Loading...
HomeMy WebLinkAbout2013-03-25 - Finance-Accounting Committee Meeting Minutes1 MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING Monday, March 25, 2013 12:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The March 25, 2013 meeting of the Yorba Linda Water District’s Finance- Accounting Committee was called to order by Director Hawkins at 12:00 p.m. The meeting was held in the Admin Conference Room at the District’s Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. 2. ROLL CALL COMMITTEE STAFF Director Phil Hawkins, Chair Steve Conklin, Acting General Manager Director Gary T. Melton Stephen Parker, Finance Manager 3. PUBLIC COMMENTS None. 4. ACTION CALENDAR 4.1. Preservation of Tax-Exempt Financing Mr. Parker presented a draft resolution for the Committee’s review. The resolution expresses opposition to current proposals from Congress and the President to reduce or eliminate tax-exempt financing for municipal entities, which would result in significantly higher borrowing costs for municipal governments. The resolution uses language that was drafted by the Government Finance Officers Association, who requested that municipalities adopt similar resolutions and submit them to their congressional representatives. The Committee supported the resolution and requested that it be presented to the Board for consideration. Mr. Parker explained that this resolution had not yet been seen by legal counsel, and therefore might be adjusted or be delayed pending that review. 5. DISCUSSION ITEMS 5.1. FY 2013/14 Budget Calendar Update Mr. Parker presented an updated budget calendar and highlighted changes from the last time this was presented. The budget process is still on pace to be completed by the end of May. 2 5.2. Preliminary 2014 Budget Numbers Mr. Parker presented the preliminary budget numbers for FY13/14. The Committee expressed concern about the level of increases in the budget process. Clarification was given about how the District’s reserves were established and what their levels looked like into the future. Mr. Parker explained that there were two large potential gain contingencies in the form of OCWD Annexation and a lawsuit with the District’s excess carrier. He added that those could not be budgeted on until they actually occurred, and that he expected to complete a mid-year budget should the District obtain Annexation in the fall as expected. It was evident that cuts needed to be made prior to the budget workshop, and staff indicated that they had their marching orders. 5.3. Draft Reserve Policy for FY 2013/14 Mr. Parker presented the draft reserve policy for FY 13/14. He explained that there were not any significant changes other than updating numbers that were required to be updated annually. He further mentioned that this policy would be discussed in the upcoming budget workshop. 5.4. Investment Report for Period Ending February 28, 2013 Mr. Parker presented the investment report for February 2013. Mr. Parker discussed the reserve changes and noted that the investment yield for the month increased to 0.80%. 5.5. Comparison of Investment Types and Yields of Local Water Districts Mr. Parker shared with the Committee the comparison of investment types and yields that was made with five other local water districts as of December 2012. The District, by having a large portion of investments with CalTRUST, has reaped a higher yield than all the other comparative agencies. However, Mr. Parker pointed out that the principal balance of the investments was at risk as a result of CalTRUST’s floating Net Asset Value (NAV), and he intended to decrease the portion of District’s investments with any investments that contain a floating NAV. The Committee thanked staff for the comparison and shared that this was a valuable exercise and that the Committee would like this comparison to continue annually. 5.6. Budget-to-Actual Results for February 2013 Mr. Parker presented the February budget-to-actual information. The trends were similar to those that had been established so far, including supplies and services trending as budgeted, personnel expenses trending lower than budgeted due to unfilled positions, and water revenue and variable water costs trending higher than budgeted due to higher than expected demands. 3 5.7. Detail of Variances in CY Budget (To be provided at the meeting.) Mr. Parker presented the primary variances in the current year budget-to- actual statements through February 2013. The Committee reviewed the information and provided general discussion of the items. The Committee pointed out that the information provided only identified items that exceeded the budget. 5.8. Future Agenda Items and Staff Tasks None. 6. ADJOURNMENT 6.1. The meeting was adjourned at 1:28 p.m. The next Finance-Accounting Committee meeting is scheduled to be held Monday, April 22, 2013 at 12:00 p.m.