4.1. ERMUSR 05-10-2016 - Laserfiche WebLink

Home Browse Search

Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Mike O'Neill—Technical Services Superintendent John Dietz—Chair Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: May 10 2016 4.1 SUBJECT: Security Department Cost Analysis BACKGROUND: The Commission directed staff to bring back three years of historical financial data for total expense versus total revenue and monitoring expense versus monitoring revenue. DISCUSSION: The monitoring for all the security systems is done through a third party. The specific detail of monitoring revenue versus monitoring expense is actually the comparison of ERMU's revenue for monitoring fees billed to security customers versus the third party monitoring expense for those same security accounts. These trends for the past three years plus 2016 projections are indicated in Table 1 below. Security System Monitoring Margins Description 2013 2014 2015 2016 Actual Actual Actual Projected Revenue $ 226,480 _ $ 226,765 $ 176,827 $ 200,000 Expense $ 62,057 $ 63,727 $ 62,241 $ 64,000 Net $ 164,423 $ 163,038 $ 114,586 $ 136,000 Table 1 Total margins for the security department for the past three years plus 2016 projections are reflected in Table 2 below. There were two significant adjustments that affect the numbers presented. First, in 2014 an error was discovered in the billing for the City of Elk River's wastewater lift station accounts. The result of the error was an over billing for monitoring services. The error was corrected and an approximate $40,000 credit was made to the Wastewater Department. This credit resulted in the security department realizing negative net margins for 2014. EN POwEAEO A1' Page 1 of 2 NATUPi Reliable Public Power Provider POWERED T O SERVE 120