2.2 ERMUSR 03-12-2024 - Laserfiche WebLink

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5.0 BUSINESS ACTION 5.1 Financial Report— December 2023 Ms. Karpinski presented the December unaudited financial report. Electric usage was down by 1% and water was up 18% over prior year. The Energy Adjustment Clause (EAC) was less than budget, ERMU did not absorb the $500K in 2023, and it appears both electric and water will end the year in a favorable position based on the unaudited results. Chair Dietz asked for clarification of the large pension entry under the Other Operating Expense category. Ms. Karpinski explained the current entry is an estimate based on historical data as the amount fluctuates from year to year and is not final until the results of the audit are complete. Chair Dietz asked if the landfill gas line item will be removed after 2023 due to ERMU no longer managing the site. Ms. Karpinski confirmed it would be. Chair Dietz requested clarification on footnote number four regarding the large difference in miscellaneous water revenue from prior year. Ms. Karpinski explained there was a change in how water tower lease revenue was recognized, and the amount won't be finalized until the audit is complete. She further explained this line item also includes water main installation assets as part of city street improvements that are considered contributed capital that will be added as an end of year entry as well. Moved by Commissioner Westgaard and seconded by Commissioner Stewart to receive the December 2023 Financial Report. Motion carried 5-0. Upon the arrival of City Administrator Cal Portner, Chair Dietz referred back to his question about the work compensation and liability insurance policies with the League of Minnesota Cities and asked Mr. Portner for clarification if the City and ERMU were together on one joint policy or two separate policies. Mr. Portner confirmed that the City and the Utilities have separate policies and what happens with one policy does not impact the other. 5.2 2023 Fourth Quarter Delinauent Items Ms. Karpinski presented the 2023 Fourth Quarter Delinquent items noting write offs were $14K as compared to $31K the prior year, assessments were $11K in 2023 versus $9K in 2022, and there was a slight decrease sent to collections from $37K in 2022 to $32K in 2023. Ms. Karpinski acknowledged the excellent work of the customer service team. She also noted that the Revenue Recapture option and assessments play a role in keeping write off amounts lower. Elk River Municipal Utilities Commission Meeting Minutes February 13, 2024 Page 4 W