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i <br /> Elk River <br /> Municipal Utilities <br /> 322 King Avenue phone: 763.441.2020 <br /> Elk River,MN 55330 Fax:7634412099 <br /> October 7, 2003 <br /> To: Elk River Municipal Utilities Commission <br /> John Dietz <br /> Jerry Takle <br /> James Tralle <br /> From: Bryan C. Adams <br /> Subject: Electric & Water Expense Budget <br /> Attached for your review are the proposed electric and water expense budgets. The <br /> important assumptions for each expense budget are as follows. <br /> Water <br /> Water Sales Growth— 5%. <br /> Water Rates—Increase of approximately $141,300 or 13.5%. The majority <br /> coming in the second tier from $1.50 to $2.00 and only effects <br /> customers who sprinkle heavily. See Section 6.2, of this agenda for <br /> proposed rate increase. <br /> WAC Units—Increased from $300,000 to $360,000. <br /> WAC Fees—No change at $1500/unit. <br /> Electric <br /> Electric Sales Growth—6% Demand, 5.7% Energy. <br /> Purchased Power—Increased 7.3%. See Section 5.4 of this agenda. <br /> Electric Rate - Increase $639,000 from GRE and $32,500 from CIP increase. <br /> See Section 6.2 of this agenda for proposed rate increase. <br /> CIP Spending—Increase from $113,430 to $145,930 (1.5% gross electric sales— <br /> GRE contribution). <br /> Connect Fees— Same as last year <br /> In the Water Department, revenues are increasing from $1,372,160 to $1,562,469 or a <br /> 13.8% increase. Expenses are increasing from $1,136,906 to $1,208,326 or a 6.3% <br /> increase. <br /> In the Electric Department, revenues are increasing from $13,040,851 to $14,612,605 or <br /> a 12% increase. Expenses are increasing from $11,457,627 to $12,970,299 or a 13.2% <br /> increase. If purchased power expense is not included, the expense increase is 3.5%. <br />