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It is the policy of the BOCC to maintain a reserve for the Wastewater fund in an amount sufficient to sustain basic operations for a period of at least 90 days and no more than 180 days of budgeted annual Wastewater expenditures.

Reserves for wastewater utilities are generally considered appropriate in order to:

  1. Meet cash flow requirements.
  2. Provide contingencies for unpredictable revenue sources.
  3. Provide contingencies for emergencies (such as natural disasters) and unpredictable expenditures .
  4. Provide funding for capital asset replacement.
  5. Meet debt reserve covenants/requirements.
  6. Maintain rate stability .

Any Wastewater fund reserves in excess of 180 days shall be used according to section 120.6 Use of One-time and Unpredictable Revenues.

If the Wastewater fund reserve falls below the amount that is reasonably necessary to sustain basic operations for at least 90 days, based on the budgeted annual Wastewater fund expenditures , then Wastewater staff shall submit to the County Manager and the Director of Budget and Financial Planning, for recommendation ion to the BOCC, as soon as practical but not to exceed 90 days following notice of the deficiency, a  plan to  rebuild the reserve to the minimum level.

Resolution No. 014-16
Revision Number : Original
Adopted 03-03-2016

 

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