06-25-2018 BPU RPT 11 - Laserfiche WebLink

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W A T F R E N E R G Y L RIVERSIDE PUBLIC UTILITIES .�W& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: JUNE 25, 2018 ITEM NO: 11 SUBJECT: APPROVAL OF UPDATED RIVERSIDE PUBLIC UTILITIES FISCAL POLICIES AND THE CASH RESERVE POLICY ISSUE: Recommend that the City Council Finance Committee approve and forward the recommendation to City Council to approve the updated Riverside Public Utilities Fiscal Policies and the Cash Reserve Policy. RECOMMENDATION: That the Board of Public Utilities recommend that the City Council Finance Committee approve and forward the recommendation to City Council to approve the updated Riverside Public Utilities Fiscal Policies and the Cash Reserve Policy. LEGISLATIVE HISTORY: Senate Bill (SB) 1029 became effective on January 1, 2017. Among other things, SB 1029 requires issuers of bonds after January 1, 2017, to have adopted a "local debt policy" that contains certain enumerated items. Issuers must certify compliance with this requirement to California Debt and Investment Advisory Commission (CDIAC) at least 30 days before the pricing date for bonds (where the certification occurs on or after January 1, 2017), meaning that appropriate policies must be adopted by an issuer's governing board by the time of certification. Here are the items that SB 1029 requires the debt policy to include: (A) The purposes for which any debt proceeds may be used. (B) The types of debt that may be issued. (C) The relationship of the debt to, and integration with, the issuer's capital improvement program or budget. (D) Policy goals related to the issuer's planning goals and objectives. (E) The internal control procedures that the issuer has implemented, or will implement, to ensure that the proceeds of the proposed debt issuance will be directed to the intended use. Page 100