HomeMy WebLinkAbout2014-06-23 - Finance-Accounting Committee Meeting MinutesMINUTES OF THE
YORBA LINDA WATER DISTRICT
FINANCE - ACCOUNTING COMMITTEE MEETING
Monday, June 23, 2014, 4:00 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The June 23, 2014 meeting of the Yorba Linda Water District's Finance -
Accounting Committee was called to order by Director Hawkins at 4:00 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
Director Phil Hawkins, Chair
Director Michael J. Beverage
3. PUBLIC COMMENTS
None.
4. ACTION CALENDAR
STAFF
Steve Conklin, Acting General Manager
Delia Lugo, Finance Manager
4.1. Sewer Charges Collected on the Tax Roll for Fiscal Year 2014/15
Mrs. Lugo explained that annually, as required by the County of Orange
Auditor /Controller, the Board adopts a resolution to have certain sewer
maintenance charges placed on the tax roll for the coming fiscal year.
Mrs. Lugo informed the Committee that the certain sewer maintenance
sewer charges included in the tax roll pertain to the customers identified in
the Locke Ranch service area as well as the multi - family and
commercial /industrial customers that were previously billed by the City of
Yorba Linda. The Committee supported staff's recommendation to adopt
Resolution No. 14 -XX, which would supersede Resolution No. 13 -02.
4.2. Authorized Officers for Investments Held at Pershing
Mrs. Lugo informed the Committee that back in October 2012 the Board
approved Resolution No. 12 -24 identifying and authorizing the Acting
General Manager and Finance Manager to act on behalf of the District
pertaining to District investments held at Pershing. Due to the personnel
changes that occurred in the Finance Department within the last year,
Pershing is requiring that a new resolution be adopted that would identify
and authorize the current Acting General Manager and Finance Manger to
act on behalf of the District regarding investments held at Pershing.
Currently only Mr. Conklin has this authority.
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4.3. OPEB Deposit with CERBT
Mrs. Lugo presented a proposed action item that would have the District
deposit the actuarially determined Annual Required Contribution (ARC) for
Other Post - Employment Benefits (OPEB) of $192,919 into the California
Employees Retirement Benefit Trust ( CERBT). Mrs. Lugo explained that
this would mean sending money over to CERBT, pay the retiree pay -go
costs throughout the year, and then pull back the retiree pay -go costs in
June 2014. The effect would be ensuring that the entire ARC was paid,
but depositing $192,919 in the CERBT fund throughout the year to try to
obtain a better investment rate of return. The Committee asked some
clarifying questions and supported staff's recommendation.
5. DISCUSSION ITEMS
5.1. Financial Model Update
Mrs. Lugo informed the Committee that the update of the Financial Model
will be completed by June 25, 2014. At that time there will be a
conference call led by Khanh Phan of Raftelis. Ms. Phan will inform
District staff (Kelly McCann, Cindy Botts, and Delia Lugo) on the
assumptions used, in addition to the adopted 2014/15 Operating Budget,
to compete the updated model. At this time, District Staff is to request any
additional "what -if scenarios" they would like to be added to the model in
order to perform the desired analysis for which the model's use is
intended. Thereafter, an on -site training session to be led by Ms. Phan
will be scheduled. District Staff will be trained on how to fully utilize the
model.
5.2. Investment Report for the Period Ending May 31, 2014
Mrs. Lugo presented the investment reports for the period ending May 31,
2014. She reported that the average yield for May 2014 was 0.57 %. Mrs.
Lugo also reported that the overall increase in the investment balance
from the previous month is approximately $6.1 million. This is primarily
due to the receipt of funds recovered from the resolution of a claim.
5.3. Budget to Actual Results for May 2014
Mrs. Lugo reviewed the May 2014 Budget to Actual Results report with the
Committee. Mrs. Lugo noted that the expenditures to date are trending as
previously reported. The item noted was the recording of the
Extraordinary Item due to the receipt of funds recovered from the
resolution of a claim in the Water Fund.
5.4. Future Agenda Items and Staff Tasks
None.
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6. ADJOURNMENT
6.1. The meeting was adjourned at 4:45 p.m. The next Finance - Accounting
Committee meeting is scheduled to be held Monday, July 28, 2014 at 4:00
p.m.
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