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HomeMy WebLinkAbout6-24-2026 HUCCPHUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING June 24, 2026 3:00 p.m. 1. CONFLICT OF INTEREST 2. APPROVE CONSENT AGENDA a. Approve Minutes b. Ratify Payment of Bills 3. APPROVE FINANCIAL STATEMENTS 4. OPEN FORUM 5. COMMUNICATION a. City Administrator b. Divisions C. Human Resources d. Legal e. General Manager 6. POLICIES a. Review Policies i. Section 6 of Exempt Handbook ii. Section 6 of Non -Exempt Handbook b. Approve Changes 7. UNFINISHED BUSINESS 8. NEW BUSINESS a. Approve Rescheduling the July 29, 2026, Regular Commission Meeting to Wednesday, July 22, 2026 9. ADJOURN MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, May 27, 2026 Call to order — 3:00 p.m. President Don Martinez called the meeting to order. Members present: President Don Martinez; Secretary Matt Cheney; Vice President Tom Lambert; Commissioner Kathy Silvernale; GM Jeremy Carter; Attorney Marc Sebora Others Present: Mayer Gary Forcier, City Council Member Pat May Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Lambert, second by Commissioner Cheney to Approve the Consent Agenda. Motion carried unanimously. 3. Approve Financial Statements Mr. Martig presented the Financial Statements. Electric Division Net Profit decreased by $198K over April 2025. Customer revenue and usage increased but total revenues were still down due to less generation sales. Transmission costs are higher and will continue to be all year. Natural Gas Division Net Income increased by $18k. Usage and revenues increased compared to April 2025. Increased revenue was offset by higher purchased gas and employee costs. Operating expenses were also higher due to backhoe repairs and sandblasting and painting stations. GM Carter highlighted the electric usage which is trending above relative to last year. GM Carter touched on the impact of the cold winter snap earlier in the year. Cost of Service Study update was provided. Balance sheet was also reviewed. Motion by Commissioner Cheney, second by Commissioner Silvernale to Approve the Financial Statements. Motion carried unanimously. 4. Open Forum Jeremy Lee, spoke of quality of life, cooling system and noise concerns. Jeremy stated it is important to ask questions, listen carefully and think long term. Brittany Eckstein, raised concerns of water health and the expansion of data centers in the community. Jeremy Lee asked if he could provide his questions in email form and get responses. GM Carter welcomed the questions and has also been responding to other residents' emails as he receives them. GM Carter stated that HUC has a vested interest in this community as well. GM Carter provided an update on the Data Center being an air-cooled system and not a glycol system. General discussion was also held about communication to the public President Martinez stated that once a construction plan has been put in place there are approvals that have to be made, followed and monitored, which also includes relying on the State and EPA to do their process as well. President Martinez and GM Carter also addressed the question of future scale and growth to what has been approved now. GM Carter discussed the infrastructure requirements and capacity for the community, and the local region and that proper review, coordination and planning has been done to ensure no capacity or transmission concerns would exist. In addition, this region has limited transmission capacity that would limit the size of data center growth. In addition, GM Carter discussed the characteristics of the new rate class. General discussion was held on other data centers and how it compares to the Data Center coming to Hutchinson. President Martinez thanked the people at the open forum for coming and discussing their concerns and asking questions. General discussion was also held on the use of fans and now possibly noise and air pollution. It was noted that all individuals can contact GM Carter with additional questions. 5. Communication a. City Administrator— Matthew Jaunich — i. Construction season - Edmonton project could be completed by middle of June. ii. Provided update on demolition of Jurgenson Hotel b. Divisions i. Dan Lang, Engineering Services Manager — 1. Working on Plant 1 Transformer Agreement ii. Dave Hunstad, Electric Transmission/Distribution Manager - Absent iii. Mike Gabrielson, Production Manager 1. GE was on site 2 weeks ago to remove Unit 1 iv. Byron Bettenhausen, Natural Gas Manager - 1. Construction season 2. Interviews this week for open Welder/Service position 3. Just completed MNOPS 2025 Audit which went well. Thanked the Commission for supporting Staff on tasks that needed to be completed throughout the year. 2 4. CIS Survey on the next 20 miles of the transmission pipeline is starting today in St James v. Jared Martig, Financial Manager — Nothing to Report c. Human Resources — Angie Radke - i. Continuing to work on the Welder/Service Person open position ii. Continuing to work on Compensation Study d. Legal — Marc Sebora — i. Nothing to report e. General Manager — Jeremy Carter i. Finishing up contracts in the Natural Gas department. ii. MRES will be out next week for annual survey iii. Webinars coming up regarding Prepay 6. Policies a. Review Policies i. Section 5 of Exempt Handbook ii. Section 5 of Non -Exempt Handbook No changes recommended at this time. 7. Unfinished Business 8. New Business a. Approve Natural Gas Custody Transfer Agreement with 3M Mr. Bettenhausen presented Approval of Natural Gas Custody Transfer Agreement with 3M. HUC needs to put in place a Custody Transfer Agreement with 3M to delineate the custody transfer point of infrastructure by each party located at each meter set. The agreement ensures both parties acknowledge the responsibilities set forth for the ownership, maintenance, measuring and monitoring of the natural gas facilities. Motion by Commissioner Silvernale, second by Commissioner Cheney to Approve Natural Gas Custody Transfer Agreement with 3M. Motion carried unanimously. b. Approve Natural Gas Maintenance Agreement with City of Fairfax Mr. Bettenhausen presented Approval of Natural Gas Maintenance Agreement with the City of Fairfax. The maintenance agreement with the City of Fairfax has been updated to reflect the new contract terms as well as provide revisions to the routine work performed by HUC. 3 Motion by Commissioner Cheney, second by Commissioner Lambert to Approve Natural Gas Maintenance Agreement with City of Fairfax. Motion carried unanimously. c. Approve Amendment #2 to the Heartland Corn Reservation Agreement GM Carter presented Approval of Amendment #2 to the Heartland Corn Reservation Agreement. GM Carter reviewed the Firm Capacity Reservation Agreement that was entered into on December 20, 2023, along with the first amendment. At this time, Heartland Corn is requesting to convert an additional 1000 Dth's/day from the reservation agreement to the firm transportation agreement. Motion by Commissioner Silvernale, second by Commissioner Cheney to Approve Amendment #2 to the Heartland Corn Reservation Agreement. Motion carried unanimously. d. Approve Amendment #2 to the Heartland Corn Firm Transportation Agreement President Martinez stated this is the 2nd part of the Heartland Corn Agreements which is converting an additional 1000 Dth's/day from the Reservation Agreement to the Firm Transportation Agreement. Motion by Commissioner Cheney, second by Commissioner Lambert to Approve Amendment #2 to the Heartland Corn Firm Transportation Agreement. Motion carried unanimously. 9. Adjourn There being no further business, a motion by Commissioner Lambert, second by Commissioner Cheney to adjourn the meeting at 3:37p.m. Motion carried unanimously. 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H 'i J-) U Qa a) H a H S: W Cu rl H Q Q W O H a) W r1 H J-) a CD ro Q x w H H H x � x a) H O N a u O a a u H U H �D H z a x m FT� O a w Q w FX z w Q w - co a Q H W W �Dx z 0 0 m co W H W H H Q u H N N � W a H cn u x a w n z Q x Q w a w w rah H w H 3 3 z O O a Q N o W W W W N ro zH- N N co co Q Q U u7 l.0 M u} OD 0) 0) 0) 61 O O O O O U U U W oo oo oo oo oo oo oo oo .� x x U U co co .. � � W C7 W C7 W C7 W C7 W C7 W C7 W C7 W C7 W C7 W W E1 E1 H Z:7) O FC FC H -ri Ul J-) U) U U H H l0 i-1 rl N , l) a' C7 l0 N l0 N l0 N l0 N l0 N l0 N l0 N l0 N l0 N Q Q Z Z O,' U u N f7 -P Q N O N O N O N O N O N O N O N O N O N H H h •• ,T, H S-I '� O H O H O H O H O H O H O H O H O H l0 Ul U l0 l0 l0 l0 l0 l0 l0 l0 l0 O ,7 Q Fi4 O O O O O O O O O HUTCHINSON UTILITIES COMMISSION COMBINED DIVISIONS FINANCIAL REPORT FOR MAY, 2026 Combined Division Customer Revenue Sales for Resale NG Transportation Electric Division Transfer Other Revenues Interest Income TOTAL REVENUES Salaries & Benefits Purchased Commodities Transmission Generator Fuel/Chem. Depreciation Transfers (Elect./City) Operating Expense Debt Interest TOTAL EXPENSES NET PROFIT/(LOSS) 41.6% of Year Comp. 2026 2025 Di %Chna 2026 2025 Di %Chna Full Yr Bud %of Bud $ 2,816,348 $ 2,633,852 $ 182,496 $ 297,679 $ 316,300 $ (18,621) $ 176,882 $ 171,693 $ 5,190 $ 60,667 $ 60,639 $ 28 $ 63,692 $ 41,495 $ 22,197 $ 23,803 $ 36,541 $ (12,738) $ 3,439,071 $ 3,260,519 $ 178,552 6.9% $ 17,893,002 $ 15,761,954 $ 2,131,047 13.5% $ 40,209,447 44.5% (5.9%) $ 1,730,538 $ 1,931,673 $ (201,134) (10.4%) $ 4,339,200 39.9% 3.0% $ 851,581 $ 857,365 $ (5,784) (0.7%) $ 2,037,588 41.8% 0.0% $ 303,333 $ 303,194 $ 139 0.0% $ 728,000 41.7% 53.5% $ 309,766 $ 229,443 $ 80,323 35.0% $ 573,955 54.0% (34.9%) $ 201,689 $ 305,103 $ (103,414) (33.9%) $ 583,457 34.6% 5.5% $ 21,289,909 $ 19,388,732 $ 1,901,178 9.8% $ 48,471,647 43.9% $ 660,655 $ 638,414 $ 22,242 3.48% $ 3,432,342 $ 3,193,861 $ 238,481 7.5% $ 8,524,717 40.3% $ 1,394,416 $ 1,298,725 $ 95,690 7.4% $ 10,461,014 $ 8,891,002 $ 1,570,012 17.7% $ 20,816,157 50.3% $ 398,087 $ 275,858 $ 122,229 44.3% $ 1,560,867 $ 1,032,916 $ 527,951 51.1% $ 4,200,000 37.2% $ 44,727 $ 64,672 $ (19,945) (30.8%) $ 362,049 $ 417,049 $ (55,000) (13.2%) $ 2,008,656 18.0% $ 353,650 $ 354,552 $ (902) (0.3%) $ 1,768,542 $ 1,764,720 $ 3,822 0.2% $ 4,190,000 42.2% $ 222,552 $ 222,524 $ 28 0.0% $ 1,112,761 $ 1,112,622 $ 139 0.0% $ 2,670,626 41.7% $ 292,205 $ 260,167 $ 32,038 12.3% $ 1,503,418 $ 1,433,968 $ 69,450 4.8% $ 3,791,274 39.7% $ 38,805 $ 49,688 $ (10,883) (21.9%) $ 194,023 $ 248,440 $ (54,417) 21.9% $ 465,657 41.7% $ 3,405,096 $ 3,164,601 $ 240,495 7.6% $ 20,395,016 $ 18,094,577 $ 2,300,439 12.7% $ 46,667,087 43.7% $ 33,974 $ 95,918 $ (61,944) (64.6%) $ 894,893 $ 1,294,155 $ (399,261) (30.9%) $ 1,804,560 49.6% May May i, YTD YTD 2026 2025 Change 2026 2025 Change Gross Margin %: 32.2% 36.0% -3.8% 29.7% 34.4% -4.7% Operating Income Per Revenue $ (%): 0.1% 2.7% -2.6% 3.1% 5.8% -2.7% Net Income Per Revenue $ (%): 1.0% 2.9% -2.0% 4.2% 6.7% -2.5% 2026 HUC Budget Target 32.2% 2.8%N 3.7%N uuIIUuIINNI HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR MAY, 2026 2026 2025 Di . %Chna 2026 2025 Di %Chna FullYrBud %of Bud Electric Division Customer Revenue $ 2,054,026 $ 1,983,168 $ 70,859 3.6% $ 10,499,660 $ 9,623,444 $ 876,215 9.1% $ 27,471,918 38.2% Sales for Resale $ 297,679 $ 316,300 $ (18,621) (5.9%) $ 1,730,538 $ 1,931,673 $ (201,134) (10.4%) $ 4,339,200 39.9% Other Revenues $ 17,097 $ 16,475 $ 622 3.8% $ 148,157 $ 96,788 $ 51,369 53.1% $ 202,862 73.0% Interest Income $ 13,295 $ 19,665 $ (6,369) (32.4%) $ 107,815 $ 159,522 $ (51,707) (32.4%) $ 308,457 35.0% TOTAL REVENUES $ 2,382,097 $ 2,335,607 $ 46,490 2.0% $ 12,486,170 $ 11,811,426 $ 674,743 5.7% $ 32,322,437 38.6% Salaries & Benefits $ 471,532 $ 470,525 $ 1,007 Purchased Power $ 987,969 $ 915,946 $ 72,023 Transmission $ 398,087 $ 275,858 $ 122,229 Generator Fuel/Chem. $ 44,727 $ 64,672 $ (19,945) Depreciation $ 254,443 $ 256,545 $ (2,103) Transfers (Elect./City) $ 172,817 $ 172,789 $ 28 Operating Expense $ 229,457 $ 165,087 $ 64,370 Debt Interest $ 30,138 $ 32,771 $ (2,633) TOTAL EXPENSES $ 2,589,169 $ 2,354,194 $ 234,975 NET PROFIT/(LOSS) $ (207,071) $ (18,587) $ (188,484) Electric Division 0.2% $ 2,495,473 $ 2,414,952 $ 80,521 3.3% $ 6,178,442 7.9% $ 5,422,335 $ 4,877,773 $ 544,562 11.2% $ 13,035,315 44.3% $ 1,560,867 $ 1,032,916 $ 527,951 51.1% $ 4,200,000 (30.8%) $ 362,049 $ 417,049 $ (55,000) (13.2%) $ 2,008,656 (0.8%) $ 1,272,507 $ 1,275,205 $ (2,698) (0.2%) $ 3,060,000 0.0% $ 864,084 $ 863,945 $ 139 0.0% $ 2,073,802 39.0% $ 1,019,649 $ 926,737 $ 92,912 10.0% $ 2,553,967 (8.0%) $ 150,690 $ 163,857 $ (13,167) jLgL $ 361,657 $ 33,471,839 10.0% $ 13,147,653 $ 11,972,434 $ 1,175,219 9.8% ,014.1% $ (661,484) $ (161,008) $ (500,476) 310.8% $ (1,149,402 40.4% 41.6% 37.2% 18.0% 41.6% 41.7% 39.9% 41.7% 39.3% 57.6% 2026 2025 Di . %Chna 2026 2025 Di %Chna FullYrBud %of Bud Residential 4,065,468 4,017,225 48,243 1.20% 20,365,017 20,383,624 (18,607) (0.09%) 54,016,284 37.7% All Electric 128,545 121,278 7,267 5.99% 1,171,742 1,212,794 (41,052) (3.38%) 2,281,979 51.3% Small General 1,351,701 1,360,833 (9,132) (0.67%) 6,983,282 7,241,747 (258,465) (3.57%) 17,753,235 39.3% Large General 8,624,530 7,901,110 723,420 9.16% 38,697,850 34,018,840 4,679,010 13.75% 92,221,607 42.0% Industrial 7,950,000 8,518,000 (568,000) (6.67%) 38,689,000 40,838,000 (2,149,000) (5.26%) 97,880,814 39.5% Total KWH Sold 22,120,244 21,918,446 201,798 0.92% 105,906,891 103,695,005 2,211,886 2.13% 264,153,919 40.1% May May YTD YTD 2026 HUC 2026 2025 Change 2026 2025 Change Budget Target Gross Margin %: 21.3% 29.9% -8.6% 22.8% 28.9% -6.1% 24.7% 24%-28% Operating Income Per Revenue $ (%): -8.1% -0.3% -7.8% -5.8% -1.6% -4.2% -3.6% IIIIIIIIIIIIIIIII Net Income Per Revenue $ (%): -8.7% -0.8% -7.9% -5.3% -1.4% -3.9% -3.6% IIIIIIIIIIIIIIIII Customer Revenue per KWH: $0.0929 $0.0905 $0.0024 $0.0991 $0.0928 $0.0063 $0.1040 $0.1040 Total Power Supply Exp. per KWH: $0.0842 $0.0740 $0.0102 $0.0896 $0.0797 $0.0098 $0.0911 Net Loss increased by $188,484 over May 2025. Customer revenue and usage was up but offset by the continued increase in transmission as well as purchased power. Operating expenses were highter due to parts pulled out of inventory for Units 6 and 7. Sales for Resale of $297,679 consisted of $66,679 in market sales, $98,000 in capacity sales to Rice Lake, $70,000 in capacity sales to AEP, and $63,000 in capacity sales to Nextera. May 2025 Sales for Resale of $316,300 included $72,050 in market sales, $98,000 in capacity sales to Rice Lake and $146,250 in capacity sales to AEP. May 2024 Sales for Resale of $272,903 consisted of $1,780 in market sales, $98,000 in capacity sales to Rice Lake and $146,250 in capacity sales to AEP. Overall Purchased Power increased by $72,023. MRES purchases increased by $39,098 and market purchases/MISO costs increased by $32,925. The average cost of MISO power was $21.53/mwh (2,976 mwh's purchased), compared to $32.00/mwh (2,206 mwh's purchased) in May 2025. May 2026 PCA was zero leaving the YTD total at $668,534. The 5 month average PCA is $.006219 There was no PCA for April 2025 leaving the total collected at $151,798 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 MAY, 2026 41.6% of Year Comp. 2026 2025 2 %Chna 2026 2025 2 . %Chna Full YrBud %of Bud $ 762,322 $ 650,685 $ 111,637 17.2% $ 7,393,342 $ 6,138,510 $ 1,254,832 20.4% $ 12,737,529 58.0% $ 176,882 $ 171,693 $ 5,190 3.0% $ 851,581 $ 857,365 $ (5,784) (0.7%) $ 2,037,588 41.8% $ 60,667 $ 60,639 $ 28 0.0% $ 303,333 $ 303,194 $ 139 0.0% $ 728,000 41.7% $ 46,595 $ 25,020 $ 21,575 86.2% $ 161,609 $ 132,655 $ 28,954 21.8% $ 371,093 43.5% $ 10,507 $ 16,877 $ (6,369) (37.7%) $ 93,874 $ 145,581 $ (51,707) (35.5%) $ 275,000 34.1% $ 1,056,973 $ 924,912 $ 132,061 14.3% $ 8,803,740 $ 7,577,305 $ 1,226,435 16.2% $ 16,149,210 54.5% $ 189,124 $ 167,889 $ 21,235 12.6% $ 936,869 $ 778,909 $ 157,961 20.3% $ 2,346,275 39.9% $ 406,447 $ 382,779 $ 23,667 6.2% $ 5,038,680 $ 4,013,229 $ 1,025,451 25.6% $ 7,780,842 64.8% $ 62,748 $ 95,080 $ (32,332) (34.0%) $ 483,769 $ 507,231 $ (23,462) (4.6%) $ 1,237,307 39.1% $ 99,207 $ 98,007 $ 1,200 1.2% $ 496,035 $ 489,515 $ 6,520 1.3% $ 1,130,000 43.9% $ 49,735 $ 49,735 $ - 0.0% $ 248,677 $ 248,677 $ 0 0.0% $ 596,824 41.7% $ 8,667 $ 16,917 $ (8,250) 0.0% $ 43,333 $ 84,583 $ (41,250) 48.8% $ 104,000 41.7% $ 815,928 $ 810,407 $ 5,520 0.7% $ 7,247,363 $ 6,122,143 $ 1,125,220 18.4% $ 13,195,248 54.9% $ 241,046 $ 114,505 $ 126,541 110.5%1 1,556,377 $ 1,455,162 $ 101,215 7.0% $ 2,953,962 52.7% I�i�(( (f���������������������� Ii �i I ����������� �ll�i��fri f�(���iii��������������� 41.6% of Year Comp. 2026 2025 2 . %Chnq 2026 2025 p %Chnq Full YrBud %of Bud Gas Division Residential 15,300,576 13,891,946 1,408,630 10.14% 242,602,549 252,622,461 (10,019,912) (3.97%) 410,283,000 59.1% Commercial 13,688,376 12,179,973 1,508,403 12.38% 177,106,838 181,665,532 (4,558,694) (2.51%) 317,957,000 55.7% Industrial 55,879,858 53,176,734 2,703,124 5.08% 393,937,426 402,514,253 (8,576,827) (2.13%) 820,578,000 48.0% Total CF Sold 84,868,810 79,248,653 5,620,157 7.09%1 813,646,813 836,802,246 (23,155,433) (2.77%)l 1,548,818,000 52.5% May May YTD YTD 2026 HUC 2026 2025 Change 2026 2025 Change Budget Target Gross Margin %: 58.0% 51.8% 6.2% 39.6% 43.2% -3.6% 47.7% Operating Income Per Revenue $ (%): 19.6% 10.6% 9.0% 15.9% 17.6% -1.6% 15.9% Net Income Per Revenue $ (%): 22.8% 12.4% 10.4% 17.7% 19.2% -1.5% 18.3% Contracted Customer Rev. per CF: $0.0065 $0.0067 -$0.0001 $0.0076 $0.0067 $0.0009 $0.0069 Customer Revenue per CF: $0.0130 $0.0108 $0.0022 $0.0104 $0.0079 $0.0025 $0.0095 Total N.G. Supply Exp. per CF: $0.0050 $0.0054 ($0.0004) $0.0064 $0.0050 $0.0014 $0.0053 Notes/Graphs: May Net Income increased by $126,541. Usage and revenues increased compared to May 2025. The increased revenue was offset some by higher purchased gas and employee costs. Operating expenses were lower due to some transmission contractor expenses in 2025. Fuel Cost Adjustment for May 2026 was $.00075/MCF bringing in an additional $24,797 for the month and $556,747 YTD. May 2025 Fuel Cost "Credit" Adjustment was $1.307/MCF crediting customers $37,671 for the month and $494,864 YTD. HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED MAY31, 2026 Electric Gas Total Total Net Change Division Division 2026 2025 Total (YTD) Current Assets UnrestrictedlUndesignated Cash Cash (9,407,047.89) 16,315,771.90 6,908,724.01 12,905,946.46 (5,997,222.45) Petty Cash 680.00 170.00 850.00 850.00 - Designated Cash Capital Expenditures - Five Yr. CIP 2,750,000.00 700,000.00 3,450,000.00 3,450,000.00 - Payment in Lieu of Taxes 1,345,802.00 596,824.00 1,942,626.00 1,942,626.00 - Rate Stabilization - Electric 1,301,838.58 - 1,301,838.58 840,953.15 460,885.43 Rate Stabilization - Gas - 384,548.82 384,548.82 615,294.19 (230,745.37) Catastrophic Funds 800,000.00 200,000.00 1,000,000.00 1,000,000.00 - Restticted Cash Bond & Interest Payment 2017 538,828.16 - 538,828.16 395,399.99 143,428.17 Bond & Interest Payment 2012 - 910,000.00 910,000.00 989,999.98 (79,999.98) Debt Service Reserve Funds 1,175,000.00 2,072,000.00 3,247,000.00 3,255,256.00 (8,256.00) Total Current Assets (1,494,899.15) 21,179,314.72 19,684,415.57 25,396,325.77 (5,711,910.20) Receivables Accounts (net of uncollectible allowances) 2,181,043.01 726,603.86 2,907,646.87 2,532,185.14 375,461.73 Interest 49,785.32 49,785.33 99,570.65 148,628.57 (49,057.92) Total Receivables 2,230,828.33 776,389.19 3,007,217.52 2,680,813.71 326,403.81 Other Assets Inventory 2,297,365.63 518,354.61 2,815,720.24 2,609,235.50 206,484.74 Prepaid Expenses 170,501.11 55,999.93 226,501.04 364,366.21 (137,865.17) Sales Tax Receivable 139,617.69 - 139,617.69 412,462.58 (272,844.89) Deferred Outflows- Electric 371,991.00 - 371,991.00 342,759.00 29,232.00 Deferred Outflows - Gas - 123,997.00 123,997.00 114,253.00 9,744.00 Total Other Assets 2,979,475.43 698,351.54 3,677,826.97 3,843,076.29 (165,249.32) Total Current Assets 3,715,404.61 22,654,055.45 26,369,460.06 31,920,215.77 (5,550,755.71) Capital Assets Land & Land Rights 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 - Depreciable Capital Assets 95,283,706.56 45,149,321.56 140,433,028.12 139,519,995.36 913,032.76 Accumulated Depreciation (52,328,756.63) (23,877,431.46) (76,206,188.09) (72,247,899.62) (3,958,288.47) Construction - Work in Progress 11,208,035.80 51,320.98 11,259,356.78 2,889,925.84 8,369,430.94 Total Net Capital Assets 54,853,354.13 25,223,129.68 80,076,483.81 74,752,308.58 5,324,175.23 Total Assets 58,568,758.74 47,877,185.13 106,445,943.87 106,672,524.35 (226,580.48) 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 MAY31, 2026 Electric Gas Total Division Division 2026 820,000.00 19, 546.00 2,627,587.59 133,871.10 3,601,004.69 10,930,000.00 384,755.04 1, 585, 328.00 42,211.00 635,863.89 224,153.38 1,087,158.00 14,889,469.31 2,080,000.00 185,608.32 798,854.15 46,455.79 3,110,918.26 (92, 804.53) 528,443.00 14,071.00 224,492.28 44,404.41 362,386.00 1,080,992.16 2,900,000.00 185,608.32 19, 546.00 3,426,441.74 180,326.89 6,711,922.95 10,930,000.00 291,950.51 1, 585, 328.00 42,211.00 528,443.00 14,071.00 860,356.17 268,557.79 1,087,158.00 362,386.00 15,970,461.47 Total Net Change 2025 Total (YTD) 2, 770, 000.00 130, 000.00 185,608.32 - - 19,546.00 3,329,976.63 96,465.11 172,800.52 7,526.37 6,458,385.47 253,537.48 11,750,000.00 (820,000.00) 2,080,000.00 (2,080,000.00) 511,015.79 (219,065.28) 1,832,248.00 (246,920.00) 39,880.00 2,331.00 610,749.00 (82,306.00) 13,293.00 778.00 739,330.02 121,026.15 245,721.73 22,836.06 1,294,449.00 (207,291.00) 431,483.00 (69,097.00) 19,548,169.54 (3,577,708.07) 40,078,284.74 43,685,274.71 83,763,559.45 80,665,969.34 3,097,590.11 40,078,284.74 43,685,274.71 83,763,559.45 80,665,969.34 3,097,590.11 Total Liabilities and Net Position 58,568,758.74 47,877,185.13 106,445,943.87 106,672,524.35 (226,580.48) Hutchinson Utilities Commission Cash -Designations Report, Combined 5/31/2026 Financial Institution Current Interest Rate Annual Interest Balance, May 2026 Balance, April 2026 Change in Cash/Reserve Position Savings, Checking, Investments varies varies varies 19,684,415.57 19,485,356.52 199,059.05 Total Operating Funds 19,684,415.57 19,485,356.52 199,059.05 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 2026 Operating Bud. Charter (Formula Only) Risk Mitigation Amount 5 Year CIP (2026-2030 Fleet & Infrastructure Maintenance) 1,448,828.16 1,402,356.80 46,471.36 3,247,000.00 3,247,000.00 - 4,695,828.16 4,649,356.80 46,471.36 7,079,514.50 7,079,514.50 - 1,686,387.40 1,658,654.76 27,732.64 1,942,626.00 1,942,626.00 - 1, 000, 000.00 1, 000, 000.00 3,450,000.00 3,450,000.00 - 15,158,527.90 15,130,795.26 27,732.64 YE YE YE YE YTD HUC 2022 2023 2024 2025 2026 Target Debt to Asset 31.4% 28.6% 26.0% 22.3% 21.3% Current Ratio 4.47 4.48 3.67 3.10 3.16 RONA -1.38% 1.96% 2.63% 3.23% 0.95% Historical Change in Cash Balance Month End Electric Elec. Change Natural Gas Gas Change Total Total Change 5/31/2026 (1,494,899) 21,179,315 19,684,416 12/31/2025 (416,323) (1,078,576) 18,975,091 2,204,224 18,558,768 1,125,648 12/31/2024 6,134,710 (6,551,033) 17,717,453 1,257,638 23,852,164 (5,293,396) 12/31/2023 12,158,338 (6,023,628) 15,622,242 2,095,211 27,780,580 (3,928,416) 12/31/2022 11,633,212 525,126 15,450,554 171,688 27,083,766 696,815 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 5/31/2026 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest May 2026 April 2026 Position �' Rr Savings, Checking, Investments varies varies varies 19,684,415.57 19,485,356.52 199,059.05 Total HUC Operating Funds 19,684,415.57 19,485,356.52 199,059.05 Debt Restricted Requirements Debt Restricted Requirements Total Restricted Funds Bond Covenants - sinking fund Bond Covenants -1 year Max. P & 1 538,828.16 1,175,000.00 1,713,828.16 492,356.80 1,175,000.00 1,667,356.80 46,471.36 - 46,471.36 Excess Reserves Less Restrictions, Electric 0: i 11J! !!1 1 !1 J J Operating Reserve Min 60 days of 2026 Operating Bud. 5,068,639.83 5,068,639.83 Rate Stabalization Funds $400K-$1.2K 1,301,838.58 1,301,838.58 PILOT Funds Charter (Formula Only) 1,345,802.00 1,345,802.00 Catastrophic Funds Risk Mitigation Amount 800,000.00 800,000.00 Capital Reserves 5 Year CIP (2026-2030 Fleet & Infrastructure Maintenance) 2,750,000.00 2,750,000.00 Total Designated Funds 11,266,280.41 11,266,280.41 Excess Reserves Less Restrictions & Designations, Electric 00 :0 YE YE YE YE YTD APPA Ratio HUC 2022 2023 2024 2025 2026 5K-10K Cust. Target Debt to Asset Ratio (* w/Gen.) 34.8% 34.0% 33.9% 31.6% 31.6% 39.8% pp ppppp ryry NNNNNNNNNNNN Current Ratio 4.96 4.35 2.38 0.80 0.45 3.75 >2.0 RONA -4.2% -0.9% -2.1% 0.4% -1.3% NA >0% Hutchinson Utilities Commission Cash -Designations Report, Gas 5/31/2026 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest May 2026 April 2026 Position F�' Rr Savings, Checking, Investments varies varies varies 19,684,415.57 19,485,356.52 199,059.05 Total HUC Operating Funds 19,684,415.57 19,485,356.52 199,059.05 Debt Restricted Requirements Bond Covenants - sinking fund 910,000.00 910,000.00 Debt Restricted Requirements Bond Covenants -1 year Max. P & 1 2,072,000.00 2,072,000.00 Total Restricted Funds 2,982,000.00 2,982,000.00 - Excess Reserves Less Restrictions, Gas 18,197,314.72 17,850,143.68 347,171.04 1 1 JJJ1 111 1 11 J J Operating Reserve Min 60 days of 2026 Operating Bud. 2,010,874.67 2,010,874.67 - Rate Stabalization Funds $200K-$600K 384,548.82 356,816.18 27,732.64 PILOT Funds Charter (Formula Only) 596,824.00 596,824.00 - Catastrophic Funds Risk Mitigation Amount 200,000.00 200,000.00 Capital Reserves 5 Year CIP (2026-2030 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 - Total Designated Funds 3,892,247.49 3,864,514.85 27,732.64 YE YE YE YE YTD HUC 2022 2023 2024 2025 2026 AGA Ratio Target Debt to Asset 26.5% 21.0% 15.5% 10.6% 8.8% 35%-50% Current Ratio 4.06 4.61 5.08 5.18 6.28 1.0-3.0 RONA 3.0% 6.2% 9.1% 7% 3.7% 2%-5% Notes/Graphs: ELECTRIC DIVISION Operating Revenue May 2026 CLASS AMOUNT KWH /KWH Street Lights 20.55 377 $0.0545 Electric Residential Service $479,181.07 4,065,468 $0.1179 All Electric Residential Service $16,001.04 128,545 $0.1245 Electric Small General Service $152,433.36 1,351,701 $0.1128 Electric Large General Service $783,080.42 8,624,530 $0.0908 Electric Large Industrial Service $623,310.00 7,950,000 $0.0784 Total $2,054,026.44 22,120,621 $0.0929 Power Adjustment $0.00000 Rate Without Power Adjustment $0.09286 Electric Division Year -to -Date ® 2026 $ Amount ❑ 2025 $ Amount ® 2026 KWH110 ❑ 2025 KWH110 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Residential All Elec. Resid. Small Gen. Srv. Large Gen. Srv. Large Industrial Sales For Resale Total NOTE: This graph includes sales for resale (capacity and energy sales) but excludes street lights and security lights NATURAL GAS DIVISION Operating Revenue May 2026 CLASS AMOUNT MCF /MCF Residential $219,319.13 15,301 $14.3340 Commercial $165,546.14 13,688 $12.0939 Large Industrial $37,200.37 3,591 $10.3587 Large Industrial Contracts $340,256.36 52,289 $6.5073 Total $762,322.00 84,869 $8.9824 Fuel Adjustment $0.00075 Rate Without Fuel Adjustment $8.98161 Natural Gas Division Year -to -Date ❑ 2026 $ Amount ❑ 2025 $ Amount m 2026 MCF ❑ 2025 MCF 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- 6171 Gas Residential Gas Commercial Large Industrial Large Industrial Total Contracts 2 0 CO y N N N N N O O O E Z a a N- Z Z Z Z Z Z Z Z Z Z Z M Z W W W Q W O O O O 01 c1 o � Obi Obi W � r V m N o v N N Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q O Q r Q Q Q Q O Q Q Q O Q Q O Q Q Q Q O Q O Q Q O Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z �; Z Z Z Z Z �2 Z Z Z �; Z Z �; Z Z Z Z �; Z �; Z Z �; N N Q1 W M N 63 4 NO 01 O V'O V'00000 V'O V �:O�No01010 (O (000(O V I�OONOMMI� V 01 ISO (O O(00 o1�001�0 01 V OM V Imo V'(0000�0NN001N o(O V'N V I� V'(O V:O 01 MN 001N - - N01NN V'M NM�OON000� V I�iOO�Q) V �I� 011�� (q M M N o N I� r V N V' M H O 01 N N o NIA V M (O MOM1�01 I�(OooMN V'I��oN���o vI�I�OI��vNNvV' V" O o o N V' N � 01 (O 01 O N N No(O (O ISO (O o(Oo o(000(Oo 01N 01 V'N o(ONM�1�01 (00 OI�Oo V'o 01NON(O V'(O o' LQ 0IM N01 o 0 (q V-- o (Oo o M HO='�oNOI� (ONN01N NMOONV MNI�I�oiOM V I� M01 0 0 N O M 00 0 0 0 0 0 0 0 0 N O 01 O V' O V' O O O O O V' O V' (O N o c O O V' N O V' O O O O O O O O O O N I� O (O O (O O N I� O O r o 01 V' O M V' I� o o M O M 0 O N I� O 01 N o NNN V' N o N 0 0 N N o 01 O O O O O O O O O O N I� O N O (O o o N M N N I� r N O 01 N o M o o N N I� o N 0101 V' O M cc N o M 0 0 0 0 0 0 0 000 o V'M 01 (O o01 NnNoI�M N01 (ON V'M NNNOoN000N V'I�NO V O V' N 01 I� O O N O O � N 0 0 0 0 0 0 0 0 0 0 N I� O r o s (O N M M o N � I� r V N V' M � 01 O N N o � � V' � O � 01 � M 01 N 01 N O o N O O N O V' V' M V' V' V' N N V'N V' 0101 � I� V M0010 o1�0 ON(O (O��(O N 011�I��M V'011�oI�NNN(OO(ON oo� � o N O � O O O V' (00 QOi Ooi M OOi O W W ON� V' r M W 00 O �0�0�00�0 O(000 QOi (00 ON QoiM OQoiN��O W 00 V' V Or W ON ON (00 00� M � N I� 01 O O � 01 N (O O V' I� 0 01NM M NMN V' O � V'N V'01 o (ONO 0010 (O (O V' V' V'o M(O NI�o OI�ol�OC�'Q)N� V O 1�01 V' I� N O 01 N (001� N M 01 I� M N(OM I� V V'M (O �I�OI�(OONo (001--M-NONM of 01N MONoO11 0 (O (O OMB N (O O � V' N O o o N � N 'I: 01 N 0101 N 01 V' (O I� M � O V' V' M V' V' V' � �M� 01 (01�01 01 I�MNON0I C�'�Q) 01No V OOiO M 01 oI�ONNN(O V'(O�NNI�OON o V" � o M O O O O O O O O O O O O O O O O O O 000000000000000000 000000000000000000000000000000000000000� 6000000000......0.000000000000000000000000000000000000000� OO OOOOOOOOOOOOOOOo 000000000000000000000000000000000000000� O O O O O O O O O O O O O O O O O 00.000 � o Q) M N Q) 0 m M Q) M N Q) N V r O V M V Q) r N O IO 0 0 O Ooi (O (O I� r r r N (O (O (O (O I� N N NNN NN N NNNNNNrrr I�I�I�I�I�I�I�I�NNNNNNNN0101010101010NN M V'o N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N M M M M M M a O O O O O O O O O O O O O O O O O v O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O v N N N N N N N N N N N N N N N N N N Q Q N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N NNN O O Z O O W W N N_ O W I� N N W M N N Z Z N N N N N N N N O M M N � � N O N N N M N N � N �y � 0 0 0 0 0 0 0 0 0 � � 0 0 � 0 0 0 0 0 � 0 0 0 0 � 0 0 0 0 W Q1 N N W � M I� W W N W N NI�� W I� W W NQIONNNNM V NNN W I�Q10MM V:O I� W W OM V:O W ONQI QIN NON � o 0000�0000�00000� 0000�o���0000000000�0000000�0000��oo�o�o V' V' V' V' V' V' M V' o (O (O �(O 00 01 N010 �Q)Q)Q)�Q) 01M 0101��001�0101��010� V' V'010 V' V'o V'o O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N Q Q N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N Z Z W M W W O Q1 Q1 M I� W N M Q1 I� M O Q1 Q1 V' O N Q1 O W W M O M M M M O O N O O O � N � � N , W e N V o W W N W � N oco IOW V WI�WNQII�WMW V �Wc coo�W��W W N � W O W N N N 0 0 0 0 � � 0 0 0 0 � 0 0 0 0 0 0 0000000000000 � 0 0 � 0 0 0 � 0 � � 0 0 0 � 0 � 0 0 0 � coo 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01 (O N N M M V O O o 0 0 0 0 0 0 0 O N o 0 0 0 0 001 01 . 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M (] R W> r V o CND G) N 0) I- O W V LO G _,5 M N CO O W L( ) V co o CO M d) W N V� lo h N 7 C F N J () � N M V LO n m- ry ey C d i N � b , �I N L ut d � O O O o O o O O O O O O o o O O o o O O O O O O O O O O O O o o o o O O O O o 0 0 o 5 ...._,., O O O O O O O O O o o o O O O 0 0 0 O O O N o eel N ai oo" N N n e vi v N N N N M N r N N N >, d O O O N 0) I— O ro m co `� M V u, -o c !� c t M M co m a coc C R M M V N o)i O U v » w m 0 E Vf c N N a m O R O B CO M O O C7 3 F N V O I- O O O I� O N 00 r M NN R V O O O n d N N > V LO LO f� G R r M V O LO CO � w w W C 0) W Ln V F M N N r f0 fA r- R o 0 0 0 CO CO CO N 0 O O 0; F N V O n� o munm� m j O N 0) a) M W 0) CO d) M O N N M O CO r O N CO r f- Y.,.. M R C 0 N 0 � M N I� V f0 .,.0 m ~ n.; Ik Ill I k 6� N ~ � 0 J 0] F 7 O Y O O N M F V. 0 d E o C O- N 0 cR C N N .0 U (n Ld O O D U iD ID`~ 0 N O HUTCHINSON UTILITIES COMMISSION 9T, Board Action Form iiiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillillillillilliilliillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliilllI Agenda Item: Review Policies Presenter: Angie Radke Agenda Item Type: Time Requested (Minutes): 5 Review Policies Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: 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: i. Section 6 of Exempt Handbook ii. Section 6 of Non -Exempt Handbook BOARD ACTION REQUESTED: None Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: Exempt SECTION 6 - HEALTH AND SAFETY HUC is very concerned about the safety of its employees and the public HUC serves. All employees are required to follow all HUC safety rules and make the safety of themselves, their co- workers, and the public a priority. To encourage a safe workplace, the Commission has adopted the APPA — Utilities Safety Handbook. Compliance with the APPA is "mandatory and is considered a requirement for employment". ACCIDENTS AND INJURIES Employees must immediately report to a Manager or Supervisor job -related illnesses, all accidents and injuries (regardless how minor) that occur during the course of employment with HUC. The Employee and Supervisor must fill out and sign an accident report. If a supervisor is not available and the nature of injury or illness requires immediate treatment, the employee is to go to the nearest available medical facility for treatment and, as soon as possible, notify his/her supervisor of the action taken. In the case of a serious emergency, 911 should be called. If the injury is not of an emergency nature, but requires medical attention, the employee will report it to the supervisor and make arrangements for a medical appointment. Worker's compensation benefits and procedures to return to work will be applied according to applicable state and federal laws. Workers Compensation insurer is League of Minnesota Cities Insurance Trust (LMCIT). Pursuant to Minnesota Law, HUC has established a labor-management safety committee that investigates or reviews all accidents to identify causes of the accidents and suggest ways to prevent reoccurrence of the accident. The safety committee may request to interview any employee involved in an accident or any employee who may have knowledge of an accident. All employees are required to cooperate with the safety committee. UNSAFE CONDITIONS OR PRACTICES Employees are required to report to a Manager or Supervisor any unsafe conditions or practices they observe, including failure of a co-worker to follow safety rules or procedures. EMPLOYEE RIGHT -To -KNOW Minnesota's Employee Right -to -Know law requires HUC to inform employees when they may be exposed to hazardous substances, harmful physical agents, or infectious agents. HUC has adopted a written Employee Right -to -Know program. HUC has evaluated and reevaluates the work sites to determine the presence of hazardous substances. Employees shall become familiar with the location of Safety Data Sheets (SDS) in their work area. PROTECTED SAFETY FOOTWEAR The following footwear must be purchased by the Employee and the paid receipt submitted for reimbursement by HUC. HUC will reimburse the lessor of the actual purchase price or the maximum amount indicated within this policy. The type and/or need must be approved by the department manager prior to purchase and reimbursement. Protective footwear purchased with these funds must meet OSHA and uniform policy requirements for the individual's regular job duties according to APPA section 405 Wearing Apparel. The original receipt must be submitted with all reimbursement requests. Safety Toed Boots and Shoes - Employees are highly encouraged to purchase quality footwear for their own protection and comfort. HUC will reimburse employees based on the following criteria: • Up to $250 for full-time employees, once every 12 months • Up to $250 for Seasonal and Temporary employees, once every 3 years Insulated Safety Toed Winter Boots — The need for insulated boots must be approved by the department manager. HUC will reimburse employees based on the following criteria: • Up to $250 for full-time employees, once every 3 years Should an employee's protective footwear become damaged or in excessively poor condition, the employee would be eligible for replacement footwear provided that the department manager determines the footwear was damaged or in excessively worn condition due to the employee performing their assigned work duties. When replacing damaged or excessively worn protective footwear, the same maximum reimbursement amounts shall apply. Non -Exempt SECTION 6 — HEALTH AND SAFETY HUC is very concerned about the safety of its employees and the public HUC serves. All employees are required to follow all HUC safety rules and make the safety of themselves, their co- workers, and the public a priority. To encourage a safe workplace, The Commission has adopted the APPA — Utilities Safety Handbook. Compliance with the APPA is "mandatory and is considered a requirement for employment". ACCIDENTS AND INJURIES Employees must immediately report to a Manager or Supervisor job -related illnesses, all accidents and injuries (regardless how minor) that occur during the course of employment with HUC. The Employee and Supervisor must fill out and sign an accident report. If a supervisor is not available and the nature of injury or illness requires immediate treatment, the employee is to go to the nearest available medical facility for treatment and, as soon as possible, notify his/her supervisor of the action taken. In the case of a serious emergency, 911 should be called. If the injury is not of an emergency nature, but requires medical attention, the employee will report it to the supervisor and make arrangements for a medical appointment. Worker's compensation benefits and procedures to return to work will be applied according to applicable state and federal laws. Workers Compensation insurer is League of Minnesota Cities Insurance Trust (LMCIT). Pursuant to Minnesota Law, HUC has established a labor-management safety committee that investigates or reviews all accidents to identify causes of the accidents and suggest ways to prevent reoccurrence of the accident. The safety committee may request to interview any employee involved in an accident or any employee who may have knowledge of an accident. All employees are required to cooperate with the safety committee. UNSAFE CONDITIONS OR PRACTICES Employees are required to report to a Manager any unsafe conditions or practices they observe, including failure of a co-worker to follow safety rules or procedures. EMPLOYEE RIGHT -To -KNOW Minnesota's Employee Right -to -Know law requires HUC to inform employees when they may be exposed to hazardous substances, harmful physical agents, or infectious agents. HUC has adopted a written Employee Right -to -Know program. HUC has evaluated and reevaluates the work sites to determine the presence of hazardous substances. Employees shall become familiar with the location of Safety Data Sheets (SDS) in their work area. PRESCRIPTION SAFETY GLASSES Employees must pay for their own eye examination (health insurance will generally cover 100% of examination expense). Any supplier who can provide certification that the prescription glasses meet OSHA safety requirements may fill the prescription. HUC will reimburse full-time employees up to $150.00, once every 12 months. Contact the Administrative/HR Coordinator for information regarding the Safety Glasses program, forms, and participating vendors. PROTECTED SAFETY FOOTWEAR The following footwear must be purchased by the Employee and the paid receipt submitted for reimbursement by HUC. HUC will reimburse the lessor of the actual purchase price or the maximum amount indicated within this policy. The type and/or need must be approved by the department manager prior to purchase and reimbursement. Protective footwear purchased with these funds must meet OSHA and uniform policy requirements for the individual's regular job duties according to APPA section 405 Wearing Apparel. The original receipt must be submitted with all reimbursement requests. Safety Toed Boots and Shoes - Employees are highly encouraged to purchase quality footwear for their own protection and comfort. HUC will reimburse employees based on the following criteria: • Up to $250 for full-time employees, once every 12 months • Up to $250 for Seasonal and Temporary employees, once every 3 years Insulated Safety Toed Winter Boots — The need for insulated boots must be approved by the department manager. HUC will reimburse employees based on the following criteria: • Up to $250 for full-time employees, once every 3 years Should an employee's protective footwear become damaged or in excessively poor condition, the employee would be eligible for replacement footwear provided that the department manager determines the footwear was damaged or in excessively worn condition due to the employee performing their assigned work duties. When replacing damaged or excessively worn protective footwear, the same maximum reimbursement amounts shall apply.