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~i <br />Elk River <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />Apri128, 2008 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />John Dietz <br />Jerry Gumphrey <br />From: Bryan Adams <br />Subject: Financial Contribution to City <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />APPA on an annual basis does a survey addressing Municipal Utilities payment and <br />contributions to State and Local Governments. Attached is a copy of 2007 survey. This survey <br />reflects a median contribution of 5% electric operation revenues. This % varies from year to <br />year and I have seen it as high as 5.5%. The table below- reflects Elk River Municipal Utilities <br />contribution to the City. , <br /> 2006 2007 2007 Connected for PCA <br />Elk River Revenue $14,002,207 $16,372,504 $16,100,000 <br />Services to City $328,148 $358,029 $358,029 <br />Cash Transfer @ 3% $420,000 $483,000 $483,000 <br />Total Contribution $748,147 $841,029 $841,029 <br />°~o of ER Revenue 5.34% 5.14% 5.22% <br />It appears our contribution to the City is in the appropriate area. The actual cash contribution <br />will grow significantly due to continued electric growth from the two data centers and GRE's <br />projected rate increases. This cash contribution is established at 3% of Elk River electric <br />revenues. <br />Staff desires some guidance on the calculation of services to the City. Should the electricity for <br />the parks be donated? Staff has not been consistent on this issue. Below is a time line of <br />commission decisions. <br />11-14-89 <br />Motion by Mr. Simpson, seconded by Mr. Zabee to begin in January 1, 1990 to donate all <br />electricity not associated with enterprise funds to the City of Elk River. This would include: the <br />