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HomeMy WebLinkAboutMinutes - Water Finance Subcommittee - 9/11/2009 ACTION SUMMARY MINUTES ORO VALLEY WATER UTILITY COMMISSION FINANCE SUBCOMMITTEE MEETING SEPTEMBER 11, 2009 ORO VALLEY WATER UTILITY CONFERENCE ROOM 11000 N. LA CANADA DRIVE ORO VALLEY,AZ CALL TO ORDER at 3:05 p.m. PRESENT: Winston Tustison, Chair, Finance Subcommittee Elizabeth Shapiro, Member, Finance Subcommittee Philip C. Saletta, Water Utility Director Shirley Seng, Water Utility Administrator 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. Discussion regarding key assumptions used in all financial scenarios i. Growth rates, inflation rates, interest rates, vacant accounts, personnel and O&M costs, capital improvements, CAP costs, recharge costs, CAGRD costs, debt service and debt service coverage requirements c. Discussion regarding specific assumptions used in different financial scenarios i. Proposed WIFA loans this year and in future years ii. Proposed increases in the Groundwater Preservation Fees (GPF) iii. Proposed increases in the base and commodity rates d. Baseline Financial Scenario i. Does not include any rate increases including GPF, does not include any financing e. Financial Scenario A i. Includes proposed WIFA loan in FY 09-10 and GPF increases in all years ii. Does not have any increases in base and commodity rates iii. Does not meet all financial criteria f. Financial Scenario B i. Includes proposed WIFA loans in FY 09-10 and FY 11-12 ii. Includes GPF increases in all years iii. Does not have any increases in base and commodity rates iv. Does not meet all financial criteria g. Financial Scenario C i. Includes proposed WIFA loans in FY 09-10 and FY 11-12 ii. Includes GPF increases in all years iii. Includes base and commodity rate increases in FY 12-13 and FY 13-14 iv. Meets all financial criteria h. Discussion on adding additional financial scenarios that do not include financing capital projects—increase all rates to pay for capital projects w 2. WIFA Loan Agreement Discussed need for WIFA financing in FY 09-10. Received consensus that WIFA loan be recommended for Commission approval Adjourned at 5:05 p.m. Prepared by: Shirley Seng, Water Utility Administrator