Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Marietta utility board faces $722,745 MEAG shortfall; members consider paying this year
Summary
The Board learned its portion of the MEAG year‑end settlement is a negative $722,745.19 and discussed options including paying the full amount in the current fiscal year or spreading payments over months; staff recommended considering a budget amendment and will return with proposals.
The Marietta Board of Lights and Water was told on April 6 that its share of a year‑end settlement from MEAG totals a negative $722,745.19, creating an unexpected deficit that the board will need to address in the coming budget process.
"Our portion of the year end settlement, negative year end settlement, is $722,745.19," the general manager reported, and said MEAG suggested a monthly repayment schedule of $72,274.52 until the balance is paid. Board members discussed options ranging from paying the entire amount this fiscal year to taking the payments over time; one recommendation from the budget rates committee was to consider a budget amendment to incorporate the payment.
Why it matters: the unplanned negative settlement, combined with other preliminary budget adjustments, leaves the utility facing a potential roughly $700,000 shortfall in the FY2027 preliminary figures (the board had been projecting a surplus in prior years). Board members asked staff to model alternatives, including paying the balance now out of reserves or adopting a three‑installment schedule to retire the amount by June 30.
The board also voted to proceed with a more detailed final budget review next month. A finance committee motion to receive the final budget for further review was approved by voice/hand vote 6‑0; staff said it will provide updated financials and, if requested, a draft budget amendment that would cover the MEAG deficiency.
Board members requested more documentation about MEAG’s allocation methodology and the tax‑credit treatment discussed in the meeting so they can assess whether the $84 million MEAG tax credit described by staff will affect future settlements or audits.
