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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. -1- 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. :ayor ATTEST: C 7_;1110� FORT CO 0...... ...% < " SEAL City Cl �o�0k Passed and adopted on final reading on the 4th day of December, A.D. 2018. y ATTEST: Mayor oFFORr�o C3: ty City C k SEAL H •COCORAQO• l -2-