Title
Resolution - Approval of 2021 Budget Amendments for Depreciation and Capital Improvement Plan Spend - J Smith/K Jones
Other Info
Submitted By: Janelle Smith
Department: Finance
Financial Impact and Cost/Benefit Considerations: Capital expenditures of $9.2 million and operating depreciation expense of $11.4 million, which were not included in the approved Capital and Operating Budgets in 2021, were incurred for a total Financial Impact of $20.6 million in 2021.
Discussion
The Budget Policy requires amendments for certain levels of variances. The $11.4 million depreciation expense resulted from accelerated depreciation due to the new cooperative lighting agreement and the AMI meter change-out programs. The $9.2 million capital spend resulted from favorable and unfavorable budget variances.
Body
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that the Board approve an amendment to the Cooperative's 2021 Capital Improvement Plan and Operating Budgets as presented in Executive Session; and
BE IT FURTHER RESOLVED, that the Chief Executive Officer or designee is authorized to take all such actions as needed to implement this resolution.