CHARLOTTE WATER
ADVISORY COMMITTEE
MINUTES OF MEETING
March 19, 2015
Charlotte Water Advisory Committee met Thursday, March 19, 2015, 2:30 pm at 4222
Westmont Drive, Charlotte, North Carolina.
Members Present:
Jim Duke, Jim Merrifield, Pride Patton, Leslie Jones
Members Absent:
Ralph Messera, Frank McMahan, Ron Charbonneau
Staff Present:
Barry Gullet
Chad Howell
Jennifer Frost
Carl Wilson
Greg Harrison
Louise Bhavnani
David Czerr
Karen Weatherly
Director
Business Manager
Assistant to Director
Chief Engineer
Strategic Data Analyst
Community Outreach Specialist
Engineer Program Manager
City Attorney
Safety Minute
Chemical labels
Minutes
A motion was made by Leslie Jones, and seconded by Jim Merrifield, to approve the February
2015 Minutes. Motion was approved.
Community Investment Plan
CHARLOTTE WATER maintains 4,209 miles of water mains and 4,189 miles of sewer pipes
within Charlotte and its surrounding municipalities. David Czerr presented information about the
proposed FY16-20 Community Investment Plan (CIP). This combination planning and budget
tool includes four categories of projects: (1) rehabilitation and replacement; (2) capacity for
growth; (3) regulatory; and, (4) support of operations and other public projects. . The proposed
FY16-20 CIP budget includes over 100 water and sewer projects that will total an estimated
$633M. These projects are developed by identifying the specific scope and project needs that are
necessary to move forward with the process. Charlotte Water’s CIP is a major driver of future
rate increases. Charlotte City Council is expected to approve the CIP as part of the City
Manager’s Budget Recommendation in June.
Budget and Rates Plan
Charlotte Water staff presented additional rate options at the Charlotte City Council’s Budget
Workshop on February 25th. Four scenarios were presented with anticipation that the City
Manager will recommend one of them to City Council in May for approval in June. Charlotte
Water has a rate manual which describes the rate methodology. We are currently in the process
of revising the rate manual and would like the Advisory Committee’s input in the process. There
are a number of user fees such as Industrial User fees and Land Development fees that the utility
is considering for updates, addition, or removal during the budget process this year. Changes to
Charlotte Water or sewer rate methodology require a joint public hearing by City Council and
the Advisory Committee. Since revisions to the rate methodology are proposed for FY16, the
required public hearing is tentatively planned for May 11 at the same Council meeting where the
City’s overall budget public hearing will be held.
Financial Update
Excluding the cost of PCB clean-up operations, cost expenditures are trending on track as
planned for this fiscal year thus far. Operating expenses are also on track.
Trending Topics
Charlotte’s FY 2016 General Fund Budget Challenges - It has been identified that there is
currently a shortfall in projected property tax revenue in addition to the expected loss of revenue
from the repeal of the Business Privilege License Tax. The City Manager has proposed a number
of actions to resolve the revenue gap in the general fund. Charlotte Water does not receive tax
money and is therefore not directly impacted. However; there is an indirect impact to the utility
resulting from a hiring freeze imposed to create a vacancy pool that could be needed to avoid
general fund employee layoffs in the event of a reduction in the workforce. Charlotte Water does
not expect the general fund budget challenge to impact or impair our service provision.
Currently, Charlotte Water has 27 vacancies.
Bio Solids Update – NCDENR is preparing to renew Charlotte Water’s permit for land
application of biosolids. Charlotte Water staff will attend an upcoming public meeting conducted
by NCDENR and will make a brief presentation about the program. Land application is a widely
accepted and highly regulated method for biosolids disposal.
AAA Bond Rating – Moody’s Investors Service has confirmed the AAA bond rating with a
“stable” outlook for Charlotte Water. There are a small number of water/sewer utilities in the
country who have received a AAA rating from Moody’s. Charlotte Water has the highest
possible rating for water/sewer utilities from each of the three major municipal bond rating
agencies.
Meeting Adjourned – 3:50
TGN