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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 /> September 12, 2017 6.Ib <br /> SUBJECT: <br /> Staff Update <br /> ACTION REQUESTED: <br /> None <br /> DISCUSSION: <br /> • Following up on a question from last month regarding investment income, I reached out <br /> to our investment broker(s) and have summarized the responses. Per GASB, we record <br /> the interest and dividend income we receive (which is up from last year) and the market <br /> adjustments to our investments (which is down from last year),to be transparent in what <br /> our investments would be worth if we had to liquidate them at the date of the financial <br /> statement. This is a bit of a challenge, as we do not intend to liquidate them until full <br /> maturity and at that point we would not be recognizing a particular increase or decrease <br /> to the investment. In this economic environment of rising interest rates, the investment <br /> value declines. If it were necessary to liquidate,there is less likelihood that someone will <br /> purchase an investment with a lower interest rate when they could purchase an <br /> investment with a higher interest rate, and so in order to liquidate, an enticement must be <br /> offered- and that enticement is a reduction in the principal to the seller. Our market <br /> adjustments we are recognizing on a monthly basis are a short term hiccup and really <br /> only a true impact if we had to sell the entire portfolio TODAY. <br /> • Troy and I will be meeting with our auditors next week, September 19, 2017 for their <br /> annual visit with us. This is an opportunity to discuss issues, evaluate customer <br /> satisfaction, and pro-actively prepare for upcoming changes. <br /> • The annual Member Information Conference (MIC)provided by NISC is at the end of <br /> this month, September 25—28, 2017. We annually send the Customer Service Manager, <br /> a Customer Service Representative, and the Inventory Person; we will also be sending an <br /> Accountant,the PR/AP Specialist, and the Technical Services Superintendent. <br /> • We have received our insurance renewals and increases for 2018: Health Insurance 5%, <br /> Dental Insurance 13.6%, Long Term Disability Insurance 24.62%, Life Insurance 37.5%, <br /> and AD&D and Dependent Life Insurance 0%. We have a Wage &Benefits Committee <br /> (WBC)meeting scheduled right before the commission meeting to discuss our approach <br /> for these items in the coming year, and to schedule subsequent meetings. <br /> Page 1 of 1 <br /> 88 <br />