Finance Committee Agenda and Packet 2023 01 23

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Questions from the committee: Councilmember Brown asked if there is any pending legal action that puts the project at risk. Peterson said that the legal action has been resolved which allowed construction and the loan to go forward. Mayor Pro Tern Maloney mentioned that he visited the site and that there will be a re-routing of the Colorado river to ensure conservation of fish and wildlife. He asked staff to let the Finance Committee members know when new status updates are available. Staff member Peterson mentioned that tours are available in the summer. 2023 Recommended Utility Rate Plan: The Deputy Director of Utilities presented on the 2023 proposed utility rates. He reminded the committee of the baseline financial equation and that performance metrics are tied to debt service coverage to ensure rates generate enough revenue to cover costs. The target rate is established without Tap Fees and rate increases can be adjusted if the fund is healthy. Mayor Pro Tern Maloney asked how it is accounted for if a development brings in water rights. Staff said that bringing in rights enables us to reduce the amount of capital expense to purchase rights so there would be less tap fee and less expense on CIP side to balance it out. Mayor Pro Tern Maloney also asked what the timing is on when we'd know federal infrastructure bills. Staff said that most staff time has been assigned to working on the Marshall fire and mitigation remedies. The City is working with a consultant to help identify those funds and possibly pursue them on the City's behalf. Staff will bring that information to a future meeting. The Deputy Director of Utilities presented on Water, Wastewater and Stormwater financial planning alternatives, upcoming projects and debt status. Mayor Pro Tern Maloney asked if water projects will be completed in 2023. Staff said that the meter replacement project is currently schedule through 2023 & 2024, which is an aggressive schedule. Mayor Stolzmann submitted a question with Mayor Pro Tern Maloney asking if the Davidson Mesa Drainage Piping project is slated for 2023. Staff didn't think that project is still included for 2023 and will follow up and report back to the committee. No other committee questions on Water, Wastewater or Stormwater were raised. The Deputy Director of Utilities presented the proposed 2023 rates increase. Mayor Pro Tern Maloney expressed appreciation for the City's model because it is forward looking and talks about investing in the infrastructure to maintain good service and utilities. The work that's been done is to be proud of. 5