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HomeMy WebLinkAbout2014-11-17 - Finance-Accounting Committee Meeting Agenda PacketYorba Linda Hater District AGENDA YORBA LINDA WATER DISTRICT FINANCE - ACCOUNTING COMMITTEE MEETING Monday, November 17, 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 Marc Marcantonio, 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. Proposed Revisions to Procurement and Purchasing Policy Recommendation. That the Committee recommend the Board of Directors approve Resolution No. 14 XX Setting Forth a Procurement and Purchasing Policy and Rescinding Resolution No. 13 -03. 4.2. Proposed Revisions to Policy Pertaining to Disposition of Refunds from Outside Agencies Recommendation. That the Committee recommend the Board of Directors approve Resolution No. 14 XX Adopting a Policy on the Disposition of Refunds from Outside Agencies and Rescinding Resolution No. 08 -01. 4.3. Unaudited Financial Statements for the Period Ending September 30, 2014 for the District Recommendation. That the Committee recommend the Board of Directors receive and file the Unaudited Financial Statements for the Period Ending September 30, 2014. 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. Budget to Actual Results for October 2014 5.2. Investment Report for the Period Ending October 31, 2014 5.3. Future Bond Requirements and Recent Media Coverage 5.4. Future Agenda Items and Staff Tasks 6. ADJOURNMENT 6.1. The next Finance - Accounting Committee meeting is scheduled to be held Monday, December 22, 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. AGENDA REPORT Meeting Date: November 17, 2014 ITEM NO. 4.1 To: Finance - Accounting Committee From: Delia Lugo, Finance Manager Presented By: Delia Lugo, Finance Manager Dept: Finance Subject: Proposed Revisions to Procurement and Purchasing Policy STAFF RECOMMENDATION: That the Committee recommend the Board of Directors approve Resolution No. 14 -XX Setting Forth a Procurement and Purchasing Policy and Rescinding Resolution No. 13 -03. DISCUSSION: Staff has reviewed the current Purchasing Policy as adopted by Resolution No. 13-03. There is a need to add listed Section 7 in order to clarify the process required to ensure all purchases are covered by an existing policy in place by the District. ATTACHMENTS: Name: Description: Type: Resolution No. 14 -XX - Purchasing Policy.docx Resolution Resolution RESOLUTION NO. 14 -XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT SETTING FORTH A PROCUREMENT AND PURCHASING POLICY AND RESCINDING RESOLUTION NO. 13 -03 WHEREAS, the District established a Procurement and Purchasing Policy by adopting Resolution No. 13 -03 on February 14, 2013; and WHEREAS, from time to time it is necessary to review the policy and make modifications that reflect current District procedures, public policy demands and economic conditions. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of Yorba Linda Water District shall establish the following policies: Section 1: Property, Repairs and Modifications, Supplies and Services The following procedures and authority will be used for the acquisition or leasing of personal property; repair or modification of District equipment or structures; or obtaining labor, materials, supplies or services as identified in the budget: Dollar Amount $0-5,000 $5,001415,000 $15,001425,000 $25,001 - $75,000 >$75,001 Procedure 1 Written Quote 2 Written Quotes 3 Written Quotes 3 Written Quotes Competitive Bid Authority Dept. Manager General Manager General Manager Board of Directors Board of Directors Section 2: Capital Outlay, Improvement and Replacement Projects The following procedures and authority will be used for vehicles and equipment, fire hydrants, water and sewer pipelines, booster pump stations, reservoirs, etc. as identified in the budget: Dollar Amount $0415,000 $15,001425,000 $25,0014100,000 >$100,001 Procedure 2 Written Quotes 2 Written Quotes 3 Written Quotes Competitive Bid Authority Dept. Manager General Manager Board of Directors Board of Directors Resolution No. 14 -XX Setting Forth a Procurement and Purchasing Policy and Rescinding Resolution No. 13 -03 Section 3: Contract Amendments and Change Orders The following procedures and authority will be used for contract services amendments, professional service contract amendments and for capital projects where the change order does not alter project completion time: Dollar Amount Procedure ( *) Authority 5% of Project Cost, NTE $7,500 Notify GM Dept. Manager 10% of Project Cost, NTE $15,000 Notify BOD General Manager 10% of Project Cost, NTE $25,000 Notify BOD General Manager >10% of Project Cost or > $25,000 Agenda Item Board of Directors Section 4: Contractual Services Policy The following procedures and authority will be used for professional services such as engineering consultant, legal counsel, auditors, etc. as identified in the budget: Dollar Amount $045,000 $5,001415,000 $15,001425,000 >$25,001 Procedure 1 Written Proposal 2 Written Proposals 3 Written Proposals 3 Written Proposals Authority Dept. Mgr General Manager General Manager Board of Directors Section 5: Non - scheduled Capital Asset Repair and Replacement The following procedures and authority will be used for the acquisition of personal property; repair or modification of District equipment or structures; or obtaining labor, materials, supplies or services related to non - scheduled capital asset repair and replacement: Dollar Amount $0-10,000 $10,001425,000 $25,001 450,000 >$50,001 Procedure ( *) Notify GM Notify Committee Notify BOD Agenda Item Authority Dept. Manager General Manager General Manager Board of Directors Section 6: Emergency Policy The following procedures and authority will be used in emergency situations for events which require immediate extraordinary action to protect the public health, safety, welfare and property, with ratification by the Board at the next meeting or the earliest special meeting that may be called. Dollar Amount $04100,000 >$100,001 Procedure ( *) Notify BOD Next or Special Mtg Authority General Manager Board of Directors *In all cases where notification is required, a written memo shall be provided stating the reasons for the approval by the designee. Resolution No. 14 -XX Setting Forth a Procurement and Purchasing Policy and Rescinding Resolution No. 13 -03 Section 7 Other Purchases: In the event that a proposed purchase does not meet any of the requirements listed in Sections 1 -6 of this policy an approval to proceed with the purchase will be required from the Board of Directors. Section 8 Effective: The Procurement and Purchasing Policy adopted herein shall take effect immediately upon adoption of this Resolution. Section 9 Rescinding: That Resolution No. 13 -03 and conflicting Minute Orders are hereby rescinded upon adoption of Resolution No. 14 -XX. PASSED AND ADOPTED this _th day of November 2014 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Robert Kiley, President Yorba Linda Water District ATTEST: Mark Marcantonio, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidman, Esq. Kidman Law LLP Resolution No. 14 -XX Setting Forth a Procurement and Purchasing Policy and Rescinding Resolution No. 13 -03 3 ITEM NO. 4.2 AGENDA REPORT Meeting Date: November 17, 2014 To: Finance - Accounting Committee From: Delia Lugo, Finance Manager Presented By: Delia Lugo, Finance Manager Dept: Finance Subject: Proposed Revisions to Policy Pertaining to Disposition of Refunds from Outside Agencies STAFF RECOMMENDATION: That the Committee recommend the Board of Directors approve Resolution No. 14 -XX Adopting a Policy on the Disposition of Refunds from Outside Agencies and Rescinding Resolution No. 08 -01. DISCUSSION: From time to time the District will receive a refund from Outside Agencies. With the adoption of Resolution No. 08 -01, awn refund received from an Outside Agency needs to be passed on equally to all active customers within the District's service boundaries. Currently, the District has 24,598 active customers. Depending on the amount of the refund received and the credit process required in Resolution No. 08 -01, there can be an inefficient use of labor hours to fulfill the District's obligation in applying a credit of equal amount to each active customer account. In order to promote efficiencies in processes, 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. Any refund received which is less than $75,000 will be applied to offset current year operating expenses at the discretion of the General Manager. ATTACHMENTS: Resolution No. 14 -XX - D Description: n of Refunds.doc Resolution Type: Resolution RESOLUTION NO. 14 -XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING A POLICY ON THE DISPOSITION OF REFUNDS FROM OUTSIDE AGENCIES AND RESCINDING RESOLUTION NO. 08 -01 WHEREAS, the Board of Directors of the Yorba Linda Water District has, from time to time, received refunds from water agencies such as the Metropolitan Water District of Southern California and the Municipal Water District of Orange County; and WHEREAS, the Board of Directors has considered many options on the disposition of these refunds including: (1) an immediate return to District customers in the form of a refund; (2) a one -time refund to each currently active account; (3) a reduction in the water rate for the next twelve months; (4) a reduction in the water rate for just the summer months; (5) a return of the funds to the issuing agency with a request that those funds be applied to offset future invoices; and (6) deposit of the funds directly into the water operating fund account; and WHEREAS, the Board of Directors has decided in the past that the fairest, quickest and least expensive method was to issue a one -time refund credit to each active account excluding fire detector check accounts at the time of the refund; and WHEREAS, the Board of Directors desires to further clarify the method used to pass through these types of refunds to District customers. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District that when the District receives a refund from the Metropolitan Water District of Southern California, the Municipal Water District of Orange County, the Orange County Water District, Southern California Edison Company or The Gas Company in excess of $75,000, the refund shall be passed through to the customers in the following method. Section 1. By taking the total amount of the refund divided by the total number of active water accounts, excluding the fire detector check accounts, and applying the refund as a one -time credit on a date to be determined by the General Manager. Should the refund be less than $75,000, the refund will be credited against the appropriate operating general ledger expense account as determined by the General Manager. Section 2. That Resolution No. 08 -01 is hereby rescinded. Resolution No. 14 -XX Adopting a Policy on the Dispostion of Refunds from Outside Agencies Section 3. That Resolution No. 14 -XX becomes effective immediately upon adoption by the Board of Directors. PASSED AND ADOPTED this _th day of November 2014, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Robert R. Kiley, President Yorba Linda Water District ATTEST: Marc Marcantonio, Board Secretary Yorba Linda Water District Reviewed as to form by Legal Counsel: Art G. Kidman, Esq. Kidman Law LLP Resolution No. 14 -XX Adopting a Policy on the Dispostion of Refunds from Outside Agencies 2 Meeting Date: To: From: Presented By: Prepared By: Subject: SUMMARY: ITEM NO. 4.3 AGENDA REPORT November 17, 2014 Finance - Accounting Committee Delia Lugo, Finance Manager Delia Lugo, Finance Manager Dept: Finance Kelly McCann, Senior Accountant Unaudited Financial Statements for the Period Ending September 30, 2014 for the District Presented are the Unaudited Financial Statements for the Period Ending September 30, 2014 for the District. STAFF RECOMMENDATION: That the Committee recommend the Board of Directors receive and file the Unaudited Financial Statements for the Period Ending September 30, 2014. DISCUSSION: For the period ending September 30, 2014, staff is presenting unaudited statements in the CAFR format. We have included the traditional budget to actual statements for the District as a whole, as well as the individual water and sewer funds, and the debt service coverage calculation. Water Operating Revenue, as presented, is 30.37% of annual budget, which is 3.23% lower than the historical trend for this point of the year. Due to implementing the District's Water Conservation Ordinance as of September 2, 2014, as well as the effect of media coverage of the State's drought conditions, water consumption per capita has decreased by 23.67 GCPD for the month of September as compared to last year. This reflects a 10% reduction in water use. Other Operating Revenue is 35.16% of annual budget. Sewer Other Operating Revenue, as presented, is 43.09% of annual budget. As reported through September 30, 2014, Variable Water Costs are 31.44% of budget. These costs reflect an overall decrease of 4% when compared to those of the previous Fiscal Year. An additional factor to take into consideration this year are the costs associated with meeting the CUP obligation from OCWD, which total $851,951 through September 30, 2014. With the issuance of the 2008 Certificates of Participation (COP's) and the Refunding Revenue Bonds, Series 2012A the District covenanted "to fix, prescribe and collect rates and charges for Water Service which will be at least sufficient to yield during each Fiscal Year, Net Revenues equal to 110% of the Debit Service for such Fiscal Year ". To confirm the covenant is upheld, a calculation is made quarterly and presented to the Finance - Accounting Committee and received and filed by the Board of Directors. Accordingly, the unaudited debt service ratio through September 2014 is shown in the calculation as 234 %. This shows strong financial health for the District as it pertains to the debt service ratio. 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: Description: FY 2015 1st Qtr Consolidated Balance Sheet.xlsx FY 2015 1 st QTR Consolidated Balance Sheet 1st Qtr 2015 Debt Svc Ratio Calc.xlsx 1st Qtr 2015 Consolidated Stmt.xlsx 1st Qtr 2015 Sewer Stmt.xlsx 1st Qtr 2015 Water Stmt.xlsx FY 2015 1 st Qtr Debt Service Calculation FY 2015 1 st Qtr Consolidated Statement FY 2015 1 st Qtr Sewer Statement 1 st Qtr 2015 Water Statement Type: Backup Material Backup Material Backup Material Backup Material Backup Material YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF NET ASSETS September 30, 2014 (With September 30, 2013 for comparison only) ASSETS CURRENT ASSETS: Cash and cash equivalents Investment Accounts receivable - water and sewer services Accrued interest receivable Prepaid expenses & other deposits Inventory TOTAL CURRENT ASSETS NONCURRENT ASSETS: Bond issuance costs Other post - employment benefit (OPEB) asset Capital assets: Non - depreciable Depreciable, net of accumulated depreciation TOTAL NONCURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES: Accounts payable Accrued expenses Accrued interest payable Certificates of Participation - current portion Accrued OPEB Refunding Revenue Bond - current portion Compensated absences Customer and construction deposits Deferred revenue TOTAL CURRENT LIABILITIES LONG -TERM LIABILITIES (LESS CURRENT PORTION): Deferred annexation revenue Compensated absences Refunding Revenue Bond LOC Certificate of Participation TOTAL LONG TERM LIABILITIES (LESS CURRENT PORTION) TOTAL LIABILITIES NET ASSETS: September 2014 September 2013 $ 21,100,913 $ 11,324,489 9,249,075 3,825,724 18,488 503,326 265,946 34,963,472 9,173,107 3,926,776 18,319 253,942 253,823 24,950,456 469,002 491,972 138,944 131,790 7,211,423 6,918,300 190,938,770 193,483,596 198,758,139 201,025,658 233,721,611 225,976,114 3,301,218 3,119,720 1,110,683 1,249,653 865,480 882,173 735,000 705,000 3,790 - 275,000 260,000 300,638 240,092 334,798 315,203 380,796 397,522 7,307,403 7,169,363 13,364,806 13,786,685 855,663 760,291 8,070,000 8,330,000 4,970,754 1,986,653 31,872,068 32,699,770 59,133,291 57,563,399 66,440,694 64,732,762 $ 167,280,917 $ 161,243,352 YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS For the period ended September 30, 2014 (With fiscal year ended September 2013 for comparison only) OPERATING REVENUES: Water sales Sewer revenues Other operating revenues TOTAL OPERATING REVENUES OPERATING EXPENSES Variable water costs Personnel services Supplies and services Depreciation and amortization TOTAL OPERATING EXPENSES OPERATING INCOME /(LOSS) NONOPERATING REVENUES (EXPENSES): Property taxes Investment income Interest expense Other nonoperating revenues Other nonoperating expenses TOTAL NONOPERATING REVENUES /EXPENSES NET INCOME /(LOSS) BEFORE CAPITAL CONTRIBUTIONS & EXTRAORDINARY ITEM(S) EXTRAORDINARY ITEM(S) CAPITAL CONTRIBUTIONS CHANGES IN NET ASSETS NET ASSETS - BEGINNING OF YEAR NET ASSETS - FOR PERIOD END SEPTEMBER 30, 2014 September 2014 September 2013 $ 8,622,077 $ 8,418,598 408,388 400,141 257,003 308,941 9,287,468 9,127,680 4,693,449 1,969,673 1,057,731 1,840,117 9,560,970 4,890,773 1,951,032 959,047 1,816,903 9,617,755 (273,502) (490,075) 49,121 42,193 31,736 27,002 (434,464) (426,132) 100,204 182,650 (39,030) (6,714) (292,433) (181,001) (565,935) (671,076) 69,983 198,071 (495,952) (473,005) 167,776,869 161,716,357 $ 167,280,917 $ 161,243,352 Yorba Linda Water District Unaudited Debt Service Ratio Calculation For Period Ending September 30, 2014 Revenue (Operating): Water Sales Other Operating Revenue Total Operating Revenue: Revenue (Non- Operating): Interest Property Tax Other Non - Operating Revenue Total Non - Operating Revenue: YTD Debt Actual Service FY 2016 Calculation $ 8,622,077 $ 8,622,077 235,554 235,554 8,857,631 8,857,631 29,305 29,305 49,121 49,121 104,199 104,199 182,625 182,625 Total Revenue 9,040,266 9,040,266 Expenses (Operating): Variable Water Costs (G.W., Import & Power) 4,693,449 4,693,449 Salary Related Expenses 1,739,262 1,739,262 Supplies & Services 973,211 973,211 Depreciation 1,504,718 - Total Operating Expenses 8,910,640 7,405,922 Expenses (Non- Operating): Interest on Long Term Debt 434,464 - Other Expense 39,030 39,030 Total Non - Operating Expenses: 473,494 39,030 Total Expenses 9,384,134 7,444,962 Net Income (Loss) Before Capital Contributions (343,878) 1,696,304 Capital Contributions Net Change in Assest DEBT SERVICE RATIO CALCULATION: Net Revenues Debt Service o/ 50,806 $ (293,072) $ 1,696,304 $ 1,595,304 $ 682,371 234% 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 Period Ending September 30, 2014 Annual YTD Sept YTD YTD YTD Budget Budget Actual Actual Under(Over) % of FY 2016 FY 2016 FY 2016 FY 2016 Budget Budget $17,154,552 $4,288,638 $1,618,805 $5,262,514 $11,892,038 30.68% 2,074,097 518,524 176,131 568,714 1,505,383 27.42% 4,792,995 1,198,249 483,713 1,579,645 3,213,350 32.96% 4,478,000 1,119,500 421,182 1,211,204 3,266,796 27.05% 1,605,292 401,323 137,992 408,051 1,197,241 25.42% 201,000 50,250 221 337 200,663 0.17% 719,777 179,944 76,042 257,003 462,774 35.71% 31,025,713 7,756,428 2,914,086 9,287,468 21,738,245 29.93% 112,000 28,000 13,046 31,735 80,265 28.33% 1,283,642 320,911 41,095 49,121 1,234,521 3.83% 533,525 133,381 9,273 100,204 433,321 18.78% 1,929,167 482,292 63,414 181,060 1,748,107 9.39% Total Revenue 32,964,880 8,238,720 2,977,600 9,468,628 23,486,362 28.73% Expenses (Operating) Variable Water Costs (G.W., Import & Power) 14,928,972 3,732,243 1,460,020 4,693,449 10,235,523 31.44% Salary Related Expenses 8,224,812 2,056,203 726,702 1,969,673 6,255,139 23.95% Supplies & Services 4,389,840 1,097,460 473,213 1,057,732 3,332,108 24.10% Total Operating Expenses 27,543,624 6,885,906 2,659,935 7,720,854 19,822,770 28.03% Expenses (Non- Operating): Interest on Long Term Debt 1,780,793 445,198 150,882 434,464 1,346,329 24.40% Other Expense 72,000 18,000 47,382 39,030 32,970 54.21% Total Non - Operating Expenses: 1,852,793 463,198 198,264 473,494 1,379,299 25.56% Total Expenses 29,396,416 793499104 298689199 891949348 2192029068 27.88% Net Income (Loss) Before Capital Contributions 3,668,464 8899616 1199301 192749180 292849284 36.81% Capital Contributions 68,806 69,983 69,983 0.00% Net Income (Loss) Before Depreciation 3,668,464 889,616 188,107 1,344,163 2,214,301 37.77% Depreciation & Amortization 7,337,500 1,834,375 613,485 1,840,117 5,497,383 25.08% Total Net Income (Loss) ($3,779,036) ($944,769) ($426,378) ($496,964) ($3,283,082) 13.12% Capital - Direct Labor (20,657) (82,674) Revenue (Operating): Sewer Charge Revenue Locke Ranch Assessments Other Operating Revenue Total Operating Revenue: Revenue (Non- Operating): Interest Other Non - Operating Revenue Total Non - Operating Revenue: Total Revenue Expenses (Operating): Salary Related Expenses Supplies & Services: Communications Contractual Services Data Processing Dues & Memberships Fees & Permits Board Election Insurance Materials District Activities, Emp Recognition Maintenance Non - Capital Equipment Office Expense Professional Services Training Travel & Conferences Uncollectible Accounts Utilities Vehicle Equipment Supplies & Services Sub -Total Total Operating Expenses Expenses (Non- Operating): Interest Expense Other Expense Total Non - Operating Expenses: Total Expenses Yorba Linda Water District Sewer Fund For Period Ending September 30, 2014 Annual YTD Sept YTD YTD YTD Budget Budget Actual Actual Under(Over) % of Annual FY 2015 FY 2015 FY 2015 FY 2015 Budget Budget $1,605,292 $401,323 $137,992 $408,051 $1,197,241 25.42% 201,000 50,250 221 337 200,663 0.17% 49,774 12,444 1,226 21,449 28,325 43.09% 1,856,066 464,017 139,439 429,837 1,426,229 23.16% 12,000 3,000 1,216 2,431 9,569 20.26% 11,925 2,981 (1,999) (3,995) 15,920 - 33.50% 23,925 5,981 (783) (1,564) 25,489 - 6.54% 1,879,991 469,998 138,656 428,273 1,451,718 22.78% 861,340 215,335 87,347 230,411 630,929 27.37% 21,108 5,277 1,535 3,792 17,316 17.96% 39,249 9,812 4,273 9,709 29,540 24.74% 13,078 3,270 1,640 2,026 11,052 15.49% 5,744 1,436 25 1,787 3,957 31.11% 16,753 4,188 1,108 1,832 14,921 10.94% 5,250 1,313 - - 5,250 0.00% 21,934 5,484 14,492 14,499 7,435 66.10% 78,756 19,689 1,738 8,923 69,833 11.33% 1,730 433 47 71 1,659 4.10% 112,605 28,151 1,893 3,863 108,742 3.43% 19,475 4,869 8,944 15,357 4,118 78.86% 2,833 708 190 548 2,285 19.35% 39,413 9,853 2,395 5,962 33,451 15.13% 6,609 1,652 72 1,493 5,116 22.59% 4,371 1,093 170 352 4,019 8.05% 2,800 700 (12) (24) 2,824 - 0.86% 7,100 1,775 1,140 2,074 5,026 29.21% 77,261 19,315 2,479 12,256 65,005 15.86% 476,066 119,017 42,129 84,520 391,546 17.75% 1,337,406 334,352 129,476 314,931 1,022,475 23.55% 0.00% 0.00% 0.00% 1,337,406 334,352 129,476 314,931 1,022,475 23.55% Net Income (Loss) Before Capital Contributions 542,585 135,646 9,180 113,342 429,243 20.89% Capital Contributions 18,001 19,177 19,177 0.00% Net Income (Loss) Before Depreciation 542,585 135,646 27,181 132,519 448,420 24.42% Depreciation &Amortization 1,345,000 336,250 111,813 335,399 1,009,601 24.94% Total Net Income (Loss) ($802,415) ($200,604) ($84,632) ($202,880) ($599,535) 25.28% Capital - Direct Labor (546) (5,379) Yorba Linda Water District Water Fund For Period Ending September 30, 2014 Annual YTD Sept YTD YTD YTD Budget Budget Actual Actual Under(Over) % of Annual FY 2015 FY 2015 FY 2015 FY 2015 FY Budget Budget Revenue (Operating) Water Revenue (Residential) $17,154,552 $4,288,638 $1,618,805 $5,262,514 $11,892,038 30.68% Water Revenue (Commercial & Fire Det.) 2,074,097 518,524 176,131 568,714 1,505,383 27.42% Water Revenue (Landscape /Irrigation) 4,792,995 1,198,249 483,713 1,579,645 3,213,350 32.96% Water Revenue (Service Charge) 4,478,000 1,119,500 421,182 1,211,204 3,266,796 27.05% Other Operating Revenue 670,003 167,501 74,816 235,554 434,449 35.16% Total Operating Revenue: 29,169,647 7,292,412 2,774,647 8,857,631 20,312,016 30.37% Revenue (Non- Operating) Interest 100,000 25,000 11,830 29,305 70,695 29.31% Property Tax 1,283,642 320,911 41,095 49,121 1,234,521 3.83% Other Non - Operating Revenue 521,600 130,400 11,272 104,199 417,401 19.98% Total Non - Operating Revenue: 1,905,242 476,311 64,197 182,625 1,722,617 9.59% Total Revenue 1,852,793 463,198 198,264 473,494 1,379,299 25.56% 31,074,889 7,768,722 2,838,844 9,040,256 22,034,633 29.09% 28.08% Net Income (Loss) Before Capital Contributions 3,015,880 753,970 110,124 1,160,840 Expenses (Operating): 38.49% Capital Contributions - - 50,805 50,806 Variable Water Costs (G.W., Import & Power) 14,928,972 3,732,243 1,460,020 4,693,449 10,235,523 31.44% Salary Related Expenses 7,363,472 1,840,868 639,355 1,739,262 5,624,210 24.67% Supplies & Services: 25.11% Total Net Income (Loss) ($2,976,620) ($744,155) ($340,743) ($293,072) Communications 273,786 68,447 38,512 68,504 205,282 25.02% Contractual Services 521,451 130,363 49,600 121,818 399,633 23.36% Data Processing 173,752 43,438 31,519 36,643 137,109 21.09% Dues & Memberships 72,321 18,080 331 23,744 48,577 32.83% Fees & Permits 169,437 42,359 40,192 50,939 118,498 30.06% Board Election 69,750 17,438 - - 69,750 0.00% Insurance 291,406 72,852 54,902 54,993 236,413 18.87% Materials 579,369 144,842 63,474 186,804 392,565 32.24% District Activities, Emp Recognition 22,980 5,745 629 1,036 21,944 4.51% Maintenance 394,416 98,604 64,762 175,453 218,963 44.48% Non - Capital Equipment 132,525 33,131 2,578 33,757 98,768 25.47% Office Expense 37,642 9,411 2,641 7,394 30,248 19.64% Professional Services 672,197 168,049 32,571 80,108 592,089 11.92% Training 58,571 14,643 2,362 9,867 48,704 16.85% Travel & Conferences 42,129 10,532 1,554 3,974 38,155 9.43% Uncollectible Accounts 37,200 9,300 (165) (243) 37,443 -0.65% Utilities 83,700 20,925 14,200 24,873 58,827 29.72% Vehicle Equipment 281,139 70,285 31,419 93,547 187,592 33.27% Supplies & Services Sub -Total 3,913,772 978,443 431,081 973,211 2,940,561 24.87% Total Operating Expenses 26,206,216 6,551,554 2,530,456 7,405,922 18,800,294 28.26% Expenses (Non- Operating): Interest on Long Term Debt 1,780,793 445,198 150,882 434,464 1,346,329 24.40% Other Expense 72,000 18,000 47,382 39,030 32,970 54.21% Total Non - Operating Expenses: 1,852,793 463,198 198,264 473,494 1,379,299 25.56% Total Expenses 28,059,009 7,014,752 2,728,720 7,879,416 20,179,593 28.08% Net Income (Loss) Before Capital Contributions 3,015,880 753,970 110,124 1,160,840 1,855,040 38.49% Capital Contributions - - 50,805 50,806 50,806 0.00% Net Income (Loss) Before Depreciation 3,015,880 753,970 160,929 1,211,646 1,905,846 40.18% Depreciation & Amortization 5,992,500 1,498,125 501,672 1,504,718 4,487,782 25.11% Total Net Income (Loss) ($2,976,620) ($744,155) ($340,743) ($293,072) ($2,683,548) 9.85% Capital - Direct Labor (20,111) (77,295) Meeting Date: To: From: Presented By: Prepared By: Subject: DISCUSSION: ITEM NO. 5.1 AGENDA REPORT November 17, 2014 Finance - Accounting Committee Delia Lugo, Finance Manager Delia Lugo, Finance Manager Dept: Finance Kelly McCann, Senior Accountant Budget to Actual Results for October 2014 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 October 2014. For the month of October 2014, the District water revenue is 41.09% of annual budget, which is 1.11 % lower 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 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. 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: October 2014 Consolidated Stmt.xlsx October 2014 Water Stmt.xlsx October 2014 Sewer Stmt.xlsx Description: October 2014 Consolidated Statement October 2014 Water Statement October 2014 Sewer Statement Type: Backup Material Backup Material Backup Material Yorba Linda Water District Summary Financial Report Water & Sewer Funds For Four Months Ending October 31, 2014 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: Annual YTD Oct YTD YTD YTD Budget Budget Actual Actual Under(Over) % of FY 2016 FY 2016 FY 2016 FY 2016 Budget Budget $17,154,552 $5,718,184 $1,865,824 $7,128,338 $10,026,214 41.55% 2,074,097 691,366 208,475 777,189 1,296,908 37.47% 4,792,995 1,597,665 541,377 2,121,022 2,671,973 44.25% 4,478,000 1,492,667 422,700 1,633,904 2,844,096 36.49% 1,605,292 535,097 136,404 544,455 1,060,837 33.92% 201,000 67,000 86 423 200,577 0.21% 719,777 239,926 92,143 349,146 370,631 48.51% 31,025,713 10,341,904 3,267,009 12,554,477 18,471,236 40.46% 112,000 37,333 15,848 47,583 64,417 42.48% 1,283,642 427,881 6,207 55,328 1,228,314 4.31% 533,525 177,842 86,882 187,086 346,439 35.07% 1,929,167 643,056 108,937 289,997 1,639,170 15.03% Total Revenue 32,964,880 10,984,960 3,376,946 12,844,474 20,110,406 38.98% Expenses (Operating) Variable Water Costs (G.W., Import & Power) 14,928,972 4,976,324 1,609,898 6,303,347 8,625,625 42.22% Salary Related Expenses 8,224,812 2,741,604 600,745 2,570,418 5,654,394 31.25% Supplies & Services 4,413,370 1,471,123 577,665 1,635,397 2,777,973 37.06% Total Operating Expenses 27,567,154 9,189,051 2,788,308 10,509,162 17,057,992 38.12% Expenses (Non- Operating): Interest on Long Term Debt 1,780,793 593,598 137,140 571,604 1,209,189 32.10% Other Expense 72,000 24,000 (5,031) 33,999 38,001 47.22% Total Non - Operating Expenses: 1,852,793 617,598 132,109 605,603 1,247,190 32.69% Total Expenses 29,419,946 998069649 299209417 11,114,766 1893069181 37.78% Net Income (Loss) Before Capital Contributions 3,634,934 191789311 4669629 197299709 198069226 48.93% Capital Contributions 69,983 69,983 0.00% Net Income (Loss) Before Depreciation 3,634,934 1,178,311 466,629 1,799,692 1,736,242 60.91% Depreciation & Amortization 7,337,500 2,445,833 613,863 2,453,980 4,883,520 33.44% Total Net Income (Loss) ($3,802,666) ($1,267,622) ($168,334) ($664,288) ($3,148,278) 17.21% Capital - Direct Labor (20,983) Yorba Linda Water District Water Fund For Four Months Ending October 31, 2014 Annual YTD Oct YTD YTD YTD Budget Budget Actual Actual Under(Over) % of Annual FY 2015 FY 2015 FY 2015 FY 2015 FY Budget Budget Revenue (Operating) Water Revenue (Residential) $17,154,552 $5,718,184 $1,865,824 $7,128,338 $10,026,214 41.55% Water Revenue (Commercial & Fire Det.) 2,074,097 691,366 208,475 777,189 1,296,908 37.47% Water Revenue (Landscape /Irrigation) 4,792,995 1,597,665 541,377 2,121,022 2,671,973 44.25% Water Revenue (Service Charge) 4,478,000 1,492,667 422,700 1,633,904 2,844,096 36.49% Other Operating Revenue 670,003 223,334 89,919 325,473 344,530 48.58% Total Operating Revenue: 29,169,647 9,723,216 3,128,295 11,985,926 17,183,721 41.09% Revenue (Non- Operating) Interest 100,000 33,333 13,924 43,229 56,771 43.23% Property Tax 1,283,642 427,881 6,207 55,328 1,228,314 4.31% Other Non - Operating Revenue 521,600 173,867 84,881 189,080 332,520 36.25% Total Non - Operating Revenue: 1,905,242 635,081 105,012 287,637 1,617,605 15.10% Total Revenue 1,852,793 617,598 132,109 605,603 1,247,190 32.69% 31,074,889 10,358,296 3,233,307 12,273,563 18,801,326 39.50% 38.02% Net Income (Loss) Before Capital Contributions 3,015,880 1,005,293 443,722 1,604,562 Expenses (Operating): 53.20% Capital Contributions - - 50,806 Variable Water Costs (G.W., Import & Power) 14,928,972 4,976,324 1,609,898 6,303,347 8,625,625 42.22% Salary Related Expenses 7,363,472 2,454,491 518,921 2,258,183 5,105,289 32.00% Supplies & Services: 33.49% Total Net Income (Loss) ($2,976,620) ($992,207) ($58,252) ($351,324) Communications 273,786 91,262 15,295 83,799 189,987 30.61% Contractual Services 521,451 173,817 59,940 181,758 339,693 34.86% Data Processing 173,752 57,917 62,243 98,886 74,866 56.91% Dues & Memberships 72,321 24,107 5,897 29,641 42,680 40.99% Fees & Permits 169,437 56,479 2,125 53,064 116,373 31.32% Board Election 69,750 23,250 - - 69,750 0.00% Insurance 291,406 97,135 206,645 261,638 29,768 89.78% Materials 579,369 193,123 72,216 259,020 320,349 44.71% District Activities, Emp Recognition 22,980 7,660 3,101 4,137 18,843 18.00% Maintenance 394,416 131,472 29,790 205,243 189,173 52.04% Non - Capital Equipment 132,525 44,175 5,968 39,725 92,800 29.98% Office Expense 37,642 12,547 4,024 11,418 26,224 30.33% Professional Services 672,197 224,066 29,351 109,459 562,738 16.28% Training 58,571 19,524 1,986 11,853 46,718 20.24% Travel & Conferences 42,129 14,043 5,673 9,647 32,482 22.90% Uncollectible Accounts 37,200 12,400 515 272 36,928 0.73% Utilities 83,700 27,900 3,940 28,813 54,887 34.42% Vehicle Equipment 281,139 93,713 19,948 113,495 167,644 40.37% Supplies & Services Sub -Total 3,913,772 1,304,591 528,657 1,501,868 2,411,904 38.37% Total Operating Expenses 26,206,216 8,735,405 2,657,476 10,063,398 16,142,818 38.40% Expenses (Non- Operating): Interest on Long Term Debt 1,780,793 593,598 137,140 571,604 1,209,189 32.10% Other Expense 72,000 24,000 (5,031) 33,999 38,001 47.22% Total Non - Operating Expenses: 1,852,793 617,598 132,109 605,603 1,247,190 32.69% Total Expenses 28,059,009 9,353,003 2,789,585 10,669,001 17,390,008 38.02% Net Income (Loss) Before Capital Contributions 3,015,880 1,005,293 443,722 1,604,562 1,411,318 53.20% Capital Contributions - - 50,806 50,806 0.00% Net Income (Loss) Before Depreciation 3,015,880 1,005,293 443,722 1,655,368 1,462,124 54.89% Depreciation & Amortization 5,992,500 1,997,500 501,974 2,006,692 3,985,808 33.49% Total Net Income (Loss) ($2,976,620) ($992,207) ($58,252) ($351,324) ($2,625,296) 11.80% Capital - Direct Labor (20,642) (97,937) Revenue (Operating): Sewer Charge Revenue Locke Ranch Assessments Other Operating Revenue Total Operating Revenue: Revenue (Non- Operating): Interest Other Non - Operating Revenue Total Non - Operating Revenue: Total Revenue Expenses (Operating): Salary Related Expenses Supplies & Services: Communications Contractual Services Data Processing Dues & Memberships Fees & Permits Board Election Insurance Materials District Activities, Emp Recognition Maintenance Non - Capital Equipment Office Expense Professional Services Training Travel & Conferences Uncollectible Accounts Utilities Vehicle Equipment Supplies & Services Sub -Total Total Operating Expenses Expenses (Non- Operating): Interest Expense Other Expense Total Non - Operating Expenses: Total Expenses Yorba Linda Water District Sewer Fund For Four Months Ending October 31, 2014 Annual YTD Oct YTD YTD YTD Budget Budget Actual Actual Under(Over) % of Annual FY 2015 FY 2015 FY 2015 FY 2015 Budget Budget $1,605,292 $535,097 $136,404 $544,455 $1,060,837 33.92% 201,000 67,000 86 423 200,577 0.21% 49,774 16,591 2,224 23,673 26,101 47.56% 1,856,066 618,689 138,714 568,551 1,287,515 30.63% 12,000 4,000 1,924 4,355 7,645 36.29% 11,925 3,975 2,000 (1,995) 13,920 - 16.73% 23,925 7,975 3,924 2,360 21,565 9.86% 1,879,991 626,664 142,638 570,911 1,309,080 30.37% 861,340 287,113 81,823 312,234 549,106 36.91% 21,108 7,036 1,151 4,943 16,165 23.42% 39,249 13,083 2,938 12,647 26,602 32.22% 13,078 4,359 3,492 5,518 7,560 42.19% 5,744 1,915 444 2,231 3,513 38.84% 16,753 5,584 362 2,194 14,559 13.10% 5,250 1,750 - - 5,250 0.00% 21,934 7,311 - 14,499 7,435 66.10% 78,756 26,252 4,535 13,458 65,298 17.09% 1,730 577 233 304 1,426 17.57% 136,136 45,379 24,071 27,934 108,202 20.52% 19,475 6,492 5,454 20,811 (1,336) 106.86% 2,833 944 303 851 1,982 30.04% 39,413 13,138 2,209 8,171 31,242 20.73% 6,609 2,203 149 1,642 4,967 24.85% 4,371 1,457 427 779 3,592 17.82% 2,800 933 150 126 2,674 4.50% 7,100 2,367 359 2,433 4,667 34.27% 77,261 25,754 2,730 14,986 62,275 19.40% 499,597 166,532 49,007 133,527 366,070 26.73% 1,360,937 453,646 130,830 445,761 915,176 32.75% 0.00% 0.00% 0.00% 1,360,937 453,646 130,830 445,761 915,176 32.75% Net Income (Loss) Before Capital Contributions 519,054 173,018 11,808 125,150 393,904 24.11% Capital Contributions 19,177 19,177 0.00% Net Income (Loss) Before Depreciation 519,054 173,018 11,808 144,327 413,081 27.81% Depreciation &Amortization 1,345,000 448,333 111,889 447,288 897,712 33.26% Total Net Income (Loss) ($825,946) ($275,315) ($100,081) ($302,961) ($522,985) 36.68% Capital - Direct Labor (342) (5,721) Meeting Date: To: From: Presented By: Prepared By: Subject: SUMMARY: ITEM NO. 5.2 AGENDA REPORT November 17, 2014 Finance - Accounting Committee Delia Lugo, Finance Manager Delia Lugo, Finance Manager Dept: Finance Kelly McCann, Senior Accountant Investment Report for the Period Ending October 31, 2014 Staff is submitting the Investment Reports for the Month Ending October 31, 2014 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 period ending October 31, 2014 is 0.61 %. The overall decrease in the investment balance from the previous month is approximately $801,000. One of the balance changes include a decrease in COP Revenue Bond - Reserve fund of $1,871,479 due to the payment of the Debt Service principal and interest payment of October 1, 2014. In addition, the reported increase in the Water Operating Reserve fund of $448,383 is due to a positive net effect between operating revenues and expenses through the reporting month of the Fiscal Year, and the increase in the Water Capital Project Reserve fund of $654,423 due to the collection of the Annexation Fees from Toll Brothers. 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: Description: Type: Invst Rpt 10- 14.xlsx Investment Report for Period Ending October 2014 Backup Material Invst Agenda Backup - October 2014.xlsx Investment Summary Report - October 2014 Backup Material Yorba Linda Water District Investment Portfolio Report October 31, 2014 Market % Date of Percent Value Par of Total Institution Maturity Yield Checking Account: $ 99,917 $ 99,917 Wells Fargo Bank 81,831 81,831 Pershing $ 181,748 $ 181,748 0.62% Total 0.00°/% Money Market Accounts: $ 54,978 $ 54,978 37,244 37,244 4,118,196 $ 4,118,196 13.97% Federal Agency Securities Wells Fargo Money Market 0.03% US Bank (Revenue Bonds) 0.03% Bank of the West 0.09% Total 0.09% $ 495,035 $ 500,000 Fannie Mae 05/25/18 1.13% 493,675 500,000 Federal Home Loan Bank 06/12/18 1.01% 499,055 500,000 Fannie Mae 06/12/18 0.85% 495,260 500,000 Federal Home Loan Bank 06/13/18 1.11% 495,510 500,000 Federal Home Loan Bank 06/20/18 1.13% 2,113,393 2,124,676 Federal Home Loan Bank 05/24/17 0.88% $ 4,591,928 $ 4,624,676 15.58% Total 05/14/18 0.97% Certificates of Deposits $ 245,587 $ 248,000 CIT Bank, Salt Lake 05/22/18 1.21% 245,418 248,000 Discover 05/22/18 1.21% 245,964 248,000 Goldman Sachs Bank 05/22/18 1.20% 245,651 248,000 Beal Bank 05/23/18 1.00% 247,147 248,000 Wells Fargo 04/27/18 0.90% 244,698 247,000 Barclays Bank 04/30/18 0.70% 246,266 248,000 State Bank of India 05/14/18 1.15% 247,352 249,000 Webster Bank 05/03/18 0.90% 245,577 248,000 American Express Centurion Bank 05/23/18 1.21% 243,578 248,000 GE Capital Bank 05/24/18 1.11% 248,905 249,000 Merrick Bank 05/24/17 0.75% 247,906 248,000 BMW Bank 05/24/17 0.90% 249,057 249,000 Firstbank Puerto Rico 05/24/16 0.74% 246,567 249,000 Oriental Bank & Trust 05/29/18 1.06% 246,639 249,000 Silvergate Bank 05/30/18 1.00% 246,557 249,000 Enterprise Bank & TR Co Lowell 05/30/18 1.00% 246,547 249,000 Safra National Bank 05/31/18 1.00% 245,565 248,000 Townebank Portsmouth 05/31/18 1.00% 246,565 249,000 Mascoma Savings Bank 05/29/18 1.06% $ 4,681,548 $ 4,719,000 15.89% Total 1.01% Pooled Investment Accounts: $ 6,489,484 $ 6,489,484 Local Agency Investment Fund 0.26% 3,075 3,074 Ca1TRUST Short Term 0.38% 9,404,581 9,414,615 Ca1TRUST Medium Term 0.71% $ 15,897,140.15 $ 15,907,173 53.94% 0.53% $ 29,470,560 $ 29,550,793 100% Total Investments 0.61% 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 10/31/14 Investment Summary Report Below is a chart summarizing the yields as well as terms and maturities for the month of October 2014: Average # of Month Portfolio Days to of 2014 Yield Maturity October 0.61% 386 Below is are charts comparing operating fund interest for current and prior fiscal years. Actual Interest Monthly - October Year -to -Date 10/31/2013 10/31/2014 $ 9,895 $ 15,848 $ 36,897 $ 47,584 Budget 2013/2014 2014/2015 Interest Budget, October YTD $ 29,000 $ 37,333 Interest Budget, Annual $ 87,000 $ 112,000 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: September 2014 % Alloc October 2014 % Alloc Fund Description Balance 9/30/2014 Balance 10/31/2014 Water Operating Reserve $ 2,006,819 6.67% $ 2,455,202 8.36% Water Emergency Reserve 1,011,245 3.36% 1,014,138 3.45% Water Capital Project Reserve 16,677,713 55.40% 17,332,136 59.01% Water Reserve for Debt Service 2,731,297 9.07% 2,731,478 9.30% Maintenance Reserve 150,335 0.50% 150,432 0.51% Employee Liability Reserve 200,169 0.66% 200,182 0.68% COP Revenue Bond 2008 - Reserve 4,022,134 13.36% 2,150,637 7.32% Sewer Operating 92,902 0.31% 118,479 0.40% Sewer Emergency Reserve 1,010,328 3.36% 1,012,264 3.45% Sewer Capital Project Reserve 2,203,314 7.32% 2,205,695 7.51% $ 30,106,256 100.00% $ 29,370,642 100.00% Wells Fargo Bank Checking Water Operating 104,502 54,370 Sewer Operating 60,885 45,548 165,387 99,917 Totals $ 30,271,643 $ 29,470,560 ITEM NO. 5.3 AGENDA REPORT Meeting Date: November 17, 2014 Subject: Future Bond Requirements and Recent Media Coverage ATTACHMENTS: Description: Type: CAL WATCHDOG.docx Backup Material Backup Material CAL WATCHDOG. COM BK judge slams taxpayers on Stockton pensions November 2, 2014 - By John Seiler In boon to public pensioners and a shock to taxpayers throughout California, federal Judge Christopher M. Klein approved a bankruptcy plan to put Stockton city retirees at the top of the heap. That means taxpayers are at the bottom. Also stiffed will be bondholders. That puts at risk other municipal bonds throughout California. And it will mean higher costs to service future bonds, such as the $7.5 billion in water bonds on the Nov. 4 ballot as Proposition 1. Investors understandably will demand higher interest rates for any bonds emanating from the Pyrite State. Which means taxpayers again will pick up the tab. The city sensibly argued that Klein's action also puts it at risk for another bankruptcy. "But Klein said Thursday that Stockton's plan for paying creditors over the years was adequate and passed all legal tests," reported the Los Angeles Times. But that's just what has happened to Vallejo after its 2008 bankruptcy also left it forced to pay full pension benefits. As CNN reported in March: "The California city of Vallejo emerged from bankruptcy just over two years ago, but it is still struggling to pay its bills. The main culprit: Ballooning pension costs, which will hit more than $14 million this year, a nearly 40% increase from two years ago. " Meanwhile, the California Public Employees Retirement System has been spiking pensions again. Next up: San Bernardino's bankruptcy. In September, Judge Meredith Jury ruled the city unilaterally could cut firefighter pensions. We'll soon see if her ruling sticks. Meanwhile, as James Poulos reported on our website, the state is spending so much on pensions its roads are crumbling to dust. Well, I guess it's ok to make sure state pensioners, more than 16,000 of whom now pull down $100,000 or more a year, can enjoy their retirements in Lucullan luxury on their Idaho ranches. - See more at: http: / /calwatchdog.com /2014/11/02/bk judge- slams- taxpayers -on- stockton- pensions / #sthash. l A3 C7gsG. dpuf