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HomeMy WebLinkAbout2012-11-26 - Finance-Accounting Committee Meeting Agenda Packet Yorba Linda Hater District AGENDA YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING Monday, November 26, 2012, 4:00 PM 1717 E Miraloma Ave, Placentia CA 92870 COMMITTEE STAFF Director Robert R. Kiley, Chair Steve Conklin, Acting General Manager Director Phil Hawkins Stephen Parker, Finance Manager 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. Unaudited Financial Statements for the Period Ending September 30, 2012 Recommendation. That the Committee recommend the Board of Directors receive and file the Unaudited Financial Statements for the Period Ending September 30, 2012. 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. Budget to Actual Results for October 2012 3.2. Investment Report for Period Ending October 31, 2012 3.3. Status of Strategic Plan Initiatives 3.4. Future Agenda Items and Staff Tasks 4. ADJOURNMENT 4.1. The next meeting of the Finance-Accounting Committee will be held Tuesday, December 18, 2012 at 12:00 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: November 26, 2012 To: Finance-Accounting Committee From: Steve Conklin, Acting General Manager Presented By: Stephen Parker, Finance Dept: Finance Manager Prepared By: Delia Lugo, Senior Accountant Subject: Unaudited Financial Statements for the Period Ending September 30, 2012 SUMMARY: Presented are the Unaudited Financial Statements for the Period Ending September 30, 2012 for the District. STAFF RECOMMENDATION: That the Committee recommend the Board of Directors receive and file the Unaudited Financial Statements for the Period Ending September 30, 2012. DISCUSSION: For the period ending September 30, 2012, staff is presenting unaudited statements in the CAFR format. We have included the traditional budget to actual statements for the District as a whole, as well as the individual water and sewer funds. Water Operating Revenue, as presented, is 33.1 % of annual budget, which is on target when compared to the historical trend of 33.5% for the first quarter of the fiscal year. Other Operating Revenue is 36.7% of annual budget. Sewer Other Operating Revenue, as presented, is 53.6% of annual budget primarily due to FOG Fees for the year being 100% invoiced and paid. With the issuance of the 2008 Certificates of Participation (COP's) and the Refunding Revenue Bonds, Series 2012A the District covenanted "... to fix, prescribe and collect rates and charges for Water Service which will be at least sufficient to yield during each Fiscal Year, Net Revenues equal to 110% of the Debt Service for such Fiscal Year." To confirm the covenant is upheld, a calculation is made quarterly and presented to the Finance- Accounting Committee and received and filed by the Board of Directors. Accordingly, the unaudited debt service ratio through September 2012 is shown in the attached calculation as 179%. This shows strong financial health for the District as it pertains to the debt service ratio. STRATEGIC PLAN: FR 1-G: Continue to Improve Communications of the Districts Financial Information to the Board of Directors, Member Agencies, Management, and the Financial Community ATTACHMENTS: Description: Type: FY 2013 1st Qtr Consolidated Balance Sheet.xlsx FY 2013 1st Qtr Consolidated Balance Sheet Backup Material FY2013 Qtr 1 Consolidated Stmt.xlsx FY 2013 1 st Qtr Combined Statement Backup Material 2013 Qtr 1 Water Stmt.xlsx FY 2013 1 st Qtr Water Statement Backup Material 2013 1st Qtr Sewer Stmt.xlsx FY 2013 1 st Qtr Sewer Statement Backup Material FY 2012-13 1st Qtr DS Calc.xlsx FY 2013 1 st Qtr Debt Service Ratio Calculation Backup Material YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF NET ASSETS September 30, 2012 (With September 30, 2011 for comparison only) ASSETS September 2012 September 2011 CURRENT ASSETS: Cash and cash equivalents $ 17,290,585 $ 28,128,984 Investment 2,156,835 2,158,358 Accounts receivable-water and sewer services 4,147,564 4,424,861 Accounts receivable- property taxes 102,192 102,192 Prepaid expenses &other deposits 1,173,843 387,806 Inventory 256,610 249,910 TOTAL CURRENT ASSETS 25,127,629 35,452,111 NONCURRENT ASSETS: Bond issuance costs 718,321 748,247 Other post-employment benefit(OPEB) asset 176,295 - Capital assets: Non-depreciable 13,044,093 8,014,707 Depreciable, net of accumulated depreciation 188,508,573 191,923,569 TOTAL NONCURRENT ASSETS 202,447,282 200,686,523 TOTAL ASSETS 227,574,911 236,138,634 LIABILITIES CURRENT LIABILITIES: Accounts payable 4,350,692 4,408,047 Accrued expenses 602,702 110,462 Accrued interest payable 732,348 966,343 Certificates of Participation -current portion 680,000 890,000 Compensated absences 240,536 258,032 Customer and construction deposits 253,852 298,680 Deferred revenue 413,617 416,525 TOTAL CURRENT LIABILITIES 7,273,747 7,348,089 LONG-TERM LIABILITIES (LESS CURRENT PORTION): Deferred annexation revenue 13,963,570 14,297,711 Compensated absences 721,610 774,109 Other post-employment benefit(OPEB) liability - 119,858 Certificates of Participation 41,347,882 42,293,870 TOTAL LONG TERM LIABILITIES (LESS CURRENT PORTION) 56,033,062 57,485,548 TOTAL LIABILITIES 63,306,809 64,833,637 NET ASSETS: $ 164,268,103 $ 171,304,997 YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS For the period ended September 30, 2012 (With fiscal year ended September 30, 2011 for comparison only) September 2012 September 2011 OPERATING REVENUES: Water sales $ 8,250,039 $ 8,109,156 Sewer revenues 399,796 357,834 Other operating revenues 246,319 393,832 TOTAL OPERATING REVENUES 8,896,154 8,860,822 OPERATING EXPENSES Variable water costs 5,017,934 4,667,323 Personnel services 1,581,663 1,791,671 Supplies and services 1,152,863 798,603 Depreciation and amortization 1,677,947 1,608,276 TOTAL OPERATING EXPENSES 9,430,407 8,865,873 OPERATING INCOME/(LOSS) (534,253) (5,051) NONOPERATING REVENUES (EXPENSES): Property taxes 39,079 45,107 Investment income 19,460 70,348 Interest expense (467,814) (476,565) Other nonoperating revenues 178,879 383,524 Other nonoperating expenses (9,462) (9,466) TOTAL NONOPERATING REVENUES/EXPENSES (239,858) 12,948 NET INCOME/(LOSS) BEFORE CAPITAL CONTRIBUTIONS (774,111) 7,897 CAPITAL CONTRIBUTIONS - 17,061,426 CHANGES IN NET ASSETS (774,111) 17,069,323 NET ASSETS- BEGINNING OF FISCAL YEAR 165,042,214 154,235,674 NET ASSETS- FOR PERIOD END SEPTEMBER 30 $ 164,268,103 $ 171,304,997 Yorba Linda Water District Summary Financial Report Water&Sewer Funds For The Period Ending September 30, 2012 Original YTD YTD YTD Budget Actual Under(Over) %of FY 2013 FY 2013 Budget Budget Revenue (Operating): Water Revenue (Residential) $15,405,197 $5,297,139 $10,108,058 34.39% Water Revenue (Commercial & Fire Det.) 1,822,665 567,352 1,255,313 31.13% Water Revenue (Landscape/Irrigation) 4,035,121 1,480,325 2,554,796 36.69% Water Revenue (Service Charge) 3,755,191 905,223 2,849,968 24.11% Sewer Charge Revenue 1,548,682 398,784 1,149,898 25.75% Locke Ranch Assessments 198,433 1,112 197,321 0.56% Other Operating Revenue 643,737 246,219 397,518 38.25% Total Operating Revenue: 27,409,026 8,896,154 18,512,872 32.46% Revenue (Non-Operating): Interest 170,000 19,460 150,540 11.45% Property Tax 1,244,320 39,079 1,205,241 3.14% Other Non-Operating Revenue 494,437 178,879 315,558 36.18% Total Non-Operating Revenue: 1,908,757 237,418 1,671,339 12.44% Total Revenue 29,317,783 9,133,572 20,184,211 31.15% Expenses (Operating): Variable Water Costs (G.W., Import& Power) 12,953,024 5,017,934 7,935,090 38.74% Salary Related Expenses 7,648,891 1,581,663 6,067,228 20.68% Supplies &Services 3,849,602 1,152,865 2,696,737 29.95% Total Operating Expenses 24,451,517 7,752,462 16,699,055 31.71% Expenses (Non-Operating): Interest on Long Term Debt 2,011,395 467,814 1,543,581 23.26% Other Expense 124,210 9,462 114,748 7.62% Total Non-Operating Expenses: 2,135,605 477,276 1,658,329 22.35% Total Expenses 26,587,122 8,229,738 18,357,384 30.95% Net Income(Loss) Before Depreciation 2,730,661 903,834 1,826,827 33.10% Depreciation &Amortization 6,602,339 1,677,947 4,924,392 25.41% Total Net Income(Loss) ($3,871,678) ($774,113) ($3,097,565) 19.99% Yorba Linda Water District Water Fund For The Period Ending September 30, 2012 YTD YTD YTD Budget Actual Under(Over) % of FY 2013 FY 2013 Budget Budget Revenue (Operating): Water Revenue (Residential) $15,405,197 $5,297,139 $10,108,058 34.39% Water Revenue (Commercial & Fire Det.) 1,822,665 567,352 1,255,313 31.13% Water Revenue (Landscape/Irrigation) 4,035,121 1,480,325 2,554,796 36.69% Water Revenue (Service Charge) 3,755,191 905,223 2,849,968 24.11% Other Operating Revenue 585,929 215,216 370,713 36.73% Total Operating Revenue: 25,604,103 8,465,255 17,138,848 33.06% Revenue (Non-Operating): Interest 150,000 16,282 133,718 10.85% Property Tax 1,244,320 39,079 1,205,241 3.14% Other Non-Operating Revenue 490,262 170,156 320,106 34.71% Total Non-Operating Revenue: 1,884,582 225,517 1,659,065 11.97% Total Revenue 27,488,685 8,690,772 18,797,913 31.62% Expenses (Operating): Variable Water Costs (G.W., Import& Power) 12,953,024 5,017,934 7,935,090 38.74% Salary Related Expenses 6,741,403 1,361,188 5,380,215 20.19% Supplies & Services: Communications 280,232 18,214 262,018 6.50% Contractual Services 455,041 99,603 355,438 21.89% Data Processing 125,866 31,953 93,913 25.39% Dues & Memberships 57,609 24,633 32,976 42.76% Fees & Permits 139,165 33,348 105,817 23.96% Board Election 59,055 - 59,055 0.00% Insurance 259,656 67,798 191,858 26.11% Materials 455,226 141,166 314,060 31.01% District Activities, Emp Recognition 17,298 2,668 14,630 15.42% Maintenance 310,320 68,895 241,425 22.20% Non-Capital Equipment 81,370 32,098 49,272 39.45% Office Expense 37,702 12,965 24,737 34.39% Professional Services 749,878 416,142 333,736 55.49% Training 41,353 5,888 35,465 14.24% Travel & Conferences 41,902 2,083 39,819 4.97% Uncollectible Accounts 36,270 (403) 36,673 -1.11% Utilities 79,050 22,572 56,478 28.55% Vehicle Equipment 282,400 81,101 201,299 28.72% Supplies & Services Sub-Total 3,509,393 1,060,724 2,448,669 30.23% Total Operating Expenses 23,203,820 7,439,846 15,763,974 32.06% Expenses (Non-Operating): Interest on Long Term Debt 2,009,777 467,814 1,541,963 23.28% Other Expense 118,210 9,462 108,748 8.00% Total Non-Operating Expenses: 2,127,987 477,276 1,650,711 22.43% Total Expenses 25,331,807 7,917,122 17,414,685 31.25% Net Income (Loss) Before Depreciation 2,156,878 773,650 1,383,228 35.87% Depreciation &Amortization 5,332,175 1,357,205 3,974,970 25.45% Total Net Income (Loss) ($3,175,297) ($583,555) ($2,591,742) 18.38% Yorba Linda Water District Sewer Fund For The Period Ending September 30,2012 YTD YTD YTD Budget Actual Under(Over) %of FY 2013 FY 2013 Budget Budget Revenue(Operating): Sewer Charge Revenue $1,548,682 $398,784 $1,149,898 25.75% Locke Ranch Assessments 198,433 1,112 197,321 0.56% Other Operating Revenue 57,808 31,003 26,805 53.63% Total Operating Revenue: 1,804,923 430,899 1,374,024 23.87% Revenue(Non-Operating): Interest 20,000 3,178 16,822 15.89% Other Non-Operating Revenue 4,175 8,723 (4,548) 208.93% Total Non-Operating Revenue: 24,175 11,901 12,274 49.23% Total Revenue 1,829,098 442,800 1,386,298 24.21% Expenses(Operating): Salary Related Expenses 907,488 220,475 687,013 24.30% Supplies&Services: Communications 23,018 2,490 20,528 10.82% Contractual Services 34,280 8,379 25,901 24.44% Data Processing 9,474 1,440 8,034 15.20% Dues&Memberships 4,583 1,584 2,999 34.56% Fees&Permits 12,155 4,514 7,641 37.14% Board Election 4,445 - 4,445 0.00% Insurance 19,544 688 18,856 3.52% Materials 34,799 1,904 32,895 5.47% District Activities, Emp Recognition 1,302 200 1,102 15.36% Maintenance 71,650 22,227 49,423 31.02% Non-Capital Equipment 16,130 3,548 12,582 22.00% Office Expense 2,823 976 1,847 34.57% Professional Services 37,582 16,003 21,579 42.58% Training 4,747 1,170.0 3,577 24.65% Travel&Conferences 3,498 119 3,379 3.40% Uncollectible Accounts 2,730 (35) 2,765 -1.28% Utilities 5,950 1,906 4,044 32.03% Vehicle Equipment 51,499 25,028 26,471 48.60% Supplies&Services Sub-Total 340,209 92,141 248,068 27.08% Total Operating Expenses 1,247,697 312,616 935,081 25.06% Expenses(Non-Operating): Interest Expense 1,618 - 1,618 0.00% Other Expense 6,000 6,000 0.00% Total Non-Operating Expenses: 7,618 - 7,618 0.00% Total Expenses 1,255,315 312,616 942,699 24.90% Net Income(Loss) Before Depreciation 573,783 130,184 443,599 22.69% Depreciation&Amortization 1,270,164 320,742 949,422 25.25% Total Net Income(Loss) ($696,381) ($190,558) ($505,823) 27.36% Yorba Linda Water District Water Fund For The Period Ending September 30, 2012 YTD Included in Actual Debt Service FY 2013 Ratio Calculation OPERATING REVENUES: Water sales $ 8,250,039 $ 8,250,039 Other operating revenues 215,216 215,216 TOTAL OPERATING REVENUES 8,465,255 8,465,255 OPERATING EXPENSES Variable water costs 5,017,934 5,017,934 Personnel services 1,361,188 1,361,188 Supplies and services 1,060,724 1,060,724 Depreciation and amortization 1,357,205 - TOTAL OPERATING EXPENSES 8,797,051 7,439,846 OPERATING INCOME/(LOSS) (331,796) 1,025,409 NONOPERATING REVENUES (EXPENSES): Property taxes 39,079 39,079 Investment income 16,282 16,282 Interest expense (467,814) - Other nonoperating revenues 170,156 170,156 Other nonoperating expenses (9,462) (9,462) TOTAL NONOPERATING REVENUES/EXPENSES (251,759) 216,055 NET INCOME/(LOSS) BEFORE CAPITAL CONTRIBUTIONS (583,555) 1,241,464 CAPITAL CONTRIBUTIONS - - CHANGES IN NET ASSETS (583,555) 1,241,464 DEBT SERVICE RATIO CALCUATION: NET REVENUES 1,241,464 DEBT SERVICE 691,718 % 179% ITEM NO. 3.1 AGENDA REPORT Meeting Date: November 26, 2012 To: Finance-Accounting Committee From: Steve Conklin, Acting General Manager Presented By: Stephen Parker, Finance Dept: Finance Manager Prepared By: Delia Lugo, Senior Accountant Subject: Budget to Actual Results for October 2012 DISCUSSION: Attached are the District's budget to actual summary results for the Water Fund, Sewer Fund and a combined statement for both funds pertaining to the reporting month of October 2012. For the month of October 2012, the District water revenue is 43.4% of annual budget, which is slightly higher when compared to the historical trend by 1.3%. Our water consumption baseline is 298 gallons per capita per day (GPCD), with a 20% reduction by 2020 target of 238.5 GPCD. Currently we are at 273.4 GPCD, which is 41.4% of the way to our goal. Variable water costs are higher than budgeted due to the District's intentional strategy to use a greater percentage of the more expensive imported water in the first half of the year, before MWD's rate increase goes into effect. The majority of the Water Fund's individual Supplies and Services expenses are trending below or near budget. Dues and Memberships and Insurance are over due to the timing of receiving and paying annual invoices. Non-Capital Equipment, Office Expense and Professional Services are all trending more than a month ahead of schedule as previously described. Materials is also trending a month ahead of schedule primarily due to Hydrant Repair Parts and Replacement Meters spending being at a higher pace than budget (66% and 46% vs. 33% year to date). Sewer Other Operating Revenue is well over budget due to the timing of invoicing and receiving payments for FOG fees. In addition to items mentioned regarding the Water Fund, Fees & Permits and Vehicle Equipment are trending higher in the Sewer Fund as previously described. STRATEGIC PLAN: FR 1-F: Continue to Record and Report the Fairly Stated Financial Activities of the District in a Timely and Transparent Manner to the Board of Directors and Member Agencies ATTACHMENTS: Name: Description: Type: October 2012 Combined.xlsx October 2012 Consolidated Statement Backup Material Oct 2012 Water Stmt.xlsx October 2012 Water Statement Backup Material Oct 2012 Sewer Stmt.xlsx October 2012 Sewer Statement Backup Material Yorba Linda Water District Summary Financial Report Water&Sewer Funds For Four Months Ending October 31, 2012 Original YTD YTD YTD Budget Actual Under(Over) %of FY 2013 FY 2013 Budget Budget Revenue (Operating): Water Revenue (Residential) $15,405,197 $6,898,811 $8,506,386 44.78% Water Revenue (Commercial & Fire Det.) 1,822,665 744,894 1,077,771 40.87% Water Revenue (Landscape/Irrigation) 4,035,121 1,943,570 2,091,551 48.17% Water Revenue (Service Charge) 3,755,191 1,217,261 2,537,930 32.42% Sewer Charge Revenue 1,548,682 530,435 1,018,247 34.25% Locke Ranch Assessments 198,433 1,546 196,887 0.78% Other Operating Revenue 643,737 336,055 307,682 52.20% Total Operating Revenue: 27,409,026 11,672,572 15,736,454 42.59% Revenue (Non-Operating): Interest 170,000 30,762 139,238 18.10% Property Tax 1,244,320 44,025 1,200,295 3.54% Other Non-Operating Revenue 494,437 202,835 291,602 41.02% Total Non-Operating Revenue: 1,908,757 277,622 1,631,135 14.54% Total Revenue 29,317,783 11,950,194 17,367,589 40.76% Expenses (Operating): Variable Water Costs (G.W., Import& Power) 12,953,024 6,229,901 6,723,123 48.10% Salary Related Expenses 7,648,891 2,024,579 5,624,312 26.47% Supplies &Services 3,849,602 1,621,294 2,228,308 42.12% Total Operating Expenses 24,451,517 9,875,774 14,575,743 40.39% Expenses (Non-Operating): Interest on Long Term Debt 2,011,395 623,752 1,387,643 31.01% Other Expense 124,210 11,788 112,422 9.49% Total Non-Operating Expenses: 2,135,605 635,540 1,500,065 29.76% Total Expenses 26,587,122 10,511,314 16,075,808 39.54% Net Income(Loss) Before Depreciation 2,730,661 1,438,880 1,291,781 52.69% Depreciation &Amortization 6,602,339 2,237,236 4,365,103 33.89% Total Net Income(Loss) ($3,871,678) ($798,356) ($3,073,322) 20.62% Yorba Linda Water District Water Fund For Four Months Ending October 31, 2012 Oct YTD YTD YTD Budget Actual Actual Under(Over) % of FY 2013 FY 2013 FY 2013 Budget Budget Revenue (Operating): Water Revenue (Residential) $15,405,197 $1,601,672 $6,898,811 $8,506,386 44.78% Water Revenue (Commercial & Fire Det.) 1,822,665 177,542 744,894 1,077,771 40.87% Water Revenue (Landscape/Irrigation) 4,035,121 463,245 1,943,570 2,091,551 48.17% Water Revenue (Service Charge) 3,755,191 312,038 1,217,261 2,537,930 32.42% Other Operating Revenue 585,929 86,611 301,827 284,102 51.51% Total Operating Revenue: 25,604,103 2,641,108 11,106,363 14,497,740 43.38% Revenue (Non-Operating): Interest 150,000 9,452 25,734 124,266 17.16% Property Tax 1,244,320 4,946 44,025 1,200,295 3.54% Other Non-Operating Revenue 490,262 26,196 196,352 293,910 40.05% Total Non-Operating Revenue: 1,884,582 40,594 266,111 1,618,471 14.12% Total Revenue 27,488,685 2,681,702 11,372,474 16,116,211 41.37% Expenses (Operating): Variable Water Costs (G.W., Import& Power) 12,953,024 1,211,967 6,229,901 6,723,123 48.10% Salary Related Expenses 6,741,403 379,194 1,740,382 5,001,021 25.82% Supplies & Services: Communications 280,232 24,321 42,535 237,697 15.18% Contractual Services 455,041 48,894 148,497 306,544 32.63% Data Processing 125,866 (7,713) 24,240 101,626 19.26% Dues & Memberships 57,609 2,748 27,381 30,228 47.53% Fees & Permits 139,165 24,981 58,329 80,836 41.91% Board Election 59,055 - 0 59,055 0.00% Insurance 259,656 141,557 209,355 50,301 80.63% Materials 455,226 55,073 196,239 258,987 43.11% District Activities, Emp Recognition 17,298 1,758 4,426 12,872 25.59% Maintenance 310,320 34,613 103,508 206,812 33.36% Non-Capital Equipment 81,370 9,459 41,557 39,813 51.07% Office Expense 37,702 3,099 16,064 21,638 42.61% Professional Services 749,878 38,118 454,260 295,618 60.58% Training 41,353 2,380 8,268 33,085 19.99% Travel & Conferences 41,902 3,971 6,054 35,848 14.45% Uncollectible Accounts 36,270 (75) (478) 36,748 -1.32% Utilities 79,050 11,911 34,483 44,567 43.62% Vehicle Equipment 282,400 30,012 111,113 171,287 39.35% Supplies & Services Sub-Total 3,509,393 425,107 1,485,831 2,023,562 42.34% Total Operating Expenses 23,203,820 2,016,268 9,456,114 13,747,706 40.75% Expenses (Non-Operating): Interest on Long Term Debt 2,009,777 155,938 623,752 1,386,025 31.04% Other Expense 118,210 2,326 11,788 106,422 9.97% Total Non-Operating Expenses: 2,127,987 158,264 635,540 1,492,447 29.87% Total Expenses 25,331,807 2,174,532 10,091,654 15,240,153 39.84% Net Income (Loss) Before Depreciation 2,156,878 507,170 1,280,820 876,058 59.38% Depreciation &Amortization 5,332,175 452,375 1,809,580 3,522,595 33.94% Total Net Income (Loss) ($3,175,297) $54,795 ($528,760) ($2,646,537) 16.65% Yorba Linda Water District Sewer Fund For Four Months Ending October 31,2012 Oct YTD YTD YTD Budget Actual Actual Under(Over) %of FY 2013 FY 2013 FY 2013 Budget Budget Revenue(Operating): Sewer Charge Revenue $1,548,682 $131,651 $530,435 $1,018,247 34.25% Locke Ranch Assessments 198,433 434 1,546 196,887 0.78% Other Operating Revenue 57,808 3,225 34,228 23,580 59.21% Total Operating Revenue: 1,804,923 135,310 566,209 1,238,714 31.37% Revenue(Non-Operating): Interest 20,000 1,850 5,028 14,972 25.14% Other Non-Operating Revenue 4,175 (2,240) 6,483 (2,308) 155.28% Total Non-Operating Revenue: 24,175 (390) 11,511 12,664 47.62% Total Revenue 1,829,098 134,920 577,720 1,251,378 31.58% Expenses(Operating): Salary Related Expenses 907,488 63,722 284,197 623,291 31.32% Supplies&Services: Communications 23,018 905 3,395 19,623 14.75% Contractual Services 34,280 3,388 11,767 22,513 34.33% Data Processing 9,474 139 1,579 7,895 16.67% Dues&Memberships 4,583 207 1,791 2,792 39.08% Fees&Permits 12,155 2,956 7,470 4,685 61.46% Board Election 4,445 - - 4,445 0.00% Insurance 19,544 15,069 15,757 3,787 80.62% Materials 34,799 5,799 7,703 27,096 22.14% District Activities, Emp Recognition 1,302 132 332 970 25.50% Maintenance 71,650 4,547 26,774 44,876 37.37% Non-Capital Equipment 16,130 553 4,101 12,029 25.42% Office Expense 2,823 233 1,209 1,614 42.83% Professional Services 37,582 6,185 22,188 15,394 59.04% Training 4,747 183.0 1,353.0 3,394 28.50% Travel&Conferences 3,498 298 417 3,081 11.92% Uncollectible Accounts 2,730 (10) (45) 2,775 -1.65% Utilities 5,950 957 2,863 3,087 48.12% Vehicle Equipment 51,499 1,781 26,809 24,690 52.06% Supplies&Services Sub-Total 340,209 43,322 135,463 204,746 39.82% Total Operating Expenses 1,247,697 107,044 419,660 828,037 33.63% Expenses(Non-Operating): Interest Expense 1,618 - - 1,618 0.00% Other Expense 6,000 6,000 0.00% Total Non-Operating Expenses: 7,618 - - 7,618 0.00% Total Expenses 1,255,315 107,044 419,660 835,655 33.43% Net Income(Loss) Before Depreciation 573,783 27,876 158,060 415,723 27.55% Depreciation&Amortization 1,270,164 106,914 427,656 842,508 33.67% Total Net Income(Loss) ($696,381) ($79,038) ($269,596) ($426,785) 38.71% ITEM NO. 3.2 AGENDA REPORT Meeting Date: November 26, 2012 To: Finance-Accounting Committee From: Steve Conklin, Acting General Manager Presented By: Stephen Parker, Finance Dept: Finance Manager Prepared By: Delia Lugo, Senior Accountant Subject: Investment Report for Period Ending October 31, 2012 SUMMARY: Staff is submitting the October 2012 Monthly Investment Reports for the Committee's review. DISCUSSION: The Investment Portfolio Report presents the market value and percent yield for all 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. The total yield for the month ending October 2012 decreased to 0.68%. This is the result of the yield change of investments held in CaITRUST's Medium Term portfolio from 0.90% to 0.82%, Short Term portfolio from 0.38% to 0.34% and Local Agency Investment Fund from 0.38% to 0.34%. The overall increase in the investment balance from the previous month is approximately $926,000. A few of the larger balance changes include a decrease in the Water Capital Projects fund of $500,000 due to the spending on CIP projects; an increase of $300,000 in the Reserve for Debt Service fund due to the District meeting its monthly obligation to ensure that funds are set aside for the March 2013 Debt Service interest payment: and an increase of $1.2 million in the Water Operating fund. STRATEGIC PLAN: FR 1-F: Continue to Record and Report the Fairly Stated Financial Activities of the District in a Timely and Transparent Manner to the Board of Directors and Member Agencies ATTACHMENTS: Description: Type: Invst Rpt 10-12.xlsx Investment Report for Period Ending October 2012 Backup Material Invst Agenda Backup - Oct 2012.xlsx Agenda Backup Backup Material Yorba Linda Water District Investment Portfolio Report October 31, 2012 Market % Percent Value Cost of Total Institution Yield Checking Account: $ 1,093,844 $ 1,093,844 Wells Fargo Bank $ 1,093,844 $ 1,093,844 5.82% Total 0.00% Money Market Accounts: $ 54,938 $ 54,938 Wells Fargo Money Market 0.05% 1,551,056 1,551,056 Bank of the West 0.35% 2,708 2,708 US Bank(2008 Bond Reserve) 0.04% $ 1,608,702 $ 1,608,702 8.55% Total 0.34% Federal Home Loan Bank: 2,153,197 $ 2,144,397 US Bank(2008 Bond Reserve) 1.35% $ 2,153,197 $ 2,144,397 11.45% 1.35% Pooled Investment Accounts: $ 3,228,268 $ 3,228,268 Local Agency Investment Fund 0.34% 1,119,143 1,119,143 Ca1TRUST Short Term 0.34% 9,601,367 9,566,316 Ca1TRUST Medium Term 0.82% $ 13,948,777 $ 13,913,727 74.18% 0.67% $ 18,804,520 $ 18,760,670 100% Total Investments 0.68% 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 10/31/12 Investment Summary Report Below is a chart summarizing the yields as well as terms and maturities for the month of October 2012: Avg. Portfolio Avg. Portfolio #of Month Yield Without Yield With Days to of 2012 CaITRUST CaITRUST Maturity October 0.56% 0.68% 84 Below is are charts comparing operating fund interest for current and prior fiscal years. Actual Interest 10/31/2011 10/31V2012 Monthly-October $ 22,265 $ 11,301 Year-to-Date $ 70,348 $ 33,182 Budget 2011/2012 2012/2013 Interest Budget, October YTD $ 63,333 $ 50,000 Interest Budget, Annual $ 190,000 $ 150,000 Interest earned on investments is recorded in the fund that owns the investment. Investment Summary Comparison Between Current and Previous Month The distribution of investments in the portfolio both in dollars and as a percentage of the total portfolio by funds is as follows: September 2012 %Alloc October 2012 %Alloc Fund Description Balance 9/30/2012 Balance 10/31/2012 Water Operating Reserve $ 2,618,551 14.80% $ 2,855,680 16.13% Water Emergency Reserve 1,005,326 5.68% 1,005,078 5.67% Water Capital Project Reserve 9,146,146 51.69% 8,630,316 48.73% Water Reserve for Debt Service 137,513 0.78% 438,396 2.48% Maintenance Reserve 200,214 1.13% 200,420 1.13% COP Revenue Bond 2008- Reserve 2,159,534 12.21% 2,155,905 12.16% Sewer Operating 161,488 0.91% 85,408 0.48% Sewer Emergency Reserve 1,004,321 5.68% 1,004,074 5.67% Sewer Capital Project Reserve 1,259,464 7.12% 1,335,400 7.53% $ 17,692,557 100.00% $ 17,710,676 99.98% Wells Fargo Bank Checking Water Operating 100,153 974,258 Sewer Operating 85,374 119,586 185,527 1,093,844 Totals $ 17,878,084 $ 18,804,520 ITEM NO. 3.3 AGENDA REPORT Meeting Date: November 26, 2012 Subject: Status of Strategic Plan Initiatives DISCUSSION: Attached are the strategies identified in the 2011-2013 Strategic Plan that relate to Fiscal Responsibility, which are overseen by the Finance-Accounting Committee. Included is an update on each strategy relating to Fiscal Responsibility. ATTACHMENTS: Name: Description: Type: FA - Strategic Plan Trackinq.pdf Strategic Plan Tracking-FA Backup Material Strategic Plan Initiatives Status Report Finance-Accounting Committee Strategies Lead Party Comments October 2012 Progress FR 1: Maintain Fiduciary Res onsibili Revise the Water and Sewer Rules General Complete Study in House Updated Customer Service Fee Schedule presented to Finance-Accounting FR 1-C and Regulation and Evaluate Fee Manager/ and Recommend Fees Committee on September 26. Sewer Rules and Regulations and Fee Schedule will be Schedules Regularly for Proper Finance Structure Update for brought before the Board in 2013. Cost of Service Coverage Director Adoption by December 2011 Continue to Record and Report Quarterly the Board receives the Fairly Stated Financial General full-accrual financial The Board received the September 2012 investment report at the November 21st FR 1-F Activities of the District in a Manager/ statements. The annual Board meeting and the 4th quarter full-accrual financial statements at the Timely and Transparent Manner Finance audit is provided timely to September 13th Board meeting. to the Board of Directors and Director the Board and public. Member Agencies Continue to Improve Monthly financial Communications of the District's General information is provided to The Finance-Accounting Committee received the October 2012 budget to actual FR 1-G Financial Information to the Manager/ management and the financial statements and the October 2012 investment report at the November 26 Board of Directors,Member Finance Agencies,Management,and the Director -Accounting FinaComm Committee meeting. Financial Community Committee. Committee. Com leted Strategies Lead Party Comments October 2012 Progress Finance Accounting Multi-year financial plan provided to the Board during April 11 workshop. A FR 1-A Develop a Comprehensive Multi- Finance Committee to consider comprehensive version is included in the FY 2012/13 budget,which was presented Year Financial Plan Director Adding Sewer Model to to the Board on June 14,2012. Contract in Jun-11 Prepare a High Level Annual FY 2011/12 Budget and CAFR for period ending June 30,2011 received Government Budget Document and Finance Officer's Association awards for excellence. FY 2012/13 Budget approved Comprehensive Annual Financial Finance Include Fees in FY 2011/12 by the Board on June 28,2012. Staff submitted for the CSMFO budget award in FR 1-13 Report and Compete for Director Budget August and the GFOA budget award in September.The Board accepted the 2012 Recognition by the Government CAFR on October 11,2012 and staff submitted the CAFR for the GFOA award in Finance Officers Association November. Evaluate and Revise the Sewer Finance Revised Allocation included Completed March 2011. Consider changing allocation methodology in conjunction FR 1-D Fund Allocation Director in FY 2011/12 Budget with FY 2013/14 budget process. Substantial Rate Increase Maintain Commitment to Strong Board of Adopted in Sept 2009 Quarterly review of debt service ratios will continue as well as integrating the ratio FR 1-E Debt Services Ratio Directors followed by Pass Through into forward financial projections. Increase in Aug 2010 Latest Revisions Reviewed by Review the Reserve Policy and Finance Finance-Accounting Completed review/revision of reserve policy for FY 12/13. Reserve policy adopted by FR 2-A Funding Levels Annually Director/Board Committee for Board of the Board on June 14,2012. of Directors Directors to Consider in Jun 11 Implement an Approach to Finance Financial model allowed review of reserves on a long-term basis. Staff recommended FR 2-C Ensure Reserves are Responsibly Director/Board Rates,COP's and Other a 3-year rate increase to ensure reserves are responsibly funded. Board voted to Funded of Directors Capital Financing Options approve 1.5, 1.5,2.5%rate increase on the fixed charge plus a change in the fixed charge to be based on the meter size at the Public Hearing on June 21. Review Opportunities to Earn Card Options Discussed FR 3-B "Cash Back"on Operating Finance with Finance-Accounting YLWD is online with Cal-CARD. Expense through Commercial Director Committee in March-Add'] Credit Card Accounts research Required Manage Cash Flow to Maximize Finance Track Opportunities and Delia Lugo,Senior Accountant reviews the cash balances and needs daily. Muthple FR 3-C Effectiveness with Quarterly times a month,excess cash is transferred to investments to earn interest until the Investment Income Director Investment Reports next check register. Finance Board to Consider Rate The January 16,2012 Board Workshop showed the end product of the cost of FR 4-A Complete the Cost of Service and Director/Board Structure Alternatives in Oct service and water rate study. Raftefis Financial Consultants completed a document Water Rates Study of Directors 2011 to support the District's Prop 218 notice,which was received and filed by the Board on April 26. Board of A recommendation to update the current fixed charge with a volumetric approach Evaluate Equitable Rate Directors/ Board to Consider Rate was presented to the Board during the April 11 Workshop. The Rate Increase Notice FR 4-13 Structures that Promote General Structure Alternatives in Oct approved by the Board on April 26 to be mailed to the District's customers reflects Conservation and Efficiency 2011 those proposed changes.The public hearing on those changes occurred on June 21, Manager 2012.