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-,1 <br />�1 <br />Elk River <br />Municipal Utilities <br />TO: <br />ERMU Commission <br />MEETING DATE: <br />June 11, 2019 <br />SUBJECT: <br />Staff Update <br />ACTION REQUESTED: <br />None <br />UTILITIES COMMISSION MEETING <br />FROM: <br />Theresa Slominski — Finance & Office Manager <br />AGENDA ITEM NUMBER: <br />6.1b <br />DISCUSSION: <br />• As mentioned last month I will not be at the commission meeting. Please send any questions on <br />the financials by Monday 2:00 P.M. so I can have responses ready for everyone at the meeting. <br />• The bill presentation changes are complete and are effective with bills being mailed out this <br />month. The presentation changes are a revision to better segregate City from ERMU services, <br />and also allows for a slight change to the color scheme and the pictorials (moving from graphs to <br />snapshot information). <br />• Summer schedules for the City are in place now through Labor Day, where the offices are closed <br />at noon on Friday. We do not close our office but do have reduced staff on Friday afternoons, <br />as employees alternate taking Friday afternoons off throughout the summer. <br />• We received our property and liability insurance renewal for 7/01/2019 to 7/01/2020. The total <br />premium increase is approximately 11% over the prior year; $132,642 compared to $119,629, <br />with total insurable values increased from $59,603,298 last year to $62,005,094 this year. A <br />breakdown of the premium increase is below. <br />o The Property premium increased by about 12.5%. The largest component of this <br />increase was an error in calculation the prior year for Equipment Breakdown, where we <br />should have been charged approximately $7,000 more than we were. This makes it <br />appear to be an increase in premium this year, however, that is not the case. <br />o The Liability premium increased by about 3%, mostly due to our expenditure growth <br />over the years. <br />o The Auto premium increased by about 15% and is a result of the change in risk <br />calculation that no longer includes auto liability loss experience. We had a pretty good <br />Experience Factor Modifier so removing that increased the premium for us. <br />ATTACHMENTS: <br />• 2019-2020 Renewal Premium Summary <br />Page 1 of 1 <br />