We're looking into internal borrowing from one capital reserve to another (as permitted under the community charter) and came up with the DRAFT guideline below. I'm curious what others have done and what accounting structure was set-up to plan and report out on this. Thanks for sharing your thoughts!
To provide more financial flexibility and to minimize borrowing costs, DNV will utilize internal borrowing to meet capital funding requirements when the following conditions can be met:
- An analysis of the affected reserve indicates funds are available
- The use of these funds will not impact the reserve’s current or future operations
- A clearly defined and attainable payback plan is in place with interest charges at the average rate or return (ROR) on the District’s investment portfolio at the time of borrowing