HomeMy WebLinkAboutRES 08.26.1986- Fiscal IntegrityRESOLUTION
Whereas, the City Council of the City of Georgetown, Texas
desires to keep the Utility Corporation of the City a viable
operating entity with all the privelages of any Corporation;
and
Whereas, The Citizens of Georgetown being apparent stockholders
of the Corporation; and
Whereas, the Utility Corporation requires certain fiscal
attributes to demonstrate excellent fiscal status; and
Whereas, the City of Georgetown requires contribution from
the Utility Corporation for operating its General Fund for the
betterment and protection of its Citizens.
^
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF GEORGETOWN, TEXAS:
That from hence on, the City Council will protect the
Utility Corporation's fiscal integrity by assuring:
1) The profit margin will be maintained at a level
equal to or above the 150% level of debt service;
and
2) The operating reserves will be maintained at a
level equal to three (3) times the monthly
operating cost; and
3) The Corporation will initiate a dividend as
approved by the City Council acting as its'Board,
not to exceed six (6)% of its gross revenue which
will be transferred to the General Fund of the
City, which will be acting in behalf of the Citizens
as Stockholders; and
4) The activities and expenditures of the Corporation
will acknowledge the above mentioned requirements
and control its expenditures and reserves accordingly;
and
5) The self insurance fund will be excluded from these
considerations and will act as a protector of the
Corporation as a whole against general liability.
PASSED AND APPROVED this 26th day of August, 1986 by the
City Council of the City of Georgetown, Texas convened in
regular session with lawful quorem present.
`
----------