Laserfiche WebLink
This is an excellent and well defined approach to establishing goals and direction for a utility. <br />Many of these core principles are already being done by ERMU. The financial plan (10-year) is <br />reviewed during budget time and then again after the audit is completed. Setting financial ratios <br />have been done case by case but have not been defined by written policy. The Utilities <br />Commission had approved reserve fund goals, but is not a written policy. During budgeting and <br />rate design, ERMU is aware of competitive pricing, but goals are not defined. Documenting <br />many of these principles that are already done in practice will help with long term planning. By <br />having written policy, ERMU has a blueprint from which to educate and communicate. <br />Conclusion <br />Overall, this is a very well written article exploring important issues for any utility. For ERMU, <br />this has brought into focus industry issues of rates and financial planning that we need to <br />address. How we address these issues becomes the fundamental building block on which we can <br />achieve its purpose. The Elk River Municipal Utilities' mission statement is "To provide our <br />customers with safe, reliable, cost effective and quality long term electric and water utility <br />service. To communicate and educate our customers in the use of utility services, programs, <br />policies, and future plans. These products and services will be provided in an environmentally <br />and financially responsible manner." Rates and financial planning are important to providing <br />fair and equitable. cost of service and a foundation for long term viability. <br />