• Perform a risk-based reserve analysis for the County using chance-based simulation. The analysis shall take into consideration: o The County’s desire to maintain its AAA bond rating with S&P; o Use of budget contingencies (e.g., revenue replacement budget contingency) as a means of planning for certain foreseeable risks; o Hazards identified in the County’s Hazard Mitigation Plan; o Risks identified through written or virtual interviews of County Management; o Revenue risk; o Cash-flow risk; o Public health risk; o Public safety risk; o Other risks identified by the Contractor; and o The County’s existing insurance policies. • Develop and deliver to the County for its perpetual use the model used to perform the chance-based simulation, which model shall be in Microsoft Excel or other format designated by the County. • Identify potential risks for which parametric insurance might be an appropriate reserve supplement tool. • Recommend the parameters of a risk-based reserve policy, which shall include, but not be limited to, the following: o A range of desired reserves, with a floor and ceiling; o Reserve tranches that can be used to optimize investment strategies based upon the likelihood that the tranches will be needed to cover the risks for which the reserves were established; o Risks to be pooled, including an assessment and recommendation concerning whether the County’s special revenue funds should have separate reserve requirements or whether the risks to those funds should be pooled in a general fund reserve or otherwise; and o A policy on interfund borrowing.
