Title
Approval of the Calculation of Profit Transfer from Electric and Gas Funds for Operations during Fiscal Year 2022.
Recommended Action
I move that Council approve the transfer of revenues from the electric and gas funds to the general fund for electric and gas operations during fiscal year 2021 in accordance with Incorporated County of Los Alamos Ordinance 02-302 and redirect these amounts to be used by the joint utility fund's FY 2022 capital improvement projects to facilitate coordination with Public Works roads projects.
Utilities Manager's Recommendation
The Utilities Manager recommends that Council approve the motion as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities reviewed this request at their regular meeting on March 16, 2022 and unanimously recommends that Council approve the motion as presented.
Body
Five percent of gross sales of the gas and electric utilities exclusive of sales to the County or the Schools are to be calculated as Profit Transfer amounts. Transfer amounts are to be computed after completion of the County’s annual financial audit. Accordingly, the transfer for each year’s activity is reflected in the following year’s budget. Ordinance 02-302 further specifies that “for the period of fiscal years 2020 through 2022, after approval of the profit transfer amounts, but prior to the transfers occurring, the Council may, through formal action, re-direct these amounts to be used within the Joint Utility System Fund for purposes designated by the Council. Those purposes may include, but are not limited to, accelerating investment in utility infrastructure, investing in utility infrastructure to facilitate coordination with roads projects, investing in utility infrastructure to facilitate economic development and housing projects, facilitating utility debt restructuring, and transferring funds between individual utility sub-funds.” In January 2022, Council passed code ordinance 02-324 to cont...
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