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��i <br />Elk River , <br />Municipal Utilities UTILITIES COMMISSION MEETING <br />TO: <br />FROM: <br />ERMU Commission <br />Melissa Karpinski — Finance Manager <br />MEETING DATE: <br />AGENDA ITEM NUMBER: <br />September 10, 2024 <br />5.2 <br />SUBJECT: <br />2025 Annual Business Plan: Capital Projects & Equipment Purchases, and 20-Year Capital <br />Projections <br />ACTION REQUESTED: <br />No action is required. <br />DISCUSSION: <br />In preparation for budget submittal in November, staff continues to work through the 2025 <br />budget process. The first draft of the capital budget portion of the 2025 budget has been <br />completed for commission review. The capital budget may change as the complete 2025 <br />budget is assembled, when more information on project timing is available, when the rates <br />change, and once cash flow becomes more definite. Included are the timeline projections for 20 <br />years. Non -capital noteworthy items (expenses) are shown separately from the capital budgets <br />at the bottom. The Conservation Improvement Plan (CIP) budget is not included this month and <br />will be presented during the October commission meeting. <br />The following information is included for your review of the capital budgets: <br />1. Electric Department 2025 Capital Budget — Includes large non -recurring capital <br />construction projects, recurring capital construction projects and asset preservation, <br />and capital equipment purchases. Notable items for 2025 include Advanced Metering <br />Infrastructure (multi -year project estimated to be completed in 2025), East substation <br />construction (multi -year project estimated to be completed in 2026), electric service <br />territory acquisition loss of revenue payments, additional/unidentified feeders, <br />replacing digger truck #9 (was scheduled for 2024 but will not be received until 2025), <br />and replacing bucket truck #5. <br />2. Electric Department Capital 20-Year Projections — Highlights anticipated large non- <br />recurring capital construction projects, recurring capital construction projects, and asset <br />preservation projects through 2044. <br />3. Water Department 2025 Capital Budget — Includes large non -recurring capital <br />construction projects, recurring capital construction projects and asset preservation, <br />and capital equipment purchases. Notable items for 2025 include two new wells, <br />Advanced Metering Infrastructure (multi -year project estimated to be completed in <br />2025), Freeport booster station, and replacement of existing water main at <br />Upland/Meadowvale and city road project. <br />Page 1 of 2 <br />EU <br />