| | | | | | | | | City of Independence | | AGENDA ITEM COVER SHEET |
|
| | | | | | | | Agenda Title:
- 21-702 - A resolution directing the City Manager to implement a Resiliency and Cash Balance Policy in the City’s Utility Funds using risk-based methodology to ensure the City Utility’s have funds available to provide for long-term financial stability and system reliability; and amend Resolution 6201.
|
| | | | | | | | Recommendations:
Pass Resolution |
| | | | | | | | 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.
|
| | | | | | | | 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. |
| | | | | | | |
Fiscal Impact:
The policy establishes a targeted range for cash balances in the City's utilities. Each year, the City Manager will use this target to prepare and present the annual budget.
|
| | | | | | | | | Department: Finance and Administration | Contact Person: Bryan Kidney, Director |
|
| REVIEWERS: | | Department | Action | | Finance Department | Approved | | City Clerk Department | Approved | | Finance Department | Approved | | City Managers Office | Approved | | City Clerk Department | Approved |
|
| | | | | | | |
| Council Action: | Council Action: |
|
|