5.5. ERMUSR 10-08-2013 - Laserfiche WebLink

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0% increase. Typically, there is some adjustment of the rate structure and that may impact us more than 0%. The final GRE board approval of wholesale power rates usually comes by early December. For preliminary budgeting, the attached expense budget reflects a 1% increase in wholesale power costs. This increase includes growth and wholesale power cost increases. This may need to be adjusted prior to final budget approval. Similar to the water expense budget, this draft does not reflect any increase in ERMU electric rates. Without any electric rate increase, the electric department would see a $24,209 or .08% margin. In the recent past we have designed for a 1.5%margin. The rate design will be completed for the November meeting. The following are recommended discussion points for the Commission. 1. Wages—The water and electric budgets reflect a 3% wage increase as typically done for preliminary budgeting. Market indicates a COLA 2.5% is more in line for the industry. The .05% difference in COLA would only have a 0.04% impact on the final budget. The Wage and Benefit Committee will be bringing back a COLA recommendation at the November commission meeting. 2. Rates and Margins— Does the Commission have any comments on direction or have any concerns prior to the development of the 2014 rates? Because the financial reserve targets have been met, what is the Commission's comfort level with margins? 3. Staff Additions— In August staff proposed the consideration of the addition of 2 staff positions: an additional Meter Technician and Customer Service Representative and these have been included in the expenses, with the intention of hiring at the beginning of 2014. Also included is a part-time IT position that we hope to share with the City, with the intention of hiring at the beginning of 2014 as well. 4. Software Conversion—The NISC software conversion will most likely happen in the fourth quarter of 2014, given their schedule is almost full already for next year. Therefore, budgeted expenses for software support are included for one quarter only. Once we have our scheduled conversion date confirmed, we can adjust as necessary. There are some additional expenses included for staff training time related to the conversion. ATTACHMENTS: • Proposed 2014 Electric Expense Budget • Proposed 2014 Water Expense Budget Rp O 11 Page 2 oft NATURE POIEAE Reliable Public Power Provider POWERED To SERVE 52