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Commissioner Westgaard asked for clarification as to what items are included in the <br />schools and meetings budget. Ms. Karpinski explained this includes the travel and training <br />expenses. <br />Commissioner Westgaard pointed out that August was a large expense within the schools <br />and meeting budget. Ms. Karpinski noted that the Minnesota Municipal Utilities <br />Association Summer Conference takes place in August and contributes to the expense. <br />Moved by Commissioner Westgaard and seconded by Commissioner Stewart to receive <br />the August 2023 Financial Report. Motion carried 5-0. <br />5.2 2024 Annual Business Plan: Electric and Water Expenses <br />Ms. Karpinski presented the 2024 Annual Business Plan: Electric and Water Expenses for <br />commission review in preparation for approval of the complete plan in December. Ms. <br />Karpinski noted that the 2024 purchase power costs have not been released yet by <br />Minnesota Municipal Power Agency (MMPA) and the CIP budget has not been finalized <br />therefore the 2023 budget numbers for these two items are preliminary. <br />Ms. Karpinski highlighted that with the Advanced Metering Infrastructure project there <br />are a number of meters that will not be fully depreciated at the end of 2024 and those <br />that are taken out of service will be a loss. She also noted that income from any of these <br />meters being sold will be minimal. <br />Ms. Karpinski explained that she increased the estimated pension expense per GASB 68 <br />noting that this is an entry the auditors prepare, and the amount is unknown until the end <br />of the audit. <br />Chair Dietz asked if the estimated pension expense is related to how many years staff has <br />and what their pension would be after a certain period of time. Ms. Karpinski replied that <br />it is based on a complicated formula used for estimations. <br />Commissioner Westgaard asked when MMPA rates would be known. Ms. Karpinski stated <br />that the information will be available in either November or December. <br />Chair Dietz asked if the rate increase for water has been finalized. Mr. Hanson estimated <br />water rates will increase 2% based on the recommendation from ERMU's rates <br />consultant, Dave Berg. <br />5.3 Wage & Benefit Committee Update <br />Commissioner Stewart presented the proposed vacation accrual update based on the <br />request for review from staff. She noted there is concern from staff that the current <br />vacation structure isn't attractive to new employees and may affect retention of early <br />Elk River Municipal Utilities Commission Meeting Minutes <br />October 10, 2023 <br />Page 4 <br />36 <br />