HomeMy WebLinkAbout2007-02-20 - Finance-Accounting Committee Meeting MinutesITEM NO. /S
MINUTES OF THE
YORBA LINDA WATER DISTRICT
FINANCE-ACCOUNTING COMMITTEE
February 20, 2007
A meeting of the Yorba Linda Water District Finance-Accounting Committee was called
to order by Committee Chairman William R. Mills at 8:40 a.m. The meeting was held at
District Headquarters, 4622 Plumosa Drive, Yorba Linda.
DIRECTORS PRESENT:
Director William R. Mills, Chairman
VISITORS PRESENT:
None
STAFF PRESENT:
Michael Payne, General Manager
Diane Cyganik, Finance Director
ACTION ITEMS
1. Finance Director Cyganik presented the Monthly Financial Statements for the fourth
and fifth months of fiscal year 2006/2007 ending October 31 and November 30,
2006, respectively. Director Mills would like to see less narrative in the agenda
report and more focus on the key points such as Total Water Sales, Total Variable
Water Costs, Personnel Costs, Depreciation, Supplies & Services as well as an
explanation for any unusual monthly variances that may occur out of the ordinary
course of business. He would also like to eliminate the prior year actual numbers
as they are not relative to the current year comparison of actual vs. budget. The
Committee will recommend that the financial statements for the months ending
October 31 and November 30, 2006 be received and filed by the Board of Directors.
STANDING ITEMS
2. The Investment Reports for months ending October 31 and November 30, 2006
were discussed and accepted as presented.
3. Monthly status of Wells Capital investments as of January 31, 2007 - Keith Khorey,
Principal of Wells Capital Management reported via conference call commencing at
8:45 a.m. to discuss activity in January. Mr. Khorey stated the District is close to
being fully invested, because not many certificates of deposit from other institutions
remain on the books at this time. He also stated the Fed is holding steady at 5Y4%
and not much is going on in the economy. He said we are in a "Goldilocks
Economy", meaning not too hot nor too cold. Based on this, as rates go up interest
rates will go down. He further stated that the District's portfolio is earning
approximately $100,000 in interest each month, the credit ratings of the majority of
our portfolio is rated at AAA and the longest held security is at 387 days. Also,
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mortgage rates have drifted upward. Mr. Khorey believes the Fed may need to
start tightening rates because inflation is again starting to creep in. General
Manager Payne asked if this was a good time to purchase bonds and Mr. Khorey's
response was affirmative. He said the bond curve is at approximately 3.60%,
however, there are lower borrowing rates in California by about 15% or 3.45% to
3.50°/x. Director Mills asked about purchasing Variable Rate Demand Notes and
Mr. Khorey replied it didn't make much sense to purchase these types of vehicles at
this time since rates are so low it would be better to purchase bonds. No further
questions were asked and the conference call was concluded by thanking Mr.
Khorey.
ADJOURNMENT
The Committee adjourned at approximately
Committee meeting is scheduled for March
4622 Plumosa Drive, Yorba Linda, CA.
9:50 a.m. The next Finance-Accounting
13th at 4:00 p.m. at District Headquarters,
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