ERMUSR 11-12-2025 REGULAR MEETING OF THE
UTILITIES COMMISSION
November 12, 2025, 3:30 P.M.
Utilities Conference Room
______________________________________________________________________________ Page 1 of 2
AGENDA
1.00 GOVERNANCE
1.01 Call Meeting to Order
1.02 Pledge of Allegiance
1.03 Consider the Agenda
2.00 CONSENT (Routine items. No discussion. Approved by one motion.)
2.01 Check Register – October 2025
2.02 Regular Meeting Minutes – October 14, 2025
2.03 2025 Third Quarter Utilities Performance Metrics Scorecard Statistics
2.04 2025 Third Quarter Delinquent Items
2.05 2025 Assessments
2.06 2026 Wire Bid
2.07 Summary of Information Security Committee Closed Session
3.00 OPEN FORUM (Non-agenda items for discussion. No action. Presenters must adhere to a time limit of 3
minutes.)
4.00 POLICY & COMPLIANCE (Policy review, policy development, and compliance monitoring.)
4.01 Commission Policy Review – G.4e2 – Electric Services
5.00 BUSINESS ACTION (Current business action requests and performance monitoring reports.)
5.01 Financial Report – September 2025
5.02 Electric and Water Cost of Service and Rate Design Study
5.03 Payment in Lieu of Taxes to City of Elk River
5.04 Financial Reserves & Investment Committee Update – Verbal
5.05 Management Policy – A.10 – Financial Reserves
5.06 Commission Policy – 5.A – Margins Policy
5.07 2026 Utilities Fee Schedule
5.08 Health Insurance Update
5.09 Wage & Benefits Committee Proposed 2026 Adjustments
5.10 Advanced Metering Infrastructure Update
5.11 Verizon Water Tower Lease Agreements
6.00 BUSINESS DISCUSSION (Future business planning, general updates, and informational reports.)
6.01 Staff Updates
6.02 City Council Update
6.03 Future Planning (Announce the next regular meeting, special meeting, or planned quorum.)
a. Regular Commission Meeting – December 9, 2025
1
______________________________________________________________________________ Page 2 of 2
b. 2025 Governance Agenda
6.04 Other Business (Items added during agenda approval.)
7.00 ADJOURN REGULAR MEETING
2
CHECK REGISTER
October 2025
APPROVED BY:
John Dietz
Jill Larson-Vito
Mary Stewart
Matt Westgaard
Nick Zerwas
3
Payroll/Labor
Check Register Totals
Page: 111/03/2025 1:43:03 pm
Elk River Municipal Utilities
10/10/2025 To 10/10/2025
Rev: 202303050330
Pays Job Amount Hours
Gross Pay
186,840.05 3,457.502Reg Hours
0.00 0.0020Reg Salary
733.14 11.253Overtime
0.00 0.004Double Time
3,239.18 56.005On-Call/Stand-by
98.49 0.0024FLSA
0.00 0.0025Rest Time
0.00 0.0010Bonus Pay
600.00 0.0018Commissioner Reimb - Electric
60.00 0.00104Commission Stipend
0.00 0.00105Perf. Metr. Distr.
7,811.91 130.75VACVacation Pay
6,911.28 115.00SICKSick Pay
0.00 0.00HOLHoliday Pay
0.00 0.0078Retro Earnings
899.90 10.255-2 On-Call/Stand-by/OT
150.00 0.0018ACommissioner Reimb. - Water
15.00 0.00104ACommission Stipend - Water
0.00 0.00VACVacation Pay - Manager
284.72 8.00PTOYPersonal Day - Year
0.00 0.00UNPDTime Off without Pay
273.31 4.003COvertime-Comp Time
232.44 2.004CDouble Time-Comp Time
-273.31 -4.00CM3COvertime-Comp Time Adjusted
-232.44 -2.00CM4CDouble Time-Comp Time Adjusted
334.80 6.75COMPComp Time Taken
0.00 0.00106Longevity Pay
0.00 0.00MILMilitary Pay - Calendar Year
0.00 0.0010WBonus Pay
109.26 3.00ESSTEarned Safet & Sick Time
Gross Pay Total:208,087.73 3,798.50
Total Pays:208,087.73 3,798.50
/pro/rpttemplate/acct/2.62.1/pl/PL_CHK_REG_TOTALS.xml.rpt KGreenberg25252034
Payroll/Labor
Check Register Totals
Page: 111/03/2025 1:43:42 pm
Elk River Municipal Utilities
10/24/2025 To 10/24/2025
Rev: 202303050330
Pays Job Amount Hours
Gross Pay
181,504.28 3,363.752Reg Hours
0.00 0.0020Reg Salary
783.47 10.503Overtime
142.36 2.004Double Time
3,020.50 56.005On-Call/Stand-by
17.13 0.0024FLSA
622.66 11.0025Rest Time
379.50 6.0010Bonus Pay
0.00 0.00105Perf. Metr. Distr.
16,182.79 259.75VACVacation Pay
2,494.25 62.50SICKSick Pay
0.00 0.00HOLHoliday Pay
0.00 0.0078Retro Earnings
483.33 6.005-2 On-Call/Stand-by/OT
0.00 0.00VACVacation Pay - Manager
0.00 0.00PTOYPersonal Day - Year
0.00 0.00UNPDTime Off without Pay
202.94 2.503COvertime-Comp Time
0.00 0.004CDouble Time-Comp Time
-202.94 -2.50CM3COvertime-Comp Time Adjusted
0.00 0.00CM4CDouble Time-Comp Time Adjusted
1,090.94 22.00COMPComp Time Taken
0.00 0.00106Longevity Pay
0.00 0.00MILMilitary Pay - Calendar Year
0.00 0.0010WBonus Pay
691.98 19.00ESSTEarned Safet & Sick Time
Gross Pay Total:207,413.19 3,818.50
Total Pays:207,413.19 3,818.50
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Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 1 - GENERAL FUND
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
WIRE238410/6/25 FISERV5655 CC FEES - SEPT 2025 2,726.44
CC FEES - SEPT 2025 681.61
CC FEES - SEPT 2025 642.72
CC FEES - SEPT 2025 160.68
CC FEES - SEPT 2025 6,366.34
CC FEES - SEPT 2025 1,591.59
CC FEES - SEPT 2025 71.04
CC FEES - SEPT 2025 17.76
CC FEES - SEPT 2025 851.56
CC FEES - SEPT 2025 212.89
CC FEES - SEPT 2025 2,794.39
CC FEES - SEPT 2025 698.60
Total for Check/Tran - 2384:16,815.62
Total for Bank Account - 1 :(1)16,815.62
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Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
WIRE496110/1/25 IRS - USA TAX PMT (ELECTRONIC)152 PAYROLL TAXES - FEDERAL & FICA 18,696.91
PAYROLL TAXES - FEDERAL & FICA 24,481.88
PAYROLL TAXES - FEDERAL & FICA 3,799.23
PAYROLL TAXES - FEDERAL & FICA 5,365.16
Total for Check/Tran - 4961:52,343.18
WIRE496210/2/25 MINNESOTA REVENUE (ELECTRONIC)154 PAYROLL TAXES - STATE 7,931.47
PAYROLL TAXES - STATE 1,664.89
Total for Check/Tran - 4962:9,596.36
WIRE496410/2/25 HEALTHEQUITY, INC738 FSA CLAIM REIMBURSEMENTS - 114 638.40
FSA CLAIM REIMBURSEMENTS - 114 159.60
Total for Check/Tran - 4964:798.00
WIRE496910/6/25 ONLINE UTILITY EXCHANGE (ELECTR166 UTILITY EXCHANGE REPORT 378.24
UTILITY EXCHANGE REPORT 94.56
Total for Check/Tran - 4969:472.80
WIRE497010/14/25 JOHN HANCOCK285 W&A EMPLOYER CONTRIBUTION 80.00
W&A MANAGER CONTRIBUTION 418.00
WENZEL EMPLOYEE CONTRIBUTIONS 1,737.59
WENZEL MANAGER CONTRIBUTIONS 127.25
DEF COMP ROTH CONTRIBUTIONS W&A 795.00
WENZEL EE ROTH MGR CONTRIBUTIONS 290.75
W&A EMPLOYER CONTRIBUTION 120.00
W&A MANAGER CONTRIBUTION 64.12
WENZEL EMPLOYEE CONTRIBUTIONS 183.96
WENZEL MANAGER CONTRIBUTIONS 31.81
DEF COMP ROTH CONTRIBUTIONS W&A 150.00
WENZEL EE ROTH MGR CONTRIBUTIONS 32.31
Total for Check/Tran - 4970:4,030.79
WIRE497110/8/25 HEALTHEQUITY, INC738 ADMINISTRATIVE FEE INVOICE - OCT 2025 129.00
ADMINISTRATIVE FEE INVOICE - OCT 2025 25.50
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Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
Total for Check/Tran - 4971:154.50
WIRE497210/15/25 IRS - USA TAX PMT (ELECTRONIC)152 PAYROLL TAXES - FEDERAL & FICA 18,684.60
PAYROLL TAXES - FEDERAL & FICA 23,841.70
PAYROLL TAXES - FEDERAL & FICA 3,721.13
PAYROLL TAXES - FEDERAL & FICA 5,085.44
Total for Check/Tran - 4972:51,332.87
WIRE497310/15/25 PERA (ELECTRONIC)153 PERA EMPLOYEE CONTRIBUTION 10,715.80
PERA CONTRIBUTIONS 12,364.45
PERA EMPLOYEE CONTRIBUTION 2,377.49
PERA CONTRIBUTIONS 2,743.24
Total for Check/Tran - 4973:28,200.98
WIRE497410/15/25 MINNESOTA CHILD SUPPORT PAYMEN598 CHILD SUPPORT 589.75
WIRE497610/15/25 HEALTHEQUITY, INC738 HSA ER CONTRIBUTION - 202 410.60
HSA ER CONTRIBUTION - 202 102.65
HSA EMPLOYEE CONTRIBUTION 2,699.42
HSA EMPLOYEE CONTRIBUTION 476.42
FSA CLAIM REIMBURSEMENTS - 164 153.85
FSA CLAIM REIMBURSEMENTS - 164 38.46
Total for Check/Tran - 4976:3,881.40
WIRE497710/16/25 MINNESOTA REVENUE (ELECTRONIC)154 PAYROLL TAXES - STATE 7,938.84
PAYROLL TAXES - STATE 1,627.96
Total for Check/Tran - 4977:9,566.80
WIRE497810/17/25 VOYA INSTITUTIONAL TRUST COMPAN160HCSP EMPLOYEE CONTRIBUTIONS 2,462.10
HCSP EMPLOYEE CONTRIBUTIONS 446.15
Total for Check/Tran - 4978:2,908.25
WIRE497910/17/25 VOYA INSTITUTIONAL TRUST COMPAN161MNDCP EE MANAGER CONTRIBUTIONS 356.46
MNDCP EMPLOYEE CONTRIBUTIONS 3,323.58
MNDCP EMPLOYER CONTRIBUTION 1,099.94
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Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
MNDCP EMPLOYER MGR CONTRIBUTION 599.52
MNDCP EE ROTH CONTRIBUTIONS 1,783.51
MNDCP EE ROTH MGR CONTRIBUTIONS 243.06
MNDCP EE MANAGER CONTRIBUTIONS 50.08
MNDCP EMPLOYEE CONTRIBUTIONS 239.69
MNDCP EMPLOYER CONTRIBUTION 136.27
MNDCP EMPLOYER MGR CONTRIBUTION 82.76
MNDCP EE ROTH CONTRIBUTIONS 393.43
MNDCP EE ROTH MGR CONTRIBUTIONS 32.68
Total for Check/Tran - 4979:8,340.98
WIRE498110/16/25 QUADIENT FINANCE USA, INC8606 POSTAGE & INK 974.98
POSTAGE & INK 243.74
Total for Check/Tran - 4981:1,218.72
WIRE498310/27/25 PERA (ELECTRONIC)153 PERA EMPLOYEE CONTRIBUTION 10,665.49
PERA CONTRIBUTIONS 12,306.39
PERA EMPLOYEE CONTRIBUTION 2,437.58
PERA CONTRIBUTIONS 2,812.58
Total for Check/Tran - 4983:28,222.04
WIRE498410/27/25 MINNESOTA CHILD SUPPORT PAYMEN598 CHILD SUPPORT 589.75
WIRE498510/14/25 CARDMEMBER SERVICE9654 FIRST NATIONAL BANK VISA 9,426.08
FIRST NATIONAL BANK VISA 2,668.07
Total for Check/Tran - 4985:12,094.15
WIRE498610/21/25 MINNESOTA REVENUE SALES TX (ELE174 SALES AND USE TAX - SEPT 2025 310,804.91
SALES AND USE TAX - SEPT 2025 -2.44
SALES AND USE TAX - SEPT 2025 11,467.53
Total for Check/Tran - 4986:322,270.00
WIRE498710/28/25 IRS - USA TAX PMT (ELECTRONIC)152 PAYROLL TAXES - FEDERAL & FICA 18,453.87
PAYROLL TAXES - FEDERAL & FICA 23,661.62
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Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
PAYROLL TAXES - FEDERAL & FICA 3,847.03
PAYROLL TAXES - FEDERAL & FICA 5,220.74
Total for Check/Tran - 4987:51,183.26
WIRE498810/28/25 VOYA INSTITUTIONAL TRUST COMPAN160HCSP EMPLOYEE CONTRIBUTIONS 2,439.52
HCSP EMPLOYEE CONTRIBUTIONS 456.18
Total for Check/Tran - 4988:2,895.70
WIRE498910/28/25 VOYA INSTITUTIONAL TRUST COMPAN161MNDCP EE MANAGER CONTRIBUTIONS 356.43
MNDCP EMPLOYEE CONTRIBUTIONS 3,320.50
MNDCP EMPLOYER CONTRIBUTION 1,099.09
MNDCP EMPLOYER MGR CONTRIBUTION 599.53
MNDCP EE ROTH CONTRIBUTIONS 1,824.52
MNDCP EE ROTH MGR CONTRIBUTIONS 243.10
MNDCP EE MANAGER CONTRIBUTIONS 50.11
MNDCP EMPLOYEE CONTRIBUTIONS 242.77
MNDCP EMPLOYER CONTRIBUTION 137.12
MNDCP EMPLOYER MGR CONTRIBUTION 82.75
MNDCP EE ROTH CONTRIBUTIONS 393.42
MNDCP EE ROTH MGR CONTRIBUTIONS 32.64
Total for Check/Tran - 4989:8,381.98
WIRE499010/28/25 JOHN HANCOCK285 W&A EMPLOYER CONTRIBUTION 80.00
W&A MANAGER CONTRIBUTION 418.00
WENZEL EMPLOYEE CONTRIBUTIONS 1,874.40
WENZEL MANAGER CONTRIBUTIONS 127.25
DEF COMP ROTH CONTRIBUTIONS W&A 795.00
WENZEL EE ROTH MGR CONTRIBUTIONS 290.75
W&A EMPLOYER CONTRIBUTION 120.00
W&A MANAGER CONTRIBUTION 64.12
WENZEL EMPLOYEE CONTRIBUTIONS 183.93
WENZEL MANAGER CONTRIBUTIONS 31.81
DEF COMP ROTH CONTRIBUTIONS W&A 150.00
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Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
WENZEL EE ROTH MGR CONTRIBUTIONS 32.31
Total for Check/Tran - 4990:4,167.57
WIRE499110/28/25 HEALTHEQUITY, INC738 HSA EMPLOYEE CONTRIBUTION 2,655.72
HSA EMPLOYEE CONTRIBUTION 470.12
Total for Check/Tran - 4991:3,125.84
WIRE499210/29/25 HEALTHEQUITY, INC738 FSA CLAIM REIMBURSEMENTS - 164 153.85
FSA CLAIM REIMBURSEMENTS - 164 38.46
Total for Check/Tran - 4992:192.31
WIRE499310/30/25 MINNESOTA REVENUE (ELECTRONIC)154 PAYROLL TAXES - STATE 7,873.38
PAYROLL TAXES - STATE 1,692.37
Total for Check/Tran - 4993:9,565.75
DD2253210/3/25 ARCHER PLUMBING LLC728 WATER METER INSTALL 636.46
WATER METER INSTALL -46.46
Total for Check/Tran - 22532:590.00
DD2253310/3/25 MICHAEL ATWOOD665 Mileage 53.20
Mileage 167.30
Total for Check/Tran - 22533:220.50
DD2253410/3/25 BEAUDRY OIL COMPANY6 ULTRAPURE DEF 294.38
DD2253510/3/25 CENTRAL MUNICIPAL POWER AGENCY43442ND CIRCUIT 117,852.18
DD2253610/3/25 ELK RIVER MUNICIPAL UTILITIES23 CYCLE 2 - ACCT 41038 - AUG 2025 103.77
CYCLE 2 - ACCT 41038 - AUG 2025 5.46
CYCLE 2 - INV GRP 413 - AUG 2025 100.00
CYCLE 2 - INV GRP 413 - AUG 2025 548.48
CYCLE 1 - INV GRP 421 - AUG 2025 7,084.89
CYCLE 2 - INV GRP 436 - AUG 2025 3,626.42
Total for Check/Tran - 22536:11,469.02
DD2253710/3/25 FASTENAL COMPANY671 Red Locate Paint 1,722.07
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Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
WASHERS 27.77
Total for Check/Tran - 22537:1,749.84
DD2253810/3/25 JENNY FOSS626 Mileage 52.19
Schools and Meetings 98.97
Mileage 13.05
Schools and Meetings 24.74
Total for Check/Tran - 22538:188.95
DD2253910/3/25 FRONTIER ENERGY, INC664 PROFESSIONAL SERVICES - AUG 2025 10,000.00
DD2254010/3/25 GARAGE DOOR STORE404 REMOTES 320.93
REMOTES 45.85
Total for Check/Tran - 22540:366.78
DD2254110/3/25 KATHY A GREENBERG8469 CERTIFIED MAIL 10.48
POSTAGE DUE 3.52
POSTAGE-VENDOR CHECK TO CANADA PO15745 1.70
POSTAGE DUE 0.88
Total for Check/Tran - 22541:16.58
DD2254210/3/25 HEARTLAND BUSINESS SYTEMS LLC731 Network 1,200.00
Network 300.00
Total for Check/Tran - 22542:1,500.00
DD2254310/3/25 HYDROCORP5686 BACKFLOW DEVICE INSPECTION - SEPT 2025 1,229.33
DD2254410/3/25 JT SERVICES OF MINNESOTA8083 GREEN LED LIGHTS 8,705.51
DD2254510/3/25 MELISSA KARPINSKI353 Schools and Meetings 10.14
Schools and Meetings 2.53
Mileage 17.81
Mileage-Schools and Meetings 4.45
Total for Check/Tran - 22545:34.93
DD2254610/3/25 MMUA39 LINEMAN COLLEGE #3 - 190 755.00
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Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
DD2254710/3/25 WATER LABORATORIES INC135 WATER SAMPLING - SEPT 2025 360.00
DD2260010/8/25 CITY OF ELK RIVER11 MISC PARTS & SUPPLIES - PD CITY IN ERROR -86.26
MISC PARTS & SUPPLIES - PD CITY IN ERROR -18.01
PARTS & LABOR FOR UNIT #3 -40.01
PARTS & LABOR FOR UNIT #3 743.01
LABOR FOR UNIT #17 61.75
LABOR FOR UNIT #17 3.25
PARTS & LABOR FOR UNIT #3 -0.58
PARTS & LABOR FOR UNIT #3 72.83
LABOR FOR UNIT # 30 65.00
PARTS & LABOR FOR UNIT #21 -7.13
PARTS & LABOR FOR UNIT #21 357.71
PARTS & LABOR FOR UNIT #56 71.17
LABOR FOR UNIT #12 65.00
LABOR FOR UNIT #22 65.00
MARCO SHARED COSTS 6,069.89
MARCO SHARED COSTS 1,517.47
FUEL USAGE - AUG 2025 2,301.48
FUEL USAGE - AUG 2025 961.05
PARTS & LABOR FOR UNIT #10 1,276.67
Total for Check/Tran - 22600:13,479.29
DD2260110/8/25 ARCHER PLUMBING LLC728 WATER METER INSTALL 636.46
WATER METER INSTALL -46.46
Total for Check/Tran - 22601:590.00
DD2260210/8/25 BEAUDRY OIL COMPANY6 DIESEL FUEL 3,202.51
DD2260310/8/25 ELK RIVER MUNICIPAL UTILITIES23 CYCLE 3 - INV GRP 395 - AUG 2025 13,795.53
CYCLE 3 - INV GRP 414 - AUG 2025 125.00
CYCLE 3 - INV GRP 414 - AUG 2025 655.29
Total for Check/Tran - 22603:14,575.82
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Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
DD2260410/8/25 FASTENAL COMPANY671 PEDESTAL COVER SCREWS 101.59
DD2260510/8/25 HAWKINS, INC.809 CHLORINE CYLINDER RENTAL 160.00
Water Chemicals 1,266.45
Total for Check/Tran - 22605:1,426.45
DD2260610/8/25 HEARTLAND BUSINESS SYTEMS LLC731 Network 1,947.72
Network 778.94
Network 486.93
Network 194.74
Total for Check/Tran - 22606:3,408.33
DD2260710/8/25 JT SERVICES OF MINNESOTA8083 Splice Cleaner 353.18
DD2260810/8/25 MINNESOTA MUNICIPAL POWER AGEN1001Purchased Power - SEPT 2025 2,373,802.70
Purchased Power - SEPT 2025 681,860.78
Total for Check/Tran - 22608:3,055,663.48
DD2260910/8/25 PARKER THEISEN618 Schools and Meetings 10.92
Schools and Meetings 2.74
Total for Check/Tran - 22609:13.66
DD2261010/8/25 WRIGHT HENNEPIN COOPERATIVE ELE610SECURITY - 1435 & 1705 MAIN ST 54.55
SECURITY - 1435 & 1705 MAIN ST 7.79
Total for Check/Tran - 22610:62.34
DD2261110/15/25 BORDER STATES ELECTRIC SUPPLY9 LOAD BREAK 3,237.00
COLD SHRINK SPLICE 746.50
Fuse Holder 353.31
MISC PARTS & SUPPLIES 2,601.33
Mtce of URD Primary 891.58
GALVINIZED MESH -11.17
Mesh 152.94
PHOTOEYE 1,110.35
GALVANIZED MESH -11.17
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Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
Mesh 152.94
Mtce of OH Primary 393.60
Mtce of OH Primary 392.49
Mtce of URD Primary 1,807.99
Mtce of OH Primary 290.50
Mtce of URD Primary 1,009.71
Mtce of URD Primary 1,197.16
ANCHORS & COLD SHRINK TERMINATORS 1,740.16
Tool 91.75
Mtce of URD Primary 1,631.09
Mtce of URD Primary -25.47
MOUNTING BRACKET 184.00
Total for Check/Tran - 22611:17,936.59
DD2261210/15/25 CITY OF ELK RIVER11 FRANCHISE FEE CREDIT - AUG 2025 -725.00
TRASH BILLED - SEPT 2025 168,119.36
Total for Check/Tran - 22612:167,394.36
DD2261310/15/25 ELFERING & ASSOCIATES3667 PROFESSIONAL SERVICES - SEPT 2025 300.00
PROFESSIONAL SERVICES - SEPT 2025 2,400.00
PROFESSIONAL SERVICES - SEPT 2025 900.00
Total for Check/Tran - 22613:3,600.00
DD2261410/15/25 ELK RIVER MUNICIPAL UTILITIES23 CYCLE 4 - INV GRP 396 - SEPT 2025 243.43
CYCLE 4 - INV GRP 415 - SEPT 2025 175.00
CYCLE 4 - INV GRP 415 - SEPT 2025 1,507.88
Total for Check/Tran - 22614:1,926.31
DD2261510/15/25 GARAGE DOOR STORE404 GARAGE DOOR REPAIR -2.06
GARAGE DOOR REPAIR 303.93
GARAGE DOOR REPAIR -0.30
GARAGE DOOR REPAIR 43.43
Total for Check/Tran - 22615:345.00
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Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
DD2261610/15/25 HACH COMPANY846 SAMPLING SUPPLIES -39.87
SAMPLING SUPPLIES 563.35
Total for Check/Tran - 22616:523.48
DD2261710/15/25 LOCATORS & SUPPLIES INC.417 Blue Locate Flags 485.30
DD2261810/15/25 METRO SALES, INC330 COPIER MTC CONTRACT - 8/21 to 9/20/25 169.25
COPIER MTC CONTRACT - 8/21 to 9/20/25 42.31
Total for Check/Tran - 22618:211.56
DD2261910/15/25 MMUA39 LINEMAN COLLEGE - 195 755.00
DD2262010/15/25 NCPERS MINNESOTA573 EXTRA LIFE INSURANCE - NOV 2025 284.80
EXTRA LIFE INSURANCE - NOV 2025 35.20
Total for Check/Tran - 22620:320.00
DD2262110/15/25 OLSEN CHAIN & CABLE, INC.358 CARABINER -6.29
CARABINER 86.20
Total for Check/Tran - 22621:79.91
DD2266910/23/25 ARCHER PLUMBING LLC728 WATER METER INSTALL 760.53
WATER METER INSTALL -55.53
WATER METER REPAIRS 600.00
Total for Check/Tran - 22669:1,305.00
DD2267010/23/25 BEAUDRY OIL COMPANY6 UNLEADED FUEL 2,569.13
DD2267110/23/25 CAMPBELL KNUTSON8843 LEGAL SERVICES - SEPT 2025 3,076.80
LEGAL SERVICES - SEPT 2025 769.20
Total for Check/Tran - 22671:3,846.00
DD2267210/23/25 CITY OF ELK RIVER11 REVENUE TRANSFER - SEPT 2025 160,269.00
SEWER BILLED - SEPT 2025 252,328.12
STORMWATER BILLED - SEPT 2025 57,060.81
Total for Check/Tran - 22672:469,657.93
DD2267310/23/25 CRC7448 CUSTOMER SERVICE AFTER HOURS 2,679.47
/pro/rpttemplate/acct/2.62.1/ap/AP_CHK_REGISTER.xml.rpt2520316
Page 1211/03/2025 1:42:10 PM
Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
CUSTOMER SERVICE AFTER HOURS 669.87
Total for Check/Tran - 22673:3,349.34
DD2267410/23/25 JENNY FOSS626 Schools and Meetings 32.35
DD2267510/23/25 GOPHER STATE ONE-CALL91 LOCATES FOR - SEPT 2025 592.52
LOCATES FOR - SEPT 2025 31.18
Total for Check/Tran - 22675:623.70
DD2267610/23/25 HAWKINS, INC.809 Water Chemicals 2,880.69
DD2267710/23/25 DEREK C LUTTER818 Backflow School 46.65
Mileage - Backflow school 70.00
Total for Check/Tran - 22677:116.65
DD2267810/23/25 MMUA39 2025 QTR 4 JTS & SAFETY TRAINING 5,007.60
2025 QTR 4 JTS TRAINING 2,241.25
2025 QTR 4 SAFETY TRAINING (City)6,259.50
2025 QTR 4 JTS & SAFETY TRAINING 1,251.90
Total for Check/Tran - 22678:14,760.25
DD2267910/23/25 NISC9300 AGREEMENTS INVOICE - SEPT 2025 53.92
AGREEMENTS INVOICE - SEPT 2025 785.79
AGREEMENTS INVOICE - SEPT 2025 11,432.91
AGREEMENTS INVOICE - SEPT 2025 260.00
AGREEMENTS INVOICE - SEPT 2025 336.76
AGREEMENTS INVOICE - SEPT 2025 2,570.91
AGREEMENTS INVOICE - SEPT 2025 70.09
PRINT SERVICES - SEPT 2025 6,811.14
PRINT SERVICES - SEPT 2025 908.73
PRINT SERVICES - SEPT 2025 1,702.78
MISC INVOICE - SEPT 2024 621.48
MISC INVOICE - SEPT 2024 155.37
Total for Check/Tran - 22679:25,709.88
/pro/rpttemplate/acct/2.62.1/ap/AP_CHK_REGISTER.xml.rpt2520317
Page 1311/03/2025 1:42:10 PM
Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
DD2268010/23/25 OLSEN CHAIN & CABLE, INC.358 PIPE CHOKER SLING - UNIT #10 118.52
DD2268110/23/25 SPENCER FANE LLP817 LEGAL SERVICES - SEPT 2025 748.00
DD2268210/23/25 WATER CONSERVATION SERVICE, INC.8808 Survey 7,872.00
DD2268310/30/25 ELK RIVER MUNICIPAL UTILITIES23 CYCLE 1 - INV GRP 421 - SEPT 2025 8,619.68
CYCLE 1 - ACCT 183 - SEPT 2025 644.02
CYCLE 1 - INV GRP 101 - SEPT 2025 3,548.72
CYCLE 1 - INV GRP 101 - SEPT 2025 46.23
CYCLE 1 - INV GRP 101 - SEPT 2025 1,351.82
CYCLE 1 - INV GRP 101 - SEPT 2025 542.37
CYCLE 1 - INV GRP 101 - SEPT 2025 337.95
CYCLE 1 - INV GRP 325 - SEPT 2025 325.00
CYCLE 1 - INV GRP 325 - SEPT 2025 16,810.82
Total for Check/Tran - 22683:32,226.61
DD2268410/30/25 HACH COMPANY846 MISC PARTS & SUPPLIES -5.22
MISC PARTS & SUPPLIES 71.49
Total for Check/Tran - 22684:66.27
DD2268510/30/25 LEIDOS ENGINEERING, LLC412 VERIZON POLE ATTACHMENTS 9,010.00
DD2268610/30/25 RESCO130 Transformer 17,125.00
Discount -8.56
RISER ARRESTER 2,034.00
Discount -1.02
Total for Check/Tran - 22686:19,149.42
DD2268710/30/25 ROYAL SUPPLY INC603 OFFICE & SHOP SUPPLIES 784.46
OFFICE & SHOP SUPPLIES 196.12
Total for Check/Tran - 22687:980.58
DD2268810/30/25 WATER CONSERVATION SERVICE, INC.8808 WATER LEAK LOCATE - 11218 191ST 377.00
CHK8986310/2/25 1ST AYD CORPORATION328 SHOP SUPPLIES 196.67
/pro/rpttemplate/acct/2.62.1/ap/AP_CHK_REGISTER.xml.rpt2520318
Page 1411/03/2025 1:42:10 PM
Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
SHOP SUPPLIES 49.17
Total for Check/Tran - 89863:245.84
CHK8986410/2/25 BLECHTA EXTERIOR CLEANING9999 Hydrant Rental Deposit Refund - 3/4"103.95
CHK8986510/2/25 BLECHTA EXTERIOR CLEANING9999 Hydrant Rental Deposit Refund 1,337.31
CHK8986610/2/25 CYNTHIA BLUHM9997 Credit Balance Refund 20.81
CHK8986710/2/25 CENTERPOINT ENERGY3982 NATURAL GAS & IRON REMOVAL 382.69
NATURAL GAS & IRON REMOVAL 91.69
Total for Check/Tran - 89867:474.38
CHK8986810/2/25 CHARTER COMMUNICATIONS549 OFFICE TELEPHONE 197.38
OFFICE TELEPHONE 49.35
Total for Check/Tran - 89868:246.73
CHK8986910/2/25 CINTAS28 MATS & TOWELS 529.75
MATS & TOWELS 75.67
MATS & TOWELS 529.75
MATS & TOWELS 75.67
Total for Check/Tran - 89869:1,210.84
CHK8987010/2/25 COLLINS BROTHERS TOWING INC537 TOWING - UNIT #5 375.00
CHK8987110/2/25 CORE & MAIN LP54 WATER LID 193.17
VALVES 1,282.96
Total for Check/Tran - 89871:1,476.13
CHK8987210/2/25 DGR ENGINEERING656 PROFESSIONAL SERVICES - AUG 2025 10,472.50
PROFESSIONAL SERVICES - AUG 2025 5,000.00
Total for Check/Tran - 89872:15,472.50
CHK8987310/2/25 E.H. RENNER & SONS, INC2789 Well 4 2,100.00
CHK8987410/2/25 ENERSYS8660 Batteries 1,603.46
CHK8987510/2/25 EVERLIGHT SOLAR LLC9999 Refund solar app fee - Hamilton 96.80
/pro/rpttemplate/acct/2.62.1/ap/AP_CHK_REGISTER.xml.rpt2520319
Page 1511/03/2025 1:42:10 PM
Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
CHK8987610/2/25 EVERSPRING INN AND SUITES-MARSH572 OVERHEAD SCHOOL HOTEL - 182 298.71
OVERHEAD SCHOOL HOTEL - 111 298.71
Total for Check/Tran - 89876:597.42
CHK8987710/2/25 FERGUSON WATERWORKS #25168247 Valve Wrench 784.51
CHK8987810/2/25 MADISON FINKE9997 Credit Balance Refund 83.92
CHK8987910/2/25 FS3 INC.8949 PARTS FOR UNIT #56 498.57
CHK8988010/2/25 GREAT PLAINS INSTITTUTE5091 2025 MN DRIVE ELECTRIC DUES 475.00
CHK8988110/2/25 HPA US1 LLC9997 Credit Balance Refund 215.64
CHK8988210/2/25 HUBBARD ELECTRIC5341 METER REPLACE - 9694 PARKINGTON 699.79
METER REPLACE - 9694 PARKINGTON -14.59
Total for Check/Tran - 89882:685.20
CHK8988310/2/25 LENNAR HOMES9997 Credit Balance Refund 144.56
CHK8988410/2/25 LENNAR HOMES9997 Credit Balance Refund 163.51
CHK8988510/2/25 LENNAR HOMES9997 Credit Balance Refund 159.80
CHK8988610/2/25 LENNAR HOMES9997 Credit Balance Refund 165.11
CHK8988710/2/25 LEWIS CUSTOM HOMES, INC9997 Credit Balance Refund 190.83
CHK8988810/2/25 MARCO TECHNOLOGIES, LLC8605 OFFICE 365 - 8/24 to 9/23/25 1,314.24
OFFICE 365 - 8/24 to 9/23/25 305.37
ACE PROGRAM - 8/29 to 9/28/25 1,437.80
ACE PROGRAM - 8/29 to 9/28/25 359.45
Total for Check/Tran - 89888:3,416.86
CHK8988910/2/25 MENARDS145 MISC PARTS & SUPPLIES 101.79
WATERSTOP 9.68
REBATE -14.53
/pro/rpttemplate/acct/2.62.1/ap/AP_CHK_REGISTER.xml.rpt2520320
Page 1611/03/2025 1:42:10 PM
Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
REBATE -29.63
REBATE -6.66
Total for Check/Tran - 89889:60.65
CHK8989010/2/25 AGUSTIN E MENDOZA GUILLEN9997 Credit Balance Refund 30.38
CHK8989110/2/25 MICHELS UTILITY SERVICES, INC520 TREHCHING - ANNA'S ACRES 19,317.95
CHK8989210/2/25 MOBILE VEHICLE INTEGRATION8796 PARTS & LABOR FOR UNIT #7 -25.50
PARTS & LABOR FOR UNIT #7 569.65
Total for Check/Tran - 89892:544.15
CHK8989310/2/25 MUTUAL OF OMAHA633 ELEC LIFE INSURANCE - OCT 2025 216.81
LIFE,STD & LTD INSURANCE - OCT 2025 2,380.33
ELEC LIFE INSURANCE - OCT 2025 202.94
LIFE,STD & LTD INSURANCE - OCT 2025 604.18
Total for Check/Tran - 89893:3,404.26
CHK8989410/2/25 NAPA AUTO PARTS120 UNIT #31 AIR FILTER & CABLE LUBE 35.19
CHK8989510/2/25 DALE ONSTAD9997 Credit Balance Refund 582.19
CHK8989610/2/25 MICHAEL POTTER9997 Credit Balance Refund 177.00
CHK8989710/2/25 PRINCETON RENTAL INC630 DRILL CORE RENTAL & BIT 116.61
CHK8989810/2/25 JACOB REYNOLDS9997 Credit Balance Refund 54.33
CHK8989910/2/25 SHIRLY SEIDENKRANZ9997 Credit Balance Refund 353.97
CHK8990010/2/25 SFR ACQUISITIONS I LLC9997 Credit Balance Refund 160.65
CHK8990110/2/25 SHERBURNE COUNTY PUBLIC WORKS848 UTILITY PERMIT 100.00
CHK8990210/2/25 LYNANN SMITH9997 Credit Balance Refund 404.66
CHK8990310/2/25 SPEEDCUTTERS OUTDOOR MAINTENA8141 LANDSCAPE WEEDING 122.71
LANDSCAPE WEEDING 17.53
/pro/rpttemplate/acct/2.62.1/ap/AP_CHK_REGISTER.xml.rpt2520321
Page 1711/03/2025 1:42:10 PM
Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
Total for Check/Tran - 89903:140.24
CHK8990410/2/25 DALLAS ST HILAIRE9997 Credit Balance Refund 39.51
CHK8990510/2/25 STUART C. IRBY CO.6107 Woodpecker Wrap 1,505.18
Tool 98.88
GLOVES -515.63
Total for Check/Tran - 89905:1,088.43
CHK8990610/2/25 THE UPS STORE 50933360 SHIPPING - OIL SAMPLES 39.52
SHIPPING - OIL SAMPLES 46.69
Total for Check/Tran - 89906:86.21
CHK8990710/2/25 USABLUEBOOK543 THREAD SEALANT 152.05
CHK8990810/2/25 WESCO RECEIVABLES CORP.55 Bee Spray 117.02
FIBERGLASS X ARM 6,053.25
SWITCHGEAR 82,314.00
Total for Check/Tran - 89908:88,484.27
CHK8990910/8/25 ALTERNATE BUSINESS FURNITURE, IN5342 Panel 362.03
CHK8991010/8/25 AT & T MOBILITY4531 CELL PHONES & iPAD BILLING 29.18
CELL PHONES & iPAD BILLING 2,503.38
CELL PHONES & iPAD BILLING 12.50
CELL PHONES & iPAD BILLING 641.64
Total for Check/Tran - 89910:3,186.70
CHK8991110/8/25 BAYCOM, INC.8079 Toughbook 3,130.53
Toughbook 3,130.54
Total for Check/Tran - 89911:6,261.07
CHK8991210/8/25 BLUE CROSS BLUE SHIELD OF MINNES5224 VISION INSURANCE - NOV 2025 271.71
VISION INSURANCE - NOV 2025 84.33
Total for Check/Tran - 89912:356.04
CHK8991310/8/25 BULLFROG IND654 PAINT CABINET 3,960.00
/pro/rpttemplate/acct/2.62.1/ap/AP_CHK_REGISTER.xml.rpt2520322
Page 1811/03/2025 1:42:10 PM
Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
CHK8991410/8/25 CORE & MAIN LP54 WATER METERS 20,511.65
WASHERS & GASKETS -4.30
WASHERS & GASKETS 59.05
WATER METER 8,899.59
Probe 1,972.94
Total for Check/Tran - 89914:31,438.93
CHK8991510/8/25 DRIVER & VEHICLE SERVICES5249 CRASH REPORT 5.00
CHK8991610/8/25 ELK RIVER PRINTING & VENTURE PRO24 WATER DOOR HANGERS - BACKFLOW 105.69
CHK8991710/8/25 FS3 INC.8949 JAWS - UNIT #56 346.49
UTILITY WORK AHEAD SIGN 173.85
Total for Check/Tran - 89917:520.34
CHK8991810/8/25 KODIAK POWER SYSTEMS, INC5377 DOWN PAYMENT - PO 15783 45,406.62
CHK8991910/8/25 MENARDS145 MISC PARTS & SUPPLIES 22.54
CHK8992010/8/25 MINNESOTA COMPUTER SYSTEMS INC119 COPIER MTC CONTRACT - 9/12 to 10/11/25 125.96
COPIER MTC CONTRACT - 9/12 to 10/11/25 31.49
Total for Check/Tran - 89920:157.45
CHK8992110/8/25 OLD REPUBLIC SURETY GROUP6149 UTILITY PERMIT 250.00
CHK8992210/8/25 PRIME ADVERTISING & DESIGN, INC.811 MONTHLY HOSTING OF WEBSITE 40.00
MONTHLY HOSTING OF WEBSITE 40.00
MONTHLY HOSTING OF WEBSITE 20.00
Marketing 1,500.00
Total for Check/Tran - 89922:1,600.00
CHK8992310/8/25 QUADIENT FINANCE USA, INC8606 POSTAGE MACHINE LEASE - 8/6 to 11/5/25 226.66
POSTAGE MACHINE LEASE - 8/6 to 11/5/25 56.66
Total for Check/Tran - 89923:283.32
CHK8992410/8/25 RDO EQUIPMENT CO.3218 PARTS FOR UNIT #56 208.73
/pro/rpttemplate/acct/2.62.1/ap/AP_CHK_REGISTER.xml.rpt2520323
Page 1911/03/2025 1:42:10 PM
Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
HONDA ENGINE - UNIT #56 1,503.80
Total for Check/Tran - 89924:1,712.53
CHK8992510/8/25 STUART C. IRBY CO.6107 Glove Protector 225.05
CHK8992610/8/25 THE UPS STORE 50933360 SHIPPING - OIL SAMPLES 40.18
CHK8992710/8/25 TITAN MACHINERY7795 REPLACE LIFT CHARGER 2,136.01
CHK8992810/8/25 TRANSUNION331 SKIP TRACING - AUG 2025 60.00
SKIP TRACING - AUG 2025 15.00
Total for Check/Tran - 89928:75.00
CHK8992910/8/25 UC LABORATORY222 WATER SAMPLES - SEPT 2025 16.17
CHK8993010/15/25 AMERICAN PUBLIC POWER ASSOCIATI1 POWERTRX RELIABILITY SUBSCRIPTION 325.00
CHK8993110/15/25 BRAUN INTERTEC CORPORATION9266 East Sub 1,688.60
CHK8993210/15/25 CAPSTONE HOMES9997 Credit Balance Refund 129.63
CHK8993310/15/25 CAPSTONE HOMES9997 Credit Balance Refund 117.09
CHK8993410/15/25 CAPSTONE HOMES9997 Credit Balance Refund 87.63
CHK8993510/15/25 CAPSTONE HOMES9997 Credit Balance Refund 61.70
CHK8993610/15/25 CHRISTIAN BUILDERS9997 INACTIVE REFUND 32.26
CHK8993710/15/25 REBECCA CICH9997 INACTIVE REFUND 27.12
CHK8993810/15/25 HAILEY DEFLORIN9997 INACTIVE REFUND 186.39
CHK8993910/15/25 ELK RIVER WINLECTRIC122 PVC METER OFFSET -8.83
PVC METER OFFSET 120.99
WIRE 41,066.16
MISC PARTS & SUPPLIES -0.94
MISC PARTS & SUPPLIES 12.92
MISC PARTS & SUPPLIES 70.04
/pro/rpttemplate/acct/2.62.1/ap/AP_CHK_REGISTER.xml.rpt2520324
Page 2011/03/2025 1:42:10 PM
Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
MISC PARTS & SUPPLIES -5.10
Mtce of OH Primary 20.00
Interduct 2,783.18
MISC PARTS & SUPPLIES -203.18
PVC ELBOW 199.40
WIRE 117,610.58
CONDUIT -9.44
Mtce of OH Primary 129.24
Total for Check/Tran - 89939:161,785.02
CHK8994010/15/25 ANNIKA FRIEND9997 INACTIVE REFUND 20.84
CHK8994110/15/25 GEARED UP APPAREL5550 NEW EE WATER BOTTLES 258.90
NEW EE WATER BOTTLES 64.73
Total for Check/Tran - 89941:323.63
CHK8994210/15/25 GENERAL REPAIR SERVICE7492 HEAD KIT -229.11
Pump Kit 3,138.32
Total for Check/Tran - 89942:2,909.21
CHK8994310/15/25 RON GRAMS9997 INACTIVE REFUND 59.27
CHK8994410/15/25 GRAND NUTRITION9997 INACTIVE REFUND 295.13
CHK8994510/15/25 GREATAMERICA FINANCIAL SERVICES730LEASE FOR COPIER AT PLANT 105.01
LEASE FOR COPIER AT PLANT 26.26
Total for Check/Tran - 89945:131.27
CHK8994610/15/25 HEALTHPARTNERS631 DENTAL EE INSURANCE - NOV 2025 816.89
DENTAL ER INSURANCE - NOV 2025 2,204.95
MEDICAL EE INSURANCE - NOV 2025 10,689.25
MEDICAL ER INSURANCE - NOV 2025 57,160.09
MEDICAL COBRA INSURANCE - NOV 2025 1,320.06
DENTAL EE INSURANCE - NOV 2025 140.04
DENTAL ER INSURANCE - NOV 2025 665.82
/pro/rpttemplate/acct/2.62.1/ap/AP_CHK_REGISTER.xml.rpt2520325
Page 2111/03/2025 1:42:10 PM
Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
MEDICAL EE INSURANCE - NOV 2025 2,752.75
MEDICAL ER INSURANCE - NOV 2025 15,425.67
Total for Check/Tran - 89946:91,175.52
CHK8994710/15/25 MIKE HIPPE9997 INACTIVE REFUND 379.41
CHK8994810/15/25 HP MINNESOTA I, LLC9997 Credit Balance Refund 279.07
CHK8994910/15/25 HUBBARD ELECTRIC5341 REPLACE EXISTING SERVICE - 18299 BOSTON 606.33
REPLACE EXISTING SERVICE - 18299 BOSTON -5.94
REPLACE EXISTING SERVICE - 12891 MISSISS 606.33
REPLACE EXISTING SERVICE - 12891 MISSISS -5.94
REPLACE EXISTING SERVICE - 12903 BOSTON 606.33
REPLACE EXISTING SERVICE - 12903 BOSTON -5.94
Total for Check/Tran - 89949:1,801.17
CHK8995010/15/25 JERRY'S ELECTRIC INC82 TRANSFORMER REPAIRS 18,345.00
TRANSFORMER REPAIRS 31,615.00
Total for Check/Tran - 89950:49,960.00
CHK8995110/15/25 PAULA KONCZAL9997 INACTIVE REFUND 336.34
CHK8995210/15/25 LEE KUPCZYNSKI9997 INACTIVE REFUND 740.09
CHK8995310/15/25 NICHITA LIUBIMOV9997 INACTIVE REFUND 195.59
CHK8995410/15/25 DARCI MADSEN9997 INACTIVE REFUND 211.57
CHK8995510/15/25 DAN MATTSON9997 INACTIVE REFUND 83.84
CHK8995610/15/25 MENARDS145 MISC PARTS & SUPPLIES 151.58
MISC PARTS & SUPPLIES 22.08
Total for Check/Tran - 89956:173.66
CHK8995710/15/25 ALEXA MEYER9997 INACTIVE REFUND 400.96
CHK8995810/15/25 JEFFREY MICHAELSON9997 INACTIVE REFUND 170.86
/pro/rpttemplate/acct/2.62.1/ap/AP_CHK_REGISTER.xml.rpt2520326
Page 2211/03/2025 1:42:10 PM
Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
CHK8995910/15/25 MINNESOTA DEPT OF LABOR & INDUS8454 Dues & Subscriptions 126.88
Dues & Subscriptions 18.12
Total for Check/Tran - 89959:145.00
CHK8996010/15/25 ROBERT MOE9997 INACTIVE REFUND 326.20
CHK8996110/15/25 PREMIER CUSTOM HOMES, INC9997 INACTIVE REFUND 69.23
CHK8996210/15/25 MEGAN RAUBENHEIMER9997 INACTIVE REFUND 293.28
CHK8996310/15/25 REPUBLIC SERVICES, INC574 TRASH & RECYCLING SERVICE - SEPT 2025 139.81
TRASH & RECYCLING SERVICE - SEPT 2025 1,944.70
TRASH & RECYCLING SERVICE - SEPT 2025 59.92
TRASH & RECYCLING SERVICE - SEPT 2025 277.82
TRASH & RECYCLING SERVICE - SEPT 2025 407.66
TRASH & RECYCLING SERVICE - SEPT 2025 72.87
TRASH & RECYCLING SERVICE - SEPT 2025 10.41
Total for Check/Tran - 89963:2,913.19
CHK8996410/15/25 RUM RIVER COUNSELING INC9997 INACTIVE REFUND 257.36
CHK8996510/15/25 GUILLERMO SALDANA9997 INACTIVE REFUND 102.22
CHK8996610/15/25 SFR ACQUISITIONS III, LLC9997 INACTIVE REFUND 200.18
CHK8996710/15/25 AMBER SHENKLE9997 INACTIVE REFUND 1,023.74
CHK8996810/15/25 STUART C. IRBY CO.6107 Mtce of OH Primary 418.50
Mtce of OH Primary 401.76
SQUIRREL GUARD 533.52
Total for Check/Tran - 89968:1,353.78
CHK8996910/15/25 BOB TIMMONS9997 INACTIVE REFUND 155.42
CHK8997010/15/25 UNITED HEALTHCARE SERVICES, INC.5744 CIP REBATE - VFD & CHILLER 19,724.42
CHK8997110/15/25 THAD WALTERS9997 INACTIVE REFUND 151.88
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Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
CHK8997210/15/25 WESCO RECEIVABLES CORP.55 Mtce of OH Primary 656.50
CHK8997310/15/25 EVE XIONG9997 INACTIVE REFUND 191.47
CHK8997410/15/25 JULIE YAKIN9997 INACTIVE REFUND 1,033.20
CHK8997510/23/25 ACE HARDWARE766 SUBSTATION KEYS 25.73
CHK8997610/23/25 ALTERNATIVE TECHNOLOGIES, INC522 OIL SAMPLING 198.00
CHK8997710/23/25 PRAYSHA ALTRINGER9997 INACTIVE REFUND 28.45
CHK8997810/23/25 BENEFIT EXTRAS, INC662 COBRA ADMINISTRATION - SEPT 2025 15.00
CHK8997910/23/25 CITY OF DAYTON5592 FRANCHISE FEE - 2025 QTR 3 2,543.85
CHK8998010/23/25 CITY OF OTSEGO3498 FRANCHISE FEE - 2025 QTR 3 18,505.79
CHK8998110/23/25 CORE & MAIN LP54 TOUCHPAD 180.96
TOUCHPAD -13.21
RUBBER WASHER 40.73
RUBBER WASHER -2.98
Total for Check/Tran - 89981:205.50
CHK8998210/23/25 DIANE DONNELLY9997 INACTIVE REFUND 99.32
CHK8998310/23/25 RONALD EBNER9997 INACTIVE REFUND 19.41
CHK8998410/23/25 ECLIPSE PROPERTIES LLC9997 INACTIVE REFUND 76.37
CHK8998510/23/25 MICHELLE FONKEN9997 INACTIVE REFUND 224.85
CHK8998610/23/25 GREAT RIVER ENERGY53 2025 QTR 3 CONNECTION SERVICES 1,875.00
CHK8998710/23/25 JEFF JOHANSSON9997 INACTIVE REFUND 38.30
CHK8998810/23/25 LESTER WATER WORKS9999 Hydrant Rental Deposit Refund 1,324.64
CHK8998910/23/25 TAMIKA LEWIS9997 INACTIVE REFUND 103.33
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Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
CHK8999010/23/25 MARCO TECHNOLOGIES, LLC8605 PRINTER MTC CONTRACT - 10/1 to 11/1/25 196.66
PRINTER MTC CONTRACT - 10/1 to 11/1/25 49.16
Total for Check/Tran - 89990:245.82
CHK8999110/23/25 ALIVIA MARS9997 INACTIVE REFUND 31.23
CHK8999210/23/25 MENARDS145 CONCRETE MIX 90.62
MISC PARTS & SUPPLIES 5.47
Total for Check/Tran - 89992:96.09
CHK8999310/23/25 MUTUAL OF OMAHA633 ELEC LIFE INSURANCE - NOV 2025 216.81
LIFE,STD & LTD INSURANCE - NOV 2025 2,456.01
ELEC LIFE INSURANCE - NOV 2025 202.94
LIFE,STD & LTD INSURANCE - NOV 2025 622.45
Total for Check/Tran - 89993:3,498.21
CHK8999410/23/25 NORTHWESTERN POWER EQUIP CO IN583 Labor 1,723.87
Repair 645.95
Total for Check/Tran - 89994:2,369.82
CHK8999510/23/25 PLUNKETT'S PEST CONTROL, INC22 PEST CONTROL PROGRAM 1,476.92
PEST CONTROL PROGRAM 210.99
RODENT BAIT STATIONS 117.99
RODENT BAIT STATIONS 16.85
Total for Check/Tran - 89995:1,822.75
CHK8999610/23/25 POPLIN UNDERGROUND DRILLING CO9999 Hydrant Rental Deposit Refund 1,023.66
CHK8999710/23/25 RDO EQUIPMENT CO.3218 PARTS & LABOR FOR UNIT #56 2,893.25
CHK8999810/23/25 TALIA ROMAN9997 INACTIVE REFUND 47.26
CHK8999910/23/25 SPEEDCUTTERS OUTDOOR MAINTENA8141 LAWN MOWING SERVICES - OCT 2025 867.69
LAWN MOWING SERVICES - OCT 2025 2,155.57
Total for Check/Tran - 89999:3,023.26
CHK9000010/23/25 ST LOUIS MRO, INC463 DRUG SCREENING - 202 20.00
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Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
DRUG SCREENING - 202 5.00
Total for Check/Tran - 90000:25.00
CHK9000110/23/25 STUART C. IRBY CO.6107 Tool 158.21
Tool 125.85
Total for Check/Tran - 90001:284.06
CHK9000210/23/25 LEANN STURSA9997 INACTIVE REFUND 66.56
CHK9000310/23/25 TRUCK GEAR USA8611 UNIT #13 BOX 2,028.05
CHK9000410/23/25 CARL TSENG9997 INACTIVE REFUND 6.28
CHK9000510/23/25 VERIFIED CREDENTIALS, LLC8381 BACKGROUND SCREENING - 202 54.00
BACKGROUND SCREENING - 202 13.50
Total for Check/Tran - 90005:67.50
CHK9000610/23/25 VICTORY CLEANING SERVICES783 MONTHLY CLEANING FOR THE PLANT-SEPT 2025 3,114.90
MONTHLY CLEANING FOR THE PLANT-SEPT 2025 444.98
Total for Check/Tran - 90006:3,559.88
CHK9000710/23/25 VIKING ELECTRIC375 REDUCING WASHER -10.39
REDUCING WASHER 142.31
LIMIT SWITCH 220.07
CONDUIT NIPPLE 4.09
Total for Check/Tran - 90007:356.08
CHK9000810/30/25 AT & T MOBILITY4531 iPADS -264.70
iPad 3,279.38
iPad 346.40
iPADS -13.92
iPad 172.60
iPad 18.22
Total for Check/Tran - 90008:3,537.98
CHK9000910/30/25 BATTERIES PLUS BULBS2920 FLOOR SCRUBBER BATTERY 471.86
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Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
FLOOR SCRUBBER BATTERY 67.41
BATTERIES 88.35
Total for Check/Tran - 90009:627.62
CHK9001010/30/25 BAYCOM, INC.8079 Toughbook 416.40
Toughbook 416.40
Total for Check/Tran - 90010:832.80
CHK9001110/30/25 CINTAS28 MATS & TOWELS 529.75
MATS & TOWELS 75.67
MATS & TOWELS 529.75
MATS & TOWELS 75.67
Total for Check/Tran - 90011:1,210.84
CHK9001210/30/25 CRAFTSMAN CUSTOM HOMES INC9997 Credit Balance Refund 195.67
CHK9001310/30/25 CRAFTSMAN CUSTOM HOMES INC9997 Credit Balance Refund 199.57
CHK9001410/30/25 EVERGREEN TOWNHOMES, LLC9997 Credit Balance Refund 65.36
CHK9001510/30/25 EVERGREEN TOWNHOMES, LLC9997 Credit Balance Refund 230.29
CHK9001610/30/25 FERGUSON WATERWORKS #25168247 HYDRANT FLAG 301.20
HYDRANT FLAG -22.00
HYDRANT PARTS 2,480.35
HYDRANT PARTS -200.84
HYDRANT PARTS 270.85
Total for Check/Tran - 90016:2,829.56
CHK9001710/30/25 FS3 INC.8949 LUBRICANT 151.55
PACRITE & ZANRITE - UNIT #56 912.02
Total for Check/Tran - 90017:1,063.57
CHK9001810/30/25 HIERLINGER SHOES5518 EMPLOYEE CLOTHING - 142 BOOTS 256.49
CHK9002010/30/25 HUBBARD ELECTRIC5341 REPLACE EXISTING SERVICE-14346 190TH 618.29
REPLACE EXISTING SERVICE-14346 190TH -6.81
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Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
REPLACE EXISTING SERVICE-13520 96TH 633.56
REPLACE EXISTING SERVICE-13520 96TH -7.92
Total for Check/Tran - 90020:1,237.12
CHK9002110/30/25 L&K TREE & SHRUB, INC9999 Hydrant Rental Deposit Refund 229.55
CHK9002210/30/25 LENNAR HOMES9997 Credit Balance Refund 228.74
CHK9002310/30/25 LENNAR HOMES9997 Credit Balance Refund 198.80
CHK9002410/30/25 LENNAR HOMES9997 Credit Balance Refund 189.44
CHK9002510/30/25 LENNAR HOMES9997 Credit Balance Refund 25.22
CHK9002610/30/25 LGI HOMES, MN9997 Credit Balance Refund 153.40
CHK9002710/30/25 LGI HOMES, MN9997 Credit Balance Refund 38.40
CHK9002810/30/25 LGI HOMES, MN9997 Credit Balance Refund 68.80
CHK9002910/30/25 MARCO TECHNOLOGIES, LLC8605 MICROSOFT 365 - 9/24 to 10/23/25 1,314.18
MICROSOFT 365 - 9/24 to 10/23/25 305.35
Total for Check/Tran - 90029:1,619.53
CHK9003010/30/25 MENARDS145 KNEELING PAD & SHOVEL - UNIT #4 46.35
PAILS 5.37
Total for Check/Tran - 90030:51.72
CHK9003110/30/25 NAPA AUTO PARTS120 SOCKET - UNIT #30 30.19
HOSE CLAMP -15.47
HOSE CLAMP 15.47
Total for Check/Tran - 90031:30.19
CHK9003210/30/25 RDO EQUIPMENT CO.3218 PARTS FOR UNIT #50 -28.60
PARTS FOR UNIT #50 363.98
Total for Check/Tran - 90032:335.38
CHK9003310/30/25 STUART C. IRBY CO.6107 Tools 195.94
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Rev: 202303050106
Accounts Payable
Check Register
Elk River Municipal Utilities
10/01/2025 To 10/31/2025
Bank Account: 5 - GENERAL FUND WITHDRAWALS
Check /
Tran Date
Pmt
Type AmountVendor NameVendor Reference
CHK9003410/30/25 SUMMIT AR822 COMMISSIONS DUE COLLECTION AGENCY 14.51
CHK9003510/30/25 THE UPS STORE 50933360 SHIPPING - SAMPLES 19.72
CHK9003610/30/25 TOWN SQUARE PUBLICATIONS820 ER CHAMBER AD 632.00
ER CHAMBER AD 158.00
Total for Check/Tran - 90036:790.00
CHK9003710/30/25 TRI CAP8523 CIP LOW INCOME - #574235 COLE 1,578.67
CHK9003810/30/25 TWIN CITIES PROMO819 OFFICE SUPPLIES 364.18
OFFICE SUPPLIES 91.05
Total for Check/Tran - 90038:455.23
CHK9003910/30/25 VIKING ELECTRIC375 IVORY SWITCH -29.75
IVORY SWITCH 407.45
MISC PARTS & SUPPLIES 396.06
MISC PARTS & SUPPLIES -28.92
Total for Check/Tran - 90039:744.84
CHK9004010/30/25 WESCO RECEIVABLES CORP.55 3M SPLICE 961.50
CHK9004110/30/25 WRUCK SEWER AND PORTABLE RENT5451 PORTA-POTTY - 9/26 to 10/23/25 4.04
Total for Bank Account - 5 :(261)5,308,741.99
Grand Total :5,325,557.61(262)
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Accounts Payable
Check Register
Elk River Municipal Utilities
PARAMETERS ENTERED:
Check Date:10/01/2025 To 10/31/2025
Bank:All
Vendor:All
Check:
Journal:All
Format:All GL References/Amounts
Extended Reference:No
Check/TransactionSort By:
Voids:None
AllPayment Type:
NoGroup By Payment Type:
Minimum Amount:0.00
Authorization Listing:No
Credit Card Charges:No
/pro/rpttemplate/acct/2.62.1/ap/AP_CHK_REGISTER.xml.rpt2520334
Elk River Municipal Utilities Commission Meeting Minutes
October 14, 2025
Page 1
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE UTILITIES COMMISSION
HELD AT THE UTILITIES CONFERENCE ROOM
October 14, 2025
Members Present: Chair John Dietz, Vice Chair Mary Stewart, Commissioners Jill Larson-Vito,
Matt Westgaard, and Nick Zerwas
ERMU Staff Present: Mark Hanson, General Manager
Sara Youngs, Administrations Director
Melissa Karpinski, Finance Manager
Tony Mauren, Governance & Communications Manager
Tom Geiser, Operations Director
Chris Sumstad, Electric Superintendent
Mike Tietz, Technical Services Superintendent
Dave Ninow, Water Superintendent
Jenny Foss, Communications & Administrative Coordinator
Others Present: Jared Shepherd, Attorney; Cal Portner, City Administrator
1.0 GOVERNANCE
1.1 Call Meeting to Order
The regular meeting of the Utilities Commission was called to order at 3:30 p.m. by Chair Dietz.
1.2 Pledge of Allegiance
The Pledge of Allegiance was recited.
1.3 Consider the Agenda
Moved by Commissioner Westgaard and seconded by Commissioner Larson-Vito to approve
the October 14, 2025, agenda. Motion carried 5-0.
2.0 CONSENT AGENDA (Approved By One Motion)
Moved by Commissioner Zerwas and seconded by Commissioner Stewart to approve the
Consent Agenda as follows:
2.1 Check Register – September 2025
2.2 Regular Meeting Minutes – September 9, 2025
Motion carried 5-0.
35
Elk River Municipal Utilities Commission Meeting Minutes
October 14, 2025
Page 2
3.0 OPEN FORUM
No one appeared for open forum.
4.0 POLICY & COMPLIANCE
4.1 Commission Policy Review – G.4e1 – Customer Accounts
Mr. Mauren presented his memo, reviewing the policy that sets the Commission’s
expectations for the general manager regarding customer accounts, applications, and
account management.
Staff also presented three proposed updates to the policy; correcting a typo, adding
specificity to a procedure, and rewording language around the Cold Weather Rule to avoid
the need for future updates. The Commission agreed with these proposed updates.
Moved by Commissioner Stewart and seconded by Commissioner Zerwas to approve
the staff recommended changes to policy G.4e1 – Customer Accounts. Motion carried
5-0.
5.0 BUSINESS ACTION
5.1 Financial Report – August 2025
Ms. Karpinski presented the August financials, showing the combined electric and water
net position of 5.64% Year to Date (YTD) or approximately $1.973 million.
Chair Dietz asked what accounted for the Water Connection Fees balance being at a
higher level. Mr. Ninow responded that there have been several construction projects,
including a Les Schwab Tire Shop, Vireo Health facility, the second addition of the
Bradford Park development, and an addition at Spectrum High School that contributed to
the total.
Moved by Commissioner Westgaard and seconded by Commissioner Larson-Vito to
receive the August 2025 Financial Report. Motion carried 5-0.
5.2 2026 Annual Business Plan: Electric and Water Expenses
Ms. Karpinski presented a preliminary overview of the 2026 Annual Business Plan: Electric
and Water Expenses for approval at the December meeting. Key items were the following:
• The 2026 budget for electric expenses is a 0.6% increase compared to the current
year’s budget (excluding purchased power). Most notable accounts are the transfer
to City of Elk River (budgeting for a PILOT increase from 4% to 4.5%), depreciation
36
Elk River Municipal Utilities Commission Meeting Minutes
October 14, 2025
Page 3
which is due to large capital projects being put into service, an expected 10%
increase to medical insurance premiums and the addition of Minnesota’s paid leave,
which take effect January 1, 2026. The budgeted Payment in Lieu of Taxes (PILOT)
amount for 2026 is $2.227 million. PILOT is comprised of $1.955 million based off
4.5% of the City of Elk River sales calculation, and $272,000 in donated utilities and
labor.
• The 2026 budget for water expenses is a 3.2% increase compared to the current
year’s budget. Most notable accounts are depreciation which is due to large capital
projects being put into service, dues & subscriptions – fees due to a Minnesota
Department of Health water connection fee increase, medical insurance due to an
expected 10% increase to premiums, and the addition of Minnesota’s paid leave
which takes effect January 1, 2026.
• Both the Electric and Water budgets include a 4% wage adjustment effective on
January 1, 2026. The budgets also account for adding an IT Technician position and
filling the vacant Systems Engineer and Lineworker positions during 2026.
In response to a note that ERMU would be handling tree trimming in house during 2026
rather than contracting the work, Commissioner Stewart asked if staff felt there were
resources available to complete the work that needed to be done. Mr. Gieser explained that
after doing an internal tree trimming audit, staff felt the work could be managed internally.
Ms. Karpinski explained that based on forecasts from ERMU’s power provider, Minnesota
Municipal Power Agency, staff was budgeting for a purchased power increase of about 3%.
She added that there will be a cost of service and rate study presented by Dave Berg at the
November commission meeting. Staff explained that purchased power constitutes about 70%
of the electric budget.
5.3 Payment in Lieu of Taxes to City of Elk River
Mr. Hanson presented the report which provided background on the electric Payment in Lieu
of Taxes (PILOT) program, financial breakdown of its components, and regional comparisons.
The report also showed 5-year cash reserve and funding source projections for the electric
and water departments. The report noted that ERMU’s current payment of 4% of revenue is
below regional medians. It also showed that ERMU’s electricity and labor being donated to
the City equated to an additional 0.62% in PILOT value. Staff proposed two approaches to the
program going forward.
• Option 1 - Raise the PILOT percentage to 4.5% and continue to offer electricity and
labor donations to the City.
• Option 2 - Raise the PILOT percentage to 5% and begin to invoice the City for
electricity and labor.
Staff then brought forward the concept of a PILOT for water service, proposing either
• Option 1 - A payment of 2% of revenue with continued donated contributions.
37
Elk River Municipal Utilities Commission Meeting Minutes
October 14, 2025
Page 4
• Option 2 - A payment of 3% and to begin billing the City for water and
labor/materials.
Mr. Hansons explained that staff was proposing water PILOT rates of 2% to 3% as a discussion
starter after hearing from other municipal utilities in the state with water PILOTs ranging from
1% to 6%.
There was discussion about how ERMU tracks donated water in order to potentially bill the
City in the future. Staff explained that ERMU donates water for firefighting, public ice rink
filling, and street sweeping with all but the latter posing challenges in tracking usage for
billing. Staff stated that in some cases estimates may be required.
Staff noted that increases to the PILOT for both electric and water will directly impact margins
that fund reserves. Staff added that there are large projects planned for 2026 including a new
substation and a large transformer replacement. Staff explained that bonding will be
necessary for future capital projects regardless of any PILOT adjustment.
Staff shared that during preliminary conversations with Dave Berg who is in the process of
developing a cost of service and rate design Study for ERMU, he explained that generally the
Utility’s reserve balances for the water department are about average, whereas electric
reserves are lower than average. The Financial Reserves & Investment Committee was tasked
with reviewing management’s reserve policy and bringing back options for adjustments.
The Commission opted to defer action to the November meeting when there will be a
preliminary presentation on the cost of service and rate design study by Dave Berg
Consulting, LLC. Staff explained that the study is operating off a 4.5% electric PILOT.
Commissioner Zerwas shared his opinion that there is currently a good relationship between
the City, ERMU, and community stakeholders regarding the donation of labor and services. He
explained that reduced cooperation over fees is not a preferable result. ERMU staff and Mr.
Portner described how that working relationship has developed over the years and expressed
a desire for it to continue.
Commissioner Stewart shared her opinion that the electric PILOT calculation should not
include power costs adjustments passed on by ERMU’s power provider during catastrophic
events. The Commission asked staff to craft language that would define the circumstances in
which power cost adjustments are not included in the PILOT calculation.
There was general consensus that both a 5% electric and 3% water PILOT with labor,
electricity, and water usage being invoiced to the City offered the most straightforward and
transparent approach. However, the Commission felt it was best to hold off on a final decision
until the November commission meeting when the preliminary cost-of-service study and the
Financial Reserve policy will be discussed.
38
Elk River Municipal Utilities Commission Meeting Minutes
October 14, 2025
Page 5
5.4 Advanced Metering Infrastructure Update
Mr. Hanson presented his update, saying he was glad to report there were only 14 remaining
residential water meters to exchange and that two residents who were previously actively
holding out on the replacement have either been replaced or were scheduled to be.
Mr. Hanson explained that the exchange effort has been following the timeline provided in
ordinance to ensure ERMU is on good legal standing throughout the project.
Mr. Hanson explained that shut offs for those who have not had their water meters
exchanged were beginning October 22. He added that staff would be staggering shutoffs to
be available for reconnections but will not call out staff after hours for reconnection. There
are to be no shut offs on Fridays.
Chair Dietz asked what types of responses staff had been receiving out in the field from
property owners. Mr. Hanson said responses varied from being receptive and explaining they
were unaware of the project to avoiding staff when they arrive. Mr. Ninow added there have
been a few questioning conversations, but water department staff do a good job defusing the
situation, and customer service staff do an excellent job with de-escalation.
Chair Dietz commended staffs’ efforts on getting the list of remaining meter exchanges down
to 14.
6.0 BUSINESS DISCUSSION
6.1 Staff Updates
On behalf of staff, Mr. Hanson thanked the Commission for providing lunch earlier that day,
prior to an energy safety presentation put on by Connexus Energy at the field services building.
Mr. Gieser explained the Feeder 65 rebuild planned for 2026 will now start in 2025 due to
project schedule changes.
Mr. Mauren highlighted the fact that the November meeting was pushed out from the second
Tuesday to the second Wednesday due to the Veteran’s Day office closure.
6.2 City Council Update
Chair Dietz gave a City Council Update.
6.3 Future Planning
Chair Dietz announced the following:
a. Regular Commission Meeting – November 12, 2025
b. 2025 Governance Agenda
39
Elk River Municipal Utilities Commission Meeting Minutes
October 14, 2025
Page 6
6.5 Other Business
There was no other business.
7.0 ADJOURN REGULAR MEETING
Moved by Commissioner Westgaard and seconded by Commissioner Stewart to adjourn the
regular meeting of the Elk River Municipal Utilities Commission 4:44 p.m. Motion carried 5-0.
Minutes prepared by Tony Mauren.
___________________________________
John J. Dietz, ERMU Commission Chair
___________________________________
Tina Allard, City Clerk
40
______________________________________________________________________________
Page 1 of 1
UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Melissa Karpinski – Finance Manager
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
2.03
SUBJECT:
2025 Third Quarter Utilities Performance Metrics Scorecard Statistics
ACTION REQUESTED:
None
BACKGROUND:
Following the Commission’s adoption of the Performance Metrics program in December 2012
and the latest revision in 2024, we are tracking progress for 2025, to be awarded in 2026. This is
a company performance-based program designed to incentivize employee commitment
towards the company’s success. Divided into categories representing core values of the
company and again into sub-categories that are quantifiable, this program is designed to track
goals that require companywide support from the employees to continually achieve. When the
employees work together as a team to achieve these goals, the company recognizes a
corresponding increase in value to our customers.
DISCUSSION:
At close of the 2025 fiscal year, and completion of the audit, the final score card will be
evaluated and presented to the Commission for awarding the related distribution in 2026. We
will be tracking the progress of the company and the related score card quarterly throughout
2025. The third quarter scorecard is attached, with some notes for the third quarter results.
FINANCIAL IMPACT:
None, until awarded the following year.
ATTACHMENTS:
• Performance Metrics and Incentive Compensation Policy Score Card – 2025 3rd Quarter
41
Elk River Municipal Utilities
G.4g1a - Performance Metrics and Incentive Compensation Policy Scorecard - 2025
Category Percent Sub-Category
Sub-
Percent Goal Score
Awarded
Multiplier
Percent
Water Quality Standards 5 Meet
Requirements met requirement
Lead and Copper quality 5 90th percentile met requirement
Bacteria Detection 5 0 positive
samples 0 on target
CAIDI 5 <120 Min 64 on target
SAIDI 5 <60 Min 19 on target
SAIFI 5 <0.4 0.3 on target
Line Loss 5 <5%3% on target
Water Loss 5 <12%8% on target
Employee Turnover 10 < 7.5%0% on target
Participation in Recommended
and Mandatory Trainings 10 95%99% on target
Margins/Net Profit 15 > Budget on target
Inventory Accuracy 5 >98%100% on target
Clean Energy Choice Program
Participation 5 +30 net +58 on target
Conservation Improvement
Program 5>95%91% off target
Strategic Plan 10 Dashboard Progress (Average) 10 >50%69% on target
1.9%
Adopted December 12, 2012
Revised October 11, 2016
Revised December 17, 2019
Revised December 14, 2021
Revised December 13, 2022
Revised December 12, 2023
Revised December 10, 2024
Communications/
Customer
Service
10
Total Multiplier:
Safety, Reliability
and Quality of
Utility Services
40
Workforce
Development 20
Financial Goals 20
42
______________________________________________________________________________
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Melissa Karpinski – Finance Manager
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
2.04
SUBJECT:
2025 Third Quarter Delinquent Items
ACTION REQUESTED:
Approve the 2025 third quarter delinquent items submitted.
BACKGROUND:
Third quarter delinquent items are presented for your review. We have previously reported on
four different categories of delinquents as follows:
• Assessments are delays in collecting the money owed and is assessed to the
property taxes in the fall. Please note this number will only be presented in the fourth
quarter.
• Collections amounts are those we send to the collection agency to try and collect
after we have exhausted all our internal collection efforts. We receive 70%-75% of
the amounts collected after the agency receives their split, as we have started
placing new accounts with a different agency.
• Revenue Recapture (RR) is the program through the state where funds are collected
from individuals’ tax refunds and remitted to us, with the balance (if any) remitted
to the individual. It presents an opportunity to collect funds rather than splitting
with a collection agency or having to write them off completely. There is a six-year
limit for keeping items on RR and if uncollected at this time, amounts are removed
and written off.
• Write Offs are amounts removed from the books with no further collection efforts
being extended.
DISCUSSION:
I have for review recap comparisons with last year, identifying the categories and amounts for
each quarter and the running totals. Regarding the third quarter totals:
• The amounts listed for assessments culminate in the fourth quarter and include items
previously submitted to other collection services, and if not collected, are removed and
assessed. The assessment amount for 2025 is $0.00 as there has been no activity yet for
this year.
• The amounts submitted only to Collection Agencies for 2025 is $147.98. (Please note
that amounts submitted to Revenue Recapture were also submitted to Collection
Agencies.)
43
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Page 2 of 2
• The amounts submitted to Revenue Recapture were less than the prior year. The Q3
2025 RR amount is $5,614.42. We collected a total of $1,321.75 from RR in Q3 2025.
• Write Offs for Q3 2025 of $2,772.02, which is significantly less than the prior year. The
biggest impact to Write-Offs is due to the removal of old account balances due to a six-
year limit mandated by the state. We have had to remove, and write-off, a total of
$2,743.81 in Q3 2025 due to the statute of limitations.
The attached report shows those dollars submitted to both the Collection Agency and RR. The
third quarter totals are $5,614.42. To break these totals down by provider, it is $5,082.11 for
Electric, $455.27 for Franchise Fees, $39.26 for Sewer, $23.51 for Water, and $14.27 for Storm
Water.
Our allowance for doubtful accounts (a reserve for bad debt/write-offs) is $25,605 or .05%
uncollectible accounts per revenue dollar. According to the American Public Power
Association’s most recent published standard ratios (2021) the industry standard is between
.15% and 1.49%. Interestingly, the Northern/Central Plains average is .15%. Our totals for the
year are below the national average, at .02%.
ATTACHMENTS:
• 2025 Third Quarter Delinquent Items Comparison
• 2025 Third Quarter Delinquent Items Submitted
44
Delinquent Items Comparisons
Year Quarter Assessments
Collection
Agency
Revenue
Recapture
Rev
Recap/Coll
Agen Write-Offs
Rev Recap
Pmts
2021 1 - - 2,600.71 2,600.71 1,362.30 5,875.40
2021 2 - - 3,802.55 3,802.55 1,559.69 1,841.70
2021 3 - - 4,085.99 4,085.99 2,482.70 2,132.85
2021 4 13,572.01 - 6,532.49 6,532.49 1,819.22 2,784.22
2022 1 - - 6,446.46 6,446.46 1,405.27 6,749.22
2022 2 - - 7,547.92 7,547.92 2,402.70 3,648.77
2022 3 - - 15,900.91 15,900.91 4,364.37 2,285.05
2022 4 9,042.25 - 6,796.66 6,796.66 6,008.66 167.94
2023 1 - 520.00 7,160.11 7,680.11 1,961.37 7,179.17
2023 2 - - 5,379.18 5,379.18 22,049.08 3,449.26
2023 3 - - 5,514.33 5,514.33 1,643.54 2,723.58
2023 4 10,994.99 465.14 12,853.33 13,318.47 5,222.43 1,564.65
2024 1 - - 2,879.26 2,879.26 2,962.89 8,955.64
2024 2 - - 5,095.50 5,095.50 4,102.00 3,166.13
2024 3 - - 8,444.30 8,444.30 6,495.34 1,322.98
2024 4 15,379.59 - 9,691.36 9,691.36 2,498.27 258.83
2025 1 - - 3,379.27 3,379.27 3,097.48 10,193.73
2025 2 - 147.98 6,313.45 6,461.43 2,082.66 5,004.02
2025 3 - - 5,614.42 5,614.42 2,772.02 1,321.75
2025 4 -
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
22,500
2021 2022 2023 2024 2025
Quarterly Write-Offs by Year
1
2
3
4
Quarter
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
2021 2022 2023 2024 2025
Quarterly Amts Submitted for
Collection by Year
1
2
3
4
Quarter
45
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
2021 2022 2023 2024 2025
Total Assessments
2021
2022
2023
2024
2025
Year
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
22,500
25,000
27,500
30,000
32,500
2021 2022 2023 2024 2025
Total Write-Offs
2021
2022
2023
2024
2025
Year
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2021 2022 2023 2024 2025
Rev Recap to Write-Off Comparison
Total Submitted to RR Total RR Pmts Total Write-Offs
Values
46
Sum of Total AR Column Labels
Row Labels B
1ERUE 5,082.11
2ERUW 23.51
3CTYS 39.26
6CTYF 455.27
7CTYS 14.27
Grand Total 5,614.42
47
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Sara Youngs – Administrations Director
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
2.05
SUBJECT:
2025 Assessments
ACTION REQUESTED:
Approve 2025 Assessments Listing totaling $32,397.42 to provide to City Council for assessment
on property taxes.
BACKGROUND:
Per State Statute, delinquent services can be assessed to property taxes for water, sewer,
stormwater, trash, and qualifying electric and franchise fee services.
DISCUSSION:
Attached is a listing of proposed assessments for customers with outstanding balances that
remain unpaid for water, sewer, stormwater, trash, and qualifying electric and franchise fee
services. The assessment total for 2025 is $32,397.42. The City Council would need to approve
the assessments and take them to the County for the actual assessment on property taxes. The
City Council will receive this listing for approval at their November 18 meeting, pending our
Commission’s approval.
All services are aggregated together on the listing attachment to show the total per property ID.
The totals per service are reflected at the bottom of the listing. For your reference, the total
assessments in 2025 were $15,379.59.
ATTACHMENTS:
• 2025 Assessments Listing
48
2025 Assessment Listing
Service Address Property ID Total
10021 179TH AVE NW 75-756-0196 232.73
10034 190TH AVE NW 75-847-0425 245.08
10049 189TH AVE NW 75-869-0512 456.13
10113 192ND LN NW 75-761-0130 422.06
10125 TWIN LAKES PKWY NW 75-920-0355 322.97
10135 TWIN LAKES PKWY NW 75-920-0350 822.80
10179 189TH AVE NW 75-866-0530 271.53
1027 4TH ST NW 75-408-0125 373.53
10445 207TH CIR NW 75-715-0120 210.31
10616 175TH AVE NW 75-002-4315 15.05
10726 190TH AVE NW 75-768-0505 76.19
10793 190TH LN NW 75-908-0210 569.45
10812 190TH LN NW 75-908-0115 93.89
10825 185TH CT NW 75-746-0146 979.40
10936 181ST LN NW 75-655-0008 172.96
10955 178TH AVE NW 75-710-0047 53.64
11036 192ND CT NW 75-516-0545 532.76
11049 192ND CIR NW 75-708-0305 197.58
11085 196TH AVE NW 75-589-0340 389.54
11086 196TH LN NW 75-604-0350 194.21
1111 4TH ST NW UPSTAIRS 75-408-0540 268.60
11121 195TH CIR NW 75-658-0125 112.90
11139 190TH AVE NW 75-522-0342 61.74
11160 190TH AVE NW 75-522-0410 292.46
11160 191ST AVE NW 75-516-0475 422.60
11454 190TH LN NW 75-548-0420 98.22
11478 190TH LN NW 75-559-0115 54.04
1175 SCHOOL ST NW 75-133-1115 280.02
1175 SCHOOL ST NW APT 8 75-133-1115 23.75
1179 SCHOOL ST NW 75-133-1115 230.26
1179 SCHOOL ST NW APT 7 75-133-1115 24.68
1179 SCHOOL ST NW APT 8 75-133-1115 28.01
11800 196TH AVE NW 75-872-0120 722.61
11820 196TH AVE NW 75-872-0120 43.92
12434 193RD LN NW 75-650-0310 76.00
12925 RANCH RD NW 75-497-0105 40.94
12950 MEADOWVALE RD NW 75-465-0410 197.82
13104 192 1/2 CT NW 75-573-0148 170.28
13427 190TH AVE NW 75-482-0115 230.64
13690 186TH AVE NW 75-131-1460 182.80
13899 200TH AVE NW 75-502-0315 101.38
14031 185TH AVE NW UNIT B 75-871-0105 26.70
1705 TIPTON CIR NW 75-535-0330 1,356.50
49
2025 Assessment Listing
Service Address Property ID Total
17588 GRANT ST NW 75-691-0626 383.35
17833 TYLER DR NW 75-710-0085 35.11
17915 MACON ST NW 75-609-0225 456.17
17931 GARY ST NW 75-546-0230 183.25
18257 DENVER ST NW 75-491-0530 473.44
18327 TYLER ST NW 75-647-0220 515.00
18530 OGDEN ST NW 75-884-0220 47.39
18537 PASCAL DR NW 75-623-0106 352.39
18575 SALEM ST NW 75-901-0140 166.61
18584 SMITH ST NW 75-723-0304 574.83
18602 SALEM ST NW 75-901-0260 143.54
18603 OGDEN ST NW 75-884-0305 324.95
18610 QUEEN ST NW 75-623-0502 160.88
18646 YANKTON ST NW 75-496-0130 62.48
18692 YANKTON ST NW 75-463-0150 212.71
18731 EDISON ST NW 75-890-0375 525.84
18731 IVANHOE ST NW 75-920-0335 109.21
18736 ALBANY ST NW 75-493-0160 154.62
18784 YANKTON ST NW 75-463-0030 232.32
18811 FILLMORE ST NW 75-905-0245 689.63
18830 SMITH DR NW 75-735-0230 571.66
18938 ZUMBRO ST NW 75-465-0110 653.49
19013 JOHNSON ST NW 75-866-0520 137.18
19019 FILLMORE ST NW 75-866-0215 37.66
19064 IVANHOE ST NW 75-848-0502 469.24
19092 JOHNSON ST NW 75-866-0705 1,654.27
19112 IVANHOE DR NW 75-761-0440 211.57
19141 JOHNSON ST NW 75-839-0225 211.74
19171 JOHNSON ST NW 75-839-0210 58.50
19191 KENT ST NW 75-506-0290 383.84
19262 OGDEN ST NW 75-130-4106 368.46
19336 OXFORD ST NW 75-428-0206 62.38
19575 LOWELL ST NW 75-872-0105 40.25
19646 ZANE CT NW 75-617-0255 585.91
19684 TWIN LAKES RD NW 75-125-2110 420.57
19757 IRVING ST NW 75-503-0480 103.94
20023 ZANE ST NW 75-510-0425 490.94
20211 AUBURN ST NW 75-508-0235 151.70
212 XENIA AVE NW 75-413-0820 145.92
22246 MEADOWVALE RD NW 75-792-0120 468.56
314 BALDWIN AVE NW 75-423-0090 923.39
351 LINE AVE NW 75-423-0050 177.44
374 BALDWIN AVE NW 75-423-0150 733.16
50
2025 Assessment Listing
Service Address Property ID Total
384 BALDWIN AVE NW 75-423-0160 378.54
429 LINE AVE NW 75-134-4116 136.13
544 AUBURN PL NW APT A 75-441-0140 460.05
604 RAILROAD DR NW 75-405-1150 583.32
608 RAILROAD DR NW 75-405-1150 1,004.97
620 6TH ST NW 75-412-0205 204.85
623 JEFFERSON LN NW 75-446-0202 69.17
70 6 1/2 ST NW 75-530-0145 683.96
814 PROCTOR AVE NW 75-133-1100 1,236.21
814 PROCTOR AVE NW APT 3B 75-133-1100 33.96
814 PROCTOR AVE NW APT 3D 75-133-1100 30.79
814 PROCTOR AVE NW APT 3G 75-133-1100 33.96
9833 187TH LN NW 75-890-0245 196.67
9850 221ST AVE NW 75-112-1206 309.35
9961 190TH AVE NW 75-866-0355 491.32
Grand Total $32,397.42
Total Electric and Franchise Assessment $18,588.10
Total Water Assessment $4,936.03
Total Sewer Assessment $4,798.57
Total Trash Assessment $3,331.72
Total Stormwater Assessment $743.00
Grand Total $32,397.42
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Thomas Geiser – Operations Director
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
2.06
SUBJECT:
2026 Wire Bid
ACTION REQUESTED:
Adopt Resolution 25-8 awarding contracts for 2026 Electric Cable Inventory
BACKGROUND/ DISCUSSION:
On November 5, 2025, ERMU held a bid opening for 1/0 primary electric cable. The bid
advertisement explained that both price and delivery times would be factors in determining the
lowest responsible bidder.
• It appears that for 46,750 feet of 1/0 15KV primary URD, TRXLPE, Rural Electric Supply
Cooperative of Moorhead, MN is the lowest responsible bidder with Prysmian TRXLPE at
$151,531.24, complying with the minimum qualifications for price and delivery time.
Staff is asking that the Commission adopt the attached resolution to award contract.
FINANCIAL IMPACT:
This is budgeted within 2026 Capital Projects
ATTACHMENTS:
• Resolution No. 25-8 Awarding Contracts for 2026 Electric Cable Inventory
52
RESOLUTION NO. 25-8
BOARD OF COMMISSIONERS
ELK RIVER MUNICIPAL UTILITIES
A RESOLUTION AWARDING CONTRACTS FOR 2026 ELECTRIC CABLE INVENTORY
WHEREAS, pursuant to an advertisement for bids for Elk River Municipal Utilities 2026
electric cable inventory, bids were received, opened, and tabulated according to State
law, and the following bids were received complying with the advertisements:
46,750 feet of 1/0 15 KV Primary URD, TRXLPE
Contractor Wire
Manufacturer
Total Firm
Price
Total Escalated
Price
Delivery
Border States Southwire - $153,915.68 6 weeks
Border States Prysmian $167,821.28 $159,498.85 23-25 weeks
Resco Prysmian - $151,531.24 18-20 weeks
Wesco CME $173,442.50 $168,767.50 25 weeks
WHEREAS, the advertisement for bids expressly noted that ERMU would consider both
price and promptness of delivery in determining the lowest responsible bidder;
WHEREAS, it appears that for 46,750 feet of 1/0 15 KV Primary URD, TRXLPE, Rural
Electric Supply Cooperative of Moorhead, MN is the lowest responsible bidder for
TRXLPE at $151,531.24, complying with the minimum qualifications for price and
delivery time; and
WHEREAS, Staff recommends awarding the contract for 1/0 15 KV Primary URD, TRXLPE
to Rural Electric Supply Cooperaive of Moorhead, Minnesota.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE BOARD OF COMMISSIONERS OF
ELK RIVER MUNICIPAL UTILITIES, BASED UPON THE FOREGOING RECITALS
INCORPORATED HEREIN, AS FOLLOWS:
1.That the Chair and General Manager are authorized and directed to execute
a contract with Rural Electric Supply Cooperative for the bid of 46,750 feet of
1/0 15 KV Primary URD, TRXLPE, in the amount of $151,531.24.
This Resolution Passed and Adopted this 12th day of November 2025.
53
John J. Dietz, Chair
Mark Hanson, General Manager
54
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Tony Mauren – Governance & Communications Manager
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
2.07
SUBJECT:
Summary of Information Security Committee Closed Session
ACTION REQUESTED:
Chair Stewart to provide a summary of the Information Security Committee
BACKGROUND:
On November 6, 2025, the Information Security Committee held a scheduled meeting. Portions
of this meeting were closed to the public pursuant to Minnesota Statute § 13D.05, subd. 3(d) to
discuss security recommendations regarding ERMU and the City of Elk River’s
telecommunications system, the disclosure of which could compromise public safety and the
electronic security of financial information. State statute requires that the Committee shall then
summarize its conclusions from the closed session at the next public meeting.
DISCUSSION:
Summary from Chair Stewart:
• Committee Members present from ERMU: Chair Mary Stewart, General Manager Mark
Hanson, Administrations Director Sara Youngs, Technical Services Superintendent Mike
Tietz, IT/OT Technician Parker Theisen
• Committee Members present from the City of Elk River: City Council Member J. Brian
Calva, City Administrator Cal Portner, Assistant City Administrator Joe Stremcha, IT
Manager Seth Calvin, IT Specialist Carl Munzke
• Also present: ERMU Governance & Communications Manager Tony Mauren, City of Elk
River Network Specialist Jake Tourville.
The Information Security Committee convened on November 6, 2025, for a regularly scheduled
meeting. The open portion of the meeting consisted of approving the agenda and the previous
meeting minutes. The Committee also voted to appoint IT Specialist Carl Munzke as a
representative of the City.
The Committee then moved into a closed session. In the closed session the group received an
update on security testing, the system’s cloud performance, security information and event
management, and incident response plans.
Mary Stewart
Commission Chair
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Tony Mauren – Governance & Communications Manager
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
4.01
SUBJECT:
Commission Policy Review – G.4e2 – Electric Services
ACTION REQUESTED:
None
BACKGROUND/DISCUSSION:
This month commissioners are reviewing policy G.4e2 – Electric Services to make comments,
ask questions, or recommend updates.
With policy G.4e2, the Commission sets forth its expectations for the General Manager
concerning the provisions of electric services with practical safeguarding of persons, buildings
and their contents from hazards arising from the use of electricity for light, heat, power, radio
and television signaling, and other safeguards to life and property.
Staff is not recommending any updates.
ATTACHMENTS:
• ERMU Policy – G.4e2 – Electric Services
56
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COMMISSION POLICY
Section: Category:
Governance Delegation to Management Policies
Policy Reference: Policy Title:
G.4e2 Electric Services
PURPOSE:
With this policy, the Commission sets forth its expectations for the General Manager concerning the provisions of electric services with practical safeguarding of persons, buildings and their contents from hazards arising from the use of electricity for light, heat, power, radio and television signaling, and other safeguards to life and property. POLICY: Consistent with the Core Customer Services Policy, the ERMU Commission expects the General Manager to ensure that customers receive safe, reliable, cost effective and quality long term electric utility service that directly support ERMU’s core purpose and mission as
stated in the Organizational Core Purpose Policy and Mission Statement Policy. The ERMU Commission expects the General Manager to establish processes, procedures, and management policy which clearly define the terms for providing electric service.
Consistent with this general statement, the General Manager shall: 1. Establish policy and procedures for the provisions of electric services which are compliant with applicable rules, regulations, standards, code, and law including but not limited to the following:
a. ERMU shall operate under the National Electrical Safety Code (NESC). b. All connected electric loads shall be required for their installation to comply with the National Electrical Code (NEC). 2. Establish metering policy and procedures which address, but are not limited to the following:
a. The meter shall be the point of sale (POS). The meter shall be owned and maintained by ERMU. The customer shall be subject to all metering equipment costs as identified in the Commission adopted Fee Schedule. Customers shall be allowed one service and one meter to measure energy consumption and demand, unless otherwise approved by the General Manager or a designee.
57
ERMU Commission Policy – G.4e2 Electric Services ______________________________________________________________________________
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Page 2 of 2
b. Residential customers will be furnished with a meter and secondary service. c. Commercial customers will be furnished with a meter but must supply and own the secondary service wire from the ERMU designated power source.
3. Establish policy regarding the redistribution of energy consistent with the following:
a. All energy sold by ERMU is to be used by the customer for the purposes designated or implied in the Rates Schedule applicable to their installation. Energy so sold may not be resold or redistributed to other metered users unless specifically approved by the General Manager.
4. Establish policy and procedures for customer disputes: a. Consistent with the Dispute Resolution Committee Charter Policy, provide an option for a customer appeal process through the Dispute Resolution Committee for customer issues where resolution requires action not authorized or delegated to management.
POLICY HISTORY: Adopted May 12, 2020
Revised May 14, 2024
58
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Melissa Karpinski – Finance Manager
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
5.01
SUBJECT:
Financial Report – September 2025
ACTION REQUESTED:
Receive the September 2025 Financial Report
DISCUSSION:
Please note that these are the preliminary unaudited financial statements.
Electric
September year to date (YTD) electric kWh sales are up 5% from the prior year. For further
breakdown:
• Residential usage is up 6%
• Small Commercial usage is up 2%
• Large Commercial usage is up 5%
For September 2025, the Electric Department overall is ahead of prior YTD and favorable to
budget YTD. Additional variance analysis can be found on the Summary Electric Statement of
Revenues, Expenses and Changes in Net Position attachment.
Water
September YTD gallons of water sold are up 9% from the prior year. For further breakdown:
• Residential use is up 11%
• Commercial use is up 7%
For September 2025, the Water Department overall is ahead of prior YTD and favorable to
budget YTD. Additional variance analysis can be found on the Summary Water Statement of
Revenues, Expenses and Changes in Net Position attachment.
ATTACHMENTS:
• Balance Sheet
• Electric Balance Sheet
• Water Balance Sheet
• Summary Electric Statement of Revenues, Expenses and Changes in Net Position
• Summary Water Statement of Revenues, Expenses and Changes in Net Position
• Graphs Prior Year and YTD 2024
• Detailed Electric Statement of Revenues, Expenses and Changes in Net Position
59
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Page 2 of 2
• Detailed Water Statement of Revenues, Expenses and Changes in Net Position
• Financial Presentation
60
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
COMBINED BALANCE SHEET
FOR PERIOD ENDING SEPTEMBER 2025
ELECTRIC WATER
ASSETS
CURRENT ASSETS
CASH 6,411,8694,808,882
ACCOUNTS RECEIVABLE 5,293,9242,793,498
INVENTORIES 58,8082,294,289
PREPAID ITEMS 66,257244,419
CONSTRUCTION IN PROGRESS 309,3072,052,982
TOTAL CURRENT ASSETS 12,140,16412,194,070
RESTRICTED ASSETS
BOND RESERVE FUND 01,779,016
EMERGENCY RESERVE FUND 4,292,5917,656,601
UNRESTRICTED RESERVE FUND 00
TOTAL RESTRICTED ASSETS 4,292,5919,435,617
FIXED ASSETS
PRODUCTION 17,217,448795,920
LFG PROJECT 00
TRANSMISSION 02,305,024
DISTRIBUTION 30,869,56155,672,322
GENERAL 1,632,20325,630,632
FIXED ASSETS (COST)49,719,21284,403,897
LESS ACCUMULATED DEPRECIATION (24,949,263)(38,794,731)
TOTAL FIXED ASSETS, NET 24,769,94945,609,166
INTANGIBLE ASSETS
POWER AGENCY MEMBERSHIP BUY-IN 021,546,212
LOSS OF REVENUE INTANGIBLE 07,169,412
LESS ACCUMULATED AMORTIZATION 0(4,675,796)
TOTAL INTANGIBLE ASSETS, NET 024,039,828
OTHER ASSETS AND DEFERRED OUTFLOWS 61,420322,181
TOTAL ASSETS 41,264,12491,600,862
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
ACCOUNTS PAYABLE 403,0985,596,446
SALARIES AND BENEFITS PAYABLE 172,7761,161,041
DUE TO CITY 5,489910,978
DUE TO OTHER FUNDS 00
NOTES PAYABLE-CURRENT PORTION 00
BONDS PAYABLE-CURRENT PORTION 00
UNEARNED REVENUE 490,4434,830
TOTAL CURRENT LIABILITIES 1,071,8067,673,296
LONG TERM LIABILITIES
OPEB LIABILITY 00
LFG PROJECT 00
DUE TO COUNTY 00
DUE TO CITY 00
BONDS PAYABLE, LESS CURRENT PORTION 1,485,30627,165,503
PENSION LIABILITIES 328,9841,708,036
TOTAL LONG TERM LIABILITIES 1,814,29028,873,539
TOTAL LIABILITIES 2,886,09636,546,835
DEFERRED INFLOWS OF RESOURCES 4,689,0861,206,975
FUND EQUITY
CAPITAL ACCOUNT CONST COST 01,779,016
CONTRIBUTED CAPITAL 00
RETAINED EARNINGS 33,451,75849,623,773
NET INCOME (LOSS) (THROUGH PREVIOUS MONTH)237,1842,444,264
TOTAL FUND EQUITY 33,688,94253,847,052
TOTAL LIABILITIES & FUND EQUITY 41,264,12491,600,862
61
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
ELECTRIC BALANCE SHEET
Current Month
Change from
Prior MonthSeptember 30, 2025 August 31, 2025
ASSETS
CURRENT ASSETS
CASH 4,808,882 3,223,829 1,585,052
ACCOUNTS RECEIVABLE 2,793,498 3,848,495 (1,054,997)
INVENTORIES 2,294,289 2,163,407 130,882
PREPAID ITEMS 244,419 221,660 22,758
CONSTRUCTION IN PROGRESS 2,052,982 2,077,790 (24,808)
TOTAL CURRENT ASSETS 12,194,070 11,535,182 658,888
RESTRICTED ASSETS
BOND RESERVE FUND 1,779,016 1,779,016 0
EMERGENCY RESERVE FUND 7,656,601 7,624,536 32,066
TOTAL RESTRICTED ASSETS 9,435,617 9,403,551 32,066
FIXED ASSETS
PRODUCTION 795,920 795,920 0
TRANSMISSION 2,305,024 2,305,024 0
DISTRIBUTION 55,672,322 55,402,721 269,600
GENERAL 25,630,632 25,630,632 0
FIXED ASSETS (COST)84,403,897 84,134,297 269,600
LESS ACCUMULATED DEPRECIATION (38,794,731)(38,561,085)(233,647)
TOTAL FIXED ASSETS, NET 45,609,166 45,573,212 35,954
INTANGIBLE ASSETS
POWER AGENCY MEMBERSHIP BUY-IN 21,546,212 21,546,212 0
LOSS OF REVENUE INTANGIBLE 7,169,412 7,169,412 0
LESS ACCUMULATED AMORTIZATION (4,675,796)(4,620,118)(55,678)
TOTAL INTANGIBLE ASSETS, NET 24,039,828 24,095,506 (55,678)
OTHER ASSETS AND DEFERRED OUTFLOWS 322,181 322,181 0
TOTAL ASSETS 91,600,862 90,929,633 671,229
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
ACCOUNTS PAYABLE 5,596,446 5,562,441 34,005
SALARIES AND BENEFITS PAYABLE 1,161,041 1,091,741 69,301
DUE TO CITY 910,978 854,858 56,120
UNEARNED REVENUE 4,830 6,440 (1,610)
TOTAL CURRENT LIABILITIES 7,673,296 7,515,479 157,816
LONG TERM LIABILITIES
BONDS PAYABLE, LESS CURRENT PORTION 27,165,503 27,170,491 (4,989)
PENSION LIABILITIES 1,708,036 1,708,036 0
TOTAL LONG TERM LIABILITIES 28,873,539 28,878,527 (4,989)
TOTAL LIABILITIES 36,546,835 36,394,007 152,828
DEFERRED INFLOWS OF RESOURCES 1,206,975 1,206,975 0
FUND EQUITY
CAPITAL ACCOUNT CONST COST 1,779,016 1,779,016 0
RETAINED EARNINGS 49,623,773 49,623,773 0
NET INCOME (LOSS) (THROUGH PREVIOUS MONTH)2,444,264 1,925,862 518,401
TOTAL FUND EQUITY 53,847,052 53,328,651 518,401
TOTAL LIABILITIES & FUND EQUITY 91,600,862 90,929,633 671,229
62
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
WATER BALANCE SHEET
Current Month
Change from
Prior MonthSeptember 30, 2025 August 31, 2025
ASSETS
CURRENT ASSETS
CASH 6,411,869 6,014,814 397,055
ACCOUNTS RECEIVABLE 5,293,924 5,354,325 (60,402)
INVENTORIES 58,808 35,436 23,371
PREPAID ITEMS 66,257 59,198 7,059
CONSTRUCTION IN PROGRESS 309,307 248,725 60,583
TOTAL CURRENT ASSETS 12,140,164 11,712,498 427,666
RESTRICTED ASSETS
EMERGENCY RESERVE FUND 4,292,591 4,284,575 8,016
TOTAL RESTRICTED ASSETS 4,292,591 4,284,575 8,016
FIXED ASSETS
PRODUCTION 17,217,448 17,217,448 0
DISTRIBUTION 30,869,561 30,869,561 0
GENERAL 1,632,203 1,632,203 0
FIXED ASSETS (COST)49,719,212 49,719,212 0
LESS ACCUMULATED DEPRECIATION (24,949,263)(24,834,056)(115,207)
TOTAL FIXED ASSETS, NET 24,769,949 24,885,156 (115,207)
INTANGIBLE ASSETS
OTHER ASSETS AND DEFERRED OUTFLOWS 61,420 61,420 0
TOTAL ASSETS 41,264,124 40,943,649 320,475
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
ACCOUNTS PAYABLE 403,098 340,504 62,593
SALARIES AND BENEFITS PAYABLE 172,776 155,565 17,212
DUE TO CITY 5,489 5,080 409
UNEARNED REVENUE 490,443 439,381 51,062
TOTAL CURRENT LIABILITIES 1,071,806 940,530 131,276
LONG TERM LIABILITIES
BONDS PAYABLE, LESS CURRENT PORTION 1,485,306 1,485,861 (554)
PENSION LIABILITIES 328,984 328,984 0
TOTAL LONG TERM LIABILITIES 1,814,290 1,814,845 (554)
TOTAL LIABILITIES 2,886,096 2,755,375 130,722
DEFERRED INFLOWS OF RESOURCES 4,689,086 4,689,086 0
FUND EQUITY
RETAINED EARNINGS 33,451,758 33,451,758 0
NET INCOME (LOSS) (THROUGH PREVIOUS MONTH)237,184 47,430 189,754
TOTAL FUND EQUITY 33,688,942 33,499,188 189,754
TOTAL LIABILITIES & FUND EQUITY 41,264,124 40,943,649 320,475
63
202520252025 YTD 202520242024 YTDVariance YTD Budget ANNUALYTD VARIANCEItemElectricBUDGET VarianceBUDGET3,988,023 31,201,774 30,985,383 216,391 1 41,085,728 3,873,523 28,920,540 2,281,234 8409,429 3,263,329 3,094,404 168,925 5 4,073,730 379,058 2,940,694 322,635 1120,350 170,265 176,292 (6,027) (3) 231,863 18,255 158,034 12,231 826,319 218,282 215,509 2,773 1 281,987 23,926 195,315 22,966 1223,885 212,990 195,750 17,240 9 261,000 21,732 195,497 17,493 9400 3,600 3,6000 0 4,800400 3,6000 04,468,406 35,070,239 34,670,938 399,301 1 45,939,108 4,316,895 32,413,680 2,656,559 833,133 349,232 262,500 86,732 33 350,000 44,810 276,985 72,248 26 (1)36,806 224,692 213,750 10,942 5 285,000 29,770 208,444 16,248 8122,900 294,121 112,500 181,621 161 150,000 11,025 263,407 30,714 12 (2)159,988 1,260,099 735,625 524,474 71 972,500 235,565 1,314,313 (54,214) (4) (3)352,827 2,128,145 1,324,375 803,770 61 1,757,500 321,171 2,063,149 64,996 34,821,233 37,198,384 35,995,313 1,203,072 3 47,696,608 4,638,066 34,476,830 2,721,555 83,055,663 23,985,375 23,774,951 210,424 1 30,599,628 2,824,043 22,576,155 1,409,220 619,854 217,158 250,150 (32,992) (13) 341,000 19,184 195,055 22,103 113,104 27,485 57,000 (29,515) (52) 76,000 2,890 40,857 (13,372) (33) (4)34,212 380,030 391,125 (11,095) (3) 521,500 33,886 341,742 38,288 11206,470 1,398,579 1,607,875 (209,296) (13) 2,144,500 88,733 1,389,092 9,487 1289,325 2,593,857 2,504,664 89,193 4 3,339,552 275,083 2,476,540 117,317 559,983 555,121 555,1200 0 735,069 63,258 583,975 (28,854) (5)4,341 77,127 207,550 (130,423) (63) 482,400 8,963 80,403 (3,276) (4) (5)36,769 313,099 352,500 (39,401) (11) 470,000 40,622 324,467 (11,368) (4)366,967 3,333,284 3,590,971 (257,687) (7) 4,783,849 348,211 3,041,217 292,068 1045,131 438,954 479,850 (40,896) (9) 639,800 88,205 458,982 (20,028) (4)4,121,819 33,320,069 33,771,756 (451,687) (1) 44,133,298 3,793,078 31,508,485 1,811,583 6160,269 1,254,761 1,239,415 15,346 1 1,643,429 155,643 1,163,133 91,629 820,743 179,291 198,750 (19,459) (10) 265,000 19,068 169,487 9,804 6181,012 1,434,052 1,438,165 (4,113) (0) 1,908,429 174,710 1,332,620 101,432 8518,401 2,444,264 785,392 1,658,872 211 1,654,881 670,278 1,635,724 808,539 49Item Variance of +/- $25,000 and +/- 15%(1)YTD budget variance is due to a conservative budget amount. PYTD variance is mainly due to more funds being invested with UBS and change in Fair Market Value.(2)YTD budget variance is due to a large agreement in September and June. (3)(4)(5)ELK RIVER MUNICIPAL UTILITIESELK RIVER, MINNESOTASTATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR PERIOD ENDING SEPTEMBER 20252025 YTD Bud Var% Interest/Dividend Income Rural Big Lake Dayton Public St & Hwy Lighting Other Electric Sales Total Operating RevenueOther Operating Revenue Purchased Power Customer Penalties Connection Fees Misc Revenue Total Other Revenue Total Revenue2024 v. 2025 Actual Var%RevenueOperating Revenue Elk River OtsegoSEPTEMBER YTD SEPTEMBERExpenses Operating & Mtce Expense Transmission Expense Distribution Expense Maintenance Expense Depreciation & Amortization Interest Expense Operating Transfer/Other Funds Other Operating Expense Customer Accounts Expense Administrative Expense General Expense Total Expenses(before Operating Transfers)Operating TransferYTD budget variance is due to loss on disposition of property (disposal of assets) due to timing.YTD budget variance is mainly due to Contributions from Customers having large SOWs for additional service and/or upgrade and transmission investments. Utilities & Labor Donated Total Operating Transfer Net Income Profit(Loss)YTD budget variance is due to labor expense for transmission mtce (engineer position not filled yet).64
202520252025 YTD 202520242024 YTDVariance YTD Budget ANNUALVARIANCEItemWaterBUDGET VarianceBUDGET370,279 2,293,044 2,480,892 (187,847) (8) 3,143,314 332,221 2,076,616 216,428 10370,279 2,293,044 2,480,892 (187,847) (8) 3,143,314 332,221 2,076,616 216,428 109,385 97,594 113,250 (15,656) (14) 151,000 12,724 84,579 13,015 152,764 25,865 21,000 4,865 23 28,000 2,980 18,229 7,636 42102,971 636,284 238,875 397,409 166 318,500 55,970 405,582 230,702 57(1)42,314 116,206 19,700 96,506 490 426,100 1,001 10,394 105,812 1,018(2)157,435 875,949 392,825 483,124 123 923,600 72,675 518,784 357,165 69527,714 3,168,993 2,873,716 295,276 10 4,066,914 404,896 2,595,400 573,593 228,706 94,171 101,250 (7,079) (7) 135,000 8,791 95,514 (1,344) (1)59,070 480,499 504,113 (23,614) (5) 672,150 59,957 455,167 25,332 640,313 366,045 353,075 12,970 4 459,660 28,006 269,825 96,220 36(3)115,207 1,038,555 994,399 44,156 4 1,325,866 100,102 907,200 131,356 142,496 23,978 23,9780 0 31,466 2,712 25,812 (1,833) (7)52 (15,416) 16,563 (31,978) (193) 60,75060963 (16,379) (1,701)(4)10,186 77,140 78,937 (1,797) (2) 105,250 9,028 71,713 5,428 8101,811 864,367 900,928 (36,561) (4) 1,199,700 81,024 736,600 127,768 17(5)70 2,421 9,188 (6,767) (74) 12,250287 2,455(34) (1)337,912 2,931,760 2,982,431 (50,671) (2) 4,002,092 289,968 2,565,247 366,513 144848 1,500 (1,452) (97) 2,0000048 04848 1,500 (1,452) (97) 2,0000048 0189,754 237,184 (110,215) 347,399 315 62,822 114,927 30,153 207,031 687ItemVariance of +/- $15,000 and +/- 15%(1) YTD budget variance is due to connection fees being budgeted conservatively and PYTD variance is due to more WAC fees in 2025.(2) YTD budget variance and PYTD variance is due to 3M settlement and Contributions from Developers.(3)PYTD variance is mainly due to one large watermain repair in 2025 and AMI project (water meter repairs).(4) YTD budget variance and PYTD variance is due AMI (timing).(5)PYTD variance is mainly due to consulting (Cty Rd 44, Power Plant, Scada, Service Line Inventory), Salaries (Comp Study change and COLA), Medical Insurance, Sick Pay (change in accrual), and Legal Fees (PFAS). Net Income Profit(Loss) Total Expenses(before Operating Transfers)Operating Transfer Utilities & Labor Donated Total Operating Transfer Customer Accounts Expense Administrative Expense General Expense Depreciation & Amortization Interest Expense Other Operating ExpenseExpenses Production Expense Pumping Expense Distribution Expense Misc Revenue Total Other Revenue Total RevenueOther Operating Revenue Interest/Dividend Income Customer Penalties Connection FeesRevenueOperating Revenue Water Sales Total Operating RevenueELK RIVER MUNICIPAL UTILITIESELK RIVER, MINNESOTASTATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR PERIOD ENDING SEPTEMBER 20252025 YTD Bud Var%2024 v. 2025 Actual Var%SEPTEMBER YTD SEPTEMBER YTD65
35.0
40.0
45.0
50.0
55.0
60.0
65.0
70.0
75.0
80.0
Demand in MWMonth
Elk River Municipal Utilities Monthly Electrical Demand
2024 2025
15,000
20,000
25,000
30,000
35,000
40,000
Energy Purchases in MWHMonth
Elk River Municipal Utilities Monthly Energy Purchases
2024 2025
66
15,000
20,000
25,000
30,000
35,000
40,000
Electric Load in MWHMonth
Elk River Municipal Utilities Monthly Total Electric Load
2024 2025
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$5,500,000
Sales in DollarsMonth
Elk River Municipal Utilities Monthly Electric Sales
2024 2025
67
-
5,000
10,000
15,000
20,000
25,000
Loads in MWHMonth
Elk River Municipal Utilities Monthly Residential, Commercial & Industrial
Loads
2024 Residential 2025 Residential 2024 Commercial
2025 Commercial 2024 Industrial 2025 Industrial
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Sales in DollarsMonth
Elk River Municipal Utilities Monthly Residential, Commercial & Industrial
Sales
2024 Residential 2025 Residential 2024 Commercial
2025 Commercial 2024 Industrial 2025 Industrial
68
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
Pumpage in Million Gal.Month
Elk River Municipal Utilities Monthly Water Pumpage
2024 2025
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Peak Day in Million Gal.Month
Elk River Municipal Utilities Peak Day Pumpage
2024 2025
69
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
0
20
40
60
80
100
120
140
160
180
Sales In DollarsSales in Million Gal.Month
Elk River Municipal Utilities Monthly Water Sales
2024 MG 2025 MG 2024 $2025 $
70
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR PERIOD ENDING SEPTEMBER 2025
2025
SEPTEMBER
2024
SEPTEMBER
2025
YTD
2024
YTD
2025
YTD
BUDGET
2025 YTD
Bud Var%
2024 v. 2025
Actual Var%
YTD
VARIANCE
2025
ANNUAL
BUDGETElectric
Revenue
Operating Revenue
Elk River
ELECT SALES - ELK RIVER RESID 1,272,399 10,134,3701,273,749 10,712,86510,705,140 0 614,008,158 570,769
ELECT SALES - ELK RIVER NON-D 319,658 2,576,679318,066 2,714,3352,632,704 (3)23,561,584 56,024
ELECT SALES - ELK RIVER DEMA 1,815,849 13,428,2861,872,995 13,867,69114,029,747 1 418,661,634 601,461
PCA SALES REVENUE - ELK RIVE 148,216 885,263162,449 1,170,3521,236,483 6 401,522,421 351,220
PCA SALES REVENUE - ELK RIVE 38,188 242,29941,461 320,080319,636 0 32423,421 77,336
PCA SALES REVENUE - ELK RIVE 279,211 1,653,640319,301 2,200,0572,278,061 4 382,908,507 624,421
3,988,022 31,201,773 30,985,382 3,873,522 28,920,5391 8Total For Elk River:41,085,728 2,281,233
Otsego
ELECT SALES - OTSEGO RESIDEN 141,496 1,149,987153,192 1,179,9481,220,838 3 61,546,756 70,850
ELECT SALES - OTSEGO NON-DEM 50,395 379,57552,385 377,095411,394 9 8499,327 31,818
ELECT SALES - OTSEGO DEMAND 142,969 1,137,680151,873 1,198,9381,239,079 3 91,587,577 101,398
PCA SALES REVENUE - OTSEGO R 16,301 98,80619,434 131,465140,409 7 42168,103 41,603
PCA SALES REVENUE - OTSEGO N 6,164 35,9877,063 36,61352,716 44 4646,753 16,728
PCA SALES REVENUE - OTSEGO D 21,731 138,65625,479 170,343198,891 17 43225,212 60,235
409,429 3,263,328 3,094,404 379,058 2,940,6945 11Total For Otsego:4,073,730 322,634
Rural Big Lake
ELECT SALES - BIG LAKE RESIDE 15,767 142,04417,419 153,464149,416 (3)5199,359 7,372
ELECT SALES - BIG LAKE NON-DE 586 3,3516053,7883,188 (16)(5)4,810 (162)
PCA SALES REVENUE - BIG LAKE 1,834 12,3782,250 16,33817,315 6 4021,666 4,936
PCA SALES REVENUE - BIG LAKE 65 260742,700343 (87)326,026 83
20,350 170,264 176,291 18,254 158,034(3)8Total For Rural Big Lake:231,863 12,230
Dayton
ELECT SALES - DAYTON RESIDEN 18,131 151,34619,828 163,136165,241 1 9212,063 13,894
ELECT SALES - DAYTON NON-DE 3,351 28,6663,553 30,79630,780 0 740,465 2,113
PCA SALES REVENUE - DAYTON R 2,084 12,9082,513 17,07618,781 10 4523,047 5,873
PCA SALES REVENUE - DAYTON 359 2,3944234,5003,478 (23)456,410 1,084
26,318 218,281 215,508 23,926 195,3151 12Total For Dayton:281,986 22,966
Public St & Hwy Lighting
ELECT SALES - SEC LTS 21,732 195,49623,884 195,750212,989 9 9261,000 17,493
23,884 212,989 195,750 21,732 195,4969 9Total For Public St & Hwy Lighting:261,000 17,493
Other Electric Sales
SUB-STATION CREDIT 400 3,6004003,6003,600 0 04,800 0
71
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR PERIOD ENDING SEPTEMBER 2025
2025
SEPTEMBER
2024
SEPTEMBER
2025
YTD
2024
YTD
2025
YTD
BUDGET
2025 YTD
Bud Var%
2024 v. 2025
Actual Var%
YTD
VARIANCE
2025
ANNUAL
BUDGETElectric
400 3,600 3,600 400 3,6000 0Total For Other Electric Sales:4,800 0
Total Operating Revenue
4,316,895 32,413,6804,468,405 34,670,93735,070,238 1 845,939,108 2,656,558
Other Operating Revenue
Interest/Dividend Income
INTEREST & DIVIDEND INCOME 44,810 276,98433,133 262,500349,232 33 26350,000 72,247
33,133 349,232 262,500 44,810 276,98433 26Total For Interest/Dividend Income:350,000 72,247
Customer Penalties
CUSTOMER DELINQUENT PENALT 29,770 208,44436,805 213,750224,692 5 8285,000 16,248
36,805 224,692 213,750 29,770 208,4445 8Total For Customer Penalties:285,000 16,248
Connection Fees
DISCONNECT & RECONNECT CHA 11,025 263,407122,900 112,500294,121 161 12150,000 30,714
122,900 294,121 112,500 11,025 263,407161 12Total For Connection Fees:150,000 30,714
Misc Revenue
MISC ELEC REVENUE - TEMP CHG 0 2,17001,8742,640 41 222,500 470
STREET LIGHT 0 23,40037,000 7,50050,000 567 11410,000 26,600
TRANSMISSION INVESTMENTS 54,448 481,42262,424 450,000529,574 18 10600,000 48,152
MISC NON-UTILITY 47,948 132,6077,924 82,500102,514 24 (23)110,000 (30,093)
GAIN ON DISPOSITION OF PROPER 8,600 8,600025,00022,755 (9)16525,000 14,155
CONTRIBUTIONS FROM CUSTOME 124,568 666,11352,639 168,750552,615 227 (17)225,000 (113,498)
159,987 1,260,099 735,625 235,565 1,314,31371 (4)Total For Misc Revenue:972,500 (54,213)
Total Other Revenue
321,171 2,063,149352,826 1,324,3752,128,145 61 31,757,500 64,996
352,826 2,128,145 1,324,375 321,171 2,063,14961 3Total For Total Other Revenue:1,757,500 64,996
4,638,066 34,476,8294,821,232 35,995,312 Total Revenue 37,198,384 3 847,696,608 2,721,554
Expenses
Purchased Power
PURCHASED POWER 2,309,805 17,404,2052,373,802 18,233,30618,061,605 (1)423,315,290 657,399
ENERGY ADJUSTMENT CLAUSE 514,237 5,171,949681,860 5,541,6445,923,769 7 157,284,337 751,820
3,055,663 23,985,375 23,774,951 2,824,042 22,576,1551 6Total For Purchased Power:30,599,628 1,409,220
Operating & Mtce Expense
OPERATING SUPERVISION 13,288 103,10013,751 112,500120,104 7 16150,000 17,003
DIESEL OIL FUEL 0 1590000 (100)0 (159)
NATURAL GAS 359 12,95137020,40016,953 (17)3130,000 4,001
72
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR PERIOD ENDING SEPTEMBER 2025
2025
SEPTEMBER
2024
SEPTEMBER
2025
YTD
2024
YTD
2025
YTD
BUDGET
2025 YTD
Bud Var%
2024 v. 2025
Actual Var%
YTD
VARIANCE
2025
ANNUAL
BUDGETElectric
ELECTRIC & WATER CONSUMPTI 4,038 41,5154,192 47,50044,127 (7)665,000 2,611
PLANT SUPPLIES & OTHER EXPEN 614 7,21534211,2506,618 (41)(8)15,000 (596)
MISC POWER GENERATION EXPE 0 501167498149 631,000 313
MAINTENANCE OF STRUCTURE -882 9,66541415,0009,205 (39)(5)20,000 (460)
MTCE OF PLANT ENGINES/GENER 0 4,06103,750729 (81)(82)5,000 (3,332)
MTCE OF PLANT/LAND IMPROVE 0 15,88276639,00018,604 (52)1755,000 2,721
19,854 217,158 250,150 19,183 195,054(13)11Total For Operating & Mtce Expense:341,000 22,103
Transmission Expense
TRANSMISSION MTCE AND EXPE 2,889 40,8573,103 56,99927,484 (52)(33)76,000 (13,372)
3,103 27,484 56,999 2,889 40,857(52)(33)Total For Transmission Expense:76,000 (13,372)
Distribution Expense
REMOVE EXISTING SERVICE & M 101 10101,500936 (38)8192,000 834
SCADA EXPENSE 5,049 36,8505,815 45,00047,431 5 2960,000 10,580
TRANSFORMER EXPENSE OH & U 2,147 12,7181,875 18,74912,697 (32)025,000 (20)
MTCE OF SIGNAL SYSTEMS 0 1,0103952,2503,276 46 2243,000 2,265
METER EXPENSE - REMOVE & RE 0 46601,1251,110 (1)1381,500 644
TEMP SERVICE - INSTALL & REM 116 33807,4992,161 (71)53810,000 1,822
MISC DISTRIBUTION EXPENSE 26,470 290,25526,125 315,000312,415 (1)8420,000 22,160
34,212 380,030 391,124 33,885 341,742(3)11Total For Distribution Expense:521,500 38,288
Maintenance Expense
MTCE OF STRUCTURES 7,648 64,1808,203 69,00070,556 2 1092,000 6,375
MTCE OF SUBSTATIONS 146 8,1063,148 33,75010,679 (68)3245,000 2,572
MTCE OF SUBSTATION EQUIPME (6,838)80,926639112,50035,945 (68)(56)150,000 (44,981)
MTCE OF OH LINES/TREE TRIM 1,813 214,225772224,500159,027 (29)(26)300,000 (55,197)
MTCE OF OH LINES/STANDBY 4,392 32,9464,547 37,50033,298 (11)150,000 352
MTCE OF OH PRIMARY 21,689 135,76727,526 142,499140,792 (1)4190,000 5,025
MTCE OF URD PRIMARY 12,119 202,09834,611 225,000259,104 15 28300,000 57,005
LOCATE ELECTRIC LINES 11,695 77,46215,368 93,75088,106 (6)14125,000 10,643
LOCATE FIBER LINES 256 2,1573611,8743,323 77 542,500 1,165
MTCE OF LINE TRANSFORMERS 699 38,02856,454 56,25087,089 55 12975,000 49,061
MTCE OF STREET LIGHTING 9,839 58,7518,744 51,75047,173 (9)(20)69,000 (11,577)
MTCE OF SECURITY LIGHTING 1,144 17,94250018,74912,849 (31)(28)25,000 (5,093)
MTCE OF METERS 5,056 52,0593,778 60,00018,127 (70)(65)80,000 (33,932)
VOLTAGE COMPLAINTS 169 4,61209,0002,913 (68)(37)12,000 (1,698)
SALARIES TRANSMISSION & DIST 2,921 22,9402,839 27,00026,440 (2)1536,000 3,50073
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR PERIOD ENDING SEPTEMBER 2025
2025
SEPTEMBER
2024
SEPTEMBER
2025
YTD
2024
YTD
2025
YTD
BUDGET
2025 YTD
Bud Var%
2024 v. 2025
Actual Var%
YTD
VARIANCE
2025
ANNUAL
BUDGETElectric
ELECTRIC MAPPING 4,566 107,5898,507 116,250113,720 (2)6155,000 6,130
FIBER MAPPING 0 0011,2500 (100)015,000 0
MTCE OF OH SECONDARY 1,966 15,6501,239 17,25023,093 34 4823,000 7,443
MTCE OF URD SECONDARY 4,698 43,4348,278 56,25065,442 16 5175,000 22,007
TRANSPORTATION EXPENSE 4,749 210,21120,949 243,749200,893 (18)(4)325,000 (9,317)
206,469 1,398,578 1,607,875 88,733 1,389,091(13)1Total For Maintenance Expense:2,144,500 9,486
Depreciation & Amortization
DEPRECIATION 219,404 1,975,438233,646 2,003,5612,092,755 4 62,671,415 117,316
AMORTIZATION 55,677 501,10155,677 501,102501,101 0 0668,136 0
289,324 2,593,857 2,504,663 275,082 2,476,5404 5Total For Depreciation & Amortization:3,339,551 117,316
Interest Expense
INTEREST EXPENSE - BONDS 68,246 628,87164,971 600,017600,017 0 (5)794,932 (28,854)
AMORTIZATION OF DEBT DISCOU (4,988)(44,896)(4,988)(44,896)(44,896)0 0(59,863)0
59,982 555,120 555,120 63,257 583,9740 (5)Total For Interest Expense:735,069 (28,854)
Other Operating Expense
EV CHARGING EXPENSE 248 1,9341081,0501,378 31 (29)1,400 (556)
LOSS ON DISPOSITION OF PROP (C 3,886 7,9920160,00015,758 (90)97160,000 7,766
LOSS ON DISPOSITION OF PROP (N 0 00015,437 0 0015,437
OTHER DONATIONS 0 001,500217 (86)02,000 217
MUTUAL AID 0 27,519007,012 0 (75)0 (20,506)
PENSION EXPENSE 0 00000 0259,000 0
INTEREST EXPENSE - METER DEP 4,827 42,9564,232 45,00037,322 (17)(13)60,000 (5,633)
4,340 77,126 207,550 8,962 80,402(63)(4)Total For Other Operating Expense:482,400 (3,275)
Customer Accounts Expense
METER READING EXPENSE 4,507 35,2342,585 26,25024,894 (5)(29)35,000 (10,339)
DISCONNECT/RECONNECT EXPEN 1,679 11,74307,499658 (91)(94)10,000 (11,085)
MISC CUSTOMER ACCOUNTS EXP 33,545 264,75234,086 299,999280,098 (7)6400,000 15,346
BAD DEBT EXPENSE & RECOVER 888 12,7369718,7497,446 (60)(42)25,000 (5,290)
36,769 313,098 352,499 40,622 324,467(11)(4)Total For Customer Accounts Expense:470,000 (11,368)
Administrative Expense
SALARIES OFFICE & COMMISSION 77,832 666,13288,582 813,750734,745 (10)101,085,000 68,612
TEMPORARY STAFFING 0 002,9990 (100)04,000 0
OFFICE SUPPLIES 5,229 66,5057,900 101,25088,214 (13)33135,000 21,708
ELECTRIC & WATER CONSUMPTI 2,480 20,9962,422 24,00019,140 (20)(9)32,000 (1,855)
BANK FEES 207 2,0282192,2502,068 (8)23,000 40
74
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR PERIOD ENDING SEPTEMBER 2025
2025
SEPTEMBER
2024
SEPTEMBER
2025
YTD
2024
YTD
2025
YTD
BUDGET
2025 YTD
Bud Var%
2024 v. 2025
Actual Var%
YTD
VARIANCE
2025
ANNUAL
BUDGETElectric
LEGAL FEES 4,729 19,8483,824 22,50012,688 (44)(36)30,000 (7,160)
AUDITING FEES 1,640 13,9601,720 15,48015,480 0 1120,640 1,520
INSURANCE 15,385 138,96010,584 146,250120,914 (17)(13)195,000 (18,046)
UTILITY SHARE - DEFERRED COM 5,669 97,9555,044 96,37498,781 2 1128,500 825
UTILITY SHARE - MEDICAL/DENT 62,660 667,81062,820 735,779702,848 (4)5942,322 35,037
UTILITY SHARE - PERA 24,285 228,82927,137 241,125248,086 3 8321,500 19,257
UTILITY SHARE - FICA 24,020 223,69426,993 236,625245,195 4 10315,500 21,501
EMPLOYEE SICK PAY 11,395 122,92215,026 153,000209,413 37 70204,000 86,490
EMPLOYEE HOLIDAY PAY 14,812 103,76415,953 113,225110,556 (2)7194,100 6,791
EMPLOYEE VACATION & PTO PA 22,829 260,48625,388 251,909283,533 13 9325,000 23,047
UPMIC DISTRIBUTION 31,639 75,43519,218 64,50059,534 (8)(21)86,000 (15,900)
LONGEVITY PAY 0 2,9201,700 9,9459,945 0 2419,945 7,025
CONSULTING FEES 6,643 40,3076,070 179,25074,656 (58)85239,000 34,348
TELEPHONE (455)22,8782,810 28,50025,463 (11)1138,000 2,585
ADVERTISING 663 9,6401,127 15,00010,680 (29)1120,000 1,040
DUES & SUBSCRIPTIONS - FEES 10,952 92,88215,152 114,006106,311 (7)14152,009 13,429
SCHOOLS & MEETINGS 24,744 155,65226,403 215,000147,240 (32)(5)292,333 (8,411)
MTCE OF GENERAL PLANT & OFFI 845 7,6058658,2507,785 (6)211,000 180
366,966 3,333,284 3,590,970 348,211 3,041,216(7)10Total For Administrative Expense:4,783,849 292,067
General Expense
CIP REBATES - RESIDENTIAL 7,139 65,82417,929 68,06874,538 10 1390,758 8,713
CIP REBATES - COMMERCIAL 54,327 98,271083,99979,762 (5)(19)112,000 (18,509)
CIP - ADMINISTRATION 10,611 143,08510,654 137,223134,620 (2)(6)182,965 (8,464)
CIP - MARKETING 2,956 38,9793,653 38,42638,947 1 051,235 (31)
CIP - LABOR 8,554 74,2928,942 100,36679,161 (21)7133,822 4,868
CIP REBATES - LOW INCOME 0 3,468014,0400 (100)(100)18,720 (3,468)
CIP - LOW INCOME LABOR 711 6,9808607,4997,456 (1)710,000 475
ENVIRONMENTAL COMPLIANCE 3,294 25,3583,024 26,25024,237 (8)(4)35,000 (1,121)
MISC GENERAL EXPENSE 610 2,720663,975230 (94)(92)5,300 (2,490)
45,131 438,954 479,849 88,205 458,982(9)(4)Total For General Expense:639,800 (20,028)
Total Expenses(before Operating Transfers)
3,793,077 31,508,4854,121,819 33,771,75533,320,068 (1)644,133,298 1,811,583
Operating Transfer
Operating Transfer/Other Funds
TRANSFER TO CITY ELK RIVER R 155,642 1,163,132160,269 1,239,4151,254,761 1 81,643,429 91,62875
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR PERIOD ENDING SEPTEMBER 2025
2025
SEPTEMBER
2024
SEPTEMBER
2025
YTD
2024
YTD
2025
YTD
BUDGET
2025 YTD
Bud Var%
2024 v. 2025
Actual Var%
YTD
VARIANCE
2025
ANNUAL
BUDGETElectric
160,269 1,254,761 1,239,415 155,642 1,163,1321 8Total For Operating Transfer/Other Funds:1,643,429 91,628
Utilities & Labor Donated
UTILITIES & LABOR DONATED TO 19,067 169,48720,743 198,749179,290 (10)6265,000 9,803
20,743 179,290 198,749 19,067 169,487(10)6Total For Utilities & Labor Donated:265,000 9,803
Total Operating Transfer
181,012 1,434,051 1,438,165 174,710 1,332,6190 8Total For Total Operating Transfer:1,908,429 101,432
670,278 1,635,724518,401 785,391 Net Income Profit(Loss)2,444,263 211 491,654,880 808,539
76
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR PERIOD ENDING SEPTEMBER 2025
2025
SEPTEMBER
2024
SEPTEMBER
2025
YTD
2024
YTD
2025
YTD
BUDGET
2025 YTD
Bud Var%
2024 v. 2025
Actual Var%
YTD
VARIANCE
2025
ANNUAL
BUDGETWater
Revenue
Operating Revenue
Water Sales
WATER SALES RESIDENTIAL 171,174 1,150,332187,668 1,418,8851,287,839 (9)121,768,457 137,506
WATER SALES COMMERCIAL 106,794 716,716118,695 782,027764,422 (2)71,024,735 47,705
WATER SALES IRRIGATION 54,252 209,56663,914 279,979240,782 (14)15350,120 31,215
370,278 2,293,044 2,480,891 332,220 2,076,615(8)10Total For Water Sales:3,143,313 216,428
Total Operating Revenue
332,220 2,076,615370,278 2,480,8912,293,044 (8)103,143,313 216,428
370,278 2,293,044 2,480,891 332,220 2,076,615(8)10Total For Total Operating Revenue:3,143,313 216,428
Other Operating Revenue
Interest/Dividend Income
INTEREST & DIVIDEND INCOME 12,724 84,0209,385 112,50097,027 (14)15150,000 13,006
OTHER INTEREST/MISC REVENUE 0 5580749566(24)11,000 8
9,385 97,594 113,249 12,724 84,578(14)15Total For Interest/Dividend Income:151,000 13,015
Customer Penalties
CUSTOMER PENALTIES 2,979 18,2292,764 20,99925,864 23 4228,000 7,635
2,764 25,864 20,999 2,979 18,22923 42Total For Customer Penalties:28,000 7,635
Connection Fees
WATER/ACCESS/CONNECTION FE 47,979 363,26494,470 191,250571,412 199 57255,000 208,148
CUSTOMER CONNECTION FEES 4,044 25,6066,417 24,37450,858 109 9932,500 25,251
BULK WATER SALES/HYDRANT R 3,946 16,7102,084 23,24914,013 (40)(16)31,000 (2,697)
102,971 636,284 238,874 55,969 405,581166 57Total For Connection Fees:318,500 230,702
Misc Revenue
MISC NON-UTILITY 25 753074340355 349100264
GAIN ON DISPOSITION OF PROPER 0 008,0000 (100)08,000 0
MISCELLANEOUS REVENUE 0 71641,308 37562,500 16,567 8,61750061,783
HYDRANT MAINTENANCE PROGR 975 9,60097511,2508,775 (22)(9)15,000 (825)
CONTRIBUTIONS FROM DEVELOP 0 00044,590 0 0044,590
WATER TOWER LEASE 0 00000 0327,500 0
LEASE INTEREST REVENUE 0 00000 075,000 0
42,313 116,205 19,700 1,000 10,393490 1,018Total For Misc Revenue:426,100 105,812
Total Other Revenue
72,675 518,783157,435 392,824875,948 123 69923,600 357,164
157,435 875,948 392,824 72,675 518,783123 69Total For Total Other Revenue:923,600 357,164
77
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR PERIOD ENDING SEPTEMBER 2025
2025
SEPTEMBER
2024
SEPTEMBER
2025
YTD
2024
YTD
2025
YTD
BUDGET
2025 YTD
Bud Var%
2024 v. 2025
Actual Var%
YTD
VARIANCE
2025
ANNUAL
BUDGETWater
404,895 2,595,399527,713 2,873,716 Total Revenue 3,168,992 10 224,066,913 573,593
Expenses
Production Expense
MTCE OF STRUCTURES 8,791 95,5148,705 101,25094,170 (7)(1)135,000 (1,343)
8,705 94,170 101,250 8,791 95,514(7)(1)Total For Production Expense:135,000 (1,343)
Pumping Expense
SUPERVISION 6,557 53,0257,292 56,99959,063 4 1176,000 6,037
ELECTRIC & GAS UTILITIES 23,969 196,01626,931 232,499218,846 (6)12310,000 22,830
SAMPLING 977 18,0601,887 18,11218,445 2 224,150 385
CHEMICAL FEED 2,877 30,0014,307 37,50037,056 (1)2450,000 7,054
MTCE OF WELLS 21,621 148,05519,390 150,000139,764 (7)(6)200,000 (8,291)
SCADA - PUMPING 3,954 10,006(738)9,0007,321 (19)(27)12,000 (2,684)
59,070 480,498 504,112 59,956 455,166(5)6Total For Pumping Expense:672,150 25,331
Distribution Expense
MTCE OF WATER MAINS 13,106 73,95216,953 131,249139,585 6 89175,000 65,632
LOCATE WATER LINES 1,325 10,7502,622 15,00022,082 47 10520,000 11,331
MTCE OF WATER SERVICES 0 003750(100)05000
WATER METER SERVICE 5,576 48,8568,357 52,49966,491 27 3670,000 17,635
BACKFLOW DEVICE INSPECTION 1,378 15,5693,332 18,95017,559 (7)1323,160 1,989
MTCE OF CUSTOMERS SERVICE 2,727 24,6553,016 26,25025,415 (3)335,000 760
WATER MAPPING 986 15,23886712,75021,784 71 4317,000 6,545
FIBER MAPPING 0 0011,2500 (100)015,000 0
MTCE OF WATER HYDRANTS - PU 680 19,4462,490 16,49913,891 (16)(29)22,000 (5,555)
MTCE OF WATER HYDRANTS - PR 0 4,1921064,5003,124 (31)(25)6,000 (1,067)
WATER CLOTHING/PPE 0 9,4518611,25011,254 0 1915,000 1,802
WAGES WATER 750 5,7978307,4996,761 (10)1710,000 964
TRANSPORTATION EXPENSE 1,472 15,6571,650 18,00017,711 (2)1324,000 2,054
WATER PERMIT 0 26,255027,00020,382 (25)(22)27,000 (5,873)
40,313 366,044 353,075 28,006 269,8244 36Total For Distribution Expense:459,660 96,219
Depreciation & Amortization
DEPRECIATION 100,101 907,199115,207 994,3991,038,555 4 141,325,865 131,355
115,207 1,038,555 994,399 100,101 907,1994 14Total For Depreciation & Amortization:1,325,865 131,355
Interest Expense
INTEREST EXPENSE - BONDS 3,266 30,7993,050 28,96628,966 0 (6)38,117 (1,833)
78
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR PERIOD ENDING SEPTEMBER 2025
2025
SEPTEMBER
2024
SEPTEMBER
2025
YTD
2024
YTD
2025
YTD
BUDGET
2025 YTD
Bud Var%
2024 v. 2025
Actual Var%
YTD
VARIANCE
2025
ANNUAL
BUDGETWater
AMORTIZATION OF DEBT DISCOU (554)(4,988)(554)(4,988)(4,988)0 0(6,651)0
2,495 23,978 23,978 2,712 25,8110 (7)Total For Interest Expense:31,466 (1,833)
Other Operating Expense
LOSS ON DISPOSITION OF PROP (C 0 0016,0000 (100)016,000 0
LOSS ON DISPOSITION OF PROP (N 0 000(16,271)0 00(16,271)
DAM MAINTENANCE EXPENSE 0 177003880 1190211
PENSION EXPENSE 0 00000 044,000 0
INTEREST EXPENSE - METER DEP 60 78551562467(17)(41)750 (318)
51 (15,415)16,562 60 962(193)(1,701)Total For Other Operating Expense:60,750 (16,378)
Customer Accounts Expense
METER READING EXPENSE 617 3,7465245,2494,602 (12)237,000 856
MISC CUSTOMER ACCOUNTS EXP 8,410 67,9479,661 73,50072,537 (1)798,000 4,590
BAD DEBT EXPENSE & RECOVER 0 1901870(100)(100)250 (19)
10,186 77,140 78,937 9,028 71,712(2)8Total For Customer Accounts Expense:105,250 5,427
Administrative Expense
SALARIES OFFICE & COMMISSION 22,981 194,60125,162 216,000219,421 2 13288,000 24,820
TEMPORARY STAFFING 0 007490(100)01,000 0
OFFICE SUPPLIES 1,584 14,8074,252 22,50023,511 4 5930,000 8,703
ELECTRIC & WATER CONSUMPTI 620 5,2516055,2494,787 (9)(9)7,000 (463)
BANK FEES 51 522545245281 17005
LEGAL FEES 785 3,8779,261 3,75020,277 441 4235,000 16,400
AUDITING FEES 410 4,0364305,0244,416 (12)96,700 379
INSURANCE 3,555 31,5073,502 33,00031,410 (5)044,000 (96)
UTILITY SHARE - DEFERRED COM 899 16,33985318,07416,904 (6)324,100 565
UTILITY SHARE - MEDICAL/DENT 15,545 158,80317,345 208,074179,084 (14)13269,977 20,280
UTILITY SHARE - PERA 4,903 44,0736,120 51,37450,780 (1)1568,500 6,707
UTILITY SHARE - FICA 4,734 43,5705,920 49,50050,381 2 1666,000 6,811
EMPLOYEE SICK PAY 2,641 22,7043,287 26,25037,678 44 6635,000 14,973
EMPLOYEE HOLIDAY PAY 3,126 19,0963,554 24,22223,154 (4)2141,525 4,058
EMPLOYEE VACATION & PTO PA 4,041 47,4944,723 51,27254,193 6 1466,000 6,699
UPMIC DISTRIBUTION 6,274 16,0274,436 13,87512,941 (7)(19)18,500 (3,085)
WELLHEAD PROTECTION 0 001,5300 (100)02,000 0
LONGEVITY PAY 0 7304252,1302,130 0 1922,130 1,400
CONSULTING FEES 1,456 10,5213,059 43,04939,136 (9)27257,400 28,614
TELEPHONE 13 5,2437175,6256,210 10 187,500 96679
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR PERIOD ENDING SEPTEMBER 2025
2025
SEPTEMBER
2024
SEPTEMBER
2025
YTD
2024
YTD
2025
YTD
BUDGET
2025 YTD
Bud Var%
2024 v. 2025
Actual Var%
YTD
VARIANCE
2025
ANNUAL
BUDGETWater
ADVERTISING 87 2,5252813,7506,685 78 1655,000 4,160
DUES & SUBSCRIPTIONS - FEES 1,222 59,9421,836 68,46157,914 (15)(3)89,961 (2,027)
SCHOOLS & MEETINGS 5,877 33,0265,763 44,87520,873 (53)(37)60,956 (12,152)
MTCE OF GENERAL PLANT & OFFI 211 1,8992162,0621,944 (6)22,750 45
101,811 864,367 900,928 81,024 736,599(4)17Total For Administrative Expense:1,199,699 127,767
General Expense
CIP REBATES - RESIDENTIAL 223 82003,750621 (83)(24)5,000 (198)
CIP REBATES - COMMERCIAL 0 003750(100)05000
CIP - MARKETING 0 1,11701,5000 (100)(100)2,000 (1,117)
CIP - LABOR 0 001,8740 (100)02,500 0
ENVIRONMENTAL COMPLIANCE 63 517691,5001,799 20 2472,000 1,281
MISC GENERAL EXPENSE 0 001870(100)02500
69 2,421 9,187 287 2,454(74)(1)Total For General Expense:12,250 (33)
Total Expenses(before Operating Transfers)
289,968 2,565,246337,911 2,982,4302,931,760 (2)144,002,091 366,513
Operating Transfer
Utilities & Labor Donated
WATER & LABOR DONATED TO CI 0 0481,50048 (97)02,000 48
Total Operating Transfer
48 48 1,500 0 0(97)0Total For Total Operating Transfer:2,000 48
114,927 30,152189,753 (110,214) Net Income Profit(Loss)237,184 315 68762,821 207,031
80
______________________________________________________________________________
Page 1 of 1
UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Mark Hanson - General Manager
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
5.02
SUBJECT:
Electric and Water Cost of Service and Rate Design Study
ACTION REQUESTED:
None
BACKGROUND:
ERMU staff have been working with Dave Berg Consulting, LLC to complete electric and water
cost of service and rate design studies. The purpose of this work is to evaluate potential
updates to ERMU’s electric and water retail rates, as well as applicable utility fees. Staff
evaluated changes in operating conditions, including but not limited to monthly fixed costs,
additional service fees, potential changes to the financial reserve policy, and new data from the
advance metering infrastructure (AMI) project related to electric and water usage.
DISCUSSION:
Mr. Berg will review the preliminary findings prior to the final reports, which are scheduled for
discussion and approval at the December commission meeting. This review will replace the
Governance agenda item, Annual Business Plan – Review Proposed 2026 Rates and Other
Revenue.
81
______________________________________________________________________________
Page 1 of 2
UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Mark Hanson - General Manager
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
5.03
SUBJECT:
Payment in Lieu of Taxes to City of Elk River
ACTION REQUESTED:
Approve Revisions to Commission Policy G.2a1 - Payment In Lieu of Taxes (PILOT) and Other
Donations to the City of Elk River
BACKGROUND:
At the October 14, 2025, commission meeting, commission members discussed revisions to
ERMU’s Payment in Lieu of Taxes (PILOT) policy. Commission Policy G.2a1, Payment in Lieu of
Taxes and Other Donations to the City of Elk River outlines the PILOT agreement between the
City Council and the ERMU Commission. The Commission discussed several options for revising
ERMU’s PILOT policy to bring it in line with the national (5.1%), regional (4.8%), and revenue-
based (5.0%) medians presented in the American Public Power Association’s (APPA) May 2024
Public Power Pays Back report, which was included in the October packet. ERMU’s current
revenue transfer is 4.0% plus approximately 0.62% in donated labor, materials, and electricity.
DISCUSSION:
The Commission directed staff to review the following potential revisions to the PILOT policy
and bring back redline updates for review and approval by the Commission.
1) Increase the revenue transfer from 4.0% to 5.0% of the revenue generated by ERMU’s
electric customers within the corporate boundaries of the City of Elk River. Customers
qualifying for the Transmission Transformed Service (TTS) rate will remain exempt from
the revenue transfer. ERMU currently has no TTS customers. For 2026, this would
increase ERMU’s revenue transfer by a projected $434,365 to $2,171,826.
2) Create a revenue transfer exemption for catastrophic events resulting in an increased
energy adjustment clause (EAC) from our power supplier, Minnesota Municipal Power
Agency (MMPA). The 5% revenue transfer would not be paid on the increased EAC. A
catastrophic event would be defined by MMPA’s use of their rate stabilization fund to
offset the impact of the catastrophic event on its members.
3) Institute a revenue transfer of 2% of the revenue generated by ERMU’s water
customers. ERMU currently does not make a water revenue transfer. For 2026, this
would result in a projected revenue transfer of $63,000.
82
______________________________________________________________________________
Page 2 of 2
At the October commission meeting, the Commission discussed a 3% revenue transfer
due, in part, to the expected ability to charge the city for water that was previously
donated. Staff have not been able to determine a consistent means of accurately
capturing the estimated $26,200 in water used by the city for firefighting, ice rinks, and
street sweeping. Consequently, staff recommend starting with a 2% revenue transfer.
4) ERMU shall begin charging the City of Elk River for all electricity for streetlights and
signal lights. These costs are currently donated.
5) ERMU shall continue donating water to the City of Elk River for use by:
a. The Elk River Fire Department (ERFD) for the purpose of extinguishing fires
within the City of Elk River and other cities under contract with the ERFD.
b. The Elk River Parks Department for the purpose of creating ice rinks for public/
non-enterprise use.
c. The Elk River Streets Department for the purpose of street sweeping.
6) ERMU shall begin charging the City of Elk River for labor costs associated with specific
tasks when requested by the City. Examples include, but are not limited to, hanging
banners, maintenance of street lighting and warning sirens, re-lamping of signal lights
and city ball fields, installation of temporary lighting, locating of underground wires,
tree trimming, and dam maintenance. These costs are currently donated.
The projected net change in electric PILOT contribution is an increase of $154,365 ($434,365
revenue transfer increase – $272,000 in electric charges – $8,000 in labor charges). For water,
the projected net increase is $61,680 ($63,000 revenue transfer - $1,320 in labor charges).
The attached redline PILOT policy reflects these changes. A clean policy is also attached.
ATTACHMENTS:
• ERMU Policy - G.2a1 - Payment In Lieu of Taxes (PILOT) and Other Donations to the City
of Elk River (redlined copy)
• ERMU Policy G.2a1 - Payment In Lieu of Taxes (PILOT) and Other Donations to the City of
Elk River (clean copy)
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COMMISSION POLICY
Section: Category:
Governance Governance Policies
Policy Reference: Policy Title:
G.2a1 Payment in Lieu of Taxes and Other
Donations to the City of Elk River
PURPOSE:
The success of ERMU is linked with the success of our community. And the success of our
community is linked with the operation of our city government and ERMU. ERMU was
purchased by the City of Elk River in 1945 and separate governance was created per State
Statute in 1947. Although governed separately, ERMU is still an important component of our
local government and our city services.
It is typical for a municipal utility to provide a Payment in Lieu of Taxes (PILOT) and other
donations to their city, regardless of a separation of governance. Although typical, this
contribution should never inhibit ERMU’s ability to make repayment on debt, cause ERMU to
become non-competitive, or inhibit needed investment in personnel or infrastructure which may
hurt ERMU’s ability to meet the needs of their customers. For these reasons the PILOT and other
donations should be reviewed at least once every five (5) years by the ERMU Commission.
POLICY:
The PILOT and other donations to the City of Elk River shall be as follows:
1. Payment in Lieu of Taxes (PILOT); Electric – The electric PILOT transfer from Elk River
Municipal Utilities to the City of Elk River shall be four five percent (45%) of the revenues
generated by ERMU’s electric customers, except customers qualifying for the Transmission
Transformed Service rate, within the corporate boundaries of the City of Elk River.
For the customers that qualify for the Transmission Transformed Service rate, the PILOT
transfer from ERMU to the City of Elk River shall be four five percent (45%) of the margin
remaining from the evenly split charge per kWh to cover dispatching, billing, and
administrative costs incurred by the wholesale power provider and ERMU.
Should a catastrophic event occur, the five percent (5%) revenue transfer shall not be paid on
the increased energy adjustment clause (EAC) from our power supplier, Minnesota
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ERMU Commission Policy – G.2a1 Payment in Lieu of Taxes and Other Donations to the City
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Municipal Power Agency (MMPA). A catastrophic event shall be defined by MMPA’s use of
their rate stabilization fund to offset the impact of the catastrophic event on its members.
1.2.Payment in Lieu of Taxes (PILOT); Water – The water PILOT transfer from Elk River
Municipal Utilities to the City of Elk River shall be two percent (2%) of the revenues
generated by ERMU’s water customers.
2. Donated Electricity – Elk River Municipal Utilities shall donate all electricity to the City of
Elk River for street lights and signal lights.
3. Donated Water – Elk River Municipal Utilities shall donate water to the City of Elk River:
Ffor use by the Elk River Fire Department (ERFD) for the purpose of extinguishing fires
within the City of Elk River and other cities under contract with the Elk River Fire
DepartmentERFD.
For For the purpose of creating ice rinks for public/ non-enterprise use., ERMU shall
donate water for use by the Elk River Parks Department.
Elk River Municipal Utilities shall donate water Ffor the use by the Elk River Streets
Department for the use purpose of of street sweeping.
3. Donated Labor – Because of specialized skills and equipment, ERMU may be able to provide
a better value to our community by donating labor to the City of Elk River. For example,
ERMU has trained employees and the equipment to hang banners where the City does not.
In this example, ERMU is able to provide this donated service to the City for less cost than a
third party, creating greater value to our community. For such situations, ERMU shall donate
labor to the City of Elk River, as appropriate, where a greater value is created for our
community and where ERMU is not subjected to undue burden.
In addition to hanging banners, other examples include: maintenance of street lighting,
relamping signal lights, locating underground fiber optics and/or other facilities,
administration costs associated with the billing of city franchise fees, installation of
temporary lighting, relamping of city ball field lighting, installation and/or maintenance of
city warning sirens, meter reading for wastewater, assistance with tree trimming, etc…
POLICY HISTORY:
Adopted December 6, 1994
Revised June 6, 2008
Revised July 2, 2013
Revised October 13, 2015
Revised January 1, 2016
Revised October 8, 2019
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ERMU Commission Policy – G.2a1 Payment in Lieu of Taxes and Other Donations to the City
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Revised May 11, 2021
Reviewed October 10, 2023
Revised November 12, 2025
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COMMISSION POLICY
Section: Category:
Governance Governance Policies
Policy Reference: Policy Title:
G.2a1 Payment in Lieu of Taxes and Other
Donations to the City of Elk River
PURPOSE:
The success of ERMU is linked with the success of our community. And the success of our
community is linked with the operation of our city government and ERMU. ERMU was purchased by the City of Elk River in 1945 and separate governance was created per State Statute in 1947. Although governed separately, ERMU is still an important component of our local government and our city services.
It is typical for a municipal utility to provide a Payment in Lieu of Taxes (PILOT) and other donations to their city, regardless of a separation of governance. Although typical, this contribution should never inhibit ERMU’s ability to make repayment on debt, cause ERMU to become non-competitive, or inhibit needed investment in personnel or infrastructure which may
hurt ERMU’s ability to meet the needs of their customers. For these reasons the PILOT and other
donations should be reviewed at least once every five (5) years by the ERMU Commission. POLICY:
The PILOT and other donations to the City of Elk River shall be as follows:
1. Payment in Lieu of Taxes (PILOT); Electric – The electric PILOT transfer from Elk River Municipal Utilities to the City of Elk River shall be five percent (5%) of the revenues generated by ERMU’s electric customers, except customers qualifying for the Transmission
Transformed Service rate, within the corporate boundaries of the City of Elk River.
For the customers that qualify for the Transmission Transformed Service rate, the PILOT transfer from ERMU to the City of Elk River shall be five percent (5%) of the margin remaining from the evenly split charge per kWh to cover dispatching, billing, and
administrative costs incurred by the wholesale power provider and ERMU.
Should a catastrophic event occur, the five percent (5%) revenue transfer shall not be paid on the increased energy adjustment clause (EAC) from our power supplier, Minnesota
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Municipal Power Agency (MMPA). A catastrophic event shall be defined by MMPA’s use of their rate stabilization fund to offset the impact of the catastrophic event on its members. 2. Payment in Lieu of Taxes (PILOT); Water – The water PILOT transfer from Elk River
Municipal Utilities to the City of Elk River shall be two percent (2%) of the revenues generated by ERMU’s water customers. 3. Donated Water – Elk River Municipal Utilities shall donate water to the City of Elk River:
• For the purpose of extinguishing fires within the City of Elk River and other cities under contract with the Elk River Fire Department.
• For the purpose of creating ice rinks for public/non-enterprise use.
• For the purpose of street sweeping. POLICY HISTORY: Adopted December 6, 1994 Revised June 6, 2008 Revised July 2, 2013
Revised October 13, 2015 Revised January 1, 2016 Revised October 8, 2019 Revised May 11, 2021
Reviewed October 10, 2023
Revised November 12, 2025
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Mark Hanson - General Manager
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
5.05
SUBJECT:
ERMU Management Policy – A.10 – Financial Reserves
ACTION REQUESTED:
None
BACKGROUND:
For ERMU there are two utility funds, the Electric Utility and the Water Utility. These funds have
separate reserves. Their reserve balances are classified as either restricted for debt service or
unrestricted designated reserve.
At the October 27, 2025, meeting of the Financial Reserves & Investments Committee (FR&IC),
the Committee reviewed the attached Management Policy – A.10 – Financial Reserves. After
comparing ERMU’s financial reserve policy with those of several similar municipal utilities
(attached), the Committee recommended several updates to ERMU’s policy. These updates are
presented below.
DISCUSSION:
ERMU’s current financial reserves policy for both electric and water defines two types of
reserve layers and associated target levels:
• Restricted for Debt Service: This layer is established to maintain compliance with bond
covenants. The target level for this layer is set at the level specified by bond covenants.
• Unrestricted Designated Reserve: This layer is established to address the short-term
financial variability inherent in operating a municipal utility.
o For electric, the target level is set at the sum of six months operating
expenditures, less depreciation and less purchase power costs, plus the sum of
next year’s total principal and interest payments, plus one month budgeted
average purchase power cost.
o For water, the target level is set at the sum of six months operating expenditures
less depreciation, plus the sum of next year’s total principal and interest
payments.
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After comparing ERMU’s financial reserve balances with those of similar municipal utilities, the
Committee determined our current reserve balance for electric, while meeting the current
targets, is considerably lower than the average of the other utilities reviewed. Similarly, the
current reserve balance for water, while substantially higher than its target levels, is still lower
than the average of the other utilities reviewed. The Committee explored several options for
revising both the identified reserve layers within the policy and the associated target levels.
The Committee recommends adding multiple reserve layers to the current policy. As before,
reserve balances will be classified as either Restricted or Unrestricted Designated. The
recommended layers, and their associated target levels, are outlined below:
Restricted Layers: Target Level:
Debt Service Specified by bond covenants
Trunk/Capacity (Water Only) Water Access Charges and Trunk Funds received will be
restricted to Trunk/Capacity capital projects
Unrestricted Designated Layers: Target Level:
Annual Debt Service Reserve Current year's principal and interest payment due on
outstanding debt
Operating Reserve _____ months* budgeted operating expenses, including
purchased power for electric
Capital Reserve Average of the next five (5) year capital plan in annual
budget
Catastrophic Reserve Estimated replacement cost of a substation (electric
reserves) or water treatment plant (water reserves)
* See attached implementation scenarios
Example implementation scenarios, using the layers/targets shown above, are presented in the
attached table. The FR&IC’s recommendations would increase our financial reserve target
levels. Anticipated reserve shortfalls range from $1,300,000 to $7,000,000 for electric and
$800,000 to $1,300,000 for water, depending on which policy updates are adopted by the
Commission. Addressing these shortfalls in a timely manner may impact rates and margins.
ERMU’s cost of service study consultant, Dave Berg, will be available for questions during the
discussion.
Staff request feedback on desired policy changes. Commission action is not required as A.10 -
Financial Reserves is a management policy. Due to its impact on rate setting, however, staff will
provide the Commission with a revised policy at the December meeting based on the feedback
received at the November meeting.
ATTACHMENTS:
• ERMU Policy - A.10 - Financial Reserves
• Raw Data and Example Implementation Scenarios
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MANAGEMENT POLICY
Section: Category:
Management Administration Policies
Policy Reference: Policy Title:
A.10 Financial Reserves Policy
1.0 Purpose and Summary
In order to maintain stable rates and provide reliable services, Elk River Municipal Utilities
(ERMU) requires financial buffers in the form of reserves to mitigate changes in costs or
operational performance. For ERMU there are two utility funds, the Electric Utility and the
Water Utility. These funds shall have separate reserves. Their reserve balances shall be
classified as either Restricted for Debt Service or Unrestricted Designated Reserve.
The target levels for these reserves shall be determined by the criteria herein. These target
levels and target criteria will be reviewed annually, modified by Utilities Commission to support
the long-term goals of ERMU, and adopted with the annual budget. Unless otherwise specified
by bond covenants, these reserve balances shall be invested consistent with ERMU’s
Management Investment Policy.
2.0 Electric Utility Reserve Classifications
Restricted for Debt Service: This reserve is established to maintain compliance with bond
covenants.
The target level for this reserve shall be set at the level specified by bond covenants.
Unrestricted Designated Reserve: This reserve is established to address the short-term
financial variability inherent in operating an Electric Utility. Potential sources of this variability
include but are not limited to: risks associated with natural disasters, reduction in overall
customer usage, changes in total system load resulting from the actions of large customers,
failure to achieve budgeted levels of net income, changes in cost of purchased power, changes
in interest income, and general operational exposures.
The target level for this reserve shall be set at the sum of 6 months operating expenditures less
depreciation and less purchase power costs, plus the sum of next year’s total principal and
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ERMU Management Policy – A.10 Financial Reserves Policy
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interest payments, plus one month budgeted average purchase power cost. The balance above
this target level shall be unrestricted.
3.0 Water Utility Reserve Classifications
Restricted for Debt Service: This reserve is established to maintain compliance with bond
covenants.
The target level for this reserve shall be set at the level specified by bond covenants.
Unrestricted Designated Reserve: This reserve is established to address the short-term
financial variability inherent in operating a Water Utility. Potential sources of this variability
include but are not limited to: risks associated with natural disasters, reduction in overall
customer usage, changes in total system usage resulting from the actions of large customers,
failure to achieve budgeted levels of net income, changes in interest income, and general
operational exposures.
The target level for this reserve shall be set at the sum of 6 months operating expenditures less
depreciation plus the sum of next year’s total principal and interest payments. The balance
above this target level shall be unrestricted.
4.0 Year-end Reserve Balances
If the year-end reserve balances are above their target levels after the completion of the year-
end audit, these balances shall be unrestricted with a defaulting designation as working capital.
The Utilities Commission shall then consider optimal uses of these unrestricted reserves
through any of the following but not limited to: working capital, designated for power costs
(electric fund only), debt reduction, retention for reserve fund growth for future needs, or use
for rate stabilization or reduction.
If the year-end reserve balances are below their target levels after the completion of the year-
end audit, the Utilities Commission shall consider the balances and plan for their replenishment
to target levels in a timely manner.
POLICY HISTORY:
Adopted May 11, 2010
Revised May 10, 2011
*Moved November 12, 2019
Revised July 14, 2020
*As part of the Policy Manual Initiative, authority of this Financial Reserves Policy was
delegated to management on November 12, 2019, and the policy was moved to the
Management Policy Manual.
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2025-11 – 5.05 – Financial Reserves Policy
Raw Data from Peer Utility Survey
Electric Water Gas Combined
Cash
Operating
Revenue %
Operating
Expense
Cash to
monthly
expense Cash
Operating
Revenue %
Operating
Expense
Cash to
monthly
expense
Operating
Revenue
Operating
Expense
Cash to
Operating
Rev
Cash to
monthly
expense
ERMU $13,014,941 $43,175,102 30% $39,990,898 3.9 $9,961,189 $2,907,113 343% $3,569,544 33.5 50% 6.3
Utility 1 $46,980,105 $58,871,852 80% $51,656,395 10.9 $37,051,175 $6,945,345 533% $7,188,437 61.9 128% 17.1
Utility 2* $25,635,206 $40,282,925 $38,263,718 $6,029,215 $5,247,039 $16,308,008 $15,650,279 41% 5.2
Utility 3 $13,684,979 $48,422,751 28% $44,886,460 3.7 $7,681,009 $5,103,830 150% $4,339,461 21.2 40% 5.2
Utility 4 $13,095,878 $14,545,312 90% $13,328,736 11.8 90% 11.8
Average 66% 8.8 342% 38.9 70% 9.1
* Utility did not provide sufficient detail to differentiate their reserves by service type (electric, water, gas)
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2025-11 – 5.05 – Financial Reserves Policy
Example Implementation Scenarios
Current 3 Months Operating 2 Months Operating 1.5 Months Operating
Electric Water Electric Water Electric Water Electric Water
2024 Y/E Balance $14,793,957 $9,961,189 $14,793,957 $9,961,189 $14,793,957 $9,961,189 $14,793,957 $9,961,189
Restricted WAC/Trunk* N/A N/A - N/A - N/A -
Restricted for Debt
Service** $1,779,016 $0 $1,779,016 - $1,779,016 - $1,779,016 -
Operating*** $9,988,709 $1,423,172 $11,311,701 $991,494 $7,541,134 $660,996 $5,655,851 $495,747
Annual DS $1,784,932 $103,117 $1,784,932 $103,117 $1,784,932 $103,117
Capital $3,400,000 $2,160,000 $3,400,000 $2,160,000 $3,400,000 $2,160,000
Catastrophic $3,500,000 $8,000,000 $3,500,000 $8,000,000 $3,500,000 $8,000,000
Unrestricted $3,026,232 $8,538,017 $0 $0 $0 $0 $0 $0
Total Reserves $14,793,957 $9,961,189 $21,775,649 $11,254,611 $18,005,082 $10,924,113 $16,119,799 $10,758,864
Variance from Current -$6,981,692 -$1,293,422 -$3,211,125 -$962,924 -$1,325,842 -$797,675
*No target, varies annually based on development
**Currently, only Electric has this reserve requirement
***Current reserve policy uses six months less depreciation, one month purchased power, plus annual debt principal and interest
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Mark Hanson - General Manager
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
5.06
SUBJECT:
Commission Policy – 5.A - Margins
ACTION REQUESTED:
Approve Revisions to Commission Policy G.5a – Margins
BACKGROUND:
At the October 27, 2025, meeting of the Financial Reserves & Investments Committee (FR&IC),
the Committee reviewed Management Policy A.10 – Financial Reserves. After comparing
ERMU’s financial reserve policy with those of several similar municipal utilities, the Committee
recommended several updates to ERMU’s policy. Staff will present these recommended
updates to the Commission at the November 2025 commission meeting. Since the proposed
changes to the Financial Reserve policy may impact ERMU’s margins policy, staff also
recommend that Commission Policy – G.5a – Margins be reviewed and updated accordingly.
DISCUSSION:
The policy updates recommended by the FR&IC would increase the financial reserve targets.
Achieving these higher reserve targets will likely require higher margins. Depending on which
financial reserve policy updates are adopted by the Commission, anticipated reserve balance
shortfalls range from $1,300,000 to $7,000,000 for electric and $800,000 to $1,300,000 for
water. Addressing these shortfalls in a timely manner will require higher margins. Accordingly,
staff recommend the use of a cap, or maximum margin, rather than a range. These maximums
should be used for reference only as capital contributions can significantly affect margins.
1. Electric –The budget shall be developed with a maximum margins of 10% of total
revenue.
2. Water –The budget shall be developed with a maximum margins of 15% of total
revenue.
The attached redlined Margins policy reflects these changes. A clean policy is also attached.
ATTACHMENTS:
• G.5a – Margins (redlined copy)
• G.5b – Margins (clean copy)
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COMMISSION POLICY
Section: Category:
Governance Results Policies
Policy Reference: Policy Title:
G.5a Margins
PURPOSE:
Consistent with all Results Policies, the Commission shall establish clear expectations for producing the right results for the right people in the right way. With this policy the Commission affirms their commitment to the Organization Fundamentals Policies prioritizing financial and organization health by setting an annual goal for operational net margins.
The annual strategic and business planning, consistent with the Financial Planning and Budgeting Policy, shall be conducted such that the organization has appropriate operating net margins. By establishing clear expectations for operating net margins through policy, the Commission creates clear and consistent direction for the General Manager.
This clear direction provides stability in organizational vision allowing the General Manager, while developing the annual budget and business plan, to more effectively utilize long range tools, such as multi-ple year capital improvement plans, to produce both short term and long term financial and organizational health. Additionally, this practice helps to avoid inconsistent
direction to the General Manager from year to year such as tight margins one year due to rate
competitiveness concerns and concerns another year about revenues and desiring higher margins.This margins policy should serve as a guide only as extenuating circumstances may require higher margins. POLICY:
To promote financial health and organization stability, the General Manager shall develop the
annual business plan and budgets for the following services as follows:
1. Electric –The budget shall be developed with margins that are a maximum of 10% at least 1.5% of total revenue but no greater than 3.5% of total revenue.
2. Water –The budget shall be developed with margins that are a maximum of 15% at least
1.5% of total revenue but no greater than 3.5% of total revenue.
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ERMU Commission Policy – G.5a Margins
*Margins will also meet requirements set by any bond convenance.
POLICY HISTORY: Adopted October 11, 2022 Revised December 13, 2022 Revised November 12, 2025
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COMMISSION POLICY
Section: Category:
Governance Results Policies
Policy Reference: Policy Title:
G.5a Margins
PURPOSE:
Consistent with all Results Policies, the Commission shall establish clear expectations for producing the right results for the right people in the right way. With this policy the Commission affirms their commitment to the Organization Fundamentals Policies prioritizing financial and organization health by setting an annual goal for net margins.
The annual strategic and business planning, consistent with the Financial Planning and Budgeting Policy, shall be conducted such that the organization has appropriate net margins. By establishing clear expectations for net margins through policy, the Commission creates clear and consistent direction for the General Manager.
This clear direction provides stability in organizational vision allowing the General Manager, while developing the annual budget and business plan, to more effectively utilize long range tools, such as multi-year capital improvement plans, to produce both short term and long term financial and organizational health. This margins policy should serve as a guide only as extenuating
circumstances may require higher margins.
POLICY:
To promote financial health and organization stability, the General Manager shall develop the annual business plan and budgets for the following services as follows: 1. Electric –The budget shall be developed with margins that are a maximum of 10% of total
revenue.
2. Water –The budget shall be developed with margins that are a maximum of 15% of total revenue.
*Margins will also meet requirements set by any bond convenance.
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ERMU Commission Policy – G.5a Margins
POLICY HISTORY:
Adopted October 11, 2022 Revised December 13, 2022 Revised November 12, 2025
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Sara Youngs – Administrations Director
MEETING DATE:
November 12, 2024
AGENDA ITEM NUMBER:
5.07
SUBJECT:
2026 Utilities Fee Schedule
ACTION REQUESTED:
Approve the 2026 Utilities Fee Schedule for Adoption into Ordinance by the City Council
BACKGROUND:
Typically, the Elk River Municipal Utilities Commission approves the budget in December. In
January, the rates and fees are published. Per legal counsel, ERMU’s ability to collect on fees
would be strengthened by having them listed as part of the City’s Master Fee Schedule and
adopted into city ordinance after being approved by the Commission.
DISCUSSION:
ERMU staff conducts an annual review of the proposed fees for the upcoming year. Any
proposed changes are outlined below and in red font on the attached fee schedule.
ELECTRIC FEES
After evaluation of our schedule of rates/aid to construction methodology, staff reviewed our
current 2025 fee schedule to determine any necessary adjustments. Based on the review, staff
is recommending the following changes:
New Electric Connection (standard) – A proposed addition of clarifying language and an
increase from $875 to $900. The amount reflects labor and material cost increases.
New Electric Connection - Non-Standard Loads (i.e. seasonal cabin, RV panel, Billboards,
electric fence, etc.) – A new proposed fee. Non-standard service would be paid 100% of labor
and material cost.
Minimum Temporary Electric Service – Existing Transformer – A proposed removal of the word
“fee” from the description and an increase from $220 to $350. The amount reflects labor and
material cost increases.
Minimum Temporary Electric Service – Without Existing Transformer – A proposed removal
the word “fee” from the description and an increase from $850 to $1,000. The amount reflects
labor and material cost increases.
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Non-Standard Temporary Electric Service - (Additional infrastructure needed to install service
to customer) - Non-standard service would be paid 100% of labor and material cost.
Security Light – Wood Pole with Fixture - A proposed increase from $975 to $1,500. The
amount reflects labor and material cost increases.
Security Light – Existing Pole - A proposed increase from $350 to $600. The amount reflects
labor and material cost increases.
WATER FEES
Hydrant Water Sales – Units (per 1000 gallons) - A proposed increase from $4.20 to the
approved third tier water rate approved at the December commission meeting. The amount
reflects the increase in operational costs, infrastructure maintenance, and water quality
improvements.
FINANCIAL IMPACT:
The proposed fees have been added or adjusted to cover the cost of providing services to our
customers.
ATTACHMENTS:
• Proposed - 2026 Utilities Fee Schedule
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New Residential Electric Connection - Developer - Lot with ERMU water service 975.00$
New Residential Electric Connection - Developer - Lot without ERMU water service 1,475.00$
New Electric Connection - Standard 875.00$ 900.00$ 2.86%
New Electric Connection - Non Standard Loads (i.e seasonal cabin, RV panel, Billboards, electric fence, etc.)100%
New Wire Footages over 200' (per foot)5.00$
New Service Frost Trenching (per foot)6.00$
New Commercial & Industrial Electric Connection 50%
Service Upgrades or Additions for Existing Customers 100%
Minimum Temporary Electric Service Fee - Existing Transformer (standard)220.00$ 350.00$ 59.10%
Minimum Temporary Electric Service Fee - Without Existing Transformer (standard)850.00$ 1,000.00$ 17.65%
Non-Standard Temporary Electric Service - (Additional infrastructure needed to install service to customer)100%
Grid Access Fee 5.56$
Street Light - 30' Decorative Pole with 6' Arm and Cobra Fixture 3,400.00$
Street Light - 23' Decorative Pole with Cobra Fixture 2,400.00$
Street Light - 14' Decorative Pole with Cobra Fixture 5,500.00$
Street Light - 14' Decorative Pole with Acorn Fixture 7,500.00$
Security Light - Wood Pole with Fixture 975.00$ 1,500.00$ 53.85%
Security Light - Existing Pole 350.00$ 600.00$ 71.43%
Pole Attachment Fee (per pole) 15.00$
Meter Installation Fee (per individually metered apartment unit)25.00$
Water Access Charge = Water Connection Charge + Water Availability Charge 3,990.00$
Water Connection Charge (Per Plumbing Unit) - Builder 3,600.00$
Water Availability Charge (Per Plumbing Unit) - Developer 390.00$
Abandoned Water Service (minimum)6,000.00$
Backflow Preventer Device Non-Compliance (per month)$100.00
Deposit for 3/4" Hydrant Meter 175.00$
Deposit for 2 1/2" Hydrant Meter 1,500.00$
Hydrant Water Sales - Rental (per week)50.00$
Hydrant Water Sales - Units (per 1000 gallons)4.20$
Hydrant Wrench 40.00$
Private Hydrant Maintenance Program Monthly Fee 5.00$
Administrative Fee for Continued Submission of Checks After No-Check Notice Given 20.00$
Administrative Fee for Continued Submission of Payment After Account Closed 20.00$
Billable Cost of Materials Markup 15%
Billable Labor Markup 58%
Billable Vehicle / Equipment (per employee per hour)50.00$
Commercial Application Fee 20.00$
Electric Service Disconnect/Trip Fee - Meter Technician 50.00$
Electric Service Disconnect/Trip Fee - Line Crew 150.00$
Water Service Disconnect/Trip Fee - Water Operator 100.00$
Manual Meter Reading Fee (per month)50.00$
Additional Manual Meter Reading Fee (per month) 10.00$
Meter Tampering Fee 250.00$
Meter Testing Fee 50.00$
NSF Fee 30.00$
Penalty Amount 10%
Photocopies (per page)0.25$
Red Tag Handling Fee 20.00$
Proposed Increase
Proposed 2026 Utilities Fee Schedule
ELECTRIC
WATER
ADMINISTRATIVE
Fee Description 2025
Elk River Municipal Utilities
Proposed 2026
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Page 1 of 2
UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Mark Hanson – General Manager
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
5.08
SUBJECT:
Health Insurance Update
ACTION REQUESTED:
Approve the 2026 ERMU health insurance plan renewal and Health Savings Account (HSA)
contribution amounts.
BACKGROUND:
Five years ago, ERMU transitioned to a high-deductible health plan (HDHP) with health savings
account (HSA) eligibility. At that time, the Wage & Benefits Committee established the
following employer contribution structure:
• 85% employer-paid contribution to health insurance premiums.
• Employer-funded HSA contribution equal to 85% of each employee’s deductible.
• The Commission agreed to review the employer HSA contribution annually.
DISCUSSION:
As part of the annual benefits renewal process, our broker solicited proposals from the three
major carriers in the small group market. All carriers are implementing significant rate increases
and plan design changes to offset rising healthcare costs and utilization. The table below shows
a comparison between the three carriers:
Carrier HealthPartners BlueCross/BlueShield Medica
Individual/Family Deductible $2,700/$5,400 $3,050/$6,100 $2,850/$5,700
Out-of-Pocket Maximum $2,700/$5,400 $3,050/$6,100 $3,650/$7,300
Rate Increase 14.87% 11.15% 2.32%
Projected 2026 Budget Impact $153,834.96 $115,361.28 $23,982.72
HealthPartners (Current)
Advantages:
• Lowest deductible and out-of-pocket maximum
• Includes vision and dental coverage for children (ages 0-18)
• No administrative burden to switch carriers
• 25% discount on dental insurance when bundled
Disadvantages:
103
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• Highest premium cost increase
BlueCross/BlueShield
Advantages:
• Mid-range pricing and coverage levels
Disadvantages:
• Higher deductible and out-of-pocket maximum than HealthPartners
• Vision only (no dental) for children
• Administrative time required to implement carrier change
• No dental bundling discount
Medica
Advantages:
• Lowest premium cost
Disadvantages:
• Highest out-of-pocket maximum ($3,650/$7,300)
• Copays on most prescriptions until the out-of-pocket maximum is reached
• Vision only (no dental) for children
• Administrative time required to implement carrier change
• No dental bundling discount
SUMMARY:
Although changing from HealthPartners has some disadvantages, most notably the loss of the
bundling discount, higher deductibles, and the administrative costs of changing carriers, the
overall cost difference between HealthPartners and Medica is significant. Even with losing the
bundling discount and maintaining HSA contributions at 85% of plan deductibles, switching to
Medica saves ERMU approximately $87,000 compared to staying with HealthPartners.
While Medica’s higher deductibles and out-of-pocket maximums represent increased financial
exposure for staff, maintaining the HSA contribution at 85% helps reduce it, making the switch
to Medica a sound financial decision for both ERMU and staff.
Staff recommend the Commission approve the following for 2026:
1. Select Medica as our health insurance carrier
2. No change to ERMU’s employer contribution (remains at 85% of plan premium)
3. No change to ERMU’s HSA contribution (remains at 85% of plan deductibles)
If approved, the anticipated employee monthly premiums for medical coverage would be:
• Individual: $142.00 • Individual+1: $284.00 • Family: $426.00
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Mark Hanson - General Manager
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
5.09
SUBJECT:
Wage & Benefits Committee Proposed 2026 Adjustments
ACTION REQUESTED:
Approve the 2026 Wage and Benefits Adjustments, effective January 1, 2026.
BACKGROUND:
The Wage & Benefits Committee (WBC) met on September 2 and October 27, 2025, to review
possible wage and benefits adjustments for 2026. The agenda included the following items for
discussion:
1. Annual Wage Adjustment
2. Staff presentation of “Ideas and Things to Consider”
At the September 2 meeting, staff made one primary request for 2026: an annual wage
adjustment for all employees equal to the average lineworker adjustment within the seven
“metro average” utilities (Anoka, Chaska, North St. Paul, Shakopee, Great River Energy, Wright
Hennepin Electric, and Connexus Energy).
Additionally, staff provided a document outlining the following ideas for the committee’s future
consideration and potential implementation:
• An increase to the amount of paid sick leave converted to an employee's post-
employment Health Care Savings Plan (HCSP) at retirement
• An increase to the number of on-call hours that are paid while in "standby" mode during
an employee's week of on-call duty
• An increase to the amount of compensatory time ("comp time") an employee could
utilize annually
DISCUSSION:
2026 Wage Adjustment: At the October 27 meeting, the Committee discussed staff's request to
include an additional 0.5% adjustment in addition to the average adjustment for the seven
metro average utilities. The Committee determined that the 0.5% increase should not be
included in ERMU's 2026 wage adjustment calculation because it was associated with one
utility’s market adjustment rather than an annual cost of living adjustment.
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The Committee clarified ERMU's approach to wage adjustments going forward: while the
Committee will continue to track metro average lineworker wages annually (which includes all
adjustments made by comparison utilities), ERMU's metro average wage adjustment
calculation will only factor in annual cost of living adjustments. Market adjustments will not be
included in the metro average wage adjustment calculation. If ERMU lineworker or other
employee wages appear to fall below an acceptable range compared to the market, a separate
market wage adjustment will be studied and brought to the Committee for review.
As of the October 27 meeting, the average cost of living adjustment for the seven metro
average utilities was calculated as 3.41%. Two of the seven utilities required estimated
adjustments based on available information. Staff informed the Committee they anticipate a
wage adjustment range of 3.34% to 3.48% depending on where the final two utilities land. The
Committee supported bringing forward the anticipated range for Commission consideration.
Since the October WBC meeting, however, one of the two previously estimated utilities have
confirmed their 2026 adjustment, lowering the anticipated range to 3.34% to 3.41%
As in past years, the metro average is presented as a data point to inform the Commission's
decision-making. The Commission retains full discretion to set the annual wage adjustment at
any amount it deems appropriate.
Ideas and Things to Consider (informational only): Staff also presented three items for the
Committee's future consideration. The Committee discussed these matters but took no action.
• Paid Sick Leave & Health Care Savings Plan (HCSP) Conversion: Staff requested
consideration for updating the Paid Sick Leave conversion plan to help retiring
employees pay for privatized health insurance and medical expenses. The current plan
converts accrued sick leave to the HCSP at 100% only after an employee reaches 32+
years of service. Staff noted this is a very hard employment goal to achieve, so it hurts
employees who come to ERMU later in their careers.
• Increasing on-call compensation from 14 hours per week to 16 hours per: Staff noted
that utilities with lower overtime hours, such as ERMU, tend to have higher on-call
standby compensation.
• Compensatory Time: Staff raised the topic of comp-time policies, specifically the concept
of rolling hours or increased annual utilization limits. Staff acknowledged that not all
employees share the same perspective on this issue, but noted it remains an area where
some employees feel improvement could be beneficial.
REQUESTED ACTION:
Staff request commission approval of a wage adjustment range of 3.34% to 3.41%. If the metro
average falls outside this range after the remaining utility confirms its adjustment, staff will
bring the wage adjustment recommendation back to the Commission for approval.
ATTACHMENTS:
• Staff’s Asks and Consideration Ideas for 2026 Wage & Benefit Committee Conversation
106
Wage & Benefit Committee Conversation
9/2/2025
Ask:
• Wage - 0.5% (verify actual calculation) recoup from last year with latecomer N. St. Paul
contract differential + Metro Average change adjustment for 2026.
Ideas & Things to Consider – Discussions of Staff:
• Paid Sick Leave & HCSP Conversion – We would appreciate consideration on updating
our Paid Sick Leave Payout plan. This would help employees pay for privatized health
insurance and medical expenses after their years of service at ERMU.
o Anyone that retires from ERMU.
o How much is put in after 960 hours are accrued each year.
o It takes 10 years of no sick time to get to 960 hours. Most are not going to get
there in 10 years. It already has longevity built in for the accrual and conversion
for our HCSP.
• On-Call: This is a discussion that keeps coming up each year. We’ve brought this forward
over the last handful of years at different times. The thought is to move On-Call to 16
hours per week from 14 hours. An additional hour for each weekend day. The structure
of high overtime hours as regular practice seems to be the difference between on-call
standardized time between other organizations. Those with lower OT tend to have
higher on-call standby time.
• Comp-Time: Each year there tends to be some Comp-time talks amongst staff and one
idea is about rolling hours. Not all employees have the same thoughts, but it is an area
that some feel could be improved upon, and conversation or ideas may be helpful.
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Mark Hanson - General Manager
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
5.10
SUBJECT:
Advanced Metering Infrastructure Update (AMI)
ACTION REQUESTED:
None
BACKGROUND:
Following the Advanced Metering Infrastructure discussion and commission direction during
the September 9, 2025, and October 14, 2025, commission meetings, staff took steps to contact
the remaining residential water customers who had not scheduled their water meter
replacement. To ensure consistent communication, all outreach was aligned with Elk River City
Ordinance 78-24, which requires property owners to provide Elk River Municipal Utilities
(ERMU) with access to meters for the purpose of maintenance and replacement.
• On September 15, 2025, certified letters were sent to 75 non-responsive residential
water customers, requiring a response by October 3, 2025, to avoid further action and
possible disconnection for failing to replace their water meter.
• On October 6, 2025, disconnection notices were posted for 54 non-responsive
residential water customers, requiring a response by October 21, 2025, to avoid water
service disconnection for failing to replace their water meter.
• From October 9-17, 2025, water staff visited properties requiring water meter
replacement to locate, and verify access to, water shut off valves. Staff had meters
available for immediate replacement.
• On October 22, staff reviewed the four remaining customers who have not yet replaced
their water meters. Three of these customers were found to have inoperable shut-off
valves. In accordance with city ordinance, a notice was mailed and posted at each
service address. The notice instructed customers to schedule an appointment by
Monday, October 27. If no appointment was scheduled, a contractor would perform the
necessary repairs at the owner’s expense to enable ERMU staff to shut off the water at
the valve.
DISCUSSION:
As of October 29, 2025, all residential water meters have been replaced or retrofitted, totaling
5,204 meters during the AMI project. ERMU and our plumbing contractor, Archer Plumbing, are
currently working with the remaining seven commercial customers on water meter exchanges,
with 528 commercial meters replaced or retrofitted to date.
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In April 2024, the Commission voted to absorb residential repair costs estimated at $300 per
job for approximately 100–150 homes, totaling $30,000–$45,000. Actual residential repair costs
totaled $44,333.75. One commercial repair totaled $16,050, bringing total repair costs to
$60,383.75.
The final list of Opt-Out customers, now referred to as manual meter read customers, includes
four electric customers, two of whom also have water. Their meters have been exchanged but
the radios have been turned off.
Delivery of electric polyphase meters is expected later this year. Once received, staff will begin
replacing electric meters as time permits. Staff anticipate it will take approximately six months
to install the meters once received.
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Mark Hanson - General Manager
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
5.11
SUBJECT:
Verizon Water Tower Lease Agreements
ACTION REQUESTED:
None
BACKGROUND:
ERMU currently has four water tower attachment lease agreements with Verizon Wireless, LLC,
one on each of the four water towers. Two were executed in 2014 (Gary and Johnson towers),
one in 2016 (Auburn tower), and one in 2020 (Freeport tower). Each lease agreement had an
initial five-year term with four additional five-year renewal periods. All four lease agreements
started with first-year lease amounts of $30,000. The first three lease agreements include an
annual escalator of 4%. Freeport tower has a 2% escalator with a provision that if Verizon
removes their equipment from any of the other three towers the annual rent amount for the
Freeport tower shall increase by 20% of the then current lease amount.
DISCUSSION:
Staff have received multiple requests from Verizon representatives to either buy out our
current lease agreements for a lump sum amount or renegotiate the current lease terms to
lower both the annual rent payment and the annual escalator. The lump sum offer is also
contingent on granting a perpetual easement on the property (no end date).
Verizon states they are offering these options in lieu of potentially terminating the existing
lease agreements. According to Verizon, their current lease agreement costs on a national level
are not sustainable. The following table presents Verizon’s offers to date (no offer has been
made for the Freeport tower):
Tower Current
Lease Terms Expires Future
Payments
Lump
Sum Offer
New Lease
Terms Expires Future
Payments
Auburn $30,000/year
4% / year 2041 $1,106,346 $700,000 $30,000/year
15% / 5 years 2050 $1,011,357
Gary $30,000/year
4% / year 2039 $798,603 $900,000 $33,600/year
15% / 5 years 2041 $583,380
Johnson $30,000/year
4% / year 2039 $798,603 $745,000 $30,000/year
3% / year 2056 $1,427,262
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While the lump sum offer may appear attractive, granting a perpetual easement on the
property poses significant long-term risks due to the many unknowns that the future may bring.
Most importantly, the water towers are distribution system assets, so granting a perpetual
easement, which may limit future options, is very dangerous.
Similarly, it is unwise to renegotiate any of the current lease agreements since the proposed
terms offer a lower escalator and a lower annual rent. To illustrate this point, the table below
lists the reduction in revenue if the proposed lease terms were used throughout the remainder
of the current lease periods. Additionally, while the longer duration of the proposed terms may
seem promising, there is nothing preventing Verizon from requesting additional reductions to
the lease agreements at some point in the future.
Tower Expires Existing Lease
Future Payments
Proposed Lease
Future Payments
Reduction in
Revenue
Auburn 2041 $1,106,346 $566,501 $539,845
Gary 2039 $798,603 $494,508 $304,095
Johnson 2039 $798,603 $468,534 $330,069
Staff are presenting Verizon’s offers to maintain transparency with the Commission and our
customers but recommend against accepting them. If the Commission is interested in pursuing
any of Verizon’s offers, staff will engage with Verizon in pursuit of the desired option(s). The
results of any negotiated terms would be presented at a future commission meeting.
ATTACHMENTS:
• Verizon’s offer for Auburn Street Tower, Site ID 162187
• Verizon’s offer for Gary Street Tower, Site ID 123107
• Verizon’s offer for Johnson Street Tower, Site ID 123332
111
October 31, 2025
Elk River Municipal Utilities
13069 Orono Parkway
Elk River, MN 55330
Attn: Mark Hanson
Site Name: Min Millennium Site ID: 162187
Dear Mark,,
I am following up with you regarding our recent telephone conversation setting forth Verizon
Wireless’s Lease Optimization Program. As discussed during our conversation, Verizon Wireless is
interested in making certain modifications to the cell site lease regarding the Verizon Wireless
communications facility on your property. These lease modifications will allow the cell site on your property
to better meet Verizon Wireless’s current operational needs and enhance its long-term value to the overall
network.
Criteria for Cell Site Retention
As we discussed, Verizon Wireless would like to include this site in its long-term portfolio under the
following terms:
● New Rent Amount: $2,500.00 per month, commencing on (1/1/2026)
● New Rent Escalator: Fifteen Percent (15%) every 5 years (next increase on 1/1/2031)
● Additional Renewal Terms: Four (4) additional five (5) year renewal terms
● Lump Sum Payment Option: Provide a one-time lump sum payment of $700,000.00. In
return, you will grant a perpetual easement on your property.
The foregoing proposal does not constitute a binding offer to amend the lease. No legal obligation
is created by this letter or any other written or oral communications until a written amendment to the lease
has been signed by both Landlord and Verizon Wireless. Verizon Wireless will continue to abide by the
terms of the current lease until an amendment has been executed or the existing lease has been terminated
or expires. Verizon Wireless values its affiliation with you and hopes that you choose to secure your site(s)
to continue a long and mutually profitable relationship in the years to come. After having reviewed this
proposal, please contact me prior to November 12, 2025.
Sincerely,
Lynne Rush
Lease Consultant
Lease Optimization - CENREV
112
O +1 (469) 4219101
180 Washington Valley Road, Bedminster, NJ 07921
113
October 10, 2025
Elk River Municipal Utilities
13069 Orono Parkway
PO Box 430
Elk River, WI 55330
Attn: Mark Hanson
Site Name: Min Chewbacca Site ID: 123107
Dear Mark,
I am following up with you regarding our recent telephone conversation setting forth Verizon
Wireless’s Lease Optimization Program. As discussed during our conversation, Verizon Wireless is
interested in making certain modifications to the cell site lease regarding the Verizon Wireless
communications facility on your property. These lease modifications will allow the cell site on your property
to better meet Verizon Wireless’s current operational needs and enhance its long-term value to the overall
network.Criteria for Cell Site Retention
As we discussed, Verizon Wireless would like to include this site in its long-term portfolio under the
following terms:
● New Rent Amount: $2,800.00 per month, commencing on (6/1/2026)
● New Rent Escalator: Fifteen Percent (15%) every 5 years (next increase on 6/1/2031)
● Additional Renewal Terms: Two (2) additional five (5) year renewal terms
● Lump Sum Payment Option: Provide a one-time lump sum payment of $900,000.00. In
return, you will grant a perpetual easement on your property.
The foregoing proposal does not constitute a binding offer to amend the lease. No legal obligation
is created by this letter or any other written or oral communications until a written amendment to the lease
has been signed by both Landlord and Verizon Wireless. Verizon Wireless will continue to abide by the
terms of the current lease until an amendment has been executed or the existing lease has been terminated
or expires. Verizon Wireless values its affiliation with you and hopes that you choose to secure your site(s)
to continue a long and mutually profitable relationship in the years to come. After having reviewed this
proposal, please contact me prior to October 20, 2025.
Sincerely,
Lynne Rush
Lease Consultant
Lease Optimization - CENREV
O +1 (469) 4219101
114
180 Washington Valley Road, Bedminster, NJ 07921
115
October 7, 2025
Elk River Municipal Utilities
Site Name: Min Vieths Site ID: 123332
Dear Landlord,
I am following up with you regarding our recent telephone conversation setting forth Verizon
Wireless’s Lease Optimization Program. As discussed during our conversation, Verizon Wireless is
interested in making certain modifications to the cell site lease regarding the Verizon Wireless
communications facility on your property. These lease modifications will allow the cell site on your property
to better meet Verizon Wireless’s current operational needs and enhance its long-term value to the overall
network.
Criteria for Cell Site Retention
As we discussed, Verizon Wireless would like to include this site in its long-term portfolio under the
following terms:
● New Rent Amount: $30,000.00 per year, commencing on (8/1/2026)
● New Rent Escalator: Three Percent (3%) every year (next increase on 8/1/2027)
● Additional Renewal Terms: Five (5) additional five (5) year renewal terms
● Lump Sum Payment Option: Provide a one-time lump sum payment of $745,000.00. In
return, you will grant a perpetual easement on your property.
Additionally, in order to maintain long-term operational flexibility, Verizon Wireless requires that the
following language, substantially in the form of the following, be added to the Lease:
Right of First Refusal. Notwithstanding anything contained in the [Lease] to the contrary, if at any time after the Effective Date,
[LESSOR] receives an offer or letter of intent, from any person or entity that is in the business of owning, managing or operating
communications facilities or is in the business of acquiring landlord interests in agreements relating to communications facilities, to
purchase fee title, an easement, a lease, a license, or any other interest in the [Property] or any portion thereof or to acquire any
interest in the [Lease], or an option for any of the foregoing, [LESSOR] shall provide written notice to [LESSEE] of said offer
(“[LESSOR]’s Notice”). [LESSOR]’s Notice shall include the prospective buyer’s name, the purchase price being offered, and any
other consideration being offered, the other terms and conditions of the offer, a description of the portion of and interest in the [Property]
and/or the [Lease] which will be conveyed in the proposed transaction, and a copy of any letters of intent or form agreements presented
to [LESSOR] by the third-party offeror. [LESSEE] shall have the right of first refusal to meet any bona fide offer of sale or transfer on
the terms and conditions of such offer or by effectuating a transaction with substantially equivalent financial terms. If [LESSEE] fails
to provide written notice to [LESSOR] that [LESSEE] intends to meet such bona fide offer within 60 days after receipt of [LESSOR]’s
Notice, [LESSOR] may proceed with the proposed transaction in accordance with the terms and conditions of such third-party offer,
in which event the [Lease] shall continue in full force and effect and the right of first refusal described in this Section shall survive any
such conveyance to a third party. If [LESSEE] provides [LESSOR] with notice of [LESSEE]’s intention to meet the third party offer
within 60 days after receipt of [LESSOR]’s Notice, then if [LESSOR]’s Notice describes a transaction involving greater space than the
[Premises], [LESSEE] may elect to proceed with a transaction covering only the [Premises] and the purchase price shall be prorated
on a square footage basis. Further, [LESSOR] acknowledges and agrees that if [LESSEE] exercises this right of first refusal, [LESSEE]
may require a reasonable period of time to conduct due diligence and effectuate the closing of a transaction on substantially equivalent
financial terms of the third-party offer. [LESSEE] may elect to amend the [Lease] to effectuate the proposed financial terms of the third
party offer rather than acquiring fee simple title or an easement interest in the [Premises]. For purposes of this Section, any transfer,
bequest or devise of [LESSOR]'s interest in the [Property] as a result of the death of [LESSOR], whether by will or intestate succession,
or any conveyance to [LESSOR]’s family members by direct conveyance or by conveyance to a trust for the benefit of family members
shall not be considered a sale for which [LESSEE] has any right of first refusal.
116
The foregoing proposal does not constitute a binding offer to amend the lease. No legal obligation
is created by this letter or any other written or oral communications until a written amendment to the lease
has been signed by both Landlord and Verizon Wireless. Verizon Wireless will continue to abide by the
terms of the current lease until an amendment has been executed or the existing lease has been terminated
or expires. Verizon Wireless values its affiliation with you and hopes that you choose to secure your site(s)
to continue a long and mutually profitable relationship in the years to come. After having reviewed this
proposal, please contact me prior to October 13,2025.
Sincerely,
Mark Gillaspy
Mark Gillaspy
Lease Consultant
Lease Optimization - CENREV
O (469) 833-2965
180 Washington Valley Road, Bedminster, NJ 07921
117
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Mark Hanson – General Manager
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
6.01a
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
• ERMU’s HR Generalist and I have been working closely with our benefits consultant to
identify the best options for ERMU’s benefits programs and to plan our 2026 open
enrollment meetings.
• ERMU’s finance manager and administrations director and I have been meeting with our
cost of service consultant to identify and provide necessary data to support the on-going
cost of service study.
• Key staff and I have been meeting with Minnesota Municipal Power Agency (MMPA)
representatives in support of two large projects: connection of a 3.5 MW future solar
site to our Waco substation and the construction of MMPA’s renewable natural gas
project. Both projects require a significant amount of work by ERMU staff through the
spring of 2027. MMPA has expressed their appreciation of our ongoing partnership
efforts to ensure both projects are a success.
• I joined the City’s public works and community development directors in meeting with
the developer for the proposed northeast development (east of Twin Lakes Elementary
School). The roughly 200-acre site could include as many as 400 dwelling units,
depending on the final approved layout.
• The MMPA Board of Directors met on October 28, 2025, at Chaska City Hall in Chaska,
Minnesota, and via videoconference. Commissioner Stewart and I attended. The public
summary follows:
o The Board reviewed the Agency’s financial and operating performance for
September 2025.
o Participation in the residential Clean Energy Choice program increased by 36
customers. Customer penetration for the program is 6.7%.
o The Board discussed the status of renewable projects the Agency is pursuing.
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Sara Youngs – Administrations Director
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
6.01b
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
• The Cold Weather Rule (CWR) is in effect from October 1, 2025, through April 30, 2026.
During this time, all electric service disconnections will follow state regulations. We
encourage customers experiencing financial hardship to explore energy assistance
programs or set up a payment plan to avoid service interruptions. Please note that
funding for the Federal Low-Income Home Energy Assistance Program (LIHEAP) has
been delayed due to the federal government shutdown.
• ERMU disconnections for October -
o Cycle 1 – 12 disconnections.
o Cycle 2 – 6 disconnections.
o Cycle 3 – 2 disconnections.
o Cycle 4 – no disconnections.
• Office walk-in traffic for October consisted of 112 customers, averaging 28 per week
over the four-week period.
• Currently there are ten active residential solar photovoltaic projects planned or under
construction in the ERMU service territory.
• The Advanced Metering Infrastructure water meter replacement efforts focused heavily
on communication and coordination to schedule the remaining residential water meter
replacement appointments. With these efforts all residential water meters have been
replaced. Currently, we have seven commercial water meters to replace.
• Our credit & collections specialist ran the processes to separate the assessable amounts
from all applicable accounts. Our accounting department then prepared the final
spreadsheets with those amounts for presentation in the commission packet and to be
sent to the city. This process really is a collaborative effort every year.
• Our IT team continues to collaborate with Marco on the ACE365 project and has
recently updated our multi-factor authentication for enhanced security. They are also
continuing work on building out the electric and water OT networks.
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• Following the National Information Solutions Cooperative’s (NISC) Member Information
Conference, staff have been actively reviewing our 2026 strategic initiatives to leverage
NISC SmartHub and Messenger features for enhanced customer engagement.
• The administrations director participated in the American Public Power Association’s
Customer Connection Conference in Salt Lake City from November 2-5, 2025. This event
offered valuable insights into ERMU's strengths and future opportunities. Key highlights
included:
o Customer engagement strategies
o Technology integration
o Regulatory updates
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Melissa Karpinski – Finance Manager
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
6. 01c
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
• Staff continues compiling 2026 budget information.
• Continued efforts on cost of service and rate studies.
• ERMU received its second settlement payment related to our portion of the 3M
Aqueous Film-Forming Foam (AFFF) liability litigation. The total settlement value from
3M is $99,778.85 with a net settlement award to-date of $42,133.95 after attorney’s
fees and other deductions. We should be receiving final payment before the end of the
year for $29,942.31. ERMU also received a settlement payment related to our portion of
the Dupont AFFF litigation. The total settlement from Dupont is $11,964.81. The
Dupont net settlement award was $8,383.74 after attorneys’ fees and other deductions.
• Continued research and review of our reserve balances and reserves policy.
• The Financial Reserves & Investment Committee met on October 27 and is meeting
again before the November Commission meeting.
• The auditors from Abdo will be performing preliminary audit work on December 4. The
2025 audit field work is scheduled for February 18-20.
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Tony Mauren – Governance & Communications Manager
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
6.01d
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
• In November all customers will receive the attached Customer Privacy Notice which is
required to be sent out annually and explains how we protect customers’ personal
information.
• In addition to the bill insert topic, November social media topics will include tree
trimming information, a daylight saving time reminder, lighting and lighting control
rebate details, holiday office closures, and a commission meeting reminder.
• The Communications & Administrative Coordinator attended the American Public Power
Association Customer Connections Conference (CCC) in Salt Lake City, Utah, November
2-5. The CCC provides an opportunity to share ideas, network with other
communication professionals and sponsors, and grow as an individual through three
days of breakout sessions and keynote speakers.
• ERMU staff hosted a tour for the Elk River Area Chamber of Commerce’s Leadership
group as part of “History Day.” Water Superintendent Dave Ninow led a tour of the Lake
Orono Dam. Technical Services Superintendent Mike Tietz guided participants through
the decommissioned power plant. Governance & Communications Manager Tony
Mauren and Communications & Administrative Coordinator Jenny Foss provided a tour
of the field services facility, highlighting the integration of historically focused wall art
throughout the building. Each participant received the attached ERMU historical flyer
with a link to the History of ERMU book created for our 100-year celebration.
• Families enjoyed the nice weather on Friday, October 24, at the Downtown Trick-or-
Treat event. ERMU’s booth featured a decorated bucket truck, tables with sunglasses,
glow sticks, and candy for the kids. This year’s theme was Beach Day with an under-the-
sea backdrop for family photos. From the office Jenny, Tony, and Lead Customer Service
Representative Jessica participated along with lineworkers Josh and Alex B. Photos
attached.
• Updates to ERMU’s website went live on Thursday, October 23. While the overall look
remains familiar, the main purpose was to enhance security. The site has transitioned to
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a new content management system and IT staff report that our site has improved its
security rating.
• Following the National Information Solutions Cooperative’s (NISC) Member Information
Conference, communications and customer service staff are working with the
administrations director to enhance the SmartHub user experience through improved
branding, updated language, and other refinements with the help of NISC.
• The Minnesota Clerks and Finance Officer Association’s Record Retention Task Force
met on October 15 to continue its review of the General Record Retention Schedule for
Minnesota Cities. The group is researching necessary updates to the schedule in
preparation for a future edition publication, with Tony being assigned the utilities-
focused portions of the schedule. The retention schedule is a reference for municipal
staff across the state, providing data privacy classifications and record retention periods
to maintain best practices and statutory compliance. The task force’s recommendations
are reviewed by a panel consisting of the attorney general, state auditor, legislative
auditor, and the director of the Minnesota Historical Society for final approval. The last
update was in 2021.
ATTACHMENTS:
• Bill Insert – Customer Privacy Notice
• ERACC Leadership Tour Flyer – History Day 2025
• Photos – Downtown Elk River Trick or Treat Event 2025
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CUSTOMER PRIVACY NOTICE
In order to provide you service, we need to collect and use certain data on our customers. Under state law, data on our customers is generally
classified as private data. The legal terminology when the data subject is not an individual person is “nonpublic”, but the effect is the same:
The data is accessible to the subject of the data but not the general public. The law also requires us to tell you the purpose and intended
use of the data we request, whether you may refuse or are legally required to provide the requested data, the consequences of providing
or refusing to provide the data, and the identity of other persons or entities that are authorized to access that data. Please read this notice
carefully to understand what we do.
FACTS WHAT DOES ELK RIVER MUNICIPAL UTILITIES DO WITH YOUR
PERSONAL INFORMATION?
Why?
All utilities need to obtain and share customers’ personal information to run their business. We collect this
data to properly identify you and the services you receive, to bill you for those services, collect payments,
and report to state and federal authorities. If you do not provide the information, we will be unable to provide
you with the requested services. We will share the information you provide only as necessary to provide the
services, to obtain payment, and to report to other governmental authorities as required.
What?
The types of personal information we collect and share depend on the product or service you have with us.
This information can include:
• Social Security number and income
• Account balances and payment history
• Credit history and credit scores
• Financial banking information and/or credit card information
How?When you are no longer our customer, we continue to retain and share your information as described in this
notice. In the section below we list the reasons Elk River Municipal Utilities chooses to obtain and share, and
whether you can limit this sharing.
Reasons we can share your personal information Does Elk River Municipal
Utilities share?Can you limit this sharing?
For our everyday business purposes -
such as to process your transactions, maintain your account(s),
respond to court orders and legal investigations, or report to
credit bureaus
Yes No
For our marketing purposes -
to offer our products and services to you Yes No
For joint marketing with other financial companies No No
For our affiliates’ everyday business purposes -
information about your transactions and experiences No No
For our affiliates’ everyday business purposes -
information about your credit worthiness No No
For our affiliates to market to you No No
For our nonaffiliates to market to you No No
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Who we are
Who is providing this notice? Elk River Municipal Utilities
What we do
How does Elk River Municipal Utilities
protect my personal information?
To protect your personal information from unauthorized access and use, we
use security measures that comply with federal and state law. These measures
include computer safeguards and secured files and buildings.
How does Elk River Municipal Utilities
collect my personal information?
We collect your personal information, for example, when you:
• Open a utility account
• Pay your bill
We also collect your personal information from others, such as credit bureaus,
affiliates, or other companies.
Why can’t I limit all sharing?
Federal law gives you the right to limit only:
• Sharing for affiliates’ everyday business purposes — information about
your creditworthiness
• Affiliates from using your information to market to you
• Sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to
limit sharing.
Definitions
Affiliates Companies related by common ownership or control. They can be financial
and nonfinancial companies.
Nonaffiliates Companies not related by common ownership or control. They can be
financial and nonfinancial companies.
Joint marketing
A formal agreement between nonaffiliated financial companies that together
market financial products or services to you.
• Elk River Municipal Utilities does not have joint marketing arrangements
Other important information
Elk River Municipal Utilities is already very limited on what data can be shared due to Government Data Practices Law.
QUESTIONS? CALL 763.441.2020 OR VISIT ERMUMN.COM125
HISTORY DAY 2025ERACC LEADERSHIP
ERMUMN.COM | 763.441.2020 | 13069 ORONO PARKWAY | PO BOX 430 | ELK RIVER, MN 55330-0430
Elk River Municipal Utilities: Our History
ERMU has seen tremendous growth
throughout the past century and into the
next. Much has changed since our rich
history began with a businessman who
was determined to bring power to the
Village of Elk River.
In June of 1915, businessman and
real estate developer Fred Waterman
incorporated the Elk River Power and
Light Company, now known as Elk River
Municipal Utilities. Construction began
on the hydroelectric power plant, which
included a 200-horsepower turbine engine housed in a 30-foot by 30-foot structure located
next to the dam on Orono Lake. Elk River residents were eager to enter the world of modern
conveniences that electric appliances could provide: incandescent lamps, flat irons, electric
fans, vacuum cleaners, and much more. In 1920 the municipal water system was created, and
the first water tower was constructed as a means to protect the city after several fires scorched
the downtown area. This was just the beginning of providing quality long-term electric and water
utility service to our beloved community.
Today, ERMU serves more than 13,800 electric customers in Elk River and the surrounding area.
With 646 miles of electric lines, annual energy sales reach nearly 317 million kilowatt hours.
ERMU’s water system supplies water to approximately 5,800 customers, with 127 miles of water
mains and annual water sales exceeding 775 million gallons.
ERMU has played a large role in shaping the community of Elk River and
surrounding areas and continues to grow.
Scan the QR code to read A History of Elk River Municipal Utilities, published in 2015
in celebration of our 100 years of service, to learn more.
OUR
MISSION
OUR
VISION
To provide our customers
with safe, reliable, cost-
effective, and quality
long-term electric and
water utility services.
To communicate and
educate our customers
in the use of utility
services, programs,
policies, and future plans.
These products and
services will be provided
in an environmentally
and financially
responsible manner.
Provide exceptional
services and value to
those we serve.
INTEGRITY
QUALITY
COMMUNICATION
SAFETY
COMPETITIVE
OUR
VALUES
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Photos—Downtown Elk River Trick-or-Treat 2025
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Thomas Geiser – Operations Director
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
6.01e
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
• Staff is working through the second round of maps for the new GIS mapping system that
we plan to move forward with in the future. Maps 1 through 72 are complete.
• Still working through the lack of communication and action regarding the reclosers that
were recalled. We continue to wait for our 30 units to be repaired.
• ERMU has started its copper switchgear replacement plan.
• Working with Minnesota Municipal Power Agency solar and gas plant projects.
• Working through Lumen’s pole attachment request.
• ERMU received one of two line trucks on October 30, Digger #9. We are still waiting on
Bucket Truck #5 to be received at the end of December. The two trucks being replaced
will go to auction.
• We had our wire bid opening on Wednesday, November 5 for our 1/0 underground
primary.
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Chris Sumstad – Electric Superintendent
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
6.01f
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
• Installed 17 new residential services, which involves the connection of a secondary line
once the customer requests service.
• Crews continue to work on installation of the primary wire to Minnesota Municipal
Power Agency’s renewable natural gas injection site off Baldwin Street east of Highway
169.
• Joe Schmidt, Safety Instructor from Minnesota Municipal Utilities Association (MMUA),
was here October 29 and 30, and held safety meetings for all staff on fire safety and
extinguisher use.
• Jay Reading, Safety Instructor from MMUA, was here October 28, and held job training
and safety education on digger derrick operations.
• Crews are working on replacing a few dead front oil switchgear with dead front non-oil
switchgear. This will continue as we receive more shipments of gear.
• Carr’s Tree Service returned November 3 and will be tree trimming until the end of the
year.
• We have a line crew working at the new East substation, installing conduits, ground
grids, and lighting.
• The bore crew has started working on replacing older open concentric primary on 223rd
Avenue in the northwest part of Elk River.
• We had a pole fire on October 15 outside the West substation due to tracking of a
disconnect switch. Crews were able to switch this out and avoid an outage. They then
replaced the pole, overhead gang switch, and brought new feeder wire out from inside
the substation to the pole.
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Mike Tietz – Technical Services Superintendent
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
6.01g
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
• In October, the locators processed 445 locate tickets. These consisted of 366 normal
tickets, 3 emergency tickets, 43 updated tickets, 12 meetings, 3 planning, 2 boundary
surveys, and 16 cancellations. This resulted in a 5.1% decrease in tickets from the
previous month and a 12.1% decrease from the prior October.
• In October, the electrical technicians completed 51 service order tasks, updated the
power bill, addressed customer meter issues and any off-peak concerns.
• The Advanced Metering Infrastructure (AMI) residential water meters were completed
in October. The electrical technicians have been busy testing current transformers in
preparation for the arrival of our polyphase meters for our demand commercial
customers. We continue to receive some of our returned merchandise
authorization/warranty meters back from Sensus. We have approximately 5,754 (100%)
water meters and 13,283 (94%) electric meters that are installed within the system and
our overall AMI project is approximately 96% completed.
• The East substation concrete foundation work was completed in October. Staff has been
able to take advantage of the weather and have installed all of the feeder exit conduits
and communication/electrical conduits throughout the site. The control building was
delivered and placed onto its foundation on November 4. The remaining fence work was
completed by the contractor and staff have begun working on the ground grid
installation and is expected to be wrapped up by the middle of November. Assembly of
the steel structures is expected to start in March and will be constructed by ERMU staff.
Commissioning of the substation is still expected to be completed by September 1,
2026.
• Our monthly peak was 57.27 MW on October 2, at 4:23pm.
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UTILITIES COMMISSION MEETING TO:
ERMU Commission
FROM:
Dave Ninow – Water Superintendent
MEETING DATE:
November 12, 2025
AGENDA ITEM NUMBER:
6.01h
SUBJECT:
Staff Update
ACTION REQUESTED:
None DISCUSSION:
• Delivered 8 new water meters, installed a Smart Point radio transceiver module, and
took curb stop ties.
• Completed 20 BACTI/Total Chlorine Residual Samples
o All confirmed negative for Coliform Bacteria.
o Bacteriological/Disinfectant Residual Monthly Report submitted to the MDH
• Completed 23 routine fluoride samples
o All samples met MDH standards
o Submitted MDH Fluoride Report
• Water department staff devoted a great deal of time and effort to finding ways to make
personal contact with residential customers who had been unresponsive to all previous
attempts to communicate that their water meter needed to be exchanged for the
Advanced Metering Infrastructure project.
• With the concrete pad for the onsite backup generator at Well #3 installed and initial
electric work roughed in, the generator was placed on October 29 in preparation for
connection.
• Now that there is an approved set of plans for Bradford Park 2nd Addition, work on new
water main installation has begun.
• The pipe, pump, and motor have been removed from Well #6 for scheduled
preventative maintenance checks. All five 20’ sections of pipe show signs of corrosion
most likely from electrolysis and will be replaced with new pipes. The pump and motor
are in good condition and will be put back in service.
• A revision of our original service line material inventory of all service connections in the
water distribution system has been submitted to MDH. The inventory shows that there
are 39 services consisting of galvanized pipe that MDH will require to be replaced, and
107 services where the pipe material is still unknown. We worked with Short Elliot
Hendrickson to revise the inventory through assistance we had applied for and received
through MDH.
• Verizon Wireless’ contractor held a preconstruction meeting for upgrades to their
telecommunications equipment at Auburn Street Water Tower. Work should begin in a
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couple of weeks. An amendment has been added to their lease agreement for additional
antennas they will be installing on the tower with this project.
• Work on installation of fiberoptic service to Wells #2, #6, and Freeport Water Tower
continues.
ATTACHMENTS:
• October 2025 Pumping by Well
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Values Are Displayed in Millions of Gallons (Well #, Gallons Pumped, Percentage of Pumping)
Well #2, 13.151, 18%Well #3, 0.031, 0%
Well #4, 20.097, 28%
Well #5, 9.026, 13%
Well #6, 4.624, 6%
Well #7, 8.263, 11%
Well #8, 8.395, 12%
Well #9, 8.354, 12%
October 2025 Monthly Pumping By Well
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Tuesday, January 14:
•Annual Review of Committee Charters
Tuesday, February 11:
•Review Strategic Plan and 2024 Annual Business
Plan Results
Tuesday, March 11:
•Oath of Office
•Election of Officers
•Annual Commissioner Orientation and Review
Governance Responsibilities and Role
Tuesday, April 8:
•Audit of 2024 Financial Report
•Financial Reserves Allocations
•Review 2024 Performance Metrics
Tuesday, May 13:
•Annual General Manager Performance
Evaluation and Goal Setting
Tuesday, June 3:
•Annual Commission Performance Evaluation
Tuesday, July 8: Tuesday, August 12:
•Annual Business Plan – Review Proposed 2026
Travel, Training, Dues, Subscriptions, and Fees
Budget
•Review and Update Strategic Plan
Tuesday, September 9:
•Annual Business Plan – Review Proposed 2026
Capital Projects Budget
Tuesday, October 14:
•Annual Business Plan – Review Proposed 2026
Expenses Budget
Wednesday, November 12:
•Annual Business Plan - Review Proposed 2026
Rates and Other Revenue
•Adopt 2026 Fee Schedule
•2026 Stakeholder Communication Plan
Tuesday, December 9:
•Adopt 2026 Official Depository and Delegate
Authority for Electronic Funds Transfers
•Designate Official 2026 Newspaper
•Approve 2026 Regular Meeting Schedule
•Adopt 2026 Governance Agenda
•Adopt 2026 Annual Business Plan
2025 GOVERNANCE AGENDA
134