HomeMy WebLinkAbout2010-09-13 - Finance-Accounting Committee Meeting Agenda Packet
Yorba Linda
Water District
AGENDA
YORBA LINDA WATER DISTRICT
FINANCE-ACCOUNTING COMMITTEE MEETING
Monday, September 13, 2010, 8:00 AM
1717 E Miraloma Ave, Placentia CA 92870
COMMITTEE STAFF
Director Ric Collett Pat Grady, Assistant General Manager
Director William R. Mills, Alternate Stephen Parker, Finance Director
1. PUBLIC COMMENTS
Any individual wishing to address the committee is requested to identify themselves and state the matter on
which they wish to comment. If the matter is on this agenda, the committee Chair will recognize the individual for
their comment when the item is considered. No action will be taken on matters not listed on this agenda.
Comments are limited to matters of public interest and matters within the jurisdiction of the Water District.
Comments are limited to five minutes.
2. ACTION CALENDAR
This portion of the agenda is for items where staff presentations and committee discussions are needed prior to
formal committee action.
2.1. July 2010 Budget to Actual Results
Recommendation: That the Committee review, receive and file the July 2010
Budget to Actual Results.
2.2. Monthly Investment Report for July 2010
Recommendation: That the Committee receive and file the Investment Report.
3. DISCUSSION ITEMS
This portion of the agenda is for matters such as technical presentations, drafts of proposed policies, or similar
items for which staff is seeking the advice and counsel of the Committee members. This portion of the agenda
may also include items for information only.
3.1. 2010 Audit Update (Verbal Report)
3.2. Future Agenda Items and Staff Tasks
4. ADJOURNMENT
4.1. The next regular meeting of the Finance-Accounting Committee will be held on October
11, 2010 at 4:00 p.m.
Items Distributed to the Committee Less Than 72 Hours Prior to the Meeting
Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items
and are distributed to a majority of the Committee less than seventy-two (72) hours prior to the meeting will be available
for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA
92870, during regular business hours. When practical, these public records will also be made available on the District's
internet website accessible at http://www.ylwd.com/.
Accommodations for the Disabled
Any person may make a request for a disability-related modification or accommodation needed for that person to be
able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba
Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and
the type of accommodation requested. A telephone number or other contact information should be included so the
District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should
make the request with adequate time before the meeting for the District to provide the requested accommodation.
ITEM NO. 2.1
AGENDA REPORT
Meeting Date: September 13, 2010
To: Finance-Accounting Committee
From: Pat Grady, Assistant General
Manager
Presented By: Stephen Parker, Finance Dept: Finance
Director
Reviewed by Legal: N/A
Prepared By: Delia Lugo, Senior Accountant CEQA Compliance: N/A
Subject: July 2010 Budget to Actual Results
STAFF RECOMMENDATION:
That the Committee review, receive and file the July 2010 Budget to Actual Results.
DISCUSSION:
Attached are the budget to actual summary results for the District, and also broken out between the
Water Fund and Sewer Fund. Overall, the District's operating revenue is on target, and operating
expenses slightly below budget.
. Water operating revenue is only 8.2% of annual budget, which is lower than normal for
summer months, mostly due to the higher water conservation rates from our customers. The
budget was based on 15% conservation, and through July customers are conserving over
23%.
. Variable water costs as a percentage of budget are higher than operating revenues as a result
of purchasing more import water prior to Metropolitan Water District of Southern California's
7.5% rate increase, which takes effect on January 1, 2011.
. Salary related expenses are lower than expected because approximately half of the expenses
paid in July actually related to June expenses and were accrued to Fiscal Year 2009/2010.
. Supplies and Services and Depreciation and Amortization categories are similar to budgeted
expectations.
PRIOR RELEVANT BOARD ACTION(S):
On August 9, 2010 the Committee reviewed, received and filed the June 30, 2010 Budget to Actual
Results.
ATTACHMENTS:
Name: Description: -I ype:
Water _Sewer _July 2010.xls Water Sewer Consolidated Results Backup Material
Water July 2010.xls Water July 2010 Backup Material
Sewer July 2010.xls Sewer July 2010 Backup Material
Yorba Linda Water District
Summary Financial Report
Water & Sewer Funds
For the One Month Ended July 31, 2010
Annual Actual YTD
Budget YTD through Under/(Over) % of
FY 10/11 July 31, 2010 Budget Annual Budget
Revenue (Operating):
Water Revenue (Consumption & Flat Charge) $25,672,831 $2,046,580 $23,626,251 7.97%
(Restricted for Debt Service) - (278,921) - 0.00%
Sewer Revenue 1,235,402 117,600 1,117,802 9.52%
Other 714,221 122,332 591,889 17.13%
Total Operating Revenue: 27,622,454 2,007,591 25,614,863 8.28%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 12,667,236 1,504,576 11,162,660 11.88%
Salary Related Expenses 7,624,683 202,478 7,422,205 2.66%
Supplies & Services 3,996,585 281,767 3,714,818 7.05%
Depreciation & Amortization 5,017,876 433,164 4,584,712 8.63%
Total Operating Expenses: 29,306,380 2,421,985 26,884,395 8.26%
Operating Income (Loss) (1,683,926) (414,394) (1,269,532) 24.61%
Revenue (Non-Operating):
Interest and Investments 156,000 22,617 133,383 14.50%
Property Taxes 1,206,000 - 1,206,000 0.00%
Debt Service Income (through water revenue) - 278,921 (278,921) 0.00%
Other 126,133 101,065 25,068 80.13%
Total Non-Operating Revenue: 1,488,133 402,603 1,085,530 27.05%
Expenses (Non-Operating):
Interest on Long Term Debt (1,940,954) (161,612) (1,779,342) 8.33%
Other Expense (103,193) (2,947) (100,246) 2.86%
Total Non-Operating Expenses: (2,044,147) (164,559) (1,879,588) 8.05%
Non-Operating Income (Loss) (556,014) 238,044 (794,058) -42.81%
Net Income (Loss) ($2,239,940) ($176,350) ($2,063,590) 7.87%
Contributed Capital 145,860 - 145,860 0.00%
Capital - Direct Labor - (43,135) 43,135
Yorba Linda Water District
Water Fund
For the One Month Ended July 31, 2010
FY 2011 YTD % of
Annual July Actual Under/(Over) Annual
Budget 2010 YTD Budget Budget
Revenue (Operating):
Water Revenue (Residential) $ 17,248,481 $ 1,253,318 $ 1,253,318 $ 15,995,163 7.27%
(Restricted for Debt Service) - (278,921) (278,921) 0.00%
Water Revenue (Commercial & Fire Det.) 1,522,341 157,795 157,795 1,364,546 10.37%
Water Revenue (Landscape/Irrigation) 3,588,335 393,112 393,112 3,195,223 10.96%
Water Revenue (Service Charge) 3,313,674 242,355 242,355 3,071,319 7.31%
Other Operating Revenue 701,089 121,821 121,821 579,268 17.38%
Total Operating Revenue: 26,373,920 1,889,480 1,889,480 24,484,440 8.22%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 12,667,236 1,504,576 1,504,576 11,162,660 11.88%
Salary Related Expenses 6,809,598 175,962 175,962 6,633,636 2.58%
Supplies & Services:
Communications 376,576 22,006 22,006 354,570 5.84%
Contractual Services 707,007 96,745 96,745 610,262 13.68%
Data Processing 109,596 2,011 2,011 107,585 1.83%
Dues & Memberships 30,778 23 23 30,755 0.07%
Fees & Permits 44,020 968 968 43,052 2.20%
Board Election 72,800 - - 72,800 0.00%
Insurance 314,314 - - 314,314 0.00%
Materials 337,766 29,010 29,010 308,756 8.59%
District Activities, Emp Recognition 11,648 - - 11,648 0.00%
Maintenance 325,227 3,125 3,125 322,102 0.96%
Non-Capital Equipment 92,611 4,812 4,812 87,799 5.20%
Office Expense 39,221 1,524 1,524 37,697 3.89%
Professional Services 638,224 55,102 55,102 583,122 8.63%
Training 45,735 1,656 1,656 44,079 3.62%
Travel& Conferences 40,602 406 406 40,196 1.00%
Uncollectible Accounts 45,955 - - 45,955 0.00%
Utilities 111,930 15,428 15,428 96,502 13.78%
Vehicle Equipment 285,877 19,989 19,989 265,888 6.99%
Supplies & Services Sub-Total 3,629,887 252,805 252,805 3,377,082 6.96%
Depreciation & Amortization 4,403,257 383,399 383299-J-------- 4,019,858 8.71 %
Total Operating Expenses 27,509,978 2,316,742 2,316,742 25,193,236 8.42%
Operating Income (Loss) (1,136,058) (427,262) (427,262) (708,796) 37.61%
Revenue (Non-Operating):
Interest 142,000 20,538 20,540 121,460 14.46%
Property Taxes 1,206,000 - - 1,206,000 0.00%
Debt Service Income (through water revenue) - 278,921 278,921 (278,921) 0.00%
Other Non-Operating Revenue 100,687 95,128 95,128, 5,559 94.48%
Total Non-Operating Revenue: 1,448,687 394,587 394,589 1,054,098 7.98%
Expenses (Non-Operating):
Interest on Long Term Debt (1,940,954) (161,612) (161,612) (1,779,342) 8.33%
Other Expense (102,193) (2,947) (2,946) (99,247) 2.88%
Total Non-Operating Expenses: (2,043,147) (164,559) (164,558) (1,878,589) 8.05%
Non-Operating Income (Loss) (594,460) 230,028 230,031 (824,491) -38.70%
Total Income (Loss) $ (197309518) $ (1979234) $ (1979231) (1,533,287) 11.40%
Contributed Capital $ 92,807 $ $ $ 92,807 0.00%
Ca ital - Direct Labor $ 43,135 $ 43,135 $ 43,135
Yorba Linda Water District
Sewer Fund
For the One Month Ended July 31, 2010
FY 2011 YTD % of
Annual July Actual Underi(Over) Annual
Budget FY 2010 YTD Budget Budget
Revenue (Operating):
Sewer Charge Revenue $ 1,132,574 $ 117,600 $ 117,600 $ 1,014,974 10.38%
Locke Ranch Assessments 102,828 - - 102,828 0.00%
Other Operating Revenue 13,132 511 511 12,621 3.89%
Total Operating Revenue: 1,248,534 118,111 118,111 1,130,423 9.46%
Expenses (Operating):
Salary Related Expenses 815,085 26,516 $26,516 788,569 3.25%
Supplies & Services:
Communications 39,284 2,176 $2,176 37,108 5.54%
Contractual Services 61,478 8,332 $8,332 53,146 13.55%
Data Processing 10,839 199 $199 10,640 1.84%
Dues & Memberships 3,340 2 2 3,338 0.06%
Fees & Permits 6,382 696 $696 5,686 10.91%
Board Election 7,200 - - 7,200 0.00%
Insurance 31,086 - - 31,086 0.00%
Materials 18,849 5,638 $5,638 13,211 29.91%
District Activities 1,152 - - 1,152 0.00%
Maintenance 41,973 210 $210 41,763 0.50%
Non-Capital Equipment 20,509 412 $412 20,097 2.01%
Office Expense 3,879 136 $136 3,743 3.51%
Professional Services 67,176 5,875 $5,875 61,301 8.75%
Training 5,314 549 $549 4,765 10.33%
Travel & Conferences 4,348 36 $36 4,312 0.83%
Uncollectible Accounts 4,545 - - 4,545 0.00%
Utilities 11,070 1,526 $1,526 9,544 13.79%
Vehicle Equipment 28,273 3,175 $3,175 25,098 11.23%
Supplies & Services Sub-Total 366,697 28,962 28,962 337,735 7.90%
Depreciation & Amortization 614,619 49,765 49,765 564,854 8.10%
Total Operating Expenses 1,796,401 105,243 105,243 1,691,158 5.86%
Operating Income (Loss) (547,867) 12,868 12,868 (560,735) -2.35%
Revenue (Non-Operating):
Interest 14,000 2,079 2,079 11,921 14.85%
Property Taxes - - - 0 0.00%
Other Non-Operating Revenue 25,446 5,937 5,935 19,511 23.32%
Total Non-Operating Revenue: 39,446 8,016 8,014 31,432 20.32%
Expenses (Non-Operating):
Other Expense 1,000 - - 1,000 0.00%
Total Non-Operating Expenses: 1,000 - 1,000 0.00%
Non-Operating Income (Loss) 40,446 8,016 8,014 32,432 19.81 %
Total Income (Loss) $ (507,421) $ 20,884 $ 20,882 $ (528,303) -4.12%
Contributed Capital $53,053 $53,053 0.00%
Capital - Direct Labor
ITEM NO. 2.2
AGENDA REPORT
Meeting Date: September 13, 2010 Budgeted: N/A
To: Finance-Accounting Committee
Funding Source: N/A
From: Pat Grady, Assistant General
Manager
Presented By: Stephen Parker, Finance Director Dept: Finance
Reviewed by Legal: N/A
Prepared By: Delia Lugo, Senior Accountant CEQA Compliance: N/A
Subject: Monthly Investment Report for July 2010
SUMMARY:
Government Code Section 53607, et, seq., requires the person delegated to invest funds to make a quarterly
report of the investments to the legislative body.
STAFF RECOMMENDATION:
That the Committee receive and file the Investment Report.
DISCUSSION:
Staff is submitting the July 2010 Monthly Investment Report for your review and approval. The Investment
Portfolio Report presents the market value and percent yield for all the District investments by institution. The
Investment Report Summary includes budget and actual interest and average term portfolio information as
well as market value broken out by reserve categories.
Items to note include the COP Revenue Bond 2008 is approximately $606,000 lower in July than June as a
result of CIP payments made for projects in progress. In addition, the Money Market Account is approximately
$625,000 lower and the Water Operating Fund is approximately $911,000 lower as a result of the biannual
payment of the OCWD Replenishment Assessment, that is, payment for six months of groundwater.
Staff will submit a Quarterly Investment Report ending September 30, 2010, for Board consideration at the
October 10, 2010 Board Meeting.
PRIOR RELEVANT BOARD ACTION(S):
Monthly Investment Reports are presented to the Finance-Accounting Committee on a regular basis.
Quarterly Investment Reports are presented to the Board of Directors. The Investment Report for the month
ended June 30, 2010 was received and filed by the Finance-Accounting Committee on August 9, 2010. The
Investment Report for the quarter ended June 30, 2010 was received and filed by the Board of Directors on
August 26, 2010.
ATTACHMENTS:
Name Description: Type:
Invst_Rpt 7-10.xlsx Portfolio Report Backup Material
Agenda 9-13_backup-July 2010.docx Agenda Backup Backup Material
Yorba Linda Water District
Investment Portfolio Report
July 31, 2010
Market % Percent
Value Cost of Total Institution Yield
Cash & Checking Accounts:
$ 527,417 $ 527,417 Wells Fargo Bank
$ 527,417 $ 527,417 1.58% Total 0.00%
Money Market Accounts:
$ 905,653 $ 905,653 Wells Fargo Money Market 0.30%
$ 905,653 $ 905,653 2.71% Total 0.30%
$ 1,433,070 $ 1,433,070 4.29% Sub-total 0.30%
Money Market Account:
$ 10,015,716 $ 10,015,716 US Bank 2008 Revenue Bond 0.20%
$ 10,015,716 $ 10,015,716 29.99% 0.20%
CaITR UST
$ 1,404,305 $ 1,404,305 Heritage Money Market Fund 0.26%
$ 4,340,326 $ 4,329,303 CalTRUST Short Term 0.56%
$ 16,200,315 $ 16,062,065 Ca1TRUST Medium Term 1.40%
$21,944,946 $21,795,672 65.73% 1.16%
$ 33,393,731 $ 33,244,458 100.00% Sub Total Investments 0.84%
$ 33,393,731 $ 33,244,458 100% Total Investments 0.84%
Per Government Code requirements, the Investment Report is in compliance with the Yorba
Linda Water District's Investment Policy, and there are adequate funds available to meet
budgeted and actual expenditures for the next six months.
Delia Lugo, Senior Accountant
July 31, 2010
Investment Report Summary
Below is a chart summarizing the yields as well as terms and maturities for the month of July
2010:
Avg. Portfolio Avg. Portfolio # of Avg. Term
Month Yield Without Yield With Days to of Portfolio
of 2010 Wells Capital Wells Capital Maturity in Days
July 0.84% 0.84% 368 338
Below is a chart comparing operating fund interest for current and prior fiscal years.
Actual Interest 7/31/09 7/31/10
Monthly, Operating Fund $ 706 $ 1,182
Year-to-Date, Operating Fund $ 706 $ 1,182
Budget 2009/2010 2010/2011
Interest Budget, Operating Fund, July YTD $625 $12,850
Interest Budget, Operating Fund, Annual $7,500 $154,200
Interest earned on investments is recorded in the Fund that owns the investment.
Investment Summary Comparison
The distribution of investments in the portfolio both in dollars and as a percentage of the total
portfolio by funds is as follows:
Fund Description Balance 6/30/10
Water Operating $ - 0.00%
Water Emergency Reserve 2,064,570 6.13%
Water Capital Project Reserve 18,352,222 54.47%
Water Reserve for Debt Service 1,338,841 3.97%
COP Revenue Bond 2008 - Reserve 2,147,096 6.37%
COP Revenue Bond 2008 7,868,620 23.35%
Sewer Operating 1,188,321 3.53%
Sewer Emergency Reserve 544,290 1.62%
Sewer Capital Project Reserve 191,272 0.56%
$33,695,232 100.00%
Wells Fargo Bank Checking
Water Operating (264,086)
Sewer Operating 3( 7,415)
30( 1,501)
Total 33.393.731