1.
Call to Order.
1:08 p.m.
2.
Roll.
Directors
Amoroso and Comstock; General Manager Jennifer Blackman also present.
3.
Draft Five-Year Capital
Improvement Plan.
Staff
reported that the full draft of the Five-Year Capital Improvement plan and all
exhibits will be included in the Board books this week; spreadsheets depicting
the impacts of the budget on reserves and debt will be included as well. (The Committee noted that the early payoff of
one of the district’s outstanding loans will lower the balance of reserves by
$300,000, and the district will replenish those reserves over the next six
years.) Director Comstock said that he
does not have any further changes to the plan at this time, but noted that the
district likely will need to reevaluate its Tier 1 and Tier 2 projects each
year as priorities evolve. Discussion
ensued about how Tier 2 pipeline projects might be installed with existing staff
and temporary hire. Director Comstock
commented that the district still needs to get an estimated price for project
planned to upgrade the treatment process at the wastewater treatment plant and
staff agreed to discuss an estimate with Oswald engineering and/or issue a
request for proposals to obtain a price.
Director Comstock said that since this is a significant potential
project for the sewer system, it is important to have this estimate sooner
rather than later to incorporate into the plan. Director Amoroso noted that the replacement
of the lift station pumps (an unplanned capital expenditure) also will have a
significant impact on the financial position of the sewer reserves.
4. Draft Fiscal Year 2015-16 Budget.
The Committee reviewed the draft
budget, which includes the changes requested by the Committee at the last
meeting. Staff said this version of the
budget has revised amounts categorized for staff capital improvement hours
which now match up with the projects as forecast in the 5-Year Capital
Improvement Plan. Staff further noted that the debt section of
the budget has been revised to reflect the district’s plan to pay off one of
its outstanding loans prior to the end of the current fiscal year (thereby
reducing the district’s annual debt service by approximately $55,000). Also, the budget reflects the retirement of
one of the district’s bonds (a reduction of approximately $26,000), which was
fully paid off during the current fiscal year.
On the revenue side, anticipated
tax revenues were increased by $20,000, consistent with last year’s tax revenue
and anticipated property value increases.
In addition, the tax revenues have been redistributed more appropriately
between the water and sewer enterprises as discussed at the most recent
Committee meeting. Director Comstock noted that the budgeted
sewer capital expenses do not line up with the sewer projects identified in the
revised CIP for the upcoming fiscal year; specifically, $9,000 of capital
projects were deemed to be operating expenses under the plan documents, so this
should be reflected in the budget, as well.
Staff agreed to make the
change. Finally, the Committee discussed
the potential 10% increase to the annual water and sewer charges; staff
confirmed that the increases will be necessary to fund the budget as currently
drafted.
5.
Draft Proposition 218
Mailing to Customers re: Proposed Increases to Annual Water and Sewer Charges.
Director
Amoroso questioned the range of the potential increase for the district’s
commercial sewer customers and discussion ensued about how that range is
calculated (the amounts are correlated with historical water use and impact on
the collection system, which generally is greater than residential
customers). Director Comstock said he did not have any
comments on the text of the Proposition 218 mailing. The Committee directed staff to include the
draft notice, along with the budget (and notes) and Five-Year Capital
Improvement Plan with all exhibits in the Board books for the April 22nd
meeting.
6.
Community Expression
None.
7.
Adjournment
2:09 p.m.