HomeMy WebLinkAbout2010-05-17 - Finance-Accounting Committee Meeting Minutes
MINUTES OF THE
YORBA LINDA WATER DISTRICT
FINANCE -ACCOUNTING COMMITTEE MEETING
May 17, 2010
A meeting of the Finance-Accounting Committee was called to order by Director
Summerfield at 4:00 p.m. The meeting was held at the District's Administrative Office at
1717 E Miraloma Ave, Placentia CA 92870.
COMMITTEE STAFF
Director John W. Summerfield, Chair Ken Vecchiarelli, General Manager
Director William R. Mills, Alternate Stephen Parker, Finance Director
1. PUBLIC COMMENTS
None.
2. ACTION CALENDAR
2.1. Import Water Pass Through Rate Increase
Mr. Vecchiarelli distributed a revised agenda report for discussion of this
item. The revisions were drafted subsequent to a conference call with
legal counsel late on Friday, May 14. Mr. Vecchiarelli explained that while
MWDOC has not yet formally adopted their rates, passing through the
MWD increases for the 2010/11 and 2011/12 fiscal years, YLWD may still
pass through MWD's increase for both fiscal years and satisfy the Prop
218 and supporting legislation for pass-through rate increases. Therefore,
the option was presented for a two-year melded rate increase as
requested by the Board at their meeting on May 13, 2010. Under the
legislation, customers must receive at least 30-days notice prior to the
effective date of the proposed rate increase. To satisfy this requirement
while minimizing the cost, staff recommended that the rate increase take
effect on August 1, 2010. This way customer bills could be used to notice
the rate increase rather than using an additional separate mailing. The
Committee discussed the two options to implement a two-year MWD
pass-through rate increase: a $1.94 increase to the monthly service
charge effective January 1, 2011; or a $1.53 increase to the monthly
service charge effective August 1, 2010. After discussing the pros and
cons of both options, the Committee was supportive of either option, and
elected to accept staff's recommendation of the $1.53 increase effective
August 1, 2010.
2.2. Draft Financial Reserves Policy
Mr. Parker presented the draft reserve policy and asked for feedback on
the proposed reserve types and funding levels. The Committee was
comfortable with the language as indicated in the policy, and
recommended bringing the policy to the full Board at the next Board
meeting.
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2.3. March Budget to Actual Results
Mr. Parker presented the March budgeted results and noted that they
were very similar to February's results. Actual revenues and expenses
are both below budgeted figures, primarily because of increased
conservation. Depreciation expense is trending higher than budget
numbers due to project completions, close outs and capitalized
amortization. Other revenues and expenses were generally on target with
budgeted projections. The Committee accepted the monthly investment
report.
2.4. Monthly Investment Report for March 2010
Mr. Parker presented the monthly investment report and noted that a
portion of the money shown as invested in Wells Capital was now placed
in CalTRUST earning a higher yield, but that it would take two more
months for the Committee to see the results in their monthly reports. Mr.
Parker noted further that the quarterly investment information would be
presented to the full Board at their next meeting. The Committee
accepted the monthly investment report.
3. DISCUSSION ITEMS
3.1. Budget Calendar and Progress Update
Mr. Parker presented the revised budget calendar and highlighted that the
budget is proceeding ahead of schedule and that both the draft budget
and a reserve policy will be presented to the full Board in the second
Board meeting of May.
3.2. Monthly Portfolio Reports for March 2010
Mr. Parker presented the Wells Capital monthly report for March and
indicated that there was no longer any money in Wells Capital, as it has
been transferred to CalTRUST. However, the Board will still receive two
more Wells Capital monthly reports for April and part of May.
3.3. Future Agenda Items and Staff Tasks
None.
4. ADJOURNMENT
4.1. The Committee adjourned at 4:50 p.m. The next regular meeting of the
Finance-Accounting Committee will be held on June 14, 2010 at 4:00 p.m.
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