HomeMy WebLinkAbout2010-04-12 - Finance-Accounting Committee Meeting Agenda Packet
Yorba Linda
Water District
AGENDA
YORBA LINDA WATER DISTRICT
FINANCE-ACCOUNTING COMMITTEE MEETING
Monday, April 12, 2010, 4:00 PM
1717 E Miraloma Ave, Placentia CA 92870
COMMITTEE STAFF
Director Ric Collett Ken Vecchiarelli, General Manager
Director William R. Mills, Alternate Stephen Parker, Finance Director
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. Authorization to Invest in CalTRUST
Recommendation: That the Committee recommend the Board of Directors
authorize the transfer of funds from Wells Capital Management and the California
Asset Management Program into CaITRUST.
2.2. February Budget to Actual Results
Recommendation: That the Committee review, receive and file the February 2010
budget to actual results.
2.3. Monthly Investment Report for February
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 February
3.2. Budget Calendar Update and Progress Report
3.3. Preliminary 2011 Budget Numbers
3.4. Proposed Reserve Discussions/Policies
3.5. Future Agenda Items and Staff Tasks
4. ADJOURNMENT
4.1. The next regular meeting of the Finance-Accounting Committee scheduled May 10, 2010
has been rescheduled to May 17, 2010 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: April 12, 2010 Budgeted: N/A
To: Finance-Accounting Committee
Funding Source: N/A
From: Ken Vecchiarelli, General
Manager
Presented By: Stephen Parker, Finance Dept: Finance
Director
Reviewed by Legal: N/A
Prepared By: Stephen Parker, Finance CEQA Compliance: N/A
Director
Subject: Authorization to Invest in CaITRUST
SUMMARY:
Wells Capital Management and CaITRUST representatives have presented the Committee and the
Board with information regarding the CaITRUST investment options. Staff recommends using
CaITRUST as an alternative to investments currently in Wells Capital Management and the
California Asset Management Program. Staff intends to utilize separate accounts within CaITRUST
to improve accounting of designated and reserved funds and to improve investment returns by
matching term maturity options to the District's short-term and long-term cash flow needs.
STAFF RECOMMENDATION:
That the Committee recommend the Board of Directors authorize the transfer of funds from Wells
Capital Management and the California Asset Management Program into CaITRUST.
DISCUSSION:
Staff recommends initially establishing six separate accounts with CaITRUST; 1 money market
account, 3 short-term accounts and 2 medium-term accounts. The money market account would
hold funds needed for immediate cash flow purposes, but would yield a higher investment return
than money currently held in our checking account. The first short-term account would be used to
accrue funds transferred from monthly revenues and used for future debt service payments. The
other two short-term accounts would generally be used for water operating and sewer operating
money. The two medium-term accounts would generally hold water and sewer reserves for R&R
and capital project funds.
As of February 28, 2010, $5M is held in the California Asset Management Program in reserves
restricted for capital improvements. These investments are currently earning a yield of 19 basis
points. Since the funds are designated for the approved Capital Improvement Projects, the District
could utilize medium-term fund options through CaITRUST, which are currently earning close to 150
basis points. Similarly, the District has over $4M of reserves restricted for capital improvements
invested in Wells Capital earning 71 basis points, which could also be moved to a CaITRUST
medium-term fund. Other money currently held in Wells Capital investments and utilized for short-
term needs could be placed in short-term CalTRUST accounts and earn 58 basis points.
PRIOR RELEVANT BOARD ACTION(S):
The Finance-Accounting Committee spoke with Keith Khorey, Senior Relationship Manager of
Wells Capital Management regarding the CalTRUST program during the February 17, 2010
Committee meeting. They also participated in a conference call with Lyle Defenbaugh, Director of
Client Relations for CalTRUST during the same meeting. The District's investment policy was
revised to authorize investments in CalTRUST by the Board's approval of Resolution No. 10-03 on
March 11, 2010. Lyle Defenbaugh and Keith Khorey made a presentation on CalTRUST to the full
Board at the April 8th Board meeting.
ITEM NO. 2.2
AGENDA REPORT
Meeting Date: April 12, 2010 Budgeted: N/A
To: Finance-Accounting Committee
Funding Source: N/A
From: Ken Vecchiarelli, General
Manager
Presented By: Stephen Parker, Finance Dept: Finance
Director
Prepared By: Stephen Parker, Finance CEQA Compliance: N/A
Director
Subject: February Budget to Actual Results
STAFF RECOMMENDATION:
That the Committee review, receive and file the February 2010 budget to actual results.
DISCUSSION:
Attached are the budget to actual results for the Water Fund, Sewer Fund, and a summary of both
funds. Overall, the District is falling short on revenues and focusing strongly on balancing this factor
with tightening expenses. Major items to note are:
. Operating revenues are lagging as a percentage from prior year at around 63% of budgeted
revenue, compared to the prior year figure of 71 % at this same time. Since the new water rate
became effective in mid-September, staff anticipates that some of the difference will be made
up in the fourth quarter of the fiscal year. However, as a large portion of the variance is due to
additional conservation efforts, unless these efforts backtrack, we will end the year below our
budget revenues. Nonetheless, revenues as a total figure are higher in the current fiscal year,
with $14.1 M, which is approximately $600,000 higher than at this time last year.
. Variable expenses are 56% of budgeted expenses, whereas in the prior year, variable costs at
this time totaled 69%. This is due to lower water purchases based on customer conservation
and on a strategy implemented by staff to purchase higher percentages of import water in the
months of July and August, prior to the MWD rate increase implemented September 1, 2009.
Unless a change in the conservation effort occurs, we will end the year below budget on
variable expenses. In fact, due to lower water purchases, associated lower energy costs and
strategic optimization of import water purchases, variable expenses are almost $380,000
lower than at this point last year despite the substantial 19% MWD increase on September 1.
. Depreciation expense is 14% higher than the prior year due to fixed asset projects that have
been closed and have begun depreciation in the current year.
. The remaining expenses and revenues are approximately in proportion to prior years and are
on target with budgeted projections.
PRIOR RELEVANT BOARD ACTION(S):
On March 15, 2010, the Committee reviewed, received and filed the January 2010 budget to actual
results.
ATTACHMENTS:
!blame: Description: Type:
Sewer February 2010.xls Sewer Fund Backup Material
Water February 2010.xls Water YTD Feb 2010 Backup Material
Water Sewer Feb 2010.xls Water & Sewer YTD Feb 2010 Backup Material
Yorba Linda Water District
Sewer Fund
For the Eight Months Ended February 28, 2010
FY 2010 % of
Annual February Actual Annual
Budget FY 2010 YTD Budget
Revenue (Operating):
Sewer Charge Revenue $1,160,000 $94,544 $786,956 67.84%
Locke Ranch Assessments 116,000 - 60,930 52.53%
Other Operating Revenue 5,100 301 2,214 43.41%
Total Operating Revenue: 1,281,100 94,845 850,100 66.36%
Expenses (Operating):
Salary Related Expenses 817,041 58,988 481,264 58.90%
Supplies & Services:
Communications 26,654 2,406 21,015 78.84%
Contractual Services 137,255 3,483 89,383 65.12%
Data Processing 11,487 3,608 6,029 52.49%
Dues & Memberships 3,360 216 2,771 82.47%
Fees & Permits 6,040 14 3,519 58.26%
Insurance 33,867 - 19,285 56.94%
Materials 21,301 1,300 10,291 48.31%
District Activities 1,368 8 193 14.11%
Maintenance 29,789 231 6,454 21.67%
Non-Capital Equipment 18,631 2,183 6,911 37.09%
Office Expense 9,550 100 1,571 16.45%
Professional Services 77,925 2,774 24,276 31.15%
Training 8,632 256 2,636 30.54%
Travel & Conferences 6,893 230 883 12.81%
Uncollectible Accounts 4,680 - - 0.00%
Collection Agency Fee 315 - - 0.00%
Utilities 2,673 595 7,729 289.15%
Vehicle Equipment 47,068 1,669 22,816 48.47%
Supplies & Services Sub-Total 447,488 19,073 225,761 50.45%
Depreciation & Amortization 595,050 47,601 380,819 64.00%
Total Operating Expenses 1,859,579 125,662 1,087,844 58.50%
Operating Income (Loss) (578,479) (30,817) (237,744) 41.10%
Revenue (Non-Operating):
Interest 7,000 1,583 8,788 125.54%
Interest (Restricted for Capital Projects) - 194 1,258
Property Taxes 108,000 - - 0.00%
Other Non-Operating Revenue 12,600 (1,024) (1,149) -9.12%
Total Non-Operating Revenue: 127,600 753 8,897 6.97%
Expenses (Non-Operating):
Job Closing Expense (5,000) - - 0.00%
Other Expense (2,300) (301) (1,996) 86.78%
Total Non-Operating Expenses: (7,300) (301) (1,996) 27.34%
Non-Operating Income (Loss) 120,300 452 6,901 5.74%
Total Income (Loss) $ (458,179) $ (30,365) $ (230,843)
-
Contributed Capital $74,240 $52,917 71.28%
Yorba Linda Water District
Water Fund
For the Eight Months Ended Febuary 28, 2010
FY 2010 % of
Annual February Actual Annual
Budget 2010 YTD Budget
Revenue (Operating):
Water Revenue (Residential) $17,692,953 $919,021 $11,060,348 62.51%
(Restricted for Debt Service) - (100,845) (1,696,448)
Water Revenue (Commercial & Fire Det.) 1,680,500 107,207 1,127,514 67.09%
Water Revenue (Landscape/Irrigation) 3,654,419 97,719 2,224,605 60.87%
Other Operating Revenue 643,792 70,159 485,250 75.37%
Total Operating Revenue: 23,671,664 1,093,261 13,201,271 62.93%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 12,259,937 311,753 6,911,870 56.38%
Salary Related Expenses 6,538,008 410,993 3,583,558 5481%
Supplies & Services:
Communications 268,694 24,329 210,365 78.29%
Contractual Services 964,090 52,520 628,787 65.22%
Data Processing 116,148 36,482 60,960 52.48%
Dues & Memberships 30,068 2,185 26,766 89.02%
Fees & Permits 50,160 141 37,027 73.82%
Insurance 342,433 - 194,997 56.94%
Materials 427,424 37,030 312,722 73.16%
District Activities, Emp Recognition 13,832 82 1,949 14.09%
Maintenance 384,362 5,703 83,072 21.61%
Non-Capital Equipment 139,910 6,747 53,278 38.08%
Office Expense 66,775 1,008 18,189 27.24%
Professional Services 760,575 28,052 244,243 32.11%
Training 61,518 8,883 22,877 37.19%
Travel & Conferences 48,892 2,573 8,788 17.97%
Uncollectible Accounts 47,320 - 418 0.88%
Collection Agency Fee 3,185 - - 0.000/0
Utilities 27,027 6,017 78,144 289.13%
Vehicle Equipment 279,683 17,647 185,782 66.43%
Supplies & Services Sub-Total 4,032,096 229,399 2,168,364 53.78%
Depreciation & Amortization 3,945,750 335,172 2,687,357 68.11%
Total Operating Expenses 26,775,791 1,287,317 15,351,149 57.33%
Operating Income (Loss) (3,104,127) (194,056) (2,149,878) 69.26%
Revenue (Non-Operating):
Interest 500 6,186 37,689 7537.80%
Interest (Restricted for Capital Projects) - 8,420 66,768
Property Taxes 1,092,000 3,612 671,988 61.54%
Debt Service Income (through water revenue) - 100,845 1,696,446
Other Non-Operating Revenue 172,900 64,280 323,090, 186.87%
Total Non-Operating Revenue: 1,265,400 183,343 2,795,981 220.96%
Expenses (Non-Operating):
Interest on Long Term Debt (1,981,300) (161,612) (1,300,650) 65.65%
Job Closing Expense (40,000) 0.00%
Other Expense (154,500) (4,834) (118,770) 76.87%
Total Non-Operating Expenses: (2,175,800) (166,446) (1,419,418) 65.24%
Non-Operating Income (Loss) (910,400) 16,897 1,376,563
Total Income (Loss) $ (4,014,527) $ (177,159) $ (773,315) 19.26%
-
Contributed Capital $ 190,962 $ 3,996 $ 194,120 101.65%
Yorba Linda Water District
Summary Financial Report
Water & Sewer Funds
For the Eight Months Ended February 28, 2010
Annual % of
Budget Actual Annual Budget
FY 09/10 YTD through Amended
Amended 10/21/09 February 28, 2010 10/21/09
Revenue (Operating):
Water Revenue (Consumption & Flat Charge) $23,027,872 $14,412,467 62.59%
(Restricted for Debt Service) - (1,696,448) 0.00%
Sewer Revenue 1,276,000 847,886 66.45%
Other 648,892 487,464 75.12%
Total Operating Revenue: 24,952,764 14,051,369 63.11%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 12,259,937 6,911,870 56.38%
Salary Related Expenses 7,355,049 4,064,822 55.27%
Supplies & Services 4,479,584 2,394,125 53.45%
Depreciation & Amortization 4,540,800 3,068,176 67.57%
Total Operating Expenses: 28,635,370 16,438,993 57.41%
Operating Income (Loss) (3,682,606) (2,387,622) 64.84%
Revenue (Non-Operating):
Interest 7,500 46,477 619.69%
Interest (Restricted for Capital Projects) - 68,026 0.00%
Property Taxes 1,200,000 671,988 56.00%
Debt Service Income (through water revenue) - 1,696,446 0.00%
Other 185,500 321,941 173.55%
Total Non-Operating Revenue: 1,393,000 2,804,877 201.36%
Expenses (Non-Operating):
Interest on Long Term Debt (1,981,300) (1,300,650) 65.65%
Other Expense (201,800) (130,531) 64.68%
Total Non-Operating Expenses: (2,183,100) (1,431,181) 65.56%
Non-Operating Income (Loss) (790,100) 1,383,464 -175.10%
Net Income (Loss) (4,472,706) (1,004,158) 22.45%
Contributed Capital 265,202 247,037 93.15%
ITEM NO. 2.3
AGENDA REPORT
Meeting Date: April 12, 2010 Budgeted: N/A
To: Finance-Accounting Committee
Funding Source: N/A
From: Ken Vecchiarelli, General
Manager
Presented By: Stephen Parker, 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 February
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 February 2010 Monthly Investment Report for your review and approval.
There are some changes in the format of this month's report to highlight the District's practice of
using designated funds to float the checking account and to show the anticipated consolidation of
Improvement District (ID) 1 and 2 reserve balances into a single Water Fund Reserve for Capital
Improvements. Staff will submit a Quarterly Investment Report ending March 31, 2010 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 December 31, 2009 was received and filed by the Board of Directors
on March 11, 2010. The Finance-Accounting Committee discussed the consolidation of the ID
Funds at their meeting on March 15, 2010.
ATTACHMENTS:
Name: Doscdption: u ype:
Invst Rpt 2-10 with ckg again.xls Portfolio Rpt Backup Material
Agenda, 4-12 backup-Feb-New.doc Backup Backup Material
Yorba Linda Water District
Investment Portfolio Report
February 28, 2010
Market % Percent Investment Maturity
Value Cost of Total Institution Yield Date Date
Cash & Checking Accounts:
$ 1,080,360 $ 1,080,360 2.86% 0.00%
Money Market Accounts:
$ 829,191 $ 829,191 Wells Fargo Money Market 0.29% N/A
- - Wells Fargo MM/Annexation
$ 829,191 $ 829,191 2.19% Total 0.29%
$ 1,909,551 $ 1,909,551 5.05% Sub-total 0.13%
California Asset Mgmt. Program:
$ 5,100,929 $ 5,100,929 13.48% California Asset Mgmt. Program 0.25% N/A
Money Market Account:
$ 14,326,734 $ 14,326,734 US Bank 2008 Revenue Bond 0.30%
4 4 US Bank 2003 Revenue Bond 0.27% N/A
$ 14,326,738 $ 14,326,738 37.87% 0.30%
$ 21,337,218 $ 21,337,218 56.40% Sub Total Investments 0.27%
Individual Management Account:
$ 16,520,060 $ 16,494,040 43.60% Wells Capital Management 0.63% N/A
$ 37,857,278 $ 37,831,258 100% Total Investments 0.43%
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.
uck: ya l uc 6A~
Sandi Van Etten, Senior Accountant
2/28/2010
Investment Report Summary
Below is a chart summarizing the yields as well as terms and maturities for the month of
February 2010:
Avg. Portfolio Avg. Portfolio # of Avg. Term
Month Yield Without Yield With Days to of Portfolio
of 2010 Wells Capital Wells Capital Maturity in Days
February 0.27% 0.47% 191 85
Below is a chart comparing operating fund interest for current and prior fiscal years.
Actual Interest 2/28/09 2/28/10
Monthly, Operating Fund $ 385 $ 5,176
Year-to-Date, Operating Fund $ 5,155 $ 29,980
Budget 2008/2009 2009/2010
Interest Budget, Operating Fund, February YTD $43,000 $5,000
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 2/28/10
Water Operating (768,782) -2.02%
Water R&R 2,051,083 5.38%
Water Capital Project Reserve 19,222,171 50.42%
Water Reserve for Debt Service 1,328,743 3.48%
COP Revenue Bond 2008 - Reserve 2,147,096 5.63%
COP Revenue Bond 2008 12,179,642 31.95%
Sewer Operating 1,284,896 3.37%
Sewer R&R 492,233 1.29%
Sewer Capital Projects 188,942 0.50%
$38,126,024 100.00%
Wells Fargo Bank Checking
Water Operating (218,547)
Sewer Operating 5( 0,199)
($268,746)
Total 37.857.278
ITEM NO. 3.1
AGENDA REPORT
Meeting Date: April 12, 2010
Subject: Monthly Portfolio Reports for February
ATTACHMENTS:
Name: Dosciiption: a ype:
YLWD Overview Pagel.pdf Feb Portfolio 1 Backup Material
YLWD_SummaryPage2.pdf Feb Portfolio 2 Backup Material
YLWD Cash FlowPage3.pdf Feb Portfolio 3 Backup Material
YLWD Holdings Page4.pdf Feb Portfolio 4 Backup Material
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 0.71%
Total Unrealized Gains/(Losses) - Current: 26,020
Total Net Realized Gains/(Losses) - Since Inception: 2,243
Total Long-Term Investments: -
Total Short Duration Investments/Money Market Secs: 16,520,060
Total Market Value: 16,520,060
Total Number of Issues in the Portfolio: 30
MARKET DATA
Overnight Fed Funds Rate: 0.00%
6-Month T-Bill Yield: 0.18%
12-Month T-Note Yield: 0.29%
WELLS CAPITAL MANAGEMENT
Portfolio Summary Report
For the period : 02/01/10 to 02/28/10
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
16,520,060.33
0.14%
Market Value
% of Account
26,019.69
Agency Discount Note
3,493,550.00
21.15%
Commercial Paper
4,396,027.36
26.61%
7 ° °
Fixed Rate
1,997,191.48
12.09%
0.49 Years
Floating Rate
1,172,784.53
7.10%
0.20
Money Market Fund
928,262.87
5.62%
188
Pending_Cash
0.09
0.00%
Aa2
Treasury Obligation
2,010,430.00
12.17%
0.10
US Agency Fixed Rate
2,521,814.00
15.27%
S &P Ratings - Secondary
Total
16,520,060.33
100.00%
02/28/10 01/31/10
0.17%
0.14%
0.80%
0.83%
2.28%
2.35%
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.
UAU
P1 /MIG1/VMIG1 /A -1
26.6%
0.35
Aaa /AAA
48.6%
Aa /AA
8.7%
0.30
A/A
10.5%
Baa /BBB
0.0%
0.25
Other
0.0%
0.20
Cash /Overnights
5.6%
Not Rated
0.0%
0.15
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 Flows/Earnings An- February 2010
1- Beginning Period Balances As of 1/31/2010
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
11: Period Income Earned
+ Ending Accrual 58,133
- Begininning Accrual (37,513)
+ Interest Received 1,519
- Interest Paid at Purchase (5,192)
+ Interest Received at Sale -
= Interest Earned in Period 16,947
+ (Amort)/Accr This Period (7,290)
= Monthly Portfolio Income $ 9,657
+ Contributions -
- Withdrawals -
+ Realized Gain/(Loss) -
- Fees Paid This Period (2,988)
- Prior Period Unrealized Gain/Loss (28,890)
+ End Of Period Unrealized Gain/Loss 26,020
+ Net Receipts/Deliveries in Kind 0.00
+ Adjustments 0.00
= Net Change to the Portfolio (13,149)
=Total Market Value Plus Accrued
Interest 16,578,193
Ill: End of Period Balances As of 2/28/10
Total Original Cost 16,540,720
+ Net Arnort/Accr to Date (46,680)
= Adjusted Book Value 16,494,041
+ Accrued Interest Receivable 58,133
+ Unrealized Gain/(Loss) 26,020
= Total Market Value Plus Accrued
Interest 16,578,193
Reconciliation Di11~,rence. -
Wells Capital Management
Holdings Report
Securities Held as of: 2/28/10 on a Trade Date Basis
Identifier Credit Ratings
Par Value
Security Description
Coupon
Final
Market Value Holdings as YTM at
Maturity to Eff Value
+Accrued Percentage of Purchase
Maturity
Interest Account or Reset
3.03%
Maturity
Moody's
S &P
Fitch
928,339
5.62%
0.08%
9
I. Cash & Cash Equivalents (Original
maturity of 90 days or
less)
11.67%
0.24%
Cash
321
0.87
103.812
207,625
208,902
1.26%
U.S. DOLLARS
06/28/10
120
0
PENDING CASH
325,111
325,310
Money Mkt Securities
0.35%
05/06/10
67
0.19
100.073
500,365
Agency Discount Note
3.03%
0.65%
09/10/10
194
0.54
100.744
Commercial Paper
1,014,327
6.10%
0.78%
12/17/10
292
0.80
52952MD15 P -1
A -1
F -1
500,000
LEXINGTON PARKER CAP DISC F
0.000
04/01/10
54600BC12 P -1
A -1+
NR
500,000
LOUIS DREYFUS CORP
0.000
03/01/10
Money Market Fund
0.20
99.980
999,800
999,800
6.05%
0.55%
VP7000038 NR
NR
NR
928,263
WF ADV MONEY MKT TR #645
0.083
3.02%
Cash & Cash Equivalents
12/01/10
1,928,263
0.76
99.770
997,700
II. Marketable Securities (Original
maturity greater than 90
days)
12/27/10
302
11A: Short Term Securities (Remaining maturity of less than 365 days)
99.750
997,500
Certificates of Deposit
6.04%
0.47%
04/15/10
46
0.13
100.481
Corporate Securities
1,019,860
6.08%
0.59%
04/19/10
50
0.14
Corporate Obligation
399,902
399,902
2.42%
0.50%
Fixed Rate
073928W90 Aa3
A+
AA-
325,000
BEAR STEARNS CO INC
5.850
07/19/10
38141GAZ7 Al
A
A+
300,000
GOLDMAN SACHS GROUP INC
6.875
01/15/11
617446DX4 A2
A
A
300,000
MORGAN STANLEY
8.000
06/15/10
68402LAE4 A2
A
A
200,000
ORACLE CORP
5.000
01/15/11
Floating Rate
402479BZ1 A2
A
A
325,000
GULF POWER -SR NT
0.351
06/28/10
91159HGP9 Aa3
A+
AA-
500,000
US BANCORP
0.649
05/06/10
Govt Securities
Agency Discount Note
3128X8QT2 AGY
AGY
AGY
1,000,000
FHLMC
1.450
09/10/10
3133XNHZ5 AGY
AGY
AGY
500,000
FHLB
3.625
12/17/10
3133XU7L1 AGY
AGY
AGY
1,000,000
FHLB
0.550
07/20/10
313385WR3 AGY
AGY
AGY
1,000,000
FHLB
0.000
05/11/10
313588AT2 AGY
AGY
AGY
500,000
FNMA
0.000
01/18/11
313589R54 AGY
AGY
AGY
1,000,000
FNMA
0.000
12/01/10
3135891.76 AGY
AGY
AGY
1,000,000
FNMA
0.000
12/27/10
Treasury Obligation
912828DR8 TSY
TSY
TSY
1,000,000
UNITED STATES TREASURY
4.000
04/15/10
Commercial Paper
06737JDK8 P -1
A -1+
NR
400,000
BARCLAYS US FUND CPDN
0.000
04/19/10
0 0 0.00%
04/01/10 32
Yorba Linda Water District
99.971 499,856
18611500
Effective Days Duration Market Price Market
Market Value Holdings as YTM at
Maturity to Eff Value
+Accrued Percentage of Purchase
Maturity
Interest Account or Reset
0 0 0.00%
04/01/10 32
0.09
99.971 499,856
499,856
3.03%
0.41%
03/01/10 1
0.01
99.999 499,995
499,995
3.03%
0.36%
03/01/10 1
0.00
100.000 928,263
928,339
5.62%
0.08%
9
0.03
1,928,114
1,928,190
11.67%
0.24%
07/19/10
141
0.40
101.851
331,014
333,232
2.00%
2.30%
01/15/11
321
0.87
105.083
315,250
317,885
1.91%
2.45%
06/15/10
107
0.30
102.098
306,294
311,361
1.85%
1.93%
01/15/11
321
0.87
103.812
207,625
208,902
1.26%
0.76%
06/28/10
120
0.08
100.034
325,111
325,310
1.97%
0.35%
05/06/10
67
0.19
100.073
500,365
500,554
3.03%
0.65%
09/10/10
194
0.54
100.744
1,007,439
1,014,327
6.10%
0.78%
12/17/10
292
0.80
102.563
512,813
516,538
3.10%
0.35%
07/20/10
142
0.40
100.156
1,001,563
1,002,189
6.06%
0.57%
05/11/10
72
0.20
99.980
999,800
999,800
6.05%
0.55%
01/18/11
324
0.89
99.710
498,550
498,550
3.02%
0.37%
12/01/10
276
0.76
99.770
997,700
997,700
6.04%
0.34%
12/27/10
302
0.83
99.750
997,500
997,500
6.04%
0.47%
04/15/10
46
0.13
100.481
1,004,805
1,019,860
6.08%
0.59%
04/19/10
50
0.14
99.975
399,902
399,902
2.42%
0.50%
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: 2/28/10 on a Trade Date Basis
Identifier
533
Credit Ratings
Par Value Security Description
Coupon
Final
2.10%
0.32%
03/15/11
380
1.00
Maturity
265,314
Moody's S &P Fitch
Effective
Days
Duration
12619UG62
P -1
A -1 F -1+
500,000 CRC FUNDING LLC CPDN
0.000
07/06/10
13170SJ71
P -1
A -1+ F -1+
500,000 CALYON NORTH AMERICA INC
0.000
09/07/10
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
80281KJ32
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
0.40%
Short Term Securities Total
12,350,000
0.36
99.911
IIB: Long -Term Securities (Remaining maturity greater than 365 days)
499,554
3.02%
Corporate Securities
04/16/10
47
0.13
99.986
Floating Rate
499,929
3.03%
0.48%
09/03/10
187
36962G2N3
Aa2
AA+ NR
350,000 GENERAL ELEC CAP CORP
0.320
08/15/11
Fixed Rate
222
0.61
99.777
498,883
498,883
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
892332AQO
Aal
AA A+
71,000 TOYOTA MOTOR CREDIT
5.450
05/18/11
892332AQO
Aal
AA A+
179,000 TOYOTA MOTOR CREDIT
5.450
05/18/11
Treasury Obligation
912828KL3
TSY
TSY TSY
1,000,000 UNITED STATES TREASURY
0.875
04/30/11
Long Term Securities Total:
2,150,000
Marketable
Securities Total:
14,500,000
Portfolio Total:
16,428,263
08/15/11
533
0.21
99.231
347,309
Yorba Linda Water District
2.10%
0.32%
03/15/11
380
1.00
106.126
265,314
18611500
Effective
Days
Duration
Market Price
Market
Market Value
Holdings as
YTM at
Maturity
to Eff
05/18/11
444
Value
+Accrued
Percentage of
Purchase
0.45%
Maturity
05/18/11
444
1.18
Interest
Account
or Reset
07/06/10
128
0.36
99.911
499,554
499,554
3.02%
0.30%
09/07/10
191
0.53
99.834
499,169
499,169
3.02%
0.40%
07/06/10
128
0.36
99.911
499,554
499,554
3.02%
0.30%
04/16/10
47
0.13
99.986
499,929
499,929
3.03%
0.48%
09/03/10
187
0.52
99.837
499,186
499,186
3.02%
0.43%
10/08/10
222
0.61
99.777
498,883
498,883
3.02%
0.58%
172
0.47
12,402,004
12,439,885
75.07%
0.63%
08/15/11
533
0.21
99.231
347,309
347,350
2.10%
0.32%
03/15/11
380
1.00
106.126
265,314
273,326
1.61%
6.95%
03/22/11
387
1.04
102.999
308,998
314,298
1.87%
2.26%
05/18/11
444
1.18
105.079
74,606
75,713
0.45%
1.17%
05/18/11
444
1.18
105.079
188,091
190,882
1.14%
1.17%
04/30/11
426
1.17
100.563
1,005,625
1,008,550
6.09%
0.50%
434
0.98
2,189,943
2,210,118
13.26%
1.58%
211
0.55
14,591,947
14,650,003
88.33%
0.77%
188
0.49
16,520,060
16,578,193
100.00%
0.71%
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. 3.2
AGENDA REPORT
Meeting Date: April 12, 2010 Budgeted: N/A
To: Finance-Accounting Committee
Funding Source: N/A
From: Ken Vecchiarelli, General
Manager
Presented By: Stephen Parker, Finance Dept: Finance
Director
Prepared By: Stephen Parker, Finance CEQA Compliance: N/A
Director
Subject: Budget Calendar Update and Progress Report
SUMMARY:
At the March 15, 2010 Finance-Accounting Committee meeting, staff presented an updated budget
calendar for planning and identifying milestone objectives. Staff will present an update of this
calendar monthly until the budget has been completed and approved. The most recent revision
includes removal of a March Board workshop that was not necessary and addition of a specific date
for the April Board budget workshop.
DISCUSSION:
Attached is the calendar for the FY 2010/11 Budget presented last month with updated revisions
since then shown in red. Staff will continue to update the schedule as changes become necessary.
ATTACHMENTS:
Narne: Description: Type:
Budget Calendar 04122010.xls Budget Calendar Backup Material
BUDGET CALENDAR FOR FISCAL YEAR 2010/11
DATE BOARDICOMMITTEE 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 & 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
_Mar_,_4TSB ra as We ° s"^G~^ °id rue-& Rates Pte, ~s(u1 9) !?eser~<~ I u 1-AE~aJy~+s { 4)
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 30, 2010 Board Workshop - Revenue & Rates Operating Revenues (v-2 1.0), Reserve Fund Analysis (v2 1.0)
April 30, 2010 Prop. 218 Notice Mailed (If needed) (If increase needed & includes other than approved pass throughs)
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 2.0)
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) & Rate Hearing (If needed)
Finance-Adminstrative meeting moved to third Monday of the month to accommodate budget schedule
ITEM NO. 3.3
AGENDA REPORT
Meeting Date: April 12, 2010
Total Budget: $31,582,690
To: Finance-Accounting Committee Cost Estimate: $31,582,690
Funding Source: All Funds
From: Ken Vecchiarelli, General
Manager
Presented By: Stephen Parker, Finance Dept: Finance
Director
Reviewed by Legal: N/A
Prepared By: Stephen Parker, Finance CEQA Compliance: N/A
Director
Subject: Preliminary 2011 Budget Numbers
SUMMARY:
Presented for review and discussion is the preliminary FY 2010/11 budget revenues and expenses
for the District. This information is being presented to the Finance-Accounting Committee prior to a
Board workshop later this month.
DISCUSSION:
Staff has gathered information from every department including: supplies and services, human
resources and vehicle and capital equipment needs. Comparing the supplies and services total to
the FY 2009/10 budget, the current year's proposed expenses have decreased by 6.7%. Factoring
out two large expenses that hit this year's preliminary budget, an $80,000 Board Election expense
and a $100,000 CEQA study for the OCWD Annexation, expenses for supplies and services have
decreased by 10.7% from the 2009/10 budget. Similarly, vehicle and capital equipment outlays
decreased by 57% compared to the 2009/10 budget.
Preliminary salary-related expenses do not currently include any cost of living allowance but do
factor in potential step increases for merit and are up only 1.4% from 2009/10 budget numbers.
One of the largest increases in expenses is depreciation and amortization, which increased by over
$222,000, a 4.9% increase as capital projects relating to the 2008 bond issuance come on line and
begin depreciating.
The single largest increase in expense, however, relates to variable water costs, as Metropolitan
Water District of Southern California is anticipating an increase between 9.6% and 12.4%, effective
January 1, 2011. Assuming this increase is only 10%, variable water costs will be nearly $852,000
(6.9%) higher than the 2009/10 budget.
Operating revenues have decreased by 2.0% from the 2009/10 budget as a result of higher
conservation. In addition, the revenues do not yet reflect a pass-through rate increase that could
take effect January 1, when MWD's increase takes effect.
ATTACHMENTS:
Name: Description: Type:
Preliminary 2011 Budget Combined.xlsx Combined Backup Material
Preliminary 2011 Budget Water.xlsx Water Backup Material
Yorba Linda Water District
Water and Sewer Enterprise
(Prior Year Budget, Forecast & Current Year Budget)
Budget Forecast Budget
FY 2009/10 FY 2009/10 FY 2010/11
Revenue (Operating):
Water Revenue (Residential) $17,692,953 $17,692,953 $14,558,110
Water Revenue (Commercial & Fire Det.) 1,680,500 1,680,501 1,522,341
Water Revenue (Landscape/Irrigation) 3,654,419 3,654,420 3,578,738
Service Charges - - 2,901,614
Sewer Charge Revenue 1,160,000 1,160,000 1,112,574
Locke Ranch Assessments 116,000 116,000 102,828
Other Operating Revenue 586,892 587,517 607,240
Total Operating Revenue 24,890,764 24,891,391 24,383,445
Revenue (Non-Operating):
Interest 7,500 157,000 156,000
Investments 140,000 12,600 -
Property Taxes 1,200,000 1,200,000 1,206,000
Other Non-Operating Revenue 272,702 257,702 253,114
Total Non-Operating Revenue 1,620,202 1,627,302 1,615,114
Total Revenue 26,510,966 26,518,693 25,998,559
Expenses (Operating):
Depreciation & Amortization 4,540,800 4,540,800 4,762,951
Variable Water Costs (G.W., Import & Power) 12,259,937 11,846,661 13,111,766
Salary Related Expenses 7,355,049 7,288,420 7,457,241
Supplies & Services:
Communications 295,348 340,786 415,860
Contractual Services 1,101,345 1,251,244 1,038,485
Data Processing 127,635 104,135 120,435
Dues & Memberships 33,428 36,125 34,118
Fees & Permits 56,2OO 58,687 50,402
Board Election - - 80,000
Insurance 376,3OO 323,3OO 345,4OO
Materials 448,726 534,701 356,615
District Activities, Emp Recognition 15,200 14,7OO 12,8OO
Maintenance 414,150 250,363 427,2OO
Non-Capital Equipment 158,541 117,166 113,120
Office Expense 76,325 53,795 43,100
Professional Services 838,5OO 603,328 552,4OO
Training 70,150 62,880 51,050
Travel & Conferences 55,785 34,750 44,950
Uncollectible Accounts 52,OOO 42,7OO 50,500
Collection Agency Fee 3,5OO 1,500 3,OOO
Utilities 29,7OO 103,700 123,OOO
Vehicle Equipment 326,751 365,532 314,150
Supplies & Services Sub-Total 4,479,584 4,299,392 4,176,585
Total Operating Expenses 28,635,370 27,975,273 29,508,543
Expenses (Non-Operating):
Interest on Long Term Debt 1,981,300 1,981,300 1,940,954
Job Closing Expense 45,OOO 5,000 30,000
Other Expense 156,800 156,800 103,193
Total Non-Operating Expenses 2,183,100 2,143,100 2,074,147
Total Expenses 30,818,470 30,118,373 31,582,690
Income (Loss) (4.307.5041 (3.599.6801 (5.584.1311
Principle on Long Term Debt (825,OOO) (825,OOO) (855,OOO)
Vehicle & Capital Equipment (628,5OO) (828,711) (268,550)
Contributed Capital 100,000 510,000 145,860
Yorba Linda Water District
Water Enterprise
(Prior Year Budget, Forecast & Current Year Budget)
Budget Forecast Budget
FY 2009/10 FY 2009/10 FY 2010/11
Revenue (Operating):
Water Revenue (Residential) $17,692,953 $17,692,953 $14,558,110
Water Revenue (Commercial & Fire Det.) 1,680,500 1,680,501 1,522,341
Water Revenue(LandscapeArrigation) 3,654,419 3,654,420 3,578,738
Service Charges - - 2,901,614
Other Operating Revenue 583,792 584,417 574,108
Total Operating Revenue 23,611,664 23,612,291 23,134,911
Revenue (Non-Operating):
Interest 500 150,000 142,000
Investments 127,400 - -
Property Taxes 1,092,000 1,092,000 1,206,000
Other Non-Operating Revenue 205,462 190,462 227,668
Total Non-Operating Revenue 1,425,362 1,432,462 1,575,668
Total Revenue 25,037,026 25,044,753 24,710,579
Expenses (Operating):
Depreciation & Amortization 3,945,750 3,945,750 4,175,223
Variable Water Costs (G.W., Import & Power) 12,259,937 11,846,661 13,111,766
Salary Related Expenses 6,538,008 6,477,095 6,639,475
Supplies & Services:
Communications 268,694 310,042 376,576
Contractual Services 964,090 1,098,398 952,707
Data Processing 116,148 94,763 109,596
Dues & Memberships 30,068 32,522 30,778
Fees & Permits 50,160 52,999 44,020
Board Election - - 72,800
Insurance 342,433 294,203 314,314
Materials 427,424 515,409 337,766
District Activities, Emp Recognition 13,832 13,377 11,648
Maintenance 384,362 221,340 325,227
Non-Capital Equipment 139,910 102,560 92,611
Office Expense 66,775 49,075 39,221
Professional Services 760,575 546,937 485494
Training 61,518 54,793 45,735
Travel & Conferences 48,892 29,750 40,602
Uncollectible Accounts 47,320 38,857 45,955
Collection Agency Fee 3,185 1,365 2,730
Utilities 27,027 94,367 111,930
Vehicle Equipment 279,683 308,429 285,877
Supplies & Services Sub-Total 4,032,096 3,859,186 3,725,587
Total Operating Expenses 26,775,791 26,128,692 27,652,051
Expenses (Non-Operating):
Interest on Long Term Debt 1,981,300 1,981,300 1,940,954
Job Closing Expense 40,000 - 25,000
Other Expense 154,500 154,500 102,193
Total Non-Operating Expenses 2,175,800 2,135,800 2,068,147
Total Expenses 28,951,591 28,264,492 29,720,198
Income (Loss) (3.914.565) (3.219.739) (5.009.619)
Principle on Long Term Debt (825,000) (825,000) (855,000)
Vehicle & Capital Equipment (622,500) (622,500) (244,550)
Contributed Capital 91,000 501,000 92,807
ITEM NO. 3.4
AGENDA REPORT
Meeting Date: April 12, 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 Reserve Discussions/Policies
SUMMARY:
This staff report is presented to begin the discussions that will lead to a formal, Board-adopted
reserve policy.
DISCUSSION:
The Board has designated certain amounts of investments to reserve funds through the budget
process and has approved the investment designations at subsequent Finance-Accounting
meetings and Board meetings. The Board has not adopted a formally structured reserve policy by
specific resolution, however. It is common practice and sound financial policy for government
agencies such as the District to consider and formally adopt a reserve policy.
The intent of the attached document is to begin the discussions that will lead to a formal, Board-
adopted reserve policy. This policy is essential to restoring a positive financial standing in the bond
community and with District stakeholders. Additionally, the establishment of reserve funds can
provide a smoothing mechanism for yearly budget fluctuations that is more predictable and reliable
than a "pay as you go" methodology, and provide better assurance that the District will meet it's
debt covenants each year.
This staff report is presented as a discussion point to consider options in adopting a reserve policy.
The next step in the process is to conduct a Board workshop that would include this information, as
well as more detailed information about target reserve levels as well as sources and uses of each
reserve fund.
ATTACHMENTS:
Name: Description: Type: