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From YouTube: 23 August 2022 Special Town Council Work Session
Description
Associated documents: https://cavecreek.civicweb.net/filepro/documents/52078/
A
E
A
Here
all
right-
let's
see
here
so
let's
go
with
general
agenda
item
number
one
which
is
presentation
by
will
dan
financial
services
and
walker
consulting
llc
and
discussion
on
the
draft
water
and
wastewater
rate
and
capacity
fee
study
for
the
cave,
creek,
water,
desert,
hills,
water
and
cave
creek.
Wastewater
systems
placed
on.
F
But
first
I'd
like
to
introduce
a
few
people
who
we
specifically
invited
to
this
meeting
from
the
water
advisory
committee.
We
have
jeff
burkett,
who
represents
desert
hills
is
in
the
audience
we
invited
alex
madison
he's
not
online
yet,
but
he
intends
to
attend
remotely.
So
we
want
to
make
sure
we
take
input
from
the
committee
members.
We
also
invited
richard
johnson,
who
recently
resigned,
who
cannot
attend
in
person
or
online,
but
will
review
the
information
and
will
get
back
to
us
with
his
comments.
F
We
also
invited
the
three
council
members
elect
paul.
Elkema
is
here
in
the
council
chambers,
but
we
did
invite
dusty
rhodes
or
tom
ogerton,
I'm
not
sure,
if
they're
attending
or
if
they're
they're
online
remotely,
we
also
been
working
with
our
financial
advisor
jim
strickland
and
our
bond
council
tim
stratton,
jim
strickland,
is
out
of
state
and
so
he's
unable
to
come.
F
Shirley
fox
is
our
finance
director
and
she's
sitting
back
here.
So
if
you
have
questions
about
finances
and,
of
course,
cruz
weissner
is
our
utility
director
we'll
be
begin
with
an
overview
and
a
background
information
on
this,
and
then
we
will
lead
into
kevin's
presentation
on
the
results
of
the
study.
F
The
process
today
is
informal,
but
we
will
allow
the
council
to
ask
questions
of
staff
and
the
consultant
there's
an
opportunity
for
the
water
advisory
committee
members
to
participate
and
everyone
who's
in
the
audience
today,
both
online
and
in
person.
So
everyone
will
be
given
an
opportunity
to
comment
or
ask
questions,
and
so
with
that
I'll
introduce
sean
cruz.
H
G
G
So
it's
been
a
few
months
since
we
last
talked
to
council
about
this.
We
came
with
the
presentation
beginning
in
the
calendar
year.
Talk
about
draft
assumptions,
it's
taking
staff,
this
time
to
work
with
our
consultants
and
come
to
where
we're
at
right
now,
which
is
a
recommendation
of
both
utility
rates
and
capacity
fees
and
by
utility
rates.
That
means
both
the
water
and
wastewater
weights
in
in
cape
creek,
and
also
the
water
rates
in
desert
hills.
G
At
that
time
there
was
a
recommendation
for
doing
some
stepped
increases
the
council
elected
just
to
do
the
single
year
increase
that
has
given
us
some
revenue,
but
also
allowed
us
or
made
us
look
at
the
revenue
streams
again
to
make
sure
that
we're
we
have
the
funds
necessary
to
make
sure
that
we
can
run
our
enterprise
funds
before
2020.
It
was
actually
march
of
20.
G
The
study
also
looked
at
capacity
fees,
that's
the
fees
that
are
charged
to
new
customers
connecting
the
systems.
Those
fees
had
not
been
updated
since
2014,
so
they're,
they're
overdue,
for
us
to
look
at
those
costs
next,
slides,
prime,
so
I'll
just
start
just
this
more
edification
for
many
people
online
about
what
the
systems
actually
look
like.
This
is
the
cave,
creek
water
system,
the
light
green
is
the
cave,
creek
municipal
boundary
and
you
can
see
our
our
service
area
extends
over
to
the
carefree
area.
G
That's
the
area
currently
being
converted
to
care
for
water,
and
we
actually
do
have
a
little
bit
of
an
extension
that
goes
into
the
unincorporated
maricopa
county
area
that
was
part
of
the
old
cave,
creek
water
system.
I've
highlighted
the
interconnect
between
the
desert,
hills,
water
system
and
the
cave
creek
system
here
next
fly
brian.
G
This
is
the
desert
hills.
So
again,
water
delivery
occurs
at
24th
street
cloud
road,
and
this
is
the
extents
of
the
desert
fuel
system.
Cave
creek
currently
has
about
20
just
under
2
900
customers.
Desert
hills
is
about
1900.,
we're
again
we're
losing
about
550
with
the
transition
to
care
free
water
company
next
fly
brian,
and
this
just
for
again
education
is
the
wastewater
system.
We're
talking
about
the
wastewater
system
has
a
much
smaller
client
base,
it's
just
over
or
just
under
900
customers.
G
Right
now,
it's
largely
through
the
town
core.
You
can
see
extending
about
a
mile
south
of
the
town
core
along
carefree,
cave,
creek
road
and
then
the
commercial
corridor
along
carefree
highway
is
really
the
extent
of
it.
I
highlighted
a
couple
of
dry
sewer
areas.
You
hear
more
about
that
when
we
start
doing
our
master
planning
efforts
about
those
were
subdivisions
that
actually
had
sewers
constructed
in
anticipation
of
the
town
moving
the
water
reclamation
facility
back
in
2010,
but
they're,
not
currently
customers.
G
So
in
this
projection
we
did
not
account
for
them,
but
I
just
want
to
draw
your
attention
to
that
next
slide,
brian.
So
I
listed
four
of
the
main
study
goals.
Kevin
will
go
through
a
little
bit
more
detail,
but
the
four
that
really
jumped
out
at
me
are:
you
know
we
looked
at
a
10-year
forecast
period.
So,
while
when
we
talk
about
budgeting
with
council,
we
look
at
an
annual
budget.
We
actually
looked
out
at
10
years.
G
What
we
expected
cost
may
increase
the
system
growth
we
looked
at
council
also
looks
at
a
a
five-year
capital
improvement
program.
We
actually
looked
at
a
little
further
and
looked
at
a
10-year
list
of
projects.
We
might
need
to
try
and
evaluate
the
cost
of
what
it
might
take
to
run
the
enterprise
systems.
G
G
That's
the
cost
for
you
to
have
that
meter
tied
to
our
system,
it's
regardless
of
the
volume
of
water
that
flows
through
the
system,
and
it
allows
us
to
pay
for
the
maintenance
of
the
system
to
ensure
that
when
you
want
to
turn
on
your
faucet
and
get
water
out
of
the
system
that
we
can
provide
that
water.
So
the
goal
is
regardless
in
the
town
code
says,
regardless
of
volumetric
use
to
have
an
active
account,
you
actually
play
pay.
The
base
fee
on
the
system,
and
the
volume
is
is:
is
that
just
that?
G
E
G
This
actually
looks
in
the
last
study.
I
just
want
to
highlight
it's
not
too
hard,
because
we
can
look
at
the
cost
of
just
what
it
takes
to
run
the
system,
what
it
takes
to
run
our
distribution
system,
the
the
to
keep
the
the
treatment
plant
ready
to
run
the
booster
stations
ready
to
function
is
really
that's
the
baseline
rate
pace.
For
that,
then,
the
cost
of
actually
delivering
and
treating
that
water
moving
around
the
system.
G
Yes,
I
believe
cip
was
in
that
some
of
the
chemical
costs
are
into
that
that
they're
used
in
treatment,
but
the
treatment
processes
are
actually
in
the
base
rate
because
we
have
to
have
the
equipment
ready
to
do
that.
So
we
went
through
with
kevin
and
we
broke
down
our
base
budget
and
not
the
base
budget.
The
the
annual
budget
and
broke
it
down
between
volumetric
and
sort
of
the
base.
G
G
It
provides
us
the
one
goal
of
that
is
by
not
putting
it
all
into
the
volumetric.
We
have
to
have
a
base
fee
to
keep
the
system
ready
to
operate.
So
without
the
even
if
the
users
don't
ask
for
the
water
say,
someone
wants
a
two
inch
or
one
inch
water
meter.
That's
a
lot
of
volume.
We
have
to
move
to
them,
so
we
have
to
make
sure
the
system
is
ready
to
move
that
water
to
them.
So
another
goal
was
provide
revenue
sufficient
to
pay
for
ongoing
operating
and
capital
costs.
G
These
are
we
consider
them
to
be
enterprise
funds.
For
a
number
of
years
the
town
has
supplemented,
especially
on
the
wastewater
side,
but
one
of
the
the
goals,
one
of
the
things
that
we
found
out
when
we
looked
at
the
projections,
if
we
don't
do
a
rate
increase
on
the
water
and
wastewater
systems,
the
operating
repair,
maintenance
and
capital
costs
will
continue
to
increase
more
readily
than
the
the
expenses
and
the
revenues
that
we
take
in,
so
we're
going
backwards.
G
So
they're
not
an
enterprise
fund
moving
forward.
We
also
want
to
look
at
meeting
the
financial
goals,
and
those
are
three
that
we've
listed
here.
Revenue
is
equal
to
three
months
of
operating
expenses-
that's
sort
of
a
longer
term
goal.
I
think,
if
you
look
in
the
the
binder
presented,
it's
a
five
plus
year
goal
to
get
there-
we're
not
quite
there
yet,
but
this
is
the
stepping
stone
to
get
us
to
that.
G
So
that
means,
if
we
do
have
something,
comes
up
that
we're
not
sort
of
scrambling
that
we
do
have
a
revenue
reserve
that
we
currently
don't
have
to
fall
back
on
to.
We
have
to
be
cautious
of
the
debt
service
coverage.
It
shows
up
as
dsc
on
some
slides
later
1.2
times,
revenue
that
without
that
debt
service
coverage
goal,
then
that
means
that
limits
our
ability
to
get
future
things
like
wiffle
loans
for
funding,
larger
projects
and
the
last
one
is
that
revenues
are
equal
to
operation
and
maintenance
expenses.
G
One
thing
that's
come
up
in
discussions
is
when
the
town
undertook
relocating
the
wastewater
treatment
plant
down
to
carefree
highway.
There
was
an
exercise
because
of
the
debt
involved
in
that
project.
It
was
about
26
million
of
a
project.
The
revenues
would
not
support
that.
So
there
was
a
half
cent
sales
tax
that
actually
increased
and
actually
helped
pay
for
that.
So
it
was
tax
revenue
to
help
pay
for
that
debt
service.
G
When
we're
talking
about
the
the
revenue
or
the
rate
increases,
especially
on
the
wastewater
fund,
that
half
cents
debt
service
is
not
considered
that
debt
is
retired,
I
think
in
2027,
and
that
means
there's
a
half
cent
of
sales
tax
that
the
the
town
council
can
then
decide
what
else
they
can
do
with.
It
does
not
know
it
no
longer
has
to
be
used
to
cover
the
debt
service,
but
the
rates
that
we're
trying
to
propose
actually
is
independent
of
that
debt
service.
G
Next
library,
some
of
the
issues
that
have
changed
since
the
last
and
kevin
I'll
go
into
a
lot
more
details,
but
these
are
the
ones
that
jumped
out
at
me
when
I
read
the
report.
The
issues
that
changed
since
the
2020
study
is
one
is
the
loss
of
the
carefree
accounts.
When
we
went
into
the
last
study,
we
were
still
working
through
the
negotiations
with
carefree
the
mediation
with
carefree
that
was
not
concluded
by
the
time
the
rates
were
adopted.
G
It
wasn't
adopted
that
wasn't
concluded
till
the
fall
of
2020,
but
we
moved
forward
with
the
with
those
rates
in
the
summer.
That's
losing
550,
550
plus
accounts.
The
number
fluctuates
because
they
are
actually.
There
is
still
some
growth
in
the
service
area.
So
that's
something
we
had
to
account
for
that
loss
in
revenue,
the
desert
hills
and
our
interconnect
with
desert
hills
we
refer
to
as
the
tie-in.
G
We
wanted
to
address
a
couple
of
things
with
the
study.
We
want
to
make
sure
that
desert
hills
is
paying
50
of
the
debt
service
on
the
cave,
creek
water
system.
What
I
mean
by
that
is
when
the
town
bought
the
water
company,
there
was
an
immediate
investment
of
infrastructure
to
both
update
the
water
treatment
plant
and
the
distribution
system.
It's
the
fairness
to
desert
hills
is
because
desert
hills
does
not
have
the
water
resources
with
its
wells
to
meet
its
own
demand.
G
So
over
half
the
water
in
desert
hills
and
that's
since
the
town's
bought
the
system.
It's
been
more
than
half
the
last
couple
of
years
has
been
coming
from
cave
creek.
So
without
the
improvements
that
cave
creek
made
to
our
water
system,
desert
hills
could
not
be
supported.
So
it's
it's
a
fairness
that
they
paid
50
of
that
rate
that
debt
service
and
we
looked
at
the
what
we
refer
to
as
a
wheeling
rate
between
the
two
water
companies.
G
We've
gone
back
and
forth
with
this,
and
there
is
an
interconnect
site
so
24
street
and
cloud
there's,
actually
a
four
inch
and
a
three
inch
parallel
meter
and
a
pressure
reducing
vault
out
out
there.
We
move
quite
a
bit
of
water
between
the
systems,
so
we've
developed
last
year
we
were
able
to
get
a
central
arizona
project.
Non-Indian
agricultural
subcontract.
G
We
we've
said
that
set
aside
to
help
support,
desert
hills
and
it's
not
for
new
growth.
It's
basically
helping
offset
the
municipal
industrial
water,
that
of
cap
water
that
desert
hills
has
been
using
for
us,
but
we
didn't
have
a
good
way
of
paying
for
that
in
the
budget's
moving
forward.
We
said
it
cost
the
ongoing
cost
of
the
both
the
back
capital
costs
and
the
ongoing
capital
and
delivery
costs
of
that
water
to
desert
hills
customers,
but
that
is
only
386
acre
feet.
G
That
is
not
enough
to
account
for
the
water
that
we
transfer
between
the
systems.
It's
been
over
500
acre
feet
for
last
years.
It
peaked
at
over
600
when
we
had
a
well
fail
in
the
summer
time.
So
what
we've
done
is
developed
what
we
refer
to
as
a
wheeling
rate,
it's
similar
to
the
rate
that
we
have
a
wheeling
rate
with
the
water
that
phoenix,
treats
and
delivers
for
us,
which
we
have
to
complete
the
infrastructure.
G
There's
also
a
wheeling
agreement
in
place
with
carefree
water
company
that
we
can
treat
and
deliver
some
of
their
water
resources.
We're
looking
at
something
similar
for
desert
hills,
we're
depending
on
the
type
of
water,
so
we'll
set
two
rates.
One
would
be
if
we're
treating
and
delivering
their
non-indian
agricultural
cap
water
with
the
b1
rate
and
if
they
then
have
to
dip
into
municipal
and
industrial
supplies,
because
that
water
has
been
exhausted.
G
Do
we
have
a
second
rate
within
that
there
will
be
a
administrative
costs
associated
with
that,
and
also
a
treatment
and
transmission
loss.
That's
something
we
haven't
done
from
a
water
accounting
standpoint.
As
a
water
agency.
We
actually
have
to
report
to
our
state
agencies
on
the
overall
efficiency
of
our
system,
and
they
refer
to
as
our
treatment
transmission
losses,
our
treatment
losses
so
far,
all
that
water,
all
that
loss
has
been
attributed
to
cave,
creek
water,
since
we're
saying
so
much
and
carefree
is
our
biggest
water
customer.
G
It
didn't
seem
fair
that
some
of
that
lost
and
contributed
to
desert
hills.
So
what
we're
proposing
is
a
five
percent
loss,
treatment
and
transmission
loss,
so
every
gallon
of
water
that
we
deliver
over
to
desert
hills.
They
would
actually
get
have
to
pay
for
1.05
gallons
of
that
water
that
distributes
the
losses
better
between
the
systems
and
better
associates
factors
that
without
desert
hills
is
using
is
needing
the
cave,
creek
water
and
it's
fair,
it's
actually.
The
five
percent
is
what
we've
got
built
into
our
iga
with
the
city
of
phoenix.
G
I
G
Well,
in
the
phoenix
iga
we
went
through
it,
it
says:
treatment
and
transmission
losses
was
the
five
percent,
so
phoenix
charges
as
five
percent
or
lose.
We
lose
five
percent
of
that
water,
so
we
thought
that
was
fair
to
use
that
same
analogy
with
desert
hills
that
every
gallon
we
sent
to
them.
There's
some
losses
in
our
system
going
over
it.
G
Our
treatment
system
right
now
is
a
little
more
inefficient
because
we're
still
using
the
trident
filters
we
are
trying
to
run
the
poll
filters
as
much
as
we
can
when
we
have
the
city
of
phoenix
interconnect
and
we
can
get
the
water
from
phoenix
and
just
run
the
paul
filters,
our
our
treatment
side
of
our
system
will
get
more
efficient,
so
this
is
sort
of
look
forward.
Looking
with
the
five
percent,
we
thought
it
was
fair
at
that
point,.
I
G
Yeah
yeah,
so
with
our
accounting
with
arizona
apartment
or
water
resources,
we
we
give
them
the
total,
build
metered
versus
the
production,
which
would
be
the
production
from
our
three
wells
and
the
interconnect
site.
And
then
there
is
a
loss
already
built
into
that
system.
It's
running
a
lot
less
than
the
cave,
creek
system,
the
cave
creek.
G
If
you
remember
from
the
quarterly
report
I
gave,
I
think
we
do
it.
They
asked
us
to
do
a
three-year
running
average
and
our
three-year
running
average
is
just
over
11
percent
in
cape
creek
and
desert
hills
is
running
below
five
percent,
so
this
is
sort
of
moving
some
of
that
over
to
desert
hills
because
they're
using
a
large
portion
of
the
water.
So
a
significant
portion
about
a
third
of
the
water
that
we're
treating
and
delivering
in
cave
creek
is
is
for
that
interconnect
site
which.
G
I
G
I
Right,
as
I
understand
right,
we
are
not
capturing
the
distribution
losses
in
our
accounting
system,
so
so
cave
creek
is
still
not
receiving
revenue
from
losses
in
the
desert
hills
distribution
system.
We
just
have
this
five
percent
number
that
came
from
the
phoenix
and
it's
kind
of
a
standard
thing
for
winnie
and
grace.
G
I
Rather
than
an
actor,
I'm
not
sure
you're
understanding
me
yeah,
there's
there's
a
treaty
of
transmission.
That's
our
five
percent
phoenix
carefree
us
it's
standard,
but
there's
also
distribution
losses.
There's
links
out
of
the
pipe
there's
leaks
as
we
go
over
there,
a
lot
of
leaks
over
there,
flushing
etc
are.
Are
we
charging
for
that
water
there
too,
those
those
losses.
There
are
two
two
factors
there.
G
Well,
from
accounting
standpoint
losses,
we
do
account
for
that
and
that
actually
builds
into
the
accounting
of
why
there
are
system
losses
whenever
we
have
a
leak.
Mostly,
it's
been
service
line,
leaks
recently,
which
we
can
address
more
quickly
and
we
have
been
dressed
more
quickly.
The
main
line
breaks
which,
which
are
the
larger
losses-
and
there
is
some
flushing
going
on
out
in
desert
hills,
not
as
much
as
in
cave
creek,
because
they
do
have
ground
water
in
the
system
where
parts
less
flushing
out
there.
G
I
I
Okay,
so
we
still
that
that's
an
issue,
that's
an
issue
that
we
have
losses
out
there.
Every
distribution
system
has
losses,
we
have
losses
out
there
and
so
right
now
the
cape
creek
system
is
effectively
covering
those
losses.
That's
that's
an
issue.
I
think
we
need
to
take
care
of
okay,
I'm
not
sure
when,
but
it
needs
to
be
taken
care
of.
G
J
G
I
believe
I
remember
from
the
report
and
kevin
might
be
able
to
jump
in.
I
think
it's
about
two
or
two
dollars
and
fifty
cents
per
acre
foot
difference
between
the
water
and
that's
really
our
our
cost
of
the
the
cap
water
itself.
So
we
built
in
two
rates,
if
I
remember
correctly
one's
just
over
six
dollars,
the
others
eight
and
a
half
dollars.
G
The
goal
would
be
again
if
they're
they're
paying
for
the
ongoing
capital
maintenance
costs
delivery
costs
on
the
ni
water
within
their
their
base
budget,
including
they're,
also
paying
for
the
debt
service
on
that
allocation,
and
it's
really
when
they
dip
into
ours.
We're
saying
we're
going
to
have
them
charged
at
the
rate
that
we're
we
pay
for
the
m
I
water
and
then
again
we
we're
putting
a
10.
G
I
think
it's
a
10
admin
fee
on
top
of
all
that,
and
then
five
percent
treatment
and
transmission
losses
on
top
of
that
so
sort
of
a
fairness
equity
where,
if
they're
dipping
into
our
supplies,
it
costs
that-
and
I
forget
what
it's
in
the
report
and
I
believe
it's
about.
250
percent
difference
between.
G
K
G
E
E
G
L
G
G
That
will
begin.
I
believe
I
have
to
bring
back
to
the
council
for
you
to
execute
the
subcontract.
We
just
got
the
draft
last
week.
Other
water
issues
is
that
we
do
have
groundwater
wells
in
cave
creek,
but
none
are
currently
operational.
That's
something
that
I've
talked
about
in
our
my
updates
is
something
we're
looking
into
to
see.
G
There's
three
production
wells
out
in
desert
hills,
but
they
currently
are
making
less
than
half
the
water
needed.
That's
something
when
we
did
the
last
rate,
I
heard
from
a
rate
study
heard
from
several
people
in
desert
hills
that
they
thought
that
the
only
reason
cave
creek
bought
desert
hills
was
for
the
water
resources,
and
I
had.
G
No
and
that's
actually
not
the
case
that
cave
creek
has
been
supporting
the
water
resources
out
in
desert
hill
since
purchase,
but
that's
something
that
you
know
we're
very
cautious
of,
and
then
we,
you
know,
treat
them.
As
you
know,
our
customers,
we
treat
them
the
same.
We
did
secure
the
non-needing
agricultural
cap
supply
for
them.
That
is
a
less
secure.
H
G
Allocation
moving
forward,
but
it
is
a
subcontractor
we
put
that
in
place
to
help
support
desert
hills
because
they
never
had
a
surface
water
right
before
last
year,
council
worked
with
staff
and
we
adopted
the
new
water
resources
policy
that
was
trying
to
look
and
preserve
our
our
water
resources
in
the
town.
For
the
first
time,
it
created
a
volumetric
limit
on
new
service
accounts
and
also
placed
a
restriction
on
service
accounts.
New
service
accounts
outside
of
town's
municipal
limits.
That
was
an
add-on
from
the
2017
policy.
G
So
again,
this
council
and
prior
councils
have
been
thinking
about
water
resources
for
a
long
time.
The
rate
study
helps
us
put
the
numbers
to
those
types
of
conversations,
and
we
have
water,
storage
and
recharge
options,
water
storage,
being
the
long-term
storage
credits.
Last
year,
we
were
able
to
get
the
contracts
in
place
with
arizona
department
of
water
resources
which
allows
us
to
place
some
of
the
the
unused
portion
of
our
municipal
and
industrial
supplies
into
long-term
storage
credits.
G
So
we'll
hopefully
get
that
done
this
year
or
we'll
be
doing
that
this
year
and
generating
some
credits
for
the
town
and
then,
as
we
move
forward
with
our
master
plan,
we
need
to
look
at
recharge
options
because
we
have
an
imbalance
with
our
effluent
generation
and
our
deliveries
to
our
irrigation
customer
at
rancho.
Miano
golf
course.
G
Thanks
a
lot
brian,
so
the
next
steps
in
this
rate,
study
and
capacity
fee
study
are,
we
obviously
have
the
meeting
today
september
19th.
We
would
do
a
notice
of
intent
to
raise
rates
and
capacity
fees,
that's
actually
required
by
state
statutes.
What
that
does
is
it
sets
a
60-day
clock
period.
We
have
to
identify
in
that
intention,
the
public
hearing
date.
It
also
sets
30
days
before
that
public
hearing
date
is
when
we
actually
have
the
final
reports.
What's
before
you
today
is
the
draft
report.
G
So
it'd
be
january,
4th
at
this
current
schedule
that
the
new
rates
would
become
in
place.
Customers
wouldn't
see
an
impact
until
their
february
bill,
because
if
the
rates
come
in
fact,
the
beginning
of
january
would
be
their
january
consumption,
which
we
bill
in
february
that
they
would
see.
So
I
just.
C
F
Mayor
members
of
council,
we
have
provided
the
study
and
all
of
the
information
to
the
council
members
elect
at
the
same
time
that
you
received
it.
So
all
of
the
information
is
there
and
are
they're
invited
to
all
of
the
meetings,
and
I
think
mr
rhodes
and
mr
alkema
are
here.
Mr
ogerton
will
be
reviewing
the
information
and
they
have
an
opportunity
to
speak,
ask
questions
and
meet
with
staff
or
talk
with
the
consultants
as
any
sitting
council.
F
G
Okay
right
next
slide,
so
with
that
I'm
going
to
pass
it
off
to
our
expert,
which
is
kevin
barnett
at
wilden
financial
services
and
he'll
go
through
some
more
slides
gets
into
more
details.
We
just
want
to
provide
the
staff
a
general
overview
of
the
the
high
high
points.
Obviously
there
are
some
significant
rates
being
discussed,
but
the
real
takeaway
is
that
if
we,
if
we
don't
do
it
now,
we
are
going
backwards
in
effect
with
and
and
working
towards,
the
goals
of
becoming
true
enterprise
funds
for
the
town.
M
F
M
Yes,
so
the
the
wheeling
rate
for
the
the
nia
water
to
desert
hills
is
six
dollars
and
82
cents
per
thousand
gallons
and
the
m
I
water
rate,
is
eight
dollars
and
ten
cents
per
thousand
gallons.
Thank
you
all
right.
So,
hopefully
I
was
able
to
multitask,
and
you
can
see
my
my
powerpoint
screening
now.
M
M
So
we've
talked
a
little
bit
about
this
sean
kind
of
went
through
this
a
little
bit
in
his
presentation.
But
why
are
we
conducting
the
rate
study?
The
system
demands
change
over
time,
cost
increase
over
time.
We
want
to
make
sure
that
we
have
adequate
revenue
to
fund
current
and
future
projects.
We've
got
reserves
that
we
need
to
meet
at
obligations
that
you
have
outstanding
as
well
as
potential
new
coming
online,
and
we
need
to
make
sure
that
we're
maintaining
the
system
appropriately.
M
M
We
certainly
want
council's
input
as
we
move
forward,
but
this
is
our
preliminary
findings.
We
wanted
to
share
with
you
all
and
then
we
wanted
to
develop
recommended
rates
based
on
the
financial
plan.
The
financial
plan
tells
us
how
much
revenue
we
need
to
generate.
So
then
we
did
a
cost
of
service
analysis
to
determine
what
customer
classes
are,
placing
what
costs
on
the
system
and
then
evaluating
some
rate
alternatives
for
how
are
we
going
to
recover
that
revenue
that
we
need
to
operate
the
system?
M
And
then,
finally,
we
updated
the
capacity
fees
for
the
current
cost
of
growth.
As
sean
mentioned,
it's
been
several
years
since
that
was
last
updated
to
make
sure
we
were
reflecting
the
current
cost
growth
so
right
now,
what
we
have
here
showing
is
a
graph
of
the
cave
creek
water
system.
So
this
is
assuming
we
do
nothing.
So
no
rate
increases
no
additional
revenue
going
forward.
M
So
you
can
see
the
blue
bars
are
at
the
revenues
and
the
red
bars
are
the
expenses
so
they're
being
measured
on
the
the
left-hand
axis
there.
So
you
can
see
our
expenses
are
heating
our
revenues
every
year,
the
right
side
of
the
of
the
graph,
the
right
axis
there
is
representing
our
debt
service
coverage,
the
dsc
that
you
see
at
the
bottom
sean
touched
on
this
a
little
bit
during
his
presentation.
M
So,
as
part
of
your
outstanding
debt
that
you
have
currently
you've
made
a
promise
or
a
pledge
to
your
bondholders
that
you
will
have
a
dollar
twenty
of
net
revenues,
so
revenues,
less
operations
and
maintenance
expenses
for
every
dollar
of
debt
service.
You
have
outstanding,
so
the
green
bar
rep
or
the
green
line
rather
represents
your
debt
service
coverage.
That's
your
actual
coverage
and
the
purple
line
represents
what
it's
supposed
to
be.
I
M
I
A
B
I
Well,
let's,
let's
go
on,
but
that's
that's
a
key
question
and
we
need
this
needs
to
be
tied
to
numbers
that
we
know.
We
know
what
the
budget
is.
We
should
be
able
to
see
a
reconciliation
of
what
these
numbers
are
reconcile
back
to
what
our
budget
is.
So
we
know
we
have
a
a
righteous
starting
point.
B
B
M
Yeah,
so
that's
the
left
side
of
the
graph,
the
seven
million
dollars
you're
referencing,
that
relates
to
the
revenues
and
expenses
so
that
relates
to
the
bars.
The
two
lines
are
represented
by
the
right
side
of
the
graph.
The
zero
points
go
up
to
1.40.
So
that's
a
coverage
metric
that
we're
looking
at
on
the
lines.
C
E
M
B
B
J
M
So,
based
on
my
conversations
with
jim
strickland
that
town
manager
had
mentioned
earlier,
he
indicated
that
there
were
two
types
of
bonds
on
the
cave,
creek
water
system.
One
of
them
was
a
revenue
bond
that
did
require
the
1.2
times
debt
service
coverage,
and
then
there
were
other
bonds
that
were
backed
by
an
excise
sales
tax,
an
excise
tax.
So
the
excise
tax
bond
related
bonds
do
not
need
to
meet
the
1.2
coverage
from
revenue,
but
the
there
still
was
outstanding
revenue
funds
that
required
the
1.2.
But
I
will
reconfirm
with
him.
B
M
E
H
I
I
just
came
into
this
late
in
the
game,
so
I
honestly
don't
know
if
he
was
using
the
when
he
said
the
original
budget,
I'm
not
entirely
sure
he's
projecting
off
my
numbers
and
I'm
sorry.
I
did
not
reconcile
this
because
I
haven't
really
worked
too
directly
with
kevin
other
than
answering
his
questions.
So
that's
my
fault.
I
didn't
reconcile
as
far
as
your
cred
question
for
cave,
creek,
water,
there's,
no
transfer
from
the
general
fund
to
support
cave
creek,
water,
it's
coming
from
the
water
infrastructure
fund
and
it's
about
822
000.
B
F
F
Mayor
members
of
council,
I
think
if
you
look
at
this
year's
this
fiscal
year's
budget,
there
were
two
revenue
sources
that
avoided
using
general
fund
monies.
One
was
the
rf
funding
that
went
towards
the
capital
projects
and
the
water
infrastructure
fund,
so
those
two
funds
balance
the
budget
for
the
revenues
for
this
fiscal
year.
23.
F
Mayor
vice
mayor
that
was
voted
on
by
council
to
amend
that
ordinance.
Did
we
do
that?
Yes,
you
did
well,
someone
did
might
not
have
been
all
of
you,
but
at
some
point
the
council
voted
on
that
ordinance
to
make
that
change,
and
so
that's
divvied
up.
There's
a
hundred
thousand
that
goes
to
the
park
and
then
the
remaining
is
50
50
between
general
fund
and
water
infrastructure
fund.
B
B
Grow,
as
I
remember
the
last,
the
last
decision
made
by
council
was
when
that
that
divvying
up
took
place
a
hundred
thousand
dollars
over
here
for
trails
and
then
x,
number
of
dollars
for
infrastructure
and
as
I
remember
it
was
specifically
infrastructure
and,
and
I'm
100
sure,
and
I
I
don't
believe
that
the
council
and
that
would
include
me,
made
a
decision
to
change
that.
Subsequently.
B
B
F
The
the
the
overall
point
here
is
that
we're
trying
to
get
the
rates
to
have
a
a
self-funded
enterprise
fund
so
that
the
rates
are
covering
the
o
m
and
the
future
capital
projects
and
when
the
debt
service
ends
for
both
water
and
wastewater
at
some
point,
those
other
subsidies,
those
half
cents,
sales
tax
for
sewer
and
the
water
infrastructure
fund,
and
all
of
that
can
be
potentially
redirected
for
other
purposes
or
even
eliminated.
If
you're,
in
that
good
financial
situation,
to
do
that.
B
Okay,
I
noticed
in
a
one
that
the
chart
that's
going
to
come
a
little
ways
along
the
line
here,
that
there
is
a
728
thousand
dollars
from
the
water
instructure
fund.
That's
going
to
go
into
the
the
kitty
to
pay
off
all
of
the
expenses
for
a
cake,
creek
water
and
then
every
every
date
year
below
that
it
says
zero.
B
F
B
B
B
Repair
water
lines
and
do
all
sorts
of
other
things
that
you
know
that's
the
original
purpose
that
come
that
come
about
things
that
come
along.
You
need
money
to
fix
them,
do
them
and
sometimes
it'll
be
a
small
project.
Sometimes
it
won't
it'll
just
be
a
repair,
but
that
was
the
original
purpose
of
the
water
infrastructure
fund,
and
that
is
a
recurring
portion
of
that
half
percent
sales
tax
that
was
originally
established
relating
to
spur
cross.
B
B
I
got
carried
off
on
this,
but
I
think
it
indicates
something
that
I
did
not
originally
know
how
bad
the
revenue
expenditure
projections
were
going
to
be,
and
it's
a
it's
apparent
that
when
we
start
talking
about
increasing
rates
that
it's
not
just
probably
important
to
think
about
it.
But
it's
an
obligation
because
otherwise
we're
going
to
be
in
trouble.
M
Do
and
I
think,
based
on
the
discussion
here,
I
think
I'm
hoping
that
this
will
clear
things
up
a
little
bit
and
not
add
confusion.
So
what
I'm
showing
there
in
the
revenue
it's
strictly
revenue,
so
your
water
rate
revenue,
your
capacity
fee
revenue,
any
late
fees
on
bills,
turn
on
turn
off
fees,
just
the
revenues
and
interest,
that's
just
the
revenues
itself.
What
I'm
not
including
in
here
is
any
great
funds
that
come
in
has
acquired
or
anything
else
of
that
nature
help
make
the
fund
whole
in
2023.
J
F
F
L
M
But
the
fun
balance
was
an
issue
on
the
desert
hillside,
so
the
the
purple
bar
right
at
about
the
million
dollars
line
on
the
on
the
right
hand,
side
of
the
graph.
That's
what
the
target
fund
balance
is
based
on
the
three
months
of
o
m,
that
shawn
alluded
to
in
his
presentation
and
then
the
green
line
represents
what
the
actual
fund
balance
is.
So
the
the
the
fund
balance
under
a
status
quo
scenario
is
well
below
the
target
and
that
goes
negative
throughout
the
study
period.
M
And
then,
on
the
wastewater
side,
a
similar
projection
so
again
the
revenues
coming
in.
So
these
are
the
utility
rate
related
revenues.
It
does
not
include
the
half
cent
sales
tax
that
sean
mentioned,
and
then
we've
got
our
expenses
there
and
then
again
the
the
green
line
being
the
fund
balance
and
the
verbal
line
being
the
target
unbalance
of
three
months
of
operations,
so
we're
well
below
what
the
target
is
for
the
wastewater
enterprise
as
well.
M
So
with
that,
why
are
we
needing
to
raise
water
rates
so
we
need
to
meet
the
increasing
o
m
costs.
We've
seen
we're
in
a
very
high
inflationary
environment
environment
right
now,
so
we
took
that
into
account
in
the
financial
plans.
We
had
higher
o
m
escalators
in
the
couple
of
years,
we're
bringing
it'll
tail
off
as
we
move
away
from
today.
M
We've
got
cash
capital
needs
over
the
next
five
years,
so
the
cave
creek
system
has
6.2
million
dollars
worth
of
cash
funded
capital.
There's
also
the
phoenix
interconnect
that
sean
mentioned
earlier.
That's
proposed
to
be
funded
through
with
a
debt,
so
that's
over
and
above
the
6.2
million
in
cash
funded
capital.
There's
3.7
million
dollars
worth
of
desert
hills
capital
required.
M
We've
got
targeted,
reserve
levels
that
we
need
to
meet.
The
debt
service
coverage
requirement
again
we're
anticipating
a
whiff
alone
for
cave
creek,
so
we'll
have
more
debt
coming
on
there,
and
then
there
was
the
allocation
of
debt
for
desert
hills.
That
shawn
talked
about
where
we
looked
at
the
initial
debt
issuances
what
they
were
used
to
before,
what
they
funded,
and
we
came
up
with
an
allocation
of
fifty
percent
of
that
debt
could
be
crete.
System
related
and
50
should
be
desert
hills
related
based
on
how
the
funds
were
used.
M
Was
there
a
question
there?
No,
no
okay,
I'm
hearing
things
saying
so.
A
revenue
increase
tells
us
how
much
more
revenue
we
need
to
operate
the
system.
So
that'll
tell
us,
we
need
10
more
revenue
or
we
need
5
more
revenue
in
order
to
fund
our
expenses,
meet
our
coverage
requirements
and
maintain
adequate
reserves.
M
A
rate
increase
is
how
that
revenue
increase
is
translated,
so
we
might
need
an
overall
10
more
revenue,
but
it
might
mean
that
the
base
charge
goes
up
by
7.
The
first
tier
of
the
volume
rate
goes
up
by
two
percent.
The
fourth
tier
goes
up
by
12,
so
you're
not
going
to
see
an
exact
matching
between
what
the
rates
are
and
what
the
revenue
increase
itself
is.
M
So
with
that
we've
got
the
the
revenue
recommendations
for
cave
creek.
So
this
is
how
much
additional
revenue
is
needed
to
adequately
maintain
the
system
so
for
22
23.
This
current
fiscal
year,
we're
anticipating
it
would
go
into
effect
in
january,
we're
looking
at
eleven
percent
more
revenue
that
we
need
to
operate.
The
system
this
year
followed
by
a
five
percent,
a
three
percent,
a
three
percent
and
a
three
percent.
So
we've
got
the
water
infrastructure
revenue.
M
M
So
you
can
see
with
these
revenue
increases
we're
above
the
1.2
targeting
every
year,
and
that
does
anticipate
the
new
with
the
loan
coming
online
and
then
we've
got
that
service
coverage
for
excise,
so
that
was
the
other
debt
issuance
that
you
had.
You
had
a
target
of
one
point:
zero
time
from
that,
so
you
can
see,
even
with
the
eleven
percent
increase
anticipated
for
this
year
were
just
barely
above
that
1.0
target
that
we
need
for
the
excise
related
debt
service.
M
I
I
And
my
horseback
number
on
that
was
about
20
25
per
per
account
on
average,
so
it
is
extremely
significant
that
we
don't
have
that
money
in
the
revenue
this
time
around.
The
second
thing
is:
have
we
borrowed
all
of?
Is
there
any
capex,
cip
money
that
we
are
not
borrowing?
For
I
mean
how
much
c,
how
much
cip
money
is,
is
not
funded
by
a
new
wiffle
loan
or
a
new,
whatever
loan.
M
F
Well,
the
general
fund
was
subsidizing
water
and
wastewater
still
this
fiscal
year
and
we
are
structuring
the
fund
or
the
revenues
and
the
rate
increases
to
cover
the
enterprise
fund
expenses
so
that
the
general
fund
does
not
have
to
subsidize
or
continue
to
subsidize
the
utilities
we're
working
towards
having
a
a
self-funded.
You
know
self-sufficient
enterprise
funds,
and
even
after
five
years
I
mean
we're
going
out
five
years:
it's
not
a
hundred
percent
for
every
in
every
area
of
water
and
wastewater.
F
M
This
is
what
we
have
with
the
the
cave
creek
water
system.
With
the
proposed
revenue
increases
associated
with
it,
you
can
see
the
the
bars
the
yes,
the
blue
bars
and
the
red
bars
are
getting
closer
to
where
they
were
before.
As
kerry
said,
we're
striving
to
get
there
so
that
it
is
a
self-sufficient
fund.
We
do
have
some
fund
balance
that
we're
relying
on
in
those
years
where
we
have
the
difference
between
the
revenue
coming
in
and
the
expenses
going
out
and
again.
M
B
B
M
No,
it's
not
a
profit.
It's
a
recognition
of
how
strong
your
your
revenue
stream
is
in
order
to
to
pay
your
debt
service
coverage,
so
the
bigger
the
delta
between
that
purple
line
and
the
green
line.
The
the
better
terms
you
will
get
on
your
your
debt
is
what
would
get
lower
interest
rates,
one
of
the
things
that
we've
been
talking
with
with
jim
strickland
about.
If
we
go
to
this
previous
previous
slide
here.
M
So
if
we
can
maintain
that
debt
service
coverage
line
at
1.50
or
higher,
then
wifi
will
not
require
you
to
set
aside
money
in
a
reserve
fund,
so
that
was
one
of
the
other
benefits.
Having
that
the
bigger
deal
between
the
green
line,
the
purple
line,
there
is
isn't
a
lower
interest
rate.
You
don't
have
to
find
a
reserve,
a
debt
service
reserve
with
the
future,
with
a
debt.
I
M
So
you
you've
got
a
deficit
between
revenues
from
water
rates,
capacity
fees
increase
those
kinds
of
things
and
expenses.
You
also
have
some
money
coming
in
from
grants.
You've
got
some
fund
balance
that
has
been
built
up
over
time,
that's
being
drawn
down
so
that
we
don't
have
to
raise
rate
quite
as
as
high
in
the
beginning.
We're
relying
on
fund
balance
to
make
up
some
of
that
deficit
going
forward.
C
M
M
M
Then
we've
got
the
target
cash
balance,
the
three
months
of
o
m
at
867
thousand
dollars
and
growing,
and
then
we've
got
the
actual
cash
balance
at
165,
so
we
don't
actually
meet
or
exceed
our
actual
our
target
cash
balance
until
26
27
based
on
these
increases
here,
it's
the
the
the
target
cash
balance.
Isn't
a
legal
requirement.
It's
prudent
financial
planning,
it's
something
that
the
bonds
wifi
would
look
at.
M
I
B
E
I
M
To
a
certain
extent,
yes,
on
the
desert
hill
system,
we
are
trying
to
maintain
that
reserve
and
and
have
an
enterprise
fund.
That's
appropriately
funded
and
doesn't
need,
doesn't
need
to
rely
on
other
sources
of
revenue.
The
23
24
24
25.
We
could
go
away
from
those
those
revenue
increases
and
then
that
would
certainly
not
have
the
accumulation
of
cash
by
the
time
we
get
to
26.27,
but
in
2223
that
25
percent
increase
gets
us
a
balance
of
165
085
dollars.
M
I
Yeah,
the
other
thing
is
we
in
2027,
starting
with
the
wastewater
system,
you
start
to
lose,
you
start
to
have
paid
off
those
bonds
and
that's
worth
1.6
million
and
p
I
and
then
yep
year
after
that,
you've
got
some
more.
So
we
we
have
a
peaking
problem
to
a
large
extent
in
that
we've
got
between
2022
and
2027,
the
next
four
or
five
years
before
that
starts
to
pay
out,
I'm
afraid
of.
F
F
So,
in
wastewater,
once
the
debt
service
is
paid
off,
you're
still
covering
the
o
m
and
future
debt,
but
you've
now
freed
up
your
half
cent
sales
tax.
That's
set
aside
for
sewer
to
for
for
your
decision
to
be
used
for
another
purpose.
You
could
repurpose
that
for
roads,
for
example,
because
in
four
years
we're
going
to
be,
you
know,
hurting
for
roads
on
the
you
know,
kind
of
goes
back
to
council
member
royer's
concern
about.
Are
we
covering
fire?
Well,
our
general
fund.
M
All
right
so
now
we've
got
the
the
desert
hills
graph,
with
the
proposed
revenue
increase
included.
So
in
this
case
we
do
have
the
revenue
bars
is
meeting
or
exceeding
our
expenses.
So
we
see
the
fund
balance
growing
over
time
and
by
the
time
we
get
out
to
2627
or
our
fund
balance
is
actually
exceeding
what
our
target
is.
M
M
So
at
this
point
we
don't
have
enough
money
coming
in
from
raising
really
fund
our
o
m,
let
alone
take
care
of
any
debt
service,
which
is
what
the
half
cent
sales
tax
is
for,
and
we
don't
have
any
revenue
available
to
fund
any
capital
projects
and
we've
got
three
million
dollars
worth
of
capital
projects
anticipated
over
the
next
five
years.
So
we
need
to
get
that
taken.
Care
of
the
goal
is
to
generate
a
positive
cash
balance
and
reduced
reliance
on
the
general
fund.
M
So
here
we've
got
what
the
the
revenue
recommendations
are
for
the
wastewater
system,
so
we've
got
a
60
increase
for
this
current
year,
followed
by
a
series
of
five
percent
revenues.
There's
a
general
fund
subsidy
of
1.4
million
dollars
budgeted
for
this
year.
We
haven't
budgeted
anything
for
future
years
and
then
the
final
column.
There
is
so
that's
our
our
water
rate,
revenue
wastewater
rate,
revenue
coming
in
less
our
annual
operations
and
maintenance
expenses.
M
So
you
can
see
even
with
those
increases
by
the
time
we
get
to
2627
we're
still
not
generating
enough
revenue
in
order
to
cover
the
the
the
annual
operations
and
maintenance
expenses.
The
gap
is
closing,
so
it
would
be
27
28
before
we
have
enough
revenue
coming
in
on
an
annual
basis
to
be
able
to
cover
just
the
cost
to
operate
the
system.
I
I
G
M
C
G
Mayor
councilmember,
yes,
we've
had
a
project
in
the
capital
program.
When
I
first
came
on
board
three
years
ago,
that
was
to
try
and
to
start
some
conversion.
Basically,
it
was
a
list
station
force
main
on
50th
street.
That
would
allow
for
one
of
the
subdivisions
to
become
the
sewers
become
live
than
the
conversion.
G
We've
been
actually
pushing
that
project
out
in
the
cip,
with
the
integrated
master
plan.
We
want
to
have
that
discussion
with
council
and
want
to
look
at
the
best
solution,
whether
that
force
main
list
station
or
new
gravity
lines
be
the
best
solution
for
that.
The
second
part
of
that
equation
is
then
encouraging
customers,
then
to
convert
right
now.
Town
code
says
that
they're,
not
even
if
we
make
this
the
make
the
capital
expense,
make
those
lines
active
the
collection
lines
they
don't
have
to
convert
until
their
septic
system
fails.
G
So
we
need
to
have
that
discussion
or
do
we
want
to
encourage
those
people
to
become
waste
water
customers,
and
how
do
we
do
that,
and
you
know
things
like
capacity
fees
were
not
paid
initially.
Would
they
have
to
be
paid
by
the
new
customers,
or
would
that
be
something
that
that's
a
discussion
we
want
to
have
as
part
of
the
integrated
master
plan.
G
C
G
Again,
mayor
council,
it's
one
of
the
things
that,
with
the
master
plan
we
want,
we
want
to
map
that
out
what
what
is
what's
the
infrastructure
needs
to
go
back
into
the
cost.
Again
there
was
a
project
that
I
don't
think
is
fully
flushed
out
in
the
cip.
We've
actually
pushed
it
out.
If
I
remember
to
the
outside
the
five
year
cycle,
yeah,
it
showed
up
in
the
ten-year
capital
programming
when
we
did
this
study,
but
I'm
hopeful
with
the
master
plan.
We
could
really
pull
that
up.
G
E
E
G
E
G
Yeah,
it's
it's
a
it's
a
question
as
far
as
how
code's
written,
because
I
think
it
says
the
septic
system
fails
and
it's
like
what
what
does
that
actually
mean?
This
will
each
feel
no
longer
leaching
and
they're
coming
to
us
to
get
a
a
modification
to
the
permit
from
maricopa
county.
We
don't
issue
the
permits
for
septic
systems
that
go
through
maricopa
county
right
now.
G
We,
if
they're
over
300,
feet
away
from
their
property
lines,
300
feet
away
from
a
collection
system,
we'll
write
that
waiver
in
effect,
which
allows
them
to
go
to
the
county
and
the
county
will
issue
a
permit.
If
we
don't
issue
that
letter,
the
county
won't
issue
a
new
septic
modification
permit
for
them.
So.
M
M
M
When
we
looked
at
the
data,
we
didn't
do
a
deeper
as
deep
a
dive
as
we
did
this
go
around.
So
previously
we
had
two
customer
classes.
We
had
residential
customers
and
non-residential
customers
for
this
study.
John
and
his
stuff
took
a
really
deep
dive
into
all
the
billing
data
was
received
and
identified.
M
M
So
we
got
much
better
detailed
billing
data
this
book
around
that
we
used
as
part
of
our
analysis,
we
recognize
that
the
different
customer
classes
pace
place
different
demands
on
the
system.
They
use
water
differently,
and
so
then
we
allocated
cost
based
on
fix
and
variable
cost
sean
touched
on
that
the
50
50
split,
the
number
of
customers
within
each
class,
the
total
flows
and
and
the
peak
demand.
So
how
customers
are
using
this.
M
And
then
on
the
volume
side,
so
we
see
some
more
changes
here
than
we
did
on
the
on
the
base
card
side,
we
maintained
the
existing
five-year
system,
so
we've
still
got
the
same
number
of
tiers
the
same
threshold,
but
we've
got
different
rates
depending
upon
what
customer
class
is
so,
as
I
said
before,
we
had
the
residential
class
before
so
now.
We've
segregated
out
residential
into
single-family
customers
and
multi-family
customers,
so
that
we're
more
accurate
accurately
reflecting
the
cost
each
of
those
classes
place
on
the
system.
I
Comments
here
that
this
has
added
a
lot
of
complication
and
it's
taken
away
a
lot
of
decisions
made
in
2020.
For
example,
three
quarter
versus
one
inch
meter
differences
there
and
is:
are
you
using
national
some
kind
of
national
standards
kevin
on
this?
As
as
to
the
cost
differences?
I
mean
what's
the
basis
for
what
is
the
the
fairness
reason
for
charging
different
amounts
for
the
different
water
classes
that
we
see
here.
M
He
would
know
exactly
how
much
water
was
going
to
be
used
every
day
every
month
and
he
could
size
the
system
appropriately.
For
that.
The
reality
of
water
systems,
though,
is
that
you
have
differences
throughout
the
year,
so
there'll
be
less
water
used
in
january
february
than
there
is
in
july
and
august.
So
sean
has
to
make
sure
that
the
system
is
sized
to
to
meet
the
summertime
demands.
M
The
peak
demands,
if
you
will
of
the
system
and
it's
very
costly
to
design
a
system
that
needs
to
meet
the
peak
summer
demand
but
is
using
average
demand
throughout
most
of
the
most
of
the
year,
so
that
incremental
cost
between
what
it
would
cost
to
size.
The
system,
if
you
use
the
same
amount
of
water
every
day
versus
how
the
system
has
to
be
sized
to
meet
the
the
peak
demand
the
summertime
demand.
M
So
those
costs
are
allocated
to
each
of
these
individual
customer
classes
based
on
what
their
respective
peaks
is.
What
the
difference
is,
between
their
average
day
demand
and
their
peak
day
demand
so
and
that's
an
awwa
industry
standard.
So
that's
what
we
use
to
to
help
generate
these
rates
and
the
differences
that
you
see
here.
I
Well,
I'm
going
to
be
talking
this
much
complication
because
I
I
just
I'm,
you
know
kiss
keep
it
simple
and
I
think
this
is
overly
complex.
You
know
the
awwa
is
based
on
you
know,
philadelphia
or
new
york
or
florida,
we're
we're
a
desert
community
and
just
adopting
them
without
understanding
the
difference.
Because
there's
a
fairness
issue
here.
Well,
I
mean
somebody.
I
Single
family
versus
multi-family,
you
know,
you've
got
you,
know:
50
cents
per
thousand
on
the
volume
and
well
on
the
volume
rates.
That's
that's
the
main
issue.
We've
got
value,
judgments
on
pool
versus
versus
no
pool
or
any
irrigation
versus
other
things.
I
don't
know.
How
is
that
an
irrigation
account?
Who
would
that
be.
G
Those
classifications
council
would
be
specific
account,
so
when
we
went
through
it
as
kevin
indicated,
we
were
able
to
look
at
the
the
meters
themselves.
We
spent
a
lot
of
time
myself
staff
looked
at
it.
These
pools
as
an
example.
We
currently
only
have
in
seven
commercial
pools
in
town,
so
that's
not
a
sub
meter
for
a
residential
user
as
a
pool,
that's
a
commercial
pool.
We
only
have
seven
of
those
in
town
right
now.
Irrigation
are
yes.
G
When
you
look
at
a
lot
of
our
commercial
accounts,
they
actually
have
a
separate
irrigation
meter
associated
with
them.
So
we
can
easily
distinguish
between
those.
So
that's
the
irrigation
being
the
outdoor
water
use
that's
associated
with
those
commercial
developments
rather
than
the
water
being
consumed
indoor,
and
we
spend
a
lot
of
time
on
the
single-family
multi-family
category.
We
actually
broke
this
single
family
into
different
levels
depending
on
lot
sizes
and
other
things
we
decided
to
use
a
single
category
for
single
family
multi-family.
Last
time
around.
G
We
only
had
17
accounts
in
the
town
that
were
of
our
2800
accounts
that
were
classified
as
multi-family,
but
when
we
looked
at
it
and
used
the
broader
definition
of
whether
or
not
they
had
common
amenities,
common
walls
and
more,
it
was
their
outdoor
landscaping
irrigation.
That
was
a
community
amenity
rather
than
an
individual
load
attributed
house.
G
We
came
up
with
over
300
accounts
that
we
think
meet
the
criteria
for
multi-family,
so
it
allowed
us
to
go
dive
a
little
bit
deeper
into
it
and
when
you
look
at
the
multi-family
specifically
since
they
usually
are
smaller
properties,
they
have
less
indoor
water
use
and
there's
usually
very
little
if
any
outdoor
water
use
associated
with
them.
So
that
was
the
breakdown
between
multi-family
and
single-family.
So
we
thought,
because
we
had
better
data.
It
was
an
opportunity
for
us
to
look
at
these
different
categories
differently.
I
I
I
would
need
to
see
why
to
have
this
many
classes
and
classifications.
We
tried
to
simplify
it
last
time,
but
last
time
we
couldn't
even
distinguish
between
commercial
and
residential
and
multifamily.
I'm
glad
to
see
we
have
that
in
there
that
we're
planning
for
that,
but
I
you
know
we
probably
spent
more
time.
I
It's
not.
What
purpose
is
it
designed
to,
and
is
that
purpose
accurate?
That's
my
question:
having
all
these
different
categories
so
and
we
can
go
on-
that's
that's.
I'm
gonna
need
for
me
to
vote
for
as
this
complicated
system.
I'm
gonna
have
to
know
why,
and
it
actually
is
fit
more
fair
than
just
having
a
simple
system.
M
K
Hi,
this
is
dusty:
rhodes,
41403,
north
old
stage,
cape
creek,
see
if
I've
got
the
reading
on
this
right,
so
your
first
ten
thousand
gallons,
you
get
charged
three
dollars
and
nine
cents,
ten
thousand
one
to
twenty
thousand
gallons.
It
increases
to
four
dollars
and
sixty
four
cents
correct,
correct.
Okay,
thank
you.
M
Sorry,
okay,
yeah,
so
the
base
charge
for
desert
hills.
So
we
maintain
the
same
right
rate
structure
as
we
had
before
the
5
8
inch
and
then
the
boosted
5
8
inch.
So
there's
about
that
10
or
so
difference
in
recognition
of
the
of
the
cost
to
provide
service
to
boosted
customers
on
the
volume
side
for
desert
hills,
we
only
had
two
customer
classes.
M
And
then
non-residential
we've
got
a
monthly
base
charge
based
on
the
size
of
the
water
meter,
because
there
are
what
there
aren't
specific
waste
water
meters
associated
with
each
account.
So
we
make
assumptions
based
on
the
water
meter
that
each
customer
has
and
then
we
maintained
the
the
same
customer
classes
for
non-residential
as
we
had
in
the
2020
study.
We
just
updated
the
rates
themselves
and
we
maintained
the
existing
rate
structure,
where
these
rates
would
apply
for
all
sewer
flows
above
10,
000
gallons
a
month.
M
All
right
shifting
gears
a
little
bit,
we
also
looked
at
capacity
fees
to
update
those
to
reflect
what
the
the
cost
of
growth
is
today,
so
just
a
bit
of
an
overview
on
capacity.
So,
unlike
the
the
rates
that
we
were
just
looking
at,
these
are
one-time
payments,
not
a
monthly
payment.
It's
at
the
time
of
building
permit
issuance
or
at
the
time
you
connect
the
system.
M
That's
going
to
benefit
the
system
as
a
whole,
and
there
has
to
be
a
rational
nexus
between
the
fee
and
the
service,
that's
being
provided.
So
we
undertook
an
analysis
to
do
this.
We
can't
just
look
at
what
our
neighbors
are
charging
to
decide
that
we
want
to
have
a
rate.
That's
in
the
middle
of
what
our
neighbors
are.
There
has
to
be
some
some
rational
nexus,
which
we
have
included
in
our
analysis.
M
So
the
way
we
looked
at
it,
so
this
is
the
system
valuations
of
how
we
came
up
with
the
fees.
So
we
looked
at
what
the
original
cost
of
the
fixed
assets
were,
this
the
assets
that
you
have
in
the
ground
today,
and
then
we
looked
them
up
into
today's
dollars.
We
said
if
a
pipe
was
put
in
the
ground
in
1969.
M
What
would
be
the
value
of
that
pipe
today?
If
we
were
to
replace
that
pipe
today,
so
we
brought
the
asset
up
into
today's
value
and
then
we
subtracted
accumulated
depreciation
so
where
we
recognize
that,
while
we're
bringing
the
assets
up
into
today's
dollars,
we're
not
asking
new
development
to
buy
into
a
brand
new
city.
It's
a
system,
that's
been
in
the
ground.
M
It's
had
some
deterioration,
it
has
had
some
depreciation,
so
we
want
to
recognize
the
fact
that
we're
not
asking
new
customers
to
buy
into
a
brand
new
system,
but
rather
one
that
has
depreciated
over
time
to
the
extent
that
there
was
fund
balance
that
had
been
accumulated
through
preach
capacity
that
previous
development
has
has
paid
into
the
system.
We're
asking
new
development
to
share
into
into
the
fund
balance,
that's
going
to
be
used
to
expand
and
improve
the
system
going
forward,
and
then
we
also
subtracted
out
debt
principle.
M
That's
paid
through
rates,
so
the
reason
we
did
that
was
to
avoid
double
counting.
So
if
we
were
to
include
all
debt
principal
and
all
interest
costs
into
our
calculation,
then
we'd
be
asking
new
development
to
pay
for
that
service
once
when
they
paid
their
capacity
fee
and
then
we'd
be
asking
them
to
pay
for
that
same
debt
service
a
second
time
through
their
rates.
M
C
M
B
M
So
that's
our
starting
point,
but
at
the
same
time
it's
not
a
brand
new
system,
we're
valuing
it
as
a
brand
new
system,
but
it's
not
in
fact
a
brand
new
system.
It
has
had
wear
and
tear
and
deterioration
to
it.
So
that's
why
we're
backing
out
the
accumulated
depreciation
in
recognition
of
the
fact
that
it
is
not
a
brand
new
system
it
it
does
have
some
wear
and
tear
to
it.
M
C
C
A
H
I
Well,
you're
you're
compensating
the
existing
owners
who
funded
that
project
to
start
with
who
built
that
and
paid
for
it
and
you're
letting
them
buy
in
because
they're
going
to
be
using
someone
else's
asset
you're
rewarding
the
existing
customers.
Who've
already
put
that
in
there
and
that's.
This
is
a
standard
way
of
doing.
D
I
F
Kevin
as
we
as
we
do,
the
new
do
updates
to
the
capacity
fees.
So
we
do
these
studies
say
every
five
years
or
so
we
would
capture
you're
taking
that
picture
over
the
five
years
of
what
the
value
is.
But
then,
when
you
redo
this
this
study,
you
will
update
that
if
we've
put
in
new
equipment
you're
going
to
increase
the
value
of
the
new
replacement
equipment,
we've
put
in
right
as
we've
corrected.
Yes,
you're
catching
up,
you
have
to
keep
up
in
the
study.
M
C
I
I
M
M
On
the
desert
hills
side,
so
we've
got
the
existing
capacity
fee
for
a
three-quarter
meter
is
7
451.,
we're
saying
the
the
value
that
we
came
up
with
for
a
three-quarter
inch
connection
on
the
desert
hill
system
is
14,
565
dollars,
so
almost
double
what
the
existing
fee
is
today,
but
at
the
same
time,
as
we've
discussed
a
little
bit
previously,
we're
not
anticipating
much
growth
in
the
desert
hill
system.
Right
now,
sean
talked
a
lot
about
the
water
issues
out
there
and
the
availability
of
water.
I
M
So
we
were
looking,
we,
we
undertook
the
same
analysis
for
both
for
both
fees.
So
we
looked
at
what
the
existing
assets
were:
the
value
of
the
existing
assets,
the
replacement
cost
of
the
assets
and
then
the
total
capacity
that
could
be
served
so
with
the
desert
hill
system,
with
the
limited,
more
limited
water
resources
available
to
them,
there
was
less
less
capacity
associated
with
the
system,
so
less
new,
a
smaller
number
of
connections
that
can
be
made
to
the
system
which
drove
the
fee
up
on
the
desert,
hills
side.
M
And
then
the
cape
creek
waste
water
system.
So
again
we
took
the
same
analysis
to
undertake
all
three
all
three
of
these,
so
the
existing
fever
cave
creek
water
waste
water
customer
with
a
three
quarter
inch
meter
would
be
eight
thousand
four
hundred
seventy-five
based
on
our
analysis,
we're
saying
that
the
system
is
valued
at
twelve
thousand
four
hundred
and
eighty-two
dollars
for
a
three-quarter
inch
system.
M
So
that's
the
end
of
the
formal
presentation.
So
again,
this
is
what
the
same
schedule
that
sean
had
laid
out.
I
know
we've
covered
a
lot
today.
It
was
fairly
high
level
so
to
the
extent
that
I
can
answer
any
questions
for
you
today
or
if
it
would
be
more
helpful
to
have
one-on-ones
or
meet
with
or
have
you
final
questions
for
me
through
staff
after
you've
had
time
to
think
about
this
and
digest
it,
I'm
happy
to
help
out
any
way.
I
can.
F
Yeah,
could
I
just
make
one
last
comment
about
the
capacity
fees
just
a
reminder
that
the
last
time
we
did
a
capacity
fee
study
and
update
it
was
2014
versus
you
know
the
water
rates
we
we
increase
in
2020
after
study,
and
I
can
tell
you
that
much
more
detail
and
accurate
information
that
went
into
this
study,
so
that
also
helps
explain
the
the
significant
increases.
It's
been
a
long
time
since
we've
looked
at
these.
A
It
appears
that
this
is
an
incentive
to
using
more
water
rather
than
less,
and
I
think
you
must
be
talking
about
those
50
000,
gallon
users
and
and
yeah
so
can
we
can?
We
can
somebody
shed
some
light
on
that?
One
because
I
mean
they
went
from
15
bucks
of
15
bucks,
a
thousand
to
eight
dollars
and
50
cents
a
thousand
or
something?
If
I
remember
what
I
saw
in
those.
F
Right,
mr
mayor
members
of
council,
there
are
actually
at
the
very
end
of
this
study.
We
have
put
four
sheets
of
information
comparing
you
know
the
water
wastewater
rates
and
the
breakout
for
cave,
creek
versus
desert
hills,
and
we
specifically
put
together
a
current,
the
current
water
rates
and
proposed
water
rates
for
low
water
users,
and
they
you
may
find
also
that
in
that
category
you
may
find
folks
that
are
on
a
fixed
income
and
then
there's
a
those
folks
that
simply
are
very
conservative
with
their
water.
F
So
we
used
the
low
usage
of
5
000
gallons
per
month
and
that
so
that's
within
that
first
tier,
the
base
rate
currently
for
the
low
water
users
is,
I
know
it's
hard
to
read.
I
don't
have
my
big
sheet
here.
This
will
help
the
big
sheets,
so
I
can
actually
read
it.
The
base
rate
goes.
It
currently
is
56
and
where's.
My
page
here,
the
water,
okay
56.85,
is
the
current
existing
base
rate
and
then
the
proposed
base
rate
for
the
low
water
users
actually
is
reduced
to
43.36.
F
H
F
F
But
if
you,
if
you
look
at
that,
the
base
rate
goes
up
so
with
a
little
bit
of
water
conservation.
This
is
what
we're
trying
to
get
that
message
across
they're
using
over
ten
thousand
gallons.
So
ten
thousand
two
forty
two
they
used
just
a
little
bit
less
than
ten
thousand
it
wouldn't
take
much
to
reduce
their
water
usage
and
their
bill
would
actually
be
about
the
same
amount.
Their
base
rate
would
go
up,
but
if
they
use
a
little
bit
less
water
they're
gonna
keep
their
their
bill
about
the
same.
E
F
I
M
I
Did
yes-
and
this
is
the
way
the
math
comes
out
when
you
what,
but
it
seems
like
you're
shifting
from
volumetric,
which
is
going
to
conserve
water
over
to
fixed,
which
doesn't
matter
how
much
water
you
can
serve?
Now,
that's
good
if
you
run
into
a
real
big
problem
and
don't
have
the
water
to
sell,
because
85
of
our
costs
are
fixed,
and
this
was
designed
to
encourage
conservation
by
having
very
high
rates
at
the
high
water
user
in
and
that's
kind
of,
been
taken
out
of
this
particular
study.
H
M
Face
here,
as
we
dug
deeper
into
the
into
the
billing
data,
is
that
you
don't
have
a
lot
of
customers
or
a
lot
of
water
use
at
that
30,
000
and
higher
level.
So
we
were
trying
to
in
order
to
maintain
that
50
50
split
between
fixed
charge,
revenue
and
volume
rate
revenue.
We
had
to
increase
the
lower
tiers
in
recognition
of
the
fact
that
you
have
more
water
use
at
the
lower
tiers
and
not
that
much
coming
in
at
the
higher
tiers.
M
With
that
being
said,
we
could
tweak
that
1.5
differential,
that
we
have
and
make
the
higher
tiers
a
two
times
differential
or
or
something
of
that
nature
and
try
and
and
force
up
the
the
higher
tiers
to
encourage
that
conservation
and
provide
a
little
bit
more
of
a
break
for
those
who
are
more
water,
conscious
for
lack
of
a
better
term
in
the
lower
tiers.
That's
something
that
we
could
do
if
that's
council's
direction.
K
I
E
F
K
E
K
F
F
B
B
Actually,
all
I
would
like
to
say
is
that
I
compared
my
current
bill
and
usage
to
this.
It
would
increase
my
cost
by
30
a
month,
and
that
is
probably
not
way
out
of
line
with
what's
happening
with
the
economy
across
the
nation.
You
know
you
know.
People
on
social
security
are
talking
10
one
year
and
probably
10
another
year
that
even
somebody
on
social
security
can
afford
to
pay
a
little
more.
A
K
G
K
F
Mayor
where
you
do
see
the
data
is,
if
you
start
looking
in
the
appendix
like,
for
example,
in
cave
creek,
I
believe
it's
appendices,
a1
you'll,
see
the
capacity
fees
and
you'll
see
the
total
amount.
It
doesn't
give
the
units
we
can
get
that.
But,
as
you
see
the
trend,
it
does
start
to
go
down.
So
it
indicates
that
the
number
of
units
being
built
will
decrease
over
the
five
years.
K
K
But
somewhere
we
need
to
get
a
true
understanding
of
how
many
additional
buildings
and
things
are
they're,
going
to
build,
because
well
here's
the
problem
we're
supplying
water
to
them.
We
own
that
water
company,
if
they
build
in
excess
of
what
we
can
support
we're
kind
of
screwed
yeah.
That's
so
I'm
not
trying
to
be
rude
or
anything,
but
I
just
think
that's
somehow
or
other.
Our
planning
department
probably
needs
to
work
with
maricopa
county
to
to
figure
that
out
and
I'm
not
pinging
on
you
guys.
K
E
G
Yeah
mayor
council,
in
this
projection,
you'll
see,
and
actually
it
sounds
like
if
we
add
the
raw
data
set,
that
we
gave
to
kevin
as
far
as
the
growth
would
be
very
useful
to
see.
But
when
the
town
adopted
the
2021
water
resources
policy
in
the
last
year,
we
actually
put
in
place
of
we
can't
control
growth
out
in
desert
hills,
but
we
said
that
we
will
not
allow
new
customers
unless
there's
contractual
statutory
obligation
out
in
desert
hills.
So
we
have
talked
to
maricopa
county.
G
They
have
restrictions
on
what
they
can
restrict
growth
on
adwr
actually
has
restrictions
on
how
they
can
allow
people
to
put
in
non-exempt
wells.
We,
as
a
water
provider,
said
we
can't
allow
the
system
to
continue
to
grow
out
there,
so
we're
actually
stopping
new
new
connections
unless
there
is
an
existing
contractual
statutory
obligation
for
us
to
do
that.
K
I
I
also
know
how
big
city,
big
government
versus
small
town,
small
government-
I
I
usually
know
who
ends
up
winning
in
the
end
because
they
have
more
votes
right.
Just
as
a
I
know,
there's
nothing
you
can
do
about
it,
but
we
ought
to
put
some
kind
of
projection
in
there.
What
happens
if
right,
not
that
it
will.
But
what
happens
if
worst
case
we
have
to
now
eat,
maybe
100
customers
or
something?
How
would
we
do
that
and
what
it
would?
K
G
Yeah,
there
is
actually
one
development
out
there
that
actually
has
a
still
outstanding
certificate
of
assured
water
supply.
It's
for
54
lots
they've
approached
us
about
that,
but
they're
actually
responsible
for
providing
a
new
water
resource
to
enable
that
so
we've
also
heard
that
that
development
won't
move
forward
unless
we
allow
for
more
lots,
we're
saying
well
that
opens
up
the
entire.
You
have
to
do
more
than
just
bring
water
resources.
At
that
time.
My
conversation
yeah.
I
I'm.
K
G
No,
so
the
kuwait
count
code
currently
reads
is
that
if
a
property
was
in
300
feet
a
property
being
developed
the
property
lines
within
300
feet
of
existing
active
sewer
system,
they're
required
to
make
a
connection
so
that
we
in
fact
do
not
allow
them
to
go,
get
a
septic
permit
from
the
county.
So
if
you
look
at
the
in
my
presentation
earlier,
there's
the
the
towns
collection
system
is
a
much
more
defined
space,
limited
area
service
area
than
the
water
system.
G
G
G
K
K
B
I'd
like
to
give
you
just
one
quick
little
anecdote
relative
to
capacity
fees,
but
what
used
to
exist
called
development
fees,
and
that
is
that
when
I
decided
that
I
was
going
to
build
a
casita
at
my
home,
I
went
to
the
town
and
I
said
what
what
what's
the
development
fee
going
to
be,
and
they
said.
Oh,
it's
going
to
be
15,
16
000!
If
you
do
it
today,
what
if
you
do
it
after
september?
B
But
it's
things
like
that
that
the
town
of
cave
creek
was
doing
because
it
was
easy
money,
a
new,
a
lot
of
building
going
on
that
caused
the
legislature
to
say
no
more
development
fees.
Now
we're
going
to
have
something
called
capacity
fees
and
they're
automatically
going
to
be
much
more
controlled
than
development
fees.
So
that's
what
we've
been
living
with
the
past
few
years.
C
E
G
E
G
There
is
still
a
lot
of
again.
We
are
not
the
planning
agency
out
there
and
there
is
you'll
still
see
a
lot
of
development
out
in
desert
hills.
Most
of
the
development
you
see
going
on
right
now
in
desert
hills,
I
can
say,
is
typically
on
private
wells
they're
drilling
their
own
wells
to
to
get
water
supplies
so
they're
not
connected
to
our
desert
hills.
Water
system.
Thank.
E
G
Yeah,
what
we
learned
when
we
did
water
policy
is
maricopa
county
is
restricted
because
they
can't
prevent
someone
from
developing
what
they
call
a
dry
home.
So
someone
wants
to
put
a
house
in
and
say
hot
water
in.
They
can't
deny
that
and
adwr
can't
deny
someone
drilling
a
what
they
call
an
exempt
swell,
which
has
a
small,
well
capacity,
a
small
volume.
G
E
A
L
L
Someone
recognized
the
infrastructure,
668
thousand
hundred
thousand
dollars
coming
from
sales
taxes
collected
from
the
spur
cross
going
into
the
water
through
the
water
infrastructure
fund
and
brought
it
up
twice
and
got
no
reaction.
But
it's
nice
to
see
that
now
that
it's
approved
and
you're,
seeing
where
it's
being
spent
that
we
agree
on
something.
Thank
you.
L
L
L
L
However,
what
you'll
see
in
the
capacity
charge
analysis
breakdown
is
also
a
double
bite,
because
the
money
that
we
forgave,
the
nine
million
dollars
the
cave
creek
water
company
that
we
forgave
most
recently.
I
think
it
was
last
year-
and
I
think
I
I
can't
remember
how
many
others
were
in
the
room
or
on
zoom.
L
L
I
A
Yes-
and
I
think
I
think
the
the
major
thing
I'm
seeing
coming
from
this
is-
is
our
concern
for
the
large
users.
Not
you
know
get
it
getting
a
break
on
that,
since
we
need
to,
we
need
to
slow
them.
We
need
to
slow
down
the
the
high
capacity
usage
and
make
sure
that
we've
got
moving
into
the
future
as
powell
and
mead
and
the
colorado
river
become
more
stressed.
F
F
C
B
B
B
I
know
that
this
has
to
be
done.
Economics
alone
says
that
it's
got
to
happen
and
you
know
we're
in
the
midst
of
a
a
little
inflationary
trend
right
now,
and
it
may
go
down
a
little
bit.
But
the
thing
is:
it's
still
established
a
standard
that
is
going
to
carry
on
for
a
few
years
and
and
if
we're
ever
going
to
consider
being
anywhere
near
pay
as
you
go,
we're
going
to
have
to
have
revenue
revenue
that
matches
the
expenditures
that
are
going
to
be
coming
along.
F
Mr
mayor
vice
mayor
just
to
address
that
there
will
be
a
public
campaign,
as
we
kind
of
tweak
this
and
get
closer
to
a
a
firmer
decision.
We've
got
a,
I
think
it
was
october.
19Th,
I
think,
was
a
deadline
to
have
a
a
final
study
and
we're
putting
together
a
web
page
with
the
information,
but
we'll
also
be
direct
mailing
to
all
customers,
including
all
of
desert
hills.
So
you
will
most
likely
hear
from
desert
hills,
customers.
H
F
With
cave
creek,
water
and
wastewater
customers,
so
there
will
be
a
campaign
to
get
out
there
and
put
the
information
out
there
well
before
the
public
hearing
so,
but
instead
of
getting
everybody
riled
until
we
kind
of
whittle
this
down
to
a
firmer
look
of
what
the
final
version
is
going
to
be
like.
So
I
think
we'll
work
on
that.
First,
before
we
get
that
campaign
going
well.
F
E
Yeah,
when
we
bought
desert
hills,
they
had.
Marianne,
I
think,
was
the
woman's
name.
They
had
a
woman
out
there,
they
knew
and
they
had
connection
to
what
was
happening
and
then
all
of
a
sudden
you
got
another
town
coming
in.
They
don't
vote
in
the
other
town.
They
were
very
nervous
when,
in
fact
they
found
out,
they
were
getting
really
good
service.
All
of
a
sudden,
we
don't
see
them.
They.
The
water
advisory
committee,
really
almost
went
under
because
there
weren't
people
coming
in
because
we
were
giving
them
good
service.
They
weren't
afraid
anymore.
E
J
C
J
Bob
and
I
asked
the
same
type
of
question
about
the
the
numbers
and
where
we
derived
them,
and
you
gave
a
very
good
explanation,
kerry
and
I
appreciate
that.
But
I
would
also
feel
more
comfortable
and
I
think
shirley
is
planning
to
reconcile
potential
differences
between
the
20
fy
22
budget,
with
the
fy.
H
I
I
I
think
town
staff
ought
to
make
sure
there
are
no
other
options
that
would
lower
the
expenses
going
into
this
study.
I
mean
the
study
just
divides
it
up:
it's
the
town,
operation,
the
expenses
and
the
cip
and
the
covering
costs
for
any
borrow
we
do.
That
is
what
determines
these
big
60
increases
and
things
so
the
before
the
rate
study
we
need
to
see.
Is
there
anything
else
we
can
cut
out
of
there?
I
M
Yeah
so
so
jim
and
I
had
a
little
bit
of
a
discussion,
some
back
and
forth.
If
you
will
on
some
options
with
the
debt,
so
part
of
it
would
be
if
we
combine
pledges
between
the
cave
creek
system
and
the
desert
hill
system,
so
that
it
was
a
combined
pledge
to
meet
the
1.5
times
or
1.2
times
debt
service
coverage,
then
we
could
effectively
lower
the
rates
a
little
bit
on
the
cave.
Creek
system,
it
would
still
be
cave.
M
Creek
system
would
still
be
paying
the
debt
service
itself,
but
for
purposes
of
meeting
the
coverage
requirement,
it
would
be
a
combined
pledge
between
the
two
citizens,
so
that
could
improve
things
a
little
bit
there.
At
this
point
in
time,
we've
also
taken
the
most
conservative
approach,
where
we
said
the
the
whiff
of
bonds
for
for
the
phoenix
interconnect
system,
we're
assuming
full
debt
service
right
out
of
the
gate
which,
based
on
the
way
systems,
are
built.
M
It
would
be
a
draw
down
over
a
year
a
year,
maybe
even
two
years
of
that
loan.
So
if
we
more
appropriately
match
up
the
debt
service
with
the
the
draw
down
of
the
loan
to
actually
pay
for
the
energy
project,
that
would
let
the
debt
service
burden
on
fuel
as
well
and
gave
us
a
little
bit
more
wiggle
room
rate
as
well.
I
C
C
A
H
C
C
F
F
M
C
My
final
observation
here
is
with
regard
to
timing.
One
of
the
first
actions
of
the
new
council
is
to
increase
water
rates.
Good
luck
for
the
next
two
years.
Okay,
I
don't
know-
maybe
you
could
organize
the
meeting
to
the
old
council-
approves
the
rates
then
certified
the
new
council.
They
start
off.
I
don't
know,
I'm
not
part
of
it.
So
just
a
suggestion.
E
You
know
again,
I
what
I
see
in
this
is
that,
under
the
existing
system,
the
person
who
cuts
back
at
the
top
saves
saves
more.
How
am
I
going
to
put
this
the
person
at
the
top
I'd
like
to
see
a
greater
incentive
for
that
person
to
cut
back?
What
I
think
I
see
is
the
incentive
actually
is
decreasing
with
these
numbers.
That's
I'd
like
to
see
that
significantly
changed.
That's
that's
a
disappointment.
H
F
The
final
report
has
to
be
published.
We
also
have
scheduled
september
19th.
I
think
it
is
it's
the
second
meeting
in
september
for
the
60-day
notice
of
the
notice
that
basically
sets
the
public
hearing
for
that
second
meeting
in
november.
You
can't
have
it
any
earlier,
because
you
need
that
60-day
period,
so
we
can
try
and
meet
again
before
september,
19th
or
or
after
it
doesn't
matter,
but
you've
got
to
have
the
the
study
itself
finalized,
30
days
or
or
more
before,
that
public
hearing.
F
So
we'll
get
the
information
back
to
you
soon
as
possible
and
if
you'd
like
to
get
together
for
another
study
session
to
kind
of
finalize
that,
I
think
that
might
be
a
good
idea,
so
you're
all
talking
together
and
having
that
conversation,
if
there's
anything
else
left
to
tweak
in
the
study
before
we
finalize
it.
I.