Loading...
HomeMy WebLinkAbout2012-12-18 - Finance-Accounting Committee Meeting Agenda Packet Yorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING Tuesday, December 18, 2012, 12:00 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. 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. 2.1. Investment Report for Period Ending November 30, 2012 2.2. Budget to Actual Results for November 2012 2.3. Status of Strategic Plan Initiatives 2.4. Future Agenda Items and Staff Tasks 3. ADJOURNMENT 3.1. The next meeting of the Finance-Accounting Committee will be held Monday, January 28, 2013 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: December 18, 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 November 30, 2012 SUMMARY: Staff is submitting the November 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 November 2012 decreased to 0.74%. This is the result of the yield change of investments held in CaITRUST's Medium Term portfolio from 0.82% to 0.88%. The overall decrease in the investment balance from the previous month is approximately $316,000. A couple of the larger balance changes include a decrease in the Water Capital Projects fund of $230,000 due to the spending on CIP projects and 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. 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: Inst Rpt 11-12.xlsx Investment Report for Period Ending November 2012 Backup Material Invst Agenda Backup - Nov 2012.xlsx Agenda Backup Backup Material Yorba Linda Water District Investment Portfolio Report November 30, 2012 Market % Percent Value Cost of Total Institution Yield Checking Account: $ 977,127 $ 977,127 Wells Fargo Bank $ 977,127 $ 977,127 5.29% Total 0.00% Money Market Accounts: $ 54,940 $ 54,940 Wells Fargo Money Market 0.05% 1,901,441 1,901,441 Bank of the West 0.35% 17,248 17,248 US Bank(2008 Bond Reserve) 0.04% $ 1,973,630 $ 1,973,630 10.67% Total 0.34% Federal Home Loan Bank: 2,151,907 $ 2,144,397 US Bank(2008 Bond Reserve) 1.35% $ 2,151,907 $ 2,144,397 11.64% 1.35% Pooled Investment Accounts: $ 2,588,268 $ 2,588,268 Local Agency Investment Fund 0.33% 444,282 444,282 CalTRUST Short Term 0.36% 10,353,168 10,318,117 Ca1TRUST Medium Term 0.88% $ 13,385,718 $ 13,350,667 72.40% 0.76% $ 18,488,382 $ 18,445,820 100% Total Investments 0.74% 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 11/30/12 Investment Summary Report Below is a chart summarizing the yields as well as terms and maturities for the month of November 2012: Avg. Portfolio Avg. Portfolio #of Month Yield Without Yield With Days to of 2012 CaITRUST CaITRUST Maturity November 0.74% 0.58% 83 Below is are charts comparing operating fund interest for current and prior fiscal years. Actual Interest 11/30/2011 11/30/2012 Monthly- November $ 34,850 $ 22,288 Year-to-Date $ 105,198 $ 55,470 Budget 2011/2012 2012/2013 Interest Budget, November YTD $ 79,167 $ 62,500 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: October 2012 %Alloc November 2012 %Alloc Fund Description Balance 10/31/2012 Balance 11/30/2012 Water Operating Reserve $ 2,855,680 16.13% $ 2,565,670 16.13% Water Emergency Reserve 1,005,078 5.67% 1,005,780 5.67% Water Capital Project Reserve 8,630,316 48.73% 8,398,178 48.73% Water Reserve for Debt Service 438,396 2.48% 745,593 2.48% Maintenance Reserve 200,420 1.13% 200,420 1.13% COP Revenue Bond 2008- Reserve 2,153,197 12.16% 2,151,907 12.16% COP Revenue Bond 2008 2,708 0.02% 17,248 0.02% Sewer Operating 85,408 0.48% 85,519 0.48% Sewer Emergency Reserve 1,004,074 5.67% 1,004,774 5.67% Sewer Capital Project Reserve 1,335,400 7.53% 1,336,165 7.53% $ 17,710,677 100.00% $ 17,511,254 100.00% Wells Fargo Bank Checking Water Operating 974,258 814,680 Sewer Operating 119,585 162,447 1,093,843 977,128 Totals $ 18,804,520 $ 18,488,382 ITEM NO. 2.2 AGENDA REPORT Meeting Date: December 18, 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 November 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 November 2012. For the month of November 2012, the District water revenue is 54% of annual budget, which is 5% higher when compared to the historical trend for this point in the year. 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 276.2 GPCD, which is 36.7% of the way to our goal. Variable water costs are higher than budgeted due to larger than budgeted water use as well as 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, Materials and Professional Services are all trending more than a month ahead of schedule, with reasons previously reported. 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 Sewer, as was previously reported. 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: November 2012 Combined.xlsx November 2012 Combined Statement Backup Material Nov 2012 Water Stmt.xlsx November 2012 Water Statement Backup Material Nov 2012 Sewer Stmt.xlsx November 2012 Sewer Statement Backup Material Yorba Linda Water District Summary Financial Report Water&Sewer Funds For Five Months Ending November 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 $8,614,842 $6,790,355 55.92% Water Revenue (Commercial & Fire Det.) 1,822,665 941,736 880,929 51.67% Water Revenue (Landscape/Irrigation) 4,035,121 2,386,731 1,648,390 59.15% Water Revenue (Service Charge) 3,755,191 1,530,879 2,224,312 40.77% Sewer Charge Revenue 1,548,682 664,534 884,148 42.91% Locke Ranch Assessments 198,433 29,892 168,541 15.06% Other Operating Revenue 643,737 388,242 255,495 60.31% Total Operating Revenue: 27,409,026 14,556,856 12,852,170 53.11% Revenue (Non-Operating): Interest 170,000 53,049 116,951 31.21% Property Tax 1,244,320 61,296 1,183,024 4.93% Other Non-Operating Revenue 494,437 239,552 254,885 48.45% Total Non-Operating Revenue: 1,908,757 353,897 1,554,860 18.54% Total Revenue 29,317,783 14,910,753 14,407,030 50.86% Expenses (Operating): Variable Water Costs (G.W., Import& Power) 12,953,024 7,097,547 5,855,477 54.79% Salary Related Expenses 7,648,891 2,841,705 4,807,186 37.15% Supplies &Services 3,849,602 1,917,363 1,932,239 49.81% Total Operating Expenses 24,451,517 11,856,615 12,594,902 48.49% Expenses (Non-Operating): Interest on Long Term Debt 2,011,395 769,978 1,241,417 38.28% Other Expense 124,210 11,841 112,369 9.53% Total Non-Operating Expenses: 2,135,605 781,819 1,353,786 36.61% Total Expenses 26,587,122 12,638,434 13,948,688 47.54% Net Income(Loss) Before Depreciation 2,730,661 2,272,319 458,342 83.21% Depreciation &Amortization 6,602,339 2,796,525 3,805,814 42.36% Total Net Income(Loss) ($3,871,678) ($524,206) ($3,347,472) 13.54% Yorba Linda Water District Water Fund For Five Months Ending November 30,2012 Nov 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 $1,716,031 $8,614,842 $6,790,355 55.92% Water Revenue (Commercial & Fire Det.) 1,822,665 196,842 941,736 880,929 51.67% Water Revenue (Landscape/Irrigation) 4,035,121 443,161 2,386,731 1,648,390 59.15% Water Revenue (Service Charge) 3,755,191 313,618 1,530,879 2,224,312 40.77% Other Operating Revenue 585,929 50,257 352,084 233,845 60.09% Total Operating Revenue: 25,604,103 2,719,909 13,826,272 11,777,831 54.00% Revenue (Non-Operating): Interest 150,000 20,706 46,440 103,560 30.96% Property Tax 1,244,320 17,271 61,296 1,183,024 4.93% Other Non-Operating Revenue 490,262 36,717 233,069 257,193 47.54% Total Non-Operating Revenue: 1,884,582 74,694 340,805 1,543,777 18.08% Total Revenue 27,488,685 2,794,603 14,167,077 13,321,608 51.54% Expenses (Operating): Variable Water Costs(G.W., Import& Power) 12,953,024 867,646 7,097,547 5,855,477 54.79% Salary Related Expenses 6,741,403 762,942 2,503,324 4,238,079 37.13% Supplies &Services: Communications 280,232 9,726 52,261 227,971 18.65% Contractual Services 455,041 30,416 178,913 276,128 39.32% Data Processing 125,866 15,808 40,048 85,818 31.82% Dues & Memberships 57,609 22,528 49,909 7,700 86.63% Fees& Permits 139,165 9,004 67,333 71,832 48.38% Board Election 59,055 - - 59,055 0.00% Insurance 259,656 - 209,355 50,301 80.63% Materials 455,226 49,219 245,458 209,768 53.92% District Activities, Emp Recognition 17,298 1,189 5,615 11,683 32.46% Maintenance 310,320 24,508 128,016 182,304 41.25% Non-Capital Equipment 81,370 10,459 52,016 29,354 63.93% Office Expense 37,702 1,862 17,926 19,776 47.55% Professional Services 749,878 56,892 511,152 238,726 68.16% Training 41,353 2,611 10,879 30,474 26.31% Travel &Conferences 41,902 3,442 9,496 32,406 22.66% Uncollectible Accounts 36,270 - (478) 36,748 -1.32% Utilities 79,050 6,692 41,175 37,875 52.09% Vehicle Equipment 282,400 15,659 126,772 155,628 44.89% Supplies &Services Sub-Total 3,509,393 260,015 1,745,846 1,763,547 49.75% Total Operating Expenses 23,203,820 1,890,603 11,346,717 11,857,103 48.90% Expenses (Non-Operating): Interest on Long Term Debt 2,009,777 146,226 769,978 1,239,799 38.31% Other Expense 118,210 53 11,841 106,369 10.02% Total Non-Operating Expenses: 2,127,987 146,279 781,819 1,346,168 36.74% Total Expenses 25,331,807 2,036,882 12,128,536 13,203,271 47.88% Net Income(Loss) Before Depreciation 2,156,878 757,722 2,038,541 118,337 94.51% Depreciation &Amortization 5,332,175 452,375 2,261,955 3,070,220 42.42% Total Net Income(Loss) ($3,175,297) $305,347 ($223,414) ($2,951,883) 7.04% Yorba Linda Water District Sewer Fund For Five Months Ending November 30,2012 Nov 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 $134,099 $664,534 $884,148 42.91% Locke Ranch Assessments 198,433 28,346 29,892 168,541 15.06% Other Operating Revenue 57,808 1,930 36,158 21,650 62.55% Total Operating Revenue: 1,804,923 164,375 730,584 1,074,339 40.48% Revenue(Non-Operating): Interest 20,000 1,581 6,609 13,391 33.05% Other Non-Operating Revenue 4,175 - 6,483 (2,308) 155.28% Total Non-Operating Revenue: 24,175 1,581 13,092 11,083 54.16% Total Revenue 1,829,098 166,966 743,676 1,086,422 40.66% Expenses(Operating): Salary Related Expenses 907,488 54,184 338,381 569,107 37.29% Supplies&Services: Communications 23,018 732 4,127 18,891 17.93% Contractual Services 34,280 2,368 14,135 20,145 41.23% Data Processing 9,474 1,190 2,769 6,705 29.23% Dues&Memberships 4,583 1,836 3,627 956 79.14% Fees&Permits 12,155 477 7,947 4,208 65.38% Board Election 4,445 - - 4,445 0.00% Insurance 19,544 - 15,757 3,787 80.62% Materials 34,799 1,384 9,087 25,712 26.11% District Activities, Emp Recognition 1,302 89 421 881 32.33% Maintenance 71,650 21,254 48,028 23,622 67.03% Non-Capital Equipment 16,130 2,189 6,290 9,840 39.00% Office Expense 2,823 140 1,349 1,474 47.79% Professional Services 37,582 1,807 23,995 13,587 63.85% Training 4,747 197.0 1,550.0 3,197 32.65% Travel&Conferences 3,498 259 676 2,822 19.33% Uncollectible Accounts 2,730 - (45) 2,775 -1.65% Utilities 5,950 564 3,427 2,523 57.60% Vehicle Equipment 51,499 1,568 28,377 23,122 55.10% Supplies&Services Sub-Total 340,209 36,054 171,517 168,692 50.42% Total Operating Expenses 1,247,697 90,238 509,898 737,799 40.87% 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 1,266,316 90,238 609,898 746,417 40.62% Net Income(Loss)Before Depreciation 673,783 76,718 233,778 340,006 40.74% Depreciation&Amortization 1,270,164 106,914 534,570 735,594 42.09% Total Net Income(Loss) ($696,381) ($31,196) ($300,792) ($396,689) 43.19% ITEM NO. 2.3 AGENDA REPORT Meeting Date: December 18, 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 November 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 1st quarter full-accrual financial statements at the Timely and Transparent Manner Finance audit is provided timely to December 6th 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 November 2012 budget to actual FR 1-G Financial Information to the Manager/ management and the financial statements and the November 2012 investment report at the December Board of Directors,Member Finance Finance-Accounting 18th Committee meeting. Agencies,Management,and the Director Financial Community 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 Genera] 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.