Finance Committee Meeting Minutes – Wednesday, March 16, 2022
For your consideration, please read the minutes from the Finance Committee Meeting held on Wednesday, March 16, 2022 at 3:00 p.m. in the Commission Meeting Room.
Finance Mtg Minutes 3-16-22 with Attachments
To read the minutes, please open or download the pdf from the link above, or you may see more below.
Brunswick-Glynn Joint Water & Sewer Commission
1703 Gloucester Street, Brunswick, GA 31520
Commission Meeting Room
Wednesday, March 16, 2022 at 3:00 PM
FINANCE COMMITTEE MINUTES
Bob Duncan, Committee Chairman
Charles Cook, Commissioner
Tripp Stephens, Commissioner
Andrew Burroughs, Executive Director
Ben Turnipseed, Commission Chairman
Frances Wilson, Accounting Manager
Charlie Dorminy, Legal Counsel
Janice Meridith, Executive Commission Administrator
Committee Chairman Duncan called the meeting to order at 3:00 PM.
PUBLIC COMMENT PERIOD
Chairman Duncan opened the Public Comment Period.
There being no citizens that wished to address the Committee, Committee Chairman Duncan closed the Public Comment Period.
- Liability and Property Insurance Renewal – Fred McGinty, McGinty Gordon Associates
Mr. Fred McGinty with McGinty Gordon Associates presented the liability and property insurance annual renewal to the Finance Committee for their consideration. He recalled for the committee that JWSC was successful in avoiding increases in the previous year’s renewal, and then provided that the current market is not good due to weather, other damages, fires, etc. A review of the insured values, policy coverages, deductibles and claims processed was conducted to make any changes that would be advantageous from either a risk or cost perspective for each category coverage. McGinty Gordon & Associates conducted the proposal process and received premium quotes for all coverage categories. After successful negotiations, the current insurers offered the best rates so no changes in insurers for the different coverages will be needed. The increases in each of the coverages (Liability Package, Crime, Cyber Liability, Property, and Equipment Floater) averaged an overall increase of 14.8% from last year’s premiums. Mr. McGinty suggested to the committee that JWSC consider obtaining a new replacement cost estimate either from CBIZ, used by JWSC in 2015, or another company for future negotiations on property and liability insurance coverages.
Commissioner Cook made a motion seconded by Commissioner Stephens to move that the Finance Committee recommend that the full Commission approve insurance renewal rates for each coverage category and insurer as listed in the attached memo provided by staff. Motion carried 3-0-0.
- Minutes from the March 16, 2022 Finance Committee Meeting
Commissioner Cook made a motion seconded by Commissioner Stephens to approve the minutes from the March 16, 2022 Finance Committee Meeting. Motion carried 2-0-1. (Commissioner Stephens abstained due to his absence from that meeting.)
- Declaration of WPD-100 as Surplus Vehicle – A. Burroughs
Mr. Burroughs presented the request by staff to declare WPD-100 as a surplus vehicle. This 2005 Ford Explorer has transmission issues and approximately 160,000 miles on it. A replacement fleet vehicle was purchased and is now in service as per the FY2022 budget. The surplused 2005 Ford Explorer will be placed for sale on GovDeals.
Commissioner Stephens made a motion seconded by Commissioner Cook to move that the Finance Committee recommend that the Brunswick-Glynn Joint Water and Sewer Commission approve the above listed item as surplus to be disposed of in a manner most beneficial to the JWSC. Motion carried 3-0-0.
- Appointment of Auditor for FY2022 Audit – A. Burroughs
Mr. Burroughs provided to the committee that the JWSC issued a request for proposal for Auditing Services and the firm of Mauldin & Jenkins was selected for the initial year ended June 30, 2021 with two option years. The fiscal year ending June 30, 2023 is the final option year. The quoted cost for each of these three years is $19,900.00 per year.
Commissioner Stephens made a motion seconded by Commissioner Cook to move that the Finance Committee recommend to the full Commission that JWSC engage the accounting firm of Mauldin & Jenkins to perform the financial audit of the Brunswick-Glynn Joint Water and Sewer Commission for the fiscal year ending June 30, 2022 at a cost of nineteen thousand nine hundred ($19,900.00) dollars. Motion carried 3-0-0.
- Capital Improvement Fee – Connection Assistance Policy – A. Burroughs
Mr. Burroughs presented staff’s recommendation to approve a Connection Assistance Policy to the committee. He explained that the purpose of this policy is to assist potential customers with affordability of connecting to the public water and/ or sewer systems. This assistance would be available to residents and businesses with existing structures that have failing private wells and/or septic systems. Mr. Burroughs noted that JWSC would like to allow these existing homes and businesses to connect to the system without placing a cash outlay that would be burdensome to the customer base. The JWSC would allow customers to pay monthly installments towards the total cost of the Capital Improvement Fee and operational fees associated with new accounts. Financing charges increase as the years financed increases to offset increased administrative costs associated with maintaining these agreements. If approved, this Connection Assistance Policy would ideally become part of the annual Rate Resolution and reviewed annually for current market conditions. While financing through JWSC, a lien is also placed on the property, and the monthly payments are included in the water and sewer bill. The customer does still have to pay a contractor to run lines to the home/building, pay the required new account deposit, and pay any other associated fees. The committee discussed various concerns such as limiting the terms of the loans, interest rates, researching other options, and the full impact on JWSC. The committee decided to defer this item until the April 2022 meeting.
Commissioner Duncan made a motion seconded by Commissioner Stephens to defer this item until the April meeting. Motion carried 3-0-0.
- Presentation – DRAFT of Fiscal Year 2023 Annual Budget – A. Burroughs
Mr. Burroughs gave a thorough presentation on the Proposed Fiscal Year 2023 Annual Budget. He provided visuals on the monitors as well as the detailed draft of the budgeted revenues and expenses for each line item within each division. It was noted that this balanced budget supports the goals of the Commission and maintains customer affordability. Mr. Burroughs added that the proposed budget is an increase in expenses from the previous year which is mainly due to increased material costs across the board. As a result, this year’s proposed annual budget will include a water usage rate adjustment to be presented at the April meeting based upon feedback from this presentation. The current plan is to only increase the usage rates on the blocks of usage above 6,000 gallons per month. Mr. Burroughs highlighted the budget process, and then provided that the Budget Team worked diligently in preparation of this proposed budget that will further the five key strategic areas identified in the 2019 Strategic Business Plan. Those five areas are:
- Environmental Compliance
- Responsible Decision Making
- Being a Community Resource
- Workforce Development
- Customer Service
2. Financial Statement Month End February 28, 2022 – F. Wilson
Mrs. Wilson presented the financial statement for the month ending February 28, 2022. She reviewed the Balance Sheet with the Committee noting that this is a strong balance sheet. She briefly explained the Prepaid Expense, Fixed Assets, and Unearned Revenue accounts. She also highlighted details on the Summary of Revenues and Summary of Expenses. Mrs. Wilson also briefly reviewed line items on the Cash Balances and the Project Report, as well as providing an update on Investments.
Committee Chairman Duncan asked if there were any other items to discuss.
There being no further business, Chairman Duncan adjourned the meeting at 4:31p.m.