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HomeMy WebLinkAbout2012-04-23 - Finance-Accounting Committee Meeting Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING April 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 Stephen Parker, Finance Manager Director Phil Hawkins 1. PUBLIC COMMENTS None. 2. ACTION CALENDAR 2.1. Investment Report for Period Ending March 2012 Mr. Parker presented the Investment Report for the Period Ending March 2012. He explained that due to a sharp decrease in Cal-TRUST's Medium Term portfolio, the District's yield dropped below 1% to 0.95%. Mr. Parker indicated that based on the current market, he did not forsee the portfolio yield rising above 1% again until the investment market turns around. Mr. Parker also identified significant changes between investment funds, including a decrease of over $750,000 due to paying the March debt service interest payment for the 2003 and 2008 COP's, and a draw-down of $584,000 for payments related to ongoing capital improvement projects. The committee supported submitting the quarterly report to the Board to receive and file. 3. DISCUSSION ITEMS 3.1. March 2012 Budget to Actual Results Mr. Parker indicated that the budget to actual results were similar to the previous month. There were no supplies and services line items that were trending worse than budgeted other than those that had been previously discussed. Mr. Parker shared that March was a good month in terms of water sold, and the District was lower in water operating revenue by only 2.1% from the historical trend three quarters of the way through the year. The committee indicated they had reviewed the details of the monthly results earlier and had no additional questions. 3.2. FY 2012/13 Budget Calendar Update Mr. Parker referred the committee to the updated budget calendar. Included was a clean version as well as a "red-line" version. The majority of the items that changed were second drafts of supplies and services 1 budgets that did not need to go to committees again and the associated changes to the proposed committee, Board and Board Workshop meeting dates. 3.3. 2003 COP Advanced Refunding Update Mr. Parker referred to the attachment, which was provided by the District's financial advisors, Fieldman Rolapp & Associates. The attachment laid out the timeline and steps to issue the advanced refunding bonds in early July. 3.4. Line of Credit Update (Verbal Report) Mr. Parker indicated that later in the week staff was to meet with bond council to have an initial discussion and go over a plan for pursuing a line of credit. He also shared that the anticipated costs for bond council was within a similar range as provided by Wells Fargo - $15,000 to $30,000. Mr. Parker added that when compared to the cost of issuance for the 2003 COP's (over $260,000), the line of credit had a very inexpensive cost of issuance — even at the high end of $60,000. 3.5. Status of Strategic Plan Initiatives Mr. Parker covered the changes in the strategic plan initiatives. Major developments included a Board vote on mailing a Notice of Proposed Water Rate Increase to customers on the next Board Meeting, the implementation of the CAL-Card program and the District attaining recognition by the Government Finance Officers Association for issuing an award-winning Budget for FY 11/12 (the District's first such award) and award-winning CAFR for FY 10/11 (the District's second such award). 3.6. Rescheduling May 2012 Meeting Date This item was handled by the General Manager through email correspondence prior to the committee meeting. As the regularly scheduled May Finance-Accounting Committee meeting date fell on Memorial Day, the May meeting was moved to Wednesday, May 23, 2012. 3.7. Future Agenda Items and Staff Tasks None. 4. ADJOURNMENT 4.1. The Committee adjourned at 4:35 p.m. The next meeting of the Finance- Accounting Committee will be held May 23, 2012 at 4:00 p.m. 2