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HomeMy WebLinkAbout1973-06-18; Water Committee Ad Hoc; MinutesMINUTES OF WATER COMMITTEE Chairman, Colonel Bowen Vice-Chairman, W. Ester line Present: Committee Members: Colonel Bowen, Glenn McComas, Bob Watson, Bill Esterline, Knox Williams Staff: Jack Arnold, City Manager; Hunter Cook, Public Works Director; Thelma Sowel1, Finance Director, Jerome Pieti, Purchas- Ing Agent. Guests: A.J. Skotnicki, Betty Duran 1. Review and Approval of Minutes of Meeting of June 12, 1973 The minutes were approved as submitted. 2. Review Preliminary Budget for Water Enterprise continued 1. Report by Robert Watson on Funding Status Mr. Watson gave a detailed oral report of results of his meeting with the Finance Director and Public Works Director. He reported that the Water Enterprise will be approximately $54,000 below the amount necessary to cover bond reserve requirements at the end of FY 73-74. This is due primarily to the three month delay in establishing the new water rates (three months X $15,000 = $45,000). Also contributing to the deficit was the reduction in water sales due to the unusually wet year we had during 72-73. Mr. Watson was directed by the Committee to prepare his report in written form for submission to the Committee at the next meeting. 2. Discussion of Ways and Means of Funding FY 73-74 Budget 9 Councilman McComas reminded the Committee that accounts receivable as of 6-30-73 do not appear in the ending balance for FY 72-73 and therefore are not included in the apparent funds available for expenditure in FY 73-74. This was con- firmed by the Finance Director. These funds are in fact ava ilable. A motion was made (Watson-McComas) that the "Water Committee recommend to the City Council that they 1) adopt operating budget for FY 73-74 of $871,536; 2) direct the Director of Public Works to retain a $244,000 cash position above the $871,536 at all times; and 3) bring the proposed budget into balance through one of the following alternates: a) dispose of Water Committee Minutes June 18, 1973 Page 2 surplus properties, or b) reallocate existing bond reserve funds and use for operating budget." Considerable discussion ensued. Mr. Arnold advised the Committee that surplus properties sales can be used only to redeem bonds and cannot be used to add to the operating budget. Since additional information is required, the motion will be considered at an adjourned meeting. The Committee requested that the staff obtain a verification from Fritz Stradling concerning the legality of alternate 3(b). 3. Hold Re-election of Officers for FY 73-74 The Chairman advised the Committee that Mr. Esterline had submitted his resignation as Chairman-elect due to pressing business commit- ments. The resignation was accepted and Knox Williams automatically was elevated to Chairman-elect.. Robert Watson was elected Vice- Cha i rman. 4. Set date of next meeting The meeting was adjourned to July 10, 1973 at 4:00 P.M. Respectfully .submitted, •7 HUNTER T. COOK HTC/mac