TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:May 9, 2023
SUBJECT: Additional Budget Appropriation for Utility Costs RECOMMENDATION:
1. Authorize budget appropriation and expenditure in the amount of $271,500 ($79,500 for natural gas and $192,000 for electricity) from A/C #001-0000-311- 1000 (General Fund – Fund Balance) to various department accounts for natural gas (6130) and electricity (6140) utility costs.
2. Find that this action is not a project as defined under the California Environmental Quality Act.
FINANCIAL IMPACT:
$271,500 Increase to FY 2022-23 General Fund Budget. $271,500 increase to Adopted FY 2022-23 General Fund Budget is requested to cover additional natural gas and electricity utility expenditures caused by unanticipated escalation of energy costs.
BACKGROUND:
The Facilities Division is responsible for the building maintenance of all City-owned buildings. In addition to maintenance responsibilities, the Facilities Division is tasked with the coordination of and payment to energy providers. Although over the long-term the increase of energy costs has been fairly consistent (2.5–3.0 percent annually), over the past 18 months, and specifically during the Winter of 2023, costs jumped significantly, causing the adopted budgets in many accounts to be inadequate.
DISCUSSION/ANALYSIS:
Over the course of the current two-year budget (July 2021 to present), So Cal Gas rate increases resulted in cost increases of up to 95 percent at locations such as the Grant Brimhall Library and the Civic Arts Plaza. Southern California Edison increases for the same period ranged between 12-50 percent depending on the location and rate schedule.
Additional Budget Appropriation for Utility Costs
May 9, 2023
In order to accurately compensate for these unanticipated and unprecedented energy cost increases, staff recommends approving the additional budget of $271,500 for FY 2022-23. Funds will be distributed to various accounts as shown in Attachment #1.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Elizabeth Perez, Facilities Manager
Attachments:
Attachment #1 – FY 2022-23 General Fund Requested Expenditure FIN:201-10\edp\H: \COMMON\Council\2023\Facilities\050923 Request Additional Budget for Utility Costs Staff Report.docx