10-08-2019 ERMU MIN - Laserfiche WebLink

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5.0 BUSINESS ACTION 5.1 Financial Report—August 2019 Ms. Slominski presented the August 2019 financial report.The Commission had a few questions. Staff responded. Mr. Adams spoke to the margins which are coming in considerably tighter than the prior year. Mr.Adams encouraged the Commission to be thinking about the margin level they feel comfortable with. He noted that this information will be helpful as we move into the next two months of the budgeting process. Moved by Commissioner Nadeau and seconded by Commissioner Westgaard to receive the August 2019 Financial Report. Motion carried 5-0. 5.2 2020 Annual Business Plan:Water and Electric Expenses Ms. Slominski presented the first draft of the expense portion of the 2020 budget. She noted that items are subject to change as the complete 2020 budget is assembled and the finalized wholesale power costs and revenues are reflected. Revenue and rates, and wholesale power costs for 2020 will be presented in November. Electric Department Expense Budget—The 2020 forecast for electric expenses reflected a 7.85%increase over the current year budget. Most notable increases are for contracted tree trimming, and administrative expense increases for the website redesign, IT projects, and staff related expenses due to reorganization.There was discussion on the IT system improvement project that involves shared costs with the city and whether that project will be moving forward in 2020.There was also discussion on the administrative expenses relating to reorganization and additional staff. Mr. Adams shared his opinion on the proposed addition of an HR manager and suggested staff and the Commission further evaluate the need and timing of the addition. Commissioner Stewart had some questions on the dollar amounts budgeted for Maintenance of Plant/Land Improvement, Interconnection Carrying Charge, Mutual Aid, Legal Fees, Dues &Subscriptions, and Schools & Meetings line items. Staff responded. There was discussion on the additional travel and training for the Commission that was included in the Schools& Meetings line item. It was suggested that the dollar amounts for specific Commission expenses be pulled from this line item and shown separately. Water Department Expense Budget-The 2020 forecast for water expenses reflected a 5% increase over the current year budget. Most notable increases are on the administrative side for increases for the website redesign, IT projects, and staff related expenses due to reorganization.The Commission had a few questions.Staff responded. 6.0 BUSINESS DISCUSSION Elk River Municipal Utilities Commission Meeting Minutes October 8, 2019 Page 5