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Home My WebLink AboutMinutes - Water Finance Subcommittee - 10/23/2018 MINUTES ORO VALLEY WATER UTILITY COMMISSION FINANCE SUBCOMMITTEE OCTOBER 23,2018 WATER UTILITY CONFERENCE ROOM 11000 N.LA CANADA DRIVE CALL TO ORDER—Chair Tustison called the meeting to order at 9:05 a.m. ROLL CALL PRESENT: Winston Tustison,Chair Chuck Hollingsworth,Member Robert Milkey,Member ALSO PRESENT: Shirley Kiel,Water Utility Administrator Danielle Tanner,Sr.Office Specialist CALL TO AUDIENCE—No speakers. 1. APPROVAL SEPTEMBER 18,2018 MINUTES MOTION:A motion was made by Member Milkey and seconded by Member Hollingsworth to approve the September 18,2018 minutes as written.MOTION carried 3-0. 2.DISCUSSION REGARDING THE 2019 WATER RATES ANALYSIS,INCLUDING SCENARO BASELINE AND INITIAL ASSUMPTIONS Ms.Kiel reviewed the following information: • Baseline scenario summary • Assumptions for baseline scenario • Capital Improvement projects in the Master Plan • Private placement bond issue approved this month for$6M for 15 years at 3.02%.It has an annual debt service of approximately$521,000 • Revised Central Arizona Project water deliveries with the new wheeling station to be completed this fiscal year • Actual water consumption amount for FY 2017-18 was taken from FY 2016-17 to be conservative since last year was an abnormally hot and dry year • Revised reclaimed water allocation based on actual data from FY 2017-18 Reduction in reclaimed water use and increase in potable water use resulted in a change in the allocation percentage.For this rates analysis,23%of identified operating costs will be allocated to reclaimed. Discussion ensued regarding: • Deferring capital projects in order to balance the last three years and meet cash reserves • The importance of an accurate inflation rate assumption FUTURE AGENDA ITEMS—No items discussed. The next Finance Subcommittee meeting is scheduled for Tuesday,November 6th at 9 a.m. ADJOURNMENT MOTION:A motion was made by Member Milkey and seconded by Member Hollingsworth to adjourn the meeting at 9:59 p.m. Prepared by: Danielle Tanner Senior Office Specialist I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Water Utility Commission Finance Subcommittee of Oro Valley, Arizona held on the 23rd day of October,2018.I further certify that the meeting was duly called and held and that a quorum was present.