HomeMy WebLinkAbout2023.05.02 WUCFD Minutes ambers
City of Apache Junction Arizona CityCESupChtition
� 300 E Superstition
Boulevard
Apache Junction,AZ
Special Meeting Minutes 85119
Water Utilities Community Facilities www.ajwaterdistrict.org
P:(480)982-6030
District
Tuesday,May 2,2023 6:00 PM City Council Chambers
A. Call to Order
Chairperson Wilson called the special meeting to order at 6:01 p.m.
B. Roll Call
Present 6- Chairperson Wilson, Boardmember Cross, Boardmember Heck, Boardmember
Johnson, Boardmember Nesser,and Boardmember Soller
Excused 1 - Vice Chair Schroeder
Staff in attendance:
Bryant Powell, District Manager
Matt Busby,Assistant District Manager
Jennifer Pena, District Clerk
Joel Stern, District Legal Counsel
Mike Loggins, District Director
Charles Briggs,Water District Project Manager
Stacy Ramirez, Utility Billing Supervisor
Rita Vineyard, Senior Administrative Assistant
Leslie DeReche, District Treasurer
Connie Chow, District Controller
Evie McKinney, Deputy District Clerk
Al Bravo, Public Information Officer
Eli Richardson, Management Analyst
Rob Wisler, Management Analyst
C. Agenda Items
1. 23-233 Discussion on proposed District budget for Fiscal Year(FY 2023-2024)to
include proposed rates, fees, and charges applicable during FY
2023-2024 and classification and compensation plan for District
employees.
District Director Mike Loggins presented an overview of the proposed District budget for Fiscal
Year(FY)2023-2024 to include proposed rates,fees, and charges applicable during FY
2023-2024 and classification and compensation plan for District employees.
Mr. Loggins presented an overview of the current fiscal year's budget.The FY 2022-2023
budget is expected to be$13.7 million.The District is using reserves to fund some additional
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Water Utilities Community Facilities Special Meeting Minutes May 2,2023
District
projects including wells and booster pumps, and the pipeline that was approved in April 2023.
With these additional projects, the District is projected to spend around$15 million.
Mr. Loggins presented an overview of the FY 2023-2024 budget. The Water District is
proposing a budget of$11 million. System connection fees and water resource acquisition fees
make up a large portion of the revenue.The system connection fees will be used for upgrading
the water system. The water resource acquisition fees will be used for purchasing additional
water in the future.These funds are put into a saving account and are used for major projects.
Expenses are made up of daily operations, debt services, capital outlay and contingency
dollars for a total of$11 million.A loan from 2008 was paid off and an additional loan for the
construction of the water treatment plant has approximately 5 years of payments remaining.
The contingency is used for unexpected emergencies that may come up during the year.
Some of the larger projects proposed for FY 2023-2024 include installation of the bi-directional
pipeline from the Superstition Area Water Plant to the Apache Junction Sewer District, roll out
of the new utility billing software, and a pilot study for advanced water treatment.
Work continues with Salt River Project on the Verde River Sedimentation Mitigation study for a
cost of$100,000 per year over the next three years, the District is currently in year three of the
study.
The District continues to purchase Non-Indian Agricultural water.This will occur over the next
five years at a cost of$325,000 per year and the District is in year three of paying for back
capital charges incurred over the last 25 years that Central Arizona Project has had the
Non-Indian Agricultural water.
Mr. Loggins presented an overview of the proposed rate adjustments for FY 2023-2024. For
customers within the city limits this adjustment would include a 5% increase in the base rate
and no change to the consumption rate or tiers for a total of 2.2%overall increase or$1.58 per
month. For customers in the county area this adjustment would include a 5% increase in the
base rate, 5% increase in the consumption rate and, no change to any consumption tiers for a
total of 4.7%overall increase or$4.00 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 1,2023.
Mr. Loggins is proposing an 8.5% increase in system connection fees.The increase is based
on the current consumer price index for construction.This is a one-time fee and is only for new
development.These fees help to maintain the current system as well as cover costs for future
upgrades.Water Resource Acquisition fees are also increasing.These fees help to pay for the
purchase of water used in the District.
Mr. Loggins presented an overview of the proposed classification and compensation plan for
District Employees.This will include a 3.5%increase in the compensation plan and a one-step
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Water Utilities Community Facilities Special Meeting Minutes May 2,2023
District
increase for all employees.There is an anticipated 3.75% increase on average to health
insurance premiums.This 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 16, 2023, and the final budget will be presented on Tuesday, June
20, 2023, 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. District Treasurer Report
No report.
G. Adjournment
Chairperson Wilson adjourned the meeting at 6:36 p.m.
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Water Utilities Community Facilities Special Meeting Minutes May 2,2023
District
ACCEPTED THIS DAY OF 2023, BY THE CHAIR
PERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES
DISTRICT, (CITY OF APACHE JUNCTION,ARIZONA). -�--
SIGNED AND ATTESTED TO THIS r�20 DAY OF 12023.
WALTER" HIP"WILSON
Chairperson
ATTEST:
an0—
PE4k
District Clerk
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
special meeting of the Water Utilities Community Facilities District of the City of Apache
Junction,Arizona, held on the — day of 00 , n;?A�3
. I further certify that the meeting was duly called and held and tha a quorum was present.
Dated this c2U day of ?.c. ,a 12023.
JE NI ER PEN
District Clerk
City of Apache Junction,Arizona Page 4