6.1. ERMUSR 11-13-2008 - Laserfiche WebLink

Home Browse Search

~/ Elk River -== Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 November 6, 2008 To: Elk River Municipal Utilities Jerry Takle John Dietz Jerry Gumphrey From: Theresa Slominski Subj: Proposed 2009 Expense Budget b.l Phone: 763.441.2020 Fax: 763.441.8099 Attached are the proposed 2009 electric and water expense budgets for your review. All items remain the same but the capital projects amounts have changed as follows. 1. The vehicle purchase for administration was removed and the shared cost of that affected both budgets. 2. Water -The bid for the trunk main extension to complete the loop from the 193`d road extension came in significantly less than what projections were. We had originally projected $120,000 and were anticipating the bids exceeding this amount, but the bid came in at $86,000 (agenda item 6.3). 3. Water -The street rehabilitation projects leave the 4" mains in service and upgrade or move the necessary hydrants for fire protection at a cost of $32,500. The changes identified above impact the electric budget with placing $489,751 to reserves and the water budget with placing $58,837 to reserves. Attached is an updated spreadsheet for the cash and reserves projections. Items that have been updated are the 2008 projections and the 2009 budget; all other assumptions have remained the same. The spreadsheet utilizes projections and assumptions that staff will need to gain a better understanding of before attempting to change. We believe that as we work with RW Beck in our proposed rate analysis it will-help us to obtain that~understanding. That being said, the spreadsheet does identify that we are moving in the right direction for reaching our reserve goals for electric and water and we should be able to replenish our water reserves to the 2007 levels in five years.