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Home My WebLink About2013-08-26 - Finance-Accounting Committee Meeting Agenda PacketYorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT FINANCE - ACCOUNTING COMMITTEE MEETING Monday, August 26, 2013, 12:00 PM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. ROLL CALL COMMITTEE Director Phil Hawkins, Chair Director Gary T. Melton STAFF Steve Conklin, Acting General Manager Delia Lugo, Acting Finance Manager 3. 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. 4. ACTION CALENDAR This portion of the agenda is for items where staff presentations and committee discussions are needed prior to formal committee action. 4.1. Unaudited Financial Statements for Period Ending June 30, 2013 Recommendation. That the Committee recommend the Board of Directors receive and file the Unaudited Financial Statements for the Period Ending June 30, 2013. 5. 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. 5.1. Investment Report for the Period Ending July 31, 2013 5.2. Budget -to- Actual Reports for July 31, 2013 5.3. Future Agenda Items and Staff Tasks 6. ADJOURNMENT 6.1. The next Finance - Accounting Committee meeting is scheduled to be held Monday, September 23, 2013 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. AGENDA REPORT Meeting Date: August 26, 2013 To: Finance - Accounting Committee From: Steve Conklin, Acting General Manager Presented By: Delia Lugo, Acting Finance Manager Prepared By: Delia Lugo, Acting Finance Manager Dept: ITEM NO. 4.1 Finance Subject: Unaudited Financial Statements for Period Ending June 30, 2013 SUMMARY: Presented are the Unaudited Financial Statements for the Period Ending June 30, 2013 for the District. STAFF RECOMMENDATION: That the Committee recommend the Board of Directors receive and file the Unaudited Financial Statements for the Period Ending June 30, 2013. DISCUSSION: For the period ending June 30, 2013, 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 105.6% of annual budget, which is 5.6% higher when compared to the historical trend for this point of the year. Other Operating Revenue is 113.96 of annual budget. Sewer Other Operating Revenue, as presented, is 100.46% of annual budget. Variable Water Costs are 106.73% of budget, due to higher than budgeted water consumptions as well as purchasing more expensive import water prior to the January 1St rate increase. Salary Related Expenses are 101.46% of budget at the end of this 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 June 2013 is shown in the calculation as 172 %. This shows strong financial health for the District as it pertains to the debt service ratio. 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: FY 2013 4th Qtr Consolidated Balance Sheet.xlsx 2013 4th Qtr Consolidated Stmt.xlsx 2013 Qtr 4 Water Stmt.xlsx 2013 Qtr 4 Sewer Stmt.xlsx 2013 Qtr 4 Debt Service Calc.xlsx FY 2013 4th Consolidated Balance Sheet FY 2013 4th Qtr Consolidted Statement FY 2013 4th Qtr Water Statement FY 2013 4th Qtr Sewer Statement FY 2013 4th Qtr Debt Servcie Calculation Backup Material Backup Material Backup Material Backup Material Backup Material YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF NET ASSETS June 30, 2013 (With June 30, 2012 for comparison only) ASSETS CURRENT ASSETS: Cash and cash equivalents Investment Accounts receivable - water and sewer services Accounts receivable - property taxes Accrued interest receivable Prepaid expenses & other deposits Inventory TOTAL CURRENT ASSETS NONCURRENT ASSETS: Bond issuance costs Other post - employment benefit (OPEB) asset Capital assets: Non - depreciable Depreciable, net of accumulated depreciation TOTAL NONCURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES: Accounts payable Accrued expenses Accrued interest payable Certificates of Participation - current portion Refunding Revenue Bond - current portion Compensated absences Customer and construction deposits Deferred revenue TOTAL CURRENT LIABILITIES LONG -TERM LIABILITIES (LESS CURRENT PORTION) June 2013 June 2012 $ 17,438,231 $ 20,152,582 2,137,144 2,157,786 3,983,015 3,813,696 16,885 128,479 9,312 18,981 932,486 243,771 221,477 288,204 24,738,550 26,803,499 1,410,061 725,802 176,295 32,630 6,099,294 10,959,085 195,242,684 190,090,770 202,928,334 201,808,287 227,666,884 228,611,786 6,396,061 4,894,637 452,963 152,907 441,081 474,418 705,000 925,000 260,000 - 241,597 266,861 300,833 230,597 414,694 413,531 9,212,229 7,357,951 Deferred annexation revenue 13,823,421 14,064,550 Compensated absences 765,057 800,582 Refunding Revenue Bond 8,070,000 - Certificate of Participation 32,996,188 41,353,128 TOTAL LONG TERM LIABILITIES (LESS CURRENT PORTION) TOTAL LIABILITIES NET ASSETS: 55,654,666 56,218,260 64,866,895 63,576,211 $ 162,799,989 $ 165,035,575 YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS For the period ended June 30, 2013 (With fiscal year ended June 2013 for comparison only) June 2013 June 2012 OPERATING REVENUES: Water sales $ 26,369,939 $ 24,998,675 Sewer revenues 1,762,038 1,785,805 Other operating revenues 725,818 854,155 TOTAL OPERATING REVENUES 28,857,795 27,638,635 OPERATING EXPENSES Variable water costs 13,825,205 12,275,854 Personnel services 7,387,278 6,981,798 Supplies and services 4,210,130 3,811,296 Depreciation and amortization 6,863,066 6,595,723 TOTAL OPERATING EXPENSES 32,285,679 29,664,671 OPERATING INCOME /(LOSS) (3,427,884) (2,026,036) NONOPERATING REVENUES (EXPENSES): Property taxes 1,340,915 1,273,856 Investment income 137,603 277,137 Interest expense (1,780,123) (1,626,191) Other nonoperating revenues 568,135 795,982 Other nonoperating expenses (39,807) (108,988) TOTAL NONOPERATING REVENUES /EXPENSES 226,723 611,796 NET INCOME /(LOSS) BEFORE CAPITAL CONTRIBUTIONS & EXTRAORDINARY ITEM(S) (3,201,161) (1,414,240) EXTRAORDINARY ITEM(S) (5,000,000) CAPITAL CONTRIBUTIONS 958,926 17,214,140 CHANGES IN NET ASSETS (2,242,235) 10,799,900 NET ASSETS - BEGINNING OF YEAR 165,042,224 154,235,675 NET ASSETS - FOR PERIOD END MARCH 31, 2013 $ 162,799,989 $ 165,035,575 Yorba Linda Water District Summary Financial Report Water & Sewer Funds For The Period Ending June 30, 2013 Revenue (Operating): Water Revenue (Residential) Water Revenue (Commercial & Fire Det.) Water Revenue (Landscape /Irrigation) Water Revenue (Service Charge) Sewer Charge Revenue Locke Ranch Assessments Other Operating Revenue Total Operating Revenue: Revenue (Non- Operating) Original YTD YTD YTD Budget Actual Under(Over) % of FY 2013 FY 2013 Budget Budget $15,405,197 $16,596,681 (1,191,484) 107.73% 1,822,665 1,890,271 (67,606) 103.71% 4,035,121 4,161,528 (126,407) 103.13% 3,755,191 3,721,459 33,732 99.10% 1,548,682 1,561,849 (13,167) 100.85% 198,433 200,189 (1,756) 100.88% 643,737 725,818 (82,081) 112.75% 27,409,026 28,857,795 (1,448,769) 105.29% Interest 170,000 137,603 32,397 80.94% Property Tax 1,244,320 1,340,915 (96,595) 107.76% Other Non - Operating Revenue 494,437 568,135 (73,698) 114.91% Total Non - Operating Revenue: 1,908,757 2,046,653 (137,896) 107.22% Total Revenue 29,317,783 958,926 0.00% 2,684,083 30,904,448 (1,586,665) 105.41% 6,602,339 6,863,066 (260,727) Expenses (Operating): ($3,918,256) ($2,242,235) ($1,676,021) 57.23% Variable Water Costs (G.W., Import & Power) 12,953,024 13,825,205 (872,181) 106.73% Salary Related Expenses 7,648,891 7,387,278 261,613 96.58% Supplies & Services 3,896,180 4,210,130 (313,950) 108.06% Total Operating Expenses 24,498,095 25,422,613 (924,518) 103.77% Expenses (Non- Operating): Interest on Long Term Debt Other Expense Total Non - Operating Expenses: Total Expenses Net Income (Loss) Before Capital Contributions Capital Contributions Net Income (Loss) Before Depreciation Depreciation & Amortization Total Net Income (Loss) 2,011,395 124,210 1,780,123 39,807 231,272 84,403 88.50% 32.05% 2,135,605 1,819,930 315,675 85.22% 26,633,700 27,242,543 (608,843) 102.29% 2,684,083 3,661,905 (977,822) 136.43% - 958,926 958,926 0.00% 2,684,083 4,620,831 (18,896) 172.16% 6,602,339 6,863,066 (260,727) 103.95% ($3,918,256) ($2,242,235) ($1,676,021) 57.23% Yorba Linda Water District Water Fund For The Period Ending June 30, 2013 YTD YTD YTD Budget Actual Under(Over) % of FY 2013 FY 2013 Budget Budget Revenue (Operating) Water Revenue (Residential) $15,405,197 $16,596,681 (1,191,484) 107.73% Water Revenue (Commercial & Fire Det.) 1,822,665 1,890,271 (67,606) 103.71% Water Revenue (Landscape /Irrigation) 4,035,121 4,161,528 (126,407) 103.13% Water Revenue (Service Charge) 3,755,191 3,721,459 33,732 99.10% Other Operating Revenue 585,929 667,743 (81,814) 113.96% Total Operating Revenue: 25,604,103 27,037,682 (1,433,579) 105.60% Revenue (Non- Operating): 0.00% 259,656 242,339 17,317 Interest 150,000 121,239 28,761 80.83% Property Tax 1,244,320 1,340,915 (96,595) 107.76% Other Non - Operating Revenue 490,262 573,119 (82,857) 116.90% Total Non - Operating Revenue: 1,884,582 2,035,273 (150,691) 108.00% Total Revenue Expenses (Operating): Variable Water Costs (G.W., Import & Power) Salary Related Expenses Supplies & Services: Communications Contractual Services Data Processing Dues & Memberships Fees & Permits Board Election Insurance Materials District Activities, Emp Recognition Maintenance Non - Capital Equipment Office Expense Professional Services Training Travel & Conferences Uncollectible Accounts Utilities Vehicle Equipment Supplies & Services Sub -Total Total Operating Expenses Expenses (Non- Operating): Interest on Long Term Debt Other Expense Total Non - Operating Expenses: Total Expenses 27,488,685 29,072,955 (1,584,270) 105.76% 12,953,024 13,825,205 (872,181) 106.73% 6,741,403 6,562,271 179,132 101.46% 280,232 186,569 93,663 66.58% 455,041 440,656 14,385 96.84% 125,866 124,249 1,617 98.72% 57,609 53,264 4,345 92.46% 139,165 173,118 (33,953) 124.40% 47,988 - 47,988 0.00% 259,656 242,339 17,317 93.33% 451,506 733,933 (282,427) 162.55% 17,298 20,054 (2,756) 115.93% 350,383 352,227 (1,844) 100.53% 109,782 163,054 (53,273) 148.53% 37,702 39,440 (1,738) 104.61% 740,578 873,105 (132,527) 117.90% 41,353 19,742 21,611 47.74% 40,833 23,882 16,951 58.49% 36,270 32,089 4,181 88.47% 79,050 73,909 5,141 93.50% 282,400 327,849 (45,449) 116.09% 3,552,711 3,879,479 (326,768) 109.20% 23,247,138 24,266,955 (1,019,817) 104.39% 2,009,777 1,780,123 229,654 88.57% 118,210 39,807 78,403 33.67% 2,127,987 1,819,930 308,057 85.52% 25,375,125 26,086,885 (711,760) 102.80% Net Income (Loss) Before Capital Contributions 2,113,560 2,986,070 (872,510) 141.28% Capital Contributions - 543,073 543,073 0.00% Net Income (Loss) Before Depreciation 2,113,560 3,529,143 (329,437) 166.98% Depreciation &Amortization 5,332,175 5,562,388 (230,213) 104.32% Total Net Income (Loss) ($3,218,615) ($2,033,245) ($1,185,370) 63.17% Yorba Linda Water District $1,548,682 $1,561,849 Sewer Fund 100.85% For The Period Ending June 30, 2013 198,433 200,189 YTD YTD YTD Other Operating Revenue Budget Actual Under(Over) % of (267) FY 2013 FY 2013 Budget Budget Revenue (Operating) Sewer Charge Revenue $1,548,682 $1,561,849 (13,167) 100.85% Locke Ranch Assessments 198,433 200,189 (1,756) 100.88% Other Operating Revenue 57,808 58,075 (267) 100.46% Total Operating Revenue: 1,804,923 1,820,113 (15,190) 100.84% Revenue (Non- Operating): Interest 20,000 16,364 3,636 81.82% Other Non - Operating Revenue 4,175 (4,984) 9,159 - 119.38% Total Non - Operating Revenue: 24,175 11,380 12,795 47.07% Total Revenue 1,829,098 1,831,493 (2,395) 100.13% Expenses (Operating): Salary Related Expenses 907,488 825,007 82,481 91.58% Supplies & Services: Communications 23,018 12,578 10,440 54.64% Contractual Services 34,280 33,400 880 97.43% Data Processing 9,474 9,177 297 96.87% Dues & Memberships 4,583 4,140 443 90.33% Fees & Permits 12,155 15,303 (3,148) 125.90% Board Election 3,612 - 3,612 0.00% Insurance 19,544 14,935 4,609 76.42% Materials 34,519 18,063 16,456 52.33% District Activities, Emp Recognition 1,302 1,367 (65) 104.99% Maintenance 74,665 103,272 (28,607) 138.31% Non - Capital Equipment 18,269 18,415 (147) 100.80% Office Expense 2,823 2,903 (80) 102.83% Professional Services 36,882 30,274 6,608 82.08% Training 4,747 5,365 (618) 113.02% Travel & Conferences 3,418 1,577 1,841 46.14% Uncollectible Accounts 2,730 4,293 (1,563) 157.25% Utilities 5,950 6,317 (367) 106.17% Vehicle Equipment 51,499 49,272 2,227 95.68% Supplies & Services Sub -Total 343,469 330,651 12,818 96.27% Total Operating Expenses 1,250,957 1,155,658 95,299 92.38% 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 1,258,575 1,155,658 102,917 91.82% Net Income (Loss) Before Capital Contributions 570,523 675,835 (105,312) 118.46% Capital Contributions - 415,853 415,853 0.00% Net Income (Loss) Before Depreciation 570,523 1,091,688 310,541 191.35% Depreciation &Amortization 1,270,164 1,300,678 (30,514) 102.40% Total Net Income (Loss) ($699,641) ($208,990) ($490,651) 29.87% Yorba Linda Water District Water Fund For The Period Ending June 30, 2013 YTD Included in Actual Debt Service FY 2013 Calculation OPERATING REVENUES: Water sales $ 26,369,939 $ 26,369,939 Other operating revenues 667,743 667,743 TOTAL OPERATING REVENUES 27,037,682 27,037,682 OPERATIANG EXPENSES: Variable water costs 13,825,205 13,825,205 Payroll and Related Expenses 6,562,271 6,562,271 Supplies and services 3,879,479 3,879,479 Depreciation and amortization 5,562,388 TOTAL OPERATING EXPENSES 29,829,343 24,266,955 OPERATING INCOME(LOSS) (2,791,661) 2,770,727 NONOPERATING REVENUES (EXPENSES): Property taxes 1,340,915 1,340,915 Investment income 121,239 121,239 Interest expense (1,780,123) Other nonoperating revenues 573,119 573,119 Other nonoperating expenses (39,807) (39,807) TOTAL NONOPERATING REVENUES /EXPENSES 215,343 1,995,466 NET INCOME(LOSS) BEFORE CAPITAL (2,576,318) 4,766,193 CONTRIBUTIONS CAPTIAL CONTRIBUTIONS 543,073 CHANGES IN NET ASSETS (2,033,245) DEBT SERVICE RATIO CALCULATION Net Revenues 4,766,193 Debt Service 2,766,871 % 172% 4,766,193 AGENDA REPORT Meeting Date: August 26, 2013 To: Finance - Accounting Committee From: Steve Conklin, Acting General Manager Presented By: Delia Lugo, Acting Finance Dept: Manager Prepared By: Delia Lugo, Acting Finance Manager Subject: Investment Report for the Period Ending July 31, 2013 SUMMARY: ITEM NO. 5.1 Finance Staff is submitting the July 2013 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 July 310, 2013 is 0.69 %. The overall decrease in the investment balance from the previous month is approximately $914,000. A couple of the larger balance changes include a decrease in the Water Operating fund of approximately $2,500,000 and an increase in the Reserve for Debt Service of $1,420,000. With the Board of Directors approval of Resolution No. 13 -07 Adopting the Financial Reserves Policy for Fiscal Year 2013 -14 in July 2013, current reserve balances reflect the noted "Target Level" from the Reserve Policy. The notable changes are that the Debt Service Reserve balance has been met at $2,723,509 and the Employee Liabilities Reserve has been established at $100,000. 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: Nam(: Description: Type: Invst Rpt 7- 13.xlsx Investment Report for Period Ending July 31, 2013 Backup Material Invst Agenda Backup -July 2013.x1s2i Agenda Backup Backup Material Yorba Linda Water District Investment Portfolio Report July 31, 2013 Market % Date of Percent Value Par of Total Institution Maturity Yield Checking Account: $ 505,857 $ 505,857 Wells Fargo Bank 3,716 3,716 Pershing $ 509,573 $ 509,573 2.73% Total 0.00% Money Market Accounts $ 54,957 $ 54,957 Wells Fargo Money Market 0.05% 23,246 23,246 US Bank (Revenue Bonds) 0.04% 5,474,305 5,474,305 Bank of the West 0.34% $ 5,552,508 $ 5,552,508 29.77% Total 0.34% Federal Agency Securities $ 491,195 $ 500,000 Fannie Mae 05/25/18 1.14% 487,525 500,000 Federal Home Loan Bank 06/12/18 1.02% 489,720 500,000 Fannie Mae 06/12/18 0.81% 488,695 500,000 Federal Home Loan Bank 06/13/13 1.12% 488,990 500,000 Federal Home Loan Bank 06/20/13 1.15% 2,136,192 2,144,397 Federal Home Loan Bank 05/28/14 1.36% $ 4,582,317 $ 4,644,397 24.57% Total 05/14/18 1.19% Certificates of Deposits $ 240,153 $ 248,000 CIT Bank, Salt Lake 05/22/18 1.23% 240,153 248,000 Discover 05/22/18 1.23% 240,153 248,000 Goldman Sachs Bank 05/22/18 1.23% 240,210 248,000 Beal Bank 05/23/18 1.03% 241,636 248,000 Wells Fargo 04/27/18 0.92% 237,720 247,000 Barclays Bank 05/14/18 0.72% 241,041 248,000 State Bank of India 05/14/18 1.18% 242,113 249,000 Webster Bank 05/03/18 0.91% 240,128 248,000 American Express Centurion Bank 05/28/18 1.23% 240,007 248,000 GE Capital Bank 05/24/18 1.13% 244,867 249,000 Merrick Bank 05/24/17 0.76% 243,903 248,000 BMW Bank 05/24/17 0.91% 246,694 249,000 Firstbank Puerto Rico 05/24/16 0.75% 241,074 249,000 Oriental Bank & Trust 05/29/18 1.08% 241,164 249,000 Silvergate Bank 05/30/18 1.03% 241,049 249,000 Enterprise Bank & TR Co Lowell 05/30/18 1.03% 241,047 249,000 Safra National Bank 05/31/18 1.03% 240,094 248,000 Townebank Portsmouth 05/31/18 1.03% 241,067 249,000 Mascona Savings Bank 05/29/18 1.03% $ 4,584,275 $ 4,719,000 24.58% Total 0.81% Pooled Investment Accounts: $ 351,100 $ 351,100 Local Agency Investment Fund 0.27% 3,071,282 3,081,142 Ca1TRUST Medium Term 0.58% $ 3,422,382 $ 3,432,242 18.35% 0.55% $ 18,651,055 $ 18,857,720 100% Total Investments 0.69% 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 7/31/13 Investment Summary Report Below is a chart summarizing the yields as well as terms and maturities for the month of July 2013: Avg. Portfolio Avg. Portfolio # of Month Yield Without Yield With Days to of 2013 CalTRUST CalTRUST Maturity July 0.72% 0.69% 703 Below is are charts comparing operating fund interest for current and prior fiscal years. Actual Interest Monthly - July Year -to -Date 7/31/2012 7/31/2013 $ 2,021 $ 9,288 $ 2,021 $ 9,288 Budget 2012/2013 2013/2014 Interest Budget, July YTD $ 12,500 $ 7,250 Interest Budget, Annual $ 150,000 $ 87,000 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: June 2013 % Alloc July 2013 % Alloc Fund Description Balance 6/30/2013 Balance 7/31/2013 Water Operating Reserve $ 5,015,576 25.56% $ 2,023,304 11.16% Water Emergency Reserve 990,234 5.04% 989,315 5.45% Water Capital Project Reserve 7,774,174 39.60% 7,760,478 42.76% Water Reserve for Debt Service 1,304,228 6.64% 2,723,509 15.01% Maintenance Reserve 200,715 1.02% 200,894 1.11% Employee Liability Reserve - - 100,000 0.55% COP Revenue Bond 2008 - Reserve 2,160,389 11.01% 2,159,438 11.90% Sewer Operating 16,174 0.08% 16,207 0.09% Sewer Emergency Reserve 1,001,806 5.10% 1,001,916 5.52% Sewer Capital Project Reserve 1,167,222 5.95% 1,170,136 6.45% $ 19,630,518 100.00% $ 18,145,197 100.00% Wells Fargo Bank Checking Water Operating (296,566) 194,513 Sewer Operating 230,719 311,345 (65, 847) 505,858 Totals $ 19,564,671 $ 18,651,055 AGENDA REPORT Meeting Date: August 26, 2013 To: Finance - Accounting Committee From: Steve Conklin, Acting General Manager Presented By: Delia Lugo, Acting Finance Dept: Manager Prepared By: Delia Lugo, Acting Finance Manager Subject: Budget -to- Actual Reports for July 31, 2013 DISCUSSION: ITEM NO. 5.2 Engineering 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 July 2013. For the month of July 2013, the District's water revenue is 9.2% of annual budget, which is 2.6% lower than the historical trend for this point in the year. The majority of the Water Fund's individual Supplies and Services expenses are below budget, with the exceptions of Dues and Memberships and Materials. In the month of July, Dues and Membership is presented at 35.07% of annual budget due to the payment of $24,268 to LAFCO for annual dues. Materials is presented at 11.38% of annual budget due to purchases pertaining to replacement meters, water service repair parts and hydrant repair parts. Overall, Sewer Supplies and Services expenses are trending below budget, with the same exceptions noted in the Water 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: July 2013 consolidated stmt.xlsx July 2013 Consolidated Statement Backup Material July 2013 Water Stmt.xlsx July 2013 Water Statement Backup Material July 2013 Sewer Stmt.xlsx July 2013 Sewer Statement Backup Material Revenue (Operating): Water Revenue (Residential) Water Revenue (Commercial & Fire Det.) Water Revenue (Landscape /Irrigation) Water Revenue (Service Charge) Sewer Charge Revenue Locke Ranch Assessments Other Operating Revenue Total Operating Revenue: Revenue (Non- Operating): Interest Property Tax Other Non - Operating Revenue Total Non - Operating Revenue: Yorba Linda Water District Summary Financial Report Water & Sewer Funds For One Month Ending July 31, 2013 Annual YTD July YTD YTD YTD Budget Budget Actual Actual Under(Over) % of FY 2014 FY 2014 FY 2014 FY 2014 Budget Budget $16,217,590 $1,351,466 $1,565,886 $1,565,886 14,651,704 9.66% 2,020,223 168,352 171,316 171,316 1,848,907 8.48% 4,794,156 399,513 436,322 436,322 4,357,834 9.10% 4,468,716 372,393 313,194 313,194 4,155,522 7.01% 1,550,530 129,211 132,452 132,452 1,418,078 8.54% 200,797 16,733 - - 200,797 0.00% 717,749 59,812 124,828 124,828 592,921 17.39% 29,969,761 2,497,480 2,743,998 2,743,998 27,225,763 9.16% 87,000 7,250 9,288 9,288 77,712 10.68% 1,264,672 105,389 - - 1,264,672 0.00% 509,150 42,429 34,252 34,252 474,898 6.73% 1,860,822 155,069 43,540 43,540 1,817,282 2.34% Total Revenue 31,830,683 2,662,649 2,787,638 2,787,638 29,043,046 8.76% Expenses (Operating) Variable Water Costs (G.W., Import & Power) 13,767,658 1,147,305 686,813 686,813 13,080,845 4.99% Salary Related Expenses 7,904,873 658,739 495,763 495,763 7,409,110 6.27% Supplies & Services 4,225,654 352,138 146,534 146,534 4,079,120 3.47% Total Operating Expenses 25,898,185 2,158,182 1,329,110 1,329,110 24,569,075 5.13% Expenses (Non- Operating): Interest on Long Term Debt 1,815,317 151,276 142,044 142,044 1,673,273 7.82% Other Expense 77,400 6,450 2,238 2,238 75,162 2.89% Total Non - Operating Expenses: 1,892,717 157,726 144,282 144,282 1,748,435 7.62% Total Expenses 27,790,902 293169909 194739392 194739392 2693179610 6.30% Net Income (Loss) Before Capital Contributions 4,039,681 3369640 193149146 193149146 297269636 32.63% Capital Contributions 83,371 83,371 83,371 0.00% Net Income (Loss) Before Depreciation 4,039,681 336,640 1,397,617 1,397,617 2,808,906 34.69% Depreciation & Amortization 6,897,941 574,828 588,495 588,495 6,309,446 8.53% Total Net Income (Loss) ($2,868,260) ($238,188) $809,022 $809,022 ($3,667,282) - 28.30% Yorba Linda Water District Water Fund For One Month Ending July 31, 2013 Annual YTD JUL YTD YTD YTD Budget Budget Actual Actual Under(Over) % of Annual FY 2014 FY 2014 FY 2014 FY 2014 FY Budget Budget Revenue (Operating) Water Revenue (Residential) $16,217,590 $1,351,466 $1,565,886 $1,565,886 14,651,704 9.66% Water Revenue (Commercial & Fire Det.) 2,020,223 168,352 171,316 171,316 1,848,907 8.48% Water Revenue (Landscape /Irrigation) 4,794,156 399,513 436,322 436,322 4,357,834 9.10% Water Revenue (Service Charge) 4,468,716 372,393 313,194 313,194 4,155,522 7.01% Other Operating Revenue 681,074 56,756 102,782 102,782 578,292 15.09% Total Operating Revenue: 28,181,759 2,348,480 2,589,500 2,589,500 25,592,259 9.19% Revenue (Non- Operating): 23,191 - - 278,293 0.00% 568,676 Interest 75,000 6,250 9,281 9,281 65,719 12.37% Property Tax 1,264,672 105,389 - - 1,264,672 0.00% Other Non - Operating Revenue 501,200 41,767 36,890 36,890 464,310 7.36% Total Non - Operating Revenue: 1,840,872 153,406 46,171 46,171 1,794,701 2.51% Total Revenue 30,022,631 2,501,886 2,635,671 2,635,671 27,386,960 8.78% Expenses (Operating): Variable Water Costs (G.W., Import & Power) Salary Related Expenses Supplies & Services: Communications Contractual Services Data Processing Dues & Memberships Fees & Permits Insurance Materials District Activities, Emp Recognition Maintenance Non - Capital Equipment Office Expense Professional Services Training Travel & Conferences Uncollectible Accounts Utilities Vehicle Equipment Supplies & Services Sub -Total Total Operating Expenses Expenses (Non- Operating): Interest on Long Term Debt Other Expense Total Non - Operating Expenses: Total Expenses Net Income (Loss) Before Capital Contributions Capital Contributions Net Income (Loss) Before Depreciation Depreciation & Amortization Total Net Income (Loss) 13,767,658 1,147,305 686,813 686,813 13,080,845 4.99% 6,987,204 582,267 434,979 434,979 6,552,225 6.59% 283,371 23,614 8,352 8,352 275,019 2.95% 504,089 42,007 13,268 13,268 490,821 2.63% 158,779 13,232 129 129 158,650 0.08% 67,021 5,585 23,507 23,507 43,514 35.07% 152,224 12,685 (1,121) (1,121) 153,345 -0.74% 278,293 23,191 - - 278,293 0.00% 568,676 47,390 64,725 64,725 503,951 11.38% 23,390 1,949 - - 23,390 0.00% 357,243 29,770 5,547 5,547 351,696 1.55% 121,534 10,128 3,102 3,102 118,432 2.55% 42,920 3,577 3,081 3,081 39,839 7.18% 747,785 62,315 (498) (498) 748,283 -0.07% 64,403 5,367 (79) (79) 64,482 -0.12% 48,389 4,032 1,011 1,011 47,378 2.09% 23,250 1,938 (30) (30) 23,280 -0.13% 83,700 6,975 - - 83,700 0.00% 321,250 26,771 9,539 9,539 311,711 2.97% 3,846,317 320,526 130,533 130,533 3,715,784 3.39% 24,601,179 2,050,098 1,252,325 1,252,325 23,348,854 5.09% 1,815,317 71,400 142,044 2,238 142,044 2,238 1,673,273 69,162 7.82% 3.13% 1,886,717 144,282 144,282 1,742,435 7.65% 26,487,896 2,050,098 1,396,607 1,396,607 25,091,289 5.27% 3,534,735 451,788 1,239,064 1,239,064 2,295,671 35.05% - - 81,704 81,704 81,704 0.00% 3,534,735 451,788 1,320,768 1,320,768 2,377,375 37.37% 5,598,638 466,553 478,735 478,735 5,119,903 8.55% ($2,063,903) ($14,766) $842,033 $842,033 ($2,905,936) -40.80% Revenue (Operating): Sewer Charge Revenue Locke Ranch Assessments Other Operating Revenue Total Operating Revenue: Revenue (Non- Operating): Interest Other Non - Operating Revenue Total Non - Operating Revenue: Total Revenue Expenses (Operating): Salary Related Expenses Supplies & Services: Communications Contractual Services Data Processing Dues & Memberships Fees & Permits Insurance Materials District Activities, Emp Recognition Maintenance Non - Capital Equipment Office Expense Professional Services Training Travel & Conferences Uncollectible Accounts Utilities Vehicle Equipment Supplies & Services Sub -Total Total Operating Expenses Expenses (Non- Operating): Interest Expense Other Expense Total Non - Operating Expenses: Total Expenses Yorba Linda Water District Sewer Fund For One Month Ending July 31, 2013 Annual YTD JUL YTD YTD YTD Budget Budget Actual Actual Under(Over) % of FY 2014 FY 2014 FY 2014 FY 2014 Budget Budget $1,550,530 $129,211 $132,452 $132,452 1,418,078 8.54% 200,797 16,733 - - 200,797 0.00% 36,675 3,056 22,046 22,046 14,629 60.11% 1,788,002 149,000 154,498 154,498 1,633,504 8.64% 12,000 1,000 7 7 11,993 0.06% 7,950 663 (2,638) (2,638) 10,588 - 33.18% 19,950 1,663 (2,631) (2,631) 22,581 - 13.19% 1,807,952 150,663 151,867 151,867 1,656,085 8.40% 917,669 76,472 60,784 60,784 856,885 6.63% 21,829 1,819 629 629 21,200 2.88% 38,751 3,229 966 966 37,785 2.49% 11,951 996 10 10 11,941 0.08% 5,314 443 1,769 1,769 3,545 33.29% 15,141 1,262 1,543 1,543 13,598 10.19% 20,947 1,746 - - 20,947 0.00% 19,099 1,592 6,215 6,215 12,884 32.54% 1,761 147 - - 1,761 0.00% 121,908 10,159 418 418 121,490 0.34% 16,417 1,368 379 379 16,038 2.31% 3,231 269 232 232 2,999 7.18% 37,425 3,119 1,073 1,073 36,352 2.87% 6,757 563 649 649 6,108 9.60% 4,062 339 76 76 3,986 1.87% 1,750 146 (9) (9) 1,759 -0.51% 7,100 592 - - 7,100 0.00% 45,899 3,825 2,051 2,051 43,848 4.47% 379,342 31,612 16,001 16,001 363,341 4.22% 1,297,011 108,084 76,785 76,785 1,220,226 5.92% - - - 0.00% 6,000 500 6,000 0.00% 6,000 500 6,000 0.00% 1,303,011 108,584 76,785 76,785 1,226,226 5.89% Net Income (Loss) Before Capital Contributions 504,941 42,078 75,082 75,082 429,859 14.87% Capital Contributions 1,667 1,667 1,667 0.00% Net Income (Loss) Before Depreciation 504,941 42,078 76,749 76,749 431,526 15.20% Depreciation & Amortization 1,299,298 108,275 109760 109,760 1,189,538 8.45% Total Net Income (Loss) ($794,357) ($66,196) ($33,011) ($33,011) ($761,346) 4.16% Capital - Direct Labor (53) (53)