HomeMy WebLinkAboutMinutes - Water Finance Subcommittee - 1/11/2022MINUTES
ORO VALLEY WATER UTILITY COMMISSION
FINANCE SUBCOMMITTEE
REGULAR SESSION
JANUARY 11, 2022
WATER UTILITY CONFERENCE ROOM
11000 N. LA CAÑADA DRIVE
REGULAR SESSION AT OR AFTER 9:00 AM
CALL TO ORDER - Chair Marek called the meeting to order at 9:00 a.m.
ROLL CALL
Present: Tom Marek, Chair
Chuck Holligsworth, Member
Robert Milkey, Member
Staff Present:Peter A. Abraham, P.E., Water Utility Director
Mary Rallis, CPA, Utility Administrator
CALL TO AUDIENCE - No speakers.
REGULAR SESSION AGENDA
1.REVIEW AND APPROVAL OF THE DECEMBER 6, 2021 REGULAR SESSION MEETING MINUTES
Motion by Member Robert Milkey, seconded by Member Chuck Holligsworth to approve the meeting
minutes as written.
Vote: 3 - 0 Carried
2.DISCUSSION REGARDING WATER RATE STUDY AND LONG-TERM FINANCIAL PLAN PROVIDED
BY CONSULTANT WILLDAN
Water Utility Director Peter Abraham explained the Subcommittee requested additional scenarios at
the last meeting, so staff collaborated with Willdan to create scenarios B and C.
Willdan Vice President Dan Jackson provided a presentation and reviewed the following:
- Historical Rate Increases (%)
- Monthly Residential Charge Comparison at 7,000 Gallons
- Potable Water Accounts by Rate Class Test Year 2022
- Capital Improvement Plan: FY 2022 - FY 2026
- Forecast Cost of Service and Net Revenue Requirement
- Notes on Rate Proposal - Potable Water Rates
- Scenario A
- Rate Plan - Impact on Monthly Bills FY 2023 - FY 2027 - Scenario A
- Forecast Operating and Groundwater Preservation Fund (GPF) Cash Balances - Scenario A
- Forecast GPF Cash Balances - Scenario A, B, C
- Rate Plan - Impact on Monthly Bills FY 2023 - FY 2027 - Scenario B
01/11/22 Minutes, Oro Valley Water Finance Subcommittee Regular Session 1
- Rate Plan - Impact on Monthly Bills FY 2023 - FY 2027 - Scenario B
- Rate Plan - Impact on Monthly Bills FY 2023 - FY 2027 - Scenario C
- Forecast Operating and GPF Cash Balances - Scenario C
- Rate Plan - Impact on Monthly Bills FY 2023 - FY 2027 - Scenario A, B, C Comparison
Discussion ensued amongst the Subcommittee and staff regarding Item #2.
CONSENSUS: The Subcommittee reached a consensus that Scenario C should be recommended as
the preferred scenario.
3.DISCUSSION REGARDING IMPACT FEES AND GROUNDWATER PRESERVATION FEE
Water Utility Director Peter Abraham discussed the Northwest Recharge, Recovery and Delivery
System (NWRRDS) in relation to GPF funds.
Water Utility Administrator Mary Rallis reviewed the following regarding the Impact Fee Fund:
- Cash balance projections
- Planned spending for the NWRRDS project
- Revenue estimates
Discussion ensued amongst the Subcommittee and staff regarding Item #3.
Water Utility Director Peter Abraham clarified the process for impact fee studies.
FUTURE AGENDA ITEMS
Member Milkey suggested a future discussion on the methodology for determining cash reserve policies.
Seconded by Chair Marek
Water Utility Director Peter Abraham proposed staff develop a cash reserve policy and reconvene with the
Subcommittee for review later this year.
ADJOURNMENT
Motion by Member Chuck Holligsworth, seconded by Member Robert Milkey to adjourn the meeting at
10:14 a.m.
Vote: 3 - 0 Carried
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the
Town of Oro Valley Water Finance Subcommittee of Oro Valley, Arizona held on the 11th day of January 2022. I
further certify that the meeting was duly called and held and that a quorum was present.
___________________________
Danielle Tanner
Senior Office Specialist
01/11/22 Minutes, Oro Valley Water Finance Subcommittee Regular Session 2