Accomplishments - SMC Mosquito District Staff & Trustees

Article Source: San Mateo County Mosquito & Vector Control District

Board and Staff Accomplishments in 2018

The District’s Board and Staff made significant accomplishments in 2018. Our finances are sound, the Board has developed and used a Financial Projection model and Capital Improvement Plan in its decision-making processes. The Board reviewed and updated all of the District’s Financial policies this year. In addition, the District completed its Programmatic Environmental Impact Report and updated the District Strategic Plan.

Finances
The District is in sound financial condition with a balanced budget, designated reserves, no debt other than vehicle leases, and tools for future financial planning including a Financial Projection Model and a Capital Improvement Plan.

Audit
The Financial Audit of FY 2017-18 was completed on time and gave the District’s auditors rendered an unmodified opinion that the District’s financial statements were fairly represented and in conformity with Generally Accepted Accounting Principles (GAAP).

District Finance staff worked hard coordinating with the auditor, providing needed materials for review and answering all inquiries. The auditors interview the Manager and Finance Department staff and reviewed the District’s internal controls. They conducted testing of finance processes and examined backup documentation of randomly sampled journal entries and financial transactions. At the conclusion of their work, the auditing firm found there were no significant problems with financial information presented or internal control processes concerning District finances.

This is the first year of our contract with Badawi and Associates, the auditing firm selected by the Finance committee and Board for the FY 2017-18 audit. By law, the District is required to change auditing firms every five years. In 2018, the Finance committee distributed a Request for Proposals (RFP), reviewed submissions, interviewed firms and selected Badawi and Associates.

For the first time the District has also prepared a Comprehensive Annual Financial Report (CAFR) as well. This will be posted on the District’s website. The CAFR has been submitted to the Governmental Finance Officers Association for recognition by means of an award of excellence in financial reporting.

Review of Finance Policies
During 2018, the Finance committee, Policy Committee and Board reviewed and updated 11 of the 12 Finance Policies in the District’s Policy manual.

OPEB Trust
The Board made the decision to establish and fully fund an OPEB Trust for retiree medical obligations in 2015. All of the retiree medical expenses are now fully covered by the returns in the trust and the District carries no liability in its annual Financial Statement. Devina Walker, Mary Leong and Richard Arrow prepare a report each year near the end of the fiscal year on the amount paid for retiree medical benefits and this amount is reimbursed to the District from the trust. In 2018, the amount paid for retiree medical expenses was $28,143. The amount in the trust is sufficient to cover the District’s obligations for retiree medical expenses for all current retirees and employees for time worked to date and for the remainder of their careers here.

Pension Plan Funding – SamCERA
The District established the District Supplemental Contribution Account (DSCA) in 2015 to pay down the District’s unfunded pension liability with the San Mateo County Employee Retirement Association (SamCERA). In 2018, the Board approved an amendment to its MOU with SamCERA to shorten the recognition period for applying the funds in the DSCA to the unfunded pension liability. As a result, the Employer’s share of employee pension costs has come down dramatically from 25.61% in 2015 to 12.31% beginning July 1, 2019 and the District has now fully paid off its unfunded liability for employee pensions.

Long Term Financial Planning – Financial Projection Model, Two year Budgets, & Capital Improvement Plan

The District’s Finance Director has done a fantastic job of assisting the Board in long term financial planning. In March of 2018, the staff presented a two-year budget which is tied in to a Financial Projection model and an updated, long-term Capital Improvement Plan. The Board now uses the Financial Projection Model in its decision-making process along with the Capital Improvement Plan. In June of 2018, the Board approved a two-year balanced budget for fiscal year 2018-19 and 2019-20. The District’s financial outlook is better than expected and the Board can now consider reducing the Benefit Assessment and Special Tax for FY 2019-20.

Allocation of Fund Balance and planning for future

The Board reviews the Fund Balance annually and allocates funds among its reserves. In 2018, the Board reviewed and updated its Reserve policy and reallocated its fund balance to provide for Public Health Emergencies, Capital Project & Equipment Replacement, and Natural Disaster Emergencies. The Board set aside $100,000 in a pension rate stabilization fund to cover any future unfunded liabilities that may arise in the pension plan as a result of changes in market conditions or actuarial assumptions. This fund does not make any changes to existing or future pension benefits, which are now strictly regulated under state law.

Financial Updates – Reports to the Board

In the Spring of 2018, the Finance Committee and Board received the annual updates from the following people:
SCI Consulting on the District’s Benefit Assessment and Special Tax. SCI prepares the Engineer’s report in April and presents it to the Board to review.
Scott Hood, CEO of SamCERA on the current status and future projection of the employee pension system and Supplemental Contribution Account.
HighMark Capital, Administrator of the District’s OPEB Trust for retiree medical benefits. This report includes an update on the performance of the trust investments and current status of the account.
Badawi and Associates, an auditing firm on the results of the annual financial audit and opinion of the District’s financial processes and internal controls.

Strategic Planning

The Board’s Strategic Planning committee oversaw a complete revamping of the District’s Strategic Plan in the Spring and Summer of 2018. The completed Strategic Plan is shorter, more succinct and includes a brief description of the District, its funding and financial trends. The final Strategic Plan was approved by the Board in September 2018 and is posted on the District’s website. It will be reviewed by Board and staff annually.

Environmental Regulatory Compliance

In 2018, the Board adopted the PEIR, ending nearly a decade of effort, and more importantly, ensuring the district’s operations are in line with environmental goals for many years to come and facilitating the District’s efforts to get regulatory permits (and in many cases grants). The District’s Assistant Manager and Laboratory Director exerted an enormous amount of effort working with Cardno on completing the recirculated document and their work is much appreciated.

The PEIR also includes an update to the District’s Integrated Mosquito and Vector Control Program Plan which was adopted by the Board.

District staff also completed all of the required reports to regulatory agencies including monthly reports to the Agricultural Commissioner and Department of Pesticide Regulation, US Fish and Wildlife, and the Water Resources Control Board.

Board and Staff Training and Certification

The majority of the Board attended the Governance Foundations Workshop in December and all have renewed their training in Harassment Prevention and Ethics.

The District renewed its Certificate of Transparency in 2018. The renewal application for the District of Distinction certificate has been submitted. However, there are still a few trustees who missed the December training on Governance and will need to complete it at another workshop. Devina Walker is following up on training requirements with individual trustees. We hope to complete the requirements for renewal of this certificate by summer.

All District staff completed required units for maintaining their certificates to conduct vector control and apply public health pesticides

Public Outreach and Legislative Advocacy

Members of the District’s Board and Management staff participated in visits to members of the California State Legislature in Sacramento in the Spring of 2018 with the MVCAC. The District Manager and Assistant Manager visited federal legislators in Washington DC in May of 2018 during AMCA Washington Days. Regular updates on grassroots advocacy from the California Special Districts Association and the MVCAC were forwarded to Board members on a monthly basis throughout the year. District staff and Board members gave presentations to each of the city councils in San Mateo County during 2018. In addition, the District held an Open House in April 2018. The Open House has become an annual event and draws members of the public as well as representatives of local government.

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Robert Riechel

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Source Credit: San Mateo County CA Mosquito & Vector Control District

Phone: 650-344-8592

Web Site: http://smcmvcd.org/

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