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Elk River <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> ERMU Commission Theresa Slominski—Finance & Office Manager <br /> MEETING DATE: AGENDA ITEM NUMBER: <br /> August 8, 2017 6.1b <br /> SUBJECT: <br /> Staff Update <br /> ACTION REQUESTED: <br /> None <br /> DISCUSSION: <br /> • Discussions have continued on planning for multiple billing cycles in 2018. Over a year <br /> ago,we reached out to NISC for the plausibility of multiple cycles and what <br /> considerations would need to be made, any changes they could advise us of, etc. Since <br /> then we have had multiple discussions to address the items NISC offered and the effects <br /> on all the departments at ERMU, as well as the effects to customers, in implementing <br /> such a change. We have reached out to NISC again to share the plans we are considering <br /> and the questions that have resulted from our discussions and feel that we have addressed <br /> everything identified to date. At this point we are committed to making the change, <br /> pending any major problems we become aware of. <br /> • Following up on discussions from last month regarding matching kwh sales dollars, and <br /> kwh purchased power dollars in the financials, I would like to hold off on making any <br /> revenue or expense accrual changes this year. With the possibility of moving to cycled <br /> billing comes a shorter timeframe between customers' kwh used and billed, shortening <br /> the time in between by almost two weeks. This should align better with our power costs, <br /> without making any additional accruals. There will be some challenges in comparing <br /> 2017/2018 financials due to the change, and any changes made mid-year will only <br /> complicate that more. After this implementation, we can review the differences and <br /> consider the necessity of accrual adjustments for the following year, in consultation with <br /> the auditors. <br /> • Bi-annual bond payments due August 1St have been paid via wire transfers and totaled <br /> $590,725. The bonds we have are a water bond that will mature in 2022,two refundings <br /> of electric bonds that will mature in 2018 and 2022, the new bond from 2016 for our <br /> MMPA buy-in maturing in 2036, and a share in the bond with the City for our office <br /> buildings that will mature in 2023. <br /> Page 1of1 <br /> 114 <br />