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HomeMy WebLinkAbout2010-06-14 - Finance-Accounting Committee Meeting Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE - ACCOUNTING COMMITTEE MEETING June 14, 2010 A meeting of the Finance-Accounting Committee was called to order by Director Summerfield at 8:00 a.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 Ric Collett Pat Grady, Assistant General Manager Stephen Parker, Finance Director 1. PUBLIC COMMENTS None. 2. ACTION CALENDAR 2.1. April Budget to Actual Results Mr. Vecchiarelli indicated that water conservation through April was almost 8% higher than budgeted, which has resulted in revenues below budget. He also noted that staff has been aggressive to make cuts in supplies and services to help counter that lack of revenues. The Committee accepted the monthly budget to actual results. 2.2. Monthly Investment Report for April 2010 Mr. Parker pointed out that the average days to maturity were only 1, and that this was as a result of Wells Capital liquidating the portfolio in anticipation of moving funds to CaITRUST. Mr. Parker mentioned that the portfolio was completely liquidated by May 15t", and that the next monthly investment report would include funds with CaITRUST. The Committee accepted the monthly investment report. 2.3. Changes to FY 2010/11 Draft Budget Mr. Parker presented the changes to the FY 2010/11 draft budget. Mr. Grady explained that the District was adding a part-time GIS Technician to help with a couple of key projects. He explained that while the salary would hit the entire budget, a large component of it was expected to be capitalized on various projects. Mr. Parker added that some of the expenses for the part-time employee would also be partially offset by a MWDOC grant for the District's work completing a water rate study. Mr. Grady explained that the draft budget included approximately $40,000 for leasing GPS units for the District fleet. However, since that time, staff is recommending going with a different vendor and that vendor allows the District to purchase the equipment for $22,000, an expense that will be capitalized. The remaining service component of the program will cost 1 around $20,000 a year. This results in $2,000 more in the current year, but a large amount of that expense is capitalized, with cost benefits to the District in year two. Mr. Parker noted that the removal of the Collection Agency Fee line item was a move to reflect in the budget where costs were actually being charged, and that there was no change in dollars with that revision. Finally, Mr. Parker explained that an assumption allocating a portion of property tax revenue to sewer was removed from the budget. Mr. Vecchiarelli explained that while it was budgeted that way last year, no allocation was actually made to the Sewer Fund this year or in any previous year and the revenue stayed in the Water Fund. The Committee supported staff's recommended changes to the proposed FY 2010/11 Budget. 3. DISCUSSION ITEMS 3.1. Monthly Portfolio Reports for March 2010 Mr. Parker mentioned that the portfolio was completely liquidated by May 15t", and that the next monthly portfolio report would reflect a $0 balance. He also added that the portfolio was liquidated with a realized gain, so the District did not lose money in the process of converting to CaITRUST. The Committee asked if staff was pleased with CaITRUST, and Mr. Parker explained that having the flexibility of utilizing longer-term accounts within CalTRUST when funds were not immediately needed, would result in a higher yield than the District was making over the past year with Wells Capital. In addition, he pointed out that funds could be moved from portfolio to portfolio without any fees and tracking would be easier for the Finance Department. As a result, staff is definitely pleased with the move to CaITRUST. 3.2. Future Agenda Items and Staff Tasks None. 4. ADJOURNMENT 4.1. The Committee adjourned at 8:25 a.m. The next regular meeting of the Finance-Accounting Committee will be held on July 12, 2010 at 4:00 p.m. 2