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HomeMy WebLinkAboutResolutions - No. 2021-71=06M1111156]H R63011MIMI A RESOLUTION OF THE LODI CITY COUNCIL REVIEWING AND MAINTAINING THE CURRENT ELECTRIC UTILITY RESERVE POLICY ------------------------------------------------------------------------ ------------------------------------------------------------------------ WHEREAS, the City Council approved Resolution No. 2011-39 approving a financial reserve policy for the Electric Utility (EU); and WHEREAS, this policy requires an assessment of the targets identified with a report to the City Council every three years with the last review completed in March 2018; and WHEREAS, since 2011, the formula for establishing the EU reserve policy has remained unchanged; and WHEREAS, the actual dollar amounts have been reviewed and updated each year by the Risk Oversight Committee (ROC) in accordance with the approved annual budget; and WHEREAS, on March 1, 2021, the ROC recommended that the formula for calculating the reserve targets be maintained. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the review and maintenance of the current EU Reserve Policy formula as follows with the annual dollar targets to be updated by the ROC each year: _ Fund Designation Operating Reserve Capital Reserve NCPA General Operating Reserve Total Target Dated: March 17, 2021 90 days cash on hand Largest distribution system contingency, Identified by NCPA plus allowance for unanticipated studies For FY 2021_ $18,118,000 $ 1,000,000 $ 4,540,000 $23,658,000 I hereby certify that Resolution No. 2021-71 was passed and adopted by the City Council of the City of Lodi in a regular meeting held on March 17, 2021, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Hothi, Khan, Kuehne, and Mayor Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None 6:��JENNIF CUSMIR City Clerk 2021-71