2.2 ERMUSR 05-09-2023 - Laserfiche WebLink

Home Browse Search

possibly be used for AMI however projects have already been identified in the budget where unrestricted reserves would be applied. Chair Dietz asked if the unrestricted reserves for both electric and water were comparable to prior years and expressed trouble deciding whether ERMU have too much or too little. Ms. Karpinski replied electric is very similar to prior years and water is a little higher than prior years with the exception of 2021 which shows unspent bond proceeds for both. She explained there are a number of large projects coming up and the higher unrestricted fund balance from water will help electric avoid taking out additional bonds. Commissioner Westgaard shared his understanding from previous discussion that unrestricted reserves were going to be left in place for unforeseen expenses related to the Highway 169 Redefine project. Ms. Karpinski stated most of the Highway 169 Redefine project has already been paid. Mr. Hanson further explained that the $5 million in electric unrestricted reserves are not available funds above and beyond the budgeted Capital Improvement Plan (CIP) projects. Rather this $5 million is budgeted to help fund the 2023 CIP projects. Moved by Commissioner Stewart and seconded by Commissioner Westgaard to approve the unrestricted reserve balances above target levels for the Electric Utility fund be designated for electric service territory transfer costs, capital infrastructure costs; and for the Water Utility fund to be designated for future capital infrastructure costs. Motion carried 5-0. 4.3 2022 Utilities Performance Incentive Compensation Distribution Ms. Karpinski presented her memo on the 2022 Utilities Performance Incentive Compensation Distribution. Ms. Karpinski noted that staff met all performance metrics in 2022, and that per policy, this makes qualifying employees eligible for a 2.0% distribution. It was noted the rate of distribution will increase to 2.5% in 2024 and 3.0% in 2025. Commissioner Zerwas asked what the total payout amount would be at 2.0% of all qualifying employees' base pay. Ms. Karpinski replied it is $81,115. Moved by Commissioner Bell and seconded by Commissioner Westgaard to award the Performance Metrics and Compensation Distribution of 2.0% to qualifying employees per the terms of the policy. Motion carried 5-0. 5.0 BUSINESS ACTION Elk River Municipal Utilities Commission Meeting Minutes April 11, 2023 Page 5 ..