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Council adopts internal enterprise fund minimum cash reserve policy
Summary
Council adopted an internal enterprise fund minimum cash reserve policy to monitor utility carryover balances and provide a 36-month window to correct shortfalls; the policy is advisory (internal) and not an ordinance.
Council approved an internal enterprise fund minimum cash reserve policy after presentations in multiple committees. Kevin said the policy provides a guideline to check carryover balances and, if reserves are inadequate, outlines options including raising rates, cutting costs, or renegotiating debt; the policy gives council up to 36 months to correct any shortfalls.
Council members praised the work and research behind the policy and approved it by motion and roll call. Staff noted the policy will be used as a budgeting tool, including five-year forecasts and assessments of debt and operating costs, and emphasized it is internal guidance rather than an ordinance.
