local agency formation commission · remaining in the 4th quarter, which will end on june 30, 2012....

Local Agency Formation Commission

Orange County

12 Civic Center Plaza, Room 235, Santa Ana, CA 92701

(714) 834-2556 FAX (714) 834-2643 http://www.oclafco.org

CHAIR

Charley Wilson

Director Santa Margarita Water District

VICE CHAIR

Susan Wilson

Representative of

General Public

Pat Bates

Supervisor 5

th District

Joe Carchio

Councilmember City of Huntington Beach

Peter Herzog

Councilmember City of Lake Forest

John Moorlach

Supervisor 2

nd District

John Withers

Director Irvine Ranch Water District

ALTERNATE

Bill Campbell

Supervisor 3

rd District

ALTERNATE

James Fisler

Director Mesa Consolidated Water District

ALTERNATE

Derek J. McGregor

Representative of General Public ALTERNATE

Bob Ring

Councilmember City of Laguna Woods

Joyce Crosthwaite

Executive Officer

July 11, 2012

TO: Local Agency Formation Commission FROM: Executive Officer Policy Analyst SUBJECT: Comprehensive Quarterly Report The attached provides a quarterly report on LAFCO’s two best practices programs (Shared Services and Fiscal Trend Analysis) and the FY 2011-2012 budget. The Commission will receive a complete review of the FY 2011-2012 Work Plan and budget in August 2012. RECOMMENDATION Staff recommends the Commission: 1. Receive and file the attached Comprehensive Quarterly Report. Respectfully submitted, _____________________ ________________ JOYCE CROSTHWAITE JOE SERRANO Attachment: CQ Report

8b

FY 2011-2012 Comprehensive Quarterly Report

ORANGE COUNTY LAFCO ATTACHMENT A

Shared Services -

Grabbing

attention in OC

and around the

State.

More on Page 1

Fiscal Trends

Analysis-

Unlocking the

mystery of

financial

statements.

How on Page 3

OC LAFCO

Budget &

Investment

Review on Page 4

Read about the “buzz” created by LAFCO’s CIP Map! Page2

Comprehensive Quarterly Report | 1

This edition of the

Comprehensive Quarterly

Report (CQ Report) provides

an update on the two web-

based programs developed by

OC LAFCO: the Shared

Services and Fiscal Trend

Analysis Programs.

Additionally, the report

provides the Commission with

an overview of the agency’s

current budget and an

evaluation of the investment

portfolio.

While cities and special

districts look for alternative

methods to reduce costs, the

first choices may comprise of

downsizing, reduction in

services provided, or increase

in fees. However, some Cities

such as Brea, Garden Grove

and Rancho Santa Margarita

have partnered with

neighboring agencies to save

money. The Shared Services

Program makes it easier for all

public agencies to find cost-

savings opportunities.

More Info at www.oclafco.org

Next Generation of Municipal

Service Reviews (MSRs)

Introduction of the Shared Services and Fiscal Trend Analysis

Programs enhanced the participation of Orange County local

agencies in the exploration of sharing resources. Over the past two

years, both programs resulted in the formation of stakeholder

working groups, subsequent meetings, and the implementation of

new features.

This CQ report provides an update on the programs that are

becoming well-known across the County and State as innovative

approaches to MSRs.

Shared Services Program Update!

The Shared Services Program officially went live on July 1st, 2011.

The program is a valuable resource to cities, special districts, the

County, non-profit HOAs, and school districts. Since the launch, 24

agencies have come aboard and have listed municipal services they

are interested in providing or receiving from other agencies.

Current Matches

The Program has identified over 21 different matches for services –

with fleet maintenance being the most popular match. On June 28,

2012 LAFCO co-hosted a roundtable discussion with the City of

Costa Mesa. A total of 13 different agencies shared their vision in

collaborating not only with fleet maintenance but other forms of

partnerships, particularly joint purchases. The working group also

developed deliverables: hosting a countywide shared services

summit and producing a white paper discussing shared

opportunities in Orange County. LAFCO scheduled another meeting

with the working group in the next couple of months.

A New Feature – Capital Improvement Plan Map

The Shared Services Program experienced a revolutionary change in

early 2012 when the CIP map first appeared as its newest

component. The map alters the way agencies review upcoming

agency projects.

Overview

Shared Services Recap

http://www.oclafco.org/


Introducing the

CIP Map

The Shared Services Program

now offers agencies the

chance to view all capital

improvement projects

scheduled in Orange County

without reading a single

budget report or request for

proposal.

Created by LAFCO, the CIP

map is interactive and a

virtual database that provides

a detailed description and

location of each project

throughout the County. As

shown in the graphic (to the

right), all projects are

referenced by location

markers and are used to help

agencies find similar projects

for opportunities of joint-

purchases or equipment

distribution.

Public and Private

Connection

In April, LAFCO staff

presented the Shared Services

Program and CIP Map to the

Orange County Business

Council (OCBC) and received

high regards on its ability to

help build relationships

between local agencies. As a

means to encourage public

and private partnerships, the

map is now available on

LAFCO’s website.

Upcoming Feature

LAFCO staff continues to take

the Shared Services show on

the road where many great

ideas are originated.

Currently under development

and based on the feedback

from MWDOC member

agencies, is the latest

component: the “Cooperative

Agreements Database.” This

database will include

countywide agreements that

involve sharing of services

and resources among public

agencies. This new feature is

expected to be complete by

end of Fall 2012.

Next Stop…

Sacramento!

The Sacramento Area Council

of Governments (SACOG)

expressed interest in the

Shared Services Program and

requested a virtual tour.

LAFCO will first present the

Shared Services Program next

month to the SACOG staff. A

subsequent presentation may

be given to Sacramento

elected officials.


Fiscal

Trend

Analysis

“We want more

transparency!” For the

past few years, there

has been a public

outcry for more local

government

transparency.

One of LAFCO’s MSR

determinations is to

review the “financial

ability to provide

services” for all cities

and special districts

within its respective

county. The OC Fiscal Trend

Analysis provides information

on the financial conditions of

local agencies through a user-

friendly platform.

This program fulfills LAFCO’s

fiscal determination and

brings a new perspective on

reviewing financial

information already provided

by our public agencies.

Latest Outreach

On May 10, 2012, LAFCO staff

presented the Fiscal Trend

Analysis program to Finance

Officers throughout OC for

feedback from the experts

and recommendations on the

program. Interested agencies

will participate in the new

working group over the next

few months to discuss the

program and select additional

financial indicators.

Next Steps

Staff is currently updating the

program with the most recent

data from 2011 CAFRs. The

revisions to the program will

be available for review by the

Commission and local

agencies in the fall of 2012

and is expected to include

two new indicators.

The program may also see a

new approach on evaluating

agencies’ health by

introducing benchmarks or

other forms of measurements

to prevent any negative

impact to service

performance.


This budget update (shown on pages 6-7) provides a detailed overview of the revenue and expenditures

for the months of July 2011 – May 2012. The update also includes an overview of the agency’s investment

return and a recap of the third quarter.

Expenditures As of May 31, 2012, the expenditure balance was $852,492, which is approximately 74% of the total

budget. The following table shows the funds used in each quarter. There is still one more month

remaining in the 4th Quarter, which will end on June 30, 2012. There is approximately $294,000 remaining

in the budget to cover the rest of LAFCO’s upcoming expenses. Staff projects the budget to be slightly

under at the end of FY 2011-2012.

Total funds used by Quarter

1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr.

(as of 5/31)

Target $286,625 $573,250 $859,875 $1,146,500

Actual $209,198 $450,715 $703,185 $852,492

Funds Remaining in FY 11-12 Budget $294,008*

*Note – June data not included. Info available in July/August.

FY 2011-12

Budget Update


Banking Accounts

LAFCO is currently in the 4th Quarter (April-June).

A complete analysis of FY 11-12 will be provided

in August 2012. The following bank account

balances are as of May 31, 2012:

As of May 31, 2012 Balance

Wells Fargo Checking $198,001.48

Wells Fargo Savings $210,267.31

770-Payroll Account $104,851.54

Total $513,120.33

Balance Sheet1 This financial document (see page 8) summarizes the agency’s assets and liabilities during the month of March on an accrual basis, or when earnings and expenses are incurred.

Cash Flow Statement This financial document (see page 9) provides information on the cash inflow and outflow the agency endured during the third quarter (January – March).

1 Unaudited – Subject to change

Investment Portfolio

As previously stated, LAFCO is currently in the 4th

Quarter (April-June). The following table

illustrates the balance of LAFCO’s investment

portfolio at the end of May:

As of May 31, 2012 Balance

LAIF Account $259,952.72

OC Fund Account $217,550.41

Total $477,503.13

To maximize funds, LAFCO deposits the

apportionment fees in the LAIF and OC Fund

accounts. Throughout the fiscal year, funds are

withdrawn from the accounts to cover

operational expenses.

The total interest earned from the LAIF, OC Fund

and payroll account since July 1st 2011 is

$3,522.23, which is approximately forty-three

(43%) of the projected interest earnings for

current fiscal year. Based on the current

trending, it is expected that LAFCO will not meet

the forecasted interest earning for FY 2011-2012.

FY 2011-2012

Budget Report

FY 2011-2012

Investment Review


Orange County Local Agency Formation Commission

Quarterly Overview

July 1, 2011 through May 31, 2012

1stQtr Jul-Sep

2nd Qtr Oct-Dec

3rd Qtr Jan-Mar

4th Qtr April-May

TOTAL FY 11-12 Budget

Funds Used

Funds Comparison

($)

(%)

Revenue

Use of Unrestricted Reserve Funds $211,617.00 $211,617.00

4000 - Apportionments $926,682.00 $926,683.00

4150 - Misc Revenue $399.21 $274.35 $284.00 $0.00 $0.00

4200 - Inter & Dividends $1,424.16 $1,002.72 $1,095.35 $702.30 $8,200.00 51.5% -$3,975.47

Total Revenue

$1,140,122.37 $1,277.07 $1,379.35 $702.30 $1,146,500.00 99.7% $3,018.91

(+) funds remaining

Expenditures

(-) under budgeted

5000 - Salaries

$100,223.31 $99,124.63 $91,258.32 $67,303.89 $409,100.00 87.5% $51,189.85

5100 - Benefits & Insur

5102 - Opt Benefit Plan $1,750.00 $0.00 $18,500.00 $0.00 $24,500.00 82.7% $4,250.00

5104 - Exe Defer Comp $907.77 $959.76 $1,105.22 $639.84 $6,200.00 58.3% $2,587.41

5106 - Retire Benefits $31,510.88 $21,747.75 $32,285.54 $15,174.19 $155,400.00 64.8% $54,681.64

5108 - Health Care Ins $11,976.20 $11,749.17 $16,504.93 $9,707.28 $39,600.00 126.1% -$10,337.58

5110 - Dental Insur $942.15 $856.50 $1,487.50 $850.00 $4,600.00 89.9% $463.85

5112 - Life Insurance $214.76 $190.56 $191.80 $109.60 $900.00 78.5% $193.28

5114 - Workers Comp $437.49 $437.49 $337.77 $269.50 $1,900.00 78.0% $417.75

5116 – Medicare $1,286.01 $1,277.52 $1,714.41 $1,429.40 $5,900.00 96.7% $192.66

5118 – Unemploy Insur $239.16 $243.05 $279.63 $161.00 $1,100.00 83.9% $177.16

5120 - Salary Contin $255.98 $264.70 $305.36 $175.32 $800.00 125.2% -$201.36

5122 - Acc Death Insur $33.58 $28.98 $30.52 $17.44 $100.00 110.5% -$10.52

5124 - Other EE Insur $0.00 $0.00 $0.00 $0.00 $600.00 0.0% $600.00

5125 - Exec EE Insur $1,800.00 $1,800.00 $1,800.00 $600.00 $7,200.00 83.3% $1,200.00

Total 5100 - Benefits & Insurance $51,353.98 $39,555.48 $74,542.68 $29,133.57 $248,800.00 78.2% $54,214.29

5150 - Info Technology $659.44 $2,764.62 $655.21 $556.91 $13,200.00 35.1% $8,563.82

5151 - Telephone $327.63 $1,890.06 $3,101.54 $1,119.81 $10,100.00 63.8% $3,660.96

5200 - County of Orange -$906.00 $4,147.06 -$129.25 $1,380.24 $5,100.00 88.1% $607.95

5250 - Gen Liability Ins $2,503.83 $2,496.36 $5,278.08 $2,282.40 $14,900.00 84.3% $2,339.33

5300 – Mainten Building $0.00 $134.96 $350.00 $0.00 $2,000.00 24.2% $1,515.04

5350 - Membership $2,165.99 $2,997.99 $3,867.99 $1,998.66 $20,200.00 54.6% $9,169.37


5450 - Office Equipment/Supplies $1,900.55 $2,968.43 $1,958.93 $1,225.39 $20,200.00 39.9% $12,146.70 5490 - Office Contract Labor $0.00 $6,435.69 $4,257.00 $2,075.00 $25,000.00 51.1% $12,232.31

5500 - Professl Services

5510 - Legal

$1,384.98 $18,401.50 $6,905.44 $9,198.61 $65,800.00 54.5% $29,909.47

5520 - Accting/Audit $8,487.00 $8,259.75 $7,022.25 $3,213.00 $35,400.00 76.2% $8,418.00

5530 - Human Resour $625.00 $0.00 $0.00 $0.00 $2,000.00 31.3% $1,375.00

5535 - Mapping/Archiv $0.00 $7,500.00 $3,942.98 $3,750.00 $15,200.00 100.0% $7.02

5540 - Other Profes Ser $12,353.45 $18,998.00 $24,384.00 $8,415.00 $136,600.00 47.0% $72,449.55

Total 5500 - Professional Services $22,850.43 $53,159.25 $42,254.67 $24,576.61 $255,000.00 56.0% $112,159.04

5550 - Invest Admin Fee $196.02 $92.55 $52.51 $22.03 $500.00 72.6% $136.89

5580 – SBE

$2,800.00 $300.00 $1,550.00 $0.00 $0.00 -$4,650.00

5600 - Public Noticing $0.00 $296.00 $3,173.20 $2,759.80 $15,200.00 41.0% $8,971.00

5625 - Postage

$416.04 $600.40 $747.27 $520.33 $3,000.00 76.1% $715.96

5650 - Office Lease $9,321.56 $9,506.16 $9,506.16 $6,337.44 $37,400.00 92.7% $2,728.68 5675 - Equipment Leases/Maint $1,023.74 $1,878.69 $2,221.77 $1,023.74 $9,100.00 67.6% $2,952.06

5700 - Com & Staff Exp $1,129.08 $2,321.26 $1,912.61 $1,180.14 $5,480.00 119.4% -$1,063.09 5710 – Com Stipends & Taxes/Fees $3,023.41 $3,096.28 $4,431.81 $2,938.29 $14,520.00 92.9% $1,030.21

5750 - Staff Training $75.00 $2,560.00 $501.50 $525.00 $5,100.00 71.8% $1,438.50

5800 - Transport/Travel $10,127.93 $4,751.72 $449.50 $2,127.51 $30,500.00 57.2% $13,043.34

5850 - Com Meeting Exp $6.43 $440.00 $528.00 $220.00 $2,100.00 56.9% $905.57

Total Expenditures

$209,198.37 $241,517.59 $252,469.50 $149,306.76 $1,146,500.00 74.4% $294,007.78

local agency formation commission · remaining in the 4th quarter, which will end on june 30, 2012....

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