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HomeMy WebLinkAbout2014-07-29 - Finance-Accounting Committee Meeting Agenda PacketYorba Linda Hater District AGENDA YORBA LINDA WATER DISTRICT FINANCE - ACCOUNTING COMMITTEE MEETING Tuesday, July 29, 2014, 4:00 PM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. ROLL CALL COMMITTEE Director Phil Hawkins, Chair Director Michael J. Beverage STAFF Steve Conklin, Acting General Manager Delia Lugo, 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. Investment Report for the Period Ending June 30, 2014 Recommendation. That the Committee recommend the Board of Directors receive and file the Investment Report for the Period Ending June 30, 2014. 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. Auditor Discussion with Those in Governance 5.2. Periodic Review of "AA" Bond Rating By Fitch Ratings 5.3. Budget to Actual Results for June 2014 5.4. Future Agenda Items and Staff Tasks 6. ADJOURNMENT 6.1. The next Finance - Accounting Committee meeting is scheduled to be held Monday, August 25, 2014 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. AGENDA REPORT Meeting Date: July 29, 2014 To: Finance - Accounting Committee From: Steve Conklin, Acting General Manager Presented By: Delia Lugo, Finance Manager Prepared By: Kelly McCann, Senior Accountant Dept: Subject: Investment Report for the Period Ending June 30, 2014 ITEM NO. 4.1 Finance SUMMARY: Staff is submitting the Investment Report for the Period Ending June 30, 2014 for the Committee's review. STAFF RECOMMENDATION: That the Committee recommend the Board of Directors receive and file the Investment Report for the Period Ending June 30, 2014. 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, average term portfolio information, as well as market value broken out by reserve categories. The total yield for the month ending June 30, 2014 is 0.63 %. The overall increase in the investment balance from the previous month is approximately $2,014,000. A couple large balance changes that attribute to this increase include an increase in the Water Capital Project Reserve fund of $581,648 from the sale of the Plumosa Building and an increase of approximately $1,432,000 in the Water Operating Fund due to a positive net effect between operating revenues and expenses through the reporting month of the fiscal year. In the month of June, staff initiated transfers between various reserves held in investments. The primary purpose of the transfers was to end the year in accordance with the reserve policy and projected funding levels. As a result of transferring funds in our investment accounts, some of the larger balance changes include the following: • a transfer out of the Water Operating Reserve of over $2,000,000 to lower the account closer to it's approximate target reserve amount of $3,137,000 • a transfer of over $3,747,000 into the Water Capital Project Reserve as the other water accounts transferred money into this account • a transfer out of the Sewer Operating Reserve of over $625,000 to lower the account balance to it's approximate target reserve amount of $160,500 • a transfer into the Sewer Capital Project Reserve in the amount of $697,000 as the other sewer accounts transferred money into this account 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 06- 14.xlsx Investment Report for Period Ending June 2014 Backup Material Invst Agenda Backup - June 2014.xlsx Agenda Backup Backup Material Yorba Linda Water District Investment Portfolio Report June 30, 2014 Market % Date of Percent Value Par of Total Institution Maturity Yield Checking Account: $ 279,661 $ 279,661 Wells Fargo Bank 74,033 74,033 Pershing $ 353,695 $ 353,695 1.20% Total 0.00°/% Money Market Accounts: $ 54,972 $ 54,972 37,239 37,239 4.553.729 4.553.729 4,645,941 $ 4,645,941 15.80% Federal Agency Securities Wells Fargo Money Market 0.03% US Bank (Revenue Bonds) 0.03% Bank of the West 0.24% Total 0.24% $ 492,770 $ 500,000 Fannie Mae 05/25/18 1.14% 491,885 500,000 Federal Home Loan Bank 06/12/18 1.01% 498,085 500,000 Fannie Mae 06/12/18 0.85% 493,190 500,000 Federal Home Loan Bank 06/13/18 1.11% 493,395 500,000 Federal Home Loan Bank 06/20/18 1.14% 2,115,085 2,124,676 Federal Home Loan Bank 05/24/17 0.88% $ 4,584,410 $ 4,624,676 15.59% Total 05/14/18 0.97% Certificates of Deposits $ 245,039 $ 248,000 CIT Bank, Salt Lake 05/22/18 1.21% 244,853 248,000 Discover 05/22/18 1.21% 245,138 248,000 Goldman Sachs Bank 05/22/18 1.21% 245,106 248,000 BealBank 05/23/18 1.01% 246,594 248,000 Wells Fargo 04/27/18 0.90% 243,717 247,000 Barclays Bank 04/30/18 0.70% 245,780 248,000 State Bank of India 05/14/18 1.16% 246,874 249,000 Webster Bank 05/03/18 0.90% 245,019 248,000 American Express Centurion Bank 05/23/18 1.21% 243,159 248,000 GE Capital Bank 05/24/18 1.12% 248,888 249,000 Merrick Bank 05/24/17 0.75% 247,888 248,000 BMW Bank 05/24/17 0.90% 249,281 249,000 Firstbank Puerto Rico 05/24/16 0.74% 246,017 249,000 Oriental Bank & Trust 05/29/18 1.06% 246,094 249,000 Silvergate Bank 05/30/18 1.01% 246,002 249,000 Enterprise Bank & TR Co Lowell 05/30/18 1.01% 245,990 249,000 Safra National Bank 05/31/18 1.01% 245,012 248,000 Townebank Portsmouth 05/31/18 1.01% 246,014 249,000 Mascoma Savings Bank 05/29/18 1.01% $ 4,672,466 $ 4,719,000 15.89% Total 1.01% Pooled Investment Accounts: $ 5,752,378 $ 5,752,378 Local Agency Investment Fund 0.23% 1,440 1,440 Ca1TRUST Short Term 0.40% 9,394,448 9,395,171 Ca1TRUST Medium Term 0.73% $ 15,148,267 $ 15,148,989 51.52% 0.54% $ 29,404,777 $ 29,492,300 100% Total Investments 0.63% 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. 'a Kelly D. McCann, Senior Accountant 6/30/14 Investment Summary Report Below is a chart summarizing the yields as well as terms and maturities for the month of June 2014: Average # of Month Portfolio Days to of 2014 Yield Maturity June 0.63% 425 Below is are charts comparing operating fund interest for current and prior fiscal years. Actual Interest Monthly - June Year -to -Date 6/30/2013 6/30/2014 $ 21,941 $ 11,693 $ 137,568 $ 138,598 Budget 2012/2013 2013/2014 Interest Budget, June YTD $ 150,000 $ 87,000 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: Maintenance Reserve Employee Liability Reserve COP Revenue Bond 2008 - Reserve Sewer Operating Sewer Emergency Reserve Sewer Capital Project Reserve 191,658 0.70% 100,057 0.37% 2,131,508 May 2014 % Alloc June 2014 % Alloc Fund Description Balance 5/31/2014 Balance 6/30/2014 Water Operating Reserve $ 4,950,503 18.17% $ 2,924,921 10.04% Water Emergency Reserve 1,009,054 3.70% 1,010,940 3.47% Water Capital Project Reserve 12,929,327 47.46% 16,676,503 57.26% Water Reserve for Debt Service 2,729,521 10.02% 2,730,024 9.37% Maintenance Reserve Employee Liability Reserve COP Revenue Bond 2008 - Reserve Sewer Operating Sewer Emergency Reserve Sewer Capital Project Reserve 191,658 0.70% 100,057 0.37% 2,131,508 7.82% 764,443 2.81% 1,009,486 3.71% 1,429,427 5.25% $ 27,244,985 100.00% Wells Fargo Bank Checking Water Operating 124,099 Sewer Operating 21,749 145,848 200,000 0.69% 200,076 0.69% 2,152,324 7.39% 92,869 0.32% 1,010,396 3.47% 2,127,063 7.30% $ 29,125,116 100.00% 212,041 67,620 279,661 Totals $ 27,390,833 $ 29,404,777 Meeting Date: To: From: Presented By: Prepared By: Subject: DISCUSSION: ITEM NO. 5.1 AGENDA REPORT July 29, 2014 Finance - Accounting Committee Steve Conklin, Acting General Manager Delia Lugo, Finance Manager Dept: Finance Delia Lugo, Finance Manager Auditor Discussion with Those in Governance Nitin Patel, Partner from White Nelson Diehl Evans, LLP will address the Finance - Accounting Committee with information pertaining to the upcoming audit of the fiscal year ending June 30, 2014. He will also be available for any questions the Committee may have. 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 PRIOR RELEVANT BOARD ACTION(S): On May 26, 2011 the Board of Directors authorized the President and Secretary to execute a Professional Services Agreement with Diehl, Evans & Company for a three year contract with two subsequent one -year options for a fee not to exceed $97,695. Meeting Date: To: From: Presented By: Prepared By: Subject: AGENDA REPORT July 29, 2014 Finance - Accounting Committee Steve Conklin, Acting General Manager Delia Lugo, Finance Manager Dept: Delia Lugo, Finance Manager Periodic Review of "AA" Bond Rating By Fitch Ratings ITEM NO. 5.2 Finance DISCUSSION: The Yorba Linda Water District received a "AA" rating on their outstanding bonds in August of 2012 from Fitch Ratings. In complying with their policy, Fitch Ratings has contacted YLWD to inform us that a periodic review on all outstanding bonds is required. ATTACHMENTS: 1 Val 1 1G. Description: Type: Yorba Linda Water District (CA).Pdf YLWD 2012 "AX Bond Rating Backup Material FitchRatings Tagging Info Fitch Rates Yorba Linda Water District, CA's Water Revs 'AA'; Outlook Stable Ratings Endorsement Policy 23 Aug 2012 4:11 PM (EDT) Fitch Ratings -San Francisco -23 August 2012: Fitch Ratings assigns an 'AA' rating to the following Yorba Linda Water District, CA (YLWD) bonds: - -$8.9 million water revenue refunding bonds, series 2012A The proceeds will refund YLWD's 2003 water revenue certificates of participation (COPs) and pay costs of issuance. The bonds are tentatively scheduled to sell via negotiation the firstweek in September. In addition, Fitch affirms the following ratings: - -$46.2 million outstanding water revenue COPs at'AA'. The Rating Outlook is Stable. SECURITY The water revenue bonds and COPs are parity obligations secured by net water revenues after payment of operations and maintenance expenses. KEY RATING DRIVERS Diverse, Affluent Service Area: YLWD serves a suburban residential service area in Orange County, California. Median household income is strong at about 150% of the national level, while unemployment runs well below state and national averages. Sound Financial Profile: The district's financial performance has been healthy, but somewhat erratic. Debt service coverage (DSC) averaged a solid 1.9xall -in over the three fiscal years ended 2011. Liquiditywas strong with 386 days cash and investments at the end of the fiscal year (FY). Significant Rate Increases: YLWD imposed a verylarge 41 % rate increase in 2010 to restore financial margins after a steep decline in water sales and rise in imported water costs reduced coverage in 2009. Somewhat Greater Stability Expected: The board has approved rate increases of 1.5% to 2.5 %, plus the pass through of imported water cost increases, for 2013 through 2015. The shift to a more formulaic rate structure with automatic adjustments for imported water costs is positive for credit quality. However, the rate structure remains highly volumetric, suggesting continued weather - related variability in coverage. Healthy Supply Position: The district gets about half its water supplies from local groundwater, which provides greater supply reliabilityand lower costs than the imported supplies that many Southern California utilities use. YLWD plans to make significant investments to support increased groundwater production over time. Manageable Debt Burden: The district's debt burden is slightlyabove the median for'AA' rated utilities at $1,778 per customer and $510 per capita but is not an outlier in the rating category. CREDIT PROFILE STRONG SERVICE AREA The district's service area is a credit strength and could support a higher rating if financial performance were more consistent. The district is located in the northeastern portion of Orange County approximately35 miles southeast of downtown Los Angeles, and 11 miles north of the Santa Ana, the countyseat. The service area covers most of the cityofYorba Linda, as well as portions of Anaheim, Brea, and Placentia, and unincorporated county areas. The district provides water services to roughly24,000 mostly residential customers. Residential customers accountfor more than 90% of total accounts and consume more than 70% of water provided. Once an agricultural community, the cityof Yorba Linda (about 75,000 residents) has since transformed into a residential bedroom communityof the greater Orange Countyand L.A. metropolitan area. Customer growth is expected to be modest as the district is close to full build -out. Unemploymentwas well below the national average at 5.3% in June 2012. GENERALLYSOUND FINANCIAL PERFORMANCE The district's financial performance has been solid but somewhat erratic due to delays in passing on imported water cost increases to ratepayers. DSC fell below the 1.10x rate covenant m inim um in 2009 as drought - related reductions in imported water supplies pushed sales volume down and costs higher. Coverage recovered to 2.1xin FY2010 and 2.5xin FY2011 due to more typical weather patterns and the large 2010 rate increase. Unaudited results for FY2012 show similarlystrong performance at 2.1x The district's financial forecast shows DSC ranging from an adequate 1.5x in 2013 to a very strong 2.7x in 2017. The forecast appears reasonably conservative with water sales held below their long -term average; however, the rating is likelyto come under downward pressure if coverage falls below the low end of forecast coverage for an extended period. YLWD's board has raised and restructured rates significantlyin recentyears. The 40% increase in 2010 helped dramatically improve performance in a shorttime period afterthe utility's weak results in 2009. Rates were also restructured to provide for the automatic pass- through of imported water cost increases, which should provide greater stability in future years. This verylarge rate increase was controversial, and the district has since attempted to impose more gradual increases on ratepayers. Rates remain affordable as a percentage of median household income at about 1 %. The district's rate structure remains highly volumetric, exposing itto financial volatility across weather cycles. The combination oftardyrate adjustments and the volatile revenue structure is Fitch's primary credit concern. Financial liquidityis strong, allowing the districtto withstand some volatilityin annual operating results. The district had $9.2 million of unrestricted cash and investments and $12.5 million of capital reserves atthe end of FY2011. The capital reserves are restricted on the district's balance sheet, but Fitch believes these reserves provide a significant amount of additional financial flexibility despite the conservative accounting treatment. The utility's FY2012 results will reflect $5 million lawsuit settlement related to the Freeway Complex Fires that affected the service area in 2008. YLDW paid the settlementfrom reserves and is seeking reimbursement from its insurer; even withoutthe reimbursement, YLWD's reserves are expected to remain healthyat more than 300 days cash at the end of fiscal 2012. Over the longer term, the district plans to draw down its capital reserves to invest in additional groundwater production capacity. These investments mayreduce liquiditybelow the median for'AA'rated utilities fora time buttheywould improve long -term credit quality by reducing the utility's coststructure and improving the reliability of its water supply. MANAGEABLE DEBT AND CAPITAL NEEDS Water resources are fairlydiverse and include local groundwater as well as wholesale purchases from the Municipal Water District of Orange County (MWDOC), the regional wholesaler and manager of the local groundwater basin. The district has applied to annex more of its service area into MWDOC. If approved, the annexation would significantly reduce imported water costs, increasing the portion of locally produced water to about 74% from less than 50% presently. The move would increase capital costs in the near term as more wells are drilled and pump stations built. The district has trimmed non - essential projects from its five -year capital plan to keep it manageable at $22.3 million and to minimize borrowing. The plan requires $7 million of additional debt that will be subordinate to the rated bonds. The district's debt burden is currently s lightly elevated at $42.6 million and expected to remain fairly steady over the next five years, as slow amortization offsets the planned borrowing. Contact: Primary Analyst Andrew Ward Associate Director +1- 415- 732 -5617 Fitch, Inc. 650 California Street Fourth Floor San Francisco, CA 94108 Secondary Analyst Shannon Groff Director +1- 415- 732 -5628 Committee Chairperson Steve Murray Senior Director +1- 512- 215 -3729 Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: elizabeth.fogerty @fitchratings.com. Additional information is available at'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings. In addition to the sources of information identified in Fitch's Revenue - Supported Rating Criteria, this action was informed byinformation from CreditScope and IHS Global Insights. Applicable Criteria and Related Research: -- 'Revenue - Supported Rating Criteria', dated June 12, 2012; - -'U.S. Water and Sewer Revenue Bond Rating Criteria', dated Aug. 3, 2012; - -'2012 Water and Sewer Medians', dated Dec. 8, 2011; - -'2012 Outlook: Water and Sewer Sector', dated Dec. 8, 2011. Applicable Criteria and Related Research: Revenue - Supported Rating Criteria U.S. Water and Sewer Revenue Bond Rating Criteria 2012 Water and Sewer Medians 2012 Outlook: Water and Sewer Sector ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP:// FITCHRATINGS. COM /UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIAAND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROMTHE'CODE OF CONDUCT' SECTION OF THIS SITE. Copyright © 2014 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. AGENDA REPORT Meeting Date: July 29, 2014 To: Finance - Accounting Committee From: Steve Conklin, Acting General Manager Presented By: Delia Lugo, Finance Manager Dept: Prepared By: Kelly McCann, Senior Accountant Subject: Budget to Actual Results for June 2014 DISCUSSION: ITEM NO. 5.3 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 June 2014. For the month of June 2014, the District water revenue is 101.72% of annual budget, which is 1.72% higher than the historical trend as the fiscal year ends. The majority of the Water Fund's individual Supplies and Services expenses are below budget, with the exceptions of Materials, Contractual Services, and Uncollectible Accounts, still due to the previous months reported reasons. Sewer Supplies and Services expenses are trending below budget with similar noted exceptions as in the Water Fund. Reported expenses affiliated with the Sewer Materials account for 449.38% of its annual budget due to the previous months reported reason. Finally, the receipt of funds from the sale of the Plumosa Building has been recorded as a Gain on the Sale of an Asset, in the amount of $521,500, which contributes to the District reporting a Net Income as compared to a Budgeted Net Loss. 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: June 2014 consolidated stmt.xlsx June 2014 Water Stmt.xlsx June 2014 Sewer Stmt.xlsx Description: June 2014 Consolidated Statement June 2014 Water Statement June 2014 Sewer Statement Type: Backup Material Backup Material 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: Total Revenue Expenses (Operating): Variable Water Costs (G.W., Import & Power) Salary Related Expenses Supplies & Services Total Operating Expenses Expenses (Non- Operating): Interest on Long Term Debt Other Expense Total Non - Operating Expenses: Total Expenses Net Income (Loss) Before Capital Contributions Extraordinary Item(s) Capital Contributions Special Item Net Income (Loss) Before Depreciation Depreciation & Amortization Total Net Income (Loss) Yorba Linda Water District Summary Financial Report Water & Sewer Funds For Twelve Months Ending June 30, 2014 Annual YTD June YTD YTD YTD YTD Budget Budget Actual Actual Under(Over) Under(Over) % of FY 2014 FY 2014 FY 2014 FY 2014 Annual Budget YTD Budget Budget $16,217,590 $16,217,590 $1,550,251 $16,828,902 ($611,312) ($611,312) 103.77% 2,020,223 2,020,223 $168,968 1,984,097 36,126 36,126 98.21% 4,794,156 4,794,156 $444,555 4,543,944 250,212 250,212 94.78% 4,468,716 4,468,716 $367,338 4,341,964 126,752 126,752 97.16% 1,550,530 1,550,530 132,707 1,561,101 (10,571) (10,571) 100.68% 200,797 200,797 1 198,005 2,792 2,792 98.61% 717,749 717,749 157,346 1,082,805 (365,056) (365,056) 150.86% 29,969,761 29,969,761 2,821,166 30,540,818 (571,057) (571,057) 101.91% 87,000 87,000 11,692 138,598 (51,598) (51,598) 159.31% 1,264,672 1,264,672 25,284 1,371,886 (107,214) (107,214) 108.48% 509,150 509,150 37,452 747,271 (238,121) (238,121) 146.77% 1,860,822 1,860,822 74,428 2,257,755 (396,933) (396,933) 121.33% 31,830,583 31,830,583 2,895,594 32,798,573 (967,990) (967,990) 103.04% 13,767,658 13,767,658 1,655,216 14,390,157 (622,499) (622,499) 104.52% 7,904,873 7,904,873 603,269 7,410,690 494,183 494,183 93.75% 4,225,654 4,225,654 378,183 3,794,320 431,334 431,334 89.79% 25,898,185 25,898,185 2,636,668 25,595,167 303,018 303,018 98.83% 1,815,317 77,400 1,815,317 77,400 151,541 1,226 1,731,306 50,554 84,011 26,846 84,011 26,846 95.37% 65.32% 1,892,717 1,892,717 152,767 1,781,860 110,857 110,857 94.14% 27,790,902 27,790,902 2,789,435 27,377,027 413,875 413,875 98.51% 4,039,681 4,039,681 106,159 5,421,546 (1,381,865) (1,381,865) 134.21% - - - 521,500 5,000,000 2,086,270 (521,500) (5,000,000) (2,086,270) 521,500 (5,000,000) (2,086,270) 521,500 0.00% 0.00% 0.00% 4,039,681 4,039,681 627,659 13,029,316 (8,989,635) (8,989,635) 322.53% 6,897,941 6,897,941 612,878 7,314,887 (416,946) (416,946) 106.04% ($2,858,260) ($2,858,260) $14,781 $5,714,429 ($8,572,689) ($8,572,689) - 199.93% Yorba Linda Water District Water Fund For Twelve Months Ending June 30, 2014 Annual YTD June YTD YTD YTD YTD Budget Budget Actual Actual Under(Over) Under(Over) % of Annual FY 2014 FY 2014 FY 2014 FY 2014 Annual Budget YTD Budget Budget Revenue (Operating): 24,601,179 24,601,179 2,520,588 24,364,462 236,717 236,717 99.04% Water Revenue (Residential) $ 16,217,590 $ 16,217,590 $ 1,550,251 $ 16,828,902 $ (611,312) $ (611,312) 103.77% Water Revenue (Commercial & Fire Det.) 2,020,223 2,020,223 168,968 1,984,097 36,126 36,126 98.21% Water Revenue (Landscape /Irrigation) 4,794,156 4,794,156 444,555 4,543,944 250,212 250,212 94.78% Water Revenue (Service Charge) 4,468,716 4,468,716 367,338 4,341,964 126,752 126,752 97.16% Other Operating Revenue 681,074 681,074 131,640 967,174 (286,100) (286,100) 142.01% Total Operating Revenue: 28,181,759 28,181,759 2,662,752 28,666,081 (484,322) (484,322) 101.72% Revenue (Non- Operating): - - 5,000,000 (5,000,000) (5,000,000) 0.00% Interest 75,000 75,000 9,953 127,100 (52,100) (52,100) 169.47% Property Tax 1,264,672 1,264,672 25,284 1,371,886 (107,214) (107,214) 108.48% Other Non - Operating Revenue 501,200 501,200 37,452 707,776 (206,576) (206,576) 141.22% Total Non - Operating Revenue: 1,840,872 1,840,872 72,689 2,206,762 (365,890) (365,890) 119.88% Total Revenue 30,022,631 30,022,631 2,735,441 30,872,843 (850,212) (850,212) 102.83% Expenses (Operating): (22,243) (288,767) Variable Water Costs (G.W., Import & Power) 13,767,658 13,767,658 1,655,216 14,390,157 (622,499) (622,499) 104.52% Salary Related Expenses 6,987,204 6,987,204 536,040 6,574,332 412,872 412,872 98.22% Supplies & Services: Communications 283,371 283,371 11,662 201,456 81,915 81,915 71.09% Contractual Services 504,089 504,089 55,763 520,463 (16,374) (16,374) 103.25% Data Processing 158,779 158,779 18,222 154,225 4,554 4,554 97.13% Dues & Memberships 67,021 67,021 102 60,801 6,220 6,220 90.72% Fees & Permits 152,224 152,224 8,399 146,467 5,757 5,757 96.22% Insurance 278,293 278,293 - 258,519 19,774 19,774 92.89% Materials 568,676 568,676 65,784 654,944 (86,268) (86,268) 115.17% District Activities, Emp Recognition 23,390 23,390 991 14,919 8,471 8,471 63.78% Maintenance 357,243 357,243 36,636 302,791 54,452 54,452 84.76% Non - Capital Equipment 121,534 121,534 27,595 116,203 5,331 5,331 95.61% Office Expense 42,920 42,920 4,447 34,710 8,210 8,210 80.87% Professional Services 747,785 747,785 70,505 482,658 265,127 265,127 64.55% Training 64,403 64,403 151 27,108 37,295 37,295 42.09% Travel & Conferences 48,389 48,389 4,079 27,147 21,242 21,242 56.10% Uncollectible Accounts 23,250 23,250 272 26,117 (2,867) (2,867) 112.33% Utilities 83,700 83,700 (5,321) 24,069 59,631 59,631 28.76% Vehicle Equipment 321,250 321,250 30,045 347,376 (26,126) (26,126) 108.13% Supplies & Services Sub -Total 3,846,317 3,846,317 329,332 3,399,973 446,344 446,344 88.40% Total Operating Expenses 24,601,179 24,601,179 2,520,588 24,364,462 236,717 236,717 99.04% Expenses (Non- Operating): Interest on Long Term Debt 1,815,317 1,815,317 151,541 1,731,306 84,011 84,011 95.37% Other Expense 71,400 71,400 1,227 50,555 20,845 20,845 70.81% Total Non - Operating Expenses: 1,886,717 1,886,717 152,768 1,781,861 104,856 104,856 94.44% Total Expenses 26,487,896 26,487,896 2,673,356 26,146,323 341,573 341,573 98.71% Net Income (Loss) Before Capital Contributions 3,534,735 3,534,735 62,085 4,726,520 (1,191,785) (1,191,785) 133.72% Extraordinary Item - - 5,000,000 (5,000,000) (5,000,000) 0.00% Capital Contributions 1,235,502 (1,235,502) (1,235,502) 0.00% Special Item - - 521,500 521,500 (521,500) (521,500) 0.00% Net Income (Loss) Before Depreciation 3,534,735 3,534,735 583,586 11,483,523 (7,948,788) (7,948,788) 324.88% Depreciation & Amortization 5,598,638 5,598,638 501,288 5,982,906 (384,268) (384,268) 106.86% Total Net Income (Loss) $ (2,063,903) $ (2,063,903) $ 82,298 $ 5,500,617 $ (7,564,520) $ (7,564,520) - 266.52% Capital - Direct Labor (22,243) (288,767) Yorba Linda Water District Sewer Fund For Twelve Months Ending June 30, 2014 Annual YTD June YTD YTD YTD YTD Budget Budget Actual Actual Under(Over) Under(Over) % of FY 2014 FY 2014 FY 2014 FY 2014 Annual Budget YTD Budget Annual Budget Revenue (Operating): 1,297,011 1,297,011 116,080 1,230,709 66,302 66,302 94.89% Sewer Charge Revenue $ 1,550,530 $ 1,550,530 $ 132,707 $ 1,561,103 $ (10,573) $ (10,573) 100.68% Locke Ranch Assessments 200,797 200,797 1 198,006 2,791 2,791 98.61% Other Operating Revenue 36,675 36,675 25,706 115,632 (78,957) (78,957) 315.29% Total Operating Revenue: 1,788,002 1,788,002 158,414 1,874,741 (86,739) (86,739) 104.85% Revenue (Non- Operating): 1,303,011 1,303,011 116,080 1,230,709 72,302 72,302 94.45% Interest 12,000 12,000 1,739 11,497 503 503 95.81% Other Non - Operating Revenue 7,950 7,950 - 39,495 (31,545) (31,545) 496.79% Total Non - Operating Revenue: 19,950 19,950 1,739 50,992 (31,042) (31,042) 255.60% Total Revenue 1,807,952 1,807,952 160,153 1,925,733 (117,781) (117,781) 106.51% Expenses (Operating): (794,357) $ (794,357) $ (67,517) $ 213,811 $ (1,008,168) $(1,008,168) - 26.92% Salary Related Expenses 917,669 917,669 67,229 836,356 81,313 81,313 92.06% Supplies & Services: Communications 21,829 21,829 743 14,872 6,957 6,957 68.13% Contractual Services 38,751 38,751 2,813 38,980 (229) (229) 100.59% Data Processing 11,951 11,951 1,368 11,605 346 346 97.10% Dues & Memberships 5,314 5,314 8 4,602 712 712 86.60% Fees & Permits 15,141 15,141 432 12,968 2,173 2,173 85.65% Insurance 20,947 20,947 - 19,458 1,489 1,489 92.89% Materials 19,099 19,099 29,007 85,828 (66,729) (66,729) 449.38% District Activities, Emp Recognition 1,761 1,761 46 1,088 673 673 61.78% Maintenance 121,908 121,908 8,874 81,072 40,836 40,836 66.50% Non - Capital Equipment 16,417 16,417 1,700 17,724 (1,307) (1,307) 107.96% Office Expense 3,231 3,231 215 6,736 (3,505) (3,505) 208.48% Professional Services 37,425 37,425 1,540 24,954 12,471 12,471 66.68% Training 6,757 6,757 5 5,780 977 977 85.54% Travel & Conferences 4,062 4,062 133 1,816 2,246 2,246 44.71% Uncollectible Accounts 1,750 1,750 38 3,515 (1,765) (1,765) 200.86% Utilities 7,100 7,100 (3,194) (165) 7,265 7,265 -2.32% Vehicle Equipment 45,899 45,899 5,123 63,520 (17,621) (17,621) 138.39% Supplies & Services Sub -Total 379,342 379,342 48,851 394,353 (15,011) (15,011) 103.96% Total Operating Expenses 1,297,011 1,297,011 116,080 1,230,709 66,302 66,302 94.89% Expenses (Non- Operating): Interest Expense - - - - - - 0.00% Other Expense 6,000 6,000 6,000 6,000 0.00% Total Non - Operating Expenses: 6,000 6,000 - - 6,000 6,000 0.00% Total Expenses 1,303,011 1,303,011 116,080 1,230,709 72,302 72,302 94.45% Net Income (Loss) Before Capital Contributions 504,941 504,941 44,073 695,024 (190,083) (190,083) 137.64% Capital Contributions - - - 850,769 (850,769) (850,769) 0.00% Net Income (Loss) Before Depreciation 504,941 504,941 44,073 1,545,793 (1,040,852) (1,040,852) 306.13% Depreciation & Amortization 1,299,298 1,299,298 111,590 1,331,982 (32,684) (32,684) 102.52% Total Net Income (Loss) $ (794,357) $ (794,357) $ (67,517) $ 213,811 $ (1,008,168) $(1,008,168) - 26.92% Capital - Direct Labor (1,050) (8,437) 8,437