HomeMy WebLinkAboutMinutes - Water Finance Subcommittee - 10/10/2019 MINUTES
ORO VALLEY WATER UTILITY COMMISSION
FINANCE SUBCOMMITTEE
REGULAR SESSION
October 10,2019
WATER UTILITY CONFERENCE ROOM
11000 N.LA CANADA DRIVE
REGULAR SESSION AT OR AFTER 10:00 AM
CALL TO ORDER
ROLL CALL
Present: Winston Tustison,Chair
Chuck Holligsworth,Member
Robert Milkey,Member
Staff Present: Shirley Kiel,Utility Administrator
Danielle Tanner,Senior Office Specialist
CALL TO AUDIENCE-Chair Tustison called the meeting to order at 10:00 a.m.
REGULAR SESSION AGENDA
1. REVIEW AND APPROVAL OF THE SEPTEMBER 23,2019 REGULAR SESSION MEETING MINUTES
Motion by Member Robert Milkey,seconded by Member Chuck Holligsworth to approve the September
23,2019 minutes as written.
Vote:3-0 Carried
2. DISCUSSION ON WATER UTILITY IMPACT FEE ANALYSIS
Ms.Tanner presented the following:
-Impact fee analysis nearing completion
-Costs on NWRRDS projects being reviewed by two consulting groups to develop new estimated costs
-Proposed impact fees reflective of water use patterns for FY 2018-19 results in a slight increase for SFR,
slight decrease for commercial and an increase for the irrigation classification
-With the projected growth,some potable water projects will be delayed beyond the 5-year rates analysis
-Projected combination of the two impact fees into one called"Water Resource and System Development
Impact Fees"
Ms.Tanner reviewed the draft proposed fee schedule.There will be opportunities for public comment and
Town Council review and approval before the fees are adopted.
3. DISCUSSION REGARDING THE 2020 WATER RATES ANALYSIS,INCLUDING FIXED AND VARIABLE
COSTS,FINANCIAL SCENARIOS AND RELATED ASSUMPTIONS
Ms.Kiel reviewed the following new changes in the assumptions including:NWRRDS capital costs;capital
costs moved into future years for other potable projects;proposed consolidation of impact fee funds;
proposed increase to impact fees;timing of use of NW Reliability Funds;and cash balances subject to
interest income
Ms.Kiel reviewed the noticeable differences in the baseline scenario compared to last year:
-Loss of reclaimed revenue from no usage by Vistoso Golf Course
-Increase in CAP water delivery costs beginning in 2022
-Less interest income
-Projected reduction in GPF revenue and increased project costs will require financing earlier for the
existing customers'portion of NWRRDS
-Will use all remaining NW Reliability Funds in FY 23-24 when project is complete
-No borrowing for growth-related portion of the NWRRDS projects
Ms.Kiel reviewed the proposed changes to the reclaimed allocation,including:
-Consultants performing analysis
-New methodology will vary depending on costs
-Result will be non-biased methodology to more accurately reflect the operating cost of service of the
reclaimed water system
The Subcommittee members and staff discussed how the reclaimed methodology will be complex and data
based.
FUTURE AGENDA ITEMS-No items discussed.The next meeting will be prior to the November Water Utility
Commission meeting.
ADJOURNMENT
Motion by Member Robert Milkey,seconded by Member Chuck Holligsworth to adjourn the meeting at
11:28 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 10th day of October,2019. I
further certify that the meeting was duly called and held and that a quorum was present.
Dated this 10th day of October,2019.
Danielle Tanner
Senior Office Specialist