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03-29-2023 HUCCPHUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING March 29, 2023 3:00 p.m. 1. CONFLICT OF INTEREST 2. APPROVE CONSENT AGENDA a. Approve Minutes b. Ratify Payment of Bills 3. APPROVE 2022 FINANCIAL AUDIT — PRESENTATION BY JUSTIN MCGRAW 4. APPROVE FINANCIAL STATEMENTS 5. OPEN FORUM 6. COMMUNICATION a. City Administrator b. Divisions C. Human Resources d. Legal e. General Manager 7. POLICIES a. Review Policies i. Section 3 of Exempt Handbook ii. Section 3 of Non -Exempt Handbook b. Approve Changes i. Employment of Relatives 8. UNFINISHED BUSINESS 9. NEW BUSINESS a. Approve Entitlement Extension of NNG Transportation Contract #102733 b. Approve 3M's Natural Gas Transportation and Daily Swing Supply Agreement C. Approve Req#9482 — 2023 Chevrolet Silverado 1500 10. ADJOURN MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, February 22, 2023 Call to order — 3:00 p.m. President Anthony Hanson called the meeting to order. Members present: President Anthony Hanson; Vice President Matt Cheney; Commissioner Robert Wendorff; Commissioner Kathy Silvernale; GM Jeremy Carter Absent: Secretary Don Martinez; Attorney Marc Sebora 1. Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Cheney, second by Commissioner Wendorff to Approve the Consent Agenda. Motion carried unanimously. 3. Approve Financial Statements Mr. Martig presented the financial statements. Electric Division Purchase Power increase and Generator Fuel decrease is partially attributed to Unit#1 being down for repairs; which caused HUC to purchase $145K on the market to cover the Dynasty Power contract when called upon. Gas Division net income decreased by $5K mainly due to decreased revenue associated with higher than normal temperatures which also led to lower purchased gas expense. GM Carter elaborated on the electric and gas divisions consumptions relating to the weather along with customer consumption impacts based on the economy. GM Carter noted that there was a reduction in fuel expenses due to HUC not contracting gas in January/February to run generation as a hedging strategy against high market prices. Overall divisions are trending well. Motion by Commissioner Silvernale second by Commissioner Cheney to Approve the Financial Statements. Motion carried unanimously. 4. Open Forum 5. Communication a. City Administrator —Matthew Jaunich — 1. Snow Emergency declared for tonight b. Divisions i. Dan Lang, Engineering Services Manager — Nothing to report ii. Dave Hunstad, Electric Transmission/Distribution Manager — 1. No outages for January, however did have one on Feb. 5 Northwest of town. There was a switch that failed, staff was able to get everything up and running within 7 minutes 1 iii. Mike Gabrielson, Production Manager —Absent iv. John Webster, Natural Gas Division Director — Nothing to report v. Jared Martig, Financial Manager — 1. Teri Hofineister's is retiring on February 24t" after 29 years Commissioners thanked Teri for her years of Service. c. Human Resources —Angie Radke —Absent d. Legal — Marc Sebora — Absent e. General Manager — Jeremy Carter i. Sterling Company was originally planned to come out this week to start salvaging Units 3, 4 and 8 however due to weather this is now planned for next week ii. Provided Legislative update iii. MRES and HUC Staff will be discussing potential generation partnerships iv. Starting preliminary conversations on land acquisitions with a company in town for the Hutchinson substation improvements v. Cost of Service Study update- looking to have more information in March vi. Looking to schedule a Joint meeting with the City Council 6. Policies a. Review Policies i. Section 2 of Exempt Handbook ii. Section 2 of Non -Exempt Handbook No changes recommended at this time. b. Approve Changes i. Hiring — Exempt and Non -Exempt ii. Probationary Period Upon Hiring — Exempt iii. Membership/Dues/Conventions — Exempt iv. Data Practices Advisory — Exempt and Non -Exempt v. Complaint/Grievance Procedure — Exempt vi. Safety Glasses — Non -Exempt GM Carter spoke of the changes that are needed to the various policies. i.) job description title change to reflect updated position; ii.) changing probation period to 6 months which will be consistent with Union Contract; iii.) remove the limitation on conferences- many Staff members sit on multiple boards; iv. and v.) job description title change to reflect updated position; vi.) clarifying the policy to prescription safety glasses along with adding a reimbursement amount. Motion by Commissioner Wendorff, second by Commissioner Silvernale to Approve the Policy Changes. Motion carried unanimously. 7. Unfinished Business 8. New Business a. Review 2022 Distributed Energy Resources Generation Report 2 Mr. Hunstad presented the 2022 Distributed Energy Resources Generation Report information. The report tracks the power generated from the solar systems that are delivered to the customer, what is sold back to HUC, and what is the net charge/credit for the customer. Every year HUC is required by state law to present this report to HUC's governing board. Each year this needs to be reviewed. HUC has 12 systems total for 2022. No applications for 2023 have been received. Motion by Commissioner Cheney, second by Commissioner Wendorff to Approve Review 2022 Distributed Energy Resources Generation Report. Motion carried unanimously. b. Approve Req#009438 — Hutchinson Substation 115kV Rebuild to DGR Engineering Mr. Lang presented Approval of Req#009438 — Hutchinson Substation 115kV Rebuild to DGR Engineer. HUC is looking to rebuild and reconfigure the Hutchinson Substation to increase available capacity and reliability to Hutchinson. HUC is asking DGR Engineering to perform the administrative and engineering duties of the project to final completion, perthe project scope delivered by MRES and approved by MISO. Great River Energy was also contacted however, GRE does not have time available. Amendments will follow with additional scope of work and costs. Motion by Commissioner Cheney, second by Commissioner Silvernale to Approve Req#009438 — Hutchinson Substation 115kV Rebuild to DGR Engineering. Motion carried unanimously c. Approve Req#009439 — Plant 2 Fabrication of Ladder and Platforms GM Carter presented Approval of Req#009439 — Plant 2 Fabrication of Ladder and Platforms. HUC needs to update the ladders and platforms used by staff to reach portions of the power plant. These modifications are needed to be in compliance with OSHA requirements and standards. Two vendors were engaged who could potentially do the work. One vendor was a turnkey vendor who could do both the fabrication as well as the installation of the ladder and platforms. The other vendor could only do the installation with fabrication having to be outsourced to another company. When reviewing the entire project, the more cost-effective option is to work with the two vendors for the various portions of the project. It is requested to have Valley Custom Welding perform the fabricating and build -out of the ladders and platforms at a cost of $153,096. The project was approved in the Capital Project list for 2023. Conversations were held on the timing of the project. Motion by Commissioner Wendorff, second by Commissioner Cheney to Approve Req#009439 — Plant 2 Fabrication of Ladder and Platforms. Motion carried unanimously. d. Approve Req#009440 — Plant 2 Installation of Ladder and Platforms 3 GM Carter presented Approval of Req#009440 — Plant 2 Installation of Ladder and Platforms. This is the second phase of the ladder and platforms. It is requested to have Wheelhouse Industrial perform the installation of equipment/materials at a cost of $80,183.49. Motion by Commissioner Silvernale, second by Commissioner Wendorff to Approve Req#009440 — Plant 2 Installation of Ladder and Platforms. Motion carried unanimously e. Approve GE LM6000 Contract GM Carter presented Approval of GE LM6000 Contract. On January 25t" the Board approved awarding the bid to GE Packaged Power LLC for Oil Leak Repair Services on the LM6000. Approval of the contract is the final step of the bid process. Today, Staff did receive the electronic Performance Bond and will be receiving the original next week. Staff is anticipating the LM6000 to be scheduled for transport within the next couple of weeks from contract signing. Staff would like to see the unit back by May/June. Motion by Commissioner Cheney, second by Commissioner Silvernale to Approve GE LM6000 Contract. Motion carried unanimously. 9. Adjourn There being no further business, a motion by Commissioner Wendorff, second by Commissioner Cheney to adjourn the meeting at 3:35p.m. Motion carried unanimously. ATTEST: Anthony Hanson, President 12 Don Martinez, Secretary 03/23/2023 08:54 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 1/37 User: JMartig CHECK DATE FROM 02/18/2023 - 03/22/2023 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC 02/21/2023 GEN 1309(E) MRES Purchased Power 401-555- 02 965,756.81 02/21/2023 GEN 1346(E) MISO Deferred Energy Cost - Miso 174-000- 00 8,224.99 02/21/2023 GEN 1347(E) MISO Deferred Energy Cost - Miso 174-000- 00 814.87 02/22/2023 GEN 1336(E)* MINNESOTA REVENUE STATE SALES TAX 242-000- 00 66, 876.00 City Sales Tax 242-000- 00 4,840.00 COUNTY SALES TAX 242-000- 00 4, 840.00 HECK GEN 1336(E) TOTAL FOR FUND 1: 76,556.00 02/22/2023 GEN 1340(E) ALERUS HEALTH INSURANCE - L MASON 401-556- 03 646.61 02/22/2023 GEN 1343(E) ALERUS HEALTH CARE - VAN MAREL 242-000- 00 243.82 02/24/2023 GEN 1333(E)*4 BP CANANDA ENERGY SOLUTIONS GENERATOR 41 NATURAL GAS 401-547- 01 920.45 GENERATOR 45 NATURAL GAS 401-547- 01 141.61 GENERATOR 46 NATURAL GAS 401-547- 01 172.58 Generator 47 Natural Gas 401-547- 01 172.59 Generator 49 Natural Gas 401-547- 01 442.52 HECK GEN 1333(E) TOTAL FOR FUND 1: 1,849.75 02/24/2023 GEN 1337(E)*4 BP CANANDA ENERGY SOLUTIONS GENERATOR 41 NATURAL GAS 401-547- 01 4,371.00 Generator 41 Aux Boiler 401-547- 01 420.63 GENERATOR 45 NATURAL GAS 401-547- 01 3,050.76 GENERATOR 46 NATURAL GAS 401-547- 01 5,574.91 Generator 47 Natural Gas 401-547- 01 7,190.69 Utility Expenses - Water/Waste 401-930- 08 3,486.12 HECK GEN 1337(E) TOTAL FOR FUND 1: 24,094.11 02/24/2023 GEN 6(S) WESCO RECEIVABLES CORP Meters (Boxes) 107-370- 00 560.97 Meters (Boxes) 107-370- 00 (560.97) HECK GEN 6(S) TOTAL FOR FUND 1: 0.00 02/24/2023 GEN 78246*4 ACE HARDWARE Supplies 401-550- 01 32.04 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 2/37 Amount Fund: 1 ELECTRIC Supplies 401-550- 01 13.87 Supplies 401-550- 01 17.23 Supplies 401-550- 01 4.36 Maint Power Prod Plant - Build 402-554- 01 6.40 Maintenance Other - Materials 402-554- 01 13.88 Line - Materials 401-581- 02 19.85 HECK GEN 78246 TOTAL FOR FUND 1: 107.63 02/24/2023 GEN 78247 ALTEC INDUSTRIES INC Line - Materials 401-581- 02 1,390.20 02/24/2023 GEN 78248* AMERICAN PAYMENT CENTERS INC BOX RENTAL 401-903- 06 51.14 02/24/2023 GEN 78249 AMERICAN PUBLIC POWER ASSOCIATION It Admin And Support 401-921- 08 680.00 02/24/2023 GEN 78250 BERGUM, CHARLES Cip - Residential 401-916- 07 150.00 02/24/2023 GEN 78252*4 BORDER STATES ELECTRIC SUPPLY LED Acorn Granville III 3000 107-373- 00 157,966.30 Photo Eye twist lock for LED 107-373- 00 3,956.00 BASEMENT, FIBERGLASS 1 PH TRANS 154-000- 00 4,253.70 Sales Tax Receivable - New 186-000- 00 271.98 Sales Tax Receivable - New 186-000- 00 292.44 Sales Tax Receivable - Replace 186-000- 00 10,860.IS HECK GEN 78252 TOTAL FOR FUND 1: 177,600.60 02/24/2023 GEN 78253 BRETT WRIGHT OR MARIAN P WRIGHT OVERPAYMENTS 142-000- 00 25.30 02/24/2023 GEN 78255* CARTER, JEREMY J Training - Expense 401-930- 08 34.71 02/24/2023 GEN 78256 CENTRAL HYDRAULICS Power Equipment - Materials 402-598- 02 8.89 02/24/2023 GEN 78257*4 CINTAS CORPORATION 4470 Uniforms & Laundry 401-550- 01 533.53 Uniforms & Laundry 401-550- 01 834.88 UNIFORMS & LAUNDRY 401-588- 02 308.11 UNIFORMS & LAUNDRY 401-588- 02 308.11 HECK GEN 78257 TOTAL FOR FUND 1: 1,984.63 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 3/37 Amount Fund: 1 ELECTRIC 02/24/2023 GEN 7825814 CITY OF HUTCHINSON Generator 41 Water & Sewer 401-547- 01 593.01 Generator 41 Water & Sewer 401-547- 01 229.58 Waste Disposal 401-550- 01 41.81 Waste Disposal 401-550- 01 407.81 Waste Disposal 401-550- 01 563.56 Line - Materials 402-594- 02 145.81 IT ADMIN AND SUPPORT 75/25 401-921- 08 4, 091.22 Utility Expenses - Water/Waste 401-930- 08 12.40 Utility Expenses - Water/Waste 401-930- 08 533.10 CHECK GEN 78258 TOTAL FOR FUND 1: 6,618.30 02/24/2023 GEN 78259 COOLING TOWER DEPOT Louver Repalcement Upgrade to 107-341- 00 27,733.44 STRUCTURES & IMPROVEMENTS (BUI 107-341- 00 381.56 STRUCTURES & IMPROVEMENTS (BUI 107-341- 00 13,044.64 Sales Tax Receivable - Replace 186-000- 00 2,215.46 CHECK GEN 78259 TOTAL FOR FUND 1: 43,375.10 02/24/2023 GEN 78260 CORE & MAIN ELec MTR 12S CL200 120V 107-370- 00 13,440.00 02/24/2023 GEN 782614 DELMAR COMPANY GASKET, LOW WATER CUT OUT, 154-000- 00 28.00 FREIGHT 401-588- 02 22.59 CHECK GEN 78261 TOTAL FOR FUND 1: 50.59 02/24/2023 GEN 782624 DESIGN ELECTRIC, INC Sales Tax Receivable - Replace 186-000- 00 9.76 Maint Power Prod Plant - Build 402-554- 01 103.93 Maint Power Prod Plant - Build 402-554- 01 49.96 Accessory Plant - Materials 402-554- 01 142.50 Grounds - Materials 401-935- 08 40.18 CHECK GEN 78262 TOTAL FOR FUND 1: 346.33 02/24/2023 GEN 78263 DGR ENGINEERING 3M Substation Relay and RTU Upgrades 107-362- 00 6,840.00 STATION EQUIPMENT (SWITCHGEAR, 107-362- 00 50.00 CHECK GEN 78263 TOTAL FOR FUND 1: 6,900.00 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 4/37 Amount Fund: 1 ELECTRIC 02/24/2023 GEN 78264* EHLERS & ASSOCIATES, INC REGULATORY EXPENSES 401-928- 08 275.00 02/24/2023 GEN 782654 FERGUSON ENTERPRISES 4525 053111 880-14 CB Rotary Seal 402-554- 01 1,892.00 050111 SAS-14 CR Stationary Unit 402-554- 01 1,158.00 FREIGHT 401-588- 02 28.26 HECK GEN 78265 TOTAL FOR FUND 1: 3,078.26 02/24/2023 GEN 78266* FIRST CHOICE FOOD & BEVERAGE BREAKROOM/RECOGNITION BANQUET 401-926- 08 345.00 02/24/2023 GEN 78267 FOSTER MECHANICAL Maint Power Prod Plant - Build 402-554- 01 4,592.31 02/24/2023 GEN 78268 FOX PROPERTIES OR PRESTON FOX OVERPAYMENTS 142-000- 00 182.99 02/24/2023 GEN 78270 GREAT RIVER ENERGY TRANSMISSION EXPENSE 401-565- 03 165, 709. 40 02/24/2023 GEN 78272 HER ENGINEERING INC Plant 1 Pipe Demo Plan Engineering 402-554- 01 3,770.10 Outside Services 402-554- 01 13.09 HECK GEN 78272 TOTAL FOR FUND 1: 3,783.19 02/24/2023 GEN 78273* HEALTH PARTNERS HEALTH INSURANCE-85o ELEC 242-000- 00 47,369.53 HEALTH INSURANCE -COBRA 242-000- 00 2, 806. 96 HECK GEN 78273 TOTAL FOR FUND 1: 50,176.49 02/24/2023 GEN 78274*4 HUTCHINSON WHOLESALE SUPPLY CO Sales Tax Receivable - Replace 186-000- 00 4.05 Sales Tax Receivable - Replace 186-000- 00 0.95 Supplies 401-550- 01 108.67 Accessory Plant - Materials 402-554- 01 58.98 Accessory Plant - Materials 402-554- 01 13.88 Other Equipment - Materials 402-598- 02 6.59 Other Equipment - Materials 402-598- 02 0.43 Other Equipment - Materials 402-598- 02 25.64 Grounds - Materials 401-935- 08 8.92 HECK GEN 78274 TOTAL FOR FUND 1: 228.11 02/24/2023 GEN 78275 IEM ENERGY CONSULTANTS Development of RFP LM6000 402-554- 01 3,633.00 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 5/37 Amount Fund: 1 ELECTRIC Generator 41 Outside Services 402-554- 01 12.00 HECK GEN 78275 TOTAL FOR FUND 1: 3,645.00 02/24/2023 GEN 78276* INNOVATIVE OFFICE SOLUTIONS Office Supplies 401-921- 08 112.23 Office Supplies 401-921- 08 11.62 HECK GEN 78276 TOTAL FOR FUND 1: 123.85 02/24/2023 GEN 78277 IRBY TOOL & SAFETY Uniforms & Laundry 401-588- 02 145.58 02/24/2023 GEN 78278* JLR GARAGE DOOR SERVICE INC Grounds - Materials 401-935- 08 118.25 02/24/2023 GEN 78279 JOHNSTON, DAVE Cip - Residential 401-916- 07 200.00 02/24/2023 GEN 78280 JOY FAULKNER OVERPAYMENTS 142-000- 00 351.12 02/24/2023 GEN 782824 KURITA AMERICA INC BOILERSHIELD 355, BT0300-5 154-000- 00 282.15 Sales Tax Receivable - New 186-000- 00 27.01 FREIGHT 401-588- 02 110.66 HECK GEN 78282 TOTAL FOR FUND 1: 419.82 02/24/2023 GEN 78284*4 LEAGUE OF MN CITIES INS TRUST PREPAID INSURANCE 174-000- 00 117,116.40 WORKERS COMPENSATION 401-546- 01 779.64 HECK GEN 78284 TOTAL FOR FUND 1: 117,896.04 02/24/2023 GEN 782854 LOCATORS & SUPPLIES INC PAINT, LOCATING, AER-256 154-000- 00 599.04 PAINT, LOCATING, AER-247 154-000- 00 99. 84 Sales Tax Receivable - Replace 186-000- 00 54.93 FREIGHT 401-588- 02 99.99 HECK GEN 78285 TOTAL FOR FUND 1: 853.80 02/24/2023 GEN 78286 LYNDSAY FLATEN OVERPAYMENTS 142-000- 00 54.69 02/24/2023 GEN 78290 NERC Purchased Power 401-555- 02 4,440.02 02/24/2023 GEN 78291* PEDERSON, JARROD Cip - Residential 401-916- 07 200.00 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Description Fund: 1 ELECTRIC 02/24/2023 GEN 78292* PREMIUM WATERS INC 02/24/2023 GEN 78295* RELIANCE STANDARD LIFE -LIFE 02/24/2023 GEN 78296* RETTMANN, AMANDA 02/24/2023 GEN 78297 ROBERT NIEVES OR MAILEEN RIOS 02/24/2023 GEN 782984 RS AMERICAS, INC. 02/24/2023 GEN 78299 RUNNING'S SUPPLY INC 02/24/2023 GEN 78301 SAMUEL CHOY 02/24/2023 GEN 78302* SJF MATERIAL HANDLING INC 02/24/2023 GEN 78304* UIS/SOURCECORP 02/24/2023 GEN 78306*4 WEST CENTRAL SANITATION INC 02/27/2023 GEN 1353(E)4 AURAMARINE LTD Page 6/37 Account Dept Amount OFFICE SUPPLIES -BOTTLED WATER 401-921- 08 19. 88 LTD INSURANCE-80o ELEC 242-000- 00 1,632.72 LIFE INSURANCE-80o ELEC 242-000- 00 1,016.00 HECK GEN 78295 TOTAL FOR FUND 1: 2,648.72 Cip - Residential 401-916- 07 50.00 OVERPAYMENTS 142-000- 00 6.17 Blank panel - 2RU 107-362- 00 24.93 Blank panel - IORU 107-362- 00 80.45 FREIGHT 401-588- 02 22.00 HECK GEN 78298 TOTAL FOR FUND 1: 127.38 Uniforms & Laundry 401-550- 01 139.99 OVERPAYMENTS 142-000- 00 75.78 Racks, Teardrop, Standard Frame, 401-935- 08 195.93 Rack, Tear Drop Punch Style, Step 401-935- 08 734.72 Grounds - Materials 401-935- 08 0.03 HECK GEN 78302 TOTAL FOR FUND 1: 930.68 COLLECTION - MATERIALS 401-903- 06 1,937.78 GENERATOR 41 WATER & SEWER -INDUSTRIAL 401-547- 01 111.84 WASTE DISPOSAL-4TH AVE 401-550- 01 180.58 UTILITY ESP - WATER/WASTE 55/45- 401-930- 08 272.86 HECK GEN 78306 TOTAL FOR FUND 1: 565.28 THERMOMETER, INDICATOR, TEMP. AG00000, 154-000- 00 462.80 THERMOMETER, INDICATOR, TEMP. AG00000, 154-000- 00 497.56 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK Payee DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Description Account Dept Page 7/37 Amount Fund: 1 ELECTRIC FREIGHT AND EXCHANGE RATE DIFFERENCE 401-588- 02 107.03 HECK GEN 1353(E) TOTAL FOR FUND 1: 1,067.39 02/28/2023 GEN 1341(E)* ALERUS HEALTH INSURANCE 401-926- 08 399.00 03/01/2023 GEN 1342(E)* GUARDIAN DENTAL INSURANCE-80o ELEC 242-000- 00 3,675.16 DENTAL INSURANCE -COBRA 242-000- 00 457.01 HECK GEN 1342(E) TOTAL FOR FUND 1: 4,132.17 03/02/2023 GEN 1360(E)* PAY MENTECH collection - Materials 401-903- 06 2,136.97 03/03/2023 GEN 1359(E)* CITIZENS BANK Office Supplies 401-921- 08 91.58 03/07/2023 GEN 1344(E)4 ALERUS HEALTH CARE - J VAN MAREL 242-000- 00 5.00 HEALTH INSURANCE - HUNSTAD 401-580- 02 2, 927.56 HEALTH INSURANCE - OLSON 401-556- 03 393.92 HECK GEN 1344(E) TOTAL FOR FUND 1: 3,326.48 03/07/2023 GEN 1349(E) MISO Deferred Energy Cost - Miso 174-000- 00 4,980.98 03/07/2023 GEN 1350(E) MISO Deferred Energy Cost - Miso 174-000- 00 924.73 03/07/2023 GEN 7(S) KID EQUIPMENT Power Equipment - Materials 402-598- 02 457.41 Power Equipment - Materials 402-598- 02 (457.41) HECK GEN 7(S) TOTAL FOR FUND 1: 0.00 03/07/2023 GEN 78308*4 ACE HARDWARE Supplies 401-550- 01 8.54 Supplies 401-550- 01 125.21 Maintenance Other - Materials 402-554- 01 69.46 Maintenance Other - Materials 402-554- 01 1.49 Maintenance Other - Materials 402-554- 01 1.49 Maintenance Other - Materials 402-554- 01 42.74 Grounds - Materials 401-935- 08 69.44 HECK GEN 78308 TOTAL FOR FUND 1: 318.37 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 8/37 Amount Fund: 1 ELECTRIC 03/07/2023 GEN 78309* ALEJANDRO OR IAN AGUILAR DEP REFUND/APPLIED 235-000- 00 227.50 03/07/2023 GEN 78310* ARLYCE PETERSON DEP REFUND/APPLIED 235-000- 00 42.25 03/07/2023 GEN 78312* BAILEY HOECHST OR TRENTON HAMILTON DEP REFUND/APPLIED 235-000- 00 97.50 03/07/2023 GEN 78313* BENJAMIN JENUM DEP REFUND/APPLIED 235-000- 00 52.00 03/07/2023 GEN 78314* BLAKE JUREK DEP REFUND/APPLIED 235-000- 00 35.75 03/07/2023 GEN 78315* BOETTCHER, TROY Cip - Residential 401-916- 07 200.00 03/07/2023 GEN 78316*4 BORDER STATES ELECTRIC SUPPLY ELL, 1/0 (EXTENDED LENGTH) ELAST 167ELR 154-000- 00 2,037.00 BUSHING, WELL INSERT, 200A, COOPER 154-000- 00 372.72 INHIBITOR, OXIDE, DE-OX, 8 OR, ILSCO 154-000- 00 73.28 BULB, 150W, HIS LU150/55 HIS LAMP 44043 154-000- 00 175.08 TAPE, SUPER 33+ PROFESSIONAL GRADE 154-000- 00 104.20 ELL, 1/0, 15KV 1STR-1/OSOL, .70-.91, 154-000- 00 1,159.90 BUSHING, WELL INSERT, 200A, COOPER 154-000- 00 559. 08 CONNECTOR, 8 HOLE REMOVABLE "J" SP, 1 154-000- 00 1,157.08 PADLOCK, TRANSFORMER, STERLING 4019 154-000- 00 153.20 Sales Tax Receivable - New 186-000- 00 140.04 Sales Tax Receivable - New 186-000- 00 30.66 Sales Tax Receivable - New 186-000- 00 137.39 Sales Tax Receivable - New 186-000- 00 79.55 Sales Tax Receivable - New 186-000- 00 10.53 Line - Materials 401-581- 02 1,346.62 HECK GEN 78316 TOTAL FOR FUND 1: 7,536.33 03/07/2023 GEN 78317* BRENDAN TOMENES DEP REFUND/APPLIED 235-000- 00 45.50 03/07/2023 GEN 78319 CAMERON BEILKE OVERPAYMENTS 142-000- 00 12.34 03/07/2023 GEN 78320 CARLSON, DON Meetings & Travel - Expense (S 401-546- 01 125.17 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 9/37 Amount Fund: 1 ELECTRIC 03/07/2023 GEN 78322 CENTRAL HYDRAULICS Supplies 401-550- 01 66.98 03/07/2023 GEN 78324* CHRISTOPHER WENDT DEP REFUND/APPLIED 235-000- 00 162.50 03/07/2023 GEN 78325*4 CINTAS CORPORATION 4470 Uniforms & Laundry 401-550- 01 536.36 Uniforms & Laundry 401-550- 01 442.35 Uniforms & Laundry 401-550- 01 453.31 UNIFORMS & LAUNDRY 401-588- 02 308.11 UNIFORMS & LAUNDRY 401-588- 02 407.80 UNIFORMS & LAUNDRY 401-588- 02 299. 06 UNIFORMS & LAUNDRY 401-588- 02 211.83 HECK GEN 78325 TOTAL FOR FUND 1: 2,658.82 03/07/2023 GEN 78326*4 CITY OF HUTCHINSON VEHICLE/EQUIPMENT FUEL -POWER 401-550- 01 233.35 VEHICLES/EQUIPMENT FUEL-ELEC 401-588- 02 1,666.31 VEHICLES/EQUIPMENT FUEL-ADMIN 55/45 401-935- 08 51.26 HECK GEN 78326 TOTAL FOR FUND 1: 1,950.92 03/07/2023 GEN 78327 CODY HOUSE OVERPAYMENTS 142-000- 00 32.37 03/07/2023 GEN 78328* COLLIN SODERBERG DEP REFUND/APPLIED 235-000- 00 130.00 03/07/2023 GEN 78329 CORE & MAIN Elec MTR 2S CL200 240V Remote 107-370- 00 15,279.84 Meters (Boxes) 107-370- 00 0.16 HECK GEN 78329 TOTAL FOR FUND 1: 15,280.00 03/07/2023 GEN 78330* CROW RIVER CHIROPRACTIC DEP REFUND/APPLIED 235-000- 00 78.00 03/07/2023 GEN 78331 CRYSTAL FRATZKE OVERPAYMENTS 142-000- 00 10.29 03/07/2023 GEN 78332 DELMAR COMPANY Teadit NA1035 1/32"x59"x63" 401-550- 01 118.55 Teadit NA1035 1/16"x59"x63" 401-550- 01 155.90 HECK GEN 78332 TOTAL FOR FUND 1: 274.45 03/23/2023 08:54 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM 02/18/2023 - 03/22/2023 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Fund: 1 ELECTRIC 03/07/2023 GEN 78333* DENVER CHENEY DEP REFUND/APPLIED 235-000- 00 03/07/2023 GEN 78334 DESIGN ELECTRIC, INC Maintenance Other - Materials 402-554- 01 03/07/2023 GEN 78335* DYLAN VARPNESS DEP REFUND/APPLIED 235-000- 00 03/07/2023 GEN 78337* FENRICH AGENCY DEP REFUND/APPLIED 235-000- 00 DEP REFUND/APPLIED 235-000- 00 HECK GEN 78337 TOTAL FOR FUND 1: 03/07/2023 GEN 78338*4 GOPHER STATE ONE -CALL INC Line - Materials 401-581- 02 03/07/2023 GEN 78339 GREG BOYUM OVERPAYMENTS 142-000- 00 03/07/2023 GEN 78340* HAGER JEWELRY INC Breakroom/Recognition Banquet 401-926- 08 03/07/2023 GEN 78342 HER ENGINEERING INC Outside Services 402-554- 01 03/07/2023 GEN 78343* HUTCHFIELD SERVICES Grounds - Outside Services 401-935- 08 03/07/2023 GEN 78344* HUTCHINSON LEADER Cip - Marketing 401-916- 07 03/07/2023 GEN 78345*4 HUTCHINSON WHOLESALE SUPPLY CO Maintenance Other - Materials 402-554- 01 Power Equipment - Materials 402-598- 02 Power Equipment - Materials 402-598- 02 Power Equipment - Materials 402-598- 02 Power Equipment - Materials 402-598- 02 Other Equipment - Materials 402-598- 02 HECK GEN 78345 TOTAL FOR FUND 1: 03/07/2023 GEN 78346* INNOVATIVE OFFICE SOLUTIONS Office Supplies 401-921- 08 03/07/2023 GEN 78347* JAKE DEAL DEP REFUND/APPLIED 235-000- 00 Page 10/37 Amount 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Description Fund: 1 ELECTRIC 03/07/2023 GEN 78348 JAMES HAHN 03/07/2023 GEN 78349* JAMES LEAVECK 03/07/2023 GEN 78350 JASON BURLEY 03/07/2023 GEN 78351 JONAH REID 03/07/2023 GEN 78352 JONATHAN VARGAS SANCHEZ 03/07/2023 GEN 78353* JUAN SANTOS DIAZ 03/07/2023 GEN 78354* JUSTIN DOERING 03/07/2023 GEN 78355* KAEDEE KAY BERGQUIST 03/07/2023 GEN 78356* KELLY RAUCH OR AARON ALBRECHT 03/07/2023 GEN 78357 KELSEY OR TIMOTHY FETT 03/07/2023 GEN 78358* KELSY KNOBLOCH 03/07/2023 GEN 78359* KYLER RIEKE OR ARIEL GRISWOLD 03/07/2023 GEN 78360*4 LOCATORS & SUPPLIES INC 03/07/2023 GEN 78361* MARCO TECHNOLOGIES, LLC 03/07/2023 GEN 78362 MARISSA BONDERSON OR JEREMY 03/07/2023 GEN 78363 MATHESON TRI-GAS INC 03/07/2023 GEN 783644 MCC ENERGY SOLUTIONS, LLC Account Dept Page 11/37 Amount OVERPAYMENTS 142-000- 00 81.08 DEP REFUND/APPLIED 235-000- 00 48.75 OVERPAYMENTS 142-000- 00 82.00 OVERPAYMENTS 142-000- 00 34.27 OVERPAYMENTS 142-000- 00 101.43 DEP REFUND/APPLIED 235-000- 00 32.50 DEP REFUND/APPLIED 235-000- 00 113.75 DEP REFUND/APPLIED 235-000- 00 169.00 DEP REFUND/APPLIED 235-000- 00 58.50 OVERPAYMENTS 142-000- 00 107.31 DEP REFUND/APPLIED 235-000- 00 48.75 DEP REFUND/APPLIED 235-000- 00 104.00 SAFETY GLASSES, GRAY, SILVER MIRROR, 401-550- 01 47.80 SAFETY GLASSES, GRAY, SILVER MIRROR, 401-588- 02 47.80 HECK GEN 78360 TOTAL FOR FUND 1: 95.60 OFFICE SUPPLIES 401-921- 08 521.68 OVERPAYMENTS 142-000- 00 1.01 Generator 41 Chemicals 401-550- 01 187.66 I AM MANAGEMENT FEES 401-555- 02 3,900.00 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 12/37 Amount Fund: 1 ELECTRIC IAM USAGE FEES 401-556- 03 3,050.00 CHECK GEN 78364 TOTAL FOR FUND 1: 6,950.00 03/07/2023 GEN 783654 MIRATECH PUMP, CONDENSATE, CONVERSION KIT, 154-000- 00 555.99 DIAPHRAGM, TO SAMPLE GAS PUMP 154-000- 00 150.79 VALVES & GASKET TO SAMPLE GAS PUMP 154-000- 00 81.91 CELL, NO -MEASURING, 0-100 PPM 154-000- 00 1,328.78 SENSOR, TEMPERATURE TEB600 154-000- 00 1,017.45 SENSOR, TEMPERATURE TEB600 154-000- 00 4, 069. 80 FREIGHT 401-588- 02 67.33 FREIGHT 401-588- 02 25.04 FREIGHT 401-588- 02 100.14 CHECK GEN 78365 TOTAL FOR FUND 1: 7,397.23 03/07/2023 GEN 78366* MORGAN KIRCHOFF GET REFUND/APPLIED 235-000- 00 48.75 03/07/2023 GEN 78367* NEPHEW, SHANE Cip - Residential 401-916- 07 200.00 03/07/2023 GEN 78368* NICHOLAS KUNTZ GET REFUND/APPLIED 235-000- 00 48.75 03/07/2023 GEN 78369* NICHOLAS TCHIDA GET REFUND/APPLIED 235-000- 00 78.00 03/07/2023 GEN 78370 NICOLE BRISENO OVERPAYMENTS 142-000- 00 34.30 03/07/2023 GEN 78371 NINOSHKA LOPEZ OR YAVIEL MELENDEZ OVERPAYMENTS 142-000- 00 31.01 03/07/2023 GEN 78374* NUVERA TELEPHONE 401-921- 08 1,902.00 03/07/2023 GEN 78375*4 OXYGEN SERVICE COMPANY INC Supplies 401-550- 01 85.63 Supplies 401-550- 01 71.09 CHECK GEN 78375 TOTAL FOR FUND 1: 156.72 03/07/2023 GEN 78376 PAETER WEIKUM OVERPAYMENTS 142-000- 00 220.63 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 13/37 Amount Fund: 1 ELECTRIC 03/07/2023 GEN 78377* PIERCE LUEDERS DEP REFUND/APPLIED 235-000- 00 65.00 03/07/2023 GEN 78378*4 PRO AUTO & TRANSMISSION REPAIR Vehicles - Material 402-598- 02 46.72 Vehicles - Material 402-598- 02 143.30 HECK GEN 78378 TOTAL FOR FUND 1: 190.02 03/07/2023 GEN 78379 QUINTON FISHER OR BRYN BLANCHET OVERPAYMENTS 142-000- 00 41.40 03/07/2023 GEN 78380* REBEKAH TAYLOR DEP REFUND/APPLIED 235-000- 00 260.00 03/07/2023 GEN 78381* SANDRA OR KEVIN ASHBY DEP REFUND/APPLIED 235-000- 00 178.75 03/07/2023 GEN 78383 SETH WUOLLET OVERPAYMENTS 142-000- 00 13.64 OVERPAYMENTS 142-000- 00 86. 12 HECK GEN 78383 TOTAL FOR FUND 1: 99.76 03/07/2023 GEN 78384* SHRED RIGHT OFFICE SUPPLIES -SHREDDING SERVICES 401-921- 08 15.24 03/07/2023 GEN 78386* STANDARD PRINTING & MAILING OFFICE SUPPLIES 401-921- 08 8.18 03/07/2023 GEN 78387 STATE OF MINNESOTA Regulatory Expenses 401-928- 08 852.58 03/07/2023 GEN 78388 STEVEN OR DENISE KING OVERPAYMENTS 142-000- 00 317.33 03/07/2023 GEN 78389* TARA SHONERD DEP REFUND/APPLIED 235-000- 00 130.00 03/07/2023 GEN 78390* TERYN WILSON OR TAYAH LEE DEP REFUND/APPLIED 235-000- 00 110.50 03/07/2023 GEN 78391* TRAVIS COPE DEP REFUND/APPLIED 235-000- 00 52.00 03/07/2023 GEN 78392 TRENCHERS PLUS INC Power Equipment - Materials 402-598- 02 223.98 Power Equipment - Materials 402-598- 02 (39.29) HECK GEN 78392 TOTAL FOR FUND 1: 184.69 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 14/37 Amount Fund: 1 ELECTRIC 03/07/2023 GEN 78394* UNITED PARCEL SERVICE MAIL SERVICES - UPS, FEDEX 401-921- 08 117.56 03/07/2023 GEN 78395 VAN HOUTEN, JOSH Meetings & Travel - Expense (S 401-546- 01 375.51 03/07/2023 GEN 78396* VERIZON WIRELESS TELEPHONE 401-921- 08 1,036.69 03/07/2023 GEN 78397* VITA NOVA LLC DEP REFUND/APPLIED 235-000- 00 65.00 03/07/2023 GEN 78398 WAYTEK Hook-up wire. 18ga. 107-362- 00 222.16 03/07/2023 GEN 78399 WEBER, DARLENE Cip - Residential 401-916- 07 25.00 03/10/2023 GEN 1364(E) ALERUS HEALTH CARE - BADKE 242-000- 00 32.00 03/13/2023 GEN 1365(E) ALERUS HEALTH CARE - VAN MAREL 242-000- 00 501.84 03/14/2023 GEN 1351(E) MISO Deferred Energy Cost - Miso 174-000- 00 23,477.10 03/14/2023 GEN 1352(E) MISO Deferred Energy Cost - Miso 174-000- 00 933.51 03/14/2023 GEN 1361(E) MISO SCHEDULE 1 401-565- 03 5,221.67 SCHEDULE 2 401-565- 03 738.51 SCHEDULE 10 401-565- 03 2,129.47 SCHEDULE 26E 401-565- 03 6.27 SCHEDULE 26 401-565- 03 6,943.32 SCHEDULE 26A 401-565- 03 54.81 HECK GEN 1361(E) TOTAL FOR FUND 1: 15,094.05 03/14/2023 GEN 1362(E) MISO SCHEDULE 26 401-565- 03 13,676.09 SCHEDULE 26A 401-565- 03 31,400.92 SCHEDULE 26E 401-565- 03 16.47 HECK GEN 1362(E) TOTAL FOR FUND 1: 45,093.48 03/14/2023 GEN 1363(E) MISO SCHEDULE 10 401-565- 03 4,465.35 03/16/2023 GEN 1345(E)*4 VISA Sales Tax Receivable - Replace 186-000- 00 195.14 Sales Tax Receivable - Replace 186-000- 00 190.17 03/23/2023 08:54 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 15/37 User: JMartig CHECK DATE FROM 02/18/2023 - 03/22/2023 BE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC Sales Tax Receivable - Replace 186-000- 00 11.84 Sales Tax Receivable - Replace 186-000- 00 2.48 Sales Tax Receivable - Replace 186-000- 00 12.09 Sales Tax Receivable - Replace 186-000- 00 5.98 Sales Tax Receivable - Replace 186-000- 00 136.60 Sales Tax Receivable - Replace 186-000- 00 108.22 Sales Tax Receivable - Replace 186-000- 00 5.71 Sales Tax Receivable - Replace 186-000- 00 1.12 Sales Tax Receivable - Replace 186-000- 00 5.07 Sales Tax Receivable - Replace 186-000- 00 (3.35) Sales Tax Receivable - Replace 186-000- 00 28.49 Sales Tax Receivable - Replace 186-000- 00 5.74 Supplies 401-550- 01 15.08 Supplies 401-550- 01 56.00 Supplies 401-550- 01 6.88 Supplies 401-550- 01 11.04 Permits And Rent 401-550- 01 185.23 Permits And Rent 401-550- 01 102.15 Permits And Rent 401-550- 01 102.15 Maint Power Prod Plant - Build 402-554- 01 89.49 Maint Power Prod Plant - Build 402-554- 01 523.09 Maint Power Prod Plant - Build 402-554- 01 55.60 Generator 41 Material 402-554- 01 150.34 Generator 41 Material 402-554- 01 2,414.90 Generator 41 Material 402-554- 01 2,477.98 Generator 41 Material 402-554- 01 31.44 Generator 41 Material 402-554- 01 (42.57) Generator 41 Material 402-554- 01 1,734.61 Generator 41 Material 402-554- 01 64.35 Generator 41 Material 402-554- 01 14.19 Generator 41 Material 402-554- 01 72.52 Generator 41 Material 402-554- 01 1,374.16 Generator 41 Material 402-554- 01 75.92 Generator 41 Material 402-554- 01 153.49 Generator 41 Material 402-554- 01 535.89 Generator 41 Material 402-554- 01 386.32 Generator 46 Material 402-554- 01 29.83 03/23/2023 08:54 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 16/37 User: JMartig CHECK DATE FROM 02/18/2023 - 03/22/2023 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC Generator 46 Material 402-554- 01 244.38 Generator 47 Material 402-554- 01 29.84 Accessory Plant - Materials 402-554- 01 106.04 Maintenance Other - Materials 402-554- 01 23.51 Maintenance Other - Materials 402-554- 01 72.42 Maintenance Other - Materials 402-554- 01 633.43 Uniforms & Laundry 401-588- 02 39.99 Uniforms & Laundry 401-588- 02 39.99 Uniforms & Laundry 401-588- 02 (39.99) Uniforms & Laundry 401-588- 02 149.99 Breakroom/Recognition Banquet 401-926- 08 18.80 Breakroom/Recognition Banquet 401-926- 08 11.78 Breakroom/Recognition Banquet 401-926- 08 24.54 Breakroom/Recognition Banquet 401-926- 08 19.11 Breakroom/Recognition Banquet 401-926- 08 19.81 Training - Expense 401-930- 08 144.82 Dues/Membership Expense 401-930- 08 (16.17) HECK GEN 1345(E) TOTAL FOR FUND 1: 12,847.67 03/20/2023 GEN 1355(E)*4 BP CANANDA ENERGY SOLUTIONS GENERATOR 41 NATURAL GAS 401-547- 01 920.45 GENERATOR 41 NATURAL GAS 401-547- 01 16,540.IS Generator 41 Aux Boiler 401-547- 01 858.92 GENERATOR 45 NATURAL GAS 401-547- 01 141.61 GENERATOR 45 NATURAL GAS 401-547- 01 3,179.05 GENERATOR 46 NATURAL GAS 401-547- 01 172.58 GENERATOR 46 NATURAL GAS 401-547- 01 3,290.49 Generator 47 Natural Gas 401-547- 01 172.58 Generator 47 Natural Gas 401-547- 01 2,320.50 Generator 49 Natural Gas 401-547- 01 442.53 Utility Expenses - Water/Waste 401-930- 08 4,762.49 HECK GEN 1355(E) TOTAL FOR FUND 1: 32,801.38 03/20/2023 GEN 1356(E)* INVOICE CLOUD collection - Materials 401-903- 06 2,360.56 03/20/2023 GEN 1357(E) MRES Purchased Power 401-555- 02 909,957.53 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Description Fund: 1 ELECTRIC 03/21/2023 GEN 1354(E)* MINNESOTA REVENUE 03/21/2023 GEN 1366(E) ALERUS 03/22/2023 GEN 78404*4 ACE HARDWARE 03/22/2023 GEN 78405 ARLT, JOHN 03/22/2023 GEN 78407* BEATTY, THEODORE 03/22/2023 GEN 78408 BLAKE HUWE 03/22/2023 GEN 78409*4 BORDER STATES ELECTRIC SUPPLY Account Dept Page 17/37 Amount STATE SALES TAX 242-000- 00 58,325.00 City Sales Tax 242-000- 00 4,216.00 COUNTY SALES TAX 242-000- 00 4,216.00 HECK GEN 1354(E) TOTAL FOR FUND 1: 66,757.00 HEALTH INSURANCE - B OLSON 401-556- 03 3,581.08 Sales Tax Receivable - Replace 186-000- 00 0.49 Accessory Plant - Materials 402-554- 01 7.18 Maintenance Other - Materials 402-554- 01 14.95 Maintenance Other - Materials 402-554- 01 9.18 Maintenance Other - Materials 402-554- 01 6.40 Materials 401-588- 02 2.97 HECK GEN 78404 TOTAL FOR FUND 1: 41.17 Cip - Residential 401-916- 07 25.00 Cip - Residential 401-916- 07 25.00 OVERPAYMENTS 142-000- 00 72.27 TAPE, 33+SUPER-1-1/2X36YD 154-000- 00 35.90 TAPE, 88-SUPER-1-1/2" X 36YD 154-000- 00 117.60 FUSE, SMU-20, 140K, 702140 154-000- 00 1,668.30 TAPE, HIGH VOLTAGE BUS, 2" WIDE x 25 154-000- 00 970.88 FUSE, SMU-20, 140K, 702140 154-000- 00 1,334.64 FUSE, SMU-20, 140K, 702140 154-000- 00 1,334.64 BULB, 150W, HIS LU150/55 HIS LAMP 44043 154-000- 00 175.08 BULB, HIS LU, 250W, 85377 154-000- 00 199.80 WIPES, CLEANING, GRIM -AWAY, DISPENSER, 154-000- 00 92.22 Sales Tax Receivable - New 186-000- 00 125.26 Sales Tax Receivable - New 186-000- 00 66.75 Sales Tax Receivable - New 186-000- 00 91.76 Sales Tax Receivable - New 186-000- 00 91.76 Sales Tax Receivable - New 186-000- 00 32.11 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 18/37 Amount Fund: 1 ELECTRIC CHECK GEN 78409 TOTAL FOR FUND 1: 6,336.70 03/22/2023 GEN 78410 CARLY'S SHOE STORE Uniforms & Laundry 401-588- 02 224.99 03/22/2023 GEN 7841214 CINTAS CORPORATION 4470 Uniforms & Laundry 401-550- 01 395.71 Uniforms & Laundry 401-550- 01 458.81 Uniforms & Laundry 401-550- 01 325.30 UNIFORMS & LAUNDRY 401-588- 02 142.60 UNIFORMS & LAUNDRY 401-588- 02 142.60 UNIFORMS & LAUNDRY 401-588- 02 142.50 CHECK GEN 78412 TOTAL FOR FUND 1: 1,607.52 03/22/2023 GEN 78413*4 CITY OF HUTCHINSON Generator 41 Water & Sewer 401-547- 01 574.17 Generator 41 Water & Sewer 401-547- 01 373.86 Waste Disposal 401-550- 01 377.81 Waste Disposal 401-550- 01 32.18 Waste Disposal 401-550- 01 563.56 Line - Materials 402-594- 02 145.81 IT ADMIN AND SUPPORT 75/25 401-921- 08 17,799. 96 Utility Expenses - Water/Waste 401-930- 08 12.40 Utility Expenses - Water/Waste 401-930- 08 533.10 CHECK GEN 78413 TOTAL FOR FUND 1: 20,412.85 03/22/2023 GEN 78414 CONTEC SYSTEMS Add 8 parameters GAS P2021-01-01 C041 402-554- 01 4,500.00 03/22/2023 GEN 78415 DAKOTA SUPPLY GROUP TRANS, 25 KVA PAD 1 PHASE, 120/240 154-000- 00 14,987.75 TRANS, 37 KVA PAD 1 PHASE, 120/240 154-000- 00 12,749.06 CHECK GEN 78415 TOTAL FOR FUND 1: 27,736.81 03/22/2023 GEN 78416 DAWN HOWE OVERPAYMENTS 142-000- 00 18.15 03/22/2023 GEN 78417 DESIGN ELECTRIC, INC STATION EQUIPMENT (SWITCHGEAR, 107-362- 00 344.83 03/22/2023 GEN 78418 DGR ENGINEERING Plant 41 Relay and RTU Upgrades 107-362- 00 122.00 PLANT 41 RELAY AND RTU UPGRADES 107-362- 00 18.00 CHECK GEN 78418 TOTAL FOR FUND 1: 140.00 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 19/37 Amount Fund: 1 ELECTRIC 03/22/2023 GEN 78419 DOLLAR GENERAL 22218 Cip- Commercial 401-916- 07 1,914.57 03/22/2023 GEN 78421* FIRST CHOICE FOOD & BEVERAGE BREAKROOM/RECOGNITION BANQUET 401-926- 08 303.75 03/22/2023 GEN 784234 FS3 INC BATTERY PACK, DRILL HEAD, SIZE C, 2 154-000- 00 88.50 Sales Tax Receivable - New 186-000- 00 6.81 FREIGHT 401-588- 02 10.55 HECK GEN 78423 TOTAL FOR FUND 1: 105.86 03/22/2023 GEN 78424 GOODIN COMPANY Accessory Plant - Materials 402-554- 01 86.41 Accessory Plant - Materials 402-554- 01 182.61 HECK GEN 78424 TOTAL FOR FUND 1: 269.02 03/22/2023 GEN 78425 GREAT RIVER ENERGY TRANSMISSION EXPENSE 401-565- 03 135,756.06 03/22/2023 GEN 78427* HEALTH PARTNERS HEALTH INSURANCE-85o ELEC 242-000- 00 49,016.33 HEALTH INSURANCE -COBRA 242-000- 00 1,839.10 HECK GEN 78427 TOTAL FOR FUND 1: 50,855.43 03/22/2023 GEN 78428* HILLYARD/HUTCHINSON Grounds - Materials 401-935- 08 295.64 Grounds - Materials 401-935- 08 14.00 HECK GEN 78428 TOTAL FOR FUND 1: 309.64 03/22/2023 GEN 78429* INGLIS, TOM Cip - Residential 401-916- 07 200.00 03/22/2023 GEN 78430 JASMINE ULRICH OVERPAYMENTS 142-000- 00 217.97 03/22/2023 GEN 784314 JOHN HENRY FOSTER KIT, JORC PURO WHITE, JORC 95092 154-000- 00 233.33 KIT, JORC PURO CHARCOAL, JORC 95093 154-000- 00 150.00 Sales Tax Receivable - New 186-000- 00 34.30 Sales Tax Receivable - Replace 186-000- 00 69.43 QUI 1848 Gasket 2024708600 402-554- 01 23.88 QUI 7271X04 Valve AY Old 7271X 402-554- 01 147.84 QUI 7277X Valve AY 402-554- 01 195.93 03/23/2023 08:54 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 20/37 User: JMartig CHECK DATE FROM 02/18/2023 - 03/22/2023 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC QUI 6682 Cover PLT LP.02 4 2024716700 402-554- 01 13.74 QUI 1852 Gasket 2024708800 402-554- 01 5.74 QUI 7532 Brass Piston 402-554- 01 66.74 QUI 7483X 402-554- 01 224.16 QUI 40192 AY Body Unloader 2021104701 402-554- 01 175.25 FREIGHT 401-588- 02 28.51 FREIGHT 401-588- 02 52.19 HECK GEN 78431 TOTAL FOR FUND 1: 1,421.04 03/22/2023 GEN 784324 KURITA AMERICA INC BOILERSHIELD 355, BT0300-5 154-000- 00 282.15 RLT4791 154-000- 00 254.00 Sales Tax Receivable - New 186-000- 00 44.68 Sales Tax Receivable - Replace 186-000- 00 87.10 76-0042 SDI MixedDebl 3.6CF 402-554- 01 600.00 68-1513 Tee, Light Body 1" 402-554- 01 45.00 27-3922 Light, Hilite, 115VAC/12VDC 402-554- 01 25.00 38-0132 Hose 32" Tank -inlet 90 Series 402-554- 01 90.00 38-0131 Hose 32" Tank -outlet 90 Series 402-554- 01 80.00 38-0130 Hose 32" Tank -tank 90 Series 402-554- 01 65.00 27-3923 Light, Hylite, Silent,Quall 402-554- 01 185.00 FREIGHT 401-588- 02 113.80 FREIGHT 401-588- 02 176.81 HECK GEN 78432 TOTAL FOR FUND 1: 2,048.54 03/22/2023 GEN 78433 KYLE ZIEHL OVERPAYMENTS 142-000- 00 30.95 03/22/2023 GEN 78434 KYLEE FISCHER OVERPAYMENTS 142-000- 00 100.03 03/22/2023 GEN 78435 LEAGUE OF MN CITIES INS TRUST WORKERS COMPENSATION 401-580- 02 1,720.36 03/22/2023 GEN 78436 MAREN WARNER OVERPAYMENTS 142-000- 00 37.50 03/22/2023 GEN 78438 MICHAEL CROWE OF ELISA BURGSTAHLER OVERPAYMENTS 142-000- 00 86.99 03/22/2023 GEN 78439 MIDWEST OVERHEAD CRANE Outside Services 402-554- 01 2,497.61 03/22/2023 GEN 78441 MINNESOTA DEPARTMENT OF COMMERCE Doc - Cip Assessment 401-916- 07 5,072.39 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 21/37 Amount Fund: 1 ELECTRIC 03/22/2023 GEN 7844314 NORTHERN STATES SUPPLY INC GRINDING WHEEL, 4 1/2" X .045" X 7/8" 154-000- 00 116.95 Sales Tax Receivable - New 186-000- 00 8.87 Maintenance Other - Materials 402-554- 01 39.33 Line - Materials 401-581- 02 35.23 FREIGHT 401-588- 02 12.02 HECK GEN 78443 TOTAL FOR FUND 1: 212.40 03/22/2023 GEN 78444 O'REILLY AUTOMOTIVE INC Power Equipment - Materials 402-598- 02 138.93 03/22/2023 GEN 784454 OXYGEN SERVICE COMPANY INC WELDING ROD, 3/32", SP+, 6010, 50LBS 154-000- 00 281.73 Supplies 401-550- 01 33.72 Supplies 401-550- 01 86.03 FUEL SURCHARGE 401-588- 02 13.00 HECK GEN 78445 TOTAL FOR FUND 1: 414.48 03/22/2023 GEN 78447* PREMIUM WATERS INC OFFICE SUPPLIES -BOTTLED WATER 401-921- 08 24.00 03/22/2023 GEN 784484 PROCHASKA LLC CHLOR 125 (SANI-CHLOR) 154-000- 00 1,127.16 Sales Tax Receivable - Replace 186-000- 00 84.68 FREIGHT 401-588- 02 104.53 HECK GEN 78448 TOTAL FOR FUND 1: 1,316.37 03/22/2023 GEN 78449 KID EQUIPMENT Power Equipment - Materials 402-598- 02 2,634.79 Power Equipment - Materials 402-598- 02 (165.50) HECK GEN 78449 TOTAL FOR FUND 1: 2,469.29 03/22/2023 GEN 78450* RELIANCE STANDARD LIFE -LIFE LTD INSURANCE-80o ELEC 242-000- 00 1,632.72 LIFE INSURANCE-80o ELEC 242-000- 00 1,021.60 HECK GEN 78450 TOTAL FOR FUND 1: 2,654.32 03/22/2023 GEN 784514 RS AMERICAS, INC. RELAY, SOCKET, 11 PIN, SCREW TERMINAL 154-000- 00 40.39 RELAY, E-MECH, GEN-PURP, 3PDT, 154-000- 00 144.00 CONTACT BLOCK, NORMALLY CLOSED, PANEL 154-000- 00 16.88 FREIGHT 401-588- 02 15.00 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 22/37 Amount Fund: 1 ELECTRIC HECK GEN 78451 TOTAL FOR FUND 1: 216.27 03/22/2023 GEN 78452 RUNNING'S SUPPLY INC Other Equipment - Materials 402-598- 02 54.95 03/22/2023 GEN 78455 SAMANTHA HOLT OVERPAYMENTS 142-000- 00 81.15 03/22/2023 GEN 78456 SARAH PAULSON OVERPAYMENTS 142-000- 00 81.59 03/22/2023 GEN 78457 SCHAEFER, JAMES Cip - Residential 401-916- 07 500.00 03/22/2023 GEN 78458 SCHROEDER, JEFF Meetings & Travel - Expense (S 401-546- 01 269.20 03/22/2023 GEN 784594 T & R ELECTRIC SUPPLY CO INC TRANS, 75 KVA PAD, 3PH 208/120 154-000- 00 8,750.00 Sales Tax Receivable - New 186-000- 00 601.56 FUEL SURCHARGE 401-588- 02 21.17 Transformer - Materials 402-595- 02 (300.00) HECK GEN 78459 TOTAL FOR FUND 1: 9,072.73 03/22/2023 GEN 78460 TK ELEVATOR CORPORATION Outside Services 402-554- 01 315.00 03/22/2023 GEN 78461* UIS/SOURCECORP COLLECTION - MATERIALS 401-903- 06 1,959.05 03/22/2023 GEN 78462* UNITED PARCEL SERVICE MAIL SERVICES - UPS, FEDEX 401-921- 08 301.47 03/22/2023 GEN 78463 UPENDBAKUMAR PATEL OVERPAYMENTS 142-000- 00 84.54 03/22/2023 GEN 784654 WARTSILA OF NORTH AMERICA, INC GASKET, MULTIDUCT BASE, 200 025 154-000- 00 453.80 O-RING, MAIN GAS VALVE, 50.47*2.62, 164 154-000- 00 152.25 KIT, BOLT FOR MULTIDUCT, 200 420 154-000- 00 5,891.40 KIT, CYLINDER HEAD WITH STARTING VALVE 154-000- 00 8,853.00 BOLT, SCREW, EXHAUST, 200 009 154-000- 00 3,896.52 NUT, EXHAUST, 200 Oil 154-000- 00 604.20 SEALING, RING, EXHAUST, 200 028 154-000- 00 774.80 GASKET, EXHAUST, 200 029 154-000- 00 1,432.48 O-RING, MULTI DUCT TO COOLING WATER 154-000- 00 31.80 RING, SEALING, A27*32, 350815 154-000- 00 7.86 O-RING, 88.62*1.78, 164 028 154-000- 00 60.90 O-RING, 88.57*2.62, 164 094 154-000- 00 62.44 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee Fund: 1 ELECTRIC 03/22/2023 GEN 784664 WAYTEK 03/22/2023 GEN 78467 03/22/2023 GEN 78468 CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Description WENDROTH HOMES WESCO RECEIVABLES CORP 03/22/2023 GEN 7846914 WEST CENTRAL SANITATION INC 03/22/2023 GEN 78470 WORDEN, STACY 03/22/2023 GEN 784724 ZIEGLER POWER SYSTEMS Account Dept Page 23/37 Amount Sales Tax Receivable - Replace 186-000- 00 44.38 Sales Tax Receivable - Replace 186-000- 00 1,604.84 FREIGHT 401-588- 02 39.50 FREIGHT 401-588- 02 1,727.71 HECK GEN 78465 TOTAL FOR FUND 1: 25,637.88 BUTT CONNECTOR. 22-18 AWG, 430760 154-000- 00 1.00 CLOSED END CONNECTOR. 22-16 AWG 154-000- 00 7.80 CLOSED END CONNECTOR. 18-16 AWG 154-000- 00 7.40 RING TERMINAL. 12-10 AWG, 432702 154-000- 00 21.20 RING TERMINAL, 16-14 AWG, 410, 31703 154-000- 00 6.95 RING TERMINAL, 16-14 AWG, 1/4", 31704 154-000- 00 7.55 RING TERMINAL, 12-10 AWG, 1/4", 32703 154-000- 00 11.00 RING TERMINAL, 12-10 AWG, 3/8", 32705 154-000- 00 11.70 SHIPPING 401-588- 02 17.37 Materials 401-588- 02 8.53 HECK GEN 78466 TOTAL FOR FUND 1: 100.50 OVERPAYMENTS 142-000- 00 188.43 ABB TEST SWITCH 107-362- 00 1,520.00 Sales Tax Receivable - Replace 186-000- 00 104.50 HECK GEN 78468 TOTAL FOR FUND 1: 1,624.50 GENERATOR 41 WATER & SEWER -INDUSTRIAL 401-547- 01 110.94 WASTE DISPOSAL-4TH AVE 401-550- 01 179.11 UTILITY ESP - WATER/WASTE 55/45- 401-930- 08 270.66 HECK GEN 78469 TOTAL FOR FUND 1: 560.71 Cip - Residential 401-916- 07 25.00 LEVER, 467293-014 154-000- 00 472.50 JOINT, AXIAL EXPANSION, 347218-007 154-000- 00 3,175.00 FREIGHT 401-588- 02 40.75 HECK GEN 78472 TOTAL FOR FUND 1: 3,688.25 03/23/2023 08:54 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 24/37 User: JMartig CHECK DATE FROM 02/18/2023 - 03/22/2023 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC Total for fund 1 ELECTRIC 3,204,091.15 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Description Fund: 2 GAS 02/22/2023 GEN 1336(E)* MINNESOTA REVENUE 02/24/2023 GEN 1333(E)*4 BP CANANDA ENERGY SOLUTIONS 02/24/2023 GEN 1337(E)*4 BP CANANDA ENERGY SOLUTIONS 02/24/2023 GEN 78246*4 ACE HARDWARE 02/24/2023 GEN 78248* AMERICAN PAYMENT CENTERS INC 02/24/2023 GEN 78251 BETKER, KRS 02/24/2023 GEN 78252*4 BORDER STATES ELECTRIC SUPPLY 02/24/2023 GEN 78254 BROWN COUNTY RURAL ELECTRIC Account Dept Page 25/37 Amount State Sales Tax 242-000- 00 23,578.00 City Sales Tax 242-000- 00 1,674.00 COUNTY SALES TAX 242-000- 00 1,674.00 HECK GEN 1336(E) TOTAL FOR FUND 2: 26,926.00 GAS FOR RETAIL 401-807- 04 3,385.40 GAS FOR RETAIL 401-807- 04 129,463.79 3M 401-807- 04 532,124.16 HTI 401-807- 04 68,119.09 UNG 401-807- 04 8,834.85 BROWNTON 401-807- 04 19,690.40 Utility Expenses - Water/Waste 401-930- 08 4,001.96 HECK GEN 1337(E) TOTAL FOR FUND 2: 762,234.25 METERS AND ALL FITTINGS 107-381- 00 14.50 Materials 401-874- 04 12.79 Public Awareness - Material 401-874- 04 28.40 Public Awareness - Material 401-874- 04 316.20 Public Awareness - Material 401-874- 04 6.41 Materials 402-892- 04 0.34 HECK GEN 78246 TOTAL FOR FUND 2: 378.64 BOX RENTAL 401-903- 06 41.84 Cip - Residential 401-916- 07 650.00 VALVE BOX, 6" WIDTH WITH 12" BELL, 154-000- 00 677.70 PIPE, 3/4" IPS, 2406 MDPE, DR 11, 500 154-000- 00 2,964.50 SALES TAX 401-874- 04 46.59 SALES TAX 401-874- 04 205.57 HECK GEN 78252 TOTAL FOR FUND 2: 3,894.36 Utilities (Electric, Satellite 401-856- 05 211.80 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 26/37 Amount Fund: 2 GAS 02/24/2023 GEN 78255* CARTER, JEREMY J Training - Expense 401-930- 08 34.72 02/24/2023 GEN 78257*4 CINTAS CORPORATION 4470 UNIFORMS & LAUNDRY 401-880- 04 269. 94 UNIFORMS & LAUNDRY 401-880- 04 162.60 HECK GEN 78257 TOTAL FOR FUND 2: 432.54 02/24/2023 GEN 78258*4 CITY OF HUTCHINSON IT ADMIN AND SUPPORT 75/25 401-921- 08 1,363.74 Utility Expenses - Water/Waste 401-930- 08 10.15 Utility Expenses - Water/Waste 401-930- 08 426.48 HECK GEN 78258 TOTAL FOR FUND 2: 1,800.37 02/24/2023 GEN 78264* EHLERS & ASSOCIATES, INC REGULATORY EXPENSES 401-928- 08 225.00 02/24/2023 GEN 78266* FIRST CHOICE FOOD & BEVERAGE BREAKROOM/RECOGNITION BANQUET 401-926- 08 115.00 02/24/2023 GEN 78269 FRANK MADDEN & ASSOCIATES Legal Services 401-923- 08 120.00 02/24/2023 GEN 78271 GROEBNER & ASSOCIATES INC 1000-5, EZ Jack Plunger, HD 17.5 4 401-874- 04 1,008.26 Materials 401-874- 04 0.01 Materials 401-874- 04 111.00 HECK GEN 78271 TOTAL FOR FUND 2: 1,119.27 02/24/2023 GEN 78273* HEALTH PARTNERS HEALTH INSURANCE-15o GAS 242-000- 00 8,359.33 02/24/2023 GEN 78274*4 HUTCHINSON WHOLESALE SUPPLY CO Vehicles - Material 402-895- 04 7.89 Grounds - Materials 401-935- 08 8.92 HECK GEN 78274 TOTAL FOR FUND 2: 16.81 02/24/2023 GEN 78276* INNOVATIVE OFFICE SOLUTIONS Office Supplies 401-921- 08 37.41 Office Supplies 401-921- 08 3.87 HECK GEN 78276 TOTAL FOR FUND 2: 41.28 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Description Fund: 2 GAS 02/24/2023 GEN 78278* JLR GARAGE DOOR SERVICE INC 02/24/2023 GEN 78281 KOENIG, ARNOLD 02/24/2023 GEN 78283 KURTH WELDING & REPAIR 02/24/2023 GEN 78284*4 LEAGUE OF MN CITIES INS TRUST 02/24/2023 GEN 78287 MAIERS, MATTHEW 02/24/2023 GEN 78288 MAIERS, MATTHEW 02/24/2023 GEN 78289 MCLEOD COOPERATVIE POWER ASSN 02/24/2023 GEN 78291* PEDERSON, JARROD 02/24/2023 GEN 78292* PREMIUM WATERS INC 02/24/2023 GEN 782934 REDLINE SYSTEMS, INC 02/24/2023 GEN 78294 REINERT, LEROY 02/24/2023 GEN 78295* RELIANCE STANDARD LIFE -LIFE 02/24/2023 GEN 78296* RETTMANN, AMANDA Account Dept Page 27/37 Amount Misc Other - Materials 401-935- 08 96.75 Cip - Residential 401-916- 07 25.00 SERVICES 107-380- 00 2,837.25 SERVICES 107-380- 00 2,437.50 HECK GEN 78283 TOTAL FOR FUND 2: 5,274.75 PREPAID INSURANCE 174-000- 00 76, 722.60 Public Awareness - Material 401-874- 04 58.95 Training - Expense 401-870- 04 72.06 UTILITIES (ELECTRIC, SATELLITE -PIPELINE 401-856- 05 79.03 UTILITIES (ELECTRIC, SATELLITE-MCLEOD 401-856- 05 38.66 HECK GEN 78289 TOTAL FOR FUND 2: 117.69 Cip - Residential 401-916- 07 350.00 OFFICE SUPPLIES -BOTTLED WATER 401-921- 08 6.62 BRACKET, WALL MT RISER, 3/4", HUC DWG 154-000- 00 10,172.50 SALES TAX 401-874- 04 699.36 HECK GEN 78293 TOTAL FOR FUND 2: 10,871.86 Cip - Residential 401-916- 07 350.00 LTD INSURANCE-20o GAS 242-000- 00 408.19 LIFE INSURANCE-20o GAS 242-000- 00 254.00 HECK GEN 78295 TOTAL FOR FUND 2: 662.19 Cip - Residential 401-916- 07 25.00 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Description Fund: 2 GAS 02/24/2023 GEN 78300 RUSCH, JUSTIN 02/24/2023 GEN 78302* SJF MATERIAL HANDLING INC 02/24/2023 GEN 78303 SOUTH CENTRAL ELECTRIC ASS'N 02/24/2023 GEN 78304* UIS/SOURCECORP 02/24/2023 GEN 78305 VERIZON WIRELESS 02/24/2023 GEN 78306*4 WEST CENTRAL SANITATION INC 02/24/2023 GEN 78307 WSB 02/28/2023 GEN 1341(E)* ALERUS 03/01/2023 GEN 1342(E)* GUARDIAN 03/02/2023 GEN 1360(E)* PAY MENTECH 03/03/2023 GEN 1359(E)* CITIZENS BANK 03/07/2023 GEN 78308*4 ACE HARDWARE 03/07/2023 GEN 78309* ALEJANDRO OR IAN AGUILAR 03/07/2023 GEN 78310* ARLYCE PETERSON Account Dept Page 28/37 Amount Training - Expense 401-870- 04 104.02 Rack, Tear Drop Punch Style, Step 401-935- 08 734.72 UTILITIES (ELECTRIC, SATELLITE 401-856- 05 34.00 COLLECTION - MATERIALS 401-903- 06 1,585.46 UTILITIES (ELECTRIC, SATELLITE-SCADA 401-856- 05 156.14 UTILITY ESP - WATER/WASTE 45/55- 401-930- 08 223.25 Preliminary Anomaly Report 401-856- 05 1,209.60 Inspector, CIPI (Regular) 402-863- 05 2,015.52 Line - Outside Services 402-863- 05 5.96 HECK GEN 78307 TOTAL FOR FUND 2: 3,231.08 HEALTH INSURANCE 401-926- 08 133.00 DENTAL INSURANCE-20o GAS 242-000- 00 918.79 Collection - Materials 401-903- 06 1,748.43 Office Supplies 401-921- 08 91.58 Materials 401-874- 04 4,419.38 Public Awareness - Material 401-874- 04 21.35 Grounds - Materials 401-935- 08 69.44 HECK GEN 78308 TOTAL FOR FUND 2: 4,510.17 DEP REFUND/APPLIED 235-000- 00 122.50 DEP REFUND/APPLIED 235-000- 00 22.75 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 29/37 Amount Fund: 2 GAS 03/07/2023 GEN 78311 ARRIES, CINDY Cip - Residential 401-916- 07 300.00 03/07/2023 GEN 78312* BAILEY HOECHST OR TRENTON HAMILTON DEP REFUND/APPLIED 235-000- 00 52.50 03/07/2023 GEN 78313* BENJAMIN JENUM DEP REFUND/APPLIED 235-000- 00 28.00 03/07/2023 GEN 78314* BLAKE JUREK DEP REFUND/APPLIED 235-000- 00 19.25 03/07/2023 GEN 78315* BOETTCHER, TROY Cip - Residential 401-916- 07 350.00 03/07/2023 GEN 78316*4 BORDER STATES ELECTRIC SUPPLY NIPPLE, 3/4" X 4 1/2", BM, STD, SMLS, 154-000- 00 76.25 ELL, WELD FITTING, 90 DEG, 2", SMLS, 154-000- 00 27.86 REDUCER, SWAGE, 2" X 1", STD, BLE X ISE 154-000- 00 99. 88 FLANGE, WELD NECK, FLAT FACED , 150 154-000- 00 94.36 TEE, TAPPING, HIGH VOL, EF, 4" IDS X 2" 154-000- 00 215.48 Materials 401-874- 04 5.24 SALES TAX 401-874- 04 15.28 BATTERY, SIZE C 401-874- 04 65.70 SALES TAX 401-874- 04 4.51 SALES TAX 401-874- 04 14.81 BATTERY, SIZE C 401-874- 04 39.42 SALES TAX 401-874- 04 2.71 HECK GEN 78316 TOTAL FOR FUND 2: 661.50 03/07/2023 GEN 78317* BRENDAN TOMENES DEP REFUND/APPLIED 235-000- 00 24.50 03/07/2023 GEN 78318 BROWN COUNTY RURAL ELECTRIC Utilities (Electric, Satellite 401-856- 05 206.86 03/07/2023 GEN 78321 CARTER, JEREMY L Training - Expense 401-870- 04 101.11 03/07/2023 GEN 78323 CENTURYLINK Utilities (Electric, Satellite 401-856- 05 67.54 03/07/2023 GEN 78324* CHRISTOPHER WENDT DEP REFUND/APPLIED 235-000- 00 87.50 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Description Fund: 2 GAS 03/07/2023 GEN 7832514 CINTAS CORPORATION 4470 03/07/2023 GEN 78326*4 CITY OF HUTCHINSON 03/07/2023 GEN 78328* COLLIN SODERBERG 03/07/2023 GEN 78330* CROW RIVER CHIROPRACTIC 03/07/2023 GEN 78333* DENVER CHENEY 03/07/2023 GEN 78335* DYLAN VARPNESS 03/07/2023 GEN 78336 ENERGY ECONOMICS 03/07/2023 GEN 78337* FENRICH AGENCY 03/07/2023 GEN 78338*4 GOPHER STATE ONE -CALL INC 03/07/2023 GEN 78340* HAGER JEWELRY INC 03/07/2023 GEN 78341 HAUER, DAVID 03/07/2023 GEN 78343* HUTCHFIELD SERVICES 03/07/2023 GEN 78344* HUTCHINSON LEADER Account Dept Page 30/37 Amount UNIFORMS & LAUNDRY 401-880- 04 162.60 UNIFORMS & LAUNDRY 401-880- 04 162.60 UNIFORMS & LAUNDRY 401-880- 04 147.72 HECK GEN 78325 TOTAL FOR FUND 2: 472.92 VEHICLE/EQUIPMENT FUEL -GAS 401-880- 04 1,295.17 VEHICLES/EQUIPMENT FUEL-ADMIN 55/45 401-935- 08 41.94 HECK GEN 78326 TOTAL FOR FUND 2: 1,337.11 DEP REFUND/APPLIED 235-000- 00 70.00 DEP REFUND/APPLIED 235-000- 00 42.00 DEP REFUND/APPLIED 235-000- 00 127.75 DEP REFUND/APPLIED 235-000- 00 89.25 EEI to Perform Maintenance, Cleaning, 402-895- 04 2,150.00 DEP REFUND/APPLIED 235-000- 00 56.00 DEP REFUND/APPLIED 235-000- 00 26.25 HECK GEN 78337 TOTAL FOR FUND 2: 82.25 Labor Mains 402-892- 04 9.45 Breakroom/Recognition Banquet 401-926- 08 51.44 Cip - Residential 401-916- 07 350.00 Grounds - Outside Services 401-935- 08 894.44 Cip - Marketing 401-916- 07 111.00 03/23/2023 08:54 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM 02/18/2023 - 03/22/2023 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Fund: 2 GAS 03/07/2023 GEN 7834514 HUTCHINSON WHOLESALE SUPPLY CO Vehicles - Material 402-895- 04 Vehicles - Material 402-895- 04 Vehicles - Material 402-895- 04 Other Equipment - Materials 402-895- 04 HECK GEN 78345 TOTAL FOR FUND 2: 03/07/2023 GEN 78346* INNOVATIVE OFFICE SOLUTIONS Office Supplies 401-921- 08 03/07/2023 GEN 78347* JAKE DEAL DEP REFUND/APPLIED 235-000- 00 03/07/2023 GEN 78349* JAMES LEAVECK DEP REFUND/APPLIED 235-000- 00 03/07/2023 GEN 78353* JUAN SANTOS DIAZ DEP REFUND/APPLIED 235-000- 00 03/07/2023 GEN 78354* JUSTIN DOERING DEP REFUND/APPLIED 235-000- 00 03/07/2023 GEN 78355* KAEDEE KAY BERGQUIST DEP REFUND/APPLIED 235-000- 00 03/07/2023 GEN 78356* KELLY RAUCH OR AARON ALBRECHT DEP REFUND/APPLIED 235-000- 00 03/07/2023 GEN 78358* KELSY KNOBLOCH DEP REFUND/APPLIED 235-000- 00 03/07/2023 GEN 78359* KYLER RIEKE OR ARIEL GRISWOLD DEP REFUND/APPLIED 235-000- 00 03/07/2023 GEN 78360*4 LOCATORS & SUPPLIES INC SAFETY GLASSES, GRAY, SILVER MIRROR, 401-880- 04 03/07/2023 GEN 78361* MARCO TECHNOLOGIES, LLC OFFICE SUPPLIES 401-921- 08 03/07/2023 GEN 78366* MORGAN KIRCHOFF DEP REFUND/APPLIED 235-000- 00 03/07/2023 GEN 78367* NEPHEW, SHANE Cip - Residential 401-916- 07 Page 31/37 Amount 75.50 28.15 10.68 21.31 135.64 38.33 77.00 26.25 17.50 61.25 91.00 31.50 26.25 56.00 47.90 173.89 26.25 350.00 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 32/37 Amount Fund: 2 GAS 03/07/2023 GEN 78368* NICHOLAS KUNTZ DEP REFUND/APPLIED 235-000- 00 26.25 03/07/2023 GEN 78369* NICHOLAS TCHIDA DEP REFUND/APPLIED 235-000- 00 42.00 03/07/2023 GEN 78372 NORTH COUNTRY GM TK30943, 2022/23 GMC Sierra 3500, SRW, 107-392- 00 36,131.60 SLE, SLE Package 107-392- 00 3,891.00 A50, Bucket Seats w/Console 107-392- 00 479.60 LPS, Engine, Duramax 6.6L Turbo -Diesel 107-392- 00 8,703.20 ZW9, Box Delete, includes capped fuel 107-392- 00 (1,016.40) VYU, Snow Plow Prep Package 107-392- 00 264.00 VXJ, Chrome Assist Steps 107-392- 00 660.00 NQH, Dash Switch Auto Trac 4x4 107-392- 00 176.00 KEE, Auxiliary Battery 107-392- 00 118.80 KC9, 120 Volt Outlet in Cab 107-392- 00 198.00 9L7, Upfitter Switched 107-392- 00 132.00 U01, Roof Marker Lights 107-392- 00 48.40 DLR1, Remote Start 107-392- 00 445.00 Additional Key/FOB Combination 107-392- 00 177.00 License, Title, Registration, Transit 107-392- 00 3,602.69 ACCESSORIES 107-392- 00 1,555.00 HECK GEN 78372 TOTAL FOR FUND 2: 55,565.89 03/07/2023 GEN 78373 NORTHERN BORDER PIPELINE CO LINE - OUTSIDE SERVICES -INTERCONNECT 401-856- 05 2,000.00 03/07/2023 GEN 78374* NUVERA TELEPHONE 401-921- 08 634.00 03/07/2023 GEN 78375*4 OXYGEN SERVICE COMPANY INC Materials 401-874- 04 85.62 Materials 401-874- 04 71.11 HECK GEN 78375 TOTAL FOR FUND 2: 156.73 03/07/2023 GEN 78377* PIERCE LUEDERS DEP REFUND/APPLIED 235-000- 00 35.00 03/07/2023 GEN 78378*4 PRO AUTO & TRANSMISSION REPAIR Vehicles - Material 402-895- 04 87.59 Vehicles - Material 402-895- 04 287.18 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 33/37 Amount Fund: 2 GAS HECK GEN 78378 TOTAL FOR FUND 2: 374.77 03/07/2023 GEN 78380* REBEKAH TAYLOR DEP REFUND/APPLIED 235-000- 00 140.00 03/07/2023 GEN 78381* SANDRA OR KEVIN ASHBY DEP REFUND/APPLIED 235-000- 00 96.25 03/07/2023 GEN 78382 SCHUERMAN, ERIN Cip - Residential 401-916- 07 25.00 03/07/2023 GEN 78384* SHRED RIGHT OFFICE SUPPLIES -SHREDDING SERVICES 401-921- 08 5.08 03/07/2023 GEN 78385 SOUTH CENTRAL ELECTRIC ASS'N UTILITIES (ELECTRIC, SATELLITE 401-856- 05 49.02 03/07/2023 GEN 78386* STANDARD PRINTING & MAILING OFFICE SUPPLIES 401-921- 08 2.72 03/07/2023 GEN 78389* TARA SHONERD DEP REFUND/APPLIED 235-000- 00 70.00 03/07/2023 GEN 78390* TERYN WILSON OR TAYAH LEE DEP REFUND/APPLIED 235-000- 00 59.50 03/07/2023 GEN 78391* TRAVIS COYE DEP REFUND/APPLIED 235-000- 00 28.00 03/07/2023 GEN 78393 TRIMBO, DAVID Cip - Residential 401-916- 07 350.00 03/07/2023 GEN 78394* UNITED PARCEL SERVICE MAIL SERVICES - UPS, FEDEX 401-921- 08 39.18 03/07/2023 GEN 78396* VERIZON WIRELESS TELEPHONE 401-921- 08 345.56 03/07/2023 GEN 78397* VITA NOVA LLC DEP REFUND/APPLIED 235-000- 00 35.00 03/07/2023 GEN 78400 WICHMAN, GWEN Cip - Residential 401-916- 07 300.00 03/07/2023 GEN 78401 WORDEN, DARREL Cip - Residential 401-916- 07 350.00 03/16/2023 GEN 1345(E)*4 VISA Materials 401-856- 05 528.58 Utilities (Electric, Satellite 401-856- 05 101.54 Breakroom/Recognition Banquet 401-926- 08 6.28 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Payee Description Account Dept Page 34/37 Amount Fund: 2 GAS Breakroom/Recognition Banquet 401-926- 08 6.61 Breakroom/Recognition Banquet 401-926- 08 6.37 Breakroom/Recognition Banquet 401-926- 08 8.18 Breakroom/Recognition Banquet 401-926- 08 3.92 Training - Expense 401-930- 08 48.28 HECK GEN 1345(E) TOTAL FOR FUND 2: 709.76 03/20/2023 GEN 1355(E)*4 BP CANANDA ENERGY SOLUTIONS GAS FOR RETAIL 401-807- 04 3,385.40 GAS FOR RETAIL 401-807- 04 12,680.44 3M 401-807- 04 470,038.74 HTI 401-807- 04 51,550.30 UNG 401-807- 04 976.22 BROWNTON 401-807- 04 15,088.06 Utility Expenses - Water/Waste 401-930- 08 4,735.36 HECK GEN 1355(E) TOTAL FOR FUND 2: 558,454.52 03/20/2023 GEN 1356(E)* INVOICE CLOUD collection - Materials 401-903- 06 1,931.36 03/20/2023 GEN 1358(E) PUBLIC ENERGY AUTHORITY OF Gas For Retail 401-807- 04 536,160.24 Contract Gas For Retail 401-807- 04 168.00 HECK GEN 1358(E) TOTAL FOR FUND 2: 536,328.24 03/21/2023 GEN 1354(E)* MINNESOTA REVENUE State Sales Tax 242-000- 00 20,580.00 City Sales Tax 242-000- 00 1,460.00 COUNTY SALES TAX 242-000- 00 1, 460.00 HECK GEN 1354(E) TOTAL FOR FUND 2: 23,500.00 03/22/2023 GEN 78404*4 ACE HARDWARE Public Awareness - Material 401-874- 04 22.83 Other Equipment - Materials 402-895- 04 19.23 HECK GEN 78404 TOTAL FOR FUND 2: 42.06 03/22/2023 GEN 78406 BARTON, STEVE Cip - Residential 401-916- 07 25.00 03/22/2023 GEN 78407* BEATTY, THEODORE Cip - Residential 401-916- 07 400.00 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Description Fund: 2 GAS 03/22/2023 GEN 7840914 BORDER STATES ELECTRIC SUPPLY 03/22/2023 GEN 78411 CARTER, JEREMY L 03/22/2023 GEN 78412*4 CINTAS CORPORATION 4470 03/22/2023 GEN 78413*4 CITY OF HUTCHINSON 03/22/2023 GEN 78420 DUALDRAW Account Dept Page 35/37 Amount ELL, WELD FITTING, 90 DEG, 4", SMLS, 154-000- 00 401.76 ELL, FEMALE THRD, 90 DEG, 2", BM, CLASS 154-000- 00 40.38 TEE, FEMALE THRD, 1", BM, CLASS 150 154-000- 00 39. 48 CAP, FEMALE THRD, 1", BM, CLASS 150 154-000- 00 28.40 NIPPLE, 1" X 2 1/2", BM, STD, SMLS, TEE 154-000- 00 25.40 FITTING, WELD STOP 4", LOW PRESSURE 154-000- 00 564.10 NIPPLE, 3/4" X 2 1/2", BM, STD, SMLS, 154-000- 00 10.00 NIPPLE, 1" X 4", BM, STD, SMLS, TEE 154-000- 00 26.18 NIPPLE, 1" X 5", BM, STD, SMLS, TEE 154-000- 00 36.27 SALES TAX 401-874- 04 36.81 SALES TAX 401-874- 04 38.78 SALES TAX 401-874- 04 4.99 HECK GEN 78409 TOTAL FOR FUND 2: 1,252.55 Training - Expense 401-870- 04 81.53 UNIFORMS & LAUNDRY 401-880- 04 79. 50 UNIFORMS & LAUNDRY 401-880- 04 79. 50 UNIFORMS & LAUNDRY 401-880- 04 79. 50 HECK GEN 78412 TOTAL FOR FUND 2: 238.50 IT ADMIN AND SUPPORT 75/25 401-921- 08 5, 933.33 Utility Expenses - Water/Waste 401-930- 08 10.15 Utility Expenses - Water/Waste 401-930- 08 426.48 CHECK GEN 78413 TOTAL FOR FUND 2: 6,369.96 VFDS, Variable Frequency Drive, Lowers 107-394- 00 1,450.00 HNG-WING, LEFT SIDED (Front Facing) 107-394- 00 1,578.00 DP-LIGHT-HZ2, Hazardous Duty Light, 107-394- 00 1,250.00 C53072, Heavy Duty locking Caster 107-394- 00 750.00 PRE-FS, Pre -Filter Sheet with Velcro 107-394- 00 275.00 EX -SCOOP, Exhaust Scoops to Redirect 107-394- 00 570.00 RM3072, Non-Marring/Non-Scratch Table 107-394- 00 400.00 RFK0000010, Replacement Filter Kit, 107-394- 00 415.00 03/23/2023 08:54 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM 02/18/2023 - 03/22/2023 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Fund: 2 GAS Estimated Freight 107-394- 00 Tools, Shop & Garage Equipment 107-394- 00 HECK GEN 78420 TOTAL FOR FUND 2: 03/22/2023 GEN 78421* FIRST CHOICE FOOD & BEVERAGE BREAKROOM/RECOGNITION BANQUET 401-926- 08 03/22/2023 GEN 78422 FRANK MADDEN & ASSOCIATES Legal Services 401-923- 08 03/22/2023 GEN 784264 GROEBNER & ASSOCIATES INC P/N# - 425X-25 Barksdale Pressure 107-387- 00 SALES TAX & FREIGHT 401-874- 04 HECK GEN 78426 TOTAL FOR FUND 2: 03/22/2023 GEN 78427* HEALTH PARTNERS HEALTH INSURANCE-15o GAS 242-000- 00 03/22/2023 GEN 78428* HILLYARD/HUTCHINSON Grounds - Materials 401-935- 08 Grounds - Materials 401-935- 08 HECK GEN 78428 TOTAL FOR FUND 2: 03/22/2023 GEN 78429* INGLIS, TOM Cip - Residential 401-916- 07 03/22/2023 GEN 784374 MCLEOD COOPERATVIE POWER ASSN MISC EXPENSE -GAS LINE PUMP 401-880- 04 UTILITIES (ELECTRIC, SATELLITE-MCLEOD 401-856- 05 HECK GEN 78437 TOTAL FOR FUND 2: 03/22/2023 GEN 78440 MINNESOTA DEPARTMENT OF COMMERCE Doc - Cip Assessment 401-916- 07 03/22/2023 GEN 784424 MRC GLOBAL REDUCER, SWAGE, 2" X 1 1/2", STD, BLE X 154-000- 00 SALES TAX 401-874- 04 HECK GEN 78442 TOTAL FOR FUND 2: 03/22/2023 GEN 78443*4 NORTHERN STATES SUPPLY INC Materials 401-874- 04 03/22/2023 GEN 78446 PETERSON, DALE Cip - Residential 401-916- 07 Page 36/37 Amount 1,630.00 4,261.00 12,579.00 101.25 120.00 1,085.62 8,649.95 295.64 800.00 74.16 1,945.99 116.43 7.99 124.42 35.24 350.00 03/23/2023 08:54 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 02/18/2023 - 03/22/2023 Description Fund: 2 GAS 03/22/2023 GEN 78447* PREMIUM WATERS INC 03/22/2023 GEN 78450* RELIANCE STANDARD LIFE -LIFE 03/22/2023 GEN 78453 RUSCH, BRYCE 03/22/2023 GEN 78454 RUSCH, JUSTIN 03/22/2023 GEN 78461* UIS/SOURCECORP 03/22/2023 GEN 78462* UNITED PARCEL SERVICE 03/22/2023 GEN 78464 VERIZON WIRELESS 03/22/2023 GEN 78469*4 WEST CENTRAL SANITATION INC 03/22/2023 GEN 784714 WSB Account Dept OFFICE SUPPLIES -BOTTLED WATER 401-921- 08 LTD INSURANCE-20o GAS 242-000- 00 LIFE INSURANCE-20o GAS 242-000- 00 HECK GEN 78450 TOTAL FOR FUND 2: Training - Expense 401-870- 04 Vehicle/Equipment Fuel 401-880- 04 HECK GEN 78453 TOTAL FOR FUND 2: Training - Expense 401-870- 04 COLLECTION - MATERIALS 401-903- 06 MAIL SERVICES - UPS, FEDEX 401-921- 08 UTILITIES (ELECTRIC, SATELLITE-SCADA 401-856- 05 UTILITY ESP - WATER/WASTE 45/55- 401-930- 08 WSB to provide design, engineering 107-366- 00 WSB TO PROVIDE DESIGN, ENGINEERING 107-366- 00 Inspector, CIPI (Regular) 402-863- 05 Line - Outside Services 402-863- 05 HECK GEN 78471 TOTAL FOR FUND 2: Total for fund 2 GAS TOTAL - ALL FUNDS '*'-INDICATES CHECK DISTRIBUTED TO MORE THAN ONE FUND '#'-INDICATES CHECK DISTRIBUTED TO MORE THAN ONE DEPARTMENT Page 37/37 Amount 8.00 408.19 255.40 663.59 458.25 59.42 1,602.87 100.49 156.23 221.45 11,846.94 147.73 611.04 2,159,462.91 5,363,554.06 December 31, 2022 Independent Auditor's Report Pages 2-4: 9 Financial statements are the responsibility of the Commission's management Our responsibility is to express an opinion on these financial statements based on our audit Conducted audit in accordance with Generally Accepted Auditing Standards and Government Auditing Standards * Obtain reasonable assurance financials are free from material misstatement r Independent Auditor's Report (Contd) Pages 2-4: Financial statements of the Commission are presented fairly in our opinion Required Supplementary Information — Management's Discussion and Analysis (pages 5-9) Additional Required Supplementary Information (pages 37-44) Internal control letter on pages 58-59 r Statement of Net Position ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Current Assets Restricted Assets Net Capital Assets Total Assets Deferred Outflows of Resources Total Assets and Deferred Ouflows of Resources 2022 2021 $ 30,486,315 $ 30,558,392 3,689,480 3,688,606 73,706,492 75,539,658 107,882,287 109,786,656 $ 109,510,817 $ 111,960,984 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Liabilities Current Liabilities $ 4,076,441 $ 3,266,278 Long -Term Liabilities 30,160,229 29,488,463 Total Liabilities 34,236,670 32,754,741 Deferred Inflows of Resources 131,405 2,721,857 Net Position Net Investment in Capital Assets Unrestricted Total Net Position Total Liabilities. Deferred Inflows of Resources and Net Position 53,541,798 53,543,167 21,600,944 22,941,219 75,142,742 76,484,386 $ 109,510,817 $ 111,960,984 r Cash and Investment Balances $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 011 ////m IE/EM 1//12 2018 2019 2020 2021 2022 INOperating $7,196,455 $9,563,367 $12,810,700 $10,552,359 $9,962,061 IIIIII Restricted 8,037,130 3,575,572 3,680,239 3,688,606 3,689,480 0 Designated 12,662,280 12,822,241 12,767,467 13,715,289 13,432,222 r Statement of Revenues, Expenses and Changes in Net Position OPERATING REVENUES OPERATING EXPENSES Production Purchased Power/Gas Other Operating Expense Administrative and General Depreciation Contribution to City of Hutchinson Total Operating Expenses Operating Income (Loss) NET NONOPERATING REVENUES (E)PENSES) Change in Net Position NET POSITION, BEGINNING OF YEAR NET POSITION. END OF YEAR 2022 2021 $ 45, 845, 410 $ 44, 902, 853 6,721,410 5,052,088 22,521,870 23,251,254 7,498,792 6,738,408 2,574,145 2,398,712 4,561,045 4,431,549 1,867,192 1,867,192 45,744,454 43,739,203 100,956 1,163, 650 (1,442,600) (510,336) (1,341,644) 653,314 76,484,386 75,831,072 $ 75,142, 742 $ 76, 484, 386 Electric Division $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15, 000, 000 $10, 000, 000 $5,000,000 $0 $ (5,000,000) ■Total Operating Revenues IN Total Operating Expenses IIIIII Net Nonoperating Revenues (Expenses) 2018 2019 2020 2021 2022 $28,745,389 27,982,592 26,460,616 29,696,029 30,463,813 $28,635,904 27,994,698 26,516,829 29,884,530 32,116,526 $(283,198) (239,498) 1,644,875 (345,928) (842,544) r Electric Division $2,000,000 $1,500,000 $1,000,000 $500,000 $p $(500,000) $(1,000,000) $(1,500,000) $(2,000,000) $(2,500,000) $(3,000,000) 2018 2019 2020 2021 2022 ■ Change in Net $(173,713) $(251,604) $1,588,662 $(534,429) $(2,495,257) Position r Revenue per KWH Year Ended December 31, 2022 Revenue Fbr Amount KWH Sold KWH CLASS Residential $ 5,841,794 53,618,060 $ 0.1090 All Electric 287,649 2,784,990 0.1033 Small General Service 1,912,490 18,221,919 0.1050 Large General Service 7,703,499 83,658,560 0.0921 Industrial 8,990,927 112,228,000 0.0801 Sale for Resale 5,446,484 27,568,000 0.1976 Street Lighting 138,294 93,386 1.4809 $ 30,321,137 298,172,915 0.1017 Year Ended December 31, 2021 Revenue Fbr Amount KWH Sold KWH CLASS Residential $ 5,742,436 53,638,433 $ 0.1071 All Electric 271,451 2,583,825 0.1051 Small General Service 1,875,538 17,994,115 0.1042 Large General Service 7,856,315 85,403,880 0.0920 Industrial 9,524,147 120,065,000 0.0793 Sale for Resale 4,221,535 19,706,000 0.2142 Street Lighting 137,710 97,742 1.4089 $ 29,629,132 299,488,995 $ 0.0989 nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnmm� ■ DV nnnnnnnn � �r Natural Gas Division r Natural Gas Division $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2018 2019 2020 2021 2022 ■ Change in Net Position $3,232,446 $2,538,847 $2,118,476 $1,187,743 $1,153,613 r Revenue per MCF Year Ended December 31, 2022 Revenue Per Thousand Amount CF Sold MCF CLASS Residential $ 4,474,818 468,419,771 $ 9.5530 Commercial 3,275,405 360,645,718 9.0821 Large industrial 5,769,905 900,160,272 6.4099 $ 13, 520,128 1, 729, 225, 761 $ 7.8186 Year Ended December 31, 2021 Revenue Per Thousand Amount CF Sold MCF CLASS Residential $ 4,639,771 391, 997, 679 $ 11.8362 Commercial 3,469,964 302, 691, 207 11.4637 Large industrial 5,334,891 861,030,863 6.1959 $ 13, 444, 626 1, 555, 719, 749 $ 8.6421 r Communications • Accounting Practices • No Difficulties Encountered Corrected and Uncorrected Misstatements No Disagreements with Management Management Representations Management Consultations with Other Accountants Other Audit Findings or Issues r General Recommendations Upcoming Government Auditing Standards Board Statement No. 96, Subscription -Based Information technology Arrangements r Questions or Comments? Contact information: Justin McGraw, CPA °irnc ira c,sc aac0irn 320-693-7975 r HUTCHINSON UTILITIES COMMISSION MANAGEMENT LETTER DECEMBER 31, 2022 CONWAY, DEUTH & SCHMIESING, PLLP CPAS & ADVISORS LITCHFIELD, MINNESOTA This page intentionally left blank HUTCHINSON UTILITIES COMMISSION TABLE OF CONTENTS DECEMBER 31, 2022 gdeft Required Communications 1-3 Comparative Financial Data 4 Graphical Information 5-12 Schedule of Findings on Accounting Issues and Internal Controls 13 This page intentionally left blank REQUIRED COMMUNICATIONS Members of the Hutchinson Utilities Commission Hutchinson, Minnesota We have audited the financial statements of Hutchinson Utilities Commission, a fund of the City of Hutchinson, Minnesota, as of and for the year ended December 31, 2022. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated January 9, 2023. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Commission are described in Note 1 to the financial statements. The Commission adopted Governmental Accounting Standards Board (GASB) Statement No. 87, Leases and Statement No. 101, Compensated Absences in 2022. Adoption of this statement establishes a single model for lease accounting based on the foundational principle that leases are financings of a right to use an underlying asset. We noted no transactions entered into by the Commission during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: Management's estimate of the allowance for doubtful accounts is based on historical electric and natural gas revenues, historical loss levels, and an analysis of the collectability of individual accounts. We evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements taken as a whole. Management's estimate of depreciation and amortization is based on the number of years an asset is in service. We evaluated the key factors and assumptions used to develop the depreciation estimate in determining that it is reasonable in relation to the financial statements taken as a whole. .O Box 570 y. w, y, • M.. 0 II i Litchfield Office 820 Sibley Ave N Utchfied, MIN 55355 (3 0) 693-7975 www.cdscpa.colirmf OfficeSartelt Ste 1 �rr � Members: American Institute of Certified Public Accountants, Minnesota Society of Certified Public Accountants Significant Audit Findings (Cont'd) Qualitative Aspects of Accounting Practices (Cont'd) Management's estimate of lease terms and discount rates on leases is based on information stated in the lease expense agreement and expectations of the lease. The lease terms and discount rates determine the amount of interest that will be recorded during each reporting period as well as the amount of right to use assets and lease liability that is reported at the end of a reporting period. Management's estimate of pension related items and other postemployment benefit related items are based on actuarial valuations performed by consultants specializing in those areas. We evaluated the key factors and assumptions used to develop those estimates in determining that it is reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated March 29, 2023. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the Commission's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Commission's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. 2 Other Matters We applied certain limited procedures to Management's Discussion and Analysis, the Schedule of Proportionate Share of the Net Pension Liability, the Schedule of Employer Contributions, the Schedule of Changes in the Commission's Total OPEB Liability and the related notes, which is required supplementary information that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the required supplementary information and do not express an opinion or provide any assurances on the required supplementary information. We were engaged to report on the statements and schedules listed in the table of contents as supplementary information, which accompany the financial statements but are not required supplementary information. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the Organizational Data section, which accompany the financial statements but are not required supplementary information. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it. Restriction on Use This information is intended solely for the use of the Commission and management of Hutchinson Utilities Commission and is not intended to be and should not be used by anyone other than these specified parties. CONWAY, DEUTH & SCHMIESING, PLLP CPAS & ADVISORS LITCHFIELD, MINNESOTA March 29, 2023 3 This page intentionally left blank ELECTRIC DIVISION Residential General Service Industrial Street Lighting Resale Total Electric Sales Other Operating Revenues Total Operating Revenues Purchased Power - Electric Other Operating Expenses Total Operating Expenses Net Nonoperating Revenues (Expenses) Change in Net Position GAS DIVISION Residential Commercial Industrial Total Gas Revenues Gas Transportation Total Operating Revenues Purchased Power - Gas Other Operating Expenses Total Operating Expenses Net Nonoperating Revenues (Expenses) HUTCHINSON UTILITIES COMMISSION COMPARATIVE FINANCIAL DATA 2018 2019 2020 2021 2022 $ 5,601,482 $ 5,638,725 $ 5,692,685 $ 6,013,887 $ 6,129,443 9,523,924 9,566,730 8,911,119 9,731,853 9,615,989 10,218,577 9,667,324 8,963,654 9,524,147 8,990,927 147,470 147,456 141,886 137,710 138,294 3,071,099 2,773,852 2,709,012 4,221,535 5,446,484 28,562,552 27,794,087 26,418,356 29,629,132 30,321,137 182,837 188,505 42,260 66,897 142,676 28,745,389 27,982,592 26,460,616 29,696,029 30,463,813 15,680,416 14,272,870 13,172,097 14,833,873 15,665,830 13,017,890 13, 721,828 13,344, 732 15,050,657 16,450,696 28,698,306 27,994,698 26,516,829 29,884,530 32,116,526 (283,198) (239,498) 1,644,875 (345,928) (842,544) $ (236,115) $ (251,604) $ 1,588,662 $ (534,429) $ (2,495,257) $ 4,139,639 $ 3,981,709 $ 3,663,453 $ 4,639,771 $ 4,474,818 3,070,904 2,974,834 2,597,225 3,469,964 3,275,405 3,870,184 3,679,891 3,539,863 5,334,891 5,769,905 11,080,727 10,636,434 9,800,541 13,444,626 13,520,128 1,667,019 1,773,082 1,719,680 1,762,198 1,861,469 12, 747, 746 12,409,516 11,520,221 15,206,824 15,381,597 6,084,090 5,961,040 5,588,511 9,830,566 9,356,872 3,259,715 3,887,159 3,969,118 4,024,107 4,271,056 9,343,805 9,848,199 9,557,629 13,854,673 13,627,928 (192,296) (22,470) 155,884 (164,408) (600,056) Change in Net Position $ 3,211,645 $ 2,538,847 $ 2,118,476 $ 1,187,743 $ 1,153,613 HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION Operating Revenues & Expenses and Net Nonoperating Revenues (Expenses) $35,000,000 ,526 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 $ (283,198) $ (239, 498) $ (345, 928) $842, 544) -$5,000,000 2018 2019 2020 2021 2022 BTotal Operating Revenues ®Total Operating Expenses ®Net Nonoperating Revenues (Expenses) $32,116 $28,745,389 $27,982,592 $29,696,029 $29,884,530 $30,463,813 $28,698,306 $27,994,698 $26,460,616 $26,516,829 $1,644,875 Change in Net Position $2,000,000 $1,588,662 $1,500,000 $1,000,000 $500,000 $0 -$500,000 $(236,115) $(251,604) $(534,429) -$1,000,000 -$1,500,000 -$2,000,000 -$2,500,000 $(2,495,257) -$3,000,000 2018 2019 2020 2021 2022 BChange in Net Position 5 Change in Net Position $2,000,000 $1,588,662 $1,500,000 $1,000,000 $500,000 $0 -$500,000 $(236,115) $(251,604) $(534,429) -$1,000,000 -$1,500,000 -$2,000,000 -$2,500,000 $(2,495,257) -$3,000,000 2018 2019 2020 2021 2022 BChange in Net Position 5 5 HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION Major Revenue by Source 11 000 000............................................................................................................................................................................................................................................................................................................................................................... $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2018 2019 2020 2021 2022 ■Residential ®General Service 0Industrial Purchased Power & Fuel Costs Compared to Total Sales $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 2018 2019 2020 2021 2022 BPurchased Power - Electric ®Total Electric Sales HUTCHINSON UTILITIES COMMISSION ANALYSIS OF OPERATIONS ELECTRIC DIVISION YEARS ENDED DECEMBER 31, 2022 AND 2021 The Statement of Revenues and Expenses set forth the results of the operations in detail for the years ended December 31, 2022 and 2021. Operating revenues, kilowatt hours (KWH) sold, and average revenue per kilowatt hour sold by class of service are as follows: Year Ended December 31, 2022 Revenue Per Amount KWH Sold KWH INWIN& Residential $ 5,841,794 53,618,060 $ 0.1090 All Electric 287,649 2,784,990 0.1033 Small General Service 1,912,490 18,221,919 0.1050 Large General Service 7,703,499 83,658,560 0.0921 Industrial 8,990,927 112,228,000 0.0801 Sale for Resale 5,446,484 27,568,000 0.1976 Street Lighting 138,294 93,386 1.4809 $ 30,321,137 298,172,915 $ 0.1017 Year Ended December 31, 2021 Revenue Per Amount KWH Sold KWH INWIN& Residential $ 5,742,436 53,638,433 $ 0.1071 All Electric 271,451 2,583,825 0.1051 Small General Service 1,875,538 17,994,115 0.1042 Large General Service 7,856,315 85,403,880 0.0920 Industrial 9,524,147 120,065,000 0.0793 Sale for Resale 4,221,535 19,706,000 0.2142 Street Lighting 137,710 97,742 1.4089 $ 29,629,132 299,488,995 $ 0.0989 7 HUTCHINSON UTILITIES COMMISSION ANALYSIS OF OPERATIONS ELECTRIC DIVISION YEARS ENDED DECEMBER 31, 2022 AND 2021 KWH Sold 93,386 Street Lighting 97,742 27, 568, 000 Sale for Resale 19,706,000 112,228,000 Industrial 120,065,000 Large General Service 83,658,560 85,403,880 18,221,919 Small General Service 17,994,115 2,784,990 All Electric 2,583,825 53,618,060 Residential 53,638,433 a.; �� r 0 30,000,000 60,000,000 90,000,000 120,000,000 150,000,000 2022 KWH Sold 02021 KWH Sold Street Lighting Sale for Resale Industrial Large General Service Small General Service All Electric Residential Average $/KWH $1.4809 $1.4089 $0.1976 $0.2142 $0.0801 $0.0793 $0.0921 $0.0920 $0.1050 $0.1042 $0.1033 $0.1051 $0.1090 $0.1071 I.00 $0.50 $1.00 $1.50 $2.00 2022 Revenue Per KWH 02021 Revenue Per KWH HUTCHINSON UTILITIES COMMISSION NATURAL GAS DIVISION Operating Revenues & Expenses and Net Nonoperating Revenues (Expenses) $18,000,000 $16,000,000 $15, 206, 824 $15, 381, 597 $13, 854, 673 $13, 627, Change in Net Position $3, 500, 000 $3,211,645 $3, 000, 000 $2,538,847 $2, 500, 000 $2,118, 476 $2, 000, 000 $1,500,000 $1,187, 743 $1,153,613 $1,000,000 $500,000 $0 2018 2019 2020 2021 2022 BChange in Net Position HUTCHINSON UTILITIES COMMISSION NATURAL GAS DIVISION Major Revenue by Source $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2018 2019 2020 2021 2022 BResidential ®Commercial 0Industrial Purchased Gas Compared to Total Sales $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8, 000, 000 $6, 000, 000 $4, 000, 000 $2, 000, 000 $0 2018 2019 2020 2021 2022 ■Purchased Power - Gas ®Total Gas Revenues 10 HUTCHINSON UTILITIES COMMISSION ANALYSIS OF OPERATIONS NATURAL GAS DIVISION YEARS ENDED DECEMBER 31, 2022 AND 2021 The Statement of Revenues and Expenses set forth the results of the operations in detail for the years ended December 31, 2022 and 2021. Operating revenues, cubic feet sold, and average revenue per thousand cubic feet sold by class of service are as follows: Year Ended December 31, 2022 Revenue Per Thousand Amount CF Sold MCF CLASS Residential $ 4,474,818 468,419,771 $ 9.5530 Commercial 3,275,405 360,645,718 9.0821 Large Industrial 5,769,905 900,160,272 6.4099 $ 13,520,128 1,729,225,761 $ 7.8186 Year Ended December 31, 2021 Revenue Per Thousand Amount CF Sold MCF INWIN& Residential $ 4,639,771 391,997,679 $ 11.8362 Commercial 3,469,964 302,691,207 11.4637 Large Industrial 5,334,891 861,030,863 6.1959 $ 13,444,626 1,555,719,749 $ 8.6421 11 HUTCHINSON UTILITIES COMMISSION ANALYSIS OF OPERATIONS NATURAL GAS DIVISION YEARS ENDED DECEMBER 31, 2022 AND 2021 CF Sold 900,160,272 Large Industrial 861,030,863 360,645,718 Commercial 302,691,207 468,419,771 Residential 391,997,679 0 pp0 pp0 pp0 pp0 3p0 OpO, Epp pp0, gp0 pp0, 1 20p pp0, M2022 CF Sold M2021 CF Sold Average $/MCF $6.4099 Large Industrial $6.1959 $9.0821 Commercial $11.4637 $9.5530 Residential $11.8362 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 M2022 Revenue per 1000 MCF M2021 Revenue Per 1000 MCF 12 This page intentionally left blank HUTCHINSON UTILITIES COMMISSION SCHEDULE OF FINDINGS ON ACCOUNTING ISSUES AND INTERNAL CONTROLS DECEMBER 31, 2022 We noted certain matters involving the internal control structure and its operation that we consider being deficiencies in internal control under standards established by the American Institute of Certified Public Accountants. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. INTERNAL CONTROL The objective of internal accounting control is to provide reasonable, but not absolute, assurance as to the safeguarding of assets against loss from unauthorized use or disposition, and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a system of internal accounting control should not exceed the benefits derived and also recognizes that the valuation of these factors necessarily requires estimates and judgments by management. It should be recognized that within the Commission, an inherent risk is present with certain positions. It is very common for entities such as Hutchinson Utilities Commission, to assign many major responsibilities to a few key individuals in an attempt to operate within limited budgets. The inherent risk is again addressed only to maintain the awareness of the internal control structure and to encourage the Commission's continual review of financial information at monthly meetings. GENERAL RECOMMENDATIONS Throughout the course of the audit, we spoke with management regarding certain items that we see as an opportunity to improve. None of these were considered significant within the scope of the audit. The items discussed requiring action have been resolved or are in the process of resolution. We would like to acknowledge the assistance and courtesies extended to us by the personnel of the Hutchinson Utilities Commission. UPCOMING GOVERNMENT ACCOUNTING STANDARDS BOARD STATEMENT NO. 96, SUBSCRIPTION -BASED INFORMATION TECHNOLOGY ARRANGEMENTS The Governmental Accounting Standards Board (GASB) issued Statement No. 96, Subscription -Based Information Technology Arrangements, to better meet the information needs of financial statement users by improving accounting and financial reporting for subscription -based information technology arrangements by governments. This Statement establishes uniform accounting and financial reporting requirements for subscription -based information technology arrangements which may result in the Commission recording subscription assets and liabilities. The Statement is effective for fiscal years beginning after June 15, 2022. We recommend that management of the Commission begin the process of evaluating the impact of implementation of this standard. Changes may be necessary to your financial records and it will benefit the Commission to begin this process now. If requested, Conway, Deuth and Schmiesing, PLLP will assist in the implementation. These services will be billed separate from, and in addition to, your annual audit engagement fees. Please contact us with any questions. 13 HUTCHINSON UTILITIES COMMISSION AUDITED FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION DECEMBER 31, 2022 CONWAY, DEUTH & SCHMIESING, PLLP CPAS & ADVISORS LITCHFIELD, MINNESOTA This page intentionally left blank HUTCHINSON UTILITIES COMMISSION TABLE OF CONTENTS DECEMBER 31, 2022 ORGANIZATIONAL DATA INDEPENDENT AUDITOR'S REPORT REQUIRED SUPPLEMENTARY INFORMATION Management's Discussion and Analysis BASIC FINANCIAL STATEMENTS Statement of Net Position Statement of Revenues, Expenses and Changes in Net Position Statement of Cash Flows Notes to the Financial Statements REQUIRED SUPPLEMENTARY INFORMATION Schedule of Proportionate Share of Net Pension Liability Schedule of Employer Contributions Schedule of Changes in the Commission's Total OPEB Liability Notes to Required Supplementary Information SUPPLEMENTARY INFORMATION Combining Statement of Net Position Combining Schedule of Revenues and Expenses Schedule of Division Cash Flows Statement of Net Position - Electric Division Detailed Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Electric Division Statement of Net Position - Natural Gas Division Detailed Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Natural Gas Division 1 2-4 5-9 10 11 12-13 14-36 37 38 39 40-44 45 46 47-48 49 50-52 53 54-56 HUTCHINSON UTILITIES COMMISSION TABLE OF CONTENTS DECEMBER 31, 2022 COMPLIANCE SECTION Independent Auditor's Report on Minnesota Legal Compliance Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Summary Schedule of Prior Audit Findings PAGE 57 58-59 .( HUTCHINSON UTILITIES COMMISSION ORGANIZATIONAL DATA DECEMBER 31, 2022 A Light and Power Commission was formed under the provisions of an amendment to the Hutchinson City Charter in 1935; the Commission was charged with the operation of the Municipal Electric Plant. Charter amendments approved December 17, 1954, provided for a change in the name to Hutchinson Utilities Commission. Additional duties under that amendment provided for the control and management of a municipal gas distribution system. A revised city charter was adopted at a special election September 17, 1987. Some of the pertinent sections of this new charter are briefly summarized in the following paragraphs. The Commission shall have control and management of the Light Plant, the Light Plant distribution system, the Gas Plant and the Gas Plant distribution system. The Commission shall consist of five persons, who shall be appointed by the Council. A member shall be appointed every year for a term of five years, to fill the place of the member whose term has expired. No member shall be appointed to more than two successive terms. The members of the Commission shall receive compensation for their services as determined annually by the Council. The Commission's charter approves one person on the Commission may live outside the city of Hutchinson limits as long as they are a ratepayer. The Commission shall provide for its own organization and rules of procedure and annually shall elect a president and vice president from among its members. It shall also appoint a secretary who may or may not be a member of the Commission. The Commissioners and their official titles were as follows: Matt Cheney Anthony Hanson Don Martinez Robert Wendorff Kathy Silvernale President Vice President Secretary Commissioner Commissioner This page intentionally left blank INDEPENDENT AUDITOR'S REPORT Members of the Hutchinson Utilities Commission Hutchinson, Minnesota Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of Hutchinson Utilities Commission, a fund of the City of Hutchinson, Minnesota, as of and for the year ended December 31, 2022 and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Commission, as of December 31, 2022, and the respective changes in financial position, and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Commission, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Report on Partial Comparative Information We have previously audited the Commission's 2021 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated March 30, 2022. In our opinion, the partial comparative information presented herein as of and for the year ended December 31, 2021 is consistent, in all material respects, with the audited financial statements from which it has been derived. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Sart�ell Office Ste 0 W www,cdscpa.c rn Members: American Institute of Certified Public Accountants, Minnesota Society of Certified Public Accountants In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Commission's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Commission's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, the Schedule of Proportionate Share of Net Pension Liability, the Schedule of Employer Contributions, the Schedule of Changes in the Commission's Total OPEB Liability and the related notes as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Commission's basic financial statements. The statements and schedules listed in the table of contents as supplementary information are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the organizational data section but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 29, 2023 on our consideration of the Commission's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Commission's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Commission's internal control over financial reporting and compliance. (,t7U&J, Z)k ar ,;&sl , 7'� CONWAY, DEUTH & SCHMIESING, PLLP CPAS & ADVISORS LITCHFIELD, MINNESOTA March 29, 2023 4 This page intentionally left blank REQUIRED SUPPLEMENTARY INFORMATION This page intentionally left blank HUTCHINSON UTILITIES COMMISSION MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2022 Overview of the Financial Statements Hutchinson Utilities Commission is a fund of the City of Hutchinson, Minnesota, and is responsible for the full operation and management of the electric and natural gas systems of the City. The annual report of Hutchinson Utilities Commission includes the financial statements, the independent auditor's report, and notes detailing the financial statements and this management's discussion and analysis report. The report also includes supplementary informatior for each of Hutchinson Utilities Commission's divisions. Financial Statements Required The financial statements report information about Hutchinson Utilities Commission using accounting methods similar to those used by private sector companies. These statements offer short-term and long-term financial information about its activities. The Statement of Net Position includes all of the Commission's assets and deferred outflows of resources, liabilities and deferred inflows of resources, and net position and provides information regarding the nature and amount of investments in various assets and obligations to the Commission's creditors. They also provide the basis for computing rate of return, evaluating the capital structure, and determining the liquidity and financial flexibility of the Commission. The Statement of Revenues, Expenses and Changes in Net Position accounts for all the current year's revenues and expenses. This statement measures the success of operations over the past year and can be used to determine whether all costs are recovered through user fees and other charges. This statement measures the Commission's profitability and credit worthiness. The Statement of Cash Flows provides information about the Commission's cash receipts and cash payments during the reporting period. This statement reports cash receipts, cash payments, and net changes in cash resulting in cash balances during the reporting period. Financial Statement Analvsis Total gross investment in capital and right to use assets increased to $160,932,837 in 2022 from $158,398,640 in 2021 Capital and right to use assets increased $2,534,197 primarily because of upgrades and improvements to the Cooling Tower repair project, Plant 2 Unilux Boiler project, Plant 1 SCADA Relay project and project to inspect and clean gas pipelines. Operating revenues increased and operating income decreased from 2021 by $942,557 and $1,062,694, respectively. Operating expenses increased from 2021 by $2,005,251. The primary increase in operating revenues was due to an increase in electric and gas sales in 2022, which increased by $692,005 and $75,502, respectively, from 2021. The primary area of the increase in operating expenses was due to an increase in gas for generation and pension expense related to changes in the Commission's Net Pension Liability. 5 HUTCHINSON UTILITIES COMMISSION MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2022 Significant Transactions In 2022, the Commission transferred $1,867,192 per agreement to the City of Hutchinson. Condensed Financial Statements A summary of the Statement of Net Position is presented in Table 1. Table 1 Condensed Statement of Net Position 2022 2021 Current Assets Restricted Assets Net Capital and Right to Use Assets Total Assets Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources Current Liabilities Long -Term Liabilities Total Liabilities Deferred Inflows of Resources Net Position Net Investment in Capital Assets Unrestricted Total Net Position Total Liabilities, Deferred Inflows of Resources and Net Position $ 30,486,315 $ 30,558,392 $ 3,689,480 3,688,606 73,706,492 75,539,658 107,882,287 109,786,656 1,628,530 2,174,328 $ 109,510,817 $ 111,960,984 $ $ 4,076,441 $ 3,266,278 $ 30,160,229 29,488,463 _ 34,236,670 32,754,741 131,405 2,721,857 Increase Decrease) (72,077) 874 (1,833,166) (1,904,369) (545,798) 450,1 810,163 671,766 1,481,929 (2,590,452) 53,541,798 53,543,167 (1,369) 21,600,944 22,941,219 (1,340,275) 75,142,742 76,484,386 (1,341,644) $ 109,510,817 $ 111,960,984 A 450,1 HUTCHINSON UTILITIES COMMISSION MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2022 Condensed Financial Statements (Cont'd) A summary of the Statement of Revenues, Expenses and Changes in Net Position is presented in Table 2. Table 2 Condensed Statement of Revenues, Expenses and Changes in Net Position Increase 2022 2021 (Decrease Operating Revenues Operating Expenses Cost of Operations Depreciation and Amortization Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses) Change in Net Position Net Position, Beginning of Year Net Position, End of Year Budgetary Highlights $ 45,845,410 $ 44,902,853 $ 942,557 41,183,409 39,307,654 1,875,755 4,561,045 4,431,549 129,496 45,744,454 43,739,203 2,005,251 100,956 1,163,650 (1,062,694) (1,442,600) (510,336) (932,264) (1,341,644) 653,314 (1,994,958) 76,484,386 75,831,072 653,314 $ 75,142,742 $ 76,484,386 $ (1,341,644) The Commission adopts an annual Operating Budget and a Capital Improvement Budget. Because of its enterprise nature and in order to comply with Federal Energy Regulatory Commission accounting and reporting requirements, the budgets are not operated as statutory budgets. The Commission and Utilities staff review budget results monthly and the budget is used as a financial management tool. A summary of the 2022 Budget Analysis is presented in Table 3. 7 HUTCHINSON UTILITIES COMMISSION MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2022 Budgetary Highlights (Cont'd) Table 3 Condensed Budget Analysis Operating Revenues Operating Expenses Cost of Operations Depreciation and Amortization Expense Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses) Change in Net Position Net Position, Beginning of Year 2022 Budget 2022 Actual Over (Under) $ 43,034,680 $ 45,845,410 $ 2,810,730 37,625,434 41,183,409 3,557,975 4,400,000 4,561,045 161,045 42,025,434 45,744,454 3,719,020 1,009,246 100,956 (908,290) (367,443) (1,442,600) (1,075,157) 641,803 (1,341,644) (1,983,447) 76,484,386 76,484,386 Net Position, End of Year $ 77,126,189 $ 75,142,742 $ (1,983,44 Actual operating revenues were $2,810,730 over budgeted revenues while operating income (loss) was under budget by $908,290. The actual operating revenues for the Commission had a variance of approximately 6.53% from budgeted operating revenues. Operating expenses were $3,719,020 more than budgeted. Purchased Power and Gas for Generation expenses were higher than budgeted due to rising Natural Gas prices along with an increased Gas demand for power generation. In 2018, the Commission entered into an agreement for a specific Payment in Lieu of Taxes (PILOT). The agreement requires the Commission to make payments equaling $1,867,192 in 2022. Starting in calendar year 2007, the Commission reallocated its common expenses between the two divisions. Formulas were developed and used to establish the common expenses between the two utilities, in particular, Customer Service and Collection Accounts and the Administrative and General Accounts. Capital and Right to Use Assets and Long -Term Liability Activity The Commission's investment in capital and right to use assets increased to $160,932,837 in 2022. This is an increase of $2,534,197 from 2021. Refer to Note 5 of the Notes to the Financial Statements for the Commission's 2022 capital asset activity. At year-end, the Commission had $21,810,000 in bonds outstanding and $840,886 in compensated absences. Refer to Note 6 of the Notes to the Financial Statements for a schedule showing the Commission's long-term liability activity. At December 31, 2022, the Commission adopted Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. This implementation allows the Commission to report its right to use lease assets and related long-term leases. The Solar Array Land Lease Liability had an ending balance as of December 31, 2022 of $818,142. See Note 7 in the Financial Statements for a schedule showing the Commission's long-term lease activity. 0 HUTCHINSON UTILITIES COMMISSION MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2022 Economic Factors and Next Year's Budget The Commission considered many local community and external energy industry factors when setting the Electric & Gas Division fiscal year 2023 budgets, rates, and fees that will be charged to customers. Of significance was the continual increase in costs associated with purchased electrical wholesale power and transmission fees. Conversely, the Gas Division continues to see favorable prices for the procurement of the natural gas commodity but is budgeting for higher prices. Both divisions continue to see consistent energy consumption forecasts in the near future. The Commission continued to "bundle" its electric wholesale rate to its retail customers. What this means is the operating income the Commission receives from its wholesale KWHR sales is applied to the wholesale rate it charges its retail customers. This "bundling" effect reduces the overall blended cost of wholesale power which aids in retail rate pricing stability. Contact Information Any questions regarding information contained in this report and requests for additional information should be addressed to the Hutchinson Utilities Commission, 225 Michigan Street SE, Hutchinson, MN 55350 or by phone at (320) 587-4746. 9 This page intentionally left blank BASIC FINANCIAL STATEMENTS This page intentionally left blank HUTCHINSON UTILITIES COMMISSION STATEMENT OF NET POSITION DECEMBER 31, 2022 WITH PARTIAL COMPARATIVE AMOUNTS AS OF DECEMBER 31, 2021 2022 2021 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets Current Assets Cash and Investments $ 23,394,283 $ 24,267,648 Receivables Accounts Receivable (Net of Allowance for Doubtful Accounts of $77,677 and $73,427, Respectively) 4,348,083 3,824,441 Interest Receivable 118,284 94,416 Sales Tax Receivable 224,217 140,776 Inventory 2,212,972 2,184,064 Prepaid Items 188,476 47,047 Total Current Assets 30,486,315 30,558,392 Noncurrent Assets Restricted Assets Cash and Investments 3,689,480 3,688,606 Capital and Right to Use Assets Assets Not Being Depreciated or Amortized 5,579,725 4,627,845 Other Capital and Right to Use Assets, Net of Depreciation and Amortization 68,126,767 70,911,813 Net Capital Assets 73,706,492 75,539,658 Total Noncurrent Assets 77,395,972 79,228,264 Total Assets 107,882,287 109,786,656 Deferred Outflows of Resources 1,628,530 2,174,328 Total Assets and Deferred Outflows of Resources $ 109,510,817 $ 111,960,984 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Liabilities Current Liabilities Accounts Payable $ 3,378,907 $ 2,586,056 Customer Deposits 326,775 313,551 Accrued Expenses Interest 65,534 75,075 Salaries Payable 305,225 291,596 Total Current Liabilities 4,076,441 3,266,278 Long -Term Liabilities Net Pension Liability 5,361,862 2,959,420 Total OPEB Liability 103,307 125,549 Other Long -Term Liabilities Due Within One Year 2,828,641 2,678,822 Other Long -Term Liabilities Due in More Than One Year 21,866,419 23,724,672 Total Long -Term Liabilities 30,160,229 29,488,463 Total Liabilities 34,236,670 32,754,741 Deferred Inflows of Resources 131,405 2,721,857 Net Position Net Investment in Capital Assets 53,541,798 53,543,167 Unrestricted 21,600,944 22,941,219 Total Net Position 75,142,742 76,484,386 Total Liabilities, Deferred Inflows of Resources and Net Position $ 109,510,817 $ 111,960,984 See Accompanying Notes to the Financial Statements 10 HUTCHINSON UTILITIES COMMISSION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION YEAR ENDED DECEMBER 31, 2022 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2021 OPERATING REVENUES Electric Energy Sales Natural Gas Sales Other Operating Revenues Total Operating Revenues OPERATING EXPENSES Production Operations Maintenance Purchased Power/Gas Other Power Supply Transmission Operations Maintenance Distribution Operations Maintenance Customer Accounts Expense Sales Expense Administrative and General Depreciation and Amortization Expense Contribution to City of Hutchinson Total Operating Expenses Operating Income (Loss) NONOPERATING REVENUES (EXPENSES) Interest Income Merchandise and Contract Work, Net Miscellaneous Income Gain (Loss) on Disposal of Assets Bond Premium Interest Expense Total Nonoperating Revenues (Expenses) Change in Net Position NET POSITION, BEGINNING OF YEAR NET POSITION, END OF YEAR See Accompanying Notes to the Financial Statements 11 2022 2021 $ 30,321,137 $ 29,629,132 13, 520,128 13,444, 626 2,004,145 1,829,095 45,845,410 44,902,853 5,702,451 4,281,812 1,018,959 770,276 22,521,870 23,251,254 299,646 319,384 3,292,156 3,265,170 113,737 74,405 2,027,003 1,805,124 1,057,998 625,625 475,355 437,379 232,897 211,321 2,574,145 2,398,712 4,561,045 4,431,549 1,867,192 1,867,192 45,744,454 43,739,203 100,956 1,163,650 (878,835) 43,804 18,439 (38,938) 96,081 164,760 (3,693) 85,318 219,065 219,065 (893,657) (984,345) (1,442,600) (510,336) (1,341,644) 653,314 76,484,386 75,831,072 $ 75,142,742 $ 76,484,386 HUTCHINSON UTILITIES COMMISSION STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2022 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2021 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers Payments Received from Other Sources Payments to Suppliers Payments to Employees Net Cash Provided (Used) by Operating Activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Other Noncapital Income (Expense) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Additions to Utility Plant Proceeds from Sale of Assets Principal Payments on Long -Term Liabilities Interest Paid on Long -Term Liabilities Net Cash Provided (Used) by Capital and Related Financing Activities CASH FLOWS FROM INVESTING ACTIVITIES Interest Income Net Increase (Decrease) in Cash and Cash Equivalents CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR CASH AND CASH EQUIVALENTS, END OF YEAR RECONCILIATION OF CASH AND CASH EQUIVALENTS Current Assets - Cash and Investments Restricted Assets - Cash and Investments Total Cash and Cash Equivalents See Accompanying Notes to the Financial Statements 12 2022 2021 $ 43,330,847 $ 42,609,364 1,920,704 1,812,566 (35,577,908) (34,414,191) (4,511,323) (5,099,449) 5,162,320 4,908,290 114,520 125,822 (1,954,412) (3,269,717) 64,156 117,891 (2,453,174) (2,240,000) (903,198) (991,812) (5,246,628) (6,383,638) (902,703) 47,374 (872,491) (1,302,152) 27,956,254 29,258,406 $ 27,083,763 $ 27,956,254 $ 23,394,283 $ 24,267,648 3,689,480 3,688,606 $ 27,083,763 $ 27,956,254 HUTCHINSON UTILITIES COMMISSION STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2022 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2021 RECONCILIATION OF OPERATING INCOME (LOSS) TO CASH FLOWS FROM OPERATING ACTIVITIES Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Depreciation and Amortization Pension Related Adjustments OPEB Related Adjustments (Increase) Decrease in Assets Accounts Receivable Sales Tax Receivable Inventory Prepaid Items Increase (Decrease) in Liabilities Accounts Payable Customer Deposits Salaries Payable Compensated Absences Net Cash Provided (Used) by Operating Activities 2022 2021 $ 100,956 $ 1,163,650 4,561,045 4,431,549 363,335 (274,004) (27,789) 12,487 (523,642) (352,880) (83,441) (16,529) (28,908) (222,681) (141,429) (17,459) 792,851 291,613 13,224 (111,514) 13,629 (5,088) 122,489 9,146 $ 5,162,320 $ 4,908,290 NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES In 2022, a lease obligation of $841,316 was incurred when the Commission entered into a lease for the right to use land for a solar array. See Accompanying Notes to the Financial Statements 13 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. REPORTING ENTITY Hutchinson Utilities Commission, a fund of the City of Hutchinson, Minnesota, is governed by five members who are appointed by the Council of the City of Hutchinson, Minnesota. The accompanying financial statements present only the Hutchinson Utilities Commission fund and are not intended to present fairly the financial position of the City of Hutchinson, Minnesota. The financial statements present the Commission and its component units. The Commission includes all funds, organizations, institutions, agencies, departments and offices that are not legally separate from such. Component units are legally separate entities for which the Commission is financially accountable, or for which the exclusion of the component unit would render the financial statements of the Commission misleading. The criteria used to determine if the Commission is financially accountable for a component unit includes whether or not 1) the Commission appoints the voting majority of the potential component unit's governing body and is able to impose its will on the potential component unit or is in a relationship of financial benefit or burden with the potential component unit, or 2) the potential component unit is fiscally dependent on and there is a potential for the potential component unit to provide specific financial benefits to, or impose specific financial burdens on, the Commission. As a result of applying the component unit definition criteria above, the Commission does not have any component units. B. FUND ACCOUNTING The operations of the Commission are recorded as a proprietary fund. The proprietary fund is used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. C. MEASUREMENT FOCUS. BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION The financial statements include the operations of the City of Hutchinson Municipal Utilities. The Electric and Natural Gas divisions are treated as a single enterprise fund of the City of Hutchinson, Minnesota. The Utilities are governed by the Hutchinson Utilities Commission, which is appointed by the City Council. No other operations are controlled by the Hutchinson Utilities Commission. The accounts of the Commission are organized on the basis of fund accounting. The operation of the fund is accounted for with a separate set of self -balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position, revenues, and expenses. Government resources are allocated to and accounted for in the individual fund based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. 14 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION (Cont'd) The proprietary fund is accounted for using the accrual basis of accounting and economic resources measurement focus. Revenues are recognized when earned, and expenses are recognized when incurred. Revenue from electricity and gas sales is reflected in the accounts only at the time such revenue is actually billed to customers. Accordingly, no recognition is given in the accounts for revenue from sales between established cycle billing dates. The proprietary fund distinguishes operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. It is generally the Commission's policy to use restricted resources first, then unrestricted resources as they are needed when an expense is incurred for purposes for which both restricted and unrestricted net position is available. D. DEPOSITS AND INVESTMENTS The Commission's cash and cash equivalents are considered to be cash on hand, deposits and highly liquid debt instruments purchased with original maturities of three months or less from the date of acquisition. The Commission may invest in the following types of investments as authorized by Minn. Stat. §§118A.04 and 118A.05: (1) securities which are direct obligations or are guaranteed or insured issues of the United States, its agencies, its instrumentalities, or organizations created by an act of Congress, except mortgage - backed securities defined as "high risk" by Minn. Stat. §118A.04, subd. 6; (2) mutual funds through shares of registered investment companies provided the mutual fund receives certain ratings depending on its investments; (3) general obligations of the State of Minnesota and its municipalities, and in certain state agency and local obligations of Minnesota and other states provided such obligations have certain specified bond ratings by a national bond rating service; (4) time deposits that are fully insured by the Federal Deposit Insurance Corporation or bankers acceptances of United States banks; (5) commercial paper issued by United States corporations or their Canadian subsidiaries that is rated in the highest quality category by at least two nationally recognized rating agencies and matures in 270 days or less; and 15 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) D. DEPOSITS AND INVESTMENTS (Cont'd) (6) with certain restrictions, in repurchase agreements, securities lending agreements, joint powers investment trusts, and guaranteed investment contracts. Cash and investments were comprised of deposit accounts, money market accounts, municipal bonds, US treasury notes, FFCB bonds, FHLB bonds, and brokered certificates of deposit. The Commission categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets. Level 2 inputs are significant other observable inputs. Level 3 inputs are significant unobservable inputs. The Commission has an investment policy in place that addresses interest rate risk, credit risk, concentration of credit risk and custodial risk as follows: Custodial Credit Risk - Deposits: For deposits, this is the risk that in the event of bank failure, the Commission's deposits may not be returned to it. Minnesota Statutes requires that all Commission deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110 percent of deposits in excess of FDIC Insurance. The Commission's investment policy states the collateralization level will be 110% of the market value of principal and accrued interest. When the pledged collateral consists of notes secured by first mortgages, the collateral level will be 140% of the market value of principal and accrued interest. Authorized collateral includes the obligations of the U.S. Treasury, agencies, and instrumentalities, shares of investment companies whose only investments are in the aforementioned securities, obligations of the State of Minnesota or its municipalities, bankers' acceptances, futures contracts, repurchase and reverse repurchase agreements, and commercial paper of the highest quality with a maturity of no longer than 270 days, as well as certain first mortgage notes, and certain other state or local government obligations. Minnesota statutes require that securities pledged as collateral be held in safekeeping by the Commission treasurer or in a financial institution other than that furnishing the collateral. Interest Rate Risk - This is the risk that market values of securities in a portfolio would decrease due to changes in market interest rates. The Commission's investment policy states the Commission should manage their interest rates based on safety, liquidity and the overall rate of return on the investment. The portfolio should contain both short-term and long-term investments to meet anticipated cash flow requirements. Extended maturities may be utilized to take advantage of higher yields; however, no investment shall be made with a term of more than ten years. Credit Risk - Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law limits investments in commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations. The Commission's investment policy states it will comply with Minnesota Statutes Chapter 118A. HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) D. DEPOSITS AND INVESTMENTS (Cont'd) Concentration of Credit Risk: This is the risk of loss attributed to the magnitude of an investment in a single issuer. Investments should be diversified to avoid incurring unreasonable risk inherent in over investing in specific instruments, individual financial institutions or maturities. The Commission's investment policy states the Commission will attempt to diversify its investments according to type and maturity. Custodial Credit Risk - Investments: For an investment, this is the risk that in the event of the failure of the counterparty, the Commission will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Commission's investment policy states when investments purchased by the Commission are held in safekeeping by a broker/dealer, they must provide asset protection of $500,000 through the Securities Investor Protection Corporations (SIPC) and at least another $2,000,000 Supplemental Insurance Protection, provided by the broker dealer. E. RECEIVABLES AND OPERATING REVENUES AND EXPENSES An allowance for doubtful accounts is recorded based on historical electric and natural gas revenues, historical loss levels, and an analysis of the collectability of individual accounts. Meters are read throughout the month and revenues are recognized when utility services are billed to customers. Hutchinson Utilities Commission did not accrue revenues for services provided but not billed at the end of the year. Monthly billings from the wholesale power and natural gas suppliers, which are for power and natural gas costs to the last day of the month, are reflected in the accounts. F. INVENTORY Inventories of materials and supplies are recorded at average cost, which does not exceed market. G. PREPAID ITEMS Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in the financial statements. H. CAPITAL AND RIGHT TO USE ASSETS Capital and right to use assets, both tangible and intangible, which include property, plant, equipment and infrastructure assets (e.g., roads, sidewalks and similar items) and easements, are recorded at cost. Right to use assets are capitalized at the present value of minimum lease payments. The cost of additions to capital assets includes contracted work, direct labor, and materials. Major outlays for capital assets and improvements are capitalized as projects are constructed. Repairs, replacement, and the renewal of items determined to be less than units of property are charged to maintenance. Donated assets are recorded as capital assets at their estimated acquisition value at the date of donation. 17 HUTCHINSON UTILITIES COMMISSION NOTE 1 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) H. CAPITAL AND RIGHT TO USE ASSETS (Cont'd) Tangible and intangible capital and right to use assets of the Commission are amortized or depreciated using the straight-line, full month convention method over the following estimated useful lives: Buildings 35-60 years Transmission plant (electric) 20-35 years Distribution plant (electric) 20-35 years Building improvement 15-30 years Transmission plant (gas) 10-45 years Distribution plant (gas) 10-45 years Generation plant 10-30 years General plant 5-10 years Vehicles 5-10 years Office equipment 3-5 years Computer equipment 3-5 years Capital assets not being depreciated include land, easements and construction in progress, if any. I. DEFERRED OUTFLOWS OF RESOURCES In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. Deferred outflows of resources represents a consumption of net position that applies to a future reporting period. During that future period, it will be recognized as an outflow of resources (expense). The Commission has two items that qualify for reporting in this category on the financial statements which is related to pensions and other post -employment benefits. J. COMPENSATED ABSENCES The liability for compensated absences reported in the financial statements consists of unpaid, accumulated vacation and sick leave balances. The liability has been calculated using the vesting method, in which leave amounts for both employees who currently are eligible to receive termination payments and other employees who are expected to become eligible in the future to receive such payments upon termination are included. Compensated absences are accrued when incurred in the financial statements. The Statement of Net Position reports both current and noncurrent portions of compensated absences using full accrual accounting. The current portion consists of an amount based on a trend analysis of current usage of vacation and vested sick leave. The noncurrent portion consists of the remaining amount of vacation and total vested sick leave. Both union and nonunion employees can accrue a maximum of 200 hours per year of vacation pay. Both union and nonunion employee may carry over a maximum of two times their annual accrual of vacation into the next year. Each permanent nonunion full-time employee must use at least 40 hours of vacation per year. Vacation pay is 100% payable at severance of employment. A maximum of 720 hours can be accrued for sick leave. After accumulation of 720 hours, a payback of one-third of the amount over 720 hours will be made annually. Upon retirement or death before retirement, severance payable is paid back at one-third of the amount over 240 hours will be made. 18 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) K. PENSIONS For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA's fiduciary net position have been determined on the same basis as they are reported by PERA. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The Commission participates in various pension plans; total pension expense for the year ended December 31, 2022, was $752,850. The components of pension expense are noted in the plan summaries. L. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS Employees of the Commission pay premiums based on a negotiated schedule. Since the insurance rate is not based on age, the Commission has an implicit rate subsidy factor in postemployment health care expenses. Additionally, Minnesota Statutes require the Commission to allow retired employees to stay on the health care plan with the retiree responsible to pay the entire premium for continuation coverage. The Commission's bargaining agreement and personnel policy do not provide for any contributions upon employee retirement. M. LONG-TERM OBLIGATIONS In the financial statements, long-term debt and other long-term obligations are reported as liabilities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Lease liabilities are measured at the present value of payments expected to be made and amortized as a component of interest expense over the lease term. N. DEFERRED INFLOWS OF RESOURCES In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. Deferred inflows of resources represents an acquisition of net position that applies to a future reporting period. During that future period, it will be recognized as an inflow of resources (revenue). The Commission has one item that qualifies for reporting in this category on the financial statements which is related to pensions. O. NET POSITION Net position represents the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources in the financial statements. Net investment in capital assets consists of capital assets, net of accumulated depreciation, and right to use assets, net of accumulated amortization, reduced by the outstanding balance of any long-term liabilities used to build or acquire the capital and right to use assets. Net position is reported as restricted in the financial statements when there are limitations on their use through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Unrestricted net position consists of all other net position that does not meet the definition of restricted or net investment in capital assets. 19 HUTCHINSON UTILITIES COMMISSION NOTE 1 NOTE 2 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) P. BUDGETS AND BUDGETARY ACCOUNTING The General Manager is responsible for preparing and submitting an annual budget. Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Q. USE OF ESTIMATES The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and deferred outflows of resources, and liabilities and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. R. PRIOR YEAR INFORMATION The basic financial statements include certain prior -year partial comparative information in total but not at the level of detail required for a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Commission's financial statements for the year ended December 31, 2021, from which the partial information was derived. DEPOSITS AND INVESTMENTS A. DEPOSITS In accordance with applicable Minnesota Statutes, Hutchinson Utilities Commission maintains deposits at depository banks authorized by the Commission. Custodial Credit Risk - Deposits: The Commission's bank balances were not exposed to custodial credit risk because they were fully insured through the Federal Deposit Insurance Corporation as well as collateralized with securities held by the pledging financial institution's trust department or agent and in the Commission's name. Deposits in Bank Money Market Accounts Petty Cash Total Deposits $ 9,011,792 104,071 850 $ 9,116,713 20 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 2. DEPOSITS AND INVESTMENTS (Cont'd) B. INVESTMENTS The Commission had the following investments: Municipal Bonds US Treasury Notes FFCB Bonds FHLB Bonds Brokered Certificates of Deposit Interest Rate Risk Fair Value Maturity Date $ 9,011,218 1-13 years 2,986,540 1 year 993,700 2 years 1,537,330 4 years 3,438,262 1-5 years Total Investments $ 17,967,050 The Municipal Bonds had a variety of ratings. The US Treasury Notes, FFCB Bonds and FHLB Bonds were rated AAA. The Brokered Certificates of Deposit were not rated. Investment's fair value measurements are as follows: Fair Value Measuring Unit Fair Level Level Level Value Inputs Inputs Inputs Municipal Bonds $ 9,011,218 $ $ 9,011,219 $ US Treasury Notes 2,986,540 2,986,540 FFCB Bonds 993,700 993,700 FHLB Bonds 1,537,330 1,537,330 Brokered Certificates of Deposit 3,438,262 3,438,262 Total Investments $ 17,967,050 $ 0 $ 17,967,051 $ 0 The following is a summary total of deposits and investments: Deposits (Note 2.A.) $ 9,116,713 Investments (Note 2.B.) 17,967,050 Total Deposits and Investments 21 $ 27,083,763 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 2. DEPOSITS AND INVESTMENTS (Cont'd) B. INVESTMENTS (Cont'd) Deposits and investments are presented in the basic financial statements as follows: Current Assets Cash and Investments $ 23,394,283 Noncurrent Assets Restricted Assets Cash and Investments 3,689,480 Total Deposits and Investments $ 27,083,763 NOTE 3. DEPOSITS AND INVESTMENTS - RESTRICTED Restricted cash and investments are designated by bond covenants for specific purposes. Restricted cash consisted of the following: Public Utility Revenue Refunding Bonds, Series 2012A Funds required to be held in a debt service reserve account based on criteria set aside in the bond issuance document. $ 2,368,573 Public Utility Revenue Bonds, Series 2017B Funds required to be held in a debt service reserve account based on criteria set aside in the bond issuance document. 1,320,907 Total Cash and Investments - Restricted $ 3,689,480 The following items have been designated by the Commission for the following purposes: Rate Stabilization - Electric $ 395,205 Rate Stabilization - Gas 249,991 Payment in Lieu of Taxes 1,904,536 Catastrophic 1,000,000 Expansion and Development Reserve Account Funds designated for the expansion and development of the utility. 3,450,000 60 Days Operating Cash 6,432,490 Total Cash and Investments - Designated $ 13,432,222 The above Commission designated amounts are included in the Current Assets -Cash and Investments total. 22 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 4. INVENTORY Inventory consists of the following: Electric Division Fuel Oil and Lubricants $ 98,318 Plant Systems Material 8,327 Engine Parts 890,925 Distribution Materials 540,189 Transformers 164,156 Total Electric Division 1,701,915 Natural Gas Division Fittings 207,487 Transmission Line Gas 303,570 Total Natural Gas Division 511,057 Total Inventory $ 2,212,972 23 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 5. CAPITAL ASSETS Capital asset activity was as follows: Capital Assets, Not Being Depreciated Land Easements Construction in Progress Total Capital Assets, Not Being Depreciated Capital Assets, Being Depreciated Beginning Ending Balance Increase Decrease Balance $ 559,528 $ $ $ 559,528 4,030,760 4,030,760 37,557 983,821 (31,941) 989,437 4,627,845 983,821 (31,941) 5,579,725 Structures and Improvements 134,359,965 924,936 Equipment 19,202,198 77,596 Software 208,632 Total Capital Assets, Being Depreciated 153,770,795 1,002,532 Right to Use Assets, Being Amortized Land 841,316 Less Accumulated Depreciation for Structures and Improvements Equipment Software Total Accumulated Depreciation Less Accumulated Amortization for Land 71,271,376 3,853,596 11,419,164 677,891 168,442 1,514 82,858,982 4,533,001 28,044 (239,472) 135,045,429 (22,059) 19,257,735 208,632 (261,531) 154,511,796 841,316 (171,623) 74,953,349 (22,059) 12,074,996 169,956 (193,682) 87,198,301 28,044 Total Capital and Right to Use Assets, Being Depreciated and Amortized, Net 70,911,813 (2,717,197) (67,849) 68,126,767 Net Capital Assets $ 75,539,658 $ (1,733,376) $ (99,790) $ 73,706,492 Depreciation and amortization expense was charged to the following functions: Electric Division Natural Gas Division $ 3,468,796 1,092,249 Total Depreciation and Amortization Expense $ 4,561,045 24 HUTCHINSON UTILITIES COMMISSION NOTE 6 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 LONG-TERM LIABILITIES A. COMPONENTS OF LONG-TERM LIABILITIES Interest Rates Public Utility Revenue Refunding Bonds, Series 2012A 4.00-5.00% Public Utility Revenue Bonds, Series 2017B 2.50-4.00% Bond Premium Long -Term Leases 2.50% Compensated Absences Total Long -Term Liabilities Final Balance Maturity Outstanding 12/01/2026 $ 7,780,000 12/01 /2037 14, 030, 000 1,226,032 1 /31 /2051 818,142 840,886 $ 24,695,060 On July 19, 2012, Hutchinson Utilities Commission issued Public Utility Revenue Refunding Bonds, Series 2012A for $20,720,000, with an interest rate of 4.00% to 5.00%. The Commission issued the bonds to advance refund a portion of the 2013 through 2025 maturities of the Public Utility Revenue Bonds, Series 2003B. The Commission completed the refunding to reduce its debt service payment over the next 14 years by $1,638,277. This results in an economic gain (difference between the present values of the debt service payments on the old and new debt) of $1,245,620. On October 31, 2017, the Hutchinson Utilities Commission issued Public Utility Revenue Bonds of 2017 for $16,675,000. The proceeds of the issue were used to purchase and install new generators for the expansion of electric generation. B. MINIMUM DEBT PAYMENTS Annual debt service requirements to maturity for bonded debt is as follows: Year Ending December 31 Revenue Refunding Bonds, Series 2012A Principal Interest Revenue Bonds, Series 2017B Principal Interest 2023 $ 1,825,000 $ 333,550 $ 730,000 $ 452,856 2024 1,895,000 278,800 760,000 423,656 2025 1,980,000 203,000 790,000 393,256 2026 2,080,000 104,000 820,000 361,656 2027 850,000 328,856 2028-2032 4,675,000 1,232,934 2033-2037 5,405,000 502,907 $ 7,780,000 $ 919,350 $ 14,030,000 $ 3,696,121 25 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 6. LONG-TERM LIABILITIES (Cont'd) C. CHANGES IN LONG-TERM LIABILITIES Beginning Ending Due Within Balance Additions Reductions Balance One Year Revenue Refunding Bonds, Series 2012A $ 9,510,000 $ $ (1,730,000) $ 7,780,000 $ 1,825,000 Revenue Bonds, Series 2017B 14,730,000 (700,000) 14,030,000 730,000 Bond Premium 1,445,097 (219,065) 1,226,032 219,065 Long -Term Leases 841,316 (23,174) 818,142 19,546 Compensated Absences* 718,397 122,489 840,886 35,030 Total Long -Term Liabilities $ 26,403,494 $ 963,805 $ (2,672,239) $ 24,695,060 $ 2,828,641 * The change in compensated absences liability is presented as a net change. D. PLEDGED REVENUES Future revenue pledged for the payment of long-term debt is as follows: Bond Issue/ Percent Remaining Principal Pledged Use of Proceeds/ of Total Term of Principal and Interest Revenue Type Debt Service Pledge and Interest Paid Received Revenue Refunding Bonds, Series 2012A Natural Gas Utility Charges 100% 2012-2026 $ 8,699,350 $ 2,150,050 $ 13,520,128 Revenue Bonds, Series 2017B Electric Utility Charges 100% 2017-2037 17,726,121 1,180,856 30,321,137 NOTE 7. LONG-TERM LEASES At December 31, 2022, the Commission adopted Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. This implementation allows the Commission to report its right to use lease assets and related long-term leases. KPI HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 7. LONG-TERM LEASES (Cont'd) Lease agreements are summarized as follows: Origination Payment Payment Date Terms Amount Interest Rate Solar Array Land Lease 1/31/2022 30 years $ 40,000 2.50% Current Year Original Lease Additional Balance Liability Outflows Outstanding Solar Array Land Lease $ 841,316 $ $ 818,142 Land was leased by the Commission from the City of Hutchinson to be used to construct and operate a solar power generating facility starting on 1/31/2022. The lease is for a period of 20 years and can be renewed for up to two five year extensions. The interest rate on the lease is a fixed rate of 2.50%. Annual requirements to amortize lease obligations and related interest are as follows: Year Ending December 31 Principal Interest 2023 $ 19,546 $ 20,454 2024 20,035 19,965 2025 20,536 19,464 2026 21,049 18,951 2027 21,576 18,424 2028-2032 116,244 83,756 2033-2037 131,519 68,481 2038-2042 148,802 51,198 2043-2047 168,356 31,644 2048-2052 150,479 9,521 $ 818,142 $ 341,858 NOTE 8. RISK MANAGEMENT The Commission purchases commercial insurance coverage through the League of Minnesota Cities Insurance Trust (LMCIT), which is a public entity risk pool currently operating as a common risk management and insurance program, with cities in the state. The Commission pays an annual premium to the LMCIT for its insurance coverage. The LMCIT is self-sustaining through commercial companies for excess claims. The Commission is covered through the pool for any claims incurred but unreported, but retains risk for the deductible portion of its insurance policies. The amount of these deductibles is considered immaterial to the financial statements. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. 27 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 8. RISK MANAGEMENT (Cont'd) The Commission's workers' compensation insurance policy is retrospectively rated. With this type of policy, final premiums are determined after loss experience is known. The amount of premium adjustment for 2022 is estimated to be immaterial based on workers' compensation rates and salaries for the year. There are no other claims liabilities reported in the funds based on the requirements of accounting standards, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. NOTE 9. DEFINED BENEFIT PENSION PLANS - STATEWIDE A. PLAN DESCRIPTION The Commission participates in the following cost -sharing multiple -employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA's defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. General Employees Retirement Plan (GERP; General Employees Plan; accounted for in the General Employees Fund): All full-time and certain part-time employees of the Commission are covered by the General Employees Plan. General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. B. BENEFITS PROVIDED PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state Legislature. Vested, terminated employees who are entitled to benefits, but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. General Employees Plan benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2% of average salary for each of the first 10 years of service and 1.7% of average salary for each additional year. Under Method 2, the accrual rate for Coordinated members is 1.7% of average salary for all years of service. For members hired prior to July 1, 1989 a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989 normal retirement age is the age for unreduced Social Security benefits capped at 66. 28 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 9. DEFINED BENEFIT PENSION PLANS - STATEWIDE (Cont'd) B. BENEFITS PROVIDED (Cont'd) GERP Benefits: Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50 percent of the cost -of -living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. C. CONTRIBUTIONS Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state Legislature. GERP Contributions: Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2022 and the Commission was required to contribute 7.50 percent for Coordinated Plan members. The Commission's contributions to the General Employees Fund for the year ended December 31, 2022, were $388,459. The Commission's contributions were equal to the required contributions as set by state statute. D. PENSION COSTS GERP Pension Costs: At December 31, 2022, the Commission reported a liability of $5,361,862 for its proportionate share of the General Employees Fund's net pension liability. The Commission's net pension liability reflected a reduction due to the State of Minnesota's contribution of $16 million. The State of Minnesota is considered a non -employer contributing entity and the state's contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the Commission totaled $157,228. The net pension liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Commission's proportionate share of the net pension liability was based on the Commission's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2021, through June 30, 2022, relative to the total employer contributions received from all of PERA's participating employers. The Commission's proportion share was 0.0677 percent at the end of the measurement period and 0.0693 percent for the beginning of the period. 29 HUTCHINSON UTILITIES COMMISSION NOTE 9 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 DEFINED BENEFIT PENSION PLANS - STATEWIDE (Cont'd) D. PENSION COSTS (Cont'd) Commission's Proportionate Share of the Net Pension Liability $ 5,361,862 State of Minnesota's Proportionate Share of the Net Pension Liability Associated With the Commission 157,228 Total $ 5,519,090 There were no provision changes during the measurement period. For the year ended December 31, 2022, the Commission recognized pension expense of $830,393 for its proportionate share of GERP's pension expense. In addition, the Commission recognized an additional $23,493 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $16 million to the General Employees Fund. At December 31, 2022, the Commission reported its proportionate share of GERP's deferred outflows of resources and deferred inflows of resources from the following sources: Differences Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Collective Difference Between Projected and Actual Investment Earnings Changes in Proportion Contributions Paid to GERP Subsequent to Measurement Date Totals Deferred Deferred Outflows of Inflows of Resources Resources $ 44,786 $ 58,481 1,241,299 21,679 43,167 94,509 51,245 193,713 $ 1,617,474 $ 131,405 The $193,713 reported as deferred outflows of resources related to pensions resulting from Commission contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2023. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year ended December 31 2023 2024 2025 2026 Pension Expense Amount $ 512,553 498,995 (204,092) 484,900 30 HUTCHINSON UTILITIES COMMISSION NOTE 9 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 DEFINED BENEFIT PENSION PLANS - STATEWIDE (Cont'd) E. LONG-TERM EXPECTED RETURN ON INVESTMENT The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best -estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset Class Target Allocation Long -Term Expected Real Rate of Return Domestic Equity 33.50% International Equity 16.50% Fixed Income 25.00% Private Markets 25.00% 100.00% F. ACTUARIAL METHODS AND ASSUMPTIONS 5.10% 5.30% 0.75% 5.90% The total pension liability in the June 30, 2022, actuarial valuation was determined using an individual entry -age normal actuarial cost method. The long-term rate of return on pension plan investments used in the determination of the total liability is 6.5 percent. This assumption is based on a review of inflation and investments return assumptions from a number of national investment consulting firms. The review provided a range of return investment return rates deemed to be reasonable by the actuary. An investment return of 6.5 percent was deemed to be within that range of reasonableness for financial reporting purposes. Inflation is assumed to be 2.25 percent for the General Employees Plan. Benefit increases after retirement are assumed to be 1.25 percent for the General Employees Plan through December 31, 2054 and 1.5 percent thereafter. Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent after one year of service to 3.0 percent after 27 years of service. Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. The tables are adjusted slightly to fit PERA's experience. Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent four-year experience study for the General Employees Plan was completed in 2019. The assumption changes were adopted by the Board and became effective with the July 1, 2020 actuarial valuation. The following changes in actuarial assumptions occurred in 2022: GFRP The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 31 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 9. DEFINED BENEFIT PENSION PLANS - STATEWIDE (Cont'd) G DISCOUNT RATE The discount rate for the General Employees Plan used to measure the total pension liability in 2022 was 6.5 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees Fund was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long- term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. H. PENSION LIABILITY SENSITIVITY The following presents the Commission's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the Commission's proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: GERP 1 % Lower 5.50% $ 8,469,342 Current Discount Rate 6.50% 5,361,862 1 % Higher 7.50% 2,813,249 I. PENSION PLAN FIDUCIARY NET POSITION Detailed information about each pension plan's fiduciary net position is available in a separately -issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. NOTE 10. DEFERRED COMPENSATION PLAN The Commission offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Commission employees, permits them to defer a portion of their salary into future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. Investments are managed by the plan's trustee under one of four investment options, or a combination thereof. The choice of the investment option(s) is made by the participants. NOTE 11. PUBLIC EMPLOYEES DEFINED CONTRIBUTION PLAN Four Commissioners of the Hutchinson Utilities Commission are covered by the Defined Contribution Plan, a multiple -employer deferred compensation plan administered by PERA. The Defined Contribution Plan is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. 32 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 11. PUBLIC EMPLOYEES DEFINED CONTRIBUTION PLAN (Cont'd) Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes five percent of salary which is matched by the elected official's employer. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives two percent of employer contributions and twenty-five hundredths of one percent (0.25 percent) of the assets in each member's account annually. Total contributions made by the Commission during the year were: Contribution Amount Percentage of Covered Payroll Employee Employer Employee Employer Required Rate Commissioners $ 1,056 $ 1,056 5.00% 5.00% 5.00% NOTE 12. OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN A. PLAN DESCRIPTION The Commission operates a single -employer retiree benefit plan, (the Plan) that provides health, dental, and life insurance to eligible employees and their spouses through the Commission's commercial insurance plans. There are 51 active participants and 1 retired participants. Benefit and eligibility provisions are established through negotiations between the Commission and employee groups including a union. The union contract is renegotiated each two-year bargaining period. The Plan does not issue a publicly available financial report. No assets are accumulated in a trust that meets all of the criteria in GASB Statement No. 75, paragraph 4. B. TOTAL OPEB LIABILITY The Commission's total OPEB liability of $103,307 was measured as of December 31, 2021, and was determined by an actuarial valuation as of that date. Update procedures were used to roll forward the total OPEB liability to December 31, 2022. 33 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 12. OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN (Cont'd) C. CHANGES IN TOTAL OPEB LIABILITY Changes in the total OPEB liability were as follows: Total OPEB Liability Beginning of Year $ 125,549 Changes for the year Service Cost 8,537 Interest 2,627 Difference Between Expected and Actual Experiences (25,876) Changes of Assumptions or Other Inputs (2,021) Benefit Payments (5,509) Net Changes (22,242) End of Year $ 103,307 Changes of assumptions and other inputs reflect a change in the discount rate from 2.00% in 2021 to 1.84% in 2022. Sensitivity of the total OPEB liability to changes in the discount rate. The following presents the total OPEB liability of the Commission, as well as what the Commission's total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (0.84%) or 1-percentage-point higher (2.84%) than the current discount rate: Total OPEB Liability 1.0% Decrease 1.0% Increase in Discount Discount Rate in Discount Rate (0.84%) (1.84%) Rate (2.84%) $ 109,808 $ 103,307 $ 97,082 Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following presents the total OPEB liability of the Commission, as well as what the Commission's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (5.20% decreasing to 2.70%) or 1-percentage-point higher (7.20% decreasing to 4.70%) than the current healthcare cost trend rates: Healthcare Cost 1.0% Decrease Trend Rates 1.0% Increase (5.20% (6.20% (7.20% decreasing decreasing decreasing to 2.70%) to 3.70%) to 4.70%) Total OPEB Liability $ 94,684 $ 103,307 $ 113,180 34 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 12. OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN (Cont'd) D. OPEB EXPENSE, DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO OPEB For the year ended December 31, 2022, the Commission recognized OPEB expense of ($27,789). At December 31, 2022, the Commission reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Contributions Paid Subsequent to Measurement Date $ 11,056 $ $11,056 reported as deferred outflows of resources related to OPEB resulting from Commission contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ended December 31, 2023. E. ACTUARIAL METHODS AND ASSUMPTIONS The total OPEB liability in the December 31, 2021 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation Salary Increases Healthcare Cost Trend Rates Retiree's Share of Benefit -Related Costs 2.25% Based on the most recently disclosed assumptions for the pension plan in which the employee participates. 6.20% for 2022, decreasing on average 0.05% per year to an ultimate rate of 3.70% for 2074 and later years. Assumed to increase with healthcare trend rates. A discount rate of 1.84% was applied in the measurement of the total OPEB liability. The discount rate is based on the index rate for a Fidelity 20-year Municipal GO AA Index rate for 20-year, tax exempt municipal bonds. Mortality rates were based on assumptions for General Employees used in the July 1, 2021 PERA of Minnesota Retirement Plan actuarial valuations. The actuarial assumptions used in the December 31, 2021 valuation were based on the results of an actuarial experience study for the period January 1, 2021—December 31, 2021. NOTE 13. MAJOR CUSTOMERS The Electric Division derived approximately 47.71 % of utility revenue from the top five major customers. The Natural Gas Division derived approximately 46.05% of its utility revenue from the top five major customers. 35 HUTCHINSON UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 14. RECLASSIFICATIONS Certain immaterial prior year financial statement amounts have been reclassified to conform to the current year's presentation. There was no affect on total net position. NOTE 15. COMMITMENTS A. PURCHASED POWER The Commission is committed to purchase 25 MW of its power requirements from Missouri River Energy Services pursuant to the Power Sale Agreement dated April 28, 2010. This contract is effective through January 1, 2046. B. PAYMENT IN LIEU OF TAXES The Commission is committed to contribute a portion of its total operating revenue to the City of Hutchinson in lieu of the payment of taxes pursuant to the Resolution No. 14853 dated February 10, 2018. NOTE 16. DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES The following is a summary of the major components of deferred outflows and inflows as presented in the Statement of Net Position: Related to Pensions Related to OPEB Total NOTE 17. COVID-19 Deferred Deferred Outflows of Inflows of Resources Resources $ 1,617,474 $ 131,405 11,056 $ 1,628,530 $ 131,405 In March 2020, the World Health Organization declared the novel coronavirus disease (COVID-19) a pandemic, and the United States declared a national emergency. Various governmental measures to control the spread of the virus have been implemented throughout the country, including temporary closure of businesses, restrictions on travel, and other limitations on the conduct of business. The pandemic is disrupting supply chains and affecting production and sales across a range of industries. The continued spread of the coronavirus globally could have an effect on the commission's business, net position, and results of operations in the next year. REP This page intentionally left blank REQUIRED SUPPLEMENTARY INFORMATION This page intentionally left blank HUTCHINSON UTILITIES COMMISSION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY DECEMBER 31, 2022 Employer's Proportionate Share of the Net Pension State's Liability Employer's Proportionate and the State's Proportionate Employer's Employer's Share Proportionate Share of the Proportionate Proportionate (Amount) of the Share of the Net Pension Plan Fiduciary Share Share Net Pension Net Pension Liability (Asset) as Net Position (Percentage) (Amount) of the Liability Liability Employer's a Percentage of as a Percentage Fiscal of the Net Net Pension Associated with Associated with Covered its Covered of the Total Year Pension Liability (Asset) the Employer the Employer Payroll Payroll Pension Ending Liability (Asset) (a) (b) (a+b) (c) ((a+b)/c) Liability Pensions GERP June 30, 2022 0.0677% $ 5,361,862 $ 157,228 $ 5,519,090 $ 5,157,815 107.00% 76.67% June 30, 2021 0.0693% 2,959,420 90,354 3,049,774 5,043,405 60.47% 87.00% June 30, 2020 0.0673% 4,034,943 124,288 4,159,231 4,848,886 85.78% 79.06% June 30, 2019 0.0648% 3,582,647 111,328 3,693,975 4,605,472 80.21% 80.23% June 30, 2018 0.0649% 3,600,387 118,224 3,718,611 4,376,690 84.96% 79.53% June 30, 2017 0.0644% 4,111,253 51,661 4,162,914 4,146,010 100.41% 75.90% June 30, 2016 0.0694% 5,634,936 73,588 5,708,524 4,334,384 131.70% 68.90% June 30, 2015 0.0714% 3,700,319 3,700,319 4,241,304 87.24% 78.20% The Commission implemented GASB Statement No. 68 for fiscal year ended December 31, 2015. Information for prior years is not available. See Accompanying Notes to the Required Supplementary Information 37 HUTCHINSON UTILITIES COMMISSION SCHEDULE OF EMPLOYER CONTRIBUTIONS DECEMBER 31, 2022 Contributions in Relation Contributions Statutorily to the Statutorily Contribution as a Percentage Required Required Deficiency Covered of Covered Fiscal Year Contribution Contribution (Excess) Payroll Payroll Ending (a) (b) (a-b) (d) (b/d) Pensions GERP 12/31/2022 $ 388,459 $ 388,459 $ $ 5,179,453 7.50% 12/31/2021 376,462 376,462 5,019,493 7.50% 12/31/2020 367,734 367,734 4,903,120 7.50% 12/31 /2019 351,656 351,656 4,688,747 7.50% 12/31/2018 337,735 337,735 4,503,133 7.50% 12/31/2017 314,977 314,977 4,201,039 7.50% 12/31/2016 310,915 310,915 4,145,538 7.50% 12/31/2015 327,065 327,065 4,360,868 7.50% The Commission implemented GASB Statement No. 68 for fiscal year ended December 31, 2015. Information for prior years is not available. See Accompanying Notes to the Required Supplementary Information 38 HUTCHINSON UTILITIES COMMISSION SCHEDULE OF CHANGES IN THE COMMISSION'S TOTAL OPEB LIABILITY DECEMBER 31, 2022 Service Cost Interest Differences Between Expected and Actual Experience Changes in Assumptions or Other Inputs Benefit Payments Net Change in Total OPEB Liability Total OPEB Liability - Beginning of Year Total OPEB Liability - End of Year Covered Employee Payroll Total OPEB Liability as a % of Covered Employee Payroll Measurement Date 12/31 /2021 12/31 /2020 12/31 /2019 12/31 /2018 12/31 /2017 $ 8,537 $ 7,345 $ 5,994 $ 6,199 $ 5,475 2,627 3,222 3,982 3,391 3,379 (25,876) (10,484) (2,021) 7,429 11,924 (3,843) 4,199 (5,509) (4,519) (1,347) (22,242) 13,477 10,069 5,747 13,053 125,549 112,072 102,003 96,256 83,203 $ 103,307 $ 125,549 $ 112,072 $ 102,003 $ 96,256 $ 4,841,990 $ 4,896,460 $ 4,733,716 $ 4,488,568 $ 4,206,868 2.13% 2.56% 2.37% 2.27% 2.29% The Commission implemented GASB Statement No. 75 for fiscal year ended December 31, 2018. Information for prior years is not available. See Accompanying Notes to the Required Supplementary Information 39 This page intentionally left blank HUTCHINSON UTILITIES COMMISSION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2022 NOTE 1. CHANGES IN PLAN PROVISIONS A. GENERAL EMPLOYEE RETIREMENT PLAN (GE 2022 Changes: There have been no changes since the prior valuation. 2021 Changes: There have been no changes since the prior valuation. 2020 Changes: Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 Chanaes The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2018 Chanaes: The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer provisions were repealed. Postretirement benefit increases were changed from 1.00 percent per year with a provision to increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019. For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 40 HUTCHINSON UTILITIES COMMISSION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2022 NOTE 1. CHANGES IN PLAN PROVISIONS (Cont'd) A. GENERAL EMPLOYEE RETIREMENT PLAN (GERP) (Cont'd) 2017 Changes: The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state's contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031. 2016 Changes: There have been no changes since the prior valuation. 2015 Changes: On January 1, 2015 the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions were revised; the State's contribution of $6.0 million, which meets the special funding situation definition, was due September 2015. B. OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN NOT ADMINISTERED IN A TRUST 2022 Changes: Retiree premiums were update to current levels. 2021 Changes: No changes. 2020 Changes: Retiree premiums were update to current levels. 2019 Changes: No changes. 2018 Changes: No changes. 41 HUTCHINSON UTILITIES COMMISSION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2022 NOTE 2. CHANGES IN ACTUARIAL ASSUMPTIONS A. GENERAL EMPLOYEE RETIREMENT PLAN (GE 2022 Changes: The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 2021 Changes: The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. 2020 Changes: The price inflation assumption was decreased from 2.50% to 2.25%. The payroll growth assumption was decreased from 3.25% to 3.00%. Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25% less than previous rates. Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter. Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females. The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the PUB-2010 General/Teacher disabled annuitant mortality table, with adjustments. The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. The assumed spouse age difference was changed from two years older for females to one year older. The assumed number of married male new retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. 2019 Changes: The mortality projection scale was changed from MP-2017 to MP-2018. 42 HUTCHINSON UTILITIES COMMISSION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2022 NOTE 2. CHANGES IN ACTUARIAL ASSUMPTIONS (Cont'd) A. GENERAL EMPLOYEE RETIREMENT PLAN (GERP) (Cont'd) 2018 Changes: The mortality projection was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year. 2017 Changes: The combined service annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non -vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non -vested deferred member liability. The assumed post -retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter. 2016 Changes: The assumed post -retirement benefit increase rate was changed for 1.0 percent per year through 2035 and 2.5 percent per year thereafter to 1.0 percent per year for all years. The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 7.5 percent. Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. 2015 Changes: The assumed post -retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5 percent per year thereafter to 1.0 percent per year through 2035 and 2.5 percent per year thereafter. B. OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN NOT ADMINISTERED IN A TRUST 2022 Changes: The discount rate was changed from 2.00% to 1.84% based on the updated 20-year municipal bond rates. Healthcare trend rates were reset to reflect updated cost increase expectations. Medical per capita claims costs were update to reflect recent experience. Withdrawal, mortality, and salary increase rates were updated from the rates used in the 7/1/2019 PERA General Employees Plan valuation to the rates used in the 7/1/2021 valuation. 43 HUTCHINSON UTILITIES COMMISSION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2022 NOTE 2. CHANGES IN ACTUARIAL ASSUMPTIONS (Cont'd) B. OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN NOT ADMINISTERED IN A TRUST (Cont'd) 2022 Changes: (Cont'd) The inflation assumption was changed from 2.50% to 2.25% based on an updated historical analysis of inflation rates and forward -looking market expectations. 2021 Changes: The discount rate was changed from 2.75% to 2.00% based on the updated 20-year municipal bond rates. 2020 Changes: The discount rate was changed from 3.71 % to 2.75% based on the updated 20-year municipal bond rates. Healthcare trend rates were reset to reflect updated cost increase expectations. Medical per capita claims costs were update to reflect recent experience. Mortality and salary increase rates were update from the rates used in the 7/1/2017 PERA General Employees Plan valuation to the rates used in the 7/1/2019 valuation. The inflation assumption was changed from 2.75% to 2.50% based on an updated historical analysis of inflation rates and forward -looking market expectations. 2019 Changes: The index rate for 20 year, tax-exempt municipal bonds used in the determination of the discount rate was changed from 3.31 % to 3.71 %. Healthcare trend rates were reset to reflect updated cost increase expectations, including an adjustment to reflect the impact of the Affordable Care Act's Excise Tax on high -cost health insurance plans. 2018 Changes: No changes. 44 This page intentionally left blank SUPPLEMENTARY INFORMATION This page intentionally left blank HUTCHINSON UTILITIES COMMISSION COMBINING STATEMENT OF NET POSITION DECEMBER 31, 2022 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets Current Assets Cash and Investments Receivables Accounts Receivable (Net of Allowance for Doubtful Accounts of $29,517 and $48,160, Respectively) Interest Receivable Sales Tax Receivable Inventory Prepaid Items Total Current Assets Noncurrent Assets Restricted Assets Cash and Investments Capital and Right to Use Assets Natural Electric Gas Division Division Total 10,367,801 $ 13,026,482 $ 23,394,283 2,474,795 1,873,288 4,348,083 59,142 59,142 118,284 224,217 224,217 1,701,915 511,057 2,212,972 186,553 1,923 188,476 15,014,423 15,471,892 30,486,315 1,320,907 2,368,573 3,689,480 Assets Not Being Depreciated or Amortized 1,406,896 4,172,829 5,579,725 Other Capital and Right to Use Assets, Net of Depreciation and Amortizatior 45,518,416 22,608,351 68,126,767 Net Capital Assets 46,925,312 26,781,180 73,706,492 Total Noncurrent Assets 48,246,219 29,149,753 77,395,972 Total Assets 63,260,642 44,621,645 107,882,287 Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Liabilities Current Liabilities Accounts Payable Customer Deposits Accrued Expenses Interest Salaries Payable Total Current Liabilities Long -Term Liabilities Net Pension Liability Total OPEB Liability Other Long -Term Liabilities Due Within One Year Other Long -Term Liabilities Due in More Than One Year Total Long -Term Liabilities Total Liabilities Deferred Inflows of Resources Net Position Net Investment in Capital Assets Unrestricted Total Net Position Total Liabilities, Deferred Inflows of Resources and Net Position 1,221,397 407,133 1,628,530 $ 64,482,039 $ 45,028,778 $ 109,510,817 $ 1,794,760 $ 1,584,147 $ 3,378,907 212,404 114,371 326,775 37,738 27,796 65,534 233,063 72,162 305,225 2,277,965 1,798,476 4,076,441 4,021,396 1,340,466 5,361,862 77,480 25,827 103,307 808,753 2,019,888 2,828,641 15,163,439 6,702,980 21,866,419 20, 071, 068 10, 089,161 30,160, 229 22,349,033 11,887,637 34,236,670 98,554 32,851 131,405 32,899,011 20,642,787 53,541,798 9,135,441 12,465,503 21,600,944 42,034,452 33,108,290 75,142,742 $ 64,482,039 $ 45,028,778 $ 109,510,817 45 HUTCHINSON UTILITIES COMMISSION COMBINING SCHEDULE OF REVENUES AND EXPENSES YEAR ENDED DECEMBER 31, 2022 OPERATING REVENUES Electric Energy Sales Natural Gas Sales Other Operating Revenues Total Operating Revenues OPERATING EXPENSES Production Operations Maintenance Purchased Power/Gas Other Power Supply Transmission Operations Maintenance Distribution Operations Maintenance Customer Accounts Expense Sales Expense Administrative and General Depreciation and Amortization Expense Contribution to City of Hutchinson Total Operating Expenses Operating Income (Loss) NONOPERATING REVENUES (EXPENSES) Interest Income Merchandise and Contract Work, Net Miscellaneous Income Gain (Loss) on Disposal of Assets Bond Premium Interest Expense Total Nonoperating Revenues (Expenses) Change in Net Position NET POSITION, BEGINNING OF YEAR Electric Natural Gas Division Division Total $ 30,321,137 $ $ 30,321,137 13, 520,128 13, 520,128 142,676 1,861,469 2,004,145 30,463,813 15,381,597 45,845,410 5,702,451 5,702,451 1,018,959 1,018,959 13,164,998 9,356,872 22,521,870 299,646 299,646 3,086,249 205,907 3,292,156 94,083 19,654 113,737 1,126,089 900,914 2,027,003 828,837 229,161 1,057,998 253,103 222,252 475,355 137,673 95,224 232,897 1,642,099 932,046 2,574,145 3,468,796 1,092,249 4,561,045 1,293,543 573,649 1,867,192 32,116,526 13,627,928 45,744,454 (1,652,713) 1,753,669 100,956 (439,382) (439,453) (878,835) (17,798) 36,237 18,439 64,639 31,442 96,081 (3,693) (3,693) 33,457 185,608 219,065 (479,767) (413,890) (893,657) (842,544) (600,056) (1,442,600) (2,495,257) 1,153,613 (1,341,644) 44,529,709 31,954,677 76,484,386 NET POSITION, END OF YEAR $ 42,034,452 $ 33,108,290 $ 75,142,742 HUTCHINSON UTILITIES COMMISSION SCHEDULE OF DIVISIONS CASH FLOWS YEAR ENDED DECEMBER 31, 2022 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers Payments Received from Other Sources Payments to Suppliers Payments to Employees Net Cash Provided (Used) by Operating Activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Other Noncapital Income (Expense) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Additions to Utility Plant Proceeds from Sale of Assets Principal Payments on Long -Term Liabilities Interest Paid on Long -Term Liabilities Net Cash Provided (Used) by Capital and Related Financing Activities CASH FLOWS FROM INVESTING ACTIVITIES Interest Income Net Increase (Decrease) in Cash and Cash Equivalents CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR CASH AND CASH EQUIVALENTS, END OF YEAR RECONCILIATION OF CASH AND CASH EQUIVALENTS Current Assets - Cash and Investments Restricted Assets - Cash and Investments Total Cash and Cash Equivalents See Accompanying Notes to the Financial Statements 47 Electric Natural Gas Division Division Total $ 30,060,305 $ 13,270,542 $ 43,330,847 59,235 1,861,469 1,920,704 (24,974,370) (10,603,538) (35,577,908) (3,300,940) (1,210,383) (4,511,323) 1,844,230 3,318,090 5,162,320 46,841 67,679 114,520 (1,483,247) (471,165) (1,954,412) 64,156 64,156 (723,174) (1,730,000) (2,453,174) (482,100) (421,098) (903,198) (2,624,365) (2,622,263) (5,246,628) (451,316) (451,387) (902,703) (1,184,610) 312,119 (872,491) 12,873,318 15,082,936 27,956,254 $ 11,688,708 $ 15,395,055 $ 27,083,763 $ 10,367,801 $ 13,026,482 $ 23,394,283 1,320,907 2,368,573 3,689,480 $ 11,688,708 $ 15,395,055 $ 27,083,763 HUTCHINSON UTILITIES COMMISSION SCHEDULE OF DIVISIONS CASH FLOWS YEAR ENDED DECEMBER 31, 2022 RECONCILIATION OF OPERATING INCOME (LOSS) TO CASH FLOWS FROM OPERATING ACTIVITIES Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Depreciation and Amortization Pension Related Adjustments OPEB Related Adjustments (Increase) Decrease in Assets Accounts Receivable Sales Tax Receivable Inventory Prepaid Items Increase (Decrease) in Liabilities Accounts Payable Customer Deposits Salaries Payable Compensated Absences Net Cash Provided (Used) by Operating Activities Electric Natural Gas $ (1,652,713) $ 1,753,669 $ 100,956 3,468,796 1,092,249 4,561,045 272,501 90,834 363,335 (20,842) (6,947) (27,789) (269,428) (254,214) (523,642) (83,441) (83,441) (24,053) (4,855) (28,908) (153,677) 12,248 (141,429) 181,501 611,350 792,851 8,596 4,628 13,224 15,306 (1,677) 13,629 $ 1,844,230 $ 3,318,090 $ 5,162,320 NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES In 2022, a lease obligation of $841,316 was incurred when the Commission entered into a lease for the right to use land for a solar array. 48 HUTCHINSON UTILITIES COMMISSION STATEMENT OF NET POSITION ELECTRIC DIVISION DECEMBER 31, 2022 WITH PARTIAL COMPARATIVE AMOUNTS AS OF DECEMBER 31, 2021 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets Current Assets Cash and Investments Receivables Accounts Receivable (Net of Allowance for Doubtful Accounts of $29,517 and $38,182, Respectively) Interest Receivable Sales Tax Receivable Inventory Prepaid Items Total Current Assets Noncurrent Assets Restricted Assets Cash and Investments Capital and Right to Use Assets 2022 2021 $ 10,367,801 $ 11,552,577 2,474,795 2,205,367 59,142 47,208 224,217 140,776 1,701,915 1,677,862 186,553 32,876 15, 014, 423 15, 656, 666 1,320,907 1,320,741 Assets Not Being Depreciated or Amortized 1,406,896 709,468 Other Capital and Right to Use Assets, Net of Depreciation and Amortization 45,518,416 47,427,926 Net Capital Assets 46,925,312 48,137,394 Total Noncurrent Assets 48,246,219 49,458,135 Total Assets 63,260,642 65,114,801 Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Liabilities Current Liabilities Accounts Payable Customer Deposits Accrued Expenses Interest Salaries Payable Total Current Liabilities Long -Term Liabilities Net Pension Liability Total OPEB Liability Other Long -Term Liabilities Due Within One Year Other Long -Term Liabilities Due in More Than One Year Total Long -Term Liabilities Total Liabilities Deferred Inflows of Resources Net Position Net Investment in Capital Assets Unrestricted Total Net Position Total Liabilities, Deferred Inflows of Resources and Net Position 49 1,221, 397 1,630,746 $ 64,482,039 $ 66,745,547 $ 1,794,760 $ 1,613,259 212,404 203,808 37,738 40,071 233,063 217,757 2,277,965 2,074,895 4,021,396 2,219,565 77,480 94,162 808,753 755,040 15,163,439 15, 030,783 20, 071, 068 18, 099, 550 22,349,033 20,174,445 98,554 2,041,393 32,899,011 34,195,612 9,135, 441 10, 334, 097 42,034,452 44,529,709 $ 64,482,039 $ 66,745,547 HUTCHINSON UTILITIES COMMISSION DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BUDGET AND ACTUAL - ELECTRIC DIVISION YEAR ENDED DECEMBER 31, 2022 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2021 OPERATING REVENUES Utility Revenues Residential General Service Industrial Street Lighting Resale Total Utility Revenues Other Operating Revenues Penalties/Fees Security Lights Total Other Operating Revenues Total Operating Revenues OPERATING EXPENSES Production Operations Supervision and Engineering Other Employee Benefits Fuels Station Gas for Generation Transportation Waste Disposal Total Operations Maintenance Structures Generating Units Other Equipment Total Maintenance Total Production Power Costs Purchased Power 2022 9n91 Over (Under) Budget Actual Budget Actual $ 6,028,253 $ 6,129,443 $ 101,190 $ 6,013,887 9,663,442 9,615,989 (47,453) 9,731,853 9,495,572 8,990,927 (504,645) 9,524,147 137,977 138,294 317 137,710 3,692,000 5,446,484 1,754,484 4,221,535 29,017,244 30,321,137 1,303,893 29,629,132 177,600 132,161 (45,439) 56,300 11,000 10,515 (485) 10,597 188,600 142,676 (45,924) 66,897 29,205,844 30,463,813 1,257,969 29,696,029 1,152,889 1,217,782 64,893 1,089,780 710,525 1,037,795 327,270 558,662 1,200 265 (935) 246,465 161,648 196,882 35,234 254,706 1,078,350 2,500,832 1,422,482 1,413,185 716,683 716,683 682,550 25,000 32,212 7,212 36,464 3,846,295 5,702,451 1,856,156 4,281,812 83,000 90,602 7,602 8,636 353,283 585,135 231,852 507,500 297,000 343,222 46,222 254,140 733,283 1,018,959 285,676 770,276 4,579,578 6,721,410 2,141,832 5,052,088 12,297,526 13,164,998 867,472 13,420,688 50 HUTCHINSON UTILITIES COMMISSION DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BUDGET AND ACTUAL - ELECTRIC DIVISION YEAR ENDED DECEMBER 31, 2022 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2021 OPERATING EXPENSES (Cont'd) Other Power Supply Supervision and General Salaries Training Professional Services Total Other Power Supply Transmission Operations Transmission Station Total Operations Maintenance Plant and Equipment Total Transmission Distribution Operations Supervision and Engineering Other Employee Benefits Line Meter Other Total Operations Maintenance Station Equipment Underground Lines Lines Transformers Street Lighting Other Equipment Total Maintenance Total Distribution Customer Accounts Expense Meter Reading Collection Other Employee Benefits Uncollectible Accounts Customer Services Meetings and Training Total Customer Accounts Expense 2022 9n91 Over (Under) Budget Actual Budget Actual $ 214,753 $ 263,046 $ 48,293 $ 282,784 5,000 (5,000) 36,600 36,600 36,600 256,353 299,646 43,293 319,384 3,325,000 2,882,993 (442,007) 2,845,628 190,000 203,256 13,256 197,074 3,515,000 3,086,249 (428,751) 3,042,702 31,094 94,083 62,989 67,769 3,546,094 3,180,332 (365,762) 3,110,471 688,644 400,022 (288,622) 354,930 429,432 399,230 (30,202) 392,313 85,994 133,950 47,956 121,724 57,076 25,141 (31,935) 25,331 136,000 167,746 31,746 143,436 1,397,146 1,126,089 (271,057) 1,037,734 52,677 81,285 28,608 27,878 214,336 365,168 150,832 218,522 21,764 66,605 44,841 32,519 84,569 253,406 168,837 100,402 60,264 62,373 2,109 29,546 433,610 828,837 395,227 408,867 1,830,756 1,954,926 124,170 1,446,601 27,071 4,705 (22,366) 5,101 177,127 171,213 (5,914) 159,571 15,054 15,054 12,159 5,500 (1,472) (6,972) 1,253 71,298 63,138 (8,160) 61,655 1,500 465 (1,035) 454 282,496 253,103 (29,393) 240,193 51 HUTCHINSON UTILITIES COMMISSION DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BUDGET AND ACTUAL - ELECTRIC DIVISION YEAR ENDED DECEMBER 31, 2022 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2021 OPERATING EXPENSES (Cont'd) Sales Expense Salaries Conservation Total Sales Expense Administrative and General Supervision and General Salaries Office Supplies Outside Services Employed Property Insurance Medical Insurance Other Employee Benefits Regulatory Commissioners Salaries Travel Miscellaneous Maintenance of General Plant Total Administrative and General Depreciation and Amortization Expense Contribution to City of Hutchinson Payment in Lieu of Taxes Total Operating Expenses Operating Income (Loss) NONOPERATING REVENUES (EXPENSES) Interest Income Merchandise and Contract Work, Net Miscellaneous Income Gain (Loss) on Disposal of Assets Bond Premium Interest Expense Total Nonoperating Revenues (Expenses) Change in Net Position NET POSITION, BEGINNING OF YEAR NET POSITION, END OF YEAR 2022 gn9i Over (Under) Budget Actual Budget Actual $ 75,332 $ 43,566 $ (31,766) $ 42,343 259,550 94,107 (165,443) 64,913 334,882 137,673 (197,209) 107,256 513,307 527,645 14,338 492,700 257,908 291,531 33,623 246,646 116,994 99,983 (17,011) 91,928 371,597 391,607 20,010 328,326 93,129 63,254 (29,875) 90,778 111,600 98,617 (12,983) 97,650 15,000 5,784 (9,216) 4,483 15,836 15,848 12 15,894 5,500 3,600 (1,900) 6,160 72,000 71,448 (552) 68,621 70,405 72,782 2,377 116,834 1,643,276 1,642,099 (1,177) 1,560,020 3,300,000 3,468,796 168,796 3,334,286 1,293,543 1,293,543 1,293,543 29,364,504 32,116,526 2,752,022 29,884,530 (158,660) (1,652,713) (1,494,053) (188,501) 175,000 (439,382) (614,382) 21,850 (35,000) (17,798) 17,202 (40,569) 64,639 64,639 108,497 (3,693) (3,693) 37,150 33,456 33,457 1 33,457 (481,357) (479,767) 1,590 (506,313) (307,901) (842,544) (534,643) (345,928) $ (466,561) (2,495,257) $ (2,028,696) (534,429) 44,529,709 45,064,138 $ 42,034,452 $ 44,529,709 52 HUTCHINSON UTILITIES COMMISSION STATEMENT OF NET POSITION NATURAL GAS DIVISION DECEMBER 31, 2022 WITH PARTIAL COMPARATIVE AMOUNTS AS OF DECEMBER 31, 2021 2022 2021 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets Current Assets Cash and Investments $ 13,026,482 $ 12,715,071 Receivables Accounts Receivable (Net of Allowance for Doubtful Accounts of $48,160 and $35,245, Respectively) 1,873,288 1,619,074 Interest Receivable 59,142 47,208 Inventory 511,057 506,202 Prepaid Items 1,923 14,171 Total Current Assets 15,471,892 14,901,726 Noncurrent Assets Restricted Assets Cash and Investments 2,368,573 2,367,865 Capital and Right to Use Assets Assets Not Being Depreciated or Amortized 4,172,829 3,918,377 Other Capital and Right to Use Assets, Net of Depreciation and Amortization 22,608,351 23,483,887 Net Capital Assets 26,781,180 27,402,264 Total Noncurrent Assets 29,149,753 29,770,129 Total Assets 44,621,645 44,671,855 Deferred Outflows of Resources 407,133 543,582 Total Assets and Deferred Outflows of Resources $ 45,028,778 $ 45,215,437 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Liabilities Current Liabilities Accounts Payable $ 1,584,147 $ 972,797 Customer Deposits 114,371 109,743 Accrued Expenses Interest 27,796 35,004 Salaries Payable 72,162 73,839 Total Current Liabilities 1,798,476 1,191,383 Long -Term Liabilities Net Pension Liability 1,340,466 739,855 Total OPEB Liability 25,827 31,387 Other Long -Term Liabilities Due Within One Year 2,019,888 1,923,782 Other Long -Term Liabilities Due in More Than One Year 6,702,980 8,693,889 Total Long -Term Liabilities 10,089,161 11,388,913 Total Liabilities 11,887,637 12,580,296 Deferred Inflows of Resources 32,851 680,464 Net Position Net Investment in Capital Assets 20,642,787 19,347,555 Unrestricted 12,465,503 12,607,122 Total Net Position 33,108,290 31,954,677 Total Liabilities, Deferred Inflows of Resources and Net Position $ 45,028,778 $ 45,215,437 53 HUTCHINSON UTILITIES COMMISSION DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BUDGET AND ACTUAL - NATURAL GAS DIVISION YEAR ENDED DECEMBER 31, 2022 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2021 2022 2021 Over (Under) Budget Actual Budget Actual OPERATING REVENUES Utility Revenues Residential $ 4,024,211 $ 4,474,818 $ 450,607 $ 4,639,771 Commercial 3,008,809 3,275,405 266,596 3,469,964 Industrial 4,996,816 5,769,905 773,089 5,334,891 Total Utility Revenues 12,029,836 13,520,128 1,490,292 13,444,626 Other Operating Revenues Gas Transportation Contract - New Ulm 1,010,124 1,093,578 83,454 1,058,042 Transportation - Electric Division 716,383 716,683 300 682,550 Penalties/Fees 72,493 51,208 (21,285) 21,606 Total Other Operating Revenues 1,799,000 1,861,469 62,469 1,762,198 Total Operating Revenues 13,828,836 15,381,597 1,552,761 15,206,824 OPERATING EXPENSES Purchased Natural Gas 7,630,061 9,356,872 1,726,811 9,830,566 Transmission Operations Supervision and Engineering 151,353 92,965 (58,388) 125,698 Other 132,500 112,942 (19,558) 96,770 Total Operations 283,853 205,907 (77,946) 222,468 Maintenance Supervision and Engineering 3,000 6,077 3,077 1,331 Other 400,000 13,577 (386,423) 5,305 Total Maintenance 403,000 19,654 (383,346) 6,636 Total Transmission 686,853 225,561 (461,292) 229,104 Distribution Operations Supervision and Engineering 306,713 214,499 (92,214) 211,079 Other Employee Benefits 459,855 442,152 (17,703) 361,452 Mains and Services 255,902 166,642 (89,260) 128,895 Meters 964 18,752 17,788 22,988 Other 62,700 58,869 (3,831) 42,976 Total Operations 1,086,134 900,914 (185,220) 767,390 Maintenance Mains and Services 210,725 155,849 (54,876) 141,692 Meters 27,952 2,794 (25,158) 15,624 Other Equipment 58,500 70,518 12,018 59,442 Total Maintenance 297,177 229,161 (68,016) 216,758 Total Distribution 1,383,311 1,130,075 (253,236) 984,148 54 HUTCHINSON UTILITIES COMMISSION DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BUDGET AND ACTUAL - NATURAL GAS DIVISION YEAR ENDED DECEMBER 31, 2022 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2021 OPERATING EXPENSES (Cont'd) Customer Accounts Expense Meter Reading Collection Other Employee Benefits Uncollectible Accounts Customer Services Meetings and Training Total Customer Accounts Expense Sales Expense Salaries Conservation Total Sales Expense Administrative and General Supervision and General Salaries Office Supplies Outside Services Employed Property Insurance Medical Insurance Other Employee Benefits Regulatory Commissioners Salaries Travel Miscellaneous Maintenance of General Plant Total Administrative and General Depreciation and Amortization Expense Contribution to City of Hutchinson Payment in Lieu of Taxes Total Operating Expenses Operating Income (Loss) 2022 2021 Over (Under) Budget Actual Budget Actual $ 22,149 $ 4,788 $ (17,361) $ 4,355 131,513 139,739 8,226 130,982 10,500 12,833 2,333 10,456 4,500 13,214 8,714 577 58,335 51,658 (6,677) 50,445 1,575 20 (1,555) 371 228,572 222,252 (6,320) 197,186 25,111 43,565 18,454 42,342 141,635 51,659 (89,976) 61,723 166,746 95,224 (71,522) 104,065 395,883 425,318 29,435 395,810 95,003 103,551 8,548 80,642 52,332 43,204 (9,128) 48,667 86,148 60,065 (26,083) 75,553 54,512 60,599 6,087 36,864 59,500 80,989 21,489 58,496 40,000 43,909 3,909 35,582 10,558 10,566 8 10,597 4,000 2,525 (1,475) 2,944 44,000 46,736 2,736 59,344 49,802 54,584 4,782 34,193 891,738 932,046 40,308 838,692 1,100,000 1,092,249 (7,751) 1,097,263 573,649 573,649 573,649 12,660,930 13,627,928 966,998 13,854,673 1,167,906 1,753,669 585,763 1,352,151 55 HUTCHINSON UTILITIES COMMISSION DETAILED SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BUDGET AND ACTUAL - NATURAL GAS DIVISION YEAR ENDED DECEMBER 31, 2022 WITH PARTIAL COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2021 2022 2021 Over (Under) Budget Actual Budget Actual NONOPERATING REVENUES (EXPENSES) Interest Income $ 175,000 $ (439,453) $ (614,453) $ 21,954 Merchandise and Contract Work, Net 500 36,237 35,737 1,631 Miscellaneous Income 31,442 31,442 56,263 Gain (Loss) on Disposal of Assets 48,168 Bond Premium 185,608 185,608 185,608 Interest Expense (420,650) (413,890) 6,760 (478,032) Total Nonoperating Revenues (Expenses) (59,542) (600,056) (540,514) (164,408) Change in Net Position $ 1,108,364 1,153,613 $ 45,249 1,187,743 NET POSITION, BEGINNING OF YEAR 31,954,677 30,766,934 NET POSITION, END OF YEAR $ 33,108,290 $ 31,954,677 56 COMPLIANCE SECTION This page intentionally left blank INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE Members of the Hutchinson Utilities Commission Hutchinson, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of Hutchinson Utilities Commission, a fund of the City of Hutchinson, Minnesota, as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements, and have issued our report thereon dated March 29, 2023. In connection with our audit, nothing came to our attention that caused us to believe that the Commission failed to comply with the provisions of the contracting -bid laws, depositories of public funds and public investments, conflicts of interest, public indebtedness, claims and disbursements, and miscellaneous provisions sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the Commission's noncompliance with the above referenced provisions, insofar as they relate to account matters. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion c�on� compliance. Accordingly, this communication is not suitable for any other purpose. CONWAY, DEUTH & SCHMIESING, PLLP CPAS & ADVISORS LITCHFIELD, MINNESOTA March 29, 2023 57 Ste 110 Sart�ett, MN w, 377 :1M 8621337 Members: American institute of Certified Public Accountants, Minnesota Society of Certified Public Accountants This page intentionally left blank INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Members of the Hutchinson Utilities Commission Hutchinson, Minnesota We have audited in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Hutchinson Utilities Commission, a fund of the City of Hutchinson, Minnesota, as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements, and have issued our report thereon dated March 29, 2023. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Commission's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses or significant deficiencies. However, material weaknesses or significant deficiencies may exist that have not been identified. 58 Morris Office 401 Atlantic Ave Morris, MAN 56267' (320) 589-2602 www.citscpa,corn Litchfield Office 820 Siibley Ave N Litchfield, MN 55355 (320) 693-7 '75 Sartelt Office Ste M Members: Arnerican Insfitute of Certified Public Accountants, Minnesota Sodety of Certified Public Accountants Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Commission's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Commission's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Commission's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CONWAY, DEUTH & SCHMIESING, PLLP CPAS & ADVISORS LITCHFIELD, MINNESOTA March 29, 2023 59 HUTCHINSON UTILITIES COMMISSION Finding Reference SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS DECEMBER 31, 2022 Year Finding If Not Corrected, Provide Planned Finding Title Status Initially Occurred Corrective Action or Other Explanation Financial Statement Findings: None Minnesota Legal Compliance Findings: None We HUTCHINSON UTILITIES COMMISSION COMBINED DIVISIONS FINANCIAL REPORT FOR FEBRUARY, 2023 2023 2022 pi . Combined Division Customer Revenue $ 3,371,984 $ 3,773,601 $ (401,617) Sales for Resale $ 360,365 $ 276,231 $ 84,133 NU Transportation $ 86,670 $ 87,775 $ (1,104) Electric Division Transfer $ 59,960 $ 59,724 $ 236 Other Revenues $ 55,103 $ 34,593 $ 20,509 Interest Income $ 79,145 $ 46,861 $ 32,284 TOTAL REVENUES $ 4,013,226 $ 4,278,785 $ (265,559) Salaries & Benefits $ 555,121 $ 530,820 $ 24,302 Purchased Commodities $ 2,008,886 $ 2,253,245 $ (244,359) Transmission $ 200,379 $ 158,443 $ 41,936 Generator Fuel/Chem. $ 33,738 $ 130,910 $ (97,172) Depreciation $ 375,318 $ 378,711 $ (3,392) Transfers (Elect./City) $ 218,671 $ 215,323 $ 3,348 Operating Expense $ 159,525 $ 191,439 $ (31,914) Debt Interest $ 65,534 $ 75,076 $ (9,542) TOTAL EXPENSES $ 3,617,172 $ 3,933,966 $ (316,793) NET PROFIT/(LOSS) $ 396,054 $ 344,819 $ 51,235 %Chna 1 2023 2022 Di %Chna I Full Yr Bud %of Bud (10.6%) $ 7,294,212 $ 7,846,974 $ (552,762) (7.0%) $ 38,930,509 18.7% 30.5% $ 770,860 $ 554,749 $ 216,110 39.0% $ 4,230,000 18.2% (1.3%) $ 175,326 $ 176,261 $ (935) (0.5%) $ 1,354,349 12.9% 0.4% $ 119,920 $ 119,447 $ 472 0.4% $ 719,517 16.7% 59.3% $ 90,003 $ 67,446 $ 22,557 33.4% $ 484,081 18.6% 68.9% $ 154,013 $ 82,768 $ 71,246 86.1% $ 533,457 28.9% (6.2%) $ 8,604,334 $ 8,847,646 $ (243,312) (2.8%) $ 46,251,913 18.6% 4.58% $ 1,180,661 $ 1,121,307 $ 59,354 5.3% $ 7,510,583 15.7% (10.8%) $ 4,637,367 $ 4,747,661 $ (110,294) (2.3%) $ 21,566,760 21.5% 26.5% $ 430,092 $ 383,272 $ 46,820 12.2% $ 3,325,000 12.9% (74.2%) $ 63,726 $ 264,710 $ (200,984) (75.9%) $ 1,760,606 3.6% (0.9%) $ 750,637 $ 757,421 $ (6,785) (0.9%) $ 4,400,000 17.1% 1.6% $ 437,342 $ 430,646 $ 6,696 1.6% $ 2,624,053 16.7% (16.7%) $ 472,224 $ 544,268 $ (72,044) (13.2%) $ 3,209,835 14.7% (12.7%) $ 131,068 $ 150,151 $ (19,083) 12.7% $ 786,406 16.7% (8.1%) $ 8,103,117 $ 8,399,436 $ (296,319) (3.5%) $ 45,183,243 17.9% 14.9%1 501,217 $ 448,210 $ 53,007 11.8% $ 1,068,670 46.9% February February YTD YTD 2023 2022 Change 2023 2022 Change Gross Margin %: 33.7% 31.3% 2.4% 30.0% 30.1% -0.1% Operating Income Per Revenue $ (%): 8.8% 8.4% 0.4% 5.0% 5.4% -0.4% Net Income Per Revenue $ (%): 9.9% 8.1% 1.8% 5.8% 5.1% 0.8% HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION REPORT FOR FEBRUARY, 202312y��y JIFINANCIAL 2023 2022 2 %Chna 2023 2022 2 %Chna Full YrBud %ofBud Electric Division Customer Revenue $ 1,725,949 $ 1,949,124 $ (223,176) (11.5%) $ 3,757,525 $ 3,970,443 $ (212,918) (5.4%) $ 25,750,654 14.6% Sales for Resale $ 360,365 $ 276,231 $ 84,133 30.5% $ 770,860 $ 554,749 $ 216,110 39.0% $ 4,230,000 18.2% Other Revenues $ 25,185 $ 12,012 $ 13,172 109.7% $ 36,995 $ 15,471 $ 21,523 139.1% $ 187,047 19.8% Interest Income $ 40,966 $ 24,824 $ 16,142 65.0% $ 79,795 $ 44,172 $ 35,623 80.6% $ 283,457 28.2% TOTAL REVENUES $ 2,152,464 $ 2,262,193 $ (109,728) (4.9%) $ 4,645,175 $ 4,584,836 $ 60,339 1.3% $ 30,451,158 15.3% Salaries & Benefits $ 420,018 $ 398,766 $ 21,252 5.3% $ 894,393 $ 840,352 $ 54,042 6.4% $ 5,465,303 16.4% Purchased Power $ 917,555 $ 1,010,010 $ (92,455) (9.2%) $ 2,239,212 $ 2,063,115 $ 176,097 8.5% $ 12,862,000 17.4% Transmission $ 200,379 $ 158,443 $ 41,936 26.5% $ 430,092 $ 383,272 $ 46,820 12.2% $ 3,325,000 12.9% Generator Fuel/Chem. $ 33,738 $ 130,910 $ (97,172) (74.2%) $ 63,726 $ 264,710 $ (200,984) (75.9%) $ 1,760,606 3.6% Depreciation $ 284,630 $ 287,381 $ (2,752) (1.0%) $ 569,260 $ 574,763 $ (5,503) (1.0%) $ 3,300,000 17.3% Transfers (Elect./City) $ 169,911 $ 167,519 $ 2,392 1.4% $ 339,822 $ 335,038 $ 4,784 1.4% $ 2,038,931 16.7% Operating Expense $ 117,624 $ 118,362 $ (738) (0.6%) $ 354,326 $ 397,406 $ (43,080) (10.8%) $ 1,954,789 18.1% Debt Interest $ 37,738 $ 40,071 $ (2,333) (5.8%) $ 75,476 $ 80,143 $ (4,667) JLaL $ 452,856 16.7% TOTAL EXPENSES $ 2,181,593 $ 2,311,462 $ (129,869) (5.6%) $ 4,966,306 $ 4,938,798 $ 27,509 0.6% $ 31,159,485 15.9% NET PROFIT/(LOSS) $ (29,129) $ (44+y9,,Q270) $ (40.9%) $ (321,132) $ (3�5yy3,,96�22))� $ (9.3%) $ (708,327) 45.3% QQQQQQQQ (( QQQ20,141 ppJJJ3yyy2,83�000Q 16.67% of :Year Comp. 2023 2022 2 %Chna 2023 2022 2 %Chna Full YrBud %ofBud Electric Division Residential 3,985,201 4,147,503 (162,302) (3.91%) 8,522,745 8,938,579 (415,834) (4.65%) 54,834,787 15.5% All Electric 305,013 362,038 (57,025) (15.75%) 651,634 782,615 (130,981) (16.74%) 2,716,035 24.0% Small General 1,440,690 1,502,756 (62,066) (4.13%) 3,049,472 3,182,939 (133,467) (4.19%) 18,332,200 16.6% Large General 5,659,490 6,475,160 (815,670) (12.60%) 12,135,450 13,196,430 (1,060,980) (8.04%) 84,325,256 14.4% Industrial 7,027,000 8,622,000 (1,595,000) (18.50%) 15,457,000 17,796,000 (2,339,000) (13.14%) 120,422,724 12.8% Total KWH Sold 18,417,394 21,109,457 (2,692,063) (12.75%) 39,816,301 43,896,563 (4,080,262) (9.30%) 280,631,002 14.2% February February YTD YTD 2023 HUC 2023 2022 Change 2023 2022 Change Budget Target Gross Margin %: 29.5% 28.1% 1.5% 24.1% 26.1% -1.9% 26.7% Operating Income Per Revenue $ (%): -2.2% -1.5% -0.6% -7.5% -7.0% -0.4% -1.9% Net Income Per Revenue $ (%): -1.4% -2.2% 0.8% -6.9% -7.7% 0.8% -2.3% Customer Revenue per KWH: $0.0937 $0.0923 $0.0014 $0.0944 $0.0904 $0.0039 $0.0918 Total Power Supply Exp. per KWH: $0.0803 $0.0762 $0.0040 $0.0867 $0.0765 $0.0102 $0.0786 q'yar; Notes/Graphs: Net Loss decreased by $20,141 over February 2022. The decrease in consumption led to lower total revenues but that was offset by lower purchased power and generator fuels. Part of the reduction in fuel expenses was because HUC did not contract gas this winter to run generation as a hedging strategy. Sales for Resale of $360,365 consisted of $48,341 in market sales, $98,000 in capacity sales to Rice Lake, $146,250 in capacity sales to AEP, and $67,774 in Tolling agreement sales to Dynasty Power. February 2022 Sales for Resale of $276,231 included $31,981 in market sales, $146,250 in capacity sales to AEP, and $98,000 in capacity sales to Rice Lake. February 2021 Sales for Resale of $256,531 consisted of $12,281 in market sales, $146,250 in capacity sales to AEP, and $98,000 in capacity sales to Rice Lake. Overall Purchased Power decreased by $92,455. MRES purchases decreased by $5,310 and market purchases/MISO costs decreased by $87,145. The average cost of MISO power was $46.41/mwh (19,617 mwh's purchased), compared to $50.32/mwh (19,994 mwh's purchased) in February 2022. Power Cost Adjustment for February 2023 was $.00478/kwhr bringing in an additional $88,376 for the month and $304,953 YTD. Power Cost Adjustment for February 2022 was $.00648/kwhr bringing in an additional $137,066 for the month and $243,139 YTD. Gas Division Customer Revenue Transportation Electric Div. Transfer Other Revenues Interest Income TOTAL REVENUES Salaries & Benefits Purchased Gas Operating Expense Depreciation Transfers (City) Debt Interest TOTAL EXPENSES NET PROFIT/(LOSS) HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR FEBRUARY, 2023 2023 2022 Di . $ 1,646,035 $ 1,824,477 $ (178,442) $ 86,670 $ 87,775 $ (1,104) $ 59,960 $ 59,724 $ 236 $ 29,918 $ 22,581 $ 7,337 $ 38,178 $ 22,036 $ 16,142 $ 1,860,762 $ 2,016,592 $ (155,831) % Chna 2023 2022 Di . (9.8%) $ 3,536,687 $ 3,876,531 $ (339,844) (1.3%) $ 175,326 $ 176,261 $ (935) 0.4% $ 119,920 $ 119,447 $ 472 32.5% $ 53,008 $ 51,975 $ 1,034 73.3% $ 74,219 $ 38,596 $ 35,623 (7.7%) $ 3,959,159 $ 4,262,810 $ (303,651) % Chna 16.67% of Year Full Yr Bud $ 13,179,855 Comp. % of Bud 26.8% (8.8%) (0.5%) $ 1,354,349 12.9% 0.4% $ 719,517 16.7% 2.0% $ 297,034 17.8% 92.3% $ 250,000 29.7% (7.1%)l $ 15,800,755 25.1% $ 135,103 $ 132,054 $ 3,049 2.3% $ 286,268 $ 280,955 $ 5,313 1.9% $ 2,045,280 $ 1,091,331 $ 1,243,235 $ (151,904) (12.2%) $ 2,398,155 $ 2,684,546 $ (286,391) (10.7%) $ 8,704,760 $ 41,901 $ 73,077 $ (31,176) (42.7%) $ 117,898 $ 146,862 $ (28,964) (19.7%) $ 1,255,046 $ 90,688 $ 91,329 $ (641) (0.7%) $ 181,377 $ 182,658 $ (1,281) (0.7%) $ 1,100,000 $ 48,760 $ 47,804 $ 956 2.0% $ 97,520 $ 95,608 $ 1,912 2.0% $ 585,122 $ 27,796 $ 35,004 $ (7,208) 0.0% $ 55,592 $ 70,008 $ (14,417) 20.6% $ 333,550 $ 1,435,579 $ 1,622,504 $ (186,924) (11.5%) $ 3,136,811 $ 3,460,639 $ (323,828) (9.4%) $ 14,023,758 S 425.182 S 394.089 S 31.094 7.9% S 822.349 S 802 171 $ 20 177 2.5% $ 1 776 997 46.3% 2023 2022 Di . % Chna 1 2023 14.0% 27.5% 9.4 % 16.5 % 16.7% 16.7% 22.4% 16.67% of Year Comp. 2022 Di % Chna Full Yr Bud % of Bud Gas Division Residential 67,490,691 79,767,502 (12,276,811) (15.39%) 143,911,171 172,200,941 (28,289,770) (16.43%) 449,212,000 32.0% Commercial 48,392,328 57,690,253 (9,297,925) (16.12%) 102,600,912 123,522,018 (20,921,106) (16.94%) 350,057,000 29.3% Industrial 81,711,674 103,030,318 (21,318,644) (20.69%) 186,245,728 219,419,937 (33,174,209) (15.12%) 919,535,000 20.3% Total CF Sold 197,594,693 240,488,073 (42,893,380) (17.84%) 432,757,811 515,142,896 (82,385,085) (15.99%) 1,718,804,000 25.2% February February YTD YTD 2023 HUC 2023 2022 Change 2023 2022 Change Budget Target Gross Margin %: 38.6% 35.0% 3.6% 36.9% 34.4% 2.4% 40.4% Operating Income Per Revenue $ (%): 21.7% 19.7% 2.0% 19.8% 18.8% 1.0% 10.6% IIIIIIIIIIIIIIIIIIIIII Net Income Per Revenue $ (%): 22.8% 19.5% 3.3% 20.8% 18.8% 2.0% 11.2% IIIIIIIIIIIIIIIIIIIIII Contracted Customer Rev. per CF: $0.0078 $0.0062 $0.0015 $0.0075 $0.0062 $0.0014 $0.0063 IIIIIIIIIIIIIIIIIIIIII 11111°'� uuuuuuuuuuuu Customer Revenue per CF: $0.0087 $0.0085 $0.0002 $0.0086 $0.0085 $0.0002 $0.0091 $0.0091 Total Power Supply Exp. per CF: $0.0056 $0.0053 $0.0002 $0.0056 $0.0053 $0.0003 $0.0053 $0.0053 Notes/Graphs: February 2023 net income increased by $31,094 despite decreased usage and revenue associated with higher than normal temperatures. The decrease in revenue was offset by lower purchased gas costs. There was no fuel cost adjustment for either February 2023 or February 2022. Current Assets UnrestrictedlUndesignated Cash Cash Petty Cash Designated Cash Capital Expenditures - Five Yr. CIP Payment in Lieu of Taxes Rate Stabilization - Electric Rate Stabilization - Gas Catastrophic Funds Restricted Cash Bond Interest Payment 2017 Bond Interest Payment 2012 Debt Service Reserve Funds Total Current Assets Receivables Accounts (net of uncollectible allowances) Interest Total Receivables Other Assets Inventory Prepaid Expenses Sales Tax Receivable Deferred Outflows - Electric Deferred Outflows - Gas Total Other Assets Total Current Assets Capital Assets Land & Land Rights Depreciable Capital Assets Accumulated Depreciation Construction - Work in Progress Total Net Capital Assets HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED FEBRUARY 28, 2023 Electric Gas Total Total Net Change Division Division 2023 2022 Total (YTD) 4,479,638.36 11,330,556.68 15,810,195.04 17,117,567.33 (1,307,372.29) 680.00 170.00 850.00 850.00 - 2,750,000.00 700,000.00 3,450,000.00 3,450,000.00 - 1,319,414.00 585,122.00 1,904,536.00 1,867,192.00 37,344.00 395,204.99 - 395,204.99 364,336.05 30,868.94 - 332,317.86 332,317.86 576,827.46 (244,509.60) 800,000.00 200,000.00 1,000,000.00 1,000,000.00 - 995,714.06 - 995,714.06 995,213.97 500.09 - 539,637.51 539,637.51 537,512.46 2,125.05 522,335.64 2,188,694.02 2,711,029.66 2,711,029.66 - 11,262,987.05 15,876,498.07 27,139,485.12 28,620,528.93 (1,481,043.81) 2,085,088.79 1,846,376.16 3,931,464.95 4,078,611.75 (147,146.80) 59,141.99 59,142.00 118,283.99 94,415.01 23,868.98 2,144,230.78 1,905,518.16 4,049,748.94 4,173,026.76 (123,277.82) 1,714,494.80 519,418.48 2,233,913.28 2,255,697.15 (21,783.87) 339,164.95 53,178.83 392,343.78 386,379.66 5,964.12 240,834.82 - 240,834.82 146,235.82 94,599.00 1,221,397.00 - 1,221,397.00 1,630,746.00 (409,349.00) - 407,133.00 407,133.00 543,582.00 (136,449.00) 3,515,891.57 979,730.31 4,495,621.88 4,962,640.63 (467,018.75) 16,923,109.40 18,761,746.54 690,368.40 3,899,918.60 112,480,500.84 42,872,726.46 (67,531,228.73) (20,445,753.03) 986,943.24 369,220.58 46,626,583.75 26,696,112.61 35,684,855.94 37,756,196.32 (2,071,340.38) 4,590,287.00 4,590,287.00 - 155,353,227.30 153,771,033.67 1,582,193.63 (87,976,981.76) (83,616,401.94) (4,360,579.82) 1,356,163.82 68,837.33 1,287,326.49 73,322,696.36 74,813,756.06 (1,491,059.70) Total Assets 63,549,693.15 45,457,859.15 109,007,552.30 112,569,952.38 (3,562,400.08) Current Liabilities Current Portion of Long-term Debt Bonds Payable Bond Premium Lease Liability - Solar Array Accounts Payable Accrued Expenses Accrued Interest Accrued Payroll Total Current Liabilities Long -Term Liabilities Noncurrent Portion of Long-term Debt 2017 Bonds 2012 Bonds Bond Premium 2012 Pension Liability- Electric Pension Liability - Electric OPEB Pension Liability - Nat Gas Pension Liability - Nat Gas OPEB Accrued Vacation Payable Accrued Severance Deferred Outflows - Electric Deferred Outflows - Nat Gas Total Long -Term Liabilities Net Position Retained Earnings Total Net Position HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED FEBRUARY 28, 2023 Electric Gas Total Division Division 2023 730,000.00 19, 546.00 2,216,557.85 113,214.07 141,151.25 3,220,469.17 13,300,000.00 493,490.16 4,021,396.00 77,480.00 514,998.51 109,985.36 98,554.00 18,615,904.03 1,825,000.00 185,608.32 1,307,083.60 83,387.51 45,673.59 3,446,753.02 5,955,000.00 510,422.51 1,340,466.00 25,827.00 185,601.83 30,300.18 32,851.00 8,080,468.52 2,555,000.00 185,608.32 19, 546.00 3,523,641.45 196,601.58 186,824.84 6,667,222.19 13,300,000.00 5,955,000.00 1,003,912.67 4,021,396.00 77,480.00 1,340,466.00 25,827.00 700,600.34 140,285.54 98,554.00 32,851.00 26,696,372.55 Total Net Change 2022 Total (YTD) 2,430,000.00 125,000.00 185,608.32 - - 19,546.00 3,071,332.00 452,309.45 225,226.54 (28,624.96) 166,995.78 19,829.06 6,079,162.64 588,059.55 14,030,000.00 (730,000.00) 7,780,000.00 (1,825,000.00) 1,222,977.95 (219,065.28) 2,219,565.00 1,801,831.00 94,162.00 (16,682.00) 739,855.00 600,611.00 31,387.00 (5,560.00) 595,141.98 105,458.36 123,254.85 17,030.69 2,041,393.00 (1,942,839.00) 680,464.00 (647,613.00) 29,558,200.78 (2,861,828.23) 41,713,319.95 33,930,637.61 75,643,957.56 76,932,588.96 (1,288,631.40) 41,713,319.95 33,930,637.61 75,643,957.56 76,932,588.96 (1,288,631.40) Total Liabilities and Net Position 63,549,693.15 45,457,859.15 109,007,552.30 112,569,952.38 (3,562,400.08) Hutchinson Utilities Commission Cash -Designations Report, Combined February 28, 2023 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest February 2023 January 2023 Position Savings, Checking, Investments varies varies varies 27,139,485.12 26,786,941.27 352,543.85 Total Operating Funds 27,139,485.12 26,786,941.27 352,543.85 Debt Reserve Requirements Bond Covenants - sinking fund Debt Reserve Requirements Bond Covenants -1 year Max. P & I Total Restricted Funds Operating Reserve Rate Stabalization Funds PILOT Funds Catastrophic Funds Capital Reserves Total Designated Funds Min 60 days of 2023 Operating Bud. Charter (Formula Only) Risk Mitigation Amount 5 Year CIP (2023-2027 Fleet & Infrastructure Maintenance) 1,535,351.57 1,256,901.05 278,450.52 2,711,029.66 2,711,029.66 - 4,246,381.23 3,967,930.71 278,450.52 6,797,207.17 6,797,207.17 - 727,522.85 674,054.07 53,468.78 1,904,536.00 1,904,536.00 - 1, 000, 000.00 1, 000, 000.00 3,450,000.00 3,450,000.00 - 13,879,266.02 13,825,797.24 53,468.78 YE YE YE YE YTD HUC 2019 2020 2021 2022 2023 Target Debt to Asset 34.9% 32.3% 30.8% 31.4% 30.6% Current Ratio 5.11 5.67 5.22 4.47 4.48 RONA 2.25% 3.62% 0.41% -1.38% 0.52% Change in Cash Balance (From 12131114 to 212812023) Month End Electric Elec. Change Natural Gas Gas Change Total Total Change 2/28/202 3 11, 262, 987 15, 876, 498 27,139, 485 12/31/2022 11,633,212 15,450,554 27,083,766 55,720 12/31/2021 12,870,253 (1,237,041) 15,086,000 364,554 27,956,253 (872,487) 12/31/2020 14,239,233 (1,368,981) 15,019,173 66,827 29,258,406 (1,302,153) 12/31/2019 12,124,142 2,115,092 13,837,040 1,182,133 25,961,181 3,297,225 12/31/2018 15,559,867 (3,435,725) 12,335,998 1,501,042 27,895,864 (1,934,683) 12/31/2017 23,213,245 (7,653,378) 10,702,689 1,633,309 33,915,934 (6,020,070) 12/31/2016 8,612,801 14,600,444 9,500,074 1,202,615 18,112,875 15,803,059 12/31/2015 6,170,790 2,442,011 9,037,373 462,701 15,208,163 2,904,712 12/31/2014 3,598,821 2,571,969 6,765,165 2,272,208 10,363,986 4,844,177 * 2017's Significant increase in cash balance is due to issuing bonds for the generator project. Hutchinson Utilities Commission Cash -Designations Report, Electric February 28, 2023 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest February 2023 January 2023 Position Savings, Checking, Investments varies varies Total HUC Operating Funds tiectric xI Debt Restricted Requirements Bond Covenants - sinking fund Debt Restricted Requirements Bond Covenants -1 year Max. P & I Total Restricted Funds Operating Reserve Rate Stabalization Funds PILOT Funds Catastrophic Funds Capital Reserves Total Designated Funds varies 27,139,485.12 26,786,941.27 352,543.85 Min 60 days of 2023 Operating Bud. $400 K-$1.2 K Charter (Formula Only) Risk Mitigation Amount 5 Year CIP (2023-2027 Fleet & Infrastructure Maintenance) 27,139,485.12 26,786,941.27 352,543.85 995,714.06 897,142.71 98,571.35 522,335.64 522,335.64 - 1,518,049.70 1,419,478.35 98,571.35 4,643,247.50 4,643,247.50 395,204.99 395,204.99 1, 319, 414.00 1, 319, 414.00 800,000.00 800,000.00 2,750,000.00 2,750,000.00 9,907,866.49 9,907,866.49 YE YE YE YE YTD APPA Ratio HUC 2019 2020 2021 2022 2023 5K-10K Cust. Target Debt to Asset Ratio (* w/Gen.) 34.1% 32.6% 32.2% 34.8% 34.4% 39.8% Current Ratio 5.26 6.18 5.70 4.96 4.40 3.75 RONA -0.4% 2.5% -1.2% -4.2% -0.6% NA >0% Notes/Graphs: RONA has fluctuated through the years due to a few anomalies that we discussed previously. 2020 was positive mostly due to the MRES reimbursement, but also insurance proceeds and positive pension GASB entries. 2022 much higher negative percentage had to do with some things we discussed during the meeting last month such as negative GASB entries and losses on our mark to market adjustment on investments due to the rising interest rates. Hutchinson Utilities Commission Cash -Designations Report, Gas February 28, 2023 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest February 2023 January 2023 Position Savings, Checking, Investments varies varies Total HUC Operating Funds Debt Restricted Requirements Bond Covenants - sinking fund Debt Restricted Requirements Bond Covenants -1 year Max. P & I Total Restricted Funds Operating Reserve Rate Stabalization Funds PILOT Funds Catastrophic Funds Capital Reserves Total Designated Funds varies 27,139,485.12 26,786,941.27 352,543.85 27,139,485.12 26,786,941.27 352,543.85 Min 60 days of 2023 Operating Bud. $200K-$600K Charter (Formula Only) Risk Mitigation Amount 5 Year CIP (2023-2027 Fleet & Infrastructure Maintenance) 539, 637.51 359, 758.34 179, 879.17 2,188,694.02 2,188,694.02 - 2,728,331.53 2,548,452.36 179,879.17 2,153,959.67 2,153,959.67 - 332,317.86 278,849.08 53,468.78 585,122.00 585,122.00 - 200,000.00 200,000.00 700,000.00 700,000.00 - 3,971,399.53 3,917,930.75 53,468.78 YE YE YE YE YTD HUC 2019 2020 2021 2022 2023 AGA Ratio Target Debt to Asset 36.1% 32.0% 28.8% 26.5% 25.4% 35%-50% Current Ratio 4.96 5.18 4.79 4.06 4.53 1.0-3.0 RONA 6.4% 5.3% 2.9% 3.0% 2.1% 2%-5% Notes/Graphs: HUTCHINSON UTILITIES COMMISSION Investment Report For the Month Ended February 28, 2023 Interest Current Date of Date of Par Current Purchase Unrealized Premium Next Institution Description Rate YTM Purchase Maturity Value Value Amount Gain/(Loss) (Discount) Call Date Wells Fargo Money Market 4.010% 4.010% NA NA - 64,161.69 - - - N/A Wells Fargo US Treasury Note 2.500% 1.942% 06/07/2022 03/31/2023 1,000,000.00 998,170.00 1,004,471.88 (6,301.88) 4,471.88 N/A Wells Fargo US Treasury Note 2.750% 2.128% 06/07/2022 05/31/2023 1,000,000.00 994,560.00 1,006,000.00 (11,440.00) 6,000.00 N/A Wells Fargo FHLB 4.750% 4.750% 02/01/2023 02/01/2024 1,000,000.00 994,350.00 1,000,000.00 (5,650.00) - N/A Wells Fargo FFCB 4.250% 4.250% 12/20/2022 12/20/2024 1,000,000.00 985,830.00 1,000,000.00 (14,170.00) - N/A Wells Fargo FHLB 0.400% 0.587% 01/29/2021 01/29/2026 295,000.00 262,075.05 295,000.00 (32,924.95) - 07/29/2023 Wells Fargo FHLB 0.400% 0.525% 02/09/2021 02/09/2026 470,000.00 415,169.80 470,000.00 (54,830.20) - 08/09/2023 Wells Fargo FHLB 0.750% 1.432% 04/29/2021 04/29/2026 400,000.00 364,632.00 400,000.00 (35,368.00) - 06/29/2023 Wells Fargo FHLB 0.650% 1.069% 06/30/2021 06/30/2026 300,000.00 266,445.00 300,000.00 (33,555.00) - 03/30/2023 Wells Fargo FHLB 0.700% 1.281% 09/30/2021 09/30/2026 250,000.00 221,877.50 250,000.00 (28,122.50) - 03/30/2023 Wells Fargo CD's 2.550% 2.550% 06/17/2022 12/18/2023 245,000.00 240,261.70 245,000.00 (4,738.30) - N/A Wells Fargo CD's 0.300% 0.300% 01/08/2021 01/08/2024 245,000.00 235,280.85 245,000.00 (9,719.15) - N/A Wells Fargo CD's 0.450% 0.450% 04/14/2021 04/15/2024 245,000.00 232,588.30 245,000.00 (12,411.70) - 08/14/2023 Wells Fargo CD's 2.800% 2.800% 06/17/2022 06/17/2024 245,000.00 238,024.85 245,000.00 (6,975.15) - N/A Wells Fargo CD's 0.550% 0.550% 08/02/2021 08/05/2024 245,000.00 229,802.65 245,000.00 (15,197.35) - N/A Wells Fargo CD's 4.800% 4.800% 11/16/2022 11/15/2024 245,000.00 243,951.40 245,000.00 (1,048.60) - N/A Wells Fargo CD's 1.100% 1.100% 01/31/2022 01/31/2025 245,000.00 227,480.05 245,000.00 (17,519.95) - 07/31/2023 Wells Fargo CD's 1.600% 1.600% 02/23/2022 02/24/2025 245,000.00 229,212.20 245,000.00 (15,787.80) - N/A Wells Fargo CD's 3.100% 3.100% 06/15/2022 06/16/2025 245,000.00 235,075.05 245,000.00 (9,924.95) - N/A Wells Fargo CD's 3.100% 3.100% 06/15/2022 06/16/2025 245,000.00 235,075.05 245,000.00 (9,924.95) - N/A Wells Fargo CD's 3.300% 3.300% 08/26/2022 08/26/2025 245,000.00 235,628.75 245,000.00 (9,371.25) - N/A Wells Fargo CD's 1.000% 1.000% 05/19/2021 05/19/2026 245,000.00 217,388.50 245,000.00 (27,611.50) - N/A Wells Fargo CD's 1.000% 1.000% 07/28/2021 07/28/2026 245,000.00 215,543.65 245,000.00 (29,456.35) - N/A Wells Fargo CD's 1.050% 1.050% 08/08/2021 08/25/2026 238,000.00 209,761.30 238,000.00 (28,238.70) - N/A Wells Fargo CD's 1.000% 1.207% 07/31/2021 07/13/2028 245,000.00 205,123.80 245,000.00 (39,876.20) 06/13/2023 Broker Total 49.6% 9,383,000.00 8,997,469.14 9,393,471.88 (460,164.43) 10,471.88 Cetera Investment Services Money Market 0.600% 0.600% N/A N/A - 2,370.24 - - - N/A Cetera Investment Services Municipal Bonds 3.075% 3.236% 12/20/2018 06/01/2023 50,000.00 49,724.50 49,746.15 (21.65) (253.85) N/A Cetera Investment Services Municipal Bonds 5.290% 2.724% 04/18/2019 06/01/2023 260,000.00 259,981.80 291,059.96 (31,078.16) 31,059.96 N/A Cetera Investment Services Municipal Bonds 2.500% 3.181% 12/20/2018 08/01/2023 35,000.00 34,608.70 34,320.05 288.65 (679.95) N/A Cetera Investment Services Municipal Bonds 3.400% 3.148% 12/20/2018 11/01/2023 125,000.00 123,200.00 126,376.25 (3,176.25) 1,376.25 N/A Cetera Investment Services Municipal Bonds 3.400% 3.148% 12/20/2018 11/01/2023 65,000.00 64,064.00 65,715.65 (1,651.65) 715.65 N/A Cetera Investment Services Municipal Bonds 2.854% 3.173% 12/20/2018 02/01/2024 100,000.00 97,648.00 99,605.96 (1,957.96) (394.04) N/A Cetera Investment Services Municipal Bonds 2.977% 3.246% 12/20/2018 03/15/2024 250,000.00 244,790.00 248,743.99 (3,953.99) (1,256.01) N/A Cetera Investment Services Municipal Bonds 1.940% 1.821% 01/13/2020 05/01/2024 65,000.00 62,568.35 65,570.70 (3,002.35) 570.70 N/A Cetera Investment Services Municipal Bonds 5.742% 3.658% 04/11/2019 08/01/2024 190,000.00 191,453.50 208,924.00 (17,470.50) 18,924.00 N/A Cetera Investment Services Municipal Bonds 5.000% 4.253% 02/09/2023 08/15/2024 270,000.00 269,400.60 279,454.50 (10,053.90) 9,454.50 N/A Cetera Investment Services Municipal Bonds 2.400% 2.908% 08/05/2022 08/15/2024 50,000.00 48,181.50 50,070.17 (1,888.67) 70.17 N/A Cetera Investment Services Municipal Bonds 2.402% 2.926% 08/05/2022 10/01/2024 125,000.00 120,113.75 124,674.19 (4,560.44) (325.81) N/A Cetera Investment Services Municipal Bonds 5.200% 4.710% 02/21/2023 11/01/2024 30,000.00 30,114.00 30,711.27 (597.27) 711.27 N/A Cetera Investment Services Municipal Bonds 2.528% 1.918% 01/13/2020 12/01/2024 100,000.00 95,866.00 102,999.53 (7,133.53) 2,999.53 N/A Cetera Investment Services Municipal Bonds 1.319% 4.407% 09/26/2022 12/01/2024 50,000.00 46,640.50 47,238.35 (597.85) (2,761.65) N/A Cetera Investment Services Municipal Bonds 3.922% 3.429% 12/20/2018 12/01/2024 204,000.00 198,385.92 208,181.10 (9,795.18) 4,181.10 N/A Cetera Investment Services Municipal Bonds 4.415% 4.516% 02/21/2023 05/01/2025 60,000.00 59,331.60 59,907.79 (576.19) (92.21) N/A Cetera Investment Services Municipal Bonds 4.400% 3.221% 04/11/2019 07/01/2025 500,000.00 483,405.00 539,101.11 (55,696.11) 39,101.11 07/01/2023 Cetera Investment Services Municipal Bonds 0.824% 4.678% 01/09/2023 08/01/2025 100,000.00 90,579.00 91,160.64 (581.64) (8,839.36) N/A Cetera Investment Services Municipal Bonds 5.640% 3.007% 04/18/2019 08/15/2025 205,000.00 179,290.95 169,737.95 9,553.00 (35,262.05) N/A Cetera Investment Services Municipal Bonds 3.743% 2.740% 04/18/2019 09/15/2025 215,000.00 209,031.60 228,334.53 (19,302.93) 13,334.53 N/A Cetera Investment Services Municipal Bonds 3.379% 1.934% 08/19/2019 10/01/2025 310,000.00 295,975.60 339,739.18 (43,763.58) 29,739.18 N/A Cetera Investment Services Municipal Bonds 2.727% 2.271% 03/03/2022 12/01/2025 335,000.00 308,240.20 342,781.72 (34,541.52) 7,781.72 N/A Cetera Investment Services Municipal Bonds 5.600% 1.186% 07/28/2020 12/01/2025 45,000.00 45,782.10 55,250.55 (9,468.45) 10,250.55 N/A Cetera Investment Services Municipal Bonds 4.250% 3.258% 04/11/2019 01/01/2026 500,000.00 488,525.00 529,769.03 (41,244.03) 29,769.03 N/A Cetera Investment Services Municipal Bonds 2.420% 1.175% 10/06/2020 03/01/2026 100,000.00 91,966.00 106,734.28 (14,768.28) 6,734.28 N/A Cetera Investment Services Municipal Bonds 1.609% 1.124% 09/24/2020 04/01/2026 285,000.00 257,868.00 292,370.10 (34,502.10) 7,370.10 N/A Cetera Investment Services Municipal Bonds 6.690% 3.356% 04/18/2019 04/15/2026 60,000.00 50,433.00 47,545.20 2,887.80 (12,454.80) N/A Cetera Investment Services Municipal Bonds 5.900% 1.451% 07/28/2020 06/15/2026 75,000.00 77,169.75 93,741.75 (16,572.00) 18,741.75 N/A Cetera Investment Services Municipal Bonds 0.000% 1.415% 08/13/2020 07/01/2026 100,000.00 84,527.00 92,037.00 (7,510.00) (7,963.00) N/A Cetera Investment Services Municipal Bonds 3.250% 2.903% 04/18/2019 08/01/2026 500,000.00 470,330.00 514,790.69 (44,460.69) 14,790.69 N/A Cetera Investment Services Municipal Bonds 2.116% 3.307% 06/07/2022 08/01/2026 75,000.00 68,387.25 71,565.00 (3,177.75) (3,435.00) N/A Cetera Investment Services Municipal Bonds 2.150% 2.203% 07/01/2019 12/01/2026 40,000.00 36,600.40 40,150.64 (3,550.24) 150.64 N/A Cetera Investment Services Municipal Bonds 1.664% 1.150% 08/27/2020 09/01/2026 225,000.00 200,844.00 231,696.00 (30,852.00) 6,696.00 N/A Cetera Investment Services Municipal Bonds 2.375% 1.816% 09/04/2019 12/01/2026 90,000.00 82,638.90 93,395.70 (10,756.80) 3,395.70 N/A Interest Current Date of Date of Par Current Purchase Unrealized Premium Next Institution Description Rate YTM Purchase Maturity Value Value Amount Gain/(Loss) (Discount) Call Date Cetera Investment Services Municipal Bonds 2.350% 2.191 % 07/01/2019 12/01/2026 500,000.00 458,600.00 505,385.00 (46,785.00) 5,385.00 N/A Cetera Investment Services Municipal Bonds 3.000% 1.991% 08/19/2019 02/01/2027 50,000.00 46,812.50 53,551.00 (6,738.50) 3,551.00 N/A Cetera Investment Services Municipal Bonds 3.150% 2.034% OS/19/2019 03/15/2027 100,000.00 94,458.00 109,138.50 (14,680.50) 9,138.50 N/A Cetera Investment Services Municipal Bonds 3.332% 3.120% 04/18/2019 04/15/2027 500,000.00 473,995.00 507,783.94 (33,788.94) 7,783.94 N/A Cetera Investment Services Municipal Bonds 3.865% 2.470% 08/1 9/201 9 05/01/2027 55,000.00 53,579.35 60,986.48 (7,407.13) 5,986.48 05/01/2025 Cetera Investment Services Municipal Bonds 3.553% 2.289% 08/19/2019 05/01/2027 55,000.00 51,951.35 60,468.04 (8,516.69) 5,468.04 OS/01/2026 Cetera Investment Services Municipal Bonds 3.230% 1.828% 08/1 9/201 9 05/15/2027 145,000.00 136,898.85 160,827.31 (23,928.46) 15,827.31 N/A Cetera Investment Services Municipal Bonds 1.925% 1.719% 11/23/2021 06/01/2027 310,00NO 272,93%0 313,447.46 (40,507.96) 3,447.46 Make -Whole Call Cetera Investment Services Municipal Bonds 1.861% 1.254% 06/07/2021 07/01/2027 410,000.00 363,157.50 412,336.71 (49,179.21) 2,336.71 N/A Cetera Investment Services Municipal Bonds 3.000% 3.101% 05/18/2020 09/01/2027 65,000.00 62,861.50 69,180.58 (6,319.08) 4,180.58 09/01/2025 Cetera Investment Services Municipal Bonds 2.817% 2.817% 09/25/2019 10/01/2027 35,000.00 27,640.90 27,969.55 (328.65) (7,030.45) O5/01/2025 Cetera Investment Services Municipal Bonds 1.415% 1.793% 11/23/2021 03/01/2028 100,000.00 85,917.00 9$088.31 (12,171.31) (1,911.69) N/A Cetera Investment Services Municipal Bonds 3.270% 2.141% 08/19/2019 03/15/2028 155,000.00 144,281.75 170,805.09 (26,523.34) 15,805.09 09/15/2027 Cetera Investment Services Municipal Bonds 2.974% 2.574% 11/07/2019 04/01/2028 75,000.00 68,035.50 77,253.00 (9,217.50) 2,253.00 N/A Cetera Investment Services Municipal Bonds 2.125% 1.904% 11/23/2021 06/01/2028 110,000.00 95,088.40 111,525.06 (16,436.66) 1:525.06 N/A Cetera Investment Services Municipal Bonds 2.547% 1.240% 08/10/2021 07/01/2028 125,000.00 112,197.50 136,101.16 (23,903.66) 11,101.16 N/A Cetera Investment Services Municipal Bonds 3.140% 2.004% OS/19/2019 08/01/2028 500,000.00 456,210.00 547,105.00 (90,895.00) 47,105.00 O8/01/2027 Cetera Investment Services Municipal Bonds 3.000% 2.199% 05/19/2020 08/15/2028 90,000.00 86,557.50 95,401.80 (8,844.30) 5,401.80 08/15/2025 Cetera Investment Services Municipal Bonds 1.692% 1.813% 11/24/2021 10/01/2028 180,000.00 150,854.40 179, 18%4 (28,334.34) (811.26) N/A Cetera Investment Services Municipal Bonds 3.000% 1.942% 08/19/2019 06/01/2029 115,000.00 104:635.05 125:961.80 (21,326.75) 10,961.80 N/A Cetera Investment Services Municipal Bonds 4.000% 3.214% 03/22/2021 09/01/2031 60,000.00 60,028.80 64,292.00 (4,263.20) 4,292.00 09/01/2024 Cetera Investment Services Municipal Bonds 3.500% 2.699% 11/23/2021 02/01/2033 50,000.00 49:893.00 54:390.44 (4,497.44) 4:390.44 02/01/2025 Cetera Investment Services Municipal Bonds 3.250% 2.655% 08/19/2019 06/01/2029 75,000.00 74,956.50 79,860.31 (4,903.81) 4,860.31 02/01/2025 Cetera Investment Services Municipal Bonds 3.125% 2.303% 11/23/2021 10/01/2034 50,000.00 48,251.50 54,773.69 (6,522.19) 4,773.69 04/01/2027 Cetera Investment Services Municipal Bonds 3.125% 2.456% 11/23/2021 02/01/2035 50,000.00 47,102.00 54,236.11 (7,134.11) 4,236.11 02/01/2026 Broker Total 50.4% 10,079,000.00 9,146,940.06 10,429,056.24 (1,284,486.42) 350,056.24 TOTAL INVESTMENTS 100.0% ELECTRIC DIVISION Operating Revenue February 2023 CLASS AMOUNT KWH /KWH Street Lights $21.04 386 $0.05451 Electric Residential Service $439,904.96 3,985,201 $0.11038 All Electric Residential Service $29,820.59 305,013 $0.09777 Electric Small General Service $150,712.18 1,440,690 $0.10461 Electric Large General Service $531,104.38 5,659,490 $0.09384 Electric Large Industrial Service $574,385.44 7,027,000 $0.08174 Total $1,725,948.59 18,417,780 $0.09371 Power Adjustment $0.00478 Rate Without Power Adjustment $0.08893 Electric Division Year -to -Date M2023 $A--t 02022 $A--t ■2023 KWH110 02022 KWH110 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Street Lights Residential All Elec. Small Gen. Large Gen. Large For Resale Total Resid. Srv. Srv. Industrial NOTE: Sales for resale includes capacity sales and market sales. NATURAL GAS DIVISION Operating Revenue FEBRUARY 2023 CLASS AMOUNT MCF /$ MCF Residential $586,785.90 67,491 $8.69428 Commercial $423,125.83 48,392 $8.74371 Large Industrial $11,933.05 1,221 $9.77318 Large Industrial Contracts $624,190.37 80,491 $7.75478 Total $1,646,035.15 197,595 $8.33035 Fuel Adjustment $0.00000 Rate Without Fuel Adjustment $8.33035 Natural Gas Division Year -to -Date ® 2023 $ Amount 0 2022 $ Amount ■ 2023 MCF 13 2022 MCF 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Gas Residential Gas Commercial Large Industrial Large Industrial Total Contracts 3/14/23, 7:20 AM eReliability I Monthly Statistics Monthly Report - Hutchinson Utilities Commission Year 2023 Month 02 - February Annual Report? Yes Oio No Hutchinson Utilities Commission Minimum duration Maximum duration Top-level Cause Substation Circuit Remove Major Events? Use APPA Event threshol v https://reliability.publicpower.org/reports/monthly/utility/91 /?year=2023&month =2&is_annual_report=no&minimum_outage_duration=&maxim um_outag... 1 /5 3/14/23, 7:20 AM eReliability I Monthly Statistics IEEE 1366 Statistics Metric Feb 2023 Feb 2022 SAIDI 0.752 None SAIFI 0.107 None CAI DI 6.999 None ASAI 99.998% 100% Momentary Interruptions 0 0 Sustained Interruptions 1 0 Circuit Ranking - Worst Performing Ranked by Outage Count Circuit Substation Fdr#18 Plant 1 Ranked by Customer Interruptions Circuit Substation Fdr#18 Plant 1 Number of Outages 1 Customer Interruptions 800 Ranked by Customer Minutes of Duration Circuit Substation Customer Minutes of Duration Fdr#18 Plant 1 5,600 https://reliability.publicpower.org/reports/monthly/utility/91 /?year=2023&month =2&is_annual_report=no&minimum_outage_duration=&maxim um_outag... 2/5 3/14/23, 7:20 AM eReliability I Monthly Statistics Historical Monthly SAIDI Chart 5.0 Mor thly Ave age 4.0 ................... ty ......... . ......... . 3.0 2.0 ......... 1.0 ................................................... Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2023 2023 Historical Monthly SAIFI Chart SAIDI of monthly SAIDI values SAIFI of monthly SAIFI values https://reliability.publicpower.org/reports/monthly/utility/91 /?year=2023&month =2&is_annual_report=no&minimum_outage_duration=&maxim um_outag... 3/5 3/14/23, 7:20 AM Causes Ranked by Count eReliability I Monthly Statistics Cause Equipment Damage Causes Ranked by Duration Cause Equipment Damage Count Duration 5,600 https://reliability.publicpower.org/reports/monthly/utility/91 /?year=2023&month =2&is_annual_report=no&minimum_outage_duration=&maxim um_outag... 4/5 3/14/23, 7:20 AM Top 1 Outages for the Month eReliability I Monthly Statistics Address Customers Interrupted Duration Customer Minutes of Interruption 12th Ave NW 800 7 Total Customers Affected for the Month: Average Customers Affected per Outage: 5,600 Start Date 02/05/2023 800 800 https://reliability.publicpower.org/reports/monthly/utility/91 /?year=2023&month =2&is_annual_report=no&minimum_outage_duration=&maxim um_outag... 5/5 HUTCHINSON UTILITIES COMMISSION f tit ,c�,« Board Action Form Agenda Item: Review Policies ie Radke Review Policies BACKGROUND/EXPLANATION OFAGENDA ITEM: es As part of HUC's standard operating procedures, a continual policy review is practiced. This month, the following policies were reviewed and no changes are recommended on these policies at this time: Section 3 of Exempt Handbook Section 3 of Non -Exempt Handbook BOARD ACTION REQUESTED: None EXEMPT SECTION 3 — HOURS AND CONDITIONS OF EMPLOYMENT Staff Personnel will establish work schedules, subject to the General Manager's approval. The regular work week is five 8-hour working days with two consecutive days off. The normal work week is Monday through Friday, except as otherwise established by Staff Personnel based on the customers' and Department's needs. The Utilities office hours are 7:30 a.m. to 4:00 p.m. Monday through Friday. FLEXTIME PROGRAM HUC's flextime program allows exempt employees to vary their scheduled work hours to conform with the operations of the Utilities. Flextime is approved by the employee's Manager or Director. REST PERIODS Employees may take one 15-minute paid rest period during each four-hour work period. One rest period is taken in the morning and the other rest period is taken in the afternoon. Rest periods shall not be cumulative and shall not be utilized to compensate for other absences. MEAL PERIODS Employees receive an unpaid meal period either one-half hour or one -hour long for a shift lasting at least six hours. Meal periods shall not be cumulative and shall not be utilized to compensate for other absences. ATTENDANCE/TARDINESS Employees are expected to work or use approved leave for all their scheduled hours. Unsatisfactory attendance including reporting late, quitting early or excessive absenteeism shall be cause for disciplinary action. An employee anticipating being late for any reason, must contact his/her Director, Manager or Supervisor as far in advance as possible. Employees are also required to report to their Director, Manager or Supervisor if they are ill and unable to continue working. If an employee is ill and cannot report to work, the employee must notify his/her Director, Manager or Supervisor before the scheduled start of the workday. INCLEMENT WEATHER If inclement weather causes an employee to arrive late or leave the job early, the employee must use vacation time, floating holiday, compensatory time or time without pay for the portion of the scheduled shift the employee did not work. If the General Manager determines it is necessary to close HUC offices due to weather, all employees will be paid their regular pay. Essential employees will be required to remain on -duty, however, they will be given comparable time off at a later date. If an essential employee living within the limits of the City of Hutchinson cannot get to the job site due to inclement weather, a HUC vehicle or snowplow will be dispatched to pick up the essential employee. NON-EXEMPT SECTION 3 — HOURS AND CONDITIONS OF EMPLOYMENT See Union Contract. REST PERIODS Employees may take one 15-minute paid rest period during each four-hour work period. Rest periods are taken during the second and third hours and between the sixth and seventh hours of the workday. During the summer, the afternoon rest period shall be taken when the Manager or Director deems it appropriate. Rest periods shall not be cumulative and shall not be utilized to compensate for other absences. MEAL PERIODS Employees receive an unpaid meal period of one-half hour for a shift lasting at least six hours. Meal periods may not be cumulative and may not be utilized to compensate for other absences. ATTENDANCE/TARDINESS Employees are expected to work or use approved leave for all their scheduled hours. Unsatisfactory attendance including reporting late, quitting early or excessive absenteeism shall be cause for disciplinary action. An employee anticipating being late for any reason, must contact his/her Director or Manager as far in advance as possible. Employees are also required to report to the Director or Manager if they are ill and unable to continue working. If an employee is ill and cannot report to work, the employee must notify his/her Director or Manager before the scheduled start of the workday. USE OF FACILITIES DURING OFF -DUTY HOURS Employees are not allowed on -site during off -duty hours without prior approval of a Director or Manager. INCLEMENT WEATHER If inclement weather causes an employee to arrive late or leave the job early, the employee must use vacation time, floating holiday, compensatory time or time without pay for the portion of the scheduled shift the employee did not work. If the General Manager determines it is necessary to close HUC offices due to weather, all employees will be paid their regular pay. Essential employees will be required to remain on -duty, however, they will be given comparable time off at a later date. If an essential employee living within the limits of the City of Hutchinson cannot get to the job site due to inclement weather, a HUC vehicle or snowplow will be dispatched to pick up the essential employee. HUTCHINSON UTILITIES COMMISSION f tit ,c�,« Board Action Form Agenda Item: Approve Policy Changes ie Radke Approve Policy Changes es BACKGROUND/EXPLANATION OFAGENDA ITEM: As part of HUC's standard operating procedures, a continual policy review is practiced. The following revisions to the policies below are recommended. Employment of Relatives BOARD ACTION REQUESTED: Approve Policy Changes EMPLOYMENT OF RELATIVES No applicant or employee shall receive preferential consideration because of his/her relationship to an HUC employee, a Commission member, a Hutchinson City Council member or other City employees and officials. Any HUC employee who extends such preferential treatment is subject to discipline. 4:+e r4(-)-ed--b-y-4=ii A:;a. ��4) ii�eii�b er of a deq,�)a.rtfl�erlt head's ifml�.ediate 1"ifidly shall be a direct reg,)ort to the deq,)aruiierit marlager, agger, A former Commission member may not be hired as an employee of HUC for two years after the end of the Commissioner's term in office. HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Approval of Entitlement Extension of NNG Transportation Contract No. 102733 Presenter: John Webster Agenda Item Type: Time Requested (Minutes): 2 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Hutchinson Utilities maintains 50 Dth/day of capacity on the Northern Natural Gas Company (NNG) transmission system. Maintaining capacity on the NNG system provides for a secondary supply of natural gas to the City of Hutchinson in the event of a catastrophic failure to the Hutchinson Utilities' natural gas transmission line. This action will extend the entitlement for an additional term of 5 years, ending October 31, 2028 at Northern Natural Gas' maximum rates. NNG is currently in a rate case. December invoice for this contract was $973.55. January invoice for this contract was $1849.75 BOARD ACTION REQUESTED: Approval of Extension of Northern Natural Gas Contract No. 102733 Fiscal Impact: $7,424 - Old Rates Included in current budget: Yes Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: NORTHERN NATURAL GAS COMPANY CONTRACTS ADMINISTRATION DEPARTMENT RIGHT OF FIRST REFUSAL NOTICE February 28, 2023 To: Hutchinson Utility Commission Attn: John Webster Email: jwebster@ci.hutchinson.mn.us Your contract number 102733 for firm transportation service is due to expire October 31, 2023. Please check the box below that indicates how you would like us to proceed and return this form to us no later than April 29, 2023. Failure to return this form will result in your entitlement being automatically abandoned at the end of the current contract term. I wish to extend this entitlement for an additional term of 5 years ending October 31, 2028 at Northern's maximum rates. II wish to exercise my Right of First Refusal. II wish to abandon my firm entitlement under this agreement. Signed Date Please send your response to: Northern Natural Gas Company Attn: Contract Administration Fax: (402) 398-7117 Email: [ )B, al[Irof s anidTitneiiiie irdbrmadoii is d uic��fted w:� __-- -f t w tirricii� �c:..�d ' �191. i,ro�i �i John Webster From: Chamberlain, Connie (Northern Natural Gas) <Connie.Chamberlain@nngco.com> Sent: Tuesday, February 28, 2023 9:35 AM To: John Webster Cc: Underwood, Mike (Northern Natural Gas) Subject: ROFR Notice - Contract No. 102733 Attachments: Hutchinson Utility 102733.pdf EX URNAL EMAILALERT: This message originated from outside the City of Hutchinson email system. Unless you recognize the sender and know the content, DO NOT click links or open attachments. Attached for your review is the ROFR notice regarding contract 102733. Please inform us of your intention by completing the form and returning it to nn: co a„p„ : ^4 c(4p,gqt1goin no later than April 29, 2023. If you have any questions, please contact your Account Manager. Thank you. p"his e nmfl, including attachments, niay contain highlysensitiveconfidnthil, n!' ps etaiy r voluc(ble pip„ inmatio . p: is in endec'l nlY ji'Gv"' the desigrNatedfecipieizt(s)tid!°jf?)edtibowduser ioN"P„ r4".'u6.'10va)"dM9"i. N"di!ii,N"Nbuti()t'➢ qf philN""4"m"imps"ahh"Pn,i inclwfinq attw p: umints, is prohibited, If y, !'!w haw., tecelve this in eimr, p h 05ff iff)Mechately nop°p' yi the sender rrmY permimerUly delete ony tecord of thi HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Approval of 3M's Natural Gas Transportation and Daily Swing Supply Agreement Presenter: John Webster Agenda Item Type: Time Requested (Minutes): New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: 3M currently transports base load and daily swing supplies of natural gas on Hutchinson Utilities' transmission and distribution systems. 3M's current agreement expires on March 1, 2023 at 9 A.M.. This agreement provides transportation rights to 3M on Hutchinson's facilities from March 1, 2023 at 9.00 A.M., through March 1, 2024 at 9.00 A.M.. This Agreement is identical to the 2022 Agreement . All fees are in alignment with the rate realignment structure proposed by the Commission for this customer. BOARD ACTION REQUESTED: Approval of the 3M's Natural Gas Transportation and Daily Swing Supply Agreement Fiscal Impact: Approx. $$680,000 per year Included in current budget: Yes Budget Change: No PROJECT SECTION: Total Project Cost: Remaining Cost: %was Hutchinson ply% Utilities Commission 225 Michigan Street SE Hutchinson„ MN 55350-1 05 320-587-474 1 Fax 320-587-4721 W.IIL]Itchinsonutiliti s.co Putting All Our Energy into Serving You F-110-ft-ITOT40TWO THIN AGREEMENT IS MADE BY AND BETWEEN HUTCHINSON UTILITIES COMMISSION, HEREINAFTER `°HUC'* AND MINNESOTA MINING AND MANUFACTURING RINGCo_ HEREINAFTER " fir"(", ON THE FOLLOWING TERMS AND CONDITIONS, IN RELIANCE UPON THIS AGREEMENT, ENTER INTO AN AGREEMENT TO PROVIDE FIRM NATURAL CAS TRANSPORTATION AND DAILY NATURAL GAS COMMODITY SWING SUPPLY. FOREGOING AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED„ THE PARTIES MANSE: THE FOLLOWING AGREEMENT: HDC SHALL PROVIDE, AND, 3M SHALL ACCEPT, FIRM NATURAL CAS TRANSPORTATION AND DAILY NATURAL GAS COMMODITY WING SUPPLY COMMENCING MARCH 1 , 2023, AT 9:00 A.M. AND TERMINATING ON MARCH 1, 2024, AT 9:00 A.M, 2 HUTCHINSO.N'S'SOLE OBLIGATION UNDER THIS AGREEMENT IS TO PROVIDE FIRM NATURAL GAS TRANSPORTATION AND .DAILY NATURAL. GAS. COMMODITY SWING SUPPLY TO 3M. 3M SHALL PAY HUC BY `I"HE FOLLOWING SCHEDULE DURING THE TERM OF THIS AGREEMENT: FLO`/11 THROUGH ALL NATURAL GAS METERS TRANSPORTATION (TRANSMISSION $0.20/DTH) (DISTRIBUTION - $0.27/DTH) METER FEE (6 METERS) MONTHLY PEAK DAY DEMAND $0.47/.DTH $2 1 S/METER $9.00/MCF 3. HUC SHALL. TRANSPORT ALL 3M QUANTITIES FROM THE HUG PIPELINE TRIMONT/TR.IMONT RECEIPT POINT TO THE HUTCHINSON 3M NORTH AND SOUTH PLANTS LOCATED IN HUTCHINSON, MINNESOTA. HUTCHINSON AGREES TO PROVIDE DAILY SWING SUPPLY TO 3M. AT THE APPLICABLE PRICE, AS.:PUBLISHED FORTHE DAY HY.PLATT'S "GAS DAILY" IN ITS "DAILY PRICE SURVEY ($/DTH)" FOR "NORTHERN, VENTURA." "MIDPOINT" ("DAILY INDEX") PLUS/MINUS $0..0 1. SWING SUPPLY IS DEFINED: AS SUPPLY INCREASES .OR DECREASES, FROM CONTRACTEDLEVELS, NOMINATED. AT LEAST 24 HOURS. PRIOR TO THE START OF THE GAS DAY. 4. HUTCHINSON SHALL. PROVIDE. 3M WITH REAL-TIME BALANCING, BASED .ON THE FOLLOWING: REST EFFORTS REALTIME .SWING NOMINATED LESS THAN 24. HOURS: PRIOR TO THE END OF THE GAS DAY ON.A BEST EF'FO.RTS .BASIS, PRICED AT THE APPLICABLE PRICE, A.S. PUBLISHED FOR THE DAY BY PL:ATT'S "GAS. DAILY" IN ITS "DAILY .PRICE SURVEY ($/DTH)" FOR "NORTHERN, VENTURA" "MIDPOINT" ("DAILY INDEX'.'), PL.US/MINUS $0.1 S. 5. 3M SHALL PROVIDE To_HUC, BY_THE END QF THE'[ 5TH DAY OF THE. MONTH PRIOR TO GAS..FLOW,.THE BASE LOAD LEVEL OF NATURAL. GAS REQUIRED FOR THE FOLLOWING MONTH. IN THE .EVENT H:.IC HAS NOT RECEIVED. THE BASE LOAD NOMINATION FROM 3M BY 'ri4E END OF THE T 5`-H DAY OF THE MONTH PRIOR TO THE GAS FLOW HUG. SHALL NOMINATE THE CURRENT MONTH'S BASE LOAD LEVEL FOR THE FOLLOWING MONTH 6. DURING THE TERM OF THIS AGREEMENT, HUC SHALL NO'T" BE LIABLE FOR. STOPPAGE OF FLOW ON THE PIPELINE, NORTHERN BORDER PIPELINE COMPANY EQUIPMENT FAILURE, OR ANY 'OTHER FORCE MAJEURE WHICH AFFECTS. THE FLOW OF GAS TO THE HUC BORDER STATIONS, OR. ANY ACT OF GOD WHICH INTERRUPTS FLOW OF GAS ON THE PIPELINE. 7. PAYMENT [S DUE FROM WON OR BEFORE THE TENTH DAY FOLLOWING THE DATE THE BILL IS ISSUED BY HUC. S: THE INITIAL, TERM FOR SERVICE UNDER THIS AGREEMENT IS ONE (1 ) YEAR. 3M MUST NOTIFY HUC .IN WRIT] NG.THREE.(3) MONTHS PRIOR TO THE EXP[RATION OF THE TERM IF 3M DESIRES TO CONTINUE SERVICE UNDER THIS.AGREEMENT. IF 3M HAS COMPLIED WITHALL TERMS OF THIS AGREEMENT., AND HAS NO OUTSTANDING ARREARAGES,:3.1A. MAY, UPON WRITTEN NOTICE PROVIDED TO HUC THREE (3) MONTHS PRIOR TO THE EXPIRATION OF THE CURRENT TERM,. EXTEND THIS AGREEMENT FORA 1VIUTUALLYAGREED-UPON PERIOD. IF A TERM .FOR THE EXTENSION CANNOT BE AGREED UPON BY 3M AND HUTCHINSON, THE PARTIES AGREE TO.A MINIMUM TERM. OF (1) YEAR. IF SUCH TIMELY NOTICE IS NOT PROVIDED BY 3M, H.UC IS NOT OBLIGATED TO RENEW SERVICE FOR 3M. REPRESENTATIVES OF HUG AND 3M SHALL_ MEET APPROXIMATELY (2). MONTHS .PRIOR. TO THE EXPIRATION DATE OF THE INITIAL TERM OF THIS AGREEMENT TO DISCUSS 5UTURE.OPERATIONS. THIS. AGREEMENT SETS I~ORTH ALL TERMS AGREED UPON BETWE THE PARTIES, AND NO.PRIOR ORAL OR WRITTEN AGREEMENTS: SHALL BE BINDING. THIS. AGREEMENT SHALL NOT BE ALTERED, AMENDED. OR.MODIr)ED EXCEPT AS IN WRI.TING-AND EXECUTED BY BOTH PARTIES. HUTCHINSON UTILITIES COMMISSION NAME:. TITLE: COMMISSION PRESIDENT DATE: BY: NAME: TITLE: SECRETARY DATE. MINNESOTA MINING & MANUFACTURING BY: TAME: TITLE: ali ll•. IS P i. DATE: HUTCHINSON UTILITIES COMMISSION Board Action Form r�turit mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Approve Requisition #9482 2023 Chevrolet Silverado 1500 Presenter: Jared Martig Agenda Item Type: Time Requested (Minutes):; 2 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: HUC will be replacing a 2013 Chevrolet Silverado 1500 with a 2023 Chevrolet Silverado 1500 due to an automobile accident. This vehicle was scheduled to be replaced in 2024 as part of the fleet management program so it was not in the 2023 budget. HUC received insurance proceeds of $22,000 on the 2013 Silverado. HUC received the following three quotes that include all taxes and fees: 1) Schwieters Cold Spring $44,118.85 2) Davis Motors Litchfield $44,655.38 3) Schwieters Willmar $45,554.48 We are recommending the lowest cost dealer in option #1 at Schwieters in Cold Spring for $44,118.85 which includes sales tax and all plate fees. BOARD ACTION REQUESTED: Approve Requisition #9482 Fiscal Impact: $22,118.85 Included in current budget:No Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: HUTCHINSON UTILITIES ra,�itiaa° oni'initIIIEwasrioI'll Note PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 SCHWIETERS CHEVROLET COLD SPRINGS 1050 EAST HIGHWAY 23 COLD SPRING, MN 56320 Description: 2023 CHEVY 1500 PICKUP Date Requisition No. 03/23/2023 009482 Required by: Requested by: jsturges Item No. part No. Description Qty Unit Due Date Unit Price Ext. Amount 2023 CHEVY 1500 VIN# 3GCPDBEK6PG170541 MFG. 1 PART: VIN # 3GCPDBEK6PG170541 1.00 EA 03/30/2023 $44,118.85 $44,118.85 Total: 44,118.85 Date Printed: 03/23/2023 Requisitioned By: jsturges Page: 1/1 auoydi Aw w04 }uas ®av1s I Motors YOU ti41L... _....... R fA Y DEA E „S!„tiC,E,mm„t995 Nome of the Lifetime Warranty Date/Time: Mar 22, 2023 11:01 AM Buyer Jason Sturges Phone: C:3205839320 Address: 225 MICHIGAN ST SE Hutchinson, MN 55350 2023 GMC Sierra 1500, Body Type:Crew Cab Pickup 8lo9 Color.Summit White, 1 Miles VIN:3GTPUAEK7PG229512 Cash Balance Due $ Down $0 $44,635 X Customer Signature Date X Manager Signature Date Salesperson: Joe Kummet Discount 441,775.00 Selling Price $41,775.00 Trade Difference $41,775.00 Proc/Doc Fees $125.00 Subtotal (Selling Price + ' $41,900.00 Total Taxes $2,735.38 Total Balance Due $44,635.38 Lem OAC Company: Hutchinson Utilities Commission Email: Jsturges@hutchinsommn,gov Primary Contact: Jason Sturges Sales Manager: Sales Person: Andrew Trongaard DMS Number: Finance Ter.!. Interest rate $ 0.00 Cash Down 5 a: 48 mo. 60 mo. 72 mo 3.9` '; ,w 3.99%APR 3.99%'APR 4.5%APR 1,3=A7-1,35/ $1,030-1,040 $840-850 $724-734 no New. 2023 Chevrolet Sliverado 1500 4WD Crew Cab 157" Custom Stock: W23157 VIN: 3GCPDBEK2PG183741 Odometer. 3 Color Summit White / Black Engine: 4 Cylinder Engine Transmission: 8-Speed Automatic MPG: 18 city / 21 hwy FINANCE DETAILS Retail Price $,50,315,00 Discount: ($ 4,000 GQ) Rebates and incentives ($ 3,7%00) NET.SELLING PRICE $ 42,665.00 TOTAL FEES $ 222.75 TOTAL TAXES $ 2,766.73 SALES SUB TOTAL $:45,554.48 TOTAL AMOUNT DUE $ 45,554 48 Y YOU RE'SAVING $7 750.00 saoo� op ot�n�sRP $17SOAG oft with Rebates/tnceohires -. x x Customer Signature Sales. Signature Prepafrd =. Generated by DealerSoeket 03%22/Z023 15:54:43