07-14-2020 ERMU MIN - Laserfiche WebLink

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recommendations regarding cash liquidity and investment strategy, the Committee discussed possibly investing some of the repo savings account balance into a higher earning investment instrument. Given the state of the economy and the low rates available, the Committee had consensus to wait until the economy turns around. It was noted that the recommendation from the auditor came pre COVID-19, and since then a lot has changed in the financial industry. Chair Dietz asked if some of the reserve money could be used to pay off bonding that will take place for the field services building expansion. Staff responded that some reserve money will be used for the project, but the plan is to replenish the reserves with funds from bonding. Committee Chair Westgaard noted that while investment yields are low in the current financial climate so is the cost to borrow money, and that it may be in the utilities' best interest to use this approach. Commissioner Stewart asked if there was a target percentage on investment rates where staff would feel comfortable investing reserves again. Staff responded that they would reassess the rates towards the end of the year. Three revised Commission policies were presented for Commission approval. Moved by Commissioner Nadeau and seconded by Commissioner Bell to approve the proposed revisions to the Commission Investment Policy, Commission Financial Reserves Policy, and the Commission Financial Reserves & Investment Committee Charter Policy. Motion carried 5-0. 5.4 Customer Delinquencies and Disconnections Ms. Slominski reminded the Commission about the notice we provided to the State of Minnesota Department of Commerce and Public Utilities Commission back in March where we voluntarily agreed to: extend the Cold Weather Rule protections and restricting disconnections; to waive late fees and penalties; and to make payment arrangements with customers as requested, for the duration of the peacetime emergency which has been extended several times. Ms. Slominski explained that most recently, the Attorney General has also requested utilities meet the length of the peacetime emergency, plus an additional 60 days. Given the present date, this would bring the timeline to the beginning of the next Cold Weather Rule which begins October 15, 2020 through April 15, 2021. Through discussions with Minnesota Municipal Utilities Association and other utilities, it has been determined that if a utility is able to identify a delinquency that began before the pandemic, and they track communication efforts, a utility can disconnect customers who do not follow through with payment arrangements or assistance opportunities. Ms. Slominski noted that ERMU is only shutting off egregious offenders who were delinquent prior to the pandemic, and no one impacted by COVID-19 circumstances will be disconnected. Ms. Slominski shared details on the quantity of shut offs and the status of them. She also shared that the number of customers who are 90 days delinquent on payments is $30,000 more than the prior year. Elk River Municipal Utilities Commission Meeting Minutes July 14, 2020 Page 6