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JWC Agenda 11-06-2024 AGENDA JOINT WATER COMMISSION November 6, 2024 – 1:30 pm Remote Attendance: Members of the public may attend this meeting via Microsoft Teams by calling 1-872-256-4160 and entering access code 119 801 16#. Questions/Comments: Members of the public who have questions about the commission or any items on the agenda should contact the staff commission liaison – Matthew Rowedder, Utilities Supervisor, City of New Hope, mrowedder@newhopemn.gov, 763-592-6760. 1. Call to Order—Roll Call 2. Approval of Minutes – October 9, 2024 3. Presentation on JWC Finances 4. Adjournment Joint Water Commission, October 9, 2024 Page 1 of 1 JOINT WATER COMMISSION MINUTES Golden Valley - Crystal - New Hope Meeting of October 9, 2024 The Golden Valley - Crystal - New Hope Joint Water Commission (JWC) meeting was called to order at 9:00 am. Roll Call Present Noah Schuchman, City Manager, Golden Valley Adam Bell, City Manager, Crystal Reece Bertholf, City Manager, New Hope Staff Present Tim Kieffer, Public Works Director, Golden Valley Dave Lemke, Operations Manager, New Hope Matt Rowedder, Utilities Maintenance Supervisor, New Hope Patrick Sele, Utilities Superintendent, Crystal Analeigh Moser, Accountant, Golden Valley Bernie Weber, Public Works Director, New Hope Jesse Struve, Public Works Director, Crystal Carrie Nelson, Engineering Assistant, City of Golden Valley Approval of Minutes – September 4, 2024 Moved by Bertholf and seconded by Bell to approve the minutes from the September 4, 2024 Joint Water Commission (JWC) Meeting. Upon a roll call vote the following voted in favor: Schuchman, Bell and Bertholf. The following voted against: None. Motion carried with the following correction: • The approval of the August 15, 2024 minutes was seconded by Commissioner Bertholf. Award Valley Rich Company to install a new 16” gate valve on 42nd Ave N, East of Winnetka Ave N Moved by Bell and seconded by Bertholf to award Valley Rich Company to install a new 16” gate valve on 42nd Ave N, East of Winnetka Ave N. Upon a roll call vote the following voted in favor: Schuchman, Bell, and Bertholf. The following voted against: None. Motion carried. TAC Update Staff provided an update from the September 26, 2024 TAC meeting. Adjournment Chair Schuchman adjourned the meeting at 9:08 am. ATTEST: Carrie Nelson, Recording Secretary Chair Noah Schuchman \\Files\goldval$\Joint Water Commission\JWC Agendas\2024 JWC Agenda\11 - November\03- 11-6-24- Memo for JWC Financial Update.docx Joint Water Commission November 6, 2024 AGENDA ITEM #3 Agenda Item #3 3. Receive and File a Presentation on JWC Finances Prepared by Lyle Hodges, Golden Valley Finance Director Summary The JWC Financial Update are attached to this memo. The presentation explains the basics of the financial structure of the JWC, how members are billed and reimbursed for costs depending on whether the cost is operational or capital in nature, and concludes with a summary of financial activity through August 30, 2024 for the General and Capital Projects Fund. Attachments JWC Financial Update Recommended Action Receive and file a presentation on the JWC financial update. JOINT WATER COMMISSION FINANCIAL UPDATE November 6, 2024 JWC FINANCIAL UPDATE AGENDA •JWC Financial Structure •Budget and CIP Process •Overview of Finance & Accounting Process •General Fund (Operating Activities) •Capital Projects •Quarter 3 Financial Statement 2 JWC FINANCIAL STRUCTURE General Fund – Primary operating funds, accounting for all financial resources of the organization except those required to be account for as capital projects. •Pay Minneapolis for Water, Xcel for Energy, Audit, Admin, cell rental lease revenue, investment earnings, maintenance costs Capital Projects Fund – Accounts for capital activity related to water infrastructure in member cities. •Collect contributions from members, reimburse members for capital expenditures 3 BUDGET AND CIP PROCESS Annually, the JWC approves both a General Fund budget and CIP budget. •The General Fund budget lays out the expected costs of providing water and administrative services to the member cities. •The CIP budget includes the projected cost of all capital projects for the next year. 4 FINANCE & ACCOUNTING PROCESS General Fund •The JWC pays monthly bills to Minneapolis for water, Xcel for energy and other administrative costs. •Member cities are billed for these services in the next billing cycle making revenue offset the expenditures, netting to $0 •General fund typically breaks even or has a moderate gain if investment earnings are positive 5 FINANCE & ACCOUNTING PROCESS Capital Projects Fund •The JWC bills member cities in beginning of the year for the budgeted CIP proportionate share •Member cities incur costs and pay their respective contractors for projects throughout the year •Members submit those invoices to the JWC for reimbursement from the Capital Projects funds as incurred and the JWC pays the members back •Any capital funds not spent at year end (members essentially pre-pay) build the fund balance of the capital project fund for future use. 6 FINANCE & ACCOUNTING PROCESS 7 2023 Operating Statement – General and Capital Projects Funds AUGUST 30, 2024, FINANCIAL STATEMENTS GENERAL FUND 8 2024 Budget 2024 YTD Actual Remaining Budget Revenue Charges for Services 8,986,703$ 5,477,746$ 3,508,957$ Investment Income - - - Rental Income - 72,202 (72,202) Total Revenue 8,986,703 5,549,948 3,436,755 Expenditures Water Purchased 8,395,353 5,148,391 3,246,962 Insurance 79,000 115,888 (36,888) Maintenance 120,000 77,567 42,433 Utilities 257,350 109,523 147,827 Admin Services 135,000 26,378 108,622 Rent remitted to members - 72,202 (72,202) Total Expenses 8,986,703 5,549,948 3,436,755 Change in Fund Balance -$ (0)$ Joint Water Commission - General Fund Operating Statement Through August 30, 2024 AUGUST 30, 2024, FINANCIAL STATEMENTS CAPITAL PROJECTS FUND 9 2024 Budget 2024 YTD Actual Remaining Budget Revenue Construction Charges 2,209,455 2,209,455 - Total Revenue 2,209,455 2,209,455 - Expenditures Capital Outlay 2,209,455 746,457 1,462,998 Total Expenses 2,209,455 746,457 1,462,998 Change in Fund Balance -$ 1,462,998$ Joint Water Commission - Capital Projects Fund Operating Statement Through August 30, 2024