2.2 ERMUSR 11-8-2022 - Laserfiche WebLink

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Chair Dietz had a clarifying question on the projections. Staff responded. Chair Dietz had a clarifying question on the revenue budget. Staff responded. Ms. Karpinski explained that next year she plans to create a general ledger account that shows the EAC expense. Chair Dietz joked that the water department is carrying the company. Chair Dietz asked why Maintenance Expense and Other Operating Expenses were higher than last year. Staff said they would review the data and provide that information later in the meeting. Moved by Commissioner Nadeau and seconded by Commissioner Bell to receive the August 2022 Financial Report. Motion carried 5-0. 5.2 2023 Annual Business Plan: Water and Electric Expenses; and Conservation Improvement Program Ms. Karpinski presented her memo on the Annual Business Plan. She highlighted the fact that electric expenses are down 0.5% from 2022 and water up 4.4%. She added that the increase in depreciation was due to the new field services building. Ms. Karpinski shared that expenses were reduced by retiring the landfill gas -to -energy plant and that medical insurance only has a 1.5% increase. Chair Dietz sought to confirm that $140,000 was budgeted for tree trimming. Staff confirmed that it was. Chair Dietz asked if ERMU staff still performs some portion of the tree trimming. Mr. Geiser confirmed that they do. Chair Dietz asked staff for clarification on the Conservation Improvement Program (CIP) budgeting. Mr. Sagstetter responded that about $580,000 is budgeted for CIP which is 1.5% of gross operating revenue, as required by state statute. 5.3 2023 Utilities Fee Schedule Ms. Slominski presented the 2023 Utilities Fee Schedule, noting increases for new residential electric connections which have not been adjusted since 2014 and do not reflect current expenses, in particular the growing costs of transformers. Ms. Slominski also explained that Elk River Municipal Utilities Commission Meeting Minutes October 11, 2022 Page 4 36