HomeMy WebLinkAboutMinutes - Water Finance Subcommittee - 2/25/2010 ACTION SUMMARY MINUTES
ORO VALLEY WATER UTILITY COMMISSION
FINANCE SUBCOMMITTEE MEETING
FEBRUARY 25, 2010
ORO VALLEY WATER UTILITY CONFERENCE ROOM
11000 N. LA CANADA DRIVE
ORO VALLEY, AZ
CALL TO ORDER at 5:30 p.m.
PRESENT: Winston Tustison, Chair, Finance Subcommittee
Elizabeth Shapiro, Member, Finance Subcommittee
Philip C. Saletta, Water Utility Director
Shirley Seng, Water Utility Administrator
Doug McKee, Resident
Discussion of the following items, no legal action taken:
1. Groundwater Preservation Fees (GPF)
a. Reviewed the establishment of the GPF in 2003
b. Conceptual discussion on future uses of GPF revenue
i. Consider using GPF for reclaimed debt &wheeling costs of CAP thru
Tucson
ii. Consider making revenues available for all renewable water resources
c. Discussed need to continue to evaluate the use of GPF revenue
d. Need to evaluate impacts if wheeling costs are paid through the Enterprise
Fund rather than using GPF.
2. Bond Defeasance of Series 2001 Excise Tax Bonds
a. Reviewed the background of the Series 2001 Bonds
b. Debt service paid from Utility's Enterprise Fund
c. Will go before Council on 3/3/10 for formal action
d. MPC to approve later in March
e. There was consensus regarding support for the defeasance
f. Will present to Water Utility Commission on 3/8/10
3. Water Utility Cash Reserves
a. Reviewed the Mayor& Council Water Policies on cash reserves
b. Discussion resulted in consensus to increase the required cash reserves for the
Enterprise Fund
c. Further discussions at future Finance Subcommittee
d. Will present to the Water Utility Commission later in the year.
4. Prepayment of Debt Associated With the Reallocation of CAP Water
a. Reviewed the acquisition of 3,557 acre feet of CAP water reallocated to the
Town
b. Reviewed the debt associated with the reallocation
c. Utility has made 3 of 5 annual installments
d. Discussed prepayment of final 2 installments in FY 10/11 —July, 2010
e. Consensus to prepay the final 2 installments to save approximately $48,000 in
interest
f. Will present to the Water Utility Commission later in the year.
Adjourned at 6:40 p.m.
Prepared by: Shirley Seng, Water Utility Administrator