HomeMy WebLinkAbout2010-05-17 - Finance-Accounting Committee Meeting Agenda Packet
Yorba Linda
Water District
AGENDA
YORBA LINDA WATER DISTRICT
FINANCE-ACCOUNTING COMMITTEE MEETING
Monday, May 17, 2010, 4:00 PM
1717 E Miraloma Ave, Placentia CA 92870
COMMITTEE STAFF
Director John W. Summerfield, Chair 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. Import Water Pass Through Rate Increase
Recommendation: That the Committee approve and support the adoption by the
Board of Directors of a MWD/MWDOC pass through water rate increase of $1.94
collected on the monthly Basic Service Charge, effective January 1, 2011.
2.2. Draft Financial Reserves Policy
Recommendation: That the Committee forward the draft financial reserves policy to
the Board of Directors for consideration.
2.3. March Budget to Actual Results
Recommendation: That the Committee review, receive and file the March 2010
budget to actual results.
2.4. Monthly Investment Report for March 2010
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. Budget Calendar and Progress Update
3.2. Monthly Portfolio Reports for March 2010
3.3. Future Agenda Items and Staff Tasks
4. ADJOURNMENT
4.1. The next regular meeting of the Finance-Accounting Committee will be held on June 14,
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: May 17, 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: Import Water Pass Through Rate Increase
SUMMARY:
YLWD purchases water from two sources, import water from the Metropolitan Water District of
Southern California (MWD), through its member agency Municipal Water District of Orange County
(MWDOC), and groundwater from the Orange County Water District (OCWD). For FY 2010/11,
MWDOC adopted a rate increase that passes through an MWD increase of approximately 7.5%. In
accordance with our Prop 218-compliant rate Resolution No. 07-17, the YLWD Board may opt to
pass through increases in the cost to purchase water and the power needed to pump the water
throughout our service area. Staff has calculated the impacts of the MWD/MWDOC rate increase
and has developed options for the Board to consider a pass through increase in our water rate due
to the rising cost of our import water supply.
STAFF RECOMMENDATION:
That the Committee approve and support the adoption by the Board of Directors of a
MWD/MWDOC pass through water rate increase of $1.94 collected on the monthly Basic Service
Charge, effective January 1, 2011.
DISCUSSION:
At the May 13 regular meeting, the Board discussed options for implementing a MWD/MWDOC
pass through rate increase to be included in the FY 2010/11 budget. The pass through options the
Board considered were the following:
A) Pass through increase effective July 1, 2010:
a) $0.03/unit increase; or
b) $0.97 increase to the monthly basic service charge
B) Pass through increase effective January 1, 2011:
a) $0.07/unit increase; or
b) $1.94 increase to the monthly basic service charge
The Board supported an increase of the monthly Basic Service Charge and requested that staff
evaluate an alternative rate ranging between the $.97 (Option A.b) and $1.94 (Option B.b), for
implementation on July 1, 2010.
Upon further analysis, staff has determined that this option does not satisfy the requirements for a
Prop 218 pass through. Section 53756(c) of the Government Code clearly states that wholesale
agency pass throughs must have been adopted. While MWDOC's rate for FY 2010/11 has been
adopted, a rate for FY 2011/12 has not been adopted. The alternative rate, which would equate to
$1.47 effective July 1, 2010, in order to meet both the current and projected future rate increase
from MWD, will result in more revenue collected in the 2010/11 fiscal year than the expenses that
will be incurred by the MWDOC-adopted rate increase.
As the alternative rate option would not qualify as a Prop 218 pass through, staff recommends the
Board adopt a $1.94 pass through rate increase on the monthly Basic Service Charge, effective
January 1, 2011.
PRIOR RELEVANT BOARD ACTION(S):
This item was discussed at the May 13th Board Meeting.
ATTACHMENTS:
Name: Description: Type:
Revised Agenda Report - Item No. 2.1.doc Revised Agenda Report Backup Material
REVISED ITEM NO. 2.1
AGENDA REPORT
Meeting Date: May 17, 2010 Budgeted: N/A
To: Finance-Accounting Funding Source: N/A
Committee
From: Ken Vecchiarelli,
General Manager
Presented By: Stephen Parker, Dept: Finance
Finance Director
Prepared By: Stephen Parker, CEQA N/A
Finance Director Compliance:
Subject: Import Water Pass Through Rate Increase - REVISED 05/17/2010
SUMMARY:
YLWD purchases water from two sources, import water from the Metropolitan Water District of
Southern California (MWD), through its member agency Municipal Water District of Orange
County (MWDOC), and groundwater from the Orange County Water District (OCWD). For FY
2010/11, MWD adopted a rate increase of approximately 7.5%, followed by another rate
increase of 7.5% for FY 2011/12. In accordance with our Prop 218-compliant rate Resolution
No. 07-17, the YLWD Board may opt to pass through increases in the cost to purchase water
and the power needed to pump the water throughout our service area. Staff has calculated the
impacts of the MWD rate increase and has developed options for the Board to consider a pass
through increase in our water rate due to the rising cost of our import water supply.
STAFF RECOMMENDATION:
That the Committee approve and support the adoption by the Board of Directors of a MWD
pass through water rate increase of $1.53 collected on the monthly Basic Service Charge,
effective August 1, 2010.
DISCUSSION:
At the May 13 regular meeting, the Board discussed options for implementing a MWD pass
through rate increase to be included in the FY 2010/11 budget. The pass through options the
Board considered were the following:
A) Pass through increase effective July 1, 2010:
a) $0.03/unit increase; or
b) $0.97 increase to the monthly basic service charge
B) Pass through increase effective January 1, 2011:
a) $0.07/unit increase; or
b) $1.94 increase to the monthly basic service charge
The Board supported an increase of the monthly Basic Service Charge and requested that
staff evaluate an alternative rate ranging between the $.97 (Option A.b) and $1.94 (Option
B.b), for implementation on July 1, 2010, that would cover the two-year rate increase adopted
by the MWD Board.
Government Code Section 53756(c) and (d) states:
(c) The schedule of fees or charges for an agency that purchases
wholesale water from a public agency may provide for automatic
adjustments that pass through the adopted increases or decreases in
the wholesale charges for water established by the other agency.
(d) Notice of any adjustment pursuant to the schedule shall be
given pursuant to subdivision (a) of Section 53755, not less than 30
days before the effective date of the adjustment.
Staff calculated that an increase of $1.53 in the monthly Basic Service Charge, effective
August 1, 2010, would cover the cost of service escalation due to MWD's two-year rate
increase. However, in order to satisfy the thirty-day notice required under Section 53756(d),
the Board must first adopt a rate increase and authorize staff to notify customers 30-days in
advance of implementing that increase. Should the Board adopt the rate increase on May 27,
staff would include a notice on the water bills through the regular billing cycles in June in order
to meet the August 1 st effective date.
PRIOR RELEVANT BOARD ACTION(S):
This item was discussed at the May 13th Board Meeting.
ITEM NO. 2.2
AGENDA REPORT
Meeting Date: May 17, 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: Draft Financial Reserves Policy
SUMMARY:
Adoption of a financial reserves policy is a critical component of responsible public governance.
This policy establishes written goals and objectives and provides guidelines for managing, funding
and use of the District's financial reserves. As the District recently completed its first comprehensive
Asset Management Plan, and has initiated the preparation of a rate study and 5-year financial plan,
the reserves policy is an important pillar in the overall financial planning process. Additionally, a
formal reserve policy demonstrates to the public, the District's stakeholders and credit rating
agencies that the District continues to manage its finances in a prudent and fiscally responsible
manner.
STAFF RECOMMENDATION:
That the Committee forward the draft financial reserves policy to the Board of Directors for
consideration.
DISCUSSION:
Attached for the Committee's review and comments is a draft financial reserves policy and a
spreadsheet showing where the current fund balances are for these reserves as of March 31, 2010
and propose changes to the balances projected through June 30, 2011. The policy contains various
reserve types along with funding target levels. The reserve types are listed in priority as
recommended by staff at this time.
The policy states that the Board would review the funding options and determine if any changes
should be made to the targets or the types of reserves on an annual basis. However, the Finance-
Accounting Committee would continue to review the current balances on a monthly basis with
review by the full Board on a quarterly basis.
With the revenue projections established for FY 2010/11, the attached reserves policy reflects a net
positive cash income and estimates what level the fund balance for each reserve type would be at
the end of FY 2010/11.
PRIOR RELEVANT BOARD ACTION(S):
At the April 12, 2010 Finance-Accounting meeting, Ms. Cindy Navaroli discussed various options for
funding reserves and those commonly established by other water districts. At the April 30, 2010
Board workshop, Ms. Navaroli made a presentation to the full Board on the various types of
reserves the District may want to consider and incorporate into a formalized policy.
ATTACHMENTS:
Name: IDes-r[ptian: o ype:
YLWD Draft Reserve Policy.doc Draft Reserves Policy Backup Material
Reserve policy schedule.xlsx Reserves Funding Projections Backup Material
RESERVE POLICY
A. GENERAL POLICY:
Maintaining adequate reserves is an essential part of sound financial management. The Yorba
Linda Water District Board of Directors realizes the importance of reserves in providing reliable
service to its customers, financing of long-term capital projects and funding availability for
emergencies should the need arise. Interest derived from reserve balances shall be credited to the
reserve account from which it was earned.
B. CATEGORIES:
YLWD shall accumulate, maintain and segregate its reserve funds into the following categories:
Restricted and Designated Reserves
1. Board Designated Reserves; and
2. Contractually Restricted Reserves.
C. SCOPE:
This policy will assist the Board of Directors in establishing:
1. Target levels for reserve funds;
2. Requirements for the use of reserve funds; and
3. Periodic review requirements for each reserve.
D. PERIODIC REVIEW:
Staff and the YLWD Board shall review the reserve balances and targets annually as a part of the
annual budget process. The Finance-Accounting Committee will continue to review all reserve
and investment balances monthly, with a quarterly report going to the full Board.
E. RESTRICTED AND DESIGNATED RESERVES:
1. Board Designated Reserves:
These are reserve funds earmarked for the purpose of funding such items as new capital
facilities, repair or replacement of existing facilities and general operating reserves designated
for a specific purpose and use by the Board of Directors.
1.0 Operating Reserve
A. Definition and Purpose - Established to cover temporary cash flow deficiencies that
occur as a result of timing differences between the receipt of operating revenue and
expenditure requirements and unexpected expenditures occurring as a result of doing
business.
Page 1 of 3
B. Target Level - The Governmental Accounting Standards Board (GASB) recommends
that funding should be one to two months (or 8% - 17%) of the District's annual
operating budget. The District's initial target will be a minimum of 5% and a
maximum of 8% of the annual operating budget for both the water and sewer funds.
C. Events or Conditions Prompting the Use of the Operating Reserve - This reserve may
be utilized as needed to pay outstanding operating expenditures prior to the receipt of
anticipated operating revenues.
1.1 Emergency Reserve
A. Definition and Purpose - Established to provide protection recovery to the District
and its customers for losses arising from an unplanned event or circumstance. The
reserve level combined with YLWD's existing insurance policies should adequately
protect YLWD and its customers in the event of a loss.
B. Target Level - Established at a minimum level equal to $1,000,000 for the water fund
and shall accumulate interest and annual contributions as determined by the District's
annual operation to a maximum level of $4,000,000. The target for sewer will be a
minimum of $250,000 and a maximum of $1,000,000. The sewer reserve is currently
being funded with $1 per customer per month out of the monthly service charge.
C. Events or Conditions Prompting the Use of the Emergency Reserve - This reserve
shall be utilized to cover unexpected losses experienced by the District as a result of a
disaster or other unexpected loss. Any reimbursement received by the District from
insurance companies as a result of a submitted claim shall be deposited back into the
reserve as replenishment for the loss.
1.2 Capital Replacement Reserve
A. Definition and Purpose - Established to provide capital repair and replacement
funding as the District's infrastructure deteriorates over its expected useful life.
B. Target Level - Funding shall be determined at the end of each fiscal year by the
available funds remaining based on the District's operations as presented in the
audited financial statements. The Board approved Asset Management Plan
recommends that the annual contribution to this reserve be at a minimum level of
$1,820,000 for the water fund and $345,000 for the sewer fund.
C. Events or Conditions Prompting the Use of the Capital Replacement Reserve -
Through the annual budget process, staff shall recommend anticipated asset
replacement projects. The Board of Directors shall take action to approve
recommended project appropriations from the replacement reserve fund. Should
emergency replacement be necessary during any fiscal year, the Board of Directors
may take action to amend the budget and appropriate needed funds as required by
such emergency.
Page 2 of 3
2. Contractually Restricted Reserves:
These are funds held to satisfy limitations set by external requirements established by creditors,
grant agencies or law. Examples include stipulated bond covenants and reserves held with a
fiscal agent.
2.0 US Bank 2008 COP Reserve
A. Definition and Purpose - Established to cover reserve requirements held with a
designated fiscal agent (US Bank) for the 2008 Certificates of Participation.
B. Target Level - Funding shall be held in an amount equal to $2,147,096.
C. Events or Conditions Prompting the Use of the Contractually Restricted Reserve -
This reserve may be utilized as needed by the fiscal agent to pay any outstanding debt
service payments not covered by the District within the specified billing and due
dates.
2.1 Employee Liabilities Reserve
A. Definition and Purpose - The purpose is to cover employees' accrued vacation and
other compensatory time and to ensure the future funding associated with the long
term liability of health benefit coverage for employees whom have met the
requirements necessary for district paid health benefits at retirement. The accounting
pronouncement known as GASB No. 45 has required recognition of post retirement
benefit obligations as part of the financial records.
B. Target Level - The annual contribution will begin at $100,000 ($91,000 for water and
$9,000 for sewer) to be evaluated and/or adjusted annually thereafter based on an
analysis of current employees' vacation and sick time accrued and actuarial
determinations of future retiree costs. The actuary that reviewed the District's Other
Post Employment Benefit (OPEB) costs determined the unfunded accrued liability
was $1,740,127. When combined with a liability on the District's books for vacation,
compensatory and sick time of $491,968 at June 30, 2009, the target is projected to be
approximately $2,200,000 for the combined water and sewer enterprises.
C. Events or Conditions Prompting the Use of the Employee Liabilities Reserve - This
reserve may be used in the event that operating funds are not adequate to meet
vacation, compensatory and sick time paid out or retiree medical cost obligations
within the current year.
End of Policy Document
Page 3 of 3
I Total Designated Reserves I I $ 22,684,062 I
US Bank 2008 COP
To cover reserve requirements by fiscal agent
Water
Amount
$2,147,096
Projected Change
Projected Balance
Name
Use
Fund
as of 3/31/10
Ranee
as of 6/30/11
as of 6/30/11
Sewer
$
$9,000 annual contribution
$ 9,000
5 -8% of operating budget
Operating
To cover temporary cash flow deficiencies
Water
$ (699,849)
$1,375,048 - $2,200,077
$ 2,074,897
$ 1,375,048
5 -8% of operating budget
Sewer
$ 1,288,777
$89,775 - $143,641
$ (403,910)
$ 884,867
To provide protection for losses from
Water
$ 2,051,814
$1,000,000 - $4,000,000
$ (1,051,814)
$ 1,000,000
Emergency
an unplanned event
Sewer
$ 507,570
$250,000 - $1,000,000
$ 180,000
$ 687,570
Capital
To provide capital repair and replacement
Water
$ 19,346,740
$1,820,000 annual contribution
$ 269,059
$ 19,615,799
Sewer
$ 189,010
1 $345,000 annual contribution
$ 345,000
$ 534,010
funding
I Total Designated Reserves I I $ 22,684,062 I
US Bank 2008 COP
To cover reserve requirements by fiscal agent
Water
$ 2,147,096
$2,147,096
None needed
None needed
Employee Liabilities
To cover accrued vacation and sick
and retiree's health benefits
Water
$ -
$91,000 annual contribution
$ 91,000
$ 91,000
Sewer
$
$9,000 annual contribution
$ 9,000
$ 9,000
ITotal Restricted Reserves I 1 $ 2,147,096
ITEM NO. 2.3
AGENDA REPORT
Meeting Date: May 17, 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: March Budget to Actual Results
STAFF RECOMMENDATION:
That the Committee review, receive and file the March 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 68% of budgeted revenue,
compared to the prior year figure of 78% at this same time. The largest contributor of this lag
is due to additional conservation efforts, and unless those 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 $15.1 M, which is approximately 1.5M higher than at this time last year.
. Variable expenses are 61 % of budgeted expenses, whereas in the prior year, variable costs at
this time totaled 76%. 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 $420,000
lower than at this point last year despite the substantial 19% MWD increase on September 1.
. Depreciation expense is 15% 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
generally on target with budgeted projections.
PRIOR RELEVANT BOARD ACTION(S):
On April 12, 2010, the Committee reviewed, received and filed the February 2010 budget to actual
results.
ATTACHMENTS:
Name: Description: Type:
Water Sewer Mar 2010.xls Water & Sewer YTD March 2010 Backup Material
Water March 2010.xls Water YTD March 2010 Backup Material
Sewer March 2010.xls Sewer YTD March 2010 Backup Material
Yorba Linda Water District
Summary Financial Report
Water & Sewer Funds
For the Nine Months Ended March 31, 2010
Annual % of
Budget Actual Annual Budget
FY 09/10 YTD through Amended
Amended 10/21/09 March 31, 2010 10/21/09
Revenue (Operating):
Water Revenue (Consumption & Flat Charge) $23,027,872 $15,386,369 66.82%
(Restricted for Debt Service) - (1,779,819)
Sewer Revenue 1,276,000 889,129 69.68%
Other 648,892 585,416 90.22%
Total Operating Revenue: 24,952,764 15,081,095 67.57%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 12,259,937 7,490,744 61.10%
Salary Related Expenses 7,355,049 4,576,092 66.65%
Supplies & Services 4,479,584 2,589,329 57.80%
Depreciation & Amortization 4,540,800 3,451,063 76.00%
Total Operating Expenses: 28,635,370 18,107,228 63.23%
Operating Income (Loss) (3,68Z 606) (3,026,133) 82.17%
Revenue (Non-Operating):
Interest 7,500 54,675 729.00%
Interest (Restricted for Capital Projects) - 76,224
Property Taxes 1,200,000 732,739 61.06%
Debt Service Income (through water revenue) - 1,779,819
Other 185,500 346,285 186.68%
Total Non-Operating Revenue: 1,393,000 2,989,743 214.63%
Expenses (Non-Operating):
Interest on Long Term Debt (1,981,300) (1,462,262) 73.80%
Other Expense (201,800) (127,597) 63.23%
Total Non-Operating Expenses: (2,183,100) (1, 589, 859) 72.83%
Non-Operating Income (Loss) (790,100) 1,399,886
Net Income (Loss) (4,472,706) (1,626,247) 36.36%
Capital - Direct Labor - 326,109
Contributed Capital 265,202 291,405 109.88%
Yorba Linda Water District
Water Fund
For the Nine Months Ended March 31, 2010
FY 2010 % of
Annual March Actual Annual
Budget 2010 YTD Budget
Revenue (Operating):
Water Revenue (Residential) $17,692,953 $833,523 $11,893,871 67.22%
(Restricted for Debt Service) - (83,373) (1,779,819)
Water Revenue (Commercial & Fire Det.) 1,680,500 96,347 1,223,861 72.83°k
Water Revenue (Landscape/Irrigation) 3,654,419 44,032 2,268,637 62.08°k
Other Operating Revenue 643,792 30,307 515,558 80.080k
Total Operating Revenue: 23,671,664 920,836 14,122,108 67.18%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 12,259,937 578,874 7,490,744 61.10%
Salary Related Expenses 6,538,008 449,380 4,032,938 6531%
Supplies & Services:
Communications 268,694 12,828 223,193 83.07%
Contractual Services 964,090 35,566 664,353 6891%
Data Processing 116,148 4,046 65,006 55.97%
Dues & Memberships 30,068 (685) 26,081 86.74%
Fees & Permits 50,160 1,333 38,360 76.48%
Insurance 342,433 (10,679) 184,318 53.83%
Materials 427,424 41,124 353,846 82.79%
District Activities, Emp Recognition 13,832 22 1,971 14.25%
Maintenance 384,362 17,578 100,650 26.19%
Non-Capital Equipment 139,910 2,510 55,788 39.87%
Office Expense 66,775 5,253 23,442 35.11 %
Professional Services 760,575 29,132 273,375 35.94%
Training 61,518 1,779 24,656 40.08%
Travel & Conferences 48,892 124 8,912 18.23%
Uncollectible Accounts 47,320 418 0.88%
Collection Agency Fee 3,185 - 0.00%
Utilities 27,027 6,221 84,365 312.15%
Vehicle Equipment 279,683 12,747 198,529 70.98%
Supplies & Services Sub-Total 4,032,096 158,899 2,327,265 57.72%
Depreciation & Amortization 3,945,750 335,210 3,022,643 76.61%
Total Operating Expenses 26,775,791 1,522,363 16,873,590 63.02%
Operating Income (Loss) (3,104,127) (601,527) (2,751,482) 88.64%
Revenue (Non-Operating):
Interest 500 6,542 44,231 8846.20%
Interest (Restricted for Capital Projects) - 7,996 74,764
Property Taxes 1,092,000 60,751 732,739 67.10%
Debt Service Income (through water revenue) - 83,373 1,779,819
Other Non-Operating Revenue 172,900 25,721 348,811, 201.74%
Total Non-Operating Revenue: 1,265,400 184,383 2,980,365 235.53%
Expenses (Non-Operating):
Interest on Long Term Debt (1,981,300) (161,612) (1,462,262) 73.80%
Job Closing Expense (40,000) 0.00%
Other Expense (154,500) (6,551) (125,321) 81.11%1
Total Non-Operating Expenses: (2,175,800) (168,163) (1,587,581) 72.97°k
Non-Operating Income (Loss) (910,400) 16,220 1,392,784
Total Income (Loss) $ (4,014,527) $ (585,307) $ (1,358,698) 33.84%
Capital - Direct Labor $ $ 18,970 $ 237,348
Contributed Capital $ 190,962 $ 13,391 $ 207,511 108.67%
Yorba Linda Water District
Sewer Fund
For the Nine Months Ended March 31, 2010
FY 2010 % of
Annual March Actual Annual
Budget FY 2010 YTD Budget
Revenue (Operating):
Sewer Charge Revenue $1,160,000 $102,173 $889,129 76.65%
Locke Ranch Assessments 116,000 6,453 67,383 58.09%
Other Operating Revenue 5,100 261 2,475 48.53%
Total Operating Revenue: 1,281,100 108,887 958,987 74.86%
Expenses (Operating):
Salary Related Expenses 817,041 61,889 543,154 68.20%
Supplies & Services:
Communications 26,654 1,269 22,284 83.60%
Contractual Services 137,255 23,381 112,764 82.16%
Data Processing 11,487 400 6,429 55.97%
Dues & Memberships 3,360 (68) 2,703 80.45%
Fees & Permits 6,040 17 3,536 58.54%
Insurance 33,867 (1,056) 18,229 53.83%
Materials 21,301 345 10,635 49.93%
District Activities 1,368 2 195 14.25%
Maintenance 29,789 1,736 8,190 27.49%
Non-Capital Equipment 18,631 1,125 8,036 43.13%
Office Expense 9,550 519 2,091 21.90%
Professional Services 77,925 2,881 27,156 34.85%
Training 8,632 392 3,028 35.08%
Travel& Conferences 6,893 12 895 12.98%
Uncollectible Accounts 4,680 - - 0.00%
Collection Agency Fee 315 - - 0.00%
Utilities 2,673 615 8,344 312.16%
Vehicle Equipment 47,068 4,734 27,551 58.53%
Supplies & Services Sub-Total 447,488 36,304 262,064 58.56%
Depreciation & Amortization 595,050 47,601 428,420 72.00%
Total Operating Expenses 1,859,579 145,794 1,233,638 66.34%
Operating Income (Loss) (578,479) (36,907) (274,651) 47.48%
Revenue (Non-Operating):
Interest 7,000, 1,655 10,444 149.20%
Interest (Restricted for Capital Projects) 202 1,460
Property Taxes 108,000 - - 0.00%
Other Non-Operating Revenue 12,600 (1,377) (2,526) -20.05%
Total Non-Operating Revenue: 127,600 480 9,378 7.35%
Expenses (Non-Operating):
Job Closing Expense (5,000) - - 0.00%
Other Expense (2,300) (281) (2,276) 98.96%
Total Non-Operating Expenses: (7,300) (281) (2,276) 31.18%
Non-Operating Income (Loss) 120,300 199 7,102 5.90%
Total Income (Loss) $ (458,179) $ (36,708) $ (267,549)
Contributed Capital $ - $898 $14,075
Contributed Capital $74,240 $30,977 $83,894 113.00%
ITEM NO. 2.4
AGENDA REPORT
Meeting Date: May 17, 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 March 2010
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 March 2010 Monthly Investment Report for your review and approval. 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.
ATTACHMENTS:
Name: Description: Type:
Invst Rpt 3-10.xls Portfolio Rpt Backup Material
Yorba Linda Water District
Investment Portfolio Report
March 31, 2010
Market % Percent Investment Maturity
Value Cost of Total Institution Yield Date Date
Cash & Checking Accounts:
$ 159,025 $ 159,025 Wells Fargo Bank N/A
$ 159,025 $ 159,025 0.43% Total 0.00%
Money Market Accounts:
$ 579,378 $ 579,378 Wells Fargo Money Market 0.30% N/A
- - Wells Fargo MM/Annexation
$ 579,378 $ 579,378 1.58% Total 0.30%
$ 738,403 $ 738,403 2.01% Sub-total 0.30%
California Asset Mgmt. Program:
$ 5,101,661 $ 5,101,661 13.92% California Asset Mgmt. Program 0.17% N/A
Money Market Account:
$ 13,560,986 $ 13,560,986 US Bank 2008 Revenue Bond 0.20%
0 0 US Bank 2003 Revenue Bond 0.20% N/A
$ 13,560,986 $ 13,560,986 37.00% 0.20%
$ 19,401,050 $ 19,401,050 52.93% Sub Total Investments 0.20%
Individual Management Account:
$ 17,275,951 $ 17,255,202 47.07% Wells Capital Management 0.68% N/A
$ 36,677,001 $ 36,656,252 100% Total Investments 0.42%
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
3/31/2010
ITEM NO. 3.1
AGENDA REPORT
Meeting Date: May 17, 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 and Progress Update
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.
PRIOR RELEVANT BOARD ACTION(S):
At the April 12, 2010 Finance-Accounting Committee meeting, Staff presented an updated budget
calendar for planning and identifying milestone objectives.
ATTACHMENTS:
Narne: Description: V Ype:
Budget Calendar_05172010.pdf Budget Calendar Update 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 & 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
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)
pF 1 G 2919 MaRa eF's Mee4.., r. CRP,11Mh"""""1- (V 1 9)
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)
nr,r 122 2912 nn.,r.. geF's nnee n Rf QeFRFR ttee ReSpeR a to gHdge4"
April 30, 2010 Board Workshop - Revenue & Rates Operating Revenues (v 1.0), Reserve Fund Analysis (v 1.0)
/~"'rll~-cpr I- 9, 2919 PFep 219 Net ee Ma led (If "de4) (If I e&.d 4 I (.I1,.(4.P- RtheF 4h@R a ed pass thFE)Hghs) RGFeaSe MAY
May n 291 Ma Rager's f\ ee4 Rq Department B60gets (y 2 9)R""' ""bPa RG s (y 2 9)
May 4 291 R"I'Iir 1RfAr.M.Rt.9R Te GhR919gy COMM t4"" IT & R-'hl.r I^f9PM@t1 i" B6idgr4 (y 2.9)
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 nr^ft RHdget eR „ 1.9) Draft Reserve Policy
May 18, 291 nA
2 @Rager's Mee4 Rg ERRI (y 7 9)
ro
May 27, 2010 Board of Directors Draft Budget - Public Review; Draft Reserve Policy
t\yTIBID Reard of nlr. piers WerLshep Budget werkshep (R6'II Beard)
JUNE
HRe 1 2919 MaRag^r'" nn^^+.r... EHdget onI~-.~,P,z,~
June 10, 2010 Board of Directors Draft Bydge4 R , u Rey.e^ ° Budget Adoption (Full Board); Reserve Policy
HRe 15, 2919 nn-,..- geF's nn.,.,H.... CI""I RH" get n. L.r..-/R.-...I~L...~ N -.P&-d
June 24, 2010 Board of Directors Budget Adoption (Full Board) Q °^4 u^^r R (If needed)
Finance-Adminstrative meeting moved to third Monday of the month to accommodate budget schedule
ITEM NO. 3.2
AGENDA REPORT
Meeting Date: May 17, 2010
Subject: Monthly Portfolio Reports for March 2010
ATTACHMENTS:
Name: Dosciiption: a ype:
YLWD Overview Page 1.pdf March Portfiolio 1 Backup Material
YLWD_Summary Page 2Tpdf March Portfiolio 2 Backup Material
YLWD Cash Flow Page 3.pdf March Portfiolio 3 Backup Material
YLWD Holdings Page 4.pdf March Portfiolio 4 Backup Material
Account Overview
Yorba Linda Water District
Account #18611500
Funding Date: 10/25/2005
Portfolio Statistics as of: 3/31/2010
Account Characteristics:
Portfolio Yield to Maturity 0.68%
Total Unrealized Gains/(Losses) - Current: 20,750
Total Net Realized Gains/(Losses) - Since Inception: 2,243
Total Long-Term Investments: -
Total Short Duration Investments/Money Market Secs: 17,275,951
Total Market Value: 17,275,951
Total Number of Issues in the Portfolio: 29
MARKET DATA
Overnight Fed Funds Rate: 0.00%
6-Month T-Bill Yield: 0.23%
12-Month T-Note Yield: 0.38%
WELLS CAPITAL MANAGEMENT
Portfolio Summary Report
For the period : 03/01/10 to 03/31/10
Portfolio Characteristics
Market Value:
17,275,951.48
Unrealized G /L:
20,749.68
Yield To Maturity:
0.68%
Portfolio Duration:
0.39 Years
Avg. Days to Maturity:
152
Avg. Portfolio Credit Quality:
Aa1
Market Data
03/31/10
02/28/10
Yields:
22.6%
0.24
6 Month Treasury Bill:
0.23%
0.18%
2 Year Treasury Note:
1.02%
0.81%
5 Year Treasury Note:
2.54%
2.30%
Fed Funds Target:
0-0.25%
0 - 0.25%
Portfolio Breakdown
Agency Discount Note
Commercial Paper
Fixed Rate
Floating Rate
Money Market Fund
Pending_Cash
Treasury Obligation
US Agency Fixed Rate
Total
Credit Quality* Effective Maturity Distribution
Market Value
3,493,650.00
3, 896, 956.47
1,989,701.80
1,174,486.78
2,197,819.59
0.09
2, 005, 547.00
2,517,789.75
17,275,951.48
Yorba Linda Water District
18611500
% of Account
22.56%
11.52%
6.80%
12.72%
0.00%
11.61%
14.57%
100.00%
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.
0.28
P1 /MIG1/VMIG1 /A -1
22.6%
0.24
Aaa /AAA
46.4%
Aa /AA
8.3%
0.20
A/A
10.0%
Baa /BBB
0.0%
0.16
Other
0.0%
Cash /Overnights
12.7%
0.12
Not Rated
0.0%
100.0%
0.08
Moody's Ratings - Primary
0.04
S &P Ratings - Secondary
Fitch Ratings - Tertiary
000
Market Value
3,493,650.00
3, 896, 956.47
1,989,701.80
1,174,486.78
2,197,819.59
0.09
2, 005, 547.00
2,517,789.75
17,275,951.48
Yorba Linda Water District
18611500
% of Account
22.56%
11.52%
6.80%
12.72%
0.00%
11.61%
14.57%
100.00%
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
Slalemenl of Cash Flows/Garnit~gs fbr March 2010
I - Beginning Period Balances As of 2/28/2010
Total Original Cost 16,540,720
+ Net Amort/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
11: Period Income Earned
+ Ending Accrual 53,517
- Begininning Accrual (58,133)
+ Interest Received 22,302
- Interest Paid Lit Purchase -
+ Interest Received at Sale -
= Interest Earned in Period 17,686
+ (Amort)/Accr This Period (8,396)
= Monthly Portfolio Income $ 9,291
+ Contributions 750,000
- Withdrawals -
+ Realized Gain/(Loss) -
- Fees Paid This Period (2,745)
- Prior Period Unrealized Gain/Loss (26,020)
+ End Of Period Unrealized Gain/Loss 20,750
+ Net Receipts/Deliveries in Kind 0.00
+ Adjustments 0.00
= Net Change to the Portfolio 733,589
=Total Market Value Plus Accrued
Interest 17,329,468
Ill: End of Period Balances As of 3/31/10
Total Original Cost 17,310,714
+ Net Amort/Accr to Date (55,513)
Adjusted Book Value 17,255,202
+ Accrued Interest Receivable 53,517
+ Unrealized Gain/(Loss) 20,750
= Total Market Value Plus Accrued
Interest 17,329,468
Reconcilialion Di%kwncc. -
Wells Capital Management
Holdings Report
Securities Held as of: 3/31/10 on a Trade Date Basis
Identifier Credit Ratings
Par Value Security Description
Coupon
Final
Effective Days Duration Market Price Market
Market Value Holdings as YTM at
Maturity to Eff Value
+ Accrued Percentage of Purchase
Maturity
Maturity
Moody's
S &P
Fitch
15.62%
0.14%
2.30%
I. Cash & Cash Equivalents (Original
maturity of 90 days or less)
0.96
102.807
Cash
308,721
1.79%
2.26%
01/15/11
290
U.S. DOLLARS
104.688
314,065
0 PENDING CASH
1.82%
2.45%
Money Mkt Securities
76
0.21
101.432
304,295
311,362
Agency Discount Note
1.93%
01/15/11
290
0.77
103.418
Commercial Paper
208,948
1.20%
0.76%
06/28/10
89
52952MD15 P -1
A -1
F -1
500,000 LEXINGTON PARKER CAP DISC F
0.000
04/01/10
Money Market Fund
36
0.10
100.033
500,163
500,631
VP7000038 NR
NR
NR
2,197,820 WF ADV MONEY MKT TR #645
0.085
100.607
Cash & Cash Equivalents Total
1,006,917
2,697,820
0.78%
12/17/10
II. Marketable Securities (Original
maturity
greater than 90 days)
510,781
516,017
IIA: Short Term Securities (Remaining maturity of less than 365 days)
0.35%
07/20/10
Certificates of Deposit
0.30
100.094
1,000,938
1,002,022
5.79%
Corporate Securities
05/11/10
41
0.11
99.990
999,900
Corporate Obligation
5.79%
0.55%
01/18/11
293
0.80
Fixed Rate
498,450
498,450
2.89%
0.37%
12/01/10
026609AM9 Al
AA
AA-
250,000 AMERICAN HOME PRODUCTS
6.950
03/15/11
073928W90 Aa3
A+
AA-
325,000 BEAR STEARNS CO INC
5.850
07/19/10
22237LPA4 A2
A
A+
300,000 COUNTRYWIDE FUNDING CORP
4.000
03/22/11
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
0.388
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
0 0 0.00%
04/01/10 1 0.00
Yorba Linda Water District
499,997
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 1 0.00
99.999 499,997
499,997
2.89%
0.41%
04/01/10 1 0.00
100.000 2,197,820
2,197,978
12.72%
0.09%
1 0.00
2,697,817
2,697,975
15.62%
0.14%
03/15/11
349
0.94
106.064
265,160
265,932
1.53%
6.95%
07/19/10
110
0.30
101.443
329,690
333,493
1.91%
2.30%
03/22/11
356
0.96
102.807
308,421
308,721
1.79%
2.26%
01/15/11
290
0.77
104.688
314,065
318,419
1.82%
2.45%
06/15/10
76
0.21
101.432
304,295
311,362
1.76%
1.93%
01/15/11
290
0.77
103.418
206,836
208,948
1.20%
0.76%
06/28/10
89
0.25
100.037
325,121
325,132
1.88%
0.39%
05/06/10
36
0.10
100.033
500,163
500,631
2.90%
0.65%
09/10/10
163
0.44
100.607
1,006,071
1,006,917
5.82%
0.78%
12/17/10
261
0.70
102.156
510,781
516,017
2.96%
0.35%
07/20/10
111
0.30
100.094
1,000,938
1,002,022
5.79%
0.57%
05/11/10
41
0.11
99.990
999,900
999,900
5.79%
0.55%
01/18/11
293
0.80
99.690
498,450
498,450
2.89%
0.37%
12/01/10
245
0.67
99.780
997,800
997,800
5.78%
0.34%
12/27/10
271
0.74
99.750
997,500
997,500
5.77%
0.47%
04/15/10
15
0.04
100.145
1,001,445
1,019,907
5.80%
0.59%
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
Yorba Linda Water District
Securities Held as of: 3/31/10 on a Trade
Date Basis
18611500
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
06737JDK8 P -1 A -1+ NR
400,000 BARCLAYS US FUND CPDN
0.000
04/19/10
04/19/10
19
0.05
99.991
399,964
399,964
2.32%
0.50%
12619UG62 P -1 A -1 F -1+
500,000 CRC FUNDING LLC CPDN
0.000
07/06/10
07/06/10
97
0.27
99.940
499,701
499,701
2.89%
0.30%
13170SJ71 P -1 A -1+ F -1+
500,000 CALYON NORTH AMERICA INC
0.000
09/07/10
09/07/10
160
0.44
99.861
499,304
499,304
2.89%
0.40%
17177MG63 P -1 A -1 F -1+
500,000 CIESCO LP CPDN
0.000
07/06/10
07/06/10
97
0.27
99.940
499,701
499,701
2.89%
0.30%
64105HDG4 P -1 A -1+ F -1+
500,000 NESTLE CAP CORP DISC P/N
0.000
04/16/10
04/16/10
16
0.04
99.996
499,978
499,978
2.89%
0.48%
80281KJ32 P -1 A -1+ F -1+
500,000 SANTANDER CNTL HISPANO CPC
0.000
09/03/10
09/03/10
156
0.43
99.867
499,333
499,333
2.89%
0.43%
90262DK87 P -1 A -1 NR
500,000 UBS FINANCE LLC DISC P/N
0.000
10/08/10
10/08/10
191
0.52
99.796
498,979
498,979
2.89%
0.58%
Short Term Securities Total
12,900,000
150
0.41
12,963,596
13,008,110
75.04%
0.80%
116: Long -Term Securities (Remaining maturity greater than 365 days)
Corporate Securities
Floating Rate
36962G2N3 Aa2 AA+ NR
350,000 GENERAL ELEC CAP CORP
0.320
08/15/11
08/15/11
502
0.12
99.772
349,203
349,340
2.02%
0.32%
Fixed Rate
892332AQO Aa1 AA A+
179,000 TOYOTA MOTOR CREDIT
5.450
05/18/11
05/18/11
413
1.08
104.494
187,044
190,648
1.08%
1.17%
892332AQO Aa1 AA A+
71,000 TOYOTA MOTOR CREDIT
5.450
05/18/11
05/18/11
413
1.08
104.494
74,190
75,620
0.43%
1.17%
Treasury Obligation
912828KL3 TSY TSY TSY
1,000,000 UNITED STATES TREASURY
0.875
04/30/11
04/30/11
395
1.07
100.410
1,004,102
1,007,776
5.81%
0.50%
Long Term Securities Total:
1,600,000
421
0.87
1,614,539
1,623,384
9.35%
0.57%
Marketable Securities Total:
14,500,000
180
0.46
14,578,135
14,631,493
84.38%
0.77%
Portfolio Total:
17,197,820
152
0.39
17,275,951
17,329,468
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