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HomeMy WebLinkAbout2009-01-13 - Finance-Accounting Committee Meeting Agenda Packet• Yorba Linda Water District FINANCE - ACCOUNTING COMMITTEE MEETING Tuesday, January 13, 2009, 4:00 p.m. 1717 E. Miraloma Avenue, Placentia - Tel: (714) 701-3020 AGENDA • COMMITTEE Director Michael J. Beverage, Chair Director John W. Summerfield STAFF Ken Vecchiarelli, General Manager Diane Cyganik, Finance Director Sandi Van Etten, Senior Accountant INTRODUCTION OF VISITORS AND 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. ACTION ITEMS This portion of the agenda is for items where staff presentations and committee discussions are needed prior to formal committee action. Yorba Linda Water District Investment Policy Update. Recommendation: That the Finance-Accounting Committee review and recommend to the Board of Director's to adopt Resolution No. 09-XX Setting Forth Public Funds Investment Policy and rescind Resolution No. 05-09. • 2. Monthly Financial Statements for the Period ending October 31, 2008. Recommendation: That the Finance-Accounting Committee review and recommend to the Board of Director that the Monthly Financial Statements for October 31, 2008 be received and filed. 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. 3. Investment Report ending November 30, 2008. 4. Monthly Portfolio Report ending December 31, 2008. Report by Keith Khorey, Wells Capital Management. IGI~A_ 5. Reporting of Significant Event in Connection with the Continuing Disclosure Obligations for the 2003 Certificates of Participation (COP's). • ADJOURNMENT The next regularly scheduled meeting of the Finance-Accounting Committee will be held February 10, 2009 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 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. • is 2 ITEM NO. AGENDA REPORT • Committee Meeting Date: January 13, 2009 To: Finance-Accounting Committee From: Ken Vecchiarelli, General Manager Staff Contact: Diane Cyganik, Finance Director Reviewed by General Counsel: No Budgeted: Funding Source: CEQA Account No: Compliance: N/A Estimated Costs: N/A Total Budget: N/A N/A Job No: N/A Dept: Bus Subject: Resolution to Update the District's Investment Policy SUMMARY: The current investment policy needs to be updated to conform to California Government Code Sections 53600 - 53609. DISCUSSION: The last resolution that set forth public funds investment policy was Resolution No. 05-11. • During the Fiscal Year-ended June 30, 2008 financial audit, it was recommended that the District update its investment policy to specifically refer to money market funds. The District's Wells Capital Management portfolio includes money market funds that do conform to Government Code Section 53601 (1). The attached resolution has been modified to include money market funds as a category available for investing. The resolution was reviewed by Diehl, Evans & Company, LLP, the District's independent auditors, who approved the wording of the new section. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors last modified the District's Investment Policy when Resolution No. 05-11 was adopted on October 27, 2005. STAFF RECOMMENDATION: That the Finance-Accounting Committee recommend to the Board of Directors that they adopt Resolution No. 09-xx Setting Forth Public Funds Investment Policy and rescinding Resolution No. 05-11. RESOLUTION 09-XX • RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT SETTING FORTH PUBLIC FUNDS INVESTMENT POLICY AND RESCINDING RESOLUTION 05-11 WHEREAS, California Government Code (CGC) Section 53600 sets forth guidelines for the investment of public funds and WHEREAS, the current District's Investment Policy was adopted by Resolution No. 05-11 on October 27, 2005; and WHEREAS, the District is in possession of public funds that are not required for immediate expenditure, and are available for investment; and WHEREAS, a policy setting forth guidelines for the investment of said funds is necessary for compliance with the principles of sound financial management; and WHEREAS, the Board of Directors of the Yorba Linda Water District desire to adopt the Investment Policy set forth herein. • NOW, THEREFORE, BE IT RESOLVED by Board of Directors of the Yorba Linda Water District as follows: Section 1: Public funds held for investment by the District may be categorized as follows: a) Those funds that are allocated for immediate expenditure on District operations as authorized by the Board of Directors at their bimonthly meetings; b) Those funds that are allocated for use in an intermediate time frame, such as budgeted purchases, that have not been delivered; c) Those funds that are allocated for future use which do not fall into the above categories. This policy sets forth guidelines for funds that are identified as "available for investment." Section 2: Delegated representative and standards and procedures for the operation of the investment program as follows: a) The authority of the Board of Directors to invest funds is derived from Section 53607 of the CGC. The responsibility to invest, reinvest, sell or exchange securities may be • delegated by Board action to the General Manager or Finance Director for a period of one year. The Board of • Directors may renew the delegation of authority pursuant to state law each year. b) The standard of prudence to be used by the designated representative shall be the "prudent investor" standard and shall be applied in the contest of managing the overall portfolio. The meaning of the standard of prudent investor, means investment, reinvestment, purchasing, acquiring, exchanging, selling or managing public funds shall be made with care, skill, prudence and diligence, under circumstances then prevailing, including but not limited to, the general economic conditions and the anticipated needs of the agency, which a prudent person, acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the District. Section 3: The General Manager or his/her designated representative shall maintain a cash flow analysis for projecting cash available for investments. All funds not required for immediate or intermediate use may be invested in accordance with this policy. The total funds invested at any time pursuant to this policy will constitute the District's "investment portfolio". • Section 4: Priorities regarding the investment of District held public funds are: a) The safety of funds. Safety of principal is the foremost objective of the investment portfolio. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. b) The maintenance of sufficient liquidity to meet all operating requirements that may be reasonably anticipated. Securities should mature concurrent with cash needs to meet anticipated demands. c) The investment portfolio shall be designed with the objective of attaining the best yield or returns on investments, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives. 0 Section 5: The District may invest funds that are available for direct • investment in the following categories: a) Banks or Savings and Loans Cash will be deposited only in Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation (FSLIC) insured institutions or fully collateralized certificates of deposit. Collateral for a given investment must be 110 percent of principal for government securities collateral and 150 percent of principal for first mortgage collateral. The institution must maintain a net worth to asset ratio of at least 3.0 percent, and a positive earnings record. The bank or savings and loan must be located in California. The maximum maturity shall be five years. No limit will be place on the percentage total invested in this category. b) The State Local Agency Investment Fund (LAIF). The amounts deposited in this category are limited to $10 million plus bond proceeds. No limit will be placed on the percentage total in this category. C) Orange County Treasurer's Commingled Investment Pool - • Government Code Section 53684 The amounts deposited in this category are limited to $10 million plus bond proceeds. No limit will be placed on the percentage total in this category. d) California Asset Management Program The amounts deposited in this category shall be limited to bond proceeds and are to be invested for the purpose of arbitrage management only. Proceeds may be invested in the Treasury Portfolio and/or the Money Market Portfolio. No limit will be placed on the percentage total in this category. e) Treasury Bills, Notes and Bonds - Government Code Section 53601(b-d) The District will require physical delivery of these securities to an acceptable safekeeping account in the District's name and must be properly insured. The maximum maturity shall be limited to five years. No limit will be placed on the percentage total invested in this category. 0 D Obligations Issued by Federal Agencies and U.S. • Government Sponsored Enterprises - Government Code Section 53601 (f) The District will require physical delivery of these securities to an acceptable safekeeping account in the District's name and must be properly insured. Examples of these securities include Federal National Mortgage Association, Federal Land Bank and Federal Home Loan Bank. The maximum maturity shall be limited to five years and the maximum investment of 50 percent of the investment portfolio in the aggregate. g) Corporate Bond - Government Code Section 53601(k) The District will require electronic delivery of these securities to an acceptable safekeeping account in the District's name, which must be properly insured. The corporation must be domestic, the notes must be domestic and the notes must be issued in the United States. The corporation must be domestic and the notes must be domestic and the notes must be issued in the United States. The corporation must be rated A or its equivalent or better by a nationally recognized rating service. The maximum maturity is limited to five years and the maximum percentage allowable for • investment is 30 percent of the investment portfolio in the aggregate. h) Banker's Acceptance - Government Code Section 53601(g) The District will require physical delivery of these securities to an acceptable safekeeping account in the District's name and must be properly insured. The maximum term may not exceed 180 days and the maximum percentage allowable for investment is 10 percent of the portfolio in the aggregate. i) Commercial Paper - Government Code Section 53601(h) The District will require physical delivery of these securities to an acceptable safekeeping account in the District's name and must be properly insured. Commercial paper rated the highest ranking or of the highest letter and number ratings as provided for by a nationally recognized statistical-rating organization. The entity that issues the commercial paper shall meet two sets of criteria: (1) The corporation shall be organized and operating within the United States, shall have total assets in excess of five hundred million dollars ($500,000,000), and shall issue debt, other than commercial paper, if any, that is rated A or higher by a nationally recognized statistical-rating organization. (2) The corporation • shall be organized within the United States as a special . purpose corporation, trust, or limited liability company, has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond; has commercial paper that is rated "a-1" or higher, or equivalent by a nationally recognized statistical-rating organization. Eligible commercial paper may not exceed 270 days' maturity and may not represent more than the 25 percent of the investment portfolio in the aggregate. j) Money Market Funds Shares of a qualified money market fund, as defined in CGC Section 6: All investments of sums of less than $100,000 do not require approval of the Board of Directors or need to be collateralized. Such investments, however, must be made in saving institutions covered by federal deposit insurance. Section 7: Investment of sums greater than $100,000 and less than $1,000,000 in a single institution is authorized in institutions that comply with the following parameters: • a) Collateral requirements as set forth in Section 5, (a) herein; b) Institution established as a business in California for a minimum of three years; C) Must show a profit for the most recent two consecutive years; d) A capital ratio of six percent for banks, and five percent for savings & loans; e) No more than three percent foreclosures; 0 Financial rating of "excellent" or "superior". Section 8: All investments greater than $1,000,000 in one institution, with exception of LAIF and Orange County Treasurer's Commingled Investment Pool (OCIP), require approval of the Board of Directors Section 9: When the District uses the services of a broker/dealer to purchase securities, they shall be selected for credit worthiness. These may include "primary" dealers or regional dealers. Each security purchased through a broker/dealer shall be registered in the name of Yorba Linda Water District. No deposit of cash and/or securities shall be made by the broker/dealer except in a qualified public 0 depository as established by state law and Section 3(1) of this resolution. Before a broker/dealer is used, they are subject to • investigation and approval by the General Manager or the designated representative and must submit the following: a) Certification of having read and understood this investment policy resolution and agreeing to comply with the District's investment policy; b) Proof of National Association of Security Dealers certification and state registration; c) Compliance with federal capital adequacy regulations and provide documentation of financial solvency; d) Provide audited financial statements within 120 days of fiscal year end; e) Provide similar services to other public-sector clients. Section 10: Policy on repurchase and reverse repurchase agreements and derivative products: a) The District staff is not authorized to initiate investments in repurchase or reverse repurchase agreements or "plain vanilla OTC" and/or "more complex over the counter (OTC) derivative products," as defined below, however, staff is • authorized to deposit in LAIF provided LAW invests no more than ten percent of their total portfolio in repurchase or reverse repurchase agreements and does not use derivative products defined below. b) A "plain vanilla OTC" derivative product is defined by the U.S. General Accounting Office as a financial instrument whose market value is derived from a reference rate, index, or a value of an underlying asset. OTC derivatives are privately negotiated contracts and are not traded on organized exchanges. c) A "more complex OTC" derivative product is defined by the U.S. General Accounting Office to have at least one of the following characteristics: Their prices tend to be difficult to obtain, because they are often available from only a few dealers; 2. The payments required by the derivative are calculated on the basis of more than one interest, rate, currency, asset or other factor; 0 3. The derivative contract has terms that are not • determined until some future Date; 4. The contract involves a term that acts as a multiplier or increases the leverage of the rate(s) used to compute payments; 5. The contract may entail potentially unlimited risk; Section 11: The General Manager or his designated representative shall submit a monthly investment portfolio report through the Finance - Accounting Committee to the Board of Directors. Additionally, the General Manager or his designated representative shall submit a comprehensive report for Board approval each quarter. This report shall include but not be limited to: a) A list of the previous month's investments; b) Institutions where investments were placed; c) Dates of transactions; d) Dates of maturity; • e) Interest rates on said investments; f) Investment categories' percent of total portfolio. Section 12: Ethics and Conflicts of Interest All officials, staff members and consultants who make or participate in making investment decisions on behalf of the District, will refrain from personal business activity that could conflict with the execution of the investment function or which may impair the ability to make impartial investment decisions. Officials, staff members, and consultants will disclose to the General Manager any financial interests with a financial institution, provider, dealer or broker conducting business with the District. Officials, staff members and consultants will further disclose any personal financial positions that could be related to the performance of the District's portfolios; Section 13: Safekeeping and Custody All cash and securities in the District's Investment portfolio, including those that are being managed - by the delegated representative shall be held in the District's name by a third party bank trust department, acting as agent for the District under the 0 terms of a custody agreement executed by the bank and the • District. All securities will be received and delivered using delivery-versus payment procedures. The District's safekeeping agent will only release payment for a security after the security has been properly delivered. The only exception to the foregoing shall be depository accounts and securities purchases made with (i) local government investment pools, and (ii) money market mutual funds, since the purchased securities are not deliverable. Section 14: Maximum Securities To the extent possible, the District will attempt to match investments with anticipated cash flow requirements. Pursuant to state law, no investment shall have a maturity in excess of five years. That Resolution 05-11 and conflicting minute orders are hereby rescinded immediately upon adoption of this Resolution. PASSED AND ADOPTED this called vote: by the following Ayes: is Noes: Absent: Abstain: Attest: Kenneth R.Vecchiarelli, Secretary Yorba Linda Water District John W. SummerField, President Yorba Linda Water District 0 ITEM NO. AGENDA REPORT • • Committee Meeting Date: January 13, 2009 To: Finance-Accounting Committee From: Ken Vecchiarelli, General Manager Staff Contact: Diane Cyganik, Finance Director Reviewed by General Counsel: N/A Budgeted: Funding Source: CEQA Account No: Compliance: N/A Estimated Costs: N/A Total Budget: All Funds Job No: Dept: Bus Subject: Financial Statements for the fourth month of fiscal year 2008-09 ending October 31, 2008. SUMMARY: A presentation will be made of the Financial Statements for month ending October 31, 2008. DISCUSSION: The Water Fund had an operating loss of $1,865,058 for month ending October 31, 2008. The key factors are outlined below: Yorba Linda Water District Monthly Financial Statement Analysis - Water Operating Fund For the Month Ending October 31, 2008 • October Y-T-D Y-T-D Budget 2008 Budget Budget Description FY 2008/09 Actual Y-T-D Remaining Remaining Total Water Sales $ 17,498,010 $ 7,082,254 $ (10,415,756) -60% Total Variable Water Costs $ 11,156,500 $ 5,016,903 $ 6,139,597 55% Personnel Costs $ 7,389,200 $ 1,589,450 $ 5,799,750 78% Supplies & Services $ 3,773,100 $ 1,280,060 $ 2,493,040 66% The Water Operating Fund reflects water sales greater than anticipated due to the water rate increase that was not included in the budget. Though the sales are higher, water consumption is 7% less than the same month last year. The variable water costs are 12% higher than budget because of rate increases from MWDOC and OCWD plus higher energy costs. Personnel costs are lower than anticipated due to budgeted positions that have not been filled. The last payroll of October is not included in the above figures. Due to outsourcing payroll to ADP, the journal to post payroll entries to the General Ledger is still being developed, so no ADP payroll entries have been posted. If PR22 had been posted, the remaining budget for personnel costs would be 75% instead of 78%. The operating loss would increase to about $2,087,050. Supplies and Services are on target through October. The Sewer Fund had an operating loss of $91,154 for month ending October 31, 2008. The key factors are outlined below: • Yorba Linda Water District Monthly Financial Statement Analysis - Sewer Operating Fund For the Month Ending October 31, 2008 October Y-T-D Y-T-D Budget 2008 Budget Budget Description FY 2008/09 Actual Y-T-D Remaining Remaining Sewer Maintenance Charges $ 1,249,850 $ 395,291 $ (854,559) -68% Personnel Costs $ 730,800 $ 183,166 $ 547,634 75% Supplies & Services $ 339,600 $ 124,472 $ 215,128 63% The Sewer Maintenance Charges are on target compared to what was budgeted. Personnel costs are slightly lower than anticipated due to existing vacant positions in the Water Fund. Personnel costs are impacted by the Water Fund positions due to allocating 9% of water overhead expenses to the Sewer Fund. As noted in the water fund analysis, sewer also is missing the last payroll of October in the General Ledger. Once the ADP payroll journal is finalized, the entries will be posted. If PR22 were included in the above figures, the remaining YTD budget for personnel costs would be reduced to 73% - a 6% variance from budget. The operating loss would increase to $103,550. The Supplies & Services are 4% higher than budget, again attributable to contractual services for trenchless sewer lining of $15,750. • PRIOR RELEVANT BOARD ACTION(S): The Board of Directors reviews each quarter's financial statements. The financial statements for the quarter ended September 30, 2008 were received and filed on December 23, 2008. STAFF RECOMMENDATION: That the Committee recommend the Board of Directors receive and file the financial statements for the fourth month of fiscal year 2008-09 ending October 31, 2008. • 6,441.30 FUND -96 0.00 • 0.00 Schedule of Combined Revenue 12,569.43 <2,369.43> -23 13,490.00 19,010.73 10 -31 -08 -41 0.00 0.00 0.00 ANNUAL CURR YR VARIANCE VAR -100 0.00 BUDGET Y -T -D Y -T -D o 0.00 OPERATING REVENUE -100 0.00 0.00 0.00 -100 WATER SALES 0.00 0.00 -100 75,000.00 61,324.00 Residential Water 12,983,902.00 5,962,374.91 7,021,527.09 54 62 Combined Demand 7,158.00 2,949.89 4,208.11 59 4,556.16 Commercial 1,191,790.00 526,447.34 665,342.66 56 59 Fire Detector 150,000.00 39,906.26 110,093.74 73 Landscape Water 2,700,850.00 1,520,183.30 1,180,666.70 44 Irrigation 45,600.00 31,761.60 13,838.40 30 Other Water Sales 418,710.00 181,528.37 237,181.63 57 To: "Restricted for-Debt Serv" 0.00 <1,182,897.82> 1,182,897.82 -100 Total 17,498,010.00 7,082,253.85 10,415,756.15 60 OTHER Damages /Relocation Miscellaneous Billing Other Total SEWER MAINTENANCE CHARGES Sewer Rate Charge City Maintenance Charge Maintenance Assesement F.O.G. fees Collection Fees - Placentia Total CUSTOMER SERVICE CHARGES Customer Service Charges Back Flow Charges Total Rents & Royalties Total Operating Revenue 3,290.00 6,441.30 <3,151.30> -96 0.00 0.00 0.00 -100 10,200.00 12,569.43 <2,369.43> -23 13,490.00 19,010.73 <5,520.73> -41 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 75,000.00 61,324.00 13,676.00 18 49,600.00 18,765.62 30,834.38 62 124,600.00 80,089.62 44,510.38 36 99,100.00 4,556.16 94,543.84 95 17,735,200.00 7,185,910.36 10,549,289.64 59 • FUND • Schedule of Combined Revenue 10 -31 -08 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D % NON - OPERATING REVENUE Taxes & Assesements 1,200,150.00 54,576.70 1,145,573.30 95 Interest 47,500.00 187,636.53 <140,136.53> -295 Other Revenue 449,200.00 254,829.55 194,370.45 43 Rev Restricted for Debt Sery 0.00 1,182,897.82 <1,182,897.82> -100 Total 1,696,850.00 1,679,940.60 16,909.40 1 TOTAL REVENUE 19,432,050.00 8,865,850.96 10,566,199.04 54 RUN DATE /TIME: 09:06:26 30 Dec 2008 REPORT ID: comrev07 • 0.00 FUND* -100 0.00 • <44.00> Schedule of Combined Revenue 0.00 0.00 -100 0.00 10 -31 -08 <44.00> -100 1,141,650.00 393,385.26 ANNUAL CURR YR VARIANCE VAR 0.00 -100 BUDGET Y -T -D Y -T -D 99 0.00 OPERATING REVENUE 0.00 -100 3,300.00 11000.00 2,300.00 WATER SALES 1,249,850.00 395,246.78 854,603.22 68 0.00 Residential Water 0.00 0.00 0.00 -100 0.00 Combined Demand 0.00 0.00 0.00 -100 0.00 Commercial 0.00 0.00 0.00 -100 854,559.22 Fire Detector 0.00 0.00 0.00 -100 Landscape Water 0.00 0.00 0.00 -100 Irrigation 0.00 0.00 0.00 -100 Other Water Sales 0.00 0.00 0.00 -100 To: "Restricted for Debt Serv" 0.00 0.00 0.00 -100 Total 0.00 0.00 0.00 -100 OTHER Damages /Relocation Miscellaneous Billing Other Total SEWER MAINTENANCE CHARGES Sewer Rate Charge City Maintenance Charge Maintenance Assesement F.O.G. fees Collection Fees - Placentia Total CUSTOMER SERVICE CHARGES Customer Service Charges Back Flow Charges Total Rents & Royalties Total Operating Revenue 0.00 0.00 0.00 -100 0.00 44.00 <44.00> -100 0.00 0.00 0.00 -100 0.00 44.00 <44.00> -100 1,141,650.00 393,385.26 748,264.74 66 0.00 0.00 0.00 -100 104,900.00 861.52 104,038.48 99 0.00 0.00 0.00 -100 3,300.00 11000.00 2,300.00 70 1,249,850.00 395,246.78 854,603.22 68 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 1,249,850.00 395,290.78 854,559.22 68 • FUND • Schedule of Combined Revenue 10 -31 -08 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D NON - OPERATING REVENUE - ----------------------------------- - ----- Taxes & Assesements 66,000.00 0.00 66,000.00 100 Interest 17,000.00 4,272.92 12,727.08 75 Other Revenue 5,000.00 4,800.28 199.72 4 Rev Restricted for Debt Sery 0.00 0.00 0.00 -100 Total 88,000.00 9,073.20 78,926.80 90 TOTAL REVENUE 1,337,850.00 404,363.98 933,486.02 70 RUN DATE /TIME: 09:06:26 30 Dec 2008 REPORT ID: comrev07 • FUND • Schedule of Combined Expenses 10 -31 -08 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D % PERSONNEL SERVICES Salaries Unit 3,330,350.00 750,109.46 2,580,240.54 77 Salaries SC 1,051,509.00 185,701.88 865,807.12 82 Salaries Management 713,116.00 177,277.99 535,838.01 75 Salaries Other 0.00 0.00 0.00 -100 Fees Directors 56,183.00 9,878.77 46,304.23 82 Fringe Benefits Unit 1,512,348.00 308,762.76 1,203,585.24 80 Fringe Benefits SC 346,877.00 64,953.13 281,923.87 81 Fringe Benefits Management 209,170.00 48,697.59 160,472.41 77 Fringe Benefits Directors 27,004.00 7,349.73 19,654.27 73 Fringe Benefits Other 142,643.00 36,718.41 105,924.59 74 Total Personnel Services 7,389,200.00 1,589,449.72 5,799,750.28 78 Depreciation 0.00 1,164,555.07 <1,164,555.07> -100 Total Depreciation 0.00 1,164,555.07 <1,164,555.07> -100 SUPPLIES & SERVICES AMP Lease 0.00 0.00 0.00 -100 Communications 251,690.00 90,824.60 160,865.40 64 Contractual Services 807,159.00 206,047.78 601,111.22 74 Data Services 282,417.00 29,221.86 253,195.14 90 Dues & Memberships 31,585.00 1,893.89 29,691.11 94 Election Expense 39,999.00 0.00 39,999.00 100 Fees & Permits 44,617.00 12,401.76 32,215.24 72 Insurance 303,940.00 222,034.04 81,905.96 27 Legal /Settlement Agreements 0.00 0.00 0.00 -100 Maintenance 618,281.00 353,182.67 265,098.33 43 Non Capitol Equipment 209,945.00 39,545.18 170,399.82 81 Office Expense 60,672.00 13,842.54 46,829.46 77 Rental Lease 0.00 0.00 0.00 -100 Professional Services 622,021.00 132,193.91 489,827.09 79 Training 87,643.00 7,273.18 80,369.82 92 Travel & Conferences 59,343.00 6,892.98 52,450.02 88 Uncollectible Accounts 19,499.00 0.00 19,499.00 100 Collection Agency Fee 11000.00 0.00 1,000.00 100 Utilities 63,920.00 10,471.07 53,448.93 84 Vehicle 269,369.00 154,234.47 115,134.53 43 Job Closing Expenses 0.00 0.00 0.00 -100 Unbudgeted Expenses 0.00 0.00 0.00 -100 • FUND • Schedule of Combined Expenses 10 -31 -08 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D % Total Services & supplies 3,773,100.00 1,280,059.93 2,493,040.07 66 --------------- - -- VARIABLE WATER COSTS Fuel & Power Pumping 1,350,000.00 711,216.62 638,783.38 47 Ground Water Replenishment 3,706,500.00 1,517,505.62 2,188,994.38 59 Purchased Water 6,100,000.00 2,667,557.35 3,432,442.65 56 Readiness /Connection Charge 0.00 120,623.56 <120,623.56> -100 Total Variable Water Costs 11,156,500.00 5,016,903.15 6,139,596.85 55 TOTAL OPERATING EXPENSE 22,318,800.00 9,050,967.87 13,267,832.13 59 NON - OPERATING EXPENSE Other Expense 0.00 57,790.52 <57,790.52> -100 955 Security Vulnerability 0.00 0.00 0.00 -100 Interest Exp on Long -term Debt 0.00 737,313.38 <737,313.38> -100 Total Non - operating Expense 0.00 795,103.90 <795,103.90> -100 Total Expenses 22,318,800.00 9,846,071.77 12,472,728.23 56 RUN DATE /TIME: 08:40:16 30 Dec 2008 REPORT ID: comexp07 FUND • Schedule of Combined Expenses 10 -31 -08 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D % PERSONNEL SERVICES Salaries Unit 329,376.00 87,152.30 242,223.70 74 Salaries SC 103,997.00 21,639.91 82,357.09 79 Salaries Management 70,525.00 20,203.47 50,321.53 71 Salaries Other 0.00 0.00 0.00 -100 Fees Directors 5,557.00 924.58 4,632.42 83 Fringe Benefits Unit 149,573.00 36,017.42 113,555.58 76 Fringe Benefits SC 34,311.00 8,416.85 25,894.15 75 Fringe Benefits Management 20,688.00 5,158.52 15,529.48 75 Fringe Benefits Directors 2,670.00 726.90 1,943.10 73 Fringe Benefits Other 14,103.00 2,926.24 11,176.76 79 Total Personnel Services 730,800.00 183,166.19 547,633.81 75 Depreciation 0.00 178,807.40 <178,807.40> -100 Total Depreciation 0.00 178,807.40 <178,807.40> -100 SUPPLIES & SERVICES AMP Lease 0.00 0.00 0.00 -100 Communications 22,545.00 7,563.61 14,981.39 66 Contractual Services 72,676.00 44,929.38 27,746.62 38 Data Services 25,427.00 960.44 24,466.56 96 Dues & Memberships 2,845.00 132.02 2,712.98 95 Election Expense 3,601.00 0.00 3,601.00 100 Fees & Permits 4,019.00 1,642.01 2,376.99 59 Insurance 27,365.00 21,959.41 5,405.59 20 Legal /Settlement Agreements 0.00 0.00 0.00 -100 Maintenance 55,669.00 15,771.22 39,897.78 72 Non Capitol Equipment 18,900.00 2,100.74 16,799.26 89 Office Expense 5,463.00 1,369.05 4,093.95 75 Rental Lease 0.00 0.00 0.00 -100 Professional Services 56,004.00 13,241.05 42,762.95 76 Training 7,892.00 953.98 6,938.02 88 Travel & Conferences 5,342.00 405.53 4,936.47 92 Uncollectible Accounts 1,756.00 0.00 1,756.00 100 Collection Agency Fee 90.00 0.00 90.00 100 Utilities 5,755.00 82.44 5,672.56 99 Vehicle 24,251.00 13,360.79 10,890.21 45 Job Closing Expenses 0.00 0.00 0.00 -100 Unbudgeted Expenses 0.00 0.00 0.00 -100 • FUND • Schedule of Combined Expenses 10 -31 -08 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D % Total Services & supplies 339,600.00 124,471.67 ----------------------------- 215,128.33 63 ----------------- VARIABLE WATER COSTS Fuel & Power Pumping 0.00 0.00 0.00 -100 Ground Water Replenishment 0.00 0.00 0.00 -100 Purchased Water 0.00 0.00 0.00 -100 Readiness /Connection Charge 0.00 0.00 0.00 -100 Total Variable Water Costs 0.00 0.00 0.00 -100 TOTAL OPERATING EXPENSE 1,070,400.00 486,445.26 583,954.74 55 NON- OPERATING EXPENSE Other Expense 0.00 523.48 <523.48> -100 955 Security Vulnerability 0.00 0.00 0.00 -100 Interest Exp on Long -term Debt 0.00 0.00 0.00 -100 Total Non - operating Expense 0.00 523.48 <523.48> -100 Total Expenses 1,070,400.00 486,968.74 583,431.26 55 RUN DATE /TIME: 09:04:55 30 Dec 2008 REPORT ID: comexp07 • FUND • 53 Schedule of Revenue & Expense 0.00 0.00 10 -31 -08 355,000.00 150,715.10 ANNUAL CURR YR VARIANCE VAR 58 45,600.00 BUDGET Y -T -D Y -T -D % 13,838.40 Operating Revenues: Metered water sales Sewer maintenance charges Construction water sales Irrigation sales Other Customer service fees Rents and royalties Outside District water sales Unmetered water sales To: "Restricted for Debt Serv" Total Operating Revenues Operating Expenses: Variable water costs Personnel services Depreciation Supplies and services Total Operating Expenses Operating (Loss) 17,040,410.00 8,062,611.70 8,977,798.30 53 0.00 0.00 0.00 -100 355,000.00 150,715.10 204,284.90 58 45,600.00 31,761.60 13,838.40 30 13,490.00 19,010.73 <5,520.73> -41 124,600.00 80,089.62 44,510.38 36 99,100.00 4,556.16 94,543.84 95 50,000.00 16,522.87 33,477.13 67 7,000.00 3,540.40 3,459.60 49 0.00 <1,182,897.82> 1,182,897.82 -100 17,735,200.00 7,185,910.36 10,549,289.64 59 11,156,500.00 5,016,903.15 6,139,596.85 55 7,389,200.00 1,589,449.72 5,799,750.28 78 0.00 1,164,555.07 <1,164,555.07> -100 3,773,100.00 1,280,059.93 2,493,040.07 66 22,318,800.00 9,050,967.87 13,267,832.13 59 <4,583,600.00> <1,865,057.51> <2,718,542.49> 59 • FUND* • Schedule of Revenue & Expense 10 -31 -08 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D $ Nonoperating Revenues: Property taxes - debt service 0.00 0.00 0.00 -100 Property taxes - operations 1,200,150.00 54,576.70 1,145,573.30 95 Interest income 47,500.00 187,636.53 <140,136.53> -295 Other revenue 449,200.00 254,829.55 194,370.45 43 Rev Restricted for Debt Sery 0.00 1,182,897.82 <1,182,897.82> -100 Total Nonoperating Revenues 1,696,850.00 1,679,940.60 16,909.40 1 Nonoperating expenses: Interest expense 0.00 737,313.38 <737,313.38> -100 Security Vulnerability Exp 0.00 0.00 0.00 -100 Other expense 0.00 57,790.52 <57,790.52> -100 Total Nonoperating Expenses 0.00 795,103.90 <795,103.90> -100 Income (Loss) before Capital Contributions <2,886,750.00> <980,220.81> <1,906,529.19> 66 Capital Contributions 667,100.00 259,295.77 407,804.23 61 Change in Net Assets: <2,219,650.00> <720,925.04> 407,804.23 68 RUN DATE /TIME: 09:06:40 30 Dec 2008 REPORT ID: revexp07 • FUA • Schedule of Revenue & Expense 10 -31 -08 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D o Operating Revenues: Metered water sales Sewer maintenance charges Construction water sales Irrigation sales Other Customer service fees Rents and royalties Outside District water sales Unmetered water sales To: "Restricted for Debt Serv" Total Operating Revenues Operating Expenses: Variable water costs Personnel services. Depreciation Supplies and services Total Operating Expenses Operating (Loss) 0.00 0.00 0.00 -100 1,246,550.00 394,246.78 852,303.22 68 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 3,300.00 1,044.00 2,256.00 68 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 1,249,850.00 395,290.78 854,559.22 68 0.00 0.00 0.00 -100 730,800.00 183,166.19 547,633.81 75 0.00 178,807.40 <178,807.40> -100 339,600.00 124,471.67 215,128.33 63 1,070,400.00 486,445.26 583,954.74 55 179,450.00 <91,154.48> 270,604.48 150 • FUNO • Schedule of Revenue & Expense 10 -31 -08 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D $ Nonoperating Revenues: Property taxes - debt service 0.00 0.00 0.00 -100 Property taxes - operations 66,000.00 0.00 66,000.00 100 Interest income 17,000.00 4,272.92 12,727.08 75 Other revenue 5,000.00 4,800.28 199.72 4 Rev Restricted for Debt Sery 0.00 0.00 0.00 -100 Total Nonoperating Revenues 88,000.00 9,073.20 78,926.80 90 Nonoperating expenses: Interest expense 0.00 0.00 0.00 -100 Security Vulnerability Exp 0.00 0.00 0.00 -100 Other expense 0.00 523.48 <523.48> -100 Total Nonoperating Expenses 0.00 523.48 <523.48> -100 Income (Loss) before Capital Contributions 267,450.00 <82,604.76> 350,054.76 130 Capital Contributions 251,000.00 204,025.00 46,975.00 19 Change in Net Assets: 518,450.00 121,420.24 46,975.00 77 RUN DATE /TIME: 09:06:40 30 Dec 2008 REPORT ID: revexp07 ITEM NO. AGENDA REPORT • Meeting Date: January 13, 2009 To: Finance-Accounting Committee From: Ken Vecchiarelli, General Manager Staff Contact: Diane Cyganik, Finance Director Sandi Van Etten, Senior Accountant Reviewed by General Counsel: N/A Budgeted: N/A Funding Source: N/A CEQA Account No: Compliance: N/A Estimated Costs: N/A Subject: Investment Report for November 2008 Total Budget: N/A Job No: Dept: Bus SUMMARY: Government Code Section 53607, et, seq., requires the person delegated to invest funds to make a quarterly report of the investments to the legislative body. DISCUSSION: I am submitting the November 2008 monthly investment report for your information. I will submit • a formal report of the investments for Board action for the quarter ending December 31, 2008 upon approval of the Investment Report. Below is a chart summarizing the yields as well as terms and maturities for the month of November 2008: Avg. Avg. Portfolio Portfolio # of Avg. Term Month Yield Without Yield With Days to of Portfolio in of 2008 Wells Capital Wells Capital Maturity Days November 1.16% 1.52% 70 22 Below is a chart comparing operating fund interest for current and prior fiscal years: Actual Interest 11/30/07 11/30/08 Monthly, Operating Fund $ 2,201 $ 794 Year-to-Date, Operating Fund $19,994 $ 3,859 Budqet 200712008 2008/2009 Interest Budget, Operating Fund, November YTD $35,833 $26,875 • Interest Budget, Operating Fund, annual $86,000 $64,500 Interest earned on investments is recorded in the Fund that owns the investment. Investment Summary Comparison U • The distribution of investments in the portfolio both in dollars and as a percentage of the total portfolio by funds is as follows: Fund Description Balance 11/30/08 Annexation $9,493,598 18.79% Water Operating (3,411,630) -6.75% Water R&R 2,036,045 4.03% Water-Capital Projects 149,500 0.30% Restrict-Debt Service 895,067 1.77% COP Bond 2003 0 0.00% COP Bond 2008 25,593,694 50.65% Sewer Operating 1,396,633 2.76% Sewer R&R 245,871 0.49% Sewer Capital Projects 187,557 0.37% ID1 4,329,301 8.57% ID2 9,613,277 19.02% $50.528.912 100.00% There are three payrolls that are not posted as of November 30, 2008. The ADP journal entry is still being finalized. If the payrolls had been posted, the water operating cash would be approximately ($4,072,200), (8.2%) of the total; and sewer operating cash would be around $1,360,600. PRIOR RELEVANT BOARD ACTION(S): These reports are presented to the Finance-Accounting Committee on a regular basis. Quarterly Investment Reports are presented to the Board of Directors. The Investment Report for the quarter ending September 30, 2008 was received and filed by the Board of Directors on November 26, 2008. STAFF RECOMMENDATION: That the Finance-Accounting Committee receive and file the report. 0 • Market Value Cost Cash & Checking Accounts: $ 1,636,008 $ 1,636,008 1,200 1,200 $ 1,637,208 $ 1,637,208 Yorba Linda Water District Investment Portfolio Report November 30, 2008 of Total Institution Wells Fargo Bank Imprest Cash 3.24% Total Percent Investment Maturity Yield Date Date 0.00% N/A Money Market Accounts: $ 113,855 $ 113,855 Wells Fargo Money Market 0.35% N/A 64,346 64,346 Wells Fargo MM/Annexation 0.35% $ 178,201 $ 178,201 0.35% Total 0.35% $ 1,815,409 $ 1,815,409 3.60% Sub-total 0.03% California Asset Mgmt. Program: $ 6,652,110 $ 6,652,110 13.18% California Asset Mgmt. Program 2.32% N/A Money Market Account: 25,593,694 $ 25,593,694 US Bank 2008 Revenue Bond 0.94% 0 0 US Bank 2003 Revenue Bond 0.00% N/A $ 25,593,694 $ 25,593,694 50.71% 0.94% $ 34,061,213 $ 34,061,213 67.49% Sub Total Investments 1.16% Individual Management Account: $ 16,467,699 $ 16,405,642 32.51% Wells Capital Management 2.25% N/A $ 50,528,912 $ 50,466,855 100% Total Investments 1.52% 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. "Ck Vag 64624t Sandi Van Etten, Senior Accountant 11/30/2008 U • Account Overview Yorba Linda Water District Account #18611500 Funding Date: Portfolio Statistics as of: Account Characteristics: Portfolio Yield to Maturity Total Unrealized Gains/(Losses) - Current: ~ 40 Total Net Realized Gains/(Losses) - Since Inception: Total Long-Term Investments: Total Short Duration Investments/Money Market Secs: Total Market Value: Total Number of Issues in the Portfolio: MARKET DATA Overnight Fed Funds Rate: 6-Month T-Bill Yield: 12-Month T-Note Yield: 10 ITEM NO. `1 10/25/2005 12/31/2008 1.76% 70,689 496 17,666,434 17,666,434 12 0.00% 0.31% 0.50% WELLS CAPITAL MANAGEMENT Portf umlmary Report Yorba• Water District For the period : 12/01/08 to 12/31/08 18611500 Portfolio Characteristics Portfolio Breakdown Market Value: 17,666,434.10 Market Value % of Account Unrealized G /L: 70,689.24 Agency Discount Note 6,487,490.00 36.72% Commercial Paper 649,070.74 3.67% Yield To Maturity: 1.76% Discount 447,900.00 2.54% Portfolio Duration: 0.20 Years Money Market Fund 10,081,973.26 57.07% Pending_Cash 0.10 0.00% Avg. Days to Maturity: 71 Total 17,666,434.10 100.00% Avg. Portfolio Credit Quality: Aaa Market Data 12/31/08 11/30/08 Yields: 6 Month Treasury Bill: 0.26% 0.42% 2 Year Treasury Note: 0.76% 0.98% 5 Year Treasury Note: 1.55% 1.91% Fed Funds Target: 0-0.25% 1.00% Credit Quality* Effective Maturity Distribution 0.60 - -- - -- -- — P1 /MIG1/VMIG1 /A -1 6.2% Aaa /AAA 36.7% Aa/AA 0.0% A/A 0.0% 0.40 Baa/BBB 0.0% Other 0.0% 0.30 - -- -- - Cash/Ovemights 57.1% Not Rated 0.0% 100.0% 0.10 - - - — - - - ' Moody's Ratings - Primary S &P Ratings - Secondary Fitch Ratings - Tertiary 0.00 o/n 2 to 90 91 to 160 181 to 1 year 1 to 2 years 2 years The above information is an estimate of certain investment calculations and does not represent your audited statement of record. YORBA LINDA WATER DISTRICT Statement of Cash Flows/Earnings for December 2008 • 008 I - Beginning Period Balances As of 11/30/2 Total Original Cost 16,369,409 + Net Amort/Accr to Date 36,232 =Adjusted Book Value: 16,405,642 + Accrued Interest Receivable 14,937 + Unrealized Gain/(Loss) 47,120 = Total Market Value Plus Accrued Interest 16,467,699 II: Period Income Earned + Ending Accrual 10,635 - Begininning Accrual (14,937) + Interest Received 14,937 - Interest Paid at Purchase - + Interest Received at Sale - = Interest Earned in Period 10,6351 + (Amort)/Accr This Period 16,618 = Monthly Portfolio Income I $ 27,2531 + Contributions 1,200,000 • - Withdrawals i / L + R li d G (38,719) n ( oss) ea ze a - Fees Paid This Period (2,733) - Prior Period Unrealized Gain/Loss 47,120 + End Of Period Unrealized Gain/Loss 70,689 + Net Receipts/Deliveries in Kind 0.00 + Adjustments 0.00 = Net Change to the Portfolio 1,198,7351 =Total Market Value Plus Accrued Interest 17,677,069 III: End of Period Balances As of 12/31/2008 Total Original Cost 17,546,472 + Net Amort/Accr to Date 49,273 = Adjusted Book Value 17,595,745 + Accrued Interest Receivable 10,635 + Unrealized Gain/(Loss) 70,689 = Total Market Value Plus Accrued Interest 17,677,069 • Reconciliation Difference: - Wells Capital Management Holdin0port • Securities Held as of 12/31/08 on a Trade Date Basis Identifier Credit Ratings Par Value Security Description Coupon Final Effective 0 0.00 0 0 Matunty Maturity Moody's S &P Fitch 99.809 449,142 449,142 2.54% 2.55% I. Cash & Cash Equivalents (Original maturity of 90 days or less) 10,092,577 57.07% 1.11% Cash 10,531,115 10,541,750 69.61% 1.17% U.S. DOLLARS (0) PENDING CASH 3-02% 128 0.35 99.910 (0) 699,370 3.96% 2.98% Money Mkt Securities 0.38 99.900 999,000 999,000 Agency Discount Note 1.75% 149 0.41 99.900 Commercial Paper 999,000 5.65% 2.91% 23 03663TQ50 P -1 A -1+ NR 450,000 ANTALIS US FNDG CORP 0.000 03/05/09 03/05/09 Money Market Fund 171 0.47 7,135,319 VP7000038 NR NR NR 10,081,973 WF ADV MONEY MKT TR #645 1.113 171 01/01/09 Cash & Cash Equivalents Total: 10,531,973 7,135,319 40.39% 2.61% II. Marketable Securities (Original maturity greater than 90 days) 0.20 17,666,434 IIA: Short Tenn Securities (Remaining maturity of less than 365 days) 100.00% 1.76% Gov't Guaranteed - CP 36161CSM5 P -1 A -1+ NR 450,000 GE CAPITAL TLGP 0.000 05121/09 05/21/09 Corporate Securities Corporate Obligation Floating Rate Govt Securities Gov Agncy Obligation Money Mkt Securities Agency Discount Note 313313MR6 AGY AGY AGY 1,000,000 FFCB 0.000 10/07/09 10/07/09 313385EP7 AGY AGY AGY 1,000,000 FHLB 0.000 04/20/09 04/20/09 313385JB3 AGY AGY AGY 800,000 FHLB 0.000 07113/09 07/13/09 313385KS4 AGY AGY AGY 1,000,000 FHLB 0.000 08/21109 08121/09 313589FH1 AGY AGY AGY 700,000 FNMA 0.000 05/08109 05/08/09 313589FVO AGY AGY AGY 1,000,000 FNMA 0.000 05/20109 05/20/09 313589GE7 AGY AGY AGY 1,000.000 FNMA 0.000 05129/09 05/29/09 Commercial Paper 6323AONP9 P -1 A -1 NR 200.000 NATEXIS BANQUES POP USF CP! 0.000 01123/09 01/23109 Short Tenn Securities Total: 7,150,000 IIB: Long -Term Securities (Remaining maturity greater than 365 days) Corporate Securities Marketable Securities Total: 7,150,000 Portfolio Total: 17,681,973 Days to Eff Maturity Yorba Lin•ater District 18611500 Duration Market Price Market Market Value Holdings as YTM at Value t Accrued Percentage of Purchase Interest Account or Reset 141 0.38 99.533 447,900 447.900 2.54% 1.94 280 (0) (0) 0.00% 0.00% 0 0.00 0 0 0.00% 0.00% 64 0.17 99.809 449,142 449,142 2.54% 2.55% 1 0.00 100.000 10,081,973 10,092,577 57.07% 1.11% 4 0.01 10,531,115 10,541,750 69.61% 1.17% 141 0.38 99.533 447,900 447.900 2.54% 1.94 280 0.76 99.540 995,400 995,400 5.63% 2.00% 110 0.30 99.960 999,600 999,600 5.66% 3.04% 194 0.53 99.790 798,320 798,320 4.52% 2.99% 233 0.64 99.680 996,800 996,800 5.64% 3-02% 128 0.35 99.910 699,370 699,370 3.96% 2.98% 140 0.38 99.900 999,000 999,000 5.65% 1.75% 149 0.41 99.900 999,000 999,000 5.65% 2.91% 23 0.06 99.965 199,929 199,929 1.13% 3.08% 171 0.47 7,135,319 7,135,319 40.39% 2.61% 171 0.47 7,135,319 7,135,319 40.39% 2.61% 71 0.20 17,666,434 17,677,069 100.00% 1.76% The above information is an estimate of certain investment calculations and does not represent your audited statement of record. Page: 1 of 1 DisclosureUSA.org 'ilPi~ld~l1 Hide CUSIPS DisclosureUSA Filing Summary Information • Filing Filing Date: YORBA LINDA CALIF Issue Date 2003-09-10 98618MAF6 98618MAG4 98618MAM1 98618MAN9 98618MAT6 98618MAU3 Account Make A Filing Find a Filing Comments Help Muni Council NRMSIR-SID 20090105060864 1/5/2009 11:00:58 AM WTR DIST REV CTFS PARTN Bond Title HIGHLAND RESERVOIR RENOVATION CUSIPS 98618MAH2 98618MA38 98618MAK5 98618MAL3 98618MAP4 98618MAQ2 98618MARO 98618MAS8 98618MAV1 98618MAW9 98618MAX7 Doc Type Doc Date File Name File Doc Title Size 11. Rating 12/31/2008 2003 Significant Event 663927 Reporting of changes 123108.pdf Significant Event Contact Information Name: Joshua Lentz Employer: Applied Best Practices, LLC Addressl: 19900 MacArthur Boulevard Address2: Suite 1100 City, State, Irvine, CA 92612 Zip: Phone: 949-660-7320 Email: jlentz@fieldman.com Filer type: Other Print FriendlyPage Distribution Status DlsclosureUSA.org - Copyright © 2003-2007 - Municipal Advisory Council of Texas B2 • http ://www.diselosureusa. org/pages/FilingSummary. aspx?filingID=270692 Page 1 of 1 ITEM NO. DisclosureUSA.org our Account Make A Filing Find a Filing Comments Help Muni Council NRMSIR-SID Joshua Lentz Logout Filing Date & Time: 01/05/2009 11:00 AM NRMSIR / SID Forwarded to NRMSIRs / SIDS (CST) DPCData 101/05/2009 11:01 AM FT Interactive 101/05/2009 11:01 AM Standard & Poor's 101/05/2009 11:01 AM Bloomberg 101/05/2009 11:01 AM DisclosureUSA.org - Copyright © 2003-2007 - Municipal Advisory Council of Texas 01 • • Page I of 1 http://www.disclosureusa.org/pages/DistributionStatus.aspx?filingid=270692 1/5/2009 Find A Filing - Material Event Filing# 20090105060864 Distribution Status • REPORTING OF SIGNIFICANT EVENT IN CONNECTION WITH THE CONTINUING DISCLOSURE OBLIGATIONS: $10,645,000 YORBA LINDA WATER DISTRICT REVENUE CERTIFICATES OF PARTICIPATION • (HIGHLAND RESERVOIR RENOVATION AND RICHFIELD PLANT - PHASE 3 RENOVATION PROJECT) SERIES 2003 YORBA LINDA WATER DISTRICT P.O. Box 309 Yorba Linda, California 92885-0309 0 $10,645,000 • YORBA LINDA WATER DISTRICT REVENUE CERTIFICATES OF PARTICIPATION (HIGHLAND RESERVOIR RENOVATION AND RICHFIELD PLANT - PHASE 3 RENOVATION PROJECT) SERIES 2003 MATURITY DATE (October 1) CUSIP 2009 98618M AF 6 2010 98618M AG 4 2011 98618M AH 2 2012 98618M AJ 8 2013 98618M AK 5 2014 98618M AL 3 2015 98618M AM 1 2016 98618M AN 9 2017 98618M AP 4 2018 98618M AQ 2 2019 98618M AR 0 2020 98618M AS 8 2021 98618M AT 6 2022 98618M AU 3 2023 98618M AV 1 2028 98618M AW 9 2033 98618M AX 7 • 0 REPORTING OF SIGNIFICANT EVENT • (RATING CHANGES) S&P DOWNGRADES FGIC'S RATING FROM "BB" TO "CCC" AND FITCH WITHDRAWS FGIC'S RATING NOTICE IS HEREBY GIVEN that Standard & Poor's Ratings Services, a division of the McGraw-Hill Companies, Inc. ("S&P") has downgraded its ratings for Financial Guaranty Insurance Company ("FGIC"), the insurer with respect to the Yorba Linda Water District Revenue Certificates of Participation (Highland Reservoir Renovation and Richland Plan - Phase 3 Renovation Project) Series 2003 (the "Certificates"). S&P has downgraded FDIC's rating from "BB" to "CCC". NOTICE IS HEREBY GIVEN that Fitch, Inc., ("Fitch") has withdrawn its ratings for FDIC, the insurer with respect to the Certificates. Fitch's underlying rating on the Certificates remains unchanged at "AA-". This Reporting of Significant Event has been prepared to satisfy the obligations of the Yorba Linda Water District (the "District'), pursuant to Section 5 of that certain Continuing Disclosure Certificate, dated September 10, 2003 (the "Disclosure Certificate"), executed by the District, in connection with the execution and delivery of the Certificates, and the requirements of Rule 15c2- 12(b)(5)(i)(C) of the Securities Exchange Act of 1934, as amended. As provided in Section 5 of the • Disclosure Certificate, this Reporting of Significant Event is being prepared to be forwarded to each Repository listed on Exhibit A attached hereto. All capitalized terms used herein shall have the meanings set forth in the Disclosure Certificate. This Reporting of Significant Event may contain information material to Holders and does not purport to contain all material information with respect to the Certificates or the financial condition of the District. The information contained in this Reporting of Significant Event is not guaranteed as to accuracy or completeness. Dated: December 31, 2008 YORBA LINDA WATER DISTRICT Kenneth R Vecchiarelli, General Manager 0 EXHIBIT A • REPOSITORY LIST The following are the current Nationally Recognized Municipal Securities Information Repositories as approved by the Securities and E'xchange Commission. Bloomberg Municipal Repository 100 Business Park Drive Skillman, NJ 08558 Phone: (609) 279-3225 Fax: (609) 279-5962 httt)://www.bloomberg.com/markets/rates/municontacts.htral Email: Llunis(@,,Bloomberp,.com DPC Data Inc. One Executive Drive Fort Lee, NJ 07024 Phone: (201) 346-0701 Fax: (201) 947-0107 httt)://www.Munil{ILINGS.com Email: nrmsir@d cdata.com Interactive Data Pricing and Reference Data, Inc. Attn: NRMSIR 100 William Street, 15th Floor • New York, NY 10038 Phone: (212) 771-6999; (800) 689-8466 Fax: (212) 771-7390 httn: / /W-,VW.interactivedata-ord.com I .mail: NRMSIR cOinteractivedata.com Standard & Poor's Securities Evaluations, Inc. 55 Water Street 45th Floor New York, NY 10041 Phone: (212) 438-4595 Fax: (212) 438-3975 httT)://www.disclosuredirectorv.standardandt)oors.com/ Email: nrmsir repository0sandp.com 0 EXHIBIT A-1