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07-26-2017 HUCCPHUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING July 26, 2017 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. Legal d. General Manager 6. POLICIES a. Review Policies i. Deposit Requirement -Residential ii. Deposit Requirement-Commercial/Industrial iii. Jury, Witness or Board Duty iv. Volunteer Fire or Rescue Squad Duty v. School Conference Leave vi. Bone Marrow/Organ Donation Leave b. Approve Changes i. 7. UNFINISHED BUSINESS a. Update on Pack Gas Discussions 8. NEW BUSINESS a. Discussion on Capacity Contracts b. 9. ADJOURN MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, June 28, 2017 Call to Order — 3:00 p.m. President Monty Morrow called the meeting to order at 3:00 p.m. Members present: President Monty Morrow; Vice President Anthony Hanson; Commissioner Robert Wendorff; and Commissioner Don Martinez. Secretary Mark Girard was absent. Others present: General Manager Jeremy Carter; Attorney Marc Sebora. 1. Conflict of Interest There were no conflicts of interest noted. 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills General Manager Carter inquired of the Commission if the format of the check register with the new BS & A software is acceptable. It was communicated that the Commission has no issue with the format. Motion by Hanson, second by Wendorff, to approve the Consent Agenda. Motion carried unanimously. 3. Approve Financial Statements General Manager Carter presented the financial statements. The combined divisions are tracking minimally behind the 2016 year to date figures. There was a small power cost adjustment for May 2017. Fuel cost adjustment credits for the year are helping to offset the increased power costs adjustments in 2017. To date, the net increase in PCA/FCA adjustments are $110,000 more through May 2017 compared through May of 2016. Transmission expense is up mainly due to the increased transmission costs in the GRE transmission zone. Operating expenses are up over 2016 mainly due to the BSA software conversion payment installments. Those payments will not be there in 2018. Carter commented on the investment report. A bond was called with Wells Fargo and the $500,000 was reinvested into a secondary Certificate for Deposit and a step agency investment. The capital work order report for the electric production division, specifically requisition No. 11708 and the description should be corrected. The work order is related to the consulting costs on the generator 6 & 7 project. Motion by Martinez, second by Wendorff to approve the financial statements. Motion carried unanimously. 4. Open Forum -none 5. Communication a. City Administrator— Matt Jaunich Mr. Jaunich communicated that City Council has selected Council members Cook and Czmowski to represent the City in the Payment in Lieu of Taxes (PILOT) discussion with the representatives of the Utilities Commission. Construction and development are continuing throughout the City. b. Divisions i. Dan Lang — nothing to report ii. Dave Hunstad — nothing to report iii. Randy Blake — There has been good feedback and interest in response to the request for proposals for the engines 6 and 7 project. Mr. Blake is setting up and facilitating meetings with engine manufacturers. Representatives from Rolls Royce and Wartsilla have visited. Caterpillar and another Rolls Royce vendor are expected to visit in the near future. It is expected that we will receive four or five bids. iv. John Webster — nothing to report c. Legal — Marc Sebora — nothing to report d. General Manager — Jeremy Carter i. Mr. Carter is compiling information for the upcoming PILOT discussion with the City of Hutchinson. ii. Significant amounts of data have been sent to consultant conducting the cost of service study. iii. Considering future capacity contract options with Dan Lang, short and longer term. Information will be coming to the Commission in the future for the 2025-2030 time period, as pricing looks favorable. iv. Ehlers is still looking into our tax exempt status with bonding. v. Kim Hutton started in Customer Service today. Angie Radke will be starting July 5t" in the position of Administrative Coordinator. vi. Engine bids are due in mid-July. If the Commission wants to consider a special meeting to consider the bids, that is a possibility. The Commission indicated that if there is a good reason to hold a special meeting, such as moving the project forward in a timely manner, the Commission will consider it. 6. Policies a. Review Policies i. Delegation of Authority Policy ii. Hutchinson Utilities Commission iii. Establishing a New Electric/Natural Gas Account iv. Complaint/grievance procedures v. Employee Conduct No changes were recommended at this time. b. Approve Changes i. No changes were made to the policies under review. 7. Unfinished Business a. Update of Pack Gas Discussions General Manager Carter noted that HUC has not received any additional information from Heartland Corn regarding a settlement document. He anticipates hearing something in the next 1- 2 2 months. HUC is in the process of making the payment to New Ulm for their portion of the settlement. 8. New Business a. RP3 Designation by Hutchinson Utilities Commission Morrow noted that a discussion on this is warranted due to what this designation means for the community, particularly when we experience storms and, like other communities, do not experience outages as our infrastructure is underground. Dave Hunstad spoke about the recent June 9, 2017, severe weather storm. The only damage was to an above ground line that was brought down by a tree on HWY 15 North that caused an outage for only three homes. HUC is working on installing the line underground. Mr. Hunstad also noted that there are outages that do occur with the underground service. However, repairs can me made very quickly when these occur to reduce inconveniences and interruptions. b. Appointment of Payment in Lieu of Taxes(PILOT) Discussion Sub -committee. The Commission met with the City Council on Monday, June 26, 2017, about the PILOT discussion. Sub -committees are to be appointed by both entities. Commissioner Girard has volunteered to serve. Morrow asked for another volunteer, and Hanson offered to serve, as he has past experience with this process. General manager Carter and City Administrator Matt Jaunich will coordinate the scheduling of the sub -committee meeting. Motion by Martinez, second by Wendorff to designate the PILOT discussion sub -committee as Commissioners Mark Girard and Anthony Hanson. Motion passed unanimously. 9. Adjourn There being no further business, a motion was made by Hanson, second by Martinez to adjourn the meeting at 3:24 p.m. Motion carried unanimously. 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S -I a f-1 .4 U .11 f -I W W U .11 N H H N H w U N w N U H H N U F4 F4 w +) w x +- z q w w +) x x W w 11 +) (r) a s x N rt F-4 W F, H x rt P +) x C +) rt rl O O U O q a s U O O U O x U U a U w z w z a w H H q a z o w w H H H w U1 H H U O a a U > U H H H O z q q i7 U f24 0 a H x W cn u0 qz a H a ww E U) aW U� O a W H q a rzW� a w Oa a z a a Uz x a a .7 W W .D x Pa H H o O a a a a a a Uz Uz Uz H x 01 Cl u} W Cl H M l.0 O O O O O O H H H N N N N z z z z z z z z z z z z z W W W W W W W W W W W W W C7 C7 C7 C7 C7 C7 C7 C7 C7 C7 C7 C7 C7 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 \ \ \ \ \ \ \ \ \ \ \ \ \ M M M M M M M M M M M M M F-4 O O O O O O O O O O O O O is N Ln H H OJ 61 O Q0 O OJ 3' 0 n h O M h H N 31 � O N N OJ M H H N � H M a Q oc) oc) oc) O O O O a-1 I I I I H H H H O O O O Ln Ln Ln W W H H a w FD o w w N z W H co o a U) \ I z H H �D H 0 W N x N J-) U) �D O Q N W W x r U a w - a (D H +) z H > w x w s-4 N o\ p, H w a a z o w u x H x a H r1 N u a w a rt a QQ W �aa H a H J-) 0, o Q U u H H Z p a o a w Q w � w W Z Ga (� U1 Q H O O H W H w Q U U H W a a x H W U) � � w w W a x x E � O O u 04 Q Q o Q Q H H a Hn H �D �D W z . z . w w o H m m H H N N � U1 U1 � Q Q f" 6D 61 H U U U W W 'i U U a 1 CD �D w w w w w w Z:7) o FC FC CD -li ( U U h S 4-) H H x u Q" o 0 0 o z z CD H H N f7 J-) N N N N N 2 x s� U O�D q W O O O O HUTCHINSON UTILITIES COMMISSION COMBINED DIVISIONS FINANCIAL REPORT FOR JUNE, 2017 2017 2016 Diff. % Chna 2017 2016 Di %Chna Full Yr Bud % of Bud Combined Division $ 17,835,970 $ 17,407,100 $ 428,869 2.5% Customer Revenue $ 2,717,720 $ 2,632,595 $ 85,125 Sales for Resale $ 218,851 $ 187,323 $ 31,528 NU Transportation $ 69,175 $ 64,205 $ 4,970 Electric Division Transfer $ 54,308 $ 53,931 $ 378 Other Revenues $ 31,848 $ 55,548 $ (23,700) Interest Income $ 3,163 $ 2,064 $ 1,098 TOTAL REVENUES $ 3,095,064 $ 2,995,665 $ 99,399 Salaries & Benefits $ 465,996 $ 430,883 $ 35,113 Purchased Commodities $ 1,575,178 $ 1,541,277 $ 33,901 Transmission $ 210,397 $ 196,767 $ 13,629 Generator Fuel/Chem. $ 97,092 $ 141,403 $ (44,311) Depreciation $ 317,333 $ 313,000 $ 4,333 Transfers (Elect./City) $ 154,003 $ 150,657 $ 3,345 Operating Expense $ 115,003 $ 159,889 $ (44,886) Debt Interest $ 63,382 $ 67,676 $ (4,294) TOTAL EXPENSES $ 2,998,384 $ 3,001,553 $ (3,169) NET PROFIT/(LOSS) $ 96,680 $ (5,888) $ 102,567 3.2% $ 17,835,970 $ 17,407,100 $ 428,869 2.5% $ 36,743,052 16.8% $ 869,920 $ 701,549 $ 168,371 24.0% $ 2,310,110 7.7% $ 429,527 $ 381,853 $ 47,674 12.5% $ 734,878 0.7% $ 325,850 $ 323,583 $ 2,267 0.7% $ 651,700 (42.7%) $ 343,011 $ 319,658 $ 23,352 7.3% $ 498,808 53.2% $ 59,786 $ 17,941 $ 41,845 233.2% $ 100,000 3.3% $ 19,864,063 $ 19,151,685 $ 712,377 3.7% $ 41,038,548 8.15% $ 2,760,760 $ 2,860,654 $ (99,894) (3.5%) $ 6,005,227 2.2% $ 10,276,089 $ 9,703,667 $ 572,421 5.9% $ 20,990,267 6.9% $ 1,134,448 $ 898,586 $ 235,862 26.2% $ 2,550,000 (31.3%) $ 240,863 $ 349,965 $ (109,102) (31.2%) $ 1,249,801 1.4% $ 1,904,000 $ 1,878,000 $ 26,000 1.4% $ 3,808,000 2.2% $ 924,015 $ 891,899 $ 32,116 3.6% $ 1,700,647 (28.1%) $ 1,093,418 $ 1,026,353 $ 67,066 6.5% $ 2,583,006 (6.3%) $ 380,294 $ 406,056 $ (25,763) LLa2L $ 760,588 (0.1%) $ 18,713,888 $ 18,015,181 $ 698,707 3.9% $ 39,647,536 742.0%)l $ 1,150,175 $ 1,136,504 $ 13,671 1.20% $ 1,391,013 48.5% 37.7% 58.4% 50.0% 68.8% 59.8% 48.4% 46.0% 49.0% 44.5% 19.3% 50.0% 54.3% 42.3% 50.0% 47.2% 82.7% June June YTD YTD 2017 HUC 2017 2016 Change 2017 2016 Change Budget Target Gross Margin % 31.8% 29.2% 2.5% 33.2% 34.8% -1.6% 30.0% Y�IIII��II Operating Income Per Revenue $ (%) 6.1% 1.0% 5.1% 6.6% 7.1% -0.5% 4.5% Net Income Per Revenue $ (%): 3.1% -0.2% 3.3% 5.8% 5.9% -0.1% 3.4% 48.5% 37.7% 58.4% 50.0% 68.8% 59.8% 48.4% 46.0% 49.0% 44.5% 19.3% 50.0% 54.3% 42.3% 50.0% 47.2% 82.7% HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR JUNE, 2017 re was an improvement in net profit in the electric division of $81,493 due mostly to increased revenues from customers as well as Sales for Resale. Sales for Resale of $218,851 consisted of $18,774 in market sales, $34,400 in the monthly tolling fee from Transalta, $63,934 in sales to Transalta, and $96,000 in capacity sales to SMMPA. June 2016 Sales for Resale of $187,323 consisted of $30,118 in market sales, $34,400 in the monthly tolling fee from Transalta, $56,305 in Transalta sales, and $66,500 in capacity sales to SMMPA. June 2015 Sales for Resale of $107,344 consisted of $2,218 in market sales, $34,400 in Transalta tolling fees, $28,726 in sales to Transalta and the first month of capacity sales to SMMPA for $42,000. Overall Purchased Power increased by $26,259. MIRES purchases increased by $33,248 and market purchases decreased by $6,989. The power cost adjustment for June 2017 was $.00818/kwhr bringing in an additional $205,143 of revenue for the month and $762,518 for the year. Last year's power cost adjustments through June of 2017 generated $180,955 in additional revenue. 50% of Year Comp. June 2017 2016 YTD Diff. % Chna 2017 2016 Diff. % Chna Full Yr Bud % of Bud Electric Division Budget Target Gross Margin % 25.0% 23.9% 1.1% 25.6% 28.1% -2.5% 22.5% �TIII �1111��1 Operating Income Per Revenue $ (%) 3.0% Customer Revenue $ 2,308,454 $ 2,243,624 $ 64,830 2.9% $ 12,124,662 $ 11,902,290 $ 222,372 1.9% $ 25,185,461 48.1% Sales for Resale $ 218,851 $ 187,323 $ 31,528 16.8% $ 869,920 $ 701,549 $ 168,371 24.0% $ 2,310,110 37.7% Other Revenues $ 9,170 $ 34,733 $ (25,563) (73.6%) $ 212,384 $ 194,984 $ 17,400 8.9% $ 280,200 75.8% Interest Income $ 1,581 $ 1,032 $ 549 53.2% $ 29,893 $ 8,971 $ 20,922 233.2% $ 50,000 59.8% TOTAL REVENUES $ 2,538,056 $ 2,466,712 $ 71,343 2.9% $ 13,236,859 $ 12,807,794 $ 429,065 3.4% $ 27,825,771 47.6% Salaries & Benefits $ 370,659 $ 334,204 $ 36,455 10.9% $ 2,167,364 $ 2,232,545 $ (65,181) (2.9%) $ 4,727,135 45.8% Purchased Power $ 1,348,006 $ 1,321,746 $ 26,259 2.0% $ 6,962,265 $ 6,554,032 $ 408,233 6.2% $ 14,208,043 49.0% Transmission $ 210,397 $ 196,767 $ 13,629 6.9% $ 1,134,448 $ 898,586 $ 235,862 26.2% $ 2,550,000 44.5% Generator Fuel/Chem. $ 97,092 $ 141,403 $ (44,311) (31.3%) $ 240,863 $ 349,965 $ (109,102) (31.2%) $ 1,249,801 19.3% Depreciation $ 233,333 $ 225,000 $ 8,333 3.7% $ 1,400,000 $ 1,350,000 $ 50,000 3.7% $ 2,800,000 50.0% Transfers (Elect./City) $ 123,408 $ 116,803 $ 6,605 5.7% $ 740,450 $ 692,988 $ 47,461 6.8% $ 1,333,516 55.5% Operating Expense $ 68,806 $ 125,499 $ (56,694) (45.2%) $ 778,265 $ 741,583 $ 36,682 4.9% $ 1,746,330 44.6% Debt Interest $ 2,124 $ 2,551 $ (427) (16.7%) $ 12,744 $ 15,306 $ (2,563) 16.7% $ 25,488 50.0% TOTAL EXPENSES $ 2,453,825 $ 2,463,975 $ (10,149) (0.4%) $ 13,436,399 $ 12,835,006 $ 601,393 4.7% $ 28,640,313 46.9% NET PR(/OyFFII/IT//(L((((O(((((S(((S) $ 84,230 $ 2,738 $ 8J1,4((9(((3 2,976.8% $ (199,540) $ (27,212) $� (1117722,((3(((((2((9) 633.3% $ (814,542) 24.5% �W�Ii(((f(f(f(Illlllllllllllllll llfffffflllllllll #(((((f(f(IIIIIIIIIIIIIIIIIIII 50% of Year Comp. 2017 2016 Diff. % Chna 2017 2016 Diff. % Chna Full Yr Bud % of Bud Electric Division Residential 4,628,679 5,015,923 (387,244) (7.72%) 23,138,460 23,528,748 (390,288) (1.66%) 50,432,797 45.9% All Electric 138,712 145,092 (6,380) (4.40%) 1,276,602 1,314,578 (37,976) (2.89%) 2,611,705 48.9% Small General 1,579,660 1,588,853 (9,193) (0.58%) 8,745,671 8,688,736 56,935 0.66% 17,085,853 51.2% Large General 6,634,976 6,728,750 (93,774) (1.39%) 35,609,225 36,014,089 (404,864) (1.12%) 79,262,499 44.9% Industrial 12,258,000 12,584,000 (326,000) (2.59%) 66,403,000 67,727,000 (1,324,000) (1.95%) 134,707,856 49.3% Total KWH Sold 25,240,027 26,062,618 (822,591) (3.16%) 135,172,958 137,273,151 (2,100,193) (1.53%) 284,100,710 47.6% re was an improvement in net profit in the electric division of $81,493 due mostly to increased revenues from customers as well as Sales for Resale. Sales for Resale of $218,851 consisted of $18,774 in market sales, $34,400 in the monthly tolling fee from Transalta, $63,934 in sales to Transalta, and $96,000 in capacity sales to SMMPA. June 2016 Sales for Resale of $187,323 consisted of $30,118 in market sales, $34,400 in the monthly tolling fee from Transalta, $56,305 in Transalta sales, and $66,500 in capacity sales to SMMPA. June 2015 Sales for Resale of $107,344 consisted of $2,218 in market sales, $34,400 in Transalta tolling fees, $28,726 in sales to Transalta and the first month of capacity sales to SMMPA for $42,000. Overall Purchased Power increased by $26,259. MIRES purchases increased by $33,248 and market purchases decreased by $6,989. The power cost adjustment for June 2017 was $.00818/kwhr bringing in an additional $205,143 of revenue for the month and $762,518 for the year. Last year's power cost adjustments through June of 2017 generated $180,955 in additional revenue. June June YTD YTD 2017 HUC 2017 2016 Change 2017 2016 Change Budget Target Gross Margin % 25.0% 23.9% 1.1% 25.6% 28.1% -2.5% 22.5% �TIII �1111��1 Operating Income Per Revenue $ (%) 3.0% -0.2% 3.2% -2.5% -0.5% -2.0% -3.0% Net Income Per Revenue $ (%): 3.3% 0.1% 3.2% -1.5% -0.2% -1.3% -2.9% Customer Revenue per KWH: $0.0915 $0.0847 $0.0068 $0.0894 $0.0862 $0.0032 pppppp $0.0881 NIIIIIIIIIIIIII Total Power Supply Exp. per KWH: $0.0751 $0.0717 $0.0034 $0.0720 $0.0668 $0.0053 $0.0758 re was an improvement in net profit in the electric division of $81,493 due mostly to increased revenues from customers as well as Sales for Resale. Sales for Resale of $218,851 consisted of $18,774 in market sales, $34,400 in the monthly tolling fee from Transalta, $63,934 in sales to Transalta, and $96,000 in capacity sales to SMMPA. June 2016 Sales for Resale of $187,323 consisted of $30,118 in market sales, $34,400 in the monthly tolling fee from Transalta, $56,305 in Transalta sales, and $66,500 in capacity sales to SMMPA. June 2015 Sales for Resale of $107,344 consisted of $2,218 in market sales, $34,400 in Transalta tolling fees, $28,726 in sales to Transalta and the first month of capacity sales to SMMPA for $42,000. Overall Purchased Power increased by $26,259. MIRES purchases increased by $33,248 and market purchases decreased by $6,989. The power cost adjustment for June 2017 was $.00818/kwhr bringing in an additional $205,143 of revenue for the month and $762,518 for the year. Last year's power cost adjustments through June of 2017 generated $180,955 in additional revenue. HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR JUNE, 2017 Notes/Graphs: Net Profits increased by $21,075 in the gas division due to increased sales revenue and only a slight increase in gas expenses due to the overall restructured contracted gas pricing. The fuel credit adjustment for June 2017 was $1.5683/MCF providing credits to the customers totalling $35,104 for the month and $344,887 for the year. Fuel credit adjustments totalled $44,625 through May 2016. 2017 2016 Diff. % Chna 2017 2016 2017 HUC Diff. % Chna Full Yr Bud % of Bud Gas Division 2016 Change Budget Target Gross Margin % 60.5% 55.0% 5.4% 48.3% 48.4% -0.1% 46.2% �1111����111111� Customer Revenue $ 409,266 $ 388,970 $ 20,296 5.2% $ 5,711,308 $ 5,504,810 $ 206,498 3.8% $ 11,557,591 49.4% Transportation $ 69,175 $ 64,205 $ 4,970 7.7% $ 429,527 $ 381,853 $ 47,674 12.5% $ 734,878 58.4% Electric Div. Transfer $ 54,308 $ 53,931 $ 378 0.7% $ 325,850 $ 323,583 $ 2,267 0.7% $ 651,700 50.0% Other Revenues $ 22,678 $ 20,815 $ 1,863 8.9% $ 130,626 $ 124,674 $ 5,952 4.8% $ 218,608 59.8% Interest Income $ 1,581 $ 1,032 $ 549 53.2% $ 29,893 $ 8,971 $ 20,922 233.2% $ 50,000 59.8% TOTAL REVENUES $ 557,008 $ 528,953 $ 28,056 5.3% $ 6,627,204 $ 6,343,891 $ 283,313 4.5% $ 13,212,777 50.2% Salaries & Benefits $ 95,337 $ 96,678 $ (1,341) (1.4%) $ 593,396 $ 628,110 $ (34,714) (5.5%) $ 1,278,092 46.4% Purchased Gas $ 227,172 $ 219,531 $ 7,641 3.5% $ 3,313,823 $ 3,149,636 $ 164,188 5.2% $ 6,782,224 48.9% Operating Expense $ 46,197 $ 34,390 $ 11,808 34.3% $ 315,154 $ 284,769 $ 30,384 10.7% $ 836,676 37.7% Depreciation $ 84,000 $ 88,000 $ (4,000) (4.5%) $ 504,000 $ 528,000 $ (24,000) (4.5%) $ 1,008,000 50.0% Transfers (City) $ 30,594 $ 33,854 $ (3,260) (9.6%) $ 183,566 $ 198,911 $ (15,345) (7.7%) $ 367,131 50.0% Debt Interest $ 61,258 $ 65,125 $ (3,867) 0.0% $ 367,550 $ 390,750 $ (23,200) 5.9% $ 735,100 50.0% TOTAL EXPENSES $ 544,559 $ 537,578 $ 6,981 1.3% $ 5,277,489 $ 5,180,175 $ 97,313 1.9% $ 11,007,223 47.9% NET PROFFIIITT/(L/O/((((S((((S)) $ 12,449 $ (8,,6J�25)�////$///// 21,075 (244.3%) $ 1,349,715 $ 1,,,163,716 $ 11188��5,9((99 16.0% $ 2,205,554 61.2% �W �Ii(((f(f(f(IIIIIIIIIIIIIIIIII �MA�'iN�lllllllll������flll (((((( ll������������������������������������������������������������������������� �����������������������������������������������������������������������������������lIHi��wl��l�l��llllllllllllllrrfll lll������������������������������������������������ 50% of Year Comp. 2017 2016 Diff. % Chna 2017 2016 Diff. % Chna Full Yr Bud % of Bud Gas Division Residential 7,077,856 7,379,639 (301,783) (4.09%) 230,432,199 232,794,770 (2,362,571) (1.01%) 449,582,000 51.3% Commercial 9,940,436 8,145,546 1,794,890 22.04% 177,480,461 168,217,054 9,263,407 5.51% 420,183,000 42.2% Industrial 52,908,042 47,087,454 5,820,588 12.36% 451,592,311 421,925,378 29,666,933 7.03% 786,836,000 57.4% Total CF Sold 69,926,334 62,612,639 7,313,695 11.68%1 859,504,971 822,937,202 36,567,769 4.44%1 1,656,601,000 51.9% Notes/Graphs: Net Profits increased by $21,075 in the gas division due to increased sales revenue and only a slight increase in gas expenses due to the overall restructured contracted gas pricing. The fuel credit adjustment for June 2017 was $1.5683/MCF providing credits to the customers totalling $35,104 for the month and $344,887 for the year. Fuel credit adjustments totalled $44,625 through May 2016. June June YTD YTD 2017 HUC 2017 2016 Change 2017 2016 Change Budget Target Gross Margin % 60.5% 55.0% 5.4% 48.3% 48.4% -0.1% 46.2% �1111����111111� Operating Income Per Revenue $ (%) 19.1% 6.8% 12.3% 24.9% 22.9% 2.0% 20.6% Net Income Per Revenue $ (%): 2.3% -1.7% 4.0% 20.9% 18.7% 2.1% 17.0% Contracted Customer Rev. per CF: $0.0035 $0.0033 $0.0002 $0.0039 $0.0033 $0.0007 $0.0041 Customer Revenue per CF: $0.0132 $0.0152 -$0.0020 $0.0097 $0.0103 -$0.0006 $0.0096 Total Power Supply Exp. per CF: $0.0034 $0.0036 ($0.0003) $0.0039 $0.0039 $0.0000 $0.0042 Notes/Graphs: Net Profits increased by $21,075 in the gas division due to increased sales revenue and only a slight increase in gas expenses due to the overall restructured contracted gas pricing. The fuel credit adjustment for June 2017 was $1.5683/MCF providing credits to the customers totalling $35,104 for the month and $344,887 for the year. Fuel credit adjustments totalled $44,625 through May 2016. Current Assets UnrestrictedlUndesignated Cash Cash Petty Cash Designated Cash Capital Expenditures - Current Yr Payment in Lieu of Taxes Rate Stabilization - Electric Rate Stabiliation - Gas Catastrophic Funds Restricted Cash Bond Interest Payment 2003 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 HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED JUNE 30, 2017 Electric Gas Total Division Division 2017 5,362,607.01 4,922,136.44 10,284,743.45 680.00 170.00 850.00 926,471.57 1,489,054.41 829,200.00 367,131.00 314,539.41 - - 646,058.37 400, 000.00 100, 000.00 Total 2016 9,997,779.90 850.00 2,415,525.98 1,127,643.27 1,196,331.00 1,305,256.00 314, 539.41 397,193.34 646,058.37 582,268.94 500,000.00 500,000.00 Net Change Total (YTD) 286,963.55 1,287,882.71 (108,925.00) (82, 653.93) 63,789.43 100,324.99 - 100,324.99 85,828.87 14,496.12 - 1,303,400.00 1,303,400.00 937,166.85 366,233.15 - 2,188,694.02 2,188,694.02 2,188,694.02 - 7,933,822.98 11,016,64.4.24 18,950,467.22 17,122,681.19 1,827,786.03 2,326,443.05 22,224.58 2,348,667.63 1,221,393.50 1,968.42 161,060.04 1,746,060.00 3,130,481.96 490,243.03 2,816,686.08 2,662,228.45 154,457.63 9,191.09 31,415.67 - 31,415.67 499,434.12 2,848,101.75 2,662,228.45 185,873.30 416,882.04 1,638,275.54 1,561,958.64 76,316.90 84,742.20 86,710.62 77,141.09 9,569.53 - 161,060.04 136,262.38 24,797.66 - 1,746,060.00 388,200.00 1,357,860.00 582,020.00 582,020.00 129,400.00 452,620.00 1,083,644.24 4,214,126.20 2,292,962.11 1,921,164.09 Total Current Assets 13,412,972.57 12,599,722.60 26,012,695.17 22,077,871.75 3,934,823.42 Capital Assets Land & Land Rights 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 - Depreciable Capital Assets 89,040,627.70 41,261,970.45 130,302,598.15 129,510,003.63 792,594.52 Accumulated Depreciation (51,405,925.23) (14,829,901.36) (66,235,826.59) (62,621,667.19) (3,614,159.40) Construction - Work in Progress 584,964.77 5,204.64 590,169.41 346,243.24 243,926.17 Total Net Capital Assets 38,910,035.64 30,337,192.33 69,247,227.97 71,824,866.68 (2,577,638.71) Total Assets 52,323,008.21 42,936,914.93 95,259,923.14 93,902,738.43 1,357,184.71 Current Liabilities Current Portion of Long-term Debt Bonds Payable Bond Premium Accounts Payable Accrued Expenses Accrued Interest Accrued Payroll Total Current Liabilities Long -Term Liabilities Noncurrent Portion of Long-term Debt 2003 Bonds 2012 Bonds Bond Premium 2012 Pension Liability- Electric Pension Liability- Nat Gas 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 JUNE 30, 2017 Electric Gas Total Division Division 2017 125,000.00 2,607,916.98 2,123.90 5,633.06 2,740,673.94 465,000.00 4,226,202.00 286,389.60 66,478.09 569,910.00 5,613,979.69 1,220,000.00 185,608.32 784,315.13 61,258.45 44, 721.11 2,295,903.01 15,195, 000.00 1,562,202.99 1,408,734.00 92,553.90 25,572.23 189,970.00 18,474,033.12 1,345,000.00 185,608.32 3,392,232.11 63,382.35 50, 354.17 5,036,576.95 465,000.00 15,195, 000.00 1,562,202.99 4,226,202.00 1,408,734.00 378,943.50 92,050.32 569,910.00 189,970.00 24,088,012.81 Total 2016 1,285,000.00 185,608.32 4,262,907.17 67,676.13 100,116.31 5,901,307.93 590,000.00 16,415,000.00 1,747,811.31 2,775,239.00 925,080.00 356,049.33 90,772.86 396,226.00 132,076.00 23,428,254.50 43,968,354.58 22,166,978.80 66,135,333.38 64,573,176.00 43,968,354.58 22,166,978.80 66,135,333.38 64,573,176.00 Net Change Total (YTD) 60,000.00 (870,675.06) (4,293.78) (49, 762.14) (864,730.98) (125,000.00) (1,220,000.00) (185,608.32) 1,450,963.00 483,654.00 22, 894.17 1,277.46 173,684.00 57,894.00 659,758.31 1,562,157.38 1,562,157.38 Total Liabilities and Net Position 52,323,008.21 42,936,914.93 95,259,923.14 93,902,738.43 1,357,184.71 Hutchinson Utilities Commission Cash -Designations Report, Combined 6/30/2017 Savings, Checking, Investments Total Operating Funds Debt Reserve Requirements Debt Reserve Requirements Total Reserve Requirement Operating Reserve Rate Stabalization Funds PILOT Funds Catastrophic Funds Capital Reserves Total Earmarked Funds varies varies varies 18,950,467.22 20,588,497.51 (1,638,030.29) 18,950,467.22 20,588,497.51 (1,638,030.29) Bond Covenants -sinking fund 1,403,724.99 877,328.07 526,396.92 Bond Covenants -1 year Max. P & 1 2,188,694.02 2,188,694.02 - 3,592,419.01 3,066,022.09 526,396.92 Min 60 days of 2017 Operating Bud. Charter Risk Mitigation Amount 5 Year CIP ( 2017-2021 Fleet & Infrastructure Maintenance) 5,973,256.00 5,973,256.00 960,597.78 960,597.78 1,196, 331.00 1,196, 331.00 Change in 500,000.00 Financial 3,450,000.00 12,080,184.78 Balance,"Balance,Cash/Reserve 32.0% 32.2% 30.6% Institution Current Interest Rate Annual Interest June 2017 3.99 Position 0.05% 1.31% 2.17% 1.36% 11,016,644 18,950,467 Savings, Checking, Investments Total Operating Funds Debt Reserve Requirements Debt Reserve Requirements Total Reserve Requirement Operating Reserve Rate Stabalization Funds PILOT Funds Catastrophic Funds Capital Reserves Total Earmarked Funds varies varies varies 18,950,467.22 20,588,497.51 (1,638,030.29) 18,950,467.22 20,588,497.51 (1,638,030.29) Bond Covenants -sinking fund 1,403,724.99 877,328.07 526,396.92 Bond Covenants -1 year Max. P & 1 2,188,694.02 2,188,694.02 - 3,592,419.01 3,066,022.09 526,396.92 Min 60 days of 2017 Operating Bud. Charter Risk Mitigation Amount 5 Year CIP ( 2017-2021 Fleet & Infrastructure Maintenance) 5,973,256.00 5,973,256.00 960,597.78 960,597.78 1,196, 331.00 1,196, 331.00 500,000.00 500,000.00 3,450,000.00 3,450,000.00 12,080,184.78 12,080,184.78 YE YE YE YE YTD 2013 2014 2015 2016 2017 Debt to Asset 29.7% 28.8% 32.0% 32.2% 30.6% Current Ratio 2.08 2.26 2.52 3.06 3.99 RONA 0.80% 0.05% 1.31% 2.17% 1.36% HUC Target Notes/Graphs: Change in Cash Balance (From 12/31/14 to5/31/2017) Month End Electric Elec. Change Natural Gas Gas Change Total Total Change 6/30/2017 7,933,823 11,016,644 18,950,467 12/31/2016 8,612,801 (678,978) 9,500,074 1,516,570 18,112,875 837,592 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 Hutchinson Utilities Commission Cash -Designations Report, Electric 6/30/2017 Debt Restricted Requirements Bond Covenants -sinking fund 100,324.99 62,703.10 37,621.89 Operating Reserve Min 60 days of 2017 Operating Bud. 4,306,719.00 Change in Financial Balance, Balance, Cash/Reserve Institution Current Interest Rate Annual Interest June 2017 May 2017 Position r r i r � r iii rirr y�y0/� r MIF/rr�1Yf�R}��'f�1�'rh?�IiR'������((fffllllllllllllllllllll��� Risk Mitigation Amount 400,000.00 400,000.00 Savings, Checking, Investments varies varies varies 18,950,467.22 20,588,497.51 (1,638,030.29) Total HUC Operating Funds 18,950,467.22 20,588,497.51 (1,638,030.29) Debt Restricted Requirements Bond Covenants -sinking fund 100,324.99 62,703.10 37,621.89 Operating Reserve Min 60 days of 2017 Operating Bud. 4,306,719.00 4,306,719.00 Rate Stabalization Funds $400K -$1.2K 314,539.41 314,539.41 PILOT Funds Charter 829,200.00 829,200.00 Catastrophic Funds Risk Mitigation Amount 400,000.00 400,000.00 Capital Reserves 5 Year CIP ( 2017-2021 Fleet & Infrastructure Maintenance) 2,750,000.00 2,750,000.00 Total Designated Funds Current Ratio 2.77 8,600,458.41 8,600,458.41 YE YE YE YE APPA Ratio APPA Ratio HUC 2013 2014 2015 2016 w/10-50% Gen 5K -10K Cust. Target Debt to Asset Ratio 8.0% 7.4% 13.2% 16.1% 61.0% 29.5% III Current Ratio 2.77 2.48 2.95 3.57 NA 1.81 RONA -2.7% -3.1% -1.2% -0.4% NA NA >0% Notes/Graphs: Cash decreased in the electric divison due to some payments that were balance sheet items. The New Ulm payments included $660,000 to the electric division and $350,000 in new engine consulting costs. Hutchinson Utilities Commission Cash -Designations Report, Gas 6/30/2017 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 Requirements varies 18,950,467.22 20,588,497.51 (1,638,030.29) 18,950,467.22 20,588,497.51 (1,638,030.29) 1,303,400.00 814,624.97 488,775.03 2,188,694.02 2,188,694.02 - 3,492,094.02 3,003,318.99 488,775.03 Operating Reserve Min 60 days of 2017 Operating Bud. 1,666,537.00 1,666,537.00 Rate Stabalization Funds $200K -$600K Change in 646,058.37 Financial Charter 367,131.00 Balance,"Balance,Cash/Reserve Catastrophic Funds Risk Mitigation Amount 100,000.00 Institution Current Interest Rate Annual Interest June 2017 700,000.00 Position f (r 3,479,726.37 3,479,726.37 2.59 TBD TBD 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 Requirements varies 18,950,467.22 20,588,497.51 (1,638,030.29) 18,950,467.22 20,588,497.51 (1,638,030.29) 1,303,400.00 814,624.97 488,775.03 2,188,694.02 2,188,694.02 - 3,492,094.02 3,003,318.99 488,775.03 Operating Reserve Min 60 days of 2017 Operating Bud. 1,666,537.00 1,666,537.00 Rate Stabalization Funds $200K -$600K 646,058.37 646,058.37 PILOT Funds Charter 367,131.00 367,131.00 Catastrophic Funds Risk Mitigation Amount 100,000.00 100,000.00 Capital Reserves 5 Year CIP ( 2017-2021 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 Total Earmarked Funds Current Ratio 1.31 3,479,726.37 3,479,726.37 YE YE YE YE HUC 2013 2014 2015 2016 APGA Ratio APGA Ratio Target Debt to Asset 58.6% 55.6% 54.8% 51.5% TBD TBD <50% Current Ratio 1.31 2.07 2.17 2.59 TBD TBD RONA 5.8% 4.3% 4.7% 5.6% TBD TBD Gas Division cash was also lower due to the New Ulm payment. 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G (A c) W n M V l(j a m O N LO F (n r� rr%i v% O N U I N o V Y O F Co 6 O Eo N ~ c m O 2 E.� W d N N .2 'D O O 3 E m U (7 `w o C7 ELECTRIC DIVISION Operating Revenue June 2017 CLASS AMOUNT KWH /KWH Street Lights $0.44 8 $0.05500 Electric Residential Service $474,717.55 4,628,679 $0.10256 All Electric Residential Service $13,722.94 138,712 $0.09893 Electric Small General Service $160,582.13 1,579,660 $0.10166 Electric Large General Service $645,592.34 6,634,976 $0.09730 Electric Large Industrial Service $1,013,838.44 12,258,000 $0.08271 Total $2,308,453.84 25,240,035 $0.09146 Power Adjustment $0.00818 Rate Without Power Adjustment $0.08328 Electric Division Year -to -Date 02017$Amount 02016$Amount M2017KWH/10 02016 KWH/10 15,000,000 14,000,000 13,000,000 12,000,000 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 Street Lights Residential All Elec. Small Gen. Large Gen. Large For Resale Total Resid. Srv. Srv. Industrial NOTE: Sales for resale includes capacity sales, market sales and Transalta sales. NATURAL GAS DIVISION Operating Revenue June 2017 CLASS AMOUNT MCF /MCF Residential $89,234.97 7,078 $12.60737 Commercial $82,757.83 9,940 $8.32574 Large Industrial $237,273.31 52,908 $4.48464 Total $409,266.11 69,926 $5.85285 Fuel Adjustment -$0.00157 Rate Without Fuel Adjustment $7.42285 Natural Gas Division Year -to -Date ® 2017 $ Amount o 2016 $ Amount ® 2017 MCF o 2016 MCF 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 Gas Residential Gas Commercial Large Industrial Total )` })cl ¥--- ƒ\\\ )))� 3 =/ ) { /5 / U) 3_\U) U) U) :;:;yf r3�«°rr«° F; , r3�«;er«; :;:l2=:lf= #;);f±#;f± /§f2)\ f±\}2&:fol;e -a _ 0JwJ«20 Ul) 0JwC)U)o 7 =1. )` })cl ¥--- ƒ\\\ )))� / U) 3_\U) U) U) :;:;yf r3�«°rr«° F; , r3�«;er«; :;:l2=:lf= #;);f±#;f± #;);!E -a _ 0JwJ«20 Ul) 0JwC)U)o 7 =1. 0 \« ] 7 \ E _\3{ mozf)f� ) } ({j/($\ J 33;;;:: # "k -I L ) ):)))e\\\\\\#\{ HUTCHINSON UTILITIES COMMISSION���� Board Action Form �'Ylkll'M1'k� Agenda Item: Policies Review Presenter: Jeremy Carter Agenda Item Type: Time Requested (Minutes): 5 Review Policies Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA 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. Deposit Requirement-Residential II. Deposit Requirement-Commercial/Industrial III. Jury, Witness or Board Duty IV. Volunteer Fire or Rescue Squad Duty V. School Conference Leave VI. Bone Marrow/Organ Donation Leave BOARD ACTION REQUESTED: None Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: Deposit Requirement — Residential New Residential Customers: An application for service shall be filled out prior to receiving service. The application for service shall be accompanied with identification, preferably photo identification. In addition, a deposit is required for all new residential customers, prior to the utilities being placed in their name. A deposit will only be waived if the customer provides information regarding their payment history from their current or previous provider, and the payment history indicates the customer paid all of their bills on time with no late payment fees attached, and no dishonored checks. The customer is responsible for supplying a satisfactory credit reference to HUC. The payment history will look at the previous 12 months. An internal credit check is performed for all customers moving into HUC service territory. If the results of the credit check indicate the customer owes HUC due to previously provided services, then the outstanding balance shall be paid plus a deposit, prior to the customer receiving service. Existing Residential Customers Moving Within Service Territor: A deposit will be waived if the customer has a 12 month payment history with HUC indicating the customer has not been disconnected or issued any dishonored checks. A deposit for existing residential customers moving within HUC service territory will be required prior to customer having utilities placed in their name for the following reasons: If the customer has been disconnected or issued any dishonored checks in the previous 12 months. 2. Subsequent credit information indicates the initial application for service was falsified. The customer has the ability to pay for the utility service, but during the cold weather rule months, had an arrears amount incurred during that period that was 60 days or more past due. If a deposit is required of a customer and; 1. If customer has no deposit with HUC, the customer will pay the deposit amount for the customer's new address. 2. If customer already has a deposit with HUC and this deposit amount is greater than the new deposit required for customer's new address, HUC will transfer the deposit from the customer's previous address to the customer's new address. The balance of the deposit at the customer's previous address will be applied to the customer's final bill for the customer's previous address. 3. If customer already has a deposit with HUC and this deposit amount is less than the new deposit required for customer's new address, HUC will transfer the deposit from the customer's previous address to the customer's new address. The customer will pay the balance of the deposit amount for the customer's new address, prior to the utilities being placed in their name. If a deposit is required of a customer, and the customer would like a written explanation as to why they need to make a deposit, then one will be provided. Amount ofDeposit: If a deposit is required, it shall be equal to two times the average monthly bill, based on HUC rates. In the event of a new house, mobile home, or apartment building with no billing history, then similar construction will be used to establish the average monthly bill, based on HUC rates. Refusal or Disconnection of Service: Residential service may be refused or disconnected for failure to pay a deposit request. Interest: Interest earned on deposits is applied to the account as a credit on a calendar year basis. When customer moves out of our services, the account is finaled out with interest applied to the account as credit, and the deposit amount is applied to the final bill. If this results in a credit balance, a check is issued to the customer for that credit amount. The rate of interest is determined by the Minnesota Department of Commerce and HUC obtains that information annually. Refund: The utility shall refund the deposit of a residential customer after 12 consecutive months of on-time payments (no late payment fees). If a customer is late in making payment, then the deposit will be retained, until such time as the customer makes 12 consecutive monthly on-time payments (no late payment fees). If the customer provides a payment history from their previous provider, and the payment history indicates no late payment fees and no dishonored checks, then HUC will refund the deposit. HUC must receive this information from the customer within 30 days of customer moving into our services. Method ofRefund: Any deposit or portion thereof refunded to a residential customer shall be refunded by check. Any interest earned will be applied to customer's account as a credit. Refund at Termination ofService: On termination of residential service, and if the customer has a deposit with HUC, HUC shall credit the deposit, with accrued interest, to the customer's final bill and return the balance within 30 days of issuing the final bill. Deposit Requirement — Commercial/Industrial Commercial/Industrial Customers: An application for service shall be filled out prior to receiving service. The application shall be accompanied with identification, preferably photo identification, and their Federal Tax ID number. In addition, a deposit is required for all Commercial/Industrial customers, prior to the utilities being placed in their name. An internal credit check is performed for all customers moving into HUC service territory. If the results of the credit check indicate the customer owes HUC due to previously provided services, then the outstanding balance shall be paid plus a deposit, prior to the customer receiving service. Existia Commercial/Industrial Customers Movia Within Service TerritorZ A deposit will be waived if the Commercial/Industrial customer has a 24 -month payment history with HUC indicating the Commercial/Industrial customer has not been disconnected or issued any dishonored checks. A deposit for existing Commercial/Industrial customers moving within HUC service territory will be required prior, to customer having utilities placed in their name, for the following reasons: 1. If the customer has been disconnected or issued any dishonored checks in the previous 24 months. 2. Subsequent credit information indicates the initial application for service was falsified. If a deposit is required of a customer, and; 1. If customer has no deposit with HUC, the customer will pay the deposit amount for the customer's new address. 2. If customer already has a deposit with HUC and this deposit amount is greater than the new deposit required for customer's new address, HUC will transfer the deposit from the customer's previous address to the customer's new address. The balance of the deposit at the customer's previous address will be applied to the customer's final bill for the customer's previous address. 3. If customer already has a deposit with HUC and this deposit amount is less than the new deposit required for customer's new address, HUC will transfer the deposit from the customer's previous address to the customer's new address. The customer will pay the balance of the deposit amount for the customer's new address, prior to the utilities being placed in their name. If a deposit is required of a customer, and the customer would like a written explanation as to why they need to make a deposit, then one will be provided. Amount ofDeposit: The deposit shall be equal to the two highest bills for the past 12 months rounded to the nearest dollar. In the event that the building will be used for a different purpose from the previous tenant/owner, then similar use will be taken into consideration to determine the amount of deposit. The deposit may also be made by posting a performance bond or an Irrevocable Letter of Credit from an FDIC insured financial institution. These options will not earn any interest and will be terminated after 24 consecutive months of timely payments. In the event of a new building with no billing history, then similar construction will be used to establish the average monthly usage. Refusal or Disconnection of Service: Commercial/Industrial service may be refused or disconnected for failure to pay a deposit request. Interest: Interest earned on deposits is applied to the account as a credit on a calendar year basis. When Commercial/Industrial customer moves out of our services, the account is finaled out with interest applied to the account as credit, and the deposit amount is applied to the final bill. If this results in a credit balance, a check is issued to the customer for that credit amount. The rate of interest is determined by the Minnesota Department of Commerce and HUC obtains that information annually. Refund: HUC shall refund the deposit of a Commercial/Industrial customer after 24 consecutive months of on-time payments (no late payment fees). If a customer is late in making payment, then the deposit will be retained, until such time as the customer makes 24 consecutive monthly on-time payments (no late payment fees). Method ofRefund: Any deposit or portion thereof refunded to a Commercial/Industrial customer shall be refunded by check. Refund at Termination ofService: On termination of Commercial/Industrial service, and if the customer has a deposit with HUC, HUC shall credit the deposit, with accrued interest, to the customer's final bill and return the balance within 30 days of issuing the final bill. Exempt JURY, WITNESS OR BOARD DUTY A regular full-time and part-time employee called to jury duty will be granted paid leaves of absence. Employees are required to notify their supervisor as soon as possible after receiving notice to report for jury duty. Such employees will be required to turn over any compensation they receive for jury duty, minus mileage reimbursement, to HUC in order to receive their regular wages for the period. Time spent on jury duty will not be counted as time worked in computing overtime. Employees excused or released from jury duty during their regular working hours will report to their regular work duties as soon as reasonably possible or will take accrued vacation or compensatory time to make up the difference. Employees will be paid their regular wage to testify in court for HUC-related business or to serve on a work-related board or committee which pays a per diem. Any compensation received for court appearances (e.g. subpoena fees) or as meeting per diems arising out of or in connection with HUC employment, minus mileage reimbursement, must be turned over to HUC. Non -Exempt JURY, WITNESS OR BOARD DUTY A regular full-time and part-time employee called to jury duty will be granted paid leaves of absence. Employees are required to notify their supervisor as soon as possible after receiving notice to report for jury duty. Such employees will be required to turn over any compensation they receive for jury duty, minus mileage reimbursement, to HUC in order to receive their regular wages for the period. Time spent on jury duty will not be counted as time worked in computing overtime. Employees excused or released from jury duty during their regular working hours will report to their regular work duties as soon as reasonably possible or will take accrued vacation or compensatory time to make up the difference. Employees will be paid their regular wage to testify in court for HUC-related business or to serve on a work-related board or committee which pays a per diem. Any compensation received for court appearances (e.g. subpoena fees) or as meeting per diems arising out of or in connection with HUC employment, minus mileage reimbursement, must be turned over to HUC. Exempt VOLUNTEER FIRE OR RESCUE SQUAD DUTY In the event of an HUC emergency, the General Manager reserves the right to retain essential employees from Hutchinson volunteer fire or rescue squad duties or require employees to return to their HUC duties and assist the operation of HUC. HUC employees who are called out as members of the Hutchinson volunteer fire or rescue squad while on duty with HUC will be paid up to four hours regular pay while on the emergency call. Non -Exempt VOLUNTEER FIRE OR RESCUE SQUAD DUTY In the event of an HUC emergency, the General Manager reserves the right to retain essential employees from Hutchinson volunteer fire or rescue squad duties or require employees to return to their HUC duties and assist the operation of HUC. HUC employees who are called out as members of the Hutchinson volunteer fire or rescue squad while on duty with HUC will be paid up to four hours regular pay while on the emergency call. Exempt SCHOOL CONFERENCE LEAVE Any employee who has worked half-time or more may take unpaid leave for up to a total of sixteen (16) hours during any 12 -month period to attend school conferences or classroom activities related to the employee's child (under 18 or under 20 and still attending secondary school), provided the conference or school related activities cannot be scheduled during non - work hours. When the leave cannot be scheduled during non -work hours and the need for the leave is foreseeable, the employee must provide reasonable prior notice of the leave and make a reasonable effort to schedule the leave so as not to disrupt unduly the operations of HUC. Employees may choose to use vacation leave hours or compensatory time for this absence, but are not required to do so. Non -Exempt SCHOOL CONFERENCE LEAVE Any employee who has worked half-time or more may take unpaid leave for up to a total of sixteen (16) hours during any 12 -month period to attend school conferences or classroom activities related to the employee's child (under 18 or under 20 and still attending secondary school), provided the conference or school related activities cannot be scheduled during non - work hours. When the leave cannot be scheduled during non -work hours and the need for the leave is foreseeable, the employee must provide reasonable prior notice of the leave and make a reasonable effort to schedule the leave so as not to disrupt unduly the operations of HUC. Employees may choose to use vacation leave hours or compensatory time for this absence, but are not required to do so. Exempt BONE MARROW/ORGAN DONATION LEAVE Employees working an average of 20 or more hours per week must be granted paid leave, not to exceed 40 hours unless agreed to by HUC, to undergo medical procedures to donate bone marrow or to donate an organ or partial organ. HUC may require a physician's verification of the purpose and length of the leave requested. If there is a medical determination that the employee does not qualify as a bone marrow or organ donor, the paid leave of absence granted to the employee prior to that medical determination is not forfeited. Non -Exempt BONE MARROW/ORGAN DONATION LEAVE Employees working an average of 20 or more hours per week must be granted paid leave, not to exceed 40 hours unless agreed to by HUC, to undergo medical procedures to donate bone marrow or to donate an organ or partial organ. HUC may require a physician's verification of the purpose and length of the leave requested. If there is a medical determination that the employee does not qualify as a bone marrow or organ donor, the paid leave of absence granted to the employee prior to that medical determination is not forfeited.