2.2. ERMUSR 03-12-2019 - Laserfiche WebLink

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Adams presented the highlights, challenges, and results from the 2018 initiatives as well as forward looking initiatives and goals. Next, Mr. Adams provided an overview of the 2018 Annual Business Plan. He explained that the Annual Business Plan is a short term forward looking tool dependent upon backwards looking data analysis as provided in the form of our financial statements.The 2018 budget versus actual (unaudited) summary statement reflected that the electric and water margins significantly outperformed budget. Mr. Adams noted that this would be an ideal time to discuss margins and referred to the handout that Chair Dietz had provided. The handout contained a summary of ERMU's net margins from 2003 to 2017. After review of the margins, Mr. Adams stated that it would be a good idea to develop a commission policy that defines margins and the acceptable amounts. Mr. Adams reached out to the commission for feedback on the tools they need to effectively monitor and evaluate the organization. After discussion the commission identified the following for consideration: • Long term planning for stability of rates • 20 year Comprehensive Capital Improvement Plan • Uniform presentation of budget components • Final presentation of budget in a similar format as the monthly income statements Based on the feedback provided, Mr. Adams stated that staff would work on the refinement of it before we begin the budgeting process. He anticipated bringing it back for further discussion in July. As there were a number of recurring areas of discussion on our financial statements over the past year, Commissioner Stewart suggested setting some target levels for items that would require further explanation on the commentary/narrative that's provided. Commissioner Bell excused himself from the meeting at 5:00 p.m. due to time constraints on the room he was using to Skype from. 6.0 BUSINESS DISCUSSION 6.1 Staff Updates Mr.Adams highlighted from Minnesota Municipal Power Agency(MMPA)2018 Year End Review, that MMPA's board has set a goal for 100%renewable energy. Mr.Adams further explained the importance of this and how it relates to the recent bill that has been presented requiring renewable energy standards of 80%by 2035,and 100%clean energy by 2050. Mr.Adams also shared that Minnesota Municipal Utilities Association (MMUA) had contacted him Elk River Municipal Utilities Commission Meeting Minutes February 12, 2019 Page 5 48