. >> the last item is the unbalanced policy report by charles perl. >> good afternoon commissioners charles perl deputy chief financial officer this item today is a quick update of commission policy progress reports that you requested we bring forward to you and if the content or format needs revisions or updates just let us know we'd be happy to incorporate that in the subsequent presentations and the first one is the fund balance reserve policy and as a reminder government accounting is fund based and the puc has 3 funds water sewer and power, the fund balances are considered our savings account representing cash leftover each year after paying our bills to our vendors and our reserve policy is to set a target for keeping a certain amount in a savings account in order to offset the rate setting as well as to accommodate emergencies and un expected expenses. so this commission took action 5 years ago in 2010 to set our fund balance reserve policy and we consider that as that as a prudent fiscal management practice and you might recognize the check boxes we've tried to incorporate this grap

. >> good afternoon, commissioner charles perl, this item before you today is to request authorization to remupbd existing water revenue bonds to a lower interest rate. we continue to see interest rates at historic lows and given the situation with reduced water revenues and the water enterprise we wanted to take advantage of this at that time before the expected rise in interest rates later this year. we have been keeping an eye on these bonds to refund and thought this would be a good time to bring this to you. so if i could just have the slides? so the good thing with these revenue bonds is that the board of supervisors has already given us preapproval to refund bonds. the basic concept here is that we aren't requesting any new authorization, we're actually trying to save the organization and rate payers money. in 2012 a couple years ago we received the authorization to refund up to $500 million in bonds from the board of supervisors. we used a little bit of that in that year, 2012, so we are coming forward to you today to use the rest of that existing authorization. so what we're p