PUC investments

total $24 million

Money market fund

has another $4 million

By RON LARSEN

Journal Staff Writer

NEW ULM -- An investment summary provided to the Public Utilities Commission Tuesday shows the PUC has an investment portfolio totaling $24,270,976, as well as a money market investment of an additional $4,000,000.

The total invested reserve of $28,270,976 is just $1.39 million shy of covering the PUC's entire budget for 2002.

The $24 million is spread among six financial institutions, including four local banks. The largest amount invested with a single institution is $7,7055,947 with Prudential Securities which amounts to 31.75 percent of the total investment.

Citizens Bank of New Ulm has the second largest chunk, $7,483,231, or 30.83 percent of the pie. The rest of the $24 million is invested with Alliance Bank, United Prairie Bank, Valley Bank & Trust and Miller Johnson of New Ulm. The money market account is with Wells Fargo.

The investments drew an average rate of return of 5.450 percent, as of Feb. 19, the report said.

Director Robert Stevenson reported the Utilities Department got off to a plus start in January with a net income of $377,502 on total revenues of $2,907,708, according to a preliminary financial report. When payments in lieu of taxes are subtracted, it leaves a net income of $265,002.

The commission approved a new schedule of fees and charges that had not been changed since 1999. However, the changes were minimal, dealing with temporary service charges, rebates and hydrant connection and disconnect fees.

A public hearing will be held Tuesday, March 26, at 7:30 p.m. on a staff recommended revision to the Utility Code. Billed as a user-friendly change, the city would accept responsibility for the maintenance and repair of water lines from the main line which is usually in the middle of the street to the "curbstop" valve on the customer's property.

Allen Lamm, water/district energy supervisor, told the commission the revision would clear up problems in getting necessary repairs made. Currently, the property owner whose service line is leaking is responsible for digging up the street and repairing the leak.

The successful completion of negotiations with International Brotherhood of Electrical Workers, Local 949, on a new three-year labor contract paved the way for commission approval of not only the IBEW agreement but the 3 percent increase for non-union PUC employees, as well.

In other business, the commission approved a furnace cleaning discount program that allocates $10,000 for about 40 rebates for high efficiency air conditioning units and $5,000 (33 rebates) for high efficiency furnaces.

After some discussion, in which Commissioner William O'Connor chided the department for waiting until the last minute, the commission approved leasing a tractor for three years for an annual 300 hours of sludge disposal from the waste treatment plant. Lease payments would total $34,200.