UTILITY COMMITTEE

The Utility Committee Meeting was held on November 23, 2009 at 5:00 p.m. with Chairman Ruane presiding. Members present were Mr. Hogan, Mr. McGiffin, Major Kosior, and Mr. Snaman.

AGENDA ADDITIONS/DELETIONS

Mr. McGiffin moved for approval of the agenda, seconded by Mr. Hogan and unanimously carried.

Water/Wastewater Alternative Forecasts - Combined Revenues and Capital Improvement Projects (CIP)

Mrs. Mitchell, Controller/Treasurer, reminded members that during their meeting of June 1, 2009, members were provided a review of the 5-Year Financial Forecast for the Water/Wastewater Fund. At that time, she had provided members with “Alternative Forecasts - Combined Revenues and CIP” developed by staff; however, due to time constraints, it was requested that the alternatives be presented to the committee at a future meeting to allow for further discussion and consideration.

Mrs. Mitchell stated that the Updated Forecasts was as of November 23, 2009 and noted that the original FY 2009 actual amounts have been included rather than the budgeted amounts for FY2009. She briefly reviewed and explained the Updated Forecasts (Attachment #1). Mrs. Mitchell provided members with Table 7 of the CIP - 05/13/2009 with 20 Year Bonds (Attachment #2) and indicated that the orange highlights represent those projects that are funded either by the revolving fund loan with the State of Delaware or the City’s Bond Issue. All projects not highlighted are “PayGo” Projects (“pay as you go”), which are paid for by the transfers from the Improvement & Extension Fund. The blue highlights represent those projects that are funded through State grants.

Noting that the financial forecast is based on all remaining projects included in the CIP, Mr. Ruane suggested that members first determine if any of the projects should be deleted or deferred.

Mr. McGiffin moved to recommend that staff continue to move forward with the Capital Improvement Projects for the Water/Wastewater Fund as presented for the period 2010 through 2014. The motion was seconded by Mr. Snaman and unanimously carried.

Mr. Hogan moved to recommend acceptance of the projected rates for Fiscal Years 2011-2014 (Attachment #3) as a planning tool for the City’s budget process. The motion was seconded by Mr. McGiffin and unanimously carried.

PACE/NAES Monthly Report (September)

Members were provided the PACE/NAES Monthly Report for September. The report was provided to allow members the opportunity to monitor what is being sold in electric and the revenues received, which will give members a better understanding of any fluctuations and make improvements if deemed necessary. Although it was not staff’s intention to make a presentation of the report, they welcomed any questions.

Mr. Hogan moved to recommend acceptance of the report, seconded by Mr. McGiffin and unanimously carried.

Mr. Hogan moved for adjournment, seconded by Mr. McGiffin and unanimously carried.

Meeting Adjourned at 5:36 P.M.

                                                                                    Respectfully submitted,

Eugene B. Ruane

Chairman

EBR/JS/tm/jg

S:ClerksOfficeAgendas&MinutesCommittee-Minutes200911-23-2009 UTILITY.wpd

Attachments 

Attachment #1 - Presentation of Updated Forecasts

Attachment #2 - Table 7 of the CIP - 05/13/2009 with 20 Year Bonds

Attachment #3 - Projected Rates for Fiscal Years 2011-2014