HomeMy WebLinkAboutReso 98-139 - Auth the establishment of a Special Purpose Restricted Fund, Not to be included in the Calculation of the Electric Utility Unrestricted ReservesRESOLUTION NO. 98-�
A RESOLUTION OF, THE CITY COUNCIL OF THE CITY OF
REDDING AUTHORIZING THK ESTABLISHMENT OF A SPECIAL-
PURPOSE RESTRICTED FUND, NOT TO BE INCLUDED IN THE
CALCULATION OF THE ELECTRIC UTILITY'S UNRESTRICTED
RESERVES.
WHEREAS:
A. It is beneficial to minimize the impact of periodic major maintenance of the City's Electric
Utility power generation equipment on the Electric Utility's budget in any year.
B. The City Council has adopted a debt reduction program whereby reserves in excess of the
minimum requirements are committed semi-annually to pay down debt.
C. The scheduling of periodic major maintenance is predicated on the number of equivalent
hours of running time on the Electric Utility's power generation equipment.
D. There is currently a periodic major maintenance responsibility of $296,728.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council as follows:
1. The City Council deems it to be in the best interests of the City that an Electric Utility Periodic
Major Maintenance Fund (Fund) be established for the maintenance of the Electric Utility's power
generation equipment. This Fund is to be a special-purpose restricted fund, and not to be included in the
calculation of the Electric Utility's unrestricted reserves.
2. Funds in the amount of $296,728 shall be transferred from the Electric Utility's reserve account
into the Fund to bring the Fund current with the accumulated periodic major maintenance responsibility.
3. The amount added to the Fund each subsequent year shall be based on the number of equivalent
running hours accrued, multiplied by the then -current estimated cost of major maintenance per equivalent
running hour, up to the maximum amount approved for that year in the budget process.
I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at a regular
meeting of the City Council of the City of Redding on the 6' day of October, 1998, by the following vote:
AYES:
COUNCIL MEMBERS:
Anderson,
NOES:
COUNCIL MEMBERS:
None
ABSENT:
COUNCIL MEMBERS:
None
ABSTAIN:
COUNCIL MEMBERS:
None
Cibula, Kight, McGeorge and Kehoe
AVID A/ KEHOE,
Attest: / Form AP roved:
Connie Stroh ayer, Citelck W. Leonard Wing , City Attorney