6.1b ERMUSR 08-08-2017 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Theresa Slominski—Finance & Office Manager
MEETING DATE: AGENDA ITEM NUMBER:
August 8, 2017 6.1b
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
• Discussions have continued on planning for multiple billing cycles in 2018. Over a year
ago,we reached out to NISC for the plausibility of multiple cycles and what
considerations would need to be made, any changes they could advise us of, etc. Since
then we have had multiple discussions to address the items NISC offered and the effects
on all the departments at ERMU, as well as the effects to customers, in implementing
such a change. We have reached out to NISC again to share the plans we are considering
and the questions that have resulted from our discussions and feel that we have addressed
everything identified to date. At this point we are committed to making the change,
pending any major problems we become aware of.
• Following up on discussions from last month regarding matching kwh sales dollars, and
kwh purchased power dollars in the financials, I would like to hold off on making any
revenue or expense accrual changes this year. With the possibility of moving to cycled
billing comes a shorter timeframe between customers' kwh used and billed, shortening
the time in between by almost two weeks. This should align better with our power costs,
without making any additional accruals. There will be some challenges in comparing
2017/2018 financials due to the change, and any changes made mid-year will only
complicate that more. After this implementation, we can review the differences and
consider the necessity of accrual adjustments for the following year, in consultation with
the auditors.
• Bi-annual bond payments due August 1St have been paid via wire transfers and totaled
$590,725. The bonds we have are a water bond that will mature in 2022,two refundings
of electric bonds that will mature in 2018 and 2022, the new bond from 2016 for our
MMPA buy-in maturing in 2036, and a share in the bond with the City for our office
buildings that will mature in 2023.
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