HomeMy WebLinkAbout2010-11-08 - Finance-Accounting Committee Meeting Agenda Packet
Yorba Linda
Water District
AGENDA
YORBA LINDA WATER DISTRICT
FINANCE-ACCOUNTING COMMITTEE MEETING
Monday, November 8, 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. September 2010 Budget to Actual Results
Recommendation: That the Committee review, receive and file the September 2010
Budget to Actual Results.
2.2. September 2010 Investment Report
Recommendation: That the Committee receive and file the September 2010
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. Future Agenda Items and Staff Tasks
4. ADJOURNMENT
4.1. The next regular meeting of the Finance-Accounting Committee will be held on
December 13, 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: November 8, 2010
To: Finance-Accounting Committee
From: Ken Vecchiarelli, General
Manager
Presented By: Stephen Parker, Finance Dept: Finance
Director
Prepared By: Delia Lugo, Senior Accountant
Subject: September 2010 Budget to Actual Results
STAFF RECOMMENDATION:
That the Committee review, receive and file the September 2010 Budget to Actual Results.
DISCUSSION:
Attached are the budget to actual summary results for the District, combined and broken out
between the Water Fund and Sewer Fund. Overall, the District revenue is trending below
expectations due to lower water consumption from cooler summer temperatures and higher
conservation levels. This negative trend is partially offset by lower water purchases and by other
operating expenses trending slightly below budget.
Water operating revenue is only 28.6% of annual budget, which is lower than normal for the
summer months, mostly due to the higher water conservation rates from our customers. The budget
was based on 15% conservation, and through September customers are using 19% less water,
which is a 26% increase.
Variable water costs as a percentage of budget are higher than operating revenues. This is
primarily the result of the District's operational strategy to purchase a higher percentage of import
water in the first six months of the fiscal year, to take advantage of the current import water rates
prior to Metropolitan Water District of Southern California's 7.5% rate increase, which takes effect
on January 1, 2011.
The remaining expenses and revenues are generally on target with budgeted projections.
PRIOR RELEVANT BOARD ACTION(S):
On October 11, 2010 the Committee reviewed, received and filed the August 31, 2010 Budget to
Actual Results.
ATTACHMENTS:
Name: Description: Type:
Water _Sewer _Septt 2010.xls Water Sewer September 2010 Backup Material
Water Sept 2010.xls Water September 2010 Backup Material
Sewer _September _2010.xls Sewer September 2010 Backup Material
Yorba Linda Water District
Summary Financial Report
Water & Sewer Funds
For Three Months Ending September 30, 2010
Annual Actual YTD
Budget YTD through Under/(Over) % of
FY 10/11 September 30, 2010 Budget Annual Budget
Revenue (Operating):
Water Revenue (Consumption & Flat Charge) $25,672,831 $7,377,561 $18,295,270 28.74%
Sewer Revenue 1,235,402 320,285 $915,117 25.93%
Other 714,221 213,333 $500,888 29.87%
Total Operating Revenue: 27,622,454 7,911,179 19,711,275 28.64%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 12,667,236 4,206,285 8,460,951 33.21%
Salary Related Expenses 7,624,683 1,310,771 6,313,912 18.64%
Supplies & Services 3,996,585 916,305 3,080,280 22.93%
Depreciation & Amortization 5,017,876 1,300,326, 3,717,550 25.91%
Total Operating Expenses: 29,306,380 7,733,687 21,572,693 26.39%
Operating Income (Loss) (1,683,926) 177,492 (1,861,418) -10.54%
Revenue (Non-Operating):
Interest and Investments 156,000 68,429 87,571 43.86%
Property Taxes 1,206,000 45,914, 1,160,086 3.81%
Other 126,133 300,536 (174,403) 238.27%
Total Non-Operating Revenue: 1,488,133 414,879 1,073,254 27.88%
Expenses (Non-Operating):
Interest on Long Term Debt (1,940,954) (484,836) (1,456,118) 24.98%
Other Expense (103,193) (21,436) (81,757) 20.77%
Total Non-Operating Expenses: (2,044,147) (506,272) (1,537,875) 24.77%
Non-Operating Income (Loss) (556,014) (91,393) (464,621)
I I
Net Income (Loss) ($2,239,940) $86,099 ($2,326,039) -3.84%
Contributed Capital 145,860 172,462 (26,602) 118.24%
Capital - Direct Labor - 110,130 110,130
Yorba Linda Water District
Water Fund
For Three Months Ending September 30, 2010
FY 2011 YTD % of
Annual September Actual Under/(Over) Annual
Budget 2010 YTD Budget Budget
Revenue (Operating):
Water Revenue (Residential) $ 17,248,481 $ 2,075,523 $ 4,728,824 $ 12,519,657 27.42%
Water Revenue (Commercial & Fire Det.) 1,522,341 197,180 536,517 985,824 35.24%
Water Revenue (Landscape/Irrigation) 3,588,335 509,932 1,350,551 2,237,784 37.64%
Water Revenue (Service Charge) 3,313,674 328,171 761,669 2,552,005 22.99%
Other Operating Revenue 701,089 74,225 210,646 490,443 30.05%
Total Operating Revenue: 26,373,920 3,185,031 7,588,207 18,785,713 28.77%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 12,667,236 1,312,859 4,206,163 8,461,073 33.21%
Salary Related Expenses 6,809,598 501,805 1,157,735 5,651,863 18.60%
Supplies & Services:
Communications 376,576 10,827 46,875 329,701 12.45%
Contractual Services 707,007 48,029 192,022 514,985 27.16%
Data Processing 109,596 6,029 8,199 101,397 7.48%
Dues & Memberships 30,778 821 1,524 29,254 4.95%
Fees & Permits 44,020 26,138 29,533 14,487 67.09%
Board Election 72,800 - - 72,800 0.00%
Insurance 314,314 683 162,536 151,778 51.71%
Materials 337,766 43,357 114,486 223,280 33.90%
District Activities, Emp Recognition 11,648 17 637 11,011 5.47%
Maintenance 325,227 3,166 17,883 307,344 5.50%
Non-Capital Equipment 92,611 6,595 14,550 78,061 15.71%
Office Expense 39,221 2,440 5,184 34,037 13.22%
Professional Services 638,224 18,727 114,629 523,595 17.96%
Training 45,735 935 4,296 41,439 9.39%
Travel & Conferences 40,602 1,731 2,803 37,799 6.90%
Uncollectible Accounts 45,955 - 5,612 40,343 12.21%
Utilities 111,930 11,249 36,364 75,566 32.49%
Vehicle Equipment 285,877 17,105 49,853 236,024 17.44%
Supplies & Services Sub-Total 3,629,887 197,849 806,986 2,822,901 22.23%
Depreciation & Amortization 4,403,257 384,140 1,150,543 3,252,714 26.13%
Total Operating Expenses 27,509,978 2,396,653 7,321,427 20,188,551 26.61%
Operating Income (Loss) (1,136,058) 788,378 266,780 (1,402,838) -23.48%
Revenue (Non-Operating):
Interest 142,000 20,351 62,542 79,458 44.04%
Property Taxes 1,206,000 39,507 45,914 1,160,086 3.81%
Other Non-Operating Revenue 100,687 109,225 291,506 (190,819) 289.52%
Total Non-Operating Revenue: 1,448,687 169,083 399,962 1,048,725 27.61%
Expenses (Non-Operating):
Interest on Long Term Debt (1,940,954) (161,612) (484,836) (1,456,118) 24.98%
Other Expense (102,193) (8,983) (14,876) (87,317) 14.56%
Total Non-Operating Expenses: (2,043,147) (170,595) (499,712) (1,543,435) 24.46%
Non-Operating Income (Loss) (594,460) (1,512) (99,750) (494,710) 16.78%
Total Income (Loss) $ (1,730,518) $ 7869866 $ 167,030 (1,897,548) -9.65%
Contributed Capital $ 92,807 $ 114,696 $ 115,345 $ (22,538) 124.28%
,Capital - Direct Labor $ 36,526 $ 109,031 $ 109,031
Yorba Linda Water District
Sewer Fund
For Three Months Ending September 30, 2010
FY 2011 YTD % of
Annual September Actual Underi(Over) Annual
Budget FY 2010 YTD Budget Budget
Revenue (Operating):
Sewer Charge Revenue $ 1,132,574 $ 117,108 $ 320,285 $ 812,289 28.28%
Locke Ranch Assessments 102,828 310 604 102,224 0.59%
Other Operating Revenue 13,132 522 2,083 11,049 15.86%
Total Operating Revenue: 1,248,534 117,940 322,972 925,562 25.87%
Expenses (Operating):
Variable Costs (Power) 700 - 122 578 17.43%
Salary Related Expenses 815,085 64,349 153,036 662,049 18.91%
Supplies & Services:
Communications 39,284 1,042 4,601 34,683 11.71%
Contractual Services 61,478 4,447 16,460 45,018 26.77%
Data Processing 10,839 596 811 10,028 7.48%
Dues & Memberships 3,340 81 150 3,190 4.49%
Fees & Permits 6,382 2,060 2,952 3,430 46.26%
Board Election 7,200 - 0 7,200 0.00%
Insurance 31,086 68 16,075 15,011 51.71%
Materials 18,849 1,652 7,711 11,138 40.91%
District Activities 1,152 2 63 1,089 5.47%
Maintenance 41,973 17,231 21,970 20,003 52.34%
Non-Capital Equipment 20,509 1,354 2,017 18,492 9.83%
Office Expense 3,879 241 498 3,381 12.84%
Professional Services 67,176 2,262 12,852 54,324 19.13%
Training 5,314 28 651 4,663 12.25%
Travel & Conferences 4,348 171 269 4,079 6.19%
Uncollectible Accounts 4,545 - 555 3,990 12.21%
Utilities 11,070 1,094 3,578 7,492 32.32%
Vehicle Equipment 28,273 7,232 18,108 10,165 64.05%
Supplies & Services Sub-Total 366,697 39,561 109,321 257,376 29.81%
Depreciation & Amortization 614,619 50,253 149,783 464,836 24.37%
Total Operating Expenses 1,797,101 154,163 412,262 1,384,839 22.94%
Operating Income (Loss) (548,567) (36,223) (89,290) (459,277) 16.28%
Revenue (Non-Operating):
Interest 14,000 1,845 5,889 8,111 42.06%
Property Taxes - - - - 0.00%
Other Non-Operating Revenue 25,446 1,565 9,028 16,418 35.48%
Total Non-Operating Revenue: 39,446 3,410 14,917 24,529 37.82%
Expenses (Non-Operating):
Other Expense (1,000) (6,560) (6,560) 5,560 656.00%
Total Non-Operating Expenses: (1,000) (6,560) (6,560) 5,560 656.00%
Non-Operating Income (Loss) 38,446 (3,150) 8,357 30,089 21.74%
Total Income (Loss) $ (510,121) $ (39,373) $ (80,933) $ (429,188) 15.87%
Contributed Capital $53,053 57,117 57,117 ($4,064) 107.66%
Capital - Direct Labor - (859) (1,099) $1,099 0.00%
ITEM NO. 2.2
AGENDA REPORT
Meeting Date: November 8, 2010
To: Finance-Accounting Committee
From: Ken Vecchiarelli, General
Manager
Presented By: Stephen Parker, Finance Director Dept: Finance
Prepared By: Delia Lugo, Senior Accountant
Subject: September 2010 Investment Report
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. The District also presents monthly
investment reports to the Finance-Accounting Committee.
STAFF RECOMMENDATION:
That the Committee receive and file the September 2010 Investment Report.
DISCUSSION:
Staff is submitting the September 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 reserves categories. Interest earned year-
to-date has increased by $26,679 when compared to the past fiscal year. This is due to the District's
ability to maintain 80% of it's portfolio at CaITRUST in medium term investments, which have earned
an average yield of 1.32% over the past three months.
The COP Revenue Bond 2008 account balance is approximately $776,000 lower than last month due
to the CIP payments made for projects in progress. In addition, the Water Reserve for Debt Service
account is lower by $1.6 million due to the September 30, 2010 Debt Service principal and interest
payment.
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 August 31, 2010 was received and filed by the Finance-Accounting Committee on
October 11, 2010. The Investment Report for the period ended June 30, 2010 was received and filed
by the Board of Directors on August 26, 2010.
ATTACHMENTS:
Name: Description: Type:
Invst_Rpt 9-10.xlsx Portfolio Report Backup Material
Agenda 11-08_backup-Sept 2010.docx Agenda Backup Backup Material
Yorba Linda Water District
Investment Portfolio Report
September 30, 2010
Market % Percent
Value Cost of Total Institution Yield
Cash & Checking Accounts:
$ 337,987 $ 337,987 Wells Fargo Bank
$ 337,987 $ 337,987 1.06% Total 0.00%
Money Market Accounts:
$ 706,057 $ 706,057 Wells Fargo Money Market 0.30%
$ 706,057 $ 706,057 2.22% Total 0.30%
$ 1,044,045 $ 1,044,045 3.28% Sub-total 0.30%
Money Market Account:
$ 8,939,283 $ 8,939,283 US Bank 2008 Revenue Bond 0.20%
$ 8,939,283 $ 8,939,283 28.10% 0.20%
CaITR UST
$ 588 $ 588 Heritage Money Market Fund 0.21%
$ 4,199,834 $ 4,184,508 Ca1TRUST Short Term 0.60%
$ 17,627,922 $ 17,419,105 Ca1TRUST Medium Term 1.27%
$21,828,344 $21,604,201 68.63% 1.14%
$ 31,811,672 $ 31,587,530 100% Total Investments 0.85%
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.
Delia D. Lugo, Senior Accountant
9/30/10
Investment Report Summary
Below is a chart summarizing the yields as well as terms and maturities for the month of
September 2010:
Avg. Portfolio Avg. Portfolio # of Avg. Term
Month Yield Without Yield With Days to of Portfolio
of 2010 CaITRUST CaITRUST Maturity in Days
September 0.21% 0.85% 365 254
Below is a chart comparing operating fund interest for current and prior fiscal years.
Actual Interest 9/30/09 9/30/10
Monthly - September $16,632 $22,196
Year-to-Date $41,751 $68,430
Budget 2009/2010 2010/2011
Interest Budget, September YTD $31,975 $38,550
Interest Budget, Annual $127,900 $154,200
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 9/30/10
Water Operating $ 0 0.00%
Water Emergency Reserve 2,067,785 6.51%
Water Capital Project Reserve 18,815,381 59.25%
Water Reserve for Debt Service 2,586 0.01%
COP Revenue Bond 2008 - Reserve 2,147,096 6.76%
COP Revenue Bonds 6,792,187 21.39%
Sewer Operating 414,057 1.30%
Sewer Emergency Reserve 1,004,028 3.16%
Sewer Capital Project Reserve 512,701 1.62%
$31,755,821 100.00%
Wells Fargo Bank Checking
Water Operating $42,457
Sewer Operating 13,394
55,851
Total 31.811.672