Rent Increase Survey

Have you submitted your latest rent increase data to the rent increase survey?

Alameda Municipal Power Responds on Budget Questions

We sent some questions back to Alameda Municipal Power in response to their budget announcement the other day. We asked if the $2.8 million transfer to the City’s general fund was a re-payment of either or both of a couple of outstanding loans. AMP responds.

The answer from AMP wasn’t really very clear, and takes some parsing. At the May 19th City Council meeting, Interim City Manager characterized as a “loan” approximately $1.5 million in accrued back-payments from AMP to the City of Alameda resulting from a reduction in past years of the mandated 1% ROI that AMP is supposed to pay the City. There is also a direct $2.2 million loan to AMP from the City outstanding from a decision years ago to support the utilities struggling telecom division with General Fund revenue.

Here’s what AMP told us:

$2.8 [million] is the General Fund Transfer which is determined every year and not a loan repayment.
$2.8 [million] is the General Fund Transfer that is determined every year, the ROI is 1% for FY2010 an increase from the prior years ROI of .4336%.
The reduction in ROI was not a loan to the Enterprise funds. It was a reduction in the annual payment due from the Enterprise Funds to the City. This accumulated reduction is scheduled to be included in AMP’s FY2011 budget.

So if we understand this correctly, the $2.8 million transfer from AMP to the City is in accordance with the normal, mandated 1% ROI payment to the City. And it is NOT re-paying the telecom division loan, and it is not re-paying approximately $1.5 million in back-payments due to the City from a previous reduction of ROI payments from 1% to .4336%. In other words, those back-payments are still outstanding and due to be resolved in next year’s Fiscal Year 2011 budget.

Comments are closed.