Finance CommitteeMinutes 08/07/2023
Finance Committee Agenda
August 7, 2023
County Manager’s Front Conference Room
11:30 a.m.
Board Members in Attendance: Present: Ed Finn ‐ Deputy County Manager; Derek Johnssen – Clerk of Courts
Finance Director; Christopher Johnson – Director Corporate Financial and Management Services, Joseph
Bellone – Director PUD Operations Support
Other Attendees: Present: Jeff Klatzkow – County Attorney; Kenneth Kovensky – Executive Director Corporate
Business Operations; Matthew McLean – Public Utilities; Ellen Sheffey – TMS; Crystal Kinzel – Clerk of Courts;
Katrina Lin – Public Utilities
Phone: Steve Miller – Nabors, Giblin & Nickerson; Sergio Masvidal – PFM.
1. Call to order – Ed Finn called the meeting to order 11:45am August 7, 2023.
2. Approval of Agenda meeting noticed on July 26, 2023.
Approval of agenda by Derek, seconded by Joe, agenda approved unanimously.
3. Approval of Minutes from June 9, 2023, 2023
Derek Recommended Adjustments
Other Attendees ‐ Spelling error on Kenneth Kovensky
Item 4 ‐ Spelling error on Derek Johnssen
Item 5 – Ed – change held to minimum to held to a minimum.
Item 5 ‐ Matt – add 2023 after August.
Item 7 – Spelling error – change immanent to imminent.
Item 7 – Add million after 200
Motion to approve with adjustments Derek, Second Joe, minutes and adjustments, Agenda
unanimously approved.
4. Appoint Ellen Sheffey to the Finance Committee seat vacated by Gene Shue.
Chris: Gene Shue retiring will need a replacement for his position.
Motion by Derek, Second Chris, unanimously approved.
5. Discuss adding an additional seat to appoint Ken Kovensky.
Ed: Ken has been attending meetings, add to Board?
Jeff: Are there by‐laws regarding the number of finance committee board members?
Derek: I can look back and see if I can find any documents regarding the committee.
Discussion about creating a resolution or formalizing the committee.
Jeff: This is an important committee no one knows about.
Ed: Bring back to future meeting along with by‐laws for consideration.
6. AUIR Discussion
Public Utilities
Group Discussion on Public Utilities AUIR and funding requirements:
Golden Gate 2027 and Northeast 2028 – Potential $551 Million Bond potentially split into
two phases.
Three‐year spending requirements.
Rate Study in October ‐ Expansion is impact fee eligible current rate of $6,696 may be
doubled. Consultants developing two scenarios. 8%, 8%, 8% and 11%, 10%, 5%.
Possibility of doing it all at once?
Huge upfront investment in the northeast because the utility has to be there before the
people. As customers come online user fees increase.
Best‐case scenario ‐ construction schedule provides a certain curve related to your need
to increase rates and impact fees. The second alternative might provide for a delay. We
might need to look at some alternatives from a macro sense.
Potential Fee for inventory of availability?
Cost of delaying ‐ If it is done the first time you estimate it, get it done at those costs and
avoid the redesign. Could use examples as lessons learned for BCC.
Strategic balance of deferral ‐ for example having plants built with no flow to operate.
Potential for use of Innovation Zone Funding
7% approved increase helping with electricity and chemicals, but the need for capital
exceeds $60 million as $60 million now costs $80 or $90 million.
Suggestion of scheduling a separate meeting with Amy, Dan, Ed, and financial staff to
burn through this and lay out a strategy. Macro analysis with a couple of alternatives and
PAYGO for maintenance.
Recommends bringing the whole plan to the Board at once.
The message is going to be dramatic increases in construction costs.
Transportation
Group discussion on Transportation AUIR and funding requirements:
Stormwater $190 million shortfall over the next five years with $35 million next year.
Stormwater bond of $60 million will be fully committed by September.
With everything under contract there is little capacity for additional work.
Need for another financing mechanism by 2025 for $70‐$110 million for the next five
years.
Stormwater Utility didn’t work.
Possible Stormwater MSTU.
Alternatives include additional financing and dedicated funding sources.
Partnership projects with PUD and the City of Naples are a priority.
o These projects include total asset renewal (Water, WW, Stormwater and Roads)
Roads $295 million shortfall over next five years.
Borrowing capacity? $200 Million
Current Gas Tax Bonds mature in 2025.
Commercial Paper $10 million with Pelican Bay and $30 million with Transportation for
Vanderbilt Beach Road.
Keep exposure to variable rates in a rising interest rate environment down.
Potential for Surtax renewal.
Potential for CRA and Innovation Zone funding.
Fund 310 now includes landscape funding.
7. Other Business ‐ None
8. Public Comment – None
Adjourn 1:17 pm