| | | | | | | | | City of Independence | | AGENDA ITEM COVER SHEET |
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| | | | | | | | | BILL NO. 21-738 | Res.No: 6666 |
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| | | | | | | | Agenda Title:
21-738 - A resolution directing the City Manager to implement a Resiliency and Cash Balance Policy in the City’s Water Utility Fund using risk-based methodology to ensure the City Utility’s have funds available to provide for long-term financial stability and system reliability. |
| | | | | | | | Recommendations:
Pass resolution |
| | | | | | | | Executive Summary:
The City had our Utility Municipal Advisor, PFM, conduct a Resiliency and Cash Balance study for the three public utilities to ensure they maintain a strong financial position and was viewed favorably by bond rating agencies. The Resiliency and Cash Balance study for Water is attached.
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| | | | | | | | Background:
On February 18, 2021 a motion was approved by the Public Utilities Advisory Board (PUAB) to support the PFM recommended Resiliency and Cash Balance Policy for the Water Department and move forward to City Council for approval. The PUAB recommended approval of applying the excess cash identified in the report to fund the Main Replacement Program. The City Council was presented with the policy recommended by PFM at the February 22, 2021 Work Session.
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Fiscal Impact:
The policy establishes a targeted range for cash balances in the City's water utility. 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, Director |
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| REVIEWERS: | | Department | Action | | Finance Department | 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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