HomeMy WebLinkAbout1994-10-03 - Finance-Accounting Committee Meeting Minutes
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' ITEM NO.
' AGENDA REPORT
DATE: October 13, 1994
' TO: President and Members of the Board
FROM: Finance-Accounting Committee
' SUBJECT. Summary Minutes of the Finance-Accounting Committee Meeting
' The Finance-Accounting Committee held a meeting on October 3, 1994. Present were
Michael Beverage, Arthur C. Korn, William Robertson and Beverly Meza. The
following items were discussed at the meeting:
' 1 . Annual Audit. Mr. Rod McDaniel, Diehl Evans & Company, reviewed the
preliminary Audit report for the fiscal year ending June 30, 1994. The Committee
asked questions to clarify several sections in the report. Mr. McDaniel then discussed
' the Management Letter which addressed the District's job closing procedures. Mr.
McDaniel closed with a report that FEMA will require an audit of projects they fund in
excess of $100,000. This separate audit will cost between $4,000 and $5,000. The
Annual Audit Report will be presented for review and acceptance by the full Board of
' Directors at a future Board meeting. Mr. McDaniel left after this report.
2. Water Rates. Mr. Robertson presented a report on finances and water rates. Due to
a combination of higher year end balance than forecast and control over expenses, there
is no crisis over water rates. The Committee requested that staff look at the option of
phasing in small increases in anticipation of higher future imported and groundwater
' costs. Staff will conduct the requested analysis, plus a detailed review of the current
fiscal year revenue stream, and present it to the Committee in about one month.
3. Metropolitan Water District's Nexus Study. Director Korn and Mr. Robertson
' reviewed Metropolitan's Nexus Study regarding Met's new water rate structure. Mr.
Robertson reported a technical analysis indicates the District may incur Met's proposed
Demand Charge, which is applied to water in excess of a four-year average imported
' water demand, on approximately 1,000 acre feet per year. Mr. Korn reviewed the
philosophical and policy history behind the charge. The charge is designed to shift
costs to new development. The Committee then held a lengthy discussion on the
' concept of differential water rates, at the conclusion of which they preferred to continue
with the postage stamp rate on all customers.
4. Financial Master Plan Report - Phase III. Ms. Lora Stovall, Bartle Wells &
' Associates, presented Phase III the District's Financial Master Plan. Ms. Stovall
reported that included among the variety of financing choices to pay for needed water
system improvements is an increase of about 7 cents per Hundred Cubic Feet. The
' Committee requested that the Citizens Advisory Committee review and comment on the
report before it's presented to the full Board of Directors. Mr. Michael Payne,
Assistant General Manager, reported he will convene a CAC meeting as soon as
practical. Mr. Payne and Ms. Stovall departed after this report.
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S. Reimbursement of Expenses. The Committee discussed reimbursement of
expenses incurred by the management for attendance at activities where it is in the
' District's best interest. In addition, the Committee noted that Director expenses are
reviewed by the Executive Committee and staff expenses are reviewed by the General
Manager, therefore, it's appropriate for the Executive Committee to include the General
Manager's expense reports in the quarterly review of Director expenses.
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