November 2021 1st Budget Committee Meeting

Minutes

1st Budget Committee Meeting 2022 – November 3, 2021

Minutes

Board approval at January 12, 2022, Regular Board Meeting.

Attendance

Budget Committee:

Board Members: Mike Eyster, Board Chair; Robert Scherer, Board Vice-Chair – excused absence; David Willis; John DeWenter; Mark Molina.

Lay Members: Kris McAlister, Budget Committee Chair; Neal Forrester; Terri Dillon; Kori Rodley; Pat Riggs-Henson; Steve Moe.

Staff: Jeff Nelson; Cynthia Scoble; Sanjeev King; Greg Miller; Nicole Dalke; Cindy Flaherty.

Others: None.

Call to Order

Budget Committee Chair Kris McAlister called the meeting to order at 5:02 p.m. and welcomed everyone to the first Budget Committee meeting to begin deliberations on the proposed 2022 Utility Budget. He then led everyone in the Pledge of Allegiance.

Election of Chair for 2022 Budget Committee

Budget Committee Chair McAlister called for nominations for Chair for the 2022 Budget Committee.

* John DeWenter moved to reappoint Kris McAlister to serve as Chair of the 2022 Budget Committee. Kris McAlister graciously accepted the nomination.

This motion carried unanimously with a Board vote of 4-0; noting that Robert Scherer had a conflict and was unable to participate in the meeting tonight.

Business from the Audience

None.

Reappointment of Budget Committee Members

Jeff Nelson noted there are three members of the Budget Committee with terms that will be expiring December 31, 2021. The following members were contacted: Steve Moe, Terri Dillon, and Neal Forrester. Steve Moe and Terri Dillon expressed an interest to be reappointed for another 3-year term. Neal Forrester respectfully declined.

Jeff Nelson noted that the reappointment of the Budget Committee members is a function of the Board. The Board may consider a motion during the Budget Committee meeting, however only Board member votes will be tallied in the final count for the vote.

* Mike Eyster moved to reappoint Terri Dillon and Steve Moe to a 3-year term that will expire on December 31, 2024. This motion carried unanimously with a Board vote of 4-0.

Chair McAlister thanked Steve Moe and Terri Dillon for their continued service, and thanked Neal Forrester for all of his valuable time of service on the Budget Committee.

McAlister then indicated for Jeff Nelson to begin his review of the proposed utility operating budget for 2022.

Review of Proposed 2022 Utility Budget

Jeff Nelson noted that the Budget Committee members were allowed time for thorough review of the budget materials via binders, Springfield Utility Board Proposed Budget 2022. A complete set of these materials are available on SUB’s website.

Mr. Nelson then began his presentation and shared slides from the Electric and Water Utility Major Capital Improvements and Ten Year Cash Flow Presentation (Exhibit A), which he presented at the 2021 Midyear Budget Committee Update in August. Nelson focused much of his review on the projection of water and electric rate increases and reserves for the next 10 years. The proposed 2022 budget does reflect a 5.00% water rate increase and a 2.00% electric rate increase. He briefly reviewed the Telecom Utility Margin with and without Net Neighborhoods. The proposed budget reflects a 2.50% increase in dark fiber rates.

General Manager Nelson made note that the Board plans to review SUB’s 20 Year Strategic Vision (Exhibit B) in the upcoming year.

He explained that this is one of three potential meetings on the proposed 2022 budget, and the Budget Committee has complete latitude in terms of making a recommendation to the Board to adopt the budget.

Mr. Nelson then reviewed the proposed budget beginning with his Budget Message; Budget Comparative Summaries for the Electric Utility, Water Utility, and Telecom Utility; budget details by division and department, with management staff noting any significant changes; Supplementary Data; and the 2022 Budget Detail Report.

Brief discussion was shared on the importance of growth and expansion of infrastructure and dedicated funding to rebuild infrastructure in downtown Springfield. Jeff Nelson explained that SUB has an interest in exploring this interest and SUB presented to the Springfield City Council in 2012 on this issue. Councilor Moe expressed the importance to have some forward action on this, yet understands there is the need for future discussions and collaboration on this issue. The Board will address further planning at a future meeting.

The Budget Committee then made the following motion.

* Mike Eyster moved to make a recommendation to the Board to adopt the 2022 Utility Budget, as proposed. This motion carried unanimously with a 10-0 vote of the Budget Committee, again noting that Robert Scherer was unable to attend tonight’s meeting.

Chair McAlister thanked everyone for participating in tonight’s deliberations on the proposed budget, and ended the meeting with brief comment from Neal Forrester, and wished him well in his future endeavors.

On behalf of the Board and SUB staff, Jeff Nelson expressed appreciation for the Budget Committee members and all of their individual perspectives and input as committee members and as ratepayers.

Following brief discussion, the consensus of the Committee was to cancel the November 9 Budget Committee meeting, but will plan to hold its second Budget Committee meeting, if needed, on November 16, at 5:00 p.m. to discuss any public comment heard during the November 10 public hearing. Following any discussion at the November 16 meeting, the Budget Committee would have complete latitude to, potentially, modify its recommendation to the Board on the 2022 proposed budget.

Adjournment

Being no other business the meeting was adjourned by consensus at 7:21 p.m.

Mike Eyster, Board Chair

Jeff Nelson, Board Secretary