Minutes 04/20/1981 - Laserfiche WebLink

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60 MONDAY APRIL 20, 1981 Summary This settlement is still relatively expensive to the City, since we are in fact only reducing the rate of increase for a twelve-month period. It appears to be the best we are going to do, however, and it is recommended by our attorneys (Northcutt Ely) and engineers (Southern Engineers). Electric Director Bob Corekin and I concur. Special thanks is due to Mayor Greene and Councilman Oakes for their assistance with the negotiations. Statement by. Mayor Greene Attached please find a worksheet which I hope will be helpful to Council in deciding how to treat the additional revenues generated by the settlement with APCo. The worksheet shows that the February 2, 1981 wholesale power price increase will require the use of $115,985 of Electric Department Surplus in the fiscal year in order to Eake the budgeted $565,266 transfer from the Electric Department to the General Fund, Next year's proposed Budget anticipates that Electric Department expenses plus the transfer of $550,000 to the General Fund will fall short of revenues by $114,149; and Mr. Edmonds proposes that we tap the Ridgeway Escrow Account for $180,000, fund the $114,149 shortfall, and return $65,851 to the Electric Department Surplus. ($180,000 - $114,149 = $65,851.) Mr. Edmonds estimates that the APCo settlement will improve next year's Electric Department profits by $320,000, and he has proposed four alternatives for Council to consider in budgeting the settlement. As I see it, we can increase next year's transfer from the Electric Department to the General Fund by $90,000, repay $115,985 to the Electric Department Surplus used this year to pay for General Fund Operating Expenses, and eliminate the transfer from the Ridgeway Escrow Account proposed to balance next year's Budget. Very simply, this will improve next year's General Fund revenues by $90,000 while leaving all Electric Department Surplus Accounts intact. This will require the following adjustments to the Proposed Budget: REVENUES: . . . $325,000 -180,000 Add: APCO Refund . . . . . . . . . . . . . Subtract: Transfer from Ridgeway Reserve , . Total Revenue Adjustments . . . . . . . . . . . $145,000 EXPENSES: Add: Purchased Power Costs ...,. Subtract: Legal and Engineering Costs Add: Transfer to General Fund ... . . . $ 25,000 - 20,000 90,000 Total Expense Adjustments . . . . $ 95,000