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HomeMy WebLinkAbout03/24/2022 - Meeting Minutes 00. Minutes DEPARTMENT of PUBLIC UTILITIES -(Z-j ADMINISTRATION ,'''•� I T '';,`, March 24, 2022 The Public Utilities Advisory Committee meeting was held at 8 am on March 24, 2022, at 1805 West 500 South, Salt Lake City,UT 84104. Committee members present were Roger Player,Kent Moore, Dani Cepernich, Ted Boyer, Lynn Hemingway, Ted Wilson, Kathryn Floor, Alex Lovell and Tom Godfrey. Salt Lake City Public Utilities employees present were Laura Briefer, Jesse Stewart, Marian Rice, Jamey West, Dawn Wagner, Tamara Prue, Brad Stewart, Michelle Barry, Tamara Wambeam, Lisa Tarufelli, Mike Gill, Jason Brown, Patrick Nelson, Holly Mullen and Janine Calfo. Also in attendance were Rusty Vetter, Salt Lake City Attorney's Office; Mike DeVries, Metropolitan Water District of Salt Lake and Sandy; Cheri Jackson, Millcreek City Council; Nathan Zaugg, Carollo Engineering; William Peterson, AECOM; Tim Cosgrove and Abby McWilliams, Salt Lake City Mayor's Office; and Sam Owen, Salt Lake City Council Office. Welcome and Introductions Committee Chair Roger Player and Public Utilities Director Laura Briefer welcomed the attendees. Approve Minutes of February 24, 2022 Meeting Committee member Tom Godfrey made a motion and committee member Ted Boyer seconded the motion to approve the minutes of the February 24, 2022. All members voted to approve. Monthly Financial Report Lisa Tarufelli, Finance Administrator Public Utilities Finance Administrator Lisa Tarufelli gave a presentation of the financial report. A copy of that presentation is attached. As February 28, 2022, the Water fund budget is at 60 percent. Operating Expenses are behind budget. Revenues are less and the bond proceeds are spending down, with 48 percent remaining. The Sewer Fund Operating Revenues are at 65 percent of budget. The Capital budget is at 72 percent of budget. Kent Moore asked how far the Reclamation plant project has come. Jason Brown responded that 35 percent of the work is complete. The Stormwater Fund have remained fairly static through the year. Operating Expenses are at 43.7 percent of budget. Available cash is up from the same time last year due to the rate increase. The Street Lighting Fund capital budget has been put on hold for the new Street Lighting Master Plan. Operating Expenses are at 74 percent. Kent Moore asked if when all the lights are converted to LED lights if the expenses will come down. Laura responded that there are some additional components in the new Master Plan that will bring costs down. March 24,2022 PUAC MEETING MINUTES Operating revenues are down, overall, at 63 percent of budget. Available cash is down due to bond proceeds being spent down. Delinquent billings are at 1.35 percent, which is a vast improvement from a year ago, which was at 3.7 percent. There has been an increase in customer assistance programs. Closing is planned for June for Series 2022 bond issues. The next issue would be in the Fall of 2023. Initial loan draw was received from the WIFIA loan and the quarterly report is due on April 30tn Fiscal Year 2023 Proposed Public Utilities Budget Laura Briefer and Lisa Tarufelli Laura gave a presentation on the overall proposed budget and a copy of that presentation is attached. The FY2023 budget priorities include investment into aging infrastructure, water stewardship, regulatory programs, operations and maintenance, financial health, sustainability, and employee compensation. Some considerations in this budget include water revenue impacts anticipated to continue with persistent drought, record inflation and increasing costs, planned rate increases and additional bonding to support large projects,and evaluation of rate structures,department financial capability and customer assistance. Total Public Utilities budget is $413,124,942 across the four enterprise funds and WIFIA proceeds are $125,165,000. The proposed Water utility budget is down 23.75 percent from last fiscal year at $134,752,815. Water service fees contribute to most of the projected revenue. Reserve fund use is proposed at $24,656,447. There is a rate increase of 15 percent. Capital program emphasis on treatment plants, water mains, wells, meters and reservoirs. The proposed Sewer utility budget is down 32.5 percent from last fiscal year at $255,914,580. Sewer fees and WIFIA loan comprise most of the sewer utilities projected revenue. The proposed Stormwater utility budget decreased by 22.51 percent over the last fiscal year at $18,699,722. There is a rated increase of 15 percent proposed. The Street Lighting utility budget is very similar to last year at $5,757,825. There is a new rate study to be conducted to help with implementation of the Street Lighting Master Plan Update. Laura discussed the impacts of the water and sewer rate increases to the City's residential and residential customer base. N a SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY,UTAH 84115 2 of 3 TEL 801-483-6770 March 24,2022 PUAC MEETING MINUTES Public Comment There was no public comment. Fiscal Year 2023 Budget Recommendation of the PUAC to Mayor Mendenhall Committee member Lynn Hemingway made a motion and committee member Ted Wilson seconded the motion to approve the Fiscal Year 2023 Proposed Public Utilities Budget. All members voted to approve. Watershed Management Plan Update Marian Rice, Deputy Director Patrick Nelson,Watershed Program Manager Marian Rice, Deputy Director and Patrick Nelson, Watershed Program Manager, gave a brief presentation on the Watershed Management Update. A copy of that presentation is attached. The first stakeholder meeting for the Watershed Management Plan Update will be held later today. The purpose of the plan is to meet the protection of the drinking water source plan. The plan is updated every six years. The final draft of the update is scheduled to be completed by November/December of this year. There is a planned advisory committee that has been engaged that encompasses several entities. Patrick Nelson discussed some critical concerns and main stressors for the watershed health. Other Business There was no other business discussed during the meeting. Meeting adjourned at 9:47 pm. Next Meeting will be held on April 28th at 8 am. M a SALT LAKE CITY DEPARTMENT of PUBLIC UTILITIES 1530 SOUTH WEST TEMPLE STREET WWW.SLCGOV.COM SALT LAKE CITY,UTAH 84115 3 of 3 TEL 801-483-6770