HomeMy WebLinkAbout2006-07-10 - Finance-Accounting Committee Meeting MinutesMINUTES OF THE
YORBA LINDA WATER DISTRICT
FINANCE-ACCOUNTING COMMITTEE
July 10, 2006
ITEM NO. 1S
APPROVED BY THE WAR1376t13E M
OF THE YOROA LINDA WATER DISTRICT
JUL 97 6
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A meeting of the Yorba Linda Water District Finance-Accounting Committee was called
to order by Committee Chairman Ric Collett at 8:00 a.m. The meeting was held at
District Headquarters, 4622 Plumosa Drive, Yorba Linda.
COMMITTEE:
Director Ric Collett, Chairman
Director William R. Mills
VISITORS PRESENT:
None
STAFF PRESENT:
Michael Payne, General Manager
Kenneth Vecchiarelli, Assistant GM
Diane Cyganik, Finance Director
STANDING ITEMS
1. Monthly status of investments as of June 30, 2006. Keith Khorey, Principal of Wells
Capital Management, called in via conference call at 8:10 a.m. to discuss the
monthly investment reports and answer questions from the committee members.
Mr. Khorey stated that interest .was pretty steady. He also said that their strategy
will be to invest the maturing investments in securities shorter in duration, because
the yield curve is so flat. This will allow them to react quickly to interest rate
increases and allow the District to determine the cash flow needed in the coming
months. Keith stipulated the economy is looking a little stronger than expected and
interest rates will probably go up to about 5.25%.
Following Mr. Khorey's report, the Committee members thanked him and concluded the
telephone conference.
2. Monthly Investment Report for May 2006. The committee reviewed the investment
report and asked what funds were included in the California Arbitrage Management
Program (CAMP). These funds are associated with the bonds for ID 1 and ID 2.
Another question was posed as to whether the bonds in U.S. Bank were subject to
arbitrage and if we could have them invested in CAMP. The revenue bonds in U.S.
Bank are subject to arbitrage; however, staff will confer with the District's bond
counsel as to whether these funds can be invested in CAMP.
INFORMATION ITEMS
3. Report on Orange County Water District Basin Equity Assessments, Basin
Production Percentages and Replenishment Assessments for Fiscal Year 2006-
2007. The report was discussed, and a question arose as to what constitutes the
difference of the basin equity assessment per acre-foot between Fiscal Year (FY)
05/06 of $304 and FY 06107 of $307. This will be researched, and an answer will be
provided to the committee.
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4. Report on MWDOC's New Rates and Charges for Fiscal Year 2006-2007. There
was a brief discussion, and there was a question as to whether we were passing
these charges on our customers as a pass through. There were no other areas of
concern.
5. Fluoridation Treatment Capital Cost Estimate Updates - Department of Health
Services. Mike Payne discussed this matter with the committee. The question was
posed as to whether the District was required to fluoridate, and the answer was only
if the District had the funds to accomplish this service.
ADJOURNMENT:
The Committee adjourned at 9:07 a.m. The next Finance-Accounting Committee
meeting is scheduled for August 14, 4:00 p.m. at District Headquarters, 4622 Plumosa
Drive, Yorba Linda, CA.
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