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HomeMy WebLinkAbout2011-07-11 - Finance-Accounting Committee Meeting Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING July 11, 2011 A meeting of the Finance-Accounting Committee was called to order by Director Collett 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 Ric Collett, Chair Stephen Parker, Finance Director Director Robert R. Kiley 1. PUBLIC COMMENTS None. 2. ACTION CALENDAR 2.1. Sewer Maintenance Charges for Locke Ranch, Multi-Family Residential and Commercial/Industrial Accounts Transferred from the City of Yorba Linda as of July 1, 2011 and Areas Outside of the District for Fiscal Year 2011/12 Mr. Parker presented the item that will go to the full Board for placing sewer charges on the tax rolls. Mr. Parker explained that as a result of the City of Yorba Linda sewer transfer, this item was more complicated than prior years. Normally only Locke Ranch was placed on the tax rolls. However, this year, due to the disparity in rates between the District's Sewer Maintenance Charge and that of the City of Yorba Linda for the Commercial/Industrial and Multi-Family Residential Accounts, those items would be included on the tax rolls as well. Mr. Parker noted that the resolution presented for consideration is currently being reviewed by legal counsel. The Committee inquired about when it was known that there was a discrepancy in the rates of Commercial/Industrial and Multi-Family Residential accounts transferred from the City. Mr. Parker indicated that the City had changed the rates near the end of FY09/10, but he was not aware of it until he received a file of the accounts from the City in April. The Committee stated that it would have been beneficial to have been advised of the issue earlier. Mr. Parker also presented a handout that documented some discrepancies that were identified through the process of preparing for the transfer of the City of Yorba Linda sewers. These included: • Thirty accounts were discovered where the City was unnecessarily assessing the sewer charge on the property tax rolls, at the same 1 time that those same accounts were being maintained and correctly billed by the District. • Seventy accounts were discovered that were being billed by the District that were or should have been billed by the City. • Accounts totaling 185 were discovered that the City was not assessing a sewer charge of any kind. • Lastly, 626 accounts were discovered that were being assessed a single-family residence rate by the City, but they appeared to be multi-family residences. Mr. Parker explained that the financial liability of the District to customers who were being incorrectly billed was not clear. However, the understanding based on review by legal counsel was that the time limit for reimbursement should be no more than four years. Mr. Parker presented a breakdown of cost the District would incur should the legal liability be determined to be four years. In addition, he presented the cost necessary should the District refund to the customers all charges they had ever been assessed. The two figures were less than $15,000 and less than $20,000, respectively. Regarding the 626 accounts, the Committee asked for the District's definition of "multi-family residence." Mr. Parker indicated that he did not have that information and would obtain it. The Committee indicated that some of the residences in question might not meet the definition of a multi- family residence. As such, the Committee asked that staff study the definition and then make a future recommendation to the Committee as to changing the billing rate of those accounts in question. The Committee recommended that staff present the agenda item to the full Board at the July 28 meeting, with changes that had been discussed during the Committee meeting. 3. DISCUSSION ITEMS 3.1. Status Report on Committee Specific Strategic Plan Initiatives Mr. Parker updated the Committee on the status of the various initiatives from the strategic plan that related to the Fiscal Responsibility area. The Committee had no questions or future tasks for staff, but the Committee did recommend that as initiatives are completed they be moved to a completed section, but still remain on future monthly reports. 3.2. May 2011 Budget to Actual Results Mr. Parker presented the May 2011 Budget-to-Actual results and indicated that most of the trends of the fiscal year continued through May. He noted that the District expenditures were below budget by approximately $700,000, and that he expected that figure to still be in the range of $500,000 once the audit was completed. Mr. Parker explained some variances of results in the supplies and services area. In addition, the 2 Committee had a question on the Insurance line item that Mr. Parker indicated he would research and get back to the Committee with the answer. The Committee had no further questions or tasks for staff relating to the budget-to-Actual results. 3.3. May 2011 Investment Report Mr. Parker presented the May 2011 Investment Report and noted that the yield for the month had decreased 5% to 0.88%. He also noted that it had just come to his attention that the yield of the US Bank Money Market Account in May was actually 0.12% rather than the 0.20% indicated on the schedule. It had been 0.20% in April 2011. Mr. Parker identified that the largest change between reserves was as a result of a reallocation of expenses between the water and sewer funds in conjunction with closing a GIS project. The Committee had no questions or tasks for staff regarding the investment report. 3.4. Future Agenda Items and Staff Tasks None. 4. ADJOURNMENT 4.1. The Committee adjourned at 5:05 p.m. The next regular meeting of the Finance-Accounting Committee will be held on August 8, 2011 at 4:00 p.m. 3