Utility Committee Agenda and Packet 2021 02 09

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show some differentials of what it looks like with current tap fees and tap fees in the rears. Then Councilmember Lipton said that he wants to get this to council and asked if we are okay with the recommended line subject to the change on the reserve. Mayor Pro Tern Councilmember Maloney said earlier in the conversation he stated he'd like to use current tap fees and said perhaps we should have the Utility Committee take a vote on how we should handle. Councilmember Lipton asked if he wants to do that now. Mayor Pro Tern Councilmember Maloney stated he just wants to be clear. Mr. Kowar agreed clarity would be good. Councilmember Lipton then asked, so you want to change the recommended rate to reflect the future projected tap fees not the tap fees from 2020. Mayor Pro Tern Councilmember Maloney stated the way he understands it is we are not using the 2020 numbers or the projected 2021 numbers right? Mr. Peterson explained what we modeled is 2019 and the number is adjusted out a year as shown on page 31. Committee continued discussion and agreed to bring this to the first quarter meeting as stated earlier. Councilmember Fahey motioned to move discussion to the first quarter and Mayor Pro Tern Councilmember Maloney Second the motion and all agreed. • Wastewater — Page 39-43, Mr. Peterson said they evaluated old rates at the 4.5% and we saw a slightly different adjustment as a 0.2% because wastewater is not as large as water. He said we could adjust wastewater to the 90 day Cash Reserve to match the water rates if that's what the recommendation would be. Mr. Kowar added he's okay with water because of the amount of revenue we bring in yearly and the cash reserve we have. Wastewater we don't bring in the reserve money so he doesn't think that would be a good idea to do in wastewater. Mayor Pro Tern Councilmember Maloney referred to the 25% by policy and asked is that average over a year. Mr. Watson said yes and is projected annually. Then added we see a variation in O&M costs over the year. We see a little bit in utility fund than in the Golf Course. He agrees with Mr. Kowar on Wastewater's Revenue is less and predictable. He said the 90 days and current policies are conservative enough for the Wastewater. Mr. Peterson went on explaining that we only have a single multi -year project where it doesn't really impact rates but will on the bottom line and the CIP Shifts don't affect rates either. We are staying consistent in Wastewater and there's not a lot of movement. Councilmember Lipton asked if the recommendation has the 120 Day Cash Assumption in it. Mr. Peterson said, "Yes". Councilmember Lipton then asked if we want to adjust that amount to the policy of 90 Days. Councilmember Lipton then said that comment is 01