APS strokes retirees while cash reserves double; will sextuple.

APS has announced, through the Journal, link, that they have doubled their cash reserves from about $17M to about $36M since 2010.

APS CFO Don Moya is recommending, in the next few years, increasing the cash reserves to 10% of the budget; sextupling the 2010 reserves.

There is an advantage to having large cash reserves; for one thing it improves bond ratings which lowers the interest rate APS pays on money it borrows for capital improvements.

Growing the cash balance while telling retired teachers they are not going to receive a promised retirement benefit because the district "can't afford" to keep its word, is likely to not sit well with the 1800 retired teachers who got shafted in the process, link.




photo Mark Bralley