Good morning,
everyone. Call to order the
joint meeting of the board of
Directors Citizens, Energy
Group. She did first item on
the agenda. Staff spending. 4
members have identified any on
the agenda which present a
conflict to It's so please
recuse yourself. Our next
order of business. Is approval
of minutes of the joint
meeting of the board of
Directors, Citizens, Energy
cwa Authority that on MAY 27th
2026. These minutes could be
having affordable. So I have a
motion approve it. And I have
a second. All those in favor
signify by saying Aye, aye.
And he opposed same motion
carries next item is the
certification of the topics
discussed at the executive
session. And the board of
Directors of Citizens, Energy
Group cwa 40, that was also
held on MAY. 27 and this year
for the purpose of the
meetings, I will certify that
the subject discussed are
getting sick. This session.
And the board of directors of
Citizen story that held on
MAY. 27 was the items
specified in the public.
Notice additionally, as
reflected in the meeting
minutes supports discuss the
initiation of an
administrative law proceed
way. The next item is the
approval of the fuel cost
Facey 82 and resolution
describing that adjustment can
be found page. 21 and the
board portal. Do I have a
motion to approve that? The
second. All those in favor
signify by saying and he
opposed. Thank you. Motion
carries. Next is the approval
of the gas cost adjustment
one. 71. And that resolution
is on page. 22 of the board
homework or do you have a
motion to approve? All those
in favor signify saying Aye?
Annie oppose. Thank Fashion
carries and we will now move
on to report of the audit and
risk Committee from Doctor
Jeffrey bit. Thank you. MADAM
Chair, a meeting of wrist a
board directors that group
morning. So being Kolr present
the company's financial
statements for the 3rd fiscal
quarter ended. JUNE 30 point
points the most financial
statements. To your board
materials 23. For the quarter
was just over. 54 million,
which got approximately 3 in
the same period year. Largest
component of decrease was from
country's interest and
depreciation. Charges mostly
and wastewater division with
completion of Rock We're no
longer have a lot interest
that. So that's not getting
our fast. Its cost, especially
in water, also continue to
rise. More significant
disclosures in the financial
statements were 3 lot debt
issuances during the quarter
percent. Water. Approximately
212 Million. Well as
additional 173 5 this after
today. Of have. Regulatory
the White floor. There is a
disclosure it kind 11 packed
flooding. Infrastructure,
which is currently being that
we insurance will cover a
large portion of the damage
that is part of closure. Our
independent auditors, Deloitte
Touche. They have completed
the reviews of the 3rd quarter
financial statements expected
report on those statements.
Would remind everyone of the
quarter where you live Let's
go AUGUST. With that said
support of day, there were no
difficulties. Wrecked in the
state management or or other
tissues. I've got a Pfizer. So
had the opportunity get
financial statement. Report
are still a lot of years of
the committee to take action
to recommend approval. 2026
0rd quarter.
Update on the company's 2026
insurance program. Jennifer
Bailey. Insurance coverage we
continue to competitive. We
source our insurance program
with assistance from both
local national brokers.
Overall, our major programs
continue to be. With here's
the terms of coverage limits.
With passions of premium
costs. We are continuing to
see a general station of rates
for pensions coverages. We did
have an overall premium
increase approximately 4.8%
with Texas liability and
autumn. A large part increase.
Aside there. Essentially flat.
We do. It by continuing
challenges impacting Texas
liability on a And focus
Critical information, security
patrols optimize rest.
Finally, we heard a report
from a lot of it. A lot love.
It's got committee, a brief
update current year on plan
which is on track. Reporter,
one completed assurance review
time and accuracy and
completeness eateries. And
also presented proposed at why
Weny 27 on plan. Are a nation.
Including cross reference with
the top 20 risks identified
through er. A summary also
review a list parking lot.
Projects that were not point
points play for which consider
future plans or as time
permits. So having this
customer review, that plan
action approve plans. Thank
you. Are there any questions
for director? Good? We next
and have a motion to approve
the fiscal year. We need a
motion to approve the fiscal
year to 2026. 3rd quarter
financial statements for
Citizens, Energy Group in cwa
Authority. First a second. All
those in favor signify by
saying Aye, aye, any opposed
like sign motion carries.
Thank you. Next item on the
agenda is reporting the
compensation of Finance
Committee director Hicks.
See asked
a straight 8.
What says are
Wait first 3 are off.
Station. As now. It marking
those jobs area. Part the
primary market, which is
nation of Serie insistent
publicize utilities to
citizens And again, the issue
marked out as we look at not
only pays base salary
long-term. The Senate also
value, value over time. U.S.
Medical pto life. The market
now says if you look Page 79
in the world, we show summary
is a this It's on average. It
positions are 6% below the
market for total cash So base
salary and Shorten said
variance from Mark. He is 8%
below the market. And then are
told station, which based
solely on Senate. Incredibly
the party citizens does have
sun is back. And mission
minus. 47% below market be lie
that led to a healthy guy.
When we look at your on total
rewards, I call your one of
the portal and the far-right
shows the comparison Citizens
Home or or some of base.
Incident. To them of area
shows assistance from the 39%
below the market. They face on
market movement for base
you're out 3 a half percent.
If you look on the portal
agent a safe, we have those
pay adjustments. Candidate
position that well as
decision, we're close gap to
the market. For those
positions that are well below.
Take any questions or
discussions or questions.
Their direct or Hicks are was
fun. Hearing Thank you both
for your. So if I can sorry.
That will start classes
management 8. And there were
10. 26 for additional step up
for a new vice PRESIDENT On 3,
5, 27. We continue on to 96.
Short run when you for for
2027. We have the 4 categories
in our church and all time
change customer satisfaction
of financial, integrity and
performance excellence. Come
back up to customer
satisfaction regarding
employee engagement. We look
at black students our race.
Financial integrity. We look
at our going a budget and the
charges budget amount. And
then before citizens lean and
6 Sigma. We have increased
number projects that will
Cnn Mark. We're confident step
and be able do that. And the
objective is, of course, a
voice too. Sets from
processees process eases. It 3
days cost overall. To this
section. We did few changes
this year Essentially. The
adjustments are made to.
Positive experiences. Our
customers, contests surveys.
Surveys additionally each
measure creates direct line
sight for each of employees
and how they individually
impact outcomes. Shortens plan
is very important to our
employees is part of their
compensation from top to
bottom, including are, you
know, ways. Creating a line of
sight for them, makes it much
more meaningful and engaging.
I will be happy to take any We
talked a little bit about how
you said. Fresh polls for
customer satisfaction. I'm
actually going to direct a
Lawson. Going to walk through
that. 3 measurements and we're
going to be you going forward,
our measurements and me
measuring in the past. So we
have store data. Show us
report. And we're setting
those metrics based on that
past performance and locals
who want to, if you will, to
achieve.
Especially recalibrating
those.
Yes, we're actually going to
look at where we are at end of
the fiscal year and adjust.
The stretch is based off where
we actually ended up where
we've been able to be over the
last 3, 4, theirs.
And the other questions. Okay.
Thank you. And my apologies,
Tony, we've done that twice to
you this morning. Please don't
take that. If there's
discussion, we will move on to
That found on Page 97 of the
4th with actual use. It is
starting a page. 74 or have a
motion to approve executive
compensation and the second
second, all those in favor
signify by saying Aye, I'm any
opposing sign. Motion carries.
Next will call for the
approval of the Citizens
Energy Group and cwa
Authority. Its full year 2027
budget and 2026. 2031
forecast. That report can be
found Page 101 of the 4th
quarter. Do I have a motion to
approve? And second, all those
in favor signify by saying
aye, any opposed. Cares. And
next to approval is for the
customer benefit distribution
for 2027. And that resolution.
I can be found Page one. 45
before portal. Do I have a
motion to approve? And the
second second, all those in
favor signify by saying Aye,
I'm any opposed. Motion
carries. And next approval is
for the capital contribution
from citizens, gases, citizens
resorts, and that resolution
can be found on Page one. 46
of the portal. Do I have a
motion to approve? So and
second, all those in favor
signify by saying Aye, Aye.
And if post a motion picture.
Now we will move on to a
report from the senior vice
PRESIDENT Chief Financial
officer's project. Thank you
everyone. 3 items of note, my
report, Hughes, Corning,
first, update our financial
protection for balance of the
year. A second is to provide
context resolution to rate
stabilization fund with
citizen water. And then
finally, it's for years. But
we'll talk about the
disposition of funds. Report.
So turn page 150 our
financial. This reflects 9
months. Actuals 3 months
forecast. I know we've now
completed JULY, but is time
when this was for tax rules, 3
months, we're as you can see
in the slide in the materials.
We continue to trend very
favorably to our budget. A $15
if ball on that income even
off and the drivers are very
consistent with what we have
discussed prior board
meetings. And those are gas.
Martin. So retail and will
somewhere budget. And then
secondly, within our water in
Westfield Water we received
over 9 million dollars in
impossibly itself this. There
are those of us and minuses
with which you can see here.
But largely speaking, those
are the key drivers in our
projection for the balance of
the year. JULY was actually
Yes, actually updated the
chill of project There no
increased 2.18 so we've added
an additional Again, drivers
one today. Craig. Real quick
on Pfs settlement. That's not
the end of the And there are
additional 3, $9, that is
still due to come into time,
which is uncertain. We have
not. But it didn't that for
2027. It is possible we could
see some of The second related
to resolution requesting
approval transfer funds
Citizens Waters rate
stabilization fund. To their
cash. So I'm just provide a
little bit of context on this.
If you can turn page 155, your
materials. As part of the
acquisition of the water
utility was city back in 2011.
Can be associated. We created
the stabilization 5 under the
master of Dasher. And at that
time it was funded with 6.9
million dollars and the
purpose of this fund must
provide additional coverage.
Alright, let's some excess
capacity under debt service
coverage. So if you look at
the table on the lower left.
What we did, we adjusted what
we call that bill for debt
service. We've just of the
coverage next year. And then
that would be a bill full
force in the future to of
funds and use it scores that
service should be no
shortfall. Our coverage. And
you can see over time we have
not had the draw on that. So
was changed since the 2011,
issuance a couple of things.
One. We have a doubt some of
the death normal amortization.
And then the remainder of the
debt. 11 that has now been
fully refunded. And the
rebound today either has a
surety bond. Where has its own
reserve attached to it. So
there really is no longer in
need for this 6.9 billion we
stay Unfortunately we're
always looking at ways we can
improve liquidity. When you
look at our balance sheet,
doesn't represent increase or
cash or with we've always
recorded as the city were just
moving the dollars between
great civilization. 5. So with
that, we will be requesting
the board to approve us to
release the funds and put that
in that removing him from this
point to our cash or kill.
There for any questions. Makes
sense to me. Just curious. The
ready, a similar. Find out
what the wastewater side. So
under the indenture the
ability to have every
civilization although it
wasn't required to have So we
we never established at the
time. And then finally, Craig,
you have just question. So
water we seen going forward
for the foreseeable year as it
relates to interest rates it's
very interesting. Ends on
which be you know, I think
spreads. We generally expect
continue to be in that.
Spreads certain deals in upper
3 to 4% to point rate. Still
5, maybe a little bit north of
5% with still some
opportunities to potentially
do reading teens. So I would
say refunding cwa is really
where we have opportunity. We
are coming up quality in
OCTOBER. In theory, as you
move past a cold, start to
some of the value funding. Is
not where market is today.
Margaret's can still move in
our favor and week to week
until after the holidays to
refunds lead. That's what
we're about know that there is
some opportunity, although the
percent savings are pretty
much. Okay. Is the disposition
of funds report? Several of
you. You will recognize this
report from years past is very
much aligns with our. Budget
for were members. Its report
is required by state statute.
It basically just outlined
going to this first winds
throughout the year for the
different categories. We are
part once the board approves
this report. He filed with
controller at the We do not
have any obligation. Words
throughout the year to update
this for Actuals just a
one-time submission. So pass
for questions. That concludes
my report. I thank And then if
there's no other discussion or
questions, let's go ahead and
move on to the approvals. And
so we have a resolution. For
the transfer of amounts from
citizens from rate
stabilization fund to ready
account, which can be found
Page 4.56 Of the portal. And I
have a motion to approve. So
and I have a second. All those
in favor signify by saying
Aye. And motion carries. The
memo for the disposition funds
can be found on Page one. 58
and the board portal and a
motion to approve. All those
in favor signify by saying
Aye. Annie, a post. Motion
carries. Next. We'll hear from
our PRESIDENT And chief
Executive Officer MR. Jeffrey,
thank you. MADAM Chair, you'll
find my report on page one. 59
of the board portal this
highlight a couple of items
of. What is the 17 million
dollar prepay savings for
natural gas customers? We've
been able achieve that. Those
those savings and appreciate
our casting for doing so. And
then first thing customers
greater than 10 million
dollars per year. With respect
to the renegotiation. A
contract for that for that
business. And so those
customers will ultimately see
some some benefit savings as
well. Given the recent rains
that taking place. Asked that
members of our staff provide
you with a bit of a real-time
update on how organization
perform. So that Vice
PRESIDENT Water operations j p
will will provide you with
some some information. Closely
with one that you do. You The
city's slow response plan.
Closing, let gaze operates
storm stations and people
banned. In the are. Water
distribution routes responded
Crystal Lake River Road. To to
protect public safety and
minimize damage. Most
possible. There fewer water
main that have been severely
damaged or washed We need
replace the floodwaters. C.
Whole system for 40 for by
overflow during that time.
Surpassed or 10 billion
gallons. Worked this event and
fully operational during play
mental issues. True. Billion
gallons closes raw so well.
Plants. So expect that water
treatment located in Kabul.
Some still there. Here college
degrees surpassing the team
corrected. Our service was
planned stay off by Saturday
morning. Critical
infrastructure of interviews
are passed off 30 million
gallons per day. For our
portion or a service nor
fishers. And guys, is.
Equipment were significantly
damaged. It did not find it
was. It would be estimated a
few weeks to Hamas.
Transmission system just we're
using them was. It's just so
the great example of the
flexibility for city of our
system. The experiencing low
pressure and fissures area.
For a few hours Saturday
morning covering Astro hires
is fragile that not. Because
issues issues to participate
in press operations. Forced
water safe drink and we did
ask customers a shovel. Fire
rescue, assistant staff
existing the waiver wire, the
the and the intake structure
that was flooded. A lot
fertile equipment to be re its
restart as results his plan
return Significantly, Syria
expect. Damage whether water
utility Grecian do well fuel
located adjacent partner. It's
3 resulting in approximately
3 million last. Actually, this
water. Customer and we do.
It's great because just pay
issues because they're next 3
repair. Well, the summer,
potentially summer. Has
already formed to damage and
determine faster relief under
insurance dollars are
available to pay related
damages. Program grew to
critical infrastructure,
including House.
Team members made work around
clock.
Start gas side. So what are?
See years for years. Those
areas were isolated or
planning. Many of us. We had
about 400 feet pipe that was
also Steel, longest Series
place. Assessing damage. What
area, what it is for sure. As
mentioned, there. People
responded. And even work. Work
on as we normally do. Service.
For again from the board just
want to make sure that we
thank both both your team's. I
know that everyone at citizens
there was a heightened
awareness, obviously, but it
was a devastating situation
for we were national for for
days. So I certainly saw on
social media. You know, the
community volunteer efforts
that were going on with our
own employees. So again, I
want to thank you all for for
tremendous for that. And you
did during that period.
Graduation time. Results are.
Mark a ball. And piece
chocolate have your commitment
special development. So just
want celebrate that. Case and
director, he would know saw
sounded great to me. But how
would that compare today's
environment? So? It's all
industry specific things. I
tell you what benchmark is for
health care, but
so, the actual utility but
this Sense. And so we went
through a stretch. There
definitely employees market.
We start to see a lot of
thing. I think we see a
stabilization.
Employees. Additionally, the
stability and work. A utility.
We should mention leadership
development. If you need to
patients this it was a unified
way. Still. Wage boys began
after 2015. MARCH to 3 years
to get to point. But
additions can go somewhere
else.
And to to be a day when it
definitely.
A lot of us. 25
Yeah. Well, thank you again
for And again, I think it
speaks also to the culture of
the organization and and the
mission. And, you know, the to
regulations in ending
leadership.
Well, that's jurors for isn't
it level of trust you don't
always see him. So.
And the other questions for
All right, hearing none. We
will move on to as strategic
planning updates sitting.
Morning.
We you for these. Patients of
a select group of engaged
employees. To recommend
actions to implement a
strategic. Actions that they
have recommended this year in
which officers have adopted
for the 2027 strategic plan.
Update. Representative, on
Page 27.
Suggestions that we selected
mission reach it.
Satisfaction. We expand
customers understanding of our
company career opportunities,
a strengthening focused
outreach. With this
initiative. We propose to
standard educational material.
And sire next generation of
customers.
We offer and tougher. Is
coming a structure and the
services. We will implement a
grow.
Stage is required skills at
each stage and online learning
experiences for priority
rules. Understand development
options and career progression
opportunities.
Retention.
Impact statement to 5. Is
solely Initiative will us to
provide a more holistic.
Also proactively control. The
narrative around the value we
provide. We expect this to
risks associated with this
information. We're gas
established 1800 year on
citizens rule as it.
Occasions from this
initiative. They are 82. It's
ability and adoption of the
eye also cost or innovative
approach to complete
traditionally prioritize
tasks. Use case which we it. I
you're probably familiar.
Alleged transfer. If 60
standard operating procedures
in our customer billing
services. I to overcome
competing priorities work.
Includes my presentation and
my fellow officers and I
would.
We certainly look forward to
more information on how that
pilot program well. Stay
tuned. So at the next item on
the agenda is to hear comments
from one of our community
stakeholders. So it's my
pleasure to welcome Lisa Leff
and as if she's executive
director of the West
Indianapolis Development
Corporation, it is for many
years. So we'd like to welcome
you to our army for sure.
Raid. We we its a. Saying
interesting. We had a waiting
to unity cnn. All for us is
are. For? We have. Is heirs?
Is Amy's. We are face. Office
it. It's so we rely In those.
Very owns she saying. Mask a
issue was sold us He he son.
And that's homes. Airbnb is
especially in the inside g So
our goal I We area air. Is a
and for us. He We also case
is. Hearing. And part a So,
example, single person making
60,000 this is eye. So those
that use for or our goal nice
for sale but certain. We are
in the process. Italy this
senior. See also us. Certainly
is. A it's a side or isil. And
was of perjury we'll It is it
is So well, for missing. You
watch at all this funny. Us
sale force. The in So all
racist us are are? Seemed. I
possibly a problem that we saw
cells collectively. Well, Rob,
out for you. Is for sale year.
These are real estate deal in
the is the you things. So was
it a real is heavily And they
part of it is a that first.
Career part public works
series and that's it fact for
our communities. That's huge.
JANUARY, for back into.
Probable use. Awesome. Really
for a struggles. Eagles too.
Thank Thank you for your work.
Sense Prada all just see of us
in being part neighborhood
rates already for that, he? So
part of s#
#
. C's had a while
it is he says that is was a
lot that it's how We really
are over a lot changes parts
of city. So as he a Gray says.
Just years with So also cta
and are just All of our has
and will lead as a seems
building materials. Owns? Us
from 80's. So are saying us
sees aware of the Again, is
able possible. Or life. We
appreciate any consideration.
U.S. We have that we are the
city almost on the we have a
so it's he is Seattle, as So
you to less a little will
We've got a I years if has
great job so sizes before for
that as well. Is We so we we
appreciate the partnership and
appreciate you coming out
today. And again, I think this
is really an important part of
our board meetings going
forward to hear from the
community and the cdc's in the
neighborhood organizations
because not all of us it on
community-based for some of us
have in the past. So it's
always important head to get
an update to get a sense
what's going on to hear that
the alliances is that
continuing as I knew something
happened there? I wasn't sure
why. I think that was after
retire. During my and I was
actually on and Mary office
said service for been John
live. So before it came John r
center. But I know that there
there would have been so much
for from the site, so much
concentration work on the
side. They were all sitting it
out of all car. You know, our
got a lot of attention. But it
always seemed like the west
side of town so excited
continue to struggle. So I'm
wondering, has said changed.
Are you getting more support?
As You know, I know mayor's
office use to have. Appointees
and the various neighborhoods.
Have you seen much change in
that? Are? Says it's
leadership structure of U.S.
So said organization. Or is it
isis says made so the see
Well, is a season area. Rate
in the 70's and is area. So
whereas ease. People. We age.
It's problem. We had years.
Voice. Sir, a Syrian. Why is
art? So was What the rolls
that? The goal to people,
you're And and so talking to
it's it is. Our money needed
at location. Society lot ice,
table for We a lot of area
this dangerous so trying or
write. Is really a invest We
that the owners a company
trying to find the right fit
he in. It's so nice She
overall Yeah. Well, I know
there's been huge challenge
with getting leadership and
getting leadership various
sides of ominous worked on a
soundtrack to support. So
again, we just appreciate all
that you're doing. We
appreciate the partnership
with your organization and
thank you so much for coming
today. It be So if there are
additional questions for us
laugh when that this time we
would like to see if there's
anyone from the public who
would like to make any
comments to the board today.
I'm not sure we have anyone
here from the public. We okay.
And then we will forward. With
that. Let's see what's next. I
think that yeah, there's no
other business before the