HomeMy WebLinkAboutMinutes - Water Finance Subcommittee - 10/10/2013 ACTION SUMMARY MINUTES
ORO VALLEY WATER UTILITY COMMISSION
FINANCE SUBCOMMITTEE MEETING
OCTOBER 10, 2013
WATER UTILITY CONFERENCE ROOM
11000 N. LA CANADA DRIVE
ORO VALLEY, AZ 85737
CALL TO ORDER at 10:08 a.m.
PRESENT: Winston Tustison, Chair, Finance Subcommittee
Elizabeth Shapiro, Member, Finance Subcommittee
Robert Milkey, Chair, Water Utility Commission
Shirley Seng, Water Utility Administrator
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. Discussion and possible action regarding the cost of service study and water rates
a. Discussion regarding revenue neutral rate structure
i. Meets financial criteria in 4 of 5 years
1) Year 3 of 5 debt service coverage is just short of requirement
2) May not be a factor depending on growth, future income & expenses
ii. Discussed the ending cash balances in each fund
iii. Discussed the reduction in operating costs in the last 2 years of the 5 year
projection period.
b. Consensus among Commissioners that they will recommend this financial scenario to
the full Commission at their meeting on October 14, 2013.
c. Handouts included a draft rate schedule and the preferred financial scenario proforma
2. Discussion and possible action regarding the impact fee analysis
a. Discussed the proposed Alternative Water Resources Development Impact Fees
i. Groundwater Preservation Fees will be moved out of the impact fee fund and
back into the Operating Fund
ii. Existing customers benefit from reclaimed water use
1) GPF will be used to repay the debt associated with the reclaimed water
system
b. The impact fee study was posted to the Town's website on 10/4/13
i. This was a time critical milestone
ii. The first public hearing will be held on 12/4/13 as planned
c. Reviewed the approval process and schedule
i. Two public hearings prior to Council adoption
ii. Estimating Town Council adoption on April 2, 2014
iii. New impact fees would become effective on June 1, 2014
Adjourned at 11:00 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 10th day of October 2013. I further certify
that the meeting was duly called and held and that a quorum was present.
Prepared by:
Shirle ng, Water U .lity ministra