BY COUNCILOR STOVER:
RESOLVED, that Resolution No. 03-0588 is hereby amended by authoring the immediate transfer of an additional $100,000 from the Home Energy Loan Fund 555 to the Gas Fund 520 to reimburse said Fund 520 for funds previously loaned from Fund 520 to Fund 555.
FURTHER RESOLVED, that the automatic transfer of $150,000 authorized by said Resolution No. 03-0588 to occur on July 1, 2023, from Fund 555 to Fund 520 is hereby reduced to $50,000.
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize the transfer of $100,000 from the home energy loan fund to the gas fund to reimburse it for funds originally loaned from the gas fund to the loan fund to get it started. The transferred funds are to be used to provide funding for the low income energy assistance grant programs to be administered by AEOA and the Salvation Army pursuant to resolution Nos. 06-0078 and 06-0079.
When the home energy loan program was originally created, the gas fund loaned $3,000,000 to the program to get it going. Since the program has been operating for some time, program funds had become available to repay the gas fund for the loan and Resolution No. 03-0588 provided for such repayment over a 20 year period.
However, recent world events have resulted in massive increases in the cost of fuel for domestic heating purposes and the customers of the city’s gas utility customers have suffered from the impact of these cost increases, with low income persons bearing a disproportionate share of these costs. The grant programs authorized by 06-0078 and 06-0079 are intended to ameliorate those impacts.
The total cost to the city of those grant programs is $100,000 and a source of funding for them needed to be identified and provided. A review of the public works and utilities department finances demonstrates that there are ample funds in the Home Energy Loan Fund 555 to allow an early repayment to the gas fund of an additional $100,000 of the funds loaned to 555 without negatively impacting the ability of Fund 555 to meet the needs for program loans. This resolution would authorize such a transfer.