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Mr. Hanson then described water rates, noting ERMU has relatively low rates compared <br />to its peers. He explained staff would be proposing stratified increases for 2025; 1 percent <br />for tier one, 2 percent for tier two, and three percent for tier three along with a two <br />percent increase in the base rate for all customers. Mr. Hanson explained this structure is <br />intended to encourage customers to use water efficiently <br />Moved by Commissioner Bell and seconded by Commissioner Stewart to approve the <br />Competitive Rates Analysis. Motion carried 5-0. <br />5.00 BUSINESS ACTION <br />5.01 Financial Report — September 2024 <br />Ms. Karpinski presented the financial report, explaining that while electric usage was <br />down so too was purchased power and the Energy Adjustment Clause passed on to ERMU <br />by the power provider. Ms. Karpinski added there had been an increase in Miscellaneous <br />Revenue. <br />Ms. Karpinski continued that the water budget is doing well with high Water Access <br />Charges and that trends are pointing to a good year for the department. There was <br />discussion. <br />Moved by Commissioner Westgaard and seconded by Commissioner Stewart to receive <br />the September 2024 Financial Report. Motion carried 5-0. <br />5.02 2025 Annual Business Plan: Rates and Review, Stakeholder Communication Plan, CIP <br />Budget <br />Ms. Karpinski presented this portion of the business plan which is to be approved in its <br />entirety by the Commission in December. For November staff presented a proposed zero <br />percent electric rate increase with stratified water increases; 1 percent for tier one, 2 percent <br />for tier two, and three percent for tier three along with a two percent increase in the base <br />rate for all customers. <br />Ms. Karpinski also noted an increase in investment income following the recommendation <br />presented to the Financial Reserves & Investment Committee in 2023 to adjust those funding <br />levels. <br />5.03 2025 Utilities Fee Schedule <br />Ms. Youngs presented the proposed 2025 Fee Schedule for Commission approval, <br />allowing it to then be adopted by Council and added to the City's Master Fee Schedule. <br />Elk River Municipal Utilities Commission Meeting Minutes <br />November 12, 2024 <br />Page 3 <br />