AGENDA MEMORANDUM

 

 

Meeting Date:           June 9, 2008

 

From:                          Bob Brown, Financial Accounting Administer

 

Subject:                      Natural Gas Energy Conservation Adjustment Rate

 

 

 

The Natural Gas Energy Conservation Adjustment rate was established to provide funding for our natural gas incentive program.  We have just finished our eighth complete fiscal year of operations since this rate was established. We now have financial information indicating a change in the rate is necessary to provide this funding.

 

Ordinance No. 99-68 requires that the rate be adjusted any time the over or under recovery of expenses exceeds or is projected to exceed $50,000.  Staff is recommending that the current rate be decreased to $.000 from $.050 per therm until such time as the financial data indicates that another adjustment is required.

 

This adjustment requires the approval of the City Manager and must be reported to the City Commission at the first regularly scheduled Commission meeting following the adjustment.  Therefore, staff is requesting City Manager approval and that notice be provided to the City Commission at the next regularly scheduled Commission meeting.