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HomeMy WebLinkAboutResolutions - No. 2007-25RESOLUTION NO. 2007-25 A RESOLUTION OF THE LODI CITY COUNCIL REDUCING THE ELECTRIC UTILITY FUND PAYMENT IN -LIEU OF TAXES AMOUNT AS PREVIOUSLY ESTABLISHED AT 12%TO AN AMOUNT ESTABLISHED BY FORMULA WHEREAS, over the course of the last three budget years the City Council approved reductions in the annual in -lieu payment (a percentage of the electric utility revenues transferred to the General Fund) from 12% to the current 10.6%, resulting in a reductiun of the transferred amount by more than $900,000; and WHEREAS, the General Fund has been able to absorb the loss in revenues as a result of measures taken to reduce costs. In order to ensure that this reduction becomes permanent, staff recommends that a base transfer amount of $6,779,000 be established and that the base amount be adjusted by the annual growth in the number of electric customers served; and WHEREAS, the reduction in the transfer helps to keep electric utility rates below Pacific Gas and Electric rates in most customer classes. By establishing a base amount for the transfer, the transfer amount as a percentage of revenues will decrease and be more comparable to other jurisdictions, for which the transfer is a lower percent of revenues. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby reduce the Electric Utility Fund payment in -lieu of taxes amount as previously established at 12% to an amount established by formula. Dated: February 7,2007 hereby certify that Resolution No. 2007-25 was passed and adopted by the City Council of the City of Lodi in a regular meeting held February 7, 2007, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Katzakian, Mounce, and Mayor Johnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS— None ABSTAIN: COUNCIL MEMBERS — None RAND1 JOHL City Clerk 2007-25