HomeMy WebLinkAboutMinutes - Water Finance Subcommittee - 7/8/2010 ACTION SUMMARY MINUTES
ORO VALLEY WATER UTILITY COMMISSION
FINANCE SUBCOMMITTEE MEETING
JULY 8, 2010
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
Stacey Lemos, Interim Assistant Town Manager
Discussion of the following items, no legal action taken:
1. Town Budget
a. Discussion on Town budget process for FY 2010-11
i. Reduction of debt service town wide
ii. All departments cut budgets by 5%to 10%
iii. Energy efficient projects planned to reduce power costs
iv. Hiring freeze remains in effect
v. Utility reduced debt service payments by approx. $1 M
vi. Utility reduced capital spending by 24%
vii. Utility budget did not include increase in base rate or commodity rate
viii. Utility budget did include a $0.20 increase in the GPF
ix. Projected debt service coverage for the Utility based on budgeted
revenue and expenditures is 1.8 (required to have 1.3)
x. Cash reserves in the Enterprise Fund are approx. 45% of the budgeted
expenditures for FY 2010-11
2. Public Comments From 2009 Water Rate Increase
a. Handout: all public comments received during the water rate increase process
b. Discussed public comments prior to starting water rates analysis in 2010
c. Will present public comments to the Water Utility Commission on 7/12/10
3. Water Rates Analysis
a. Discussed a starting point for water rates analysis
b. Discussion regarding the first scenario included the following:
i. No increase in base rate or commodity rate
ii. Increase Groundwater Preservation Fee as planned in prior years
iii. Increase meter installation fees for new type of meter being purchased
iv. Evaluate inspection fees and plan review fees to make sure costs are
being recovered.
v. Evaluate refunding of security deposits
vi. Increase convenience fees when using credit cards for payments
c. Will present discussion items to the Water Utility Commission on 7/12/10
Adjourned at 6:30 p.m.
Prepared by: Shirley Seng, Water Utility Administrator