1994-06-06 - Laserfiche WebLink

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286 decrease an average of 4% from last March rates. Ms. Scott stated that the Gas Assistance Program is proposed to be expanded to include those eligible for tax relief for the elderly and disabled and to eliminate the marching requirement for donations. Ms. Scott also stated that the working capital is proposed to be increased from 45 days to 60 days. Responding to a question from Mr. Toscano, Ms. Scott stated that the working capital increase will prevent the need for the gas fund to borrow from other City funds and will provide the opportunity for the City to purchase gas when the rates are cheaper. Mr. Phil Garber, Gas Superintendent, stated that the City now has the option to buy gas under long-term gas contracts and keep it in storage. The public hearing was opened. Mr. Hawes Spencer, 415 Altamont Street, stated that he did not think the City has the right to spend the $2 million in gas surplus funds and thought the excess should be held as a reserve or given as a rebate. Mr. Spencer stated that he did not think the gas funds should be used to provide City employee bonuses. Mr. Tom Hill, 1204 Rugby Road, stated that he felt it was important to remember that when the City states that Rivanna Water and Sewer Authority is raising rates, the City and County control Rivanna. Mr. Hill stated that he felt the key item that fails to be addressed is that no one knows what the average cost of the gas commodity is. Mr. Hill stated that he agreed with Mr. Spencer's comments that it is wrong to take gas customers' funds. iVh'. Charles Lilly, Belmont neighborhood resident, stated that he felt the excess gas funds should be returned to gas customers and he also stated that he felt Council should consider reducing the utility tax. As there were no further speakers the public hearing was closed. At the request of Mr. Toscano, Ms. Scott explained that. the surplus, which has been generated over the last few years, was a result not only of an extremely cold winter, but because the City now capitalizes construction costs, has leveled out debt financing, and because of fluctuations in gas prices. Ms. Scott stated that there was actually a $400,000 surplus generated in the current year. Ms. Slaughter stated that Council has been encouraged to be more entrepreneurial in its operation of the utilities and noted that not only did the City sell more gas due to the extreme winter, but the damage to the streets and sidewalks as a result of the weather was extreme and Council felt that using the excess funds to repair the damage would help City residents. Ms. Slaughter corrected the statement made by Mr. Spencer about bonuses, explaining that the cigarette tax revenue collected in FY 93/94, not excess gas funds, would be used to provide employee bonuses, to provide one-time funds to the Free Clinic, and for infrastructure improvements on the downtown mall. Ms. Slaughter stated that she felt Council did need to make a long-term policy decision about use of utility funds in the future. Mr. Toscano stated that he thought some of the gas surplus funds should be reserved and proposed that $100,000 be set aside to be added to any additional surplus at the end of the year or to any working capital excess, and to be used for either providing a one-time credit to gas customers or held in reserve for lowering future bonds~ Ms. Daugherty stated that she felt the rebate given to City residents would be so small that it would be insignificant, noting that larger credits would be given to Albemarle County customers as well as the University of Virginia, and she thought a better use of the excess was to repair the damaged streets and sidewalks. Ms. Slaughter stated that she hOped that the utility tax would not be applied to persons receiving gas assistance.