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HomeMy WebLinkAboutMinutes - Water Finance Subcommittee - 12/6/2021MINUTES ORO VALLEY WATER UTILITY COMMISSION FINANCE SUBCOMMITTEE REGULAR SESSION DECEMBER 6, 2021 WATER UTILITY CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE            REGULAR SESSION AT OR AFTER 10:00 AM - Chair Marek called the meeting to order at 10:01 a.m.   CALL TO ORDER   ROLL CALL Present: Tom Marek, Chair Chuck Holligsworth, Member Robert Milkey, Member Staff Present:Peter Abraham, Water Utility Director Mary Rallis, Water Utility Administrator Attendees: Dan Jackson, Vice President, Willdan Financial Services Daniel Lanning, Project Manager, Willdan Financial Services CALL TO AUDIENCE - No speakers.   REGULAR SESSION AGENDA   1.REVIEW AND APPROVAL OF THE DECEMBER 14, 2020 REGULAR SESSION MEETING MINUTES       Motion by Member Robert Milkey, seconded by Chair Tom Marek to approve the December 14, 2020 minutes as written.  Vote: 3 - 0 Carried   2.DISCUSSION REGARDING WATER RATE STUDY AND LONG-TERM FINANCIAL PLAN PROVIDED BY CONSULTANT WILLDAN       Water Utility Director Peter Abraham reviewed the Water Utility's annual water rates analysis process. He explained that staff decided to use a consultant this year to review the current process and ensure it is in-line with standards. Willdan Financial Services Project Manager Daniel Lanning provided a presentation which included the following: - Background on Rates - Facts about Water Rates in the 21st Century - Current Water Rate Structure: July 2021 - Historical Rate Increases (%) - Monthly Residential Charge Comparison: 7,000 Gallons Water 12/06/21 Minutes, Oro Valley Water Finance Subcommittee Regular Session 1 - Water Customers and Volumes - Potable Water Accounts by Rate Class: Test Year 2022 - Actual and Forecast Potable Water Accounts - Test Year 2022: Average Monthly Water Consumption by Rate Class - Actual and Forecast Potable Water Billed Consumption - Water Current Forecast and Cost of Service - Key Assumptions Driving Forecast Financial and Rate Plan - Capital Improvement Plan: FY 2022 - FY 2026 - Long-Term Financing Forecast Water: Bond Issues - Forecast Cost of Service and Net Revenue Requirement - Water Rate Plan - Status Quo Potable Water Rates - Notes on Rate Proposal - Potable Water Rates - Water Rate Plan - Potable Water Rates FY 2023 - 2027 - Rate Plan - Impact on Monthly Bills: FY 2023 - FY 2027 - Forecast Operating and GPF Cash Balances - Presentation Summary: Why is Rate Plan Beneficial to Oro Valley? - Questions and Discussion Discussion ensued amongst the Subcommittee Members, staff and the consultants. The Subcommittee requested Willdan Financial Services provide an additional (Scenario B) rate plan which shows a flat 4% increase across the 5-year forecast. The Subcommittee also requested an additional (Scenario C) rate plan be created which reflects the consultant's updated recommendation.   FUTURE AGENDA ITEMS - Staff report and discussion on GPF - Staff report and discussion on impact fees   ADJOURNMENT    Motion by Member Robert Milkey, seconded by Member Chuck Holligsworth to adjourn the meeting at 11:31 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 6h day of December 2021. I further certify that the meeting was duly called and held and that a quorum was present. ___________________________ Danielle Tanner Senior Office Specialist 12/06/21 Minutes, Oro Valley Water Finance Subcommittee Regular Session 2