Combined Utility System (CUS)
3
Combined Utility System (CUS) Proposed Use of the CUS General Purpose Fund as Temporary Appropriation Mechanism for CUS CIP
description
Combined Utility System (CUS). Proposed Use of the CUS General Purpose Fund as Temporary Appropriation Mechanism for CUS CIP. Background. The Water and Wastewater (W&WW) CIP utilizes a commercial paper line (CP) to appropriate capital projects The current commercial paper line is $600M - PowerPoint PPT Presentation
Transcript of Combined Utility System (CUS)
Combined Utility System (CUS)Proposed Use of the CUS General Purpose Fund as
Temporary Appropriation Mechanism for CUS CIP
BackgroundThe Water and Wastewater (W&WW) CIP utilizes a
commercial paper line (CP) to appropriate capital projectsThe current commercial paper line is $600MIncreasing by $100M to meet normal demand
The FY11 $370M W&WW CIP was not fully executed due to issues related to the rate validation suit (settled in favor of the City in April 2011)Caused a $234M CIP carry forwardCUS will appropriate this carry forward in FY12 and FY13.
The CUS needs more appropriation capacity for FY12 through FY14 to accommodate this need
ProposalThe CUS proposes to temporarily appropriate up to $100M from
the CUS General Purpose Fund to support these higher W&W CIP appropriationsNo intention of spending the cash, just needed for appropriationBank liquidity in the market has contracted and remains expensiveThis allows us to avoid or delay need for additional CP capacity
RCA to approve this appropriation will be brought to City Council next week
The CUS & The City’s Financial Working Group request the recommend approval of this item.
