1998 12 16 BAWA Minutes, Special MeetingMINUTES OF THE SPECIAL MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
December 16, 1998
The Board of Directors of the Baytown Area Water Authority, Harris County,
Texas, met in special session on Wednesday, December 16, 1998, at 7425 Thompson
Road, in the BAWA Conference Room with the following in attendance:
Robert L. Gillette, President
Knox Beavers, Board Member
Dan Mundinger, Vice President
Absent: *Roy L. Fuller, Board Member
Peter R. Buenz, Secretary
The meeting opened with a quorum present, and the following business was
conducted.
Consider Acceptance of BA WA Financial Statements and Supplemental Information for
the Fiscal Years Ended September 30, 1998 and 1997.
Monte Mercer, Assistant City Manager/Finance Director, noted that BAWA
experienced better than projected water sales for a net increase in income of $174,000.
The demand experienced in the last two years has exceeded the authority's
expectations; therefore, plans are underway to increase plant capacity by
approximately 4 mgd and enhance the reliability of the system.
*Roy Fuller present.
Capital needs are projected at an additional $12.25 million in revenue bonds to
be issued over the next three years.
Due to the short duration of the existing debt, plans were put in place to use
reserves established for debt service to supplement current funding of approximately
$1.5 million for the debt service payment. Interest only payments are to be made on
the $1.35 million bond issue sold in December 1997, until existing debt is paid off. The
short duration of the current debt gives the authority some flexibility but the size of the
debt to expand the plant may require a rate increase to maintain a stable capital base.
981216-2
Minutes of the BAWA Meeting — December 16, 1998
Working capital is $1.1 million (84 days) as of September 1998, based on the
budgeted expenditures for fiscal year 1999.
Mark Tiller, Tiller and Company, noted that it is the responsibility of Mr. Mercer
and his staff to prepare the financial statements. Tiller and Company have the
responsibility to express an opinion of those financial statements based on their audits.
Tiller & Company issued an unqualified opinion that the financial statements present
fairly, in all material respects, the financial position of BAWA as of September 30, 1998
and 1997, and the results of its operations and its cash flow for the years then ended in
conformity with generally accepted accounting principles.
Mr. Mercer recognized Shelly Hart for her work in producing the financial
statements. Mr. Thomas recognized the staff of BAWA for making it all work.
Herb Thomas, Plant Manager, noted that he and Fred Pack, Utilities Director for
the City of Baytown, would leave Friday to visit two plants in the eastern United States
to view new technology in operation. Plans are still on track to begin construction in
2000.
Board Member Beavers moved to accept the Financial Statements and
Supplemental Information for the Fiscal Years ended September 30, 1998 and 1997.
Board Member Fuller seconded the motion. The vote follows:
Ayes:
Nays:
Adjourn
Board Members Beavers, Buenz, Fuller, and Gillette
None
There being no further business to be transacted, the meeting was adjourned.
,
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Robert L. Gillette
President