HomeMy WebLinkAboutMinutes - Water Finance Subcommittee - 8/3/2010 ACTION SUMMARY MINUTES
ORO VALLEY WATER UTILITY COMMISSION
FINANCE SUBCOMMITTEE MEETING
AUGUST 3, 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
Bill Adler, resident of Oro Valley
Discussion of the following items, no legal action taken:
1. Water Rates Analysis
a. Discussion on assumptions to be used in the financial analysis including growth, rate
structure, water use trends, disconnected meters, cash balances, interest rates,
inflation rates, personnel & operating costs, debt service and capital improvements.
i. Discussion on costs of wheeling CAP water.
ii. Discussion on future cost of service study needed to change rate
structure that would include separate rates for user classifications.
iii. Discussion on slowing down the phase-in of the increases in the
Groundwater Preservation Fees.
b. Discussion on the data used for year one of the financial analysis indicating that cash
balances and debt service coverage requirements were being met.
c. Discussion on table illustrating the impact to residential customers if the Groundwater
Preservation Fees were to increase by $0.20 per 1,000 gallons.
d. Discussion on preliminary work schedule to move forward with the water rates
analysis.
i. Next Finance Subcommittee meeting is scheduled for August 24, 2010
Call to the audience
Mr. Adler, resident of Oro Valley, addressed the Finance Subcommittee with comments
regarding water rates, long-term water availability concerns and the need for long-term
projections for water availability.
Adjourned at 6:43 p.m.
Prepared by: Shirley Seng, Water Utility Administrator