08.03.21 Regular Meeting - Laserfiche WebLink

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City Council Meeting Minutes August 3, 2021 electronically. She wants to know what this will do to our utility funds before making this decision. In addition, she feels that there are people who are delinquent in their payments, who can pay, and simply are not because it's not yet required. She feels that those people will pay once we announce disconnects again and that may be enough for the difference in what we have to fund this and what will be owed. Mayor Pro Tem Derrick would like to receive information on the implications this may create to the enterprise funds including our bond rating. Council Member Garza expressed concern that residents may not know about the utility assistance program. Ms. Kalka stated if we move forward with forgiving the debt it would be $1.3M and believes there could be an impact of either rate increases or financial impact that would cause the City to have to cut services or staff as there will be a need to balance the budget. Ms. Kalka stated the city is already short this year by $1M because we are not collecting late fees. Mrs. Reyes stated we do own the electric utility but we have to purchase power. The electric fund does not look healthy as we would like and this action could have a long term impact on the electric budget. A motion was made by Deputy Mayor Pro Tem Scott, seconded by Council Member Garza, call the question to stop debate and vote. The motion failed by the following vote: For: 4 - Council Member Baker, Council Member Gonzales, Deputy Mayor Pro Tem Scott and Council Member Garza Against: 3 - Mayor Pro Tem Derrick, Mayor Hughson and Council Member Gleason MOTION TO AMEND: A motion was made by Deputy Mayor Pro Tem Scott, seconded by Council Member Gonzales, to forgive all residential delinquent accounts that are 30 days and over as of August 3rd. The motion to amend carried by the following vote: For: 5 - Council Member Baker, Council Member Gonzales, Deputy Mayor Pro Tem Scott, Council Member Garza and Council Member Gleason Against: 2 - Mayor Pro Tem Derrick and Mayor Hughson A motion was made by Mayor Hughson, seconded by Deputy Mayor Pro Tem Scott, to institute disconnections and late fees on September 1. The motion carried by the following vote: City of San Marcos Page 24