HomeMy WebLinkAbout2018-10-08 - Board of Directors Meeting Minutes 2018-157
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS WORKSHOP MEETING
Monday, October 8, 2018, 4:30 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The meeting was called to order at 4:30 p.m.
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
Al Nederhood, President Marc Marcantonio, General Manager
Brooke Jones, Vice President Brett Barbre, Assistant General Manager
J. Wayne Miller John DeCriscio, Operations Manager
Delia Lugo, Finance Manager
DIRECTORS ABSENT Art Vega, Information Services Manager
Andrew J. Hall Rosanne Weston, Engineering Manager
Phil Hawkins Annie Alexander, Executive Asst/Board Secretary
Bryan Hong, Water Quality Engineer
Vivian Lim, Human Resources Analyst
Kelly McCann, Senior Accountant
Kaden Young, Management Analyst
4. PUBLIC COMMENTS
None.
5. DISCUSSION ITEMS
5.1. 5-Year Forecast of District's Operating Budget
Staff reviewed factors considered during the development of a 5-year
forecast of the District's operating budget for inclusion in the fully
illustrated budget document being submitted to the Government Finance
Officers Association (GFOA) at the end of the month.
Staff then provided an overview of the following topics: key information
associated with Fitch Ratings' surveillance conducted November 2017;
Minutes of the YLWD Board of Directors Workshop Meeting Held October 8,2018 at 4:30 p.m. 1
2018-158
operational costs which had been absorbed; operational cost efficiencies
which had been implemented; reserve policy targets and rating agencies'
metrics for maintaining an AA rating; and variables considered during the
process of evaluating the need for a potential rate adjustment.
Staff then reviewed multiple financial scenarios and the projected impact
on water revenue, debt coverage ratio, reserve balances, and credit
ratings. Staff also requested the Board consider the development of
policies related to future rate adjustments and funding for capital
improvements, and the implementation of a 2-year budget cycle. Staff
then reviewed key elements of the 5-year operating budget forecast
including proposed rate adjustments, total capital expenditures, and the
projected financial impact on average and high usage residential
customers. Staff also noted uncertainties associated with pending
legislation, water quality regulatory requirements, and environmental
conditions.
In depth discussion followed regarding various aspects of the 5-year
operating budget forecast. It was determined to continue review of this
matter at another workshop meeting where the full Board could be
present. Staff will present historical projected revenues versus actual
revenues at this same meeting. Staff will also arrange to have the
District's General Counsel provide a presentation at a future meeting
regarding Proposition 218 notice requirements.
6. ADJOURNMENT
6.1. The meeting was adjourned at 7:24 p.m.
Annie Alexander
Board Secretary
Minutes of the YLWD Board of Directors Workshop Meeting Held October 8,2018 at 4:30 p.m. 2