CHARLOTTE WATER
ADVISORY COMMITTEE
MINUTES OF MEETING
January 15, 2015
Charlotte Water Advisory Committee met Thursday, January 15, 2015, 2:30 pm at 4222
Westmont Drive, Charlotte, North Carolina.
Members Present:
Members Absent:
Staff Present:
Jim Duke, Jim Merrifield, Ron Charbonneau, Pride Patton, Frank
McMahan
Leslie Jones, Ralph Messera
Barry Gullet
Regina Cousar
Chad Howell
Jennifer Frost
Steve Miller
Carl Wilson
Kara English
Greg Harrison
Director
Continuous Improvement Officer
Business Manager
Assistant to the Director
Customer Service Division Manager
Chief Engineer
Human Resources Specialist
Strategic Data Analyst
Safety Minute
Preventing Slips, Trips, and Falls
Minutes
A motion was made by Frank McMahan, and seconded by Ron Charbonneau, to approve the
January 2015 Minutes. Motion was approved.
Rate Information Presentation
A presentation to Charlotte City Council is scheduled January 26th to discuss rate options. Staff
has been diligently working on refining the budget presentation for review and will continue to
identify ways that the Utility can be more efficient in maintaining its resources. When making
the determination of how to set rates, Charlotte Water goes through a cost allocation process;
capturing contents of operating, maintenance, and capital cost which are categorized according to
level of service. Using these categories Charlotte Water will then use the findings to set the
methodology into effect for our residential and irrigation rate tiers along with setting a standard
rate for our commercial customers. A monthly fixed water and sewer fee along with availability
fees are components of the monthly bill. These fees help provide stability during a differentiating
economy and an irregular weather forecast. In 2011, there was an affordability study completed
as part of the Rate Methodology Study that helped Charlotte Water measure comparisons of
other regional municipalities along with socioeconomic data when determining a more structured
rating process. Currently, there is research going on at the UNC-Chapel Hill Environmental
Finance Center which is assessing innovative rate structures for utilities such as the “Cell Phone
Model.” This model consists of a rate setting model similar to how a customer may be billed for
their cell phone service
Bond Rating Agencies
Standard and Poors (S&P) and Moody’s Investors Service are changing their methodology for
rating municipal credit. Charlotte Water will have an in depth credit rating review sometime in
February or early March by each of them. There are only about 10 U.S. public water utilities that
have an AAA bond rating from Moody’s and Charlotte Water is one of them. Both of the
agencies look at the regional economy, system of management, and a host of other determining
factors. S & P has completed a surveillance call and it is Charlotte Water’s belief that the current
AAA rating by them will be upheld.
Financial Update
Revenues are trending on track as planned for this fiscal year thus far. Operating expenses are
also on track.
Miscellaneous
Kim Eagle – Kim has been drafted to be the City’s interim Budget & Evaluation director over
the next six months. Kim has previously worked in the Budget Office for several years prior to
joining Charlotte Water staff. Kim’s salary will be paid from the City’s general fund while she
serves in this role. Charlotte Water is excited for Kim to have this opportunity.
Adjourned at 3:57
TGN