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HomeMy WebLinkAbout2013-07-22 - Finance-Accounting Committee Meeting Minutes1 MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING Monday, July 22, 2013 10:00 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The July 22, 2013 meeting of the Yorba Linda Water District’s Finance- Accounting Committee was called to order by Director Hawkins at 10:00 a.m. The meeting was held in the Admin Conference Room at the District’s Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. 2. ROLL CALL COMMITTEE STAFF Director Phil Hawkins, Chair Steve Conklin, Acting General Manager Director Gary T. Melton 3. PUBLIC COMMENTS None. 4. ACTION CALENDAR 4.1. FY 2013/14 Water Rate Increase Mr. Conklin reported that in June 2012, the Board held a meeting to consider a three-year rate increase. The Board elected to move forward with it. However, to allow the possibility that the District’s financial situation might improve enough to where the rate increase identified in the Notice of Proposed Water Rate Increase was not necessary, the Board elected on only adopt the first year of the three annual rate increases. Following discussion, the Committee supported the staff recommendation that the Board approve the second-year rate increase of 2.5% for this FY, and adopt Resolution No. 13-13, effective July 1, 2013, and Rescind Resolution No. 12-13. 5. DISCUSSION ITEMS 5.1. Auditor Discussion with Those in Governance Mr. Nitin Patel, Partner with White Nelson Diehl Evans LLP, addressed the Committee on audit work to date and with information pertaining to the upcoming audit for FY12/13, which will begin August 19 for approximately 8 working days. A report on findings will be made to the FA Committee in September and to the Board in October. The Committee had a few questions for Mr. Patel, after which he left the meeting. 2 5.2. Transfers of Reserves (Verbal Report) Mr. Conklin reviewed with the Committee a memo from the Finance Department which stated that the Financial Reserves Policy was adopted in July, so at year end, approval had not been given to fund the Reserve for Debt Service out of the Water Operating Reserve. As the Reserve Policy is now approved, the transfer of reserves will be made in July to fund the Reserve for Debt Service, with any other excess in the Water Operating Reserve going to the Water Capital Reserve. Prior to last week, no transfers were made out of the Maintenance Reserve without an agenda item going to the Board. In February a change to the Purchasing Policy was made to make it easier for staff to replace unplanned capital asset items that were unbudgeted. The funds to pay for these would be through the Maintenance Reserve. Last week, in accordance with the new Purchasing Policy the Acting General Manager notified the Board of purchases that were going to be made. In conjunction to that, it was asked that Finance Dept transfer funds from the Maintenance Reserve. Staff wanted to verify that the FA Committee was comfortable with an email notification being sufficient to both make the purchase (out of the Operating Reserve) and make a transfer from the Maintenance Reserve to reimburse the Operating Reserve. Following discussion, the Committee confirmed that an email notification to the FA Committee was sufficient for this purpose. 5.3. Short-Term Financing Rate (Verbal Report) Mr. Conklin reviewed with the Committee a memo from the Finance Department which stated that along with the increase in the 10-year Treasury bill; the proposed 10-year short-term financing (with a 5-year call provision) has adjusted up to 3.35%. This rate was 2.77% when it was reported in May and 2.98% when it was reported in June. 5.4. Investment Report for the Period Ending June 30, 2013 Mr. Conklin reviewed the above Investment Report with the Committee. He noted that the total yield for the month ending June 30 is 0.70%. The summary reports provided were reviewed and discussed with no further action requested. 5.5. Budget to Actual Reports for June 30, 2013 Mr. Conklin reviewed the above report with the Committee. He noted that Mrs. Delia Lugo, newly appointed Acting Finance Manager, was busy on time-sensitive Finance Department matters today, but will be present at future FA Committee meetings. The Committee concurred with this. 5.6. Future Agenda Items and Staff Tasks None. 3 6. ADJOURNMENT 6.1. The meeting was adjourned at 10:50 a.m. The next Finance-Accounting Committee meeting is scheduled to be held Monday, August 26, 2013 at 12:00 p.m.