HomeMy WebLinkAbout1979-022-02/20/1979-AMENDING CERTAIN PROVISIONS OF RESOLUTION NO 77-68 RELATING TO ELECTRIC UTILITY RATES OF THE CITY'S RESOLUTION NO 79-22
OF THE COUNCIL OF THE CITY
OF FORT COLLINS AMENDING CERTAIN
PROVISIONS OF RESOLUTION NO 77-68
OF THE COUNCIL OF THE CITY OF FORT
COLLINS RELATING TO ELECTRIC UTILITY
RATES OF THE CITY'S LIGHT AND POWER
DEPARTMENT AND ESTABLISHING A RESERVE
POLICY FOR RETAINED EARNINGS IN THE
LIGHT AND POWER FUND
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows
Section 1 That Section 2 (B) of Resolution No 77-68 of the Council
of the City of Fort Collins be amended to read as follows
°Section 2 (B) Rates Electric rates will be based upon
the cost of service approach to reflect
full distribution of costs to appro-
priate rate classes in order to effect
equitable sharing of costs Rates shall be
established and maintained at a level
sufficient
1 To pay the full cost of operation and
maintenance of the electric utility in
good repair and working order,
2 To pay the principal and interest on
all revenue bonds issued by the elec-
tric utility of the City,
3 To provide a debt-service reserve in an
amount equal to one-half (1/2) of the
average annual debt-service of the
Light and Power Fund,
4 To provide an operating reserve equal
to eight percent (8%) of budgeted
operating expenditures,
5 To provide a future capital improve-
ments reserve in an amount which shall,
as nearly as possible, be equal to the
average annual cost (excluding debt
financing) of the approved five-year
capital improvement plan, considering
any changes which from time to time may
be made in such plan provided, however,
that the amount in such reserve shall
be permitted to vary from year to year
if approved by the Council during the
annual budget process for the purposes
of achieving stability and predicta-
bility in rates and to minimize changes
adverse to electric consumers,
6 To provide an invested in utility plant
reserve in an amount equal to the total
net fixed assets of the fund less the
long-term debt contributions in aid of
construction, and bond escrow liabi-
lities of such fund,
7. To pay into the general fund of the
City of Fort Collins in lieu of taxes
and franchise permits a percentage of
revenue from the sale of electric
energy and/or specified mills per kwh
as defined below
YEAR FORMllLA
1978 7.5% of revenue
1979 3 75% of revenue
plus 1 0381 mils/kwh
1980 and
thereafter 1.15% of revenue plus
6 mils/kwh
Payments will be made monthly on the
basis of actual revenue and kwh energy
sales The Department will submit to
the Council at budget time an estimate
of the amount of taxes and franchise
fees that would be chargeable against
the Light and Power Department if the
utility were privately owned "
Section 2 That Section 2 (C) of Resolution No. 77-68 of the Council
of the City of Fort Collins be amended to read as follows
"Section 2 (C) . Excess Retained Earnings After
retained earnings are reserved as
specified in Section 2 (B) above, any
excess retained earnings shall be
added to the future capiLai improve-
ments reserve "
Passed and adopted at regular meeting this 20t of February, A D
1979
or
ATIPST
-Zee�,
C Clerk
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