HomeMy WebLinkAbout2008-04-08 - Finance-Accounting Committee Meeting MinutesAs'PROMPTFif.8OARD;Aj;RECTVi l
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ITEM NO. l0, ?V.
MINUTES OF THE
YORBA LINDA WATER DISTRICT
NANCE-ACCOUNTING COMMITTEE
April 8, 2008
A meeting of the Yorba Linda Water District Finance-Accounting Committee was called
to order by Committee Chairman Mike Beverage at 4:05 p.m. The meeting was held at
District Headquarters, 4622 Plumosa Drive, Yorba Linda.
DIRECTORS PRESENT:
Director Michael J. Beverage, Chair
Director John W. Summerfield
Alternate: Director William R Mills
STAFF PRESENT:
Michael Payne, General Manager
Ken Vecchiarelli, Assistant Gen. Manager
Diane Cyganik, Finance Director
Sandi Van Etten, Senior Accountant
ACTION ITEMS:
1. Consider the quarterly Financial Statements for the first and second quarters of FY
2007/2008.
Finance Director Cyganik presented the Quarterly Financial Statements for the first
and second quarters of fiscal year 2007/2008 ending September 30 and December
31, 2007. The Committee asked a few questions which were all answered. The
Committee will recommend that the financial statements for the quarters ending
September 30 and December 31, 2007 be received and filed by the Board of
Directors.
2. Consider the monthly Financial Statements for the seventh and eighth months
ending January 31 and February 29, 2008, respectively.
The monthly statements were reviewed and the Committee accepted them as
presented.
DISCUSSION ITEMS:
3. Review of the Investment Report ending February 29, 2008.
The Investment Report for month ending February 29, 2008 was discussed and
accepted as presented.
4. Status report on Wells Capital portfolio investments as of March 31, 2008.
The committee asked Keith Khorey for an update on the status of the District's
investments. Mr. Khorey said the overall bond market is firmer than it was since the
Bears Sterns issue. In general, the financial markets have increased since last
month and all of the remaining Short-Term Corporate Securities are rated at A or
AA. It was noted that there are three options: (1) sell everything with a small loss;
(2) sell the investments at the coupon reset date and put the proceeds in a money
market fund; or (3) sit tight and see which direction the market takes. Mr. Khorey
recommended, based on our current investment policy, sitting tight. However, if the
committee chose to reconsider the District's investment policy, he might have a
different recommendation. The decision was made to let Wells Capital do what we
pay them to do, based on our current investment policy and objectives.
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5. Reporting of Significant Event in Connection with the Continuing Disclosure
Obligations on the 2003 Certificates of Participation.
A conference call and memo from Fieldman Rolapp & Associates noted that the
credit rating of the FGIC Insurance Company has been downgraded, and that the
rating downgrades are not a reflection of the District's ability to pay principal and
interest on the 2003 Certificates. The reason for the reporting disclosure was to do
our due diligence in filing A Significant Event Notification with the Nationally
Recognized Exchange Commission pursuant to compliance with the Security
Exchange Commission (SEC) Rule 15c2-12, Section 5(C).
ADJOURNMENT:
The Committee adjourned at approximately 5:05 p.m. The next Finance-Accounting
Committee meeting is scheduled for May 13th at 4:00 p.m. at the District's
Administration building, 1717 E Miraloma Avenue, Placentia, CA.
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