HomeMy WebLinkAbout1994-07-01 - Finance-Accounting Committee Meeting Minutes
' ITEM NO.~ ISO
' AGENDA REPORT
DATE: July 14, 1994
' TO: President and Members of the Board
' FROM: Finance-Accounting Committee
SUBJECT: Summary Minutes of Finance-Accounting Committee Meeting
' The July 1, 1994, Finance-Accounting Committee was called to order at 8:40 a.m. at the
District Headquarters. Present were Director's Arthur C. Kom and Michael Beverage, and
staff members William Robertson, Charles Gray and Beverly Meza.
' The following items were discussed:
' Item 1. Engineering Manager Charles Gray presented a detailed report on Development
Fees and Customer Service Fees. Mr. Gray reported the changes were 1) in all fees to reflect
higher labor costs which went into effect on July 1, and 2) higher, and in some cases lower,
material costs for some of the meter assemblies. Mr. Gray went on to report that staff is still
' gathering data for the Sewer frontage and acreage charge portion of the Fee study, therefore a
conclusive recommendation will be presented at the public hearing.
t Business Manager Beverly Meza reported the Customer Service fees reflect an adjustment
for only the salary adjustments effective July 1. In some cases the Customer Service fee
adjustment was less than one dollar so the fee is unchanged from last year.
' Mr. Gray reported the subject of Development and Customer Service Fees will be presented
at a public hearing scheduled for the August 25, Board meeting. No action was taken by the
Committee.
' Mr. Gray departed at this point in the meeting.
' Item 2. Business Manager Beverly Meza facilitated a discussion of Metropolitan Water
District's Interim Agricultural Water program. Met's program implements four-year averages
and if an agency exceeds the average they are required to pay a higher price for water. This
twist makes administration of the program very difficult. If an individual MWDOC sub-
agency exceeds their four-year average, but MWDOC as a group is below it's average, no
one will have to pay the higher price. To implement the program, staff will develop four-
year averages and track all Irrigation accounts. If TLWD is required to pay the higher price,
' it will pass it through to the customers who exceeded their four-year averages. The
Committee offered their advice on this matter.
' Item 3. Ms. Meza presented a report on ACWA dues. She reported we have requested,
and ACWA has approved a different method to calculate the District's dues. The revised
method discards debt service on I.D. bonds from the calculation and allows us to use audited
financial statements instead of the State Controllers report. The savings is about $600 per
' year. The Committee then discussed the policy choice of belonging to ACWA. Staff
reviewed the advantages of ACWA membership, such as access to health insurance, liability
insurance and legislative advocacy, with the Committee.
The Committee offered advice and no action was taken.
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Item 4. General Manager Robertson reviewed data for the fiscal 1994-95 Sewer
' Maintenance Charge. The Sewer Operating Fund begins 1994-95 with Retained Earnings of
about $84,500. During the year, forecasted expenses will exceed forecasted revenues by
about $18,500, therefore, retained earnings at the end of 1994-95 are estimated at about
$66,200 which is a 20% reserve.
Mr. Robertson went on to report that the Sewer Maintenance Charge should increase by
' about $1.00 per connection per year to replace the fund drawdown and achieve a 25%
reserve. The Committee observed that a 20% reserve was adequate and a 1% increase in
interest rates could offset the anticipated fund drawdown.
' The Committee requested that staff investigate and report back on self insurance retentions
and whether the District should continue to set aside funds in the Catastrophic Restoration
Fund; and, that the Public Information Committee consider changing the "sewer service" to
' "sewer maintenance" charge or some other more descriptive phrase.
Staff will present a Sewer Maintenance Charge recommendation for action by the full Board
' at the public hearing scheduled for the August 25, Board meeting.
Item 5. Mr. Robertson reviewed a proposal to allocated the Oriente/Danita Lane Sewer
Maintenance Assessment District costs to the Capital Improvement Fund. The Committee
' discussed the matter and offer their advice. No action was taken.
' The meeting adjourned at 11:05 am.
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