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File #: 2022-080    Version: 1 Name:
Type: Resolution Status: Passed
File created: 7/22/2022 In control: City Council
On agenda: 8/18/2022 Final action: 8/18/2022
Enactment date: 8/26/2022 Enactment #: 2022-080
Title: SUPPLEMENTAL BUDGET RESOLUTION NO. 2022-080 - PENSACOLA ENERGY - ADDITIONAL FUNDING FOR BUDGETED NATURAL GAS COST
Sponsors: Grover C. Robinson, IV
Attachments: 1. Supplemental Budget Resolution No. 2022-080, 2. Supplemental Budget Explanation No. 2022-080

LEGISLATIVE ACTION ITEM

 

SPONSOR:                         Grover C. Robinson, IV, Mayor

 

SUBJECT:

 

title

SUPPLEMENTAL BUDGET RESOLUTION NO. 2022-080 - PENSACOLA ENERGY - ADDITIONAL FUNDING FOR BUDGETED NATURAL GAS COST                     

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RECOMMENDATION:

 

recommendation

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