LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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SUPPLEMENTAL BUDGET RESOLUTION NO. 2022-080 - PENSACOLA ENERGY - ADDITIONAL FUNDING FOR BUDGETED NATURAL GAS COST
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RECOMMENDATION:
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That City Council adopt Supplemental Budget Resolution No. 2022-080.
A RESOLUTION AUTHORIZING AND MAKING REVISIONS AND APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2022; PROVIDING FOR AN EFFECTIVE DATE.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
Pensacola Energy’s (PE) budget for purchasing natural gas is being impacted by increased natural gas prices. This increase is due to below-average inventory levels in the market, increasing growth in demand, and lagging growth in domestic production. PE and Finance have evaluated the associated impacts and have determined the need for additional funding to cover natural gas costs for Fiscal Year 2022.
Estimated Gas Cost Increase $8,100,000
PRIOR ACTION:
None
FUNDING:
N/A
FINANCIAL IMPACT:
The cost of natural gas is recouped through Pensacola Energy’s rates and charges. Therefore, appropriations to the Gas Utility Inventory of Stores for Resale in Pensacola Energy’s budget resolution is offset by the same increase in revenues. Approval of the supplemental budget resolution provides for a balanced budget for Fiscal Year 2022.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
7/26/2022
STAFF CONTACT:
Kerrith Fiddler, City Administrator
Amy Miller, Deputy City Administrator - Administration & Enterprise
Don J. Suarez, Pensacola Energy Director
ATTACHMENTS:
1) Supplemental Budget Resolution No. 2022-080
2) Supplemental Budget Explanation No. 2022-080
PRESENTATION: No end