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16 <br /> Elk River -�-� <br /> Municipal Utilities <br /> 13069 Orono Parkway phone: 763.441.2020 <br /> Elk River,MN 55330 <br /> Fax.763 441.8099 <br /> October 19, 2005 <br /> ' To: Elk River Municipal Utilities Commission <br /> Jerry Takle <br /> John Dietz <br /> ' Jim Tralle <br /> From: Bryan Adams <br /> ' Subject: 2006 Proposed Budget <br /> ' Attached is the proposed 2006 Elk River Municipal Utilities budget. We have spent the past <br /> number of months reviewing components of this budget. This proposed budget reflects the <br /> 111) following changes from your initial review. <br /> Water <br /> a) Increase WAC fee from $1750 to $2000. <br /> See attached sheet for analysis of WAC fees. <br /> Electric <br /> a) Minor tinkering with the expense budget to reflect proper addition. <br /> b) Added revised income & expenses for the 41h engine at the landfill <br /> c) Revised capital budget to reflect 1 Target feeder. <br /> d) Increased cost of the 3 feeders in Otsego from $375,000 to $400,000. <br /> e) This winter we are required to extend a feeder through the gravel mines <br /> ' on Co Rd 33 & Proctor to allow for Co Rd 33 construction next spring- <br /> $70,000 item was added. <br /> I) The wholesale electric is still preliminary. GRE was just notified by <br /> BNSF Railroad that their coal transportation rate will double. This is a <br /> ' $600,000 hit for GRE. Our portion is approximately $108,000. <br /> It is unknown at this time how GRE will cover this expense. <br /> g) The retail rates remain unchanged from previously presented. The finalized <br /> budget will recover only the increased cost from the wholesale rate <br /> increase. <br /> ' Staff recommends adoption of this 2006 utility budget with the understanding that the retail <br /> • electric rate increase only captures the cost increase from the wholesale rate increase. <br />