HomeMy WebLinkAbout2022.05.03 WUCFD Minutes • City of Apache Junction, Arizona C'OOEncilChtitionrs
Boulevard
F
Apache Junction,AZ
Meeting Minutes 85119
Water Utilities Community Facilities www ajwaterdistrict org
District P:(480)982-6030
Tuesday, May 3, 2022 6:00 PM City Council Chambers
A. Call to Order
Chairperson Wilson called the meeting to order at 6:04 p.m.
B. Roll Call
Present 4- Chairperson Wilson, Boardmember Evans, Boardmember Nesser, and
Boardmember Schroeder
Excused 1 - Vice Chair Rizzi
Staff in attendance
Bryant Powell, District Manager
Jennifer Pena, District Clerk
Joel Stern, District Legal Counsel
Mike Loggins, District Director
Charles Briggs, Water District Project Manager
Evie McKinney, Utility Billing Supervisor
Leslie DeReche, District Treasurer
Connie Chow, District Controller
C. Agenda Items
1. 22-291 Discussion on proposed District budget for Fiscal Year (FY 2022-2023) to
include proposed rates, fees, and charges applicable during FY 2022-2023
and classification and compensation plan for District employees.
District Director Mike Loggins presented an overview of the proposed District budget for Fiscal
Year(FY) 2022-2023 to include proposed rates, fees, and charges applicable during FY
2022-2023 and classification and compensation plan for District employees.
Mr. Loggins presented an overview of the current fiscal year's budget. The FY 2021-2022 budget
was expected to be $7.1 million dollars. The District did not do some of the planned capital
improvement projects because of the work being done in the annexed state land area. The
Water District is projected to spend $5.9 million dollar and will be under budget for FY 2021-22.
Mr. Loggins presented an overview of the FY 2022-2023 budget. The Water District is proposing
a $13.7 million dollar budget. Operating revenue will increase slightly and will include a few new
positions due to the state land development. The District will be using some reserves for capital
outlay in the state land area and projects that were not done in the FY 2021-2022 period and will
City of Apache Junction,Arizona page 1
Water Utilities Community Facilities Meeting Minutes May 3, 2022
District
be extended into FY 2022-2023.
Some of the larger projects proposed for FY 2022-2023 include building a raw water pipeline
from the Superstition Area Water Plant to the Superstition Mountain Community Facilities
District No. 1, drilling a new well at the Superstition Vistas Subdivision site, purchasing radios
used for reading meters for existing service connections; and designing and constructing a new
pump station at Booster Station No. 2.
Other expenditure increases include the purchasing of new utility billing software. The District is
currently using AS400 which was developed in the 1980s. The new software is part of the city's
Munis package and will tie directly into the financial system. This will reduce the additional work
required between the two different software programs currently in use.
Central Arizona Project proposes an increase in operations and maintenance fees and capital
fees which will be roughly$40,000 dollars.
Work continues with Salt River Project on the Verde River Sedimentation Mitigation study for a
cost of$100,000 dollars per year over the next three years, the District is currently in year two of
the study. This allows the District to participate in the decision process as to matting who will
receive the water in the future.
The District continues to purchase Non-Indian Agricultural water. This will occur over the next
five years at a cost of$325,000 dollars per year and the District is in year two of paying for back
capital charges incurred over the last 25 years that Central Arizona Project has had the
Non-Indian Agricultural water.
Boardmember Nesser asked about the pipeline and well to be built and why the District was
paying for the construction and not the developer. Mr. Loggins explained the District is covering
the costs of these projects because this benefits the entire District and not just the development
in the state land area. These projects will enable the District to save water for future use to all
our customers. District Manager Powell confirmed that the credits would benefit the entire
system.
Boardmember Schroeder asked if drilling a new well would mean a new water source for
Superstition Vistas. Mr. Loggins stated that the well would be for all customers and the well
would initially be used for additional water storage, not for tapping into a new water source. The
well will be used to put water back into the ground and will create a storage facility for future use
if needed.
Mr. Loggins presented an overview of the proposed rate adjustments for FY 2022-2023. For
customers within the city limits this increase would include a 5% increase in the base rate and
no change to the consumption rate or tiers for a 2.2% overall increase or$1.50 per month. For
customers in the county area this increase would include a 5% increase in the base rate, 5%
increase in the consumption rate and, no change to any consumption tiers for a 4.8% overall
City of Apache Junction,Arizona page 2
Water Utilities Community Facilities Meeting Minutes May 3, 2022
District
increase or$3.83 per month. He proposed an increase in the residential connection fees and
water acquisition fees which will not affect current customers. The increases will go into effect
October 1, 2022.
Boardmember Evans asked why a manufactured home and single-family home were not
categorized the same. She also had questions regarding how single family and multi-family
homes were determined. Mr. Loggins stated he would get clarification on these questions and
would report at the next meeting.
Mr. Loggins presented an overview of the proposed classification and compensation plan for
District Employees This will include a 7.7% average increase in the compensation plan and a
3.75% increase on average to health insurance premiums. The premium cost is shared
between the District and the employee.
Mr. Loggins presented the upcoming budget meeting schedule. The tentative budget will be
presented on Tuesday, May 17, 2022, and the final budget will be presented on Tuesday, June
21, 2022, at 6:00 p.m. in the Apache Junction City Council Chambers.
D. District Manager Report
No report.
E. District Director Report
No report.
F. Adjournment
Chairperson Wilson adjourned the meeting at 6:138 p.m.
ACCEPTED THIS a?I�+ DAY OF 2022, BY THE CHAIR
PERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES
DISTRICT, (CITY OF APACHE JUNCTION, ARIZONA).
SIGNED AND ATTESTED TO THIS DAY OF !1 2022
WALTER "CHIP" WILSON
Chairperson
EST:
I ,
v JEINNIFER PENA
District Clerk
City of Apache Junction,Arizona Page 3
Water Utilities Community Facilities Meeting Minutes May 3, 2022
District
WATER UTILITIES COMMUNITY FACILITIES DISTRICT MINUTES
CERTIFICATION
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
regular meeting of the Water Utilities Community Facilities District of the City of Apache
Junction,Arizona, held on the ' �-d" day of 1M A�Lt , '�U
further certify that the meeting was duly called and held and that a quorum was present.
Dated this a� day of �{ G1 2022.
JENNIFER PENA
District Clerk
City o/Apache Junction,Arizona page 4