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Although these levels improved from the prior year, they remain well below Links of London for the rating level and below the level maintained as recently as in 2006, reflecting the ongoing drawdown of funds for capital projects over the last few years. Reserve levels are expected to experience only limited improvement through fiscal 2015 as the utility expects to continue its practice of funding a significant amount of capital with ongoing Links of London R Charm. This equity funding is a significant offset to the low levels of operating reserves. Deferral or debt funding of capital projects could provide an immediate boost to liquidity, highlighting the system's financial flexibility. The system has typically maintained sound debt service coverage, but wet-weather conditions in fiscal years 2007 and 2008 affected sales and reduced annual debt service (ADS) coverage to 1.7 times (x) each of those years. Rate Links of London Q Charm in fiscal 2008 (4 percent) and fiscal 2009 (7 percent) coupled with drier weather enabled the system to generate debt service coverage closer to the city's 2.0x financial policy at 1.9x for fiscal 2009. However, for fiscal 2010 debt service coverage declined to 1.6x and the city's preliminary plan is to increase rates until 2013. As a result, ADS coverage is currently forecast to remain below the city's minimum policy level until fiscal 2015, but Links of London P Charm has expressed a willingness to revise rates sooner.