HomeMy WebLinkAbout2008-12-10 - Finance-Accounting Committee Meeting Agenda Packet0 EYorba Linda
Water District
FINANCE - ACCOUNTING COMMITTEE MEETING
Wednesday, December 10, 2008, 4:00 p.m.
1717 E. Miraloma Avenue, Placentia - Tel: (714) 701-3020
AGENDA
COMMITTEE STAFF
Director Michael J. Beverage, Chair Michael A. Payne, General Manager
Director John W. Summerfield Ken Vecchiarelli, Assistant General Manager
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.
is ACTION ITEMS
This portion of the agenda is for items where staff presentations and committee discussions are needed prior to
formal committee action.
None.
U
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.
Investment Report ending October 31, 2008.
2. Monthly Portfolio Report ending November 30, 2008. Report by Keith Khorey, Wells
Capital Management.
3. Monthly Financial Statements for the Period ending September 30, 2008.
4. Wells Fargo Checking Account - Analysis Based vs. ZBA.
5. Overview of Property Taxes.
6. CalPERS Investment Return Impact on Employer Rates.
OR G \A_
ADJOURNMENT
The next regularly scheduled meeting of the Finance-Accounting Committee will be held
January 13, 2008 at 4:00 p.m.
Items Distributed to the Committee Less Than 72 Hours Prior to the Meetinq
Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items
and are distributed to 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 Michael A. Payne, General Manager, 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.
U
•
2
ITEM NO. C_
AGENDA REPORT
• Committee Meeting Date: December 10, 2008
To: Finance-Accounting Committee
From: Ken Vecchiarelli, Assistant 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 October 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 October 2008 monthly investment report for your information. I will submit a
. formal report of the investments for Board action for the quarter ending December 31, 2008
upon approval of the Investment Report.
Below is a chart summarizing the yields as well as terms and maturities for the month of
October 2008:
Avg.
Avg. Portfolio
Portfolio
# of
Avg. Term
Month Yield Without
Yield With
Days to
of
Portfolio in
of 2008 Wells Capital
Wells Capital
Maturity
Days
October 1.40%
1.80%
70
22
Below is a chart comparing operating fund interest for current and prior fiscal years:
Actual Interest
Monthly, Operating Fund
Year-to-Date, Operating Fund
10/31/07 10/31/08
$ 5,004 $ 1,140
$17,792 $ 3,065
Budget 2007/2008 2008/2009
• Interest Budget, Operating Fund, October YTD $28,667 $21,500
Interest Budget, Operating Fund, annual $86,000 $64,500
Interest earned on investments is recorded in the Fund that owns the investment.
Investment Summary Comparison
is 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
Balance
10/31/08
Annexation
$9,466,432
18.71%
Water Operating
(3,839,336)
-7.59%
Water R&R
2,028,354
4.01%
Water-Capital Projects
149,500
0.30%
Restrict-Debt Service
600,073
1.19%
COP Bond 2003
0
0.00%
COP Bond 2008
26,629,549
52.63%
Sewer Operating
1,262,762
2.50%
Sewer R&R
230,031
0.45%
Sewer Capital Projects
186,849
0.36%
ID1
4,288,330
8.48%
ID2
9,593.797
18.96%
$50.596,341
100.00%
•
PRIOR RELEVANT BOARD ACTION(S):
These reports are presented to the Finance-Accounting Committee on a regular basis. Quarterly
Investment Reports are presented to the Board of Directors. The Investment Reports for the
quarter ending September 30, 2008 was received and filed by the Board of Directors on
November 26, 2008.
STAFF RECOMMENDATION:
That the Finance-Accounting Committee receive and file the report.
0
•
Market
%
Value
Cost
of Total
Cash & Checking Accounts:
$
742,467
$
742,467
1,200
1,200
$
743,667
$
743,667
1.47%
Money Market
Accounts:
$
105,352
$
105,352
72,798
72,798
$
178,150
$
178,150
0.35%
$
921,817
$
921,817
1.82%
Institution
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%
0.35% N/A
0.35%
0.35%
0.07%
California Asset Mgmt. Program:
$ 6,639,480 $ 6,639,480 13.13% California Asset Mgmt. Program 2.48%
Money Market Account:
• $ 26,629,549 $ 26,629,549 US Bank 2008 Revenue Bond 1.18%
0 0 US Bank 2003 Revenue Bond 0.00%
26,629,549 $ 26,629,549 52.67% 1.18%
$ 34,190,846 $ 34,190,846 67.62% Sub Total Investments 1.40%
Individual Management Account:
$ 16,384,520 $ 16,369,506 32.38% Wells Capital Management 2.62%
$ 50,575,366 $ 50,560,352 100% Total Investments 1.80%
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.
"dc; Ua u 646plt,
Sandi Van Etten, Senior Accountant
10/31/2008
Yorba Linda Water District
Investment Portfolio Report
October 31, 2008
1 40
ITEM NO.
~ 0 Account Overview
Yorba Linda Water District
Account #18611500
Funding Date:
Portfolio Statistics as of:
Account Characteristics:
Portfolio Yield to Maturity
Total Unrealized Gains/(Losses) - Current:
• Total Net Realized Gains/(Losses) - Since Inception:
Total Long-Term Investments:
Total Short Duration Investments/Money Market Secs:
Total Market Value:
Total Number of Issues in the Portfolio:
MARKET DATA
Overnight Fed Funds Rate:
6-Month T-Bill Yield:
12-Month T-Note Yield:
1 40
10/25/2005
11/30/2008
2.25%
47,120
496
16,452,762
16,452,762
11
1.00%
0.42%
0.82%
WELLS CAPITAL MANAGEMENT
Portfjwummary Report
Yorba Rater District
For the period : 11 /01 /O8 to 11/30/08 18611500
Portfolio Characteristics
7.0%
Aaa /AAA
Portfolio Breakdown
Aa /AA
0.0%
Market Value:
16,452,762.06
Baa /BBB
0.0%
Market Value
% of Account
Unrealized G /L:
47,120.43
Not Rated
Agency Discount Note
6,452,360.00
39.22%
Yield To Maturity:
2.25%
Commercial Paper
1,144,726.31
6.96%
Money Market Fund
8,855,675.68
53.82%
Portfolio Duration:
0.24 Years
Pending_Cash
0.07
0.00%
Avg. Days to Maturity:
88
Total
16,452,762.06
100.00%
Avg. Portfolio Credit Quality:
Aaa
Market Data
11/30/08
10/31/08
Yields.
6 Month Treasury Bill:
0.42%
0.95%
2 Year Treasury Note:
0.98%
1.55%
5 Year Treasury Note:
1.91%
2.83%
Fed Funds Target:
1.00%
1.00%
Credit Quality*
Effective Maturity Distribution
0.60
P1 /MIG1/VMIG1 /A -1
7.0%
Aaa /AAA
39.2% 0.50
Aa /AA
0.0%
A/A
0.0% 0.40
Baa /BBB
0.0%
Other
0.0% 0.30
Cash /Overnights
53.8%
Not Rated
0.0%
100.0% 0.20
0.10
" Moody's Ratings - Primary
S&P Ratings - Secondary
Fitch Ratings - Tertiary 0.00
oln 2 to 90 91 to 180
The above information is an estimate of certain investment calculations and does not represent your audited statement of record.
181 to 1 year 1 to 2 years > 2 years
YORBA LINDA WATER DISTRICT
Statement of Cash Flows/Earnings for November 2008
I - Beginning Period Balances
As of 10/31/2008
Total Original Cost
16,340,761
+ Net Amort/Accr to Date
28,745
=Adjusted Book Value:
16,369,506
+ Accrued Interest Receivable
20,975
+ Unrealized Gain/(Loss)
15,014
= Total Market Value Plus Accrued Interest
16,405,495
II: Period Income Earned
+ Ending Accrual
14,937
- Begininning Accrual
(20,975)
+ Interest Received
22,499
- Interest Paid at Purchase
-
+ Interest Received at Sale
-
= Interest Earned in Period
16,4611
+ (Amort)/Accr This Period
16,358
= Monthly Portfolio Income I $
32,8201
+ Contributions
-
•
-Withdrawals
li
i
/
L
+ R
d G
=
ze
n
(
oss)
ea
a
- Fees Paid This Period
(2,722)
- Prior Period Unrealized Gain/Loss
15,014
+ End Of Period Unrealized Gain/Loss
47,120
+ Net Receipts/Deliveries in Kind
0.00
+ Adjustments
0.00
= Net Change to the Portfolio
45,7431
=Total Market Value Plus Accrued
Interest
16,467,699
III: End of Period Balances As of 11/30/2008
Total Original Cost 16,369,409
+ Net Amort/Accr to Date 36,232
= Adjusted Book Value 16,405,642
+ Accrued Interest Receivable 14,937
+ Unrealized Gain/(Loss) 47,120
= Total Market Value Plus Accrued
Interest 16,467,699
Reconciliation Difference: (0)
Wells Capital Management
Holdin&port •
Securities Held as of 11/30/08 on a Trade Date Basis
Identifier Credit Ratings
Par Value Security Description
Coupon
Final
Maturity
Moody's S &P Fitch
I. Cash & Cash Equivalents (Original maturity
of 90 days or less)
Lijeater
District
Cash
U S. DOLLARS
(0) PENDING CASH
18611500
Effective
(0)
Duration
Market Price
Money Mkt Securities
Market Value
Holdings as
YTM at
Agency Discount Note
to Eff
Commercial Paper
+ Accrued
Percentage of
Purchase
Money Market Fund
Maturity
VP7000038 NR NR NR
8,855,676 WF ADV MONEY MKT TR #645
1.930
or Reset
Cash & Cash Equivalents Total
8,855,676
II. Marketable Securities (Original maturity greater than 90 days)
(0)
0.00%
IIA: Short Term Securities (Remaining maturity of less than 365 days)
0
Corporate Securities
0
0
Corporate Obligation
0.00%
12/01/08
1
Floating Rate
100.000
8,855,676
6,870,613
Govt Securities
1.93%
1
Gov Agncy Obligation
8,855,676
8,870,613
Money Mkt Securities
1.93%
10/07109
311
Agency Discount Note
98.670
986,700
986,700
313313MR6 AGY AGY AGY
1,000.000 FFCB
0.000
10/07/09
313385EP7 AGY AGY AGY
1,000,000 FHLB
0.000
04/20/09
313385JB3 AGY AGY AGY
800,000 FHLB
0.000
07/13/09
313385KS4 AGY AGY AGY
1,000.000 FHLB
0.000
08/21/09
313589FH1 AGY AGY AGY
700,000 FNMA
0.000
05/08/09
313589FVD AGY AGY AGY
1,000,000 FNMA
0.000
05/20/09
313589GE7 AGY AGY AGY
1.000,000 FNMA
0.000
05/29/09
Commercial Paper
99.520
696,640
696,640
06737HM55 P -1 A -1+ NR
500,000 BARCLAYS US FUNDING LLC
0.000
12/05/08
36161CSM5 P -1 A -1+ NR
450,000 GE CAPITAL TLGP
0.000
05/21/09
6323AONP9 P -1 A -1+ NR
200,000 NATEXIS BANQUES POP USF CPI
0.000
01/23/09
Short Term Securities Total
7,650,000
994,500
994,500
HEI: Long -Term Securities (Remaining maturity greater than 365 days)
2.91%
12/05/08
Corporate Securities
0.02
99.987
499,937
Marketable Securities Total
7,650,000
2.86%
05/21/09
172
16,505,676
98.965
445,340
The above information is an estimate of certain investment calculations and does not represent your audited statement of record. Page: 1 of 1
Yorba
Lijeater
District
18611500
Effective
Days
Duration
Market Price
Market
Market Value
Holdings as
YTM at
Maturity
to Eff
Value
+ Accrued
Percentage of
Purchase
Maturity
Interest
Account
or Reset
(0)
(0)
0.00%
0.00%
0
0.00
0
0
0.00%
0.00%
12/01/08
1
0.00
100.000
8,855,676
6,870,613
53.82%
1.93%
1
0.00
8,855,676
8,870,613
53.82%
1.93%
10/07109
311
0.85
98.670
986,700
986,700
6.00%
2.00%
04/20/09
141
0.39
99.610
996,100
996,100
6.05%
3.04%
07/13/09
225
0.62
99.190
793,520
793,520
4.82°%
2.99%
08/21/09
264
0.72
99.010
990,100
990,100
6.02%
3.02%
05/08/09
159
0.44
99.520
696,640
696,640
4.23%
2.98%
05/20/09
171
0.47
99.480
994,800
994,800
6.05%
1.75%
05/29/09
180
0.50
99.450
994,500
994,500
6.04%
2.91%
12/05/08
5
0.02
99.987
499,937
499,937
3.04°%
2.86%
05/21/09
172
0.47
98.965
445,340
445,340
2.71%
1.94%
01/23/09
54
0.15
99.725
199,449
199,449
1.21%
3.08%
189
0.52
7,597,086
7,597,086
46.18%
2.63%
189
0.52
7,597,086
7,597,086
46.18%
2.63%
88
0.24
16,452,762
16,467,699
100.00%
2.25%
The above information is an estimate of certain investment calculations and does not represent your audited statement of record. Page: 1 of 1
ITEM NO.
AGENDA REPORT
• Committee Meeting Date: December 10, 2008
To: Finance-Accounting Committee
From: Ken Vecchiarelli, Assistant General Manager
Staff Contact: Diane Cyganik, Finance Director
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: Monthly Financial Statements for the third month of fiscal year 2008-09 ending
September 30, 2008.
SUMMARY:
A presentation will be made of the Financial Statements for the third month of fiscal year 2008 -
09 ending September 30, 2008.
DISCUSSION:
The Water Fund had an Operating Loss for the third month of fiscal year 2008-09 ending
• September 30, 2008 of $1,684,753. The key factors are outlined below:
Yorba Linda Water District
Monthly Financial Statement Analysis - Water Operating Fund
For the Month Ending September 30, 2008
September
Y-T-D
Y-T-D
Budget
2008
Budget
Budget
Description
FY 2008/09
Actual Y-T-D
Remaining
Remaining
Total Water Sales
$
17,498,010
$
5,291,462
$
(12,206,548)
-70%
Total Variable Water Costs
$
11,156,500
$
3,811,427
$
7,345,073
66%
Personnel Costs
$
7,389,200
$
1,328,635
$
6,060,565
82%
Supplies & Services
$
3,773,100
$
1,035,724
$
2,737,376
73%
The Water Operating Fund reflects water sales greater than what was anticipated due to the
water rate increase that was not included in the budget. However, even though the sales are
higher, water consumption is less than last year by 5%.The variable water costs are 9% higher
than budget because of rate increases from MWDOC and OCWD plus higher energy costs.
Personnel Costs are lower than anticipated due to budgeted positions that have not been filled.
Supplies & Services are approximately 2% higher than budget as of September 30, 2008. The
larger items comprising the variance include: Insurance (ACWA property liability for FY
2008/2009 of $244,389) and Communications for Public Relations Services of $17,320 for July
• - August 2008.
The Sewer Fund had an Operating Loss for the third month of fiscal year 2008-09 ending
September 30, 2008 of $81,497. The key factors are outlined below:
• Yorba Linda Water District
Monthly Financial Statement Analysis - Sewer Operating Fund
For the Month Ending September 30, 2008
Description
Sewer Maintenance Charges
Personnel Costs
Supplies & Services
September
Y-T-D
Y-T-D
Budget
2008
Budget
Budget
FY 2008109
Actual Y-T-D
Remaining
Remaining
$ 1,249,850
$ 296,073
$ (953,777)
-76%
$ 730,800
$ 152,569
$ 578,231
79%
$ 339,600
$ 90,896
$ 248,704
73%
The Sewer Maintenance Charges are pretty much right on target as to what was budgeted for at
this point in time. The Personnel Costs are slightly lower than anticipated by 4% due to existing
vacant positions in the Water Fund. The Personnel Costs are impacted by the Water Fund
positions because of the 9% allocation of water overhead expenses to the Sewer Fund. The
Supplies & Services are 2% higher than budget, a large portion attributable to Contractual
Services for the trenchless sewer lining of $19,804.
PRIOR RELEVANT BOARD ACTION(S):
The Board of Directors reviews each quarter's financial statements. The audited financial
statements for the fiscal year ended June 30, 2008 were received and filed on October 28,
• 2008.
STAFF RECOMMENDATION:
That the Committee recommend the Board of Directors receive and file the financial statements
for the third month of fiscal year 2008-09 ending September 30, 2008.
0
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
To: "Restricted for Debt Serv"
Total Operating Revenues
Operating Expenses:
Variable water costs
Personnel services
Depreciation
Supplies and services
Total Operating Expenses
Operating (Loss)
17,040,410.00
6,026,112.13
11,014,297.87
65
FUND 1
0.00
0.00
Schedule of Revenue & Expense
355,000.00
110,245.77
09 -30 -08
69
45,600.00
ANNUAL CURR YR VARIANCE VAR
21,777.01
48
BUDGET Y -T -D Y -T -D
15,467.53
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
To: "Restricted for Debt Serv"
Total Operating Revenues
Operating Expenses:
Variable water costs
Personnel services
Depreciation
Supplies and services
Total Operating Expenses
Operating (Loss)
17,040,410.00
6,026,112.13
11,014,297.87
65
0.00
0.00
0.00
-100
355,000.00
110,245.77
244,754.23
69
45,600.00
23,822.99
21,777.01
48
13,490.00
15,467.53
<1,977.53>
-15
124,600.00
52,680.50
71,919.50
58
99,100.00
4,556.16
94,543.84
95
50,000.00
11,633.79
38,366.21
77
7,000.00
2,755.50
4,244.50
61
0.00
<883,108.00>
883,108.00
-100
17,735,200.00
5,364,166.37
12,371,033.63
70
11,156,500.00
3,811,427.16
7,345,072.84
66
7,389,200.00
1,328,635.41
6,060,564.59
82
0.00
873,132.75
<873,132.75>
-100
3,773,100.00
1,035,723.59
2,737,376.41
73
22,318,800.00
7,048,918.91
15,269,881.09
68
<4,583,600.00>
<1,684,752.54>
<2,898,847.46>
63
•
•
•
F
Schedule
of Revenue & Expense
09 -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
1,200,150.00
46,015.38
1,154,134.62
96
Interest income
47,500.00
132,345.67
<84,845.67>
-179
Other revenue
449,200.00
141,515.28
307,684.72
68
Rev Restricted for Debt Sery
0.00
883,108.00
<883,108.00>
-100
Total Nonoperating Revenues
1,696,850.00
1,202,984.33
493,865.67
29
Nonoperating expenses:
Interest expense
0.00
573,116.72
<573,116.72>
-100
Security Vulnerability Exp
0.00
0.00
0.00
-100
Other expense
0.00
23,236.60
<23,236.60>
-100
Total Nonoperating Expenses
0.00
596,353.32
<596,353.32>
-100
Income (Loss) before
Capital Contributions
<2,886,750.00>
<1,078,121.53>
<1,808,628.47>
63
Capital Contributions
667,100.00
258,712.00
408,388.00
61
Change in Net Assets:
<2,219,650.00>
<819,409.53>
408,388.00
63
RUN DATE /TIME: 12:41:22 25 Nov 2008
REPORT ID: revexp07
FUND
Schedule of Revenue & Expense
09 -30 -08
ANNUAL CURR YR VARIANCE VAR
BUDGET Y -T -D Y -T -D o
Operating Revenues:
Metered water sales
0.00
0.00
0.00
-100
Sewer maintenance charges
1,246,550.00
295,290.19
951,259.81
76
Construction water sales
0.00
0.00
0.00
-100
irrigation sales
0.00
0.00
0.00
-100
Other
3,300.00
783.00
2,517.00
76
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
To: "Restricted for Debt Serv"
0.00
0.00
0.00
-100
Total Operating Revenues
1,249,850.00
296,073.19
953,776.81
76
Operating Expenses:
Variable water costs
0.00
0.00
0.00
-100
Personnel services
730,800.00
152,568.56
578,231.44
79
Depreciation
0.00
134,105.55
<134,105.55>
-100
Supplies and services
339,600.00
90,896.29
248,703.71
73
Total Operating Expenses
1,070,400.00
377,570.40
692,829.60
65
Operating (Loss)
179,450.00
<81,497.21>
260,947.21
144
•
•
FUND
Schedule
of Revenue & Expense
09 -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
66,000.00
0.00
66,000.00
100
Interest income
17,000.00
2,575.87
14,424.13
85
Other revenue
5,000.00
1,291.07
3,708.93
74
Rev Restricted for Debt Sery
0.00
0.00
0.00
-100
Total Nonoperating Revenues
88,000.00
3,866.94
84,133.06
96
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
323.04
<323.04>
-100
Total Nonoperating Expenses
0.00
323.04
<323.04>
-100
Income (Loss) before
Capital Contributions
267,450.00
<77,953.31>
345,403.31
128
Capital Contributions
251,000.00
202,352.00
48,648.00
19
Change in Net Assets:
518,450.00
124,398.69
48,648.00
76
RUN DATE /TIME: 12:41:35 25 Nov 2008
REPORT ID: revexp07
•
4,466.13
<1,176.13>
-36
0.00
•
<33.00>
Yorba Linda Water District (D3)
10,200.00
11,001.40
<801.40>
-8
Schedule
of Combined Revenue
<2,010.53>
-15
1,141,650.00
294,671.59
846,978.41
09 -30 -08
0.00
0.00
0.00
-100
ANNUAL
CURR YR
VARIANCE
VAR
0.00
0.00
BUDGET
Y -T -D
Y -T -D
%
2,550.00
OPERATING REVENUE
1,249,850.00
-------------------------------------
953,809.81
--------------------------
75,000.00
WATER SALES
35,916.00
48
49,600.00
13,596.50
36,003.50
Residential Water
12,983,902.00
4,469,442.49
8,514,459.51
66
99,100.00
Combined Demand
7,158.00
2,229.14
4,928.86
69
13,324,810.44
Commercial
1,191,790.00
393,428.86
798,361.14
67
Fire Detector
150,000.00
29,896.26
120,103.74
80
Landscape Water
2,700,850.00
1,123,007.88
1,577,842.12
58
Irrigation
45,600.00
23,822.99
21,777.01
48
Other Water Sales
418,710.00
132,742.56
285,967.44
68
To: "Restricted for Debt Serv"
0.00
<883,108.00>
883,108.00
-100
Total
17,498,010.00
5,291,462.18
12,206,547.82
70
OTHER
Damages /Relocation
Miscellaneous Billing
Other
Total
SEWER MAINTENANCE CHARGES
Sewer Rate Charge
City Maintenance Charge
Maintenance Assesement
F.O.G. fees
Collection Fees - Placentia
Total
CUSTOMER SERVICE CHARGES
Customer Service Charges
Back Flow Charges
Total
Rents & Royalties
Total Operating Revenue
3,290.00
4,466.13
<1,176.13>
-36
0.00
33.00
<33.00>
-100
10,200.00
11,001.40
<801.40>
-8
13,490.00
15,500.53
<2,010.53>
-15
1,141,650.00
294,671.59
846,978.41
74
0.00
0.00
0.00
-100
104,900.00
618.60
104,281.40
99
0.00
0.00
0.00
-100
3,300.00
750.00
2,550.00
77
1,249,850.00
296,040.19
953,809.81
76
75,000.00
39,084.00
35,916.00
48
49,600.00
13,596.50
36,003.50
73
124,600.00
52,680.50
71,919.50
58
99,100.00
4,556.16
94,543.84
95
18,985,050.00
5,660,239.56
13,324,810.44
70
•
•
•
Yorba Linda Water�istrict (D3)
Schedule
of Combined
Revenue
09 -30 -08
ANNUAL
CURR YR
VARIANCE
VAR
BUDGET
Y -T -D
Y -T -D
o
NON - OPERATING REVENUE
----------------------------------
-------------------------
Taxes & Assesements
1,266,150.00
47,521.93
1,218,628.07
96
Interest
64,500.00
195,801.93
<131,301.93>
-204
Other Revenue
454,200.00
169,477.86
284,722.14
63
Rev Restricted for Debt Sery
0.00
883,108.00
<883,108.00>
-100
Total
1,784,850.00
1,295,909.72
488,940.28
27
TOTAL REVENUE
20,769,900.00
6,956,149.28
13,813,750.72
67
RUN DATE /TIME: 12:42:00 25 Nov 2008
REPORT ID: comrev07
• •
•
Yorba Linda Water District (D3)
Schedule of Combined Expenses
09 -30 -08
ANNUAL CURR YR VARIANCE VAR
BUDGET Y -T -D Y -T -D %
PERSONNEL SERVICES
Salaries Unit
3,659,726.00
719,551.26
2,940,174.74
80
Salaries SC
1,155,506.00
179,651.29
975,854.71
84
Salaries Management
783,641.00
170,491.89
613,149.11
78
Salaries Other
0.00
0.00
0.00
-100
Fees Directors
61,740.00
10,803.35
50,936.65
83
Fringe Benefits Unit
1,661,921.00
262,110.09
1,399,810.91
84
Fringe Benefits SC
381,188.00
57,200.87
323,987.13
85
Fringe Benefits Management
229,858.00
43,464.30
186,393.70
81
Fringe Benefits Directors
29,674.00
6,219.54
23,454.46
79
Fringe Benefits Other
156,746.00
31,711.38
125,034.62
80
Total Personnel Services
8,120,000.00
1,481,203.97
6,638,796.03
82
Depreciation
0.00
1,007,238.30
<1,007,238.30>
-100
Total Depreciation
0.00
1,007,238.30
<1,007,238.30>
-100
SUPPLIES & SERVICES
AMP Lease
0.00
0.00
0.00
-100
Communications
274,235.00
44,547.68
229,687.32
84
Contractual Services
879,835.00
206,596.71
673,238.29
77
Data Services
307,844.00
24,301.93
283,542.07
92
Dues & Memberships
34,430.00
1,527.43
32,902.57
96
Election Expense
43,600.00
0.00
43,600.00
100
Fees & Permits
48,636.00
8,162.96
40,473.04
83
Insurance
331,305.00
243,993.45
87,311.55
26
Legal /Settlement Agreements
0.00
0.00
0.00
-100
Maintenance
673,950.00
286,588.24
387,361.76
57
Non Capitol Equipment
228,845.00
36,618.30
192,226.70
84
Office Expense
66,135.00
13,132.50
53,002.50
80
Rental Lease
0.00
0.00
0.00
-100
Professional Services
678,025.00
128,655.90
549,369.10
81
Training
95,535.00
6,002.85
89,532.15
94
Travel & Conferences
64,685.00
2,122.92
62,562.08
97
Uncollectible Accounts
21,255.00
0.00
21,255.00
100
Collection Agency Fee
11090.00
0.00
11090.00
100
Utilities
69,675.00
7,798.02
61,876.98
89
Vehicle
293,620.00
116,570.99
177,049.01
60
Job Closing Expenses
0.00
0.00
0.00
-100
Unbudgeted Expenses
0.00
0.00
0.00
-100
• Yorba Linda Water D3.strict (D3) •
Schedule of Combined Expenses
09 -30 -08
ANNUAL CURR YR VARIANCE VAR
BUDGET Y -T -D Y -T -D %
-----------------------------
Total Services & supplies 4,112,700.00 1,126,619.88 2,986,080.12 73
Yorba Linda Water District (D3)
Schedule
of Combined Expenses
09 -30 -08
ANNUAL
CURR YR
VARIANCE
VAR
BUDGET
Y -T -D
Y -T -D
VARIABLE WATER COSTS
Fuel & Power Pumping
1,350,000.00
545,543.82
804,456.18
60
Ground Water Replenishment
3,706,500.00
1,151,002.52
2,555,497.48
69
Purchased Water
6,100,000.00
2,024,413.15
4,075,586.85
67
Readiness /Connection Charge
0.00
90,467.67
<90,467.67>
-100
Total Variable Water Costs
11,156,500.00
3,811,427.16
7,345,072.84
66
TOTAL OPERATING EXPENSE
23,389,200.00
7,426,489.31
15,962,710.69
68
NON - OPERATING EXPENSE
Other Expense
0.00
25,893.74
<25,893.74>
-100
955 Security Vulnerability
0.00
0.00
0.00
-100
Interest Exp on Long -term Debt
0.00
573,116.72
<573,116.72>
-100
Total Non - operating Expense
0.00
599,010.46
<599,010.46>
-100
Total Expenses
23,389,200.00
8,025,499.77
15,363,700.23
66
RUN DATE /TIME: 12:41:47 25 Nov 2008
REPORT ID: comexp07
ITEM NO.
Yorba Linda
Water District
Banking Services
December 1, 2008
Wells Fargo Bank, N.A.
Government Banking Division
707 Wilshire Blvd.
11th Floor/E2818-114
Los Angeles, CA 90017
YORBA LINDA WATER DISTRICT
~ecember 1, 2008
Diane Cyganik
Finance Manager
Yorba Linda Water District
1717 E. Miraloma Avenue
Placentia, CA 92885
Dear Diane:
It was good to talk to you the other day regarding managing the balances within the District's Wells
Fargo bank account. Although the District is not earning a hard dollar investment today, I am
including information on how the District's bank balances generate "soft dollar" credit to offset bank
fees. The fees are based on the account analysis services/ volumes and contract pricing that reflects
45% savings from Wells Fargo standard pricing.
CURRENT ACCOUNT STRUCTURE
•
Outgoing Domestic
Wires
Yorba Linda Water District
4159-413053
Chex5tor, Unencoded and Pre-
encoded Deposits, Reclear
Returned Items, Full Acct
Reconcilement with Positive Pay,
Checks Paid (258), WellsImage CD-
Rom, ACH Direct Deposit of
Payroll, ACH Direct Debit Program,
Electronic Consumer Collections,
CEO Reports - Intraday, Previous
Day, Return Item, Wire and ACH,
Merchant Services
Incoming Domestic
Wires
MONTHLY ACCOUNT ANALYSIS REPORTS:
The District receives a monthly account analysis statement that summarizes balance computations
and service charges and is designed flexibly to meet your account management needs. Account
analysis statements are available online via our Internet portal CEO and can be delivered in PDF,
ANSI 822 text file, CSV or Excel formats 7 business days after the end of the activity month.
Electronic delivery of your analysis statement is free of charge.
We recently launched Interactive Client Analysis Statements on CEO Statements and Notices. The
teractive statement will allow the District to electronically interact with your analysis data and
2
YORBA LINDA WATER DISTRICT
Vapability. rsonalize based upon your needs. Wells Fargo is the only bank in the marketplace with this
Features of the new service include:
■ Price changes and new charges are clearly identified
■ New customized views with drill down capability and flexible formatting
■ Statement data is now available for the current month plus 12 months prior
• Customers can compare current to previous month's balances, activity, and charges
■ Graphic representations of analysis data trends are available
We have shown an example of balance trend data provided below.
Jumpto. 449-6876327 1 451-8089974 1 451-8090485
4498876327 1 HAUER
4,500,000 , "--4,000,000
3,500,000
3,000,000
2,500,000 ^
2,000,000
J,5D0,00D
1,000,000
500,000 "
D
u
JUN-05
JAN-OG
JUN-06
Move to Too
Month
Average Ledger
Average Collected
Average Daly lieu"* Coll
Ilegathre Coll Use of Fund Rate
Service Charge
1. JUN 2005
375,772.23
375,772.23
N/A
N/A
1
64.45
2. JLL 2005
739,422.78
739,422.78
WA
N/A
114.97
3. AUG 2005
1,115,195 01
1,115,195.01
NIA
NIA
166.93
4. SEP 2005
1,528,140.40
1,528,140.40
WA
NIA
223.28
S. OCT 2005
375,772.23
375,77223
WA
N/A
64.45
6. NOV 2005
764070.20
764.070.20
N/A
N/A
117.89
EARNINGS CREDIT RATE:
Because of the importance of the District's relationship, we offer our preferred Earnings Credit Rate,
which is based upon the 91-day T-Bill Auction Rate, discount basis, for the prior month. The Earnings
Allowance is calculated on an actual day year basis using the Earnings Credit Rate and is applied to
the average investable balance (collected balance less the 10% reserve requirement) for that month.
The formula for calculating the Earnings Allowance is as follows:
Investable Balance Available for Services X # of Calendar Davs in Month X ECR
Actual # of Days in the Year
3
AUG-05 SEP-OS OCT-05 NOV-05 DEC-05
1 •Average Ledger ■Average Collected I iSeMce Charged
YORBA LINDA WATER DISTRICT
4OMPENSATING BALANCE OPTIONS:
The District has the option of compensating on a fee or balance basis or a combination of both. The
pricing schedule remains the same regardless of payment method.
Option A: Compensating Balance Method - Compensating balances are collected balances
maintained in non-interest bearing accounts adjusted to meet the Federal Reserve Requirements. The
compensating balance requirement for a given month varies based upon the current earnings
allowance rate, services utilized, and volumes. Using this method, you may carry excess balances
forward to offset a deficit incurred during a calendar month and to cover charges in subsequent
months, but excess balances cannot be carried beyond one calendar quarter. Any shortfall will be due
and payable within ten days of presentment of the analysis for the final month of the quarter.
Option B: Compensating Balance with Sweep - Utilizing this option, the District would utilize a
sweep product. The District and the Bank would set a peg balance that would accommodate
offsetting a portion or all of the monthly banking fees. Any balances above the peg would
automatically sweep into one of the Bank's sweep vehicles and earn hard dollar dividends. Actual
monthly charges will vary depending on the type and volume of services used.
Option C: Sweep with Direct Fees - Section 53682 of the California Government Code allows public
entities to pay direct fees for services. By paying in direct fees, the District would eliminate the need
o maintain collected balances required for the above compensating balance methods. The daily
ollected balance must be positive to avoid uncollected funds charges. If you choose this alternative,
fees will be billed at the time the account analysis for the month is presented. Wells Fargo can either
directly debit your account or bill you for the service fees. Fees will be due and payable within ten
days of this presentment.
Utilizing this option, the District would utilize a sweep product. The District and the Bank would set
a peg balance of zero. All collected balances above this peg would automatically sweep into one of
the Bank's sweep vehicles and earn hard dollar dividends. Actual monthly charges will vary
depending on the type and volume of services used.
WELLS FARGO STAGECOACH SWEEP
Wells Fargo's Stagecoach SweepsM Repurchase Agreement service helps you gain maximum benefit
from balances in your Wells Fargo commercial checking accounts. End of day balances are
automatically swept into interest-bearing repurchase agreements. At the opening of the next
business day, the funds are returned to your account. The Stagecoach Sweep Repurchase Agreement
service allows you to generate additional earnings overnight while maintaining access to your cash
during the day.
■ Time and Cost Savings. Stagecoach Szueep Repurchase Agreement is automated. It requires no
estimating of available balances, phone calls or on-going management by your treasury
• personnel. Qualifying balances are automatically swept every bank business day, whether
you're in the office or not.
4
YORBA LINDA WATER DISTRICT
• Enhanced Earnings. Interest on your investment accrues daily and can be paid daily or monthly
on the first business day of the following month.
■ Accessibility. Funds are invested overnight and automatically deposited to your business
checking account at the opening of the next business day. Investments are completely liquid.
Access to your cash, including the amount invested, is available through your commercial
checking account.
Investments in Repurchase Agreements are undivided proportional interests in overnight repurchase
obligations of Wells Fargo Bank, N.A., governed by the bank's standard Repurchase Agreement. The
specific type and term of the securities used in connection with Wells Fargo's repurchase obligation
may vary from day to day. To help monitor your investments, your daily confirmation statement
includes details of your repurchase investment and the underlying repurchase obligation of Wells
Fargo Bank, including the securities held by the bank as collateral. This sweep option is an available
investment option as specified by the California Government Code.
The Wells Fargo Stagecoach Sweep Repurchase Agreement is subject to specific credit quality and valuation standards. The securities which are the
subject of the bank's repurchase obligation are always direct obligations of or guaranteed by the United States, its agencies or instrumentalities
(including, for example securities issued by the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation). They have a
market value at investment equal to or greater than the principal amount of the bank's obligation to you under your Repurchase Agreement.
HISTORICAL RATE INFORMATION BASED ON AN AVERAGE BALANCES 500.000-1.000.000
MONTH
ovember 2008
*ctober 2008
September 2008 Average
August 2008 Average
July 2008 Average
June 2008 Average
NEXT STEPS:
RATE
I MONTH
RATE
0.1000%
May 2008 Average
0.5883%
0.3766%
JApril 2008 Average
0.6812%
0.6083%
March 2008 Average
1.1084%
0.5927%
February 2008 Average
1.5608%
0.5948%
January 2008 Average
2.4952%
0.5792%
December 2007 Average
2.8548%
As mentioned above, the District has options regarding how it compensates the bank for services. In looking
at the historical rates, it appears that it has been beneficial for the District to utilize the compensating
balance method versus a sweep option. Let me know if you would like additional information or clarification
on any of the information provided.
The District is a valued client of the bank and I look forward to serving your needs.
Sincerely,
Lynn
Lynn Love
.Vice President and Relationship Manager
5
ITEM NO.
County of Orange Tax Receipts Received by YLWD
Tax Monies
Adjust to add
Tax Monies
•
FY
for Current FY
Impounds
for Prior Year
Total Rec'd in FY
% Chanae
91/92
$
1,950,476.41
$
61,230.28
$
2,011,706.69
92/93
$
1,620,075.91
$
47,407.60
$
1,667,483.51
(17.11%)
93/94
$
1,871,008.64
$
78,721.39
$
1,949,730.03
16.93%
94/95
$
1,766,754.75
$
85,307.20
$
1,852,061.95
(5.01%)
95/96
$
1,421,721.41
$
69,301.41
$
1,491,022.82
(19.49%)
96/97
$
1,656,574.79
$
33,927.19
$
1,690,501.98
13.38%
97/98
$
1,684,716.18
$
28,666.15
$
1,713,382.33
1.35%
98/99
$
1,703,434.76
$
31,528.93
$
1,734,963.69
1.26%
99/00
$
1,761,130.27
$
25,548.89
$
1,786,679.16
2.98%
00/01
$
1,795,116.29
$
28,226.84
$
1,823,343.13
2.05%
01/02
$
1,861,685.45
$
22,547.66
$
1,884,233.11
3.34%
02/03
$
1,909,683.09
$
31,066.84
$
1,940,749.93
3.00%
•
03/04
$
1,047,041.83
$
37,800.96
$
1,084,842.79
(44.10%)
04/05
$
289,429.15
$ 793,014.00
$
16,868.23
$
1,099,311.38
1.33%
05/06
$
370,712.26
$ 793,014.00
$
24,377.91
$
1,188,104.17
8.08%
06/07
$
1,222,801.13
$
24,462.23
$
1,247,263.36
4.98%
07/08
$
1,332,200.96
$
26,847.93
$
1,359,048.89
8.96%
FY 07/08
T
hru 11/19/07
$
180,381.94
FY 08/09 Thru 11/19108 $ 178,792.86 Nov Supplemental Tax Not Paid
$
6,870.77
$
468.86
$
5,222.96
For FY 08/09, the first 3 supplemental tax payments $
1,999.25
were slightly less than FY 07/08 $
3,634.86
$
9,467.52
$
896.55
$
1,126.95
$
5,584.44
$
5,854.45
$
898.58
$
2,421.57
• FY 07/08 Supplemental Tax Paid $
44,446.76
•
•
•
P.O. Box 942709
Sacramento, CA 94229-2709
888 CaIPERS (or 888-225-7377)
Telecommunications Device for the Deaf
CaIPERS No Voice (916) 795-3240
www.calpers.ca.gov
Circular Letter
TO: ALL PUBLIC AGENCIES
Date:
Reference No.:
Circular Letter No.:
Distribution:
Special:
ITEM NO.
November 18, 2008
200-056-08
I, IA, VI
SUBJECT: INVESTMENT RETURN IMPACT ON EMPLOYER RATES
ATTENTION: FINANCE DIRECTORS, HUMAN RESOURCE DIRECTORS,
PUBLIC AGENCY DECISION MAKERS
CalPERS is sending this circular as a result of our commitment to periodically provide
information regarding the current financial market volatility impact to the CaIPERS trust
fund, to our employers and to our members. CalPERS continues to manage a well
diversified portfolio and maintain a prudent, long term investment strategy in order to
ensure the financial security for those we serve.
RECENT EMPLOYER OUTREACH
CalPERS issued Circular Letter 310-050-08 on October 6, 2008 in order to inform public
agencies of the CalPERS investment policy and strategy during the market decline. That
Circular Letter also addressed the impact of financial market volatility on employer
contribution rates and on the security of retiree benefits. On October 21, 2008, CaIPERS
staff presented an agenda item to the Board of Administration that assessed the impact
to the System's funding status and employer contribution rates under various 2008/2009
fiscal year investment return scenarios. In addition, CalPERS Board Members and
Executive staff addressed these same issues extensively during the 2008 CalPERS
Educational Forum that was held in southern California from October 27 through October
29. This Circular Letter updates the information shared in October and includes the
impact of a revision to the fiscal year 2007/2008 investment return and more recent asset
return information during fiscal year 2008/2009.
FINAL 2007/2008 INVESTMENT RESULTS
In July 2008, CalPERS released preliminary net of fees investment returns for the
2007/2008 fiscal year of about negative 2.5 percent. Consistent with previous years, this
announced return was labeled preliminary because the market value figures for the real
estate and Alternate Investment Management (AIM) programs were as of March 31, 2008
and December 31, 2007, respectively.
L~
P
Circular Letter # 200-056-08 -2- November 18, 2008
The one to two quarter lag is a normal consequence of the time private market partners
• take to complete their financial reporting to CalPERS. This lag is consistent with industry
reporting standards. CalPERS has now obtained final figures for these investments. The
official 2007/2008 investment return net of expenses is negative 5.1 percent. More
information about the official investment return is available on the CalPERS web site
at www.calpers.ca.gov.
IMPACT ON 2010/2011 PUBLIC AGENCY EMPLOYER RATES
Local public agency contribution rates are affected by the investment return of a given
fiscal year in the third fiscal year that follows. For example, CalPERS recently set the
employer contribution rates for fiscal year 2009/2010 based on the investment return
of the fiscal year ending June 30, 2007. The negative 5.1 percent return for fiscal year
2007/2008 will first be reflected in the public agency employer contribution rates
applicable for the 2010/2011 fiscal year.
CalPERS achieved double digit gains in each of the four years leading up to the
2007/2008 fiscal year. Through CalPERS 15 year smoothing of investment returns,
these previous positive returns will cushion the impact the 2007/2008 investment losses
will have on employer contribution rates in 2010/2011. In fact as of June 30, 2007, the
asset smoothing method set aside about 14 percent of the CalPERS fund as a "rainy
day" fund. The negative 5.1 percent return for fiscal year 2007/2008, about 12.9 percent
less than the 7.75 percent expected rate of return, uses up most of the 14 percent of the
• "rainy day" fund. The good news is that employer contribution rates in 2010/2011 are not
expected to increase as a result of the 2007/2008 negative 5.1 percent return. In fact,
with the rate smoothing policies at CalPERS, the estimated impact of the negative 5.1
percent investment return is a decrease up to 0.1 percent of payroll in expected
2010/2011 employer rates. This assumes that all other actuarial assumptions are
realized in aggregate. It is important to note that in recent years, the demographic
experience of most plans translated to increases in employer rates.
By now, you should have received your actuarial valuation report as of June 30, 2007,
which set employer contribution rates for fiscal year 2009/2010. That actuarial valuation
also contained an estimated employer contribution rate for fiscal year 2010/2011.
However, due to timing and availability of data, that report projected the 2010/2011
employer rate using the preliminary estimated negative 2.5 percent rate of return rather
than the actual negative 5.1 percent investment for fiscal 2007/2008. The projected
employer contribution rate for 2010/2011 shown in the annual valuation report should be
about 0.1 percent of payroll higher than the figure contained in this most recent report.
0
Circular Letter # 200-056-08 -3 - November 18, 2008
IMPACT ON 2011/2012 PUBLIC AGENCY EMPLOYER RATES
• The investment return for fiscal year 2008/2009 will first impact public agency employer
contribution rates in the 2011/2012 fiscal year. As a result of the rate stabilization method
adopted by the Board, the impact on employer rates will be greatly mitigated. However,
the smoothing method adopted by CaIPERS imposes a corridor of 80 percent to 120
percent of the market value of assets when determining the smoothed actuarial value
of assets. Stated another way, the 15 year smoothing method stops when the actuarial
value of assets hits 120 percent of the market value of assets or 80 percent of the market
value assets.
The corridor limit will be hit if the 2008/2009 investment return reaches about negative 13
percent. Investment return lower than negative 13 percent will produce a significantly
greater impact on employer rates. Note that the impact on employer rates will vary from
plan to plan based on the assets of your plan compared to the payroll of active members
of your plan. The higher the ratio of assets to payroll, the greater the change in employer
rate.
The table below shows the estimated impact of various 2008-2009 investment returns on
the employer rate for fiscal 2011/2012.
ESTIMATED Change in Employer Contribution Rates in Fiscal 2011/2012
Hypoth
etical Investment Return for 20
08-2009
•
-20%
-15%
-10%
0%
7.75%
10%
20%
Return
Return
Return
Return
Return
Return
Return
Range of
Increase
Increase
Increase
Increase
Decrease
Decrease
Decrease
Estimated
of about
of about
of about
of about
of less than
of about
of about
Changes in
2% to 5%
1% to 2%
0.2% to
0.1% to
0.1% of
0.1 % to
0.2% to
Rates in Fiscal
of Payroll
of Payroll
0.5% of
0.2% of
Payroll
0.2% of
0.5% of
Year 2011/2012
Payroll
Payroll
Payroll
Payroll
If CaIPERS does experience a negative return in 2008-2009 as illustrated above, and
then returns to its anticipated 7.75 percent investment return, employer rates would likely
continue to rise slowly over time. Returns in excess of 7.75 percent in subsequent years
would be necessary to prevent a steady rise in employer rates.
For example, if the 2008/2009 fiscal year ends with an investment return of negative 20
percent, investment returns of 7.75 percent in the next few years would result in
increases in employer rates of about 0.2 percent to 0.6 percent of payroll each year.
0
Circular Letter # 200-056-08 -4- November 18, 2008
• IMPACT ON FUNDED STATUS
CalPERS determines a plan's funded status by comparing the market value of assets to
the accrued liability.
The table below displays the average funded status of CalPERS public agency plans as
of June 30, 2007. The table also shows the estimated funded status as of June 30, 2008
based on the negative 5.1 percent return during 2007/2008.
Funded Status on a
Market Value of
Assets Basis as of
June 30, 2007
Average Public Agency
Miscellaneous Plan
Average Public Agency
Safety Plan
103%
99%
ESTIMATED Funded
Status on a Market
Value of Assets Basis
as of June 30, 2008
89%
85%
The table below provides estimated average funded status for CalPERS public agency
plans as of June 30, 2009 under various possible investment return scenarios.
ESTIMATED Funded Status on a Market Value of Assets Basis
as of June 30, 2009 Based on Hypothetical Investment Returns
•
Hypothetical Investment Return for 2008-2009
-20% -15% -10% 0% 7.75% 10%
20%
Return Return Return Return Return Return
Return
PA (Misc) I 66% I 70% I 74% 1 82% 1 89% 1 91% 1
99%
PA (Safety) 1 63% I 67% I 71% 1 79% 1 85% 1 87% 1
95%
CalPERS cannot predict what the rest of the fiscal year will bring in the way of investment
return: therefore, we are providing these scenarios to employers in order to build
awareness of the potential impacts due to the global market downturn and to assist
administrators with long term planning. CaIPERS will continue to utilize our full range of
resources and talents to protect our employer and member financial interests today and
into the future.
If you wish to discuss these issues further, please contact your CalPERS actuary at
888 CalPERS or (888-225-7377).
Ronald L. Seeling, Chief Actuary
Actuarial & Employer Services Branch
•