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Committee weighs reserve-policy amendment and a short-term interfund loan to bridge SRF timing
Summary
Staff proposed amending Policy 2015 and using a resolution to allow a one-time transfer from the general fund into the water-fund debt-service reserve to meet SRF requirements; they also presented a draft revolving interfund loan (up to $3M) with six months interest-free on each draw to bridge SRF disbursement timing.
Staff told the committee they will propose amending Policy 2015 (enterprise funds restricted net position) and bringing a resolution (Res. 2432) to authorize a one-time transfer from general-fund unrestricted cash into the water-fund debt-service reserve to meet anticipated SRF debt-service requirements. Staff explained the recommendation is to fund the amount over two fiscal years rather than make a single large transfer now and will return with a resolution when exact SRF draw amounts are known.
To address timing risks tied to SRF disbursements, staff presented a draft interfund revolving loan to bridge short-term cash shortfalls. Key proposed terms: interest would not accrue for the first six months on each draw, interest thereafter would be tied to the district's highest cash-pool earnings, and the committee capped the facility at $3 million. "Meaning, we perceive potentially taking $1,000,000 dollar draw from the general fund and being able to repay it within 6 months," staff said while describing the proposed revolving structure. Staff said they would report monthly on draws and repayments.
