04-13-2021 ERMU MIN - Laserfiche WebLink

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favorable results for the bond sale. Ms. Heaton complimented ERMU staff and shared how impressive they were on the rating call. Moved by Commissioner Stewart and seconded by Commissioner Nadeau to adopt the bid tabulation and Resolution Awarding the Issuance and Sale of$11,810,000 Electric Revenue Bonds,Series 2021B,to Hilltop Securities,Inc. Motion carried 5-0. 5.3 Bond Sale Resolution To finance the expansion of the Field Services Facility,staff has been working with Baker Tilly Municipal Advisors, LLC to bring sale information for the$1,750,000, General Obligation Water Utility Revenue Bonds,Series 2021C to the Commission.As the City of Elk River is the qualified entity to issue bonds,the resolution must be approved by both the Utilities Commission and the City Council for the bond sale to proceed. Consideration and award of the bonds will occur at the May 11, 2021 commission meeting. Moved by Commissioner Bell and seconded by Commissioner Westgaard to adopt Resolution No.21-9 providing for the competitive negotiated sale of$1,750,00 General Obligation Water Utility Revenue Bonds,Series 2021C,and request that the City Council approve the issuance of the bonds and delegate to the Commission the authority to award the 2021C Water Bonds,per the attached resolution. Motion carried 5-0. 4.1 2020 Financial Audit Mr. Berg was available via teleconference to present the ERMU Financial Audit for the Year Ended December 31,2020 and Management Communication. He stated that the auditors issued a clean opinion on the financials and that there were no findings to report. In addition, they also issued a clean report on Minnesota legal compliance. Mr. Berg walked through the 2020 Financial Statement Audit Presentation. Chair Dietz had several clarification questions. Mr. Berg and staff responded. There were questions about the rate of interest ERMU was receiving on its investments and a note from the audit that recommended methods for maximizing interest and earnings. Commissioner Westgaard shared that the Financial Reserves & Investment Committee had discussed this and had made the recommendation to keep higher than normal cash reserves with large projects on the horizon. Mr. Berg encouraged the Commission to be aware of upcoming cashflow needs and shared that there are a limited number of liquid investment opportunities currently. Chair Dietz had questions about any opportunities ERMU might have to refinance the bond it has for the membership buy-in to Minnesota Municipal Power Agency. Ms. Slominski responded that to be able to refinance the bonds there would need to be a change to legislation.There was discussion. Elk River Municipal Utilities Commission Meeting Minutes April 13, 2021 Page 4