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Home My WebLink About2014-04-28 - Finance-Accounting Committee Meeting Agenda PacketYorba Linda Hater District AGENDA YORBA LINDA WATER DISTRICT FINANCE - ACCOUNTING COMMITTEE MEETING Monday, April 28, 2014, 4:00 PM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. ROLL CALL COMMITTEE Director Phil Hawkins, Chair Director Michael J. Beverage STAFF Steve Conklin, Acting General Manager Delia Lugo, 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. Investment Report for the Period Ending March 31, 2014 Recommendation. That the Committee recommend the Board of Directors receive and file the Investment Report for the Period Ending March 31, 2014. 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. Budget to Actual Results for March 2014 5.2. Potential Revisions to Water Rules and Regulations and Continuous Service Agreement (Verbal Report) 5.3. Future Agenda Items and Staff Tasks 6. ADJOURNMENT 6.1. The next Finance - Accounting Committee meeting is scheduled to be held Tuesday, May 20, 2014 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. 4.1 AGENDA REPORT Meeting Date: April 28, 2014 To: Finance - Accounting Committee From: Steve Conklin, Acting General Manager Presented By: Delia Lugo, Finance Manager Dept: Prepared By: Kelly McCann, Senior Accountant Subject: Investment Report for the Period Ending March 31, 2014 Finance SUMMARY: Staff is submitting the March 2014 Monthly Investment Reports for the Committee's review. STAFF RECOMMENDATION: That the Committee recommend the Board of Directors receive and file the Investment Report for the Period Ending March 31, 2014. 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 March 31, 2014 is 0.70 %. The overall decrease in the investment balance from the previous month is approximately $119,000. A large balance change includes a decrease in the Water Operating Reserve of $203,000 due to the March 31, 2014 Debt Service interest payment in the amount of $865,479. 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: 11ai lu. Description: Type: Invst Rpt 3- 14.xlsx Invst Rpt 3 -14 Backup Material Invst Agenda Backup - March 2014.xlsx Invst Agenda Backup - March 2014 Backup Material Yorba Linda Water District Investment Portfolio Report March 31, 2014 Market % Date of Percent Value Par of Total Institution Maturity Yield Checking Account. $ 214,312 $ 214,312 Wells Fargo Bank 42,845 42,845 Pershing $ 257,157 $ 257,157 1.24% Total 0.00% Money Market Accounts $ 54,968 7,576 3,631,685 $ 54,968 7,576 3,631,685 Wells Fargo Money Market US Bank (Revenue Bonds) Bank ofthe West 1.22% 0.03% 0.03% 0.24% $ 3,694,229 $ 3,694,229 17.88% Total 0.24% Federal Agency Securities: Goldman Sachs Bank 05/22/18 1.22% $ 489,725 $ 500,000 Fannie Mae 05/25/18 1.14% 248,000 487,635 04/27/18 500,000 Federal Home Loan Bank 06/12/18 1.02% Barclays Bank 495,380 0.71% 500,000 Fannie Mae 06/12/18 0.80% 05/14/18 489,150 500,000 Federal Home Loan Bank 06/13/18 1.12% 0.91% 489,385 243,791 500,000 Federal Home Loan Bank 06/20/18 1.14% 2,119,272 248,000 2,115,000 Federal Home Loan Bank 05/28/14 1.37% $ 4,570,547 $ 4,615,000 22.12% Total 1.19% Certificates ofDeposits $ 243,811 $ 248,000 CIT Bank, Salt Lake 05/22/18 1.22% 243,615 248,000 Discover 05/22/18 1.22% 243,881 248,000 Goldman Sachs Bank 05/22/18 1.22% 243,876 248,000 Beal Bank 05/23/18 1.01% 245,391 248,000 Wells Fargo 04/27/18 0.90% 242,218 247,000 Barclays Bank 04/30/18 0.71% 244,607 248,000 State Bank of India 05/14/18 1.16% 245,721 249,000 Webster Bank 05/03/18 0.91% 243,791 248,000 American Express Centurion Bank 05/23/18 1.22% 241,847 248,000 GE Capital Bank 05/24/18 1.12% 247,850 249,000 Merrick Bank 05/24/17 0.75% 246,859 248,000 BMW Bank 05/24/17 0.90% 248,771 249,000 Firstbank Puerto Rico 05/24/16 0.75% 244,760 249,000 Oriental Bank & Trust 05/29/18 1.06% 244,839 249,000 Silvergate Bank 05/30/18 1.01% 244,742 249,000 Enterprise Bank & TR Co Lowell 05/30/18 1.01% 244,732 249,000 Safra National Bank 05/31/18 1.01% 243,757 248,000 Townebank Portsmouth 05/31/18 1.01% 244,755 249,000 Mascoma Savings Bank 05/29/18 1.01% $ 4,649,823 $ 4,719,000 22.50% Total 1.01% Pooled Investment Accounts: $ 3,687,540 $ 3,687,540 Local Agency Investment Fund 0.24% 3,802,895 3,807,398 Ca1TRUST Short and Medium Term 0.67% $ 7,490,435 $ 7,494,937 36.25% 0.46% $ 20,662,191 $ 20,780,324 100% Total Investments 0.70% 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. Kelly D. McCann, Senior Accountant 3/31/14 Investment Summary Report Below is a chart summarizing the yields as well as terms and maturities for the month of March 2014: Average # of Month Portfolio Days to of 2014 Yield Maturity March 0.70% 523 Below is are charts comparing operating fund interest for current and prior fiscal years. Actual Interest Monthly - March Year -to -Date 3/31/2013 3/31/2014 $ 8,058 $ 8,357 $ 85,729 $ 94,528 Budget 2012/2013 2013/2014 Interest Budget, March YTD $ 112,500 $ 65,250 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: February 2014 % Alloc March 2014 % Alloc Fund Description Balance 2/28/2014 Balance 3/31/2014 Water Operating Reserve $ 3,895,325 18.86% $ 3,690,143 18.05% Water Emergency Reserve 1,003,011 4.86% 1,002,376 4.90% Water Capital Project Reserve 7,863,144 38.07% 7,857,568 38.43% Water Reserve for Debt Service 2,727,963 13.21% 2,728,489 13.34% Maintenance Reserve 191,563 0.93% 191,563 0.94% Employee Liability Reserve 100,000 0.48% 100,000 0.49% COP Revenue Bond 2008 - Reserve 2,147,668 10.40% 2,126,848 10.40% Sewer Operating 389,572 1.89% Sewer Emergency Reserve 1,006,993 4.88% Sewer Capital Project Reserve 1,330,213 6.44% $ 20,655,453 100.00% Wells Fargo Bank Checking Water Operating (87,511) Sewer Operating 213,315 125,804 389,576 1.91% 1,006,214 4.92% 1,355,103 6.63% $ 20,447,879 100.00% (85,093) 299,405 214,312 Totals $ 20,781,257 $ 20,662,191 AGENDA REPORT Meeting Date: April 28, 2014 To: Finance - Accounting Committee From: Steve Conklin, Acting General Manager Presented By: Delia Lugo, Finance Manager Prepared By: Kelly McCann, Senior Accountant Dept: Subject: Budget to Actual Results for March 2014 DISCUSSION: ITEM NO. 5.1 Finance 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 March 2014. Through the month of March 2014, the District water revenue is 76.15% of annual budget, which is 4.8% higher 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 exception of Dues and Memberships, Materials, Insurance, Contractual Services, and Uncollectible Accounts. The increase in Contractual Services is due the Turf Replacement project with the City of Placentia and Uncollectible Accounts is related to the expensing of customer uncollectible balances. Dues, Memberships, Materials, and Insurance are still due to the previous months reported reasons. Overall, Sewer Supplies and Services expenses are trending below budget with similar noted exceptions as in the Water Fund. Reported expenses affiliated with the Sewer Materials account for 182% of its annual budget due to the previous months reported reason. 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: Mar 2014 consolidated stmt.xlsx Mar 2014 Water Stmt.xlsx Mar 2014 Sewer Stmt.xlsx Description: Mar 2014 consolidated stat Mar 2014 Water Stmt Mar 2014 Sewer Stmt Type: Backup Material Backup Material Backup Material Yorba Linda Water District Summary Financial Report Water & Sewer Funds For Nine Months Ending March 31, 2014 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: Total Revenue Expenses (Operating): Variable Water Costs (G.W., Import & Power) Salary Related Expenses Supplies & Services 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) Annual YTD YTD YTD YTD YTD Budget Budget Actual Under(Over) Under(Over) % of FY 2014 FY 2014 FY 2014 Annual Budget YTD Budget Budget $16,217,590 $12,163,193 $12,587,045 $3,630,545 ($423,853) 77.61% 2,020,223 1,515,167 1,501,320 518,903 13,847 74.31% 4,794,156 3,595,617 3,430,331 1,363,825 165,286 71.55% 4,468,716 3,351,537 3,240,924 1,227,792 110,613 72.52% 1,550,530 1,162,898 1,165,265 385,265 (2,368) 75.15% 200,797 150,598 125,385 75,412 25,213 62.44% 717,749 538,312 775,542 (57,793) (237,230) 108.05% 29,969,761 22,477,321 22,825,812 7,143,949 (348,491) 76.16% 87,000 65,250 94,527 (7,527) (29,277) 108.65% 1,264,672 948,504 861,289 403,383 87,215 68.10% 509,150 381,863 579,439 (70,289) (197,577) 113.81% 1,860,822 1,395,617 1,535,255 325,567 (139,639) 82.50% 31,830,583 23,872,937 24,361,067 7,469,516 (488,130) 76.53% 13,767,658 10,325,744 10,203,968 3,563,690 121,775 74.12% 7,904,873 5,928,655 5,610,591 2,294,282 318,064 70.98% 4,225,654 3,169,241 2,790,186 1,435,473 379,055 66.03% 25,898,185 19,423,639 18,604,745 7,293,445 818,893 71.84% 1,815,317 77,400 1,361,488 58,050 1,301,241 20,223 514,076 57,177 60,247 37,827 71.68% 26.13% 1,892,717 1,419,538 1,321,464 571,253 179,455 69.82% 27,790,902 20,843,177 19,926,209 7,864,698 998,348 71.70% 4,039,681 3,029,761 4,434,858 (395,182) (1,486,478) 109.78% - - 202,353 202,353 (202,353) 0.00% 4,039,681 3,029,761 4,637,211 (192,829) (1,688,831) 114.79% 6,897,941 5,173,456 5,451,625 1,446,311 (278,169) 79.03% ($2,858,260) ($2,143,695) ($814,414) ($2,043,846) ($1,329,281) 28.49% Revenue (Operating): Water Revenue (Residential) Water Revenue (Commercial & Fire Det.) Water Revenue (Landscape /Irrigation) Water Revenue (Service Charge) Other Operating Revenue Total Operating Revenue: Revenue (Non- Operating): Interest Property Tax Other Non - Operating Revenue Total Non - Operating Revenue: 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 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: Yorba Linda Water District Water Fund For Nine Months Ending March 31, 2014 Annual YTD Mar YTD YTD YTD YTD Budget Budget Actual Actual Under(Over) Under(Over) % of Annual FY 2014 FY 2014 FY 2013 FY 2014 Annual Budget YTD Budget Budget $16,217,590 $12,163,193 322,097 $12,587,045 3,630,545 (423,853) 77.61% 2,020,223 1,515,167 129,049 1,501,320 518,903 13,847 74.31% 4,794,156 3,595,617 207,905 3,430,331 1,363,825 165,286 71.55% 4,468,716 3,351,537 365,675 3,240,924 1,227,792 110,613 72.52% 681,074 510,806 40,702 700,366 (19,292) (189,561) 102.83% 28,181,759 21,136,319 1,065,428 21,459,986 6,721,773 (323,667) 76.15% 75,000 56,250 7,535 88,469 (13,469) (32,219) 117.96% 1,264,672 948,504 69,466 861,289 403,383 87,215 68.10% 501,200 375,900 29,162 547,215 (46,015) (171,315) 109.18% 1,840,872 1,380,654 106,163 1,496,973 343,899 (116,319) 81.32% 30,022,631 22,516,973 1,171,591 22,956,959 7,065,672 (439,986) 76.47% 13,767,658 10,325,744 1,007,768 10,203,968 3,563,690 121,776 74.12% 6,987,204 5,240,403 546,608 4,976,843 2,010,361 263,560 74.39% 283,371 212,528 13,577 129,572 153,799 82,956 45.73% 504,089 378,067 96,548 382,581 121,508 (4,514) 75.90% 158,779 119,084 11,452 111,677 47,102 7,407 70.33% 67,021 50,266 3,284 59,943 7,078 (9,677) 89.44% 152,224 114,168 12,033 108,894 43,330 5,274 71.54% 278,293 208,720 44,589 258,677 19,616 (49,957) 92.95% 568,676 426,507 59,820 503,013 65,663 (76,506) 88.45% 23,390 17,543 584 10,518 12,872 7,025 44.97% 357,243 267,932 17,322 188,933 168,310 78,999 52.89% 121,534 91,151 15,653 76,877 44,657 14,274 63.26% 42,920 32,190 4,313 24,027 18,893 8,163 55.98% 747,785 560,839 56,024 356,099 391,686 204,740 47.62% 64,403 48,302 3,591 20,292 44,111 28,010 31.51% 48,389 36,292 3,916 20,938 27,451 15,354 43.27% 23,250 17,438 18,100 18,970 4,280 (1,533) 81.59% 83,700 62,775 7,825 21,214 62,486 41,561 25.35% 321,250 240,938 56,809 233,195 88,055 7,743 72.59% 3,846,317 2,884,738 425,440 2,525,420 1,320,897 359,318 65.66% 24,601,179 18,450,884 1,979,816 17,706,231 6,894,948 744,653 71.97% 1,815,317 1,361,488 149,930 1,301,241 514,076 60,247 71.68% 71,400 53,550 20,223 51,177 33,327 28.32% 1,886,717 1,415,038 149,930 1,321,464 565,253 93,574 70.04% Total Expenses 26,487,896 19,865,922 2,129,746 19,027,695 7,460,201 838,227 71.84% Net Income (Loss) Before Capital Contributions 3,534,735 2,651,051 (958,155) 3,929,264 (394,529) (1,278,213) 111.16% Capital Contributions 95,000 95,000 (95,000) 0.00% Net Income (Loss) Before Depreciation 3,534,735 2,651,051 (958,155) 4,024,264 (299,529) (1,373,213) 113.85% Depreciation & Amortization 5,598,638 4,198,979 495,584 4,459,326 1,139,312 (260,348) 79.65% Total Net Income (Loss) ($2,063,903) ($1,547,927) ($1,453,739) ($435,062) ($1,628,841) ($1,112,865) 21.08% Capital - Direct Labor (19,270) (221,203) Yorba Linda Water District Sewer Fund For Nine Months Ending March 31, 2014 Annual YTD Mar YTD YTD YTD YTD Budget Budget Actual Actual Under(Over) Under(Over) % of FY 2014 FY 2014 FY 2013 FY 2014 Annual Budget YTD Budget Annual Budget Revenue (Operating) Sewer Charge Revenue $ 1,550,530 $ 1,162,898 $ 107,129 $ 1,165,265 $ 385,265 $ (2,368) 75.15% Locke Ranch Assessments 200,797 150,598 $9,457 125,385 75,412 25,213 62.44% Other Operating Revenue 36,675 27,506 504 75,176 (38,501) (47,670) 204.98% Total Operating Revenue: 1,788,002 1,341,002 117,090 1,365,826 422,176 (24,825) 76.39% Revenue (Non- Operating): 6,000 4,500 - - 6,000 4,500 0.00% Interest 12,000 9,000 822 6,058 5,942 2,942 50.48% Other Non - Operating Revenue 7,950 5,963 (1,992) 32,224 (24,274) (26,262) 405.33% Total Non - Operating Revenue: 19,950 14,963 (1,170) 38,282 (18,332) (23,320) 191.89% Total Revenue 1,807,952 1,355,964 115,920 1,404,108 403,844 (48,144) 77.66% Expenses (Operating): 1,299,298 974,474 110,203 992,299 306,999 (17,826) 76.37% Salary Related Expenses 917,669 688,252 66,495 633,747 283,922 54,505 69.62% Supplies & Services: (247) (5,141) 5,141 Communications 21,829 16,372 1,022 9,510 12,319 6,862 43.57% Contractual Services 38,751 29,063 7,727 29,933 8,818 (870) 77.24% Data Processing 11,951 8,963 862 8,406 3,545 557 70.34% Dues & Memberships 5,314 3,986 272 4,537 777 (552) 85.38% Fees & Permits 15,141 11,356 1,054 10,663 4,478 693 70.42% Insurance 20,947 15,710 3,356 19,470 1,477 (3,760) 92.95% Materials 19,099 14,324 1,040 34,718 (15,619) (20,394) 181.78% District Activities, Emp Recognition 1,761 1,321 44 785 976 536 44.58% Maintenance 121,908 91,431 3,777 58,567 63,341 32,864 48.04% Non - Capital Equipment 16,417 12,313 1,650 13,575 2,842 (1,262) 82.69% Office Expense 3,231 2,423 292 6,052 (2,821) (3,629) 187.31% Professional Services 37,425 28,069 3,586 19,817 17,608 8,252 52.95% Training 6,757 5,068 266 5,137 1,620 (69) 76.02% Travel & Conferences 4,062 3,047 295 1,529 2,533 1,518 37.64% Uncollectible Accounts 1,750 1,313 2,028 2,088 (338) (776) 119.31% Utilities 7,100 5,325 648 2,235 4,865 3,090 31.48% Vehicle Equipment 45,899 34,424 5,814 37,746 8,153 (3,322) 82.24% Supplies & Services Sub -Total 379,342 284,507 33,733 264,768 114,574 19,739 69.80% Total Operating Expenses 1,297,011 972,758 100,228 898,515 398,496 74,243 69.28% Expenses (Non- Operating): Interest Expense - - - - - - 0.00% Other Expense 6,000 4,500 6,000 4,500 0.00% Total Non - Operating Expenses: 6,000 4,500 - - 6,000 4,500 0.00% Total Expenses 1,303,011 977,258 100,228 898,515 404,496 78,743 68.96% Net Income (Loss) Before Capital Contributions 504,941 378,706 15,692 505,593 (652) (126,887) 100.13% Capital Contributions - - - 107,354 107,354 (107,354) 0.00% Net Income (Loss) Before Depreciation 504,941 378,706 15,692 612,947 106,702 (234,241) 121.39% Depreciation & Amortization 1,299,298 974,474 110,203 992,299 306,999 (17,826) 76.37% Total Net Income (Loss) (794,357) (595,768) ($94,511) (379,352) (415,005) ($216,416) 47.76% Capital - Direct Labor (247) (5,141) 5,141