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(A) PUE finances.
(1) Council shall retain control and authority over PUE finances through periodic reviews and other oversight to assure compliance with applicable law, policies and procedures.
(2) (a) The Board and Utilities General Manager shall have responsibility over review and recommendations relating to PUE finances. The Board or Utilities General Manager shall audit all bills, statements and accounts payable of Page Utility Enterprises and shall order payment by the Utilities General Manager in accordance with this subchapter, state law and the city code. PUE shall provide Council a monthly summary report of its financial activities with a courtesy copy to the City Manager. Neither the City Manager nor the City Finance Director shall be responsible for the oversight or supervision of the financial affairs of Page Utility Enterprises.
(b) The Board may retain an independent auditor, accountant or other qualified financial consultant to monitor, analyze and advise the Board with respect to PUE financial policies, procedures and performance.
(B) Operating and Reserve (Enterprise) Accounts.
(1) There shall be established a PUE Operating Account for the operating revenue and expenses of Page Utility Enterprises. All revenues received from any source shall be placed into this account, except revenues designated for PUE reserves or the city user fee, if any.
(2) All revenues received for the PUE reserves shall be deposited or invested in accordance with provisions of state law relative to surplus public funds and shall be separately accounted for in an account labeled “PUE Reserve Account”. The PUE Reserve Account shall be an enterprise fund or funds designated only for the upkeep, repair, maintenance, expansion and capital improvement of the PUE electric, water and sewer systems and/or the purchase and sale of electric power and/or electric generation facilities. The PUE Reserve Account shall be carried on the city’s books and on its annual audited financial statement and annual budget with the following notation: “This account is restricted for the upkeep, repair, maintenance, expansion and capital improvement of the PUE electric, water and sewer systems and/or the purchase and sale of electric power or electric generation facilities”.
(C) Annual budget.
(1) The Utilities General Manager shall prepare and present the annual PUE operating budgets which shall be established to cover the cost of maintaining and operating the electric, water and sewer systems, including a proper and necessary allowance for depreciation, debt service and adequate reserves in accordance with industry standards and generally accepted accounting principles appropriate for utilities.
(2) Decisions of the Board relating to the PUE annual budget, rates, finances and purchasing shall be made in strict compliance with policies and procedures previously approved by the Council. The Board shall consider, approve and forward the budget at least three weeks prior to the Council meeting at which the city budget for the ensuing year is to be considered. The Board and the Utilities General Manager shall provide additional information to the Council upon request.
(3) The Council and Board should hold at least one joint meeting at which the Board or its designees shall present its proposed budget. At such meeting, the Board shall present in summary format the results of PUE performance during the current fiscal year and the basis for its proposed budget. In determining whether to approve the proposed PUE budget, the Council shall limit its consideration to the needs of Page Utility Enterprises and shall not consider or provide for the general revenue needs of the city.
(D) Purchasing. PUE purchases shall be governed by the purchasing requirements of this subchapter, compulsory state law and the city code, except:
(1) The Utilities General Manager shall replace the City Manager as purchasing agent for PUE;
(2) Purchases above $20,001 shall be approved by the Board with a monthly notice of all such purchases to be directed to the Mayor and Council; and
(3) All purchases of $100,000 and above, excluding monthly power purchase obligations or other obligations required by Council approved contracts and agreements, are subject to Council approval.
(E) Annual audit.
(1) There shall be a consolidated annual audit of city and PUE finances.
(2) The Auditor responsible shall inform the Chairperson of the Board of the dates of the audit and shall direct a copy of the audit results to the Utilities General Manager and the Chairperson of the Board.
(3) The Auditor selected to perform the consolidated annual audit shall be knowledgeable in regard to accounting principles appropriate for utilities.
(4) The Board shall assure that the books and records of PUE are open and available for review and inspection by the Auditor.
(5) Whenever an annual audit reveals a deficiency in the accounting methods or books and records of PUE, whether or not material, the Board shall diligently investigate and report its findings and conclusions to the Council within 90 days of the date of the audit. Such findings and conclusions shall include any remedial action the Board concludes is necessary or advisable under the circumstances.
(6) The Council shall vote to accept, reject or modify the Board’s findings and conclusions.
(1976 Code, § 2-8-4) (Ord. 588-12, passed 5-9-2012; Ord. 610-14, passed 7-9-2014)