2.2 ERMUSR 11-15-2016 - Laserfiche WebLink

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therefore an annual reduction of approximately$3,500 is what would be needed. 5.2 2017 Budget: Water and Electric Expenses Theresa Slominski presented the first cut of the 2017 Water and Electric Expense Budget and noted that the expense budget will change as the complete 2017 budget is assembled and the finalized wholesale power costs are reflected. Wholesale power costs, as well as revenue and rate increases for 2017 will be presented in November. Water Department Expense Budget- The 2017 forecast for water expenses reflected a 7.83% increase over the current year budget. Eric Volk shared that he had decided to include a few notable expenses here instead of the Capital Budget. Theresa provided further explanation on the rationale behind including the notable expenses here versus the Capital Budget. Most notable were an increase in Maintenance of Wells where $100,000 was included for additional expenses, Maintenance of Water Mains for leak detection and repairs, and software licensing. Electric Department Expense Budget—The 2017 forecast for electric expenses reflected a 2.18% increase over the current year budget. The wholesale power costs which make up between 70-75% of the operating budget were not included as staff is still waiting for final numbers. Although early estimates have come in at a 1.88% increase in power cost, staff is anticipating closer to 2.5%. John Dietz had a few questions on the line items that had been noted. Staff responded. 5.3 2017 Utilities Fee Schedule Troy Adams presented the 2017 Fee Schedule to the Commission. There were just four adjustments to the schedule from 2016 to 2017. A fee for photocopies was also added to accommodate for data requests. Staff recommended the Commission approve the 2017 Utilities Fee Schedule for adoption into ordinance by the City Council. John Dietz had a few questions. Staff responded. Daryl Thompson made a motion to approve the 2016 Fee Schedule. Al Nadeau seconded the motion. Motion carried 3-0. 5.4 Commercial All Electric with Ground Source Heat Pump Tariff Tom Sagstetter shared that during the Area 2 service territory transfer, staff identified a commercial customer class that was not represented in ERMU's existing commercial tariffs and load management rates. In an effort to help accommodate the special circumstances for existing customers on this Connexus rate, staff has developed a new Commercial All Electric with Ground Source Heat Pump Tariff. The tariff was designed for customers that have made a commitment to operate their facility as efficiently as possible using only electric energy for all of their requirements. Tom went over the benefits to ERMU of Page 7 Regular Meeting of the Elk River Municipal Utilities Commission October 11,2016 23