HomeMy WebLinkAboutResolutions - No. 2011-39RESOLUTION NO. 2011-39
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING
THE REVISED ELECTRIC RESERVE POLICY
WHEREAS, on January 17, 2007, the City Council adopted Resolution No. 2007-13,
establishing an Electric Reserve Fund Policy ("Policy"); and
WHEREAS, the Policy set an initial Electric Reserve Target Level ("Target") of $12.9
million as follows:
• Operating Reserves: $8.2 million, equal to 45 days of budgeted operating costs
• Capital Reserve: $500,000, equal to the cost of largest distribution system
contingency
• Rate Stabilization Fund: $4.2 million, equal to 20 percent of annual market power
costs; and
WHEREAS, the Electric Utility Department's ("EUD") available cash reserves as of June
30, 2010, were $12.1 million compared to the $3.6 million cash reserves available June 30,
2006; and
WHEREAS, the Policy also provided for an updated assessment of the Target every
three years with a report to the City Council; and
WHEREAS, the attached report provides the City Council with an updated assessment
of prudent cash reserve levels for Lodi Electric Utility.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby approves the
Revised Electric Reserve Policy as follows:
Fund Designation
Basis
For FY 2011
Operating Reserve
90 days cash on hand
$ 18,900,000
Capital Reserve
Largest distribution system
contingency
$ 500,000
NCPA - General Operating
Reserve
As identified by NCPA plus
allowance for unanticipated studies
$ 9,300,000
Total Tar et
$ 28,700,000
Dated: March 16, 2011
I hereby certify that Resolution No. 2011-39 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held March 16, 2011, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN
COUNCIL MEMBERS — Hansen, Katzakian, Mounce, Nakanishi, and
Mayor Johnson
COUNCIL MEMBERS — None
COUNCIL MEMBERS — None
COUNCIL MEMBERS — None
NDIJOHL
City Clerk
2011-39