HomeMy WebLinkAboutMinutes - Water Finance Subcommittee - 12/6/2023MINUTES
ORO VALLEY WATER UTILITY COMMISSION
FINANCE SUBCOMMITTEE
REGULAR SESSION
December 6, 2023
WATER UTILITY CONFERENCE ROOM
11000 N. LA CAÑADA DRIVE
REGULAR SESSION AT OR AFTER 9:00 AM
CALL TO ORDER
Chair Tom Marek called the meeting to order at 9:10 a.m.
ROLL CALL
Present: Tom Marek, Chair
Niranjan Vescio, Member
Absent: Kay Lantow, Member
Staff Present:Peter A. Abraham, Water Utility Director
Mary Rallis, Water Utility Administrator
CALL TO AUDIENCE
No speakers at this time
REGULAR SESSION AGENDA
1.REVIEW AND APPROVAL OF THE DECEMBER 13, 2022 REGULAR SESSION MEETING MINUTES
Motion by Chair Tom Marek, seconded by Member Niranjan Vescio to approve the December 13,
2022 meeting minutes.
Vote: 2 - 0 Carried
2.REVIEW AND DISCUSSION REGARDING THE WATER UTILITY'S 2024 WATER RATE ANALYSIS
Water Utility Director Peter Abraham informed the Finance subcommittee members that the Town has
its own budget process that begins in May, and the Water Rates are set in February. Water Utility
Director Peter Abraham stated the following:
CAP water resource cost has increased
Water sales have been short the past three years
Cash reserve requirements are not going to be met
Base rate increase of 6% would be a good idea
Looking to increase groundwater fee due to needing to borrow 8 million dollars
Might have to borrow 12 million dollars to cover the impact fees to pay the debt service
Reclaimed fees will not be raised as there is no need to increase at this time
12/6/23 Minutes, Water Utility Finance Subcommittee 1
Water Utility Director Peter Abraham informed the committee that there is currently one scenario at this
time. Water Utility Director Peter Abraham asked the committee to review the scenario.
Discussion ensued amongst the committee and staff as follows:
Chair Tom Marek inquired on the 23/24 rate raise
87% of customers are seeing the benefit of tier 1
When consultants come in, they have said that OV water should raise their rates as everyone
else is paying a lot lower
Water Utility Director Peter Abraham informed the committee that Oro Valley’s water rates are
the lowest in Southern Arizona
Commissioner Vescio voiced that the biggest water users should be incentivized to conserve
water. Water Utility Director Peter Abraham stated that the highest water consumers are
commercial.
Water Utility Director Peter Abraham informed the committee that he would like to meet again to
review scenarios regarding the water rates.
The committee and staff agreed to reconvene on Monday, December 11, 2023 at 9:00 a.m.
Water Utility Director Peter Abraham informed the committee that Water Utility Administrator Mary
Rallis will come up with three scenarios for the next meeting as follows:
Base rate of 5%
Reduction of 5% of each of the commodity with a 6% base rate
Base rate of 5% and knocking down the 5% of each commodity
ADJOURNMENT
Motion by Member Niranjan Vescio, seconded by Chair Tom Marek to adjourn the meeting at 10:36
a.m.
Vote: 2 - 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 6th day of December 2023. I
further certify that the meeting was duly called and held and that a quorum was present.
Dated this 12th day of December 2023.
___________________________
Maritza M Valenzuela
Senior Office Specialist
12/6/23 Minutes, Water Utility Finance Subcommittee 2