Title
Incorporated County of Los Alamos Code Ordinance No. 02-280; An Ordinance to Amend Section 40-64 of the Los Alamos County Code of Ordinances to Provide Authority to Council and Board of Public Utilities to Transfer Revenues or Funds of a System to Another System.
Recommended Action
I introduce, without prejudice, Incorporated County of Los Alamos Code Ordinance No. 02-280; An Ordinance to Amend Section 40-64 of the Los Alamos County Code of Ordinances to Provide Authority to Council and Board of Public Utilities to Transfer Revenues or Funds of a System to Another System and ask the staff to assure that it is published as provided in the County Charter.
Utilities Manager Recommendation
The Utilities Manager recommends introduction of the code ordinance as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities recommends introduction of the code ordinance as presented. (See attached endorsement letter.)
Body
County ordinance currently does not allow for one utility sub-fund to subsidize another. While loans between utilities are allowed so long as market rate interest is applied, outright transfers from one sub-fund to another is prohibited. The proposed ordinance 02-280 would add language permitting transfers between utilities systems with concurrence of both the Board of Public Utilities and the County Council. This necessity of both entities agreeing to the transfer would allow for flexibility in only rare circumstances. Should Council adopt the ordinance, it would be with the understanding that such fund transfers in the future would only be done rarely and only with a very compelling reason.
The present circumstances are extremely unusual with the County needing to replace two wastewater treatment plants in a relatively short time frame, and the gas fund having a relatively large reserve fund balance due to the change to a pass-through commodity rate. Transferring the approximately $2-3 million gas rate sta...
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