Page 4 - Yucaipa Valley Water District Board Workshop
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Workshop Memorandum 13-152
Date: September 10, 2013
Subject: Overview of the Proposed Financial Indicators Program by the Local
Agency Formation Commission (LAFCO) of San Bernardino County
On August 28, 2013, the District staff received correspondence from the Local Agency
Formation Commission (LAFCO) of San Bernardino County regarding the development of a
financial indicator program for local governments. A similar program already exists in Orange
County and can be viewed at the following website: http://oclafco.org/chart/lafco/select.php
The purpose of this agenda item is to provide a brief overview of the Orange County model and
solicit comments from the board members and public to determine if there are specific financial
indicators that should be included in the development of this program.
Financial Definitions used by Orange County LAFCO
Elastic operating revenues:
• Elastic operating revenues are those that are highly responsive to changes in the
economy and market fluctuations. The elastic revenue categories used for this indicator
include all taxes (i.e. property taxes, real property tax transfers, motor vehicle in-lieu tax,
franchise taxes, business and professional license taxes) and exclude all revenues from
fees and charges for services, which are not affected by the economy or market
fluctuations.
• This indicator also excludes other inelastic revenues including rental income and
investment income.
Net operating revenues:
• Gross revenues (total unrestricted general revenues, charges for services, operating
contributions). Does not include capital contributions and grants.
Current liabilities
• These include all liabilities due within one (1) year, including the following: accounts
payable, accrued liabilities, accrued interest payable, retentions payable, unearned
revenue, deposits payable and portions of long-term liabilities due within one year (i.e.
claims payable, bonds payable, capital leases payable, employee leave benefits
payable).
Revenues from fees and user charges:
• Program revenues or charges for services
Yucaipa Valley Water District Board Workshop - September 10, 2013 - Page 4 of 84
