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HomeMy Public PortalAbout07-05-1949 - 230 MEETING OF THE COMMON COUNCIL, SERVING AS A COMMITTEE IN CHARGE OF THE OPERATION OF THE MUNICIPAL ELECTRIC LIGHTING AND POWER PLANT OF THE CITY OF RICHMOND, INDIANA, TUESDAY, JULY 5, 1949. The Commo0 Council of the City of Richmond, Indiana, serving as a committee in charge of the operatio# of the Municipal Electric Lighting and Power Plant, met in regular session in the office of the Board of Public Works and Safety in the City Building in said City, Tuesday, July 5, 1949, at 7:30 P.M. O.S.T. Council- man Tracy presiding with the following members being present: Messrs. Baldwin, Eastman, Harris, Law, Marino, Myers and Russell. Councilman Chambers being ab- sent. The following proceedings were had, to-wit: On motion duly made, seconded and carried unanimously, Councilman Tracy was ap- pointed to preside during this meeting in the absence of Councilman Chambers. On motion duly made, seconded and carried unanimously, the minutes of the pre- vious meeting were dispensed with. Mr. Beck reported that Councilman Law, Mr© Markle, Professor at Ferlham College and self had made a visitation to the west side to investigate the reported dam- age done to the vegetation in said area. It was undetermined at this time just what is the cause of this condition and will be further investigated by Mr. Bock. The following letter was received and ordered to be made a part of the record of khis meeting: June 27, 1949 Members of the City Council of Richmond, Indiana At a recent meeting of the. Municipal Electric Lighting and Power Ad- visory Committee, the matter of dividends payable to the Civil City for the year 1950 was reviewed9 The legislation passed by the last session of the General Assembly of the State of Indiana provides that surplus earnings. of a Municipal owned utility may be transferred to the general fund of the city, after two general conditions have been fulfilled. (1) A depreciation or replacement fund shall be established to which there shall accure at least five per cetum of the operating cash revenues each month. This provision has been met. During the _ first five months of 1949 $103,327.02 has been paid into this funds or approximately 13% of the cash revenue. (2) Surplus earnings are defined as those cash earnings remaining after provision has been made for current obligations, depreciation fund, etc. Furthermore, the cash earnings set aside for transfer to the city general fund must be effected by July 31 for use during the following calendar year. A study has been made of the factors surrounding the second condition as outlined above. Net income for the first fire months of 1949 amounted to $178,152.64. It is estimated net income for June and July will be approximately $55,000.00, making a total for seven month period of $233, 152.84. Cash earnings: available July 31 have been determined 'as follows: - General Cash Fund 5-31-49 . ' ' $176,614.67 Operating revenue June & July (Est) •289,300.00 $465,914.67 Less Operating Expenses (Est) June $96,600.00 " July 95,600.00 Transfer to Depr. Fund June 20,600.00 ro °° " 11 Jtal.y 20,850.00 233,8 0.00 General Cash Fund 7-31m49(Est§ $232,064.67 The depreciation cash reserve fund will be sufficient to meet the capital expenditures authorized for the balance of the year 1949. On the basis of an estimated cash balance of $232,064.67 in the General cash Fund as of July 31, the Committee recommends surplus earnings in the amount of $175,000.00 be transferred July 31 to a cash reserve fund, and the same amount be in turn transferred to the general fund of the City January 1,1950. After the transfer is made, there will remain in the general fund an estimated balance of $56,000. 231 which should be sufficient cash working capital. MUNICIPAL ELECTRIC LIGHT AND POWER PLAT ADVISORY COMMITTEE. G.W. Frame, Chairman B.F. Harris W.M. Homey Walter Rudolphsen R.H. Wiechman Councilman Harris moved that the sum of One Hundred Seventy-five Thousand III ($175,000.) Dollars be transferred from the General Fund Cash to the Cash Re serte Fund as provided in the Ordinance No. 1379-1949 and to be effective July 31, 1949. Councilman Baldwin seconded this motion and on voice vote the motion was unanimously adopted and so ordered. The claims in the amount of $114,4+71.87 were allowed. Of this amount there was thecamount of $20,866.15 transferred from the General Fund CaSi to the Depre- ciation Reserve Fund Cash. On motion duly made, seconded and carried unanimously, the meeting adjourned. r.:('..) Q.,---: - - Chairman Pro-tem. Attest: � City Ci .