HomeMy WebLinkAboutMinutes - Water Finance Subcommittee - 8/26/2009 ACTION SUMMARY MINUTES
ORO VALLEY WATER UTILITY COMMISSION
FINANCE SUBCOMMITTEE MEETING
AUGUST 26, 2009
ORO VALLEY WATER UTILITY CONFERENCE ROOM
11000 N. LA CANADA DRIVE
ORO VALLEY, AZ
CALL TO ORDER at 5:35 p.m.
PRESENT: Winston Tustison, Chair, Finance Subcommittee
Elizabeth Shapiro, Member, Finance Subcommittee
Philip C. Saletta, Water Utility Director
Shirley Seng, Water Utility Administrator
Art Cuaron, Finance Analyst
Discussion of the following items, no legal action taken:
1. Discussion Regarding Water Rates Analysis
a. Schedule for analysis and implementation of proposed water rates
i. No changes made to schedule
b. Debt service coverage
i. Discuss new debt service coverage policy
1) will be in compliance with bond covenants & Town's Financial &
Budgetary Policies
c. Growth trends
i. Discussed revised projected growth trends
ii. Will use 60 new connections in FY 09-10 & 75 in all other years
iii. Will apply EDU equivalent to impact fee & meter revenue projections
iv. Will be consistent with Town's growth projections
d. Inflation factors
i. Discussed using inflation rates provided by the University of Arizona, Eller
School of Business Management
ii. Will be consistent with Town's financial projections
e. Water sales
i. Projections include reduced water sales based on historical water use in 2008
ii. Average residential water use in 2008 was 8,093 gallons per month
iii. All water use down, not just residential
f. Future financing
i. Will perform scenarios with and without WIFA financing
ii. Discussion on potential interest rate from WIFA at time loan closes
g. CAP water delivery
i. Discussed the potential for an interim use of CAP water that would be delivered
by Tucson Water using Oro Valley's CAP allotment
h. Discussed first draft of baseline proforma
Adjourned at 7:05 p.m.
Prepared by: Shirley Seng, Water Utility Administrator