HomeMy WebLinkAbout2012-05-23 - Finance-Accounting Committee Meeting Minutes MINUTES OF THE
YORBA LINDA WATER DISTRICT
FINANCE-ACCOUNTING COMMITTEE MEETING
May 23, 2012
A meeting of the Finance-Accounting Committee was called to order by Director Kiley at
4:00 p.m. The meeting was held at the District's Administrative Office at 1717 E.
Miraloma Ave, Placentia CA 92870.
COMMITTEE STAFF
Director Robert R. Kiley, Chair Ken Vecchiarelli, General Manager
Director Phil Hawkins Stephen Parker, Finance Manager
1. PUBLIC COMMENTS
None.
2. ACTION CALENDAR
2.1. Unaudited Financial Statements for the Period Ending March 31, 2012
Mr. Parker presented the quarterly full-accrual financial statements and
asked for a recommendation that they be received and filed by the Board.
The information contains a balance sheet and budget to actual statements
for the water fund, sewer fund and combined. The Committee had no
questions and supported staff's recommendation.
2.2. Appropriations Limit for Fiscal Year 2012/13
Mr. Parker explained that the Appropriations Limit was required by the
California Constitution and restricts the amount of annual appropriations
from the proceeds of taxes. The District's budgeted property tax revenue
is substantially lower than the calculated limit of $5,636,910. A resolution
adopting the appropriations limit for FY 2012/13 was presented to the
committee and they supported bringing it before the Board at the June 14`h
Board meeting.
2.3. Financial Reserves Policy for FY 2012/13
Mr. Parker submitted for the Committee's recommendation the Financial
Reserves Policy for FY 2012/13. Mr. Parker indicated that the policy was
unchanged from the time it was previously submitted to the Committee as
a discussion item and from when it was submitted to the entire Board at
the April Budget Workshop. The Committee had no questions and
supported bringing the policy before the Board at the June 14`h Board
meeting.
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3. DISCUSSION ITEMS
3.1. Investment Report for Period Ending April 30, 2012
Mr. Parker presented the April 2012 Monthly Investment Report for the
Committee's review. There were no dramatic changes from the previous
month, with the most noticable being that the Water Operating fund
increased by $837,000 primarily due to the receipt of scheduled property
tax apportionments. The Committee had discussion as to techniques to
try to maximize yield and Mr. Parker explained staff's apprehension with
focusing on yield as the primary driver of investment decisions. Mr.
Parker stated that his primary responsibility as the District's Treasurer was
to preserve the Safety of the investments of the District, then ensure the
Liquidity to pay bills existed, followed by trying to maximize the Yield. Mr.
Parker explained that staff desired to make some wholesale changes in
the investment policy which would act as a guide for future investments.
3.2. April 2012 Budget to Actual Results
Mr. Parker discussed the information presented in the April 2012 Budget
to Actual Results. There were no significant changes from the previous
month and the Committee had no additional questions.
3.3. March 2012 Debt Service Ratio
Mr. Parker discussed the debt service ratio, which was taken from the full-
accrual information that was discussed in Item 2.1. The District is healthy
as it relates to our debt service ratio. The Committee suggested that the
March 2012 Debt Service Ratio be included with the rest of the information
that was submitted in Item 2.1 and continue to be brought before the
Board quarterly.
3.4. FY 2012/13 Budget Calendar Update
Mr. Parker discussed the changes made to the Budget Calendar since the
last Committee meeting. As the budget process was coming to and end
next month, Mr. Parker indicated this would be the last update presented.
3.5. Advanced Refunding and Line of Credit Status (Verbal Report)
Mr. Parker gave a brief update to the Committee on the progress of the
Advanced Refunding of the 2003 COP's and the possible line of credit.
The draft line of credit note reviewed by staff and Bond Counsel identified
that an area of concern was the three-year term of the line of credit. The
entire balance of the line would have to be repaid before the end of the
three-year term unless a renewal was granted. However, in the current
draft, no renewal opportunity was documented. This item has been
addressed in comments back to Wells Fargo's Bond Counsel, but is an
area that staff has a concern about as the District continues to pursue the
line of credit option.
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3.6. Status of Strategic Plan Initiatives
Mr. Parker presented the March 2012 Strategic Plan Updates, which were
revised since the last meeting.
3.7. Future Agenda Items and Staff Tasks
The Committee asked that staff include the March 2012 Debt Service
Ratio along with financial information presented to the Board quarterly.
4. ADJOURNMENT
4.1. The Committee adjourned at 4:40 p.m. The next meeting of the Finance-
Accounting Committee will be held June 25, 2012 at 4:00 p.m.
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