MINUTES OF THE ADMINISTRATIVE AND FINANCE COMMITTEE MEETING
BUDGET MEETING FOR GENERAL MANAGER’S RECOMMENDED
MULTI-YEAR 2005-2006 AND 2006-2007 BUDGET
JUNE 7, 2005
CALL TO ORDER/DETERMINATION OF A QUORUM
Chair Dixon called the Administrative and Finance Committee Budget Meeting
to order at 2:04 p.m. Committee members present were Chair Dixon, Vice Chairs
Dailey and Tu, Directors Brammell, Johnson, Knutson, Muir, Price, Steiner and
Williams. Committee members absent were Bowersox, Parker, Watton and Representative
Slater-Price. Also present were Directors Ferguson, Lewinger, Linden, Martin,
Pocklington, Saunders, Sundram, and Thompson. At that time, there was a quorum
of the full Board, and the meeting was conducted as a meeting of the Board.
Staff present was General Manager Stapleton, General Counsel Hentschke, Deputy
General Manager Lanspery, Assistant General Manager Cushman, Director of Finance/Treasurer
Brust, Director of Engineering Economides, Director of Water Resources Weinberg,
Director of Operations & Maintenance Eaton, Director of Imported Water Hess,
Director of Human Resources Glover, Director of Public Affairs Jacoby, Director
of Administrative Services Young, Director of Right of Way Rose, Financial Services
Manager/Assistant Treasurer Warren, Rate and Debt Administrator Delin, Controller
Wade, and Budget Officer Ramsey. Also present was Ms. Catherine Bando, Financial
Advisor, RBC Dain Rauscher.
PUBLIC COMMENT
There were no members of the public who wished to address the Committee.
PRESENTATION OF THE MULTI-YEAR 2005-2006 AND 2006-2007 GENERAL MANAGER’S
RECOMMENDED BUDGET
Ms. Stapleton gave a budget overview on the Two-Year Budget for Fiscal Years
2005-2006 and 2006-2007. She reviewed the recommendation to adopt a $1.314 billion
budget. She pointed out that for the first time in the history of the Water
Authority, the Capital Improvement Program expenditures are expected to exceed
the water purchases over the next two years.
Ms. Brust presented the Water Rates and Charges which is scheduled for Board
consideration at a Public Hearing at the June 2005 Board of Directors Meeting.
Mr. Economides reviewed the Capital Improvement Program which he explained maintains
and enhances reliability. He indicated the Water Authority will construct $1.5
billion worth of water facilities that will allow for the diversification of
the water supply portfolio and meet future demands for water in the next five
years. The presentation addressed the following points: 1) water rate impacts
and demand forecasts, 2) track record with the Fiscal Years 2004 and 2005 CIP
budget, 3) recommended CIP budget and appropriations for 2006 and 2007, 4) a
revision to increase the San Vicente project, and 5) how the challenges of a
much larger CIP are being addressed. His summary outlined the following points:
1) spending $1.5 billion over the next 5 years, 2) the rates would stay below
MARIRC projections, 3) building a solid track record, 4) challenging design
and construction efforts, 5) organizational capacity to perform and 6) revised
Recommended CIP Budget and 2005-2006 and 2006-2007 Appropriations. The recommendation
was made that the Board adopt a revised CIP budget of $3.315 billion (an increase
of $44 million from the printed budget) and Fiscal Years 2005-2006 and 2006-2007
appropriations of $570,547,000 (an increase of $24 million from the printed
budget).
Ms. Brust presented the Debt Service Budget which is approximately 14% of the
total budget. She indicated that the Fiscal Year 2005-2006 budget is $86 million
and the Fiscal Year 2006-2007 budget is $92 million with the expectation of
issuing commercial paper in 2007 in the amount of $250 million to continue to
fund the CIP. She discussed the annual Debt Service requirements and explained
the Debt Service Coverage Ratio.
Ms. Stapleton reiterated that the Budget meetings would continue the following
day and would cover Water Purchases and the Operating Budget, as planned.
ADJOURNMENT
Chair Dixon adjourned the meeting at 3:52 p.m.
_______________________________
Jesse Dixon
Chair
|
