Laserfiche WebLink
during the summer months when our power costs are so high and lagging the bill printing <br />and collection cycle by 45 days, or high construction periods.) <br />Second, the desired balance of reserves is proposed at $3,100,000 plus bond covenants <br />for the electric fund and $1,500,000 plus bond covenants for the water fund. These <br />amounts were arrived at by allowing $1,100,000 and $1,000,000 dollars for the <br />construction/emergency type needs of the electric and water departments, respectively, <br />plus 3 months worth of operating expenses (not including the purchased power cost <br />expenses for electric.) <br />Third, the monthly contribution to reserves has been $20,000 per month; $10,000 to the <br />electric fund and $10,000 to the water fund. I propose that we change this contribution <br />distribution to $15,000 for the electric fund and $5,000 for the water fund. The water <br />reserves are at our goal level but the electric fund is over $1,500,000 short of the goal. <br />Also, for clarification, further contributions would be to increase the Emergency <br />Reserves balances. <br />Fourth, a Line of Credit option was discussed and an amount of $500,000 decided upon <br />as additional funds to have available in an emergency situation for the short term (until <br />bonds could be issued or funds reimbursed to us.) This Line of Credit would be available <br />to be accessed if our own reserves were insufficient for whatever the need was. I propose <br />that we explore this option further with the First National Bank of Elk River. <br />