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HomeMy WebLinkAbout2013-11-25 - Finance-Accounting Committee Meeting Agenda PacketYorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT FINANCE - ACCOUNTING COMMITTEE MEETING Monday, November 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 Steve Conklin, Acting General Manager Delia Lugo, Acting 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. 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. 4.1. Budget to Actual Results for October 2013 4.2. Investment Report for Period Ending October 31, 2013 4.3. Future Agenda Items and Staff Tasks 5. ADJOURNMENT 5.1. The next Finance - Accounting Committee meeting is scheduled to be held Monday, December 16, 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. AGENDA REPORT Meeting Date: November 25, 2013 To: Finance - Accounting Committee From: Steve Conklin, Acting General Manager Presented By: Delia Lugo, Acting Finance Dept: Manager Prepared By: Delia Lugo, Acting Finance Manager Subject: Budget to Actual Results for October 2013 DISCUSSION: ITEM NO. 4.1 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 October 2013. For the month of October 2013, the District water revenue is 42.4% of annual budget, which is 0.03% higher than the historical trend for this point in the year. The majority of the Water Fund's individual Supplies and Services expenses are below budget, with the exceptions of Dues and Memberships and Insurance, still due to the previous month's reported reasons. Overall, Sewer Supplies and Services expenses are trending below budget, with the same exceptions noted in the water fund. 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: Name: Description: Type: October 2013 consolidated stmt.xlsx October 2013 Consolidated Statement Backup Material Oct 2013 Water Stmt.xlsx October 2013 water Statement Backup Material October 2013 Sewer Stmt.xlsx October 2013 Sewer Statement Backup Material 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): Interest Property Tax Other Non - Operating Revenue Total Non - Operating Revenue: Yorba Linda Water District Summary Financial Report Water & Sewer Funds For Four Months Ending October 31, 2013 Annual YTD YTD YTD YTD YTD Budget Budget Actual Under(Over) Under(Over) % of FY 2014 FY 2014 FY 2014 Annual Budget YTD Budget Budget $16,217,590 $5,405,863 $7,294,269 $8,923,321 ($1,888,406) 44.98% 2,020,223 673,408 799,537 1,220,686 (126,129) 39.58% 4,794,156 1,598,052 2,087,830 2,706,326 (489,778) 43.55% 4,468,716 1,489,572 1,409,468 3,059,248 80,104 31.54% 1,550,530 516,843 537,552 1,012,978 (20,709) 34.67% 200,797 66,932 1,004 199,793 65,928 0.50% 717,749 239,250 396,614 321,135 (157,364) 55.26% 29,969,761 9,989,920 12,526,274 17,443,487 (2,536,354) 41.80% 87,000 29,000 36,897 50,103 (7,897) 42.41% 1,264,672 421,557 48,478 1,216,194 373,079 3.83% 509,150 169,717 248,187 260,963 (78,470) 48.75% 1,860,822 620,274 333,562 1,527,260 286,712 17.93% Total Revenue 31,830,683 10,610,194 12,869,836 18,970,747 (2,249,642) 40.40% Expenses (Operating) Variable Water Costs (G.W., Import & Power) 13,767,658 4,589,219 6,129,783 7,637,875 (1,540,564) 44.52% Salary Related Expenses 7,904,873 2,634,958 2,494,529 5,410,344 140,429 31.56% Supplies & Services 4,225,654 1,408,551 1,328,138 2,897,521 80,413 31.43% Total Operating Expenses 25,898,185 8,632,728 9,952,450 15,945,740 (1,319,722) 38.43% Expenses (Non- Operating): Interest on Long Term Debt 1,815,317 605,106 579,151 1,236,166 25,955 31.90% Other Expense 77,400 25,800 17,723 59,677 8,077 22.90% Total Non - Operating Expenses: 1,892,717 630,906 596,874 1,295,843 34,032 31.54% Total Expenses 27,790,902 992639634 1096499324 1792419683 (192869690) 37.96% Net Income (Loss) Before Capital Contributions 4,039,681 193469660 293109612 197299164 (9639962) 67.20% Capital Contributions 1,667 1,667 (1,667) 0.00% Net Income (Loss) Before Depreciation 4,039,681 1,346,660 2,312,179 1,730,831 (966,619) 67.24% Depreciation & Amortization 6,897,941 2,299,314 2,438,504 4,459,432 (139,190) 35.35% Total Net Income (Loss) ($2,868,260) ($962,763) ($126,326) ($2,728,601) ($826,428) 4.42% Yorba Linda Water District Water Fund For Four Months Ending October 31, 2013 Annual YTD Oct YTD YTD YTD YTD Budget Budget Actual Actual Under(Over) Under(Over) % of Annual FY 2014 FY 2014 FY 2013 FY 2014 Annual Budget YTD Budget Budget Revenue (Operating): 24,601,179 8,200,393 2,077,216 9,537,961 15,063,218 (1,337,568) 38.77% Water Revenue (Residential) $16,217,590 $5,405,863 $2,011,480 $7,294,269 8,923,321 (1,888,406) 44.98% Water Revenue (Commercial & Fire Det.) 2,020,223 673,408 226,142 799,537 1,220,686 (126,129) 39.58% Water Revenue (Landscape /Irrigation) 4,794,156 1,598,052 567,975 2,087,830 2,706,326 (489,778) 43.55% Water Revenue (Service Charge) 4,468,716 1,489,572 366,909 1,409,468 3,059,248 80,104 31.54% Other Operating Revenue 681,074 227,025 84,310 350,208 330,866 (123,183) 51.42% Total Operating Revenue: 28,181,759 9,393,920 3,256,816 11,941,312 16,240,447 (2,547,392) 42.37% Revenue (Non- Operating): - - - - 0.00% Interest 75,000 25,000 9,125 34,761 40,239 (9,761) 46.35% Property Tax 1,264,672 421,557 6,285 48,478 1,216,194 373,079 3.83% Other Non - Operating Revenue 501,200 167,067 60,241 242,919 258,281 (75,852) 48.47% Total Non - Operating Revenue: 1,840,872 613,624 75,651 326,158 1,514,714 287,466 17.72% Total Revenue 30,022,631 10,007,544 3,332,467 12,267,470 17,755,161 (2,259,926) 40.86% Expenses (Operating): Variable Water Costs (G.W., Import & Power) 13,767,658 4,589,219 1,239,010 6,129,783 7,637,875 (1,540,564) 44.52% Salary Related Expenses 6,987,204 2,329,068 485,643 2,201,797 4,785,407 127,271 33.03% Supplies & Services: Communications 283,371 94,457 17,509 59,741 223,630 34,716 21.08% Contractual Services 504,089 168,030 35,734 141,391 362,698 26,639 28.05% Data Processing 158,779 52,926 22,404 40,289 118,490 12,637 25.37% Dues & Memberships 67,021 22,340 8,866 33,490 33,531 (11,150) 49.97% Fees & Permits 152,224 50,741 30,015 47,683 104,541 3,058 31.32% Insurance 278,293 92,764 45 213,055 65,238 (120,291) 76.56% Materials 568,676 189,559 76,228 235,270 333,406 (45,711) 41.37% District Activities, Emp Recognition 23,390 7,797 2,324 3,809 19,581 3,988 16.28% Maintenance 357,243 119,081 26,335 91,561 265,682 27,520 25.63% Non - Capital Equipment 121,534 40,511 17,431 38,440 83,094 2,071 31.63% Office Expense 42,920 14,307 5,136 9,642 33,278 4,665 22.47% Professional Services 747,785 249,262 59,313 171,174 576,611 78,088 22.89% Training 64,403 21,468 1,183 9,685 54,718 11,783 15.04% Travel & Conferences 48,389 16,130 3,079 9,926 38,463 6,204 20.51% Uncollectible Accounts 23,250 7,750 1,476 1,260 21,990 6,490 5.42% Utilities 83,700 27,900 10,639 6,051 77,649 21,849 7.23% Vehicle Equipment 321,250 107,083 34,846 93,914 227,336 13,169 29.23% Supplies & Services Sub -Total 3,846,317 1,282,106 352,563 1,206,381 2,639,936 75,725 31.36% Total Operating Expenses 24,601,179 8,200,393 2,077,216 9,537,961 15,063,218 (1,337,568) 38.77% Expenses (Non- Operating): Interest on Long Term Debt 1,815,317 605,106 153,019 579,151 1,236,166 25,955 31.90% Other Expense 71,400 23,800 11,009 17,723 53,677 6,077 24.82% Total Non - Operating Expenses: 1,886,717 628,906 164,028 596,874 1,289,843 32,032 31.64% Total Expenses 26,487,896 8,829,299 2,241,244 10,134,835 16,353,061 (1,305,536) 38.26% Net Income (Loss) Before Capital Contributions 3,534,735 1,178,245 1,091,223 2,132,635 1,402,100 (954,390) 60.33% Capital Contributions - - - - 0.00% Net Income (Loss) Before Depreciation 3,534,735 1,178,245 1,091,223 2,132,635 1,402,100 (954,390) 60.33% Depreciation & Amortization 5,598,638 1,866,213 496,373 1,985,492 3,613,146 (119,279) 35.46% Total Net Income (Loss) ($2,063,903) ($687,968) $594,850 $147,143 ($2,211,046) ($835,111) -7.13% Capital - Direct Labor (23,882) (105,977) Yorba Linda Water District Sewer Fund For Four Months Ending October 31, 2013 Annual YTD Oct YTD YTD YTD YTD Budget Budget Actual Actual Under(Over) Under(Over) % of FY 2014 FY 2014 FY 2013 FY 2014 Annual Budget YTD Budget Annual Budget Revenue (Operating) Sewer Charge Revenue $1,550,530 $516,843 $137,986 $537,552 $1,012,978 $ (20,709) 34.67% Locke Ranch Assessments 200,797 66,932 429 1,004 199,793 65,928 0.50% Other Operating Revenue 36,675 12,225 3,363 46,406 (9,731) (34,181) 126.53% Total Operating Revenue: 1,788,002 596,001 141,778 584,962 1,203,040 11,039 32.72% Revenue (Non- Operating): 6,000 2,000 - - 6,000 2,000 0.00% Interest 12,000 4,000 770 2,136 9,864 1,864 17.80% Other Non - Operating Revenue 7,950 2,650 5,296 5,268 2,682 (2,618) 66.26% Total Non - Operating Revenue: 19,950 6,650 6,066 7,404 12,546 (754) 37.11% Total Revenue 1,807,952 602,651 147,844 592,366 1,215,586 10,285 32.76% Expenses (Operating): 1,299,298 433,099 113,253 453,012 846,286 (19,913) 34.87% Salary Related Expenses 917,669 305,890 57,854 292,732 624,937 13,158 32.06% Supplies & Services: (180) (1,469) 1,469 Communications 21,829 7,276 1,318 4,497 17,332 2,779 20.60% Contractual Services 38,751 12,917 2,229 10,645 28,106 2,272 27.47% Data Processing 11,951 3,984 1,686 3,032 8,919 952 25.37% Dues & Memberships 5,314 1,771 667 2,520 2,794 (749) 47.42% Fees & Permits 15,141 5,047 2,022 4,731 10,410 316 31.25% Insurance 20,947 6,982 3 16,036 4,911 (9,054) 76.56% Materials 19,099 6,366 228 13,315 5,784 (6,949) 69.72% District Activities, Emp Recognition 1,761 587 175 280 1,481 307 15.90% Maintenance 121,908 40,636 1,076 28,630 93,278 12,006 23.48% Non - Capital Equipment 16,417 5,472 6,304 10,732 5,685 (5,260) 65.37% Office Expense 3,231 1,077 387 723 2,508 354 22.38% Professional Services 37,425 12,475 2,026 8,560 28,865 3,915 22.87% Training 6,757 2,252 (57) 4,344 2,413 (2,092) 64.29% Travel & Conferences 4,062 1,354 232 738 3,324 616 18.17% Uncollectible Accounts 1,750 583 103 78 1,672 505 4.46% Utilities 7,100 2,367 852 852 6,248 1,515 12.00% Vehicle Equipment 45,899 15,300 (380) 12,044 33,855 3,256 26.24% Supplies & Services Sub -Total 379,342 126,447 18,871 121,757 257,585 4,690 32.10% Total Operating Expenses 1,297,011 432,337 76,725 414,489 882,522 17,848 31.96% Expenses (Non- Operating): Interest Expense - - - - - - 0.00% Other Expense 6,000 2,000 6,000 2,000 0.00% Total Non - Operating Expenses: 6,000 2,000 - - 6,000 2,000 0.00% Total Expenses 1,303,011 434,337 76,725 414,489 888,522 19,848 31.81% Net Income (Loss) Before Capital Contributions 504,941 168,314 71,119 177,877 327,064 (9,563) 35.23% Capital Contributions - - 1,667 1,667 (1,667) 0.00% Net Income (Loss) Before Depreciation 504,941 168,314 71,119 179,544 328,731 (11,230) 35.56% Depreciation & Amortization 1,299,298 433,099 113,253 453,012 846,286 (19,913) 34.87% Total Net Income (Loss) (794,357) (264,786) ($42,134) (273,468) (517,555) $8,682 34.43% Capital - Direct Labor (180) (1,469) 1,469 AGENDA REPORT Meeting Date: November 25, 2013 To: Finance - Accounting Committee From: Steve Conklin, Acting General Manager Presented By: Delia Lugo, Acting Finance Dept: Manager Prepared By: Delia Lugo, Acting Finance Manager Subject: Investment Report for Period Ending October 31, 2013 SUMMARY: ITEM NO. 4.2 Finance Staff is submitting the October 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 October 31, 2013 is 0.67 %. The overall increase in the investment balance from the previous month is approximately $388,000. A couple of the larger balance changes include an increase in the Water Operating Fund of approximately $324,000, a decrease in the COP Revenue Bond 2008 for Debts and Service payment of approximately $11,000, and an increase in the Water Capital Project Reserve of $23,000 for capital gain on investment. 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 the Period Ending October 31, Invst Rept Oct 2013.x1sx Backup Material 2013 October 2013 Agenda Backup.xlsx Agenda Backup Backup Material Yorba Linda Water District Investment Portfolio Report October 31, 2013 Market % Date of Percent Value Par of Total Institution Maturity Yield Checking Account. $ 290,419 $ 290,419 Wells Fargo Bank 8,971 8,971 Pershing $ 299,390 $ 299,390 1.57% Total 0.00% Money Market Accounts: $ 54,961 $ 54,961 Wells Fargo Money Market 0.03% 11,760 11,760 US Bank (Revenue Bonds) 0.04% 6,554,248 6,554,248 Bank of the West 0.34% $ 6,620,970 $ 6,620,970 34.78% Total 0.34% Federal Agency Securities: $ 490,340 $ 500,000 Fannie Mae 05/25/18 1.14% 490,835 500,000 Federal Home Loan Bank 06/12/18 1.01% 494,530 500,000 Fannie Mae 06/12/18 0.80% 492,275 500,000 Federal Home Loan Bank 06/13/18 1.11% 492,555 500,000 Federal Home Loan Bank 06/20/18 1.14% 2,130,017 2,115,000 Federal Home Loan Bank 05/28/14 1.36% $ 4,590,552 $ 4,615,000 24.11% Total 04/27/18 1.19% Certificates of Deposits: $ 241,187 $ 248,000 CIT Bank, Salt Lake 05/22/18 1.23% 241,187 248,000 Discover 05/22/18 1.23% 241,483 248,000 Goldman Sachs Bank 05/22/18 1.23% 241,247 248,000 Beal Bank 05/23/18 1.02% 242,720 248,000 Wells Fargo 04/27/18 0.91% 239,094 247,000 Barclays Bank 04/30/18 0.72% 242,046 248,000 State Bank of India 05/14/18 1.17% 243,136 249,000 Webster Bank 05/03/18 0.92% 241,168 248,000 American Express Centurion Bank 05/23/18 1.23% 241,212 248,000 GE Capital Bank 05/24/18 1.13% 245,838 249,000 Merrick Bank 05/24/17 0.75% 244,868 248,000 BMW Bank 05/24/17 0.91% 246,941 249,000 Firstbank Puerto Rico 05/24/16 0.75% 242,110 249,000 Oriental Bank & Trust 05/29/18 1.07% 242,195 249,000 Silvergate Bank 05/30/18 1.02% 242,085 249,000 Enterprise Bank & TR Co Lowell 05/30/18 1.02% 242,083 249,000 Safra National Bank 05/31/18 1.02% 241,125 248,000 Townebank Portsmouth 05/31/18 1.02% 242,103 249,000 Mascona Savings Bank 05/29/18 1.02% $ 4,603,827 $ 4,719,000 24.18% Total 0.80% Pooled Investment Accounts: $ 1,151,600 $ 1,151,600 Local Agency Investment Fund 0.27% Ca1TRUST Short Term 1,770,615 1,773,102 Ca1TRUST Short and Medium Term 0.61% $ 2,922,215 $ 2,924,703 15.35% 0.47% $ 19,036,952 $ 19,179,062 100% Total Investments 0.67% 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. —wv—v-- Tiffany Nguyen, Senior Accountant 10/31/13 Investment Summary Report Below is a chart summarizing the yields as well as terms and maturities for the month of October 2013: Average # of Month Portfolio Days to of 2013 Yield Maturity October 0.67% 643 Below is are charts comparing operating fund interest for current and prior fiscal years. Actual Interest 10/31/2012 % Alloc 10/31/2013 Monthly - October $ 11,301 $ 9,895 Year -to -Date $ 30,761 $ 36,897 Budget 2012/2013 13.32% 2013/2014 Interest Budget, October YTD $ 50,000 $ 29,000 Interest Budget, Annual $ 150,000 $ 87,000 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: September 2013 % Alloc October 2013 % Alloc Fund Description Balance 9/30/2013 Balance 10/31/2013 Water Operating Reserve $ 2,487,992 13.32% $ 2,543,823 13.32% Water Emergency Reserve 990,703 5.31% 993,938 5.31% Water Capital Project Reserve 7,772,901 41.62% 7,796,227 41.62% Water Reserve for Debt Service 2,724,249 14.59% 2,725,304 14.59% Maintenance Reserve 200,000 1.07% 200,115 1.07% Employee Liability Reserve 100,000 0.54% 100,000 0.54% COP Revenue Bond 2008 - Reserve 2,155,591 11.54% 2,141,776 11.54% Sewer Operating 66,959 0.36% 66,998 0.36% Sewer Emergency Reserve 1,002,903 5.37% 1,004,006 5.37% Sewer Capital Project Reserve 1,172,502 6.28% 1,174,347 6.28% $ 18,673,800 100.00% $ 18,746,534 100.00% Wells Fargo Bank Checking Water Operating (363,188) (94,669) Sewer Operating 338,315 385,087 (24,873) 290,419 Totals $ 18,648,927 $ 19,036,952