Meeting Date: May 17, 2023
To: Members of the Environmental Quality Commission
From: Risi Karim, Assistant to the City Administrator
Title
Annual Report of Carbon Reduction Fund (2021-2022).
Body
Action Requested:
Commission recieves the Annual Report of the Carbon Reduction Fund (2021-2022).
Summary Report:
The Carbon Reduction Fund was started in 2021 to assist with implementation of items outlined in the Climate Action Plan related to carbon based fuel sources. The Carbon Reduction Fund allocates a certain percentage of the City Franchise Fee Program, a program in which Xcel Energy collects monthly payments from utility subscribers and provides those payments to the City, which is used to fund Capital Improvement Projects.
The City of Northfield collects quarterly payments from Xcel Energy and deposits those dollars into the Carbon Reduction Fund. The amounts of these quarterly payments are dependent on the franchise fees but are generally between $24,000 and $25,000. The total amount collected in one calendar year is not to exceed $100,000.
Budget balance and expenditures for 2021-2022 are listed below:
2021 Beginning Budget Balance - $0 (fund established 9/2021)
2021 End Balance - $59,096*
*No expenditures in 2021, balance reflects revenue collected
2022 Beginning Budget Balance-$59,096
2022 Revenue-$100,000
2022 Expenditures
$14,485 Nokomis Energy- Clean Energy Transition Study
$ 6,000 Americorp Vista Program - Sustainability Associate
$ 5,000 HCI - Energy Squad Visits
$ 2,850 HRA rebate reimbursement - Residential Energy Efficiency
$28,335 Total Expense
2022 End Balance-$130,761
In order to fund some of the strategies in the Climate Action Plan, especially those focused on carbon sequestration, the Carbon Reduction Fund allows for an alternative source of revenue for projects without additional burden on the general operating fund. In 2022, the City co...
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