CPU Wants To Boost Cash Reserves To Over $9M

CLARKSDALE, MS (Ben Caxton) — Much of the discussion at yesterday’s meeting of the Clarksdale Public Utility board centered on a cash reserve policy. CPU currently has about $2.6 million in reserve but in his report General Manager Mark Johnson recommended establishing a reserve of approximately $9.3 million, citing legal opinions and industry best practices as the basis of that recommendation. Commissioners approved increasing the reserve, and barring unforeseen circumstances it will take the utility approximately 7 years to reach the higher level. The board also acknowledged a letter from Mayor Chuck Espy asking CPU to give “surplus cash” to the city for economic development projects; utility attorney David Hunt noted that there is no surplus and referred to the attorney general’s opinion that even if there were a cash surplus, municipal utilities must either reduce rates or transfer surplus monies to the city’s general fund.

 

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