Kirkwood residents deserve open, honest information about the challenges the City faces and the steps being taken to address them. Restoring and maintaining your trust is our highest priority, and this page is part of how we intend to earn it — by putting the facts, the findings, and our response in one place, in plain language, and keeping it up to date. Here you'll find the findings of the Kirkwood Electric financial review, the corrective actions the City has already put in place, and the ongoing work to strengthen financial oversight across every department.

What Happened

In August 2025, the City identified that Kirkwood Electric had significantly exceeded its budgeted capital expenditures during the final phase of a long-term voltage conversion program. Combined with a sharp spike in capacity market volatility, this resulted in expenditures approximately $15 million over budget and required drawing from the City's General Fund and other department reserves to maintain operations.

A comprehensive review of the Electric Department's budgeting, contract management, invoice processing, and financial oversight practices determined that expenditures were generally made under properly authorized contracts. However, several procedural weaknesses reduced the City's ability to accurately monitor financial obligations as they were incurred. Residents have a right to expect that public dollars are tracked accurately and spent as intended, and we did not meet that standard. Acknowledging that plainly is the first step in making it right.

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How the City Has Responded

Since August 2025, the City Administration, Finance, Procurement, and City Council have implemented a series of corrective actions to strengthen financial oversight and prevent similar issues in the future:

• Strengthened purchase order controls so financial obligations are accurately tracked before commitments are made
• Enhanced oversight with Council approval of blanket agreements for projects exceeding $15,000
• Improved monthly and quarterly financial reporting to Council and Administration
• Revised budgeting practices, including a formal reappropriation process
• Operational cost controls, including scheduling adjustments to reduce unnecessary overtime
• An electric rate adjustment, effective November 1, 2025

Recovery of the funds advanced from the General Fund and other City reserves is anticipated over a five-year period, alongside a plan to rebuild approximately $4 million in Kirkwood Electric reserves.

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What's Next

Rebuilding trust means welcoming outside review, not avoiding it. The City is issuing a Request for Proposals (RFP) for an independent forensic audit of Kirkwood Electric's finances. The forensic audit will provide an additional layer of external review beyond the internal financial review already completed, offering residents and Council further assurance about the department's financial condition and controls.

Updates on the forensic audit — including the RFP release, the selection of the auditor, and audit findings — will be posted here as they become available.

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Documents and Reports

• After Action Report: Kirkwood Electric Financial Review
  Reviews the events that led to the Electric Department budget overspend, identifies contributing factors, and outlines recommendations to strengthen financial oversight and internal controls.

• Kirkwood Electric Rate Adjustment Information
  Explains the electric rate adjustment adopted by the City Council, including the reasons for the adjustment and how it supports the long-term financial stability of Kirkwood Electric.

• Utility Financial Solutions (UFS) Rate Design Cost Estimate
  Provides the consultant's proposed scope of work and cost estimate for completing the electric rate design presented to the City.

• Request for Proposals (RFP) - Independent Forensic Audit RFP
  Outlines the City's requirements for selecting an independent firm to conduct a forensic audit of Kirkwood Electric's finances.

• City Council Meeting Videos: Kirkwood Electric Financial Review
  View recordings of the City Council meetings where the Kirkwood Electric financial review was discussed. These public meetings provide additional context, document the City's decision-making process, and are available for anyone who wishes to review the discussions firsthand.

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Stay Informed

We're committed to keeping residents informed as this work continues. You can follow along in a few ways:

• Subscribe to Kirkwood Happenings
• Follow the City of Kirkwood on Facebook
• Follow the City of Kirkwood on Instagram
• Subscribe to the City's YouTube Channel

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Questions or Concerns

Residents with questions about the Kirkwood Electric financial review are welcome to reach out to Jessica Winter, Communications Manager at winterja@kirkwoodmo.org or 314-822-5894.