Title
Review of Utilities Financial Guidelines
Body
Presentation and draft of proposed changes to the current Utilities Financial Guidelines, which was approved by the Board of Public Utilities on August 16, 2016. The attached draft of the Utilities Financial Guidelines includes all proposed revisions, with significant changes highlighted. The proposed revisions are intended to strengthen DPU's long-term financial stability and align reserve targets with current operational needs. Below is a summary of the significant changes from the current guidelines:
Steady Funding of Reserves (Section IV) - Outlines a structured plan to increase and maintain reserve balances over the next 10 years.
Inclusion of Inflation and Contractual Requirements (Section III.B) - Update to the General Financial Guidelines to account for inflationary impact and contractual obligations.
Defined Reserve Targets for Utility Sub-Funds (Section V) - Establish specific target yearly reserve amounts to be included in the Statement of Funds for each sub-fund to ensure consistent yearly funding of reserves.
Attachments
A - Draft of Proposed Utilities Financial Guidelines
B - Approved Utilities Financial Guidelines - on 08/16/2016
C - Draft Statement of Funds FY2027-FY2036
D - Draft Ten-Year Forecast FY2027-FY2036