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HomeMy WebLinkAbout2014-12-17 - Finance-Accounting Committee Meeting Agenda PacketYorba Linda Hater District AGENDA YORBA LINDA WATER DISTRICT FINANCE - ACCOUNTING COMMITTEE MEETING Wednesday, December 17, 2014, 10:00 AM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. ROLL CALL COMMITTEE Director Phil Hawkins, Chair Director Michael J. Beverage STAFF Marc Marcantonio, 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. 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. Presentation Regarding Services By Kreisler Long -Term Investments 4.2. Budget to Actual Results for November 2014 4.3. Investment Report for Period Ending November 30, 2014 4.4. Future Agenda Items and Staff Tasks 5. ADJOURNMENT 5.1. The next Finance - Accounting Committee meeting is scheduled to be held Monday, January 26, 2015 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. Meeting Date: To: From: Presented By: Prepared By: Subject: DISCUSSION: ITEM NO. 4.2 AGENDA REPORT December 17, 2014 Finance - Accounting Committee Delia Lugo, Finance Manager Delia Lugo, Finance Manager Dept: Finance Kelly McCann, Senior Accountant Budget to Actual Results for November 2014 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 November 2014. For the month of November 2014, the District Water Operating Revenue is 49.45% of annual budget. Reported revenue resulting from customer billings for water service is averaging 4.8% below from what was reported for this time of the previous year. The majority of the Water Fund's Individual Supplies and Services expenses are below budget, with the exceptions of Data Processing, Insurance, Materials, Maintenance, Vehicle Equipment, and other expenses due to the previous months reported reasons. In addition for this month, Dues and Memberships are reported at 71.61 % of annual budget due to a payment to the Association of California Water Agencies (ACWA) for annual agency dues. 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: November 2014 Consolidated Stmt.xlsx November 2014 Water Stmt.xlsx November 2014 Sewer Stmt.xlsx Description: November 2014 Consolidated Statement November 2014 Water Fund Statement November 2014 Sewer Fund Statement Type: Backup Material Backup Material Backup Material Yorba Linda Water District Summary Financial Report Water & Sewer Funds For Five Months Ending November 30, 2014 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: Annual YTD Nov YTD YTD YTD Budget Budget Actual Actual Under(Over) % of FY 2016 FY 2016 FY 2016 FY 2016 Budget Budget $17,154,552 $7,147,730 $1,312,049 $8,440,387 $8,714,165 49.20% 2,074,097 864,207 155,225 932,414 1,141,683 44.96% 4,792,995 1,997,081 339,066 2,460,088 2,332,907 51.33% 4,478,000 1,865,833 421,522 2,055,426 2,422,574 45.90% 1,605,292 668,872 131,884 676,339 928,953 42.13% 201,000 83,750 7,281 7,704 193,296 3.83% 719,777 299,907 212,211 561,357 158,420 77.99% 31,025,713 12,927,380 2,579,238 15,133,715 15,891,998 48.78% 112,000 46,667 18,517 66,100 45,900 59.02% 1,283,642 534,851 70,981 126,309 1,157,333 9.84% 533,525 222,302 68,415 255,501 278,024 47.89% 1,929,167 803,820 157,913 447,910 1,481,257 23.22% Total Revenue 32,964,880 13,731,200 2,737,161 16,681,626 17,373,266 47.28% Expenses (Operating) Variable Water Costs (G.W., Import & Power) 14,928,972 6,220,405 927,241 7,230,588 7,698,384 48.43% Salary Related Expenses 8,224,812 3,427,005 608,158 3,178,576 5,046,236 38.65% Supplies & Services 4,413,370 1,838,904 249,751 1,885,327 2,528,043 42.72% Total Operating Expenses 27,567,154 11,486,314 1,785,150 12,294,491 15,272,663 44.60% Expenses (Non- Operating): Interest on Long Term Debt 1,780,793 741,997 137,140 708,744 1,072,049 39.80% Other Expense 72,000 30,000 2,750 36,749 35,251 51.04% Total Non - Operating Expenses: 1,852,793 771,997 139,890 745,493 1,107,300 40.24% Total Expenses 29,419,946 1292689311 1,926,040 1390399984 1693799962 44.32% Net Income (Loss) Before Capital Contributions 3,634,934 194729889 8129111 296419641 9939293 71.90% Capital Contributions 69,983 69,983 0.00% Net Income (Loss) Before Depreciation 3,634,934 1,472,889 812,111 2,611,624 923,310 73.88% Depreciation & Amortization 7,337,500 3,057,292 613,672 3,067,652 4,269,848 41.81% Total Net Income (Loss) ($3,802,666) ($1,684,403) $198,439 ($466,028) ($3,346,638) 11.99% Capital - Direct Labor (19,955) (123,612) Yorba Linda Water District Water Fund For Five Months Ending November 30, 2014 Annual YTD Nov YTD YTD YTD Budget Budget Actual Actual Under(Over) % of Annual FY 2015 FY 2015 FY 2015 FY 2015 FY Budget Budget Revenue (Operating) Water Revenue (Residential) $17,154,552 $7,147,730 $1,312,049 $8,440,387 $8,714,165 49.20% Water Revenue (Commercial & Fire Det.) 2,074,097 864,207 155,225 932,414 1,141,683 44.96% Water Revenue (Landscape /Irrigation) 4,792,995 1,997,081 339,066 2,460,088 2,332,907 51.33% Water Revenue (Service Charge) 4,478,000 1,865,833 421,522 2,055,426 2,422,574 45.90% Other Operating Revenue 670,003 279,168 210,456 535,929 134,074 79.99% Total Operating Revenue: 29,169,647 12,154,020 2,438,318 14,424,244 14,745,403 49.45% Revenue (Non- Operating) Interest 100,000 41,667 17,291 60,520 39,480 60.52% Property Tax 1,283,642 534,851 70,981 126,309 1,157,333 9.84% Other Non - Operating Revenue 521,600 217,333 66,413 255,493 266,107 48.98% Total Non - Operating Revenue: 1,905,242 793,851 154,685 442,322 1,462,920 23.22% Total Revenue 1,852,793 771,997 139,890 745,493 1,107,300 40.24% 31,074,889 12,947,870 2,593,003 14,866,566 16,208,323 47.84% 44.55% Net Income (Loss) Before Capital Contributions 3,015,880 1,256,617 761,684 2,366,246 Expenses (Operating): 78.46% Capital Contributions - - - 50,806 Variable Water Costs (G.W., Import & Power) 14,928,972 6,220,405 927,241 7,230,588 7,698,384 48.43% Salary Related Expenses 7,363,472 3,068,113 531,379 2,789,562 4,573,910 39.48% Supplies & Services: 41.86% Total Net Income (Loss) ($2,976,620) ($1,240,258) $259,902 ($91,422) Communications 273,786 114,078 16,874 100,673 173,113 36.77% Contractual Services 521,451 217,271 34,359 216,117 305,334 41.45% Data Processing 173,752 72,397 5,924 104,810 68,942 60.32% Dues & Memberships 72,321 30,134 22,146 51,787 20,534 71.61% Fees & Permits 169,437 70,599 8,863 61,927 107,510 36.55% Board Election 69,750 29,063 - - 69,750 0.00% Insurance 291,406 121,419 - 261,638 29,768 89.78% Materials 579,369 241,404 46,512 305,532 273,837 52.74% District Activities, Emp Recognition 22,980 9,575 704 4,841 18,139 21.07% Maintenance 394,416 164,340 14,847 220,090 174,326 55.80% Non - Capital Equipment 132,525 55,219 10,045 49,770 82,755 37.56% Office Expense 37,642 15,684 3,657 15,075 22,567 40.05% Professional Services 672,197 280,082 36,482 145,941 526,256 21.71% Training 58,571 24,405 296 12,149 46,422 20.74% Travel & Conferences 42,129 17,554 (157) 9,490 32,639 22.53% Uncollectible Accounts 37,200 15,500 (53) 219 36,981 0.59% Utilities 83,700 34,875 6,546 35,359 48,341 42.24% Vehicle Equipment 281,139 117,141 25,764 139,259 141,880 49.53% Supplies & Services Sub -Total 3,913,772 1,630,738 232,809 1,734,677 2,179,095 44.32% Total Operating Expenses 26,206,216 10,919,257 1,691,429 11,754,827 14,451,389 44.86% Expenses (Non- Operating): Interest on Long Term Debt 1,780,793 741,997 137,140 708,744 1,072,049 39.80% Other Expense 72,000 30,000 2,750 36,749 35,251 51.04% Total Non - Operating Expenses: 1,852,793 771,997 139,890 745,493 1,107,300 40.24% Total Expenses 28,059,009 11,691,254 1,831,319 12,500,320 15,558,689 44.55% Net Income (Loss) Before Capital Contributions 3,015,880 1,256,617 761,684 2,366,246 649,634 78.46% Capital Contributions - - - 50,806 50,806 0.00% Net Income (Loss) Before Depreciation 3,015,880 1,256,617 761,684 2,417,052 700,440 80.14% Depreciation & Amortization 5,992,500 2,496,875 501,782 2,508,474 3,484,026 41.86% Total Net Income (Loss) ($2,976,620) ($1,240,258) $259,902 ($91,422) ($2,885,198) 3.07% Capital - Direct Labor (19,459) (117,396) Revenue (Operating): Sewer Charge Revenue Locke Ranch Assessments Other Operating Revenue Total Operating Revenue: Revenue (Non- Operating): Interest Other Non - Operating Revenue Total Non - Operating Revenue: Total Revenue 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 Yorba Linda Water District Sewer Fund For Five Months Ending November 30, 2014 Annual YTD Nov YTD YTD YTD Budget Budget Actual Actual Under(Over) % of Annual FY 2015 FY 2015 FY 2015 FY 2015 Budget Budget $1,605,292 $668,872 $131,884 $676,339 $928,953 42.13% 201,000 83,750 7,281 7,704 193,296 3.83% 39,249 49,774 20,739 1,755 25,428 24,346 51.09% 5,449 1,856,066 773,361 140,920 709,471 1,146,595 38.22% 1,667 12,000 5,000 1,226 5,581 6,419 46.51% 5,125 11,925 4,969 2,002 7 11,918 0.06% 5,250 23,925 9,969 3,228 5,588 18,337 23.36% 66.10% 1,879,991 783,330 144,148 715,059 1,164,932 38.04% 861,340 358,892 76,779 389,013 472,327 45.89% 21,108 8,795 1,270 6,213 14,895 29.43% 39,249 16,354 2,586 15,233 24,016 38.81% 13,078 5,449 446 5,964 7,114 45.60% 5,744 2,393 1,667 3,898 1,846 67.86% 16,753 6,980 2,931 5,125 11,628 30.59% 5,250 2,188 - - 5,250 0.00% 21,934 9,139 - 14,499 7,435 66.10% 78,756 32,815 1,825 15,462 63,294 19.63% 1,730 721 53 357 1,373 20.64% 136,136 56,723 398 28,332 107,804 20.81% 19,475 8,114 506 21,317 (1,842) 109.46% 2,833 1,180 275 1,126 1,707 39.75% 39,413 16,422 2,492 10,663 28,750 27.05% 6,609 2,754 305 1,947 4,662 29.46% 4,371 1,821 (12) 767 3,604 17.55% 2,800 1,167 (26) 100 2,700 3.57% 7,100 2,958 563 2,996 4,104 42.20% 77,261 32,192 1,662 16,648 60,613 21.55% 499,597 208,165 16,941 150,647 348,950 30.15% 1,360,937 567,057 93,720 539,660 821,277 39.65% 0.00% 0.00% 0.00% 1,360,937 567,057 93,720 539,660 821,277 39.65% Net Income (Loss) Before Capital Contributions 519,054 216,272 50,428 175,399 343,655 33.79% Capital Contributions 19,177 19,177 0.00% Net Income (Loss) Before Depreciation 519,054 216,272 50,428 194,576 362,832 37.49% Depreciation & Amortization 1,345,000 560,417 111,889 559,177 785,823 41.57% Total Net Income (Loss) ($825,946) ($344,144) ($61,461) ($364,601) ($461,345) 44.14% Capital - Direct Labor (496) (6,217) Meeting Date: To: From: Presented By: Prepared By: Subject: SUMMARY: ITEM NO. 4.3 AGENDA REPORT December 17, 2014 Finance - Accounting Committee Delia Lugo, Finance Manager Delia Lugo, Finance Manager Dept: Kelly McCann, Senior Accountant Investment Report for Period Ending November 30, 2014 Finance Staff is submitting the Investment Reports for the Month Ending November 30, 2014 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 November 30, 2014 is 0.60 %. The overall increase in the investment balance from previous month is approximately $1,130,000. A large balance change includes an increase in the Water Operating Reserve fund of $1,292,020, due to a positive net effect between operating revenues and expenses through the reporting month of the fiscal year. With the close of the month, November 30, 2014, and with the intention of investing for greater interest earnings, funds that exceeded applicable payroll and accounts payable obligations were transferred into the Money Market at Bank of the West. Staff took the observed holiday and accounts payable clearing patterns into consideration when determining the month end transfer amount into Bank of the West. As a result, the District's bank statement at Wells Fargo reports a month end balance of $383,649. However, the District's Central Fund general ledger account reflects a balance of ($38,110), due to the posting of all Accounts Payable obligations listed on the November, 26, 2014 check register. 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: Invst Rpt 11- 14.xlsx Investment Report for Period Ending November 30, 2014 Backup Material Invst Agenda Backup - November 2014.xlsx Investment Summary Report - November 2014 Backup Material Yorba Linda Water District Investment Portfolio Report November 30, 2014 Market % Date of Percent Value Par of Total Institution Maturity Yield Checking Account: $ (38,110) $ (38,110) Wells Fargo Bank 96,714 96,714 Pershing $ 58,604 $ 58,604 0.19% Total 0.00% Money Market Accounts: $ 54,979 $ 54,979 46,498 46,498 4,553,698 $ 4,553,698 14.88% Federal Agency Securities Wells Fargo Money Market 0.03% US Bank (Revenue Bonds) 0.03% Bank of the West 0.09% Total 0.09% $ 495,700 $ 500,000 Fannie Mae 05/25/18 1.13% 495,510 500,000 Federal Home Loan Bank 06/12/18 1.00% 500,115 500,000 Fannie Mae 06/12/18 0.84% 496,900 500,000 Federal Home Loan Bank 06/13/18 1.10% 497,155 500,000 Federal Home Loan Bank 06/20/18 1.13% 2,118,574 2,124,676 Federal Home Loan Bank 05/24/17 0.87% $ 4,603,954 $ 4,624,676 15.05% Total 05/14/18 0.96% Certificates of Deposits $ 245,894 $ 248,000 CIT Bank, Salt Lake 05/22/18 1.21% 245,728 248,000 Discover 05/22/18 1.21% 246,294 248,000 Goldman Sachs Bank 05/22/18 1.20% 245,959 248,000 Beal Bank 05/23/18 1.00% 247,440 248,000 Wells Fargo 04/27/18 0.90% 245,096 247,000 Barclays Bank 04/30/18 0.70% 246,559 248,000 State Bank of India 05/14/18 1.15% 247,635 249,000 Webster Bank 05/03/18 0.90% 245,885 248,000 American Express Centurion Bank 05/23/18 1.21% 243,866 248,000 GE Capital Bank 05/24/18 1.11% 249,087 249,000 Merrick Bank 05/24/17 0.74% 248,087 248,000 BMW Bank 05/24/17 0.89% 249,164 249,000 Firstbank Puerto Rico 05/24/16 0.74% 246,871 249,000 Oriental Bank & Trust 05/29/18 1.05% 246,941 249,000 Silvergate Bank 05/30/18 1.00% 246,869 249,000 Enterprise Bank & TR Co Lowell 05/30/18 1.00% 246,854 249,000 Safra National Bank 05/31/18 1.00% 245,875 248,000 Townebank Portsmouth 05/31/18 1.00% 246,871 249,000 Mascoma Savings Bank 05/29/18 1.00% $ 4,686,974 $ 4,719,000 15.32% Total 1.00°/% Pooled Investment Accounts: $ 7,274,484 $ 7,274,484 Local Agency Investment Fund 0.26% 3,076 3,075 Ca1TRUST Short Term 0.42% 9,419,634 9,420,322 Ca1TRUST Medium Term 0.75% $ 16,697,193.45 $ 16,697,881 54.57% 0.54% $ 30,600,424 $ 30,653,860 100% Total Investments 0.60% 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. Kelly D. McCann, Senior Accountant 11/30/14 Investment Summary Report Below is a chart summarizing the yields as well as terms and maturities for the month of November 2014: Average # of Month Portfolio Days to of 2014 Yield Maturity November 0.60% 363 Below is are charts comparing operating fund interest for current and prior fiscal years. Actual Interest Monthly - November Year -to -Date 11/30/2013 11/30/2014 20,716 $ 18,517 57,613 $ 66,101 Budget 2013/2014 2014/2015 Interest Budget, November YTD $ 36,250 $ 46,667 Interest Budget, Annual $ 87,000 $ 112,000 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: October 2014 % Alloc November 2014 % Alloc Fund Description Balance 10/31/2014 Balance 11/30/2014 Water Operating Reserve $ 2,455,202 8.36% $ 3,747,222 12.23% Water Emergency Reserve 1,014,138 3.45% 1,017,491 3.32% Water Capital Project Reserve 17,332,136 59.01% 17,286,075 56.42% Water Reserve for Debt Service 2,731,478 9.30% 2,731,646 8.92% Maintenance Reserve 150,432 0.51% 150,432 0.49% Employee Liability Reserve 200,182 0.68% 200,194 0.65% COP Revenue Bond 2008 - Reserve 2,150,637 7.32% 2,165,072 7.07% Sewer Operating 118,479 0.40% 116,507 0.38% Sewer Emergency Reserve 1,012,264 3.45% 1,014,306 3.31% Sewer Capital Project Reserve 2,205,695 7.51% 2,209,587 7.21% $ 29,370,642 100.00% $ 30,638,534 100.00% Wells Fargo Bank Checking Water Operating 54,370 Sewer Operating 45,548 99,917 (131,058) 92,948 (38,110) Totals $ 29,470,560 $ 30,600,424