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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: FY 2023-24 Glendale Water and Power Transfer
1. Resolution Reducing the Percentage of Operating Revenues to be Transferred from Glendale Water and Power (Electric) to the General Reserve Fund for Fiscal Year 2023-
24. COUNCIL ACTION
Item Type: Action Item
Approved for June 4, 2024 calendar
EXECUTIVE SUMMARY
The City Charter, Section 22, Article XI, requires the transfer of 25% of the department of Glendale Water and Power’s annual operating electric revenues to the General Reserve Fund unless a lower percentage transfer is approved by the City Council. The City has historically transferred an amount less than 25% by adopting a resolution setting a lower amount. For FY 2023-24, the estimated amount to be transferred out of Glendale Water and Power Electric Surplus Fund is $24,305,100, or 10.0% of the Electric Works estimated Operating Revenue.
RECOMMENDATION
That the City Council approve the attached resolution reducing the percentage of operating revenues to be transferred from Glendale Water and Power (Electric) to the General Reserve Fund for Fiscal Year 2023-24.
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ANALYSIS
The attached resolution, as required by the Charter, provides for the annually budgeted transfer of the operating revenue from the Glendale Water and Power Electric Surplus Fund to the General Reserve Fund for the fiscal year ending June 30, 2024.
For FY 2023-24, the estimated amount to be transferred out of Glendale Water and Power Electric Surplus Fund is $24,305,100, or 10.0% of the Electric Works estimated Operating Revenue. The attached resolution authorizes this transfer from the Electric Works Revenue Fund to the Glendale Water and Power Electric Surplus Fund, transferred from the Glendale Water and Power Electric Surplus Fund to the General Reserve Fund, and further for the transfer from the General Reserve Fund to the General Budget Fund provided the total balance in the General Reserve Fund before this transfer exceeds fifty percent (50%) of the total amount of the anticipated ad valorem tax receipts for Fiscal Year 2023-24 as required by the City Charter.
For FY 2023-24 this transfer is 10.0% of the annual electric works operating revenue received. Thus, the actual amount transferred will vary based on the actual electric operating revenues received by June 30, 2024. It should be noted that the transfer of the operating water revenues to the General Reserve Fund was terminated beginning 2011.
STAKEHOLDERS/OUTREACH
Not Applicable.
FISCAL IMPACT
The Glendale Water & Power Electric Surplus Fund 10.0% Transfer to the General Reserve Fund (Estimated $24,305,100) was approved as a part of the FY 2023-24 budget. The funding is outlined below:
Existing Appropriation
Amount Account String Funding Source
$24,305,100 GL: 48010-5820-GWP-4505-P0000- Electric Works Revenue Fund
ENVIRONMENTAL REVIEW (CEQA/NEPA)
This item is considered a ministerial activity and therefore, not subject to CEQA review.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1: The City Council can decline to approve the Resolution reducing the percentage of operating revenues to be transferred from Glendale Water and Power (Electric) to the General Reserve Fund for Fiscal Year 2023-24. Doing so will have an adverse negative financial impact in the General Fund and the services the City provides. 3{{section.number}}e
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Alternative 2: The City Council may consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Jason Bradford, Director of Finance/Information Technology Prepared by:
Adrine Gdakian, Budget Associate
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Not Applicable.