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HomeMy WebLinkAboutMinutes - Water Utility Commission - 2/24/2015 ACTION SUMMARY MINUTES ORO VALLEY WATER UTILITY COMMISSION FINANCE SUBCOMMITTEE MEETING FEBRUARY 24, 2015 WATER UTILITY CONFERENCE ROOM 11000 N. LA CANADA DRIVE ORO VALLEY, AZ 85737 CALL TO ORDER at 10:05 a.m. PRESENT: Winston Tustison, Chair, Finance Subcommittee JavierArriaga, Member, Finance Subcommittee Shanna Weagle, Member, Water Utility Commission Shirley Seng, Water Utility Administrator Jeffrey Kane, Meter Operations Supervisor Philip Saletta, Water Utility Director Stacey Lemos, Finance Director Call to the audience No public attendance at the meeting. Discussion of the following items occurred and no action was taken: 1. Groundwater Preservation Fees a. Discussed the current policy on revenue received from groundwater preservation fees (GPF) — handout: Establishment of Groundwater Preservation Fee from 2003 Water Rate Report b. Discussed what type of capital expenditures could be financed with GPF revenue based on the existing policy c. Reviewed the history of GPF increases since it was established in 2003 —handout: History of Groundwater Preservation Fees d. Discussed the Town Council's request for staff to review the GPF for potential reduction as long as there is no adverse financial impact to the utility e. Discussed the available GPF cash as shown in the Preferred Financial Scenario in the 2014 Water Rates Analysis Report— handout: Five-Year projections on the Groundwater Preservation Fees f. Discussed preparing two separate financial scenarios i. Decreasing the GPF ii. GPF to finance all costs associates with CAP wheeling iii. Scenarios will be presented to the Finance Subcommittee at next meeting tentatively scheduled for 3/31/15 2. Cash Reserve Policy a. Discussed the current policy on cash reserves — handout: Cash reserve policy from the Mayor and Town Council Water i. Need to amend the policy for clarity ii. Review cash reserve policies of other utilities and municipalities iii. Proposed cash reserve options to be presented to the Finance Subcommittee at the next meeting tentatively scheduled for 3/31/15 3. Financial Update a. Discussed the need to provide a financial update to the Water Utility Commission since there are newer members who are not familiar with the utility i. This will be done at a later date when the Finance Subcommittee has completed the work on the GPF and the cash reserve policy Adjourned at 11:09 a.m. I hereby certify that I prepared the foregoing minutes and that they are a true and correct copy of the minutes of the Finance Subcommittee meeting held on the 24rd day of February 2015. I further certify that the meeting was duly called and held and that a quorum was present. Prepared by: Shirle ng, Water ility A ini ,tor