Dawn M. Louden

The meeting convened to discuss the upcoming audit process for the fiscal year ending Sunday. The presentation covered the audit timeline, which involves preparing work papers in April, turning them over to the auditor in early May, wrapping up the audit in early June, and presenting the results to the Audit Committee in mid-June, followed by a presentation to the full board at the end of June. The engagement team, including partners Thomas Smith and Doug Zimmerman, was introduced. Discussion included the use of third-party service providers, specifically three firms to meet MWB requirements. The scope of work involves delivering financial statements, a Government Auditing Standards Report, a single audit for Federal Awards spending over $750,000, a compliance audit for investments, and agreed-upon procedures for regional waterline capital and operating reserves. The auditor detailed the need to evaluate internal controls and compliance with laws and regulations, noting that management override of control and improper revenue recognition are considered standard potential risks for all audits. The team also outlined nonattest services, including assistance with financial statement preparation and the data collection form for the single audit.

The meeting focused on the selection process for an underwriter to retain services for the issuance of approximately $11 million in bonds related to solid waste management system revenue bonds. The discussion detailed the policy requirements for procuring services, including underwriter and fiscal adviser selection methods such as public competitive sale or public negotiated sale, which requires New York State Comptroller approval. The committee reviewed three responsive proposals from Raymond James, Roosevelt & Cross, and M&T Bank (Montgomery Scott), after one proposal was deemed non-responsive for missing critical documentation. Evaluation criteria included capital history, net capital, book-running experience, specific solid waste management experience, and underwriter spread/cost per thousand dollars. Roosevelt & Cross was recommended due to having the least expensive cost per thousand ($4.41) and a strong history, including superior performance on a previous issue in 2015 where they exceeded projections. The discussion also touched upon the interest rate implications and the required approvals from the full board and various counties involved.

The scheduled meeting included separate sessions for the Governance Committee and the Board of Directors. The Governance Committee agenda focused on approving several key policies via resolution, including the Disposition of Real Property Policy, Investment Policy, and Procurement Policy, and authorizing the Executive Director to implement a Compensation Plan. The Board of Directors meeting agenda covered the Chairperson's and Executive Director's Reports, the Finance Report approving financials for the period ending December 31, 2023, and several resolutions related to Governance and the approval of Fiscal Year 2025 budgets across multiple divisions (Administrative, Engineering, Materials Management, Regional Development). The Board also addressed technical services agreements and various loan actions under Regional Development, including a loan ratification and a moratorium request for the Thompson Park Conservancy Inc. loan related to the zoo's viability. A presentation was given regarding the Mattress Recycling Program Revaluation, with a recommendation to discontinue the program effective March 31, 2024, due to cost and sustainability considerations.

The meeting included discussions and approvals for several resolutions. Key topics involved approving a modification to the travel and miscellaneous expense policy, specifically addressing anticipated travel costs and per diem reimbursement for the first and last days of travel. Several engineering service contracts were approved, including an amendment for a water rate study with the Town of Rutland and a grant administration service agreement with Paul Smith's College for water/wastewater infrastructure projects. New GIS web-based hosting service agreements were established with the Village of Tupper Lake, the Village of Norwood, and the Town of Shatay under a shared services grant. A capital budget amendment was approved for the Materials Management division to reallocate funds from an under-budgeted maintenance shop project to cover unanticipated repairs (road/culvert washout) on the Natural Resource Management project following severe weather events. New capital project authorization was granted for the Telecom division to expand broadband services in Lewis County using grant funding. Resolutions were passed to amend sewer service agreements and waterline agreements with various towns to align contract expiration dates with new financing terms secured through the New York State Environmental Facilities Corporation. Loan modifications were discussed, including increasing a HOME ARP award for Neighbors of Watertown Inc., and approving a six-month interest-only payment period for Eastern Resort Management due to current financial tightness. An update on the loan portfolio noted the closing of permanent financing for the former 801 project and identified several delinquent loans, linking increased delinquencies partly to the depletion of ARP and PPP funds.

The meeting included a review of the financial results for April 30, 2022, noting variances in accounts receivable and capital assets due to depreciation. Discussions covered operating revenues being under budget, largely impacted by a high volume of lower-rate contaminated soil received in April. Operating expenses showed depreciation over budget due to regulatory changes affecting the useful life assumption for the southern expansion capital project, and higher closure/post-closure costs due to increased waste volumes. Interest income reflected a market adjustment loss, although it was noted that this is not a realized loss as investments are not being liquidated. The Authority recognized the service of Fred Carter, Sr., and presented a certificate of appreciation to Jim Wright for his tenure and leadership. The Board received updates on the 2022 annual reports, highlighting accomplishments across waste disposal, recycling, water/wastewater services, and broadband initiatives. A briefing was provided regarding the Army Water Line EPA administrative order and the City of Watertown's corrective action plan and pilot programs to address disinfection byproducts. Recognition was given for winning a marketing certificate of excellence award for a joint website effort and for staff member Zach Siber being named AUSA volunteer of the year. Finally, the Investment Advisors from RBC presented the 2022 investment report and conducted a shock analysis, explaining the negative impact of rising interest rates on the portfolio's marked-to-market value, while reassuring the board that no actual capital losses occurred as bonds were held to maturity.