HomeMy WebLinkAbout2014-06-23 - Finance-Accounting Committee Meeting Agenda PacketYorba Linda
Hater District
AGENDA
YORBA LINDA WATER DISTRICT
FINANCE - ACCOUNTING COMMITTEE MEETING
Monday, June 23, 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. Sewer Charges Collected on the Tax Roll for Fiscal Year 2014/15
Recommendation. That the Committee recommend the Board of Directors adopt
Resolution No. 14 XX Electing to Have Certain Sewer Maintenance Charges
Collected on the FY 2014115 Tax Roll and Superseding Resolution No. 13 -12.
4.2. Authorized Officers for Investments Held at Pershing
Recommendation. That the Committee recommend the Board of Directors adopt
Resolution No. 14 XX Authorizing the Acting General Manager and Finance
Manager to Act on Behalf of the District Relating to District Investments Held at
Pershing LLC and Rescinding Resolution No. 13 -02.
4.3. OPEB Deposit with CERBT
Recommendation. That the Committee recommend the Board of Directors
authorize staff to deposit $192,919 (the District's Annual Required Contribution) to
the California Employees' Retirement Benefit Trust ( CERBT) for FY 2014115.
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. Financial Model Update
5.2. Investment Report for the Period Ending May 31, 2014
5.3. Budget to Actual Results for May 2014
5.4. Future Agenda Items and Staff Tasks
6. ADJOURNMENT
6.1. The next Finance - Accounting Committee meeting is scheduled to be held Monday, July
28, 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.
Meeting Date:
To:
From:
Presented By:
Prepared By:
Subject:
SUMMARY:
ITEM NO. 4.1
AGENDA REPORT
June 23, 2014
Finance - Accounting Committee
Steve Conklin, Acting General
Manager
Delia Lugo, Finance Manager Dept: Finance
Delia Lugo, Finance Manager
Sewer Charges Collected on the Tax Roll for Fiscal Year 2014/15
This time of each year, the Board of Directors elect to collect certain sewer maintenance charges on
the property tax rolls.
STAFF RECOMMENDATION:
That the Committee recommend the Board of Directors adopt Resolution No. 14 -XX Electing to
Have Certain Sewer Maintenance Charges Collected on the FY 2014/15 Tax Roll and Superseding
Resolution No. 13 -12.
DISCUSSION:
The District collects the Sewer Maintenance Charge by adding it the water bill of customers where
the District provides water service and the customer also has a connection to the sewer system. For
customers connected to the District sewer system that receive water service from another purveyor
or those customers that do not receive a water bill from the District, the Sewer Maintenance Charge
is collected through the property tax rolls prepared by the County of Orange Auditor /Controller. This
process is legally authorized and established by Resolution of the Board.
Residents of the Locke Ranch area do not receive water service from the District, so their sewer
charges are collected on the tax roll. In addition, due to the disparity in rates between the City of
Yorba Linda and the District's Sewer Maintenance Charges, it has been determined that those
classifications with rate differences need to be placed on the tax roll for collection until a Proposition
218 process can be completed to equalize the rates.
The Sewer Maintenance Charges are subject to the substantive and procedural requirements of
Proposition 218 (California Constitution Article XIII D) barring an increase in the rates and /or a
discretionary CPI increase of more than 5 %, except with proper notifications to the property owners
affected allowing adequate opportunity to protest any such increases. Staff is not recommending a
change to the current sewer maintenance charge at this time. To collect the current maintenance
charges on the tax rolls for Fiscal Year 2014/15, the County of Orange Auditor /Controller's Office
requires a certified Resolution by the Board of Directors directing their office to add the charges to
the tax rolls for the properties assessed. The County establishes a deadline in August to receive this
information.
PRIOR RELEVANT BOARD ACTION(S):
On July 11, 2013 the Board of Directors passed Resolution No. 13 -12 electing to have certain sewer
maintenance charges collected on the Fiscal Year 2013/14 tax roll.
ATTACHMENTS:
a 111U
Description:
Resolution No. 14- XX.docx Resolution
Type:
Backup Material
RESOLUTION NO. 14 -XX
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ELECTING TO HAVE CERTAIN SEWER MAINTENANCE CHARGES
COLLECTED ON THE FISCAL YEAR 2014/15 TAX ROLL
AND SUPERSEDING RESOLUTION NO. 13 -12
WHEREAS, Resolution No. 11 -17 set out sewer rates for the Yorba Linda Water
District ( "District ") and via Resolution No. 07 -13 these rates are in
compliance with substantive and procedural requirements of Proposition
218 (California Constitution Art. XIII D); and
WHEREAS, under the authority of the California Water Code Sections 31100 the
District may provide sewer service to property located outside the District
boundaries and the District's Regulations for Rendition of Sanitary Sewer
Service include a provision that a sewer maintenance charge is adopted
by Resolution; and
WHEREAS, under authority of California Water Code Sections 31101 and 31102 the
District may prescribe and collect charges for sewer services and facilities
and may collect sewer charges in any lawful manner; and
WHEREAS, under California Health and Safety Code Sections 5471 and 5473 the
District may elect to have the County of Orange Auditor /Controller collect
sewer charges on the Orange County Property Tax Roll.
NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the Yorba Linda
Water District to adopt Sewer Maintenance Charge as follows:
Section 1. The Board of Directors elects to have the County of Orange
Auditor /Controller collect the charges fixed herein on the tax roll in the same
manner, by the same persons, and at the same time and together with and
not separately from County of Orange taxes.
Section 2. The General Manager or his designee is authorized and directed to file with
the County of Orange Auditor /Controller a copy of this Resolution together
with the listing of parcel numbers and amounts of charges shown in Exhibit
"A" and such other documentation as the County Auditor /Controller may
require in order to accomplish the purposes of this Resolution.
Section 3. Resolution No. 13 -12 is superseded effective immediately by the adoption of
this Resolution.
Resolution No. 14 -XX Electing to Have Certain Sewer Maintenance Charges Collected on the FY 2014/15 Tax Roll
PASSED AND ADOPTED this 10th day of July 2014 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Robert R. Kiley, President
Yorba Linda Water District
ATTEST:
Steven R. Conklin, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Arthur G. Kidman, Esq.
Kidman Law LLP
Resolution No. 14 -XX Electing to Have Certain Sewer Maintenance Charges Collected on the FY 2014/15 Tax Roll
AGENDA REPORT
Meeting Date: June 23, 2014
ITEM NO. 4.2
To: Finance - Accounting Committee
From: Steve Conklin, Acting General
Manager
Presented By: Delia Lugo, Finance Manager Dept: Finance
Prepared By: Delia Lugo, Finance Manager
Subject: Authorized Officers for Investments Held at Pershing
STAFF RECOMMENDATION:
That the Committee recommend the Board of Directors adopt Resolution No. 14 -XX Authorizing the Acting
General Manager and Finance Manager to Act on Behalf of the District Relating to District Investments
Held at Pershing LLC and Rescinding Resolution No. 13 -02.
DISCUSSION:
The District currently has a portion of its reserves invested at Pershing. In September 2012, the Finance -
Accounting Committee supported staff's recommendation by recommending the Board to approve a
resolution identifying to Pershing that the Acting General Manager and Finance Manager are authorized to
act on behalf of the District pertaining to District investments held at Pershing. The Board went on to pass
the same item as Resolution No. 12 -24 on October 11, 2012.
Due to personnel changes at the District, Pershing requires a new resolution that will identify District
personnel that currently hold the positions of Acting General Manager and Finance Manager, who are
authorized to act on behalf of the District pertaining to District investments held at Pershing.
In the District's current investment policy adopted June 2014, the Board authorizes the District's Treasurer
to invest funds of the District. Staff recommends adding the Acting General Manager to the resolution as a
back -up should the Treasurer not be available for an extended period of time.
PRIOR RELEVANT BOARD ACTION(S):
On December 22, 2011, the Board adopted the Public Funds Investment Policy in Resolution No. 11 -24.
On October 11, 2012, The Board adopted Resolution No. 12 -24 Authorizing the Acting General Manager
and Finance Manger to Act on Behalf of the District Relating to District Investments Held at Pershing, LLC.
On February 24, 2013, the Board adopted Resolution No. 13 -02 that removed some minor verbiage in the
"Whereas" section included in Resolution No. 12 -24, but still authorizing the Acting General Manager and
Finance Manager to Act on Behalf of the District Relating to District Investments Held at Pershing, LLC.
ATTACHMENTS:
Name: Description: Type:
Resolution No. 14 -XX Pershing.doc Resolution No. 14 -XX Backup Material
RESOLUTION NO. 14 -XX
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
AUTHORIZING THE ACTING GENERAL MANAGER AND FINANCE MANAGER TO
ACT ON BEHALF OF THE DISTRICT RELATING TO DISTRICT INVESTMENTS
HELD AT PERSHING LLC AND RESCINDING RESOLUTION NO. 13 -02
WHEREAS, in July 2012, District staff completed the process of vetting Matthew
D'Avanzo, Senior Vice - President - Fixed Income Strategies at First Empire
Securities (First Empire) as a broker /dealer; and
WHEREAS, First Empire has an agreement with Pershing LLC (Pershing) where the
District can choose to have investments purchased through First Empire
be held at Pershing; and
WHEREAS, First Empire requires that a resolution be adopted authorizing people to
act on behalf of the District relating to District investments held at
Pershing; and
WHEREAS, the District's current investment policy adopted June 2014 authorizes the
District's Treasurer to invest funds of the District and the Board of
Directors desires adding the Acting General Manager as a back -up should
the Treasurer not be available for an extended period of time.
NOW, THEREFORE, the Board of Directors of the Yorba Linda Water District does
hereby find, determine, and resolve the following:
Section 1. Resolution No. 13 -02 is hereby rescinded.
Section 2. Steven R. Conklin, Acting General Manager, and
Delia D. Lugo, Finance Manager,
each of whom holds the office indicated, is authorized to act on behalf of the Yorba
Linda Water District to buy, sell, assign, loan, borrow, endorse for transfer, transfer and
receive stocks, bonds, securities, money and other assets now or hereafter registered in
[INTENTIONALLY BLANK]
Resolution No. 14 -XX Authorized Officers for Investments Held at Pershing
the name of or held for Yorba Linda Water District at Pershing LLC.
PASSED AND ADOPTED this 10th day of July 2014 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Robert R. Kiley, President
Yorba Linda Water District
ATTEST:
Steve Conklin, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Arthur G. Kidman, Esq.
Kidman Law LLP
Resolution No. 14 -XX Authorized Officers for Investments Held at Pershing
AGENDA REPORT
Meeting Date: June 23, 2014
To: Finance - Accounting Committee
From: Steve Conklin, Acting General
Manager
Presented By: Delia Lugo, Finance Manager
Prepared By: Delia Lugo, Finance Manager
Subject: OPEB Deposit with CERBT
STAFF RECOMMENDATION:
Budgeted:
Total Budget:
Cost Estimate:
Funding Source:
Account No:
Dept:
ITEM NO. 4.3
Yes
$192,919
$192,919
Operating Funds
1- 2010- 0550 -00
Finance
That the Committee recommend the Board of Directors authorize staff to deposit $192,919 (the
District's Annual Required Contribution) to the California Employees' Retirement Benefit Trust
(CERBT) for FY 2014/15.
DISCUSSION:
The District's budgeted Annual Required Contribution (ACH) for Post - Employment Benefits )OPEB)
for FY 2014/15 is $192,919. The actuarially projected OPEB pay -as- you -go expenses for FY
2014/15 are $130,719.
For FY 2014/15, staff proposes that the District pre -fund the California Employees Retirement
Benefit Trust (CERBT) with the entire ARC. By pre- funding the CERBT, the District can submit for
reimbursement for actual retiree costs for the periods of July 2014 through June 2015 at the end of
the fiscal year, while being able to take advantage of the CERBT's superior investment rate of
return.
PRIOR RELEVANT BOARD ACTION(S):
On July 11, 2013, the Board authorized staff to deposit $175,291 to the California Employees
Retirement Benefit Trust for FY 2013/14, to pay down a portion of the District's Other Post
Employment Benefits liability.
AGENDA REPORT
Meeting Date: June 23, 2014
ITEM NO. 5.1
To: Finance - Accounting Committee
From: Steve Conklin, Acting General
Manager
Presented By: Delia Lugo, Finance Manager Dept: Finance
Prepared By: Delia Lugo, Finance Manager
Subject: Financial Model Update
ATTACHMENTS:
Description: Type:
Raftelis Scope of Work June 2014.pdf Scope of Work Backup Material
Irr
'� X
-
May 28,J814
Finance Manager
Ynrba Linda Water District
1717E.K4imlomaAvenue
Placentia, [A92870
uus Lake Avenue Phone so ea 1894 °w°=*"lis.com
Suite 301 Fax 626 *a xuz
Pasadena, CA 91101
Subject:� Scope uf Services for Financial Plan Update %0I4 and Model Training
Dear Ms. Lugo:
Raftelb Financial Consultants, Inc. (RF[)is pleased 0msubmit this scope of service for the Financial Plan Update
2014 (Study) for the Yorba Linda Water District (District). Below, are the proposed tasks and fees.
Phase 1: Scope of SerZices for Financial Plan Model Update
Task 1'1M Kick-off Workshop VVebinar with Staff
The kick-off workshop provides a solid foundation for the project and ensures that project participants are in
mutual agreement asto the project goals, expectations, and other important recently surfacing issues for the
District. RFC will develop a project initiation package that contains the meeting agenda and presentation
materials to guide the discussion. A data request will be submitted to the District promptly following receipt of
the notice-to-proceed, and RFC will need one week prior tothe kick-off workshop to thoroughly review the
requested data.
Data requests may include, but are not limited to, the following information:
• Financial data such asoperating budgets, revenue sources (including non-operating revenues),capital
improvement plans, growth assumptions, and reserve funds
• Reserve policies and official statements for existing debt
• Historical accounts by meter size and water use by customer class for fiscal year (FY) 2012/13
During the workshop, RFC will also review assumptions used for the development of the prior financial plan to
ensure their validity.
Meetings: One (1) Kick-off Workshop VVebinar with Staff
Deliverables: Data request list, presentation material for the Workshop in Microsoft PowerPoint1fl 2007
���
Scope of Services for Financial Plan Update 2O14
Ybrhm Linda Water District r��^_
Task 1.2M Update the Financial Plan Model with Current Financial Information
RFC will obtain the FY 2015 budget and updated water supply costs, capital expenditure plans, and fund
balances from the District and update the previously developed Financial Plan Model (current Model) to reflect
the District's current financial status. The recommended revenue adjustments and resultant customer impacts
will be provided to assist the District in making informed decisions. It is assumed that the recommended
revenue adjustments will be applied across the board to the current water rates. RFC has dedicated 18 hours
to work on this task as u beat effort estimate. |f more time is required, RFC will seek approval from the District
for additional fees.
Meetings: None
Deliverables: Updated Financial Plan Model in Microsoft Office VVord02007
Phase 2: Scope of SerZices for Financial Plan Model Training
Task 3L1M Financial Plan Workshop \8/ekinar
RFC will conduct a webinar with District staff to review the results of the Model update in the previous phase.
Meetings: One (2) Financial Plan Workshop Vebinarwith Staff
Deliverables: Presentation material for the Workshop in Microsoft PowerPoint1d 2007
Task 2.2 [a Model Training Workshop with Staff
RFC will hold on nn-she Model Training Workshop with District staff to review the key aspects of the Model
that will equip staff to update elements of the Model such as capital projects, O&M, and revenue inputs on an
ongoing basis. The training will be based on the updated Mode[ and will consist ofreviewing methodologies
used during the Study and understanding the Model's design and layout, discussing how to adjust key variables
that support the "what-if' scenario development features of the Model, and discussing how to update the
Model with new inputs for the District's future use. At the completion of the training, RFC will provide the
training presentation to serve as e user manual for staffs future reference.
Meetings: One (1) Model training workshop with District staff
Deliverables: Training presentation/user manual in Microsoft PowerPoint[d 2007
Scope of Services for Financial Plan Update 2O14
Ymrbo Linda Water District
Fees and Hours
To complete the scope cf work outlined above we propose a hump sum fee of$5,]00for Phase I and $5,000
for Phase 2. The following work plan provides a breakdown of the estimated level of effort required for
completing each task as described and the hourly billing rates for the personnel scheduled to complete the
Task
Task Descriptions No of
Hours Requirements Total Fees&
No.
1.1 Kick-off Workshop Webinar with Staff I
1
5
1.2 Update the rinancial Plan Modef with Current Financial inforniation
2
16 18 $
3,690
TOTAL ESTIMATED MEETINGS / HOURS
3
21 25
YOU ftellessionall Fees
4,752
SG - Sanjay Gaur
Task No of
Task Descriptions
Hours Requirements Total fees &
2.1 Financial Plan Workshop Webinar
2
6
a
1,690
2.2 Model Training Workshop with Staff
4
10 2 16
3,310
TOTAL ESTIMATED MEETINGS HOUI;tsT 1
6
16 2-- 24
HOURLY RATES
S 215
$ 190 $ 60
PROFESSIONAL FEES
S 1,410
$ 3,040 S 120 5 4.570
To Fees
SG Sanjay Gaur
430
FC Financtal Consultant(s)
TOTAL FEES EXPENSES
-
We appreciate the opportunity to submit this proposal and look forward to continuing to assist the District
with this project. If you have any questions or need additional information, please contact Sanjay Gaur, the
Project Director, at(2I5)3I7'4405orKhanh Phan, the Project Manager, at(626)233'6762.
Sincerely,
Sanjay Gaur
Senior Manager
AGENDA REPORT
Meeting Date: June 23, 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 May 31, 2014
SUMMARY:
ITEM NO. 5.2
Finance
Staff is submitting the May 2014 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 May 31, 2014 is 0.57 %.
The overall increase in the investment balance from the previous month is approximately
$6,150,000. A couple of large balance changes include an increase in the Water Capital Project
Reserve of $5,031,142, due to a receipt of funds recovered from the resolution of a claim. An
increase in the Water Operating Fund of approximately $675,000 is predominantly due to a positive
net effect between operating revenues and expenses through the reporting month of the fiscal year.
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:
Invst Agenda Backup - May 2014.xlsx
Description:
Agenda Backup
Type:
Backup Material
Invst Rpt 5- 14.xlsx Investment Report for Period Ending May 2014 Backup Material
Investment Summary Report
Below is a chart summarizing the yields as well as terms and maturities for the month of May 2014:
Average
# of
Month Portfolio
Days to
of 2014 Yield
Maturity
May 0.57%
459
Below is are charts comparing operating fund interest for current and prior fiscal years.
Actual Interest
Monthly - May
Year -to -Date
5/31/2013
5/31/2014
$ 21,085 $ 21,688
$ 115,627 $ 126,906
Budget 2012/2013 2013/2014
Interest Budget, May YTD $ 137,500 $ 79,750
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:
Wells Fargo Bank Checking
Water Operating (233,572)
Sewer Operating 351,832
118,261
124,099
21,749
145,848
Totals $ 21,241,459 $ 27,390,833
April 2014
% Alloc
May 2014
% Alloc
Fund Description
Balance
4/30/2014
Balance
5/31/2014
Water Operating Reserve
$ 4,275,356
20.24%
$ 4,950,503
18.17%
Water Emergency Reserve
1,005,031
4.76%
1,009,054
3.70%
Water Capital Project Reserve
7,898,185
37.39%
12,929,327
47.46%
Water Reserve for Debt Service
2,728,996
12.92%
2,729,521
10.02%
Maintenance Reserve
191,658
0.91%
191,658
0.70%
Employee Liability Reserve
100,038
0.47%
100,057
0.37%
COP Revenue Bond 2008 - Reserve
2,124,670
10.06%
2,131,508
7.82%
Sewer Operating
389,755
1.85%
764,443
2.81%
Sewer Emergency Reserve
1,007,297
4.77%
1,009,486
3.71%
Sewer Capital Project Reserve
1,402,212
6.64%
1,429,427
5.25%
$ 21,123,199
100.00%
$ 27,244,985
100.00%
Wells Fargo Bank Checking
Water Operating (233,572)
Sewer Operating 351,832
118,261
124,099
21,749
145,848
Totals $ 21,241,459 $ 27,390,833
Yorba Linda Water District
Investment Portfolio Report
May 31, 2014
Market % Date of Percent
Value Par of Total Institution Maturity Yield
Checking Account:
$ 145,848 $ 145,848 Wells Fargo Bank
60,933 60,933 Pershing
$ 206,781 $ 206,781 0.75% Total 0.00%
Money Market Accounts:
$ 54,971 $ 54,971
12,236 12,236
3,700,266 $ 3,700,266 13.51%
Federal Agency Securities
Wells Fargo Money Market 0.03%
US Bank (Revenue Bonds) 0.03%
Bank of the West 0.24%
Total 0.24%
$ 492,855 $
500,000
Fannie Mae
05/25/18
1.14%
493,155
500,000
Federal Home Loan Bank
06/12/18
1.01%
498,175
500,000
Fannie Mae
06/12/18
0.80%
494,370
500,000
Federal Home Loan Bank
06/13/18
1.11%
494,585
500,000
Federal Home Loan Bank
06/20/18
1.14%
2,119,272
2,115,000
Federal Home Loan Bank
05/24/17
0.87%
$ 4,592,412 $
4,615,000 16.77%
Total
05/14/18
0.96%
Certificates of Deposits
$ 244,659
$ 248,000
CIT Bank, Salt Lake
05/22/18
1.21%
244,471
248,000
Discover
05/22/18
1.21%
244,679
248,000
Goldman Sachs Bank
05/22/18
1.21%
244,726
248,000
BealBank
05/23/18
1.01%
246,214
248,000
Wells Fargo
04/27/18
0.90%
243,243
247,000
Barclays Bank
04/30/18
0.71%
245,416
248,000
State Bank of India
05/14/18
1.16%
246,512
249,000
Webster Bank
05/03/18
0.90%
244,640
248,000
American Express Centurion Bank
05/23/18
1.21%
242,824
248,000
GE Capital Bank
05/24/18
1.12%
248,736
249,000
Merrick Bank
05/24/17
0.75%
247,737
248,000
BMW Bank
05/24/17
0.90%
249,209
249,000
Firstbank Puerto Rico
05/24/16
0.74%
245,634
249,000
Oriental Bank & Trust
05/29/18
1.06%
245,711
249,000
Silvergate Bank
05/30/18
1.01%
245,619
249,000
Enterprise Bank & TR Co Lowell
05/30/18
1.01%
245,606
249,000
Safra National Bank
05/31/18
1.01%
244,627
248,000
Townebank Portsmouth
05/31/18
1.01%
245,629
249,000
Mascoma Savings Bank
05/29/18
1.01%
$ 4,665,893
$ 4,719,000 17.03%
Total
1.01°/%
Pooled Investment
Accounts:
$ 5,414,378
$ 5,414,378
Local Agency Investment Fund
0.23%
5,000,550
5,000,550
Ca1TRUST Short Term
0.36%
3,810,552
3,811,274
Ca1TRUST Medium Term
0.69%
$ 14,225,481
$ 14,226,203 51.94%
0.40%
$ 27,390,833
$ 27,467,250 100%
Total Investments
0.57%
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.
'a
Kelly D. McCann, Senior Accountant
5/31/14
AGENDA REPORT
Meeting Date: June 23, 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: Budget to Actual Results for May 2014
DISCUSSION:
ITEM NO. 5.3
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 May 2014. For the month of
May 2014, the District water revenue is 92.27% of annual budget, which is 3.9% 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 exceptions of Materials Insurance and Uncollectible Accounts, still due to the previous months
reported reasons. 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 297.5% of its annual budget due
to the previous months reported reason.
Finally, the receipt of funds from the resolution of a claim has been recorded as an Extraordinary
Item which contributed to the District reporting a Net Income compared to a Budget Net Loss.
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:
114arne. Description: Type:
May 2014 consolidated stmt.xlsx May 2014 Consolidated Statement Backup Material
May 2014 Water Stmt.xlsx May 2014 Water Statement Backup Material
May 2014 Sewer Stmt.xlsx May 2014 Sewer Stmt 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 Eleven Months Ending May 31, 2014
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
$14,866,124
$15,278,651
$938,939
($412,527)
94.21%
2,020,223
1,851,871
1,815,129
205,094
36,742
89.85%
4,794,156
4,394,643
4,099,389
694,767
295,254
85.51%
4,468,716
4,096,323
3,974,626
494,090
121,697
88.94%
1,550,530
1,421,319
1,428,394
122,136
(7,075)
92.12%
200,797
184,064
198,004
2,793
(13,940)
98.61%
717,749
657,937
925,459
(207,710)
(267,522)
128.94%
29,969,761
27,472,281
27,719,652
2,250,109
(247,371)
92.49%
87,000
79,750
126,906
(39,906)
(47,156)
145.87%
1,264,672
1,159,283
1,346,602
(81,930)
(187,319)
106.48%
509,150
466,721
709,819
(200,669)
(243,098)
139.41%
1,860,822
1,705,754
2,183,327
(322,505)
(477,574)
117.33%
Total Revenue 31,830,583 29,178,034 29,902,979 1,927,604 (724,945) 93.94%
Expenses (Operating):
27,790,902
25,474,994
24,586,657
3,204,250
961,425
88.47%
Variable Water Costs (G.W., Import & Power)
13,767,658
12,620,353
12,734,941
1,032,717
(114,588)
92.50%
Salary Related Expenses
7,904,873
7,246,134
6,807,421
1,097,452
438,713
86.12%
Supplies & Services
4,225,654
3,873,516
3,415,202
810,457
458,314
80.82%
Total Operating Expenses
25,898,185
23,740,003
22,957,564
2,940,626
782,439
88.65%
Expenses (Non- Operating):
6,897,941
6,323,113
6,694,062
203,874
(370,949)
97.04%
Interest on Long Term Debt
1,815,317
1,664,041
1,579,765
235,552
84,276
87.02%
Other Expense
77,400
70,950
49,328
28,072
21,622
63.73%
Total Non - Operating Expenses:
1,892,717
1,734,991
1,629,093
263,624
178,986
86.07%
Total Expenses
27,790,902
25,474,994
24,586,657
3,204,250
961,425
88.47%
Net Income (Loss) Before Capital Contributions
4,039,681
3,703,041
5,316,322
(1,276,646)
(1,613,281)
131.60%
Extraordinary Item(s)
-
5,000,000
(5,000,000)
(5,000,000)
0.00%
Capital Contributions
-
-
1,599,835
(1,599,835)
(1,599,835)
0.00%
Net Income (Loss) Before Depreciation
4,039,681
3,703,041
11,916,157
(7,876,481)
(8,213,116)
294.98%
Depreciation & Amortization
6,897,941
6,323,113
6,694,062
203,874
(370,949)
97.04%
Total Net Income (Loss)
($2,858,260)
($2,620,072)
$5,222,095
($8,080,355)
($7,842,167)
- 182.70%
Yorba Linda Water District
Water Fund
For Eleven Months Ending May 31, 2014
Annual YTD May YTD YTD YTD YTD
Budget Budget Actual Actual Under(Over) Under(Over) % of Annual
FY 2014 FY 2014 FY 2014 FY 2014 Annual Budget YTD Budget Budget
Revenue (Operating)
Water Revenue (Residential)
$16,217,590
$14,866,124
1,343,948
$15,278,651
938,939
(412,527)
94.21%
Water Revenue (Commercial & Fire Det.)
2,020,223
1,851,871
149,843
1,815,129
205,094
36,742
89.85%
Water Revenue (Landscape /Irrigation)
4,794,156
4,394,643
360,368
4,099,389
694,767
295,254
85.51%
Water Revenue (Service Charge)
4,468,716
4,096,323
368,177
3,974,626
494,090
121,697
88.94%
Other Operating Revenue
681,074
624,318
74,617
835,534
(154,460)
(211,216)
122.68%
Total Operating Revenue:
28,181,759
25,833,279
2,296,953
26,003,329
2,178,430
(170,050)
92.27%
Revenue (Non- Operating)
Interest
75,000
68,750
19,934
117,147
(42,147)
(48,397)
156.20%
Property Tax
1,264,672
1,159,283
38,052
1,346,602
(81,930)
(187,319)
106.48%
Other Non - Operating Revenue
501,200
459,433
53,433
670,326
(169,126)
(210,893)
133.74%
Total Non - Operating Revenue:
1,840,872
1,687,466
111,419
2,134,075
(293,203)
(446,609)
115.93%
Total Revenue
30,022,631
27,520,745
2,408,372
28,137,404
1,885,227
(616,659)
93.72%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)
13,767,658
12,620,353
1,119,606
12,734,941
1,032,717
(114,588)
92.50%
Salary Related Expenses
6,987,204
6,404,937
527,972
6,038,292
948,912
366,645
90.23%
Supplies & Services:
Communications
283,371
259,757
42,918
189,794
93,577
69,963
66.98%
Contractual Services
504,089
462,082
46,284
464,700
39,389
(2,618)
92.19%
Data Processing
158,779
145,547
24,012
136,003
22,776
9,544
85.66%
Dues & Memberships
67,021
61,436
200
60,699
6,322
737
90.57%
Fees & Permits
152,224
139,539
6,435
138,068
14,156
1,471
90.70%
Insurance
278,293
255,102
465
258,519
19,774
(3,417)
92.89%
Materials
568,676
521,286
23,791
588,222
(19,546)
(66,936)
103.44%
District Activities, Emp Recognition
23,390
21,441
2,229
13,928
9,462
7,513
59.55%
Maintenance
357,243
327,473
35,585
266,155
91,088
61,318
74.50%
Non - Capital Equipment
121,534
111,406
6,479
88,608
32,926
22,798
72.91%
Office Expense
42,920
39,343
3,069
30,263
12,657
9,080
70.51%
Professional Services
747,785
685,470
19,821
412,153
335,632
273,317
55.12%
Training
64,403
59,036
5,244
26,957
37,446
32,079
41.86%
Travel & Conferences
48,389
44,357
997
23,068
25,321
21,289
47.67%
Uncollectible Accounts
23,250
21,313
(750)
25,845
(2,595)
(4,533)
111.16%
Utilities
83,700
76,725
3,333
29,390
54,310
47,335
35.11%
Vehicle Equipment
321,250
294,479
50,566
317,331
3,919
(22,852)
98.78%
Supplies & Services Sub -Total
3,846,317
3,525,791
270,678
3,069,703
776,614
456,088
79.81%
Total Operating Expenses
Expenses (Non- Operating):
Interest on Long Term Debt
Other Expense
Total Non - Operating Expenses:
24,601,179 22,551,081 1,918,256 21,842,936 2,758,243 708,145 88.79%
1,815,317 1,664,041 139,262 1,579,765 235,552 84,276 87.02%
71,400 65,450 5,064 49,328 22,072 16,122 69.09%
1,886,717 1,729,491 144,326 1,629,093 257,624 100,398 86.35%
Total Expenses 26,487,896 24,280,571 2,062,582 23,472,029 3,015,867 808,542 88.61%
Net Income (Loss) Before Capital Contributions 3,534,735 3,240,174 345,790 4,665,375 (1,130,640) (1,425,201) 131.99%
Extraordinary Item
Capital Contributions
5,000,000 5,000,000 (5,000,000) (5,000,000) 0.00%
81,704 950,694 (950,694) (950,694) 0.00%
Net Income (Loss) Before Depreciation 3,534,735 3,240,174 5,427,494 10,616,069 (7,081,334) (7,375,895) 300.34%
Depreciation & Amortization 5,598,638 5,132,085 498,571 5,474,514 124,124 (342,429) 97.78%
Total Net Income (Loss) ($2,063,903) ($1,891,911) $4,928,923 $5,141,555 ($7,205,458) ($7,033,466) - 249.12%
Capital - Direct Labor (22,819) (266,524)
Yorba Linda Water District
Sewer Fund
For Eleven Months Ending May 31, 2014
Annual YTD May YTD YTD YTD YTD
Budget Budget Actual Actual Under(Over) Under(Over) % of
FY 2014 FY 2014 FY 2014 FY 2014 Annual Budget YTD Budget Annual Budget
Revenue (Operating)
Sewer Charge Revenue
$1,550,530
$1,421,319
$131,093
$1,428,396
$122,134 $
(7,076)
92.12%
Locke Ranch Assessments
200,797
184,064
$1,621
198,005
2,792
(13,941)
98.61%
Other Operating Revenue
36,675
33,619
1,683
89,926
(53,251)
(56,307)
245.20%
Total Operating Revenue:
1,788,002
1,639,002
134,397
1,716,327
71,675
(77,325)
95.99%
Revenue (Non- Operating):
6,000
5,500
-
-
6,000
5,500
0.00%
Interest
12,000
11,000
1,753
9,758
2,242
1,242
81.32%
Other Non - Operating Revenue
7,950
7,288
1,994
39,495
(31,545)
(32,208)
496.79%
Total Non - Operating Revenue:
19,950
18,288
3,747
49,253
(29,303)
(30,965)
246.88%
Total Revenue
1,807,952
1,657,289
138,144
1,765,580
42,373
(108,290)
97.66%
Expenses (Operating):
1,299,298
1,191,023
111,309
1,219,549
79,749
(28,526)
93.86%
Salary Related Expenses
917,669
841,197
66,668
769,127
148,542
72,070
84.62%
Supplies & Services:
(988)
(7,387)
7,387
Communications
21,829
20,010
3,230
14,129
7,700
5,881
64.73%
Contractual Services
38,751
35,522
3,530
36,167
2,584
(645)
93.33%
Data Processing
11,951
10,955
1,807
10,237
1,714
718
85.66%
Dues & Memberships
5,314
4,871
15
4,594
720
277
86.45%
Fees & Permits
15,141
13,879
392
12,536
2,605
1,343
82.80%
Insurance
20,947
19,201
35
19,458
1,489
(257)
92.89%
Materials
19,099
17,507
(3,901)
56,821
(37,722)
(39,314)
297.51%
District Activities, Emp Recognition
1,761
1,614
168
1,042
719
572
59.17%
Maintenance
121,908
111,749
505
72,198
49,710
39,551
59.22%
Non - Capital Equipment
16,417
15,049
350
16,024
393
(975)
97.61%
Office Expense
3,231
2,962
231
6,521
(3,290)
(3,559)
201.83%
Professional Services
37,425
34,306
1,626
23,414
14,011
10,892
62.56%
Training
6,757
6,194
383
5,775
982
419
85.47%
Travel & Conferences
4,062
3,724
75
1,683
2,379
2,041
41.43%
Uncollectible Accounts
1,750
1,604
(98)
3,477
(1,727)
(1,873)
198.69%
Utilities
7,100
6,508
308
3,029
4,071
3,479
42.66%
Vehicle Equipment
45,899
42,074
7,419
58,397
(12,498)
(16,323)
127.23%
Supplies & Services Sub -Total
379,342
347,730
16,075
345,502
33,840
2,228
91.08%
Total Operating Expenses
1,297,011
1,188,927
82,743
1,114,629
182,382
74,298
85.94%
Expenses (Non- Operating):
Interest Expense
-
-
-
-
-
-
0.00%
Other Expense
6,000
5,500
6,000
5,500
0.00%
Total Non - Operating Expenses:
6,000
5,500
-
-
6,000
5,500
0.00%
Total Expenses
1,303,011
1,194,427
82,743
1,114,629
188,382
79,798
85.54%
Net Income (Loss) Before Capital Contributions
504,941
462,863
55,401
650,951
(146,010)
(188,088)
128.92%
Capital Contributions
-
-
402
649,142
(649,142)
(649,142)
0.00%
Net Income (Loss) Before Depreciation
504,941
462,863
55,803
1,300,093
(795,152)
(837,230)
257.47%
Depreciation & Amortization
1,299,298
1,191,023
111,309
1,219,549
79,749
(28,526)
93.86%
Total Net Income (Loss)
(794,357)
(728,161)
($55,506)
80,543
(874,901)
(808,704)
- 10.14%
Capital - Direct Labor
(988)
(7,387)
7,387