Utilities Rate Advisory Commission Meeting - June 28, 2017
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Utilities Rate Advisory Commission Meeting - June 28, 2017
The Utilities Rate Advisory Commission met on June 28, 2017, at 5:32 p.m. in the City Hall Council Chamber. The meeting lasted 20 minutes and included approval of prior minutes and a financial update from the Department of Utilities. No public comments were made.
Consent Calendar
- Approval of Minutes for April 26, 2017: The commission unanimously approved the minutes (motion by Brian Biering, second by Andrew Day; all present members voted yes).
Discussion Items
- Department of Utilities Financial Update: Daniel Choe, Supervising Financial Analyst, presented an overview of fiscal year 2016-17 year-end projections and the FY2017-18 operating budget (adopted by City Council on June 13, 2017). Key points included:
- Water Fund: Projected $1.2 million in revenue above budget and $1.4 million in expenditure savings, resulting in an estimated $2.6 million net income over budget.
- Wastewater Fund: Projected revenues equal to budget; expenses $1.3 million lower than budget, leading to $1.3 million net income over budget.
- Storm Drainage Fund: Revenues not adjusted since 1996; projected $2 million higher than budget due to unbilled parcels audit and development activities; expenditures $1.4 million lower, resulting in $3.4 million net income over budget.
- FY2017-18 Budget: Reflects second year of 10% rate adjustment for water and 9% for wastewater. Includes 9 new FT positions for water and 2 for storm drainage. The department maintained a AA credit rating and issued $52.6 million in water revenue bonds at a premium ($10.2 million).
Key Outcomes
- Commissioner Questions: Brian Biering asked about the timing of a Prop 218 rate adjustment for storm drainage. Director Bill Busath replied that due to other city initiatives (e.g., Measure U), the adjustment is delayed at least two to three years, and reserves will be depleted but not exhausted.
- Chair Request: Chair Timothy Horner requested a five-year financial projection at a future meeting; Daniel Choe noted such projections are available in the city’s budget book online.
- Commissioner Recognition: P. Anthony Thomas thanked staff for an orientation binder. Chair Horner commended the department for maintaining the AA credit rating.
- Adjournment: The meeting adjourned at 5:52 p.m.
Meeting Transcript
Good evening, ladies and gentlemen. It is 532 and time to get started. This is the Rates Advisory Commission. Ms. Torpey, will you please call the roll? Keith Ellis. Present. Ryan Beering. Here. Ryan McManus. April Javist. Andrew Day. Present. He Anthony Thomas. And Timothy Horner. Here. So the Commission has a quorum. Okay, thank you very much. And I believe you have a statement to read. Is that correct? I see thank you. This meeting is being video streamed and can be viewed on the city's website or viewed later archived files. Please silence all cell phone and mobile devices. If you wish to speak tonight, please complete a speaker slip located in the back of the room and return it to me at any time. Copies of the agenda are also located in the back of the room. Should you need assisted listening devices? They are available from me upon request. Okay, thank you very much. And uh I don't see members of the public, but if we have anyone who wants to speak, there are speaker cards in the back, and you can hand them to the city clerk, and then we have a comments time at the end of today's meeting. All right, our first item is the consent calendar, and we have one item on the consent calendar. That would be uh the meeting, the minutes from the last meeting. Is there a motion to approve the consent calendar? So moved. Is there a second? Move to second. Okay, thank you. So we have a motion to approve. Um, and then if you could call the roll, please. Keith Ellis? Yes. Brian Beering. Yes. Ryan McManus. April Javist. Andrew Day. Yes. P. Anthony Thomas. And Timothy Horner. Yes.
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