bgjwsc_finance_committee_minutes_october_20_2016<\/a><\/p>\nTo read the minutes, please open or download the pdf from the link above or you may see more below:<\/p>\n
PRESENT: \u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong><\/p>\nDonald M. Elliott, Chairman<\/strong><\/p>\nRonald Perry, Commissioner<\/strong><\/p>\nJohn A. Cason, III, City Commissioner <\/strong><\/p>\nJimmy Junkin, Executive Director<\/strong><\/p>\nJohn Donaghy, Chief Financial Officer\u00a0<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong><\/p>\nALSO PRESENT:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong><\/p>\nFrances Wilson, Senior Accountant<\/strong><\/p>\nTodd Kline, Senior Engineer<\/strong><\/p>\nChairman Elliott called the meeting to order at 10:00 AM.<\/p>\n
PUBLIC COMMENT PERIOD<\/strong><\/p>\nThere being no citizens that wished to address the Committee, Chairman Elliott closed the Public Comment Period.<\/p>\n
ADOPT:<\/strong><\/p>\nMinutes from September 20, 2016 Finance Committee Meeting<\/strong><\/p>\nCommissioner Cason made a motion seconded by Commissioner Perry to adopt the minutes of the September 20, 2016 Finance Committee Meeting. Motion approved 3-0-0.<\/u><\/p>\n
DISCUSSION:<\/strong><\/p>\n\u00a0<\/strong>September End of Month Financial Comparative<\/strong> \u2013 J. Donaghy<\/p>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>Balance Sheet<\/p>\nIncome Statement<\/p>\n
Project Funding Report<\/p>\n
John Donaghy discussed the Balance Sheet. The Committee reviewed the Current Assets and Current Liabilities.\u00a0 The Schedule of Cash Balances as of 9\/30\/16 were reviewed. A detail of operating cash Bond Funds, Reserves, and Capital Improvement fees was provided.\u00a0 The current checking accounts and cash accounts are about 1.4M in total.\u00a0 The Accounts Payable show a total of 383k and it was noted that outstanding purchase orders will be coming in over the next month or so at 1.3M making it approx. 1.7M of pending expenditures.\u00a0 At the bottom of this report it lists Repair and Replacement Reserve, Expansion Reserve, Capital Improvement Reserve, and Bond Fund showing approx. 9.6M available for projects. The Unencumbered Funds are approx. 4.7M which includes contracts on construction projects.\u00a0 The estimated amount to complete projects still pending is 4.8M.\u00a0 It was stated that there are funds to go into contract for 2032 leaving about 36K available for other projects.\u00a0 The Commission Report was discussed.\u00a0 The YTD actual revenues over expenditures were stated to be 2.12M\u00a0 less the outstanding encumbrances\u2019 which leaves 786K.\u00a0\u00a0 So far this year JWSC is running ahead of revenues over expenditures.\u00a0 October will take a large chunk due to Hurricane Matthew and we anticipate Insurance and FEMA reimbursement.\u00a0 Commissioner Elliott requested the costs directly related to hurricane be segregate out and available for the next Finance meeting.\u00a0 JWSC has monies in the operating reserve for this type of incident.\u00a0 The debris removal and pick up with the county was discussed.\u00a0 Various damages occurred at our facilities during the storm and are being calculated.\u00a0 It was noted that there are a number of customers who reported broken lines.\u00a0 There was additional discussion on the last 5 years and reviewing the large customers and review JWSC revenues.\u00a0 Conservation has increased with water restricted flow and people are conscious of water usage.\u00a0 Commissioner Elliott discussed the business model. On the front end JWSC collects expansion money in tap fees for a one-time fee and how it is used is very important.\u00a0 The other revenue is the rate payers to keep the system operating and current.\u00a0 There is very little flexibility.\u00a0 Additional projects discussed were Rose Drive and Epworth.\u00a0 The Project Cost Report was discussed and listed all of the projects listed on the books.\u00a0 It was noted that 2030 is still on due to final payment is still pending.\u00a0 Some of the other projects are still pending and on hold.\u00a0 The budget for these projects are 20.8M.\u00a0 Total to date completed are 16M and will require 4.8M is what will be required out of JWSC reserve to complete the work in the report.<\/p>\n
\u00a0<\/strong>Innoprise Capital Project Planning & Contract Management <\/strong>\u2013 J. Donaghy<\/p>\nJohn Donaghy discussed the proposal from Harris Computer regarding software modules. The two additional modules will enhance the capital reporting, tracking and budgeting for construction projects.\u00a0\u00a0 This is phase one and to be completed in March 2017.\u00a0 This proposal is for JWSC to become a development partner in these modules.\u00a0 We would utilize the program, suggest changes and how they should be built.\u00a0 There is no cost until the program goes live next spring.\u00a0 The advantage is that JWSC could have these modules designed to meet our needs.\u00a0 If the modules are not utilized there will be no cost to them.\u00a0 Frances and Shanesha will be going to a GEMS conference in November. There have been a number of enhancements and will be learning how to use them. JWSC is working in the test phase and projects can be used as a test and see how the program will work.\u00a0 This phase provides various pieces like start dates, purchase orders, and mirror contracts and payments.\u00a0 The licensing fee is a yearly price. All Committee members agreed to forward to the full Commission for approval. Motion approved 3-0-0.<\/u><\/p>\n
Line of Credit AND <\/strong>Van-Con Financing \u2013 J. Donaghy<\/strong><\/p>\nJohn Donaghy presented the Debt Acquisition Compliance with Policy Line of Credit with BB&T. He stated items #3 and #4 are together in one memorandum.\u00a0 JWSC has 2 proposal for the incurring debt.\u00a0 The first proposal is for Capital Lease for the 4 Vac-Con purchase.\u00a0 The Vac-Con Lease Previously approved by the Commission that authorized the Exec. Director to get quotes on the Capital Lease agreements.\u00a0\u00a0 BB&T proposed a four year Capital Lease term at 1.49% interest. The BB&T Capital Lease is in conjunction with GMA and they partner together for leases. The second proposal is for the line-of credit with BB&T for 1.5M.\u00a0 The interest rate would be the one month LIBER plus 1.95% with repayment terms of 24 months.\u00a0 This would allow access funds to pay for construction projects.\u00a0 The JWSC Financial Policy does have provisions where the Commission determines that the incurrence of debt is in the best interest of the JWSC and that it is reasonable and prudent and will not have unreasonable burden to the rate payers.\u00a0 The staff is requesting the commission affirmatively determine that these two borrowings would meet the criteria for incurring debt and that the Exec. Director and the Chairman be authorized to sign the documents necessary after review by legal counsel.\u00a0 All Committee members agreed to forward to the full Commission for approval. Motion approved 3-0-0.<\/u><\/p>\n
John also stated that the Commission requested staff put together conditions for determining when Capital Leasing would be a preferable option to purchasing equipment and staff is in the midst of completing it.<\/p>\n
DIRECTOR\u2019S UPDATE<\/strong><\/p>\nJohn discussed the Draft of the Audit Report for 6\/30\/2016. Currently the Management\u2019s Discussion and Analysis is being worked on.\u00a0 John stated that this is the opportunity to explain why there are variances in numbers.\u00a0 The discussion on what amount of information should be placed in the audit report concerning the Master Plan and Capacity.\u00a0 Commissioner Elliott suggested being fully transparent and others agreed.\u00a0 There was further discussion of the loss for the year and debt coverage ratio.<\/p>\n
Additional discussion was surplus properties.<\/p>\n
Meeting was adjourned at 11:12 a.m.<\/p>\n
<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
For your consideration, please review the minutes for the Finance Committee Meeting from October 20, 2016: bgjwsc_finance_committee_minutes_october_20_2016 To read the minutes, please open or download the pdf from the link above or you may see more below:<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[18],"tags":[],"class_list":["post-5435","post","type-post","status-publish","format-standard","hentry","category-finance-committee-minutes"],"_links":{"self":[{"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=\/wp\/v2\/posts\/5435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5435"}],"version-history":[{"count":0,"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=\/wp\/v2\/posts\/5435\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}