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Pella council approves temporary transfer of nearly $985,000 from electric utility to general fund
Summary
Council approved a temporary, retroactive transfer of about $985,000 from the Pella Municipal Electric Utility to the city's general fund to pay for previously approved projects; staff said the electric fund's audited balance is projected near $14.8 million and the city uses a $10 million minimum fund target.
The Pella City Council unanimously approved Resolution 6951 to make a temporary transfer of just under $985,000 from the Pella Municipal Electric Utility to the city's general fund, retroactive to June 30, 2025, to cover a set of previously approved projects.
Mike, a staff presenter, explained the financial rationale: the electric utility's audited fund balance is projected to be roughly $14.8 million at June 30, 2025; the city uses a $10 million minimum fund balance target for discussion purposes, leaving about $4.8 million as available surplus under that target. The proposed transfer would cover projects listed on the board that total roughly $985,000. Mike said if the city later issues debt to fund these projects it would reimburse the electric utility for this temporary transfer.
Council discussed the recommendation and voted to approve the resolution unanimously. Staff said a subsequent resolution would be required if the transfer were made permanent or if bond issuance and reimbursements are needed.
