Hist and Proj Operating Receipts FY 2011 2 17 2010 - DC Water

In FY 2009, we completed a study of the operating cash reserve balances and liquidity requirements and initiated deliberate
discussions with the Board of Directors over the appropriate levels and limits. After months of discussion and consultation with our
financial management consultants, the DC WASA Board financial policy was revised to require maintaining cash equivalent to 120
days of operating costs rather than six months; but no less than a cash balance of $125.5 million. The FY 2009 actual daily average
is shown below.
_________
180-day Operating Reserve Analysis
($ in millions)
FY 2009 180-day Operating Reserve Objective
Actual Average Daily Balances
Difference
$125.5
$131.3
$5.8
The approved ten-year plan reflects continued maintenance of the reserve level as revised. As our operations and maintenance
budgets grow, our required operating and maintenance reserve levels adjust when the 120-calendar day threshold exceeds the
$125.5 million minimum, which is currently targeted in FY 2018.
Operating
Cash Reserve Balances
By Fiscal Year
($OOO's)
180,000
160,000
159,898
140,000
120,000
100,000
80,000
60,000
40,000
20,000
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Budget Overview and Performance
11-25