5.4. ERMUSR 02-12-2013 - Laserfiche WebLink

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Elk River -is. Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission David Berg— Water Superintendent John Dietz, Chair Daryl Thompson, Vice Chair Allan Nadeau, Trustee MEETING DATE: AGENDA ITEM NUMBER: February 12, 2013 5.4 SUBJECT: Aquifer and Ground Water Supply BACKGROUND: The 2012 summer drought was tough on our wells and aquifer and the predictions for 2013 are not looking any brighter. Every month, the wells are measured while they are flowing to see how drawn down the water is, or in other words, how far down the well our water is sitting. In 1997, ERMU had roughly 2,000 customers hooked up to our water system. In July of 1997, Well #3's water was flowing 46% of the way down the pipe. In 2012, ERMU had roughly 4,500 water customers. In July of 2012, the same well is now down to 61%. DISCUSSION: The drawdown on our wells combined with another possible drought this summer poses a large problem for the Water Department's revenue. The DNR has talked about enforcing water restrictions to help conserve water. In other words, reducing or banning lawn sprinkling altogether. Summertime is when the bulk of the water department's income is made. Without that revenue, we could potentially have to dip further into our reserves to pay for our necessary planned projects. In the event that the DNR does enforce water restrictions, ERMU will need to take steps to compensate for the potential reduction in water sales. There are a number of options including drawing down reserves or implementing an emergency or summer rate. Regardless of the method for adjustment, the potential reduction in revenue will create a ripple effect in the water department's long-term capital projects and reserves. If ERMU needs to take corrective steps, staff will bring back more information at a future meeting. 'POWERED BI ��$ Page 1 of 2 NATURE Reliable Public Power Provider