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<br />TUESDAY <br /> <br />NOVEMBER 27, 1984 <br /> <br />To explain this approach, the following assumptions and/or con- <br />cepts are involved: <br /> <br />1. The figures shown in the Sewer Fund and Electric <br />Fund are our most current projections to June 30, <br />1985. <br /> <br />2. The first nut of $812,000 will be met by immedi- <br />ately transferring $300,000 from the Sewer Fund <br />and $500,000 from the Electric Fund to the Sewer <br />Bond Fund. <br /> <br />3. The second nut will be met by immediately trans- <br />ferring the total Ridgeway Hydro Escrow to the <br />Sewer Bond Fund and investing it for 42 months at <br />12% interest. <br /> <br />~ <br /> <br />4. A new Electric Fund Capital Reserve would be <br />created and infused with $300,OOO*each year for <br />the next eight fiscal years. At the end of this <br />period, and assuming 11% interest compounded, this <br />reserve would contain $3,950,000 and be generally <br />sufficient to satisfy projected Electric <br />Department capital improvements. <br /> <br />Alternative B <br /> <br />Schematically, Alternative B takes shape as follows: <br /> <br />SEWER FUND <br /> <br />ELECTRIC FUND <br />Budgeted Surplus Hydro Escrow <br />$2,362,000 $2,300,000 <br /> <br />$620,000 <br /> <br /> <br /> <br />$300,000 <br />$130,000 <br />\ <br />Annual <br /> <br />$1,][0,000 <br /> <br />ELECTRIC FUND <br />CAPITAL RESERVE <br /> <br />-0- <br /> <br />-0- <br /> <br />This approach is based on the following assumptions and/or <br />concepts: <br /> <br />1. Again, the figures shown in the Sewer Fund and <br />Electric Fund are projections to June 30, 1985. <br /> <br />2. As in Alternative A, the first nut of $812,000 <br />will be met by immediately transferring $300,000 <br />from the Sewer Fund and $500,000 from the Electric <br />Fund to the Sewer Bond Fund. <br /> <br />* Note: Council's action thereon reflects intention to <br />transfer $500,000 each of next eight fiscal years. <br /> <br />47 <br />