MESA CITY COUNCIL 'STUDY SESSION' Thu 09.23.2021

Same Presentation as a dry-run try-out at a Budget, Audit & Finance Committee meeting

WHO KNOWS HOW TO STUDY?

Lower Council Chambers 

Roll Call (City Council members participate in person, telephonically, or electronically.) 

1 Review and discuss items on the agenda for the September 20, 2021 regular Council meeting

   Reference: https://mesa.legistar.com/Calendar.aspx 

City of Mesa w FY 2021/22 

Utility Fund Forecast and Rates Recommendations 

Audit, Finance & Enterprise Committee 

September 9, 2021

City Council Study Session Meeting Agenda - Final

Thursday, September 23, 2021 7:30 AM Lower Council Chambers 

Roll Call (City Council members participate in person, telephonically, or electronically) 

 

1 Presentations/Action Items: 

21-0959 Hear a presentation and discuss the Utility Enterprise Fund forecast, and 

provide a recommendation on proposed utility rate adjustments. 1-a 

Agenda Item 1-a

File #:

21-0959

Type:

Presentation

Status:

Agenda Ready

In control:

City Council Study Session

On agenda:

9/23/2021

Title:

Hear a presentation and discuss the Utility Enterprise Fund forecast, and provide a recommendation on proposed utility rate adjustments.

Attachments:

1. Presentation, 2. Council Report, 3. Attachment 1 - Utility Rate Recommendations for FY21-22, 4. Attachment 2 - City of Mesa Utility Fund Cash Flow Projections

2 Current events summary including meetings and conferences attended. 

3 Scheduling of meetings. 

4 Adjournment.¹

 

COMMITTEE REPORT IS 12 PAGES

 

Audit, Finance and Enterprise Committee Report

Date: September 9, 2021

To: Audit, Finance and Enterprise Committee

Through:

Michael Kennington, Deputy City Manager/Chief Financial Officer

John Pombier, Assistant City Manager

Marc Heirshberg, Deputy City Manager

 

From:

Brian Ritschel, Management and Budget Assistant Director

Scott Bouchie, Environmental Management and Sustainability Director

Frank McRae, Energy Resources Director

Jake West, Water Resources Director

 

Subject: Fiscal Year 2021/2022 Utility Rate Recommendations

 

Attachments: 

1. FY 2021/22 Utility Rate Adjustment Recommendation Summary 

2. City of Mesa Utility Enterprise Fund Cash Flow Projections

_________________________________________________________________________

PRESENTATION IS 46 SLIDES

Presented by: 

• Brian A. Ritschel – Management & Budget Assistant Director
  
• Jake West – Water Resources Director 
  
• Scott Bouchie – Environmental Management & Sustainability Director 
  
• Frank McRae – Energy Resources Director
  

WATER

Slide 6

Increasing Costs/Pressures on the Utility  

Water Utility Increases from FY 20/21 Actuals to FY 21/22 budget Operating Expenditure 

• Water Commodity Costs $2.6M 

• Treatment Plant Chemicals $0.8M 

• Treatment Plant Power Costs $1.0M 

• Personnel $1.9M

Slide 7

Increasing Costs/Pressures on the Utility  

Water Utility Increases from FY 20/21 actuals to FY 21/22 budget 

• Existing Debt Service $8.4M 

• Includes debt issued for past capital improvement projects 

• Signal Butte - Phase I 

• Waterline Replacement Projects 

• Refundings FY20/21 > FY21/22

Future Capital Improvement Projects Water Utility 

Central Mesa Reuse Pipeline Growth and Sustainability with ROI 

• Provide for economic growth 

• Greater water system reliability 

• Drought mitigation 

• Project Cost $72M

Future Capital Improvement Projects Water Utility 

East Mesa Water Interconnect Growth and Sustainability with Flexibility 

• Move 5 -10MGD between treatment plants 

 Greater system reliability through diversification 

• More operational resiliency through capacity sharing 

• Project Cost $82M  

Future Capital Improvement Projects 13 Water Utility 

Signal Butte WTP Expansion Growth 

• Increase plant capacity from 24MGD to 48MGD 

• Support residential & commercial development 

• Help SE Mesa to realize full potential 

• Maximize renewable resource - GRIC 

• Project Cost $98M

================================================================================================================================

File #:

21-0764

Type:

Presentation

Status:

Agenda Ready

In control:

Audit, Finance and Enterprise Committee

On agenda:

9/9/2021

Title:

Hear a presentation and discuss the Utility Enterprise Fund forecast, and provide a recommendation on proposed utility rate adjustments.

Attachments:

1. Presentation, 2. Committee Report, 3. Attachment 1 - Utilty Rate Recommendations for FY2122, 4. Attachment 2 - City of Mesa Utility Fund Cash Flow Projections