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HomeMy WebLinkAbout2005-0510 Special Mtg PACKET CITY OF ASHI_AND SPECIAL COUNCIL MEETING Tuesday, May 10, 2005 - 7:00p.m. Community Development Building, 51 Winburn Way, Ashland I.~F~ II. ROLL CALL:: III. UNFINISHED BUSINESS: 1. Ashlend Fiber Network Organizational Change. IV. ORDINANCES. RESOLUTIONS AND CONTRACTS: 1. Reading by title only of "A Resolution Authorizing a Subsidy from the Electric Fund to the Telecommunications Fund for Debt Service." V. ADJOURNMENT: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this Ineeting, please contact the City Administrator's office at (541) 48'8-6002 (TTY phone number 1-800-735-2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I). . ~ J j-(\ . ':. U VV .~ adZ) C;1'. \ ') ~~, ( '()l N ( 'II \1 L L I Ii\ ( j S :\ I<. L H R 0 ,\ !) ( .:\ S! I I \' I () N ( 'I L\ N N L ! () VISIT II!!, CITY OJ ,\SIfLANj)'S \\TB SilT ,\ I \\'\\'\V..'\S!II..\ND.UR.l'S CITY OF ASH:LAND Memo TO: FROM: DATE: RE: Mayor and City Council Gino Grimaldi, City Administrator May 9, 2005 AFN Reporting to the City Administrator Purpose This memorandum is in response to Councilor Amarotico's request to provide alternatives regarding the creation of the Ashland Fiber Network (AFN) as a department reporting to the City Administrator. Discussion If AFN is created as a department reporting to the City Administrator it would require reducing the workload of the City Administrator. This can be accomplished in two ways. Alternative I Create an Assistant City Administrator position. The Finance Director and Human Resources Director would report to the Assistant City Administrator. This alternative also creates the possibility for the creation of a Computer Services Department that would also report to the Assistant City Administrator. Further analysis of the creation of an independent Computer Services Department is required in order to determine its feasibility. In addition to supervising Human Resources and the Finance Director, the Assistant City Administrator would also be available to assist with special projects and administrative tasks that are not being accomplished with the existing staffing levels in administration. Selection of an Assistant City Administrator would be through an open recruitment process. This alternative would differ from the proposed organizational structure by replacing the Controller in Finance with an Account Representative. A clerical position would be added to support the Assistant City Administrator. The net increase in personal services only would be approximately $145,000. Additional costs relating to office equipment and materials and services have not been calculated at this time. ADMINISTRATION 20 East Main Street Ashland, Oregon 97520 www.ashland.or.us Tel: 541-488-60022' Fax: 541-488-5311 TTY: 800-735-2900 ~~, Alternative II Reclassify the exiisting Finance Director position to Administrative Services/Finance Director. The Human Services Director would report to the Administrative Services/Finance Director. This alternative eliminates the direct reporting relationship between the City Administrator and the Human Resources Director. This alternative would differ from the proposed organizational structure by replacing the Controller in Finance with an Account Representative. Replacing the Controller with an Account Representative would save approximately $37,000. Recommendation None ADMINISTRATION 20 East Main Street Ashland, Oregon 97520 www.ashland.or.us Tel: 541-488-60022' I=ax' 541-488-5311 TTY: 800-735-2900 ~~, CITY Of' ASHLA~~D Council Communication AFN Organizational Change Meeting Date: Department: Contributing Depts: Approval: May 3, 2005 Finance Electric Gino Grimaldi ~"'-;J Primary Staff Contact: Lee Tuneberg, 552-2003 Secondary Staff Contact: Dick Wander scheid, 552-2061 wandersd@ashland.or.us Statement: This report is in response to the request from Council made during the April 26, 2005, study session in which staff presented a proposed change in staffing for AFN and Finance, :moving all of Telecommunications and Computer Services into the Finance Department from Electric. Background: Included in the proposed FY 2005-06 budget is the transition of Telecommunications into the Finance Department. This change moves 15 employees and a budget of $4,432,687 from the Electric Department thus increasing the Finance Department operational budget from 21.65 FTE to 36.65 FTE and from $2,585,893 to $7,018,580. Key elements of this reorganization are to create two new positions, one to provide operational support to the Finance Director and one to manage Telecommunications and Infonnation Technology. The finance position is identified as a Controller and will manage day to day activities for most of Finance operations, picking up the areas needing more attention than the Finance Director has time to do, allowing him to focus directly on AFN and technology as needed from an administrative purview. Please note that the Finance Department had already requested an additional accounting position be added to help deal with workload and to "free up" time for the director to work on high level finance and management issues. The added position would be paid for by Central Service charges recognizing the benefit all departments and funds receive in the way of finance and budget support. A technician position in AFN was traded for a management position recognizing that the new manager would review all levels of operation, leveraging talents and skills where necessary and identifying any gaps. that exist. The position eliminated was a vacant position created after the consultant study whose work was being accomplished through other avenues. A merno speaking to the impact of this change and potential options is attached. Attached is a schedule showing impacts on the proposed reorganization on the Electric, Telecommunications and Central Service funds. The estimated pay ranges for the two positions were arrived at by gauging what may be required by the market and, to a lesser degree, how they 1 ~r4~ .r_~ fit within the city structure. FY 2005-06 includes these amounts with estimated benefit costs in the 45% range. It is expected that the finance position would fall in the $70,000 - $75,000 range whereas the AFN position is budgeted at the $80,000 - $85,000 level. The most critical addition is a dedicated manager to AFN and technology to focus on the day-to- day operations, building upon them to align city efforts with the long teffi1 success of this utility. This change raises questions as to how locating AFN under Finance is beneficial and what is the impact on Finance and other departments. In recognition that AFN is not the nOffi1al municipal service and has a need to operate differently and often times act pro actively in an expeditious manner, the new position will need to have some license to function at a higher level than nlany other division managers. However, it must be noted that every day in the City of Ashland there are division mangers making decisions regarding water, se'wer, electric and emergency services that do not require direct input or managerial authority by department heads or city administration. The Finance Director operates from the perspective that it is his responsibility to keep current with divisional operations, supporting the managers by providing the tools and resources necessary to accomplish operational goals and to provide quality customer service. l\1anagers operate within the guidelines established by the city and other levels of oversight authority and it is up to them to identify gaps in resources, barriers encountered and alternatives to accomplishing the established goals and in meeting targets. In turn, the Finance Director assists the manager in obtaining what is necessary and in accomplishing what is needed, rerrlaining cognizant of the ramjfications of paths taken and complying with legal requirements. Examples of legal requirements are budget law, purchasing rules, federal state and local reporting requirements, personnel standards & pay requirements, contractual obligatJlons~ dc. From an operational stand point, the Telecommunications Manager will need to have the latitude to adjust staff roles and responsibilities and daily operations as needed to meet work load, operational goals and resource allocation to meet established targets. Adjusting targets and methods of accomplishing goals must be flexible and remain under this manager's authority to provide the flexibility necessary for this industry. . . within the legal requirements identified above and the general guidelines established by top management and the elected body. Many different names have been discussed for the top position in AFN. . .director, supervisor, business manager, etc. The title is not as important as the skill set desired which must include technology and industry experience and the ability direct, motivate and manage. The process for identifying the most important talents and their priorities must be broad-based so that the recruitment process is successful. Our goal should be to identify the right skills and pay to generate sufficient interest to obtain a sufficient number of applicants to choose from. There is considerable interest from elected officials, management, staff and the public that we are sure getting input will be relatively easy whereas identifying a realistic skill set, prioritizing them and associating the compensation will be more a difficult process that should be more internal. Related City Policies None applicable. 2 CITY ()F AS H Lfl~N D Council Options: Authorize staff to proceed with reorganization as proposed. Direct staff to proceed with reorganization as amended by Council. Direct staff to make no changes. Staff Recommendation: Staff recommends that Council accept staffs proposal and authorize us to proceed. Potential Motions: Council accepts staff's recommendation (as amended by Council?). Attachments: Proposed Staff Change - cost comparison by fund Vacant Telecommunications Technician Position April 29, 2005 AFN Reorganization Memo 3 ~.11 ..'1 Proposed Staff Change Amounts include wages and benefits estimated at 450/0 Original Proposed Position Total Percent Budaet Budaet Telecommunication Fund Wanderscheid 135,000 35% $ 47,250 Tuneberg - Central Service Charge 135,000 30% 40,500 Tuneberg - Direct 140,000 20% 28,000 IT Director - New 120,000 80% 96,000 Secretary 53,464 15% 8,020 Technician 54,577 100% 54,577 150,347 124,000 Proposed Electric Fund Elect ~ Budaet Wanderscheid 135,000 65% 87,750 Wanderscheid 135,000 100% 135,000 Secretary 53,464 85% 45,444 Secretary 53,464 100% 53,464 133,194 188,464 IProposed Central Service Fund Impact CS ~ Budaet Tuneberg 135,000 100% 135,000 Tuneberg 140,000 80% 112,000 IT Director - New 120,000 20% 24,000 Controller - New 108,000 100% 108,000 Account Representative! - New 70,723 100% 70,723 205,723 244,000 Central Service Charge Adjustment (40,500) Total $ 448,764 $ 556,464 CITY OF ASHLAND Memo DATE: TO: FROM: REGARDING: May 3, 2005 Mayor and City Council Dick Wanderscheid Vacant Telecommunication Technician Position The proposed AFN budget for next year does not include funding for the Teleconlmunication Technician position which was a new position that was added to this year's budget ( FY 04- 05). That slot was filled in mid September and was filled until February 5, 2005 w'hen the departure of another employee, our Headend tech created the vacancy that currently is being filled by having the Telecommunication Tech working out of class in this position. The vacant slot was then filled by hiring out of the union hall on a temporary basis. This position was created because of the Navigant study which determined that AFN was well below national averages for employees per customers. It was envisioned as some one who cou1ld help out with both marketing and technical issues on an as needed basis. This job was not included in the proposed budget to help offset the costs of the new AFN/Computer Services manager position. Because we have back filled the vacant job with temporary help, AFN has had a full complement of staffing since mid September.. Loss of this employee in the next budget year will result in less production from AFN staff and customer service could be compromised. There is money budgeted for temporary staff to help with the fall return of students. More realistically however some of the behind the scene but very necessary task.s will probably suffer more than customer service. This could have long term negative effects on system reliability. Many tasks that have not been done from Network launch because of the build out and rush to sign up customers can no longer be ignored. Tasks like FCC mandated performance testing, continuous sweeping and balancing of the system, fiber management and cable design simply must be done or system reliability and legal benchmarks will not be met. Adding this new position to AFN's staff was critical to begin catching up on these areas. New construction is also a critical area that suffers from lack of staffing. Filling this vacancy does provide the ability to install AFN service in a much timelier manner which is important for many new customers who don't like to wait extended periods of time for their install. This is especially important in the fall with the return of SOU students. It also provides backup and special as needed help on out of the ordinary projects and provides an additional on call person for weekend duty rotation. ELECTRIC DEPARTMENT 90 North Mountain Aveenue Ashland, Oregon 97520 www.ashland.or.us Tel: 541-488-6002 Fax: 541-488-5311 TTY: 800-735-2900 ~~II ._~~ The new AFN Manager will no doubt evaluate personnel needs and have to determine appropriate staffing levels. Funding this position and leaving it vacant would allo\v the new manager to select a person with appropriate skills and place them in this slot if that seems warranted. If they don't see a need to fill the position it could remain vacant as a cost saving measure. Having the vacant slot would also allow flexibility in any restructuring of duties that the new manager might find beneficial. Handing the management of AFN to a new individual without the appropriate staffing will greatly hamper the chance of implementing changes which can help turn around the financial situation at AFN. Options 1) Do not fund this position at this time. Allow the new manager to evaluate AFN' s needs and allow their discretion to possibly redesign the position, develop different restructuring efforts, evaluate out sourcing of critical tasks, or explore other more efficient ways for AFN to deliver services. 2) Fund the position for FY-05-06 but leave it vacant until the new manager can evaluate the job description and fill the vacancy 3) Fund and fill the current vacancy immediately. While there is a need for AFN to have adequate resources to complete the various tasks at hand and because an outright loss of this position without mitigating it in some other manner could seriously impacts this ability, my recommendation would be to pursue option one at this time. This would allo\v the new individual the utmost flexibility in shaping the AFf\.J staff and tailor the vision of the best way to achieve success. ---.----.-...-.------- ELECTRIC DEPARTMENT 90 North Mountain Aveenue Ashland, Oregon 97520 www.ashland.or.us Tel: 541-488-6002 Fax: 541-488-5311 TTY: 800-735-2900 ..~- ._~~ CITY OF ASHLAND Memo DATE: April 29, 2005 TO: City COLI ncil FROM: Gino Grimaldi, City Administrator RE: AFN Reorganization Backaround Over the past several months staff has been evaluating the organizational structure of the Ashland Fiber Network (AFN) with a particular emphasis on its location in the overall city structure. Lee Tuneberg, Dick Wanderscheid, and Tina Gray participated in the evaluation. AFN is currently a part of the Electric Department and under the responsibility of the Electric and Telecommunications Director. Until recently, a "shared" AFN sales position located at City Hall was under the Direction of the Finance Director but is now part of the Electric Department. Billing and collection are the responsibility of the Finance Department. Potential AFN customers first contact the city to purchase city utilities by contacting the Finance Department. The group of employees that provides support to the city's computer systems, networks, personal computers, and phones is under the direction of Telecommunications Engineer. The Telecommunications Engineer's time is split between AFN and computer services. This position reports to the Electric and Telecommunications Director. Discussion The Electric Department and AFN represent significant responsibilities. Electric fund expenditures are approximately $11 million with 21 employees. AFN is a business with expenditures of $2.6 rnillion with 8 employees. The expertise to manage the city's electric utility and AFN are different. Initially, during the construction phase of AFN, the experience and knowledge needed to manage both were in better alignment. However, noVII' that the construction of the AFN system, with exception of providing service to new developments, is Administration 20 East Main Street Ashland, Oregon 97520 ---------..-.--.- Tel: 541-488-6002 Fax: 541-488-5311 -.'11 ._~~ CITY OF ASHLAND Memo complete, it is time to shift the emphasis of the management of AFN to maintaining the existing infrastructure; keepin~~ current with the ever changing world of technology; increasing the customer base for the current AFN products; and evaluating new AFN products that will improve the Financial condition of AFN. There are also a number of challenges and opportunities facing the Electric Department that will require the full time attention of the Electric and Telecomrnunications Director. Those challenges and opportunities include the evaluation and implen1entation of a SCADA system, implementing the new rate structure from BPA, purchase of the Mountain Avenue substation, re-negotiation of BPA contract and succession planning for key positions. In short, AFN and the Electric Department require the attention of full time manauers. Potential customers of AFN are people who are currently subscribers to the competing providers of cable television and internet services. Recent marketing efforts have shown that it is difficult to move customers from the competition to AFN. The best opportunity to bring a new customer to AFN is when they come to the city to establish utility services. This activity occurs in the Finance Department. Placing employees that have the greatest opportunity to obtain additional customers in the same department, under the same leadership with the other AFN employees increases the ability to obtain new customers and to provide consistently good customer service. AFN relies heavily on the Finance Department to prepare financial information used to make short and long term revenue and expenditure projections. This reliance on the Finance Department exceeds 'what is required by most city departments. This is due to the fact that there is a lack of staff time available within AFN to evaluate and prepare financial information. As information flows between the two departments it increases the probability that errors will occu r. Propose Oraanizational Structure It is proposed that the Electric and Telecommunications Director dedicate 1000/0 of his time to the management of the Electric Department. The responsibility for the management of AFN be assigned to a newly created position. The tentative title for this position is IT/Telecommunications Manager. Administration 20 East Main Street Ashland, Oregon 97520 --.------- Tel: 541-488-6002 Fax: 541-488-5311 ~4~- ._~~ CITY OF ASHLAND Memo The IT/TelecommuniGations Manager will report to the Finance Director. The proposed organizational structure will require the elimination of the Telecommunication Technician in AFN. This is being done in order to accommodate the increased cost associated with having a full time manager of AFN. The Telecommunication Technician position is currently vacant. A Controller position vvill need to be added to the Finance Department in order to backfill for the time that the Finance Director will need to spend on AFN and Computer Services issues. The Controller position will also assist the Finance Department in completing critical tasks that they are not able to complete at this time. Financial Impact It is anticipated that the financial impact to AFN will be almost neutral due to the savings from an eliminated positions and recognizing corresponding changes in Central Service Charges. The impact on the Central Service Fund is an increase of approximately $40,000 that will be shared by all departments benefiting by added support from the Controller. Future Issues The impact of the elirnination of the Telecommunication Technician will need to be carefully monitored. It is critical that the reliability of the AFN network be maintained and that customer service requests are addressed promptly. The knowledge, skills and abilities of the new manager position will need to be carefully crafted. It is anticipated that there will be an emphasis on selecting a person with direct experience managing a private or public system similar to the size and scope of AFN. Alternatives Consid.~red but Reiected All of the alternatives considered other than maintain the status quo, included dedicated 1000/0 of the time of the Electric and Telecommunications Director to the Electric Department and creating the AFN/Conlputer Services Manager. Administration 20 East Main Street Ashland, Oregon 97520 ------..----.--------- Tel: 541-488-6002 Fax: 541-488-5311 ~4~1I ._.~ CITY OF ASHL,AND Memo Several alternatives that were rejected involved variations on how to absorb the iimpact of moving AFN under the Finance Director. The variable for these alternatives revolved around the number of staff to add to the Finance Department. Moving AFN under the City Administrator was evaluated but rejected due to the increased workload it created by adding an additional position reporting to the City Administrator. Separating Computer Services from AFN and creating a separate Computer Services Department was also rejected due to the overlapping responsibilities between AFN and Computer Services. The two could be split bit it would result in increased costs for both AFN and Computer Services. A more comprehensive reorganization involving the creation of an Administrative Service Department was rejected to the relatively high cost of the alternative. Implementation Tim.eline Full implementation of the proposed organizational structure cannot take place until the 2005- 06 budget is approved. However, staff will be proceeding with the recruitment of the AFN/Computer Services Manager as soon as possible so that the position can be filled shortly after July 1 st. The interim transition of AFN to the Finance department will begin immediately and will require moving ahead with steps to backfill the Finance Director to enable this transition. CC: Dick Wanderscheid Lee Tuneberg --_.__._-~_.- ----- -------,_._- Administration 20 East Main Street Ashland, Oregon 97520 Tel: 541-488-6002 Fax: 541-488-5311 ~4'1I ._~~ CITY OF ASHLAl'~D Council C~ommunication Meeting Date: Department: Contributing Depts: Approval: Resolution Authorizing a Subsidy From the Electric Fund to the Telecommunications Fund For Debt Service #(), Primary Staff Contact: Lee Tuneberg, 552-2003 tuneberl@ashland.or.us Secondary Staff Contact: Dick Wanderscheid, 552-2061 wandersd@ashland.or.us ~:~;;e2005 ~ Electric Gino Grimaldi <; Statement: The first debt service payment from the August 2004 refinancing of AFN is due to be paid in July and staff is anticipating a cash shortfall of nearly $200,000 at June 30, 2005. Staff projects that revenue shortfalls and cost increases have resulted in the need for other monies to be generated for this debt service and a potential ongoing need into the future. This first payment must be initiated in the first few days of July to ensure a timely receipt of it to avoid late fees. Staff is requesting that the shortfall be covered via a subsidy from the Electric Fund. Background: From inception, AF1~ has relied on borrowing to meet financial obligation on both construction and operational levels. This culminated in a debt load of approximately $14,000,000 by end of FY 2003-04 and annual payments over $1,000,000 and growing. In August 2004 staff was successful in refinancing all internal and external debt based upon then current projections from an independent study of operational costs, revenues and proposed initiatives that were sufficient to generate ample revenue to pay AFN's way. The projected numbers have turned out to be "soft" meaning that the number of customers and the revenues generated through the initiatives have not been realized, causing a cash shortfall to meet obligations. Conservative estimates indicate that this condition will probably continue for years. In prior years, cash shortfalls were resolved by internal borrowing each year. The anlount grew annually, initially representing inadequate funding for construction, then operational losses and a shift of external debt to internal debt. The total debt grew and was projected to increase and remain high so refinancing became a viable option. Refinancing did several things: 1. Simplified the debt into one source and one payment schedule. 2. Restored needed cash balances in the funds that had made the internalloan(s). 3. Simplified the budget by eliminating the annual process of borrowing and the: doubling impact it had on the total budget amount. 4. Better aligned AFN's type of debt with the operations and resultant losses. 1 ~~, 5. Gave AFN an opportunity to make progress on operational revenues as compared to expenses before this first payment was required. Operational revenues are close to covering operational expenses, excluding debt service (principle and interest) and depreciation (a non-cash item) but sufficient cash ",ill be needed to pay for debt service. The proposed budget anticipates cash shortfalls but the arnount needed each year will vary based upon a host of things including customer growth and revenue stability, staffing costs and increases in benefits, broadband and programming costs, annual operational capital costs and the need for updating technology. The city will need to decide how cash shortfalls are to be covered, whether returning to internal borrowing or providing some type of subsidy each year or as a policy over the length of time that AFN revenues do not cover all of AFN expenses including debt service. Staff looks to the Electric Fund to guarantee the Telecommunications Fund debt and operations in that AFN was launched from that fund, has close ties in its operations and all financings have identified electric revenues as "first in line" to guarantee the public that debt paymenJs will be made. The recent financing did give the city latitude to use any other un-restricted revenues to pay debt but it: seems to make most sense for the needed cash to come from this related industry. Related City Policies There are no d.irect policies related to subsidies, especially for technology. Hov~rever, there are examples of operational transfers between funds that are not paid back. A transfer is different from a subsidy except when it relates to an activity that does not generate sufficient revenues to cover costs. City cemetery operations is an example of this. Enterprises are expected to pay their own way, charging the amount needed for Ashland's operations and capital costs to ensure the viability of those necessary services. Rates set for those enterprises are not readily comparable or do they directly correlate to what is charged by other cities or in a competitive basis with another service provider. AFN represents a combination of technology needed by many businesses in the community and an added service provided on several levels to the general public. This makes its cash needs unique when compared to the other utilities operated by the city. The city's financial management policies include knowing the cost of the services provided and charging appropriately, accounting for services on a fund basis; maintaining fund integrity and cash balances to protect the credit rating of the city. Each year the city reviews the above and other fiscal policies through the budget and audit process. The city consciously adjusts financial practices to accomplish its overall financial goals and a subsidy can be one elen1ent assisting in compliance with viability. Additionally, covenants within all financing documents guarantee that the city will ensure that debt service requirements will be met, including AFN's. Council Options: Council adopt the attached resolution, approving the concept and process of a subsidy, or subsidies, fronl the Electric Fund to the Telecommunications Fund to provide cash by July, 2005 and January, 2006 for debt service as is needed. Council amend the resolution changing the source of cash, amount or timing of a subsidy to the Telecommunications Fund. Council defer action awaiting more infonnation. 2 CITY ()F ASHLfl~ND Any Council action impacting the budget will need to be brought back to them in the fonn of a resolution for transfer of appropriations or supplemental budget in order for money to be transferred in any fashion. Staff Recommendation: Staff recommends that Council adopt a policy that AFN cash shortfalls for debt service and other items specified by Council be resolved via a subsidy from the Electric Fund to the Telecommunications Fund in the amount(s) needed until such time as revenues are sufficient enough to not require such support. Potential Motions: Council movesJo adopt the policy of funding AFN cash shortfalls with subsidies frorn the Electric Fund. OR No motion, Council prefers to defer this policy decision until a later time. Attachments: Resolution authorizing a subsidy 3 ~~, RESOLUTION NO. 2005- ~"l A RESOLUTION AUTHORIZING A SUBSIDY FROM THE ELECTRIC FUND TO THIE TELECOMMUNICATIONS FUND FOR DEBT SERVICE Recitals: A. The City of Ashland has constructed and operates a telecommunications utility known as Ashland Fiber Network (AFN), and B. AFN operattons and debt service and other activities are accounted for iin the city budget within the enterprise fund known as the Telecommunications Fund, and C. AFN construction, assets and operations developed out of the Electric Fund and all previous financing has identified the Electric Fund and electric rates as the resources to assure debt service payments, and D. The cost of construction and operational losses from FY 1999 to date have resulted in a debt amount of $15.5 million dollars with annual payments exceeding $'1,000,000, and E. The debt was obtained though selling revenue bonds backed by the full faith and credit of the city" pledging its financial resources to assure debt service payments will be made in a timely fashion, and F. Current operations of AFN have not generated enough revenue to provide adequate cash balances to meet the annual debt service requirements, and G. Additional cash is needed from another fund to meet current debt service requirements including approximately $802,0000 in interest July 15, 2005 and an interest payment of approximately $432,000 on January 15, 2006. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. .The Finance Director is hereby authorized to transfer sufficient funds in FY 2004-05 and FY 2005-06 to meet debt service and other requirements as is established by separate resolution of the Council. Each transfer will be supported with justification and brought to Council for approval prior to implementation. SECTION 2. .Any transfer will be considered a subsidy to the Telecommunications Fund from the Electric Fund, wHI be done only as needed and authorized by Council. or~~nt\ ~~ SECTION 3. Anticipated subsidy amounts and transfers will be budgeted as is necessary for compliance with Oregon Budget Law. 10f 2 SECTION 4. This rHsolution takes effect upon signing by the Mayor. This resolution was read by title only in accordance with Ashland Municipal Code ~2.04.090 duly PASSED and ADOPTED this 3rd day of May, 2005. Barbara Christensen, City Recorder _ SIGNED and APPROVED this 3rd day of May, 2005: John W. Morrison, Mayor Reviewed as to form: 2 of 2