HomeMy WebLinkAboutMinutes - Water Finance Subcommittee - 10/8/2015 ACTI ON SU M MARY M I N UTES
ORO VALLEY WATER UTILITY COMMISSION
FINANCE SUBCOMMITTEE MEETING
OCTOBER 8, 2015
WATER UTILITY CONFERENCE ROOM
11000 N. LA CANADA DRIVE
ORO VALLEY,AZ 85737
CALL TO ORDER at 10:00 AM
PRESENT: Winston Tustison, Chair, Finance Subcommittee �
Javier Arriaga, Member, Finance Subcommittee
Shanna Weagle, Commission Member
Shirley Seng,Water Utility Administrator
Philip Saletta, Water Utility Director _
Stacey Lemos, Finance Director
Call to the audience
No one was present.
Discussion of the following items occurred and no action was taken:
1. Discussion and possible action regarding refinancing the Series 2005 Bonds _
a. Ms. Lemos gave an overview of the series 2005 bonds
i. Bonds originally sold to acquire 23 acres of land for future site of a large municipal
services center for water, highway and police personnel
b. Outstanding bonds total $3.7 million �
i. Water Utility's portion is 33 percent
ii. Current interest rate averages 4.1 percent
� iii. The bonds are backed by excise taxes—not water revenue
c. Will be refinancing the bonds with a "private placement" issue
i. No official statement
ii. Less time—less costs to complete
iii. Obtain bids from 15-20 banking/investing institutions
iv. Bids are due October 20, 2015
d. Estimate net present value savings on total bond issue to be$262,000
i. Will take all the savings in FY 2016-17
ii. Water Utility's portion of savings is approximately$86,000
iii. Actual savings will depend on interest rate at closing
e. Will not be extending the term of the bonds—will mature in 2025
f. Finance Subcommittee will make a recommendation at the Water Utility Commission meeting
scheduled for October 12, 2015
g. Staff will ask Town Council for authorization to proceed on October 21, 2015
2. Discussion and possible action regarding water rates analysis �
a. Reviewed assumptions to be used in the water rates analysis—handout
�,,
r . ,
b. Discussed major assumptions including growth projections,future debt, capital projects,
personnel and operating costs, inflation and interest rates
c. Discussed the baseline proforma for operating fund and 2 impact fee funds- handout
i. Revenue, expenses, cash balances, debt, debt service coverage, cash reserves
d. Discussed that only 1 financial scenario will be prepared for the Subcommittee's review at
their next meet
i. Date of the next meeting was not scheduled at this time
e. Briefly reviewed the schedule for the rate setting process- handout
Future Agenda Items: Water Rates Analysis—financial scenario
Adjourned at 11:10 AM
I hereby certify that I prepared the foregoing minutes and that they are a true and correct copy of the minutes
� of the Finance Subcommittee meeting held on the 8th day of October 2015. I further certify that the meeting
was duly called and held and that a quorum was present.
Prepared by:
Shirley Seng,Wate Util ty inistrator