01-10-2022 BPU RPT 07 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: JANUARY 10, 2022 SUBJECT: INTRODUCTION TO BOND FINANCING AND THE ROLE OF THE FISCAL POLICY STRATEGY OF THE UTILITY ISSUE: Consider receiving an introduction about how Riverside Public Utilities uses bond financing and the role of the fiscal policy strategy of the utility. RECOMMENDATIONS: That the Board of Public Utilities: 1. Receive the introduction on how Riverside Public Utilities uses bond financing and the role of the fiscal policy; and 2. Provide feedback to staff regarding the fiscal policies that direct the use of bond financing for Riverside Public Utilities. COMMITTEE RECOMMENDATION: On October 18, 2021, the Board of Public Utilities Customer Relations/Finance Committee with Board Chair Sanchez-Monville and Members Crohn, Oceguera and Cherney met to receive the introduction on how Riverside Public Utilities uses bond financing, the role of the fiscal policy; and to provide feedback to staff regarding the fiscal policies that direct the use of bond financing for Riverside Public Utilities. Following discussion, the item was unanimously approved with Member Oceguera abstaining, inclusive of the direction to include additional discussion including clarification on rate translations and reserve impact, debt service coverage ratio, and Clean Renewable Energy Bonds and Renewable Energy Production Incentives. 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.