| | | | | | | | | City of Independence | | AGENDA ITEM COVER SHEET |
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| | | | | | | | 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:
Staff recommends approval. |
| | | | | | | | 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.
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| | | | | | | | 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. The City Council considered the resolution on January 4, 2021 and failed by a 3-4 vote. This was brought forward for further discussion and feedback at the January 11, 2021 City Council Work Session. Updated policies using the same risk-basked methodology for WPC and Water Utilities are currently under development with planned presentations to the PUAB and City Council in February and consideration by the City Council in March. |
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Fiscal Impact:
The policy establishes a targeted range for cash balances in the City's Electric Utility Fund. Each year, the City Manager will use this target to prepare and present the annual budget.
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| | | | | | | | | Department: Finance and Administration | Contact Person: Bryan Kidney |
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| REVIEWERS: | | Department | Action | | City Managers Office | Approved | | City Clerk Department | Approved | | Finance Department | Approved | | City Managers Office | Approved | | City Clerk Department | Approved |
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| Council Action: | Council Action: |
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