HomeMy WebLinkAbout2014-10-29 - Finance-Accounting Committee Meeting MinutesMINUTES OF THE
YORBA LINDA WATER DISTRICT
FINANCE - ACCOUNTING COMMITTEE MEETING
Wednesday, October 29, 2014, 4:00 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The October 29, 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
3.
4.
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Director Phil Hawkins, Chair
Director Michael J. Beverage
PUBLIC COMMENTS
None.
ACTION CALENDAR
STAFF
Marc Marcantonio, General Manager
Delia Lugo, Finance Manager
4.1. Investment Report for the Period Ending September 30, 2014
Mrs. Lugo presented the Investment Report for the Period Ending
September 30, 2014. She reported that the average yield for September
2014 was 0.60 %. Mrs. Lugo also reported that the overall increase in the
investment balance from the previous month is approximately $1.4 million.
A larger balance change includes an increase in COP Revenue Bond -
Reserve Fund of $1,874,000 due to the posting of funds to be available for
the Debt Service principal and interest payment due on October 1, 2014.
The decrease in Water Reserve for Debt Services fund of $588,781 is the
direct result of making funds available for Debt Service payment due
October 1, 2014. The Committee asked some clarifying questions and
supported staff's recommendation.
DISCUSSION ITEMS
5.1. Budget to Actual Results for September 2014
Mrs. Lugo presented the Budget to Actual Reports for the Month Ending
September 30, 2014. Mrs. Lugo reported that the District's reported water
revenue is 30.34% of annual budget, which is 3.71 % lower that the
historical trend for this point of the fiscal year. The majority of the Water
Fund's individual Supplies and Services expenses are below budget, with
the exceptions of Dues & Memberships, Materials, Maintenance, and
Vehicle Equipment due to the previous month's reported reasons.
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In addition, Insurance is at 66.10% of annual budget due to annual auto
and general liability insurance payment to ACWA/JPIA, Utilities is at
29.72% of the annual budget due to electricity costs at the Richfield and
Miraloma facilities, and Other Expenses are at 53.34% of the annual
budget due to adjustments in the prior year invoices for the Highland
Booster Station from the Southern California Gas Company.
Overall, Sewer Supplies and Services expenses are trending below
budget, with the same exceptions noted in the water fund. In addition,
Non - Capital Equipment is at 78.86% of annual budget due to the
replacement of the camera cable in the camera vehicle.
5.2. Overhead Rate Analysis Report
Kelly McCann presented the most recent overhead calculation for the
Committee's review. In Kelly's presentation, he discussed the how and
why we calculate an overhead rate, displayed how subjective some
expense items can be when determining whether they are direct or
indirect costs to the District, and when the overhead rate will be used in
future miscellaneous billings presented for payment. The District's current
Overhead Rate has been calculated to be 78 %.
5.3. Supplemental Investment Services Provided by Kreisler Long -term
Investments and Blaylock Robert Van, LLC
This item entailed Mrs. Lugo discussing the Finance Department's interest
in obtaining information on utilizing a third party to assist on future
investments the District would consider in order to optimize potential
interest earnings. Kreisler Long -term Investments was sought out after
receiving referrals from other local governmental agencies. A professional
introduction and biography from Kreisler Long -term Investments and
Blaylock Robert Van, LLC were included for review by the Committee.
5.4. Refund Received from MWDOC
In order for the refund received from Municipal Water District to be
credited against current year expenses and revenues, Mrs. Lugo
discussed with the Committee how District Resolution 08 -01 needs to be
reviewed and rewritten in order to allow for the refund to be applied in the
most cost effective manner.
5.5. Future Agenda Items and Staff Tasks
Invite Kreisler Long -term Investments to attend the next Finance -
Accounting Committee meeting on November 24, 2014.
Review the current Purchasing Policy and make and recommendations for
additions, changes, or deletions.
Review Resolution 08 -01 and make recommendations that would make
the resolution cost effective for the District.
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6. ADJOURNMENT
6.1. The meeting was adjourned at 5:40 p.m. The next Finance - Accounting
Committee meeting is scheduled to be held Monday, November 24, 2014
at 4:00 p.m.
DL
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