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2025-11 – 5.05 – Financial Reserves Policy
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<br />Example Implementation Scenarios
<br /> Current 3 Months Operating 2 Months Operating 1.5 Months Operating
<br /> Electric Water Electric Water Electric Water Electric Water
<br />2024 Y/E Balance $14,793,957 $9,961,189 $14,793,957 $9,961,189 $14,793,957 $9,961,189 $14,793,957 $9,961,189
<br />Restricted WAC/Trunk* N/A N/A - N/A - N/A -
<br />Restricted for Debt
<br />Service** $1,779,016 $0 $1,779,016 - $1,779,016 - $1,779,016 -
<br />Operating*** $9,988,709 $1,423,172 $11,311,701 $991,494 $7,541,134 $660,996 $5,655,851 $495,747
<br />Annual DS $1,784,932 $103,117 $1,784,932 $103,117 $1,784,932 $103,117
<br />Capital $3,400,000 $2,160,000 $3,400,000 $2,160,000 $3,400,000 $2,160,000
<br />Catastrophic $3,500,000 $8,000,000 $3,500,000 $8,000,000 $3,500,000 $8,000,000
<br />Unrestricted $3,026,232 $8,538,017 $0 $0 $0 $0 $0 $0
<br />Total Reserves $14,793,957 $9,961,189 $21,775,649 $11,254,611 $18,005,082 $10,924,113 $16,119,799 $10,758,864
<br />Variance from Current -$6,981,692 -$1,293,422 -$3,211,125 -$962,924 -$1,325,842 -$797,675
<br />*No target, varies annually based on development
<br />**Currently, only Electric has this reserve requirement
<br />***Current reserve policy uses six months less depreciation, one month purchased power, plus annual debt principal and interest
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