Loading...
HomeMy WebLinkAbout2012-01-23 - Finance-Accounting Committee Meeting Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING January 23, 2012 A meeting of the Finance-Accounting Committee was called to order by Director Kiley 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 Robert R. Kiley, Chair Ken Vecchiarelli, General Manager Director Phil Hawkins Stephen Parker, Finance Manager 1. PUBLIC COMMENTS None. 2. DISCUSSION ITEMS 2.1. New Member Orientation Mr. Parker briefly described some of the action and information items that were submitted to the Finance-Accounting Committee in the 2011 calendar year and highlighted some of the anticipated items that would be going through the Committee in 2012. 2.2. CSMFO Budget Award Notification Mr. Parker was pleased to announce that the District received the Excellence in Budgeting Award from the California Society of Municipal Finance Officers (CSMFO). Mr. Parker explained that the CSMFO has two levels of budget awards, and the Excellence in Budgeting Award is the higher of the two. This is the first time that YLWD's Budget has attained this recognition. 2.3. December 2011 Budget to Actual Results Mr. Parker presented the December 2011 budget to actual results. He explained all of the variances in the high-level revenues and expenses, and also provided detail as to individual supplies and services line items that were not in line with expectations. The Committee asked a couple of questions that Mr. Parker answered. The Committee asked staff to look into if all the sewer refunds were cashed. 2.4. Investment Report for Period Ending December 31, 2011 The investment report for the period ending December 2011 was shown to the Committee. Mr. Parker discussed the major changes to the District's reserve balances as well as the overall yield. Mr. Parker mentioned the previous Committee's request for a comparison of average yield to other water districts and explained that the future staff task would be completed 1 once the quarter ending December 31, 2011 information for other water district's was available. 2.5. Broker/Dealer Research Mr. Parker explained that the District's main investment (CaITRUST) has a floating Net Asset Value, which allows the corpus to gain and lose value in addition to the interest earned on the investment. He also explained that the California Government Code lists the first priority of a Treasurer of public money to be that of safeguarding the principal. As such, staff has been in contact with multiple broker/dealers and plans to interview more to explore alternative investment options. At the end of the process, staff will have multiple experienced broker/dealers with which securities could be purchased. 2.7. Proposed Calendar for FY 2012/13 Budget Mr. Parker asked if item 2.6 could be pushed back to the end of the meeting, as it could take a long amount of time depending on the questions the Committee had relating to it. The Committee agreed. The budget calendar was presented to the Committee and Mr. Parker explained that it would be revised monthly as needed and presented to the Finance-Accounting Committee. The Committee had no recommended changes at the present time. 2.8. Status of Strategic Plan Initiatives Mr. Parker presented the updated strategic plan initiatives as it related to Fiscal Accountability. There were a number of updates, and many of the initiatives were complete or would be looked at on a recurring basis. 2.6. Financial Model —Alternate Results Mr. Parker handed out some screen shots with different assumptions using the financial plan model that was a deliverable from Raftelis Financial Consultants as a result of the Cost of Service and Water Rate Study they conducted. Mr. Parker then showed how the financial model could quickly calculate different assumptions. The Committee suggested a number of changes to the inputs in the projected financials. These were entered by Mr. Parker into the model using a laptop computer, with the resulting effect of the District's projected financial situation shown utilizing a projector. Mr. Parker explained that this tool would be used throughout the current budget process as well as in future years. 2.9. Future Agenda Items and Staff Tasks • Determine if all the sewer refunds checks were cashed. 2 3. ADJOURNMENT 3.1. The Committee adjourned at 5:29 p.m. The next meeting of the Finance- Accounting Committee will be held February 27, 2012 at 4:00 p.m. 3