2.2. ERMUSR 01-09-2018 - Laserfiche WebLink

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• 2018 cost of living adjustment of 2.5% for all pay plan groups • Additional 0.5% market adjustment for the Lineworkers Pay Group • Additional 2.0% market adjustment for the Customer Service Representative position • The addition of a 2.5% employer contribution to the 457 deferred compensation benefit for the Management Pay Group. • Unused vacation time to be deposited into Health Care Saving Plan upon retirement in lieu of being paid out • Reclassify the Lead Bore Rig Operator position from Field Group Pay Grade 8 to Field Pay Grade 9 • Reclassify the Inventory Person position from Field Group Pay Grade 6 to Field Pay Grade 8 Motion carried 5-0. 5.3 2018 Business Plan/Budget: Budget and Rates In November,the preliminary 2018 budget and rates were presented to the Commission. Ms. Slominski noted that there had been several changes due to finalizing of projects and expenses, as well as some new accounts created and amounts redistributed. The changes were noted on the Revenue and Expense Budgets in the notes and explanations section,with the prior items presented in November in blue. Ms. Slominski presented the 2018 budget and reached out to the Commission to see if they had any questions. Commissioner Stewart had a few questions regarding the $50,000 increase to the consulting fees line item for the new bond's bond counsel and whether it could be amortized over the life of the bond. Staff responded. Mr. Adams spoke to the new IT position that was being budgeted for in 2018, and how the timing of hiring for the position would be tied in with our cyber security audit.Although the position will most likely not be filled for 3 to 6 months, Mr. Adams stated that staff had budgeted for the full year. There was discussion on the shared IT services with the city. Chair Dietz inquired as to how the proposed electric and water increases would impact customers. Staff responded that the 2018 electric rates result in increases of 1% or less for typical customers in all rate classes, and water rates result in a blended increase of 1.85%to the monthly meter charge and first tier water use, and no rate increase to the second and third tier water use rates. Mr. Sagstetter also touched on the $1/kW demand credit that would be going away in 2018, and how that would impact customers on the demand electric service rate; the estimated rate increase for those customers will range from 3 to 6%. There was discussion. Moved by Commissioner Thompson and seconded by Commissioner Stewart to adopt the 2018 Business Plan/Budget. Motion carried 5-0. Page 4 Regular Meeting of the Elk River Municipal Utilities Commission December 12,2017 29