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HomeMy WebLinkAbout2009-08-11 - Finance-Accounting Committee Meeting Agenda Packet 'rb Linda Water District AGENDA YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING Tuesday, August 11, 2009, 4:00 PM 1717 E Miraloma Ave, Placentia CA 92870 COMMITTEE STAFF Director Michael J. Beverage, Chair Ken Vecchiarelli, General Manager Director John W. Summerfield Diane Cyganik, Finance Director Sandi Van Etten, Senior Accountant 1. 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. 2. ACTION CALENDAR This portion of the agenda is for items where staff presentations and committee discussions are needed prior to formal committee action. 2.1. Monthly Financial Statements for June 2009 Recommendation: That the Committee receive and file the Preliminary Financial Statements. 2.2. Monthly Investment Report for June 2009 Recommendation: That the Committee receive and file the Investment Report. 3. 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. 3.1. Monthly Portfolio Reports for July 2009 3.2. Cash Out Audit for Finance Director 3.3. Future Agenda Items and Staff Tasks 4. ADJOURNMENT 4.1. The next regular meeting of the Finance-Accounting Committee will be held September 8, 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 a majority of 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 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. ITEM NO. 2.1 AGENDA REPORT Meeting Date: August 11, 2009 Budgeted: N/A To: Finance-Accounting Committee Funding Source: N/A From: Ken Vecchiarelli, General Manager Presented By: Sandi Van Etten, Senior Dept: Finance Accountant Reviewed by Legal: N/A Prepared By: Sandi Van Etten, Senior CEQA Compliance: N/A Accountant Subject: Monthly Financial Statements for June 2009 SUMMARY: A presentation will be made of the Preliminary June 2009 Financial Statements. These statements represent trial balances. As the final audit is completed, these statements may need to be revised further to reflect any Fiscal Year 2008/09 adjustments determined necessary by the audit. STAFF RECOMMENDATION: That the Committee receive and file the Preliminary Financial Statements. DISCUSSION: The Water Fund and the Sewer Fund had operating losses through June 30, 2009 of $6,808,913.94 and $334,681.53, respectively. The key factors are as follows: Wateffhe Water Fund's operating loss increased $3,675,805 in June. The large jump in June's loss is primarily due to annual revenue reclassifications that are historically processed at the end of the fiscal year (i.e, in June). Revenue received in July, August and in some cases even as late as September 2009, which was generated from June 2008 water meter readings, has already been "accrued" or accounted for in FY 2007/08 as "unbilled receivables". The equivalent amount of revenue, which was actually received in FY 2008/09, must be "reclassified" or backed out of that year's revenue. This reclassification insures against a double booking of revenue and results in a more accurate accounting process. More than $2M net revenue was adjusted out of FY 2008/09's for this accrual and reclassification process. Expenses also increase at the end of the fiscal year when costs from jobs that are not capital assets, such as our expenses from the 2008 Freeway Complex Fires are "reclassified" or cleared out. Compounding these affects, revenue also dropped in June with lower than anticipated water demands and other expenses increased as vehicle and equipment outlay and other material purchases were made before the fiscal year end. Sewer:Sewer Fund's operating loss also increased in June. This was mainly due to lower revenue and job closing expenses, as explained under the water discussion. PRIOR RELEVANT BOARD ACTION(S): Financial Statements are presented to the Finance-Accounting Committee on a monthly basis. Quarterly Financial Statements are presented to the Board of Directors which are then received and filed. ATTACHMENTS: Jun09 prelim FS.pdf .:_:n00 prelim PS Backup Material OW07105 Yorba Linda Water District 1023 AM Revenue/Expense Report Water Detail For the Twelve Months Ending June 30, 2909 Full Year YTD YTD YTD Budget Budget Actual Under(Over) Month FY 2009 FY 2009 FY 2009 Budget June/2009 Revenue (Operating): Water Revenue (Residential) $12,991,060 $12,991,060 $14,031,947 ($1,040,887) ($1,047,743) (Restricted for Debt Service) (3,022,468) 3,022,468 (235,597) Water Revenue (Commercial & Fire Det.) 1,341,790 1,341,790 1,581,046 (239,256) 91,139 Water Revenue (Landscape/Irrigation) 2,746,450 2,746,450 3,647,827 (901,377) 234,056 Other Operating Revenue 655,900 655,900 807,754 (151,854) 172,121 Total Operating Revenue: 17, 735, 200 17, 735, 200 17,046,106 689,094 (786,023) Expenses (Operating): Variable Water Costs (G.W., Import & Power) 11,156,500 11,156,500 10,771,418 385,082 1,041,208 Salary Related Expenses 7„114,220 7,114,220 5,753,747 1,360,473 699,758 Supplies & Services: Communications 247,768 247,768 304,623 (56,855) 67,558 Contractual Services 729,946 729,946 779,231 (49,285) 175,258 Data Processing 260,931 260,431 134,037 126,894 19,822 Dues & Memberships 31,273 31,273 22,417 8,856 637 Fees & Permits 37,934 37,934 31,102 6,832 1,688 Board Election 39,999 39,999 37,789 2,210 Insurance 303,940 303,940 230,792 73,148 93 Materials 586,461 586,461 857,937 (271,475) 89,399 District Activities, Emp Recognition 20,100 20,100 14,467 5,633 24 Non-Capital Equipment 207,413 207,413 63,260 144.153 2,362 Office Expense 60,374 60,374 34,171 26,203 2,274 Professional Services 620,590 620,590 494,167 126,423 192,537 Training 86,262 86,262 16,941 69,320 602 Travel & Conferences 58,105 58,105 28,021 30,084 2,619 Uncollectible Accounts 19,499 19,499 24,615 (5,115) 24,615 Collection Agency Fee 1,000 1,000 1,000 Utilities 63,920 63,920 25,621 38,300 2,048 Vehicle Equipment 242,787 242,787 342,387 (99,600) 15,311 Job Closing Expense 263,700 X263.700) 178,722 Supplies & Services Sub-Total 3,618,302 3,618,302 3,705,277 (86,975) 775,571 Depreciation & Amortization 3,676,500 3,676,500 3,624,579 51,921 373,245 Total Operating Expenses 25,565,522 25,565,522 23,855,020 1,710,502 2,889,782 Operating Income (Loss) (7,830,322) (7,830,322) (6,808,914) (1,021,408) (3,675,805) Revenue (Non-Operating): Interest 47,500 47,500 19,814 27,686 1,184 Interest (Restricted for Capital Projects) 293,381 (293,381) 5,559 Property Taxes 1,200,150 1,200,150 1,276,638 (76,488) 35,259 Debt Service Income (through water revenue) 3,022,468 (3,022,468) 235,597 Other Non-Operating Revenue 449,200 449,200 611,625 _ (162,425) 28,455 Total Non-Operating Revenue: 1,696,850 1,696,850 5,223,927 (3,527,077) 306,054 Expenses (Nan-Operating): Interest on Long Term Debt 2,050,887 (2,050,887) 164,197 Other Expense 24,300 24,300 166,928 (142,628) 4,757 Total Non-Operating Expenses: 24,300 24,300 2,217,815 (2,193,515) 168,954 Non-Operating Income (toss) 1,672,550 1,672,550 3,006,112 (1,333,562) 137,101 Total Income (Loss) _ (6,157,772 _ 6,157,772 (3,802,802 _ (2,354,971) (3,538,704 Contributed Capital 667,100 667,100 2,042,842 (1,375,742) 561,343 08!97/69 Yorba Linda Water District 10-39 AM Revenue/Expense Report Sewer Detail For the Twelve Months Ending June 30, 2009 Full Year YTI] YTD YTD Budget Budget Actual Under(Over) Month FY 2009 FY 2409 FY 2049 Budget June/2009 Revenue (Operating): Sewer Charge Revenue $1,141,650 $1,141,650 $1,155,734 [$14,084} {$25,847) Locke Ranch Assessments 104,900 104,900 104,581 319 4,750 Other Operating Revenue 3,300 3,300 18,599 (15,299) 14,240 Total Operating Revenue: 1,249,850 1,249,850 1,278,914 (29,064) (6,856) Expenses (Operating): Salary Related Expenses 998,748 998,748 624,438 374,310 62,490 Supplies & Services: Communications 26,467 26,467 25,910 558 6,363 Contractual Services 149,889 149,889 99,064 50,826 27,099 Data Processing 46,711 46,711 1,863 44,848 80 Dues & Memberships 3,157 3,157 2,315 842 173 Fees & Permits 10,702 10,702 3,567 7,134 859 Board Election 3,601 3,601 3,737 (136) Insurance 27,365 27,365 22,826 4,539 9 Materials 65,579 65,579 58,504 7,075 22,862 District Activities, Emp Recognition 1,810 1,810 1,431 379 2 Non-Capital Equipment 21,432 21,432 3,661 17,771 167 Office Expense 5,436 5,436 3,380 2,056 225 Professional Services 57,435 57,435 58,893 (1,458) 27,287 Training 9,273 9,273 6,056 3,217 1,399 Travel & Conferences 6,580 6,580 2,291 4,289 259 Uncollectible Accounts 1,756 1,756 2,520 (764) 2,520 Collection Agency Fee 90 90 90 Utilities 5,755 5,755 215 5,540 20 Vehicle Equipment 50,833 50,833 50,630 203 2,361 Job Closing Expense 98,917 (98`917) Supplies & Services Sub-Total 493,870 493,870 445,779 48,092 91,686 Depreciation & Amortization 564,200 564,200 543,379 20,821 47,157 Total Operating Expenses 2,056,818 2,056,818 1,613,595 443,223 201,333 Operating Income (Less) (806,968) (806,968) (334,682) (472,287) (208,189) Revenue (Non-Operating): Interest 17,000 17,000 8,286 8,714 590 Interest (Restricted for Capital Projects) 1,036 (1,036) 102 Property Taxes 66,000 66,0100 66,000 Other Non-Operating Revenue 5,000 5,000 13,552?) Total Nan-Operating Revenue: 88,000 88,000 22,874 65,126 (124) Expenses (Non-Operating): Other Expense 6,700 6,700 2,194 4,506 204 Total Non-Operating Expenses: 6,700 6,700 2, 1944 4,506 204 Non-Operating income (Loss) 81,300 81,300 20,680 60,620 (328) Total Income (Loss) ~25,6611 725,668 314,002 411,667 208,517 Contributed Capital 251,000 251,000 2,300,088 (2,049,088) 322,583 08/07109 Yorba Linda Water District 10:37 AM Summary Financial Report Water & Sewer For the Twelve Months Ending June 34, 2009 Full Year YTD YTD YrD Budget Budget Actual Under(Over) Month FY 2009 FY 2009 FY 2009 Budget June/2009 Revenue (Operating): Water Revenue (Consumption & Flat Charge) $17,441,010 $17,441,010 $19,597,967 ($2,156,957) ($690,605) (Restricted for Debt Service) (3,022,468) 3,022,468 (235,597) Sewer Revenue 1,246,550 1,246,550 1,260,315 (13,765) (21,097) Other 297,490 297,490 489,206 (191,716) 154,419 Total Operating Revenue: 18,985,050 98,985,050 18,325,020 660,030 (792,879) Expenses (Operating): Variable Water Costs (G.W., Import & Power) 11„156,500 11,156,500 10,771,418 385,082 1,041,208 Salary Related Expenses 8,112,968 8,112,968 6,378,185 1,734,784 762,248 Supplies & Services 4,112,172 4,112,172 4,151,056 (38,883) 867,257 Depreciation & Amortization 4,240,700 4,240,700 4,167,957 72,743 420,402 Total Operating Expenses: 27, 622,340 27,622, 340 25,468, 615 2,153, 725 3,091,115 Operating Income (Loss) (8,637,290) (8,637,290) (7,143,595) (1,493,695) (3,883,994) Revenue (Non-Operating): Interest 54,500 64,500 28,100 36,400 1,773 Interest (Restricted for capital projects) 294,417 (294,417) 5,661 Property Taxes 1,266,150 1,266,150 1,276,638 (10,488) 35,259 Debt Service Income (through water revenue) 3,022,468 (3,022,468) 235,597 Other 454,200 454,200 625,177 (170,977) 27,639 Total Non-Operating Revenue: 1,784,850 1,784,850 5,246,809 (3,461,951) 305,929 Expenses (Non-Operating).- Interest on Long Term Debt 2,050,887 (2,050,887) 164,197 Other Expense 31,000 31,000 169,122 (138,122) 4,960 Total Non-Operating Expenses: 31,000 31,000 2,220,008 (2,189,008) 969,157 Non-Operating Income (Loss) 9,753,850 1,753,850 3,026,792 (1,272,942) 136,772 Net Income (Loss) (6,88 (6,883,440 (4116,803) (2,766,637) (3 Other Expenditures and Outlay: Capital - Direct Labor 387,200 Capital - Labor Allocation (7%) 480,078 Capital - Supplies & Services Allocation (7%0) 312,445 Principal on Debt 570,000 Vehicle and Equipment Outlay 248,700 Total Other Expenditures/Outlay: 1,998,423 Income (Loss) w/ Other Expenditures (6,195,227) Contributed Capital 918,100 918,100 4,342,929 (3,424,829) 883,926 ITEM NO. 2.2 AGENDA REPORT Meeting Date: August 11, 2009 Budgeted: N/A To: Finance-Accounting Committee Funding Source: N/A From: Ken Vecchiarelli, General Manager Presented By: Sandi Van Etten, Senior Dept: Finance Accountant Reviewed by Legal: N/A Prepared By: Sandi Van Etten, Senior CEQA Compliance: N/A Accountant Subject: Monthly Investment Report for June 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. STAFF RECOMMENDATION: That the Committee receive and file the Investment Report. DISCUSSION: Staff is submitting the June 2009 Monthly Investment Report for your review and approval. Staff will submit a Quarterly Investment Report ending June 30, 2009 for Board action upon its approval by the Finance-Accounting Committee. 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 March 31, 2009 was received and filed by the Board of Directors on May 28, 2009. ATTACHMENTS: ;ascription: i ype. Invst Rpt 6-09.xls nvestment report Backup Material Agenda, 8-11_backup.doc agenda backup Backup Material Yorba Linda Water District Investment Portfolio Report June 30, 2009 Market % Percent Investment Maturity Value Cost of Total Institution Yield Date Date Cash & Checking Accounts: $ 1,475,934 $ 1,475,934 Wells Fargo Bank N/A 1,200 1,200 Imprest Cash $ 1,477,134 $ 1,477,134 3.13% Total 0.00% Money Market Accounts: $ 178,549 $ 178,549 Wells Fargo Money Market 0.30% N/A - - Wells Fargo MM/Annexation 0.30% $ 178,549 $ 178,549 0.38% Total 0.30% $ 1,655,683 $ 1,655,683 3.51% Sub-total 0.03% California Asset Mgmt. Program: $ 6,689,780 $ 6,689,780 14.18% California Asset Mgmt. Program 0.56% N/A Money Market Account: $ 21,513,330 $ 21,513,330 US Bank 2008 Revenue Bond 0.22% 0 0 US Bank 2003 Revenue Bond 0.00% N/A $ 21,513,330 $ 21,513,330 45.59% 0.22% $ 29,858,793 $ 29,858,793 63.28% Sub Total Investments 0.29% Individual Management Account: $ 17,345,088 $ 17,330,058 36.72% Wells Capital Management 1.10% N/A $ 47,203,881 $ 47,188,851 100% Total Investments 0.58% 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. Sandi Van Etten, Senior Accountant 6/30/2009 Investment Report Summary Below is a chart summarizing the yields as well as terms and maturities for the month of June 2009. Avg. Portfolio Avg. Portfolio # of Avg. Term Month Yield Without Yield With Days to of Portfolio of 2009 Wells Capital Wells Capital Maturity in Days June 0.29% 0.58% 144 52 Below is a chart comparing operating fund interest for current and prior fiscal years. Actual Interest 06/30/08 06/30/09 Monthly, Operating Fund $ 614 $ 489 Year-to-Date, Operating Fund $28,823 $ 6,655 Budget 2007/2008 2008/2009 Interest Budget, Operating Fund, June YTD $86,000 $64,500 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 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 06/30/09 Annexation 9,256,503 19.60% Water Operating -5.70% Water R&R 2,048,767 4.34% Water Capital Projects 149,500 0.32% Restricted for Debt Service 1,453,657 3.08% COP Revenue Bond 2003 0 0.00% COP Revenue Bond 2008 21,513,330 45.54% Sewer Operating 1,450,534 3.07% Sewer R&R 371,271 0.79% Sewer Capital Projects 188,729 0.40% ID1 4,332,005 9.17% ID2 9,159,402 19.39% $47,235,913 100.00% ITEM NO. 3.1 AGENDA REPORT Meeting Date: August 11, 2009 Subject: Monthly Portfolio Reports for July 2009 ATTACHMENTS: YLWD Overview paagel.pdf =JCM1 Backup Material YLWD_SummaryPage2.pdf JCM2 Backup Material YLWD CashFlow 07 31 09 page 3.pdf !4CM3 Backup Material YLWD holdings page4.pdf JCM4 Backup Material Account Overview Yorba Linda Water District Account #18611500 Funding Date: 10/25/2005 Portfolio Statistics as of: 7/31/2009 Account Characteristics: Portfolio Yield to Maturity 1.02% Total Unrealized Gains/(Losses) - Current: 18,005 Total Net Realized Gains/(Losses) - Since Inception: 2,243 Total Long-Term Investments: - Total Short Duration Investments/Money Market Secs: 17,361,155 Total Market Value: 17,361,155 Total Number of Issues in the Portfolio: 25 MARKET DATA Overnight Fed Funds Rate: 0.00% 6-Month T-Bill Yield: 0.25% 12-Month T-Note Yield: 0.47% WELLS CAPITAL MANAGEMENT Portfolio Summary Report For the period : 07/01/09 to 07/31/09 Yorba Linda Water District 18611500 Portfolio Characteristics 0.35 Portfolio Breakdown 19.8% 0.30 Market Value: 17,361,155.04 Market Value % of Account Unrealized G /L: 18,005.45 7.3% Agency Discount Note 5,593,880.00 32.22% 0.20 Other 0.0% Certs of Deposit 500,000.00 2.88% Yield To Maturity: 1.02% 2.9% Commercial Paper 3,445,113.89 19.84% Portfolio Duration: 0.42 Years Fixed Rate 1,269,891.65 7.31% Fitch Ratings - Tertia rY Floating Rate 1,326,894.93 7.64% Avg. Days to Maturity: 171 Money Market Fund 2,192,733.44 12.63% Avg. Portfolio Credit Quality: Aa1 Pending_Cash 0.13 0.00% Treasury Obligation 1,025,352.00 5.91% US Agency Fixed Rate 2,007,289.00 11.56% Total 17,361,155.04 100.00% Market Data 07/31/09 06/30/09 Yields: 6 Month Treasury Bill: 0.25% 0.34% 2 Year Treasury Note: 1.11% 1.11% 5 Year Treasury Note: 2.51% 2.56% Fed Funds Target: 0-0.25% 0 - 0.25% Credit Quality* Effective Maturity Distribution 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. 0.35 P1 /MIG1/VMIG1 /A -1 19.8% 0.30 Aaa /AAA 49.7% Aa /AA 7.7% 0.25 A/A 7.3% Baa /BBB 0.0% 0.20 Other 0.0% Cash /Overnights 12.6% 0.15 Not Rated 2.9% 100.0% 0.10 * Moody's Ratings - Primary 0.05 S &P Ratings - Secondary Fitch Ratings - Tertia rY 000 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. YORBA LINDA WATER DISTRICT Statement of'Cash Flotics/Enrnings for Juli• 2009 I - Beginning Period Balances As of 6/3(1/2(109 Total Original Cost 17 270,931 + Net Amort/Accr to Date 59,127 =Adjusted Book Value: 17,330.058 + Accrued Interest Receivable 32,032 + Unrealized Gain/(Loss) 15,030 = Total Market Value Plus Accrued Interest 17,377,120 II: Period Income Earned + Ending Accrual 31,904 - Begininning Accrual (32,032) + Interest Received 14,221 - Interest Paid at Purchase (401) + Interest Received at Sale - = Interest Earned in Period 13,692 + (Anort)/Accr This Period 2,166 = Monthly Portfolio Income $ 15,858 + Contributions - - Withdrawals - + Realized Gain/(Loss) - - Fees Paid This Period (2,894) - Prior Period Unrealized Gain/Loss 15,030 + End Of Period Unrealized Gain/Loss 18,005 + Net Receipts/Deliveries in Kind 0.00 + Adjustments 0.00 = Net Change to the Portfolio 2,247 =Total Market Value Plus Accrued Interest 17,393,(159 III: End of Period Balances As of 7/31/2009 Total Original Cost 17.300,751 + Net Amort/Accr to Date 42,399 = Adjusted Book Value 17,343,150 + Accrued Interest Receivable 31,904 + Unrealized Gain/(Loss) 18,005 = Total Market Value Plus Accrued Interest 17,393,(159 Reconciliation DI ffirence: Wells Capital Management Holdings Report Securities Held as of: 7/31/09 on a Trade Date Basis Identifier Credit Ratings Par Value Security Description Moody's S &P Fitch I. Cash & Cash Equivalents (Original maturity of 90 days or less) Cash U.S. DOLLARS 0 PENDING CASH Money Mkt Securities Agency Discount Note Commercial Paper Yorba Linda Water District 18611500 Coupon Final Effective Days Duration Market Price Market Market Value Holdings as YTM at Maturity Maturity to Eff Value + Accrued Percentage of Purchase Maturity Interest Account or Reset 0 0 77619EVB3 P -1 A -1+ NR 500,000 ROMULUS FUNDING CORP 0.000 08/11/09 08/11/09 11 0.03 99.986 499,931 499,931 Money Market Fund 0.00 2.88% 0.61 VP7000038 NR NR NR 2,192,733 WFADV MONEY MKT TR #645 0.292 08/01 /09 1 0.00 100.000 2,192,733 2,193,726 12.63 % 0.29 Cash & Cash Equivalents Total 2,692,734 3 0.01 2,692,665 2,693,657 15.51% 0.35 II. Marketable Securities (Original maturity greater than 90 days) IIA: Short Term Securities (Remaining maturity of less than 365 days) Certificate of Deposit 25213JBK3 NR NR NR 500,000 DEXIA CREDIT LOCAL SA NY 1.060 01/04/10 01/04/10 157 0.43 100.000 500,000 500,348 2.88% 1.04% Corporate Securities Corporate Obligation Fixed Rate 073928W90 Aa3 A+ AA- 325,000 BEAR STEARNS CO INC 5.850 07/19/10 07/19/10 353 0.94 102.883 334,371 335,005 1.93% 2.30 285659AE8 A2 A A+ 300,000 ELECTRONIC DATA SYSTEMS 7.125 10/15/09 10/15/09 76 0.21 101.397 304,190 310,484 1.75% 2.12% 617446DX4 A2 A A 300,000 MORGAN STANLEY 8.000 06/15/10 06/15/10 319 0.84 103.975 311,925 314,991 1.80% 1.93 Floating Rate 402479BZ1 A2 A A 325,000 GULF POWER -SR NT 0.704 06/28/10 06/28/10 332 0.16 100.153 325,497 325,726 1.87% 0.70% 89233P3D6 Aal AA+ NR 500,000 TOYOTA MOTOR CREDIT CORP 1.746 01/29/10 01/29/10 182 0.25 99.978 499,889 499,962 2.88% 1.75% 91159HGP9 Aa3 A+ AA- 500,000 US BANCORP 1.407 05/06/10 05/06/10 279 0.02 100.302 501,509 503,209 2.89% 1.41 Govt Securities Agency Discount Note 3133XU7L1 AGY AGY AGY 1,000,000 FHLB 0.550 07/20/10 07/20/10 354 0.97 99.938 999,375 999,543 5.76% 0.57% 313313MR6 AGY AGY AGY 1,000,000 FFCB 0.000 10/07/09 10/07/09 68 0.19 99.970 999,700 999,700 5.76% 2.00% 313385KS4 AGY AGY AGY 1,000,000 FHLB 0.000 08/21/09 08/21/09 21 0.06 100.000 1,000,000 1,000,000 5.76% 3.02% 313385RK4 AGY AGY AGY 800,000 FHLB 0.000 01/05/10 01/05/10 158 0.43 99.880 799,040 799,040 4.60% 0.82% 313385SB3 AGY AGY AGY 1,000,000 FHLB 0.000 01/21/10 01/21/10 174 0.48 99.870 998,700 998,700 5.75% 0.87% 313385WR3 AGY AGY AGY 1,000,000 FHLB 0.000 05/11/10 05/11/10 284 0.78 99.660 996,600 996,600 5.74% 0.55% 313397LZ2 AGY AGY AGY 800,000 FHLMC 0.000 09/21/09 09/21/09 52 0.14 99.980 799,840 799,840 4.61% 0.71 Treasury Obligation 912828DR8 TSY TSY TSY 1,000,000 UNITED STATES TREASURY 4.000 04/15/10 04/15/10 258 0.70 102.535 1,025,352 1,037,155 5.91% 0.59% Commercial Paper 06737HXM6 P -1 A -1+ NR 450,000 BARCLAYS US FUNDING LLC 0.000 10/21/09 10/21/09 82 0.22 99.936 449,714 449,714 2.59% 0.99% The above information is an estimate of certain investment calculations and does not represent your audited statement of record. Page: 1 of 2 Holdings Report Securities Held as of: 7/31/09 on a Trade Date Basis Identifier Credit Ratings Par Value Security Description Coupon Final 1.84% Yorba Linda Water District 09/10/10 406 Maturity Moody's S &P Fitch 1,013,593 5.81% 0.78% 13170RVS3 P -1 A -1+ F -1+ 500,000 CALYON NORTH AMERICA INC 0.000 08/26/09 4497WOZU5 P -1 A -1+ NR 500,000 ING (US) FUNDING LLC 0.000 12/28/09 64105HDG4 P -1 A -1+ NR 500,000 NESTLE CAP CORP DISC P/N 0.000 04/16/10 80281KAF4 P -1 A -1+ NR 500,000 SANTANDER CNTL HISPANO CPC 0.000 01/15/10 83365RYL3 P -1 A -1 NR 500,000 SOCIETE GENERALE N AMER CP 0.000 11/20/09 Short Term Securities Total: 13,300,000 Interest 116: Long -Term Securities (Remaining maturity greater than 365 days) or Reset 08/26/09 Corporate Securities 0.07 99.987 499,936 Fixed Rate 2.88% 1.11 12/28/09 38141GAZ7 Al A A+ 300,000 GOLDMAN SACHS GROUP INC 6.875 01/15/11 Govt Securities 2.88% 0.45% 04/16/10 US Agency Fixed Rate 0.71 99.630 498,151 3128X8QT2 AGY AGY AGY 1,000,000 FHLMC 1.450 09/10/10 Long Term Securities Total: 1,300,000 99.821 499,106 Marketable Securities Total: 14,600,000 0.51 11/20/09 Portfolio Total: 17,292,734 99.806 499,031 01/15/11 533 1.39 106.469 319,406 320,323 1.84% Yorba Linda Water District 09/10/10 406 1.09 100.791 1,007,914 1,013,593 5.81% 0.78% 437 18611500 Effective Days Duration Market Price Market Market Value Holdings as YTM at Maturity to Eff 171 0.42 Value + Accrued Percentage of Purchase Maturity Interest Account or Reset 08/26/09 26 0.07 99.987 499,936 499,936 2.88% 1.11 12/28/09 150 0.41 99.849 499,245 499,245 2.88% 0.45% 04/16/10 259 0.71 99.630 498,151 498,151 2.87% 0.48 01/15/10 168 0.46 99.821 499,106 499,106 2.87% 0.51 11/20/09 112 0.31 99.806 499,031 499,031 2.87% 0.56 179 0.43 13,341,170 13,365,486 76.84% 1.14% 01/15/11 533 1.39 106.469 319,406 320,323 1.84% 2.45% 09/10/10 406 1.09 100.791 1,007,914 1,013,593 5.81% 0.78% 437 1.17 1,327,320 1,333,916 7.65% 1.18% 202 0.50 14,668,490 14,699,402 84.49% 1.14 171 0.42 17,361,155 17,393,059 100.00% 1.02% The above information is an estimate of certain investment calculations and does not represent your audited statement of record. 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