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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. 671 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. 1 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. 2 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 3