Finance committee recommends board adopt third revision to financial reserves policy
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Summary
The Finance and Risk Management Committee of San Diego Community Power voted to recommend board adoption of a third revision to the agency's financial reserves policy, updating how days cash on hand is calculated to include certain investments and clarifying use of reserves.
SAN DIEGO — At its Oct. 16, 2025, Finance and Risk Management Committee meeting, San Diego Community Power’s FRMC voted to recommend that the full board adopt a third revision to the agency’s financial reserves policy.
Jeff Spengler, senior strategic finance manager, told the committee the single-line change in the current revision updates the definition of "days cash on hand" so that certain investments will be included in the calculation. Spengler said the broader update aims to reflect funds placed in investment accounts such as the Local Agency Investment Fund so those balances count toward the agency’s 180-day cash target.
The change, presented as a targeted amendment ahead of a more comprehensive reserves-policy update later in 2026, was described as preparatory work to support a future public credit rating and to give staff more flexibility to manage rate stability and contract terms. Spengler said San Diego Community Power has considered placing additional funds in LAIF, which has a $75 million maximum for a single account, and estimated that a shift to certain investments could yield roughly 200 basis points more than the existing money-market holdings, equating to an approximate $125,000 monthly boost toward reserves under current assumptions.
A director moved to recommend board adoption of the resolution approving the third revision; another director seconded. The committee recorded voice votes in roll call and the motion passed. The roll call recorded affirmative votes from Director Ensign, Vice Chair Suzuki and Chair Vita Siamani.
The committee was told a full policy overhaul with more detailed analysis and additional proposed changes will come back in 2026. The current action is procedural: the committee forwarded the recommended revision to the board for adoption.
Notes from the meeting record indicate the committee continues preparing for potential next steps that could include seeking a public credit rating in the next three to six months and further refinements to reserve targets and allowable investment vehicles.