1. Proposed Use of the CUS General Purpose Fund as Temporary Appropriation Mechanism for CUS CIP

2. Background The Water and Wastewater (W&WW) CIP utilizes a commercial paper line (CP) to appropriate capital projects The current commercial paper line is $600M Increasing by $100M to meet normal demand The FY11 $370M W&WW CIP was not fully executed due to issues related to the rate validation suit (settled in favor of the City in April 2011) Caused a $234M CIP carry forward CUS will appropriate this carry forward in FY12 and FY13. The CUS needs more appropriation capacity for FY12 through FY14 to accommodate this need

3. Proposal The CUS proposes to temporarily appropriate up to $100M from the CUS General Purpose Fund to support these higher W&W CIP appropriations No intention of spending the cash, just needed for appropriation Bank liquidity in the market has contracted and remains expensive This allows us to avoid or delay need for additional CP capacity RCA to approve this appropriation will be brought to City Council next week The CUS & The City’s Financial Working Group request the recommend approval of this item.