Laserfiche WebLink
From page 39, Chair Dietz asked for clarity on the electric and water debt showing an <br />interest rate of 2%-4% and whether it changed year to year. <br />Staff said they would find the answer. <br />Chair Dietz stated he was mindful of the amount of electric debt, and inquired as to <br />when the Utilities would be able to pay ahead in order to save interest. <br />Mr. Nilson felt that time period may be close. <br />Chair Dietz requested notice from staff when that would be possible to evaluate that <br />option. <br />Ms. Karpinski informed the Commission there were upcoming capital projects that would <br />require funding. <br />From pages 56 and 57, Chair Dietz noted that purchased power as a percent of revenue, <br />70.264% in 2024, is close to the percentage in 2014 of 70.121% <br />Commissioner Stewart noted that water loss dropped between 2022 and 2023. She <br />asked if there was a specific contributor to that. <br />Mr. Ninow responded that it was due to a combination of factors, largely the <br />implementation of an annual system -wide leak survey and hydrant maintenance. <br />Moved by Commissioner Zerwas and seconded by Commissioner Bell to receive and file <br />the 2023 Annual Financial Report. Motion carried 5-0. <br />4.2 2023 Year End Reserve Balance <br />Ms. Karpinski presented the memo, recommending that unrestricted reserve balances <br />above target levels for the Electric Utility fund be designated for electric service territory <br />transfer costs, capital infrastructure costs; and for the Water Utility fund to be designated <br />for capital infrastructure costs. There was discussion. <br />Ms. Karpinski explained that part of the water fund balance would be used to help pay for <br />the electric department's portion of the AMI project to limit the need for bonding. <br />Chair Dietz asked if the undesignated water reserves were higher than previous years. <br />Ms. Karpinski shared her belief that the amount was similar to prior years, with 2022 <br />being higher due to bonds. <br />Chair Dietz asked for a summary of upcoming water projects. <br />Elk River Municipal Utilities Commission Meeting Minutes <br />May 14, 2024 <br />Page 4 <br />