HomeMy WebLinkAbout2011-06-13 - Finance-Accounting Committee Meeting Agenda Packet
Yorba Linda
Water District
AGENDA
YORBA LINDA WATER DISTRICT
FINANCE-ACCOUNTING COMMITTEE MEETING
Monday, June 13, 2011, 4:00 PM
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
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. Sewer Financial Model
Recommendation: That the Committee recommend the Board of Directors approve
an amendment in the amount of $10,000 to an existing Professional Services
Agreement with Raftelis Financial Consultants to add a deliverable of a Sewer
Financial Model.
2.2. Authorization to Invest in Local Agency Fund
Recommendation: That the Committee recommend the Board of Directors approve
a resolution authorizing the investment of monies in the Local Agency Investment
Fund.
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. OPEB Liability Pay Down
3.2. 2008 COP Reserve Funds Investment
3.3. April 2011 Budget to Actual Results
3.4. Investment Report Through April 2011
3.5. Future Agenda Items and Staff Tasks
4. ADJOURNMENT
4.1. The next regular meeting of the Finance-Accounting Committee will be held on July 11,
2011 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: June 13, 2011 Budgeted: Yes
Total Budget: $15,000
To: Finance-Accounting Committee Cost Estimate: $10,000
Funding Source: Operating Funds
From: Ken Vecchiarelli, General Account No: 1-3010-0780-00
Manager
Job No: J2010-07
Presented By: Stephen Parker, Finance Dept: Finance
Director
Reviewed by Legal: N/A
Prepared By: Stephen Parker, Finance CEQA Compliance: N/A
Director
Subject: Sewer Financial Model
STAFF RECOMMENDATION:
That the Committee recommend the Board of Directors approve an amendment in the amount of
$10,000 to an existing Professional Services Agreement with Raftelis Financial Consultants to add
a deliverable of a Sewer Financial Model.
DISCUSSION:
Raftelis Financial Consultants, Inc. was selected by YLWD through an RFP process to provide the
District with a Cost of Service and Water Rate Study in March 2010. One of the deliverables of that
agreement is providing staff with a Water Financial Model that will assist staff in budgeting and
projecting revenues, operating and capital expenditures, debt service coverage and more for years
into the future. Staff is anticipating utilizing this tool, but desires to have a similar tool for the Sewer
Fund to enable budgeting and projecting for the District as a whole.
As such, a Request For Proposal was sent to five companies who submitted proposals on the
Water Rate Study. Four of the companies asked questions of staff, but only one submitted a
proposal. The one proposal was from Raftelis Financial Consultants for $10,000. Staff spoke with
one of the vendors who had contact with the District but didn't propose, and asked them to provide
an approximate range of expected fees for the project. The $10,000 proposal was the low end of
the range provided by the company.
Staff recommends that an amendment of $10,000 be added to the existing PSA with Raftelis
Financial Consultants for the extra deliverable of a Sewer Financial Plan.
PRIOR RELEVANT BOARD ACTION(S):
On March 11, 2010 the Board authorized the General Manager to execute a Professional Services
Agreement with Raftelis Financial Consultants in the amount of $77,005 to conduct a Cost of
Service and Water Rate Study.
On June 9, 2011, the Board adopted the 2011-2013 Strategic Plan, which in the Initiatives and
Action Plans section under FR 1-A calls for a strategy to Develop a Comprehensive Multi-Year
Financial Plan.
ATTACHMENTS:
YLWD_WW_FPlan_Model _Proposal _May 2011.pdf Sewer Financial Model Proposal Backup Material
RFC ■ 201 S. Lake Ave., Suite 301 Phone 626 • 583 • 1894 ■ www.raftelis.com
Pasadena • CA • 91101 Fax 626 • 583 • 1411
RAFTELIS FINANCIAL
CONSULTANTS, INC.
May 13, 2011
Mr. Stephen M. Parker
Finance Director
Yorba Linda Water District
1717 Miraloma Avenue
Placentia, CA 92870
Subject: Proposal for Developing a Wastewater Financial Plan Model
Dear Mr. Parker:
Raftelis Financial Consultants, Inc. (RFC) is pleased to submit this proposal to assist the Yorba Linda
Water District (District) with developing a Wastewater Financial Plan Model (Model). RFC has a broad
range of experience in the areas of interests to the District, more specifically in the areas of conducting
long-term financial plan studies. RFC is one of the largest full-service utility financial consulting firms,
specializing in financial plan and rate studies. We have assisted many agencies throughout California
and all across the U.S. conducting thousands of such studies.
RFC offers the following advantages:
• Depth of Local Resources: We have the largest utility financial practice in California and one of
the largest in the nation, and will ensure the project is completed on time or with an accelerated
schedule, if needed.
• Experience: In California alone, we have performed hundreds of studies, especially in Southern
California. In 2010, we worked in 26 states and conducted more than 200 studies.
• Industry Leadership: Our senior staff is involved in shaping industry standards by chairing
various committees within American Water Works Association (AWWA) and Water Environment
Federation (WEF). RFC staff has written one of the leading books on water and wastewater rate
setting: Water and Wastewater Finance and Pricing, and co-authored other industry standard
books, such as: AWWA's Manual M1, Principles of Water Rates, Fees and Charges, AWWA's
Water Rates, Fees, and the Legal Environment, 2nd Edition, and WEF's Financing and Charges
for Wastewater Systems. RFC also publishes the nationally recognized biennial Water and
Wastewater Rate Survey, which is co-published with AWWA, and the CA-NV Water Rate Survey
which is co-published with the CA-NV AWWA. Being so actively involved in the industry allows
us to keep the District informed of emerging trends and issues, and to be confident that our
recommendations are insightful and founded on sound industry principles.
• Modeling Experts: Due to our depth of resources and experience, we have developed some of
the most sophisticated and user-friendly financial/rate models available. These models are tools
that allow us to examine different policy options and their financial/customer impacts in real
Yorba Linda Water District
Proposal for Developing a Wastewater Financial Plan Model
time. In a workshop environment, our models allow us to quickly review impacts of changes to
different parameters, to determine which policy option is feasible, and to reach consensus
quickly. Our models are customized to be presented in a Board workshop to help facilitate
agreement on financial policies associated with the District
• Knowledge of CA Regulatory Requirements. The regulatory environment in California has
become more stringent due to Proposition 218 and Government Code Section 54999. Because
of our extensive experience, we are very familiar with these regulations and have made
presentations on this subject at the Association of California Water Agencies (ACWA), the
California Society of Municipal Finance Officers, and CA-NV AWWA. In addition, we are
frequently called upon to be expert witnesses on these regulatory matters. This regulatory
knowledge will ensure that our recommendations account for aspects that are unique to
California utilities.
• Focus. RFC's services are solely focused on providing financial, pricing, and management
consulting services to water and wastewater industry utilities. This focus allows RFC
professionals to develop and maintain knowledge and skills which are extremely specialized to
the services that we provide, and will allow us to provide the District with independent and
objective advice.
• Client Satisfaction. RFC strives to develop strong relationships with each of our clients. We
recognize that we have a vested interest in the success of each of our clients. We work
collaboratively with our clients during the engagement and provide any necessary assistance
after the engagement.
Yorba Linda Water District (District or YLWD) currently serves 15,000 wastewater connections in most of
Yorba Linda and portions of Placentia, Brea, Anaheim and areas of unincorporated Orange County.
Beginning of Fiscal Year (FY) 2011, the District expects to gain an additional 6,100 connections from the
City of Yorba Linda.
The District is independent of all city and county governments. All revenues collected from wastewater
services (the current wastewater rates are shown in the Table below) are used to fund operational and
capital expenditures of the wastewater enterprise. Metered use Single Family $5.50 per month
Multi Family $3.85 per unit per month
Commercial, Industrial & Public First 2,200 cu ft $5.50 per month
Authority with water meters Above 2,200 cu ft $4.62 per 1,000 cu ft
RFC 2 I e
i-
Yorba Linda Water District
Proposal for Developing a Wastewater Financial Plan Model
Commercial, Industrial & Public First 1,100 cu ft $5.50 per month
Authority with sewer meters Above 1,100 cu ft $5.06 per 1,000 cu ft
In 2010, the District engaged RFC in a Cost of Service and Water Rate Study, where one of the
deliverables of the study was a Financial Plan Model that could help develop a multi-year projection or
budget for its water enterprise fund. District staff would like to have a similar model developed for the
wastewater enterprise to provide complete multi-year budget projections and to conduct sensitivity
analysis for changes to selected key variables in the financial plan, including different financing options
for CIP, and/or different CIP schedules.
We believe that our unique combination of qualifications and experience will ensure successful
implementation of forward-looking solutions that will benefit the District and its customers.
bcupE UP 6ER YCES
Ir - 1, M FR R' :1 " `.1 n a s s-1-
The kick-off meeting provides a solid foundation for the project and serves as a forum in which District
staff can provide input on the project's approach, work plan, schedule, and priorities. RFC also develops
a better understanding of the District's financial goals and the model capability through this meeting.
RFC will review the financial position of the wastewater fund, including revenue and reserve
requirements (operating cash flow, capital projects, emergency, etc.), debt coverage, and annual rate
funded capital. This review will allow the project team to get a better understanding of the District's
financial picture and will serve as the basis for financial policy recommendations.
The task of developing a Multi-Year Financial Plan Model will include the projections of budget items,
such as: annual costs related to the collection system, labor, power, materials, capital expenditures,
operating and maintenance (O&M) expenses, reserve contributions, depreciation and debt service,
using assumptions based on different economic factors and growth trends.
RFC will develop a forecast of wastewater revenue requirements for the next 10-year planning period.
This will include an estimate of revenues based on current rates, growth in customers and fee levels, as
well as revenues generated from charges from ancillary services and other non-rate revenues. Revenue
requirements will be projected over the rate-setting period considering the current budget, the District's
capital improvement plan (CIP), the utilities' existing debt service, other obligations, and current
economic trends. RFC will identify funding needs and develop financing options for capital projects over
the long planning horizon, allowing the District to make timely adjustments to expenses, reserve
balances, or the timing of capital projects to smooth rate impacts and to maintain financial stability. The
RFC 3 1
Yorba Linda Water District
Proposal for Developing a Wastewater Financial Plan Model
financial model will have the capability to examine the impact of different financing options for CIP, such
as debt issuance or PAYGO. Lastly, the financial model will have the ability to examine the financial
consequences of annexing City sewer accounts within the District.
RFC will conduct a cash flow analysis/summary to determine the revenue adjustments needed to meet
projected revenue requirements for each year of the planning period. The cash flow worksheet in the
Model incorporates revenues generated from different sources, expenses needed to maintain the
utilities' systems, any transfers in and out of the working cash fund, as well as coverage needed to meet
current and proposed debt service requirements. RFC will also review reserves policies to recommend
appropriate reserves balances, such as: operating, capital, rate stabilization, etc., consistent with the
District's risk management practices and industry standards. The wastewater rates will be updated
based on the percentage increase in revenue developed from the financial plan.
The below dashboard is a sample of a recent financial model RFC has developed.
~~rrl•~p~~~ r°~l~ar~ru~al e~~ald ~v~~~r~l ~a~rl~~d:;r
The Dashboard allows quick decision making by visually displaying impacts of changes to selected variables.
Zero Selected Variables
xo-m. ,a,~n,re
Na of Years Display in Charts 5 Selertye.ar to show Financial 5tructure
Under Currenf'
e1 a511YV lYrL Iii lil f rn1:(Ir'11 ~1• 1 9i.i `'a._C:`4L PL?..^J
250% ypp
S1U
i~ 290A, -
I50~
520
?ut:a
•9a; 519
c . g- I
io zoed 2os~ Cosa aaie so.YO xoai xaY: :9u
.,n - n.t::.-u_~t~mprage I ....9a~nc prr,rr ...Y Orb se. , ~en.r,..nrary
` Required Dept Coverage 12 SA r meet L)eht Coverage ~-iordrurrent gexnues -~ir.44rupe:ed P- -s
millions KE:s FRV .S ~I CIP Expenditures
$.5p S§'.
~ 512
5~Q i19
$29
SIO -
$
" NIQ 3011 .1-1 "0
oTotal Reserve Balances -TOta.
4 Alert Reserve Balance . ueat Fmenci mg L pnrco
rtevAdjmcZJI* New D,L- 5 5 u,u-UU.:ga 5 S 5 5 -
RFC will conduct one half-day training session with District staff to demonstrate all of the key aspects of
the Model. The training will consist of reviewing methodologies used during the study and
understanding the Model's design and layout, how to adjust key variables that support the "what-if"
scenario development features of the Model, and how to update the Model with new inputs for the
RFC 4 1
INI
Yorba Linda Water District
Proposal for Developing a Wastewater Financial Plan Model
District's future use. At the completion of the training, RFC will provide the Model in Microsoft Excel
2007 format along with the Model user manual (in PowerPoint) to the District for its future use.
• 1 kick-off on-site meeting
• 1 half-day on-site training session
• Several phone conferences as needed for discussion and/or data clarification
• Kick-off meeting package to guide the discussion
• Data request list
• Wastewater Financial Plan Model in Microsoft Office ExceIT"2007
• Presentation materials for the training session (Model Manual)
RFC 5
Yorba Linda Water District
Proposal for Developing a Wastewater Financial Plan Model
PROJECT REFERENCES
RFC has been assisting El Toro Water District (District) with its rates for
several years. The District had not updated its water and wastewater rates
and rate structure in over ten years and was operating at a deficit. RFC
prepared a financial plan over a 12-year period considering operating and
capital expenses, debt and reserve requirements. A cost of service analysis
was also conducted to review fairness of rates and rate structures. Multiple
scenarios were developed to review impacts and suggested a phased
approach to implementing cost of service rates. Alternate innovative sources
of revenues were considered to minimize rate impacts. We also reviewed the
reclaimed water rates and surveyed surrounding agencies to compare rates,
sources of revenue, unit cost of providing service based on total sales, etc. to
determine the competitive effectiveness of the District's operations.
The District also engaged RFC to design a water budget rate structure for its
residential and irrigation accounts to be implemented in July 2010.
Michael Gr..., Residential water budgets include indoor allocations varying with number of
Assistant G41], occupants and outdoor allocations varying with weather data and irrigable
area. The irrigation area was determined based on a percentage of the
residual of the total parcel area minus building area acquired from the
Assessors' database to be refined when better data is available from
MWDOC. The formula for developing allocation budgets considers irrigation
efficiency and type of landscape. The whole concept was to encourage ef-
ficient use of water and send a strong signal for conservation.
RFC assisted the District in developing variance programs to accommodate
customers with unique user characteristics. RFC also developed a web-based
calculator so that customers could review impacts.
RFC developed a water budget rate model that allowed the District to quickly
view the impacts of alternate rates and budgets, so that policy makers could
make informed decisions. The water budget rate structure was designed to
ensure revenue stability, financial sufficiency, and to provide the appropriate
price signal on the different supply costs and conservation program funding
for the District. This tool was invaluable when presenting results in graphical
format to the District Board of Directors because it enabled them to see the
impacts of different water budgets on their customers in real-time. The Board
adopted the water budget rate structure in June 2010.
Lastly, RFC interfaced with Continental Utility Solutions, Inc. (CUSI), the Dis-
trict's billing consultant, and provided specifications to ensure that the
budget rate structure could be smoothly implemented.
RFC 6 1 g e
Yorba Linda Water District
Proposal for Developing a Wastewater Financial Plan Model
Western Municipal Water District (District) serves roughly 24,000 retail
and 8 wholesale customers in western Riverside County with
approximately 125,000 acre ft. of water per year from the Colorado River,
State Water Project, and groundwater. As a member agency of the
Metropolitan Water District of Southern California (MWD), the District
provides supplemental water to the cities of Corona, Norco, and Riverside,
as well as the water agencies of Box Springs Mutual, Eagle Valley Mutual,
Elsinore Valley, Lee Lake, and Rancho California. The District is also one of
five of the member agencies of the Santa Ana Watershed Project Authority
(SAWPA), a regional water resources planning and project implementation
organization. The District operates and maintains domestic and industrial
wastewater collection and conveyance systems for retail and contract
services customers in Lake Hills, March Air Reserve Base, Home Gardens,
and Norco.
RFC has been assisting the District with several projects including the
development of a water budget rate structure for its retail customers, the
development of a long-term financial plan for each cost center within the
rlemondC@wmwd.com District, a review and analysis of the annual water rate update, and a
water budget web calculator to be used as a public outreach tool.
The main objective of the water budget rate study is to identify and
thoroughly examine three (3) potential water budget rate structures for
each of the two identified cost centers (Murrieta and Riverside). RFC has
developed a Water Budget Rate Model (Model) in Excel 2007 so each of
the two costs centers will have the ability to change the key factors for all
water allocations, to provide revenue and impact analysis, and to generate
sample customer monthly bills under existing and proposed rates. At the
end of the study, RFC will present the results to the District Board in a
workshop and provide justification to ensure that the Water Budget Rate
Structure complies with Proposition 218 requirements in a concise yet
detailed technical memorandum. The Model will then be delivered to the
District.
To assist the District during water budget rate implementation, RFC is
developing a web-based bill calculator as a public outreach tool to allow
customers to review their allocations compared with their actual usage
and their bill impacts. The water budget rate structure is scheduled to be
implemented in 2011.
In 2010, RFC assisted the District in its annual water rate update study to
ensure revenue sufficiency for recovering the increasing costs of imported
water and to enhance revenue stability by designing a rate structure that
will reduce the District's dependency on property tax to fund its
operations.
RFC 7 1 g e
Yorba Linda Water District
Proposal for Developing a Wastewater Financial Plan Model
In order to better financially manage all 14 enterprises, the District needs
a comprehensive, yet user-friendly financial plan model which can be used
to facilitate communications between staff and the District's Board of
Directors about the financial implications of different financial policies and
capital projects. The Model assists coordination and decision making
between the engineering and finance staff to prioritize capital projects and
to define a capital financing plan to achieve a sustainable and achievable
solution. In fiscal year 2011, the District engaged RFC to develop a
customized 30-year Financial Plan Model (Model) with the ability to
conduct scenario analysis. The interactive dashboard of the Model displays
the Long-Term Financial Plan of the 14 enterprises in a graphical format. A
Capital Improvement Plan (CIP) manager was developed to save
customized CIP scenarios to be used for financial implication evaluations.
The built-in scenario manager enables Model users to save, load, and
compare the results of different assumptions, inputs, and CIP scenarios.
Customized financial reports in preset printed format can be generated at
an individual enterprise level and at an aggregate level for the whole
District.
CITY OF SAN DIEGO
The City of San Diego (City) engaged RFC to perform a water and
wastewater cost of service and rate design study. The study was conducted
with extensive stakeholder group involvement. The selected stakeholders
represented a variety of commercial businesses and residential
communities in the City. Metropolitan Wastewater Department (Metro)
provides wastewater services to the City and 14 other participating
agencies that are part of a regional wastewater system. The study included
a comprehensive review of the City's revenue requirements and allocation
methodology, review of the City's user classification method, and an
analysis of cost-of-service and rate design for City users. The rate structure
was modified to provide a more equitable sharing of costs consistent with
regulatory requirements. Rate design included an evaluation of rate
structure alternatives with an emphasis on incorporating a uniform
monthly base fee in conjunction with volume rates. The study also included
a review of the City's capacity charges.
The water rate study involved evaluation of billing data, extensive analysis
of the capital improvement program, allocation of CIP capacity between
expansion and replacement, and financial modeling to demonstrate City
compliance with regulatory requirements. Capacity charge calculations
were incorporated into the rate model to determine the effects on the City
and ensure adequate revenue collection. Cost-of-service rates have been
developed based on American Water Works Association methodologies
jcole@sandiego.ov using the base-extra capacity method, as well as transition rates, to provide
RFC 8 1
Yorba Linda Water District
Proposal for Developing a Wastewater Financial Plan Model
smooth transition to cost-of-service rates. Rates for this engagement were
implemented in July 2004 and updated in January 2007. RFC worked with
the City's attorneys to develop the Proposition 218 notice.
In 2010, RFC completed a recycled
water cost of service rate study Ii
involving various scenarios of cost We appreciate the work
sharing between the wastewater performed, and assistance
and water utilities and recovery of
sunk costs. The planning period for RFC provided to the City.
the recycled water study extends
over 40 years to determine when - Jim Barrett,
the recycled water utility recovers water Department Director
the investments made by the water enterprise.
PROJECT FEES
RFC will complete the above scope of services for a lump sum amount of $10,000. RFC will invoice the
District monthly based on percentage completion basis.
We are excited about this opportunity to assist the District with this important study. If you have any
questions, please do not hesitate to contact Sanjay Gaur at 213-327-4405.
Sincerely,
Sudhir D. Pardiwala, PE
Vice President
RFC 9 1
ITEM NO. 2.2
AGENDA REPORT
Meeting Date: June 13, 2011
To: Finance-Accounting Committee
From: Ken Vecchiarelli, General
Manager
Presented By: Stephen Parker, Finance Dept: Finance
Director
Prepared By: Delia Lugo, Senior Accountant
Subject: Authorization to Invest in Local Agency Fund
STAFF RECOMMENDATION:
That the Committee recommend the Board of Directors approve a resolution authorizing the
investment of monies in the Local Agency Investment Fund.
DISCUSSION:
Staff is requesting the authorization to invest funds in the Local Agency Investment Fund (LAIF) as
an alternative investment option and to add diversity to the Districts investment portfolio. The
District had an active account with LAIF up until 2006, when the District decided to invest funds with
Wells Capital Management. LAIF is a voluntary program created by statute: began in 1977 as an
investment alternative for California's local governments and special districts and it continues today
under Treasurer Bill Lockyer's administration. The enabling legislation for the LAIF is Section
16429.1 et seq. of the California Government Code. This program offers local agencies the
opportunity to participate in a major portfolio, which invests hundreds of millions of dollars, using the
investment expertise of the Treasurer's Office Investment staff at no additional cost to the taxpayer.
LAIF is part of a Pooled Money Investment Account (PMIA). PMIA has Policies, Goals, and
Objectives for the portfolio to make certain that our goals of Safety, Liquidity and Yield are not
jeopardized and that prudent management prevails. Currently there are 2,779 participants and a
pooled investment portfolio of $24.1 billion at LAIF.
Some key points in support of this request are as follows:
. No risk to the loss of principal
. Highest yield for the most conservative investment
. LAIF's average monthly yield is comparable to CaITRUST's Short Term Yield
PRIOR RELEVANT BOARD ACTION(S):
The District's current Investment Policy, adopted on March 11, 2010 under Resolution 10-03, lists
LAIF as an authorized investment category in Section 5.
Strategic Initiate FR-2C of the District's adopted 2011-2013 Strategic Plan mandates the District to
Implement an Approach to Ensure Reserves are Responsibly Funded. The action under
consideration will provide a higher level of diversity for the District's investments while preserving
principal, which ultimately lowers risk.
ATTACHMENTS:
Name: Description: Type:
Resolution No. 11-XX.doc Resolution Backup Material
LAIF Performance.pdf LAIF Performance Information Backup Material
LAIF_Participation _Chart.pdf LAIF Participation Chart Backup Material
PMIA Average Monthly Yields.pdf PM IA Monthly Average Yield Summary Backup Material
RESOLUTION NO. 11-XX
RESOLUTION OF THE BOARD OF DIRECTORS
OF YORBA LINDA WATER AUTHORIZING INVESTMENT OF MONIES IN THE
LOCAL AGENCY INVESTMENT FUND
WHEREAS, Pursuant to Chapter 730 of the statutes of 1976 Section 16429.1 was
added to the California Government Code to create a Local Agency
Investment Fund in the State Treasury for the deposit of money of a local
agency for purposes of investment by the State Treasurer; and
WHEREAS, the Board of Directors does hereby find that the deposit and withdrawal of
money in the Local Agency Investment Fund in accordance with the
provisions of Section 16429.1 of the Government Code for the purpose of
investment as stated therein as in the best interests of the Yorba Linda
Water District.
NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby
authorize the deposit and withdrawal of Yorba Linda Water District monies in the Local
Agency Investment Fund in the State Treasury in accordance with the provisions of
Section 16429.1 of Government Code for the purpose of investment as stated therein,
and verification by the State Treasurer's Office of all banking information provided in
that regard.
BE IT FURTHER RESOLVED, that the following Yorba Linda Water District officers or
their successors in office shall be authorized to order the deposit or withdrawal of
monies in the Local Agency Investment Fund:
(NAME) (NAME) (NAME)
(TITLE) (TITLE) (TITLE)
(SIGNATURE) (SIGNATURE) (SIGNATURE)
PASSED AND ADOPTED this XXth day of June 2011 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Resolution No. 11-XX Authorizing Investment of Monies in the Local Area Investment Fund 1
Michael J. Beverage, President
Yorba Linda Water District
ATTEST:
Kenneth R. Vecchiarelli, Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Arthur G. Kidman, Esq.
McCormick, Kidman & Behrens
Resolution No. 11-XX Authorizing Investment of Monies in the Local Area Investment Fund 2
Sill Leer, State Treasurer
Inside the State Treasurer's Office
.gig c estmient Fund (I-A'.-)
PMSA Performance Report LAIF Performance Repot
Average Quarter ending 03131]2011
Daily Quarter to Maturity
Date Yield* Date Yield (in days) Apportionment Rate: 0-51%
T'2 i ,'2U11 ❑.41 0.52 197 Earnings Ratio: .00001390282087'521
5,'22;2011 0.41 0.51 197, Fair Value Factor: 1,001262155
5/2312011 0.41 0._:1 192 Daily: 0.45%
5/24!2011 0.41 0.51 190 Quarter To Date: 0.52%n
5/25?2011 0.41 0.51 196 Average Life: 193
5126/2011 0.41 0.51 197
5/27/2011 0.40 0.50 189
5/2812011 0,40 0.50 189.
5/29/2011 0.40 0.50 185 PMIA Average Monthly Effective Yields
51/30/2011 0.40 0.50 185
5%31!2011 0.400.50 185 APR 2011 0.588%-„
6/112011 0.40 0.50 192 MAR 2011 0.500%
6/2.'2011 0.39 0.449 195 FEB 2011 0.512%
6i3.!2011 0.39 0.49 194
`Daily yield does not reflect capital gains or losses
Pealed Money Investment Account
Portfolio Composition
$70 Billion
04/30/11
Loans
Corporate Bands 6.77%
0.00%
Commercial Paper 'R
11.25%
z ~
i;
Time Deposits
':r=
r'
5.51%
Treasuries
47.24%
CDs/BNs
12,69%
Agencies Mortgages
15.84% 0.70%
LOCAL AGENCY INVESTMENT FUND
Participation as of 5/31/11
2,779 Agencies
160 BONDS 55 COUNTIES
309 TRUSTEES 6% 20
° 475 CITIES
11% 17%
- - - - - - - - -
f
1,780 DISTRICTS
64%
PMIA Average Monthly= Effective Yields Page 1 of 1
Pooled Money Investment Account
PMIA Average Monthly Effective Yields
Jars Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dee
1977 5.770 5.660 5.660 5.650 5.760 5.850 5.930 6.050 6.090 6.090 6.610 6.730
1978 6.920 7.050 7.140 7.270 7.386 7.569 7.652 7.821 7.871 8.110 8.286 8.769
1979 8.777 8.904 8.820 9.082 9.046 9224 9.202 9.528 9.259 9.814 111.223 10.218
1980 10.980 11.251 11.490 11.480 12.017 11.798 10.206 9.870 9.945 10.056 10.426 14.961
1981 10.987 11.686 11.130 11.475 12.179 11.442 12.346 12.844 12.059 12.397 11.887 11.484
1982 11.683 12.444 11.835 11173 12.270 11.994 12.235 11.909 11.151 11.111 10.704 10.401
1983 10,251 9.887 9.688 9.868 9.527 9.600 9.879 10.07610.202 10.182 10164 10.227
1984110.312110-280 10,382 10.594 10.843 11.119 11.355 11.557 11.597 11.681 11.474 11.024
1985 10.579 10.289 10.118 10.025 10.180 9.743 9.656 9.417 9.572 9.482 9.488 9.371
1986 9.252 9.090 8.958 8.621 8.369 8225 8.141 7.844 7.512 7.586 7.432 7.439
1987 7.365 7.157 7.205 7.044 7.294 7289 7.464 7.562 7.712 7.825 8.121 8.071
1988 8.078 8.050 7.945 7.940 7.815 7.929 8.089 8.245 8.341 8.397 8.467 8.563
1989 8.698 8.770 8.870 8.992 9.227 9204 .9.056 8.833 8.801 8.779 8.685 8.645
1990 8.571 8.538 8.506 8.497 8.531 8.538 8.517 8382 8.333 8321 8.269 8279
1991 8.164 8.002 7.775 7.666 7.374 7.169 7.098 7.072 6.859 6.719 6.591 6.318
1992 6.122 5.863 5.680 5.692 5.379 5.323 5.235 4.958 4.760 4.730 4.659 4.547
1993 4.678 4.649 4.624 4.605 4.427 4.554 4.438 4.472 4.430 4.380 4.365 4.384
1994 4.359 4.176 4.248 4.333 4.434 4.623 4.823 4.989 5.106 5.243 5.380 5.528
1995 5.612 5.779 5.934 5.960 6.008 5.997 5.972 5.910 5.832 5.784 5.805 5.748
1996 5.698 5.643 5.557 5.538 5.502 5.548 5.587 5.566 5.601 5.601 5.599 5.574
1997 5.583 5.575 5.580 5.612 5.634 5.667 5.679 5.690 5.707 5.705 5.715 5.744
1998 5.742 5.720 5.680 5.672 5.673 5.671 5.652 5.652 5.639 5.557 5.492 5374
1999 5.265 5210 5.136 5.119 5.086 5.095 5.178 5.225 5.274 5.391 5.484 5.639
2000 5.760 5.824 5.851 6.014 6.190 6.349 6.443 6.505 6.502 6.517 6.538 6.535
2001 5.372 6.169 5.976 5.760 5.328 4.958 4.635 4.502 4.288 3.785 3.526 3.2651
2002 3.4768 2.967 2.861 2.845 2.740 2,687 2.714 2.594 2.604 2.487 2.301 2.201
2003 2.103 1.945 1.904 1.858 1.769 1.697 1.653 1.632 1.635 1.596 1.572 1.545
2004 1.528 1.440 1.474 1.445 1.426 1.469 1.604 1.672 1.771 1.890 2.003 2.134
2005 2264 2368 2.542 2.724 2.856 2.967 3.083 3.179 3.324 3.458 1636 3.808
2006 3.955 4.043 4.142 4.305 4.563 4.700 4.849 4.946 5.023 5.098 5.125 5.129
2007 5.156 5.181 5.214 5.222 5.248 5.250 5.255 5253 5.231 5.137 4.962 4.801
2008 4.620 4.161 3.777 3.400 3,072 2.894 2.787 2-779 2.774 2.709 2.568 2,353
2009 2.046 1.869 1.822 1.607 1.530 1.377 1.035 0.925 0.750 0.646 0.611 0.569
2010 0,558 0.577 0.547 0.588 0.560 0.528 0.531 0] 513 0.500 0.480 0.454 01.452
20111 0.538 0-512 0.500 0.588 0.413
http://NN,Nvw.treasurer.ca.gov/pmla-laif7historicatlavg_tnn yids.asp 6/812011
ITEM NO. 3.1
AGENDA REPORT
Meeting Date: June 13, 2011
To: Finance-Accounting Committee
From: Ken Vecchiarelli, General
Manager
Presented By: Stephen Parker, Finance Dept: Finance
Director
Reviewed by Legal: N/A
Prepared By: Stephen Parker, Finance
Director
Subject: OPEB Liability Pay Down
DISCUSSION:
The District's Annual Required Contribution (ARC) for Other Post-Employment Benefits (OPEB) is
$217,979. This amount was budgeted in the current year, but was not in years past. Over the past
two years, YLWD only paid retiree benefits on a pay-as-you-go (PAYGO) basis, which resulted in
an underfunding of it's ARC by $236,483. Because of this liability, the Employee Liability Reserve
was established, calling for $100,000 to be set aside annually to eventually pay down our OPEB
liability.
Earlier this year the Board authorized investment in the California Employees Retirement Benefit
Trust (CERBT) for the difference between our ARC and the PAYGO retiree expenditures. At this
time, staff is planning to also place in the CERBT the $100,000 established by the Employee
Liability Reserve for FY 2010/11. This will save the District $5,000 immediately, as any OPEB
obligation (of which the District currently has $236,483 on its Statement of Net Assets) is assessed
a 5% actuarially assumed interest charge annually. If a payment is made to the CERBT prior to
June 30, 2011, that interest calculation will not be made on the portion covered by a payment. In
addition, money invested in the CERBT has realized a much better return historically as compared
to the District's investment portfolio.
Funding the CERBT with Employee Liability Reserve money makes prudent financial sense, and
complies with the purpose that the reserve was established. As such, the intention would be to fund
the CERBT with the $100,000 set aside for the Employee Liability Reserve in FY 2011/12 as well.
This action complies with Strategic Initiatives FR2-C Implement an Approach to Ensure Reserves
are Responsibly Funded, and FR3-C Manage Cash Flow to Maximize Investment Income.
PRIOR RELEVANT BOARD ACTION(S):
On January 26, 2011, the Board authorized the President to execute a CERBT Program Agreement
and Election of YLWD to Prefund Other Post Employment Benefits through CalPERS.
ITEM NO. 3.2
AGENDA REPORT
Meeting Date: June 13, 2011
To: Finance-Accounting Committee
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: 2008 COP Reserve Funds Investment
DISCUSSION:
The 2008 COP's called for a Reserve Fund to be established in the amount of $2,147,096.26 to
protect the bond-holders from a potential default by the District. These funds cannot be touched
until the principal payments are made in full unless the District is in default. The funds are, however,
in the name of YLWD. In the past 2 years, the funds have been invested in a US Bank Money
Market Account, earning a yield between 0.2% and 0.3% - see attached chart.
Through inquiries with US Bank, staff realized that a better yield could be obtained without risk to
the principal (unless the funds were pulled out). As such, staff is pleased to share that an
investment in a Federal Home Loan Bank note with a maturity of May 28, 2014 was entered into.
Federal Home Loan Bank notes are backed by the full faith and credit of the U.S. government. This
investment will result in an actual yield of 0.9% for the remaining three years, 3 to 4.5 times better
than the yield of the last two years. The difference will result in over $15,000 more in investment
income to the District over the current US Bank Money Market rate.
ATTACHMENTS:
Narne: Description: V y pe:
Investment yields.xls Yield by Investment Type - 2007-10 Backup Material
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PRA
ITEM NO. 3.3
AGENDA REPORT
Meeting Date: June 13, 2011
To: Finance-Accounting Committee
From: Ken Vecchiarelli, General
Manager
Presented By: Stephen Parker, Finance Dept: Finance
Director
Reviewed by Legal: N/A
Prepared By: Delia Lugo, Senior Accountant CEQA Compliance: N/A
Subject: April 2011 Budget to Actual Results
DISCUSSION:
Attached are the District's budget to actual summary results for the Water Fund, Sewer Fund and a
combined statement for both funds pertaining to the reporting month of April 2011. Overall, the
District revenue is trending below expectations due to lower water consumption from above normal
rainfall and cooler temperatures. Water operating revenue is 72.6% of annual budget, which is
lower by approximately 6.3% from the normal trend for the reporting 10 months of the fiscal year.
The budget was based on 15% conservation, and through April customer demands are down by
23% year to date. Variable water costs as a percentage of budget are slightly lower than operating
revenues.
The majority of the individual supplies and services expenses are trending below or on budget, with
a few exceptions that have been previously discussed in Finance-Accounting Committee meetings.
While we are 83% through the fiscal year, we have reached only 56% of the District's budgeted net
loss of $2.2 million resulting in a savings of approximately $1 million as compared to the budget.
PRIOR RELEVANT BOARD ACTION(S):
On May 9, 2011 the Committee reviewed, received and filed the March 31, 2011 Budget to Actual
Results.
ATTACHMENTS:
Name: Description: Type:
Water Sewer Apirl 2011.xls April 2011 Consolidated Statement Backup Material
Water Apr 2011.xlsx April 2011 Water Statements Backup Material
Sewer April 2011.xls April 2011 Sewer Statement Backup Material
Yorba Linda Water District
Summary Financial Report
Water & Sewer Funds
For Ten Months Ending April 30, 2011
Annual Actual YTD
Budget YTD through Under/(Over) %of
FY 10/11 April 30, 2011 Budget Annual Budget
Revenue (Operating):
Water Revenue (Consumption & Flat Charge) $25,672,831 $18,419,233 $7,253,598 71.75%
Sewer Revenue 1,235,402 1,095,221 $140,181 88.65%
Other 714,221 754,528 ($40,307) 105.64%
Total Operating Revenue: 27,622,454 20,268,982 7,353,472 73.38%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 12,667,236 8,995,227 3,672,009 71.01%
Salary Related Expenses 7,624,683 5,518,196 2,106,487 77.02%
Supplies & Services 3,987,702 2,682,658 1,305,044 67.27%
Depreciation & Amortization 52017,876------------------ 4,377755 640,121 87.24%
Total Operating Expenses: 29,297,497 21,573,836 7,723,661 73.64%
Operating Income (Loss) (1,675,043) (1,304,854) (370,189) 77.90%
Revenue (Non-Operating):
Interest and Investments 156,000 227,223 (71,223) 145.66%
Property Taxes 1,206,000 1,211,970 (5,970) 100.50%
Other 126,133 2661950 (-1-40-,-8-1-7)- 211.64%
Total Non-Operating Revenue: 1,488,133 1,706,143 (218,010) 114.65%
Expenses (Non-Operating):
Interest on Long Term Debt (1,940,954) (1,596,821) (344,133) 82.27%
Other Expense (103,193) (62,081) (41,112) 60.16%
Total Non-Operating Expenses: (2,044,147) (1,658,902) (385,245) 81.15%
Non-Operating Income (Loss) (556,014) 47,241 (603,255) -8.50%
Net Income (Loss) ($2,231,057) ($1,257,613) ($973,444) 56.37%
Contributed Capital 145,860 824,692 (678,832) 565.40%
Capital - Direct Labor - 354,267 354,267
Yorba Linda Water District
Water Fund
For Ten Months Ending April 30, 2011
FY 2011 YTD % of
Annual April Actual Under/(Over) Annual
Budget 2011 YTD Budget Budget
Revenue (Operating):
Water Revenue (Residential) $ 17,248,481 $ 830,373 $ 11,656,197 $ 5,592,284 67.58%
Water Revenue (Commercial & Fire Det.) 1,522,341 115,488 1,429,686 92,655 93.91%
Water Revenue (Landscape/Irrigation) 3,588,335 142,352 2,618,635 969,700 72.98%
Water Revenue (Service Charge) 3,313,674 279,821 2,714,715 598,959 81.92%
Other Operating Revenue 701,089 30,414 735,488 (34,399) 104.91%
Total Operating Revenue: 26,373,920 1,398,448 19,154,721 7,219,199 72.63%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 12,666,536 766,898 8,994,687 3,671,849 71.01%
Salary Related Expenses 6,809,598 705,311 4,891,404 1,918,194 76.95%
Supplies & Services:
Communications 374,576 16,029 194,311 180,265 51.87%
Contractual Services 708,372 71,226 594,736 113,636 83.96%
Data Processing 102,771 13,995 72,844 29,927 70.88%
Dues & Memberships 30,778 589 26,239 4,539 85.25%
Fees & Permits 44,020 4,753 50,712 (6,692) 115.20%
Board Election 72,800 - 32,485 40,315 0.00%
Insurance 314,314 8,793 203,142 111,172 64.63%
Materials 337,982 52,447 352,401 (14,419) 104.27%
District Activities, Emp Recognition 11,648 1,036 13,331 (1,683) 114.45%
Maintenance 325,227 34,870 152,973 172,254 47.04%
Non-Capital Equipment 92,611 8,148 46,542 46,069 50.26%
Office Expense 41,221 1,666 22,525 18,696 54.64%
Professional Services 632,764 27,423 300,249 332,515 47.45%
Training 48,147 1,801 16,773 31,374 34.84%
Travel & Conferences 40,830 1,067 15,503 25,327 37.97%
Uncollectible Accounts 45,955 - 5,612 40,343 12.21%
Utilities 111,930 6,220 71,625 40,305 63.99%
Vehicle Equipment 256,302 53,276 220,570 35,732 86.06%
Supplies & Services Sub-Total 3,592,248 303,339 2,392,573 1,199,675 66.60%
Depreciation & Amortization 4,403,257 390,502 3,872,970 530,287 87.96%
Total Operating Expenses 27,471,639 2,166,050 20,151,634 7,320,005 73.35%
Operating Income (Loss) (1,097,719) (767,602) (996,913) (100,806) 90.82%
Revenue (Non-Operating):
Interest 142,000 21,405 209,025 (67,025) 147.20%
Property Taxes 1,206,000 428,347 1,211,970 (5,970) 100.50%
Other Non-Operating Revenue 100,687 37,564 250,131 (149,444) 248.42%
Total Non-Operating Revenue: 1,448,687 487,316 1,671,126 (222,439) 115.35%
Expenses (Non-Operating):
Interest on Long Term Debt (1,940,954) (158,855) (1,596,821) (344,133) 82.27%
Other Expense (102,193) (3,972) (54,214) (47,979) 53.05%
Total Non-Operating Expenses: (2,043,147) (162,827) (1,651,035) (392,112) 80.81%
Non-Operating Income (Loss) (594,460) 324,489 20,091 (614,551) -3.38%
Total Income (Loss) $ (1,692,179) $ (443,113) $ (976,822) (715,357) 57.73%
Contributed Capital $ 92,807 $ 66,367 $ 498,055 $ (405,248) 536.66%
Ca ital - Direct Labor - $ 7,203 $ 348,477 $ 348,477
Yorba Linda Water District
Sewer Fund
For Ten Months Ending April 30, 2011
FY 2011 YTD % of
Annual April Actual Underi(Over) Annual
Budget FY 2011 YTD Budget Budget
Revenue (Operating):
Sewer Charge Revenue $ 1,132,574 $ 94,740 $ 992,942 $ 139,632 87.67%
Locke Ranch Assessments 102,828 36,729 102,279 549 99.47%
Other Operating Revenue 13,132 - 19,040 (5,908) 144.99%
Total Operating Revenue: 1,248,534 131,469 1,114,261 134,273 89.25%
Expenses (Operating):
Variable Costs (Power) 700 53 540 160 77.14%
Salary Related Expenses 815,085 64,418 596,792 218,293 73.93%
Supplies & Services:
Communications 39,284 1,672 20,084 19,200 51.13%
Contractual Services 61,613 9,078 54,589 7,024 88.60%
Data Processing 10,164 1,384 7,205 2,959 70.89%
Dues & Memberships 3,340 190 2,870 470 85.93%
Fees & Permits 6,382 13 5,035 1,347 78.89%
Board Election 7,200 - 3,213 3,987 44.63%
Insurance 31,086 870 20,092 10,994 64.63%
Materials 18,833 1,536 17,529 1,304 93.08%
District Activities 1,152 102 1,318 (166) 114.41%
Maintenance 41,973 1,108 37,438 4,535 89.20%
Non-Capital Equipment 20,509 2,860 15,148 5,361 73.86%
Office Expense 3,879 165 2,214 1,665 57.08%
Professional Services 66,576 2,840 34,058 32,518 51.16%
Training 5,629 511 21872 21757 51.020/o
Travel & Conferences 4,371 205 1,556 2,815 35.60%
Uncollectible Accounts 4,545 - 555 3,990 12.21%
Utilities 11,070 615 7,065 4,005 63.82%
Vehicle Equipment 57,849 74 57,244 605 98.95%
Supplies & Services Sub-Total 395,455 23,223 290,085 105,370 73.35%
Depreciation & Amortization 614,619 80,998 534,785 79,834 87.01%
Total Operating Expenses 1,825,859 168,692 1,422,202 403,657 77.89%
Operating Income (Loss) (577,325) (37,223) (307,941) (269,384) 53.34%
Revenue (Non-Operating):
Interest 14,000 1,748 18,198 (4,198) 129.99%
Other Non-Operating Revenue 25,446 2,922 16,819 8,627 66.10%
Total Non-Operating Revenue: 39,446 4,670 35,017 4,429 88.77%
Expenses (Non-Operating):
Other Expense (1,000) (7,867) 6,867 786.70%
Total Non-Operating Expenses: (1,000) - (7,867) 61867 786.70%
Non-Operating Income (Loss) 38,446 4,670 27,150 11,296 70.62%
Total Income(Loss) $ (538,879) $ (32,553) $ (280,791)E$ (258,088) 52.11%
Contributed Capital $53,053 - 326,637 (273,584) 615.68%
Capital - Direct Labor - (1,136) (5,790) $5,790 0.00%
ITEM NO. 3.4
AGENDA REPORT
Meeting Date: June 13, 2011
To: Finance-Accounting Committee
From: Ken Vecchiarelli, General
Manager
Presented By: Stephen Parker, Finance Dept: Finance
Director
Prepared By: Delia Lugo, Senior Accountant
Subject: Investment Report Through April 2011
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 presents a monthly investment
report to the Finance-Accounting Committee for their information and review.
DISCUSSION:
Staff is submitting the April 2011 Monthly Investment Report for your review. 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. The total yield for the
month ending April 2011 increased 6% to 0.93% as a result of the yield in CaITRUST's Short Term
fund increasing from 0.50% to 0.57%, and the yield in CaITRUST's Medium Term fund increasing
from 1.30% to 1.40%.
Staff would like to point out that the overall decrease in the investment balance is $250,000. Some
of the larger changes include a decrease of $220,000 in Water Operating Reserve and a $100,000
decrease in the Water Capital Project Reserve due to CIP spending.
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 March 31, 2011 was received and filed by the Finance-Accounting
Committee on May 9, 2011. The Investment Report for the quarter ended March 31, 2011 was
received and filed by the Board of Directors on May 12, 2011.
ATTACHMENTS:
Name: Description: Type:
Invst_Rpt 0411.xlsx April 2011 Investment Report Backup Material
Ivst Agenda Backup - Apirl 2011.xlsx Agenda Backup Backup Material
Yorba Linda Water District
Investment Portfolio Report
April 30, 2011
Market % Percent
Value Cost of Total Institution Yield
Cash & Checking Accounts:
$ 102,302 $ 102,302 Wells Fargo Bank
$ 102,302 $ 102,302 0.32% Total 0.00%
Money Market Accounts:
$ 696,949 $ 696,949 Wells Fargo Money Market 0.30%
$ 696,949 $ 696,949 2.24% Total 0.30%
$ 799,250 $ 799,250 2.57% Sub-total 0.30%
Money Market Account:
$ 8,181,605 $ 8,181,605 US Bank 2008 Revenue Bond 0.20%
$ 8,181,605 $ 8,181,605 26.34% 0.20%
CaITR UST
$ 4,502,775 $ 4,473,822 Ca1TRUST Short Term 0.57%
$ 17,582,488 $ 17,313,019 Ca1TRUST Medium Term 1.40%
$22,085,263 $21,786,841 71.10% 1.23%
$ 31,066,118 $ 30,767,696 100% Total Investments 0.93%
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 Lugo, Senior Accountant
4/30/11
Investment Summary Report
Below is a chart summarizing the yields as well as terms and maturities for the month of April 2011:
Avg. Portfolio Avg. Portfolio # of Avg. Term
Month Yield Without Yield With Days to of Portfolio
of 2010 CalTRUST CalTRUST Maturity In Days
April 0.20% 0.93% 368 276
Below is are charts comparing operating fund interest for current and prior fiscal years.
Actual Interest 4/30/2010 4/30/2011
Monthly - April $ 18,009 $ 23,152
Year-to-Date $ 182,840 $ 227,223
Budget 2009/2010 2010/2011
Interest Budget, April YTD $ 106,583 $ 130,000
Interest Budget, Annual $ 127,900 $ 156,000
Interest earned on investments is recorded in the fund that owns the investment.
Investment Summary Comparison Between Current and Previous Month
The distribution of investments in the portfolio both in dollars and as a percentage of the total portfolio by funds
is as follows:
March 2011 % Alloc April 2011 % Alloc
Fund Description Balance 3/31/2011 Balance 4/30/2011
Water Operating Reserve $ 2,396,918 7.53% $ 2,334,459 7.35%
Water Emergency Reserve 2,072,500 6.51% 2,075,414 6.54%
Water Capital Project Reserve 16,961,824 53.32% 16,860,251 53.10%
Water Reserve for Debt Service 76 0.00% 92,677 0.29%
COP Revenue Bond 2008 - Reserve 2,147,096 6.75% 2,147,096 6.76%
COP Revenue Bond 2008 6,033,113 18.96% 6,034,509 19.00%
Sewer Operating 496,394 1.48% 460,784 1.45%
Sewer Emergency Reserve 1,005,375 3.16% 1,008,477 3.18%
Sewer Capital Project Reserve 726,692 2.29% 736,869 2.33%
31,839,988 100.00% $ 31,750,536 100.00%
Wells Fargo Bank Checking
Water Operating (510,058) (669,032)
Sewer Operating (18,236) (15,386)
(528,294) (684,418)
Totals $ 31,311,694 $ 31,066,118