11-13-2012 ERMU MIN - Laserfiche WebLink

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Page 5 Regular meeting of the Elk River Municipal Utilities Commission November 13,2012 5. Meal Per Diem - The Committee discussed establishing a per diem reimbursement policy versus the current practice of submitting receipts and being reimbursed. It was decided that the current policy of reimbursing for actual receipts submitted is adequate and no motion was made to change. 6. Longevity Pay - The Committee also discussed longevity pay and elected to submit the topic to the Commission for consideration. Staff is currently surveying other utilities for comparison data. Information will be brought to the Commission for consideration at a future meeting. 5.3 Review 2013 Budget: Water&Electric Rates The revenue and expense budgets,capital budgets,travel and training, and CIP budgets were presented. We received confirmation that GRE's preliminary rate increases are final and results in a 4.5%rate increase needed for our electric budget. The water rate increase needed was 5%and at the October meeting it was determined that was too high. Staff brought back a suggested rate increase of increasing the first tier$.15 and increasing the base monthly charge for all meter sizes,resulting in a 5% increase overall. Staff asked for either acceptance of the proposed rates or direction in bringing back a different rate increase and at what compromises (reduced reserves,unbalanced budget, bonding, etc.) The commission asked questions on GRE's rate, training, Ipads, and water rates. The commission gave direction to increase revenue overall 2.5%. Increasing the fixed charge and the usage fees to meet this increase should be determined by staff and brought back to the commission. Additional questions followed on contributions to the City, customer accounts expense, legal fees, employee related expenses,and water services. The travel and training budget was also reviewed and John stated that only one out of state travel for APPA should be necessary,either the annual meeting or the legislative meeting but not both. Discussion on the tangible benefits of both these meetings followed. The final budget will be voted on next month.