2026-10-27 - Oklahoma City Water Utilities Trust

02:02Mhm.

04:05>> Mhm.

04:21>> Good afternoon. Let's call the October

04:2327th, 2026 Oklahoma City Water Utilities

04:27Trust meeting to order. That'll be my

04:29first act is to call it to order and my

04:32second act will be to approve the

04:34minutes of October 13th, 2026. Could I

04:37get a motion on that? Are there any

04:39changes to the minutes?

04:41We've got a motion and a second. All

04:43those in favor vote yes.

04:50It passes. On the consent docket today,

04:52we have

04:54We okay?

04:55>> No, we're good.

04:56>> Okay. On the consent docket today, we

04:58have 16 different items. Several are

05:01plans and specs to be bid.

05:03Several engineering service contracts,

05:06some addendums to sanitary sewer work,

05:10and work at Draper, Hefner, and Deer

05:12Creek.

05:14Does anybody have any questions about

05:15the 16 items, or do we need to have any

05:18individual consideration for the 16

05:20items, please?

05:22If not, I'll entertain a motion.

05:28Motion second, please cast your vote.

05:31We now find ourselves it passed. We now

05:34find ourselves at the concurrence

05:36docket,

05:37item number four. There are two items on

05:40the concurrence docket today. I think we

05:42can take that with one motion, unless

05:44anybody has any questions.

05:47Got a motion.

05:51And a second, maybe?

06:03It passes.

06:04We now find ourselves with one emergency

06:07construction contract to be ratified.

06:10This will take four affirmative votes.

06:12Am I right on that? And um it is a

06:15resolution ratifying the actions of the

06:17general manager in declaring an

06:18emergency, approving the bidding

06:20documents, and awarding a contract to

06:22Urban Contractors for emergency sewer

06:26siphon cleaning.

06:28Do we need any discussion on that or

06:30could I have a motion, please?

06:36We've got a motion. We have a second.

06:38Cast your votes.

06:43We have the necessary four votes.

06:45We now find ourselves at items for

06:48individual consideration. There's one

06:50item on the agenda agenda, and that's

06:52our annual financial report uh for the

06:56fiscal year ended June 30, 2025.

06:59>> Yes, Mr. Chairman. We have Ms. Angela

07:01Pierce here from the City Finance

07:02Department to talk to us about that. We

07:04haven't seen you in a week.

07:05>> I know. I know. Long time.

07:08Well, thank you for having me back this

07:09afternoon. Um I'm here today to talk

07:11about the 2025 um financial reports, and

07:15I want to let you know that we met with

07:17um our external auditors as well as our

07:19internal auditors at the end of

07:20September to go over this information.

07:23And I think the the main highlight for

07:25you today is that this is a clean audit

07:27opinion, which means it's an unmodified

07:29opinion, meaning that the financial

07:31statements can be relied upon um by

07:34policy and decision-makers.

07:36Um

07:38we do have two audit findings. Those

07:40start on page 62.

07:42So, um the first one is an overarching

07:46ERP implementation audit finding. It's

07:49our second year receiving this finding,

07:51but I do want to make sure that you

07:53realize this was a reduction of an audit

07:56finding. So, it went from a more severe

07:58category to a less severe category. And

08:00so, we're proud of that progress. The

08:02primary reason that is still an audit

08:05finding is that um

08:08really the timeliness of getting you

08:10this information and so we're working

08:11hard to rectify that and get back on

08:15track with FY26.

08:17Your staff here today and and a lot of

08:19them back at back at the office have

08:20been really helpful in helping us meet

08:22those deadlines. So want to give a kudos

08:24to them as well. The second finding that

08:27we have is related to our void tracking

08:30system when we coupled our ERP with our

08:33cashiering system and so we're working

08:36with IT right now to rectify that and

08:38that should not be a reoccurring audit

08:40finding that you'll have either.

08:42We've stayed in close contact with our

08:45rating agencies. They're pleased with

08:47the progress. There are no concerns

08:49noted on that front and as I said we're

08:51working hard to get back on track. So

08:53hopefully I'll be back very shortly to

08:54have this conversation with FY26

08:56information.

08:57>> Great.

08:59Any questions anybody?

09:01Thank you for the report. Do we need a

09:03motion?

09:05Okay.

09:06>> We've got Vanessa Aguilar.

09:07>> Oh, I'm so sorry.

09:08>> No, you're you're you're absolutely

09:09good. No, we we did have an additional

09:12slide that we wanted to share with you.

09:14Vanessa Aguilar with the utilities

09:15department and this is just to give you

09:17a little bit more of a highlight

09:20for the Oklahoma City Water Utilities

09:22Trust some of the financial summary. And

09:24so overall for our net position for

09:27fiscal year 2025 ending June 30th, we're

09:30seeing OCWUT's net position at about 1.8

09:33billion. This is a slight increase from

09:36fiscal year 2024 from 1.63 billion. This

09:40is primarily attributed to OCWUT's

09:43commitment and investment in its capital

09:45program due to the continued

09:47construction and purchase of capital

09:49assets. We also have a highlight for you

09:52of our net investments in capital

09:54assets. You can see that shown here for

09:57fiscal year ending June 30, 2025. That's

10:00about 1.14 billion compared to fiscal

10:03year 24 ending June 30th of slightly

10:07above 1 billion dollars.

10:09In reference for the financial report

10:11that you did receive a hard copy of the

10:13management's discussion and analysis

10:15starts on page nine and then the

10:17financial statements are available for

10:19you on page 19. And that overall aqua

10:22for fiscal year 25, we did meet and

10:25exceed all of our financial policies and

10:28goals. That includes debt coverage

10:30exceeding two times, working capital

10:32days exceeding 800 days.

10:36And happy to answer any additional

10:37questions.

10:38>> Any questions?

10:40Do I need a motion to receive the

10:41report?

10:49We have a motion. We have a second.

10:51Please cast your votes.

11:00It passes.

11:01Are there any items

11:04from

11:06any of the trustees today?

11:08I I do want to point out one thing. I

11:10got a I text yesterday from one of my

11:13constituents. His name is Mr. Williams

11:16and I wanted everybody to hear this. He

11:17said, "I had a water problem and the

11:19customer service people were outstanding

11:22and very helpful and nice. I recommend a

11:25raise for them. Uh they are uh they are

11:27all outstanding at the water department.

11:29Thank you." So, that's good news to get

11:32that once in a while.

11:33>> I've also got one thing.

11:34Um last week I um

11:38at my office, right before right in

11:39front of my office, there was a huge

11:41water main break in in the city of

11:43Bethany, actually. And the city of where

11:46of Oklahoma City showed up to help out.

11:48Uh so, this was just across the street.

11:50These guys were sitting here. This is

11:5110:00 at night.

11:52>> Ouch.

11:53>> And they were still working getting

11:55things done. As you can see, they are

11:56covered from head to toe.

11:58Um

11:58disregard the bottle of water in my

12:00hand. But, other than that,

12:03I wanted to just to say thank you to to

12:05our water guys, everybody who's out

12:07there working at apparently all hours of

12:09night. Um we walked over, gave them a

12:11cup of coffee, tried to tell them thank

12:13you and that I mean they just turned

12:14around went right back to work. So, even

12:16when it's not our own citizens in our

12:18city, we're we're stepping up to help

12:20out and I just wanted to just make sure

12:21we gave a shout out to your team and

12:22thank you guys so much for what you do.

12:24>> I think we need to do that once in a

12:25while.

12:26All right, I'm going to turn it over to

12:28the general manager for the general

12:30manager's report today.

12:31>> Thank you, Mr. Chairman. In your packet

12:33is the monthly pro forma for September.

12:36All the revenues and expenses are on

12:38target so far through the year.

12:41Uh quick lake level report. So, Hefner

12:43is currently sitting about 3/10 below

12:46full pool.

12:47Um for perspective, uh last month it was

12:499 ft below full pool. So, it's

12:51recovering nicely.

12:53Um the rain definitely helped us out

12:54with that.

12:55>> Uh Draper's just below 6 ft below.

12:58Overholser, which while we don't use it

13:00for uh water source any longer,

13:01Overholser's actually full as well. The

13:04The rain that came down a few weeks ago,

13:05we ended up storing that in Overholser,

13:07so it's full

13:08as well.

13:08>> Great.

13:09>> Uh Canton is just below 5 ft below full

13:11pool. Uh Atoka is about the same, just

13:13below 5. And then McGee Creek is 6 ft

13:16below full pool. But

13:17the southeast lakes fill up relatively

13:18quickly, so we're not too worried about

13:20those numbers down there.

13:22>> Yeah.

13:23And then on another note, as you may

13:24have seen over the last few days, um

13:27we did hear back from both S&P and

13:29Moody's on our credit rating. And both

13:32agencies have reaffirmed Aqua's AAA

13:34rating.

13:35>> Outstanding.

13:35>> So, definitely a good thing there. Um

13:38keep in mind that that AAA rating really

13:39is one of It signifies us as being one

13:41of the most financially stable utilities

13:43across the country. Um it allows us to

13:46to secure lower interest rates, to be

13:48able to execute our capital plan. But I

13:50think the the part that I liked about it

13:52is some of the words that they used, the

13:53contributing factors that each agency

13:54used. They talked about the strength of

13:56our sophisticated long-range management

13:58policies.

13:59Right? They talked about the broad and

14:00diverse service area. Um you know, we

14:02don't have one or two industries that

14:04determine how much water we're going to

14:05sell or how financially stable we are.

14:07Um the long-standing history of uh

14:09strong financial results. And then the

14:11capital investments in water supply and

14:12water resiliency to get secure water

14:15through 2060. So, those were some of the

14:16strengths that they pointed out in it.

14:19Definitely want to give a huge thanks to

14:20Vanessa and her team.

14:23You know, the the countless hours and

14:24the long nights and the weekends that

14:26goes into that. I don't think very many

14:28people understand what goes into that

14:29and the short timelines. And we also

14:31couldn't have done it without the city

14:32finance department. So, thank you to

14:34Angela and her team as well cuz it's

14:36it's definitely a group effort. Anybody

14:38who's been through that knows the last

14:39few months are hot and heavy on short

14:40timelines and a lot of data. So,

14:42congratulations everyone and thank you

14:44all and your teams for getting us

14:45through that.

14:46>> Thank you for the report. Are there any

14:49citizens to be heard today?

14:51There being none, we are adjourned.

14:54Thanks for coming everybody.

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