Explanation
BACKGROUND:
This legislation authorizes the City Auditor to transfer funds within the Water Operating Fund and within the Sanitary Sewer Operating Fund.
Divisional financial reviews show expected deficits in electricity costs. There are multiple reasons for the deficit, including accounts that were not billed via the internal billing system in 2025. These missed payments have been paid in 2026. Following from that, 2025 year-to-date expenditures were utilized to project 2026 electricity cost estimates. As a result, the 2026 number is too low compared to year-to-date actuals. We have also seen elevated purchase power costs compared to budget for the Division of Power, and these costs flow through to our customers, including the Water and Water Reclamation Plants. Additionally, a missed payment to Shell/AEP from 2023-2024 was also applied this year (see BRDI006736).
FISCAL IMPACT:
We estimate approximately $6,000,000.00 in additional electricity expenditures for the Division of Water and approximately $7,400,000.00 for the Division of Water Reclamation through February of 2027 ($3.5M and $4.7M for the remainder of the calendar year for DOW and DOWR respectively). These transfers will support the current budget appropriation and allow for continued operations for other professional services main accounts.
$5,450,000 in additional encumbrance is needed for the Division of Water. This will be supported with a combination of existing budget appropriation transferred from object class 04 ($1,727,049.00) and object class 07 ($345,661.64), and supplemental appropriation ($3,377,289.36).
$6,100,000.00 in additional encumbrance is needed for the Division of Water Reclamation. There is sufficient budget authority available in the 2026 Sanitary Sewer Operating Fund's Budget to fund additional electricity cost needs. A transfer of the remainder of the object class 04 appropriation ($2,974,342.91) and object class 07 appropriation ($2,537,926.89), as well as some object class 01 appropriation ($587,730.20), will support the transfer.
EMERGENCY JUSTIFICATION: Emergency action is requested to add funding (via transfer and supplemental appropriation) to the Water Operating and Sanitary Sewer Operating Funds to cover expected deficits for additional electricity cost encumbrances. Failure to do so immediately will tie up most of the professional services appropriation and prevent any other operational encumbrance.
Title
To appropriate $3,377,289.36 within the Water Operating Fund, to authorize the City Auditor to transfer $2,072,710.64 between object classes in the Water Operating Fund and $6,100,000.00 between object classes in the Sanitary Sewer Operating Fund; and to declare an emergency. ($0.00)
Body
WHEREAS, Elevated electricity costs in the current fiscal year and catchup payments from prior years necessitate additional funding for the Divisions of Water and Water Reclamation; and
WHEREAS, it is necessary to appropriate funds in the Water Operating Fund, Fund 6000; and
WHEREAS, the Division of Water has a need to transfer $2,072,710.66 between object classes within the 2026 Water Operating Fund and funds for the transfer have been identified and are available in object class 04 and object class 07; and
WHEREAS, the Division of Water Reclamation has a need to transfer $6,100,000.00 between object classes within the 2026 Sanitary Sewer Operating Fund and funds for the transfer have been identified and are available in object classes 04, 07, and 01; and
WHEREAS, an emergency exists in the usual daily operations of Columbus Water & Power in that it is immediately necessary to authorize the City Auditor to transfer funds within the Water and Sanitary Sewer Operating Funds, and to appropriate additional funding in the Water Operating Fund, to cover expected, immediate professional services deficits due to higher than budgeted electricity costs; all for the immediate preservation of the public health, peace, property, safety, and welfare; and, NOW, THEREFORE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ended December 31, 2026, the sum of $3,377,289.36 is appropriated in Fund 6000 (Water Operating Fund), per the account codes in the attachment to this ordinance.
SECTION 2. That the transfer of $2,072,710.64 or so much thereof as may be needed is hereby authorized between Object Classes within Fund 6000, Water Operating Fund, per the accounting codes in the attachment to this ordinance.
SECTION 3. That the transfer of $6,100,000.00 or so much thereof as may be needed is hereby authorized between Object Classes within Fund 6100, Sanitary Sewer Operating Fund, per the accounting codes in the attachment to this ordinance.
SECTION 4. Funds are hereby deemed appropriated and transfers authorized to carry out the purposes of this ordinance, and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 6. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.