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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 11, 2018 5.2 <br /> SUBJECT: <br /> 2019 Business Plan/Budget: 10-Year Capital Project Projections, Capital Purchases and <br /> Equipment, and the Conservation Improvement Program <br /> ACTION REQUESTED: <br /> None <br /> BACKGROUND: <br /> In preparation for submittal in November, staff continues to work through the 2019 budget <br /> process. The first cut of the capital budget portion of the 2019 budget has been completed for <br /> commission review. The capital budget may change as the complete 2019 budget is assembled <br /> and when the wholesale power costs, rate changes, and cash flow become more definite. <br /> DISCUSSION: <br /> The Conservation Improvement Program (CIP) budget is not included this month. With the <br /> transition to the new power provider and the change in programs, more time is needed to <br /> properly analyze and formulate the budgetary impacts. We will present the CIP next month, <br /> which will include funding for 50% of the solar picnic table. <br /> The following information is submitted for your review of the capital budgets: <br /> 1. Electric Department Capital Budget—This includes large non-recurring capital <br /> construction projects, recurring capital construction projects and asset preservation, and <br /> capital equipment purchases. Notable items for 2019 are constructing a storage building <br /> for relocating equipment temporarily to facilitate the future construction of a new field <br /> services facility as well as storing seasonal equipment, a development infrastructure <br /> feeder for Miske Meadows, electric service territory transfer costs, replacing bucket truck <br /> #8, and replacing the Vactron. <br /> 2. Electric Department Projects Time Schedule 10-year Projection—This highlights large <br /> non-recurring capital construction projects, recurring capital construction projects, and <br /> asset preservation. <br /> 3. Water Department Capital Budget—This includes large non-recurring capital <br /> construction projects, recurring capital construction projects and asset preservation, and <br /> capital equipment purchases.Notable items for 2019 are the Auburn Tower recondition, <br /> and a building at well#8 for housing SCADA equipment. <br /> Page 1 of 2 <br /> 119 <br />