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HomeMy WebLinkAbout2013-02-25 - Finance-Accounting Committee Meeting Agenda PacketYorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT FINANCE - ACCOUNTING COMMITTEE MEETING Monday, February 25, 2013, 12:00 PM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. ROLL CALL COMMITTEE Director Phil Hawkins, Chair Director Gary T. Melton STAFF Stephen Parker, Finance Manager 3. 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. 4. ACTION CALENDAR This portion of the agenda is for items where staff presentations and committee discussions are needed prior to formal committee action. 4.1. Unaudited Financial Statements for the Period Ending December 31, 2012 Recommendation. That the Committee recommend the Board of Directors receive and file the Unaudited Financial Statements for the Period Ending December 31, 2012. 5. 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. 5.1. GFOA and CSMFO Budget Award Notification 5.2. FY 2013/14 Budget Calendar 5.3. Draft Finance Department Budget 5.4. Investment Report for Period Ending January 2013 5.5. Budget to Actual Results for January 2013 5.6. Status of Strategic Plan Initiatives 5.7. Future Agenda Items and Staff Tasks 6. ADJOURNMENT 6.1. The next Finance - Accounting Committee meeting is scheduled to be held Monday, March 25, 2013 at 12:00 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. Meeting Date: To: From: Presented By: Prepared By: Subject: SUMMARY: AGENDA REPORT February 25, 2013 Finance - Accounting Committee Steve Conklin, Acting General Manager Stephen Parker, Finance Dept: Manager Delia Lugo, Senior Accountant ITEM NO. 4.1 Finance Unaudited Financial Statements for the Period Ending December 31, 2012 Presented are the Unaudited Financial Statements for the Period Ending December 31, 2012 for the District. STAFF RECOMMENDATION: That the Committee recommend the Board of Directors receive and file the Unaudited Financial Statements for the Period Ending December 31, 2012. DISCUSSION: For the period ending December 31, 2012, staff is presenting unaudited statements in the CAFR format. Staff has included the traditional budget to actual statements for the District as a whole, as well as the individual water and sewer funds. Water Operating Revenue, as presented, is 56.5% of annual budget, which is slightly higher than the historical trend of 54.9% for the first half of the fiscal year. Other Operating Revenue 67.3% of annual budget. Sewer Other Operating Revenue, as presented, is 63.5% of annual budget. Variable Water Costs are 59.7% of budget, due to higher than budgeted water consumption as well as purchasing more expensive import water prior to the January 1st rate increase. Salary Related Expenses are 48.4% of budget due to unfilled positions. Supplies & Services are 50.4% of budget half way through the fiscal year. With the issuance of the 2008 Certificates of Participation (COP's) and the Refunding Revenue Bonds, Series 2012A the District covenanted "... to fix, prescribe and collect rates and charges for Water Service which will be at least sufficient to yield during each Fiscal Year, Net Revenues equal to 110% of the Debt Service for such Fiscal Year." To confirm the covenant is upheld, a calculation is made quarterly and presented to the Finance - accounting Committee and received and filed by the Board of Directors. Accordingly, the unaudited debt service ratio through December 2012 is shown in the calculation as 200 %. This shows strong financial health for the District as it pertains to the debt service ratio. STRATEGIC PLAN: FR 1 -G: Continue to Improve Communications of the Districts Financial Information to the Board of Directors, Member Agencies, Management, and the Financial Community ATTACHMENTS: IVQIIIC. FY 2013 2nd Qtr Consolidated Balance Sheet.xlsx 2013 Qtr 2 Debt Service Calc.xlsx 2013 Qtr 2 Consolidated Stmt.xlsx 2013 Qtr 2 Water Stmt.xlsx 2013 Qtr 2 Sewer Stmt.xlsx Description: FY 2013 2nd Qtr Consolidated Balance Sheet FY 2013 2nd Qtr Debt Service Ratio Calculation FY 2013 Qtr 2 Consolidated Statement FY 2013 Qtr 2 Water Statement FY 2013 Qtr 2 Sewer Statement Type: Backup Material Backup Material Backup Material Backup Material Backup Material YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF NET ASSETS For the Period Ended December 31, 2012 (With December 31, 2011 for comparison only) ASSETS December 2012 December 2011 CURRENT ASSETS: 176,295 21,081 Cash and cash equivalents $ 16,583,608 $ 27,028,937 Investment 2,151,167 2,156,687 Accounts receivable - water and sewer services 2,104,373 2,819,987 Accounts receivable - property taxes 102,192 102,192 Accrued interest receivable 9,582 23,880 Prepaid expenses & other deposits 1,090,402 303,731 Inventory 253,980 239,289 TOTAL CURRENT ASSETS 22,295,304 32,674,703 NONCURRENT ASSETS Bond issuance costs 710,839 740,765 Other post - employment benefit (OPEB) asset 176,295 21,081 Capital assets: - - Non - depreciable 13,769,615 10,164,560 Depreciable, net of accumulated depreciation 187,397,599 190,292,985 TOTAL NONCURRENT ASSETS 202,054,348 201,219,391 TOTAL ASSETS 224,349,652 233,894,094 LIABILITIES $ 163,881,058 $ 170,702,097 CURRENT LIABILITIES: Accounts payable 1,866,152 4,278,869 Accrued expenses 1,271,550 207,905 Accrued interest payable 443,814 474,418 Certificates of Participation - current portion 965,000 925,000 Compensated absences 233,464 259,177 Customer and construction deposits 252,005 255,201 Deferred revenue 413,743 419,959 TOTAL CURRENT LIABILITIES 5,445,728 6,820,529 LONG -TERM LIABILITIES (LESS CURRENT PORTION) Deferred annexation revenue 13,905,927 14,230,314 Compensated absences 739,304 777,531 Other post - employment benefit (OPEB) liability - - Certificates of Participation 40,377,635 41,363,623 TOTAL LONG TERM LIABILITIES (LESS CURRENT PORTION) 55,022,866 56,371,468 TOTAL LIABILITIES 60,468,594 63,191,997 NET ASSETS: $ 163,881,058 $ 170,702,097 YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS For the Period Ended December 31, 2012 (With fiscal year ended December 31, 2011 for comparison only) OPERATING REVENUES: Water sales Sewer revenues Other operating revenues TOTAL OPERATING REVENUES OPERATING EXPENSES Variable water costs Personnel services Supplies and services Depreciation and amortization TOTAL OPERATING EXPENSES OPERATING INCOME /(LOSS) NONOPERATING REVENUES (EXPENSES): Property taxes Investment income Interest expense Other nonoperating revenues Other nonoperating expenses TOTAL NONOPERATING REVENUES /EXPENSES NET INCOME /(LOSS) BEFORE CAPITAL CONTRIBUTIONS CAPITAL CONTRIBUTIONS CHANGES IN NET ASSETS December 2012 December 2011 $ 14,084,755 $ 13,565,446 875,365 431,149 15,391,269 7,727,804 3,707,029 1,948,769 3,357,252 16,740,854 (1,349,585) 682,982 70,458 (912,001) 364,119 (28,434) 177,124 871,492 542,863 14,979,801 7,183,755 3,611,485 1,787,705 3,267,301 15,850,246 (870,445) 677,509 149,124 (949,017) 484,018 (86,193) 275,441 (1,172,461) (595,004) 11,295 17,061,426 (1,161,166) 16,466,422 NET ASSETS - BEGINNING OF YEAR 165,042,224 154,235,675 NET ASSETS - FOR PERIOD END DECEMBER 31, 2012 $ 163,881,058 $ 170,702,097 Yorba Linda Water District Debt Service Ratio Calculation For The Period Ending December 31, 2012 Actual Debt Service Revenue (Operating) Water Revenue (Residential) $8,538,712 $8,538,712 Water Revenue (Commercial & Fire Det.) 1,073,156 1,073,156 Water Revenue (Landscape /Irrigation) 2,629,647 2,629,647 Water Revenue (Service Charge) 1,843,240 1,843,240 Other Operating Revenue 394,444 394,444 Total Operating Revenue: 14,479,199 14,479,199 Revenue (Non- Operating) Interest 60,915 60,915 Property Tax 682,982 682,982 Other Non - Operating Revenue 359,700 359,700 Total Non - Operating Revenue: 1,103,597 1,103,597 Total Revenue 15,582,796 15,582,796 Expenses (Operating): Variable Water Costs (G.W., Import & Power) 7,727,804 7,727,804 Salary Related Expenses 3,286,579 3,286,579 Supplies & Services: Communications 80,797 Contractual Services 218,024 Data Processing 58,223 Dues & Memberships 53,739 Fees & Permits 71,894 Board Election - Insurance 119,157 Materials 287,057 District Activities, Emp Recognition 9,234 Maintenance 154,929 Non - Capital Equipment 58,414 Office Expense 21,644 Professional Services 429,577 Training 10,566 Travel & Conferences 10,033 Uncollectible Accounts (478) Utilities 46,094 Vehicle Equipment 140,573 Supplies & Services Sub -Total 1,769,477 1,769,477 Total Operating Expenses 12,783,860 12,783,860 Expenses (Non- Operating): Interest on Long Term Debt 912,001 Other Expense 28,434 28,434 Total Non - Operating Expenses: 940,435.00 28,434 Total Expenses 13,724,295 12,812,294 Net Income (Loss) Before Capital Contributions 1,858,501 2,770,502 Capital Contributions 11,295 Net Income (Loss) Before Depreciation 1,869,796 2,770,502 Depreciation & Amortization 2,716,907 Total Net Income (Loss) ($847,111) $2,770,502 DEBT SERVICE RATION CALCULATION NET REVENUES 2,770,502 DEBT SERVICE 1,383,436 % 200% Yorba Linda Water District Summary Financial Report Water & Sewer Funds For The Period Ending December 31, 2012 Revenue (Operating): Water Revenue (Residential) Water Revenue (Commercial & Fire Det.) Water Revenue (Landscape /Irrigation) Water Revenue (Service Charge) Sewer Charge Revenue Locke Ranch Assessments Other Operating Revenue Total Operating Revenue: Revenue (Non- Operating) Original YTD YTD YTD Budget Actual Under(Over) % of FY 2013 FY 2013 Budget Budget $15,405,197 $8,538,712 $6,866,485 55.43% 1,822,665 1,073,156 749,509 58.88% 4,035,121 2,629,647 1,405,474 65.17% 3,755,191 1,843,240 1,911,951 49.09% 1,548,682 764,605 784,077 49.37% 198,433 110,760 87,673 55.82% 643,737 431,149 212,588 66.98% 27,409,026 15,391,269 12,017,757 56.15% Interest 170,000 70,458 99,542 41.45% Property Tax 1,244,320 682,982 561,338 54.89% Other Non - Operating Revenue 494,437 364,119 130,318 73.64% Total Non - Operating Revenue: 1,908,757 1,117,559 791,198 58.55% Total Revenue 29,317,783 16,508,828 12,808,955 56.31% Expenses (Operating) Variable Water Costs (G.W., Import & Power) 12,953,024 7,727,804 5,225,220 59.66% Salary Related Expenses 7,648,891 3,707,029 3,941,862 48.46% Supplies & Services 3,863,102 1,948,769 1,914,333 50.45% Total Operating Expenses 24,465,017 13,383,602 11,081,415 54.71% Expenses (Non- Operating) Interest on Long Term Debt 2,011,395 912,001 1,099,394 45.34% Other Expense 124,210 28,434 95,776 22.89% Total Non - Operating Expenses: 2,135,605 940,435 1,195,170 44.04% Total Expenses 26,600,622 14,324,037 12,276,585 53.85% Net Income (Loss) Before Special Item 2,717,161 2,184,791 532,370 80.41% Contributed Capital - 11,295 11,295 0.00% Net Income (Loss) Before Depreciation 2,717,161 2,196,086 543,665 80.82% Depreciation & Amortization 6,602,339 3,357,252 3,245,087 50.85% Total Net Income (Loss) ($3,885,178) ($1,161,166) ($2,724,012) 29.89% Yorba Linda Water District Water Fund For The Period Ending December 31, 2012 YTD YTD YTD Budget Actual Under(Over) % of FY 2013 FY 2013 Budget Budget Revenue (Operating) Water Revenue (Residential) $15,405,197 $8,538,712 $6,866,485 55.43% Water Revenue (Commercial & Fire Det.) 1,822,665 1,073,156 749,509 58.88% Water Revenue (Landscape /Irrigation) 4,035,121 2,629,647 1,405,474 65.17% Water Revenue (Service Charge) 3,755,191 1,843,240 1,911,951 49.09% Other Operating Revenue 585,929 394,444 191,485 67.32% Total Operating Revenue: 25,604,103 14,479,199 11,124,904 56.55% Revenue (Non- Operating): Interest Property Tax Other Non - Operating Revenue Total Non - Operating Revenue: Total Revenue Expenses (Operating): Variable Water Costs (G.W., Import & Power) Salary Related Expenses Supplies & Services: Communications Contractual Services Data Processing Dues & Memberships Fees & Permits Board Election Insurance Materials District Activities, Emp Recognition Maintenance Non - Capital Equipment Office Expense Professional Services Training Travel & Conferences Uncollectible Accounts Utilities Vehicle Equipment Supplies & Services Sub -Total Total Operating Expenses Expenses (Non- Operating): Interest on Long Term Debt Other Expense Total Non - Operating Expenses: Total Expenses 150,000 60,915 89,085 40.61% 1,244,320 682,982 561,338 54.89% 490,262 359,700 130,562 73.37% 1,884,582 1,103,597 780,985 58.56% 27,488,685 15,582,796 11,905,889 56.69% 12,953,024 7,727,804 5,225,220 59.66% 6,741,403 3,286,579 3,454,824 48.75% 280,232 80,797 199,435 28.83% 455,041 218,024 237,017 47.91% 125,866 58,223 67,643 46.26% 57,609 53,739 3,870 93.28% 139,165 71,894 67,271 51.66% 47,988 - 47,988 0.00% 259,656 119,157 140,499 45.89% 455,226 287,057 168,169 63.06% 17,298 9,234 8,064 53.38% 323,820 154,929 168,891 47.84% 93,507 58,414 35,093 62.47% 37,702 21,644 16,058 57.41% 749,878 429,577 320,301 57.29% 41,353 10,566 30,787 25.55% 40,833 10,033 30,800 24.57% 36,270 (478) 36,748 -1.32% 79,050 46,094 32,956 58.31% 282,400 140,573 141,827 49.78% 3,522,893 1,769,477 1,753,416 50.23% 23,217,320 12,783,860 10,433,460 55.06% 2,009,777 912,001 1,097,776 45.38% 118,210 28,434 89,776 24.05% 2,127,987 940,435 1,187,552 44.19% 25,345,307 13,724,295 11,621,012 54.15% Net Income (Loss) Before Capital Contributions 2,143,378 1,858,501 284,877 86.71% Capital Contributions - 11,295 11,295 0.00% Net Income (Loss) Before Depreciation 2,143,378 1,869,796 296,172 87.24% Depreciation &Amortization 5,332,175 2,716,907 2,615,268 50.95% Total Net Income (Loss) ($3,188,797) ($847,111) ($2,341,686) 26.57% Yorba Linda Water District Sewer Fund For The Period Ending December 31, 2012 Expenses (Operating) Salary Related Expenses Supplies & Services: Communications Contractual Services Data Processing Dues & Memberships Fees & Permits Board Election Insurance Materials District Activities, Emp Recognition Maintenance Non - Capital Equipment Office Expense Professional Services Training Travel & Conferences Uncollectible Accounts Utilities Vehicle Equipment Supplies & Services Sub -Total Total Operating Expenses Expenses (Non- Operating): Interest Expense Other Expense Total Non - Operating Expenses: Total Expenses Net Income (Loss) Before Depreciation Depreciation & Amortization Total Net Income (Loss) 907,488 420,450 YTD YTD YTD 5,173 Budget Actual Under(Over) % of 18,815 FY 2013 FY 2013 Budget Budget Revenue (Operating): 4,583 3,915 668 85.42% Sewer Charge Revenue $1,548,682 $764,605 $784,077 49.37% Locke Ranch Assessments 198,433 110,760 87,673 55.82% Other Operating Revenue 57,808 36,705 21,103 63.49% Total Operating Revenue: 1,804,923 912,070 892,853 50.53% Revenue (Non- Operating): 66,737 4,913 93.14% 17,044 Interest 20,000 9,543 10,457 47.72% Other Non - Operating Revenue 4,175 4,419 (244) 105.84% Total Non - Operating Revenue: 24,175 13,962 10,213 57.75% Total Revenue 1,829,098 926,032 903,066 50.63% Expenses (Operating) Salary Related Expenses Supplies & Services: Communications Contractual Services Data Processing Dues & Memberships Fees & Permits Board Election Insurance Materials District Activities, Emp Recognition Maintenance Non - Capital Equipment Office Expense Professional Services Training Travel & Conferences Uncollectible Accounts Utilities Vehicle Equipment Supplies & Services Sub -Total Total Operating Expenses Expenses (Non- Operating): Interest Expense Other Expense Total Non - Operating Expenses: Total Expenses Net Income (Loss) Before Depreciation Depreciation & Amortization Total Net Income (Loss) 907,488 420,450 487,038 46.33% 23,018 5,173 17,845 22.47% 34,280 15,465 18,815 45.11% 9,474 2,824 6,650 29.81% 4,583 3,915 668 85.42% 12,155 8,434 3,721 69.39% 3,612 - 3,612 0.00% 19,544 4,504 15,040 23.05% 34,799 9,445 25,354 27.14% 1,302 693 609 53.23% 71,650 66,737 4,913 93.14% 17,044 7,229 9,815 42.41% 2,823 1,629 1,194 57.70% 37,582 16,940 20,642 45.07% 4,747 1,932 2,815 40.70% 3,418 716 2,702 20.95% 2,730 (45) 2,775 -1.65% 5,950 3,733 2,217 62.74% 51,499 29,968 21,531 58.19% 340,209 179,292 160,917 52.70% 1,247,697 599,742 647,955 48.07% 1,618 - 1,618 0.00% 6,000 - 6,000 0.00% 7,618 - 7,618 0.00% 1,255,315 599,742 655,573 47.78% 573,783 326,290 247,493 56.87% 1,270,164 640,345 629,819 50.41% ($696,381) ($314,055) ($382,326) 45.10% AGENDA REPORT Meeting Date: February 25, 2013 To: Finance - Accounting Committee From: Steve Conklin, Acting General Manager Presented By: Stephen Parker, Finance Manager Prepared By: Stephen Parker, Finance Manager Dept: Subject: GFOA and CSMFO Budget Award Notification DISCUSSION: ITEM NO. 5.1 Finance Since our last meeting, Yorba Linda Water District was notified that their FY 12/13 Operating Budget earned the Excellence in Budgeting Award (attached) from the California Society of Municipal Finance Officers ( CSMFO). The CSMFO's budget award is broken into two categories - the Meritorious Budget Award and the Excellence in Budgeting Award, with the latter being the more difficult to attain. This is the second consecutive year that District's budget has achieved this recognition. In addition, the District was notified that the FY 12/13 Operating Budget earned the Distinguished Budget Presentation Award from the Government Finance Officers Association of the United States and Canada (GFOA). A plaque will be mailed to the District by the GFOA in the coming weeks. This is the second consecutive year that the District's budget has achieved this recognition. While all departments participated in their section of the budget, staff would like to highlight the efforts of the Accounting Section - Delia Lugo, Joann Gitmed and Maria Trujillo as well as a large work load by Cindy Botts as leading to the District achieving these awards again. STRATEGIC PLAN: FR 1 -13: Prepare a High Level Annual Budget Document and Comprehensive Annual Financial Report and Compete for Recognition by the Government Finance Officers Association ATTACHMENTS: Yorba Linda Cert.pdf Description: CSMFO Budget Award Type: Backup Material CaCqbmia Society of Munw!paCFinance Officers Certificate of Award Operating Budget Excellence Award Fiscal Year 2012 -2013 Presented to the Yorba Linda Water District For meeting the criteria established to achieve the Operating Budget Excellence Award. February 6, 2013 Laura Nomura CSMFO President Scott Catlett, Chair Professional Standards and Recognition Committee Dedicated Excellence in Municipal Financial Reporting AGENDA REPORT Meeting Date: February 25, 2013 To: Finance - Accounting Committee From: Steve Conklin, Acting General Manager Presented By: Stephen Parker, Finance Dept: Manager Prepared By: Stephen Parker, Finance Manager Subject: FY 2013/14 Budget Calendar ITEM NO. 5.2 Finance DISCUSSION: Attached is the updated budget calendar, with changes from the last calendar presented in red. STRATEGIC PLAN: FR 1 -13: Prepare a High Level Annual Budget Document and Comprehensive Annual Financial Report and Compete for Recognition by the Government Finance Officers Association ATTACHMENTS: Description: Budget Calendar - FY 13.14 2.25.13.xlsx Budget Calendar Type: Backup Material BUDGET CALENDAR FOR FISCAL YEAR 2012/13 DATE JANUARY January 15, 2013 BOARD /COMMITTEE Manager's Meeting January 28, 2013 Finance - Accounting Committee SCHEDULE Discuss Budget Calendar and Process Personnel & Capital budget discussion Review the Budget Calendar FEBRUARY February 5, 2013 Manager's Meeting Personnel & Capital budget discussion February 7, 2013 Planning- Engineering- Operations Committee Capital Improvement Projects budget (v 0.5) February 25, 2013 Finance - Accounting Committee Finance budget (v 1.0), Gperating revenues (v 1.0) ReSeRle PerGy alysis (y 9) February 27, 2013 Exec - Admin- Organizational Committee Board of Directors and Administration budget (v 1.0) February 28, 2013 Board of Directors Capital I,,,, FGVeMeRt or, ;eGts budget („ 1.0 MARCH March 4, 2013 Public Affairs - Communications -Tech Committee IT & Public Affairs budget (v 1.0) March 7, 2013 Planning- Engineering- Operations Committee Engineering and Operations budget (v 1.0) Capital Improvement Projects budget (v 1.5) (of aeeded) March 12, 2013 Personnel -Risk Mgmt Committee Labor and benefits (v 1.0), HR budget (v 1.0) March 14, 2013 Board of Directors Capital Improvement Projects budget (v 2.0) (if needed) March 19, 2013 Exec - Admin- Organizational Committee Board of Directors and Administration budget (v 2.0) (if needed) March 25, 2013 Finance - Accounting Committee Finance budget (v 2.0) (if needed), Operating revenues (v 1.0) Reserve policy analysis (v 21.0) March 28, 2013 Board of Directors Capital Improvement Projects budget (v 3.0) (if needed) APRIL April 1, 2013 Public Affairs - Communications -Tech Committee IT & Public Affairs budget (v 2.0) (if needed) April 4, 2013 Planning- Engineering- Operations Committee Engineering and Operations budget (v 2.0) (if needed) April 9, 2013 Personnel -Risk Mgmt Committee HR budget (v 2.0) (if needed), Labor and Benefits (v 2.0) * April 18, 2013 Board Workshop - Budget Budget presented to Board for review and discussion Reserve policy discussion April 22, 2013 Finance - Accounting Committee Possible reserve policy recommendation Draft reserve policy MAY May 9, 2013 Board of Directors Draft Budget (Full Board) Reserve policy adoption May 23, 2013 Budget review and adoption (Full Board) * Tentative date AGENDA REPORT Meeting Date: February 25, 2013 To: Finance - Accounting Committee From: Steve Conklin, Acting General Administration Budget Detail Manager Presented By: Stephen Parker, Finance Customer Service Budget Detail Manager Prepared By: Stephen Parker, Finance Manager Subject: Draft Finance Department Budget DISCUSSION: Dept: ITEM NO. 5.3 Finance For the upcoming fiscal year, the Finance Department is proposing to increase its Supplies and Services budget by 13% to $437,582. After the proposed increases are taken into account, the Finance Department budget is more than 6% lower than the FY 2011/12 Budget and 24% lower than the FY 2010/11 Budget. The most significant increases this year were made in the areas of communications, contract services, materials and professional services. The communications increase is related to increases in postage rates for the mailing of customers' bills. Increases in contract services is primarily related to increases in bill mailing fees from InfoSend. Increases in Materials is related to an increase in the budget for registers due to a number of failures in routes that were installed around 10 years ago (which is their useful life). Increases in professional services are primarily related to additions such as OPEB actuarial, arbitrage rebate and financial model consulting expenses. 70% of the Finance Department's budget relates to Customer Service, with postage and printing of customer bills, credit card and lockbox fees, phone answering service and the writing off of uncollectible accounts amounting to 92% of that section's budget. In the Administration Section, the expense of external auditors and professional services for items like our auditing fees, accounting software, bond reporting and updating our financial plan model account for 88% of the budget. In the Accounting Section, our bank service fees and office supplies for the administrative building amount to 80% of the budget. Lastly, in the Meter Services Section, meter registers amount to 80% of the budget. ATTACHMENTS: Name: 2014 Finance Department Budget.pdf 3010 Budget 2014.pdf 3020 Budget 2014.pdf 3030 Budget 2014.pdf 3040 Budget 2014.pdf Description: Type: Finance Budget Summary Backup Material Administration Budget Detail Backup Material Accounting Budget Detail Backup Material Customer Service Budget Detail Backup Material Meter Reading Budget Detail Backup Material Expenses (Operating) Supplies & Services Communications Contractual Services Dues & Memberships Fees & Permits Materials District Activities & Events Maintenance Non - Capital Equipment Office Expense Professional Services Professional Development Travel & Conferences Uncollectible Accounts Supplies & Services Sub -Total FY 2012113 FY 2013114 Amended Budget $ 88,000 $ 98,200 $ 88,161 $ 102,140 $ 1,405 $ 1,057 $ 95,995 $ 101,365 $ 12,000 $ 25,000 $ 700 $ 1,050 $ 200 $ 300 $ 3,950 $ 1,250 $ 16,600 $ 15,700 $ 31,160 $ 46,820 $ 4,250 $ 2,500 $ 4,150 $ 7,200 $ 39,000 $ 35,000 $ 385,571 $ 437,582 Section Dept /Section: Fin (Admin) (3010) FY 2014 Primary GIL Category 1-3010-0600-00 Category Total $400 Sub Acct No./Sub Catel 1- 3010 - 0600 -00 Sub Acct I 400 Detail Item Description I Check signature plate Detail Amt I 400 1- 3010 - 0640 -00 DUES,MEMBERSHIPS,SUBSCRIPTIONS (E) $507 1- 3010 - 0640 -00 DUES,MEMBERSHIPS,S UBSCRIPTIONS (E) 507 CSMFO 110 CMTA 155 GFOA 160 AWWA 82 1- 3010 - 0715 -00 $400 1- 3010 - 0715 -50 400 Meeting Supplies 400 1- 3010 - 0780 -00 PROFESSIONAL SERVICES (E) $43,960 1- 3010 - 0780 -00 PROFESSIONAL SERVICES (E) 43,960 Auditors 18,960 CDAR Preparation 2,000 Financial plan model consulting 5,000 Bond counsel 1,000 Actuarial Valuation (OPEB) 4,000 GP Consulting 5,000 Project consulting 5,000 Arbitrage Consulting (2003 COP) 3,000 1- 3010 - 0810 -00 Professional Development $900 1- 3010 - 0810 -00 Professional 900 Continual Professional Education 600 CDIAC Training 300 1- 3010 - 0830 -00 TRAVEL & CONFERENCES (E) $3,900 1- 3010 - 0830 -00 TRAVEL & CONFERENCES (E) 3,900 GFOA Conference 1,500 CSMFO Conference 700 PERS Conference 1,000 AWWA Conference 700 Section Total $50,067 Section Dept /Section: Fin (Accounting) FY 2014 (3020) Primary GL Category 1-3020-0580-00 Category To $400 Sub Acct No./Sub Category I 1- 3020 - 0580 -00 Sub Acct I Total 400 Detail Item Description I Publish Unclaimed List Detail Amt 1 1 400 1- 3020 - 0600 -00 CONTRACTUAL SERVICES (E) $860 1- 3020 - 0600 -00 CONTRACTUAL SERVICES (E) 860 Green Shades 500 Doculivery 360 1- 3020 - 0640 -00 $300 1- 3020 - 0640 -00 300 Delia Lugo - CSMFO, GFOA, etc. 300 1- 3020 - 0645 -00 Fees & Permits $31,365 1- 3020 - 0645 -00 Fees & Permits 1,190 CSMFO Budget Reviewer Fee 150 GFOA CAFR Reviewer Fee 435 GFOA Budget Award Reviewer Fee 330 CMTA - Investment Policy Award 275 1- 3020 - 0645 -50 Bank Service /Fees 30,175 Analysis Fees (avg $2550/mo) 30,000 ISafe Deposit Box Fee 150 Annual Bankcard Fee 25 1- 3020 - 0715 -00 $400 1- 3020 - 0715 -50 400 Meeting Supplies 400 1- 3020 - 0730 -00 $3001- 3020 - 0730 -00 300 Misc Small Office Equipment 300 1- 3020 - 0760 -00 OFFICE EXPENSE (E) $14,000 1- 3020 - 0760 -00 10,000 Office supplies 10,000 1- 3020 - 0760 -10 4,000 Paper 4,000 1- 3020 - 0810 -00 $1,000 1- 3020 - 0810 -00 1,000 Staff Training 1,000 1- 3020 - 0830 -00 TRAVEL & CONFERENCES (E) $1,800 1- 3020 - 0830 -00 TRAVEL & CONFERENCES (E) 1,800 Mileage 100 PERS Conference 1,000 CSMFO Conference 700 Section Total $50,425 Section Detail Expense Budget Dept /Section: Fin (CS & Billing) FY 2014 (3030) Primary GL Category 1- 3030 - 0580 -00 COMMUNICATIONS (E) Category Total $97,800 Sub Acct No./Sub Category 1- 3030 - 0580 -00 SubAcct 800 Detail Item D- .- tall Amt UPS /Fed Ex/ Other 800 1- 3030 - 0580 -10 2,000 Postage Metered 2,000 1- 3030 - 0580 -22 95,000 Postage - Infosend 95,000 1- 3030 - 0600 -00 CONTRACTUAL SERVICES (E) $97,720 1- 3030 - 0600 -00 CONTRACTUAL SERVICES (E) 1,600 Post Office Box 200 Post Master - Lockbox 1,400 1- 3030 - 0600 -21 Customer Credit Check 6,300 300 Online - Credit Checks 6,000 1- 3030 - 0600 -22 Printing of Bills - Infosend 67,920 DOXO 1,120 Mailing Service 50,000 Info Send E -Bill Fees 16,800 1- 3030 - 0600 -30 1,900 Meter & Scale Lease Agreement 1,900 1- 3030 - 0600 -55 10,000 Phone Answering Service 10,000 1- 3030 - 0600 -70 10,000 Temporary Employment 10,000 1- 3030 - 0645 -00 Fees & Permits $70,000 1- 3030 - 0645 -50 Bank Services /Fees 70,000 Lock Box Services 27,000 Credit Card & Auto Dr Processing 43,000 1- 3030 - 0715 -00 $250 1- 3030 - 0715 -50 250 Meeting Supplies 250 1- 3030 - 0750 -00 $300 1- 3030 - 0750 -00 300 Miscellaneous Equipment 300 1- 3030 - 0760 -00 OFFICE EXPENSE (E) $1,700 1- 3030 - 0760 -00 OFFICE EXPENSE (E) 1,700 Postage Machine Supplies 250 Deposit Supplies 100 Forms /Pads /Tags 1,350 1- 3030 - 0780 -00 $1,200 1- 3030 - 0780 -09 1,200 Agency Fee 1,200 1- 3030 - 0810 -00 Professional Development $1,600 1- 3030 - 0810 -00 Professional Development 1,600 Cust Sery Reps Seminar 1,000 Supervisor Training 600 1- 3030 - 0830 -00 $200 1- 3030 - 0830 -00 200 Mileage 200 1- 3030 - 0850 -00 $35,000 1- 3030 - 0850 -00 35,000 Uncollectible Accounts 35,000 Section Total $305,770 Section Detail Expense Budget Dept /Section: Fin (Meter Reading) FY 2014 (3040) Primary GL Category 1- 3040 - 0600 -00 CONTRACTUAL SERVICES (E) Category Total $3,160 Sub Acct No./Sub Category Sub Acct 1- 3040 - 0600 -00 2,410 Detail Item D- .- tall Amt Eq ua ri us - Neptune Handheld 2,410 1- 3040 - 0600 -50 750 Uniforms 750 1- 3040 - 0640 -00 $250 1- 3040 - 0640 -00 250 AWWA 250 1- 3040 - 0710 -00 $25,000 1- 3040 - 0710 -58 25,000 Registers 25,000 1- 3040 - 0750 -00 NON - CAPITAL EQUIPMENT (E) $950 1- 3040 - 0750 -00 NON - CAPITAL EQUIPMENT (E) 700 Meter Shop Equipment 500 Construction Meter Locks 200 1- 3040 - 0750 -10 250 Hand Tools /Meter Lid Bars /Lifters 250 1- 3040 - 0810 -00 Professional Development $660 1- 3040 - 0810 -00 500 Training classes 500 1- 3040 - 0810 -40 160 Certificate Reimbursement 160 1- 3040 - 0830 -00 $1,300 1- 3040 - 0830 -00 1,300 AWWA Conference 1,300 Section Total $31,320 Meeting Date: To: From: Presented By: Prepared By: Subject: SUMMARY: AGENDA REPORT February 25, 2013 Finance - Accounting Committee Steve Conklin, Acting General Manager Stephen Parker, Finance Dept: Manager Delia Lugo, Senior Accountant Investment Report for Period Ending January 2013 ITEM NO. 5.4 Finance Staff is submitting the January 2013 Monthly Investment Reports 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 January 2013 is 0.71 %. The overall decrease in the investment balance from the previous month is approximately $1.6 million. A couple of the larger balance changes include a decrease in the Water Operating fund primarily due to payments to OCWD for annexation charges and the bi- annual replenishment assessments and an increase in the Reserve for Debt Service of $419,000 due to the District meeting its monthly obligation to ensure that funds are set aside for the March 2013 debt service interest payment. 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: Invst Rpt 1- 13.xlsx Investment Report for Period Ending January 2013 Backup Material Invst Agenda Backup - Jan 2013.xlsx Agenda Back -up Backup Material Yorba Linda Water District Investment Portfolio Report January 31, 2013 Market % Percent Value Cost of Total Institution Yield Checking Account: $ 320,773 $ 320,773 Wells Fargo Bank $ 320,773 $ 320,773 1.86% Total 0.00% Money Market Accounts: 54,945 $ 54,945 1,902,448 1,902,448 Wells Fargo Money Market 0.05% Bank of the West 0.35% 17,249 17,249 US Bank (2008 Bond Reserve) 0.04% $ 1,974,642 $ 1,974,642 11.47% Total 0.34% Federal Home Loan Bank: 2,149,242 $ 2,144,397 US Bank (2008 Bond Reserve) 1.35% $ 2,149,242 $ 2,144,397 12.48% 1.35% Pooled Investment Accounts: $ 1,984,493 $ 1,984,493 Local Agency Investment Fund 0.30% 4,285 4,285 Ca1TRUST Short Term 0.30% 10,781,784 10,756,920 Ca1TRUST Medium Term 0.75% $ 12,770,561 $ 12,745,697 74.18% 0.68% $ 17,215,218 $ 17,185,510 100% Total Investments 0.71% 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 1/31/13 Investment Summary Report Below is a chart summarizing the yields as well as terms and maturities for the month of January 2013: Avg. Portfolio Avg. Portfolio # of Month Yield Without Yield With Days to of 2013 CalTRUST CalTRUST Maturity January 0.71% 0.65% 82 Below is are charts comparing operating fund interest for current and prior fiscal years. Actual Interest Monthly - January Year -to -Date 1/31/2012 1 /31 /2013 $ 242,702 $ 9,582 $ 149,273 $ 70,458 Budget 2011/2012 2012/2013 Interest Budget, January YTD $ 110,833 $ 87,500 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: December 2012 % Alloc January 2013 % Alloc Fund Description Balance 12/31/2012 Balance 1/31/2013 Water Operating Reserve $ 3,965,764 21.68% $ 2,201,869 21.68% Water Emergency Reserve 1,005,507 5.50% 1,006,160 5.50% Water Capital Project Reserve 8,161,885 44.61% 8,078,070 44.61% Water Reserve for Debt Service 745,041 4.07% 1,164,036 4.07% Maintenance Reserve 186,920 1.02% 187,029 1.02% COP Revenue Bond 2008 - Reserve 2,168,415 11.85% 2,166,491 11.85% Sewer Operating 16,167 0.09% 16,221 0.09% Sewer Emergency Reserve 1,004,502 5.49% 1,005,154 5.49% Sewer Capital Project Reserve 1,043,395 5.69% 1,069,415 5.69% $ 18,297,596 100.00% $ 16,894,445 100.00% Wells Fargo Bank Checking Water Operating 63,830 187,893 Sewer Operating 146,226 132,880 210,056 320,773 Totals $ 18,507,652 $ 17,215,218 Meeting Date: To: From: Presented By: Prepared By: Subject: DISCUSSION: AGENDA REPORT February 25, 2013 Finance - Accounting Committee Steve Conklin, Acting General Manager Stephen Parker, Finance Dept: Manager Delia Lugo, Senior Accountant Budget to Actual Results for January 2013 ITEM NO. 5.5 Finance 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 January 2013. For the month of January 2013, the District water revenue is 64.1 % of annual budget, which is 3.8% higher when compared to the historical trend for this point in the year. Our water consumption baseline is 298 gallons per capita per day (GPCD), with a 20% reduction by 2020 target of 238.5 GPCD. Currently we are at 265.7 GPCD, which is 54.4% 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, Materials and Professional Services are all trending more than a month ahead of schedule, with reasons previously reported. Sewer Other Operating Revenue is well over budget due to the timing of invoicing and receiving payments for FOG fees. In addition to items mentioned regarding the Water Fund, Fees & Permits and Vehicle Equipment are trending higher in Sewer, as was previously reported. STRATEGIC PLAN: FR 1 -G: Continue to Improve Communications of the Districts Financial Information to the Board of Directors, Member Agencies, Management, and the Financial Community ATTACHMENTS: Name: Jan 2013 consolidated stmt.xlsx Description: January 2013 Consolidated Statement Type: Backup Material Jan 2013 Water Stmt.xlsx January 2013 Water Statement Backup Material Jan 2013 Sewer Stmt.xlsx January 2013 Sewer Statement Backup Material Yorba Linda Water District Summary Financial Report Water & Sewer Funds For Seven Months Ending January 31, 2013 Revenue (Operating): Water Revenue (Residential) Water Revenue (Commercial & Fire Det.) Water Revenue (Landscape /Irrigation) Water Revenue (Service Charge) Sewer Charge Revenue Locke Ranch Assessments Other Operating Revenue Total Operating Revenue: Revenue (Non- Operating) Original YTD YTD YTD Budget Actual Under(Over) % of FY 2013 FY 2013 Budget Budget $15,405,197 $9,414,046 $5,991,151 61.11% 1,822,665 1,193,711 628,954 65.49% 4,035,121 2,722,977 1,312,144 67.48% 3,755,191 2,156,182 1,599,009 57.42% 1,548,682 891,878 656,804 57.59% 198,433 113,906 84,527 57.40% 643,737 465,822 177,915 72.36% 27,409,026 16,958,522 10,450,504 61.87% Interest 170,000 70,458 99,542 41.45% Property Tax 1,244,320 761,005 483,315 61.16% Other Non - Operating Revenue 494,437 402,706 91,731 81.45% Total Non - Operating Revenue: 1,908,757 1,234,169 674,588 64.66% Total Revenue 29,317,783 18,192,691 11,125,092 62.05% Expenses (Operating) Variable Water Costs (G.W., Import & Power) 12,953,024 9,515,510 3,437,514 73.46% Salary Related Expenses 7,648,891 3,991,996 3,656,895 52.19% Supplies & Services 3,863,102 2,315,365 1,547,737 59.94% Total Operating Expenses 24,465,017 15,822,871 8,642,146 64.68% Expenses (Non- Operating): Interest on Long Term Debt 2,011,395 1,057,737 953,658 52.59% Other Expense 124,210 30,190 94,020 24.31% Total Non - Operating Expenses: 2,135,605 1,087,927 1,047,678 50.94% Total Expenses 26,600,622 16,910,798 9,689,824 63.57% Net Income (Loss) Before Capital Contributions 2,717,161 1,281,893 1,435,268 47.18% Capital Contributions - 350,819 350,819 0.00% Net Income (Loss) Before Depreciation 2,717,161 1,632,712 1,786,087 60.09% Depreciation & Amortization 6,602,339 3,916,602 2,685,737 59.32% Total Net Income (Loss) ($3,885,178) ($2,283,890) ($1,601,288) 58.78% Yorba Linda Water District Water Fund For Seven Months Ending January 31, 2013 Jan YTD YTD YTD Budget Actual Actual Under(Over) % of FY 2013 FY 2013 FY 2013 Budget Budget Revenue (Operating) Water Revenue (Residential) $15,405,197 875,334 $9,414,046 $5,991,151 61.11% Water Revenue (Commercial & Fire Det.) 1,822,665 120,555 1,193,711 628,954 65.49% Water Revenue (Landscape /Irrigation) 4,035,121 93,330 2,722,977 1,312,144 67.48% Water Revenue (Service Charge) 3,755,191 312,942 2,156,182 1,599,009 57.42% Other Operating Revenue 585,929 32,456 426,900 159,029 72.86% Total Operating Revenue: 25,604,103 1,434,617 15,913,816 9,690,287 62.15% Revenue (Non- Operating): Interest Property Tax Other Non - Operating Revenue Total Non - Operating Revenue: Total Revenue Expenses (Operating): Variable Water Costs (G.W., Import & Power) Salary Related Expenses Supplies & Services: Communications Contractual Services Data Processing Dues & Memberships Fees & Permits Board Election Insurance Materials District Activities, Emp Recognition Maintenance Non - Capital Equipment Office Expense Professional Services Training Travel & Conferences Uncollectible Accounts Utilities Vehicle Equipment Supplies & Services Sub -Total Total Operating Expenses Expenses (Non- Operating): Interest on Long Term Debt Other Expense Total Non - Operating Expenses: Total Expenses 150,000 - 60,915 89,085 40.61% 1,244,320 78,023 761,005 483,315 61.16% 490,262 38,587 398,287 91,975 81.24% 1,884,582 116,610 1,220,207 664,375 64.75% 27,488,685 1,551,227 17,134,023 10,354,662 62.33% 12,953,024 1,787,706 9,515,510 3,437,514 73.46% 6,741,403 232,211 3,518,790 3,222,613 52.20% 280,232 31,137 111,934 168,298 39.94% 455,041 20,781 238,805 216,236 52.48% 125,866 30,013 88,236 37,630 70.10% 57,609 442 54,181 3,428 94.05% 139,165 23,579 95,473 43,692 68.60% 47,988 - 0 47,988 0.00% 259,656 81,185 200,342 59,314 77.16% 455,226 46,668 333,725 121,501 73.31% 17,298 775 10,009 7,289 57.86% 323,820 25,848 180,777 143,043 55.83% 93,507 17,479 75,893 17,614 81.16% 37,702 4,086 25,730 11,972 68.25% 749,878 15,159 444,736 305,142 59.31% 41,353 2,252 12,818 28,535 31.00% 40,833 1,355 11,388 29,445 27.89% 36,270 729 251 36,019 0.69% 79,050 3,183 49,277 29,773 62.34% 282,400 21,530 162,103 120,297 57.40% 3,522,893 326,201 2,095,678 1,427,215 59.49% 23,217,320 2,346,118 15,129,978 8,087,342 65.17% 2,009,777 145,736 1,057,737 952,040 52.63% 118,210 1,756 30,190 88,020 25.54% 2,127,987 147,492 1,087,927 1,040,060 51.12% 25,345,307 2,493,610 16,217,905 9,127,402 63.99% Net Income (Loss) Before Capital Contributions 2,143,378 (942,383) 916,118 1,227,260 42.74% Capital Contributions - 182,475 193,770 193,770 0.00% Net Income (Loss) Before Depreciation 2,143,378 (759,908) 1,109,888 1,421,030 51.78% Depreciation &Amortization 5,332,175 453,575 3,170,482 2,161,693 59.46% Total Net Income (Loss) ($3,188,797) ($1,213,483) ($2,060,594) ($1,128,203) 64.62% Yorba Linda Water District Sewer Fund For Seven Months Ending January 31, 2013 Jan 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 $127,273 $891,878 $656,804 57.59% Locke Ranch Assessments 198,433 3,146 113,906 84,527 57.40% Other Operating Revenue 57,808 2,217 38,922 18,886 67.33% Total Operating Revenue: 1,804,923 132,636 1,044,706 760,217 57.88% Revenue (Non- Operating): Interest 20,000 - 9,543 10,457 47.72% Other Non - Operating Revenue 4,175 4,419 (244) 105.84% Total Non - Operating Revenue: 24,175 - 13,962 10,213 57.75% Total Revenue 1,829,098 132,636 1,058,668 770,430 57.88% Expenses (Operating): Salary Related Expenses 907,488 52,756 473,206 434,282 52.14% Supplies & Services: Communications 23,018 2,126 7,299 15,719 31.71% Contractual Services 34,280 2,654 18,119 16,161 52.86% Data Processing 9,474 4,156 6,980 2,494 73.68% Dues & Memberships 4,583 33 3,948 635 86.14% Fees & Permits 12,155 1,644 10,078 2,077 82.91% Board Election 3,612 - - 3,612 0.00% Insurance 19,544 11,302 15,806 3,738 80.87% Materials 34,799 576 10,021 24,778 28.80% District Activities, Emp Recognition 1,302 58 751 551 57.68% Maintenance 71,650 8,333 75,070 (3,420) 104.77% Non - Capital Equipment 17,044 1,846 9,075 7,969 53.25% Office Expense 2,823 308 1,937 886 68.61% Professional Services 37,582 1,709 18,649 18,933 49.62% Training 4,747 2,829 4,761 (14) 100.29% Travel & Conferences 3,418 102 818 2,600 23.94% Uncollectible Accounts 2,730 68 23 2,707 0.84% Utilities 5,950 415 4,148 1,802 69.71% Vehicle Equipment 51,499 2,236 32,204 19,295 62.53% Supplies & Services Sub -Total 340,209 40,395 219,687 120,522 64.57% Total Operating Expenses 1,247,697 93,151 692,893 554,804 55.53% 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 93,151 692,893 562,422 55.20% Net Income (Loss) Before Capital Contributions 573,783 39,485 365,775 208,008 63.75% Capital Contributions - 157,049 157,049 157,049 0.00% Net Income (Loss) Before Depreciation 573,783 196,534 522,824 365,057 91.12% Depreciation & Amortization 1,270,164 105,775 746,120 524,044 58.74% Total Net Income (Loss) ($696,381) $90,759 ($223,296) ($158,987) 32.07% ITEM NO. 5.6 AGENDA REPORT Meeting Date: February 25, 2013 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: FA - Strategic Plan Trackinq.pdf Description: Strategic Plan Tracking - FA Type: Backup Material Strategic Plan Initiatives Status Report Finance - Accounting Committee Strategies Lead Party Comments January 2013 Progress FR 1: Maintain Fiduciary Res onsibili 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 in 2013. 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 December 2012 investment report at the February 14th FR 1 -F Activities of the District in a Manager/ statements. The annual Board meeting and the 1st quarter full- accrual financial statements at the December Timely and Transparent Manner Finance audit is provided timely to 6th 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 January 2013 budget to actual FR 1 -G Financial Information to the Manager/ management and the financial statements and the January 2013 investment report at the February 25th Board of Directors, Member Finance Agencies, Management, and the Director -Accounting FinaComm Committee meeting. Financial Community Committee. Committee. Com leted Strategies Lead Party Comments January 2013 Progress Finance Accounting Multi -year financial plan provided to the Board during April 11 workshop. A FR 1 -A Develop a Comprehensive Multi- Finance Committee to consider comprehensive version is included in the FY 2012/ 13 budget, which was presented Year Financial Plan Director Adding Sewer Model to 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 Government Budget Document and Finance Officer's Association awards for excellence. FY 2012/ 13 Budget approved Comprehensive Annual Financial Finance Include Fees in FY 2011/ 12 by the Board on June 28, 2012. Staff submitted for the CSMFO budget award in FR 1 -13 Report and Compete for Director Budget August and the GFOA budget award in September. The Board accepted the 2012 Recognition by the Government CAFR on October 11, 2012 and staff submitted the CAFR for the GFOA award in Finance Officers Association November. 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 Implement an Approach to Finance Financial model allowed review of reserves on a long -term basis. Staff recommended FR 2 -C Ensure Reserves are Responsibly Director/ Board Rates, COP's and Other a 3 -year rate increase to ensure reserves are responsibly funded. Board voted to Funded of Directors Capital Financing Options approve 1.5, 1.5, 2.5% rate increase on the fixed charge plus a change in the fixed charge to be based on the meter size at the Public Hearing on June 21. Review Opportunities to Earn Card Options Discussed FR 3 -B "Cash Back" on Operating Finance with Finance - Accounting YLWD is online with Cal -CARD. Expense through Commercial Director Committee in March - Add'1 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. Muthple 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 FR 4 -A Complete the Cost of Service and Director/ Board Structure Alternatives in Oct service and water rate study. Raftefis Financial Consultants completed a document Water Rates Study of Directors 2011 to support the District's Prop 218 notice, which was received and filed by the Board on 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 General Structure Alternatives in Oct approved by the Board on April 26 to be mailed to the District's customers reflects Conservation and Efficiency 2011 those proposed changes. The public hearing on those changes occurred on June 21, Manager 2012.