5.3 ERMUSR 11-12-2019 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Theresa Slominski—Administrations Director
MEETING DATE: AGENDA ITEM NUMBER:
November 12, 2019 5.3
SUBJECT:
2020 Annual Business Plan: Rates and Review, Stakeholder Communication
ACTION REQUESTED:
None
DISCUSSION:
In preparation for budget approval in December, staff continues to work through the 2020
budget process. Based on the wholesale rate increase and projected expense increases and
capital expenditures, a preliminary balanced budget and rates have been drafted.
Attached is the following information for your review. Additional budget detail is available upon
request. Please contact staff for additional information.
1. Electric Department Expense Budget—2020 forecast for electric expenses are a .5%
increase over the current year budget. Wholesale power costs make up 67%of the
operating budget. Most notable increases are for contracted tree trimming, and
administrative expense increases for the website redesign, IT projects, and staff related
expenses due to the reorganization.
The budgeted Payment in Lieu of Taxes (PILOT) amount for 2020 is$1.5 million, based
upon the recalculation to include recently acquired territory customers. The PILOT is
comprised of$1.36 million with the 4%of Elk River City's sales calculation, and $218,000
in donated utilities and labor.
At this time there is a 0% rate increase proposed. The necessary goal of a 2.83% margin
to cover 110% of our annual average debt service is narrowly obtained with a
conscientious trimming of expenses and conservative growth and usage estimates for
revenues based on 2019's low usage. If there is a more comfortable margin desired,
please be prepared to discuss.
2. Water Department Expense Budget—The 2020 forecast for water expenses are a 2.7%
increase over the current year budget. Most notable increases are on the
administrative side for the website redesign, IT projects, and staff related expenses due
to the reorganization, as noted above for electric.
Page 1 of 2
195
At this time a 2% rate increase is proposed for the water monthly charge and the first
tier of usage. The result for the proposed rate increase for a typical residential water
customer would be a blended increase of 1.73%, resulting in an approximate increase of
$5.00 annual for 2020 compared to 2019.The 2020 revenues are conservative based on
2019's low usage.
Staff would like to discuss with the commission the communication plan to the customers for
rates, etc.
ATTACHMENTS:
• Proposed Summary of 2020 Budgets
• Proposed 2020 Electric Revenue and Expense Budget
• Proposed 2020 Water Revenue and Expense Budget
• Proposed 2020 Electric Capital Budget
• Proposed 2020 Water Capital Budget
• Proposed 2020 Administration and Technical Services Capital Budgets
• Proposed 2020 Conservation Improvement Program Budget Summary
Page 2 of 2
196
ELK RIVER MUNICIPAL UTILITIES
SUMMARY OF YEAR 2020
BUDGETS
ELECTRIC BUDGET SUMMARY 2020
ELECTRIC REVENUE $ 39,244,200
ELECTRIC EXPENDITURES (38,120,439)
ELECTRIC NET FOR CAPITAL 1,123,762 2.86% 1,109,893 110%annual avg debt svc 2.83%
DEBT RETIREMENT (924,000)
PROMISSORY NOTE TO COUNTY (203,956)
NET LESS DEBT PRINCIPAL PMTS (4,194)
CAPITAL EQUIPMENT/CONSTRUCTION (5,542,360)
FUND FROM RESERVES 1,000,000 * Field Services Building site prep
851,860 * Territory Acquisition Areas 1&2,3&4,5&6 Loss of Revenue
NET (3,694,694)
DEPRECIATION 3,046,447
NET TO RESERVES (648,247)* Note that this is separate from above funding of draw on reserves
WATER BUDGET SUMMARY 2020
WATER REVENUE $ 2,838,582
WATER EXPENDITURES (2,993,645)
WATER NET FOR CAPITAL (155,063) -5.46%
DEBT RETIREMENT (271,000)
NET LESS DEBT PRINCIPAL PMTS (426,063)
CAPITAL EQUIPMENT/CONSTRUCTION (732,500)
FUND FROM RESERVES 440,000 * Gary St Tower
FUND FROM WATER TRUNK FUND
BONDING -
NET (718,563)
DEPRECIATION 1,192,267
NET TO RESERVES 473,704 * Note that this is separate from above funding of draw on reserves
*Currently,target reserves are met.
Budget File 2020 22020 Budget Summary
197
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER,MINNESOTA
BUDGET FOR PERIOD ENDING DECEMBER 2020
2020 2019 2018
ANNUAL ANNUAL ANNUAL
BUDGET BUDGET ACTUAL
Electric
Revenue
Operating Revenue
Elk River
ELECT SALES/ELK RIVER RES 11,827,244 11,820,595 11,940,603
ELECT SALES/ER NON-DEMAND 3,142,880 3,180,355 3,212,643
ELECT SALES/ER DEMAND 18,863,099 19,153,584 19,348,038
Total For Elk River: 33,833,223 34,154,535 34,501,284
Otsego
ELECT SALES/OTSEGO RES 1,196,337 1,239,338 1,251,920
ELECT SALES/OTSEGO NON-DEMA 412,759 447,270 451,811
ELECT SALES/OTSEGO DEMAND 1,099,884 1,028,876 1,039,321
Total For Otsego: 2,708,980 2,715,484 2,743,052
Rural Big Lake
ELECT SALES/BIG LAKE RES 180,370 183,510 185,373
ELECT SALESBL NON-DEMAND 4,098 3,878 3,918
Total For Rural Big Lake: 184,468 187,389 189,291
Dayton
ELECT SALES/DAYTON RES 186,726 185,782 187,668
ELECT SALES/DAYTON NON-DEMA 35,986 35,931 36,296
Total For Dayton: 222,712 221,713 223,964
Public St&Hwy Lighting
ELECT SALES/ELK RIVER SEC LTS 225,195 217,972 220,185
Total For Public St&Hwy Lighting: 225,195 217,972 220,185
Other Electric Sales
SUB-STATION CREDIT 4,800 4,800 4,800
Total For Other Electric Sales: 4,800 4,800 4,800
Dispersed Generation Credit and AC Credit
DISPERSED GENERATION CREDIT (714,867)
A/C CREDIT (19.140)
0 0 (734,007)
Total Operating Revenue
37,179,378 37,501,895 37,148,569
Other Operating Revenue
Interest/Dividend Income 0
INTEREST&DIVIDEND INCOME 100,000 80,000 330,107
Total For Interest/Dividend Income: 100,000 80,000 330,107
Customer Penalties
CUSTOMER DELINQUENT PENALTI 210,000 250,000 199,753
Total For Customer Penalties: 210,000 250,000 199,753
LFG Project
LFG PROJECT 1,166,742 1,157,393 1,128,793
Total For LFG Project: 1,166,742 1,157,393 1,128,793
Connection Fees
DISCONNECT&RECONNECT CHAR 150,000 150,000 269,787
Total For Connection Fees: 150,000 150,000 269,787
Misc Revenue
MISC ELEC REVENUE-TEMP CHG 2.150
STREET LIGHT 5,000 0 33,000
TRANSMISSION INVESTMENTS 300,000 200,000 274,426
MISC NON-UTILITY 50,000 50,000 51,601
GAIN ON DISPOSITION OF PROP 0 0 16,000
PERA PENSION REVENUE 18,588
RENTAL PROPERTY INCOME 8,080 25,000 25,487
CONTRIBUTIONS FROM CUSTOMER 75,000 75,000 352,104
Total For Misc Revenue: 438,080 351,050 773,356
Total Other Revenue
Total For Total Other Revenue: 2,064,822 1,988,443 2,701,796
Total Revenue 39,244,200 39,490,338 39,850,365
198
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER,MINNESOTA
BUDGET FOR PERIOD ENDING DECEMBER 2020
2020 2019 2018
ANNUAL ANNUAL ANNUAL
BUDGET BUDGET ACTUAL
Expenses
Purchased Power
PURCHASED POWER 25,507,849 25,724,105 26,710,514
Total For Purchased Power: 25,507,849 25,724,105 26,710,514
Operating&Mtce Expense
OPERATING SUPERVISION 109,513 109,310 97,581
DIESEL OIL FUEL 17,000 16,000 12,390
NATURAL GAS 27,000 26,000 24,212
STATION PWR&WTR CONSP/PLAN 33,000 33,000 32,508
OTHER EXP/PLANT SUPPLIES-ETC 7,000 3,600 4,928
MISC OTHER PWR GENERATION EX 7,000 5,200 8,919
MAINTENANCE OF STRUCTURE/PL 19,000 30,000 23,123 cleaning contract reallocated
MTCE OF ENGINES/GENERATORS-P 32,000 37,500 7,985
MICE OF PLANT/LAND IMPROVEM 30,000 20,000 20,788 snow removal
Total For Operating&Mtce Expense: 281,513 280,610 232,434
Landfill Gas
LFG PURCHASED GAS 180,000 172,565 163,424
LANDFILL GAS O&M 511,277 550,000 560,859
LFG ADMIN 35,000 38,800 27,821
LFG INSURANCE 25,000 20,375 16,308
LFG MTCE 0 6,000 1,210
Total For Landfill Gas: 751,277 787,740 769,622
Transmission Expense
TRANSMISSION MTCE AND EXPENS 39,000 38,199 19,669
Total For Transmission Expense: 39,000 38,199 19,669
Distribution Expense
REMOVE EXISTING SERV&METER 1,600 2,500 1,468
SCADA EXPENSES 30 000 31,000 26,747
TRANSFORMER EX/OVERHD&UND 20,000 25,000 18,535
,
MTCE OF SIGNAL SYSTEMS 2,000 2600 2,566
METER EXP-REMOVE&RESET 1,200 2,500 479
TEMP SERVICE-INSTALL&REMOV 1,200 2,500 1,385
MISC DISTRIBUTION EXPENSE 325,000 325,000 240,663
INTERCONNECTION CARRYING CH 2,416 2,416 0
Total For Distribution Expense: 383,416 393,516 291,846
Maintenance Expense
MTCE OF STRUCTURES 21,500 7,500 4,005 cleaning contract reallocated
MTCE OF SUBSTATIONS 28,000 25,500 22,454
MTCE OF SUBSTATION EQUIPMENT 30,000 35,000 11,170
MICE OF OVERHD LINES/TREE TRI 171,000 125,000 184,783 utilizing contracted tree trimming services 2020
MTCE OF OVERHD LINES/STANDBY 31,000 31,000 28,921
MTCE OF OVERHEAD 140,000 155,000 143,499
MTCE OF UNDERGROUND/DISTRIB 130,000 118,000 131,004
LOCATE ELECTRIC LINES 95,000 100,000 46,143
LOCATE FIBER LINES 1,000 0 0
MTCE OF LINE TRANSFORMERS 51,000 51,000 75,299
MTCE OF STREET LIGHTING 45,000 41,000 49,972
MTCE OF SECURITY LIGHTING 12,000 13,000 9,092
MTCE OF METERS 107,000 150,000 129,496
VOLTAGE COMPLAINTS 10 000 8,300 5,632
SALARIES TRANS&DISTRIBUTION 45,617 53,792 36,759
ELECTRIC MAPPING 115,000 125,000 115,818
MTCE OF OVERHEAD SERVICE/2ND 20,000 18,000 15,826
MTCE OF UNDERGROUND ELEC SE 41,000 41,000 45,257
LOCATE UNDERGROUND SECOND 31,262
TRANSPORTATION EXPENSE 225,000 210,000 223,505
Total For Maintenance Expense: 1,319,117 1,308,092 1,309,897
199
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER,MINNESOTA
BUDGET FOR PERIOD ENDING DECEMBER 2020
2020 2019 2018
ANNUAL ANNUAL ANNUAL
BUDGET BUDGET ACTUAL
Depreciation&Amortization
DEPRECIATION 2,358,268 2,895,535 2,131,465
AMORTIZATION 688,179 0 165,882
Total For Depreciation&Amortization: 3,046,447 2,895,535 2,297,347
Interest Expense
INTEREST ON BONDS/LONG TERM 657,782 687,947 430,644
INTEREST ON DEFEASED BONDS (3,317) (3,316) (3,316)
AMORTIZATION OF DEBT DISCOUN (48,152) (48,152) (45,327)
Total For Interest Expense: 606,313 636,479 382,000
Other Ooeratine Expense
EV CHARGING EXPENSE 4,877 4,848 3,686
LOSS ON DISPOSITION OF PROP(CA 12,630 0 20,962
OTHER DONATIONS 4,104 5,000 2,238
MUTUAL AID 0 0 1,281
PENSION EXPENSE 60,000 100,000 (53,193)
OPEB EXPENSE 3,000 2,910
INTEREST PD ON METER DEPOSITS 23,828 15,000 20,816
RENTAL PROPERTY EXPENSE 9,000 6,000 8,720
Total For Other Operating Expense: 117,439 130,848 7,420
Customer Accounts Expense
METER READING EXPENSE 29,299 30,000 21,271
COJ J FCTING EXP DISC/RECONNEC 15,226 15,000 13,694
MISC CUSTOMER ACCTS EXP-COM 279,000 259,000 255,891 bill redesign,CRC increase
CUST BLGS NOT PD/SENT FOR COL 15,000 45,000 (63,451)
Total For Customer Accounts Expense: 338,525 349,000 227,405
Administrative Expense
SALARIES/OFFICE&COMMISSION 755,000 776,132 600,865 additional staff,reorg
TEMPORARY STAFFING 4,000 4,000 13,596
OFFICE SUPPLIES&EXPENSE 197,570 119,000 78,473 website 50k IT projects 67.5k
LT&WATER CONSUMPTION/OFFIC 30,587 35,000 28,398
BANK CHARGES 3,000 3,000 2,684
LEGAL FEES 27,500 30,000 35,893
AUDITING FEES 17,360 16,080 16,400
INSURANCE 175,000 158,900 152,623
UTILITY SHARE DEF COMP 103,000 120,000 73,558 additional staff,reorg
UTIL SH OF MEDICAL/DENTAL/DIS 780,000 735,000 634,702 additional staff,reorg
UTILITY SHARE OF PERA 255,000 245,000 221,038 additional staff,reorg
UTILITY SHARE OF FICA 241,500 235,000 209,454 additional staff,reorg
EMPLOYEE SICK PAY 120,983 115,000 110,089 additional staff,reorg
EMPLOYEE HOLIDAY PAY 131,643 128,000 123,508 additional staff,reorg
EMPLOYEE VACATION&PTO PAY 224,957 205,000 205,312 additional staff,reorg
UPMIC DISTRIBUTION 65,000 59,000 48,416 additional staff,reorg
CONSULTING FEES 30,000 30,000 52,986
TELEPHONE 23,500 21,168 22,134
ADVERTISING 15,000 18,000 28,238
DUES&SUBSCRIPTIONS-FEES 162,800 160,000 218,371
SCHOOLS&MEETINGS 265,155 225,126 149,251
MICE OF GEN PLANT/OFF HEATIN 5,841 6,000 5,439
Total For Administrative Expense: 3,634,396 3,444,406 3,031,428
200
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER,MINNESOTA
BUDGET FOR PERIOD ENDING DECEMBER 2020
2020 2019 2018
ANNUAL ANNUAL ANNUAL
BUDGET BUDGET ACTUAL
General Expense
CIP REBATES-RESIDENTIAL 75,625 66,550 8,125
CIP REBATES-COMMERCIAL 210,200 176,200 245
CIP-ADMINISTRATION 720 126,265 695
CIP-MARKETING 43,400 33,600 7,507
CIP-LABOR 135,338 107,034 137,261
CIP REBATES-LOW INCOME 5,000 1,500 0
CIP-LOW INCOME LABOR 4,500 0 13,604
ENVIRONMENTAL COMPLIANCE 30,564 27,000 27,895
MISC GENERAL EXPENSE 4,800 5,000 10,940
Total For General Expense: 510,147 543,149 206,275
Total Expenses(before Ooeratino Transfers)
36,535,439 36,531,679 35,485,857
Operating Transfer
Oneratina Transfer/Other Funds
TRANSFER TO CITY 4%ER REVENU 1,365,000 1,182,034 1,188,663
Total For Operating Transfer/Other Funds: 1,365,000 1,182,034 1,188,663
Utilities&Labor Donated
UTILITIES&LABOR DONATED 220,000 215,000 215,295
Total For Utilities&Labor Donated: 220,000 215,000 215,295
Net Income Profit(Loss) 1,123,762 1,561,625 2,960,550
201
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER,MINNESOTA
BUDGET FOR PERIOD ENDING DECEMBER 2020
2020 2019 2018
ANNUAL ANNUAL ANNUAL
BUDGET BUDGET ACTUAL
Water
Revenue
Operating Revenue
Water Sales
WATER SALES RESIDENTIAL 1,242,962 1,222,640
WATER SALES COMMERCIAL 801,362 783,135
WATER SALES IRRIGATION 240,785 234,313
Total For Water Sales: 2,285,109 2,240,088 2,445,688
Total Operatinu Revenue
2,285,109 2,240,088 2,445,688
Total For Total Operating Revenue: 2,285,109 2,240,088 2,445,688
Other Operating Revenue
Interest/Dividend Income
INTEREST&DIVIDEND INCOME 38,000 20,000 25,334
OTHER INT/MISC REVENUE 1,000 850 933
Total For Interest/Dividend Income: 39,000 20,850 26,267
Customer Penalties
CUSTOMER PENALTIES 15,000 18,000 18,081
Total For Customer Penalties: 15,000 18,000 18,081
Connection Fees
WATER/ACCESS/CONNECTION FEE 200,000 200,000 716,809
CUSTOMER CONNECTION FEES 20,000 20,000 37,298
BULK WATER SALES/HYDRANT RE 5,000 4,000 14,754
Total For Connection Fees: 225,000 224,000 768,861
Misc Revenue
MISC NON-UTILITY 300 300 384
PERA PENSION OTHER REVENUE 202 3.476
RENTAL PROPERTY INCOME 2,000 6,000 6,371
GAIN ON DISPOSITION OF PROPERTY 7,425
TRANSFER IN FROM CITY 25,000 25,000 Urban Services Study$25k
MISCELLANEOUS REVENUE 0 97
HYDRANT MAINTENANCE PROGRA 11,760 7,000 11,837
WATER TOWER LEASE 235,713 227,050 218,317
Total For Misc Revenue: 274,473 265,552 247,907
Total Other Revenue
553,473 528,402 1,061,116
Total For Total Other Revenue: 553,473 528,402 1,061,116
Total Revenue 2,838,582 2,768,490 3,506,804
202
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER,MINNESOTA
BUDGET FOR PERIOD ENDING DECEMBER 2020
2020 2019 2018
ANNUAL ANNUAL ANNUAL
BUDGET BUDGET ACTUAL
Expenses
Production Expense
MTCE OF STRUCTURES 60,000 51,500 53,135
Total For Production Expense: 60,000 51,500 53,135
Pumping Expense
SUPERVISION 55,000 63,464 54,766
ELECTRIC&GAS UTILITIES 230,000 220,000 224,348
SAMPLING 18,000 18,000 16,705
CHEMICAL FEED 28,000 27,000 24,702
MTCE OF ELECTRIC PUMPING EQUI 161
MTCE OF WELLS 175,000 200,000 151,160
SCADA-PUMPING 10,000 12,000 12,737
Total For Pumping Expense: 516,000 540,464 484,579
Distribution Expense
MTCE OF WATER MAINS 87,000 90,000 83,701
LOCATE WATER LINES 16,000 15,500 14,034
WATER METER SERVICE 45,000 42,000 43,266
MTCE OF CUSTOMERS SERVICE 25,000 25,000 20,486
WATER MAPPING 16,000 16,000 9,784
MTCE OF WATER HYDRANTS-PUB 25,000 27,000 21,856
MTCE OF WATER HYDRANTS-PM 9,000 12,000 1,065
WATER CLOTHING/PPE 7,000 7,000 3,919
WAGES/WATER 7,000 7,663 5,613
TRANSPORTATION EXPENSE 15,000 15,000 14,806
GENERAL EXP/WATER PERMIT 15,000 15,000 12,984
Total For Distribution Expense: 267,000 272,163 231,514
Depreciation&Amortization
DEPRECIATION 1,192,267 1,175,214 1,193,745
Total For Depreciation&Amortization: 1,192,267 1,175,214 1,193,745
Interest Expense
INTEREST ON BONDS/LONG TERM 24,345 33,768 42,693
INTEREST ON DEFEASED BONDS (829) (829) (829)
Total For Interest Expense: 23,516 32,939 41,864
203
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER,MINNESOTA
BUDGET FOR PERIOD ENDING DECEMBER 2020
2020 2019 2018
ANNUAL ANNUAL ANNUAL
BUDGET BUDGET ACTUAL
Other Operating Expense
DAM MAINTENANCE EXPENSE 750 500 332
PENSION EXPENSE 5,000 5,000 (24,934)
OPEB EXPENSE 3,000 16,175
INTEREST PD ON METER DEPOSITS 758 500 724
RENTAL PROPERTY EXPENSE 2,125 1,500 2,180
Total For Other Operating Expense: 11,633 7,500 (5,523)
Customer Accounts Expense
METER READING EXPENSE 1,761 10,000 4,535
MISC CUSTOMER ACCTS EXP-COM 65,100 60,500 59,376 bill redesign CRC increase
CUST BLGS NOT PD/SENT FOR COL 1,000 1,000 (25,942)
Total For Customer Accounts Expense: 67,861 71,500 37,969
Administrative Expense
SALARIES/OFFICE&COMMISSION 212,000 199,067 160,465 additional staff,reorg
TEMPORARY STAFFING 1,000 1,000 3,399
OFFICE SUPPLIES&EXPENSE 48,319 34,000 13,539 website 50k,IT projects 67.5k
LT&WATER CONSUMPTION/OFFIC 7,353 8,000 7,099
BANK CHARGES 800 1,000 681
LEGAL FEES 5,526 7,000 7,596
AUDITING FEES 4,340 4,020 4,100
INSURANCE 24,000 30,000 23,721
UTILITY SHARE DEF COMP 19,500 19,000 12,714 additional staff,reorg
UTIL SH OF MEDICAL/DENTAL/DIS 183,112 152,000 139,847 additional staff,reorg
UTILITY SHARE OF PERA 45,000 45,000 41,325 additional staff,reorg
UTILITY SHARE OF FICA 41,000 45,000 39,452 additional staff,reorg
EMPLOYEE SICK PAY 30,000 37,000 23,911 additional staff,reorg
EMPLOYEE HOLIDAY PAY 25,000 25,850 22,062 additional staff,reorg
EMPLOYEE VACATION&PTO PAY 37,000 36,000 34,778 additional staff,reorg
UPMIC DISTRIBUTION 11,000 12,000 9,339 additional staff,reorg
MISCELLANEOUS-WELLHEAD PR 1,000 -
CONSULTING FEES 34,000 5,000 353 Urban Services Study$25k
TELEPHONE 5,500 5,300 5,609
ADVERTISING 7,000 8,000 8,269
DUES&SUBSCRIPTIONS-FEES 52,000 42,000 42,750
SCHOOLS&MEETINGS 46,675 29,594 17,193
MTCE OF GEN PLANT/OFF HEATIN 1,889 2,500 1,359
Total For Administrative Expense: 842,014 749,331 619,561
204
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER,MINNESOTA
BUDGET FOR PERIOD ENDING DECEMBER 2020
2020 2019 2018
ANNUAL ANNUAL ANNUAL
BUDGET BUDGET ACTUAL
General Expense
CIP REBATES-RESIDENTIAL 4,605 4,500 3,888
CIP REBATES-COMMERCIAL 500 0MI CIP-ADNISTRATION 1014 0
CI P-MARKETING 477 750 0
CIP-LABOR 4,489 5,009 4,078
ENVIRONMENTAL COMPLIANCE 1,003 600 543IS MC GENERAL EXPENSE 1,150 0 768
Total For General Expense: 11,724 12,373 9,277
Total Exnenseslbefore Oneratina Transfers)
2,992,015 2,912,984 2,666,121
Operating Transfer
Utilities&Labor Donated
WATER AND LABOR DONATED 1,630 1,583 0
Total OneratinQ Transfer
Total For Total Operating Transfer: 1,630 1,583 0
(155,063) (146,077) 840,683
205
Elk River Municipal Utilities Business Plan/Budget
2020 Electric Department Capital Budget
Capital Construction Projects-Non-Recurring Normal Distribution,Feeders,and Substations
Cost Description
$ 150,000 Jarvis street rebuild
$ 100,000 Otsego Coborns
$ 199th rebuild
$ 175,000 185th Ave rebuild
$ 100,000 Edison street rebuild
$ 75,000 Otsego Street Lights
$ 150,000 Cty Rd 39 Roundabouts
$ 80,000 Leachate
$ 500,000 Power Plant Substation Relocation
$ 500,000 Field Services Site Prep(relocating feeders)
$ 150,000 Relocate forced main sewer line at Field Services Site
$ 200,000 Rebuild feeder 73 from power plant to Hwy 10
$ Sectionalizing Line Recloser on Dayton River Road
$ 500,000 Miske Meadow Feeder
$ Load Management
$ 75,000 Cty Rd 12 Rebuild to Anoka Cny line
Subtotal $ 2,755,000
Capital Construction Projects-Recurring
Cost Description
$ 200,000 Transformers and Meters
$ 350,000 New Development Distribution Installation
$ 50,000 Street Lighting
$ 50,000 Ongoing OH Equip Replacement(Poles,Switches,Cut-Outs)
$ 100,000 Ongoing URD Equip Replacement(Switches,J-Boxes,Fuse Pads)
$ 500 Territory Acquisition-Loss of Revenue payment(1991 contract)
$ 851,860 Territory Acquisition-Loss of Revenue payment(2015 contract-Area 1&2,3&4,5&6) Reserves
Subtotal $ 1,602,360
Electric Noteworthy Non-Recurring Expenses
Cost Description
$ 2,400 Sit/Stand Desks
$ 5,920 80%share of Administration and Technical Services
Subtotal $ 8,320
Capital Equipment Needs
Cost Description
$ 2,200 Laptop Computers,(pads,Software,Accessories
$ - Pickup Trucks None for the electric department this year.
$ - Replace Digger Truck
$ 250,000 Replace Bucket Truck
$ 75,000 Brush Chipper
$ 20,000 Bore Rig Locator
$ 20,000 Trailer
$ 820,000 80%share of Administration and Technical Services inlcudes$690,000 LFG engines
Subtotal $ 1,187,200
Total $ 5,552,880
206
Elk River Municipal Utilities Business Plan/Budget
2020 Water Department Capital Budget
Water Capital Construction Needs
Cost Description
$ Well#3 Roof Replacement
$ 25,000 Chlorine Analyzers
$ 440,000 Paint/Sandblast Gary Street Tower&wash Reserves
$ 100,000 Facility Repair
$ 15,000 Placeholder for undetermined projects
$ 50,000 Water Main Construction(Capital)
Subtotal $ 630,000
Water Noteworthy Non-Recurring Expenses
Cost Description
$ 10,300 Computers
$ 10,000 Meters/ERT
$ 40,000 SCADA upgrades
$ 5,000 Rate Study
$ 20,000 Jackson Water Tower 100 year anniversary kiosk
$ 25,000 Urban Services District Study (funded from trunk funds)
$ 1,480 20%share of Administration and Technical Services
Subtotal $ 111,780
Capital Equipment Needs
Cost Description
Trucks None for the water department this year.
$ 32,500 20%share of Administration and Technical Services
$ - Field Services Facility site work
Subtotal $ 32,500
Total $ 774,280
207
Elk River Municipal Utilities Business Plan/Budget
2020 Administration and Technical Services Departments Capital Budgets
Administration Capital Equipment Needs
Cost Description
$ 17,000 Computer,Software,Accessories-Upgrades
$ 28,000 IT system improvements for backup recording 25%shared cost with City
$ 40,000 IT system improvements for disaster recovery 50%shared cost with Police Dept
$ 35,000 Office Furniture (includes a tech upgrade for the commission room)
Subtotal $ 120,000
Administration Noteworthy Non-Recurring Expenses
Cost Description
$ 1,000 Printers/scanners
$ 4,000 Replace switch in production room(IT)
Subtotal $ 5,000
Total Administration $ 125,000
Technical Services Capital Equipment Needs
Cost Description
$ 6,500 Computers,Software,Accessories-Upgrades
Diesel Engines Emission Retrofit $ 350,000 Currently designated as emergency standby,
Diesel Plant to run on Natural gas. $ 20,000 Deferred until MMPA transition
$ 25,000 upgrade tanks per inspection issues $25,000 Deferred until 2020 or later
$ 690,000 Rebuild Engine#2,#3, at Landfill per contract
$ 11,000 Meter Testing Equipment
Subtotal $ 732,500
Technical Services Noteworthy Non-Recurring Expenses
Cost Description
$ 2,400 Sit/Stand desks
Subtotal $ 2,400
Total Technical Services $ 734,900
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2020 CIP Operating Budget
Required Spending and Savings Goals
Total Spending Requirement 1.5% of GOR $513,645.00
Low Income .2%of Residential GOR $ 25,444.43
Minimum Conservation Spending Requirement $256,822.50
Maximum Load Management Spending Requirement $256,822.50
Energy Savings Goal (kWh) 4,734,577
Total CIP Budget 2020
Direct Labor $ 84,938
General &Administration $ 39,200
Advertising $ 43,400
Equipment $ 41,500
Contract(Includes$27,000 MN PUC Assessment) $ 62,500
Total $ 271,538
ERMU Rebates $ 290,825
Total all Expenses and Rebates $ 562,363
Total Estimated kWh Savings 4,763,268
Total Operating CIP Budget No Rebates Only Direct Costs
Direct Labor $ 84,938
Advertising $ 43,400
Equipment $ 41,500
Contract(Includes$25,000 MN PUC Assessment) $ 62,500
Total ERMU Operating Expenses $ 232,338
Total Rebate Budget
ERMU Self Funded $ 290,825
Total Requested Budget
Direct Labor $ 84,938
Advertising $ 43,400
Equipment $ 41,500
Contract(Includes$25,000 MN PUC Assessment) $ 62,500
ERMU Self Funded Rebates $ 290,825
Total Requested 2020 Budget* $ 523,163
*No General and Administrative Included
Amount in Excess of Required Spending $ 9,518
* Note-Additional kWh savings, and Implementation of LM programs
additional marketing, equipment, and G&A for new LM start-up.
N:\Office\CIP and Key Accounts\Tom\CIP 2020\2020 Budget Rebate and Operating Budget From DER'19&'20
Plan2020 Budget Rebate and Operating Budget From DER'19&'20 Plan2020 CIP Summary
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