§ 3.09.045. Excess of reserve requirements.

In the event that reserve accounts have reached their maximum target levels, the Board may instruct staff to utilize excess reserves in the following ways:

i.

Advance fund any of the District's short-term or long-term liabilities, including but not limited to bonded debt service, capital leases, SRF loans, interfund loans, pension liabilities, and Other Post-Employment Benefit liabilities.

ii.

Staff will prepare an analysis with the advice of its Municipal Advisor to determine which of the above liabilities provide the maximum amount of savings to the District due to early prepayment. This analysis will consider any other factors, such a pre-payment penalties, call provisions, restricted debt service reserve funds and the current interest rate environment.

iii.

Staff will present this analysis to the Finance Committee and the Board of Directors for review and approval of the recommended option(s).

iv.

In the event the District's Master Plan Documents and Long-Range Financial Plan identify large future spending plans, excess reserves can be transferred to the Capital Project Account.

( Res. No. 2018-12-1 , § 5, 12-11-2018)