HomeMy WebLinkAbout2010-07-12 - Finance-Accounting Committee Meeting Agenda Packet
Yorba Linda
Water District
AGENDA
YORBA LINDA WATER DISTRICT
FINANCE-ACCOUNTING COMMITTEE MEETING
Monday, July 12, 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
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. May Budget to Actual Results
Recommendation: That the Committee review, receive and file the May 2010
budget to actual results.
2.2. Monthly Investment Report for May 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. Monthly Portfolio Reports for May 2010
3.2. Future Agenda Items and Staff Tasks
4. ADJOURNMENT
4.1. The next regular meeting of the Finance-Accounting Committee will be held on August 9,
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: July 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: Delia Lugo, Senior Accountant CEQA Compliance: N/A
Subject: May Budget to Actual Results
STAFF RECOMMENDATION:
That the Committee review, receive and file the May 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 83% of budgeted revenue,
compared to the prior year figure of 101 % at this same time. The largest contributor of this lag
is due to additional conservation efforts, and we know we will end the year below our budget
revenues. As a result of those record conservation levels, revenues as a total figure are
$1,126,000 lower in the current fiscal year with $20.8M.
. Variable expenses are 78% of budgeted expenses, whereas in the prior year, variable costs at
this time totaled 88%. 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.
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 just under $200,000 lower than at this point last year
despite the substantial 19% MWD increase on September 1.
. Depreciation expense is 18% higher than the prior year due to fixed asset projects that have
been closed and have begun depreciation in the current year.
. Supplies and services are at 73% of budgeted levels, and should end the year well below
budget as a result of aggressive efforts by staff to limit expenditures in areas that are under
staff's control. These efforts will help contribute to a better bottom line than last year despite
lower revenues as a result of unprecedented conservation.
PRIOR RELEVANT BOARD ACTION(S):
On June 14, 2010, the Committee reviewed, received and filed the April 2010 budget to actual
results.
ATTACHMENTS:
!blame: Description: Type:
Water Sewer May 2010.xls Water Sewer May 2010 Backup Material
Water May 2010.xls Water May 2010 Backup Material
Sewer May 2010.xls Sewer May 2010 Backup Material
Yorba Linda Water District
Summary Financial Report
Water & Sewer Funds
For the Eleven Months Ended May 31, 2010
Annual % of
Budget Actual Annual Budget
FY 09/10 YTD through Amended
Amended 10/21/09 May 31, 2010 10/21/09
Revenue (Operating):
Water Revenue (Consumption & Flat Charge) $23,027,872 $18,948,450 82.28%
(Restricted for Debt Service) - (2,132,958)
Sewer Revenue 1,276,000 1,191,815 93.40%
Other 648,892 638,735 98.43%
Total Operating Revenue: 24,952,764 18,646,042 83.27%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 12,259,937 9,530,251 77.73%
Salary Related Expenses 7,355,049 5,815,538 79.07%
Supplies & Services 4,479,584 3,250,314 72.56%
Depreciation & Amortization 4,540,800 4,416,778 97.27%
Total Operating Expenses: 28, 635, 370 23, 012, 881 80.37%
Operating Income (Loss) (3,682,606) (4,366,839) 118.58%
Revenue (Non-Operating):
Interest and Investments 127,900 145,577 113.82%
Property Taxes 1,200,000 1,132,443 94.37%
Debt Service Income (through water revenue) - 2,132,958
Other 185,500 368,089 198.43%
Total Non-Operating Revenue: 1,513,400 3,779,067 249.71%
Expenses (Non-Operating):
Interest on Long Term Debt (1,981,300) (1,789,887) 90.34%
Other Expense (201,800) (133,440) 66.12%
Total Non-Operating Expenses: (2,183,100) (1,923,327) 88.10%
Non-Operating Income (Loss) (669,700) 1,855,740
Net Income (Loss) (4,352,306) (2,511,099) 57.70%
Contributed Capital 265,202 339,154 127.89%
Capital - Direct Labor (413,882)
Yorba Linda Water District
Water Fund
For the Eleven Months Ended May 31, 2010
FY 2010 % of
Annual May Actual Annual
Budget 2010 YTD Budget
Revenue (Operating):
Water Revenue (Residential) $17,692,953 $1,330,475 $14,663,477 82.88%
(Restricted for Debt Service) - (172,199) (2,132,958) 0.00%
Water Revenue (Commercial & Fire Det.) 1,680,500 142,507 $1,519,269 90.41%
Water Revenue (Landscape/Irrigation) 3,654,419 270,429 $2,765,704 75.68%
Other Operating Revenue 643,792 33,544 $635,738 98.75%
Total Operating Revenue: 23,671,664 1,604,756 17,451,230 82.73%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 12,259,937 1,070,989 9,530,251 77.73%
Salary Related Expenses 6,538,008 455,350 5,108,291 78.13%
Supplies & Services:
Communications 268,694 20,471 256,685 95.53%
Contractual Services 964,090 67,666 874,688 90.73%
Data Processing 116,148 11,032 81,018 69.75%
Dues & Memberships 30,068 816 27,230 90.56%
Fees & Permits 50,160 3,309 54,606 108.86%
Insurance 342,433 - 184,318 53.83%
Materials 427,424 30,007 447,948 104.80%
District Activities, Emp Recognition 13,832 616 3,067 22.17%
Maintenance 384,362 1,558 128,242 33.36%
Non-Capital Equipment 139,910 16,527 89,994 64.32%
Office Expense 66,775 1,911 27,308 40.90%
Professional Services 763,760 38,016 362,844 47.51%
Training 61,518 2,404 30,721 49.94%
Travel & Conferences 48,892 2,647 13,745 28.11%
Uncollectible Accounts 47,320 - 418 0.88%
Utilities 27,027 6,791 97,588 361.08%
Vehicle Equipment 279,683 12,426 229,909 82.20%
Supplies & Services Sub-Total 4,032,096 216,197 2,910,329 72.18%
Depreciation & Amortization 3,945,750 516,277 3,874,330 98.19%
Total Operating Expenses 26,775,791 2,258,813 21,423,201 80.01%
Operating Income (Loss) (3,104,127) (654,057) (3,971,971) 127.96%
Revenue (Non-Operating):
Interest and Investments 120,900 11,143 130,360 107.82%
Property Taxes 1,092,000 27,162 1,132,443 103.70%
Debt Service Income (through water revenue) - 172,199 2,132,958
Other Non-Operating Revenue 172,900 (4,887) 372,181 215.26%
Total Non-Operating Revenue: 1,385,800 205,617 3,767,942 117.98%
Expenses (Non-Operating):
Interest on Long Term Debt (1,981,300) (163,813) (1,789,887) 90.34%
Job Closing Expense (40,000) 0.00%
Other Expense (154,500) (2,281) (130,453) 84.44%
Total Non-Operating Expenses: (2,175,800) (166,094) (1,920,340) 88.26%
Non-Operating Income (Loss) (790,000) 39,523 1,847,602
Total Income (Loss) $ (398949127) $ (6149534) $ (291249369) 54.55%
Contributed Capital $ 190,962 $ 14,652 227,400 119.08%
Capital - Direct Labor $ 32,754 $ 306,515
Yorba Linda Water District
Sewer Fund
For the Eleven Months Ended May 31, 2010
FY 2010 % of
Annual May Actual Annual
Budget FY 2010 YTD Budget
Revenue (Operating):
Sewer Charge Revenue $1,160,000 $98,708 $1,087,820 93.78%
Locke Ranch Assessments 116,000 1,195 $103,995 89.65%
Other Operating Revenue 5,100 261 $2,997 58.76%
Total Operating Revenue: 1,281,100 100,164 1,194,812 93.26%
Expenses (Operating):
Salary Related Expenses 817,041 55,619 $707,247 86.56%
Supplies & Services:
Communications 26,654 2,025 $25,596 96.03%
Contractual Services 137,255 6,406 $132,698 96.68%
Data Processing 11,487 1,091 $8,013 69.76%
Dues & Memberships 3,360 213 $2,949 87.77%
Fees & Permits 6,040 197 $4,644 76.89%
Insurance 33,867 - $18,229 53.83%
Materials 21,301 662 $12,919 60.65%
District Activities 1,368 61 $303 22.15%
Maintenance 29,789 99 $9,207 30.91%
Non-Capital Equipment 18,631 1,607 $11,190 60.06%
Office Expense 9,550 189 $2,473 25.90%
Professional Services 78,240 16,775 $60,183 76.92%
Training 8,632 213 $3,566 41.31%
Travel & Conferences 6,893 262 $1,283 18.61%
Uncollectible Accounts 4,680 - - 0.00%
Utilities 2,673 672 $9,652 361.09%
Vehicle Equipment 47,068 5,143 $37,080 78.78%
Supplies & Services Sub-Total 447,488 35,615 339,985 75.98%
Depreciation & Amortization 595,050 66,426 $542,448 91.16%
Total Operating Expenses 1,859,579 157,660 1,589,680 85.49%
Operating Income (Loss) (578,479) (57,496) (394,868) 68.26%
Revenue (Non-Operating):
Interest and Investments 7,000 1,803 15,217 217.39%
Property Taxes 108,000 - - 0.00%
Other Non-Operating Revenue 12,600 (190) (4,092) -32.48%
Total Non-Operating Revenue: 127,600 1,613 11,125 8.72%
Expenses (Non-Operating):
Job Closing Expense (5,000) - - 0.00%
Other Expense (2,300) (406) (2,987) 129.87%
Total Non-Operating Expenses: (7,300) (406) (2,987) 40.92%
Non-Operating Income (Loss) 120,300 1,207 8,138 6.76%
Total Income (Loss) $ (458,179) $ (56,289) $ (386,730) 84.41%
Contributed Capital $74,240 $26,680 $111,754 150.53%
Capital - Direct Labor (1,004) (21,601)
ITEM NO. 2.2
AGENDA REPORT
Meeting Date: July 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 May 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 May 2010 Monthly Investment Report for your review and approval. The
Investment Portfolio Report presents the market value and percent yield for all the District
investments by institution. The Investment Report Summary includes budget and actual interest and
average term portfolio information as well as market value broken out by reserve categories.
As a result of the switch to CaITRUST, we were able to move the majority of our water capital
investment money into longer-term investments, resulting in a greater yield. The yield in the current
month for the total portfolio is 0.84%, compared to an average yield of 0.42% for the first four
months of the year. As a result, the number of days to maturity and average term of the portfolio in
days increased this month to 375 and 221, respectively, from 1 each in the prior month. Other items
to note for the month of May include the COP Revenue Bond 2008 Fund balance is approximately
$1 M lower in May than April as a result of CIP projects underway, and the Water Operating Fund
balance is positive for the first time this calendar year.
Staff will submit a Quarterly Investment Report ending June 30, 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 month ended April 30, 2010 was received and filed by the Finance-Accounting
Committee on June 14, 2010. The Investment Report for the quarter ended March 31, 2010 was
received and filed by the Board of Directors on May 27, 2010.
ATTACHMENTS:
Name: Description: o ype:
Invst Rpt 5-10.xlsx Portfolio Rpt Backup Material
Agenda, 7-12 backup-May.docx Backup Backup Material
Yorba Linda Water District
Investment Portfolio Report
May 31, 2010
Market % Percent Investment Maturity
Value Cost of Total Institution Yield Date Date
Cash & Checking Accounts:
$ 999,245 $ 999,245 Wells Fargo Bank N/A
$ 999,245 $ 999,245 2.87% Total 0.00%
Money Market Accounts:
$ 1,529,926 $ 1,529,926 Wells Fargo Money Market 0.30% N/A
- - Wells Fargo MM/Annexation
$ 1,529,926 $ 1,529,926 4.39% Total 0.30%
$ 2,529,171 $ 2,529,171 7.25% Sub-total 0.30%
California Asset Mgmt. Program:
$ - $ - 0.00% California Asset Mgmt. Program N/A
Money Market Account:
$ 11,542,135 $ 11,542,135 US Bank 2008 Revenue Bond 0.20%
$ 11,542,135 $ 11,542,135 33.11% 0.20%
CalTR UST
$ 1,053,984 $ 1,053,984 Heritage Money Market Fund 0.25%
$ 3,694,497 $ 3,694,497 Ca1TRUST Short Term 0.57%
$ 16,042,675 $ 16,042,675 Ca1TRUST Medium Term 1.45%
$20,791,156 $20,791,156 59.64% 1.23%
$ 34,862,462 $ 34,862,462 100.00% Sub Total Investments 0.84%
Individual Management Account:
$ 628 $ 628 0.00% Wells Capital Management 0.18% N/A
$ 34,863,090 $ 34,863,090 100% Total Investments 0.84%
Per Government Code requirements, the Investment Report is in compliance with the Yorba Linda Water District's
Investment Policy, and there are adequate funds available to meet budgeted and actual expenditures for the next
six months.
Sandi Van Etten, Senior Accountant
5/31/2010
Investment Report Summary
Below is a chart summarizing the yields as well as terms and maturities for the month of May
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
May 0.84% 0.84% 375 221
Below is a chart comparing operating fund interest for current and prior fiscal years.
Actual Interest 5/31/09 5/31/10
Monthly, Operating Fund $ 327 $ -1,802
Year-to-Date, Operating Fund $ 6,166 $ 27,590
Budget 2008/2009 2009/2010
Interest Budget, Operating Fund, May YTD $59,125 $6,875
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 5/31/10
Water Operating 75,694 0.22%
Water Emergency Reserve 2,058,108 5.91%
Water Capital Project Reserve 18,424,914 52.95%
Water Reserve for Debt Service 785,875 2.26%
COP Revenue Bond 2008 - Reserve 2,147,096 6.17%
COP Revenue Bond 2008 9,395,039 27.00%
Sewer Operating 1,195,757 3.44%
Sewer Emergency Reserve 524,344 1.51%
Sewer Capital Project Reserve 189,590 0.54%
$34,796,417 100.00%
Wells Fargo Bank Checking
Water Operating 25,121
Sewer Operating 41,552
66,673
Total $34,863.090
ITEM NO. 3.1
AGENDA REPORT
Meeting Date: July 12, 2010
Subject: Monthly Portfolio Reports for May 2010
ATTACHMENTS:
Name: Dosciiption: Type:
YLWD Overview Pagel.pdf May Portfolio 1 Backup Material
YLWD_Summay Page2.pdf May Portfolio 2 Backup Material
YLWD Cash FlowPage3.pdf May Portfolio 3 Backup Material
YLWD Holdings Page4.pdf May Portfolio 4 Backup Material
Account Overview
Yorba Linda Water District
Account #18611500
Funding Date: 10/25/2005
Portfolio Statistics as of: 5/31/2010
Account Characteristics:
Portfolio Yield to Maturity 0.18%
Total Unrealized Gains/(Losses) - Current: -
Total Net Realized Gains/(Losses) - Since Inception: 15,521
Total Long-Term Investments: -
Total Short Duration Investments/Money Market Secs: 628
Total Market Value: 628
Total Number of Issues in the Portfolio: 1
MARKET DATA
Overnight Fed Funds Rate: 0.00%
6-Month T-Bill Yield: 0.22%
12-Month T-Note Yield: 0.27%
WELLS CAPITAL MANAGEMENT
Portfolio Summary Report Yorba Linda Water District
For the period : 05101110 to 05/31/10 18611500
Portfolio Characteristics Portfolio Breakdown
Market Value: 627.55 Market Value % of Account
Unrealized G/L: 0.00 Money Market Fund 627.42 99.98%
Pending-Cash 0.13 0.02%
Yield To Maturity: 0.18% Total 627.55 100.00%
Portfolio Duration: 0.00 Years
Avg. Days to Maturity: 1
Avg. Portfolio Credit Quality: Aaa
Market Data 05/31/10 04/30/10
Yields:
6 Month Treasury Bill: 0.22% 0.23%
2 Year Treasury Note: 0.77% 0.96%
5 Year Treasury Note: 2.09% 2.42%
Fed Funds Target: 0-0.25% 0-0.25%
Credit Quality* Effective Maturity Distribution
1.00
P1/MIG1/VMIG1/A-1 0.0%
Aaa/AAA 0.0% 0.80
Aa/AA 0.0% 0.60
A/A 0.0%
Baa/BBB 0.0%
Other 0.0% 0.40
Cash/Overnights 100.0%
Not Rated 0.0% 0.20
100.0%
0.00
* Moody's Ratings - Primary o/n 2 to 90 91 to 180 181 to 1 year 1 to 2 years > 2 years
S&P Ratings - Secondary
Fitch Ratinqs - Tertiary
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 May 2010
1- Beginning Period Balances As of 4/30/2010
Total Original Cost 15,809,697
+ Net Amort/Accr to Date (31,856)
=Adjusted Book Value: 15,777,841
+ Accrued Interest Receivable 41,244
+ Unrealized Gain/(Loss) 9,381
= Total Market Value Plus Accrued Interest 15,828,466
11: Period Income Earned
+ Ending Accrual 643
- Begininning Accrual (41,244)
+ Interest Received 1,036
- Interest Paid at Purchase -
+ Interest Received at Sale 42,587.10
= Interest Earned in Period 3,023
+ (Amort)/Accr This Period (1,251)
= Monthly Portfolio Income $ 1,772
+ Contributions -
- Withdrawals (15,824,696)
+ Realized Gain/(Loss) 8,872
- Fees Paid This Period (3,761)
- Prior Period Unrealized Gain/Loss (9,381)
+ End Of Period Unrealized Gain/Loss -
+ Net Receipts/Deliveries in Kind 0.00
+ Adjustments 0.00
= Net Change to the Portfolio (15,830,218)
=Total Market Value Plus Accrued
Interest 1,270
Ill: End of Period Balances As of 5/31/10
Total Original Cost 628
+ Net Arnort/Accr to Date -
= Adjusted Book Value 628
+ Accrued Interest Receivable 643
+ Unrealized Gain/(Loss) -
= Total Market Value Plus Accrued
Interest 1,270
Reconciliation Di%ference: (0)
Wells Capital Management
Holdings Report Yorba Linda Water District
Securities Held as of 05/31/10: on a Trade Date Basis 18611500
Credit Ratings
Identifier Moodys S&P Fitch Par Value Security Descnption Coupon Final Maturity Effective Days to Duration Market Price Market Value Market Value + Accrued Interest Holdings as Percentage of Account YTM at Purchase or Reset
Maturity Eff
Maturity
1. Cash & Cash Equivalents (Original maturity of 90 days or less)
Cash
U.S. DOLLARS 0 PENDING CASH 0 0 0.02%
0 0 0.00 0 0 0.02% 0.00%
Money Mkt Securities
Money Market Fund
VP7000038 NR NR NR 627 WF ADV MONEY MKT TR#645 0.177 06/01/10 1 0.00 100.000 627 1,270 99.98% 0.18%
627 1 0.00 627 1,270 99.98% 0.18%
Cash & Cash Equivalents Tot 628 1 0.00 628 1,270 100.00% 0.18%
628 1 0.00 628 1,270 100.00% 0.18%
The above information is an estimate of certain investment calculations and does not represent your audited statement of record. Page: 1 of 1