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judged that ERMU's cash position trend is a strong indicator of good financial health. <br /> Commissioner Stewart had questions for ERMU staff on the unaudited statistics portion of <br /> the annual financial report regarding electric line losses and water customer growth. Staff <br /> responded. <br /> Moved by Commissioner Stewart and seconded by Commissioner Westgaard to receive <br /> and file the Financial Audit for the year ending December 31, 2019. Motion carried 5-0. <br /> 4.2 2019 Year End Reserve Balance <br /> Ms. Karpinski presented the year-end electric reserve balance and calculations. Staff <br /> recommended that the unrestricted balance above the target level for the Electric Utility <br /> fund be designated for electric service territory costs,future capital infrastructure costs, <br /> and the energy adjustment clause to be capped at$500,000. Chair Dietz had questions on <br /> terminology and the difference between restricted and unrestricted reserve amounts. <br /> Staff responded. <br /> Ms. Karpinski presented the year-end water reserve balance and calculations. Staff <br /> recommended that the unrestricted balance above the target level for the Water Utility <br /> fund be designated for future capital infrastructure costs. <br /> Moved by Commissioner Stewart and seconded by Commissioner Bell that$500,000 of <br /> the unrestricted reserve balance for the Electric Utility fund be designated for the <br /> Energy Adjustment Clause(EAC), and the remaining amount be designated towards <br /> electric service territory costs and future capital infrastructure costs; and the <br /> unrestricted reserve balance for the Water Utility fund be designated for future capital <br /> infrastructure costs. Motion carried 5-0. <br /> 4.3 2019 Utilities Performance Incentive Compensation Distribution <br /> Ms. Slominski presented the 2019 Utilities Performance Metrics and Incentive <br /> Compensation (UPMIC) score card on which the employees had successfully achieved all <br /> the company performance metrics targets except for two:The Water Loss and the <br /> Employee Turnover metrics. She shared that per the policy, qualifying employees would <br /> be eligible for a 1.70%distribution. Chair Dietz had questions about whether the <br /> distribution factored in gross wages and overtime, staff responded that it did. Chair Dietz <br /> asked Mr. Ninow about water loss exceeding the 12%threshold. Staff responded. <br /> Moved by Commissioner Nadeau and seconded by Commissioner Westgaard to award <br /> the Utilities Performance Metrics Incentive Compensation distribution of 1.70%to <br /> qualifying employees per the terms of the policy. Motion carried 5-0. <br /> 5.0 BUSINESS ACTION <br /> Elk River Municipal Utilities Commission Meeting Minutes <br /> April 14, 2020 <br /> Page 4 <br />