HomeMy WebLinkAboutAgenda Report - September 15, 1999 E-15CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Augmentations and Transfers of Electric Utility Capital Projects Appropriations through
FY1998-99 ($2,200,629)
MEETING DATE: September 15, 1999
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council authorize augmentations and transfers of $2,200,629 to
Electric Utility Department Capital Projects through FY1998-99.
BACKGROUND INFORMATION: In response to the challenge of increased competition resulting from electric
industry deregulation, the Department developed a financial plan with the
help of Council input at a series of meetings over the last four years. Goals
were to not raise electric rates for the foreseeable future and to maintain competitiveness with the emerging electric
market. In addition, the Electric Utility Department was charged with including a strategy within its financial plan that
would insure a dependable revenue stream to the General Fund in order maintain the City's high level of public
services.
As part of the resulting financial plan, and in parallel with the Northern California Power Agency debt service
restructuring, the Department pursued financing of future City electric system capital projects (FY2000-2004) and
reimbursement of previous capital expenditures in order to better manage cash flow, reduce capital costs and shorten
the time during which a Competition Transition Charge might have to be imposed. Early this month, the City of Lodi
financing was completed and proceeds made available.
The future capital expenditures portion of the proceeds are to be reinvested in an interest bearing account until
needed in order to maximize funds available. The reimbursement portion of the proceeds are to be credited against
past capital expenditures to the maximum extent allowed by law — $5,729,977, the amount expended during the period
after December 31, 1997 through March 31, 1999. No proceeds may be used for reimbursement of capital
expenditures made prior to this period of time. This restriction requires funding the remaining $2,200,629 of past
capital expenditures which include interconnection, distribution, metering and substation construction projects from
another source. It is recommended that this balance of funds required for outstanding past capital expenditures come
from the Rate Stabilization Reserve.
APPROVED:
H. Di n Flynn -- City Mfinager
CITY OF LODI COUNCIL COMMUNICATION
FUNDING: Rate Stabilization Reserve: $2,200,629.
FUNDING AVAILABLE: _Q� l . ` n
Vicky McAthid, Finance Director
AI . Vallow
Electric Utility Director
PREPARED BY: John Stone, Manager, Business Planning and Marketing
AnWsnst
C: City Attomey
APPROVED:
H. Dixon Flynn — City Manager
RESOLUTION NO. 99-146
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING
AUGMENTATIONS AND TRANSFERS OF ELECTRIC UTILITY
CAPITAL PROJECTS APPROPRIATIONS THROUGH FISCAL
YEAR 1998-99
BE IT RESOLVED, that the Lodi City Council hereby authorizes the augmentations
and transfers of $2,200,629 to Electric Utility Capital Projects Appropriations through
Fiscal Year 1998-99.
Dated: September 15, 1999
I hereby certify that Resolution No. 99-146 was passed and adopted by the Lodi
City Council in a regular meeting held September 15, 1999 by the following vote:
AYES:
COUNCIL MEMBERS — Mann, Nakanishi and Land (Mayor)
NOES:
COUNCIL MEMBERS — None
ABSENT:
COUNCIL MEMBERS — Hitchcock
ABSTAIN:
COUNCIL MEMBERS — Pennino
ALICE M R51MCHE
City Clerk
99-146