James City Service Authority adopts rate-stabilization language and updates investment policy

The James City Service Authority Board of Directors on Monday approved updates to its financial and investment policies that add a defined rate stabilization reserve and revise other reserve targets, the authority's staff said.

The authority's staff told the board the financial policy revisions create a rate stabilization reserve with a defined minimum target balance intended to manage unexpected revenue shortfalls or unanticipated expenses and to reduce the need for large rate increases. The update also adds minimum target-balance language for the repair-and-replacement reserve and the alternative water-supply reserve, and it revises how the authority assesses reliance on facility-charge (tap fee)…