HomeMy WebLinkAboutMinutes - Water Finance Subcommittee - 10/27/2020 (2) MINUTES
ORO VALLEY WATER UTILITY COMMISSION
FINANCE SUBCOMMITTEE
REGULAR SESSION
OCTOBER 27,2020
ONLINE ZOOM MEETING
REGULAR SESSION AT OR AFTER 10:00 AM
CALL TO ORDER-Chair Tustison called the meeting to order at 10:01 a.m.
ROLL CALL
Present: Winston Tustison,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 comments were received.
REGULAR SESSION AGENDA
1. REVIEW AND APPROVAL OF THE DECEMBER 17,2019 FINANCE SUBCOMMITTEE REGULAR
SESSION MEETING MINUTES
Motion by Member Robert Milkey,seconded by Member Chuck Holligsworth to approve the December
17,2019 minutes as written.
Vote:3-0 Carried
2. DISCUSSION REGARDING THE 2020 WATER RATES ANALYSIS
Utility Administrator Mary Rallis provided a presentation and included the following:
-Purpose
-Water rates discussion outline
-Revenues and expenses
-The Operating Fund beginning cash balance and revenue projections
-The Operating Fund expense projections
-Water Resource and System Development Impact Fee(WRSDIF)Fund beginning cash balance and
revenue projections
-WRSDIF Fund expense projections
Water Utility Director Peter Abraham continued the presentation and included the following:
-Baseline operating revenues-pro forma
-Baseline operating expenses-pro forma
-Baseline debt service capital,ending cash balances-pro forma
-Baseline analysis-Operating Fund
-Baseline analysis-Groundwater Preservation Fee(GPF)Fund
-Scenario A operating revenues-pro forma
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10/27/20 Minutes,Oro Valley Water Finance Subcommittee Regular Session
The Subcommittee provided comments and suggestions and staff offered to create additional scenarios.
Discussion ensued amongst the Subcommittee and staff regarding Item#2.
Water Utility Director Peter Abraham continued the presentation which included the following:
-Scenario A debt service,capital,ending cash balance-pro forma
-Scenario A Operating and GPF Funds
-Recommendations on water rates:
-Potable water base rate increase of$1.46 per month for all 5/8-inch meters(88%of customers)
-Reclaimed Groundwater Preservation Fee increase of$0.15 per 1,000 gallons
-Reclaimed water commodity rate decrease of$0.05 per 1,000 gallons.
-Water cost comparisons
Discussion ensued amongst the Subcommittee and staff regarding Item#2.
FUTURE AGENDA ITEMS
Water Utility Director Peter Abraham announced this will be Winston Tustison's last meeting and expressed
appreciation for his contributions and service.
Water Utility Director Peter Abraham summarized the items to review at the next Finance Subcommittee
meeting which include the following:
-Update the baseline and all scenarios to include a column showing the current year budget.
-Create a scenario"B"showing the financial impact,to the baseline,for the proposed debt associated with the
Northwest Recharge,Recovery&Delivery System.
-Create a scenario"C"with a methodology on a base rate increase in conjunction with a Tier 1 commodity rate
increase to better levelize the percentage increase between different consumptions within the tiers.
-An analysis on the reclaimed GPF increase.
The next Finance Subcommittee meeting will be scheduled in November.
ADJOURNMENT
Motion by Member Chuck Holligsworth,seconded by Member Robert Milkey
to adjourn the meeting at 11:19 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 27th day of October,2020.I
further certify that the meeting was duly called and held and that a quorum was present.
Dated this 27th day of October,2020.
Danielle Tanner
Senior Office Specialist
10/27/20 Minutes,Oro Valley Water Finance Subcommittee Regular Session 2