Finance Committee
The Finance Committee is made up of seven Customer-Owners. This Committee is responsible for the review of the budget as submitted by the General Manager. It also makes budget-related recommendations to the Board of Directors.
Financial Parameters
Cash Management and Working Capital – Maintain a working cash balance of approximately
14% of annual expenditures, not including capital expenditures for which we have either
borrowed for or will borrow for funding. Debt to Total Assets – The goal for debt to total
assets is 50%.
Debt Service Coverage (DSC) Ratio – The Bond Covenant DSC is no less than 125%. The
annual budget will target a Debt Service Coverage ratio of at least 130%.
Minimum Level of Rate Stabilization Fund and Other Appropriate Reserves – The Rate
Stabilization Fund target is $2.5 million and is intended to include unbudgeted emergencies
such as storm damage, PUC inspection corrections or other Board approved uses for reserved
funds. As per Bond Covenants, any additions or withdrawals from the Rate Stabilization
requires a Resolution approved by the Board of Directors.
Public Purposes – The District will maintain Public Purpose spending at 3% of the annual
energy sales revenue.
Borrowing – The District will limit new long-term borrowings to 75% of annual capital
expenditures, exclusive of new power projects. All borrowings require Board of Director
approval.
Expansion – The District will support cost-effective growth of the service territory.
Rate Goal – All rates and rate classes to be lower than our predecessors over time.
Financial Parameters
Cash Management and Working Capital – Maintain a working cash balance of approximately
14% of annual expenditures, not including capital expenditures for which we have either
borrowed for or will borrow for funding. Debt to Total Assets – The goal for debt to total
assets is 50%.
Debt Service Coverage (DSC) Ratio – The Bond Covenant DSC is no less than 125%. The
annual budget will target a Debt Service Coverage ratio of at least 130%.
Minimum Level of Rate Stabilization Fund and Other Appropriate Reserves – The Rate
Stabilization Fund target is $2.5 million and is intended to include unbudgeted emergencies
such as storm damage, PUC inspection corrections or other Board approved uses for reserved
funds. As per Bond Covenants, any additions or withdrawals from the Rate Stabilization
requires a Resolution approved by the Board of Directors.
Public Purposes – The District will maintain Public Purpose spending at 3% of the annual
energy sales revenue.
Borrowing – The District will limit new long-term borrowings to 75% of annual capital
expenditures, exclusive of new power projects. All borrowings require Board of Director
approval.
Expansion – The District will support cost-effective growth of the service territory.
Rate Goal – All rates and rate classes to be lower than our predecessors over time.
Financial Parameters
- Cash Management and Working Capital - Maintain a working cash balance of approximately 14% of annual expenditures, not including capital expenditures for which we have either borrowed for or will borrow for funding. Debt to Total Assets - The goal for debt to total assets is 50%.
- Debt Service Coverage (DSC) Ratio - The Bond Covenant DSC is no less than 125%. The annual budget will target a Debt Service Coverage ratio of at least 130%.
- Minimum Level of Rate Stabilization Fund and Other Appropriate Reserves - The Rate Stabilization Fund target is $2.5 million and is intended to include unbudgeted emergencies such as storm damage, PUC inspection corrections, or other Board approved uses for reserved funds. As per Bond Covenants, any additions or withdrawals from the Rate Stabilization requires a Resolution approved by the Board of Directors.
- Public Purposes - The District will maintain Public Purpose spending at 3% of the annual energy sales revenue.
- Borrowing - The District will limit new long-term borrowings to 75% of annual capital expenditures, exclusive of new power projects. All borrowings require Board of Director approval.
- Expansion - The District will support cost-effective growth of the service territory.
- Rate Goal - All rates and rate classes are to be lower than our predecessors over time.