HomeMy WebLinkAbout138 - 12/04/2018 - APPROPRIATING UNANTICIPATED REVENUE IN THE LIGHT AND POWER FUND FOR PURCHASED POWER EXPENSES ORDINANCE NO. 138, 2018
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE IN THE LIGHT AND
POWER FUND FOR PURCHASED POWER EXPENSES
WHEREAS, through October 2018, the Light & Power Utility Energy Services Division
received unanticipated revenues from retail operation of the electric utility in the amount of
$2,800,000; and
WHEREAS, through October 2018, the Light & Power Utility Energy Services Division
also experienced unanticipated purchased power expenses under energy purchase transactions
with Platte River Power Authority (in the amount of $2,900,000), which purchases were
necessary for retail operation of the electric utility; and
WHEREAS, Utilities staff recommends aligning unanticipated Light & Power Utility
operating expenses and revenues with the approved 2017-2018 budget to reconcile realized
differences in budgeted amounts and minimize potential impacts to enterprise fund reserves,
which will require an appropriation of$2 500,000 from unanticipated revenues in the Light and
Power Fund received in fiscal year 2018; and
WHEREAS, Utilities staff recommends Council appropriate these unanticipated Light &
Power Utility Energy Services Division revenues received through October 2018 to fund the
unanticipated excess energy purchase costs necessary to operate the City's electric utility during
that period; and
WHEREAS, appropriating unanticipated Light & Power Utility Energy Services Division
revenues as recommended will serve the purpose of paying City electric utility operating costs;
while maintaining funds for the replacement of depreciated property and the extension,
improvement and betterment of said utility for the benefit of electric utility rate payers; and
WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon
recommendation of the City Manager, to make supplemental appropriations by ordinance at any
time during the fiscal year, provided that the total amount of such supplemental appropriations,
in combination with all previous appropriations for that fiscal year, does not exceed the current
estimate of actual and anticipated revenues to be received during the fiscal year; and
WHEREAS, this appropriation benefits public health, safety and welfare of the citizens
of Fort Collins and serves the public purpose of supporting the delivery of essential government
services, including electric power and emergency communication; and
WHEREAS, the City Manager has recommended the appropriation described herein and
determined that this appropriation is available and previously unappropriated from the Light and
Power Fund and will not cause the total amount appropriated in the Light and Power Fund to
exceed the current estimate of actual and anticipated revenues and reserves to be received in that
fund during the 2018 fiscal year.
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NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated from unanticipated revenue in the Light
and Power Fund the sum of TWO MILLION FIVE HUNDRED THOUSAND DOLLARS
($2,500,000) for purchased power expenses.
Introduced, considered favorably on first reading, and ordered published this 20th day of
November, A.D. 2018, and to be presented for final passage on the 4th day of December, A.D.
2018.
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Passed and adopted on final reading on the 4th day of December, A.D. 2018.
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