Item 15: Utility Account Forgiveness Program Budget Amendment

[COSM_Admin]

Consider approval of Ordinance 2021-64, on the first of two readings, amending the City’s 2020-2021 Fiscal Year budget in the total amount of $581,600.00 to allocate funds needed for the utility account forgiveness program; and providing an effective date.

 

[MDerrick]

I'm confused as to why there isn't more information regarding the fiscal impact to Electric and water/wastewater. Staff warned this could have a negative impact, but exhibit A doesn't show me the impact.

1. Will we be able to retain the appropriate amount of funding in our fund balances for these categories? What amount is required in our fund balance for each category - I can see fund balances but don't know the amount needed.
2. Will this affect our bond rating?
3. Will this cause utility rates to increase more than the anticipated increase this year?
I hope this means that there are no negative impacts and we can indeed write off all late utility accounts, but I need to be sure.

Thanks!

 

[JHughson]

ARF shows second reading is Sept 6 but it's Sept 7. Staff wants to run the report again on Sept 7th after second reading "to ensure most up to date numbers and minimize complexity of implementing." but since we meed ON the 7th, can't this be done the day of the meeting and we can amend something minor?

I have the same question I had the night we voted on this. What is the short/long term effect on our utilities? We were already short in Stormwater and needed to raise the rates. I see it's only $14,900 but that's real money.

Effect on Fund Balance? I see we are using "Use of Fund Balance/Working Capital" for each of these. What will be the remainder in each account? What is that amount compared to what we want to keep in our emergency savings accounts (fund balance)?

 

[COSM_Admin]

Responses provided by Marie Kalka, Director of Finance:
Please see responses contained within attached memo sent from Finance, through the City Manager’s Office, regarding the impact of the Utility Account Forgiveness Program.

 

[COSM_Admin]

Additional responses provided by Marie Kalka, Director of Finance:
I have updated the spreadsheet to include the projected 2021 fund balance before and after this amendment. Please see attached and let us know if you need additional information. Thank you!