| | | | | | | | | City of Independence | | AGENDA ITEM COVER SHEET |
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| | | | | | | | Agenda Title:
City of Independence Electric Fund Balance Presentation |
| | | | | | | | Recommendations:
Staff recommends giving feedback to staff in order to prepare a policy for Council consideration of Resiliency and Cash Balance Policy for the City's Electric Utility Fund. |
| | | | | | | | Executive Summary:
The City's Finance and Administration Department initiated a process earlier this year to select a Municipal Advisor for the City's three utilities. Through that process, PFM was selected. As a part of PFM's work plan, the Finance and Administration team directed PFM to evaluate potential cost savings measures relative to refunding of IPL's outstanding debt, which currently totals $152 million. As a part of this evaluation, PFM conducted a Resiliency and Cash Balance study to ensure the utility maintained a strong financial position and was viewed favorably by bond rating agencies. The Resilience and Cash Balance study for IPL is attached. Current work is being done to complete a similar study for the other two utilities. |
| | | | | | | | Background:
On November 19, 2020 a motion was approved by the Public Utilities Advisory Board (PUAB) to support the PFM recommended Resiliency and Cash Balance Policy and move forward to City Council for approval. |
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Fiscal Impact:
Presentation includes several options if Council determines the Electric Utility Fund has excess cash balances. Fiscal Impact depends on Council direction. Once direction is determined, staff will prepare further analysis.
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| | | | | | | | | Department: Finance and Administration | Contact Person: Bryan Kidney |
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| REVIEWERS: | | Department | Action | | Finance Department | Approved | | City Clerk Department | Approved | | City Managers Office | Approved | | City Clerk Department | Approved |
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| Council Action: | Council Action: |
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