HomeMy WebLinkAbout14 Power Point WS Review Financial Goals Reserves Debt
Workshop Item # 14 August 3, 2011 Goals, Reserves and DebtReview of District Financial
Review of District Financial Goals, 2 some of the reserve goalsThe Board acknowledged that it would take time to achieve •Financial goals were last reviewed on February 17, 2010•In 2004,
the Board adopted a set of financial goals•Background / History Reserves and Debt
New Information Reserves and DebtReview of District Financial Goals, 3 Water Capital Improvement Plan is scheduled for FY12-year Capital Improvement Plan-Prepare ten•Recommend modifying
goal to be every two years--Scheduled to be reviewed with the FY12-Review the Financial Master Plan every year•Water Master Plan update is scheduled for FY12-Water Capital Improvement
PlanPrerequisite for Water Master Plan and -Urban Water Management Plan was reviewed in FY11 (delayed)-Review master plans at least every five years•Planning Goals
New Information (cont)Reserves and DebtReview of District Financial Goals, 4 Detailed review will be done after the completion of the Water -Fees are reviewed with each budget cycle-Last
water facilities fees increase adopted on April 6, 2005-Review facilities fees every year•Revenue Goals
New Information (cont)Reserves and DebtReview of District Financial Goals, 5 26 years remaining-The Water 2006 COP matures 2036-No debt more than 25 years maturity•313%% of annual facilities
fees committed to debt-$500,000FY11 water debt payments from facilities fees-$160,000FY11 projected water facilities fees revenue-revenue committed to debt servicehalf the projected
annual facilities fee -No more than one•Debt Goals
New Information (cont)Reserves and DebtReview of District Financial Goals, 6 Reserve Goal Summary
New Information (cont)Reserves and DebtReview of District Financial Goals, 7$2,362,000Rate stabilization fund balance 06/30/2011-$3,000,000Electric rate stabilization fund should maintain
a balance of •$4,899,000Current general fund balance 06/30/2011-month budgeted expenditures; $7,000,000General fund cash reserve should be twice the highest •Operating (Cash) Reserve
Goals
New Information (cont)Reserves and DebtReview of District Financial Goals, 8$ 223,000at 06/30/2011Electric Capital Replacement Fund balance -amount of $1,000,000There should be an Electric
Capital Reserve Fund in the •Capital Reserve Goals
New Information (cont)Reserves and DebtReview of District Financial Goals, 9 Capital Improvement Plans-Financial Master Plan-Facilities fees-cycleInstead of annually, review every two
years with the budget •Recommendation to Change Goals
Fiscal Impact Reserves and DebtReview of District Financial Goals, 10 There is no direct fiscal impact associated with this item•
Recommendation Reserves and DebtReview of District Financial Goals, 11 Review this report and provide comment•