5.5. ERMUSR 04-08-2014 - Laserfiche WebLink

Home Browse Search

Elk Rivt. Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager John Dietz, Chair Al Nadeau, Vice Chair Daryl Thompson, Trustee MEETING DATE: AGENDA ITEM NUMBER: April 8, 2014 5.5 SUBJECT: Organizational Growth BACKGROUND: To the envy of other municipal utilities in Minnesota, ERMU has experienced great growth over the past decade. Since 2003 ERMU has seen a 31% increase in water customers, 12% increase in water sales, and a 9% increase in water revenue. And, ERMU has seen a 27% increase in electric customers, 70% increase in energy sales, 51% increase in system peak, and a 52% increase in electric revenue. ERMU has now grown to have over a $35,000,000 annual budget. With a future electric service territory transfer for the remaining service territory within the corporate boundaries of the City of Elk River, ERMU will experience an additional 20%growth in electric customers. Our community and our municipal utilities are in a great position to experience economic development and continue to grow years into the future. This is a very positive message to share when other utilities are experiencing declining sales and declining customer accounts. DISCUSSION: We have been doing more with less and operating lean for years. It is easy to keep our heads down, get the work done, and keep moving forward. Because of the substantial work involved in the billing software conversion, it has been noted that we are operating too lean in the office. As we build and develop staffing levels for the forthcoming electric service territory transfer, ERMU created a 5 year staffing projection used in annual assessment of staffing levels. In 2014, two additional employees were added. An additional two employees are projected for 2015. But looking backwards over the past decade's growth, we've only added part time help for the growing responsibilities of the accounting area of the office department. In the immediate work environment we've recognized that additional leadership is needed in the office. Currently the accounting workload is handled by the Finance and Office Manager and a part time accountant. The accounting responsibilities have grown greater than just the growth of the organization. In addition to the customer and sales growth, the accounting personnel are now IE].Pwer 'POWERED NATUREI Page 1 of 2 Power a Public WQIProvider POWE0.ED TO SERVE 132