HomeMy WebLinkAbout2014-11-17 - Finance-Accounting Committee Meeting MinutesMINUTES OF THE
YORBA LINDA WATER DISTRICT
FINANCE - ACCOUNTING COMMITTEE MEETING
Monday, November 17, 2014, 4:00 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The November 17, 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
Marc Marcantonio, General Manager
Delia Lugo, Finance Manager
4.1. Proposed Revisions to Procurement and Purchasing Policy
Mrs. Lugo presented the Proposed Revision to the Procurement and
Purchasing Policy currently active as Resolution No. 13 -03. Mrs. Lugo
explained that the revision is needed, which is identified as Section 7 in
the revised policy, in order to ensure that all proposed purchases of the
District are listed in an active, approved policy. Upon providing answers to
questions of the Committee, the Committee supports the suggested
revision and recommends that the Board of Directors adopt Resolution
No. 14 -XX.
4.2. Proposed Revisions to Policy Pertaining to Disposition of Refunds from
Outside Agencies
Mrs. Lugo presented the recommended revisions to Resolution No, 08 -01
in reference to the Policy Pertaining to Disposition of Refunds from
Outside Agencies. In order to promote efficiencies of Staff time and labor,
staff is recommending the procedures as established in Resolution No.
08 -01 still occur when a refund in an amount that is equal to or greater
than $75,000 is received, but when a refund that is less than $75,000 is
received that the refund is applied to offset a current year operating
expense at the discretion of the General Manager. The Committee
supports staff's recommendation of adopting the revision that establishes
some guidelines as reflected in Resolution No. 14 -XX.
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4.3. Unaudited Financial Statements for the Period Ending September 30,
2014 for the District
Mrs. Lugo presented the Unaudited Financial Statements for the Period
Ending September 30, 2014 for the Committee's review. With the
Committee's approval these statements will be included in the Consent
Calendar section for the November 26, 2014 Regular Board Meeting
Agenda. The Unaudited Debt Service Ratio Calculation for the period
ending September 30, 2014 was calculated to be 234 %, which is well
above the required coverage ratio of 1.10 %. After some discussion on
key items reported in the financial statements, the Committee supported
staff recommendation.
DISCUSSION ITEMS
5.1. Budget to Actual Results for October 2014
Mrs. Lugo presented the Budget to Actual Reports for the Month Ending
October 31, 2014. Mrs. Lugo reported that the District's reported water
revenue is 41.09% of annual budget, which is 1.1% 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 Insurance, Materials, Maintenance, Vehicle Equipment,
and other expenses due to the previous month reported reasons. In
addition, data processing is at 56.91 % of annual budget due to the timing
recorded Cogsdale, Azteca, and CDW annual software charges.
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 106.86% due to the acquisition of
replacement equipment.
5.2. Investment Report for the Period Ending October 31, 2014
Mrs. Lugo presented the Investment Report for the Period Ending October
31, 2014. She reported that the average yield for October 2014 was
0.61 %. Mrs. Lugo also reported that the overall decrease in the
investment balance from the previous month is approximately $801,000.
This is primarily due to the biannual Debt Service principal and interest
payment of $1,871,479 due October 1, 2014.
5.3. Future Bond Requirements and Recent Media Coverage
This discussion item was presented by Director Beverage. The discussion
brings to light that upon a public agency, such as the City of Stockton,
filing for bankruptcy and gets the approval to do so, that the pensions of
the filing agency are the first to be met. The taxpayers are ones left
holding the bag. This practice will make it more costly to service bonds in
the future.
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5.4. Future Agenda Items and Staff Tasks
Update the Financial Model with November actuals and projecting forward
for the remainder of the fiscal year. Analyze electrical costs as associated
with the District's Variable Costs. Review and update policies and
resolutions that pertain to the Finance Department.
6. ADJOURNMENT
6.1. The meeting was adjourned at 5:15 p.m. The next Finance - Accounting
Committee meeting is scheduled to be held Wednesday, December 17,
2014 at 10:00 a.m.
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