The Marshall Municipal Utilities Board of Public Works approved the MMU Cash Reserve Policy reserve levels during its meeting on Wednesday, November 26.

The foundation of this policy was based on American Public Power Association (APPA) guidance to establish minimum and maximum cash reserve balances. MMU Controller Tony Bersano says they also review major risk factors when establishing the reserve balances.

 

The minimums were set at $7.7 million for Electric, $3.5 million for Water, $4.7 for Wastewater, $3.1 for IT and Broadband, and $100,000 for Natural Gas. The Maximum levels were approved at $15 million for Electric, $4.5 million for Water, $5.4 million for Wastewater, $3.7 for IT and Broadband, and $122,000 for Natural Gas.

Bersano says the cash reserves help determine if MMU needs a rate increase or cost adjustment.

 

The reserve balances are updated annually during the budgeting process.