10-10-2002 ERMU MIN - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission October 10, 2002 5.2 Review Revised Proposed 2003 Electric Capital Budget Staff has revised the proposed 2003 electric capital budget, and discussed the changes with the Commission. Changes were viewed positively. Discussion centered on the Proctor and County Road 33 project. Construction has been moved up to begin in early spring of 2003. Timing and details were reviewed. 5.3 LFG Project Update The LFG facility is scheduled to be test run the week of October 14, 2002, with the open house on October 22, 2002, from 2:00 to 4:00 PM. Bryan Adams explained the impact on the budget, regarding revenue, expense, and the debt service. It is anticipated that the funds allotted for first year operating contingencies will be used to complete the construction phase. 5.4 Update Great River Energy Wholesale Electric Rate Bryan Adams has received a proposed announcement of GRE's 2003 rate. It appears that a 1.5 mil increase may be anticipated, and that the 5 year 5% option will be the most desirable. George Zabee moved to approve the 5 year 5% option for purchase of power. John Dietz seconded the motion. Motion carried 3-0. 5.5 Review 2003 Proposed Water & Electric Expense Budget The proposed water and electric expense budgets were reviewed. The growth component for the service area will have a large impact on budget. Assumptions regarding the growth were debated. James Tralle asked if the increase in purchased power would result in a rate increase, or handled as a power cost adjustment. It was noted that in the past the Commission preferred to use rates, rather than a PCA, feeling that the customer would more fairly be aware of rates. John Dietz would like to lower demand rates if possible. Bryan Adams presented WAC rates,using an increase from $1,350 to $1,500, along with using inclining block water rates. It is anticipated that the City will be raising SAC fees as well. John Dietz wants Staff to notify developers of the WAC increase as soon as possible. A discussion between Commission and Staff regarding Residential Meter Deposits was discussed, as well as service sign-ups. Staff is directed to return at the November meeting with information.