HomeMy WebLinkAbout2009-03-13 - Finance-Accounting Committee Meeting Agenda Packet
Yorba Linda
Water District
FINANCE - ACCOUNTING COMMITTEE MEETING
Friday, March 13, 2009, 9:00 a.m.
1717 E. Miraloma Avenue, Placentia - Tel: (714) 701-3020
AGENDA
COMMITTEE STAFF
Director Michael J. Beverage, Chair Pat Grady, Assistant General Manager
Director John W. Summerfield Diane Cyganik, Finance Director
Sandi Van Etten, Senior Accountant
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 action.
1. Independent Accountants' Report on Applying Agreed-Upon Procedures for the
Cash-Out Audit of Michael A. Payne, Former General Manager. Report by Nitin
Patel, CPA of Diehl, Evans & Company.
Recommendation: That the Finance-Accounting Committee recommend
to the Board of Directors to receive and file the Independent Accountants'
Report on Applying Agreed Upon Procedures for the Cash-Out Audit of
Michael A. Payne.
2. Independent Accountants' Report on Applying Agreed-Upon Procedures for
Arbitrage Calculation on 2003 Certificates of Participation. Arbitrage Calculation
prepared by Stephanie Seroogy of Grant Thornton, LLP.
Recommendation: That the Finance-Accounting Committee recommend
to the Board of Directors to receive and file the Independent Accountants'
Report on Applying Agreed Upon Procedures for the Arbitrage
Calculation.
1
3. Investment Report ending January 31, 2009.
Recommendation: That the Finance Accounting Committee recommend
to the Board of Directors to receive and file the Investment Report for the
seventh month of fiscal year 200812009 ending January 31, 2009.
4. Monthly Financial Statements for the Period ending January 31, 2009.
Recommendation: That the Finance-Accounting Committee recommend
to the Board of Directors to receive and file the Financial Statements for
seventh month of fiscal year 200812009 ending January 31, 2009.
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.
5. Monthly Portfolio Report ending February 28, 2009. Report by Keith Khorey,
Wells Capital Management.
ADJOURNMENT
The next regularly scheduled meeting of the Finance-Accounting Committee will be held
April 14, 2009 at 4:00 p.m.
Items Distributed to the Committee Less Than 72 Hours Prior to the Meeting
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
internal 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 the Executive 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
ITEM NO.
AGENDA REPORT
Committee Meeting Date: March 13, 2009
To: Finance-Accounting Committee
From: Pat Grady, Assistant General Manager
Staff Contact: Diane Cyganik, Finance Director
Reviewed by General Counsel: N/A Budgeted: No Total Budget:
Funding Source:
CEQA Account No: 1-33-780 Job No:
Compliance: N/A Estimated Costs: $ 4,500Dept: Bus
Subject: Independent Accountants' Report - Cash-Out Audit of Former General Manager
SUMMARY:
On December 30, 2008, Michael A. Payne, the District's General Manager retired after 35 years
of service to the District. Mr. Payne had served in the capacity of General Manger for a period
of 5 years. When the District's former General Manager retired, William J. Robertson, the Board
established a verbal policy to conduct special cash-out audits for employees dealing directly
with finances of the District to insure sound financial management and accountability.
DISCUSSION:
Staff has requested an engagement with Diehl, Evans & Company, LLP, the District's auditors,
to conduct a special cash-out audit as of December 31, 2008. The audit was not conducted
until the end of January 2009 due to the timing of the receipt of the District's December 2008
bank statements, investment reports and credit card statements to assist in evaluating the
accountability of cash and investments as well as the final compensation payment in conjunction
with the retirement of Mr. Payne.
A report by Mr. Nitin Patel, CPA of Diehl, Evans & Company will be presented to the Committee
for their review and also to answer any potential questions.
PRIOR RELEVANT BOARD ACTION(S):
The Board of Directors ordered a special cash-out audit in December 2003 when former
General Manager William J. Robertson retired and also an audit in December 2005 when former
District Auditor Beverly Meza retired.
STAFF RECOMMENDATION:
That the Committee recommend to the Board of Directors to receive and file the Independent
Accountants' Report on Applying Agreed-Upon Procedures for the Cash-Out Audit of Michael A.
Payne, former General Manager.
ITEM NO.
AGENDA REPORT
Committee Meeting Date: March 13, 2009
To: Finance-Accounting Committee
From: Pat Grady, Assistant General Manager
Staff Contact: Diane Cyganik, Finance Director
Reviewed by General Counsel: N/A Budgeted: Yes Total Budget: $ 5,000
Funding Source:
CEQA Account No: 1-33-780 Job No:
Compliance: N/A Estimated Costs: $ 3,500Dept: Bus
Subject: Arbitrage Calculation on YLWD Series 2003 Certificates of Participation
SUMMARY:
Pursuant to the laws contained in Section 148 of the Internal Revenue Code of 1986 and
applicable Treasury Regulations, a five-year arbitrage calculation is required to be performed on
the 2003 Certificates of Participation (COP's). This requirement is to determine the District's
arbitrage rebate and yield liabilities for the period September 10, 2003 through September 10,
2008.
DISCUSSION:
Provisions of Section 148 of the Internal Revenue Code of 1986 (from the Tax Reform Act,
codified at 26 U.S.C. §148), as amended, (the "Code") states that the district's long-term debt
obligations must meet certain minimum criteria to be considered and continue to be considered
"tax exempt."
This "tax exempt" status means that interest income earned by purchasers of long-term debt
instruments is not subject to federal income taxes. Related U.S. Treasury Regulations under
Section 148 of the Code (26 C.F.R. §1.148-2) generally provide that the determination of tax
exempt status is made on or before the date such obligations are issued based on reasonable
expectations about the use of the bond proceeds.
Since these issues are sold in the tax-exempt market and reinvested in the taxable market, the
rates for reinvestment will normally be higher because of the nature of the markets' relative
risks.
Long-term debt that does not meet and continue to meet the minimum criteria of Section 148 of
the Internal Revenue Code and the related Treasury Regulations described above are
considered "arbitrage bonds" and are not considered "tax exempt." If bond proceeds are
invested at a higher yield than the effective interest rate being paid on the bonds, they are said
to produce arbitrage profits, and with only few exceptions, those profits must be paid back to the
federal government. Under current tax laws, a district must make calculations periodically to
determine any amounts that it might owe the federal government under these rules and must
make actual payments of any amounts owed in five-year increments.
Obligations will become arbitrage bonds (as described above) if a district does not convey
arbitrage profits to the federal government as rebate payments under Section 148(f) of the
Code. The district's obligation to calculate and make rebate payments (if any) will continue as
long as there are gross proceeds allocable to that outstanding debt issues. All debt issues are
separate and stand alone. Failure to remit arbitrage profits to the Internal Revenue Service
(IRS) when due can result in a penalty equal to 50 percent of the rebate amount due, plus late
filing interest.
That being said, the investment should be designed to earn as much interest as allowed. If too
much interest is earned, it is simply rebated to the IRS. There is no penalty or stigma involved
as long as the payment is timely.
The danger is not earning the allowed interest and consequently spending money on interest for
borrowed money before the money is needed.
For example, if a tax-exempt bond issue is sold at a yield of 5.5 percent and the proceeds are
invested in taxable securities of 6.75 percent, arbitrage of 1.25 percent (6.75 percent - 5.5
percent) is being earned.
On the other hand, selling a bond with a yield of 5.5 percent before it is needed for construction,
for example, and investing the proceeds in a savings account that only earns 3 percent interest
means that the a district is losing 2.5 percent interest (5.5 percent - 3 percent). In the long run,
every dollar the district has to pay in interest is a dollar that is no longer available for
construction.
The subject of arbitrage is one of the most important concepts in the municipal bond field.
Unfortunately, it is also quite complex and exceedingly technical. For this reason, the District
engaged the firm of Grant Thornton, LLP to perform the arbitrage calculation.
The arbitrage calculation was completed on February 19, 2009. Pursuant to the calculation it
highlights a cumulative negative rebate liability amount as of September 10, 2008 of
($1,100.909.11). As of this date, there is no liability and no payment or filing is due to the IRS.
PRIOR RELEVANT BOARD ACTION(S):
None.
STAFF RECOMMENDATION:
That the Committee recommend to the Board of Directors to receive and file the Installment
Arbitrage Rebate Report for the 2003 COP's.
ITEM NO. 3
AGENDA REPORT
Committee Meeting Date: March 13, 2009
To: Finance-Accounting Committee
From: Pat Grady, 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 January 2009
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:
Staff is submitting the January 2009 monthly investment report for your review and approval.
Staff will submit a quarterly report of the investments for Board action for the quarter ending
March 31, 2009 upon its approval.
Below is a chart summarizing the yields as well as terms and maturities for the month of
January 2009:
Avg.
Avg. Portfolio Portfolio # of Avg. Term
Month Yield Without Yield With Days to of
Portfolio in
of 2009 Wells Capital Wells Capital Maturity Da
January 0.49% 0.88% 118 41
Below is a chart comparing operating fund interest for current and prior fiscal years:
Actual Interest 01/31/08 01/31/09
Monthly, Operating Fund $ 2,509 $ 392
Year-to-Date, Operating Fund $25,349 $ 4,770
Budget 200712008 2008/2009
Interest Budget, Operating Fund, January YTD $50,166 $37,625
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
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 01/31/09
Annexation $9,410,973 19.50%
Water Operating (4,946,452) -10.25%
Water R&R 2,042,066 4.23%
Water-Capital Projects 149,500 0.31%
Restrict-Debt Service 1,396,173 2.89%
COP Bond 2003 0 0.00%
COP Bond 2008 24,327,924 50.42%
Sewer Operating 1,388,318 2.88%
Sewer R&R 276,526 0.57%
Sewer Capital Projects 188,112 0.39%
ID1 4,396,408 9.11%
I D2 9.625.492 19.95%
$48,255,040 100.00%
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 Report for the
quarter ending December 31, 2008 was received and filed by the Board of Directors on
February 26, 2009.
STAFF RECOMMENDATION:
That the Finance-Accounting Committee receive and file the report.
Yorba Linda Water District
Investment Portfolio Report
January 31, 2009
Market % Percent Investment Maturity
Value Cost of Total Institution Yield Date Date
Cash & Checking Accounts:
$ 154,968 $ 154,968 Wells Fargo Bank N/A
1,200 1,200 Imprest Cash
$ 156,168 $ 156,168 0.32% Total 0.00%
Money Market Accounts:
$ 178,307 $ 178,307 Wells Fargo Money Market 0.35% N/A
- - Wells Fargo MM/Annexation 0.35%
$ 178,307 $ 178,307 0.37% Total 0.35%
$ 334,475 $ 334,475 0.69% Sub-total 0.19%
California Asset Mgmt. Program:
$ 6,668,891 $ 6,668,891 13.84% California Asset Mgmt. Program 1.24% N/A
Money Market Account:
$ 24,327,924 $ 24,327,924 US Bank 2008 Revenue Bond 0.29%
0 0 US Bank 2003 Revenue Bond 0.00% N/A
$ 24,327,924 $ 24,327,924 50.48% 0.29%
$ 31,331,290 $ 31,331,290 65.01% Sub Total Investments 0.49%
Individual Management Account.
$ 16,910,523 $ 16,860,424 34.99% Wells Capital Management 1.60% N/A
$ 48,241,813 $ 48,191,714 100% Total Investments 0.88%
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.
'%A&; Va u 94&,t.
Sandi Van Etten, Senior Accountant
1/31/2009
ITEM NO.
AGENDA REPORT
Committee Meeting Date: March 13, 2009
To: Finance-Accounting Committee
From: Pat Grady, 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:
Funding Source: All Funds
CEQA Account No: Job No:
Compliance: N/A Estimated Costs: Dept: Bus
Subject: Financial Statements for the period ending January 31, 2009.
SUMMARY:
A presentation will be made of the Financial Statements for month ending January 31, 2009.
DISCUSSION:
The Water Fund had an operating loss of $2,488,537 through January 31, 2009. The key factors
are outlined below:
Yorba Linda Water District
Monthly Financial Statement Analysis - Water Operating Fund
For the Month Ending January 31, 2009
January Y-T-D Y-T-D
Budget 2009 Budget Budget
Description FY 2008/09 Actual Y-T-D Remaining Remaining
Total Water Revenue $ 17,498,010 $ 11,466,161 $ (6,031,849) -34%
Total Variable Water Costs $ 11,156,500 $ 6,870,065 $ 4,286,435 38%
Personnel Costs $ 7,389,200 $ 3,315,159 $ 4,074,041 55%
Supplies & Services $ 3,773,100 $ 1,939,261 $ 1,833,839 49%
Revenues are higher than anticipated through January. Water consumption by customers can
only be an estimate, partly determined by whether future years will be wet or dry. Variable water
costs are still higher than budget. Those costs include energy, which was significantly higher the
first four months of the year. Also included in this factor is the monthly water purchase. As of
January 1g`, the rate the District pays for the monthly water purchase increased by 14.2% from
$528.50/acre foot to $603.50/acre foot. Both Personnel Costs and Supplies & Services are
under budget at this point in time, with the factors affecting the variance similar to prior months.
In January, expenses increased $635,000 more than revenues increased. The January percent
increase over December, for expenses and revenues, is 15% and 11% respectively. Expenses
are out-pacing revenues by an average of $355,000 per month for the fiscal year, accounting for
the continuing operating loss.
The Sewer Fund had an operating loss of $132,892 for month ending January 31, 2009. The
key factors are outlined below:
Yorba Linda Water District
Monthly Financial Statement Analysis - Sewer Operating Fund
For the Month Ending January 31, 2009
January Y-T-D Y-T-D
Budget 2009 Budget Budget
Description FY 2008/09 Actual Y-T-D Remaining Remaining
Sewer Maintenance Charges $ 1,249,850 $ 736,189 $ (513,661) -41%
Personnel Costs $ 730,800 $ 373,169 $ 357,631 49%
Supplies & Services $ 339,600 $ 182,999 $ 156,601 46%
The Sewer Maintenance Charges are very close to budget. This would be expected as sewer
revenue is a fixed amount per customer account. Labor for sewer from ADP payroll adjustments
and salary allocations has been recorded on the sewer fund's books in January. This increased
the operating loss, as predicted in the December financial statement analysis. Personnel Costs
and Supplies & Services are under budget, with the factors contributing to the variance similar to
other months.
PRIOR RELEVANT BOARD ACTION(S):
The Board of Directors reviews each quarter's financial statements. The financial statements for
the quarter ended December 31, 2008 were received and filed on February 26, 2009.
STAFF RECOMMENDATION:
That the Committee recommend the Board of Directors receive and file the financial statements
for the seventh month of fiscal year 2008-09 ending December 31, 2008.
FUND 1
Schedule of Revenue & Expense
01-31-09
ANNUAL CORK YR VARIANCE VAR
BUDGET Y-T-D Y-T-D %
Operating Revenues:
Metered water sale% 17,040,410.00 13,174,004.88 3,866,405.12 23
Sewer maintenance charges 0.00 0.00 0.00 -100
Construction water sales 355,000.00 195,830.41 159,169.59 45
Irrigation Balsa 45,600.00 52,776.08 <7,176.08> -16
Other 13,490.00 39,063.49 <25,573.49> -190
Customer service fees 124,600.00 135,029.18 <10,429.18> -8
Rents and royalties 99,100.00 36,849.88 62,250.12 63
Outside District water sales 50,000.00 17,386.83 32,613.17 65
Unmetered water sales 7,000.00 5,160.30 - 1,839.70 26
To:-Restricted for Debt Serv" 0.00 <1,978,997.12> 1,978,997.12 -100
Total Operating Revenues 17,735,200.00 11,677,103.93 6,058,096.07 34
Operating Expenses:
Variable water costs 11,156,500.00 6,870,065.32 4,286,434.68 38
Personnel services 7,389,200.00 3,315,158.57 4,074,041.43 55
Depreciation 0.00 2,041,156.16 <2,041,156.16> -100
Supplies and services 3,773,100.00 1,939,261.11 1,833,838.89 49
Total Operating Expenses 22,318,800.00 14,165,641.16 8,153,158.84 37
Operating (Loss) <4,583,600.00> <2,488,537.23> <2,095,062.77> 46
POND
1
Schedule
of Revenue & Expense
01 -31 -09
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
723,114.60
477,035.40
40
Interest income
47,500.00
278,163.27
<230,663.27>
-486
Other revenue
449,200.00
415,948.13
33,251.87
7
Rev Restricted for Debt Sery
0.00
1,978,997.12
<1,978,997.12>
-100
Total Nonoperating Revenues
1,696,850.00
3,396,223.12
<1,699,373.12>
-100
Nonoperating expenses:
Interest expense
0.00
1,229,903.36
<1,229,903.36>
-100
Security Vulnerability Exp
0.00
0.00
0.00
-100
Other expense
0.00
141,723.28
<141,723.28>
-100
Total Nonoperating Expenses
0.00
1,371,626.64
<1,371,626.64>
-100
Income (Loss) before
Capital Contributions
<2,886,750.00>
<463,940.75>
<2,422,809.25>
84
Capital Contributions
667,100.00
344,330.92
322,769.08
48
Change in Net Assets:
<2,219,650.00>
<119,609.83>
<2,100,040.17>
95
RUN DATE /TIME: 12:24:10 04 Mar 2009
REPORT ID: revexp07
OPERATING REVENUE
WATER SALES
Residential Water
Combined Demand
Commercial
Fire Detector
Landscape Water
Irrigation
Other Water Sales
To: "Restricted for Debt Serv"
Total
OTHER
Damages /Relocation
Miscellaneous Billing
Other
Total
FUND 1
Schedule of Combined Revenue
01 -31 -09
ANNUAL CURR YR VARIANCE VAR
BUDGET Y -T -D Y -T -D %
12,983,902.00
7,158.00
1,191,790.00
150,000.00
2,700,850.00
45,600.00
418,710.00
0.00
17,498,010.00
3,290.00
0.00
10,200.00
13,490.00
9,768,965.57
4,863.80
872,302.66
69,846.22
2,437,869.13
52,776.08
238,535.04
<1,978,997.12>
11,466,161.38
11,289.10
0.00
27,774.39
39,063.49
3,214,936.43
2,294.20
319,487.34
80,153.78
262,980.87
<7,176.08>
180,174.96
1,978,997.12
6,031,848.62
25
32
27
53
10
-16
43
-100
34
<7,999.10>
-243
0.00
-100
<17,574.39>
-172
<25,573.49>
-190
SEWER MAINTENANCE CHARGES
Sewer Rate Charge
0.00
0.00
0.00
-100
City Maintenance Charge
0.00
0.00
0.00
-100
Maintenance Assessment
0.00
0.00
0.00
-100
F.O.G. fees
0.00
0.00
0.00
-100
Collection Fees - Placentia
0.00
0.00
0.00
-100
Total
0.00
0.00
0.00
-100
CUSTOMER SERVICE CHARGES
Customer Service Charges
Back Flow Charges
Total
75,000.00 100,759.00 <25,759.00>
49,600.00 34,270.18 15,329.82
124,600.00 135,029.18 <10,429.18>
-34
31
-8
Rents & Royalties 99,100.00 36,849.88 62,250.12 63
Total Operating Revenue 17,735,200.00 11,677,103.93 6,058,096.07 34
FOND
1
Schedule
of Combined Revenue
01 -31 -09
ANNUAL
CURR YR
VARIANCE
VAR
BUDGET
Y -T -D
Y -T -D
$
NON - OPERATING REVENUE
Taxes & Assessments
1,200,150.00
723,114.60
477,035.40
40
Interest
47,500.00
278,163.27
<230,663.27>
-486
Other Revenue
449,200.00
415,948.13
33,251.87
7
Rev Restricted for Debt Sery
0.00
1,978,997.12
<1,978,997.12>
-100
Total
11696,850.00
3,396,223.12
<1,699,373.12>
-100
TOTAL REVENUE
19,432,050.00
15,073,327.05
4,358,722.95
22
RUN DATE /TIME: 12:23:55 04 Mar 2009
REPORT IDs co=ev07
FUND
1
Schedule
of Combined Expenses
01 -31 -09
ANNUAL
CURR YR
VARIANCE
VAR
BUDGET
Y -T -D
Y -T -D
$
PERSONNEL SERVICES
Salaries Unit
3,330,350.00
1,564,175.19
1,766,174.81
53
Salaries SC
1,051,509.00
405,178.09
646,330.91
61
Salaries Management
713,116.00
398,619.20
314,496.80
44
Salaries Other
0.00
0.00
0.00
-100
Fees Directors
56,183.00
22,430.69
33,752.31
60
Fringe Benefits Unit
1,512,348.00
597,060.32
915,287.68
61
Fringe Benefits SC
346,877.00
133,900.20
212,976.80
61
Fringe Benefits Management
209,170.00
102,711.23
106,458.77
51
Fringe Benefits Directors
27,004.00
13,240.59
13,763.41
51
Fringe Benefits Other
142,643.00
77,843.06
64,799.94
45
Total Personnel Services
7,389,200.00
3,315,158.57
4,074,041.43
55
Depreciation
0.00
2,041,156.16
<2,041,156.16>
-100
Total Depreciation
0.00
2,041,156.16
<2,041,156.16>
-100
SUPPLIES & SERVICES
AMP Lease
0.00
0.00
0.00
-100
Communications
251,690.00
152,986.11
98,703.89
39
Contractual Services
807,159.00
404,271.31
402,887.69
50
Data Services
282,417.00
26,809.21
255,607.79
91
Dues & Memberships
31,585.00
17,805.20
13,779.80
44
Election Expense
39,999.00
37,789.15
2,209.85
6
Fees & Permits
44,617.00
15,195.30
29,421.70
66
Insurance
303,940.00
222,641.72
81,298.28
27
Legal /Settlement Agreements
0.00
0.00
0.00
-100
Maintenance
618,281.00
547,574.31
70,706.69
11
Non Capitol Equipment
209,945.00
54,523.82
155,421.18
74
Office Expense
60,672.00
22,194.68
38,477.32
63
Rental Lease
0.00
0.00
0.00
-100
Professional Services
622,021.00
192,478.10
429,542.90
69
Training
87,643.00
10,311.09
77,331.91
88
Travel & Conferences
59,343.00
15,350.78
43,992.22
74
Uncollectible Accounts
19,499.00
0.00
19,499.00
100
Collection Agency Fee
1,000.00
0.00
1,000.00
100
Utilities
63,920.00
16,042.44
47,877.56
75
Vehicle
269,369.00
203,287.69
66,081.11
25
Job Closing Expenses
0.00
0.00
0.00
-100
Unbudgeted Expenses
0.00
0.00
0.00
-100
POND 1
Schedule of Combined Expenses
01 -31 -09
ANNUAL
CURR YR
VARIANCE
VAR
BUDGET
Y -T -D
Y -T -D
$
Total Services 4 supplies
3, 7 73,100.00
1,939,261.11
1,833,838.89
49
VARIABLE WATER COSTS
Fuel A Power Pumping
1,350,000.00
1,011,313.62
338,686.38
25
Ground Water Replenishment
3,706,500.00
1,685,095.07
2,021,404.93
55
Purchased Water
61100,000.00
3,958,957.45
2,141,042.55
35
Readiness /Connection Charge
0.00
214,699.18
<214,699.18>
-100
Total Variable Water Coate
11,156,500.00
6,870,065.32
4,286,434.68
38
TOTAL OPERATING EXPENSE
22,318,800.00
14,165,641.16
8,153,158.84
37
NON - OPERATING EXPENSE
Other Expense
0.00
141,723.28
<141,723.28>
-100
955 Security Vulnerability
0.00
0.00
0.00
-100
Interest Exp on Long -term Debt
0.00
1,229,903.36
<1,229,903.36>
-100
Total Non - operating Expense
0.00
1,371,626.64
<1,371,626.64>
-100
Total Expenses
22,318,800.00
15,537,267.80
6,781,532.20
30
RUN DATE /TIME: 12:23:21 04 Mar 2009
REPORT ID: comexp07
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)
Form 2
Schedule of Revenue & Expense
01 -31 -09
ANNUAL CURR YR VARIANCE VAR
BUDGET Y -T -D Y -T -D $
0.00
0.00
0.00
-100
1,246,550.00
733,506.70
513,043.30
41
0.00
0100
0.00
-100
0.00
0.00
0.00
-100
3,300.00
2,682.00
618.00
19
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
0.00
0.00
0.00
-100
1,249,850.00
736,188.70
513,661.30
41
0.00
0.00
0.00
-100
730,800.00
373,168.82
357,631.18
49
0.00
312,912.95
<312,912.95>
-100
339,600.00
182,999.13
156,600.87
46
1,070,400.00
869,080.90
201,319.10
19
179,450.00
<132,892.20>
312,342.20
173
Nonoperating Revenues:
Property taxes - debt service
Property taxes - operations
Interest income
Other revenue
Rev Restricted for Debt Sery
Total Nonoperating Revenues
Nonoperating expenses:
Interest expense
Security vulnerability Exp
Other expense
Total Nonoperating Expenses
Income (Loss) before
Capital Contributions
FOND
2
Schedule
of Revenue & Expense
01 -31 -09
ANNUAL
CORE YR
VARIANCE
VAR
BUDGET
Y -T -D
Y -T -D
$
0.00
0.00
0.00
-100
66,000.00
0.00
66,000.00
100
17,000.00
6,740.05
10,259.95
60
5,000.00
10,854.42
<5,854.42>
-117
0.00
0.00
0.00
-100
88,000.00
17,594.47
70,405.53
80
0.00
0.00
0.00
-100
0.00
0.00
0.00
-100
0.00
1,116.21
<1,116.21>
-100
0.00
1,116.21
<1,116.21>
-100
267,450.00
<116,413.94>
383,863.94
143
Capital Contributions 251,000.00 277,519.06 <26,519.06> -11
Change in Net Assets: 518,450.00 161,105.12 357,344.88 69
RUN DATE /TIME: 12:24 :10 04 Mar 2009 REPORT ID: revexp07
OPERATING REVENUE
WATER SALES
Residential Water
Combined Demand
Commercial
Fire Detector
Landscape Water
Irrigation
Other Water Sales
To:-Restricted for Debt Serv°
Total
OTHER
Damages /Relocation
Miscellaneous Billing
Other
Total
SEWER MAINTENANCE CHARGES
Sewer Rate Charge
City Maintenance Charge
Maintenance Assessment
P.O.G. fees
Collection Fees - Placentia
Total
CUSTOMER SERVICE CHARGES
Customer Service Charges
Back Flow Charges
Total
Rents & Royalties
Total Operating Revenue
FUND 2
Schedule of Combined Revenue
01 -31 -09
ANNUAL CURR YR VARIANCE VAR
BUDGET Y -T -D Y -T -D %
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
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
0.00
0.00
0.00
-100
0.00
0.00
0.00
-100
0.00
77.00
<77.00>
-100
0.00
855.00
<855.00>
-100
0.00
932.00
<932.00>
-100
1,141,650.00
675,160.07
466,489.93
41
0.00
0.00
0.00
-100
104,900.00
58,346.63
46,553.37
44
0.00
0.00
0.00
-100
3,300.00
1,750.00
1,550.00
47
1,249,850.00
735,256.70
514,593.30
41
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
1,249,850.00
736,188.70
513,661.30
41
FUND
2
Schedule
of Combined Revenue
01 -31 -09
ANNUAL
CURR YR
VARIANCE
VAR
BUDGET
Y -T -D
Y -T -D
%
NON - OPERATING REVENUE
Taxes & Assessments
66,000.00
0.00
66,000.00
100
Interest
17,000.00
6,740.05
10,259.95
60
Other Revenue
5,000.00
10,854.42
<5,854.42>
-117
Rev Restricted for Debt Sery
0.00
0.00
0.00
-100
Total
88,000.00
17,594.47
70,405.53
80
TOTAL REVENUE
1,337,850.00
753,783.17
584,066.83
44
RUN DATE /TIMES 12:23:55 04 Mar 2009
REPORT ID: comrev07
FOND
2
Schedule
Of Combined Expenses
01 -31 -09
ANNUAL
CDRR YR
VARIANCE
VAR
BUDGET
Y-T-D
Y -T -D
PERSONNEL SERVICES
45
Salaries Unit
329,376.00
181,724.95
147,651.05
Salaries SC
103,997.00
43,462.38
60,534.62
58
Salaries Management
70,525.00
45,732.38
24,792.62
35
Salaries Other
0.00
0.00
0.00
-100
Fees Directors
5,557.00
2,165.98
3,391.02
61
Fringe Benefits Unit
149,573.00
68,293.68
81.279.32
54
Fringe Benefits SC
34,311.00
15,759.53
18,551.47
54
Fringe Benefits Management
20,688.00
10,434.10
10,253.90
50
56
Fringe Benefits Directors
2,670.00
1,177.50
1,492.50
69
Fringe Benefits Other
14,103.00
4,418.32
9,684.68
Total Personnel Services
730,800.00
373,168.82
357,631.18
49
Depreciation
0.00
312,912.95
<312,912.95>
-100
Total Depreciation
0.00
312,912.95
<312,912.95>
-100
SUPPLIES & SERVICE9
0.00
-100
AMP Lease
0.00
0.00
43
Communications
22,545.00
12,802.94
9,742.06
23
Contractual Services
72,676.00
56,035.32
16,640.68
97
Data Services
25,427.00
721.84
24,705.16
36
Dues & Memberships
2,845.00
1,814.39
1,030.61
Election Expense
3,601.00
3,737.39
<136.39>
-4
59
Fees & Permits
4,019.00
1,642.01
2,376.99
20
Insurance
27,365.00
22,019.51
5,345.49
Legal /Settlement Agreements
0.00
0.00
0.00
-100
56
Maintenance
55,669.00
24,660.49
31,008.51
83
Non Equipment Capitol E i
p
18,900.00
3,146.49
15,753.51
60
Office Expense
5,463.00
2,195.09
3,267.91
Rental Lease
0.00
0.00
0.00
-100
68
Professional Services
56,004.00
17,978.52
38,025.48
73
Training
7,892.00
2,158.06
5,733.94
77
Travel & Conferences
5,342.00
1,237.87
4,104.13
100
Uncollectible Accounts
1,756.00
0.00
1,756.00
100
Collection Agency Fee
90.00
0.00
90.00
98
utilities
5,755.00
129.08
5, 625.92
Vehicle
24,251.00
32,720.13
<8,469.13>
-35
Sob Closing Expenses
0.00
0.00
0.00
0.00
-100
-100
Unbudgeted Expenses
0.00
0.00
—
FUND
2
Schedule
of Combined Expenses
01 -31 -09
ANNUAL
CURB YR
VARIANCE
VAR
BUDGET
Y -T -D
Y -T -D
&
ee== ee=== evecvvvvevevveceee==== vvvvvvice==
v. viceveve=== eevevevcv= �= �vvvvvvveece-
a = =vvveeee = = =� =v�vve
Total Services & supplies
339,600.00
182,999.13
156,600.87
46
VARIABLE WATER COSTS
Fuel & Power Pumping
0.00
0.00
0.00
-100
Ground Water Replenishment
0.00
0.00
0.00
-100
Purchased Water
0.00
0.00
0.00
-100
Readiness /Connection Charge
0.00
0.00
0.00
-100
Total Variable Water Costs
0.00
0.00
0.00
-100
TOTAL OPERATING EXPENSE
1,070,400.00
869,080.90
201,319.10
19
NON - OPERATING EXPENSE
Other Expense
0.00
1,116.21
<1,116.21>
-100
955 Security Vulnerability
0.00
0.00
0.00
-100
Interest Exp on Long -term Debt
0.00
0.00
0.00
-100
Total Non - operating Expense
0.00
1,116.21
<1,116.21>
-100
Total Expenses
1,070,400.00
870,197.11
200,202.89
19
RUN DATE /TIME: 12:23:36 04 Mar 2009
REPORT ID: comexp07
ITEM NO.
Account Overview
Yorba Linda Water District
Account #18611500
Funding Date: 10/25/2005
Portfolio Statistics as of. 2/28/2009
Account Characteristics:
Portfolio Yield to Maturity 1.65%
Total Unrealized Gains/(Losses) - Current: 42,409
Total Net Realized Gains/(Losses) - Since Inception: 496
Total Long-Term Investments: -
Total Short Duration Investments/Money Market Secs: 16,915,187
Total Market Value: 16,915,187
Total Number of Issues in the Portfolio: 18
MARKET DATA
Overnight Fed Funds Rate: 0.00%
6-Month T-Bill Yield: 0.43%
12-Month T-Note Yield: 0.72%
WELLS CAPITAL MANAGEMENT
Portfolio Summary Report Verbs Linda Water District
For the period : 02/01/09 to 02/28109 18611500
Market Value:
16,915,187.41
0.34%
Unrealized G /L:
42,408.61
Agency Discount Note
5 Year Treasury Note:
1.98%
Commercial Paper
Yield To Maturity:
1.65%
Discount
Portfolio Duration:
0.31 Years
Fixed Rate
Other
0.0%
Floating Rate
Avg. Days to Maturity:
121
Money Market Fund
Avg. Portfolio Credit Quality:
Aa1
Pending_Cash
100.0%
Total
Marke# [tat ,'
Yields:
6 Month Treasury Bill:
0.44%
0.34%
2 Year Treasury Note:
0.97%
0.95%
5 Year Treasury Note:
1.98%
1.88%
Fed Funds Target:
0-0.25%
0 - 0.25%
E/teetilwMadirw Distobution
0.32
P1 /MIG1A/MIG1 /A -1
10.6%
ate
Aaa/AAA
53.6%
Aa/AA
2.9%
014
A/A
3.7%
Baa/BBB
0.0%
0.20
Other
0.0%
018
Cash/Ovemights
29.1%
Not Rated
0.0%
0.12
100.0%
0.08
Moody's Ratings - Primary 0.04
S&P Ratings - Secondary
Fitch Ratings - Tertiary 0.00
om 2W90 e1 to 1e0
The above Information Is an estimate of certain Investment calculations and does not represent your audited statement of record.
Market Value
9,074,270.00
849,040.17
946,088.89
632,648.40
498,518.00
4,914,621.86
0.09
16,915,187.41
% of Account
53.65%
5.02%
5.59%
3.74%
2.95%
29.05%
0.00%
100.00%
161 ro t yam 1 ro 2 yams � 2 yews
YORBA LINDA WATER DISTRICT
Statement of Cash Flows/Earnings for February 2009
I - Beginning Period Balances As of 1/31/2009
Total Original Cost 16,796,923
+ Net Amort/Accr to Date 63,500
=Adjusted Book Value: 16,860,424
+ Accrued Interest Receivable 13,228
+ Unrealized Gain/(Loss) 50,099
= Total Market Value Plus Accrued Interest 16,923,751
II: Period Income Earned
+ Ending Accrual 19,167
- Begininning Accrual (13,228)
+ Interest Received 6,731
- Interest Paid at Purchase (5,688)
+ Interest Received at Sale -
= Interest Earned in Period 6,983
+ (Amon)/Accr This Period 14,244
= Monthly Portfolio Income $ 21,226
+ Contributions
- Withdrawals
+ Realized Gain/(Loss)
- Fees Paid This Period (2,932)
- Prior Period Unrealized Gain/Loss 50,099
+ End Of Period Unrealized Gain/Loss 42,409
+ Net Receipts/Deliveries in Kind 0.00
+ Adjustments 0.00
= Net Change to the Portfolio 3,621
=Total Market Value Plus Accrued
Interest 16,934,354
III: End of Period Balances As of 2/28/2009
Total Original Cost 16,795,035
+ Net Amort/Accr to Date 77,744
= Adjusted Book Value 16,872,779
+Accrued Interest Receivable 19,167
+ Unrealized Gain/(Loss) 42,409
= Total Market Value Plus Accrued
Interest 16,934,354
Reconciliation Difference: -
Wells Capital Management
Holdings Report
Securities Held as of 2/28/09 on a Trade Date Basis
literati. credit Ratings
Per Valve Seaway Description
Coupon
Fire
YTM at
+Aowe4 Percentagea
Pocase
Interest Account
Matt ily
Maadya
S&P FaM
100.000
4,914,622
4,917,632
1. Cash 8 Cash Equivalents (Original maturity of 90 days or less)
0.66%
07/13109
Cash
0.00
99.860
5,364,602
5,367,613
U.S. DOLLARS
092%
0 PENDING CASH
145
0.40
99.320
4 96.600
(0)
2.94%
0.61%
Money Mid Securities
82
0.23
99.886
449,489
Agency Discount Note
2.66%
194%
01121110
327
Commensal Paper
99.220
992,200
992,200
5.87%
036637050 P -1
A -1+ NR
450,000 ANTALIS US FNDG CORP
0.000
03/05/09
Money Market Fund
797,360
4.71%
0.71%
05108/09
VP7000038 NR
NR NR
4,914,622 WF ADV MONEY MKT TR 0645
0.658
699,650
Cash 8 Cash Equivalent& Total
5,380,822
05120/09
81
II. Marketable Securities (Original maturity
greater than 90 days)
999,400
999,400
MA: Short Tam Securities (Remaining matudfy, of less than 365 days)
1.75%
05129/09
GovY Gwranteed -CP
0.25
99.930
999,300
999,300
06051HUPO P -1
A-1 NR
500,000 BANK OF AMER CORP TLGP
0.000
07/23109
36161CSMS P -1
A -1+ NR
450,000 GECAPITALTLGP
0.000
05/21/09
Corporate Securities
168
0.43
11,228,056
Corporate Obligation
66.38%
2.02%
Fixed Rafe
285659AES A2
A A+
300,000 ELECTRONIC DATA SYSTEMS
7.125
10115109
Floating Rate
89233P3D6 Aat
AA+ NR
500,000 TOYOTA MOTOR CREDIT CORP
2.434
01/29/10
Govt Securities
Gov Agnry Obligation
Money Mkt Securities
Agency Discount Note
313313MR6 AGY
AGY AGY
1,000,000 FFCB
0.000
10107/09
313385EP7 AGY
AGY AGY
1,000,000 FHLB
0.000
04120/09
313385.1133 AGY
AGY AGY
800,000 FHLB
0.000
07113/09
313385KS4 AGY
AGY AGY
1,000,000 FHL13
0.000
08/21109
313385RK4 AGY
AGY AGY
800,000 FHLB
0.000
01/05110
313385SB3 AGY
AGY AGY
1,000,000 FHLB
0.000
01/21110
313397LZ2 AGY
AGY AGY
800,000 FHLMC
0.000
09/21109
313589FHI AGY
AGY AGY
700,000 FNMA
0.000
05/08109
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
Comrnercial Paper
83366RT39 P -1
A -1+ NR
400,000 SOCIETE GENERALE N AMER CP
0.000
06103/09
Short Term Securities Total:
11,250,000
EBeaive Days Duration MaAM Pnoe Market
Maturity to Ell Va.
Maturity
Yorba Linda Water District
5
18611500
Market Value Holdings as
YTM at
+Aowe4 Percentagea
Pocase
Interest Account
or Reset
0.00 0.00 0.00%
0 0.00 0.00 0.00 0.00% 0.00%
03105/09
5
0.02
99.996
449,981
449,981
2.66%
2.55%
03101109
1
0.00
100.000
4,914,622
4,917,632
29.05%
0.66%
07/13109
1
0.00
99.860
5,364,602
5,367,613
31.71%
092%
07123109
145
0.40
99.320
4 96.600
496,600
2.94%
0.61%
05/21/09
82
0.23
99.886
449,489
449,489
2.66%
194%
10/15/09 229 0.61 103.373 310,120 318,195 1.83% 2.12%
01/29/10 335 0.17 99.704 498,518 499,600 2.95% 2.43%
10107109
221
0.61
99.610
996,100
996,100
5.89%
2.00%
04120109
51
0.14
99.970
999,700
999,700
5.91%
3.04%
07/13109
135
0.37
99.860
798,880
798,880
4.72%
2.99%
08/21109
174
0.48
99.760
997,600
997,600
5.90%
3.02%
01105110
311
0.85
99.260
794,080
794,080
4.69%
0.82%
01121110
327
0.89
99.220
992,200
992,200
5.87%
0.87%
09121/09
205
0.56
99.670
797,360
797,360
4.71%
0.71%
05108/09
69
0.19
99.950
699,650
699,650
4.14%
2.98%
05120/09
81
0.22
99.940
999,400
999,400
5.91%
1.75%
05129/09
90
0.25
99.930
999,300
999,300
5.91%
2.91%
06/03109
95
0.26
99.765
399,060
399,060
2.36%
0.98%
168
0.43
11,228,056
11,237,213
66.38%
2.02%
The above Inforrrration is an esama0a of certain investment calculations and does net represent your audited statement of record. Page: 1 of 2
Holdings Report
Yorba Linda Water District
Securities Held as of 228/09 on a Trade Date Basis
18611500
Identifier Credit Ratings Par Value Sly Description
Coupon Firel Effective Days
Duration Market Price
Market
Markel Value
Holdings as
y M at
Melurity Mawrity to Eff
Value
+Acc wd
Pereoroege of
PuMese
Maksity
Interest
A=wrt
or Reset
Molds S &P Fech
AB. Longiems SawMles (Remaining MaWdfy greater than 365 days)
Corporate Securities
Fixed Rate
718507808 At A A 300,000 PHILLIPS PETE
8.750 05125/10 05/25/10 dSt
1.17 107.510
322,529
329,529
1.91%
2.51%
Floating Rate
Marketable Securities Total 11,550,000
176
OAS
11,550,585
11,566,742
68.29%
2.03%
Portfolio Total: 16,914,622
121
0.31
16,916,187
16,936,350
100.00%
1.65%
The abow information Is an estimate of certain Investment calculations and does not represent your audited statement of record
Page: 2 of 2