REIMBURSEMENT AND COMPENSATION POLICY

Eligible Travel Related Expenses. Employees and Directors traveling on District related business shall be eligible for reimbursement of travel expenses.

Eligible travel related expenses shall include, but not be limited to, the following:

• Transportation on public carriers such as airplanes, trains, buses and taxi cabs;
• Private vehicle use and commercially available rental vehicles;
• Overnight lodging at commercial establishments;
• Meals at restaurants and other food service establishments;
• Conference and seminar fees and charges;
• Business related telephone calls, faxes, postage, copy charges and related incidentals;
• Tolls and parking fees
• Such other expenses approved by a majority of the Board of Directors.

Limitation on Reimbursable Expenses. Reimbursement for travel related expenses shall be for actual costs subject to the following limitations:  (Amended by minute order 1-28-19)

• Reimbursement for meals not covered as part of the event or hotel registration fee shall be limited to the following amounts: Breakfast – $13.00; Lunch – $20.00; Dinner – $30.00
  • Exception to the meal limits – The meal limits above may be exceeded if the total cost of the meal is documented to be the lowest total cost option under the circumstance. For example: A modest breakfast in a hotel hosting a training event may be a savings to the District compared to a meal within the spending limits plus the cost of a taxi cab or rental car to travel to and from the restaurant. Documentation and review to support the exception must be submitted.
• Use of a personal vehicle: The current Internal Revenue Service (IRS) mileage rate for business travel shall be the only personal vehicle use expense eligible for reimbursement;
• Air and train travel shall be in an amount not to exceed the standard or coach fare;
• Entertainment or non-business related events or expenses not provided as part of the conference fee shall not be eligible for reimbursement;
• Alcoholic beverages are not eligible for reimbursement;
• Meals and/or lodging provided in a private home are not eligible for reimbursement;
• Travel related expenses for a spouse or companion shall not be eligible for reimbursement;
• Rental vehicle reimbursement shall not exceed the midsize vehicle rate.

Reimbursement Claim Required. Employees and Directors authorized to travel for District related business shall complete a claim form and provide supporting receipts in order to receive reimbursement. No reimbursement shall be made, unless a completed and signed claim form with corresponding receipts is submitted to the District office within ninety-days of travel.

Use of District Credit Card and Travel Advances. On approval of the General Manager a travel advance, or District credit card may be issued to an Employee or Director for travel. Travel advances shall not exceed an amount up to the estimated balance of expenses associated with the travel. Within ten (10) days of return from the function, the Employee or Director shall submit a claim with corresponding receipts for the travel. The General Manager shall reconcile the expenditures against District reimbursement policy and determine if any balance is due the District. The Employee or Director will reimburse the District within ten (10) days, or the balance will be taken from any compensation owed to the Employee or Director.

FINANCIAL AND OPERATING AND RESERVES POLICY

(Amended by minute order 4-15-19)

3.09.150 Cash Reserve Policy

The Rio Linda / Elverta Community Water District reserve policy is a financial policy guided by sound accounting principles of public fund management. The policy establishes several reserve funds to minimize adverse annual budgetary impacts from anticipated and unanticipated District expenses.

The adequacy of the target reserve year-end balance ranges and/or annual contributions will be reviewed annually during the budgeting and rate setting process and may be revised accordingly as necessary.

The District reserves can be classified into two categories that include Restricted for Debt Service and Restricted Other Purposes.  A “fund” is a segregation within the District’s accounting system to keep sources and uses for a particular purpose easily identifiable and reportable.

Restricted for Debt Service:  Funds that are used to account for accumulations of resources that are restricted for principal and interest.

Restricted for Other Purpose: Funds that are used to accumulations of resources that are restricted for other purposes not included in Debt Service restricted assets.

The following District reserve funds are restricted for debt service:

1. Surcharge 1 Account

• 1.1.       Purpose: To pay the semi-annual payments per the 2011 Safe Drinking Water State Revolving Fund loan of $7,179,072.79. This account will be closed after repayment of the loan or 20 years from the project completion date. The account shall be maintained and administered by the Fiscal Agent.
• 1.2.       Target Balance: Per Article B-4, a minimum of $80,320 shall be deposited into the account every other month until the loan is repaid in full.
• 1.3.       Methodology/Rational: The State of California set the amount of $19.00 per connection per billing period for loan repayment.
• 1.4.       Use of Funds: The funds will be used only for payment of principal and/or interest on the loan or any delinquencies until loan is repaid in full per funding agreement Section 13 Fiscal Services and Deposit Account Control Agreement.
• 1.5        Funding: A surcharge fee of $19.00 per billing cycle is charged to each active account and collected as a primary source of funds.

2. Surcharge 1 Reserve Fund 

• 2.1.       Purpose: To establish a reserve as required by our 2011 Safe Drinking Water State Revolving Fund (SDWSRF) funding agreement # SRF111CX107, Article B-4 Reserve Fund. The Reserve Fund shall be maintained and administered by the Fiscal Agent.
• 2.2.       Target Balance: The target balance is equivalent to two (2) loan payments or a minimum of $481,917.00 per funding agreement Article B-4.
• 2.3.       Methodology/Rational: To assure that funds will be available to make the semi-annual payments when due.
• 2.4.       Use of Funds: The funds will remain in this account until the loan is paid off per our loan agreement.
• 2.5.       Funding: The reserve is fully funded.

3.  2015 Water Revenue Refunding Bond Service Fund

• 3.1.       Purpose: To make semi-annual bond payments.
• 3.2.       Target Balance: The amount equivalent to the amount payable on the bonds semi-annually.
• 3.3.     Methodology/Rational: : The District deposits a set amount per month in to this reserve from the Operating Fund to have funds to pay the bond payments when due.
• 3.4.     Use of Funds: These funds are used exclusively to repay the 2015 Bond debt.
• 3.5.     Funding: The set amount is paid by the Operating Fund per month to build up enough money for payment of the bonds when due.

4.  Surcharge 2 Account

• 4.1.       Purpose: Maintained by the District into which collected Surcharge #2 revenues are deposited per the 2018 Installment Sale Agreement with OPUS Bank for the Project outlined in Exhibit B. This account will be closed after repayment of the loan.
• 4.2.       Target Balance: The amount equivalent to the loan amount payment semi-annually.
• 4.3.       Methodology/Rational: The surcharge imposed by the District for the Project pursuant to its Ordinance No. 2016-02.
• 4.4.       Use of Funds: The funds will be used only for payment of principal and/or interest on the loan, or any delinquencies until loan is repaid in full per installment agreement Article IV, Section 4.4.
• 4.5.       Funding: A surcharge fee collected at the rate of $7.90 for each water connection, increasing to $15.80 for each water connection on July 20, 2018.and collected as a primary source of funds for loan repayment.

The following District reserve funds are restricted for other purposes:

5. Operating Reserve Fund

• 5.1.       Purpose: To provide an emergency reserve fund to cover temporary cash flow deficiencies caused by timing differences between revenues and expenditures.
• 5.2.       Target Balance: Funding shall be a minimum of one month of cash to fund District operating expenditures.
• 5.3.       Methodology/Rational: The District is required to have sufficient cash flow to meet the next six months of budgeted District expenditures (Government Code Section 53646(b)(3)). This fund is included as a source of cash flow to satisfy this requirement.
• 5.4.       Use of Funds: These funds may be used to cover temporary cash flow deficiencies caused by timing differences and/or unexpected decreases revenue and expenses .
• 5.5.       Funding: At each fiscal year budget, an analysis will be performed to determine the minimum target balance based upon the previous fiscal year’s average monthly expenditures. Additionally, interest earnings will be accrued on and added to fund balance, using the District’s earnings rate on investments.

6.  OPEB or GASB 75 Fund 

• 6.1.       Purpose: To provide a source of income to fund post-retirement benefits.
• 6.2.       Target Balance: None.
• 6.3.       Methodology/Rational: Government Code Section 22940 establishes in the State Treasury the Annuitants’ Health Care Coverage Fund for the prefunding of health care coverage for annuitants (Prefunding Plan); and the California Public Employees’ Retirement System (CalPERS) Board of Administration (Board) has sole and exclusive control and power over the administration and investment of the Prefunding Plan (also referred to as CERBT).
• 6.4.       Use of Funds: To be used to fund post-retirement benefits costs, e.g. retiree medical insurance benefits obligated via applicable collective bargaining agreements.
• 6.5.       Funding: The annual Operating Budget will determine the funding amount. The funds will be paid through the Operating Fund.

7.  Capacity Fee Reserve 

• 7.1.       Purpose: To provide funds for the orderly and timely expansion of the District facilities to meet future demand and to maintain and/or improve the District’s existing level of service.
• 7.2.       Target Balance: AB1600 does not designate a target reserve balance. A Government Code 66000 Compliance Report identifies the proposed capital projects necessary to maintain and/or improve services and the amount needed to fund those capital projects. In accordance with Government Code 66000, the balance shall not exceed the amount specified by that law.
• 7.3.       Methodology/Rational: Virtually all development that occurs within the District requires the use of District facilities, plant and equipment for public services. This fee is established to insure the adequacy and reliability of such facilities, plant and equipment as development of undeveloped land occurs.
• 7.4.       Use of Funds: The funds generated by the fee will be used to acquire, replace and/or construct various capital facilities, plant and equipment for the provision of water, security and administrative services.
• 7.5.       Funding: Annual contributions from developer fees will depend upon new construction within the District. Additionally, interest earnings will be accrued on and added to fund balance, using the District’s earnings rate on investments.