With no current disasters to deal with, the Grand Marais Public Utilities linemen have been clearing rights-of-way, Electric Superintendent Mike Taylor told the Public Utilities Commission (PUC) board on September 7, 2011. It’s likely just a lull in excitement before we hit the month of October, though, he said, since the last two Octobers have brought very big storms and left them with a lot of repair work.
City Administrator Mike Roth went over proposed budgets for the electric, water, and sewer departments. The city’s public utility departments are in a good financial position right now.
Roth said they couldn’t be sure what the city will pay its cooperative, Southern Minnesota Municipal Power Authority (SMMPA), for electricity this next year, but they are assuming they will have no rate increase. “That’s by far the biggest component of our [electric] budget,” Roth said. Board Chair Hal Greenwood said he expects that SMMPA will keep its rates down because of a wise investment in Build America bonds that have an excellent rating.
Some city costs will go down next year. “We also have a decrease in health insurance,” said Roth, “which is a rare and celebrated event.”
The amount budgeted for supplies in the electrical department will be lower next year as well. The city couldn’t budget any more for supplies without increasing the number of staff to carry out projects requiring those supplies, Roth said. Superintendent Taylor runs the department with two linemen. “The system’s in good shape,” Roth said.
In a memo regarding the proposed water budget, Roth wrote, “Water sales have flattened out or slightly increased since 2009. With regular small rate increases we have managed to build a small fund balance and even paid cash for the 2010 water improvements. Our revenues for 2011 are on track to come in above budget.”
“Either you collect it in rates or you collect it in levies,” Roth said.
“We have healthy reserves in the sewer fund to use for our future capital projects,” Roth reported in a sewer budget memo. He told the board that the staff has paid close attention to upcoming needs.
Board member and city councilor Tim Kennedy said he feels it’s important to do whatever they can to keep costs down. “Critical needs” such as health care and food keep going up in cost, he said.
Greenwood agreed, saying people’s salaries are not going up.
“In summary,” Roth said, “the utilities are performing well.”
Kennedy agreed. “We’re holding our own and doing well.”
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