Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities Finance topic
No spam. Unsubscribe anytime.
Lake Worth Beach commission denies transfer of $500,000 from storm fund to rate‑stabilization fund
Summary
After an extended debate about utility reserves and storm‑season risk, the Lake Worth Beach City Commission voted to deny a proposed $500,000 transfer from the storm fund into the electric utility’s rate‑stabilization fund, citing concern about timing and fund purpose.
The Lake Worth Beach City Commission voted to deny Resolution 29‑26, a proposed transfer of $500,000 from the city’s storm fund into the electric utility’s rate‑stabilization fund. The motion to disapprove the transfer passed after commissioners debated the policy intent and short‑term financial exposure of the utility.
Commissioner Sarah Maliga said she would not support moving the money mid‑storm season, arguing the storm fund was created for storm‑related expenses and should remain intact. “I’m not comfortable with this. We are in the middle of storm season,” Maliga said during the debate. Staff and other commissioners described the storm fund’s origin and the accounting mechanics that led to the request, noting the city’s PCA (fuel/commodity recovery) position was roughly negative $1.2 million at the time of the meeting.
City electric utility director (identified in the record as Liberty) told the commission the utility’s sales were running above plan and that revenues are improving, but he also acknowledged a shortfall in PCA recovery. “We’re running at about a negative $1,200,000 in the aggregate,” Liberty said, explaining the combined operating and stabilization balances behind the headline figure.
After additional procedural motions—one commissioner withdrew an earlier motion and then moved to deny—the commission recorded the denial procedure and proceeded to other agenda items. The motion to deny was advanced and agreed by the majority, with the transcript reflecting commissioners’ preference to preserve the storm fund as a first recourse for storm events rather than use it for rate smoothing.
Moving forward, commissioners asked staff to continue monitoring PCA performance, to provide one‑on‑one briefings on rate design and hedging options, and to prepare follow‑up materials explaining the funds’ legal and operational restrictions. The commission did not adopt any alternative transfer at the meeting and left the storm fund balance unchanged pending further staff reports.
