HomeMy WebLinkAbout10, Financial Goals Reserves Debt
Action Item # 10, 2012August 1 Updating District Goalsand Consideration of Goals, Reserves and Debt;Review of District Financial
Review of District Financial Goals, 2 Electric 2003 COP debt service ends January 1, 2013•some of the reserve goalsThe Board acknowledged that it would take time to achieve •Financial
goals were last reviewed on August 3, 2011•Reserves-Debt-Revenue-Planning-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$500,000FY12 water debt payments from facilities fees-$200,000FY12 projected water facilities fees revenue-Downturn
in new construction-revenue committed to debt servicehalf the projected annual facilities fee -No more than one•Debt Goals
New Information Reserves and DebtReview of District Financial Goals, 4 Reserve Goal Summary
New Information Reserves and DebtReview of District Financial Goals, 5$2,527,000Rate Stabilization Fund balance -of $3,000,000Electric Rate Stabilization Fund should maintain a balance
•$5,050,000Current General Fund balance -highest month budgeted expenditures; $10,000,000Electric General Fund Cash Reserve should be twice the •Operating (Cash) Reserve Goals
New Information Reserves and DebtReview of District Financial Goals, 6$3,474,000Water Capital Replacement Fund balance -amount of $4,000,000There should be a Water Capital Reserve Fund
in the •$12,000Electric Capital Replacement Fund balance -amount of $1,000,000There should be an Electric Capital Reserve Fund in the •Capital Reserve Goals
New Information Reserves and DebtReview of District Financial Goals, 7 annual budgeted operating expensesModify the Electric Cash Reserve Goal to be one half of the •plans, instead of
every two years Review facilities fees after the completion of the master •Review rates every two years, instead of every three years, •Capital Improvement Plans-Financial Master Plan-Connection
charges-Review every two years, instead of annually•Recommendation to Change Goals
Fiscal Impact Reserves and DebtReview of District Financial Goals, 8 will be consistent with the current Financial Master PlanIf the proposed Electric Cash Reserve goal is approved,
it •
Recommendation Reserves and DebtReview of District Financial Goals, 9 half of the annual budgeted operating expensesElectric general fund should have a cash reserve equal to one •Review
facilities fees after the completion of a master plan•-Rates-Capital Improvement Plan-Financial Master Plan-Review the following every two years:•Code:Approve the following updates
to the financial goals in District