Orange County LAFCO Comprehensive Quarterly Report

Transcription

1 Orange County LAFCO Comprehensive Quarterly Report F Y ( O c t o b e r D e c e m b e r ) INSIDE LOOK: Proposed Changes of Organization Page 1 Fostering Partnerships Page 3 Meetings and Outreach Efforts Page 4 FY Budget Overview Page 6 Page 0

2 Introduction The February Comprehensive Quarterly Report (CQ report) includes information on the second quarter for Fiscal Year This report provides the Commission an overview of the projects and meetings completed in the months of October, November and December. An assessment of the agency s current budget and investment portfolio performance for the same quarter is also covered in this edition of the CQ report. The next CQ report is scheduled for May Proposed Changes of Organization During the second quarter, OC LAFCO participated in meetings and discussions on routine to complex changes of organization involving city and district annexations and detachments, activation of latent powers, and extraterritorial provision of retail water. The following section provides an update on activities involving boundary change applications and potential LAFCO proposals that occurred during the second quarter. Orange County Water District Annexation In early December 2013, the Orange County Water District (OCWD) filed the LAFCO application to annex territories within the boundaries of the City of Anaheim, Irvine Ranch Water District, and Yorba Linda Water District. OCWD s responsibility includes management of the groundwater basin and the District s boundary covers the northern, coastal and central regions of Orange County including 20 cities and five special district water providers. The application represents a multi-year effort that involved the collaboration of the affected agencies, mutual agency agreements, the required environmental process and pre-filing meeting and subsequent discussions with OC LAFCO staff regarding the annexation process and requirements. The proposal is expected to be heard by the Commission in early Spring East Orange County Water District/Orange County Sanitation District Reorganization During the second quarter, OC LAFCO staff facilitated multiple meetings and discussions with the East Orange County Water District (EOCWD) and Orange County Sanitation District (OCSD) regarding the proposed transfer of local sewer infrastructure from OCSD to EOCWD for certain territory located within and/or adjacent to the Cities of Tustin and Orange and the Irvine Ranch Water District. To date, staff has completed a preliminary review of local sewer service options for the area and identified potential impacts of the proposal within the affected and adjacent districts and cities boundaries. An application to LAFCO would involve the activation of latent powers for EOCWD and the potential divestiture of certain powers for OCSD within this area. There is also the potential for competing applications. The EOCWD/OCSD application may be filed in early Spring Page 1

3 Orange County Sanitation District Detachment During the second quarter, the Orange County Sanitation District (OCSD) filed an application to detach approximately 172 acres of uninhabited territory from its service boundary. The area is currently located within the City limits of Laguna Woods and includes open space with no plans for future development. Additionally, the subject territory overlaps with South Orange County Wastewater Authority (SOCWA). OC LAFCO staff has verified with SOCWA staff that should the area be developed in the future, SOCWA would be responsible for the provision of regional sewer collection and treatment. The application is expected to be considered by the Commission in Spring Transfer of Retail Water System to the City of La Habra OC LAFCO has been contacted to participate in discussions involving the City of La Habra, Los Angeles LAFCO and California Domestic Water Company regarding the transfer of retail water service from the water company to the City. The subject territory includes areas currently located within the city limits and adjacent unincorporated areas located within the City s sphere of influence and in the adjacent County of Los Angeles. The discussions involve multiple and complex issues that include provision of water service by a public agency outside of its jurisdictional boundary and LAFCO s role in review of a joint powers authority. Over the past few months, OC LAFCO staff and legal counsel have engaged in multiple meetings to discuss stakeholder interests, LAFCO processes, and encourage the continued efficient delivery of water service to the affected areas. Annexation to the City of Rancho Santa Margarita Over the past two months, staff continued to work collaboratively with the County of Orange, City of Rancho Santa Margarita, and the property owner of the Santa Margarita Catholic High School on the proposed annexation of an adjacent parking lot to the City. An application was filed in August 2013 to adjust the boundary so that the entire high school property would be solely under the jurisdiction of the City. Since that time, staff has facilitated discussions that included future maintenance of traffic signals and rightof-ways, metes and bounds mapping requirements and property tax exchange agreements to align the interests of the affected agencies and stakeholders. The application is expected to be heard by the Commission early Santa Ana/Colleen Island Annexation On November 5, 2013, the City of Costa Mesa held a public hearing to consider filing an annexation application for the Santa Ana/Colleen island. At the meeting, the city Page 2

4 council addressed questions and received concerns from the island residents and unanimously approved moving forward with filing with OC LAFCO. Subsequently, OC LAFCO provided assistance to City staff on the completion of the application that has been filed but is currently incomplete. City staff is expected to complete the prezoning and CEQA required processes by mid-april. Additionally, the City will be conducting another community workshop in the Spring to provide residents with completed information on the land use designations and other requested items. OC LAFCO staff has been invited to participate in the workshop. The proposal is expected to be heard by the Commission in May Fostering Partnerships The Commission continues to foster partnerships and enhance communication with local government agencies and communities through LAFCO projects and activities. The following section provides an update on LAFCO communication and outreach efforts conducted during the second quarter. CALAFCO Legislative Committee OC LAFCO staff continues to participate as a member of the CALAFCO Legislative Committee. During the second quarter, staff participated in two quarterly legislative meetings to discuss potential legislative efforts that include: 1) annual review and updates to the Cortese Knox Hertzberg Act, 2) update to the sections of the Act for protest provisions, and 3) amendments to sections of the Act that govern the election process for LAFCO Special District members. OC LAFCO staff will also be participating as a member of the Disincorporation Subcommittee, charged with preparing proposed legislative amendments relative to the disincorporation process. The next legislative committee meeting will take place on March 21 in Ontario. The Legislative Quarterly Report, which provides additional details on potential legislation for the 2014 Legislative Session, is provided under a separate report for the February agenda. Coalition of California LAFCOs The Coalition of California LAFCOs (CCL), comprised of Commissioners and staff of all southern LAFCOs (Imperial, Los Angeles, Orange, Riverside, San Bernardino, and San Diego), continues to meet quarterly to discuss both regional and individual issues. As a spin-off of the CCL board, subgroups to discuss GIS and clerking opportunities were formed and have continued to meet over the past three years. During the second quarter, the GIS subgroup met to discuss access to census data and received a presentation from San Bernardino LAFCO on their development of performance measures to assess the financial condition of an organization. CCL clerks met to discuss Page 3

5 ways to improve internal efficiencies and the development of a Clerk certification program by CALAFCO. The CCL Board met in November 2013 and hosted their annual summit on January 27, During the summit, the group received an update on coordinated legislative efforts and discussed methods of addressing water availability for LAFCO proposals. Additionally, there were presentations by the CALAFCO Executive Director Pamela Miller on the recent activities of the CALAFCO Board and Legislative Committee and Commissioner Cheryl Brothers was appointed CCL Treasurer to fill a vacancy left by Commissioner Ed Snively who resigned from Imperial LAFCO earlier in the month. Upcoming meetings of the subgroups and board will take place in February and April 2014, respectively. South Orange County Governance During the second quarter, LAFCO staff continued to work closely with County staff and representatives from the Rancho Mission Viejo Company to facilitate the transfer of financial information to the LAFCO financial consultant Stanley R. Hoffman Associates for analysis and development of fiscal models for South Orange County Governance study areas. As a key component of the visioning process, the fiscal models will provide the foundation for the next step of stakeholder discussions to discuss potential viable governance options for the two governance study areas. The fiscal modeling will be complete mid-february and will be presented to the stakeholders during meetings scheduled to begin in early Spring. An update on the fiscal modeling and the facilitated stakeholder meetings for the South Orange County Governance Visioning Process will be presented for discussion at the March 14 Strategic Planning Session. OC LAFCO Meetings and Outreach Efforts The table below depicts meetings and outreach efforts that occurred during the second quarter. SECOND QUARTER MEETINGS & OUTREACH EFFORTS October Meetings ISDOC Executive Committee Meet-and-greet with Serrano WD new General Manager Riverside LAFCO EO to discuss GRC Advisory Group OCCOG Monthly Meeting Site visits to explore office lease options County REO to discuss current office lease LAFCO Consultant to discuss Yorba Linda Focus Group effort Presentation of Gov t Leadership award to the City of La Habra LAFCO 101 Presentation to Grand Jury LAFCO 101 Presentation to Mesa Water District Silverado Modjeska GM to discuss potential boundary changes OCERS Plan Sponsors Meeting RMV staff on South OC fiscal modeling Page 4

6 October Meetings (Continued) County CFO on South OC fiscal modeling County Planning presentation on SB2 transitional housing plan County Planning Director Center for Demographic Research Technical Advisory Committee Meeting OCCOG Monthly Meeting Costa Mesa Island Community Meeting EOCWD/OCSD staff, consultant, legal counsel to discuss activation of latent powers South OC Chamber of Commerce/Economic Coalition La Habra/LA LAFCO on interagency issues regarding future water service provision to LA/OC bordering areas ISDOC Quarterly Luncheon EOCWD/OCSD Conference Call re: activation of latent powers/divestiture of powers Commissioner C. Wilson/Consultant on reviving OCLS Southern Clerks CCL in Riverside November Meetings Women Leading Government Mixer for OC Chair S. Wilson to discuss projects County REO to discuss office lease ISDOC Executive Committee Costa Mesa City Council Meeting regarding annexation of island OC Cox Communications Taping to highlight LAFCO projects Landowner of the San Juan Preserve to discuss annexation and services Site visit to explore office lease option CM, consultant to discuss OCLS CM and staff of City of Huntington Beach to discuss Bolsa Chica annexation Legal counsel to discuss proposed CKH amendments for terms and conditions CCL Quarterly Meeting, San Diego Meet-and-greet with CM of Fountain Valley OCCOG Monthly Meeting CALAFCO Legislative Committee Legal Counsel regarding La Habra Water Authority Jim Leach to discuss LAFCO public relations opportunities RMV staff on South OC fiscal modeling Training Partners Quarterly Meeting CALAFCO U Course Clerks Manuel CCL Clerks Presentation San Diego December Meetings RMV staff/lafco consultant to discuss South OC fiscal modeling ACC-OC to discuss OCLS EOCWD/OCSD staff, consultant, legal counsel to discuss activation of latent powers ISDOC Executive Committee La Habra CM and CA Domestic regarding transfer of water service LAFCO consultant regarding South OC fiscal modeling County Deputy CEO to discuss annexations OC LAFCO Annual Strategic Planning Session At the September 11, 2013 meeting, the Commission approved moving the annual strategic planning session from August to an earlier month in the year. The purpose of the change was to better align the development of the annual work plan with adoption Page 5

7 of the agency s annual budget. The 2014 session will take place on Friday, March 14, 2014 at the Santa Ana Police Department, Community Room in Santa Ana from 9:00 a.m. to 1:00 p.m. The session will also include guest speaker, Michael Coleman, Policy Advisor for the League of California Cities who will share his expertise and thoughts on the finances of incorporation and disincorporation and fiscal conditions of cities. FY Budget Overview This CQ report includes the second quarterly budget update for Fiscal Year The following budget review provides the Commission with the second quarter bank account balances and a comprehensive overview of the LAFCO revenue and expenditures from October 1, 2013 through December 31, 2013 on pages 8-9. Revenues The majority of LAFCO s FY revenue ($948,553) is from the funding agencies apportionments ($926,682) and was received during the first quarter (July-September). In addition to the apportionments, LAFCO also earns interest from its investment portfolio. In the second quarter, LAFCO earned approximately $833 in interest. As of 12/31/13 Balance Wells Fargo Checking $ 99,628 Wells Fargo Savings $ 210, Payroll Account $ 146,242 Total $456,281 Financial Statements The CQ report includes additional financial statements to better understand LAFCO s financial status throughout the fiscal year. The following two financial statements provide a snapshot of LAFCO s performance and details on the agency s assets, liabilities, and equity. Balance Sheet 1 This financial document (see pages 10-11) summarizes the agency s assets and liabilities during the month of December on an accrual basis, or when earnings and expenses are incurred. Cash Flow Statement This financial document (see page 12 provides information on the cash inflow and outflow the agency endured during the second quarter (October December). 1 Unaudited Subject to Change Page 6

8 Expenditures The total expenditures at the end of the second quarter are approximately thirty-six percent (36%) or $192,590 of the total balance ($1,015,965). The following table shows the funds used for the second quarter and the target for future quarters. Total funds used by Quarter 1 st Qtr. 2 nd Qtr. 3 rd Qtr. 4 th Qtr. Target 25% 50% 75% 100% Actual 17% 36% TBD TBD Investment Report To maximize funds, LAFCO deposits apportionment fees in the Local Agency Investment Fund (LAIF) and OC Fund accounts. Throughout the fiscal year, the bookkeeper and designated staff members withdraw from the accounts to cover the agency s operational expenses. The following table illustrates the balance of LAFCO s investment portfolio at the end of the second quarter: As of 12/31/13 Balance LAIF $304,993 OC Fund $505,102 Total $810,095 During the second quarter, LAFCO earned approximately $833 in interest, which is approximately thirty-three percent (33%) of the projected interest earnings for current fiscal year. Page 7

9 Page 8 Orange County Local Agency Formation Commission Quarterly Overview July 1, 2013 through December 31, st Qtr 2nd Qtr TOTAL Funds Used Funds Jul-Sep Oct-Dec FY Budget (%) Comparison Ordinary Income/Expense ($) Income Revenue Revenue (-) means funds LAFCO Apportionment $926, $926, % over expected Filing Fees $9, $10, $ Misc Revenue $1, $0.00 $ Interest & Dividends $ $ $2, % $1, Total Revenue $937, $11, $929, % -$19, Total Income $937, $11, $929, % -$19, Expense (+) funds Expense remaining (-) Expenditures underbudgeted Salaries $75, $72, $405, % $257, Benefits & Insurance $ Optional Benefit Plan $ $0.00 $18, % $18, Executive Deferred Comp $ $ $6, % $6, Retirement Benefits $24, $18, $116, % $91, Health Care Insurance $10, $9, $46, % $35, Retiree Health Benefits $0.00 $5, $13, % $13, Dental Insurance $1, $ $5, % $4, Life Insurance $ $ $1, % $ Workers Compensation $0.00 $0.00 $2, % $2, Medicare $ $ $5, % $4, Unemployment Insur -$31.00 $0.00 $1, % $1, Salary Continuance $ $ $1, % $1, Accidental Death Insur $21.00 $18.00 $ % $ Executive Employee Insur $1, $1, $7, % $5, Total Benefits & Insurance $41, $38, $226, % $185, Information Technology $1, $ $8, % $6, Telephone $ $1, $8, % $7, County of Orange $ $ $5, % $5, General Liability Insur $3, $3, $14, % $10, Maintenance-Building $0.00 $ $ % $ Membership $3, $10, $29, % $25, Office Equipment/Supplies $1, $2, $15, % $13, Office Contract Labor $0.00 $0.00 $8, % $8,200.00

10 Professional Services Legal $3, $15, $56, % $52, Accounting/Audit $7, $13, $37, % $29, Human Resource $0.00 $ $1, % $1, Mapping/Archiving $3, $0.00 $8, % $4, Other Professional Service $5, $11, $75, % $69, Total Professional Services $20, $40, $177, % $156, Investment Admin Fees $ $ $ % $ SBE $0.00 $ $0.00 $ Public Noticing $ $ $10, % $9, Postage $ $ $3, % $2, Office Lease $9, $10, $40, % $30, Equipment Leases/Maint $1, $1, $7, % $6, Commission & Staff Expense $ $1, $8, % $7, Commission Stipends & Taxes/Fees $3, $3, $16, % $12, Staff Training $0.00 $ $5, % $5, Transportation/Travel $7, $2, $25, % $17, Commission Meeting Exp $0.00 $ $2, % $2, Total Expenditures $169, $192, $1,015, % $846, Page 9

11 LOCAL AGENCY FORMATION COMMISSION ORANGE COUNTY BALANCE SHEET DECEMBER 31, 2013 Dec 31, 13 ASSETS Current Assets Checking/Savings Cash and Investments 1000 County Acct-Payroll 146, Wells Fargo Checking 99, Wells Fargo Savings 210, OC Fund 505, Investment Acct - LAIF 304, Total Cash and Investments 1,266, Total Checking/Savings 1,266, Accounts Receivable Accounts Receivable 1200 Accounts Receivable 0.01 Total Accounts Receivable 0.01 Total Accounts Receivable 0.01 Other Current Assets Other Current Asset 1300 Interest Receivable - Other Prepaid Expenses - Other 21, Retirement Prepaid Expense 80, Due from Other Governments 0.10 Total Other Current Asset 101, Total Other Current Assets 101, Total Current Assets 1,368, Other Assets Other Assets 1575 Pension Deposit 105, Total Other Assets 105, Total Other Assets 105, TOTAL ASSETS 1,473, Page 10

12 LIABILITIES & EQUITY Liabilities Current Liabilities Other Current Liabilities Current Liabilities 2050 Salaries Payable - OC (9050) 19, Total Current Liabilities 19, Total Other Current Liabilities 19, Total Current Liabilities 19, Total Liabilities 19, Equity 3000 Unrestricted Net Assets 754, Restricted Net Assets 3950 Reserve for Contingency 100, Reserve for Litigation 75, Reserve for Unfunded Liability 30, Reserve for Special Projects 31, Total 3050 Restricted Net Assets 236, Retained Earnings -122, Net Income 586, Total Equity 1,454, TOTAL LIABILITIES & EQUITY 1,473, Page 11

13 LOCAL AGENCY FORMATION COMMISSION ORANGE COUNTY STATEMENT OF CASH FLOWS OCTOBER TO DECEMBER 2013 Oct - Dec 13 OPERATING ACTIVITIES Net Income -181, Adjustments to reconcile Net Income to net cash provided by operations: Other Current Asset:1300 Interest Receivable - Other Other Current Asset:1375 Prepaid Expenses - Other -6, Other Current Asset:1376 Retirement Prepaid Expense 47, Current Liabilities:2050 Salaries Payable - OC (9050) 7, Net cash provided by Operating Activities -133, INVESTING ACTIVITIES Other Assets:1575 Pension Deposit -105, Net cash provided by Investing Activities -105, Net cash increase for period -239, Cash at beginning of period 1,505, Cash at end of period 1,266, Page 12