Explanation
The Division of Power collects deposits at the time new electricity service is established. The amount of the deposit varies from property to property and is based on 200% of the average bill amount of that property for the previous 12 months of usage. The minimum deposit amount is $100.00. Those deposits are received in the Electricity Customer Deposit Fund, where interest is accrued. When a customer closes their electricity account with the City, any remaining deposit on hand is credited on their final bill. However, if their remaining deposit funds are in excess of the amount owed on the account, the excess money is not automatically refunded to the customer. The refund needs to be requested by the customer because the City does not always have access to a forwarding address, and needs to ensure that the money is returned to its rightful owner. Since 2014, the refunds have been issued from the four enterprise operating funds, rather than directly from the Electricity Customer Deposit Fund. Because of this, the Electricity Customer Deposit Fund can accumulate large balances and any excess money in the fund needs to be re-allocated into the proper enterprise operating funds on a regular basis in order to balance the funds with actual deposits on hand. Previously this balancing was performed on an annual basis but going forward will be done monthly.
This ordinance authorizes the Director of Public Utilities to properly re-allocate revenue funds by way of a transfer from the Electricity Customer Deposit Fund to the Water Operating Fund, the Sanitary Sewer Operating Fund, the Storm Sewer Operating Fund and the Electricity Operating Fund to repay those funds for all past deposits already returned to the customers; and authorizes the re-allocation of revenue as needed between the various funds for all present and future deposits returned to the customers.
This ordinance authorizes that the City Auditor shall establish such accounting codes as necessary for all re-allocations of revenue from the Electricity Customer Deposit Fund to the Water Operating Fund, the Sanitary Sewer Operating Fund, the Storm Sewer Operating Fund and the Electricity Operating Fund, to repay those funds for all past, present and future deposits returned to the customers, without the need for additional future ordinances.
FISCAL IMPACT: $279,097.39 will be re-allocated by way of a transfer from the Electricity Customer Deposit Fund to the Water Operating Fund in the amount of $108,289.79, the Sanitary Sewer Operating Fund in the amount of $121,407.36, the Storm Sewer Operating Fund in the amount of $32,375.30 and the Electricity Operating Fund in the amount of $17,024.94 to repay those funds for past deposits already returned to the customers.
EMERGENCY DESIGNATION: This ordinance is being submitted as an emergency to avoid delays in the re-allocation of funds from the Electricity Customer Deposit Fund to the Water Operating Fund, the Sanitary Sewer Operating Fund, the Storm Sewer Operating Fund, and the Electricity Operating Fund to repay those funds for all past, present and future deposits returned to the customers.
Title
To authorize the Director of Public Utilities to transfer $279,097.39 from the Electricity Customer Deposit Fund to the Water Operating Fund, the Sanitary Sewer Operating Fund, the Storm Sewer Operating Fund, and the Electricity Operating Fund to repay those funds for all past deposits, to authorize the re-allocation of revenue for all present and future deposits returned to the customers, and to declare an emergency. ($279,097.39)
Body
WHEREAS, excess funds have accumulated in the Electricity Customer Deposit Fund and need to be re-allocated to the various enterprise operating funds, and
WHEREAS, that the funds necessary to carry out the purpose of this ordinance are hereby deemed necessary, and
WHEREAS, there is a need to authorize the City Auditor to establish such accounting codes as necessary for the transfer of all past funds and for the re-allocation of revenue for all present and future funds from the Electricity Customer Deposit Fund to the Water Operating Fund, the Sanitary Sewer Operating Fund, the Storm Sewer Operating Fund and the Electricity Operating Fund to repay those funds for all past, present and future deposits returned to the customers, without the need for additional future ordinances, and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Power, in that it is immediately necessary to authorize Director of Public Utilities to transfer all necessary past revenue funds and re-allocate the necessary present and future revenue funds from the Electricity Customer Deposit Fund to the Water Operating Fund, the Sanitary Sewer Operating Fund, the Storm Sewer Operating Fund, and the Electricity Operating Fund to repay those funds for all past, present and future deposits returned to the customers thereby preserving the public health, peace, property and safety; 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 the sum of $279,097.39 or so much thereof as may be needed, is hereby appropriated in Fund 6302 Electricity Customer Deposit Fund, in Object Class 10 Transfer Out Exp. per the accounting codes in the attachment to this ordinance.
SECTION 2. That the transfer of $279,097.39 or so much thereof as may be needed, is hereby authorized between Fund 6302 Electricity Customer Deposit Fund and Funds 6000 (Water Operating Fund), 6100 (Sanitary Sewer Operating Fund), 6200 (Storm Sewer Operating Fund), and 6300 (Electricity Operating Fund) per the accounting codes in the attachment to this ordinance, to repay those funds for all past deposits returned to the customers.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance and future revenue corrections are hereby deemed necessary, and the City Auditor shall establish such accounting codes as necessary, for the transfer of revenue to repay those funds for all past deposits returned to the customers, and for the re-allocation of revenue as needed, from the Electricity Customer Deposit Fund to the Water Operating Fund, the Sanitary Sewer Operating Fund, the Storm Sewer Operating Fund and the Electricity Operating Fund to repay those funds for all present and future deposits returned to the customers.
SECTION 4. 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.