HomeMy WebLinkAbout2012-11-26 - Finance-Accounting Committee Meeting Minutes MINUTES OF THE
YORBA LINDA WATER DISTRICT
FINANCE-ACCOUNTING COMMITTEE MEETING
November 26, 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 Stephen Parker, Finance Manager
Director Phil Hawkins
1. PUBLIC COMMENTS
None.
2. ACTION CALENDAR
2.1. Unaudited Financial Statements for the Period Ending September 30,
2012
Mr. Parker presented the quarterly financial statements and debt service
coverage calculation for the period ending September 30, 2012. As this is
the second year that full-accrual quarterly information has been made
available by the Finance Department, the balance sheet includes a
comparison with the first quarter of the last fiscal year. Through the first
quarter, the debt service coverage is lower than in the past couple of
years but is still strong at 179%. Mr. Parker pointed out that the cash-
financing of our aggressive CIP plan as well as the lawsuit settlement has
caused our cash reserves to decrease rapidly in the last year. He also
highlighted that an intentional funding of the California Employees
Retirement Benefit Trust with reserve funds has turned the Net OPEB
Liability to a Net OPEB Asset. The Committee had no further questions
and supported staff recommendation of moving the item to the consent
calendar at the next Board meeting.
3. DISCUSSION ITEMS
3.1. Budget to Actual Results for October 2012
Mr. Parker presented the October Budget to Actual results. He indicated
that more Supplies and Services expense line items are trending over
budget due to four consecutive decreases in the District's supplies and
services budget. Mr. Parker discussed the reasons why Materials was on
pace to go over budget, but he shared that he believed the District still had
the opportunity to meet their overall Supplies and Services budget. The
Committee had no further questions.
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3.2. Investment Reports for Period Ending October 31, 2012
Mr. Parker reviewed the October 2012 Investment Report. The current
yield of 0.68% is lower than has existed in recent history. Mr. Parker
pointed out that the LAIF and CalTRUST Short-Term rates both fell below
0.35%, making the money market account the District obtained with Bank
of the West more lucrative. Mr. Parker explained that the yield could
increase with a change in investment practices that he desired to put in
place after a wholesale revision of the current investment policy, but even
then it would only inch up. He stated that he did not expect the total
portfolio to exceed 1% for many years to come. Mr. Parker also described
how he expected the CalTRUST Medium-Term rate to decrease from its
current 0.82%, with the fund having investments made 4 and 5 years ago
maturing now, but needing to purchase investments at current market
rates to replace them. The Committee had no further questions.
3.3. Status of Strategic Plan Initiatives
Mr. Parker reported on the status of strategic plan initiatives related to
fiscal responsibility.
3.4. Future Agenda Items and Staff Tasks
None.
4. ADJOURNMENT
4.1. The Committee adjourned at 4:49 p.m. The next meeting of the Finance-
Accounting Committee will be held Tuesday, December 18, 2012 at 12:00
p.m.
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