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HomeMy WebLinkAbout2008-11-10 - Finance-Accounting Committee Meeting Agenda Packet• Yorba Linda Water District FINANCE - ACCOUNTING COMMITTEE MEETING Monday, November 10, 2008, 8:00 a.m. 1717 E. Miraloma Avenue, Placentia - Tel: (714) 701-3020 AGENDA • COMMITTEE STAFF Director Michael J. Beverage, Chair Michael A. Payne, General Manager Director John W. Summerfield Ken Vecchiarelli, Assistant General Manager Diane Cyganik, Finance Director 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. Monthly Financial Statements for the first and second months of fiscal year 2008- 09 ending July 31 and August 30, 2008, respectively. Recommendation: That the Committee review and recommend to the Board of Directors that the Monthly Financial Statements for July and August of Fiscal year 2008-09 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. 2. Investment Report ending September 30, 2008. 3. Monthly Portfolio Report ending October 31, 2008. Report by Keith Khorey, Wells Capital Management. 4. Potential effects of CaIPERS investment loss. OR c ADJOURNMENT The next regularly scheduled meeting of the Finance-Accounting Committee will be held December 9, 2008 at 4:00 p.m. Items Distributed to the Committee Less Than 72 Hours Prior to the Meetinq • 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.yiwd.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 Michael A. Payne, General Manager, 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: November 10, 2008 To: Finance-Accounting Committee From: Ken Vecchiarelli, Assistant General Manager Staff Contact: Diane Cyganik, Finance Director Reviewed by General Counsel: N/A Budgeted: N/A Total Budget: Funding Source: All Funds CEQA Account No: Job No: Compliance: N/A Estimated Costs: Dept: Bus Subject: Financial Statements for the first and second months of fiscal year 2008-09 ending July 31 and August 31, 2008, respectively. SUMMARY: A presentation will be made of the Financial Statements for the first and second months of fiscal year 2008-09 ending July 31 and August 31, 2008, respectively. DISCUSSION: The Water Fund had an Operating Loss for the first month of fiscal year 2008-09 ending July 31, • 2008 of $535,448. The key factors are outlined below: Yorba Linda Water District Monthly Financial Statement Analysis - Water Operating Fund For the Month Ending July 31, 2008 July Y-T-D Y-T-D Budget 2008 Budget Budget Description FY 2008/00 Actual Y-T-D Remaining Remaining Total Water Sales $ 17,498,010 $ 1,747,980 $ (15,750,030) -90% Total Variable Water Costs $ 11,156,500 $ 1,335,982 $ 9,820,518 88% Personnel Costs $ 7,389,200 $ 302,103 $ 7,087,097 96% Supplies & Services $ 3,773,100 $ 385,203 $ 3,387,897 90% The Water Operating Fund reflects water sales greater than what was anticipated due to the water rate increase that was not included in the budget. The variable water costs are 4% 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. Supplies & Services are approximately 2% higher than budget as of July 31, 2008. The larger items comprising the variance include: payment of annual contractual services (LAFCO - $20,809), data processing costs in conjunction with the SCADA control room (17" panel PC and cabling additions of $11,000), Miraloma Building Dedication (approximately $20,000), • communication costs (3 Kiosks totaling $4,560), insurance (ACWA property, auto & general of $76,015), and vehicle expenses (well 18 top end overhaul & well 7 cylinder replacement of $20,360). The Sewer Fund had an Operating Loss for the first month of fiscal year 2008-09 ending July • 31, 2008 of $3,108. The key factors are outlined below: Yorba Linda Water District Monthly Financial Statement Analysis - Sewer Operating Fund For the Month Ending July 31, 2008 July Y-T-D Y-T-D Budget 2008 Budget Budget Description FY 2008109 Actual Y-T-D Remaining Remaining Sewer Maintenance Charges $ 1,249,850 $ 97,834 $ (1,152,016) -92% Personnel Costs $ 730,800 $ 34,345 $ 696,455 95% Supplies & Services $ 339,600 $ 21,896 $ 317,704 94% The Sewer Maintenance Charges are pretty much right on target as to what was budgeted for at this point in time. The Personnel Costs as well as the Supplies & Services are slightly lower than anticipated by 3% and 2%, respectively. However, there aren't any significant material variances to report. Financial Statement Overview for August 31, 2008 The Water Fund had an Operating Loss for the second month of fiscal year 2008-09 ending • August 31, 2008 of $1,172,957. The key factors are outlined below: Yorba Linda Water District Monthly Financial Statement Analysis - Water Operating Fund For the Month Ending August 31, 2008 August Y-T-D Y-T-D Budget 2008 Budget Budget Description FY 2008100 Actual Y-T-D Remaining Remaining Total Water Sales $ 17,498,010 $ 3,550,627 $ (13,947,383) -80% Total Variable Water Costs $ 11,156,500 $ 2,635,932 $ 8,520,568 76% Personnel Costs $ 7,389,200 $ 907,235 $ 6,481,965 88% Supplies & Services $ 3,773,100 $ 598,422 $ 3,174,678 84% The Water Operating Fund reflects water sales greater than what was anticipated due to the water rate increase that was not included in the budget. The variable water costs are 7% 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. Supplies & Services are approximately 1 % higher than budget as of August 31, 2008; however, nothing is out of the ordinary during this month. 0 The Sewer Fund had an Operating Loss for the second month of fiscal year 2008-09 ending August 31, 2008 of $37,569. The key factors are outlined below: • • Yorba Linda Water District Monthly Financial Statement Analysis - Sewer Operating Fund For the Month Ending August 31, 2008 August Y-T-D Y-T-D Budget 2008 Budget Budget Description FY 2008109 Actual Y-T-D Remaining Remaining Sewer Maintenance Charges $ 1,249,850 $ 197,475 $ (1,052,375) -84% Personnel Costs $ 730,800 $ 104,675 $ 626,125 86% Supplies & Services $ 339,600 $ 40,965 $ 298,635 88% The Sewer Maintenance Charges are pretty much right on target as to what was budgeted for at this point in time. The Personnel Costs as well as the Supplies & Services are slightly lower than anticipated by 3% and 5%, respectively. However, there aren't any significant material variances to report on Personnel and Supplies & Services. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors reviews each quarter's financial statements. The audited financial statements for the fiscal year ended June 30, 2008 were received and filed on October 28, 2008. STAFF RECOMMENDATION: That the Committee recommend the Board of Directors receive and file the financial statements for the first and second months of fiscal year 2008-09 ending July 31 and August 31, 2008, respectively. 40 • • • Fund 1 Schedule of Revenue & Expense 7/31/2008 ANNUAL CURR YR VARIANCE VAR BUDGET Y-T-D Y-T-D % Operating Revenues: Metered water sales 17,040,410.00 1,918,220.49 15,122,189.51 89% Sewer maintenance charges 0.00 0.00 0.00 0% Construction water sales 355,000.00 28,022.62 326,977.38 92% Irrigation sales 45,600.00 8,617.02 36,982.98 81% Other 13,490.00 10,481.77 3,008.23 22% Customer service fees 124,600.00 16,066.84 108,533.16 87% Rents and royalties 99,100.00 41556.16 94,543.84 95% Outside District water sales 50,000.00 3,868.78 46,131.22 92% Unmetered water sales 7,000.00 885.10 6,114.90 87% To:Restricted for Debt Sery"" 0.00 (211,633.84) 211,633.84 -100% Total Operating Revenues 17,735,200.00 1,779,084.94 15,956,115.06 90% Operating Expenses: Variable water costs 11,156,500.00 1,335,981.98 9,820,518.02 88% Personnel services 7,389,200.00 302,102.71 7,087,097.29 96% Depreciation 0.00 291,245.57 (291,245.57) -100% Supplies and services 3,773,100.00 385,202.74 3,387,897.26 90% Total Operating Expenses 22,318,800.00 2,314,533.00 20,004,267.00 90% Operating (Loss) (4,583,600.00) (535,448.06) (4,048,151.94) 88% Nonoperating Revenues: Property taxes -debt service 0.00 0.00 0.00 -100% Property taxes - operations 1,200,150.00 0.00 1,200,150.00 100% Interest income 47,500.00 17,655.01 29,844.99 63% Other revenue 449,200.00 61,424.14 387,775.86 86% Rev Restricted for Debt Sery 0.00 211,633.84 (211,633.84) -100% Total Nonoperating Revenues 1,696,850.00 290,712.99 1,406,137.01 83% Nonoperating expenses: Interest expense 0.00 191,038.91 (191,038.91) -100% Security Vulnerability Exp 0.00 0.00 0.00 0% Other expense 0.00 10,185.43 (10,185.43) -100% Total Nonoperating Expenses 0.00 201,224.34 (201,224.34) -100% • • • Fund 1 Schedule of Revenue & Expense 7/31/2008 ANNUAL CURR YR VARIANCE VAR BUDGET Y-T-D Y-T-D % Income (Loss) before Capital Contributions (2,886,750.00) (445,959.41) (2,440,790.59) 85% Capital Contributions 667,100.00 17,915.00 649,185.00 97% Change in Net Assets: (2,219,650.00) (428,044.41) (1,791,605.59) 81% • FA • Schedule of Revenue & Expense 07-31-08 ANNUAL CURR YR VARIANCE VAR BUDGET Y-T-D Y-T-D $ Operating Revenues: Metered water sales 0.00 0.00 0.00 -100 Sewer maintenance charges 1,246,550.00 97,573.45 1,148,976.55 92 Construction water sales 0.00 0.00 0.00 -100 Irrigation sales 0.00 0.00 0.00 -100 Other 3,300.00 261.00 3,039.00 92 Customer service fees 0.00 0.00 0.00 -100 Rents and royalties 0.00 0.00 0.00 -100 Outside District water sales 0.00 0.00 0.00 -100 Unmetered water sales 0.00 0.00 0.00 -100 To:"Restricted for Debt Serv" 0.00 0.00 0.00 -100 Total Operating Revenues 1,249,850.00 97,834.45 1,152,015.55 92 Operating Expenses: Variable water costs 0.00 0.00 0.00 -100 Personnel services 730,800.00 34,344.93 696,455.07 95 Depreciation 0.00 44,701.85 <44,701.85> -100 Supplies and services 339,600.00 21,895.61 317,704.39 94 Total Operating Expenses 1,070,400.00 100,942.39 969,457.61 91 Operating (Loss) 179,450.00 <3,107.94> 182,557.94 101 • FU02 • Schedule of Revenue & Expense 07-31-08 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 17,000.00 759.99 16,240.01 96 Other revenue 5,000.00 845.24 4,154.76 83 Rev Restricted for Debt Sery 0.00 0.00 0.00 -100 Total Nonoperating Revenues 88,000.00 1,605.23 86,394.77 98 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 80.48 <80.48> -100 Total Nonoperating Expenses 0.00 80.48 <80.48> -100 Income (Loss) before Capital Contributions 267,450.00 <1,583.19> 269,033.19 100 Capital Contributions 251,000.00 0.00 251,000.00 100 Change in Net Assets: 518,450.00 <1,583.19> 251,000.00 100 RUN DATE/TIME: 17:49:29 03 Nov 2008 REPORT ID: revexp07 • Fund 1 • • Schedule of Revenue & Expense 8/3112008 ANNUAL CURR YR VARIANCE VAR BUDGET Y-T-D Y-T-D % Operating Revenues: Metered water sales 17,040,410.00 3,982,315.78 13,058,094.22 77% Sewer maintenance charges 0.00 0.00 0.00 0% Construction water sales 355,000.00 74,824.60 280,175.40 79% Irrigation sales 45,600.00 13,926.12 31,673.88 69% Other 13,490.00 14,770.33 (1,280.33) -9% Customer service fees 124,600.00 32,641.82 91,958.18 74% Rents and royalties 99,100.00 4,556.16 94,543.84 95% Outside District water sales 50,000.00 8,613.47 41,386.53 83% Unmetered water sales 7,000.00 1,803.60 5,196.40 74% To:Restricted for Debt Sery"" 0.00 (582,824.60) 582,824.60 -100% Total Operating Revenues 17,735,200.00 3,550,627.28 14,184,572.72 80% Operating Expenses: Variable water costs 11,156,500.00 2,635,932.18 8,520,567.82 76% Personnel services 7,389,200.00 907,234.67 6,481,965.33 88% Depreciation 0.00 581,995.39 (581,995.39) -100% Supplies and services 3,773,100.00 598,422.22 3,174,677.78 84% Total Operating Expenses 22,318,800.00 4,723,584.46 17,595,215.54 79% Operating (Loss) (4,583,600.00) (1,172,957.18) (3,410,642.82) 74% Nonoperating Revenues: Property taxes -debt service 0.00 0.00 0.00 0% Property taxes - operations 1,200,150.00 10,347.44 1,189,802.56 99% I nterest income 47,500.00 76,29149 (28,793.49) -61% Other revenue 449,200.00 108,545.66 340,654.34 76% Rev Restricted for Debt Sery 0.00 582,824.60 (582,824.60) -100% Total Nonoperating Revenues 1,696,850.00 778,011.19 918,838.81 54% Nonoperating expenses: Interest expense 0.00 382,077.82 (382,077.82) -100% Security Vulnerability Exp 0.00 0.00 0.00 -100% Other expense 0.00 15,050.30 (15,050.30) -100% Total Nonoperating Expenses 0.00 397,128.12 (397,128.12) -100% Fund 1 Schedule of Revenue& Expense 8/31/2008 ANNUAL CURR YR VARIANCE VAR BUDGET Y-T-D Y-T-D % Income(Loss) before Capital Contributions (2,886,750.00) (792,074.11) (2,094,675.89) 73% Capital Contributions 667,100.00 249,482.00 417,618.00 63% Change in Net Assets: (2,219,650.00) (542,592.11) (1,677,057.89) 76% • FUNO • Schedule of Revenue & Expense 08-31-08 ANNUAL CURR YR VARIANCE VAR BUDGET Y-T-D Y-T-D o Operating Revenues: Metered water sales 0.00 0.00 0.00 -100 Sewer maintenance charges 1,246,550.00 196,952.59 1,049,597.41 84 Construction water sales 0.00 0.00 0.00 -100 Irrigation sales 0.00 0.00 0.00 -100 Other 3,300.00 522.00 2,778.00 84 Customer service fees 0.00 0.00 0.00 -100 Rents and royalties 0.00 0.00 0.00 -100 Outside District water sales 0.00 0.00 0.00 -100 Unmetered water sales 0.00 0.00 0.00 -100 To:"Restricted for Debt Serv" 0.00 0.00 0.00 -100 Total Operating Revenues 1,249,850.00 197,474.59 1,052,375.41 84 Operating Expenses: Variable water costs 0.00 0.00 0.00 -100 Personnel services 730,800.00 104,674.72 626,125.28 86 Depreciation 0.00 89,403.70 <89,403.70> -100 Supplies and services 339,600.00 40,965.28 298,634.72 88 Total Operating Expenses 1,070,400.00 235,043.70 835,356.30 78 Operating (Loss) 179,450.00 <37,569.11> 217,019.11 120 i • I • FUND • Schedule of Revenue & Expense 08-31-08 ANNUAL CURR YR VARIANCE VAR BUDGET Y-T-D Y-T-D a ----------------------- 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 1,338.46 15,661.54 92 Other revenue 5,000.00 1,357.47 3,642.53 73 Rev Restricted for Debt Sery 0.00 0.00 0.00 -100 Total Nonoperating Revenues 88,000.00 2,695.93 85,304.07 97 Nonoperating expenses: Interest expense 0.00 0.00 0.00 -100 Security Vulnerability Exp 0.00 0.00 0.00 -100 Other expense 0.00 160.11 <160.11> -100 Total Nonoperating Expenses 0.00 160.11 <160.11> -100 Income (Loss) before Capital Contributions 267,450.00 <35,033.29> 302,483.29 112 Capital Contributions 251,000.00 4,680.00 246,320.00 98 Change in Net Assets: 518,450.00 <30,353.29> 246,320.00 105 RUN DATE/TIME: 17:15:58 05 Nov 2008 REPORT ID: revexp07 ITEM NO. a2- AGENDA REPORT • Committee Meeting Date: November 10, 2008 To: Finance-Accounting Committee From: Ken Vecchiarelli, Assistant General Manager Staff Contact: Diane Cyganik, Finance Director Sandi Van Etten, Senior Accountant Reviewed by General Counsel: N/A Budgeted: N/A Total Budget: N/A Funding Source: N/A CEQA Account No: Job No: Compliance: N/A Estimated Costs: N/A Dept: Bus Subject: Investment Report for September 2008 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 September 2008 monthly investment report for your information. I will • submit a formal report of the investments for Board action for the quarter ending September 30, 2008 upon approval of the Investment Report. Below is a chart summarizing the yields as well as terms and maturities for the month of September 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 September 1.63% 2.17% 62 19 Below is a chart comparing operating fund interest for current and prior fiscal years: Actual Interest Monthly, Operating Fund Year-to-Date, Operating Fund 09/30/07 09/30/08 $ 910 $ 1,003 $12,789 $ 1,925 Budget 2007/2008 2008/2009 • Interest Budget, Operating Fund, September YTD $21,500 $16,125 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 • 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 09/30/08 Annexation Fund $9,405,709 17.86% Water Fund (3,914,756) -7.43% Water R&R Operating Reserve 2,019,692 3.84% Water Reserve for Capital Projects 149,500 0.28% Water Restricted for 2008 Debt Service 300,283 0.57% 2003 Bond Fund 446,064 0.85% 2008 Bond Fund 28,797,409 54.69% Sewer Fund 1,248,777 2.37% Sewer R&R Operating Reserve 214,165 0.41% Sewer Reserve for Capital Projects 186,051 0.35% Imp. Dist. No. 1 4,246,507 8.06% Imp. Dist. No. 2 9.557.477 18.15% $52.656.878 100.00% • 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. STAFF RECOMMENDATION: That the Finance-Accounting Committee receive and file the report. 0 • Market Value Cost Cash & Checking Accounts: $ 327,529 $ 327,529 1,200 1,200 $ 328,729 $ 328,729 Yorba Linda Water District Investment Portfolio Report September 30, 2008 of Total Institution Wells Fargo Bank Imprest Cash 0.62% Total Percent Investment Maturity Yield Date Date 0.00% Money Market Accounts: $ 71,463 $ 71,463 Wells Fargo Money Market 0.33% 48,971 48,971 Wells Fargo MM/Annexation 0.33% $ 120,434 $ 120,434 0.23% Total 0.33% $ 449,163 $ 449,163 0.85% Sub-total California Asset Mgmt. Program: $ 6,625,586 $ 6,625,586 12.58% Money Market Account: $ 27,491,824 • $ 27,491,824 $ 1,305,585 $ 1,305,585 446,064 446,064 $ 29,243,473 $ 29,243,473 55.55% $ 36,318,222 $ 36,318,222 68.98% Individual Management Account: $ 16,317,121 $ 16,335,497 31.02% 0.09% California Asset Mgmt. Program 2.57% N/A N/A N/A US Bank 2008 Revenue Bond 1.51% US Bank 2008 Revenue Bond 0.34% US Bank 2003 Revenue Bond 0.27% N/A 1.44% Sub Total Investments 1.63% Wells Capital Management 3.39% N/A $ 52,635,343 $ 52,653,719 100% Total Investments 2.17% 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. `%Axdk; V" 646p,~ Sandi Van Etten, Senior Accountant 9/30/2008 ITEM NO. ? 0 Account Overview Yorba Linda Water District Account #18611500 Funding Date: 10/25/2005 Portfolio Statistics as of: 10/31/2008 Account Characteristics: Portfolio Yield to Maturity 2.62% Total Unrealized Gains/(Losses) - Current: 15,014 • Total Net Realized Gains/(Losses) - Since Inception: 496 Total Long-Term Investments: Total Short Duration Investments/Money Market Secs: 16,384,520 Total Market Value: 16,384,520 Total Number of Issues in the Portfolio: 13 MARKET DATA Overnight Fed Funds Rate: 1.00% 6-Month T-Bill Yield: 0.95% 12-Month T-Note Yield: 1.32% WELLS CAPITAL MANAGEMENT Portfoolulmmary Report Yorba WWater District For the period: 10/01/08 to 10/31/08 18611500 Portfolio Characteristics Portfolio Breakdown Market Value: 16,384,520.19 Market Value %of Account Unrealized G/L: 15,014.21 Agency Discount Note 4,433,420.00 27.06% Commercial Paper 2,546,255.60 15.54% Yield To Maturity: 2.62% Floating Rate 649,260.30 3.96% Portfolio Duration: 0.18 Years Money Market Fund 8,755,584.22 53.44% Pending_Cash 0.07 0.00% Avg. Days to Maturity: 66 Total 16,384,520.19 100.00% Avg. Portfolio Credit Quality: Aa1 Market Data 10/31108 09/30/08 Yields. 6 Month Treasury Bill: 0.95% 1.61% 2 Year Treasury Note: 1.56% 1.96% 5 Year Treasury Note: 2.83% 2.98% Fed Funds Target: 1.00% 2.00% Credit Quality* Effective Maturity Distribution 0.60 - - - P1/MIG1NMIG1/A-1 15.5% Aaa/AAA 27.1% 0.50 - -- - - - - _- Aa/AA 0.0% A/A 4.0% 0.40 Baa/BBB 0.0% Other 0.0% 0.30 Cash/Overnights 53.4% Not Rated 0.0% 100.0% 0.20 0.10 - *Moody's Ratings-Primary - S&P Ratings-Secondary Fitch Ratings-Tertiary o.00 o/n 2 to 90 91 to 180 181 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 DIS'T'RICT • Statement of Cash Flows/Earnings for October 2008 I - Beginning Period Balances As of 9/30/2008 Total Original Cost 16,310,767 + Net Amort/Accr to Date 24,730 =Adjusted Book Value: 16,335,497 + Accrued Interest Receivable 21,534 + Unrealized Gain/(Loss) (18,376) = Total Market Value Plus Accrued Interest 16,338,655 II: Period Income Earned + Ending Accrual 20,975 - Begininning Accrual (21,534) + Interest Received 24,311 - Interest Paid at Purchase - + Interest Received at Sale - = Interest Earned in Period 23,7511 + (Amort)/Accr This Period 15,736 = Monthly Portfolio Income I $ 39,4871 + Contributions - • - Withdrawals (3,232) + Realized Gain/(Loss) - Fees Paid This Period (2,806) - Prior Period Unrealized Gain/Loss (18,376) + End Of Period Unrealized Gain/Loss 15,014 + Net Receipts/Deliveries in Kind 0.00 + Adjustments 0.00 = Net Change to the Portfolio 43,0891 =Total Market Value Plus Accrued Interest 16,405,495 III: End of Period Balances As of 10/31/2008 Total Original Cost 16,340,761 + Net Amort/Accr to Date 28,745 = Adjusted Book Value 16,369,506 + Accrued Interest Receivable 20,975 + Unrealized Gain/(Loss) 15,014 = Total Market Value Plus Accrued Interest 16,405,495 • Reconciliation Difference: - Wells Capital Management Holdin�port • Yorba Linter District Securities He7�as of 10/31/08 on a Trade Date Basis 18611500 Identifier Credit Ratings Par Value Security Description Coupon Final Effective Days Duration Market Price Market Market Value Holdings as YTM at Maturity Maturity to Eff Value +Accrued Percentage of Purchase Maturity Interest Account or Reset Moody's S&P Fitch I.Cash&Cash Equivalents(Original maturity of 90 days or less) Cash U.S.DOLLARS (0) PENDING CASH (0) (0) 0.00% 0.00% (0) 0 0.00 0 0 0.00% 0.00% Money Mkt Securities Agency Discount Note Commercial Paper 70017GL30 P-1 A-1 NR 500,000 PARK AVENUE RECEIVABLES 0.000 11/03/08 11/03/08 3 0.01 100.000 500,000 500,000 3.05% 2.67% 88324LLR6 P-1 A-1 NR 450.000 THAMES ASSET GLOBAL SEC CF 0.000 11/25/06 11/25/08 25 0.07 99.823 449,203 449,203 2.74% 4.59% 88602TLL5 P-1 A-1 NR 450,000 THUNDER BAY FUNDING INC 0.000 11/20/08 11/20/08 20 0.05 99.870 449,416 449,416 2.74% 3.87% 92217LL56 P-1 A-1+ NR 450,000 VARIABLE FUNDING CAPITAL 0.000 11/05/08 11/05/08 5 0.01 99.987 449,943 449,943 2.75% 2.82% Money Market Fund VP7000038 NR NR NR 8,755,584 VJFADV MONEY MKT TR#645 2.116 11/01/08 1 0.00 100.000 8,755,584 8,775,721 53.44% 2.12% Cash&Cash Equivalents Total 10,605,584 3 0.01 10,604,146 10,624,282 64.72% 2.35% II.Marketable Securities(Original maturity greater than 90 days) //A:Short Term Securities(Remaining maturity of less than 365 days) Corporate Securities Corporate Obligation Floating Rate 617446AB2 Al A+ A 650,000 MORGAN STANLEY 4.221 11/21/08 11/21/08 21 0.06 99.886 649,260 650,099 3.96% 4.22% Govt Securities Gov Agncy Obligation Money Mkt Securities Agency Discount Note 313385EP7 AGY AGY AGY 1,000,000 FHLB 0.000 04/20/09 04/20/09 171 0.46 98.940 989,400 989,400 6.04% 3.04% 313385JB3 AGY AGY AGY 800,000 FHLB 0.000 07/13/09 07/13/09 255 0.69 98.290 786,320 786,320 4.80% 2.99% 313385KS4 AGY AGY AGY 1,000,000 FHLB 0.000 08/21/09 08/21/09 294 0.80 97.940 979,400 979,400 5.98% 3.02% 313589FH1 AGY AGY AGY 700,000 FNMA 0.000 05/08/09 05/08/09 189 0.51 98.800 691,600 691,600 4.22% 2.98% 313589GE7 AGY AGY AGY 1,000,000 FNMA 0.000 05/29/09 05/29/09 210 0.57 98.670 986,700 986,700 6.02% 2.91% Commercial Paper 06737HM55 P-1 A-1+ NR 500,000 BARCLAYS US FUNDING LLC 0.000 12/05/08 12/05/08 35 0.09 99.812 499,062 499,062 3.05% 2.86% 6323AONP9 P-1 A-1+ NR 200,000 NATEXIS BANQUES POP USF CPI 0.000 01/23/09 01/23/09 84 0.23 99.316 198,632 198,632 1.21% 3.08% Short Term Securities Total 5,850,000 180 0.49 5,780,375 5,781,213 35.28% 3.12% 118:Long-Term Securities(Remaining maturity greater than 365 days) Corporate Securities Marketable Securities Total 5,850,000 180 0.49 5,780,375 5,781,213 35.28% 3.12% 16,455,584 66 0.18 16,384,520 16,405,495 100.00% 2.62% The above information is an estimate of certain investment calculations and does not represent your audited statement of record. 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