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Home My WebLink About2010-02-17 - Finance-Accounting Committee Meeting Agenda Packet Yorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING Wednesday, February 17, 2010, 4:00 PM 1717 E Miraloma Ave, Placentia CA 92870 COMMITTEE STAFF Director John W. Summerfield, Chair Ken Vecchiarelli, General Manager Director Ric Collett Stephen Parker, Finance Director Cindy Navaroli, Interim 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. DISCUSSION ITEMS This portion of the agenda is for matters such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Committee members. This portion of the agenda may also include items for information only. 2.1. CalTrust Investment Alternative (Conference Call with Consultant) 2.2. Monthly Portfolio Reports for January 2010 2.3. Introduction of Stephen Parker, Newly Hired Finance Director 3. ACTION CALENDAR This portion of the agenda is for items where staff presentations and committee discussions are needed prior to formal committee action. 3.1. December Budget to Actual Results and FYE Projections Recommendation: That the Committee review, receive and file the December 2009 budget to actual results, cash flow and net revenue to debt service ratio projections through fiscal year end. 3.2. Monthly Investment Report for December 2009 Recommendation: That the Committee receive and file the Investment Report. 4. 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. 4.1. Proposed Calendar for FY 2010/11 Budget 4.2. Water Rate Study Update (Verbal Report) 4.3. Retirement Alternatives Survey 4.4. Future Agenda Items and Staff Tasks 5. ADJOURNMENT 5.1. The regular meeting of the Finance-Accounting Committee scheduled March 8, 2010 at 4:00 p.m. has been rescheduled to March 15, 2010 at 8:00 a.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. 2.2 AGENDA REPORT Meeting Date: February 17, 2010 Subject: Monthly Portfolio Reports for January 2010 ATTACHMENTS: Name: Dosciiption: a ype: Jan 2010 Pagel.pdf Backup-1 Backup Material Jan_2010_Page2.pdf Backup2 Backup Material Jan 2010 Page3.pdf Backup3 Backup Material Jan 2010 Page4.pdf Backup4 Backup Material Account Overview Yorba Linda Water District Account #18611500 Funding Date: 10/25/2005 Portfolio Statistics as of: 1/31/2010 Account Characteristics: Portfolio Yield to Maturity 0.68% Total Unrealized Gains/(Losses) - Current: 28,890 Total Net Realized Gains/(Losses) - Since Inception: 2,243 Total Long-Term Investments: - Total Short Duration Investments/Money Market Secs: 16,574,395 Total Market Value: 16,574,395 Total Number of Issues in the Portfolio: 26 MARKET DATA Overnight Fed Funds Rate: 0.00% 6-Month T-Bill Yield: 0.14% 12-Month T-Note Yield: 0.28% WELLS CAPITAL MANAGEMENT Portfolio Summary Report For the period : 01 /01 /10 to 01/31/10 Portfolio Characteristics Market Value: Unrealized G /L: Yield To Maturity: Portfolio Duration: Avg. Days to Maturity: Avg. Portfolio Credit Quality: Market Data Yields: 6 Month Treasury Bill: 2 Year Treasury Note: 5 Year Treasury Note: Fed Funds Target: Credit Quality* Yorba Linda Water District 18611500 Portfolio Breakdown 16,536,882.31 0.19% Market Value % of Account 28,890.32 Agency Discount Note 2,994,400.00 18.11% Commercial Paper 4,394,248.76 26.57% ° ° Fixed Rate 1,740,593.23 10.53% 0.47 Years Floating Rate 1,173,668.60 7.10% 0.16 Money Market Fund 2,211,059.11 13.37% 186 Pending_Cash 0.11 0.00% Aa2 Treasury Obligation 2,013,554.00 12.18% 0.08 US Agency Fixed Rate 2,009,358.50 12.15% S &P Ratings - Secondary Total 16, 536, 882.31 100.00% 01/31/10 12/31/09 0.14% 0.19% 0.81% 1.14% 2.32% 2.68% 0-0.25% 0 - 0.25% 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. V.3L P1 /MIG1/VMIG1 /A -1 26.6% 0.28 Aaa /AAA 42.4% Aa /AA 7.1% 0.24 A/A 10.5% Baa /BBB 0.0% 0.20 Other 0.0% 0.16 Cash /Overnights 13.4% Not Rated 0.0% 0.12 100.0% 0.08 * Moody's Ratings - Primary 0.04 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 Flows /Earnings for January 2010 I - Beginning Period Balances As of 12/31/2009 Total Original Cost 18,255,737 + Net Amort/Accr to Date (16,070) = Adjusted Book Value: 18,239,667 • Accrued Interest Receivable 49,003 • Unrealized Gain /(Loss) 19,898 = Total Market Value Plus Accrued Interest 14,613 + (Amort) /Accr This Period 18,308,568 IL• Period Income Earned As of 1/31/10 + Ending Accrual 37,513 - Begininning Accrual (49,003) + Interest Received 32,473 - Interest Paid at Purchase (6,371) + Interest Received at Sale - = Interest Earned in Period 14,613 + (Amort) /Accr This Period (4,831) = Monthly Portfolio Income - + Contributions - - Withdrawals (1,750,000) + Realized Gain /(Loss) - - Fees Paid This Period (2,947) - Prior Period Unrealized Gain /Loss (19,898) • End Of Period Unrealized Gain/Loss 28,890 • Net Receipts /Deliveries in Kind 0.00 • Adjustments 0.00 = Net Change to the Portfolio (1,748,786) =Total Market Value Plus Accrued Interest 16,574,395 III: End of Period Balances As of 1/31/10 Total Original Cost 16,547,382 + Net Amort/Accr to Date (39,390) = Adjusted Book Value 16,507,992 • Accrued Interest Receivable 37,513 • Unrealized Gain /(Loss) 28,890 = Total Market Value Plus Accrued Interest 16,574,395 Reconciliation Difference: - Wells Capital Management Holdings Report Yorba Linda Water District Securities Held as of: 1/31/10 on a Trade Date Basis 1861 1500 Identifier Credit Ratings Par Value Security Description 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 Moody's S &P Fitch I. Cash & Cash Equivalents (Original maturity of 90 days or less) Cash U.S. DOLLARS 0 PENDING CASH 0 0 0.00% Money Mkt Securities Agency Discount Note Commercial Paper 52952MD15 P -1 A -1 F -1 500,000 LEXINGTON PARKER CAP DISC F 0.000 04/01/10 04/01/10 60 0.17 99.946 499,728 499,728 3.02% 0.41 54600BC12 P -1 A -1+ NR 500,000 LOUIS DREYFUS CORP 0.000 03/01/10 03/01/10 29 0.08 99.985 499,926 499,926 3.02% 0.36% Money Market Fund VP7000038 NR NR NR 2,211,059 WFADV MONEY MKT TR #645 0.104 02/01/10 1 0.00 100.000 2,211,059 2,211,387 13.37% 0.10% Cash & Cash Equivalents' 3,211,059 15 0.04 3,210,714 3,211,042 19.42% 0.19% II. Marketable Securities (Original maturity greater than 90 days) IIA: Short Term Securities (Remaining maturity of less than 365 days) Certificates of Deposit 25213JBK3 NR NR F -1+ 500,000 DEXIA CREDIT LOCAL SA NY 1.060 01/04/10 01/04/10 4 0.01 100.000 500,000 502,606 2.74% 1.04% Corporate Securities Corporate Obligation Fixed Rate 073928W90 Aa3 A+ AA- 325,000 BEAR STEARNS CO INC 5.850 07/19/10 07/19/10 169 0.47 102.283 332,419 333,053 2.01% 2.30 38141GAZ7 Al A A+ 300,000 GOLDMAN SACHS GROUP INC 6.875 01/15/11 01/15/11 349 0.94 105.748 317,244 318,161 1.92% 2.45% 617446DX4 A2 A A 300,000 MORGAN STANLEY 8.000 06/15/10 06/15/10 135 0.38 102.535 307,604 310,670 1.86% 1.93% 68402LAE4 A2 A A 200,000 ORACLE CORP 5.000 01/15/11 01/15/11 349 0.94 103.779 207,559 208,003 1.26% 0.76% Floating Rate 402479BZ1 A2 A A 325,000 GULF POWER -SR NT 0.351 06/28/10 06/28/10 148 0.16 100.045 325,148 325,258 1.97% 0.35% 91159HGP9 Aa3 A+ AA- 500,000 USBANCORP 0.678 05/06/10 05/06/10 95 0.02 100.105 500,526 501,344 3.03% 0.68% Govt Securities Agency Discount Note 3128X8QT2 AGY AGY AGY 1,000,000 FHLMC 1.450 09/10/10 09/10/10 222 0.61 100.780 1,007,796 1,013,475 6.09% 0.78% 3133XU7L1 AGY AGY AGY 1,000,000 FHLB 0.550 07/20/10 07/20/10 170 0.47 100.156 1,001,563 1,001,731 6.06% 0.57% 313385WR3 AGY AGY AGY 1,000,000 FHLB 0.000 05/11/10 05/11/10 100 0.28 99.980 999,800 999,800 6.05% 0.55% 313589854 AGY AGY AGY 1,000,000 FNMA 0.000 12/01/10 12/01/10 304 0.84 99.740 997,400 997,400 6.03% 0.34% 313589U76 AGY AGY AGY 1,000,000 FNMA 0.000 12/27/10 12/27/10 330 0.91 99.720 997,200 997,200 6.03% 0.47% Treasury Obligation 912828DR8 TSY TSY TSY 1,000,000 UNITED STATES TREASURY 4.000 04/15/10 04/15/10 74 0.21 100.781 1,007,812 1,019,790 6.09% 0.59% Commercial Paper 06737JDK8 P -1 A -1+ NR 400,000 BARCLAYS US FUND CPDN 0.000 04/19/10 04/19/10 78 0.22 99.962 399,846 399,846 2.42% 0.50% 12619UG62 P -1 A -1 F -1+ 500,000 CRC FUNDING LLC CPDN 0.000 07/06/10 07/06/10 156 0.43 99.880 499,400 499,400 3.02% 0.30% 13170SJ71 P -1 A -1+ F -1+ 500,000 CALYON NORTH AMERICA INC 0.000 09/07/10 09/07/10 219 0.60 99.824 499,122 499,122 3.02% 0.40% 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: 1/31/10 on a Trade Date Basis Identifier Credit Ratings Par Value Security Description Coupon Final Market Value Holdings as YTM at Maturity Maturity Moody's S &P Fitch Value + Accrued Percentage of 17177MG63 P -1 A -1 F -1+ 500,000 CIESCO LP CPDN 0.000 07/06/10 64105HDG4 P -1 A -1+ F -1+ 500,000 NESTLE CAP CORP DISC P/N 0.000 04/16/10 80281 KJ32 P -1 A -1+ F -1+ 500,000 SANTANDER CNTL HISPANO CPC 0.000 09/03/10 90262DK87 P -1 A -1 NR 500,000 UBS FINANCE LLC DISC P/N 0.000 10/08/10 99.963 Short Term Securities Total 11,350,000 3.02% 0.48% 116: Long -Term Securities (Remaining maturity greater than 365 days) 215 0.59 Corporate Securities 499,138 499,138 3.02% Floating Rate 10/08/10 250 0.69 99.696 36962G2N3 Aa2 AA+ NR 350,000 GENERAL ELEC CAP CORP 0.343 08/15/11 Fixed Rate 0.50 11,396,664 11,420,480 026609AM9 Al AA AA- 250,000 AMERICAN HOME PRODUCTS 6.950 03/15/11 22237LPA4 A2 A A+ 300,000 COUNTRYWIDE FUNDING CORP 4.000 03/22/11 Treasury Obligation 408 1.07 106.546 266,366 912828KL3 TSY TSY TSY 1,000,000 UNITED STATES TREASURY 0.875 04/30/11 1.11 Long Term Securities Total: 1,900,000 313,701 1.87 % 2.26 Marketable Securities Total: 13,250,000 1.24 100.574 1,005,742 Portfolio Total: 16,461,059 0.50% Yorba Linda Water 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 07/06/10 156 0.43 99.759 498,794 498,794 3.02 % 0.30 04/16/10 75 0.21 99.963 499,815 499,815 3.02% 0.48% 09/03/10 215 0.59 99.828 499,138 499,138 3.02% 0.43 10/08/10 250 0.69 99.696 498,478 498,478 3.01% 0.58% 188 0.50 11,396,664 11,420,480 68.92% 0.66% 08/15/11 561 0.05 99.427 347,996 348,252 2.10% 0.34% 03/15/11 408 1.07 106.546 266,366 272,930 1.61% 6.95% 03/22/11 415 1.11 103.134 309,401 313,701 1.87 % 2.26 04/30/11 454 1.24 100.574 1,005,742 1,007,990 6.08% 0.50% 461 0.98 1,929,505 1,942,873 11.67% 1.65% 228 0.57 13,326,169 13,363,353 80.58% 0.80 186 0.47 16,536,882 16,574,395 100.00% 0.68 The above information is an estimate of certain investment calculations and does not represent your audited statement of record. Page: 2 of 2 ITEM NO. 3.1 AGENDA REPORT Meeting Date: February 17, 2010 Budgeted: N/A To: Finance-Accounting Committee Funding Source: N/A From: Ken Vecchiarelli, General Manager Presented By: Cindy Navaroli, Interim Finance Dept: Finance Director Reviewed by Legal: N/A Prepared By: Cindy Navaroli, Interim Finance CEQA Compliance: N/A Director Subject: December Budget to Actual Results and FYE Projections STAFF RECOMMENDATION: That the Committee review, receive and file the December 2009 budget to actual results, cash flow and net revenue to debt service ratio projections through fiscal year end. DISCUSSION: Attached are the mid-year budget to actual results for the Water Fund, Sewer Fund, and a combined summary of both funds. Overall, the District is on target with projections in both the Water and Sewer Funds. Major items to note on the year-to-date Water Fund financial statements are: . Operating Revenues jumped slightly ahead of last year at this time, from $10.49M in prior year to $10.57M in current year as of 12/31/09. . Variable expenses are approximately $100K lower than prior year, due to lower water purchases and associated lower energy costs. . Depreciation expense is approximately 15% higher than prior year due to higher fixed asset completions that will begin depreciation in the current year. . The remaining expenses and revenues are approximately in proportion to prior year and on target with budgeted projections. Also added is a column on the financial statements that projects year-end ending balances. These amounts were projected based on actual trends for the FY 09/10, with input from managers and the executive team. The District is actively working to decrease spending where possible, as reflected by the more favorable year-end projections. If the year ends as predicted, the District should have an ending debt service ratio in the Water Fund of approximately 133%, which is safely above the required 110%, and is slightly above bond counsel's recommendation of 130%. These projections are presented as an informational item to the Committee to follow the progress we are making internally on controlling costs to ensure we end the fiscal year with a favorable debt service ratio. Major items to note on the year-end cash flow projections are: . Variable water costs are projected to be approximately $400K lower than budgeted due to increased conservation and lower than expected energy costs. . Contractual services are estimated to be over budget by approximately $135K due to temporary services needed to fill the Director of Finance position for most of the fiscal year. . Material expenses are projected to be approximately $87K over budget due to a higher number of meter replacements, MXU's and other replacement parts. . Professional services are projected to end approximately $213K lower than budgeted due to the discontinuance of legislative services and lower than expected legal services. . Depreciation expense has been revised upward by $254K to reflect the increase in completed projects during the fiscal year that will need to be depreciated. . Interest earned is projected to be higher than expected by approximately $50K. Interest for Capital Projects was not originally budgeted for because that money is not expendable for general purposes, however, it is included on this projection because it may be included in the debt service ratio for the District's bond covenants. This amount is expected to end at approximately $100K. . Note that the Sewer Fund is on target with the original budget except for the interest income account, which has been revised upward by $5,000. PRIOR RELEVANT BOARD ACTION(S): On January 11, 2009 the Committee approved the November 2009 budget to actual results. The Committee asked that Staff prepare a cash flow projection and projected debt service ratio for FY 09/10. ATTACHMENTS: Name: Description: Type: Water December 2009.xls Water Fund Backup Material Sewer December 2009.xls Sewer Fund Backup Material Water Sewer.xls Water & Sewer Backup Material Debt service ratio projection (mid FY 10).pdf Debt Service Ratio Projection Backup Material Yorba Linda Water District Water Fund For the Six Months Ended December 31, 2009 FY 2010 % of Year-End Annual December Actual Annual Projection Budget 2009 YTD Budget 6/30/2010 Revenue (Operating): Water Revenue (Residential) $17,692,953 $1,000,050 $8,814,554 49.82% $ 17,692,953 (Restricted for Debt Service) - (177,985) (1,434,914) - Water Revenue (Commercial & Fire Det.) 1,680,500 94,967 883,114 52.55% 1,680,500 Water Revenue (Landscape/Irrigation) 3,654,419 196,912 1,936,753 53.00% 3,654,419 Other Operating Revenue 643,792 62,613 373,594 58.03% 629,417 Total Operating Revenue: 23,671,664 1,176,557 10,573,101 44.67% 23,657,289 Expenses (Operating): Variable Water Costs (G.W., Import & Power) 12,259,937 564,297 6,068,163 49.50% 11,846,661 Salary Related Expenses 6,538,008 472,135 2,714,376 41.52% 6,538,008 Supplies & Services: Communications 268,694 20,330 165,990 61.78% 310,042 Contractual Services 964,090 86,694 495,911 51.44% 1,098,398 Data Processing 116,148 16,496 21,804 18.77% 94,763 Dues & Memberships 30,068 16,460 21,185 70.46% 32,522 Fees & Permits 50,160 4,725 35,508 70.79% 53,000 Insurance 342,433 637 194,997 56.94% 294,203 Materials 427,424 63,060 258,664 60.52% 515,409 District Activities, Emp Recognition 13,832 1,246 1,866 13.49% 13,377 Maintenance 384,362 2,777 66,563 17.32% 221,340 Non-Capital Equipment 139,910 7,607 33,805 24.16% 102,560 Office Expense 66,775 2,557 13,559 20.31% 49,075 Professional Services 760,575 (112) 199,300 26.20% 546,937 Training 61,518 1,690 10,853 17.64% 54,793 Travel & Conferences 48,892 2,032 6,116 12.51% 29,750 Uncollectible Accounts 47,320 - 418 0.88% 38,857 Collection Agency Fee 3,185 - - 0.00% 1,365 Utilities 27,027 2,814 66,252 245.13% 140,000 Vehicle Equipment 279,683 14,473 155,625 55.64% 308,429 Supplies & Services Sub-Total 4,032,096 243,486 1,748,416 43.36% 3,904,820 Depreciation & Amortization 3,945,750 336,080 2,016,857 51.11% 4,200,000 Total Operating Expenses 26,775,791 1,615,998 12,547,812 46.86% 26,489,489 Operating Income (Loss) (3,104,127) (439,441) (1,974,711) 63.62% (2,832,200) Revenue (Non-Operating): Interest 500 4,546 26,372 5274.40% 50,000 Interest (Restricted for Capital Projects) - 7,986 50,591 100,000 Property Taxes 1,092,000 466,800 609,238 55.79% 1,092,000 Debt Service Income (through water revenue) - 177,985 1,434,914 Other Non-Operating Revenue 172,900 37,864 221,953 128.37% 455,500 Total Non-Operating Revenue: 1,265,400 695,181 2,343,068 185.16% 1,697,500 Expenses (Non-Operating): Interest on Long Term Debt (1,981,300) (161,612) (977,425) 49.33% (1,981,300) Job Closing Expense (40,000) 0.00°/ Other Expense (154,500) (67,696) (109,214) 70.69% (204,500) Total Non-Operating Expenses: (2,175,800) (229,308) (1,086,639) 120.02% (2,185,800) Non-Operating Income (Loss) (910,400) 465,873 1,256,429 190.71% (488,300) Total Income (Loss) $ (4,014,527) $ 26,432 $ (718,282) 17.89% $ (3,320,500) - Contributed Capital $ 190,962 $ 16,400 $ 171,870 90.00% $ 171,870 Yorba Linda Water District Sewer Fund For the Six Months Ended December 31, 2009 FY 2010 % of Year-End Annual December Actual Annual Projection Budget 2009 YTD Budget 6/30/2010 Revenue (Operating): Sewer Charge Revenue $1,160,000 $59,979 $592,925 51.11% $1,160,000 Locke Ranch Assessments 116,000 46,631 59,402 51.21 % $116,000 Other Operating Revenue 5,100 261 1,652 32.39% $5,100 Total Operating Revenue: 1,281,100 106,871 653,979 134.72% 1,281,100 Expenses (Operating): Salary Related Expenses 817,041 63,629 360,741 44.15% 811,325 Supplies & Services: Communications 26,654 2,011 16,626 62.38% 30,744 Contractual Services 137,255 18,901 79,603 58.00% 152,846 Data Processing 11,487 1,632 2,157 18.78% 9,372 Dues & Memberships 3,360 1,760 2,219 66.04% 3,603 Fees & Permits 6,040 1,239 3,389 56.11% 5,688 Insurance 33,867 63 19,285 56.94% 29,097 Materials 21,301 612 8,623 40.48% 19,293 District Activities 1,368 123 184 13.45% 1,323 Maintenance 29,789 131 6,060 20.34% 29,023 Non-Capital Equipment 18,631 2,069 3,470 18.62% 14,606 Office Expense 9,550 173 1,114 11.66% 4,720 Professional Services 77,925 (11) 19,830 25.45% 56,391 Training 8,632 147 1,086 12.58% 8,087 Travel & Conferences 6,893 201 643 9.33% 5,000 Uncollectible Accounts 4,680 - - 0.00% 3,843 Collection Agency Fee 315 - - 0.00% 135 Utilities 2,673 4,965 6,552 245.12% 9,333 Vehicle Equipment 47,068 1,726 18,246 38.77% 57,103 Supplies & Services Sub-Total 447,488 35,742 189,087 42.26% 440,207 Depreciation & Amortization 595,050 47,602 285,612 48.00% 595,050 Total Operating Expenses 1,859,579 146,973 835,440 134.41% 1,846,582 Operating Income (Loss) (578,479) (40,102) (181,462) 31.37% (565,482) Revenue (Non-Operating): Interest 7,000 1,228 5,930 84.71% 12,000 Interest (Restricted for Capital Projects) - 155 913 Property Taxes 108,000 - - 0.00% 108,000 Other Non-Operating Revenue 12,600 (821) (508) 4.03% 12,600 Total Non-Operating Revenue: 127,600 562 6,335 80.68% 132,600 Expenses (Non-Operating): Job Closing Expense (5,000) - - 0.00% (5,000) Other Expense (2,300) (293) (1,424) 61.91% (2,300) Total Non-Operating Expenses: (7,300) (293) (1,424) 61.91% (7,300) Non-Operating Income (Loss) 120,300 269 4,911 173.96% 125,300 Total Income (Loss) $ (458,179) $ (39,833) (176,551) $ (440,182) Contributed Capital $74,240 $0 $46,967 63.26% Yorba Linda Water District Summary Financial Report Water & Sewer Funds For the Six Months Ended December 31, 2009 Annual % of Budget Actual Annual Budget FY 09/10 YTD through Amended Amended 10/21/09 December 31, 2009 10/21/09 Revenue (Operating): Water Revenue (Consumption & Flat Charge) $23,027,872 $11,634,421 50.52% (Restricted for Debt Service) - (1,434,914) 0.00% Sewer Revenue 1,276,000 652,327 51.12% Other 648,892 375,246 57.83% Total Operating Revenue: 24,952,764 11,227,080 44.99% Expenses (Operating): Variable Water Costs (G.W., Import & Power) 12,259,937 6,068,163 49.50% Salary Related Expenses 7,355,049 3,075,117 41.81% Supplies & Services 4,479,584 1,937,503 43.25% Depreciation & Amortization 4,540,800 2,302,469 50.71% Total Operating Expenses: 28,635,370 13,383,252 46.74% Operating Income (Loss) (3,68Z 606) (2,156,173) 58.55% Revenue (Non-Operating): Interest 7,500 32,302 430.69% Interest (Restricted for Capital Projects) - 51,504 0.00% Property Taxes 1,200,000 609,238 50.77% Debt Service Income (through water revenue) - 1,434,914 0.00% Other 185,500 221,445 119.38% Total Non-Operating Revenue: 1,393,000 2,349,403 168.66% Expenses (Non-Operating): Interest on Long Term Debt (1,981,300) (977,425) 49.33% Other Expense (201,800) (110,638) 54.83% Total Non-Operating Expenses: (2,183,100) (1,088,063) 49.84% Non-Operating Income (Loss) (790,100) 1,261,340 -159.64% Net Income (Loss) (4,472,706) (894,833) 20.01% Contributed Capital 265,202 218,837 82.52% Yorba Linda Water District FY 09/10 Projected Debt Service Ratio As of December 31, 2009 Projected 6/30/2010 Total Revenues $ 25,354,789 Operating Expenses Variable Water Costs $ 11,846,661 Personnel Services 6,538,008 Supplies & Services 3,904,820 Total Operating and Maintenance Expenses $ 22,289,489 Net Operating Revenues after O&M Costs $ 3,065,300 Non-Operating Expenses Other Expense $ (204,500) Net Revenues $ 2,860,800 Debt Obligations Total Debt Service (Principal + Interest) 2,727,833 Less Capitalized Interest (580,963) Total Debt Obligation $ 2,146,870 Net Revenues After Debt Obligation $ 713,930 Projected Debt Service Ratio 1.33 ITEM NO. 3.2 AGENDA REPORT Meeting Date: February 17, 2010 Budgeted: N/A To: Finance-Accounting Committee Funding Source: N/A From: Ken Vecchiarelli, General Manager Presented By: Cindy Navaroli, Interim Finance Dept: Finance Director Reviewed by Legal: N/A Prepared By: Sandi Van Etten, Senior CEQA Compliance: N/A Accountant Subject: Monthly Investment Report for December 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 December 2009 Monthly Investment Report for your review and approval. Staff will submit a Quarterly Investment Report ending December 31, 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 Reports for the quarters ending June 30 and September 30, 2009 were received and filed by the Board of Directors on December 23, 2009. ATTACHMENTS: Name: Description: Type: Invst Rpt 12-09.xls Investment Rpt Backup Material Agenda, 2-8_backup-Dec.doc Backup Backup Material Yorba Linda Water District Investment Portfolio Report December 31, 2009 Market % Percent Investment Maturity Value Cost of Total Institution Yield Date Date Cash & Checking Accounts: $ 567,689 $ 567,689 Wells Fargo Bank N/A 1,200 1,200 Imprest Cash $ 568,889 $ 568,889 1.42% Total 0.00% Money Market Accounts: $ 828,789 $ 828,789 Wells Fargo Money Market 0.29% N/A - - Wells Fargo MM/Annexation $ 828,789 $ 828,789 2.07% Total 0.29% $ 1,397,678 $ 1,397,678 3.49% Sub-total 0.17% California Asset Mgmt. Program: $ 5,099,230 $ 5,099,230 12.73% California Asset Mgmt. Program 0.25% N/A Money Market Account: $ 15,318,509 $ 15,318,509 US Bank 2008 Revenue Bond 0.30% 4 4 US Bank 2003 Revenue Bond 0.27% N/A $ 15,318,513 $ 15,318,513 38.24% 0.30% $ 21,815,421 $ 21,815,421 54.46% Sub Total Investments 0.28% Individual Management Account: $ 18,259,565 $ 18,239,667 45.54% Wells Capital Management 0.63% N/A $ 40,074,986 $ 40,055,088 100% Total Investments 0.44% 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. VOW F-462-X Sandi Van Etten, Senior Accountant 12/31/2009 Investment Report Summary Below is a chart summarizing the yields as well as terms and maturities for the month of December 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 December 0.28% 0.44% 122 54 Below is a chart comparing operating fund interest for current and prior fiscal years. Actual Interest 12/31/08 12/31/09 Monthly, Operating Fund $ 518 $ 3,724 Year-to-Date, Operating Fund $ 4,378 $ 20,411 Budget 2008/2009 2009/2010 Interest Budget, Operating Fund, December YTD $32,250 $3,750 Interest Budget, Operating Fund, Annual $64,500 $7,500 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 12/31/09 Annexation $4,603,409 11.47% Water Operating 4,225,349 10.53% Water R&R 2,056,052 5.12% Water Capital Projects 231,204 0.58% Restricted for Debt Service 1,067,211 2.66% COP Revenue Bond 2003 4 0.00% COP Revenue Bond 2008 15,318,509 38.18% Sewer Operating 1,294,523 3.23% Sewer R&R 463,119 1.15% Sewer Capital Projects 189,400 0.47% ID 1 3,173, 451 7.91% ID2 7,501,759 18.70% $40,123,990 100.00% ITEM NO. 4.1 AGENDA REPORT Meeting Date: February 17, 2010 Budgeted: N/A To: Finance-Accounting Committee Funding Source: N/A From: Ken Vecchiarelli, General Manager Presented By: Cindy Navaroli, Interim Finance Dept: Finance Director Reviewed by Legal: N/A Prepared By: Cindy Navaroli, Interim Finance CEQA Compliance: N/A Director Subject: Proposed Calendar for FY 2010/11 Budget SUMMARY: Staff is recommending a one year budget and has prepared a budget calendar for planning and identifying milestone objectives. DISCUSSION: Attached is the budget calendar for FY 2010/11. This schedule includes two complete reviews of budget components by each Board committee, as well as numerous managers meetings and Board workshops. This schedule will be updated as changes become necessary. ATTACHMENTS: Nance: Description: Type: Budget Calendar.pdf Budget Calendar Backup Material BUDGET CALENDAR FOR FISCAL YEAR 2010/11 DATE BOARD/COMMITTEE SCHEDULE FEBRUARY February 17, 2010 Finance-Accounting Committee Approval of the Budget Calendar February 23, 2010 Manager's Meeting Discuss Budget Calendar and Process February 25, 2010 Board of Directors Board Review of Budget Calendar MARCH March 8. 2010 Board Workshop Asset Management Program/Reserve Fund & Rate Discussion March 9, 2010 Manager's Meeting Personnel & Capital Budget Discussion March 23, 2010 Manager's Meeting Department Budgets (v 1.0) Complete and Submitted to Finance March - TBD Board Workshop - Revenue & Rates Operating Revenues (v 1.0), Reserve Fund Analysis (v 1.0) APRIL April 1, 2010 Planning-Engineering-Operations Committee Capital Improvement & Replacement Projects Budget (v 1.0) April 6, 2010 Public Information-Technology Committee IT & Public Information Budget (v 1.0) April 6, 2010 Manager's Meeting Encumbrances (v 1.0) April 12, 2010 Finance-Accounting Committee Operating & Non-operating expenses budget, (v 1.0) April 13, 2010 Personnel-Risk Mgmt Committee Labor and Benefits (v 1.0) April 20, 2010 Manager's Meeting Discussion of Committee Response to Budgets April - TBD Board Workshop - Revenue & Rates Operating Revenues (v 2.0). Reserve Fund Analysis (v 2.0) MAY May 4, 2010 Manager's Meeting Department Budgets (v 2.0). Encumbrances (v 2.0) May 4; 2010 Public Information-Technology Committee IT & Public Information Budget (v 2.0) May 6, 2010 Planning-Engineering-Operations Committee Capital Improvement & Replacement Projects Budget (v 2.0) May 11, 2010 Personnel-Risk Mgmt Committee Labor and Benefits (v 2.0) May 17, 2010 Finance-Accounting Committee Draft Budget Overview Discussion (v 1.0) May 18, 2010 Manager's Meeting Encumbrances (v 3.0) May - TBD Board of Directors Workshop Budget Workshop (Full Board) JUNE June 1; 2010 Manager's Meeting Budget Discussions/Revisions as Needed June 10; 2010 Board of Directors Draft Budget - Public Review June 15, 2010 Manager's Meeting Final Budget Discussions/Revisions as Needed June 24, 2010 Board of Directors Budget Adoption (Full Board) Finance-Adminstrative meeting moved to third Monday of the month to accommodate budget schedule ITEM NO. 4.3 AGENDA REPORT Meeting Date: February 17, 2010 Budgeted: N/A To: Finance-Accounting Committee Funding Source: N/A From: Ken Vecchiarelli, General Manager Presented By: Cindy Navaroli, Interim Finance Dept: Finance Director Reviewed by Legal: N/A Prepared By: Cindy Navaroli, Interim Finance CEQA Compliance: N/A Director Subject: Retirement Alternatives Survey DISCUSSION: In light of the economic challenges facing many governmental agencies, the Finance-Accounting Committee has discussed options to the current retirement plan offered to District employees. Staff sent a brief survey to local agencies to determine how they are adapting to these challenges, and what changes, if any, they have made (or anticipate making) to employee retirement plans. Of the 31 responding cities and water districts, six agencies are considering making a change to a two tiered retirement system for new employees. Another three agencies are considering increasing the percentage that the employee contributes to the retirement system. Of the 16 responding water districts, none of the agencies have made a change to the level of retirement benefits offered, and only two are considering a two tiered system in the future. However, one district did increase new employee contributions to the full CaIPERS employee rate (7%). Overall, the most common changes being considered are reducing spending across the board, hiring freezes, furloughs, and changes in employee benefits. Other anecdotal comments received indicated changes to retirement systems are not easily made and will not produce the immediate cost savings that are needed now, so are only being considered minimally. PRIOR RELEVANT BOARD ACTION(S): In previous committee meetings, staff was asked to conduct a survey of neighboring agencies to determine the extent that other agencies are considering modifications to their employee retirement plans.