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Combined Utility System (CUS)

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

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Combined Utility System (CUS)

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  1. Combined Utility System (CUS) Proposed Use of the CUS General Purpose Fund as Temporary Appropriation Mechanism for CUS CIP

  2. 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 • Increasing 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 forward • CUS will appropriate this carry forward in FY12 and FY13. • The CUS needs more appropriation capacity for FY12 through FY14 to accommodate this need

  3. Proposal • The CUS proposes to temporarily appropriate up to $100M from the CUS General Purpose Fund to support these higher W&W CIP appropriations • No intention of spending the cash, just needed for appropriation • Bank liquidity in the market has contracted and remains expensive • This 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.

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