Commission approves $2.7 million transfer from reserve to cover near‑term bills

The Hibbing Public Utilities Commission voted July 21 to transfer $2,700,000 from its 4M reserve to the operating account to ensure staff can run an imminent check run and cover scheduled payments.

Paul, a utility staff member who presented the cash‑flow analysis, told commissioners the checkbook balance was about $989,585 and that in‑house capital invoices totaled roughly $2,493,278 with other accounts‑payable around $2,787,253. He said timing for PFA loan reimbursements and several predictable large payments (including an interest payment on the PFA loan and a PEIP obligation) were a major variable for short‑term liquidity. "The timing is the those piece of the puzzle," Paul said, summarizing his concern that reimbursements will lag project expenditures.

Commissioners expressed unease about approving a large transfer without a clearer short‑term plan. Commissioner Michelle said she was "really uncomfortable moving any kind of money without having the breakdown in front of us" and proposed a focused review. The commission agreed to meet Tuesday, July 28 at 8 a.m. for a special financial session to review detailed transaction records and prepare an interim plan.

The motion to transfer $2,700,000 passed by voice vote. Commissioners directed staff to provide the spreadsheets Paul used as a primer for the July 28 meeting and to identify the predictable large payables and any other timing risks. The commission also asked staff to clarify whether previously planned quarterly transfers had been executed and to track the specific accounts tied to the 4M fund.