ERMUSR MISC LETTER 07-15-2008~j
Elk River -=
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
July 9, 2008
To: Elk River Municipal Utilities Commission
Jerry Takle
Jerry Gumphrey
John Dietz
From: Bryan Adams
Subject: Miscellaneous Issues
Phone: 763.441.2020
Fax: 763.441.8099
Enclosed is the packet for the Tuesday, July 15, 2008 commission meeting at 4:00 p.m.
The cooler and wetter weather continues to affect electric and water usages. Electric usages are
up 6.5% above last year due to the data centers while water usages are down 9.5% from last year.
Enclosed is the following information for your review.
1) June 27, 2008 edition of The Kiplinger Letter addressing gas prices.
2) Sherburne Tribune article titled, "Demographer says CRUW region will continue to
grow."
3) Waterworld June 2008 article titled, "Mayors Question Costs of Bottled Water Usage."
Our Well #9 was put into operation, although there are still many clean-up items to be
completed.
Many employees are asking about going to a 4 day work week as a strategy to save energy.
Some cities have tried it with mixed results. Because most of our employees live within the 12
mile report distance, I question if we would save much energy. Because of our service to the
public we would still be open 5 days/week and open 10 hours instead of 8 hours. The extra 2
hours of building operation may off-set any transportation cost savings. Does the commission
have a strong opinion about this issue?
^ ^
e ~ in er ester
FORECASTS FOR MANAGEMENT DECISIONMAKING
1729 H St. NW, Washington, DC 20006-3938 • kiplingerbiz.com • Vol. 85, No. 26
Dear Client:
What to do about high gasoline prices?
Lawmakers are scrambling for solutions.
The list of ideas is lon>?: Politically popular
but economically useless. Economically sound
but politically suicidal. And everything in between.
The list of what is actually doable is short.
While politicians of all stripes deplore the high prices,
there's an enormous gulf between the two parties
on how to lower them. Here's how we rate the options.
More offshore drilline: Not now...maybe later.
Democrats say no to lifting the moratorium,
Republicans are for it, and election year sparring
will keep the debate roiling at least until next year.
A modest expansion isn't out of the auestion
in a few years, if states get a share of the lease cash.
Reouirin~ current drilline leases to be used:
Lengthening odds. More policymakers
are being persuaded that not all leases can pan out.
Tapping the Arctic National Wildlife Refuge:
Not with Democrats in control of Congress.
Washington, June 27, 2008
~ ~ 1' ~
®
" GDP growth
~
. Slowing to 1% in 'OS
..............................................................
......
... Interest rates
Prime rate at 5.25% at year-end,
.......... 10-year T-notes yielding 4.25%
...............................................................
Inflation
'
.......... Holding at 4% in
O8
...............................................................
Job growth --
'
.......... Falling to 10,000 in
08
..............................................................
Crude oil
.......... Averaging $110/barrel this year
..............................................................
Housing sales
.......... Falling 10% in 'OB
...............................................................
Retail sales growth
.......... Slowing to 2% this year
...............................................................
Trade deficit
Easing to 4.2% of GDP in '08
Complete economic outlook at
kiplingerbiz.com/outlooks
A federal anti-price-gou~in~ law: Yes, but it's lust afeel-good measure.
Congress will set penalties and give the Federal Trade Commission a green light
to investigate gasoline, natural gas, home heating oil and propane markets.
But gouging is tough to prove, and all states already have such laws on the books.
Taking legal action against OPEC: A pipe dream. The House passed a bill
authorizing the Justice Dept. to haul foreign governments acting as a cartel into court.
But the Senate won't go along, and such a move would trigger an international fracas.
Curbing market speculation: A yes for more federal oversight...eventually.
Federal regulators will gain authority to govern oil futures trading more closely,
requiring more transparency and reporting of trades and possibly limiting the number
of contracts any entity can hold. But no new law until 2009, after months of yakking.
As for an outright ban on oil market speculation: No wav. Wall Street
will prevail, arguing that reasonable speculation is needed for markets to function.
Suspending, federal has taxes: Dead. It would just spur more gasoline use.
Hiking_gas taxes: Also dead. It's politically untenable, and with pump prices
at record highs, even advocates recognize that conservation is already getting a push.
Reinstating a 55 mph speed limit: Ditto. Congress wouldn't dream of it.
More nuclear power: Yes. Barack Obama and John McCain both support it,
and it will be essential for fueling the widespread growth of plug-in vehicles.
Easing refinery regulations. M~be. It'd be easier to facilitate expansions
of existing Gulf Coast refineries than to build new ones. Still, green groups will howl.
The Kiplinger Letter (ISSN 1528-7130) is published weekly for $1171one year, $199(nvo years, $263lthree years Subscription ingllirlBS: 800-544-0155 or subservices@kiplinger.cvm
by The Kiplinger Washington Editors, 1729 H SL, NW, Washington, DC 20006-3938. Editorial In/Ormati0n: Tel., 202-887-6462; Fax, 202-7788976;
POSTMASTER: Send address changes to The Kiplinger Letter, PA. Box 3295, Harlan, IA 51593. E-mail, letters@kiplingercom; or Web site, kiplingerbiz.com
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_ n ~
Demographer says CRUW
region will continue is grow
Jennifer Edwards
Staff Writer
Minnesota is a prosperous
state and those who live in
the Caring Rivers United
Way (CRUW), region enjoy
a relatively high standazd of
living, says State
Demographer Tom Gillaspy,
who spoke at a luncheon at
the Big Lake American
Legion last week.
Gillaspy was invited back
to speak at a Caring Rivers
United Way community
forum to update information
he shared at a similaz forum
last summer. CRUW hosted
the forum to gain a better
understanding of the people
and communities they serve.
The economic growth rate
in Minnesota has exceeded
the national average.
Minnesota ranks among the
best places in the world on
many social and economic
indicators, with education
playing a key role in the
state's success.
"We are first among those
with a high school diploma
and 12th among those with at
least a bachelors degree,"
Gillaspy said. "We are first in
the number of people owning
their own homes .and first
with the percentage of people
having health insurance."
With 76.9% of those aged
16-64 employed, Minnesota
ranks second in the nation in
,percentage of employment,
has the eighth lowest poverty
rate in the country and is
ninth in median family
income.
"But past performance
does not ensure future
results," Gillaspy said.
C R U W Continued From Page 1
and from now on, numbers
of students entering school
will begin to decline,
although that is not true in
this area Gillaspy said.
Slower growth in the labor
force will highlight the
importance of growth in -pro-
ductivity. Fewer people will
retire at age 65 and there will
be fewer workers available
to replace those who do
retire.
Aging Not Normal
"It is not normal for a
society to age," Gillaspy
said. "The first wave of the
baby boom generation turns
65 in 2011. In 2008,
Minnesota will see a 30%
jump in workers turning age
62."
Minnesota is one of the
most homogeneous, least
diverse states in the union.
Most people who live in
Minnesota were born here.
While people from other
states and other countries are
moving in to Minnesota,
most of those moving into
Sherburne and Wright coun-
ties are from Minnesota.
The population of Wright
and Sherburne counties has
become more diverse, a
trend which will continue. It
is less diverse than most of
the state. The population in
place is aging, but the
migrant population is young
and vibrant. Over half the
growth this decade will be
among the minority popula-
tion.
"Population growth in the
state is 6.3%. Population
growth in Sherburne and
Wright counties is 29.4%.
Population growth in
Monticello, Rogers and
Buffalo is 46.1%," Gillaspy
said. "And that strong
growth is projected to con-
tinue."
From 2010 to 2020, most
age groups will see growth
in the Caring Rivers United
Way region, and the azea will
have a younger than average
population than the rest of
the state, the nation and most
of Europe and Japan.
Competition for the future
workforce will increase and
the migrant population will
become increasingly impor-
tant to the labor force.
Life Cycle Changes
Life cycle considerations
will alter housing and spend-
ing decisions as more house-
holds become single person
or empty nest couples living
alone. The biggest growth in
this azea will be among those
living alone or without chil-
dren.
"We are about at the tip-
ping point now," Gillaspy
said. "The number of maz-
ried with children families is
about equal to the number of
empty nesters."
Dramatic increases in the
cost of health care will also
impact how and where peo-
ple live and spend their
money.
With oil prices rising ever
higher, commuting to work
becomes a less viable option
every day. The Northstar
commuter train, which is
scheduled to begin passenger
service late in 2009, offers
an alternative to driving.
A severe slump in the
housing market which has
impacted .the community
which has been hard hit by
"Forces are at work which
will impact the way people in
this region live, work and
compete in today's global
market."
An aging population, glob-
alization and changes in
technology will impact our
economy, along with an
upswing in immigration and
a sharp increase in the cost of
healthcare.
"Minnesota has been a
very successful state, espe-
cially for a cold-weather
state at the end of the road,"
said Gillaspy. "But we are in
a period of rapid and critical
change. "
Across the state, there will
be a decline in the number of
students entering school.
This year saw the largest
graduating class in the state
CRUVII Continued On Page 17
foreclosures. The housing
slump will also effect the
work force as people who
have been clinging to equity
in their homes to fund their
retirement see that nest egg
disappear.
Payroll has been lagging
behind the national average
since 2006 and well behind
the rising cost of food and
essentials. All these condi-
tions combine to keep people
in the workforce longer than
previous generations.
"Rapid change results in
great challenges and great
opportunities," Gillaspy said.
"We will know more after
the 2010 census. It is very
important everybody be
counted."
Gillaspy has been
Minnesota's state demogra-
pher since 1979. He earned
his a Ph.D. in economics
form Pennsylvania State
University and specializes in
economic demography. He
also holds a masters degree
in agricultural economics
and earned his undergraduate
degree in economics at the
University of Texas, Austin.
Sponsors of the communi-
ty foram were the Big Lake
Chamber of Commerce, the
City of Big Lake, the Big
Lake Business Retention and
Expansion Committee, BOB
106 Radio, Elk River
Chamber of Commerce and
the Big Lake American
Legion Post 147.