Form revised February 6, 2008

Form revised: December 6, 2011

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	CBO Analyst/Phone:
Seattle City Light	Paula Laschober 684-3168	Calvin Chow 684-4652

Legislation Title: A RESOLUTION relating to the City Light Department; adopting a 2013-2018 Strategic Plan for the City Light Department and endorsing a six-year rate path required to support the Strategic Plan.

Summary of the Legislation: This legislation adopts a six-year Strategic Plan for City Light, endorses an average 4.7% per year rate increase required to support the Strategic Plan, and requests that the Utility prepare the 2013-2014 Proposed Budget and Proposed Rates assuming a 4.4% rate increase in 2013 and a 5.6% rate increase in 2014.

Background:

In 2010, City Light began a two-year Strategic Planning process to identify the challenges facing the Utility and to vet the investments necessary to meet them. The Mayor and City Council appointed customer stakeholder representatives to the City Light Review Panel, and asked the Panel to review and advise on the development of the Strategic Plan.

As part of the Strategic Planning process, City Light engaged in extensive public outreach, including stakeholder meetings, public meetings, non-English speaking outreach, online surveys, advertising, media, and direct mail. The public feedback was used to inform the development of the Strategic Plan.

The resulting Strategic Plan is a package of investments to achieve additional operational efficiencies, maintain current service levels, improve reliability, strengthen the Utility’s workforce, and support job growth and economic development in the region. The Strategic Plan requires additional investment and implies a six-year rate path averaging 4.7% per year. The six-year path reflects anticipated BPA pass-through rate adjustments (SMC 21.49.081), but does not reflect potential automatic Rate Stabilization Account surcharges (SMC 21.49.086).

The Strategic Plan provides a forum for discussion between the Utility, elected officials, and customer stakeholders, and provides more transparency and accountability for decision-making within the Utility. It is intended to guide budget and rate development for the Utility, and this legislation requests that the Utility prepare the 2013-2014 Proposed Budget with proposed rate increases of 4.4% in 2013 and 5.6% in 2014.

The Strategic Plan will be revised and updated every two years.

Please check one of the following:

____ This legislation does not have any financial implications.

__X__ This legislation has financial implications.

While this Resolution does not result in direct budget or rate actions, it endorses an average rate increase of 4.7% per year over the 2013-2018 period, and requests that the Utility prepare the 2013-2014 Proposed Budget and 2013-2014 Proposed Rates assuming a 4.4% rate increase in 2013 and a 5.6% rate increase in 2014.

Appropriations: N/A

Fund Name and Number

Department

Budget Control Level*

2012

Appropriation

2013 Anticipated Appropriation

TOTAL

*See budget book to obtain the appropriate Budget Control Level for your department.

Appropriations Notes: There are no appropriations as a direct result of this legislation. Appropriations related to it will be submitted with 2013-2014 budget legislation.

Anticipated Revenue/Reimbursement Resulting from this Legislation: N/A

Fund Name and Number

Department

Revenue Source

2012

Revenue

2013

Revenue

TOTAL

Revenue/Reimbursement Notes: There are no revenues/reimbursements as a direct result of this legislation. Revenues related to it will be submitted with 2013-2014 budget legislation.

Total Regular Positions Created, Modified, or Abrogated through this Legislation, Including FTE Impact: N/A

Position Title and Department	Position # for Existing Positions	Fund Name & #	PT/FT	2012 Positions	2012 FTE	2013 Positions*	2013 FTE*



TOTAL

* 2013 positions and FTE are total 2013 position changes resulting from this legislation, not incremental changes. Therefore, under 2013, please be sure to include any continuing positions from 2012.

Position Notes: This legislation does not create, modify or abrogate any positions. FTE impacts will be submitted along with 2013-2014 budget legislation.

Do positions sunset in the future? N/A

Spending/Cash Flow: N/A

Fund Name & #

Department

Budget Control Level*

2012

Expenditures

2013 Anticipated Expenditures

TOTAL

* See budget book to obtain the appropriate Budget Control Level for your department.

Spending/Cash Flow Notes: This legislation does not directly impact spending or cash flow. Spending and cash flow impacts will be submitted along with the 2013-2014 budget legislation.

Other Implications:

a) Does the legislation have indirect financial implications, or long-term implications?

Yes, adoption of the Strategic Plan implies a trajectory of rate increases averaging 4.7% per year over the 2013-2018 period, and directs City Light to prepare the 2013-2014 Proposed Budget and supporting rate increases of 4.4% for 2013 and 5.6% for 2014.

b) What is the financial cost of not implementing the legislation?

N/A

c) Does this legislation affect any departments besides the originating department?

This legislation does not directly affect any other department. Certain projects, such as capital work and customer service, are done jointly with other City departments including SDOT and SPU, but coordination is established and ongoing. Certain aspects of the Plan could also affect how services provided by the City to City Light are carried out; CBO staff is aware of them.

d) What are the possible alternatives to the legislation that could achieve the same or similar objectives?

e) Is a public hearing required for this legislation?

f) Is publication of notice with The Daily Journal of Commerce and/or The Seattle Times required for this legislation?

g) Does this legislation affect a piece of property?

h) Other Issues:

List attachments to the fiscal note below:

none