11-13-2007 ERMU MIN - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission November 13, 2007 Theresa Slominski informed the commission of there being possible overtime in the next pay period for payments and processing bills due to the holidays (Veterans Day and Thanksgiving). Jodi Berge, our account executive with David Martin Agency, will be meeting with staff to update them on changes in the law affecting the insurance program. Ehlers and Associates are working with the City on funding the YMCA project. It was suggested that the Elk River Municipal Utilities refund their bonds at a lower rate, thus saving approximately $88,000. This will be revisited in December. 5.2 Review 2008 Wholesale Power Costs Great River Energy's proposed demand and energy rates for 2008 were reviewed. Because Elk River Municipal Utilities has different demand/energy ratios and different on- peak/off--peak ratios our percent increase is different. Typically we have passed on the electric wholesale rate to our customers. Late last week Elk River Municipal Utilities received confirmation that Great River Energy's rate would only increase by 8.5% instead of the earlier projection of 9.5%. Based on this information, our percent increase and dollar increase would be 10.68% or $1,375,698. This is also our 2008 budget assumption. 5.3 Review 2008 Cash Flow Proiections Twice annually we update our electric and water fmancial projections to ensure we have the necessary fmancial resources in the future. These times are at year's end during the budgeting process and after the audit. The electric and water projections reflecting the 2008 budget assumptions were reviewed. The cash flow projection reflects similar results as previous years, with generally total cash balance increasing over time. 5.4 Review & Consider Completed 2008 Budget The proposed 2008 Ells River Municipal Utilities budget was reviewed. As previously discussed, the budget contains a .5 full time equivalent accountant to assist the accounting area. James Tralle asked what the status is regarding the Jackson Street water tower. Staff will look into the preservation or destruction of this tower, but it was a political topic last time it was discussed. Jerry Gumphrey moved to approve the proposed 2008 budget as presented. James Tralle seconded the motion. Motion carried 3-0. 5.5 Review LFG Proiect & Maintenance Costs The last couple of commission meetings the LFG electric generation facility expansion was discussed. Waste Management has decided to allow Elk River Municipal Utilities to do the expansion with the contraction arrangements similar to the existing agreements. Elk River Landfill is now in the process of securing the necessary permits to expand the landfill to the south. The preliminary timeline has a completion date of February 2010.