2.2 ERMUSR 11-09-2021 - Laserfiche WebLink

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5.0 BUSINESS ACTION 5.1 Financial Report – August 2021 Ms. Karpinski presented her memo on the August 2021 Financial Report. Chair Dietz had a clarifying question about the Energy Adjustment Clause. There was discussion. Chair Dietz asked, should ERMU miss its budgeted revenue level, if it would require cutbacks on projects. Ms. Karpinski explained that ERMU capitalizes many projects and therefore the full expense does not depend on one annual budget. There was discussion. Moved by Commissioner Westgaard and seconded by Commissioner Stewart to receive the August 2021 Financial Report. Motion carried 5-0. 5.2 2022 Annual Business Plan: Water and Electric Expenses; and Conservation Improvement Program Ms. Karpinski presented her memo on the 2022 Annual Business Plan: Water and Electric Expenses; and Conservation Improvement Program. She highlightedthe most notable increases which includeadministrative expenses related to theaddition of anew general manager for a partial year and the addition of a full-time inventory assistant, bond interest for the field services facility, contracted tree trimming, and water main expenses related to Highway 169 Redefine project. Chair Dietz asked why ERMU would be contracting tree trimming which typically happens in winter, normally a slower work season for staff. Mr. Sumstad explained that there is increased workload related to the Highway 169 project. There was discussion. Chair Dietz had a few clarifying questions. Ms. Karpinski responded. Commissioner Stewart asked for clarification as to why there was no loss on disposition of property in the water expense budget. Ms. Karpinski confirmed thatthe previous system of accounting for assets did not make it possibleto identify and accurately account for asset removal. As ERMU can now do this accounting with the National Information Solutions Cooperative system, Ms. Karpinski suggested she could include an estimated amountbased on an average from prior years. Chair Dietz asked if there were any adjustments to the Conservation Improvement Program (CIP) budget that resulted from changes to legislation. Mr. Sagstetter responded that the 2022 budget was created using the previous standard but future budgets will be in accordance with the Energy Conservation and Optimization (ECO) Act, which was passed after ERMU created its CIP budget. Future budgets under the ECO Act will include the removal of a spending requirements upon meeting the energy savings requirement. There was discussion Elk River Municipal Utilities Commission Meeting Minutes October 12, 2021 Page 4 36