HomeMy WebLinkAbout2006-10-09 - Finance-Accounting Committee Meeting MinutesITEM NO. ' I .
MINUTES OF THE APPROVED BY THE BOARD OFDIRECTONS
YORBA LINDA WATER DISTRICT OF THEYORBALINDA WATER DI8TRICT
FINANCE-ACCOUNTING COMMITTEE ' OCT 2 6 20
October 9, 2006
A meeting of the Yorba Linda Water District Finance-Accounting Committee was called to order
by Committee Chairman Ric Collett at 4:00 p.m. The meeting was held at District Headquarters,
4622 Plumosa Drive, Yorba Linda.
COMMITTEE: STAFF PRESENT:
Director Ric Collett, Chairman Michael A. Payne, General Manager
Director William R. Mills Diane Cyganik, Finance Director
Alternate: Director John W Summerfield
VISITORS PRESENT:
None
DISCUSSION ITEMS
1. Future water and sewer rate hearings policy - Staff had a discussion to present setting up a
District policy to review Customer Service/Developer Fees, Sewer and Water Rate Fees on
an annual basis. The process involves figuring out revenue needs and how to structure and
establish rates within the service area to generate the required revenue to cover the
applicable costs associated with each rate. The recent controversy of Proposition 218 and
the "Bighorn Case" has placed additional substantive and procedural requirements on sewer
and water rate increases. However, Proposition 218 does not impact the Customer Service
and Developer Fee increases. Direction was given to staff to establish a timetable for each
of the rate studies that will allow ample time to accommodate the compliance requirements
of Proposition 218. Director Collett asked the mailing process be kept as simplistic as
possible and yet follow the guidelines set forth in Proposition 218. He also recommended
sending notices to the tenant as opposed to the property owner as this is how the District's
billing files are set up, and the implications of trying to match up the parcel number from the
tax roll to the District's billing records would be time consuming and costly. The Committee
also asked that the District separate the Customer Service/Developer Fees into sewer and
water and include those applicable to sewer with the Sewer Rate Study and those
associated with water to be included with the Water Rate Study.
STANDING ITEMS
2. Status of District investments for the quarter ended September 30, 2006 - Keith Khorey,
Principal of Wells Capital Management called in via conference call at 4:05 p.m. to discuss
the quarterly investment reports and answered questions from the Committee members. Mr.
Khorey gave a synopsis of the portfolio and in essence reported it is adequately diversified.
He also reported the rate increased to 5.13% in September 2006 from 5.00% in August
2006 and that we are in the process of catching up to the Fed rate of 5.25%. He stated
there was a rally in treasuries in September indicating rates will remain stable. However,
rates are expected to decline probably early in 2007.
Following Mr. Khorey's report, the Committee members thanked him and concluded the
telephone conference.
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INFORMATION ITEMS
3. Report on District Audit for Fiscal Year 2006/2007 - Finance Director Cyganik gave an
update on the status of the audit and the items needing to be finalized prior to a draft of the
financial statement being presented to the Committee by the audit firm.
4. Report on Replenishment Assessment on Groundwater Pumped to discharge for the Fiscal
Year 2005/06 - General Manager Payne discussed the report and answered questions from
the Committee.
ADJOURNMENT:
The Committee adjourned at 5:20 p.m. The next regularly scheduled Finance-Accounting
Committee meeting is scheduled for November 13, 2006.
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