HomeMy WebLinkAbout04. (Handout) Presentation re revisisions to BP 017-Fiscal Reserves.pdf iIV
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FISCAL RESERVES POLICY UPDATE
}= = PHIL LEIBER, DIRECTOR OF FINANCE & ADMINISTRATION
DECEMBER 21 , 2017
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BACKGROUND
Agencies typically adopt fiscal reserve
policies to enhance fiscal stability, provide
transparency
Central San 's Policy adopted in 2015
Two year review cycle due 2017
Staff prepared policy update for Administration
Committee in October 2017
Revised policy approved by Administration
Committee in December 2017
PROPOSED CHANGES
Additional commentary regarding use of
reserves
Clarify existing practices and recognize
changes since 2015
Enhance ability to separate maintain and
track investments
ALTERNATIVES CONSIDERED
Enhance O&M Working Capital Reserve
Separate Working Capital Reserves into
Working Capital and "True Reserve"
components
RECOMMENDATION
Review and approve the updated Board
Policy No . BP 017 - Fiscal Reserves, and
authorize the General Manager to establish a
separate LAIF/investment sub-account with
Contra Costa County under the O&M sub-
fund .
OSE N.r�
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APPENDIX
Attachment 3:
Combined ❑&M and Capital Reserve
S90,000,000 Cash and Investment Balances
Se0,000,000
S70,0001VVV
560,000.000 _0
S 5V,V0C1,C]V[1
Sn[1,prJh,[7pV
$70,000.000
S 2 V,ow,W V
S 10,006,a00
S-
'1u[ Sep Nov lar, [V1ar May Jul Sap Noy Tari M., play lul Sup No. Jar, Myr n4ay iJyl Sep NOV Jan Mir M4Y Jul SOP Ne lar+ Myr M-Y
FY 2012.13 FY 2013.14 FY 2014.15 FY 2015.16 FY 2016.17
///''��� Cash and'nye 5t-e nt 6ala-ce —Polly Worki ng to pita)Hese rye LeWl(5/37 O&AA,$0%of C1 P)
r ■ Measurerrment date for Compliance with targeted fiscal reserve balance-