HomeMy Public PortalAbout09-02-1980 PROCEEDINGS OF THE COMMON COUNCIL OF THE
CITY OF RICHMOND, INDIANA, SERVING AS A
BOARD IN CHARGE OF THE OPERATION OF THE
RICHMOND POWER & LIGHT PLANT, SEPTEMBER 2, 1980
1 The Common Council of the City of Richmond, Indiana, serving as a Board in
2 charge of the operation of the Richmond Power & Light Plant, met in regular
3 session September 2, 1980 at the hour of 7 :00 p.m. in the Municipal Building
4 of said City. Chairman Ahaus presided with the following members present:
5 Messrs. Elstro, Williams, Hankinson, Welch, Parker and Carter. Absent: Mills
6 and Paust. The following business was had, to-wit:
III 7
8 APPROVAL OF MINUTES
9
10 Councilman Hankinson moved to approve the minutes of the previous meeting as
11 prepared, seconded by Councilman Welch and on unanimous voice vote the motion
12 was carried.
13
14 BILLS, INVESTMENTS AND TRANSFERS
15
16 Councilman Carter moved to approve the following bills, transfers and invest-
17 ments purchased, seconded by Councilman Welch and on unanimous voice vote the
18 motion was carried:
19
20 APPROVE THE FOLLOWING:
21 Bills in the amount of $ 351 ,068.16
22 Bonds and Interest Coupons 1,050.00
23 1 payroll 101,562.55
24
25 TRANSFER FROM DEPRECIATION RESERVE FUND TO:
26 Cash Operating Fund 103,846.54
27
28 INVESTMENTS PURCHASED
29 * Cash Operating Fund 770,000.00
III30 ** Cash Reserve Fund 194,204.09
31 ** Bond Sinking Fund 65,865.42
32 ** Bond Reserve Fund 3,602.36
33 Depreciation Reserve Fund 54,856.27
34
35 * Short term investments (repurchase agreements) yielding
36 7.0% interest.
37 ** Short term investments (repurchase agreements) yielding
38 9. 125 and 9.25% interest
39
40 CHAIRMAN'S REPORT - Payment in Lieu of Taxes
41
42 Chairman Ahaus reported on the Executive Committee meeting last Monday and
43 the Committee recommends continued study of payment to the City in lieu of
44 taxes. They looked at Citizens Gas of Indianapolis which is the only public
. 45 utility which has a recognized method of making payment to the City in lieu
46 of taxes. Their method not only deals with assets but also deals with net
47 income over a series of years averaged. The Committee will look at some
48 different alternatives. The Committee recommended to adopt Resolution No.
49 5-1980.
50
51 Chairman Ahaus stated the City Fund Account No. 133 as of June 30, 1980
52 had an excess of $309,058 from accrued interest. It is the Committee's
53 recommendation to transfer one-half of this amount on January 1, 1981 and
54 the remainder January 1, 1982
55
56 RESOLUTION NO. 5-1980
57
58 Councilman Hankinson moved for adoption of Resolution No. 5-1980, seconded
59 by Councilman Welch.
60
61 City Controller Don Meredith questioned what happens to the interest that
62 is accrued between June 30, 1980 and January 1, 1981 or January 1, 1982 or
63 June 30, 1981. He pointed out that several years ago the Board of Directors
64 of RP&L requested or mandated that the interest accrued be paid to the City
RP&L Minutes Cont'd.
September 2, 1980
Page 2
1 and that was done only one (1) year. There should be provision to allow
2 for accruing of income. Chairman Ahaus stated the Committee did discuss
3 this and has not made any determination.
4
5 General Manager Irving Huffman noted that the payment in lieu of taxes is
6 under the scrutiny of the PSCI and must be in line with PSC policies. The
7 Commission has been concerned with some cities giving more in lieu of taxes
8 than they should have. The last Legislature passed "The Profit Bill" which
9 permitted the transfer of payments to the City in lieu of taxes by law and
10 made a provision to transfer some of the rate of return (profit) . However,
11 the Commission allowed everything RP&L asked for in their rate case except
12 the rate of return.
13
14 Chairman Ahaus stated additional utilities will be contacted to find out
15 how they make payments.
16
17 The Clerk read the following Resolution:
18
19 RESOLUTION NO. 5 — 1980
20
21 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF RICHMOND,
22 INDIANA SERVING AS A BOARD IN CHARGE OF THE OPERATION OF
23 THE RICHMOND POWER AND LIGHT AUTHORIZING A PAYMENT IN LIEU
24 OF TAXES AND OTHER DISBURSEMENTS AND TRANSFERS OF FUNDS.
25
26 WHEREAS, the Common Council of the City of Richmond, Indiana is the
27 governing body of said electric utility being Richmond Power and
28 Light; and
29
30 WHEREAS, there are certain unexpended and unobligated funds available
31 for distribution to the City of Richmond, Indiana;
32
33 NOW, THEREFORE, BE IT RESOLVED by the Common Council, acting as the
34 Board in charge of the operation of the Richmond Power and Light of
35 the City of Richmond, Indiana:
36
37 1. That the following unobligated balances as of June 30, 1980
38 be transferred to the city general fund as of January 1, 1981 as
39 a payment in lieu of taxes:
40
41 City Fund Account No. 133 $1,077 ,408.
42 Payment in lieu of taxes $768,350.
43 $309,058
44
45 2. That one-half of the remaining balance of $309,058 representing
46 accrued interest received on said fund over the past several years
47 and now on hand in said city fund be transferred to the city gen-
48 eral fund on January 1, 1981 being in the amount of $154,529.
49
50 3. That the balance of said accrued interest being $154,529 be
51 transferred to the city general fund on January 1, 1982 as well as
52 a payment in lieu of taxes then existing in any unexpended and
53 unobligated balances.
54
55 PASSED AND ADOPTED by the Common Council of the City of Richmond,
56 Indiana acting as the Board of Directors of Richmond Power and
57 Light, this 2nd day of Spetember, 1980.
58
59 /s/ Howard J. Elstro
60 /s/ Marion J. Williams
61 /s/ James H. Hankinson
62 /s/ Fredric A. Ahaus
63 /s/ Bing Welch
64 /s/ Larry L. Parker
65 /s/ James E. Carter
RP&L Minutes Cont`d.
September 2, 1980
Page 3
1 ATTEST: /s/ JoEllen Trimble
2 City Clerk
3
4 On the motion to adopt the Resolution the following vote was recorded:
5 AYES: Elstro, Williams, Hankinson, Welch, Parker, Carter, Ahaus (7)
6 NOES: None (0)
7
8 ADJOURMENT
9
III10 There being no further business on motion duly made, seconded and passed
11 the meeting was adjourned.
12
13 Rick Ahaus
14 Chairman
15
16 ATTEST: JoEllen Trimble
17 City Clerk