Title
Ordinance No. 19-89 amending Ordinance No. 18-109 (Colorado Springs Utilities Annual Budget) for a supplemental appropriation to Colorado Springs Utilities’ budget in the amount of $9,800,000
Presenter:
Scott Shewey, Acting Chief Planning and Finance Officer
Aram Benyamin, Chief Executive Officer
Body
Summary:
Colorado Springs Utilities is presenting a request for a Supplemental Budget Appropriation. The key drivers for this request are natural gas cost increases, generating unit outages and unbudgeted, developer-driven projects.
Background:
Unplanned outages at Drake and Front Range required more than anticipated purchased power costs than planned. Natural gas prices were higher than budget early in 2019 amounts, the higher prices were masked by ECA/GCA balance collection. Additionally, there were an increased number of unbudgeted, developer-driven projects where developers make contributions in aid of construction. However, net costs related to projects have increased.
Previous Council Action:
Ordinance No. 18-109 was approved by City Council on November 13, 2018.
Financial Implications:
Base rates will not be impacted by this supplemental appropriation because the relevant funds are related to Utilities’ Electric and Gas Cost Adjustments and Contributions in Aid of Construction.
City Council Appointed Board/Commission/Committee Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
A motion to accept the Colorado Springs 2019 Supplemental Appropriation in the amount of $9,800,000 (Nine-million, eight-hundred thousand dollars).
Summary of Ordinance Language
An Ordinance amending Ordinance No. 18-109 (Colorado Springs Utilities Annual Budget) for a supplemental appropriation to Colorado Springs Utilities’ budget in the amount of $9,800,000.