11-12-2003 ERMU MIN - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission November 12, 2003 5.2 Review Financial Projections Bryan Adams reviewed the electric and water income statement projections, using the 2004 budget assumptions. The electric income statement projections included one with a $750,000 bond, and one without. Discussion centered on cash reserves, bonding, and the best ways to keep costs down, and still maintain competitive rates. The water side was discussed in the same manner, assuming relatively constant growth in WAC units, and sales. Discussion continued between Commission and Staff. No action necessary. 5.3 Review Proposed Water Service Line Change Bryan Adams addressed the issue of qualified water utility personnel repairing water valves in customer service lines before the meter. The second item discussed was the insurance policy, which would pay for customer water services that have failed. It was concurred, after review, that the insurance policy would not be necessary. Jerry Takle moved to add Utility staff, at owners authorization, may replace water valves before water meter. James Tralle seconded the motion. Motion carried 3-0. Commission was advised by Staff, that in January, 2004, water personnel would begin stand-by duty. 5.4 Review Finalized Great River Energy Wholesale Rate Bryan Adams reviewed changes to the wholesale electric rate that was given to the Commission at the October 15, 2003 meeting. GRE has adopted two rate structures at their November meeting. They have submitted their adopted rates to RUS. Upon RUS approval, Connexus, and ERMU must submit the approved rate to FERC. Robert McDermot will again be representing ERMU in this matter. Commission and Staff continued discussing rates, as well as production. 5.5 Review& Adopt 2004 Electric and Water Budget The finalized 2004 Electric and Water Budget was presented to the Commission for discussion. James Tralle moved to approve the 2004 Electric and Water Budget. Jerry Takle asked about the actual figures for previous years, and Staff responded that there is a mistake in those history columns. John Dietz, and James Tralle asked about the possibility of a bond issue in 2004 for the electric utility, since rates are low at this time. Discussion of the issue followed. Commission, and Staff agreed that the process used for budgeting has been successfully completed for 2004, and that the same system be used for future years. James Tralle withdrew his original motion.