07-10-2018 ERMU MIN - Laserfiche WebLink

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5.2 Financial Report—May 2018 Ms. Slominski presented the May 2018 financial report as outlined in her memo. She also addressed a question that Commissioner Stewart had regarding the electric departments Gain on Disposition of Property line item for $16,000 and what that was for. Ms. Slominski explained that we traded in a bobcat we owned towards the purchase of a newer piece of equipment, and because it was a fully depreciated item it becomes a gain on the sale for the trade in value. She stated that we received $20,000 for the trade-in; $16,000 of that being reflected in the electric departments miscellaneous revenue, and $4,000 in the water departments. Chair Dietz had a question regarding the water connection fees. Mr. Volk responded. Moved by Commissioner Bell and seconded by Commissioner Stewart to receive and file the May 2018 Financial Report. Motion carried 5-0. 5.3 Wage & Benefits Committee Update The Wage & Benefits Committee (W&BC) met June 27, 2018. The primary focus for the meeting was to update on items from the May meeting regarding staffing levels, organizational growth, and succession planning. Additionally, the committee reviewed proposed policy language changes needed to comply with state statute for the 457 deferred compensation plan for the manager group. Ms. Slominski presented the W&BC update along with the proposed recommendations. Ms. Slominski talked through the three new discussion points as outlined in the memo. There was Committee consensus on the following: Employer Matched 457 Deferred Compensation for the Management Group—Per legal counsel recommendation, the following proposed language modification was agreed upon by the Committee: "Employees in the Management Group are eligible for an additional employer matching contribution up to 2.5% of the manager's annual base salary, conditioned on the individual providing the Utilities with authorization for the necessary payroll deduction." Timing of Employer Contributions to 457 Deferred Compensation for all Employees—After discussing the pros and cons, including the administrative challenges of making the annual mid-year employer contribution, Committee consensus was to make a policy change to allow for the employer contribution to be made each payroll rather than once a year on May 31; effective as soon as administratively feasible. Award of Annual Personal Leave Day—As this would be the only remaining mid-year item, W&BC consensus was to make a policy change to allow for this being awarded in January 1 with a December 31 expiration if not used; to be effective January 1, 2019. The Commission had a few questions. Staff responded. Page 4 Regular Meeting of the Elk River Municipal Utilities Commission July 10,2018