5.4. ERMUSR 10-21-2014 - Laserfiche WebLink

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their 2015 wholesale power rates, however early indications are that GRE will have an increase just over 3 %. Typically, there is some adjustment of the rate structure and that may impact us more than that. The final GRE board approval of wholesale power rates usually comes by early December. For preliminary budgeting, the attached expense budget reflects a 4% 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 $320,808 or 1% 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. WWa es — The water and electric budgets currently reflect a 3% wage increase as typically done for preliminary budgeting. Early indications are that cost of living adjustments will likely be below 3 %; however, these evaluations have not been completed by the Wage and Benefits Committee yet. The Committee will be bringing back a COLA recommendation as well as any market adjustment recommendations for positions or pay groups for Commission consideration at the November Commission meeting. 2. Staff Additions — Staff proposed the consideration of the addition of 2 staff positions: an entry level Field Engineer and a Key Accounts Specialist and these have been included in the expenses, with the intention of hiring the Engineer mid -year and the Specialist at the beginning of 2015. The mid -year addition of an entry level Field Engineer would be offset by the elimination of $30,000 in directly related engineering consulting expense that has been in the budget in previous years. This is another case of offsetting the expense related to outsourced work and bring the work in- house. Also included is a part- time cleaning position or contracted cleaning employee which would be starting at the beginning of 2015. With the retirement of the current Technical Services Superintendent we would hire the replacement early in 2015 to allow for an overlap in training. 3. Software Conversion — The NISC software conversion will happen in the first quarter of 2015, and we have budgeted expenses for software support for the entire year. As with the ABS conversion estimates, there are some additional expenses included for staff training time related to the conversion. ATTACHMENTS: • Proposed 2015 Electric Expense Budget • Proposed 2015 Water Expense Budget Reliable Public Power Provider Page 2 of 2 67 N"" W E R E D 0 Y ATURg P O W E R E D To S E R V E