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HomeMy WebLinkAbout2008-06-10 - Finance-Accounting Committee Meeting Agenda PacketI, 0 0 HL w YORBA LINDA WATER DISTRICT FINANCE - ACCOUNTING COMMITTEE MEETING Tuesday, June 10, 2008, 4:00 p.m. 1717 E. Miraloma Avenue, Placentia - Tel: (714) 701 - 3020 AGENDA COMMITTEE: Director Michael J. Beverage, Chair Director John W. Summerfield Alternate: Director William R. Mills STAFF: Michael A. Payne, General Manager Ken Vecchiarelli, Asst. Gen Mgr. Sandi Van Etten, Senior Accountant INTRODUCTION OF VISITORS AND 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. ACTION ITEMS: This portion of the agenda is for items where staff presentations and committee discussions are needed prior to formal committee actions. Monthly Financial Statements for the ninth and tenth months ending March 31 and April 30, 2008, respectively. Recommendation: That the Finance-Accounting Committee review and recommend to the Board of Directors that the Monthly Financial Statements for March and April 2008 be received and filed. 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. 2. Investment Report Ending April 30, 2008. 3. Monthly Portfolio Reports Ending May 31, 2008. Report by Keith Khorey, Wells Capital Management. 4. Appropriations Limit . -1- a1 ~ s ADJOURNMENT: The next Finance-Accounting Committee meeting is scheduled for July 8, 2008 at 4:00 P. M. 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 Michael A. Payne, District 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. -2- I- 0 AGENDA REPORT Committee Meeting Date: June 10, 2008 To: Finance-Accounting Committee From: Michael A. Payne, General Manager Staff Contact: Diane Cyganik, Finance Director Sandi Van Etten, Senior Accountant ITEM NO. J- Reviewed by General Counsel: N/A Budgeted: N/A Total Budget: Funding Source: All Funds CEQA Account No: Job No: Compliance: N/A Estimated Costs: Dept: Bus Subject: Financial Statements for the ninth and tenth months of fiscal year 2007-2008 ending March 31 and April 30, 2008, respectively. SUMMARY: A presentation will be made of the Financial Statements for the ninth and tenth months of fiscal year 2007-2008 ending March 31 and April 30, 2008, respectively. DISCUSSION: The Water Operating Fund had a Net Loss for the ninth month of fiscal year 2007-2008 ending March 31, 2008 of $626,058. The key factors are outlined below: Yorba Linda Water District Monthly Financial Statement Analysis - Water Operating Fund For the Month Ending March 31, 2008 March , Y-T-D Y-T-D Budget 2008 Budget Budget Description FY 2007/08 Actual Y-T-D Remaining Remaining Total Water Sales $ 17,217,870 $ 14,972,256 $ (2,245,614) -13% Total Variable Water Costs $ 10,520,000 $ 7,554,953 $ 2,965,047 28% Personnel Costs $ 6,992,970 $ 3,773,137 $ 3,219,833 46% Supplies & Services $ 3,740,200 $ 2,238,305 $ 1,501,895 40% The Water Operating Fund is showing water sales greater than what we had anticipated due to the drier weather conditions as well as the water rate increase that was not included in the budget. The variable water costs are pretty much on target with budget. Personnel costs as well as supplies & services are lower than anticipated based on the budget at this point in time. Personnel costs are due to budgeted positions that have not been filled and supplies & services are because of timing issues of as to when products are needed, ordered and received. 0 0 The Sewer Fund had a Net Loss for the ninth month of fiscal year 2007-2008 ending March 31, 2008 of $108,875. The key factors are outlined below: Yorba Linda Water District Monthly Financial Statement Analysis - Sewer Operating Fund For the Month Ending March 31, 2008 Description Sewer Maintenance Charges Personnel Costs Supplies & Services March, Y-T-D Budget 2008 Budget FY 2007108 Actual Y-T-D Remaining $ 1,243,700 $ 904,609 $ (339,091) $ 694,130 $ 430,625 $ 263,505 $ 336,600 $ 202,403 $ 134,197 Y-T-D Budget Remaining_ -27% 38% 40% The Sewer Maintenance Charges are pretty much right on target as to what was budgeted for at this point in time. The Personnel Costs as well as the Supplies & Services are slightly lower than anticipated by 13% and 15%, respectively. However, there aren't any significant material variances to report. Financial Statement Overview for April 30, 2008 The Water Operating Fund had a Net Loss for the tenth month of fiscal year 2007-2008 ending April 30, 2008 of $1,589,240. The key factors are outlined below: Yorba Linda Water District Monthly Financial Statement Analysis - Water Operating Fund For the Month Ending April 30, 2008 April, Y-T-D Y-T-D Budget 2008 Budget Budget Description FY 2007108 Actual Y-T-D Remaining Remaining Total Water Sales $ 17,217,870 $ 15,805,047 $ (1,412,823) -8% Total Variable Water Costs $ 10,520,000 $ 8,467,317 $ 2,052,683 20% Personnel Costs $ 6,992,970 $ 4,184,394 $ 2,808,576 40% Supplies & Services $ 3,740,200 $ 2,488,165 $ 1,252,035 33% The Water Operating Fund is showing water sales greater than what we had anticipated due to the drier weather conditions as well as the water rate increase that was not included in the budget. The variable water costs are within 4% of was budgeted. Personnel costs as well as supplies & services are lower than anticipated based on the budget at this point in time. Personnel costs are due to budgeted positions that have not been filled and supplies & services are because of timing issues of as to when products are needed, ordered and received. The increased Net Loss is attributable to the reclassification of the monthly units from Ag Credit times the $.22 to cover the debt service on the 2008 Certificates of Participation (COP's) at the inception of water rate increase as of January 1, 2008. These monies have been placed in a restricted account and are only to be used to make the debt service payments. 0 • The Sewer Fund had a Net Loss for the tenth month of fiscal year 2007-2008 ending April 30, 2008 of $140,632. The key factors are outlined below: Yorba Linda Water District Monthly Financial Statement Analysis - Sewer Operating Fund For the Month Ending April 30, 2008 April, Y-T-D Y-T-D Budget 2008 Budget Budget Description FY 2007108 Actual Y-T-D Remaining Remaining Sewer Maintenance Charges $ 1,243,700 $ 994,114 $ (249,586) -20% Personnel Costs $ 694,130 $ 479,256 $ 214,874 31% Supplies & Services $ 336,600 $ 232,584 $ 104,016 31% The Sewer Maintenance Charges are pretty much right on target with the budget. The Personnel Costs as well as the Supplies & Services are slightly lower than anticipated by 15%. However, there aren't any significant material variances to report. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors reviews each quarter's financial statements. The financial statements for the quarter ending December 31, 2007 were received and filed on April 24, 2008. STAFF RECOMMENDATION: That the Committee recommend the Board of Directors receive and file the financial statements for the ninth and tenth months of fiscal year 2007-2008 ending March 31 and April 30, 2008, respectively. FUND 1 Schedule of Revenue & Expense 03 -31 -08 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D $ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ Operating Revenues: Metered water sales 16,789,370.00 14,654,489.43 2,134,880.57 13 Sewer maintenance charges 0.00 0.00 0.00 -100 Construction water sales 335,000.00 226,525.10 108,474.90 32 Irrigation sales 42,500.00 61,519.95 <19,019.95> -45 Other 12,830.00 73,260.69 <60,430.69> -471 Customer service fees 123,400.00 128,479.32 <5,079.32> -4 Rents and royalties 102,100.00 49,605.40 52,494.60 51 Outside District water sales 45,000.00 22,443.87 22,556.13 50 Unmetered water sales 6,000.00 7,277.61 <1,277.61> -21 Total Operating Revenues 17,456,200.00 15,223,601.37 2,232,598.63 13 Operating Expenses: Variable water costs 10,520,000.00 7,554,952.95 2,965,047.05 28 Personnel services 6,992,970.00 3,773,137.00 3,219,833.00 46 Depreciation 2,933,300.00 2,283,264.18 650,035.82 22 Supplies and services 3,740,200.00 2,238,305.44 1,501,894.56 40 Total Operating Expenses 24,186,470.00 15,849,659.57 8,336,810.43 34 Operating (Loss) <6,730,270.00> <626,058.20> <6,104,211.80> 91 0 J FUND 1 Schedule of Revenue & Expense 03 -31 -08 IChange in Net Assets: <4,451,470.00> 2,302,519.33 <955,162.03> 151 RUN DATE /TIME: 12:44:35 29 May 2008 REPORT ID: revexp07 • ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D % ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ Nonoperating Revenues: Property taxes - debt service 0.00 0.00 0.00 -100 Property taxes - operations 1,187,300.00 782,787.88 404,512.12 34 Interest income 65,000.00 603,786.19 <538,786.19> -829 Other revenue 440,500.00 450,821.58 <10,321.58> -2 Total Nonoperating Revenues 1,692,800.00 1,837,395.65 <144,595.65> -9 Nonoperating expenses: Interest expense 0.00 345,627.71 <345,627.71> -100 Security Vulnerability Exp 0.00 0.00 0.00 -100 Other expense 0.00 104,352.44 <104,352.44> -100 Total Nonoperating Expenses 0.00 449,980.15 <449,980.15> -100 Income (Loss) before Capital Contributions <5,037,470.00> 761,357.30 <5,798,827.30> 114 Capital Contributions 586,000.00 1,541,162.03 <955,162.03> -163 IChange in Net Assets: <4,451,470.00> 2,302,519.33 <955,162.03> 151 RUN DATE /TIME: 12:44:35 29 May 2008 REPORT ID: revexp07 • FUND 2 Schedule of Revenue & Expense 03 -31 -08 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D $ Operating Revenues: Metered water sales 0.00 0.00 0.00 -100 Sewer maintenance charges 1,240,600.00 902,167.34 338,432.66 27 Construction water sales 0.00 0.00 0.00 -100 Irrigation sales 0.00 0.00 0.00 -100 Other 3,100.00 2,441.45 658.55 21 Customer service fees 0.00 0.00 0.00 -100 Rents and royalties 0.00 0.00 0.00 -100 Outside District water sales 0.00 0.00 0.00 -100 Unmetered water sales 0.00 0.00 0.00 -100 Total Operating Revenues 1,243,700.00 904,608.79 339,091.21 27 Operating Expenses: Variable water costs 0.00 0.00 0.00 -100 Personnel services 694,130.00 430,624.78 263,505.22 38 Depreciation 444,500.00 380,456.29 64,043.71 14 Supplies and services 336,600.00 202,402.73 134,197.27 40 Total Operating Expenses 1,475,230.00 1,013,483.80 461,746.20 31 Operating (Loss) <231,530.00> <108,875.01> <122,654.99> 53 s • FUND 2 Schedule of Revenue & Expense 03 -31 -08 Capital Contributions 249,500.00 Change in Net Assets: 105,070.00 RUN DATE /TIME: 12:44:35 29 May 2008 REPORT ID: revexp07 74,808.90 <21,919.00> 174,691.10 70 174,691.10 120 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D $ Nonoperating Revenues: Property taxes - debt service 0.00 0.00 0.00 -100 Property taxes - operations 65,100.00 0.00 65,100.00 100 Interest income 17,000.00 10,939.31 6,060.69 36 Other revenue 51000.00 1,476.87 3,523.13 70 Total Nonoperating Revenues 87,100.00 12,416.18 74,683.82 86 Nonoperating expenses: • Interest expense 0.00 0.00 0.00 -100 Security Vulnerability Exp 0.00 0.00 0.00 -100 Other expense 0.00 269.07 <269.07> -100 Total Nonoperating Expenses 0.00 269.07 <269.07> -100 Income (Loss) before Capital Contributions <144,430.00> <96,727.90> <47,702.10> 33 Capital Contributions 249,500.00 Change in Net Assets: 105,070.00 RUN DATE /TIME: 12:44:35 29 May 2008 REPORT ID: revexp07 74,808.90 <21,919.00> 174,691.10 70 174,691.10 120 FUND 1 Schedule of Revenue & Expense 04 -30 -08 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D % Operating Revenues: Metered water sales 16,789,370.00 15,457,516.03 1,331,853.97 8 Sewer maintenance charges 0.00 0.00 0.00 -100 Construction water sales 335,000.00 250,515.30 84,484.70 25 Irrigation sales 42,500.00 63,363.04 <20,863.04> -49 Other 12,830.00 97,057.88 <84,227.88> -656 Customer service fees 123,400.00 135,861.16 <12,461.16> -10 Rents and royalties 102,100.00 49,605.40 52,494.60 51 Outside District water sales 45,000.00 25,356.79 19,643.21 44 Unmetered water sales 6,000.00 8,296.31 <2,296.31> -38 Total Operating Revenues 17,456,200.00 16,087,571.91 1,368,628.09 8 Operating Expenses: Variable water costs 10,520,000.00 8,467,317.00 2,052,683.00 20 Personnel services 6,992,970.00 4,184,393.74 2,808,576.26 40 Depreciation 2,933,300.00 2,536,935.96 396,364.04 14 Supplies and services 3,740,200.00 2,488,164.76 1,252,035.24 33 Total Operating Expenses 24,186,470.00 17,676,811.46 6,509,658.54 27 Operating (Loss) <6,730,270.00> <1,589,239.55> <5,141,030.45> 76 • E FUND 1 Schedule of Revenue & Expense 04 -30 -08 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D $ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ Nonoperating Revenues: Property taxes - debt service 0.00 0.00 0.00 -100 Property taxes - operations 1,187,300.00 1,181,762.27 5,537.73 0 Interest income 65,000.00 676,780.91 <611,780.91> -941 Other revenue 440,500.00 493,122.73 <52,622.73> -12 Total Nonoperating Revenues 1,692,800.00 2,351,665.91 <658,865.91> -39 Nonoperating expenses: • Interest expense 0.00 536,666.60 <536,666.60> -100 Security Vulnerability Exp 0.00 0.00 0.00 -100 Other expense 0.00 109,585.56 <109,585.56> -100 Total Nonoperating Expenses 0.00 646,252.16 <646,252.16> -100 Income (Loss) before Capital Contributions <5,037,470.00> 116,174.20 <5,153,644.20> 101 Capital Contributions 586,000.00 3,440,340.22 <2,854,340.22> -487 Change in Net Assets: <4,451,470.00> 3,556,514.42 <2,854,340.22> 179 RUN DATE /TIME: 17:42:19 02 Jun 2008 REPORT ID: revexp07 E Operating Revenues: Metered water sales Sewer maintenance charges Construction water sales Irrigation sales Other Customer service fees Rents and royalties Outside District water sales Unmetered water sales Total Operating Revenues Operating Expenses: Variable water costs Personnel services Depreciation Supplies and services Total Operating Expenses Operating (Loss) FUND 2 Schedule of Revenue & Expense 04 -30 -08 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D $ 0.00 0.00 0.00 -100 1,240,600.00 991,411.64 249,188.36 20 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 3,100.00 2,702.45 397.55 13 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 1,243,700.00 994,114.09 249,585.91 20 0.00 0.00 0.00 -100 694,130.00 479,256.16 214,873.84 31 444,500.00 422,906.30 21,593.70 5 336,600.00 232,583.81 104,016.19 31 1,475,230.00 1,134,746.27 340,483.73 23 <231,530.00> <140,632.18> <90,897.82> 39 s E FUND 2 Schedule of Revenue & Expense 04 -30 -08 S ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D $ Nonoperating Revenues: Property taxes - debt service 0.00 0.00 0.00 -100 Property taxes - operations 65,100.00 0.00 65,100.00 100 Interest income 17,000.00 11,144.37 5,855.63 34 Other revenue 5,000.00 1,525.44 3,474.56 69 Total Nonoperating Revenues 87,100.00 12,669.81 74,430.19 85 Nonoperating expenses: Interest expense 0.00 0.00 0.00 -100 Security Vulnerability Exp 0.00 0.00 0.00 -100 Other expense 0.00 281.82 <281.82> -100 Total Nonoperating Expenses 0.00 281.82 <281.82> -100 Income (Loss) before Capital Contributions <144,430.00> <128,244.19> <16,185.81> 11 Capital Contributions 249,500.00 1,466,820.90 <1,217,320.90> -488 Change in Net Assets: 105,070.00 1,338,576.71 <1,217,320.90> -1174 RUN DATE /TIME: 17:42:19 02 Jun 2008 REPORT ID: revexp07 S • • ITEM NO. 7- I REPORT Committee Meeting Date: June 10, 2008 To: Finance-Accounting Committee From: Michael A. Payne, General Manager Staff Contact: Diane Cyganik, Finance Director Sandi Van Etten, Senior Accountant Reviewed by General Counsel: N/A Budgeted: N/A Total Budget: N/A Funding Source: N/A CEQA Account No: Job No: Compliance: N/A Estimated Costs: N/A Dept: Bus Subject: Investment Report for April 2008 SUMMARY: Government Code Section 53607, et, seq., requires the person delegated to invest funds to make a quarterly report of the investments to the legislative body. DISCUSSION: I am submitting the April 2008 monthly investment report for your information. I will submit a formal report of the investments for Board action for the quarter ending June 30, 2008 upon approval of all of the Investment Reports. Below is a chart summarizing the yields as well as terms and maturities for the month of April 2008: Avg. Avg. Portfolio Portfolio # of Avg. Term Month Yield With Out Yield With Days to of Portfolio in of 2008 Wells Capital Wells Capital Maturity Days April 2.11% 2.37% 49 14 Below is a chart comparing operating fund interest for current and prior fiscal years: Actual Interest 04/30/07 04/30/08 Monthly, Operating Fund $ 16,667 $ 250 Year-to-Date, Operating Fund $171,307 $27,518 Budget 2006/2007 2007/2008 Interest Budget, Operating Fund, April YTD $277,892 $71,667 Interest Budget, Operating Fund, annual $333,470 $86,000 Interest earned on investments is recorded in the Fund that owns the investment. • • Investment Summary Comparison The distribution of investments in the portfolio both in dollars and as a percentage of the total portfolio by funds is as follows: Fund Description 04/30/08 Annexation Fund $ 10,784,192 18.39% Water Fund -2,206,089 -3.76% Water R&R Operating Reserve 2,000,000 3.41% Restricted for 2008 Debt Service 482,082 0.82% 2003 Bond Fund 6 0.00% 2008 Bond Fund 32,868,399 56.04% Sewer Fund 1,222,927 2.08% Sewer R&R Operating Reserve 119,136 0.20% Imp. Dist. No. 1 4,068,239 6.94% Imp. Dist. No. 2 9.315.439 15.88% 58.654.331 100.00% PRIOR RELEVANT BOARD ACTION(S): Monthly Investment reports are presented to the Finance-Accounting Committee on a regular basis. Quarterly Investment Reports are presented to the Board of Directors. The Investment Report for the Quarter Ending December 31, 2007 was received and filed on February 28, 2008. STAFF RECOMMENDATION: That the Finance-Accounting Committee receive and file the report. • Market % Value Cost of Total Cash & Checking Accounts: $ 345,788 $ 345,788 1,200 1,200 $ 346,988 $ 346,988 0.59% Money Market Accounts: $ 835,831 $ 835,831 217,439 217,439 $ 1,053,270 $ 1,053,270 1.80% $ 1,400,258 $ 1,400,258 2.39% California Asset Mgmt. Program: Wells Fargo Bank Imprest Cash Total • Wells Fargo Money Market Wells Fargo MM/Annexation Total Sub-total Percent Investment Maturity Yield Date Date N/A 0.00% 0.70% N/A 0.70% 0.70% 0.53% $ 6,554,573 $ 6,554,573 11.18% California Asset Mgmt. Program 2.96% Money Market Account: $ 32,868,399 $ 32,868,399 US Bank 2008 Revenue Bond 2.01% 6 6 US Bank 2003 Revenue Bond 2.01% $ 32,868,405 $ 32,868,405 56.06% 2.01% $ 40,823,236 $ 40,823,236 69.63% Sub Total Investments 2.11% Individual Management Account: $ 17,794,845 $ 17,805,167 30.37% Wells Capital Management 2.96% $ 58,618,081 $ 58,628,403 100% Total Investments 2.37% N/A N/A N/A 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. Yorba Linda Water District Investment Portfolio Report April 30, 2008 Institution Sandi Van Etten, Senior Accountant 4/30/2008 • • ITEM NO. Account Overview Yorba Linda Water District Account #18611500 Funding Date: 10/25/2005 Portfolio Statistics as of. 5/31/2008 Account Characteristics: Portfolio Yield to Maturity 2.87% Total Unrealized Gains/(Losses) - Current: (4,474) Total Net Realized Gains/(Losses) - Since Inception: 496 Total Long-Term Investments: - Total Short Duration Investments/Money Market Secs: 16,741,764 Total Market Value: 16,741,764 Total Number of Issues in the Portfolio: 13 MARKET DATA Overnight Fed Funds Rate: 2.00% 6-Month T-Bill Yield: 2.01% 12-Month T-Note Yield: 2.25% WELLS CAPITAL MANAGEMENT Holdings Report Yorba Linda Water District 498,969 18611500 Days Duration Market Price Securities Held as of. 5/31/08 on a Trade Date Basis to Eff Value + Accrued Percentage of Purchase Maturity Identifier Credit Ratings Par Value Security Description Coupon Final Effective 498,969 498,969 2.98% Maturity Maturity Moody's S &P Fitch 10,204.647 10,224,746 60.95% 2.52% I. Cash & Cash Equivalents (Original maturity of 90 days or less) 150 11,701,264 11,721,363 Cash 2.52% 109 0.14 U.S. DOLLARS (0) PENDING CASH (0) Money Mkt Securities Agency Discount Note Commercial Paper 1247P2G16 P1 A -1+ NR 500,000 CAFCO LLC 0.000 07/01/08 07/01/08 29865LG91 P1 A -1+ NR 500,000 EUREKA SECURITIZATION CPDN 0.000 07/09/08 07/09/08 82124LG14 P1 A -1+ NR 500,000 SHEFFIELD RECEIABLES CPDN 0.000 07/01/08 07/01/08 Money Market Fund VP7000038 NR NR NR 10,204,647 WF ADV MONEY MKT TR #645 2.524 06/01/08 Cash & Cash Equivalents Total 11,704,647 II. Marketable Securities (Original maturity greater than 90 days) IIA: Short Term Securities (Remaining maturity of less than 365 days) Corporate Securities Corporate Obligation 38141 EKG3 Aa3 AA- AA- 700,000 GOLDMAN SACHS GROUP INC 3.013 07/29/08 07/29/08 40429CCU4 Aa3 AA- AA- 400,000 HSBC FINANCE CORPORATION 2.930 09/15108 09/15/08 59018YVZ1 Al A+ A+ 700.000 MERRILL LYNCH & CO 2.748 08/22/08 08122/08 617446A82 Aa3 AA- AA- 650,000 MORGAN STANLEY 2.491 11/21/08 11/21/08 7591 EPAB6 A2 A A+ 450,000 REGIONS FINANCIAL CORPORA- 2.838 08/08/08 08/08/08 929903AQ5 Aa3 AA- AA- 700,000 WACHOVIA CORP 2.949 10/28/08 10/28/08 3,600,000 Govt Securities Gov Agncy Obligation Money Mkt Securities Agency Discount Note 31358BYRO AGY AGY AGY 1,450,000 FNMA Commercial Paper Short Term Securities Total 5,050,000 IIB: Long -Term Securities (Remaining maturity greater than 365 days) Corporate Securities Corporate Obligation Long Term Securities Total 0 0 0.00 (0) (0) 0.00% 0.00% 0 0 0.00% 0.00% 31 0.09 Yorba Linda Water District 498,969 18611500 Days Duration Market Price Market Market Value Holdings as YTM at to Eff Value + Accrued Percentage of Purchase Maturity Interest Account or Reset 0 0.00 (0) (0) 0.00% 0.00% 0 0 0.00% 0.00% 31 0.09 99.794 498,969 498,969 2.98% 107 39 0.11 99.736 498,679 498.679 2.98% 0.19 31 0.09 99.794 498,969 498,969 2.98% 3.01% 1 0.00 100.000 10,204.647 10,224,746 60.95% 2.52% 1 0.00 150 11,701,264 11,721,363 60.95% 2.52% 59 0.17 99.969 699,782 701,715 107 0.04 99.626 398,503 400,977 83 0.19 99.753 698,270 698,804 174 0.06 99.654 647,752 648,246 69 0.19 99.861 449,372 450,224 150 0.16 99.836 698,851 700.686 109 0.14 3,592,530 3,600,652 4.18% 3.01% 2.38% 2.93% 4.17% 2.75% 3.87% 2.49% 2.68% 2.84% 4.17% 2.95% 21.46% 2.82% • 0.000 06/27108 06/27/08 27 0.08 99.860 1,447.970 1,447,970 8.65% 5.26% 85 0.12 5,040,500 5,048,622 30.11% 3.52% 0 0.00 0 0 0.00% 0.00% Holdings Report Securities Held as of 5/31/08 on a Trade Date Basis Identifier Credit Ratings Par Value Moody's S&P Fitch Marketable Securities Total 5,050,000 16,754,647 Security Description Coupon Final Effective Days Maturity Maturity to Eff Maturity 85 29 • • Yorba Linda Water District 18611500 Duration Market Price Market Market Value Holdings as YTM at Value + Accrued Percentage of Purchase _ Interest Account or Reset 0.12 5,040,500 5,048,622 30.11% 3.52% 0.05 16,741,764 16,769,985 100.00% 2.87 %, • • Portfolio Summary Report Yorha Linda Water District For the period : 05/01/08 to 05/31/08 18611500 Portfolio Characteristics Portfolio Breakdown Market Value: 16,741,763.66 Market Value % of Account Unrealized G /L: (4,473.66) Agency Discount Note 1,447,970.00 8.65% Commercial Paper 1,496,617.09 8.94% Yield To Maturity: 2.87% Corporate Obligation 3,592,529.60 21.46% Portfolio Duration: 0.05 Years Money Market Fund 10,204,646.93 60.95% Pending_Cash 0.04 0.00% Avg. Days to Maturity: 29 Total 16,741,763.66 100.00% Avg. Portfolio Credit Quality: Aa1 Market Data 05/31/08 04/30/08 Yields. 6 Month Treasury Bill: 2.01% 1.64% 2 Year Treasury Note: 2.63% 2.26% 5 Year Treasury Note: 3.40% 3.03% Fed Funds Target: 2.00% 2.00% Credit Quality* Effective Maturity Distribution 0.7o -- P1 /MIG1/VMIG1 /A -1 8.9% 0.60 Aaa /AAA 8.6% Aa /AA 14.6% 0.50 A/A 6.9% Baa /BBB 0.0% 0.40 - Other 0.0% Cash /Overnights 61.0% oso - Not Rated 0.0% 100.0% 0.20 ` Moody's Ratings - Primary 0.10 S&P Ratings - Secondary Fitch Ratings - Tertiary 0.00 o/n 2 to 90 91 to 180 181 to 1 year 1 to 2 years > 2 years The above information is an estimate of certain investment calculations and does not represent your audited statement of record. • • r, • • YORBA LINDA WATER DISTRICT Statement of Cash Flows/Earnings for May 2008 I - Beginning Period Balances As of 4/30/2008 Total Original Cost 17,745,944 + Net Amort/Accr to Date 59,224 =Adjusted Book Value: 17,805,167 + Accrued Interest Receivable 36,250 + Unrealized Gain/(Loss) (10,323) = Total Market Value Plus Accrued Interest 17,831,094 11: Period Income Earned + Ending Accrual 28,222 - Begininning Accrual (36,250) + Interest Received 38,180 - Interest Paid at Purchase - + Interest Received at Sale - = Interest Earned in Period 30,1521 + (Amort)/Accr This Period 11,929 = Monthly Portfolio Income $ 42,0811 + Contributions - - Withdrawals (1,106,001) + Realized Gain/(Loss) - - Fees Paid This Period (3,038) - Prior Period Unrealized Gain/Loss (10,323) + End Of Period Unrealized Gain/Loss (4,474) + Net Receipts/Deliveries in Kind 0.00 + Adjustments 0.00 = Net Change to the Portfolio 1 (1,091,260) 1 =Total Market Value Plus Accrued Interest 16,769,986 III: End of Period Balances As of 5/31/2008 Total Original Cost 16,678,747 + Net Amort/Accr to Date 67,490 = Adjusted Book Value 16,746,237 + Accrued Interest Receivable 28,222 + Unrealized Gain/(Loss) (4,474) = Total Market Value Plus Accrued Interest 16,769,986 Reconciliation Difference: (0) Wells Capital Management