91, Conduit Debt Obligations, provides a single method of reporting conduit debt obligations by
issuers and eliminates diversity in practice associated with (1) commitments extended by issuers, (2)
arrangements associated with conduit debt obligations, and (3) related note disclosures. The requirements of
this Statement are effective for reporting periods beginning after December 15, 2021.
Statement No. 92, Omnibus 2020, addresses practice issues that have been identified during implementation and
application of certain GASB Statements. This Statement addresses a variety of topics such as leases, assets
related to pension and postemployment benefits, and reference to nonrecurring fair value measurements of
assets or liabilities in authoritative literature. The effective dates differ by topic, ranging from January 2020 to
periods beginning after June 15, 2021.
-39-
PITTSYLVANIA COUNTY SERVICE AUTHORITY
(A COMPONENT UNIT OF PITTSYLVANIA COUNTY, VIRGINIA)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS OF JUNE 30,2020
NOTE 18 – UPCOMING PRONOUNCEMENTS:(CONTINUED)
Statement No. 93, Replacement of Interbank Offered Rates, establishes accounting and financial reporting
requirements related to the replacement of Interbank Offered Rates (IBORs) in hedging derivative instruments
and leases. It also identifies appropriate benchmark interest rates for hedging derivative instruments. The
requirements of this Statement, except for removal of London Interbank Offered Rate (LIBOR) as an appropriate
benchmark interest rate and the requirements related to lease modifications, are effective for reporting periods
beginning after June 15, 2020. The removal of LIBOR as an appropriate benchmark interest rate is effective for
reporting periods ending after December 31, 2021. All requirements related to lease modifications in this
Statement are effective for reporting periods beginning after June 15, 2021.
Statement No. 94,Public-Private and Public-Public Partnerships and Availability of Payment Arrangements,
addresses issues related to public-private and public-public partnership arrangements. This Statement also
provides guidance for accounting and financial reporting for availability payment arrangements. The
requirements of this Statement are effective for reporting periods beginning after June 15, 2022.
Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs),(1) defines a SBITA; (2)
establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding
subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments,
including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. The requirements
of this Statement are effective for reporting periods beginning after June 15, 2022.
Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal
Revenue Code (IRC)Section 457 Deferred Compensation Plans –an Amendment of GASB Statements No. 14 and
No. 84, and a Supersession of GASB Statement. No 32, (1) increases consistency and comparability related to
reporting of fiduciary component units in certain circumstances; (2) mitigates costs associated with the
reporting of certain plans as fiduciary component units in fiduciary fund financial statements; and (3) enhances
the relevance,consistency, and comparability of the accounting and financial reporting for Section 457 plans
that meet the definition of a pension plan and for benefits provided through those plans. The effective dates
differ based on the requirements of the Statement,ranging from June 2020 to reporting periods beginning after
June 15, 2021.
Management is currently evaluating the impact these standards will have on the financial statements when
adopted.
-40-
Required Supplementary Information
Exhibit 4
Employer's
Proportionate Share
Employer's of the Net GLI OPEB
Employer's Proportionate Liability (Asset)Plan Fiduciary
Proportion of the Share of the Employer's as a Percentage of Net Position as a
Net GLI OPEB Net GLI OPEB Covered Covered Payroll Percentage of Total
Liability (Asset) Liability (Asset)Payroll (3)/(4)GLI OPEB Liability
(2)(3)(4)(5)(6)
0.00217%$35,312 $416,299 8.48%52.00%
0.00169%26,000 321,278 8.09%51.22%
0.00169%23,000 288,762 7.97%48.86%
Pittsylvania County Service Authority
Schedule of Authority's Share of Net OPEB Liability
Group Life Insurance (GLI) Plan
For the Measurement Dates of June 30, 2017 through June 30, 2019
Schedule is intended to show information for 10 years.Information prior to the 2017 valuation is not available. However,
additional years will be included as they become available.
Date
(1)
2019
2017
2018
(A Component Unit of Pittsylvania County, Virginia)
-41-
Exhibit 5
Contributions in
Relation to Contributions
Contractually Contractually Contribution Employer's as a % of
Required Required Deficiency Covered Covered
Contribution Contribution (Excess)Payroll Payroll
Date (1)(2)(3)(4)(5)
2020 $2,186 $2,186 $- $420,458 0.52%
2019 2,165 2,165 - 416,299 0.52%
2018 1,671 1,671 - 321,278 0.52%
2017 1,501 1,501 - 288,762 0.52%
2016 1,582 1,582 - 329,614 0.48%
2015 1,677 1,677 - 349,361 0.48%
2014 1,631 1,631 - 339,769 0.48%
2013 1,513 1,513 - 315,234 0.48%
2012 866 866 - 309,307 0.28%
2011 866 866 - 309,307 0.28%
Pittsylvania County Service Authority
Schedule of Employer Contributions
Group Life Insurance (GLI) Plan
For the Years Ended December 31, 2011 - December 31, 2019 and
(A Component Unit of Pittsylvania County, Virginia)
Six Months Ended June 30, 2020
-42-
Exhibit 6
Non-Largest Ten Locality Employers - General Employees
Lowered disability rates
No change
Increased rate from 14.00% to 15.00%
Decreased rate from 7.00% to 6.75%
Retirement Rates
Line of Duty Disability
Discount Rate
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014 projected
to 2020
Disability Rates
Salary Scale
Lowered retirement rates at older ages and extended final
retirement age from 70 to 75
Withdrawal Rates Adjusted termination rates to better fit experience at each age
and service year
Pittsylvania County Service Authority
Notes to Required Supplementary Information
Group Life Insurance (GLI) Plan
For the Six Months Ended June 30, 2020
Changes of benefit terms – There have been no actuarially material changes to the System benefit provisions
since the prior actuarial valuation.
Changes of assumptions –The actuarial assumptions used in the June 30, 2018 valuation were based on the
results of an actuarial experience study for the period from July 1, 2012 through June 30, 2016,except the
change in the discount rate,which was based on VRS Board action effective as of July 1, 2019.Changes to the
actuarial assumptions as a result of the experience study and VRS Board action are as follows:
(A Component Unit of Pittsylvania County, Virginia)
-43-
Exhibit 7
2019 2018 2017
Total OPEB liability
Service cost $2,000 $1,000 $1,000
Interest 1,000 2,000 1,000
Changes in assumptions 1,000 (4,000) -
Differences between expected and actual experience 15,000 (1,000) -
Benefit payments (19,000) (1,000) (1,000)
Net change in total OPEB liability $- $(3,000) $1,000
Total OPEB liability - beginning 42,000 45,000 44,000
Total OPEB liability - ending $42,000 $42,000 $45,000
Covered employee payroll $277,538 $281,284 $237,426
Authority's total OPEB liability (asset) as a percentage of
covered employee payroll 15.13%14.93%18.95%
Pittsylvania County Service Authority
Schedule of Changes in Total OPEB Liability (Asset) and Related Ratios
Health Insurance
For the Measurement Dates of July 1, 2017 through July 1, 2019
Schedule is intended to show information for 10 years. Additional years will be included as they become available.
(A Component Unit of Pittsylvania County, Virginia)
-44-
Exhibit 8
Valuation Date:7/1/2019
Measurement Date:7/1/2019
No assets are accumulated in a trust that meets the criteria in GASB 75 to pay related benefits.
Methods and assumptions used to determine OPEB liability:
(A Component Unit of Pittsylvania County, Virginia)
3.13% as of July 1, 2019
Retirement Age Retirement is assumed to occur beginning once a participant
attains age 55 and completes 5 years of service or age 50 and
completes 10 years of service.
Participation Percentage 50%of active participants who retire at age 50 or greater are
assumed to elect coverage in retirement.25%of their
spouses are assumed to elect coverage in retirement.100%
of actives who become disabled are assumed to elect
coverage.
Pittsylvania County Service Authority
Notes to Required Supplementary Information - Health Insurance OPEB
For the Six Months Ended June 30, 2020
Mortality Rates The mortality rates were based on the RP-2014 Mortality
Table fully generational,with base year 2006,projected
using two-dimensional mortality improvement scale MP-2019.
Inflation 2.50% per year as of July 1, 2019
Healthcare Trend Rate The healthcare trend rate assumption starts at 6.67%for
2020 decreasing by 0.33%per year to an ultimate rate of
5.00%
Salary Increase Rates The salary increase is 2.50% as of July 1, 2019
Actuarial Cost Method Entry age normal
Discount Rate
-45-
Exhibit 9
2019 2018 2017 2016 2015 2014
Total Pension Liability
Service cost 21,048$ 20,107$ 19,435$ 27,777$ 31,208$ 31,135$
Interest 130,771 136,924 130,513 126,793 131,883 126,310
Difference between expected and actual experience (356,597) (152,601) 56,007 5,964 (154,659) -
Changes of assumptions 47,244 - (4,784) - - -
Benefit payments (93,306) (91,360) (127,811) (86,966) (75,324) (80,333)
Net change in pension liability (250,840)$ (86,930)$ 73,360$ 73,568$ (66,892)$ 77,112$
Total pension liability - beginning 1,914,809 2,001,739 1,928,379 1,854,811 1,921,703 1,844,591
Total pension liability - ending (a)1,663,969$ 1,914,809$ 2,001,739$ 1,928,379$ 1,854,811$ 1,921,703$
Plan Fiduciary Net Position
Contributions - employer 115,413$ 28,739$ 25,785$ 41,412$ 44,592$ 40,398$
Contributions - employee 46,444 14,819 13,469 15,618 16,637 16,988
Net investment income 127,126 124,329 189,835 27,309 70,507 212,701
Benefit payments (93,306) (91,360) (127,811) (86,966) (75,324) (80,333)
Administrator charges (1,106) (1,091) (1,162) (1,006) (966) (1,154)
Other (78) (110) (166) (12) (14) 11
Net change in plan fiduciary net position 194,493$ 75,326$ 99,950$ (3,645)$ 55,432$ 188,611$
Plan Fiduciary Net Position - beginning 1,771,440 1,696,114 1,596,164 1,599,809 1,544,377 1,355,766
Plan Fiduciary Net Position - ending (b)1,965,933$ 1,771,440$ 1,696,114$ 1,596,164$ 1,599,809$ 1,544,377$
Authority's net pension liability/(asset) - ending (a) - (b)(301,964)$ 143,369$ 305,625$ 332,215$ 255,002$ 377,326$
Plan fiduciary net position as a percentage of the total pension liability 118.15%92.51%84.73%82.77%86.25%80.37%
Covered payroll 416,299$ 321,278$ 288,762$ 329,614$ 349,361$ 339,769$
Authority's net pension liability/(asset) as a percentage of covered payroll -72.54%44.62%105.84%100.79%72.99%111.05%
Schedule is intended to show information for 10 years. Information prior to the 2014 valuation is not available. However, additional years will be included as they become available.
Pittsylvania County Service Authority
Schedule of Changes in Net Pension Liability (Asset) and Related Ratios
For the Measurement Dates of June 30, 2014 through June 30, 2019
(A Component Unit of Pittsylvania County, Virginia)-46-
Exhibit 10
Date
(1)(2)(3)(4)(5)
2020 37,786$ 37,786$ -$ 420,458$ 8.99%
2019 35,840 35,840 - 416,299 8.61%
2018 28,739 28,739 - 321,278 8.95%
2017 25,785 25,785 - 288,762 8.93%
2016 41,412 41,412 - 329,614 12.56%
2015 44,592 44,592 - 349,361 12.76%
2014 40,398 40,398 - 339,769 11.89%
2013 50,560 50,560 - 315,234 16.04%
2012 44,252 44,252 - 309,307 14.31%
2011 46,489 46,489 - 309,307 15.03%
Pittsylvania County Service Authority
Schedule of Employer Contributions - Pension
For the Years Ended December 31, 2011 - December 31, 2019 and Six Months Ended June 30, 2020
Contributions as a
% of Covered
Payroll
(2)/(4)
Employer's
Covered Payroll
Contribution
Deficiency (Excess)
(1) - (2)
Contributions in
Relation to
Contractually
Required
Contribution
Contractually
Required
Contribution
(A Component Unit of Pittsylvania County, Virginia)
-47-
Exhibit 11
All Others (Non 10 Largest) – Non-Hazardous Duty:
Lowered rates
No change
Increased rate from 14.00% to 15.00%
Decreased rate from 7.00% to 6.75%
Pittsylvania County Service Authority
Notes to Required Supplementary Information - Pension
For the Six Months Ended June 30, 2020
Changes of benefit terms – There have been no actuarially material changes to the System benefit provisions since
the prior actuarial valuation.
Changes of assumptions –The actuarial assumptions used in the June 30, 2018 valuation were based on the results
of an actuarial experience study for the period from July 1, 2012 through June 30, 2016,except the change in the
discount rate,which was based on VRS Board action effective as of July 1, 2019.Changes to the actuarial
assumptions as a result of the experience study and VRS Board action are as follows:
(A Component Unit of Pittsylvania County, Virginia)
Line of Duty Disability
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014 projected
to 2020
Retirement Rates Lowered rates at older ages and changed final retirement from
70 to 75
Withdrawal Rates
Disability Rates
Salary Scale
Discount Rate
Adjusted rates to better fit experience at each year age and
service through 9 years of service
-48-
COMPLIANCE SECTION
Independent Auditors’ Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
To the Board of Commissioners
Pittsylvania County Service Authority
Chatham, Virginia
We have audited, in accordance with the auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards,issued
by the Comptroller General of the United States; and the Specifications for Audits of Authorities, Boards
and Commissions, issued by the Auditor of Public Accounts of the Commonwealth of Virginia, the financial
statements of the business-type activities of Pittsylvania County Service Authority, a component unit of
Pittsylvania County, Virginia,as of and for the six months ended June 30, 2020, and the related notes to the
financial statements, which collectively comprise Pittsylvania County Service Authority’s basic financial
statements and have issued our report thereon dated November 17, 2020.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered Pittsylvania County Service
Authority’s internal control over financial reporting (internal control) a basis for designing audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of Pittsylvania County
Service Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of
Pittsylvania County Service Authority’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and
correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of
deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of
the entity’s financial statements will not be prevented,or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
-49-
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Pittsylvania County Service Authority’s financial
statements are free from material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the financial statements.However, providing an opinion on compliance with
those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Blacksburg, Virginia
November 17, 2020
-50-
MEMO TO: PCSA Board of Commissioners
RE: Background Information Regarding Proposed
EDA Public Works Funding Application
FROM: Chris Adcock, Director of Public Works
DATE: December 4, 2020
In June, we were made aware of potential funding opportunities through the Economic
Development Administration’s (EDA) Economic Adjustment Assistance Program through the
CARES Act (Coronavirus Aid, Relief, and Economic Security Act).
We proposed a few projects and sent those to the West Piedmont Planning District Commission
(WPPDC), who helps to coordinate any potential funding through the EDA. After discussion
and review of the projects, it was recommended that two of the projects may be good candidates
for funding through the EDA Disaster Resiliency Funding or Public Work Program. None of the
proposed projects were determined to be good candidates through the CARES Act funding since
there was not a strong connection with pandemic impacts.
The suggested projects are outlined in the attached Preliminary Engineering Report (PER). The
EDA Disaster Funding program proposed by the WPPDC requires a 50% funding match from
the participating organization. If the Board is in favor of making the application, we need a
resolution stating that the funding match is “available, unrestricted, and unencumbered”.
The total cost of the construction cost of the proposed projects (with 15% contingency) is
$2,017,000. Engineering, inspection, surveying, and other administrative costs would add
another approximately $543,000. I feel these estimates are on the high end.
Attachment: PER – Pump Station Improvements, Brockway Sewer Improvements.
Preliminary Engineering Report
Pittsylvania County Public Works
Pump Stations Improvements and
Brockway Sewer Improvements Pittsylvania County, VA November 2020
Prepared By:
Dewberry
551 Piney Forest Road
Danville, Virginia 24540
434-797-4497
PITTSYLVANIA COUNTY PUBLIC WORKS
EDA PRELIMINARY ENGINEERING REPORT
PROJECT#50090774
TABLE OF CONTENTS 2
TABLE OF CONTENTS
C.1 DESCRIPTION OF PROJECT COMPONENTS 3
Pump Stations Improvements 3
Exhibit 1 – Pump Stations Map 5
Brockway Sewer Improvements 7
Exhibit 2 – Brockway Sewer Map 8
C.2 STATEMENT 9
C.3 DRAWINGS 9
C.4 FEASILBILITY ANALYSIS 9
C.5 METHOD OF CONSTRUCTION 9
C.6 CONSTRUCTION CONTRACTS 9
C.7 COST ESTIMATE 10
Overall Project 10
Mount Hermon HWY 41 Water Booster Station 11
Hodnetts Mill Sewer Pump Station 12
Ragsdale Sewer Pump Station 13
Vista Point Sewer Pump Station 14
Blairs (eToys) Sewer Pump Station 15
Brockway Pump Station Decommissioning and Sewer Upgrade 16
Critical Pump Station Improvements 16
C.8 PROPERTY ACQUISITION 17
C.9 PERMITS 17
C.10 SCHEDULE 17
C.11 PROJECT BUDGET 17
PCPW – EDA PER – Pump Stations and Brockway Sewer Upgrade 3
PITTSYLVANIA COUNTY PUBLIC WORKS
PRELIMINARY ENGINEERING REPORT
C.1 Description of Project Components
The proposed project includes two components: improvements to aging pump stations in the system;
and decommissioning of the Brockway pump station and extension of sewer to serve the existing
customers. Two exhibits are attached as page 5 and 8, and an overall project cost is provided below for
reference:
• Exhibit 1: Pump Stations Improvements
• Exhibit 2: Brockway Pump Station Decommissioning and Sewer Improvements
Construction Cost + Contingency $2,017,422
Engineering + Survey $282,439
Miscellaneous Project Soft Cost $260,871
Project Total $2,560,732
Pump Stations Improvements
Pittsylvania County Public Works (PCPW) owns and operates fifteen (15) sewer pump stations and five
(5) water booster pump stations within the service area. These pump stations range in age, installation
dating from 1978 to 2011, and the overall condition and reliability of the existing infrastructure was
previously undocumented. To address critical deficiencies and plan for management of these assets,
PCPW hired Dewberry to inspect each of these stations, document deficiencies, develop a weighted
reliability decision matrix for ranking each pump station, and develop recommendations for critical
capital improvement needs, as well as establish cost projections to be used by PCPW in a 5-year capital
improvements plan. The findings from this investigation were documented in a 2019 report titled “PCSA
Pump Stations Condition Assessment”, which can be provided for reference to EDA as necessary.
Given the age of many of the stations and the minimal replacement of parts over the years of operation,
PCPW comprehensively investigated the pump stations in the service area to develop an appropriate
capital improvements plan for long term reliability. In addition to a condition and reliability assessment,
PCPW desires an integrated SCADA system for remote monitoring with limited control capability at
pump stations providing critical service. Currently, select stations have an autodialer for communication
in the event of an overflow, but at many locations they are not functional. PCPW currently has no
means to identify malfunction and high-level alarms at these stations outside of physical inspection. To
develop a properly integrated SCADA system, components including software options, remote terminal
units (RTUs) and telemetry were also included in the comprehensive condition assessment. This was the
first priority capital improvement, and with COVID-19 relief funds allocated to Pittsylvania County, this
remote monitoring SCADA system for all sewer pump stations was purchased and is currently being
installed. The focus is now on critical reliability improvements to the pump stations.
PCPW – EDA PER – Pump Stations and Brockway Sewer Upgrade 4
Provided on the following pages are the ages of all of the pump stations, the reliability matrix that came
out of the pump stations condition assessment, and a map showing the locations of the pump stations
included in this project.
Table C.1-1: Pump Station Installation Dates
Pump Station Name Installation Date
Water Stations
Mount Hermon (HWY 41) 1982
Vista Point (Water) 1983
US 29 North 1987
58 West (Page Road) 1990
Dry Fork Road 2011
Sewer Stations
Brockway 1978
Vista Point (Sewer) 1983
Chatham North Industrial Park 1989
Hodnetts Mill Road 1990
Tightsqueeze (Times Fiber) 1993
Mount Hermon (Laurel Woods) 1994
Blairs (eToys) 2000
Ringgold East Industrial Park 2002
Chatham Middle School 2002
Deercrest Lane 2003
Pine Lake Road 2003
Ragsdale Road 2003
Cross Creek Subdivision 2005
Inca Lane (VIR) 2005
Witcher Road 2009
Hodnett's Mill Road
Blairs (E-toys)
Sewer Station
Brockway Pump
Station
Ragsdale Road (58 West)
Mt. Hermon (Hwy. 41)
Vista Point
Sewer Station
PROJECT PROJ. NO.
TITLE DATE SHEET NO.
DRAWING NO.
REVISION
551 Piney Forest Road
Danville, VA 24540-3353
434.797.4497
Dewberry Engineers Inc.
00000001
ADD00 EXHIBIT 1
50090774
10/26/2020
PCSA PUMP STATIONS CONDITIONS ASSESSMENT
PITTSYLVANIA COUNTY VIRGINIA
SEWAGE LIFT STATIONS OVERALL MAP
10,000'0'20,000'
SCALE: 1" = 10,000'
5,000'
VISTA POINT INSET
SMITH MOUNTAIN LAKE
626
PCPW – EDA PER – Pump Stations and Brockway Sewer Upgrade 6
PUMP STATION RELIABILITY DECISION MATRIX -- MECHANICAL & ELECTRICAL
Attribute Access &
Site
Security
(Fencing,
lighting,
etc.)
Equipment
Shelter/
Building
Wet well,
Hatches &
Mechanical Hoist
Pump
Age/Total
Run Hours
% Reserve
Capacity - P1
(pump run hrs./day and drawdown test)
% Reserve
Capacity - P2
(pump run hrs./day and drawdown test)
Pump
Performance
- P1
Pump
Performance
- P2
Criticality
of Service
Incoming
Power
Service
Pump
Controls Telemetry
Back-up
Power
Availability
/
Emergency
Pump
Connection Other
Weighted
Criticality
Score
Reliability Weight (1-5) 3 4 3 2 2 4 4 4 5 5 4 4 4 5 5 3
Inca Lane (VIR) 2 1 1 2 1 2 1 1 1 1 2 1 1 3 2 2 92
Witcher Road 1 1 3 1 1 1 1 1 1 1 2 1 1 4 2 1 91
Ringgold East Industrial Park 1 4 3 2 1 2 3 1 3 1 2 1 3 4 2 1 135
Brockway Pump Station 5 5 4 4 2 5 2 4 2 4 2 4 4 4 4 3 222
Cross Creek Subdivision 2 3 2 2 1 1 1 1 1 1 2 3 3 3 2 1 112
Mount Hermon (Laurel Woods) 3 4 3 3 2 3 2 2 2 1 5 1 3 4 2 3 162
Blairs (eToys) 2 4 3 3 2 2 2 2 3 5 3 1 3 4 3 3 177
Chatham Middle School 2 3 3 2 1 2 3 3 4 4 2 1 3 4 2 2 165
Tightsqueeze (Times Fiber) 1 3 3 2 1 3 1 1 3 4 2 3 4 4 2 1 154
Chatham North Industrial Park 3 3 3 4 2 4 2 2 1 1 3 1 4 5 3 2 162
Hodnetts Mill Road 3 4 3 4 2 3 3 3 4 4 4 4 2 5 4 3 216
Vista Point 1 3 5 4 2 5 2 2 4 4 3 3 2 5 2 3 194
Deercrest Lane 4 3 3 3 2 3 2 2 2 2 2 1 4 4 2 1 152
Pine Lake Road 4 3 3 2 2 3 2 2 3 3 3 1 4 4 2 2 167
Ragsdale Road 3 3 3 2 2 3 3 3 2 2 5 1 5 5 4 4 195
Mt. Hermon (HWY 41) – WATER 5 5 4 2 2 5 3 3 3 3 5 4 3 4 4 3 226
US HWY 29 North – WATER 2 3 3 4 2 4 2 2 3 3 3 3 2 3 3 2 169
Dry Fork Road – WATER 2 3 1 1 1 1 1 1 1 1 4 1 1 4 3 2 112
Vista Point - WATER 1 2 1 4 3 4 2 2 4 4 3 1 3 4 2 3 167
58 West (Page Road) - WATER 2 2 2 2 2 2 1 1 1 1 2 3 2 3 3 1 115
PCPW – EDA PER – Pump Stations and Brockway Sewer Upgrade 7
Based on the weighted criticality scores, there are six pump stations that are considered to have a poor
rating with regard to the ability of these stations to meet minimum expected reliability standards. These
stations are generally characterized with a weighted criticality scores above 177, and include Highway
41 Water Booster Station (1982), Brockway Sewer Pump Station (1978), Hodnetts Mill Sewer Pump
Station (1990), Ragsdale Sewer Pump Station (2003), Vista Point Sewer Pump Station (1983), and Blairs
(eToys) Sewer Pump Station (2000). The itemized list of improvements for each of these stations can be
found in the unit price cost estimates beginning on page 10.
In addition to these stations, there are other stations that have individual deficiencies that by
themselves are placing the entire station at high risk of failure and release of raw sewage to the
environment; or for a water booster station, a loss of service resulting in interruption of potable water.
These individual deficiencies are generally associated with an attribute having a weighted score of 20 or
above. This generally consists of the following:
• Chatham Middle School Pump Servicing
• Tightsqueeze (Times Fiber) Pump #2 Servicing
• Vista Point Water Well Pump Replacement
• Dry Fork Road Water Booster Station Telemetry (note that the SCADA project only included
sewer stations)
• Vista Point Water Well Pump Station Telemetry (note that the SCADA project only included
sewer stations) Brockway Pump Station Decommissioning and Sewer Upgrade
As a part of the Pump Stations Condition Assessment noted above, it was recommended that the 1978
Brockway Pump Station be completely overhauled due to age, deterioration, and poor reliability of
service. In order to prepare for future development in the Cane Creek Centre and Ringgold East
Industrial Park, PCPW has elected to do the following:
• Take the Brockway Pump Station out of service.
• Reroute gravity sewer from OI Glass to the Cane Creek 24” gravity sewer.
• Extend existing gravity sewer along Cane Creek north to Barker Road, and also a line extension
north to serve Axxor.
• Tie in existing force main from the Ringgold East Industrial Park pump station (behind Axxor) to
proposed gravity sewer at Barker Road.
PROPOSED 3,700LF±8" GRAVITY SEWER TOTIE-IN TO EXISTINGCANE CREEK SEWEREXISTING CANECREEK SEWERBROCKWAY SEWERLIFT STATION TO BEDECOMMISSIONEDRINGGOLD EASTINDUSTRIAL PARKABANDON IN PLACEEXISTING 6" FORCEMAINFROM NEW GRAVITY SEWERTIE-IN TO BROCKWAY PSPROPOSED 1,120LF±12" GRAVITY SEWERTO TIE-IN TO EXISTINGCANE CREEK SEWERABANDON INPLACE EXISTING 6"SEWER SERVICEYORKTOWNCABINETRYO.I. GLASS540560520
AXXOR N.A.FACTORY LNFACTORY LN WILKERSON RDBARKER RDCANE CREEKCENTRE PKWYCANE CREEKCENTRE PKWY12" D.I.24" D.I.(EXTEND GRAVITYSEWER UP TO AXXOR)PROJECT PROJ. NO.
TITLE DATE SHEET NO.
DRAWING NO.
REVISION
551 Piney Forest Road
Danville, VA 24540-3353
434.797.4497
Dewberry Engineers Inc.
00000000
ADD01 EXHIBIT 2
50090774
11/9/2020
PCSA SEWER IMPROVEMENTS
BROCKWAY PUMP STATION DECOMMISSION, FORCEMAIN
ABANDONMENT, AND PROPOSED GRAVITY SEWERABANDON / DEMOLISHPROPOSED GRAVITY SEWEREXISTING GRAVITY SEWEREXISTING FORCEMAINEXISTING WATEREXISTING OVERHEAD ELECTRICPROPERTY LINEFLOOD PLAINWETLAND / STREAMPUMP STATIONLEGENDSSE
PCPW – EDA PER – Pump Stations and Brockway Sewer Upgrade 9
C.2 Statement
The project components described above in Section C.1 and within the attached supplemental report
are consistent with the EDA investment project description provided in Section B.2 of Form ED-900
provided in this funding application.
C.3 Drawings
Included above in C.1 is an overall map indicating the locations of the pump stations with proposed
improvements, and a separate exhibit showing the decommissioning of the Brockway pump station and
related sewer upgrades.
C.4 Feasibility Analysis
All improvements to the existing pump stations will occur within the existing footprint and will not
create any additional constructability concerns.
The proposed Brockway sewer upgrade will include extension of ±3,700 linear feet of 8” gravity sewer
parallel to Cane Creek and ±1,120 linear feet of 12” gravity sewer along the Cane Creek tributary that
parallels Cane Creek Centre Parkway. A wetland delineation was completed in 2007 and a dedicated
sanitary sewer easement was designated for location of this sewer. Since the delineation, confirmation
and easement has been obtained, just a Nationwide Permit 12 will be required to cover any temporary
impacts that construction may have on the creek or wetlands. USACE may have interest in revisiting the
site since the confirmation was completed 13 years ago to verify no significant change to the creek and
wetlands. The wetland impacts are the only foreseeable significant feasibility concern.
Both projects will provide long term increased reliability to the sewer systems that serve Cane Creek
Centre and Ringgold East industries, as well as the surrounding community.
C.5 Method of Construction
Given the scope of work described above, procurement will be a traditional design/bid/build format.
C.6 Construction Contracts
Construction will be awarded to one prime contractor who may elect to hire subcontractors to complete
work. The project may be bid as two separate projects: 1. Pump stations; 2. Brockway sewer upgrade.
PCPW – EDA PER – Pump Stations and Brockway Sewer Upgrade 10
C.7 Cost Estimate
Table C.7-1: Overall Summary of Project Cost
# Description
Raw Construction
Cost
1 Highway 41 Water Booster Station $217,800
2 Hodnetts Mill $273,050
3 Ragsdale Road $228,700
4 Vista Point Sewer Pump Station $256,700
5 Blairs (eToys) $274,390
6 Brockway Decommissioning and Sewer Upgrade $484,100
7 Critical Deficiencies (20+ Weighted Score) $19,540
Construction Total $1,754,280
Construction Subtotal $1,754,280
Contingency (15%) $263,142
Total Construction Cost $2,017,422
Engineering + Survey $282,439
Geotechnical $15,000
Wetland Delineation and Permitting $20,000
Inspection $100,871
Finance Assistance $85,000
Legal and Administrative $40,000
Project Total $2,560,732
PCPW – EDA PER – Pump Stations and Brockway Sewer Upgrade 11
Mount Hermon HWY 41 Booster Station - (MCC above grade only)
LI Description Qty Unit Unit Price Total Price
1 Mobilization 1 LS $19,800 $19,800
2 Decommission Underground Controls and MCC. 1 LS $12,000 $12,000
3 Service/Replace Existing Auxiliary Drywell Equipment 1 LS $15,000 $15,000
4 Pre-Engineered Above-Ground Building 120 SF $325 $39,000
5 Pump Control Panel 1 LS $22,000 $22,000
6 Spare Parts 1 LS $10,000 $10,000
7 Electrical 1 LS $60,000 $60,000
8 Site Lighting 1 LS $10,000 $10,000
9 Site Improvements & Restoration 1 LS $30,000 $30,000
Total $217,800
Contingency (10%) $21,780
Total Construction $239,580
Engineering $26,136
Inspection $10,890
Permitting $6,500
Project Total $283,106
PCPW – EDA PER – Pump Stations and Brockway Sewer Upgrade 12
Hodnetts Mill
LI Description Qty Unit Unit Price Total Price
1 Mobilization 1 LS $17,800 $17,800
2 Bypass pumping 1 LS $18,000 $18,000
3 Pump Down and Clean WW and VV 1 LS $3,000 $3,000
4 Rehab Interior of WW and VV 1 LS $5,000 $5,000
5 Demo Existing Equipment 1 LS $3,750 $3,750
6 Aluminum Equipment Rack and Rain Shield 1 LS $9,500 $9,500
7 Duplex Submersible Pumps 2 EA $12,000 $24,000
8 Miscellaneous Piping, new GVs and CV 1 LS $35,000 $35,000
9 Pump Controls 1 LS $17,500 $17,500
10 Spare Parts 1 LS $6,500 $6,500
11 Replace Generator 1 LS $50,000 $50,000
12 Electrical 1 LS $35,000 $35,000
13 Site Lighting 1 LS $12,500 $12,500
14 Fencing and Security 350 LF $30 $10,500
15 Stormwater Improvements 1 LS $15,000 $15,000
16 Site Restoration 1 LS $10,000 $10,000
Total $273,050
Contingency (10%) $27,305
Total Construction $300,355
Engineering $32,766
Inspection $13,653
Permitting $4,500
Project Total $351,274
PCPW – EDA PER – Pump Stations and Brockway Sewer Upgrade 13
Ragsdale
LI Description Qty Unit Unit Price Total Price
1 Mobilization 1 LS $14,700 $14,700
2 Bypass pumping 1 LS $18,000 $18,000
3 Pump Down and Clean WW and VV 1 LS $1,500 $1,500
4 Rehab Interior of WW and VV 1 LS $10,500 $10,500
5 Demo Existing Equipment 1 LS $10,000 $10,000
6 Aluminum Metal Equipment Rack and Rain Shield 1 LS $9,500 $9,500
7 Service Duplex Submersible Pumps 2 EA $2,750 $5,500
8 Miscellaneous Piping, new GVs and CVs 1 LS $25,000 $25,000
9 Spare Parts 1 LS $6,500 $6,500
10 Generator 1 LS $45,000 $45,000
11 Replace Flow Meter to City 1 LS $20,000 $20,000
12 Electrical 1 LS $22,000 $22,000
13 Site Lighting 1 LS $8,000 $8,000
14 Fencing and Security 500 LF $30 $15,000
15 Access Drive Improvements 1 LS $5,500 $5,500
16 Site Restoration 1 LS $12,000 $12,000
Total $228,700
Contingency (10%) $22,870
Total Construction $251,570
Engineering $27,444
Inspection $11,435
Permitting $1,500
Project Total $291,949
PCPW – EDA PER – Pump Stations and Brockway Sewer Upgrade 14
Vista Point Sewer
LI Description Qty Unit Unit Price Total Price
1 Mobilization 1 LS $22,700 $22,700
2 Bypass pumping 1 LS $7,000 $7,000
3 Demo Pumps and Controls 1 LS $10,000 $10,000
4 New Concrete Wet well and Valve Vault 1 LS $22,000 $22,000
5 New Hatches 2 EA $5,500 $11,000
6 Pre-engineered MCC building 80 SF $350 $28,000
7 Duplex Submersible Pumps 2 EA $9,000 $18,000
8 Miscellaneous Piping, GVs and CVs 1 LS $22,500 $22,500
9 Pump Controls 1 LS $25,000 $25,000
10 Spare Parts 1 LS $2,000 $2,000
11 Generator 1 LS $45,000 $45,000
12 Electrical 1 LS $25,000 $25,000
13 Site Lighting 1 LS $8,500 $8,500
14 Site Restoration & Improvements 1 LS $10,000 $10,000
Total $256,700
Contingency (10%) $25,670
Total Construction $282,370
Engineering $30,804
Inspection $12,835
Permitting $4,500
Project Total $330,509
PCPW – EDA PER – Pump Stations and Brockway Sewer Upgrade 15
Blairs (eToys)
LI Description Qty Unit Unit Price Total Price
1 Mobilization 1 LS $17,890 $17,890
2 Bypass pumping 1 LS $18,000 $18,000
3 Pump Down and Clean WW and VV 1 LS $2,000 $2,000
4 Demo Existing Equipment 1 LS $12,500 $12,500
5 New Valve Vault Hatch 1 EA $4,500 $4,500
6 Aluminum Equipment Rack and Rain Shield 1 LS $9,500 $9,500
7 Duplex Submersible Pumps 2 EA $12,000 $24,000
8 Miscellaneous Piping, new GVs and CVs 1 LS $35,000 $35,000
9 Pump Controls 1 LS $25,000 $25,000
10 Spare Parts 1 LS $2,000 $2,000
11 Generator 1 LS $45,000 $45,000
12 Electrical 1 LS $20,000 $20,000
13 Site Lighting 1 LS $8,500 $8,500
14 Fencing and Security 450 LF $30 $13,500
15 Site Restoration & General Improvements 1 LS $37,000 $37,000
Total $274,390
Contingency (10%) $27,439
Total Construction $301,829
Engineering $32,927
Inspection $13,720
Permitting $1,500
Project Total $349,975
PCPW – EDA PER – Pump Stations and Brockway Sewer Upgrade 16
Brockway Pump Station Decommissioning and Sewer Upgrade
LI Description Unit Qty Unit Price Total Price
1 Mobilization LS 1 $40,000 $40,000
2 Clear and Grub R-O-W LS 1 $22,000 $22,000
3 Erosion and Sediment Control LS 1 $25,000 $25,000
4 Site Improvements & Restoration LS 1 $16,000 $16,000
5 Bypass Pumping/Pump & Haul LS 2 $4,000 $8,000
6 Demo Existing PS, FM, and Equipment & Flowable Fill Under RR LS 1 $24,000 $24,000
7 8" Gravity Sewer LF 3,700 $45 $166,500
8 12" Gravity Sewer LF 1,120 $55 $61,600
9 Manholes (<10 ft) EA 10 $5,000 $50,000
10 Manholes (>10 ft) EA 7 $8,000 $56,000
11 Conventional Jack and Bore 16" Casing LF 75 $200 $15,000
Total $484,100
Contingency (10%) $48,410
Total Construction $532,510
Topographic Survey $10,000
Engineering $33,900
CONA & Inspection $16,500
Plats (2 total @ $2,500 ea) $5,000
Permitting $9,500
Project Total $607,410
Critical Deficiencies (Weighted Score of 20+)
LI Description Qty Unit Unit Price Total Price
1 Chatham Middle School Pump Servicing 2 EA $2,500 $5,000
2 Tightsqueeze (Times Fiber) Pump #2 Servicing 1 EA $2,500 $2,500
3 Vista Point Water Well Pump Replacement 1 EA $1,500 $1,500
4 Dry Fork Road Water Booster Station Telemetry 1 EA $5,270 $5,270
5 Vista Point Water Well Pump Station Telemetry 1 EA $5,270 $5,270
Total $19,540
Contingency (10%) $1,954
Total Construction $21,494
Engineering $1,954
Inspection $977
Project Total $24,425
PCPW – EDA PER – Pump Stations and Brockway Sewer Upgrade 17
C.8 Property Acquisition
Property acquisition will not be required as all upgrades are within existing County‐owned property or
within VDOT right‐of‐way.
C.9 Permits
The following permits will be required for this project:
DEQ Certificate to Construct (CTC)
DEQ Certificate to Operate (CTO)
Pittsylvania County Land Disturbance Permit
DEQ Stormwater Management and Land Disturbance Permit
VDOT Land Use Permit
USACE Nationwide 12 Permit for Sewer Project
C.10 Schedule
C.11 Project Budget
Construction Subtotal $1,754,280
Contingency (15%) $263,142
Total Construction Cost $2,017,422
Engineering + Survey $282,439
Geotechnical $15,000
Wetland Delineation and Permitting $20,000
Inspection $100,871
Finance Assistance $85,000
Legal and Administrative $40,000
Project Total $2,560,732
11121234567891011121234567
PER and EN Submitted to EDA
EDA Funding Acquisition
Design ‐ 50%
Design ‐ 75%
Design ‐ Approvals/Final Bid Set Ready
Advertising and Bidding
Notice of Award
Notice to Proceed
Construction (Substantial Completion)
Final Completion
2020 2021Description 2022
PCSA Pump Stations Condition Assessment
MEMO TO: PCSA Board of Commissioners
RE: Utility Shut Off Update
FROM: Chris Adcock, Director of Public Works
DATE: December 7, 2020
The recent Virginia Budget Bill amendment prohibits municipal utilities from disconnecting
service to residential customers for non-payment of bills or fees until the Governor determines
that the economic and public health conditions have improved such that the prohibition does not
need to be in place, or until at least 60 days after such declared state of emergency ends,
whichever is sooner.
All utilities shall offer a COVID-19 Relief Repayment Plan which shall allow payment of debt
over a minimum period of 6 months and up to 24 months, that the Customer determines is
sustainable and affordable.
Staff made application to the COVID-19 Municipal Utility Relief Program. The State
Corporation Commission will determine, based on all applications received, the amount that each
utility is eligible to receive. The amount received is not guaranteed to cover all arrearages and is
likely to be allocated on a prorated share. Any funds received must be dispersed to the
Customers in accordance with the guidelines and the Customer must self-certify that they are
experiencing economic hardship as a result of the COVID-19 pandemic.
MEMO TO: PCSA Board of Commissioners
RE: COVID-19 Municipal Utility Relief Program
FROM: Chris Adcock, Director of Public Works
DATE: December 7, 2020
Staff made application to the above referenced program and was notified today that it was
awarded $13,773.73 to assist with municipal utility customer relief for all eligible customers of
Pittsylvania County Service Authority who may be experiencing economic hardship due to the
COVID-19 pandemic.
The award letter is attached.
Due to the tight timeline (funds must be used by 12/31), Staff recommends we allocate on a first
come, first served basis, and apply fully to the arrearages owed from the March 1, 2020, through
December 30, 2020 time period (as recommended). As directed in the attached guidance,
Municipal utilities must prioritize assistance first to customers with accounts over 60 days in
arrears and then for accounts 30 days in arrears.
We are requesting approval to accept these grant funds and apply to the identified accounts.
Attachment: Grant Award Letter
December 7, 2020
VIA EMAIL
Chris Adcock
Director of Public Works / PCSA Secretary
Pittsylvania County Service Authority
Re: Award Letter, Guidance, and Required Certification for COVID‐19 Municipal Utility Relief Program to
Assist Customers
Dear Chris Adcock:
On behalf of Governor Northam, it gives me great pleasure to inform you that Pittsylvania County Service
Authority has been awarded federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) funds
pursuant to the Appropriation Act mandated State Corporation Commission application process in the
amount of $13,773.73 to assist with municipal utility customer relief for all eligible customers of
Pittsylvania County Service Authority. This funding is being provided under CFDA 21.019 – Coronavirus
Relief Funds (CRF). Additional details concerning this program including guidance, requirements, and
several model forms are included in the following pages.
Additional guidance concerning this program has been included with this letter, including a model
customer intake form. Please read this carefully before proceeding with additional steps. Given the tight
timeline for utilization of these funds and to ensure each utility directly receives these funds in an
expedited manner you must return the attached certification in partnership with a city or county that will
act as the fiscal agent to receive the funds from the Department of Accounts (DOA) and the city or county
will then forward funds to the municipal utility to implement the program for the utility’s customers. Once
the project is complete, DOA will follow up regarding project outcomes and compliance. I want to reiterate
that it is incumbent on Pittsylvania County Service Authority and the partnering city or county to ensure
project expenses are properly documented and verified in case of audit.
For questions contact DHCD staff member David Conmy at utility@dhcd.virginia.gov.
Sincerely,
Erik Johnston
Director, Virginia Department of Housing and Community Development
CC: David Von Moll, Comptroller, Department of Accounts
Encl: COVID‐19 Municipal Utility Relief Program Guidance, Certification Form and Addendum, and
Model Customer Intake Form
COVID‐19 MUNICIPAL UTILITY RELIEF PROGRAM:
Guidance and Required Certification
Based on the response that the Virginia State Corporation Commission (SCC) received from your
utility system in the Application for Coronavirus Relief Funds (Municipal Utilities), the SCC has
determined your award amount which is reflected in your award letter. Accordingly, the award
letter, guidance, and required certification will serve as the next steps in facilitating this program.
Fundamentally, the goal of this program is to assist municipal utility customers experiencing
economic hardship due to the COVID‐19 pandemic. As such, and because quick action is
essential in order to address the public health needs of municipal utility customers, your award
amount must be disbursed through a partnering county or city that will serve as the fiscal agent
with the Department of Accounts (DOA) disbursing funds and having responsibility for sub
recipient monitoring. Consequently, municipal utility systems, especially those that are not
directly managed by a city or a county, will need to partner with a city or county to serve as the
fiscal agent for this program. Cities and counties may serve as the fiscal agent for more than one
municipal utility system. In order to receive your CRF funding for this program, the chief
administrative officer for the partnering city or county and the authorized official representing
the municipal utility will be required to certify their respective organization’s participation in this
program and its adherence to all associated CARES Act regulations. A standard certification for
this program requiring signatures from both officials on behalf of their respective organizations
has been included near the end of this document.
Please note that the U.S. Treasury guidance requires attestation by utility customers of the
COVID-19 economic hardship, which means utilities will need to collect and save these
customer attestations before forgiving eligible arrearages.
Any customer – with the exception of any government entity – shall be eligible for such arrearage
assistance. Municipal utilities are encouraged to pay the full amount of arrearages owed by
eligible customers that apply for arrearages owed from the March 1, 2020, through December
30, 2020 time period. Funds can only be used to provide direct assistance to customer accounts
over 30 days in arrears during the covered period. Municipal utilities must prioritize assistance
first to customers with accounts over 60 days in arrears and then for accounts 30 days in arrears.
Municipal utilities are also encouraged to use their discretion to establish a maximum award
amount for non‐residential customers to ensure the majority of the available assistance awarded
is not awarded to large customers. Arrearage assistance programs must strive for equity in
program outreach to all customers and should focus outreach efforts on COVID‐19 impacted
customers.
The SCC has calculated the proportional share of available funding for each municipal utility
system that applied by the SCC’s November 30th application deadline. This information was
forwarded to DHCD, which is facilitating the award letter and certification process for municipal
utilities and their partnering city or county. These certifications will be accepted by DHCD on a
rolling basis after the date your award letter was distributed. The awarded municipal utility and
their city or county fiscal agent will be required to certify to abide by U.S. Treasury guidance
and other regulatory matters concerning the use of CRF funds. The intent is for this allocation
to pass through the county or city directly to the municipal utility to serve eligible municipal
utility customers. The municipal utility as the customer utility relief program operator should
develop a sub agreement with the county or city fiscal agent assuring the city or county fiscal
agent that the municipal utility will be responsible for compliance with state and federal law.
Upon receipt by DHCD of this certification and award letter from the county/city and municipal
utility, the Department of Accounts (DOA) will then distribute funds directly to cities and
counties, which will serve as the fiscal agent on behalf of their partner municipal utility(ies).
DOA will also be the lead state agency working with the city or county and their partnered
utility system(s) on monitoring to ensure compliance with the program and federal guidelines.
All applicants must certify that all administrative expenses for direct program implementation
and direct relief provided to eligible customer arrearages for the covered time period March 1,
2020 – December, 30 2020 will be expended and any unspent funds returned to DOA by COB
Friday January 29, 2021.
Participating cities and counties may allow municipal utilities and their partners working directly
to implement this program to utilize up to 5% of their allocation for direct administrative costs
to support management of relief programs. Proper recordkeeping on these administrative costs
must also be maintained and made available for auditing purposes.
Additionally, it is important for participating localities to refrain from providing dual benefit to
customers who have already received some level of assistance through other existing programs
funded by the CARES Act for the same months of arrearages. An example is to ensure business
customers have not received utility relief for the same time period through the Rebuild Virginia
Grant Fund or local CARES Act relief.
Please note that approval of a CRF allocation for purposes of this utility arrearage program
does not represent any assurance, legal or otherwise, that the approved project complies with
all federal guidelines related to the use of these funds. Cities and counties in addition to their
partner municipal utility(ies) are strongly encouraged to consult their legal counsel prior to
expending the federal CRF funds that have been awarded through this program.
Chiefly, municipal utilities must justify and document use of CRF funds by assisting customers
who are experiencing economic hardship due to the COVID‐19 pandemic. Therefore, such
applications will require self‐certification by municipal utility customers in order to be
considered eligible for arrearage relief. A standard self‐certification form/questionnaire is
included near the end of this document that cities and counties and their partner municipal
utility(ies) are encouraged to utilize. Documentation of self‐certification for all municipal utility
customers participating in this program is required for state auditing purposes so please
maintain accurate records for all customers receiving support from the program. This
certification may also be collected through other means such as over the phone interviews or
through an online form but should generally be harmonious with the form/questionnaire
provided. Utility Customers may only receive a direct payment subsidy from this award once, per
the state budget requirement. Utilities may not direct any funds provided to new deposits, down
payments, fees, late fees, interest charges or penalties.
Federal CARES Act Guidance:
It is extremely important to know and comply with all of the federal conditions that exist for CRF
allocations. To that end, please refer to the federal guidance and frequently asked questions:
https://home.treasury.gov/system/files/136/Coronavirus‐Relief‐Fund‐Guidance‐for‐State‐
Territorial‐ Local‐and‐Tribal‐Governments.pdf
https://home.treasury.gov/system/files/136/Coronavirus‐Relief‐Fund‐Frequently‐Asked‐
Questions.pdf
This information is routinely updated, so guidance may have changed since you last consulted
it.
Compliance with the federal guidance is the responsibility of the city or county submitting the
application on behalf of a municipal utility and failure to do so could result in disallowed expenses
requiring repayment of the associated funds to the federal government. If the city or county fails
to repay any funds spent for nonqualifying expenses on behalf of a municipal utility as required
by the federal government, the State Comptroller will recover such amounts from future state
payments to the locality via the State Aid Intercept Program. Consequently, cities and counties
are encouraged to develop agreements or memorandums of understanding (MOU) with their
partner municipal utility system(s) to indemnify cities and counties in the event the municipal
utility system does not adhere to U.S. Treasury guidelines and consequently subjects the city or
county to such State Aid Intercept action(s).
In addition to the revised federal guidance, on September 2, 2020, the U.S. Treasury’s Office of
the Inspector General issued information related to reporting and audit requirements.
Information regarding the audit and reporting requirements can be found at the same link
provided above. Further, the State Comptroller’s office (DOA) has sub‐recipient monitoring
responsibilities that will necessitate evaluation and additional correspondence with cities and
counties regarding the use of funds. Again, cities and counties are encouraged to develop MOUs
that will help establish clarity concerning responsibility and accountability among all parties
regarding this requirement.
As a reminder, the overarching federal guidance states that these funds must be used for
qualifying expenses of state and local governments. Specifically, the CARES Act provides that
payments from the CRF may only be used to cover costs that:
1. are necessary expenditures incurred due to the public health emergency with respect
to the Coronavirus Disease 2019 (COVID–19);
2. were not accounted for in the budget most recently approved as of March 27, 2020,
(the date of enactment of the CARES Act) for the State or government; and
3. were incurred during the period that begins on March 1, 2020, and ends on
December 30, 2020.
The federal guidance continues to state that the CRF funds can be used only for the direct costs
associated with the response to the COVID‐19 pandemic and cannot be used to address revenue
shortfalls. CRF funds should be considered "one time" monies and should not be used for ongoing
services and/or base operations. Furthermore, fund payments may not be used for government
revenue replacement, including the replacement of unpaid utility fees. Any unspent funds must
be returned to DOA no later than COB January 29, 2021, so cities and counties working on behalf
of their partner municipal utility(ies) are strongly encouraged to factor that deadline into the
administration of their local programs.
Required Certification
In order to receive the CRF funding amount calculated by SCC, each city and county and their
partner municipal utility system(s) must complete a certification form (also at the end of this
document). The certification form must be signed by the chief administrative officer for the city
or county and the authorized official representing the municipal utility partner. In the event
more than one municipal utility partners with a city or county, a separate certification will be
needed for each partnership.
Before signing the certification, applicants are recommended to read and understand the federal
guidance and the frequently asked questions contained in the links provided in Appendices A and
B, respectively. The most recent information on this guidance and the frequently asked questions
can be obtained at:
https://home.treasury.gov/system/files/136/Coronavirus‐Relief‐Fund‐Guidance‐for‐State‐
Territorial‐ Local‐and‐Tribal‐Governments.pdf
and
https://home.treasury.gov/system/files/136/Coronavirus‐Relief‐Fund‐Frequently‐Asked‐
Questions.pdf
Please note that the certification statement includes an acknowledgment that recipients may not
receive reimbursement or recipients may be required to return funds to the federal government
if it is determined that those funds were spent for purposes that do not qualify. It is important to
understand that the burden of ensuring that all CRF funds are spent for qualifying purposes falls
to the city or county working on behalf of the municipal utility. Again, cities and counties are
encouraged to develop MOUs that will help establish clarity concerning responsibility and
accountability among all parties regarding this requirement.
Awardees are responsible for maintaining all necessary documentation to ensure compliance
with the federal requirements. The State Comptroller is responsible for all sub‐recipient
monitoring and may require additional information in the future from each city or county and/or
their partner municipal utility system(s) to address that responsibility.
If the federal government determines that awardees have used CRF funds for purposes that do
not qualify, awardees must return those funds to the state promptly so that they may be returned
to the federal government. As a condition of receiving CRF funds, awardees agree that the
Commonwealth can use State Aid Intercept to recover any funds from the corresponding city or
county necessary for expenses that were not for a qualifying purpose or not for expenses incurred
during the eligible time period. Consequently, cities and counties are encouraged to develop
agreements or memorandums of understanding (MOU) to indemnify cities and counties in the
event the partner municipal utility system(s) does not adhere to U.S. Treasury guidelines and
consequently subjects the city or county to such State Aid Intercept action(s).
Submission of Certification
The certification form on the next page contains more specific details on the responsibilities of
the city and county and partnered municipal utility.
The signed certification form should be submitted to DHCD through the following web portal:
https://survey.alchemer.com/s3/6053803/COVID‐19‐Municipal‐Utility‐Relief. Certifications will
be accepted on a rolling basis.
If you have any questions regarding the appropriate use of CRF funds, please refer to the U.S.
Treasury Website and guidance linked above. For questions about this process or technical
questions about the certification form or the distribution of the funds, please first refer to the
FAQ documents provided and then send unresolved inquiries to: utility@dhcd.virginia.gov
Certification:
(Please update the yellow highlighted fields as it pertains to your circumstances)
CERTIFICATION for RECEIPT of CORONAVIRUS RELIEF FUND PAYMENTS
by
(CITY OR COUNTY NAME)
on behalf of
(MUNICIPAL UTILITY NAME)
We, the undersigned, represent (CITY OR COUNTY NAME) and are working in partnership with
(MUNICIPAL UTILITY NAME) (the utility), and we certify that:
1. The intent is for this allocation to pass through the county or city directly to the municipal
utility to serve all eligible Virginia municipal utility customers. The customer utility relief
program operator should develop a subagreement with the county or city fiscal agent that
ensures they will be responsible for compliance with state and federal law.
2. We have the authority to request direct payment, on behalf of the utility from the
Commonwealth of Virginia, of revenues from the Coronavirus Relief Fund (CRF) pursuant to
section 601(b) of the Social Security Act, as added by section 5001 of the Coronavirus Aid,
Relief, and Economic Security Act, Pub. L. No. 116‐136, div. A, Title V (Mar. 27, 2020).
3. We understand that the Commonwealth of Virginia will rely on this certification as a material
representation in making a direct payment to the city or county.
4. The city or county and municipal utility's proposed uses of the funds received as direct
payment from the Commonwealth of Virginia under section 601(b) of the Social Security Act
will be used only to cover those costs that:
a. are necessary expenditures incurred due to the public health emergency with respect
to the Coronavirus Disease 2019 (COVID‐19);
b. were not accounted for in the budget most recently approved as of March 27, 2020,
for the utility; and
c. were incurred during the period that begins on March 1, 2020, and ends on December
30, 2020.
5. Any funds that are not expended or that will not be expended on necessary expenditures
incurred before December 30, 2020, by the municipal utility or its grantee(s), must be
returned to Commonwealth of Virginia no later than January 29, 2021, and that the
Commonwealth of Virginia is entitled to invoke State Aid Intercept to recover any such
unexpended funds.
6. We understand that customer attestations of the COVID‐19 economic hardship must be
obtained and saved by the utility relief program before forgiving arrearages.
7. We understand that the municipal utility will not receive continued funding beyond
December 30, 2020, from any source to continue paying expenses or providing services that
were initiated or previously supported from CRF funds prior to December 30, 2020.
8. Funds received as a direct payment from the Commonwealth of Virginia pursuant to this
certification must adhere to official federal guidance issued or to be issued regarding what
constitutes a necessary expenditure.
9. Up to five percent of funds allocated to individual localities may be used for direct
administrative costs to support management of the utility relief programs.
10. Any CRF funds expended by the municipal utility or its grantee(s) in any manner that does not
adhere to official federal guidance or COVID‐19 Municipal Utility Relief Program guidance
shall be returned to the Commonwealth of Virginia within 30 days of a finding that the
expenditure is disallowed, and that the Commonwealth of Virginia is entitled to invoke State
Aid Intercept on the city or county serving as fiscal agent to the partner municipal utility
system to recover any and all such funds that are not repaid within 30 days of a finding that
the expenditure is disallowed.
11. As a condition of receiving the CRF funds pursuant to this certification, the city or county on
behalf of the municipal utility system shall retain documentation of all uses of the funds,
including but not limited to payroll time records, invoices, direct administrative costs, and/or
sales receipts. Such documentation shall be produced to the Commonwealth of Virginia upon
request.
12. The city or county on behalf of the municipal utility system must maintain proper accounting
records to segregate these expenditures from those supported by other fund sources and
that all such records will be subject to audit.
13. Any funds provided pursuant to this certification cannot be used as a revenue replacement
for lower than expected revenue collections from taxes, fees, or any other revenue source.
14. Fund payments may not be used for government revenue replacement, including the
replacement of unpaid municipal utility fees.
15. Any CRF funds received pursuant to this certification will not be used for expenditures for
which the municipal utility and its subrecipients have received funds from any other
emergency COVID‐19 supplemental funding (whether state, federal, or private in nature) for
that same expense nor may CRF funds be used for purposes of matching other federal funds
unless specifically authorized by federal statute, regulation, or guideline.
We certify that we have read the above certification and our statements contained herein are
true and correct to the best of our knowledge.
City or County Chief Administrative Officer
(CAO)
Authorized Official Representing Municipal
Utility Allocated Funds by SCC
Name of City or County: Name of Municipal Utility:
Printed Name of CAO:
Printed Name of Municipal Utility Official:
Signature: Signature:
Title:
Title:
Date: Date:
Please provide city/county DUNS number:__________________________
Please provide municipal utility DUNS number: ______________________
Certification Addendum
(Please update the yellow highlighted fields as it pertains to your circumstances)
Federal Requirements for information to be included in agreement between county/city and municipal
utility
§200.332 Requirements for pass‐through entities.
All pass‐through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the following information at the time of the subaward and if any of these data elements change, include
the changes in subsequent subaward modification. When some of this information is not available, the
pass‐through entity must provide the best information available to describe the Federal award and
subaward. Required information includes:
(1) Federal award identification. (Federal Coronavirus Aid. Relief and Economic Security Act (CARES
ACT, Coronavirus Relief Fund))
(i) Subrecipient name (which must match the name associated with its unique entity identifier);
(Name of Municipal Utility with SCC allocation)
(ii) Subrecipient's unique entity identifier; (Municipal Utility’s DUNS number. If municipal utility
does not have, please note)
(iii) Subaward Period of Performance Start and End Date; (Determined by city/county and utility
given program start date and January 29, 2021, deadline to return funds)
(iv) Subaward Budget Period Start and End Date; (Determined by city/county and utility given
program start date and January 29, 2021, deadline to return funds)
(v) Amount of Federal Funds Obligated by this action by the pass‐through entity to the
subrecipient; (Amount in final award letter)
(vi) Total Amount of Federal Funds Obligated to the subrecipient by the pass‐through entity
including the current financial obligation; (Amount in allocation letter plus any other federal grant to
from county/city to the utility)
(vii) Total Amount of the Federal Award committed to the subrecipient by the pass‐through entity;
(Amount in final award letter plus any other federal grant to from county/city to the utility)
(viii) Federal award project description, as required to be responsive to the Federal Funding
Accountability and Transparency Act (FFATA); (Coronavirus Relief Fund: Municipal Utility Relief Program
to Assist Customers)
(ix) Name of Federal awarding agency, pass‐through entity, and contact information for awarding
official of the Pass‐through entity;(U.S. Treasury Department/County or City/Contact for County or City
Awarding Official)
(x) Assistance Listings number and Title; the pass‐through entity must identify the dollar amount
made available under each Federal award and the Assistance Listings Number at time of disbursement;
(CFDA Number and Title are 21.09, Coronavirus Relief Funds)
(xi) Identification of whether the award is R&D; and (This is not R&D award)
(xii) Indirect cost rate for the Federal award (including if the de minimis rate is charged) per
§200.414. (No indirect costs can be charged by county/city or municipal utility)
Appendix A is available at: https://home.treasury.gov/system/files/136/Coronavirus‐Relief‐Fund‐
Guidance‐for‐State‐Territorial‐ Local‐and‐Tribal‐Governments.pdf
Appendix B is available at: https://home.treasury.gov/system/files/136/Coronavirus‐Relief‐Fund‐
Frequently‐Asked‐ Questions.pdf
GENERAL INFORMATION
1. Date of Customer’s Application:____________________________
2. Account Number or Other Unique Identifier of the Customer Utility Bill: __________________
3. Total Arrearage from March 1, 2020 – December 30, 2020 that is due (Provided by Municipal
Utility with statement demonstrating amount attached):______________________________
4. Street Address (where utility service is provided):
5. City or County (where utility service is provided):
6. State (where utility service is provided):
7. ZIP Code (where utility service is provided):
8. Customer Phone Number:
9. Customer Type:
_____ Residential
_____ Non‐Residential
RESIDENTIAL CUSTOMERS COMPLETE THIS SECTION
1. Name of Residential Account Holder:
_____________________________________
First M.I. Last (Maiden)
2. For residential customers: place mark beside the applicable cause of economic hardship if you
or a person in your household has experienced a loss of income due to the COVID‐19
pandemic (check all that apply):
_____ been laid off;
_____ place of employment has closed;
_____ have experienced a reduction in hours of work;
_____ must stay home to care for children due to closure of day care and/or school;
_____ lost child or spousal support;
COVID‐19 MUNICIPAL UTILITY RELIEF PROGRAM
Utility Arrearage Assistance
Model Customer Intake Form
_____ not been able to work or missed hours due to contracting COVID‐19;
_____ unable to find work due to COVID‐19;
_____ unwilling/unable to participate in previous employment due to high risk of severe
illness from COVID‐19
_____ other (describe) _______________________________________________________
NON‐RESIDENTIAL CUSTOMERS COMPLETE THIS SECTION
1. Name of Non‐Residential Account Holder: _____________________________________
2. Property Name:__________________________
3. Is the utility fee arrearage due to economic hardship experienced by the customer as a result of
the COVID‐19 pandemic? (Check Y/N)
4. ____ YES (Eligible for relief; provide explanation below.)
5. ____ NO (Not eligible for relief.)
6. Provide an explanation of the COVID‐19 related economic hardship:
______________________________________________________________________________
______________________________________________________________________________
CARES Act assistance application may:
- Assist for bills dated March 1, 2020, to December 30, 2020, and may not be used for
past due amounts prior to this time period or after this time period.
- Funding is designed to be a one‐time opportunity, with only one payment per
household (for residential) or account holder and their successors (for non‐
residential).
- Funding can be used for the following bills:
_____ Water
_____ Wastewater
_____ Electric
_____ Gas
Applicant’s Certification:
- I desire to receive any assistance to which I am legally entitled under this program and its specifications.
- I certify that the reason I am eligible for this CARES Act assistance is correct to the best of my knowledge and
belief.
- I understand that my signature on this form gives permission for the staff at (insert name of city or county and
municipal utility) to verify records as necessary to verify my eligibility for assistance.
- I declare to the best of my knowledge that:
o (1) for residential applicants: I am the only person living in the household at the address shown on this
form who has applied for this assistance, or
o (2) for non‐residential applicants: I am the only person who has applied for/on behalf of the non‐
residential account holder, including their successors, at the address shown on this form and that I am
not a government account holder.
- I certify that this customer has not received CARES act relief for any of the arrearages I am applying for from any
other source including Rebuild VA Grants.
- I understand that if I give false information or withhold information in order to make myself eligible for benefits
that I am not entitled to or apply for assistance at more than one site, I can be prosecuted for fraud and/or
denied assistance in the future.
- I understand that the agencies involved in this program may verify all of the information which I have provided.
- I understand and my signature on this form gives permission to (insert name of municipal utility) to which I am
applying to verify information concerning my need for assistance.
- Others?
___________________________________________________ _______________________________________________
Printed Name Signature
___________________________________________________
Title (for non‐residential account holders)
Municipal Utility Intake Information: ACTION TAKEN Screener Date____