HomeMy WebLinkAboutResolutions - No. 2014-88RESOLUTION NO. 2014-88
A RESOLUTION OF THE LODI CITY COUNCIL
REVIEWING AND MAINTAINING THE CURRENT
ELECTRIC UTILITY RESERVE POLICY
WHEREAS, in March 2011, the City Council approved Resolution 2011-39 approving a
financial 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 Target
$28,700,000
WHEREAS, this policy provides for an updated assessment of the targets identified
above every three years with a report to Council; and
WHEREAS, since 2011, the formula for establishing the Electric Utility (EU) reserve
policy has remained unchanged with the actual dollar amounts reviewed and updated each year
by the Risk Oversight Committee (ROC) in accordance with annual budget amounts; and
WHEREAS, on
the reserve targets be
analysis is completed
updated.
May 19, 2014, the ROC recommended that the formula for calculating
maintained until such time as the financial model and cost of service
for the EU and that the dollars associated with the reserve policy be
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve
the review and maintenance of the current Electric Utility Reserve Policy as follows:
Fund Designation
Basis
For FY 2015
Operating Reserve
90 days cash on hand
$17,080,000
Capital Reserve
Largest distribution system
contingency
$1,000,000
NCPA — General Operating
Reserve
As identified by NCPA plus
allowance for unanticipated
studies
$5,600,000
Total Target
$23,680,000
Dated: June 4, 2014
I hereby certify that Resolution No. 2014-88 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held June 4, 2014, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN
COUNCIL MEMBERS — Hansen, Johnson, Mounce, Nakanishi, and
Mayor Katzakian
COUNCIL MEMBERS — None
COUNCIL MEMBERS — None
COUNCIL MEMBERS — None
&JOML-OLU,SON
City Clerk
2014-88