5.2 ERMUSR 06-12-2018 - Laserfiche WebLink

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Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Troy Adams, P.E. - General Manager MEETING DATE: AGENDA ITEM NUMBER: June 12, 2018 5.2 SUBJECT: 2017 Annual Report ACTION REQUESTED: Receive the 2017 Annual Report BACKGROUND/DISCUSSION: Historically, staff produces an annual report after the Commission has received the audited financial report,typically in April. By the time the annual report is created and distributed,the information is dated.Additionally,the annual report has been produced in book format. The size and cost of this product makes it not economical for distribution of physical copies by mail to all of the customers. These two observations bring into question the value of this product,the process in which it is produced and distributed, and the timing and relevancy of the information. The leadership team analyzed these concerns earlier this year. The creation of an annual report does provide value based on the product alone. This report allows for transparency in operations for our consumer-owners. This report serves as a vehicle for communication for expected and/or timely messaging. This report provides a concise annual overview of organizational health in an achievable format. The report on those benefits alone provides value and is a product that should continue to be produced. The leadership team then analyzed the concerns of: timing of information; and breadth of distribution and depth of information compared to expense and value. The timing of this report does not need to wait until after the audited financial are received by the Commission. In fact, in recent years the annual report didn't include any financial information because it was redundant to the audited financial report. It is possible to produce the annual report separate from the audited financial report. And, it is then possible to produce the annual report earlier in the year so the information is more relevant from a timing perspective. Starting in 2019,the annual report will be produced earlier in the year as a standalone document from the audited financial report. The size of the annual report directly impacts the depth and volume of information that can be included. A larger annual report allows for more information to be communicated while increasing printing and distribution costs. It is possible to concisely communicate key information and messaging which provides transparency in operations to our consumer-owners. This would lower printing costs and make it economically feasible to distribute the report to all customers. This approach was implemented now for the 2017 annual report. This report will be printed by NISC and included for distribution to all customers in with the bills. ATTACHMENTS: • 2017 Annual Report Page 1 of 1 69