5.7. ERMUSR 04-12-2016 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Mike O'Neill—Technical Services Superintendent
John Dietz—Chair
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
April 12th 2016 5.7
SUBJECT:
Security Department Cost Analysis
BACKGROUND:
Commission asked about the difference in the revenue for the Security Department from 2014 to
2015.
DISCUSSION:
In 2015 we began using a new billing system which caused ERMU to calculate certain security
charges differently than in the past using the old system. In the past when customers paid their
entire year's subscription in one payment, it used an accounting method that showed all of that
revenue when paid instead of being spread over an entire year. When the new system was
installed, the system began spreading that payment out over a 12 month period. This caused the
revenue numbers to appear skewed,when in fact the year end results were as anticipated. Please
see attached documents that show these scenarios. As an end result, after calculating all of the
revenue for the security department and deducting all expenses, the security department remains
solvent as well as covers ERMU's own security needs.
ATTACHMENT:
• Security Revenue and Margin—2012 and 2014
• Security Revenue and Margin—2015 and 2016
• Security Contribution in Dollars Graph
■+ POIVERE0 BY
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