5.3. ERMUSR 11-13-2012 - Laserfiche WebLink

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• New starting 2013 - SCADA expenses, estimate $8,000; radio licensing cost ($75 per radio) $3,000 included in Distribution Expense • Maintenance reduction in meters as change-outs completed, and shifted to underground services • Mapping included $20,000 to include outside help for specialized areas • Customer Service expenses increased to include CRC after hours call services, online billing through online payment portal, increased credit card usage • Conservation Improvement Program includes increased commercial rebate funding of approximately $60,000 • Consulting increased for Territory Acquisition preparation • Dues/Subscriptions/Fees increased for anticipated agency association costs • Schools/Meetings increased for new employees, APPA participation, APPA certification course, and strategic planning • Proposed staff additions midyear for Executive and Key Accounts Assistants • Ipads for commission meetings Water Department Expense Budget Our water customers have been fortunate not to have a rate increase for the past three years. As noted in October, the preliminary water rate analysis resulted in a needed 5% increase in the rates across the board—with base monthly charges and each tier being impacted to balance the budget. This was thought to be too much of a rate increase in one year. Also, discussions over the past year have provided direction to leave the second and third tiers unchanged and gradually grow the first tier to narrow the gap between these tiers. The proposed budget increases the first tier only, but also increases the base monthly charge. The first tier is increased by$.15, from $1.50 to $1.65. The increases of the base monthly charges are approximately $1.50 for seniors, $2.00 for residential, and commercial varies $2.50 to $11.00 dependent on the line size. This distribution of the rate increases in this way provides for a balanced budget with appropriate matching of income and expenses for 2013 and positions ERMU for smaller rate increases in the future. This distribution of rate increases meets one objective of growing the first tier, however does not reduce the impact of rate adjustment in one year(the overall 5%). Some additional direction is necessary if the commission desires to reduce the impact this year (such as, the maximum deficit for an unbalanced budget, the maximum reduction of reserves, or if bonding is desired.) Notable items in the water budget for 2013 are: • Zone water pressure improvement project $40,000 is included in the expense, and an offsetting reimbursement from the trunk fund is included in the income • Water Tower Lease income is increased $23,000 for 2013 for additional equipment on one tower • Maintenance of Structures includes roof repairs for well houses ONEAEO BP Reliable Public IP 1 Power Provider P O W E R E D T o SERVE