Loading...
HomeMy WebLinkAbout2012-10-24 - Finance-Accounting Committee Meeting Agenda Packet Yorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING Wednesday, October 24, 2012, 1:00 PM 1717 E Miraloma Ave, Placentia CA 92870 COMMITTEE STAFF Director Robert R. Kiley, Chair Steve Conklin, Acting General Manager Director Phil Hawkins Delia Lugo, Senior Accountant 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. 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. 2.1. Budget to Actual Results for September 2012 2.2. Investment Report for Period Ending September 30, 2012 2.3. Status of Strategic Plan Initiatives 2.4. Future Agenda Items and Staff Tasks 3. ADJOURNMENT 3.1. The next meeting of the Finance-Accounting Committee will be held Monday, November 26, 2012 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: October 24, 2012 To: Finance-Accounting Committee From: Steve Conklin, Acting General Manager Presented By: Stephen Parker, Finance Dept: Finance Manager Prepared By: Delia Lugo, Senior Accountant Subject: Budget to Actual Results for September 2012 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 September 2012. For the month of September 2012, the District water revenue is 33.1% of annual budget, which is within a half a percent of the historic trend. Our water consumption baseline is 298 gallons per capita per day (GPCD), with a 20% reduction by 2020 target of 238.5 GPCD. For the current fiscal year through September 2012, our average consumption is 267 GPCD, which is 52% of the way to our goal. Variable water costs are higher than budgeted due to the District's intentional strategy to use a greater percentage of the more expensive imported water in the first half of the year, before MWD's rate increase goes into effect. The majority of the Water Fund's individual Supplies and Services expenses are trending below or near budget. Dues and Memberships and Insurance are over due to the timing of receiving and paying annual invoices. Non-Capital Equipment, Office Expense and Professional Services are all trending more than a month ahead of schedule. Non-Capital Equipment is higher due to the purchase of replacement switches for the ring network communications for the wells and purchase of components for the Redundant SCADA Communication Radio System. Office Expense is higher primarily due to over $6,000 in charges for a reprinting of the District's water Atlas Maps, which was budgeted in the prior year, but delays caused them to not be delivered until the current year. Professional Services is higher primarily due to over $112,000 being charged for the settlement and mutual release of the District's former General Manager. Staff is researching to determine if there is a more appropriate place to charge these amounts. Sewer Other Operating Revenue is well over budget due to the timing of invoicing and receiving payments for FOG fees. The Sewer Funds Supplies and Services expenses are trending below or on budget, with most of the exceptions being line items mentioned for the Water Fund, as the Sewer Fund receives a 7% allocation of most Water Fund expenses. In addition to the items described in Water, Fees & Permits and Vehicle Equipment are trending higher in Sewer. Fees & Permits was higher primarily due to the District's having already received two quarterly invoices for OCHA FOG/BMP inspection fees from Orange County Health Care Agency. Vehicle Equipment was higher than budgeted due to Unit 154, a Vactor truck, needing over $15,000 in repairs for rebuilding the main high-pressure water pump. STRATEGIC PLAN: FR 1-F: Continue to Record and Report the Fairly Stated Financial Activities of the District in a Timely and Transparent Manner to the Board of Directors and Member Agencies ATTACHMENTS: —ime: Description: Type: September 2012 Combined.xlsx September 2012 Consolidated Statement Backup Material September 2012 Water.xlsx September 2012 Water Fund Backup Material September 2012 Sewer.xlsx September 2012 Sewer Fund Backup Material Yorba Linda Water District Summary Financial Report Water&Sewer Funds For Three Months Ending September 30, 2012 Original YTD YTD YTD Budget Actual Under(Over) %of FY 2013 FY 2013 Budget Budget Revenue (Operating): Water Revenue (Residential) $15,405,197 $5,297,139 $10,108,058 34.39% Water Revenue (Commercial & Fire Det.) 1,822,665 567,352 1,255,313 31.13% Water Revenue (Landscape/Irrigation) 4,035,121 1,480,325 2,554,796 36.69% Water Revenue (Service Charge) 3,755,191 905,223 2,849,968 24.11% Sewer Charge Revenue 1,548,682 398,784 1,149,898 25.75% Locke Ranch Assessments 198,433 1,112 197,321 0.56% Other Operating Revenue 643,737 246,219 397,518 38.25% Total Operating Revenue: 27,409,026 8,896,154 18,512,872 32.46% Revenue (Non-Operating): Interest 170,000 21,881 148,119 12.87% Property Tax 1,244,320 39,079 1,205,241 3.14% Other Non-Operating Revenue 494,437 178,879 315,558 36.18% Total Non-Operating Revenue: 1,908,757 239,839 1,668,918 12.57% Total Revenue 29,317,783 9,135,993 20,181,790 31.16% Expenses (Operating): Variable Water Costs (G.W., Import& Power) 12,953,024 5,001,529 7,951,495 38.61% Salary Related Expenses 7,648,891 1,648,312 6,000,579 21.55% Supplies &Services 3,849,602 1,147,495 2,702,107 29.81% Total Operating Expenses 24,451,517 7,797,336 16,654,181 31.89% Expenses (Non-Operating): Interest on Long Term Debt 2,011,395 467,814 1,543,581 23.26% Other Expense 124,210 8,841 115,369 7.12% Total Non-Operating Expenses: 2,135,605 476,655 1,658,950 22.32% Total Expenses 26,587,122 8,273,991 18,313,131 31.12% Net Income(Loss) Before Special Item 2,730,661 862,002 1,868,659 31.57% Special Item - 835,943 (835,943) 0.00% Net Income(Loss) Before Depreciation 2,730,661 26,059 2,704,602 0.95% Depreciation &Amortization 6,602,339 1,667,574 4,934,765 25.26% Total Net Income(Loss) ($3,871,678) ($1,641,515) ($2,230,163) 42.40% Yorba Linda Water District Water Fund For Three Months Ending September 30, 2012 Sept YTD YTD YTD Budget Actual Actual Under(Over) % of FY 2013 FY 2013 FY 2013 Budget Budget Revenue(Operating): Water Revenue(Residential) $15,405,197 $1,713,105 $5,297,139 $10,108,058 34.39% Water Revenue(Commercial & Fire Det.) 1,822,665 179,729 567,352 1,255,313 31.13% Water Revenue(Landscape/Irrigation) 4,035,121 490,505 1,480,325 2,554,796 36.69% Water Revenue(Service Charge) 3,755,191 311,550 905,223 2,849,968 24.11% Other Operating Revenue 585,929 86,306 215,216 370,713 36.73% Total Operating Revenue: 25,604,103 2,781,195 8,465,255 17,138,848 33.06% Revenue(Non-Operating): Interest 150,000 8,216 18,703 131,297 12.47% Property Tax 1,244,320 34,881 39,079 1,205,241 3.14% Other Non-Operating Revenue 490,262 46,194 170,156 320,106 34.71% Total Non-Operating Revenue: 1,884,582 89,291 227,938 1,656,644 12.09% Total Revenue 27,488,685 2,870,486 8,693,193 18,795,492 31.62% Expenses (Operating): Variable Water Costs (G.W., Import& Power) 12,953,024 1,952,961 5,001,529 7,951,495 38.61% Salary Related Expenses 6,741,403 496,062 1,440,349 5,301,054 21.37% Supplies &Services: Communications 280,232 19,497 30,512 249,720 10.89% Contractual Services 455,041 49,191 104,141 350,900 22.89% Data Processing 125,866 6,158 22,393 103,473 17.79% Dues& Memberships 57,609 734 24,633 32,976 42.76% Fees& Permits 139,165 18,799 30,048 109,117 21.59% Board Election 59,055 - - 59,055 0.00% Insurance 259,656 200,336 209,355 50,301 80.63% Materials 455,226 56,096 139,511 315,715 30.65% District Activities, Emp Recognition 17,298 1,317 2,668 14,630 15.42% Maintenance 310,320 25,326 52,487 257,833 16.91% Non-Capital Equipment 81,370 7,546 32,098 49,272 39.45% Office Expense 37,702 1,846 12,965 24,737 34.39% Professional Services 749,878 126,951 273,882 475,996 36.52% Training 41,353 5,310 5,888 35,465 14.24% Travel &Conferences 41,902 494 2,083 39,819 4.97% Uncollectible Accounts 36,270 - (403) 36,673 -1.11% Utilities 79,050 3,566 22,572 56,478 28.55% Vehicle Equipment 282,400 16,246 76,389 206,011 27.05% Supplies &Services Sub-Total 3,509,393 539,413 1,041,222 2,468,171 29.67% Total Operating Expenses 23,203,820 2,988,436 7,483,100 15,720,720 32.25% Expenses (Non-Operating): Interest on Long Term Debt 2,009,777 155,938 467,814 1,541,963 23.28% Other Expense 118,210 2,947 8,841 109,369 7.48% Total Non-Operating Expenses: 2,127,987 158,885 476,655 1,651,332 22.40% Total Expenses 25,331,807 3,147,321 7,959,755 17,372,052 31.42% Net Income(Loss) Before Special Item 2,156,878 (276,835) 733,438 1,423,440 34.00% Special Item - - 835,943 (835,943) 0.00% Net Income(Loss) Before Depreciation 2,156,878 (276,835) (102,505) 2,259,383 -4.75% Depreciation &Amortization 5,332,175 449,583 1,348,749 3,983,426 25.29% Total Net Income(Loss) ($3,175,297) ($726,418) ($1,451,254) ($1,724,043) 45.70% Yorba Linda Water District Sewer For Three Months Ending September 30,2012 Sept YTD YTD YTD Budget Actual Actual Under(Over) %of FY 2013 FY 2013 FY 2013 Budget Budget Revenue(Operating): Sewer Charge Revenue $1,548,682 $132,251 $398,784 $1,149,898 25.75% Locke Ranch Assessments 198,433 545 1,112 197,321 0.56% Other Operating Revenue 57,808 387 31,003 26,805 53.63% Total Operating Revenue: 1,804,923 133,183 430,899 1,374,024 23.87% Revenue(Non-Operating): Interest 20,000 1,587 3,178 16,822 15.89% Other Non-Operating Revenue 4,175 - 8,723 (4,548) 208.93% Total Non-Operating Revenue: 24,175 1,587 11,901 12,274 49.23% Total Revenue 1,829,098 134,770 442,800 1,386,298 24.21% Expenses(Operating): Salary Related Expenses 907,488 70,156 207,963 699,525 22.92% Supplies&Services: Communications 23,018 1,531 2,490 20,528 10.82% Contractual Services 34,280 4,000 8,379 25,901 24.44% Data Processing 9,474 218 1,440 8,034 15.20% Dues&Memberships 4,583 (215) 1,584 2,999 34.56% Fees&Permits 12,155 1,253 4,514 7,641 37.14% Board Election 4,445 - - 4,445 0.00% Insurance 19,544 15,079 15,757 3,787 80.62% Materials 34,799 961 1,904 32,895 5.47% District Activities, Emp Recognition 1,302 99 200 1,102 15.36% Maintenance 71,650 3,568 22,227 49,423 31.02% Non-Capital Equipment 16,130 480 3,548 12,582 22.00% Office Expense 2,823 139 976 1,847 34.57% Professional Services 37,582 9,607 16,003 21,579 42.58% Training 4,747 400 1,170.0 3,577 24.65% Travel&Conferences 3,498 - 119 3,379 3.40% Uncollectible Accounts 2,730 - (35) 2,765 -1.28% Utilities 5,950 331 1,906 4,044 32.03% Vehicle Equipment 51,499 1,197 24,091 27,408 46.78% Supplies&Services Sub-Total 340,209 38,648 106,273 233,936 31.24% Total Operating Expenses 1,247,697 108,804 314,236 933,461 25.19% Expenses(Non-Operating): Interest Expense 1,618 - - 1,618 0.00% Other Expense 6,000 - 6,000 0.00% Total Non-Operating Expenses: 7,618 - - 7,618 0.00% Total Expenses 1,255,315 108,804 314,236 941,079 25.03% Net Income(Loss) Before Depreciation 573,783 25,966 128,564 445,219 22.41% Depreciation&Amortization 1,270,164 106,275 318,825 951,339 25.10% Total Net Income(Loss) ($696,381) ($80,309) ($190,261) ($506,120) 27.32% ITEM NO. 2.2 AGENDA REPORT Meeting Date: October 24, 2012 To: Finance-Accounting Committee From: Steve Conklin, Acting General Manager Presented By: Stephen Parker, Finance Dept: Finance Manager Prepared By: Delia Lugo, Senior Accountant Subject: Investment Report for Period Ending September 30, 2012 SUMMARY: Staff is submitting the September 2012 Monthly Investment Report for the Committee's review. DISCUSSION: The Investment Portfolio Report presents the market value and percent yield for all 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 September 2012 increased to 0.78%. This is the result of the yield change of investments held in CaITRUST's Medium Term portfolio from 0.88% to 0.90% and Short Term portfolio from 0.37% to 0.38%. The overall decrease in the investment balance from the previous month is approximately $1.9 million. A couple of the larger balance changes include a decrease in the Reserve for Debt Service fund of $1.5 million due to the September 30, 2012 Debt Service principal and interest payment in the amount of $1,874,000 and a decrease of $1 million in the Water Capital Project Reserve due to the spending on CIP projects. STRATEGIC PLAN: FR 1-F: Continue to Record and Report the Fairly Stated Financial Activities of the District in a Timely and Transparent Manner to the Board of Directors and Member Agencies ATTACHMENTS: Description: Type: Investment Report for Period Ending September 30, Invst Rpt 9-12.xlsx Backup Material 2012 Invst Agenda Backup - September 2012.xlsx Agenda Back-up Backup Material Yorba Linda Water District Investment Portfolio Report September 30, 2012 Market % Percent Value Cost of Total Institution Yield Checking Account: $ 185,526 $ 185,526 Wells Fargo Bank $ 185,526 $ 185,526 1.04% Total 0.00% Money Market Accounts: $ 54,936 $ 54,936 Wells Fargo Money Market 0.05% 2,000,629 2,000,629 Bank of the West 0.35% 2,700 2,700 US Bank(2008 Bond Reserve) 0.04% $ 2,058,265 $ 2,058,265 11.51% Total 0.34% Federal Home Loan Bank: 2,156,835 $ 2,144,397 US Bank(2008 Bond Reserve) 1.35% $ 2,156,835 $ 2,144,397 12.06% 1.35% Pooled Investment Accounts: $ 2,990,701 $ 2,990,701 Local Agency Investment Fund 0.38% 201,189 201,189 Ca1TRUST Short Term 0.37% 10,285,568 10,237,886 Ca1TRUST Medium Term 0.88% $ 13,477,458 $ 13,429,776 75.39% 0.76% $ 17,878,084 $ 17,817,964 100% Total Investments 0.78% 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 9/30/12 Investment Summary Report Below is a chart summarizing the yields as well as terms and maturities for the month of September 2012: Avg. Portfolio Avg. Portfolio #of Month Yield Without Yield With Days to of 2012 CaITRUST CaITRUST Maturity September 0.63% 0.78% 93 Below is are charts comparing operating fund interest for current and prior fiscal years. Actual Interest 9/30/2011 9/30/2012 Monthly-September $ 23,259 $ 9,803 Year-to-Date $ 48,083 $ 21,881 Budget 2011/2012 2012/2013 Interest Budget, September YTD $ 47,500 $ 37,500 Interest Budget, Annual $ 190,000 $ 150,000 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: August 2012 %Alloc September 2012 %Alloc Fund Description Balance 8/31/2012 Balance 9/30/2012 Water Operating Reserve $ 1,965,551 6.63% $ 2,618,551 14.80% Water Emergency Reserve 1,004,574 5.47% 1,005,326 5.68% Water Capital Project Reserve 10,172,163 54.64% 9,146,146 51.69% Water Reserve for Debt Service 1,590,419 7.13% 137,513 0.78% Maintenance Reserve 200,214 1.09% 200,214 1.13% COP Revenue Bond 2008- Reserve 2,161,078 11.77% 2,159,534 12.21% COP Revenue Bond 2008 14,550 0.08% - 0.00% Sewer Operating 161,475 0.88% 161,488 0.91% Sewer Emergency Reserve 1,003,570 5.46% 1,004,321 5.68% Sewer Capital Project Reserve 1,258,642 6.85% 1,259,464 7.12% $ 19,532,235 100.00% $ 17,692,557 100.00% Wells Fargo Bank Checking Water Operating 198,531 100,153 Sewer Operating 48,882 85,374 247,413 185,527 Totals $ 19,779,648 $ 17,878,084 ITEM NO. 2.3 AGENDA REPORT Meeting Date: October 24, 2012 Subject: Status of Strategic Plan Initiatives DISCUSSION: Attached are the strategies identified in the 2011-2013 Strategic Plan that relate to Fiscal Responsibility, which are overseen by the Finance-Accounting Committee. Included is an update on each strategy relating to Fiscal Responsibility. ATTACHMENTS: Name: Description: Type: Strategic Plan Tracking- FA.Pdf Strategic Plan Tracking-FA Backup Material Strategic Plan Initiatives Status Report Finance-Accounting Committee Strategies Lead Party Comments October 2012 Progress FR 1: Maintain Fiduciary Res onsibilit Revise the Water and Sewer Rules General Complete Study in House Updated Customer Service Fee Schedule presented to Finance-Accounting FR 1-C and Regulation and Evaluate Fee Manager/ and Recommend Fees Committee on September 26. Sewer Rules and Regulations and Fee Schedule will be Schedules Regularly for Proper Finance Structure Update for brought before the Board at the end of 2012. Cost of Service Coverage Director Adoption by December 2011 Continue to Record and Report Quarterly the Board receives the Fairly Stated Financial General full-accrual financial The Board received the June 2012 investment report at the August 9th Board FR 1-F Activities of the District in a Manager/ statements. The annual meeting and the 4th quarter full-accrual financial statements at the September 13th Timely and Transparent Manner Finance audit is provided timely to Board meeting. to the Board of Directors and Director the Board and public. Member Agencies Continue to Improve Monthly financial Communications of the District's General information is provided to The Finance-Accounting Committee received the September 2012 budget to actual FR 1-G Financial Information to the Board Manager/ management and the financial statements and the September 2012 investment report at the October 24 of Directors,Member Agencies, Finance Finance-Accounting Committee meeting. Management,and the Financial Director Committee. Community Completed Strategies Lead Party Comments October 2012 Progress Finance Accounting Multi-year financial plan provided to the Board during April 11 workshop. A Develop a Comprehensive Multi- Finance Committee to consider FR 1-A Year Financial Plan Director Adding Sewer Model to comprehensive version is included in the FY 2012/13 budget,which was presented to the Board on June 14, 2012. Contract in Jun-11 Prepare a High Level Annual FY 2011/12 Budget and CAFR for period ending June 30, 2011 received Budget Document and Government Finance Officer's Association awards for excellence. FY 2012/13 Comprehensive Annual Financial Finance Include Fees in FY 2011/12 Budget approved by the Board on June 28, 2012. Staff submitted for the CSMFO FR 1-13 Report and Compete for Director Budget budget award in August and the GFOA budget award in September.The Board Recognition by the Government accepted the 2012 CAFR on October 11, 2012 and staff submitted the CAFR for Finance Officers Association the GFOA award in October. Evaluate and Revise the Sewer Finance Revised Allocation included Completed March 2011. Consider changing allocation methodology in conjunction FR 1-D Fund Allocation Director in FY 2011/12 Budget with FY 2013/14 budget process. Substantial Rate Increase Maintain Commitment to Strong Board of Adopted in Sept 2009 Quarterly review of debt service ratios will continue as well as integrating the ratio FR 1-E Debt Services Ratio Directors followed by Pass Through into forward financial projections. Increase in Aug 2010 Latest Revisions Reviewed by Review the Reserve Policy and Finance Finance-Accounting Completed review/revision of reserve policy for FY 12/13. Reserve policy adopted by FR 2-A Funding Levels Annually Director/Board Committee for Board of the Board on June 14, 2012. of Directors Directors to Consider in Jun- 11 Financial model allowed review of reserves on a long-term basis. Staff recommended Implement an Approach to Ensure Finance Rates, COP's and Other a 3-year rate increase to ensure reserves are responsibly funded. Board voted to FR 2 C Reserves are Responsibly Funded Director/Board Capital Financing Options fixed approve 1.5, 1.5, 2.5%rate increase on the charge plus a change in the fixed of Directors charge to be based on the meter size at the Public Hearing on June 21. Review Opportunities to Earn Card Options Discussed with "Cash Back"on Operating Finance Finance-Accounting FR 3-B Expense through Commercial Director Committee in March-Add'1 YLWD is online with Cal-CARD. Credit Card Accounts research Required Manage Cash Flow to Maximize Finance Track Opportunities and Delia Lugo, Senior Accountant reviews the cash balances and needs daily. Mutliple FR 3-C Effectiveness with Quarterly times a month,excess cash is transferred to investments to earn interest until the Investment Income Director Investment Reports next check register. Finance Board to Consider Rate The January 16, 2012 Board Workshop showed the end product of the cost of service Complete the Cost of Service and and water rate study. Raftelis Financial Consultants completed a document to FR 4-A Water Rates Study Director/Board Structure Alternatives in Oct support the District's Prop 218 notice,which was received and filed by the Board on of Directors 2011 April 26. Board of A recommendation to update the current fixed charge with a volumetric approach Evaluate Equitable Rate Directors/ Board to Consider Rate was presented to the Board during the April 11 Workshop. The Rate Increase Notice FR 4-13 Structures that Promote Structure Alternatives in Oct approved by the Board on April 26 to be mailed to the District's customers reflects Conservation and Efficiency General 2011 those proposed changes.The public hearing on those changes occurred on June 21, Manager 2012.