5.2. ERMUSR 04-13-2010
Phone: 7b3.441.ZOZ~
Fax; ~b3.441.8~99
April 7, Za 1 a
To: Elk River Municipal Utilities Commission
John Dietz
Jerry Gumphrey
Daryl Thompson
From: Troy Adams
Subject: Review and Consider Reserves Policy
The investment Committee provided and update to the Commission on the need for a reserves
policy during the March 9~h Commission meeting, The Commission directed staff to draft a
reserves policy and bring back to the Commission for review.
Staff has utilized the resources of Minnesota Municipal Utilities Association, Abdo Eick ~
Meyers, and Ehlers and Associates to compile and compare reserve policies and reserve target
criteria from other Minnesota municipal utilities. From this data, the investment Committee
conducted an analysis to determine criteria that would be applicable for Elk River Municipal
Utilities to adopt as policy, The investment Committee will meet on April 13~h prior to the
Utilities Commission meeting and will provide an update and recommend reserve criteria at the
Commission meeting,