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HomeMy WebLinkAbout2011-03-15 - Finance-Accounting Committee Meeting Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING March 15, 2011 A meeting of the Finance-Accounting Committee was called to order by Director Collett at 9:30 a.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. COMMITTEE STAFF Director Ric Collett, Chair Ken Vecchiarelli, General Manager Director Robert R. Kiley Stephen Parker, Finance Director 1. PUBLIC COMMENTS None. 2. ACTION CALENDAR 2.1. January 2011 Budget to Actual Results Mr. Parker pointed out that water revenues were still trending lower than budgeted due to reduced demands, but noted that there was over $1 million in year-to-date savings as compared to the budget. This is mostly due to supplies and services trending below budget. The Committee asked questions about why Materials was high and why Communications, Maintenance, Professional Services and Uncollectible Accounts were so low. After discussion with Mr. Vecchiarelli and Mr. Parker on those individual line items, the Committee received and filed the January 2011 Budget to Actual Results. 2.2. January 2011 Investment Report Mr. Parker presented the monthly investment information, and shared that the investments were pretty steady with a yield of 0.83%. He also explained that as a result of a biannual replenishment assessment to Orange County Water District, the Water Operating Fund decreased by approximately $421,000. He also shared that just as quarterly reconciliations are being done to send reimbursements from Sewer Capital to Sewer Operating for miscellaneous capital items paid out of general checking, the same needs to be done with Water Capital and Water Operating. This process is more difficult for the Water Fund, but Mr. Parker expected the reconciliation and affects completed in the March Investment Report. The Committee received and filed the January 2011 Investment Report. 1 3. DISCUSSION ITEMS 3.1. District Credit Card Options Mr. Parker shared a possible opportunity to create revenue without raising rates by paying a portion of the District's bills through a credit card that earns points. He explained that he met with American Express representatives, and could look into other vendors as well. By paying bills through credit cards, points that could be used to pay for District expenses would be earned, as well as the potential for an advantage in cash flow. Mr. Parker asked if this was something he should continue to pursue. The Committee indicated they thought it should be investigated more, but were comfortable with staff efforts spent looking into this. Director Collett mentioned that his company used Ariba System. Mr. Parker indicated that he would investigate other opportunities and get back to the Committee with a recommendation. 3.2. Sewer Allocation Study Mr Parker explained to the Committee that for a long period of time, a 9% allocation figure has been used to allocate indirect costs from the Water Fund to the Sewer Fund. Mr. Vecchiarelli explained that he asked Mr. Parker to investigate the 9% flat allocation rate and confirm it is still valid or recommend a new allocation factor. Mr. Parker explained that he utilized a more specific methodology for allocating to sewer a varying percentage from each section in the District's Supplies and Services budget. The percentages applied were based upon discussions and input from the various department heads and staff members. The results indicated that the Sewer Operating Fund was paying approximately $136,000 more in the current fiscal year, using the 9% allocation than was calculated using the section by section specific allocation approach. The results showed that an allocation of 7% was much more accurate. Staff recommends using an allocation rate of 7% in the upcoming budget process. The Committee was in agreement that a change to 7% would be more appropriate, and indicated that discussion with the full Board could take place at the upcoming Board Workshop discussing the budget. 3.3. Future Agenda Items and Staff Tasks None. 4. ADJOURNMENT 4.1. The Committee adjourned at 10:12 a.m. The next regular meeting of the Finance-Accounting Committee will be held on April 11, 2011 at 4:00 p.m. 2