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Council weighs reserves and enterprise transfer as part of rate strategy
Summary
Council examined 'days cash on hand' and whether to increase the enterprise transfer to stabilize reserves; members suggested a 180-day benchmark and discussed using revenue for capital projects versus letting reserves grow.
Council spent significant time weighing reserve targets and the use of an enterprise transfer as part of the rate-policy package.
Speaker 5 presented modeling showing how different rate scenarios affect days cash on hand and recommended an enterprise transfer that would protect reserves in a tight first year. Several councilors favored a benchmark around 180 days of cash on hand to preserve bonding strength and to avoid reactive emergency borrowing; others suggested flexibility between 160 and 210 days depending on upcoming projects and contractor timing.
Members asked staff to include a cash-on-hand sensitivity table in the public-hearing packet and to show how a modest enterprise transfer and staged percent increases would change bonding metrics and project delivery timelines.
