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Home My WebLink AboutOrdinance - 2014-O0093 - Budget FY 2013-14 Amendment #29 - 06/26/2014First Reading June 12, 2014 Item No. 6.1 ORDINANCE NO. 2014-00093 Second Reading June 26, 2014 Item No. 5.4 AN ORDINANCE AMENDING THE FY 2013-14 BUDGET FOR MUNICIPAL PURPOSES RESPECTING THE LUBBOCK POWER AND LIGHT (LP&L) FUND TO INCREASE THE APPROPRIATION FOR PURCHASED POWER COSTS; INCREASE REVENUES FOR THE PURCHASED POWER RECOVERY FACTOR; INCREASE THE APPROPRIATION FOR THE PAYMENT IN LIEU OF PROPERTY TAX AND THE PAYMENT IN LIEU OF A FRANCHISE FEE; INCREASE THE UTILIZATION OF FUND BALANCE; PROVIDING FOR FILING; AND PROVIDING FOR A SAVINGS CLAUSE. WHEREAS, Section 102.010 of the Local Government Code of the State of Texas authorizes the City Council to make changes in the budget for municipal purposes; and WHEREAS, in accordance with the City Budget Ordinance the City Council shall approve all transfers between funds and departments; and WHEREAS, the City Council deems it advisable to change the FY 2013-14 Budget for municipal purposes and reallocate funds as follows; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT the City Council of the City of Lubbock hereby approves changes to the City of Lubbock Budget FY 2013-14 (Budget Amendment #29) for municipal purposes, as follows: I. Amend cost center 7315, "Electric Purchased Power", by increasing the appropriation for purchased power costs by $17.0 million, from $133,497,676 to $150,497,676. I1. Amend fund 211, "Electric Operating Fund", by increasing revenues for purchased power cost recovery factor revenues (PPRF revenues) in the amount of $17.0 million, from $194,743,513 to $211,743,513. III. Amend fund 211, "Electric Operating Fund", by increasing the appropriation for the payment in lieu of property taxes (transfer to the General Fund) in the amount of $170,000, from $1,995,177 to $2,165,177. IV. Amend fund 211, "Electric Operating Fund", by increasing the appropriation for the related to the payment in lieu of a franchise fee (transfer to the General Fund) in the amount of $850,000, from $9,975,585 to $10,825,885. V. Amend fund 211, "Electric Operating Fund', by increasing the utilization of fund balance in the amount of $1,020,000 due to the increased transfers to the General Fund. SECTION 2. THAT a copy of the changes made to the City of Lubbock Budget pursuant to this Ordinance shall be filed with the City Secretary and County Clerk of Lubbock as required by law. SECTION 3. THAT should any section, paragraph, sentence, clause, phrase or word of this Ordinance be declared unconstitutional or invalid for any reason, the remainder of this Ordinance shall not be affected thereby. AND IT IS SO ORDERED Passed by the City Council on first reading on June 12, 2014 Passed by the City Council on second reading on June 26, 2014 ,Azz C.'ROBERTSON, MAYOR ATTEST: City Secretary v APPROVED AS TO CONTENT Cheryl Brffck Executive Director of Budget APPROVED AS TO FORM: Amy ims -i L_--� A ity Attorney RESOLUTION WHEREAS- Lubbock Power & Light is the municipally owned public power utility of the City of Lubbock; WHEREAS, the purpose of the budget for Lubbock Power & Light is to achieve a long-term stable and positive financial condition of Lubbock Power & Light by exercising integrity, prudence. responsible stewardship. and planning accountability; WHEREAS. the commodity price of natural gas has increased unexpectedly and thereby increased the cost of wholesale electricity: WHEREAS. the Electric Utility Board is charged with approving an annual budget and submitting a budget and any amendments thereto for Lubbock Power & Light to the City Council pursuant to Division 12. Section 2.03.415(a) of the Code of Ordinances of the City of Lubbock; NOW THEREFORE: BE IT RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF LUBBOCK: THAT the Electric Utility Board request that the City Council amend the Budget for Lubbock Power & Light for fiscal year 2013-2014, such amendment being attached to this resolution and incorporated herein as though set forth fully herein, and, as amended, Lubbock Power & Light's budget shall be adopted as the part of the official City of Lubbock Budget for fiscal year 2013- 2014. Passed by the Electric Utility Board Ihis,&Jay of/* . 2014 n l� Greg Tagor. CAIrman ATTEST: Mjs Conwright, Board Secr a y APPROVED AS TO CONTENT: Page 1 of Gary Zhen CEO/Dimctor of Electric Utilities APPROVED AS TO FORM: Todd Kimbrough General Counsel Page 2 ort ® Lubbock Power 8 Light Electric Utility Board Agenda Item Summary Budget Amendment FY 2013-14 Meeting Date: May 20, 2014 Summary: Consider a budget amendment, amending the FY 2013-14 Operating Budget to increase the appropriation for purchased power costs; increase revenues for the purchased power recovery factor; increase the appropriation for the payment in lieu of property tax and the payment in lieu of a franchise fee; and increase the utilization of fund balance. Background/Fiscal Impact: 1.) Amend cost center 7315, "Electric Purchased Power", by increasing the appropriation for purchased power costs by $17.0 million, from $133,497,676 to $150,497,676. Staff monitors the purchased power costs on a monthly basis and this cost center is expected to exceed the original budget by $17.0 million due to large, unforeseen increases in natural gas prices. Gas prices are currently 15.49% higher than this time last year, and are expected to be an average of 20.34% higher for FY 2013-14 compared to FY 2012-13. 2.) Amend fund 211, "Electric Operating Fund", by increasing revenues for purchased power cost recovery factor revenues (PPRF revenues) in the amount of $17.0 million, from $194,743,513 to $211,743,513. The FY 2013-14 appropriation for PPRF revenues needs to increase to offset the increased expenses related to purchased power costs. 3.) Amend fund 211, "Electric Operating Fund", by increasing the appropriation for the payment in lieu of property taxes (transfer to the General Fund) in the amount of $170,000, from $1,995,177 to $2,165,177. The amendment is necessary due to the increase in PPRF revenues. 4.) Amend fund 211, "Electric Operating Fund", by increasing the appropriation for the related to the payment in lieu of a franchise fee (transfer to the General Fund) in the amount of $850,000, from $9,975,585 to $10,825,885. The amendment is necessary due to the increase in PPRF revenues. 5.) Amend fund 211, "Electric Operating Fund', by increasing the utilization of fund balance in the amount of $1,020,000 due to the increased transfers to the General Fund. ® Lubbock Power &Light Electric Utility Board Agenda Item Summary Budget Amendment FY 2013-14 Meeting Date: May 20, 2014 IstA.ended 2nd Anended FUNDING SOURCES FY 2013-14 fY2013.14 FY 2013-14 (..Amended Interest Earnings $ 154,158 S 154,158 $ 154,158 S - Rentak and Recoveries 469,267 469,267 469,267 - SoleofSteaMFquipment/Fa.khings 189,485 189,485 189,485 - SalesTaxCoornission 17,164 17,164 17,164 - CenemlConsu.ersMetered 194,743,513 194,743,513 211,743,513 17,00,0110 Municipal Sales 6,063,585 6,063,585 6,063,585 - Street light Electricity Contra Account O4fSysle.Saks Fees and Charges Outside Work Orders Tampering Fees Miscellaneous Trens far In. Other Funds TOTALF'UNDING SOURCES (1,289,394) (1,289.394) (1189,394) - 11142, 210 11,242,210 11.242210 - 3,530,348 3330,348 3330,348 - 484331 484,331 484,331 - 284,70 284.706 284,706 - 240,384 240,384 240,384 - 299,111 299,111 299,111 $216,428,868 5216,428,868 $233,428,868 S 17,00000 ULPARIMFN'f I.EVF,LEXPPNSES Compensation S 16,548,753 S 16348,753 S 16,548,753 S - Benefits 7,297,089 7197,089 7,297,089 - Supplies Less Purchased Power Casts 1,863,840 1,563.840 1,863.840 - Purchased PowerCosts 133,497,676 133,497,676 150,497,676 17.000,000 Maintenance 4,146,539 4,146,539 4,146,539 - ProfessionaVfmming 3,194,741 3,194.741 $194,741 - OtherCharges 1,609,068 1,609,068 1,609,068 Scheduled Charges 4,828,412 4,828,412 4,825,412 Capital Outlay/Roi.bursennenls 115,000 115,000 115,000 TOTA L DEPARTMENT LEVEL EXPENSES $173,101,118 S173,10LU7 $190,101,117 S 17,000,000 t UNU IJ:VYL EXPENSES Net Debt Service S 17,501,061 $ 17.501,061-S 17301,061 S - Masterlease 5,940 5,940 5.940 Indirect Cost Allocation 1,052,997 1,052,997 1,052,997 In lieu ofF.nchise Tax -General 5,985331 5,985,531 6,495,531 510000 In Lieu ofFmnchise Tax. Calaway 3,990,354 3,990,354 4,330,354 340,000 In lieu of Property Tax 1.995,177 1,995,177 2,165,177 170,000 Transfer to Electric Capital 10,789,250 9,034,250 9,034,250 - Reimhursereant- Personal Services (1,884,393) (1.884,393) (1,884,393) - Rei.burserrent- Supplies 0,884,393) (1,884,393) (1,884393) - Reimbursement - Other Charges (779,108) (779,108) (779.108) - Reimbursement - Data processing (779,108) (779,108) (7]91108) TOTAL FUND LEVEL EXPENSES S 35,993,309 S 34,738,309 $ 35,258309 $ 1,020,000 TOTALEXPENSFS 5209,094,426 5207,339,426 5225,359,426 S 18,020(00 ® Lubbock Power &Light Electric Utility Board Agenda Item Summary Budget Amendment FY 2013-14 Meeting Date: May 20, 2014 Recommendation: Staff recommends Board approval of the attached budget amendment.