HomeMy WebLinkAboutMinutes - Water Finance Subcommittee - 3/3/2009 ACTION SUMMARY MINUTES
ORO VALLEY WATER UTILITY COMMISSION
FINANCE SUBCOMMITTEE MEETING
MARCH 3,2009
ORO VALLEY WATER UTILITY CONFERENCE ROOM
11000 N. LA CANADA DRIVE
ORO VALLEY, AZ
CALL TO ORDER at 5:46 p.m.
PRESENT: Winston Tustison, Chair, Finance Subcommittee
Elizabeth Shapiro, Member, Finance Subcommittee
Robert Milkey, Commission Member
Philip C. Saletta, Water Utility Director
Shirley Seng, Water Utility Administrator
Discussion of the following items, no legal action taken:
1. Discussion regarding financial projections for the Water Utility
a. Overview of financial projection for the General Fund
b. Overview of projected EDUs in FY 08-09 and future years
c. Compare projections for the 3 funds in the Water Utility
i. Projections in Rates Analysis & Budget for FY 08-09
ii. Projections for Estimated Actuals at end of year FY 08-09
iii. Projections in Rates Analysis for FY 09-10
iv. Projections in Proposed Budget for FY 09-10
v. Projected debt service coverage ratio for FY 09-10
2. Discussion regarding water rates
a. Discussed budgeted projections for FY 08-09 and how the projections could
change based on the projected debt service coverage ratio
b. Discussed timing of potential increase in GPF
i. July 2009 or January 2010 for implementation of possible increase
c. Discussed rate increases during difficult economic times
3. Update on potential WIFA financing for capital projects
a. Discussed Oro Valley's placement on the WIFA Project Priority List
i. Ranked 50, 51 and 52 with an 85% subsidy rate
b. Discussed the potential for"forgiven principal" and low interest rates
c. Consensus reached to move forward with obtaining Town Council's authorization
for additional WIFA debt
i. The Water Utility Commission will make their formal recommendation on
March 9, 2009 at their regular meeting
Adjourned at 7:10 p.m.
Prepared by: Shirley Seng, Water Utility Administrator