HomeMy WebLinkAbout2008-03-11 - Finance-Accounting Committee Meeting MinutesMINUTES OF THE
YORBA LINDA WATER DISTRICT
FINANCE-ACCOUNTING COMMITTEE
March 11, 2008
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A meeting of the Yorba Linda Water District Finance-Accounting Committee was called
to order by Committee Chairman William R. Mills at 8:30 a.m. The meeting was held at
District Headquarters, 4622 Plumosa Drive, Yorba Linda.
DIRECTORS PRESENT:
Director William R. Mills, Chair
Director Michael J. Beverage
STAFF PRESENT:
Michael Payne, General Manager
Ken Vecchiarelli, Assistant GM
Diane Cyganik, Finance Director
Sandi Van Etten, Senior Accountant
ACTION ITEMS:
1. Selection of Independent Audit Firm for Fiscal years ending June 30, 2008-2010.
Finance Director Cyganik discussed the audit selection process and the reasons for
selecting the firm. The Committee asked the cost of the prior audit firm and asked
that it be disclosed in the Board of Director's agenda report. The Committee voiced
support of staff's recommendation of Diehl, Evans & Company to be the District's
Independent Auditors for the fiscal years ending June 30, 2008, 2009 and 2010.
2. Consider a Policy on the Disposition of Unexpected Refunds from Outside
Agencies - Continued from February 28, 2008 Board of Director's meeting.
General Manager Payne discussed what transpired in the Board of Director's
meeting of February 28, 2008 regarding this topic and the Board's concerns and
feedback. The Committee discussed all concerns and addressed each in detail.
Director Mills stated that the objective of this resolution was to create goodwill and
any type of refund should be passed to the five (5) entities which were identified in
Resolution No. 07-17. Resolution 07-17 stated that all increased costs of purchased
water and energy costs which are charged to YLWD by the Municipal Water District
of Orange County, Orange County Water District, the Metropolitan Water District,
Southern California Edison and/or Southern California Gas Company will pass
through by determining the unit cost per 100 cubic feet of water and then applying
such cost to retail accounts on the basis of water usage. Resolution No. 08-01 was
changed accordingly by taking out the work "unexpected" as well as taking out
Sections 2, 3 and 4.
DISCUSSION ITEMS:
3. Monthly Status report on portfolio investments ending February 29, 2008.
A report was prepared by Keith Khorey, Principal of Wells Capital Management and
presented to the Committee members in the agenda.
4. Monthly status report on portfolio investments ending January 31, 2008.
Ms. Van Etten presented the Investment Report to the Committee. The changes to
the report presentation were discussed, and one additional change was requested
to make the report clearer. This change will be incorporated in the next Investment
Report. The Investment Report for month ending January 31, 2008 was accepted
as presented with the expectation of staff revising the report as discussed.
5. MWD, MWDOC & OCWD Rate Projections
General Manager Payne reported on the water rate options of the above-mentioned
agencies and increases that will be coming in the very near future.
6. District Share of Property Tax Revenue
General Manager Payne shared with the Committee the ACWA State Budget Alert:
The state's Legislative Analyst's Office (LAO) proposes a new ERAF-like shift.
Unfortunately LAO targeted water and wastewater special districts to shift property
tax funds to counties via a new ERAF-like fund. The LAO is recommending $188
million be shifted each year without an end to fund the transfer of responsibility of
supervising parolees from the state to the counties. LAO is also recommending
that within a couple of years the legislature should authorize county boards of
supervisors to decide whether the remaining 50% of water and wastewater
property tax revenues left after this $188 million shift should be reallocated to other
local government.
ADJOURNMENT:
The Committee adjourned at approximately 9:55 a.m. The next Finance-Accounting
Committee meeting is scheduled for Tuesday, April 8, 2008 at 4:00 p.m. at District
Headquarters, 4622 Plumosa Drive, Yorba Linda, CA.
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