2.2. ERMUSR 12-13-2016 - Laserfiche WebLink

Home Browse Search

been very involved in helping us plan for the implementation and financial reporting of them. There was discussion. Daryl Thompson stated he would be willing to make a motion to keep the current auditors provided staff could find an area in the budget where they could cut an additional $1,750 besides the cost savings identified at this meeting. Staff was directed to report back to the Commission at the next meeting on where the cut was made. Daryl Thompson made a motion to approve retaining the current auditors (AEM) for the next five years provided an additional$1,750 in budget cuts are made for said timeframe. Al Nadeau seconded the motion. Motion carried 3-0. 5.0 NEW BUSINESS 5.1 2017 Budget: Rates and Review Troy Adams provided an overview of the 2017 budget. The preliminary projected need for ERMU electric revenue increase is between 2.5% and 2.8%which is based on a 2.5% increase in wholesale power costs. Staff anticipates seeing the approved GRE wholesale rates for 2017 prior to the December Commission meeting and will adjust the budget accordingly for consideration by the Utilities Commission. Troy shared that the retail rate classes will be designed incorporating the results of the cost of service study, feedback and direction from the Commission, and finalized wholesale power costs. There was discussion on the electric cost of service and rate design study. Staff requested Commission direction on the allocation of the proposed rate increase. After discussion of the different options,the Commission was in favor of an across the board increase for all retail rate classes. The ERMU rate classes will be included with the budget in December for Commission adoption. In order to maintain the financial health and to plan for the short and long term water capital project projections, the 2017 water budget reflects an overall 2% increase in revenue. Troy explained that the allocation of the increase will be collected through an increase in customer charge and 1St tier water use rates. The rate design will be presented with the budget in December. Theresa Slominski presented the 2017 summary of budgets. Troy shared that one thing the summary does not reflect is the $1.00 per kW temporary demand credit as that would be covered with a transfer from reserves. Troy stated that if the Commission chooses to offer the credit for 2017, staff will build that into the budget. The Commission supported doing so. Theresa walked through the highlighted changes in the electric and water revenue and expense budgets. Mark Fuchs presented the 2017 electric department capital budget and went over the highlighted changes. Notable items for the electric budget included: territory acquisition costs; a new substation, pre-construction site work for the field services facilities; and the Page 4 Special Meeting of the Elk River Municipal Utilities Commission November 15,2016 23