UTILITY COMMITTEE
The Utility Committee Meeting was held on November 24, 2008 at 5:00 p.m. with Chairman Ruane presiding. Members present were Mrs. Williams, Mr. McGiffin, Mr. Snaman, and Major Kosior.
AGENDA ADDITIONS/DELETIONS
Mr. Snaman moved for approval of the agenda, seconded by Mrs. Williams and unanimously carried.
Water/Wastewater Projects - Financing
Mrs. Mitchell, Controller/Treasurer, reviewed the Water/Wastewater Projects Financing Presentation to provide information on alternative project funding options in lieu of the Bond Issue that was deferred due to current bond market conditions. She advised members that the total original budget for Water/Wastewater Capital Improvement projects was $13,824,153, which included the beginning and ending budget balances, which were used as sources of revenue. Mrs. Mitchell stated that the revised budgets were based on audit results. She noted that the dramatic change in Wastewater was due to having $850,000 from Wastewater Impact Fees in last years budget for projects, which were either deferred or were partially completed. The unspent funds which were not revenue were transferred back to the Impact Fee Reserve.
Mr. DePrima, City Manager, noted that the presentation was being made as a “what if” scenario to fund projects based on the current economic situation. Mrs. Mitchell noted that the proposed Bond Issue would have provided $6,325,800 for Water and $4,934,500 for Wastewater projects. She advised members that bank qualified loans and state revolving funds are being considered as alternatives to the bond issue.
Mr. Ron Lunt, Public Utilities Director, advised members that the projects have only been deferred, not cancelled. He reviewed the project revisions, noting that some projects are moving forward, some are not ready to move forward, and some are in the engineering/design phase. It was noted that the following projects have been included in the revised budget:
Washington Street South Street E. State Street
Contact Chambers Bayard Avenue Design Pear Street
Route 13 Bayard Avenue Construction
Mr. DePrima advised members that staff would be vigilant in monitoring the bond market and the construction environment to determine the right time to begin projects.
Responding to Mr. Ruane, Mr. Lunt stated that the Inflow/Infiltration Removal/System Improvements project was deferred due to funding.
Mrs. Mitchell assured members that all financial policies would be adhered to when transferring the funds. She noted that the City is in a better position than many neighboring communities because early payoff of bonds reduced debt service and allowed them to set aside funds in Capital Project reserves.
Mr. Ruane noted that the National League of Cities is encouraging municipalities to develop a list of “ready to go” infrastructure projects in advance of a possible Federal stimulus bill dedicated to infrastructure or State revolving loan fund opportunities.
Mrs. Williams moved to direct the City Manager to prepare a list of “ready to go” Water/Wastewater projects, seconded by Mr. Snaman and unanimously carried.
Mr. Ruane requested that if staff determines that a project is ready to move forward that the project and the funding source be brought back to the committee for review and approval.
Staff recommended approval of the alternative financing plan, as presented,
Mr. McGiffin moved to recommend approval of staff’s recommendation to use Impact Fee Reserves, Capital Asset Reserves (Water and Wastewater) to continue those projects outlined in the document revised November 24, 2008 (Attachment #1). The motion was seconded by Mrs. Williams and unanimously carried.
Mr. McGiffin moved for adjournment, seconded by Mr. Snaman and unanimously carried.
Meeting Adjourned at 5:53 P.M.
Respectfully submitted,
Eugene B. Ruane
Chairman
EBR/tm
S:ClerksOfficeAgendas&MinutesCommittee-Minutes200811-24-2008 UTILITY.wpd
Attachments
Attachment #1 - Electric Projects Financing Presentation