Great Lakes Water Audit Commiittee Meeting Ag e nda F ...

1. C

2. R

3. A

4. A

5. P

6. O

7. N

ALL TO ORD

OLL CALL

APPROVAL O

APPROVAL O

A. Janua

UBLIC PART

OLD BUSINES

A. Water

Prese

Propo

B. Financ

Prese

Monic

Bart F

NEW BUSINE

A. Propo

Prese

Propo

Autho

Intent

excee

B. Propo

Prese

Propo

Autho

Intent

to exc

2016

DER

F AGENDA

F MINUTES

ry 15, 2016

ICIPATION

SS

r and Sewer

nter: Dan H

osed Action:

cial Planning

nter: Nicole

ca Daniels, C

Foster, The F

SS

osed Water B

nter: Jon Wh

osed Action:

ority Board a

t to issue wa

d $300,000,

osed Sewer B

nter: Jon Wh

osed Action:

ority Board a

t to issue sew

ceed $125,00

F

5th Fl735 R

A

Refunding &

artman and

Receive an

g Update: Bu

ette N. Bates

Capital Mana

Foster Group

Bond Notice

heatley, Pub

The Audit C

approves the

ater supply s

000 as prese

Bond Notice

heatley, Pub

Audit Comm

approves the

wage dispos

00,000 as pr

Great LaAu

Me

Friday, Feb

loor Board Randolph St

G

AGENDA

& New Mone

Kari Blanch

d file Report

udget, Capita

son, CPA, Ch

ager, John W

p, LLC

of Intent Re

blic Finance M

Committee r

e resolution

system reven

ented at its

of Intent Re

blic Finance M

mittee recom

e resolution

sal system re

resented at i

akes Waterudit Commi

eeting Age

bruary 5, 20

Room, Wattreet, DetroGLWater.or

ey Timeline

ett, PFM; Jo

t

al, & System

hief Financia

Wheatley, Pu

esolution

Manager

recommends

authorizing

nue bonds in

Regular Mee

esolution

Manager

mmends tha

authorizing

evenue bond

its Regular M

r Authority ittee

enda

016 at 8:00

ter Board Boit, Michiganrg

& Task List f

on Wheatley

m of Revenue

l Officer/Tre

ublic Finance

s that the G

publication

n a principal

eting on Feb

at the Great

publication

ds in a princi

Meeting on F

0 a.m.

Building n 48226

for 2016

, Public Man

es/Charges

easurer,

e Manager, a

reat Lakes W

of Notice of

amount not

bruary 10, 20

Lakes Wate

of Notice of

ipal amount

February 10,

nager

and

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f

t to

016

r

f

not

,

()

(Page 4)

(Page 8)

(Page 21)

(Page 26)

8. REPORTS

A. DWSD Retail System Revenue and Collections Verbal Update

Presenter: Marcus Hudson, CPA, Chief Financial Officer, DWSD

B. December 2015 Wholesale Water Revenue Report – Variance Analysis

Presenter: Jon Wheatley, Public Finance Manager

Proposed Action: Receive and file the report

C. ERP and HRIS/Payroll Implementation Verbal Update

– Dan Rainey, DWSD IT Director and Mike Huber, GLWA Finance Director

D. Chief Financial Officer Verbal Update

‐ Nicolette N. Bateson, CPA, Chief Financial Officer/Treasurer

9. INFORMATION

A. Billing Status Report – City of Flint

B. Billing Status Report – City of Highland Park

C. Transition Budget ‐ Competitive Grant Assistance Program

10. LOOK AHEAD

Next Meeting: Friday March 4, 2016 at 8 am

11. OTHER MATTERS

12. ADJOURNMENT

(Page 30)

(Page 33)(Page 34)

(Page 35)

AGENDA ITEM #4A

Date: Fe

To: G

From: Jo

Re: R

Backgrou

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Analysis:

with draf

conclude

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ebruary 5, 2

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January 15,

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ance Manag

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file report.

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Page 4

AGENDA ITEM #6A

Great Lakes Water AuthorityWater and Sewer Systems Revenue [and] Refunding Bonds, Series 2016

DRAFT Financing Critical Path

February March April May June JulyS M T W Th F S S M T W Th F S S M T W Th F S S M T W Th F S S M T W Th F S S M T W Th F S

1 2 3 4 5 6 1 2 3 4 5 1 2 1 2 3 4 5 6 7 1 2 3 4 1 2

7 8 9 10 11 12 13 6 7 8 9 10 11 12 3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11 3 4 5 6 7 8 9

14 15 16 17 18 19 20 13 14 15 16 17 18 19 10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18 10 11 12 13 14 15 16

21 22 23 24 25 26 27 20 21 22 23 24 25 26 17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25 17 18 19 20 21 22 23

28 29 27 28 29 30 31 24 25 26 27 28 29 30 29 30 31 26 27 28 29 30 24 25 26 27 28 29 30

31

FebruaryS M T W Th F S

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29

MarchS M T W Th F S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30 31

AprilS M T W Th F S

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

MayS M T W Th F S1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

JuneS M T W Th F S

1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30

JulyS M T W Th F S

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

31

As of 2/1/2016

DateResponsible

Parties

Week of February 8Distribute draft of Underwriter RFP to GLWA FA

Week of February 15February 16, 2015 President's Day Holiday - Bond Market Closed -

Week of February 22Underwriter RFP distributed GLWA

Week of February 29March 4, 2016 Audit Committee Meeting (informational only) -

Week of March 7March 11, 2016 Underwriter proposals due -

Week of March 14Review and tabulate underwriting proposals FASelect underwriters to be interviewed, if applicable GLWADistribute first draft of Supplemental Ordinances and Resolution BC

Week of March 21Underwriter interviews GLWA, FASelect underwriting team and appoint underwriter's counsel GLWA

March 23, 2016 GLWA Board Meeting (informational only) -March 25, 2016 Good Friday - Bond Market Closed -

Week of March 28April 1, 2016 Audit Committee Meeting to review Supplemental Ordinances and Resolution -

Begin preparing draft POS UC

Week of April 4Prepare draft POS UCKick-off meeting/conference call with financing team AllDetermination made on issuing debt by GLWA or Michigan Finance Authority* All

Event

Page 5

As of 2/1/2016Page 2 of 3

DateResponsible

PartiesEvent

Week of April 11Prepare draft POS UCSubmit GLWA Board Package and Resolution GLWA, BC

Week of April 18Distribute first draft of POS UC

Week of April 25Working group call to review first draft POS (professional team) BC, FA, UW, UC

April 27, 2016 GLWA Board Meeting - Adopt Resolution / Approve Supplemental Ordinances GLWAApril 29, 2016 File long form application package with Michigan Department of Treasury GLWA, FA

Prepare draft Rating Agency Presentation FA

Week of May 2Prepare draft Rating Agency Presentation FADistribute first draft of Escrow Agreements BCPublish Supplemental Ordinances in Local Paper BC, GLWA

Week of May 9Distribute second draft of POS UCDistribute first draft of Rating Agency Presentation FADistribute first draft of Bond Purchase Agreement UC

Week of May 16Call to review second draft of POS AllCall to review first draft of Rating Agency Presentation GLWA, FA, UWDistribute second draft of Rating Agency Presentation FA

Week of May 23

Distribute third draft of POS UCDistribute second draft of Bond Purchase Agreements UCDistribute second draft of Escrow Agreements BCSchedule rating meetings FA

Week of May 30May 30, 2016 Memorial Day Holiday - Bond Market Closed -

June 3, 2016 Receive approval from Michigan Department of Treasury -Finalize Rating Agency Presentation FAProvide materials to ratings analysts FADistribute first draft of Investor Roadshow UW

Page 6

As of 2/1/2016Page 3 of 3

DateResponsible

PartiesEvent

Week of June 6Rating Agency meetings GLWA, FA, UDistribute second draft of Investor Roadshow UWSelect Printer and Verification Agent FA, GLWA

Week of June 13Finalize Investor Roadshow UWRecord Investor Roadshow GLWA, UW, FA

Week of June 20Receive ratings FA, GLWAPost POS and Investor Roadshow UC

Week of June 27Investor marketing UW

July 1, 2016 First call date for current refunded bonds -

Week of July 4July 4, 2016 Independence Day Holiday - Bond Market Closed -

Investor marketing UW

Week of July 11July 13, 2016 Bond Pricing / Sign Bond Purchase Agreement All

Circulate draft Final Official Statement UC

Week of July 18Publish Final Official Statement UCClosing document preparation All

Week of August 1August 1, 2016 Closing All

Redemption notices provided TT

GLWA Issuer Great Lakes Water AuthorityFA Financial Advisor Public Financial Management, Inc.BC Bond Counsel Dickinson Wright PLLCUW Senior Managing Underwriter [TBD]UC Underwriter's Counsel [TBD]TT Trustee U.S. Bank, N.A.

* If bonds are issued through Michigan Finance Authority, additional steps and parties will need to be added to this timeline.Note: schedule is preliminary and subject to adjustment.

Page 7

Date: Fe

To: G

From: N

Re: F

Backgrou

and FY 20

Analysis:

reviewed

Proposed

ebruary 5, 2

Great Lake W

Nicolette Bat

inancial Plan

und: The FY

017 System

: Attached a

d at the Aud

d Action: R

016

Water Author

eson, CPA, C

nning Updat

Y 2017 & 201

of Revenues

are a numbe

it Committe

Receive and f

rity Audit Co

Chief Financ

e: Budget, C

18 Biennial B

s/Charges fin

er of items re

e meeting.

file report.

Aud

ommittee

ial Officer/T

Capital, & Sys

Budget, FY 20

nancial plan

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Great La

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dit Comm

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stem of Rev

017‐2021 Ca

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ancial plann

akes Wat

nancial Se

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apital Improv

s underway.

ning cycle tha

ter Autho

ervices Gr

mmunica

ges

vement Plan

at will be

ority

roup

tion

n,

Page 8

AGENDA ITEM #6B

The Grea

1. FY

2. FY

3. FY

The oper

2016. Th

Date

Tuesday,

Tuesday,

Wednesd

Thursday,

Friday, Jan

Wednesd

Tuesday, J

Wednesd

Thursday,

Friday, Jan

Friday, Fe

Monday,

Wednesd2016

Wednesd2016

Wednesd

Wednesd

Wednesdor TBD

at Lakes Wat

Y 2017 ‐2018

Y 2017 – 202

Y 2017 Sche

rational effe

he schedule

November 17

November 17

ay, January 1

, January 14,

nuary 15, 201

ay, January 2

January 26, 2

ay, January 2

, January 28,

nuary 29, 201

ebruary 5, 201

February 8, 2

ay, February

ay February 2

ay, March 2,

ay, March 2,

ay, March 2,

FY 2017/18

ter Authority

8 biennial bu

21 Five Year

dule of Reve

ctive date fo

below reflec

Act

7, 2015 Cu

7, 2015 Cu

13, 2016 GLW

2016 CuBu

16 GLWBu

20, 2016 Int

2016 GLWCa

27, 2016 GLWand

2016 Cu

16 Ma(m

16 GLWof

2016 Pucirc

10, GLWRevCa

24, GLW

2016 GLW

2016 GLWand

2016 GLWBuCa

8 Financial P

y (GLWA) FY

udget

Capital Imp

enues and C

or the region

cts planning

tivity

stomer Rollo

stomer Rollo

WA Worksho

stomer Rollodget

WA Audit Codget Request

ernal ‐ Deadl

WA Capital Ppital Improve

WA Board Md Charges and

stomer Rollo

ail Notice to Cinimum 30 da

WA Audit CoRevenues and

blish notice oculation (B)

WA Board Wvenues and Cpital Improve

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WA Board M

WA Board Md Charges (Ac

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Y 2017/18 Fin

provement P

harges

nal system a

for the first

ut Meeting #

ut Meeting #

op ‐ Customer

ut Meeting #

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ut Meeting #4

Customers of ays prior to A

mmittee Meed Charges and

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orkshop ‐ RevCharges, FY 20ement Plan

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Great LaFin

cle (as of 2.3

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t full operati

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r Outreach Pr

3 ‐ Status Rep

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et Request fo

mittee – Presor Review

ent Proposedr FY 2017/18

4 ‐ Proposed

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eting ‐ Reviewd FY 2017/18

g by publicatio

view of Propo017/18 Bienn

view of FY 20

ic Hearing on

ic Hearing onmum 120 days

posed Approvf Revenues an

akes Watnancial Se

3.2016)

ning Cycle in

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ng fiscal yea

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Service

rogram and S

port: FY 2017

Report re: FY

r Cost of Serv

sent Proposed

d FY 2017 SchBiennial Bud

Service Char

ng to be held c Hearing) (D)

w of FY 2017 8 Biennial Bud

on in a newsp

osed FY 2017nial Budget, a

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FY 2017 Sches before effec

val of FY 2017nd Charges, a

ter Authoervices Gr

ncludes:

n January 1,

ar for the GL

Plan

chedule

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Y 2017/18 Bie

vice Analysis

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edule of Reveget Public He

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ennial

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Page 9

(A) thru (D) ‐ The above schedule is designed to meet applicable statutory and contractual

requirements with excerpts shown below.

A. Uniform Budgeting and Accounting Act, Act 2 of 1968, Section 141.434, “Before final

passage of a general appropriations act by the legislative body, a public hearing shall be

held as required by 1963 (2nd Ex Sess) PA 43, MCL 141.411 to 141.415, and the open

meetings act, 1976 PA 267, MCL 15.261 to 15.275.” (For purposes of Public Act 2, the

GLWA Board is the legislative body.)

B. Budget Hearings of Local Governments, Act 43 of 1963 (2nd Ex. Sess.), Section

141.412, “The local unit shall give notice of the hearing by publication in a newspaper of

general circulation within the local unit at least 6 days before the hearing.” (For

purposes of Public Act 2, the GLWA Board is a local unit.)

C. Home Rule City Act, Act 279 of 1909, Section 117.5e, “Municipal water or sewage

system; annual audit; public hearing before proposed rate increase. A municipal water

or sewage system established by a city incorporated under this act which serves more

than 40% of the population of the state shall: ….(b) Hold at least 1 public hearing at least

120 days before a proposed rate increase is scheduled to take effect. Each hearing shall

be conducted in compliance with Act No. 267 of the Public Acts of 1976, being sections

15.261 to 15.275 of the Michigan Compiled Laws. Notice of the time, date, and place of

each hearing shall be given in the manner required by Act No. 267 of the Public Acts of

1976, shall be prominently printed in a daily newspaper of general circulation within the

area, and shall be mailed to each city, village, or township served by the system not less

than 30 days before each hearing. A final vote by the governing body of the city to

implement a proposed rate increase shall not be taken until the hearings provided for in

this subdivision are concluded and the results of those hearings are considered by the

city's governing body.” (Emphasis added)

It should be noted that the Home Rule City Act does not apply to GLWA. It is relevant to

GLWA’s planning cycle, however, as it is referenced in the Wholesale Customer Model

Water Contract as noted below.

D. GLWA Wholesale Customer Model Water Contract Section 7.02 provides: “Notification

of Rates. As soon as possible in the ratemaking process, the Board shall provide

information on proposed rates and the draft data and information used in the

calculation of proposed rates in a format that will enable Customer to assist in the

ratemaking process. Not less than thirty calendar days prior to the hearing required by

Act 279, the Board shall provide Customer with written notice of a proposed rate and

the underlying data used to calculate the rate. The Board shall meet with Customer to

review the rate and the data.” (Emphasis added; Act 279 is the Home Rule City Act

noted above.)

Page 10

T F G

THE FOSTER GROUP P.O. BOX 26282 The Foster Group, LLC Leawood, KS 66225 Bart Foster, President Tel: (913) 345-1410 Cell: (913) 530-6240 Fax: (913) 345-1640 [email protected]

MEMORANDUM

FY 2017 Service Charge Recommendations February 5, 2016 Executive Summary

To: GLWA Audit Committee

From: Bart Foster

The intent of this memorandum is to provide an Executive Summary of the recommended FY 2017 water and sewer service charges for GLWA. The calculation of the proposed service charges for each customer is set forth in detail in our “FY 2017 Cost of Service Study and Service Charge Recommendations” memorandum dated January 26, 2016, which has been previously distributed to the GLWA Board and which was presented to customer representatives last week. Herein we provide additional summary information designed to highlight key points and answer important question that have arisen during the initial review and presentation of our recommendations.

Key Messages:

1. The recommended service charges deliver on the premise of the MOU and the Lease tolimit annual increases in the overall BUDGET to 4% annually. The FY 2017 BUDGETsupported by these recommended service charges reflects a 4% increase compared to theFY 2016 BUDGET approved by the DWSD Board of Water Commissioners last March.• The overall total BUDGET and Financial Plan supported by the proposed service

charges is largely consistent with that contained in the disclosure documentssupporting the DWSD refunding bonds issued in December 2015. Debt servicecoverage ratios and other metrics are quite similar.

• The overall financing plan will continue to be modified as preparations forpotential new money and refunding transactions are considered in the comingmonths.

2. An additional premise in the MOU and the Lease is that service charges “ . . . andpercentage increases for different customers may vary in order to meet their specificrevenue requirements.” This premise is also delivered by the recommended service

Page 11

FY 2017 Service Charge Recommendations February 5, 2016 Executive Summary Page 2

charges, as different customers will experience different impacts as a result of these recommendations. • See discussion below for Water and Sewer specific impact analyses.

3. The proposed service charges support and reflect a “bottom line” approach to the overallFY 2017 BUDGET.• It is our understanding that GLWA management is committed to delivering a final

budget that will live within the bottom line and we believe that the generalallocations supported by the proposed service charges reasonably and accuratelyreflect the final budget.

4. The proposed annual revenue requirement allocable to the Detroit Customer Class ispreliminary, in that charges from GLWA to the Detroit Customer Class will containcertain “indirect” retail service elements.• Some of these elements are subject to specific budget development for the DWSD

Local System, including decisions regarding use of the Lease Payment and relatedmatters.

Impact Analysis & Summary – Water Supply System:

• While the total BUDGET for FY 2017 only reflects a 4% increase from FY 2016, theprojected annual sales volumes for FY 2017 (which reflect the 24 month averagethrough September 2015) are about 0.8% lower than those projected for FY 2016(which reflect the 24 month average through September 2014). Also, projectedmiscellaneous revenues for FY 2017 are projected to be slightly lower than FY 2016.As a result, the overall average “unit cost” inherent within the service charges mustincrease by approximately 4.5% in order to produce a 4% revenue increase andbalance the FY 2017 BUDGET.

o Each customer’s projected sales for FY 2017 vs. FY 2016 dictates how theirproposed service charges are impacted by this element. Customers withincreased sales volumes experience less of an increase (or a decrease) thanthose with reduced sales volumes.

• Seven customers (four of them very large customers) materially reduced theircontractual max day and peak hour demands through scheduled contract reopenersand/or new contracts. As a result, these customers are allocated approximately $6.5million less than they would have been allocated had their contract demands remainedat FY 2016 levels.

Page 12

GREAT LAKES WATER AUTHORITYFY 2017 and 2018

Biennial Budget Development

Page 17

FY 2017 & 2018 Budget Development

• Many Firsts• First year of biennial budgeting

• First year of new GLWA organizational structure

• Foundation for first FY 2016 budget amendment

• Transitional Matters• Validation of bifurcated FY 2016 budget

• Supports design and implementation of shared services billing

• Coordination with ERP and Ceridian rollout• Leaner general ledger structure

• Improved accounting practices

• Operational validation of bifurcated/assigned contracts andpurchase orders

Page 18

Personnel Budget FY 2017 & 2018–Departmental FTE Requests

3

DWSD Original

FY 2016 Budget

Approved March 2015

FTEs = 1,358

“Bifurcated” GLWA

Estimate in May 2015FTEs = 958

Departmental Requests for GLWA Operations

(under review)

FTEs = 951

Departmental Requests forGLWA Shared Services billed to DWSD at 100%

(under review)

FTEs = 54“Bifurcated” DWSDR

Estimate in May 2015

FTEs = 412

FTE = full-time equivalent employee

Page 19

Next Steps

• Budget update to GLWA Board on February 24, 2016

• Public Hearing March 2, 2016

Page 20

Date: Fe

To: G

From: Jo

Re: P

Backgrou

contemp

GLWA Bo

issuance

Drinking

will be us

City of De

DWRF bo

Detroit w

cycle, wit

17 fiscal y

New Mon

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the CIP, t

all the pro

are being

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water sup

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for “disad

qualifies f

ebruary 5, 2

Great Lake W

on Wheatley

roposed Wat

und: As the

plates issuing

oard to issue

is related to

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aining $260 m

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m amount au

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n be payable

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ire GLWA to

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ended, and s

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m the specific

following.

able over a 2

of Detroit, th

ear term and

s. Based on t

ter Autho

ervices Gr

mmunica

ity (GLWA)

l step is for t

oposed bond

thorized amo

ovements to

ogram. The

the City of

cal year fundi

the State’s 2

n the Water

d Extension F

s are identifie

issue bonds

ject cash flow

and can be

new money

old in multip

enue Bonds f

c revenues of

20 year term

he loans qua

d each projec

the combine

ority

roup

tion

the

d

ount

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ing

2016‐

und

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for

ws

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ple

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f the

.

lify

ct

ed

Page 21

AGENDA ITEM #7A

project amounts of $40 million, DWSD could save an estimated $17.5 million in interest costs,

avoided issuance costs and project costs savings based on a similar open market revenue bond with

a 30 year term and 5.00% interest rate, over the life of the bond issues.

New Money Bond Sale: The New Money Bond issue is scheduled to be sold by GLWA before

December 31, 2016 at a term of 30 years. This amount will reduced if DWRF funding is obtained.

The debt service is currently budgeted at an average interest rate of 5.00%, but given current

market conditions, is expected to be lower.

Budget Impact: The first anticipated debt service payments on the DWRF and New Money Bonds

are included in the FY 2017 Budget and thereafter. The combined average annual debt service for

the three DWRF bond issues ($40 million) is estimated to be $1.8 million per year and the average

annual debt service on the estimated $260 million new money bond issue is approximately $16.9

million.

Proposed Action: The Audit Committee recommends that the Great Lakes Water Authority

Board approves the resolution authorizing publication of Notice of Intent to issue water supply

system revenue bonds in a principal amount not to exceed $300,000,000 as presented at its Regular

Meeting on February 10, 2016.

Page 22

Great Lakes Water Authority Resolution 2016-02-__

RE: Authorizing Publication of Notice of Intent to Issue Water Supply System Revenue Bonds

By Board Member: _____________________________________________________________

Whereas The Great Lakes Water Authority (the “Authority”) is authorized to issue revenue bonds pursuant to the provisions of Act 94, Public Acts of Michigan, 1933, as amended (“Act 94”) for the purpose of paying all or part of the costs of purchasing, acquiring, constructing, improving, enlarging, extending and repairing the Water System as defined in the Regional Water Supply System Lease, dated June 12, 2015, between the City of Detroit and the Authority; and

Whereas The Authority intends to issue one or more series of revenue bonds for the purposes hereinafter set forth; and

Whereas Section 33 of Act 94 requires the publication of a notice of intent to issue bonds at least 45 days prior to the issuance of such bonds.

Now, Therefore Be It:

Resolved That the Chief Financial Officer/Treasurer is hereby instructed to cause the publication of a notice of intent to issue bonds with respect to the hereinafter-described bonds once in the Detroit Legal News, so as to be prominently displayed therein, and it is hereby found that such newspaper has general circulation in the territory of the Authority; And Be it Further

Resolved That the notice of intent to issue bonds shall be in substantially the following form with such necessary or desirable changes as may be approved by the Chief Financial Officer/Treasurer, her approval to be conclusively evidenced by the publication of the notice of intent to issue bonds:

Page 23

2

NOTICE OF INTENT TO ISSUE WATER SUPPLY SYSTEM REVENUE BONDS BY THE GREAT LAKES WATER AUTHORITY

TO THE ELECTORS OF THE CHARTER COUNTY OF MACOMB, THE COUNTY OF OAKLAND AND THE CHARTER COUNTY OF WAYNE:

NOTICE IS HEREBY GIVEN, that the Great Lakes Water Authority (the “Authority”), a municipal authority organized and existing under the provisions of Act No. 233, Public Acts of Michigan, 1955, as amended, intends to issue its water supply system revenue bonds in one or more series in the aggregate principal amount of not to exceed $300,000,000 for the purpose of paying all or part of the cost of acquiring and constructing facilities, replacements, extensions, improvements and repairs to the City’s water supply system (the “Water System”), which Water System is described and defined in the Regional Water Supply System Lease dated June 12, 2015, between the City of Detroit (the “City”) and the Authority (the "Lease"). As set forth in the Lease, the Water System consists of (i) the Regional Water System, which is that portion of the Water System that provides water service to wholesale customers thereof and to individual customers within and outside the City (“Retail Water Customers”) that receive water service directly from the hereinafter described Local Water System up to the point of connection to the Local Water System and (ii) the Local Water System, which is that portion of the Water System that provides service directly to Retail Water Customers. Pursuant to the Lease, the City has leased the Regional Water System to the Authority for a period of forty (40) years and the Authority is authorized to issue revenue bonds under Act No. 94, Public Acts of Michigan, 1933, as amended (“Act 94”) for the foregoing purposes.

The bonds of each series will mature in not to exceed forty (40) years after the original issuance date of the respective series of bonds, and will bear interest at rates to be determined upon the sale thereof but in no event to exceed such rates as may be permitted by law.

SOURCE OF PAYMENT OF REVENUE BONDS

The bonds will be issued under and pursuant to the provisions of Act 94 and a resolution or ordinance of the Board of Directors of the Authority and will be payable from the net revenues of the Water System and any improvements, enlargements and extensions thereto, and a statutory lien on said revenues will be established by said resolution or ordinance. The Authority will covenant and agree to fix and maintain, or cause to be fixed and maintained, at all times while any of the bonds shall be outstanding such rates and charges for service furnished by the Water System as shall be sufficient to provide for payment of the necessary expenses of operation, maintenance and administration of the Water System and of the principal of and interest on the bonds when due, and to provide for such other expenditures, accounts and funds for the Water System as are required by the resolution or ordinance authorizing the issuance of bonds.

Page 24

3

RIGHT TO PETITION FOR REFERENDUM

This notice is given, by order of the Board of Directors of the Authority, to and for the benefit of the electors of the Charter County of Macomb, the County of Oakland and the Charter County of Wayne (collectively, the “Authority District”) in order to inform them of their right to petition for a referendum upon the question of the issuance of the aforesaid bonds. The bonds will be issued, without submitting such a question to a vote of the electors, unless within 45 days after the date of publication of this notice, a petition requesting a referendum upon such question, signed by not less than 15,000 of the registered electors residing in the Authority District shall have been filed with the Secretary of the Authority. The address of the Secretary of the Authority is 735 Randolph, Detroit, Michigan 48226. In the event that such a petition is filed, the bonds will not be issued unless and until the issuance thereof shall have been approved by the vote of a majority of the electors of the Authority District qualified to vote and voting thereon at a general or special election.

FURTHER INFORMATION

Further information relative to the issuance of said bonds, the Lease and the subject matter of this notice may be secured at the office of the Chief Financial Officer/Treasurer of the Great Lakes Water Authority, 735 Randolph, Room 1608, Detroit, Michigan 48226.

This notice is given pursuant to the provisions of Section 33 of Act 94.

Nicolette N. Bateson Chief Financial Officer/Treasurer Great Lakes Water Authority

And Be it Further

Resolved That it is hereby determined that the foregoing form of notice of intent to issue bonds and the manner of publication so directed are adequate notice to the electors of the constituent public corporations of the Authority and are well calculated to inform them of the intention of the Authority to issue the revenue bonds, the source of payment therefor, and the right of referendum on the revenue bonds; And Be it Further

Resolved That all resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded.

Adopted by the Great Lakes Water Authority Board on: ________________________________ BLOOMFIELD 63818-5 1583703v1

Page 25

Date: Fe

To: G

From: Jo

Re: P

Backgrou

contemp

GLWA Bo

issuance

Purpose o

of the cos

improvem

disposal s

combinat

revenues

freed up

be mitiga

Descriptio

Junior Lie

system. T

State Rev

Analysis:

the comb

interest c

revenue b

Budget Im

and are in

on the Bo

Proposed

approves

revenue b

Meeting

ebruary 5, 2

Great Lake W

on Wheatley

roposed Sew

und: As the l

plates issuing

oard to issue

is related to

of the Bonds

st of the rect

ments (PC‐79

system. The

tion of existin

s. By obtainin

to address o

ated.

on of the Bo

en Revenue b

The Bonds wi

volving Fund

: The curren

bined project

costs, avoide

bond with a

mpact: The

ncluded in th

onds is appro

d Action: Au

s the resolut

bonds in a pr

on February

016

Water Author

y, Public Fina

wer Bond Not

long‐term fi

g bonds to fu

e a notice of

o the followi

s: The procee

tangular prim

96) and the R

expenditure

ng funds, pro

ng this low co

ther capital p

nds: The Bon

bonds and ar

ill be sold to

(“SRF”) prog

t program in

t amounts of

d issuance co

30 year term

first anticipa

he FY 2017 Bu

oximately $7.

udit Committ

tion authoriz

rincipal amou

10, 2016.

rity Audit Co

ance Manag

tice of Intent

nancial plan

und the cost

intent to iss

ng.

eds of the Bo

mary clarifier

Rouge River O

es related to

oceeds from

ost financing

project need

nds will be iss

re payable so

the Michigan

gram for the

nterest rate is

$125 million

osts and proj

m and 5.00% i

ated debt ser

udget and th

.0 million

tee recomm

zing publicati

unt not to ex

Aud

ommittee

er

t Resolution

for the Gre

t of system i

sues bonds.

nds will be u

rehabilitatio

Outflow disin

these projec

new “regula

g for these pr

ds, and the iss

sued under P

olely from the

n Finance Au

State’s 2015

s 2.50% and

n, GLWA cou

ject costs sav

interest rate

rvice paymen

hereafter. Th

mends that th

on of Notice

xceed $125,0

Great La

Fin

dit Comm

at Lakes Wa

mprovemen

The purpos

used for the p

on project (PC

nfection (PC‐7

cts were plan

r” revenue b

rojects, the o

suance of ad

Public Act 94

e specific rev

uthority in mu

‐16 fiscal yea

is payable ov

ld save an es

vings based o

, over the life

nts on the Bo

he combined

he Great Lak

e of Intent to

000,000 as pr

akes Wat

nancial Se

mittee Com

ater Authorit

nts, an initial

se of the pro

purpose of p

C‐757), aerat

797) to the G

nned to be fin

bonds, and/o

other capital

dditional “reg

4 of 1933, as a

venues of the

ultiple series

ar funding cy

ver a 20 year

stimated $40

on a similar o

e of the bond

onds will be O

average ann

kes Water Au

issue sewag

resented at i

ter Autho

ervices Gr

mmunica

ty (GLWA)

l step is for t

oposed bond

aying all or a

tion system

GLWA’s sewa

nanced by a

or transfers o

funds can be

gular” debt c

amended, as

e sewage dis

s as part of th

ycle.

r term. Base

0 million in

open market

d issues.

October 1, 20

nual debt ser

uthority Boa

ge disposal sy

ts Regular

ority

roup

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d

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posal

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t

016

rvice

ard

ystem

Page 26

AGENDA ITEM #7B

Great Lakes Water Authority Resolution 2016-02-__

RE: Authorizing Publication of Notice of Intent to Issue Sewage Disposal System Revenue Bonds

By Board Member: _____________________________________________________________

Whereas The Great Lakes Water Authority (the “Authority”) is authorized to issue revenue bonds pursuant to the provisions of Act 94, Public Acts of Michigan, 1933, as amended (“Act 94”) for the purpose of paying all or part of the costs of purchasing, acquiring, constructing, improving, enlarging, extending and repairing the Sewer System as defined in the Regional Sewage Disposal System Lease, dated June 12, 2015, between the City of Detroit and the Authority; and

Whereas The Authority intends to issue one or more series of revenue bonds for the purposes hereinafter set forth; and

Whereas Section 33 of Act 94 requires the publication of a notice of intent to issue bonds at least 45 days prior to the issuance of such bonds.

Now, Therefore Be It:

Resolved That the Chief Financial Officer/Treasurer is hereby instructed to cause the publication of a notice of intent to issue bonds with respect to the hereinafter-described bonds once in the Detroit Legal News, so as to be prominently displayed therein, and it is hereby found that such newspaper has general circulation in the territory of the Authority; And Be it Further

Resolved That the notice of intent to issue bonds shall be in substantially the following form with such necessary or desirable changes as may be approved by the Chief Financial Officer/Treasurer, her approval to be conclusively evidenced by the publication of the notice of intent to issue bonds:

Page 27

2

NOTICE OF INTENT TO ISSUE SEWAGE DISPOSAL SYSTEM REVENUE BONDS BY THE GREAT LAKES WATER AUTHORITY

TO THE ELECTORS OF THE CHARTER COUNTY OF MACOMB, THE COUNTY OF OAKLAND AND THE CHARTER COUNTY OF WAYNE:

NOTICE IS HEREBY GIVEN, that the Great Lakes Water Authority (the “Authority”), a municipal authority organized and existing under the provisions of Act No. 233, Public Acts of Michigan, 1955, as amended, intends to issue its sewage disposal system revenue bonds in one or more series in the aggregate principal amount of not to exceed $125,000,000 for the purpose of paying all or part of the cost of acquiring and constructing facilities, replacements, extensions, improvements and repairs to the City’s sewage disposal system (the “Sewer System”), which Sewer System is described and defined in the Regional Sewage Disposal System Lease dated June 12, 2015, between the City of Detroit (the “City”) and the Authority (the "Lease"). As set forth in the Lease, the Sewer System consists of (i) the Regional Sewer System, which is that portion of the Sewer System that provides sewer service to wholesale customers thereof and to individual customers within and outside the City (“Retail Sewer Customers”) that receive sewer service directly from the hereinafter described Local Sewer System up to the point of connection to the Local Sewer System and (ii) the Local Sewer System, which is that portion of the Sewer System that provides service directly to Retail Sewer Customers. Pursuant to the Lease, the City has leased the Regional Sewer System to the Authority for a period of forty (40) years and the Authority is authorized to issue revenue bonds under Act No. 94, Public Acts of Michigan, 1933, as amended (“Act 94”) for the foregoing purposes.

The bonds of each series will mature in not to exceed forty (40) years after the original issuance date of the respective series of bonds, and will bear interest at rates to be determined upon the sale thereof but in no event to exceed such rates as may be permitted by law.

SOURCE OF PAYMENT OF REVENUE BONDS

The bonds will be issued under and pursuant to the provisions of Act 94 and a resolution or ordinance of the Board of Directors of the Authority and will be payable from the net revenues of the Sewer System and any improvements, enlargements and extensions thereto, and a statutory lien on said revenues will be established by said resolution or ordinance. The Authority will covenant and agree to fix and maintain, or cause to be fixed and maintained, at all times while any of the bonds shall be outstanding such rates and charges for service furnished by the Sewer System as shall be sufficient to provide for payment of the necessary expenses of operation, maintenance and administration of the Sewer System and of the principal of and interest on the bonds when due, and to provide for such other expenditures, accounts and funds for the Sewer System as are required by the resolution or ordinance authorizing the issuance of bonds.

Page 28

3

RIGHT TO PETITION FOR REFERENDUM

This notice is given, by order of the Board of Directors of the Authority, to and for the benefit of the electors of the Charter County of Macomb, the County of Oakland and the Charter County of Wayne (collectively, the “Authority District”) in order to inform them of their right to petition for a referendum upon the question of the issuance of the aforesaid bonds. The bonds will be issued, without submitting such a question to a vote of the electors, unless within 45 days after the date of publication of this notice, a petition requesting a referendum upon such question, signed by not less than 15,000 of the registered electors residing in the Authority District shall have been filed with the Secretary of the Authority. The address of the Secretary of the Authority is 735 Randolph, Detroit, Michigan 48226. In the event that such a petition is filed, the bonds will not be issued unless and until the issuance thereof shall have been approved by the vote of a majority of the electors of the Authority District qualified to vote and voting thereon at a general or special election.

FURTHER INFORMATION

Further information relative to the issuance of said bonds, the Lease and the subject matter of this notice may be secured at the office of the Chief Financial Officer/Treasurer of the Great Lakes Water Authority, 735 Randolph, Room 1608, Detroit, Michigan 48226.

This notice is given pursuant to the provisions of Section 33 of Act 94.

Nicolette N. Bateson Chief Financial Officer/Treasurer Great Lakes Water Authority

And Be it Further

Resolved That it is hereby determined that the foregoing form of notice of intent to issue bonds and the manner of publication so directed are adequate notice to the electors of the constituent public corporations of the Authority and are well calculated to inform them of the intention of the Authority to issue the revenue bonds, the source of payment therefor, and the right of referendum on the revenue bonds; And Be it Further

Resolved That all resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded.

Adopted by the Great Lakes Water Authority Board on: ________________________________ BLOOMFIELD 63818-6 1585569v1

Page 29

Date: Fe

To: G

From: Jo

Re: W

Backgrou

the Who

were not

Bonds. P

It should

and not t

As can be

revenues

and billed

Although

Novembe

During th

indicate a

We will c

basis.

Proposed

ebruary 5, 2

Great Lake W

on Wheatley

Wholesale W

und: The att

lesale Custo

t included in

Please note t

be noted th

the following

e seen from

s are relative

d revenue at

h the actual

er and Dece

hese two mo

a lower “bas

continue to u

d Action: Re

016

Water Author

y, Public Fina

Water Revenu

ached table

omer Class. T

the original

these are bil

hat the reven

g month wh

the attache

ely close to t

t 100.6% of

numbers are

mber are no

onths billed

se” usage tre

update the r

eceive and fi

rity Audit Co

ance Manag

ue Report‐ V

s summarize

The reporte

l FY 2016 Bu

lled revenue

nues are sho

en the bills a

d tables, for

the budgete

budget.

e currently a

on‐peak mon

revenue and

end over the

reports and

le.

Aud

ommittee

er

Variance Ana

e the FY 201

d numbers d

udget or the

es and do no

own in the m

are usually s

r the first six

d amounts,

at or above b

nths and do

d volumes ar

e coming mo

present this

Great La

Fin

dit Comm

alysis

16 billed volu

do not includ

projections

ot reflect col

month that t

sent out.

x months of

with billed v

budget, it sh

not include

re well below

onths.

s to the Audi

akes Wat

nancial Se

mittee Com

umes and bil

de the City o

for the 2015

lections of t

he billed flow

FY 2016, bill

volume at 10

hould be not

weather dri

w budget. T

t Committee

ter Autho

ervices Gr

mmunica

lled revenue

of Flint as th

5 Refunding

hose revenu

w was recor

ed volume a

01.4% of bud

ed that

iven usage.

This variance

e on a mont

ority

roup

tion

e to

ey

ues.

rded

and

dget

e may

thly

Page 30

AGENDA ITEM #8B

Unit Unit UnitVolume Revenue Revenue Volume Revenue Revenue Volume Revenue Revenue

Mcf $ $/Mcf Mcf $ $/Mcf Mcf $ $/Mcf

July 1,484,430 28,447,300 19.16 1,484,928 27,991,867 18.85 498 (455,433) (0.31)August 1,445,640 28,221,400 19.52 1,525,278 29,144,269 19.11 79,638 922,869 (0.41)September 1,289,830 26,408,100 20.47 1,406,260 27,637,332 19.65 116,430 1,229,232 (0.82)October 1,130,720 24,931,200 22.05 1,135,048 25,028,541 22.05 4,328 97,341 0.00November 967,010 23,567,400 24.37 935,394 23,304,814 24.91 (31,616) (262,586) 0.54December 1,056,610 24,218,700 22.92 989,529 23,615,719 23.87 (67,081) (602,981) 0.94January 1,088,010 24,533,300 22.55 0 0February 987,500 23,671,400 23.97 0 0March 1,078,400 24,466,400 22.69 0 0April 1,003,740 23,813,600 23.72 0 0May 1,181,850 25,608,700 21.67 0 0June 1,407,110 27,612,400 19.62 0 0

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------Total 14,120,850 305,499,900 $21.63 7,476,437 156,722,542 $20.96 102,197 928,442 (0.67)

Achievement of Budget 7,374,240 155,794,100 $21.13 101.4% 100.6% 99.2%

FY 2014 FY 2015 FY 2016

July 1,521,519 1,518,244 1,484,928August 1,585,885 1,370,517 1,525,278September 1,428,680 1,210,838 1,406,260October 1,176,170 1,055,364 1,135,048November 1,004,254 948,206 935,394December 1,112,028 1,015,487 989,529January 1,177,601 1,049,951 0February 1,055,345 967,612 0March 1,177,133 1,094,692 0April 1,052,739 997,679 0May 1,104,194 1,126,972 0June 1,382,929 1,223,704 0

------------ ------------ ------------Total 14,778,477 13,579,265 7,476,437

YTD Subtotal 7,828,536 7,118,656FY 16 Variance from -4.50% 5.03%

GLWA Suburban Wholesale Billing SummaryWater Supply System - Revenue Analysis

FY 2016 Budget vs. Actual - by Month

Variance

Total Wholesale Customers

Budget Actual

Water Supply System Sales AnalysisHistorical

Water Sales

Page 31

Water Supply System - Volume and RevenueFY 2014 Budget vs. Actual - by Month

GLWA Suburban Wholesale Billing Summary

0

1,500,000

3,000,000

4,500,000

6,000,000

7,500,000

9,000,000

10,500,000

12,000,000

13,500,000

15,000,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Cum

ula

tive

Sal

es (

Mcf

)

Mon

thly

Sal

es (

Mcf

)

Total Wholesale- Volume Mcf

Budget Mcf Actual Mcf Cumulative Actual Mcf Cumulative Budget

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

Cum

ula

tive

Rev

enu

e ($

th

ousa

nd

s)

Mon

thly

Rev

enu

e ($

th

ousa

nd

s)

Total Wholesale- Revenue $

Budget $ Actual $ Cumulative Budget $ Cumulative Actual $

Page 32

Date: Fe

To: G

From: Jo

Re: In

On Octobthe City’sbalance r

I

M

Nov

Dec

Jan

Tot

* P

ebruary 5, 2

Great Lake W

on Wheatley

nformationa

ber 16, 2015s account waremaining as

nvoice

Month

vember

cember

nuary

tal

rorated amo

016

Water Author

y, Public Fina

l Update – C

5, the City ofas establishes of the mos

Usage

C

26,875.0 *

47,576.9

48,067.4

unt. Reading

PR

rity Audit Co

ance Manag

City of Flint B

f Flint (“City”ed with a dest recent bill

Commodity

Charge

$8.93

$8.93

$8.93

g from Octob

CIT

REPAYMENT F

Aud

ommittee

er

Billings

”) re‐joined tposit of $10ing date of J

Fixed Charg

$341,729

$662,100

$662,100

er 16 to Octo

TY OF FLINT

FUND RECON

Great La

Fin

dit Comm

the regional0 million. ThJanuary 27, 2

ge Total In

9.00 $581,

0.00 $1,086,

0.00 $1,091,

$2,760,

ober 31

NCILIATION

akes Wat

nancial Se

mittee Com

l water systehe table belo2016.

nvoice

Pr

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$10

,722.75 $9

,961.72 $8

,341.88 $7

,026.35

ter Autho

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mmunica

em. At that ow identifies

repayment

nd Balance

0,000,000.00

9,418,277.25

8,331,315.53

7,239,973.65

ority

roup

tion

time, s the

Page 33

AGENDA ITEM #9A

Date: Fe

To: G

From: Jo

Re: In

Backgrou

& Sewera

forward t

Environm

term bas

wastewa

intermitt

balance o

approxim

supply se

June 30,

Jun

F

F

Jun

F

F

Jun

F

F

Jun

F

F

Dce

Not

ebruary 5, 2

Great Lake W

on Wheatley

nformationa

und: Highlan

age Departm

to the Great

mental Quali

sis, at which

ater services

tent, partial

of over $28.

mately $1.4 m

ervices. Belo

2012 to Dec

ne 30, 2012

FY 2013 Bill i

FY 2013 Paym

ne 30, 2013

FY 2014 Bill i

FY 2014 Paym

ne 30, 2014

FY 2015 Bill i

FY 2015 Paym

ne 30, 2015

FY 2016 Bill i

FY 2016 Paym

ember 31, 20

te: Water bi

016

Water Author

y, Public Fina

l Update – C

nd Park has b

ment (DWSD

t Lakes Wate

ty (MDEQ) r

time Highla

. Beginning i

payments b

5 million, inc

million for in

ow is a summ

cember 31, 2

Balance

ings

ments

Balance

ings

ments

Balance

ings

ments

Balance

ings (6 mont

ments (6 mo

015 Balance

il l ing began

rity Audit Co

ance Manag

City of Highla

been unable

D). As of Janu

er Authority

requested th

nd Park owe

in 2013, Hig

egan. As of

cluding over

ndustrial was

mary of the b

2015.

$

$

ths)

onths)

e $

in January

Aud

ommittee

er

and Park Bill

e to satisfy a

uary 1, 2016

. In 2012, th

hat DWSD su

ed the Depar

hland Park c

December 3

r $24.0 millio

ste control s

billing and c

Water

‐

485,887

(65,652)

420,235

1,004,357

‐

1,424,592

1,008,032

‐

2,432,625

598,053

‐

3,030,678

2013.

Great La

Fin

dit Comm

lings and Co

mounts due

6, the outsta

he Michigan

upply water

rtment appr

ceased maki

31, 2015, Hig

on for waste

services, and

ollection his

Sewer

10,207$

4,987

(2,206

12,989$

6,980

(1,612

18,357

5,553

(1,444

22,465

2,803

(1,229

24,039$

akes Wat

nancial Se

mittee Com

llections

e to the City

anding receiv

Departmen

to Highland

roximately $

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Page 34

AGENDA ITEM #9B

AGENDA ITEM #9C

Great Lakes Water Authority Audit Committee Report

February 10, 2016

On Friday, February 5, 2016, the Great Lakes Water Authority Audit Committee held its regularly scheduled monthly meeting. Highlights of that meeting include the following:

A proposed timeline was reviewed for a potential refunding for savings and new money financing. The schedule balances completion of FY 2015 and transitional financial reports and selection of an underwriter to achieve a closing in August 2016.

An update for the FY 2017 and 2018 biennial budget was presented. A special Audit Committee meeting has been scheduled for Friday, February 19, 2016 in advance of presentation of the budget to the GLWA Board on Wednesday, February 24, 2016. Given the recent operational effectiveness date of January 1, 2016 and final approval of key lease documents in December 2015, staff is working through a number of new budget considerations, including shared services, organizational restructuring, and staffing changes that add complexities to preparing the initial GLWA budget. That being said, the management team’s presentations have demonstrated a commitment to the 4% revenue requirement cap and optimized staffing.

Proposed FY 2017 Service Charge recommendations were presented. The information presented was consistent with the materials presented to customers at the service charges rollout meetings on January 28, 2016. The service charges are based upon application of the 4% revenue requirement cap noted above. Individual water customer charge adjustments will vary based upon volume adjustments within the overall cost sharing pool, and on changes to certain customer peak demands via the structured contract renegotiation process. A few large customers made changes in their individual systems that resulted in lower demands, and a lower allocation of costs. As a result, other customers were allocated a larger share. The impact of the reallocation on most customers is approximately 2.5%. On January 29, 2016, individual worksheets were mailed to each customer explaining their proposed service charge for FY 2017. Sewer customers also received individual worksheets. The unique element for FY 2017 wholesale sewer charges includes a look-back adjustment for Highland Park bad debt expense phased in over a four year time period. A preliminary revenue requirement for Detroit has been developed. The final proposal is dependent upon development of the Detroit Water & Sewerage Department budget which is currently in process. The GLWA will receive a full report in conjunction with the budget presentation on February 24, 2016.

Presented in the GLWA Board’s action items for February 10, 2016 are two resolutions to publish a Notice of Intent to issue bonds for the water and sewer systems. These resolutions provide for sufficient notice and statutorily required timeline for a right of referendum and do not commit the Board to issue bonds up to a specified dollar amount.

The resolutions are consistent with the five year financial plan and are recommended for approval by the GLWA Board at its meeting on February 10, 2016.

Staff presented a verbal update on the BS&A Phase I financial system implementation. The project continues to be on-time with a launch in March 2016. The team is pleased with the user-friendly interface and new opportunities to streamline operations.

The Audit Committee binder included a number of other informational items and is posted online at: http://www.glwater.org/finances/audit-committee-documents/

A special meeting for the purpose of reviewing the budget development is scheduled for Friday, February 19, 2016 at 8 a.m.

The next regularly scheduled meeting is Friday, March 4, 2016 at 8 a.m.

Great Lakes Water Audit Commiittee Meeting Ag e nda F ...

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Transcript of Great Lakes Water Audit Commiittee Meeting Ag e nda F ...