Great Lakes Water Audit Commiittee Meeting Ag e nda F ...
Transcript of Great Lakes Water Audit Commiittee Meeting Ag e nda F ...
1. C
2. R
3. A
4. A
5. P
6. O
7. N
ALL TO ORD
OLL CALL
APPROVAL O
APPROVAL O
A. Janua
UBLIC PART
OLD BUSINES
A. Water
Prese
Propo
B. Financ
Prese
Monic
Bart F
NEW BUSINE
A. Propo
Prese
Propo
Autho
Intent
excee
B. Propo
Prese
Propo
Autho
Intent
to exc
2016
DER
F AGENDA
F MINUTES
ry 15, 2016
ICIPATION
SS
r and Sewer
nter: Dan H
osed Action:
cial Planning
nter: Nicole
ca Daniels, C
Foster, The F
SS
osed Water B
nter: Jon Wh
osed Action:
ority Board a
t to issue wa
d $300,000,
osed Sewer B
nter: Jon Wh
osed Action:
ority Board a
t to issue sew
ceed $125,00
F
5th Fl735 R
A
Refunding &
artman and
Receive an
g Update: Bu
ette N. Bates
Capital Mana
Foster Group
Bond Notice
heatley, Pub
The Audit C
approves the
ater supply s
000 as prese
Bond Notice
heatley, Pub
Audit Comm
approves the
wage dispos
00,000 as pr
Great LaAu
Me
Friday, Feb
loor Board Randolph St
G
AGENDA
& New Mone
Kari Blanch
d file Report
udget, Capita
son, CPA, Ch
ager, John W
p, LLC
of Intent Re
blic Finance M
Committee r
e resolution
system reven
ented at its
of Intent Re
blic Finance M
mittee recom
e resolution
sal system re
resented at i
akes Waterudit Commi
eeting Age
bruary 5, 20
Room, Wattreet, DetroGLWater.or
ey Timeline
ett, PFM; Jo
t
al, & System
hief Financia
Wheatley, Pu
esolution
Manager
recommends
authorizing
nue bonds in
Regular Mee
esolution
Manager
mmends tha
authorizing
evenue bond
its Regular M
r Authority ittee
enda
016 at 8:00
ter Board Boit, Michiganrg
& Task List f
on Wheatley
m of Revenue
l Officer/Tre
ublic Finance
s that the G
publication
n a principal
eting on Feb
at the Great
publication
ds in a princi
Meeting on F
0 a.m.
Building n 48226
for 2016
, Public Man
es/Charges
easurer,
e Manager, a
reat Lakes W
of Notice of
amount not
bruary 10, 20
Lakes Wate
of Notice of
ipal amount
February 10,
nager
and
Water
f
t to
016
r
f
not
,
(Page 1)
(Page 4)
(Page 8)
(Page 21)
(Page 26)
8. REPORTS
A. DWSD Retail System Revenue and Collections Verbal Update
Presenter: Marcus Hudson, CPA, Chief Financial Officer, DWSD
B. December 2015 Wholesale Water Revenue Report – Variance Analysis
Presenter: Jon Wheatley, Public Finance Manager
Proposed Action: Receive and file the report
C. ERP and HRIS/Payroll Implementation Verbal Update
– Dan Rainey, DWSD IT Director and Mike Huber, GLWA Finance Director
D. Chief Financial Officer Verbal Update
‐ Nicolette N. Bateson, CPA, Chief Financial Officer/Treasurer
9. INFORMATION
A. Billing Status Report – City of Flint
B. Billing Status Report – City of Highland Park
C. Transition Budget ‐ Competitive Grant Assistance Program
10. LOOK AHEAD
Next Meeting: Friday March 4, 2016 at 8 am
11. OTHER MATTERS
12. ADJOURNMENT
(Page 30)
(Page 33)(Page 34)
(Page 35)
Page 1
AGENDA ITEM #4A
Page 2
Page 3
Date: Fe
To: G
From: Jo
Re: R
Backgrou
PFM was
refunding
Analysis:
with draf
conclude
about six
Since theof any intmeeting
Budget Im
net prese
million o
approxim
are betw
average a
Proposed
ebruary 5, 2
Great Lake W
on Wheatley
eport: Prop
und: At the
s asked to pr
g transactio
: Based on t
fting of a req
e with the bo
x months to
e outstandinterest payma July 1 call,
mpact: As p
ent value (N
ver the rem
mately $3.4 m
ween $16.6 m
annual savin
d Action: R
016
Water Author
y, Public Fina
posed Time S
January 15,
repare an es
n.
the attached
quest for pro
ond closing t
complete th
g bonds beiment date), th, which gives
presented at
PV) savings
aining life of
million to $4
million and $
ngs of appro
Receive and f
rity Audit Co
ance Manag
Schedule for
2016 the Au
timated tim
d schedule, t
oposal to sel
the week of
he transactio
ng considerehe Great Laks GLWA mor
t the January
for the Wate
f the bonds,
4.9 million. T
$56.2 million
ximately $0.
file report.
Aud
ommittee
er
r Water and
udit Commit
e schedule t
the process w
lect an unde
August 1, 20
on.
ed for refunkes Water Aure flexibility
y 15, 2016 A
er System ar
which is an
The estimate
over the re
.79 million t
Great La
Fin
dit Comm
Sewer Refu
ttee meeting
to complete
would begin
erwriter for t
016. This wo
ding are all cuthority (GLin the time s
Audit Commi
re between
average ann
ed NPV savin
maining life
o $2.7 millio
akes Wat
nancial Se
mittee Com
nding Bonds
g, GLWA’s fin
e a water and
n the week o
the transact
ould give the
callable on aLWA) is not rschedule.
ttee meetin
$72.0 millio
nual savings
ngs for the S
of the bond
on.
ter Autho
ervices Gr
mmunica
s
nancial advis
d sewer
of February 8
tion and
e financing t
any date (insrestricted to
ng, the estim
n to $98.3
s of
Sewer System
ds, which is a
ority
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stead
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an
Page 4
AGENDA ITEM #6A
Great Lakes Water AuthorityWater and Sewer Systems Revenue [and] Refunding Bonds, Series 2016
DRAFT Financing Critical Path
February March April May June JulyS M T W Th F S S M T W Th F S S M T W Th F S S M T W Th F S S M T W Th F S S M T W Th F S
1 2 3 4 5 6 1 2 3 4 5 1 2 1 2 3 4 5 6 7 1 2 3 4 1 2
7 8 9 10 11 12 13 6 7 8 9 10 11 12 3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11 3 4 5 6 7 8 9
14 15 16 17 18 19 20 13 14 15 16 17 18 19 10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18 10 11 12 13 14 15 16
21 22 23 24 25 26 27 20 21 22 23 24 25 26 17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25 17 18 19 20 21 22 23
28 29 27 28 29 30 31 24 25 26 27 28 29 30 29 30 31 26 27 28 29 30 24 25 26 27 28 29 30
31
FebruaryS M T W Th F S
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29
MarchS M T W Th F S
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31
AprilS M T W Th F S
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
MayS M T W Th F S1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
JuneS M T W Th F S
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30
JulyS M T W Th F S
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31
As of 2/1/2016
DateResponsible
Parties
Week of February 8Distribute draft of Underwriter RFP to GLWA FA
Week of February 15February 16, 2015 President's Day Holiday - Bond Market Closed -
Week of February 22Underwriter RFP distributed GLWA
Week of February 29March 4, 2016 Audit Committee Meeting (informational only) -
Week of March 7March 11, 2016 Underwriter proposals due -
Week of March 14Review and tabulate underwriting proposals FASelect underwriters to be interviewed, if applicable GLWADistribute first draft of Supplemental Ordinances and Resolution BC
Week of March 21Underwriter interviews GLWA, FASelect underwriting team and appoint underwriter's counsel GLWA
March 23, 2016 GLWA Board Meeting (informational only) -March 25, 2016 Good Friday - Bond Market Closed -
Week of March 28April 1, 2016 Audit Committee Meeting to review Supplemental Ordinances and Resolution -
Begin preparing draft POS UC
Week of April 4Prepare draft POS UCKick-off meeting/conference call with financing team AllDetermination made on issuing debt by GLWA or Michigan Finance Authority* All
Event
Page 5
As of 2/1/2016Page 2 of 3
DateResponsible
PartiesEvent
Week of April 11Prepare draft POS UCSubmit GLWA Board Package and Resolution GLWA, BC
Week of April 18Distribute first draft of POS UC
Week of April 25Working group call to review first draft POS (professional team) BC, FA, UW, UC
April 27, 2016 GLWA Board Meeting - Adopt Resolution / Approve Supplemental Ordinances GLWAApril 29, 2016 File long form application package with Michigan Department of Treasury GLWA, FA
Prepare draft Rating Agency Presentation FA
Week of May 2Prepare draft Rating Agency Presentation FADistribute first draft of Escrow Agreements BCPublish Supplemental Ordinances in Local Paper BC, GLWA
Week of May 9Distribute second draft of POS UCDistribute first draft of Rating Agency Presentation FADistribute first draft of Bond Purchase Agreement UC
Week of May 16Call to review second draft of POS AllCall to review first draft of Rating Agency Presentation GLWA, FA, UWDistribute second draft of Rating Agency Presentation FA
Week of May 23
Distribute third draft of POS UCDistribute second draft of Bond Purchase Agreements UCDistribute second draft of Escrow Agreements BCSchedule rating meetings FA
Week of May 30May 30, 2016 Memorial Day Holiday - Bond Market Closed -
June 3, 2016 Receive approval from Michigan Department of Treasury -Finalize Rating Agency Presentation FAProvide materials to ratings analysts FADistribute first draft of Investor Roadshow UW
Page 6
As of 2/1/2016Page 3 of 3
DateResponsible
PartiesEvent
Week of June 6Rating Agency meetings GLWA, FA, UDistribute second draft of Investor Roadshow UWSelect Printer and Verification Agent FA, GLWA
Week of June 13Finalize Investor Roadshow UWRecord Investor Roadshow GLWA, UW, FA
Week of June 20Receive ratings FA, GLWAPost POS and Investor Roadshow UC
Week of June 27Investor marketing UW
July 1, 2016 First call date for current refunded bonds -
Week of July 4July 4, 2016 Independence Day Holiday - Bond Market Closed -
Investor marketing UW
Week of July 11July 13, 2016 Bond Pricing / Sign Bond Purchase Agreement All
Circulate draft Final Official Statement UC
Week of July 18Publish Final Official Statement UCClosing document preparation All
Week of August 1August 1, 2016 Closing All
Redemption notices provided TT
GLWA Issuer Great Lakes Water AuthorityFA Financial Advisor Public Financial Management, Inc.BC Bond Counsel Dickinson Wright PLLCUW Senior Managing Underwriter [TBD]UC Underwriter's Counsel [TBD]TT Trustee U.S. Bank, N.A.
* If bonds are issued through Michigan Finance Authority, additional steps and parties will need to be added to this timeline.Note: schedule is preliminary and subject to adjustment.
Page 7
Date: Fe
To: G
From: N
Re: F
Backgrou
and FY 20
Analysis:
reviewed
Proposed
ebruary 5, 2
Great Lake W
Nicolette Bat
inancial Plan
und: The FY
017 System
: Attached a
d at the Aud
d Action: R
016
Water Author
eson, CPA, C
nning Updat
Y 2017 & 201
of Revenues
are a numbe
it Committe
Receive and f
rity Audit Co
Chief Financ
e: Budget, C
18 Biennial B
s/Charges fin
er of items re
e meeting.
file report.
Aud
ommittee
ial Officer/T
Capital, & Sys
Budget, FY 20
nancial plan
elated to fin
Great La
Fin
dit Comm
Treasurer
stem of Rev
017‐2021 Ca
ning cycle is
ancial plann
akes Wat
nancial Se
mittee Com
enues/Charg
apital Improv
s underway.
ning cycle tha
ter Autho
ervices Gr
mmunica
ges
vement Plan
at will be
ority
roup
tion
n,
Page 8
AGENDA ITEM #6B
The Grea
1. FY
2. FY
3. FY
The oper
2016. Th
Date
Tuesday,
Tuesday,
Wednesd
Thursday,
Friday, Jan
Wednesd
Tuesday, J
Wednesd
Thursday,
Friday, Jan
Friday, Fe
Monday,
Wednesd2016
Wednesd2016
Wednesd
Wednesd
Wednesdor TBD
at Lakes Wat
Y 2017 ‐2018
Y 2017 – 202
Y 2017 Sche
rational effe
he schedule
November 17
November 17
ay, January 1
, January 14,
nuary 15, 201
ay, January 2
January 26, 2
ay, January 2
, January 28,
nuary 29, 201
ebruary 5, 201
February 8, 2
ay, February
ay February 2
ay, March 2,
ay, March 2,
ay, March 2,
FY 2017/18
ter Authority
8 biennial bu
21 Five Year
dule of Reve
ctive date fo
below reflec
Act
7, 2015 Cu
7, 2015 Cu
13, 2016 GLW
2016 CuBu
16 GLWBu
20, 2016 Int
2016 GLWCa
27, 2016 GLWand
2016 Cu
16 Ma(m
16 GLWof
2016 Pucirc
10, GLWRevCa
24, GLW
2016 GLW
2016 GLWand
2016 GLWBuCa
8 Financial P
y (GLWA) FY
udget
Capital Imp
enues and C
or the region
cts planning
tivity
stomer Rollo
stomer Rollo
WA Worksho
stomer Rollodget
WA Audit Codget Request
ernal ‐ Deadl
WA Capital Ppital Improve
WA Board Md Charges and
stomer Rollo
ail Notice to Cinimum 30 da
WA Audit CoRevenues and
blish notice oculation (B)
WA Board Wvenues and Cpital Improve
WA Board W
WA Board M
WA Board Md Charges (Ac
WA Board Mdget, FY 2017pital Improve
Planning Cyc
Y 2017/18 Fin
provement P
harges
nal system a
for the first
ut Meeting #
ut Meeting #
op ‐ Customer
ut Meeting #
mmittee Meet
ine for Budge
lanning Commement Plan fo
eeting ‐ Presed Request for
ut Meeting #4
Customers of ays prior to A
mmittee Meed Charges and
of the hearing
orkshop ‐ RevCharges, FY 20ement Plan
orkshop ‐ Rev
eeting ‐ Publi
eeting ‐ Publict 279, minim
eeting – Prop7 Schedule ofement Plan
Great LaFin
cle (as of 2.3
nancial Plan
Plan
ssets by GLW
t full operati
1 – Capital Im
2 – Units of S
r Outreach Pr
3 ‐ Status Rep
eting ‐ Status
et Request fo
mittee – Presor Review
ent Proposedr FY 2017/18
4 ‐ Proposed
Public HearinAct 279 Public
eting ‐ Reviewd FY 2017/18
g by publicatio
view of Propo017/18 Bienn
view of FY 20
ic Hearing on
ic Hearing onmum 120 days
posed Approvf Revenues an
akes Watnancial Se
3.2016)
ning Cycle in
WA began o
ng fiscal yea
mprovement P
Service
rogram and S
port: FY 2017
Report re: FY
r Cost of Serv
sent Proposed
d FY 2017 SchBiennial Bud
Service Char
ng to be held c Hearing) (D)
w of FY 2017 8 Biennial Bud
on in a newsp
osed FY 2017nial Budget, a
017/18 Bienni
FY 2017/18 B
FY 2017 Sches before effec
val of FY 2017nd Charges, a
ter Authoervices Gr
ncludes:
n January 1,
ar for the GL
Plan
chedule
7/18 Biennial
Y 2017/18 Bie
vice Analysis
d FY 2017‐21
edule of Reveget Public He
ges
on March 2, )
Proposed Schdget Request
paper of gene
Schedule of nd FY 2017‐2
ial Budget
Biennial Budg
edule of Revective date) (C)
7/18 Biennial nd FY 2017‐2
ority roup
WA.
ennial
enues earing
2016
hedule
eral
21
get (A)
enues )
21
Page 9
(A) thru (D) ‐ The above schedule is designed to meet applicable statutory and contractual
requirements with excerpts shown below.
A. Uniform Budgeting and Accounting Act, Act 2 of 1968, Section 141.434, “Before final
passage of a general appropriations act by the legislative body, a public hearing shall be
held as required by 1963 (2nd Ex Sess) PA 43, MCL 141.411 to 141.415, and the open
meetings act, 1976 PA 267, MCL 15.261 to 15.275.” (For purposes of Public Act 2, the
GLWA Board is the legislative body.)
B. Budget Hearings of Local Governments, Act 43 of 1963 (2nd Ex. Sess.), Section
141.412, “The local unit shall give notice of the hearing by publication in a newspaper of
general circulation within the local unit at least 6 days before the hearing.” (For
purposes of Public Act 2, the GLWA Board is a local unit.)
C. Home Rule City Act, Act 279 of 1909, Section 117.5e, “Municipal water or sewage
system; annual audit; public hearing before proposed rate increase. A municipal water
or sewage system established by a city incorporated under this act which serves more
than 40% of the population of the state shall: ….(b) Hold at least 1 public hearing at least
120 days before a proposed rate increase is scheduled to take effect. Each hearing shall
be conducted in compliance with Act No. 267 of the Public Acts of 1976, being sections
15.261 to 15.275 of the Michigan Compiled Laws. Notice of the time, date, and place of
each hearing shall be given in the manner required by Act No. 267 of the Public Acts of
1976, shall be prominently printed in a daily newspaper of general circulation within the
area, and shall be mailed to each city, village, or township served by the system not less
than 30 days before each hearing. A final vote by the governing body of the city to
implement a proposed rate increase shall not be taken until the hearings provided for in
this subdivision are concluded and the results of those hearings are considered by the
city's governing body.” (Emphasis added)
It should be noted that the Home Rule City Act does not apply to GLWA. It is relevant to
GLWA’s planning cycle, however, as it is referenced in the Wholesale Customer Model
Water Contract as noted below.
D. GLWA Wholesale Customer Model Water Contract Section 7.02 provides: “Notification
of Rates. As soon as possible in the ratemaking process, the Board shall provide
information on proposed rates and the draft data and information used in the
calculation of proposed rates in a format that will enable Customer to assist in the
ratemaking process. Not less than thirty calendar days prior to the hearing required by
Act 279, the Board shall provide Customer with written notice of a proposed rate and
the underlying data used to calculate the rate. The Board shall meet with Customer to
review the rate and the data.” (Emphasis added; Act 279 is the Home Rule City Act
noted above.)
Page 10
T F G
THE FOSTER GROUP P.O. BOX 26282 The Foster Group, LLC Leawood, KS 66225 Bart Foster, President Tel: (913) 345-1410 Cell: (913) 530-6240 Fax: (913) 345-1640 [email protected]
MEMORANDUM
FY 2017 Service Charge Recommendations February 5, 2016 Executive Summary
To: GLWA Audit Committee
From: Bart Foster
The intent of this memorandum is to provide an Executive Summary of the recommended FY 2017 water and sewer service charges for GLWA. The calculation of the proposed service charges for each customer is set forth in detail in our “FY 2017 Cost of Service Study and Service Charge Recommendations” memorandum dated January 26, 2016, which has been previously distributed to the GLWA Board and which was presented to customer representatives last week. Herein we provide additional summary information designed to highlight key points and answer important question that have arisen during the initial review and presentation of our recommendations.
Key Messages:
1. The recommended service charges deliver on the premise of the MOU and the Lease tolimit annual increases in the overall BUDGET to 4% annually. The FY 2017 BUDGETsupported by these recommended service charges reflects a 4% increase compared to theFY 2016 BUDGET approved by the DWSD Board of Water Commissioners last March.• The overall total BUDGET and Financial Plan supported by the proposed service
charges is largely consistent with that contained in the disclosure documentssupporting the DWSD refunding bonds issued in December 2015. Debt servicecoverage ratios and other metrics are quite similar.
• The overall financing plan will continue to be modified as preparations forpotential new money and refunding transactions are considered in the comingmonths.
2. An additional premise in the MOU and the Lease is that service charges “ . . . andpercentage increases for different customers may vary in order to meet their specificrevenue requirements.” This premise is also delivered by the recommended service
Page 11
FY 2017 Service Charge Recommendations February 5, 2016 Executive Summary Page 2
charges, as different customers will experience different impacts as a result of these recommendations. • See discussion below for Water and Sewer specific impact analyses.
3. The proposed service charges support and reflect a “bottom line” approach to the overallFY 2017 BUDGET.• It is our understanding that GLWA management is committed to delivering a final
budget that will live within the bottom line and we believe that the generalallocations supported by the proposed service charges reasonably and accuratelyreflect the final budget.
4. The proposed annual revenue requirement allocable to the Detroit Customer Class ispreliminary, in that charges from GLWA to the Detroit Customer Class will containcertain “indirect” retail service elements.• Some of these elements are subject to specific budget development for the DWSD
Local System, including decisions regarding use of the Lease Payment and relatedmatters.
Impact Analysis & Summary – Water Supply System:
• While the total BUDGET for FY 2017 only reflects a 4% increase from FY 2016, theprojected annual sales volumes for FY 2017 (which reflect the 24 month averagethrough September 2015) are about 0.8% lower than those projected for FY 2016(which reflect the 24 month average through September 2014). Also, projectedmiscellaneous revenues for FY 2017 are projected to be slightly lower than FY 2016.As a result, the overall average “unit cost” inherent within the service charges mustincrease by approximately 4.5% in order to produce a 4% revenue increase andbalance the FY 2017 BUDGET.
o Each customer’s projected sales for FY 2017 vs. FY 2016 dictates how theirproposed service charges are impacted by this element. Customers withincreased sales volumes experience less of an increase (or a decrease) thanthose with reduced sales volumes.
• Seven customers (four of them very large customers) materially reduced theircontractual max day and peak hour demands through scheduled contract reopenersand/or new contracts. As a result, these customers are allocated approximately $6.5million less than they would have been allocated had their contract demands remainedat FY 2016 levels.
Page 12
Page 13
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Page 15
Page 16
GREAT LAKES WATER AUTHORITYFY 2017 and 2018
Biennial Budget Development
Page 17
FY 2017 & 2018 Budget Development
• Many Firsts• First year of biennial budgeting
• First year of new GLWA organizational structure
• Foundation for first FY 2016 budget amendment
• Transitional Matters• Validation of bifurcated FY 2016 budget
• Supports design and implementation of shared services billing
• Coordination with ERP and Ceridian rollout• Leaner general ledger structure
• Improved accounting practices
• Operational validation of bifurcated/assigned contracts andpurchase orders
Page 18
Personnel Budget FY 2017 & 2018–Departmental FTE Requests
3
DWSD Original
FY 2016 Budget
Approved March 2015
FTEs = 1,358
“Bifurcated” GLWA
Estimate in May 2015FTEs = 958
Departmental Requests for GLWA Operations
(under review)
FTEs = 951
Departmental Requests forGLWA Shared Services billed to DWSD at 100%
(under review)
FTEs = 54“Bifurcated” DWSDR
Estimate in May 2015
FTEs = 412
FTE = full-time equivalent employee
Page 19
Next Steps
• Budget update to GLWA Board on February 24, 2016
• Public Hearing March 2, 2016
Page 20
Date: Fe
To: G
From: Jo
Re: P
Backgrou
contemp
GLWA Bo
issuance
Drinking
will be us
City of De
DWRF bo
Detroit w
cycle, wit
17 fiscal y
New Mon
Capital Im
(i.e. reven
the CIP, t
all the pro
are being
reasonab
proceeds
The prop
series, as
the new m
water sup
Analysis:
DWRF: T
Since the
for “disad
qualifies f
ebruary 5, 2
Great Lake W
on Wheatley
roposed Wat
und: As the
plates issuing
oard to issue
is related to
Water Revo
sed for the pu
etroit’s wate
onds will be s
watermain im
th the third a
year.
ney Bond Sal
mprovement
nue financed
he adoption
ojects or for
g developed,
bly expected
s.
osed bonds w
Junior Lien R
money portio
pply system.
: Key eleme
The current p
se water ma
dvantaged co
for $1 million
016
Water Author
y, Public Fina
ter Bond Not
long‐term f
g bonds to fu
e a notice of
o the followi
lving Fund (D
urpose of pa
rmains (WS‐6
sold to the M
mprovement p
anticipated C
le: The rema
Program, les
d capital), for
of the Notic
the maximu
to ensure th
to be comple
will be issued
Revenue bon
on. All series
nts of the pr
program inte
in improvem
ommunity sta
n in “Green P
rity Audit Co
ance Manag
tice of Intent
inancial plan
und the cost
intent to iss
ng.
DWRF): An e
ying all or a p
693, WS‐697
Michigan Fina
projects are
ity of Detroit
aining $260 m
ss the amoun
r the next thr
e of Intent R
m amount au
hat only those
eted within t
d under Publ
nds for the D
s of bonds w
roposed bon
rest rate is 2
ments are for
atus” and ca
Project Reser
Aud
ommittee
er
t Resolution
n for the Gre
t of system i
sues bonds.
estimated $4
part of the co
7 and WS‐698
nce Authorit
approved for
t watermain
million will be
nts available
ree fiscal yea
Resolution do
uthorized. C
e projects th
three years w
ic Act 94 of 1
WRF project
ill be payable
nd issuance
.50% and is t
projects wit
n be payable
rve” principa
Great La
Fin
dit Comm
eat Lakes Wa
mprovemen
The purpos
40 million of
ost of constr
8) through th
ty in three se
r the State’s
improvemen
e used to fun
in the Impro
ars. Although
oes not requi
Currently, pr
at are of hig
will be financ
1933, as ame
ts and as Sen
e solely from
include the
typically paya
thin the City o
e over a 30 ye
al forgiveness
akes Wat
nancial Se
mittee Com
ater Authori
nts, an initial
se of the pro
the total aut
ructing impro
he DWRF pro
eries. Two of
2015‐16 fisc
nt project in
nd projects in
ovement and
h the projects
ire GLWA to
roject by proj
hest priority
ced with the
ended, and s
nior Lien Reve
m the specific
following.
able over a 2
of Detroit, th
ear term and
s. Based on t
ter Autho
ervices Gr
mmunica
ity (GLWA)
l step is for t
oposed bond
thorized amo
ovements to
ogram. The
the City of
cal year fundi
the State’s 2
n the Water
d Extension F
s are identifie
issue bonds
ject cash flow
and can be
new money
old in multip
enue Bonds f
c revenues of
20 year term
he loans qua
d each projec
the combine
ority
roup
tion
the
d
ount
the
ing
2016‐
und
ed in
for
ws
bond
ple
for
f the
.
lify
ct
ed
Page 21
AGENDA ITEM #7A
project amounts of $40 million, DWSD could save an estimated $17.5 million in interest costs,
avoided issuance costs and project costs savings based on a similar open market revenue bond with
a 30 year term and 5.00% interest rate, over the life of the bond issues.
New Money Bond Sale: The New Money Bond issue is scheduled to be sold by GLWA before
December 31, 2016 at a term of 30 years. This amount will reduced if DWRF funding is obtained.
The debt service is currently budgeted at an average interest rate of 5.00%, but given current
market conditions, is expected to be lower.
Budget Impact: The first anticipated debt service payments on the DWRF and New Money Bonds
are included in the FY 2017 Budget and thereafter. The combined average annual debt service for
the three DWRF bond issues ($40 million) is estimated to be $1.8 million per year and the average
annual debt service on the estimated $260 million new money bond issue is approximately $16.9
million.
Proposed Action: The Audit Committee recommends that the Great Lakes Water Authority
Board approves the resolution authorizing publication of Notice of Intent to issue water supply
system revenue bonds in a principal amount not to exceed $300,000,000 as presented at its Regular
Meeting on February 10, 2016.
Page 22
Great Lakes Water Authority Resolution 2016-02-__
RE: Authorizing Publication of Notice of Intent to Issue Water Supply System Revenue Bonds
By Board Member: _____________________________________________________________
Whereas The Great Lakes Water Authority (the “Authority”) is authorized to issue revenue bonds pursuant to the provisions of Act 94, Public Acts of Michigan, 1933, as amended (“Act 94”) for the purpose of paying all or part of the costs of purchasing, acquiring, constructing, improving, enlarging, extending and repairing the Water System as defined in the Regional Water Supply System Lease, dated June 12, 2015, between the City of Detroit and the Authority; and
Whereas The Authority intends to issue one or more series of revenue bonds for the purposes hereinafter set forth; and
Whereas Section 33 of Act 94 requires the publication of a notice of intent to issue bonds at least 45 days prior to the issuance of such bonds.
Now, Therefore Be It:
Resolved That the Chief Financial Officer/Treasurer is hereby instructed to cause the publication of a notice of intent to issue bonds with respect to the hereinafter-described bonds once in the Detroit Legal News, so as to be prominently displayed therein, and it is hereby found that such newspaper has general circulation in the territory of the Authority; And Be it Further
Resolved That the notice of intent to issue bonds shall be in substantially the following form with such necessary or desirable changes as may be approved by the Chief Financial Officer/Treasurer, her approval to be conclusively evidenced by the publication of the notice of intent to issue bonds:
Page 23
2
NOTICE OF INTENT TO ISSUE WATER SUPPLY SYSTEM REVENUE BONDS BY THE GREAT LAKES WATER AUTHORITY
TO THE ELECTORS OF THE CHARTER COUNTY OF MACOMB, THE COUNTY OF OAKLAND AND THE CHARTER COUNTY OF WAYNE:
NOTICE IS HEREBY GIVEN, that the Great Lakes Water Authority (the “Authority”), a municipal authority organized and existing under the provisions of Act No. 233, Public Acts of Michigan, 1955, as amended, intends to issue its water supply system revenue bonds in one or more series in the aggregate principal amount of not to exceed $300,000,000 for the purpose of paying all or part of the cost of acquiring and constructing facilities, replacements, extensions, improvements and repairs to the City’s water supply system (the “Water System”), which Water System is described and defined in the Regional Water Supply System Lease dated June 12, 2015, between the City of Detroit (the “City”) and the Authority (the "Lease"). As set forth in the Lease, the Water System consists of (i) the Regional Water System, which is that portion of the Water System that provides water service to wholesale customers thereof and to individual customers within and outside the City (“Retail Water Customers”) that receive water service directly from the hereinafter described Local Water System up to the point of connection to the Local Water System and (ii) the Local Water System, which is that portion of the Water System that provides service directly to Retail Water Customers. Pursuant to the Lease, the City has leased the Regional Water System to the Authority for a period of forty (40) years and the Authority is authorized to issue revenue bonds under Act No. 94, Public Acts of Michigan, 1933, as amended (“Act 94”) for the foregoing purposes.
The bonds of each series will mature in not to exceed forty (40) years after the original issuance date of the respective series of bonds, and will bear interest at rates to be determined upon the sale thereof but in no event to exceed such rates as may be permitted by law.
SOURCE OF PAYMENT OF REVENUE BONDS
The bonds will be issued under and pursuant to the provisions of Act 94 and a resolution or ordinance of the Board of Directors of the Authority and will be payable from the net revenues of the Water System and any improvements, enlargements and extensions thereto, and a statutory lien on said revenues will be established by said resolution or ordinance. The Authority will covenant and agree to fix and maintain, or cause to be fixed and maintained, at all times while any of the bonds shall be outstanding such rates and charges for service furnished by the Water System as shall be sufficient to provide for payment of the necessary expenses of operation, maintenance and administration of the Water System and of the principal of and interest on the bonds when due, and to provide for such other expenditures, accounts and funds for the Water System as are required by the resolution or ordinance authorizing the issuance of bonds.
Page 24
3
RIGHT TO PETITION FOR REFERENDUM
This notice is given, by order of the Board of Directors of the Authority, to and for the benefit of the electors of the Charter County of Macomb, the County of Oakland and the Charter County of Wayne (collectively, the “Authority District”) in order to inform them of their right to petition for a referendum upon the question of the issuance of the aforesaid bonds. The bonds will be issued, without submitting such a question to a vote of the electors, unless within 45 days after the date of publication of this notice, a petition requesting a referendum upon such question, signed by not less than 15,000 of the registered electors residing in the Authority District shall have been filed with the Secretary of the Authority. The address of the Secretary of the Authority is 735 Randolph, Detroit, Michigan 48226. In the event that such a petition is filed, the bonds will not be issued unless and until the issuance thereof shall have been approved by the vote of a majority of the electors of the Authority District qualified to vote and voting thereon at a general or special election.
FURTHER INFORMATION
Further information relative to the issuance of said bonds, the Lease and the subject matter of this notice may be secured at the office of the Chief Financial Officer/Treasurer of the Great Lakes Water Authority, 735 Randolph, Room 1608, Detroit, Michigan 48226.
This notice is given pursuant to the provisions of Section 33 of Act 94.
Nicolette N. Bateson Chief Financial Officer/Treasurer Great Lakes Water Authority
And Be it Further
Resolved That it is hereby determined that the foregoing form of notice of intent to issue bonds and the manner of publication so directed are adequate notice to the electors of the constituent public corporations of the Authority and are well calculated to inform them of the intention of the Authority to issue the revenue bonds, the source of payment therefor, and the right of referendum on the revenue bonds; And Be it Further
Resolved That all resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded.
Adopted by the Great Lakes Water Authority Board on: ________________________________ BLOOMFIELD 63818-5 1583703v1
Page 25
Date: Fe
To: G
From: Jo
Re: P
Backgrou
contemp
GLWA Bo
issuance
Purpose o
of the cos
improvem
disposal s
combinat
revenues
freed up
be mitiga
Descriptio
Junior Lie
system. T
State Rev
Analysis:
the comb
interest c
revenue b
Budget Im
and are in
on the Bo
Proposed
approves
revenue b
Meeting
ebruary 5, 2
Great Lake W
on Wheatley
roposed Sew
und: As the l
plates issuing
oard to issue
is related to
of the Bonds
st of the rect
ments (PC‐79
system. The
tion of existin
s. By obtainin
to address o
ated.
on of the Bo
en Revenue b
The Bonds wi
volving Fund
: The curren
bined project
costs, avoide
bond with a
mpact: The
ncluded in th
onds is appro
d Action: Au
s the resolut
bonds in a pr
on February
016
Water Author
y, Public Fina
wer Bond Not
long‐term fi
g bonds to fu
e a notice of
o the followi
s: The procee
tangular prim
96) and the R
expenditure
ng funds, pro
ng this low co
ther capital p
nds: The Bon
bonds and ar
ill be sold to
(“SRF”) prog
t program in
t amounts of
d issuance co
30 year term
first anticipa
he FY 2017 Bu
oximately $7.
udit Committ
tion authoriz
rincipal amou
10, 2016.
rity Audit Co
ance Manag
tice of Intent
nancial plan
und the cost
intent to iss
ng.
eds of the Bo
mary clarifier
Rouge River O
es related to
oceeds from
ost financing
project need
nds will be iss
re payable so
the Michigan
gram for the
nterest rate is
$125 million
osts and proj
m and 5.00% i
ated debt ser
udget and th
.0 million
tee recomm
zing publicati
unt not to ex
Aud
ommittee
er
t Resolution
for the Gre
t of system i
sues bonds.
nds will be u
rehabilitatio
Outflow disin
these projec
new “regula
g for these pr
ds, and the iss
sued under P
olely from the
n Finance Au
State’s 2015
s 2.50% and
n, GLWA cou
ject costs sav
interest rate
rvice paymen
hereafter. Th
mends that th
on of Notice
xceed $125,0
Great La
Fin
dit Comm
at Lakes Wa
mprovemen
The purpos
used for the p
on project (PC
nfection (PC‐7
cts were plan
r” revenue b
rojects, the o
suance of ad
Public Act 94
e specific rev
uthority in mu
‐16 fiscal yea
is payable ov
ld save an es
vings based o
, over the life
nts on the Bo
he combined
he Great Lak
e of Intent to
000,000 as pr
akes Wat
nancial Se
mittee Com
ater Authorit
nts, an initial
se of the pro
purpose of p
C‐757), aerat
797) to the G
nned to be fin
bonds, and/o
other capital
dditional “reg
4 of 1933, as a
venues of the
ultiple series
ar funding cy
ver a 20 year
stimated $40
on a similar o
e of the bond
onds will be O
average ann
kes Water Au
issue sewag
resented at i
ter Autho
ervices Gr
mmunica
ty (GLWA)
l step is for t
oposed bond
aying all or a
tion system
GLWA’s sewa
nanced by a
or transfers o
funds can be
gular” debt c
amended, as
e sewage dis
s as part of th
ycle.
r term. Base
0 million in
open market
d issues.
October 1, 20
nual debt ser
uthority Boa
ge disposal sy
ts Regular
ority
roup
tion
the
d
a part
age
of
e
an
s
posal
he
d on
t
016
rvice
ard
ystem
Page 26
AGENDA ITEM #7B
Great Lakes Water Authority Resolution 2016-02-__
RE: Authorizing Publication of Notice of Intent to Issue Sewage Disposal System Revenue Bonds
By Board Member: _____________________________________________________________
Whereas The Great Lakes Water Authority (the “Authority”) is authorized to issue revenue bonds pursuant to the provisions of Act 94, Public Acts of Michigan, 1933, as amended (“Act 94”) for the purpose of paying all or part of the costs of purchasing, acquiring, constructing, improving, enlarging, extending and repairing the Sewer System as defined in the Regional Sewage Disposal System Lease, dated June 12, 2015, between the City of Detroit and the Authority; and
Whereas The Authority intends to issue one or more series of revenue bonds for the purposes hereinafter set forth; and
Whereas Section 33 of Act 94 requires the publication of a notice of intent to issue bonds at least 45 days prior to the issuance of such bonds.
Now, Therefore Be It:
Resolved That the Chief Financial Officer/Treasurer is hereby instructed to cause the publication of a notice of intent to issue bonds with respect to the hereinafter-described bonds once in the Detroit Legal News, so as to be prominently displayed therein, and it is hereby found that such newspaper has general circulation in the territory of the Authority; And Be it Further
Resolved That the notice of intent to issue bonds shall be in substantially the following form with such necessary or desirable changes as may be approved by the Chief Financial Officer/Treasurer, her approval to be conclusively evidenced by the publication of the notice of intent to issue bonds:
Page 27
2
NOTICE OF INTENT TO ISSUE SEWAGE DISPOSAL SYSTEM REVENUE BONDS BY THE GREAT LAKES WATER AUTHORITY
TO THE ELECTORS OF THE CHARTER COUNTY OF MACOMB, THE COUNTY OF OAKLAND AND THE CHARTER COUNTY OF WAYNE:
NOTICE IS HEREBY GIVEN, that the Great Lakes Water Authority (the “Authority”), a municipal authority organized and existing under the provisions of Act No. 233, Public Acts of Michigan, 1955, as amended, intends to issue its sewage disposal system revenue bonds in one or more series in the aggregate principal amount of not to exceed $125,000,000 for the purpose of paying all or part of the cost of acquiring and constructing facilities, replacements, extensions, improvements and repairs to the City’s sewage disposal system (the “Sewer System”), which Sewer System is described and defined in the Regional Sewage Disposal System Lease dated June 12, 2015, between the City of Detroit (the “City”) and the Authority (the "Lease"). As set forth in the Lease, the Sewer System consists of (i) the Regional Sewer System, which is that portion of the Sewer System that provides sewer service to wholesale customers thereof and to individual customers within and outside the City (“Retail Sewer Customers”) that receive sewer service directly from the hereinafter described Local Sewer System up to the point of connection to the Local Sewer System and (ii) the Local Sewer System, which is that portion of the Sewer System that provides service directly to Retail Sewer Customers. Pursuant to the Lease, the City has leased the Regional Sewer System to the Authority for a period of forty (40) years and the Authority is authorized to issue revenue bonds under Act No. 94, Public Acts of Michigan, 1933, as amended (“Act 94”) for the foregoing purposes.
The bonds of each series will mature in not to exceed forty (40) years after the original issuance date of the respective series of bonds, and will bear interest at rates to be determined upon the sale thereof but in no event to exceed such rates as may be permitted by law.
SOURCE OF PAYMENT OF REVENUE BONDS
The bonds will be issued under and pursuant to the provisions of Act 94 and a resolution or ordinance of the Board of Directors of the Authority and will be payable from the net revenues of the Sewer System and any improvements, enlargements and extensions thereto, and a statutory lien on said revenues will be established by said resolution or ordinance. The Authority will covenant and agree to fix and maintain, or cause to be fixed and maintained, at all times while any of the bonds shall be outstanding such rates and charges for service furnished by the Sewer System as shall be sufficient to provide for payment of the necessary expenses of operation, maintenance and administration of the Sewer System and of the principal of and interest on the bonds when due, and to provide for such other expenditures, accounts and funds for the Sewer System as are required by the resolution or ordinance authorizing the issuance of bonds.
Page 28
3
RIGHT TO PETITION FOR REFERENDUM
This notice is given, by order of the Board of Directors of the Authority, to and for the benefit of the electors of the Charter County of Macomb, the County of Oakland and the Charter County of Wayne (collectively, the “Authority District”) in order to inform them of their right to petition for a referendum upon the question of the issuance of the aforesaid bonds. The bonds will be issued, without submitting such a question to a vote of the electors, unless within 45 days after the date of publication of this notice, a petition requesting a referendum upon such question, signed by not less than 15,000 of the registered electors residing in the Authority District shall have been filed with the Secretary of the Authority. The address of the Secretary of the Authority is 735 Randolph, Detroit, Michigan 48226. In the event that such a petition is filed, the bonds will not be issued unless and until the issuance thereof shall have been approved by the vote of a majority of the electors of the Authority District qualified to vote and voting thereon at a general or special election.
FURTHER INFORMATION
Further information relative to the issuance of said bonds, the Lease and the subject matter of this notice may be secured at the office of the Chief Financial Officer/Treasurer of the Great Lakes Water Authority, 735 Randolph, Room 1608, Detroit, Michigan 48226.
This notice is given pursuant to the provisions of Section 33 of Act 94.
Nicolette N. Bateson Chief Financial Officer/Treasurer Great Lakes Water Authority
And Be it Further
Resolved That it is hereby determined that the foregoing form of notice of intent to issue bonds and the manner of publication so directed are adequate notice to the electors of the constituent public corporations of the Authority and are well calculated to inform them of the intention of the Authority to issue the revenue bonds, the source of payment therefor, and the right of referendum on the revenue bonds; And Be it Further
Resolved That all resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded.
Adopted by the Great Lakes Water Authority Board on: ________________________________ BLOOMFIELD 63818-6 1585569v1
Page 29
Date: Fe
To: G
From: Jo
Re: W
Backgrou
the Who
were not
Bonds. P
It should
and not t
As can be
revenues
and billed
Although
Novembe
During th
indicate a
We will c
basis.
Proposed
ebruary 5, 2
Great Lake W
on Wheatley
Wholesale W
und: The att
lesale Custo
t included in
Please note t
be noted th
the following
e seen from
s are relative
d revenue at
h the actual
er and Dece
hese two mo
a lower “bas
continue to u
d Action: Re
016
Water Author
y, Public Fina
Water Revenu
ached table
omer Class. T
the original
these are bil
hat the reven
g month wh
the attache
ely close to t
t 100.6% of
numbers are
mber are no
onths billed
se” usage tre
update the r
eceive and fi
rity Audit Co
ance Manag
ue Report‐ V
s summarize
The reporte
l FY 2016 Bu
lled revenue
nues are sho
en the bills a
d tables, for
the budgete
budget.
e currently a
on‐peak mon
revenue and
end over the
reports and
le.
Aud
ommittee
er
Variance Ana
e the FY 201
d numbers d
udget or the
es and do no
own in the m
are usually s
r the first six
d amounts,
at or above b
nths and do
d volumes ar
e coming mo
present this
Great La
Fin
dit Comm
alysis
16 billed volu
do not includ
projections
ot reflect col
month that t
sent out.
x months of
with billed v
budget, it sh
not include
re well below
onths.
s to the Audi
akes Wat
nancial Se
mittee Com
umes and bil
de the City o
for the 2015
lections of t
he billed flow
FY 2016, bill
volume at 10
hould be not
weather dri
w budget. T
t Committee
ter Autho
ervices Gr
mmunica
lled revenue
of Flint as th
5 Refunding
hose revenu
w was recor
ed volume a
01.4% of bud
ed that
iven usage.
This variance
e on a mont
ority
roup
tion
e to
ey
ues.
rded
and
dget
e may
thly
Page 30
AGENDA ITEM #8B
Unit Unit UnitVolume Revenue Revenue Volume Revenue Revenue Volume Revenue Revenue
Mcf $ $/Mcf Mcf $ $/Mcf Mcf $ $/Mcf
July 1,484,430 28,447,300 19.16 1,484,928 27,991,867 18.85 498 (455,433) (0.31)August 1,445,640 28,221,400 19.52 1,525,278 29,144,269 19.11 79,638 922,869 (0.41)September 1,289,830 26,408,100 20.47 1,406,260 27,637,332 19.65 116,430 1,229,232 (0.82)October 1,130,720 24,931,200 22.05 1,135,048 25,028,541 22.05 4,328 97,341 0.00November 967,010 23,567,400 24.37 935,394 23,304,814 24.91 (31,616) (262,586) 0.54December 1,056,610 24,218,700 22.92 989,529 23,615,719 23.87 (67,081) (602,981) 0.94January 1,088,010 24,533,300 22.55 0 0February 987,500 23,671,400 23.97 0 0March 1,078,400 24,466,400 22.69 0 0April 1,003,740 23,813,600 23.72 0 0May 1,181,850 25,608,700 21.67 0 0June 1,407,110 27,612,400 19.62 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------Total 14,120,850 305,499,900 $21.63 7,476,437 156,722,542 $20.96 102,197 928,442 (0.67)
Achievement of Budget 7,374,240 155,794,100 $21.13 101.4% 100.6% 99.2%
FY 2014 FY 2015 FY 2016
July 1,521,519 1,518,244 1,484,928August 1,585,885 1,370,517 1,525,278September 1,428,680 1,210,838 1,406,260October 1,176,170 1,055,364 1,135,048November 1,004,254 948,206 935,394December 1,112,028 1,015,487 989,529January 1,177,601 1,049,951 0February 1,055,345 967,612 0March 1,177,133 1,094,692 0April 1,052,739 997,679 0May 1,104,194 1,126,972 0June 1,382,929 1,223,704 0
------------ ------------ ------------Total 14,778,477 13,579,265 7,476,437
YTD Subtotal 7,828,536 7,118,656FY 16 Variance from -4.50% 5.03%
GLWA Suburban Wholesale Billing SummaryWater Supply System - Revenue Analysis
FY 2016 Budget vs. Actual - by Month
Variance
Total Wholesale Customers
Budget Actual
Water Supply System Sales AnalysisHistorical
Water Sales
Page 31
Water Supply System - Volume and RevenueFY 2014 Budget vs. Actual - by Month
GLWA Suburban Wholesale Billing Summary
0
1,500,000
3,000,000
4,500,000
6,000,000
7,500,000
9,000,000
10,500,000
12,000,000
13,500,000
15,000,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Cum
ula
tive
Sal
es (
Mcf
)
Mon
thly
Sal
es (
Mcf
)
Total Wholesale- Volume Mcf
Budget Mcf Actual Mcf Cumulative Actual Mcf Cumulative Budget
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Cum
ula
tive
Rev
enu
e ($
th
ousa
nd
s)
Mon
thly
Rev
enu
e ($
th
ousa
nd
s)
Total Wholesale- Revenue $
Budget $ Actual $ Cumulative Budget $ Cumulative Actual $
Page 32
Date: Fe
To: G
From: Jo
Re: In
On Octobthe City’sbalance r
I
M
Nov
Dec
Jan
Tot
* P
ebruary 5, 2
Great Lake W
on Wheatley
nformationa
ber 16, 2015s account waremaining as
nvoice
Month
vember
cember
nuary
tal
rorated amo
016
Water Author
y, Public Fina
l Update – C
5, the City ofas establishes of the mos
Usage
C
26,875.0 *
47,576.9
48,067.4
unt. Reading
PR
rity Audit Co
ance Manag
City of Flint B
f Flint (“City”ed with a dest recent bill
Commodity
Charge
$8.93
$8.93
$8.93
g from Octob
CIT
REPAYMENT F
Aud
ommittee
er
Billings
”) re‐joined tposit of $10ing date of J
Fixed Charg
$341,729
$662,100
$662,100
er 16 to Octo
TY OF FLINT
FUND RECON
Great La
Fin
dit Comm
the regional0 million. ThJanuary 27, 2
ge Total In
9.00 $581,
0.00 $1,086,
0.00 $1,091,
$2,760,
ober 31
NCILIATION
akes Wat
nancial Se
mittee Com
l water systehe table belo2016.
nvoice
Pr
Fu
$10
,722.75 $9
,961.72 $8
,341.88 $7
,026.35
ter Autho
ervices Gr
mmunica
em. At that ow identifies
repayment
nd Balance
0,000,000.00
9,418,277.25
8,331,315.53
7,239,973.65
ority
roup
tion
time, s the
Page 33
AGENDA ITEM #9A
Date: Fe
To: G
From: Jo
Re: In
Backgrou
& Sewera
forward t
Environm
term bas
wastewa
intermitt
balance o
approxim
supply se
June 30,
Jun
F
F
Jun
F
F
Jun
F
F
Jun
F
F
Dce
Not
ebruary 5, 2
Great Lake W
on Wheatley
nformationa
und: Highlan
age Departm
to the Great
mental Quali
sis, at which
ater services
tent, partial
of over $28.
mately $1.4 m
ervices. Belo
2012 to Dec
ne 30, 2012
FY 2013 Bill i
FY 2013 Paym
ne 30, 2013
FY 2014 Bill i
FY 2014 Paym
ne 30, 2014
FY 2015 Bill i
FY 2015 Paym
ne 30, 2015
FY 2016 Bill i
FY 2016 Paym
ember 31, 20
te: Water bi
016
Water Author
y, Public Fina
l Update – C
nd Park has b
ment (DWSD
t Lakes Wate
ty (MDEQ) r
time Highla
. Beginning i
payments b
5 million, inc
million for in
ow is a summ
cember 31, 2
Balance
ings
ments
Balance
ings
ments
Balance
ings
ments
Balance
ings (6 mont
ments (6 mo
015 Balance
il l ing began
rity Audit Co
ance Manag
City of Highla
been unable
D). As of Janu
er Authority
requested th
nd Park owe
in 2013, Hig
egan. As of
cluding over
ndustrial was
mary of the b
2015.
$
$
ths)
onths)
e $
in January
Aud
ommittee
er
and Park Bill
e to satisfy a
uary 1, 2016
. In 2012, th
hat DWSD su
ed the Depar
hland Park c
December 3
r $24.0 millio
ste control s
billing and c
Water
‐
485,887
(65,652)
420,235
1,004,357
‐
1,424,592
1,008,032
‐
2,432,625
598,053
‐
3,030,678
2013.
Great La
Fin
dit Comm
lings and Co
mounts due
6, the outsta
he Michigan
upply water
rtment appr
ceased maki
31, 2015, Hig
on for waste
services, and
ollection his
Sewer
10,207$
4,987
(2,206
12,989$
6,980
(1,612
18,357
5,553
(1,444
22,465
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Page 34
AGENDA ITEM #9B
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AGENDA ITEM #9C
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Great Lakes Water Authority Audit Committee Report
February 10, 2016
On Friday, February 5, 2016, the Great Lakes Water Authority Audit Committee held its regularly scheduled monthly meeting. Highlights of that meeting include the following:
A proposed timeline was reviewed for a potential refunding for savings and new money financing. The schedule balances completion of FY 2015 and transitional financial reports and selection of an underwriter to achieve a closing in August 2016.
An update for the FY 2017 and 2018 biennial budget was presented. A special Audit Committee meeting has been scheduled for Friday, February 19, 2016 in advance of presentation of the budget to the GLWA Board on Wednesday, February 24, 2016. Given the recent operational effectiveness date of January 1, 2016 and final approval of key lease documents in December 2015, staff is working through a number of new budget considerations, including shared services, organizational restructuring, and staffing changes that add complexities to preparing the initial GLWA budget. That being said, the management team’s presentations have demonstrated a commitment to the 4% revenue requirement cap and optimized staffing.
Proposed FY 2017 Service Charge recommendations were presented. The information presented was consistent with the materials presented to customers at the service charges rollout meetings on January 28, 2016. The service charges are based upon application of the 4% revenue requirement cap noted above. Individual water customer charge adjustments will vary based upon volume adjustments within the overall cost sharing pool, and on changes to certain customer peak demands via the structured contract renegotiation process. A few large customers made changes in their individual systems that resulted in lower demands, and a lower allocation of costs. As a result, other customers were allocated a larger share. The impact of the reallocation on most customers is approximately 2.5%. On January 29, 2016, individual worksheets were mailed to each customer explaining their proposed service charge for FY 2017. Sewer customers also received individual worksheets. The unique element for FY 2017 wholesale sewer charges includes a look-back adjustment for Highland Park bad debt expense phased in over a four year time period. A preliminary revenue requirement for Detroit has been developed. The final proposal is dependent upon development of the Detroit Water & Sewerage Department budget which is currently in process. The GLWA will receive a full report in conjunction with the budget presentation on February 24, 2016.
Presented in the GLWA Board’s action items for February 10, 2016 are two resolutions to publish a Notice of Intent to issue bonds for the water and sewer systems. These resolutions provide for sufficient notice and statutorily required timeline for a right of referendum and do not commit the Board to issue bonds up to a specified dollar amount.
The resolutions are consistent with the five year financial plan and are recommended for approval by the GLWA Board at its meeting on February 10, 2016.
Staff presented a verbal update on the BS&A Phase I financial system implementation. The project continues to be on-time with a launch in March 2016. The team is pleased with the user-friendly interface and new opportunities to streamline operations.
The Audit Committee binder included a number of other informational items and is posted online at: http://www.glwater.org/finances/audit-committee-documents/
A special meeting for the purpose of reviewing the budget development is scheduled for Friday, February 19, 2016 at 8 a.m.
The next regularly scheduled meeting is Friday, March 4, 2016 at 8 a.m.