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December 19, 2023

News

Board Spotlight: 2024 Budget Includes Electric, Fiber Projects

A regular meeting of the Board of Directors of SEMO Electric Cooperative, Inc. took place on Monday, December 18, 2023, at the Cooperative's Sikeston office. The meeting commenced at 12:45 p.m., called to order by President Rick Faulkner. Directors in attendance included Faulkner, James Deneke, Carl Eftink, John Bledsoe, Myron Hawes, Tim Coppage, Field LaPlant, Carla Moore, Dicky Hanor, Keith Haynes, and Von Priggel. Director Dennis Fowler was absent. Also present were Sean Vanslyke, CEO/General Manager; Megan McCord, Attorney for the Cooperative; and staff members Angie Byford, Ron Montgomery, Jared Kelley, Amanda Burnett, Chris Freed, Loyd Rice, Becky Ivester, and Brad Milam. A prayer of invocation was offered by Byford. Upon motion and approval, the agenda was ratified. The consent agenda included the minutes of the regular meeting held on November 20, 2023; new membership applications; membership cancellations; and initial reviews of Policy 310 - Indemnification and Policy 311 - Record Retention. Montgomery highlighted the monthly safety report, emphasizing the importance of sanitizing high-contact areas for maintaining a healthy environment.

The Board addressed old business by reviewing its meeting schedule, approving the 2024 budget, approving Policy 308 - Use of Computer, Software, and Related Equipment, and Policy 309 - Accidental Damage to Poles. In new business, discussions ensued regarding district updates, 2023 bad debt write-offs, annual conflict of interest questionnaires, appointment of voting delegates for 2024, Bylaw amendments, campaign rules for the May 16, 2024, Annual Meeting, and the slate of nominating committee members. Vanslyke shared insights from the recent Renew Missouri meeting in Sikeston.

Burnett presented the financial summary for November 2023, detailing revenue, expenses, and budget comparisons. Year-to-date figures indicated a 1.21% decrease in revenue, a 6.09% rise in expenses, and a 3.47% increase in power costs. The Board accepted the financial report following a motion and second.

Reports from Eftink and Haynes covered the M&A Electric (Transmission) Power Cooperative and the Association of Missouri Electric Cooperatives’ (AMEC) board meetings, respectively, discussing margins, updates, budget details, and committee updates. Department leaders provided strategic updates and fielded questions from the Board.

An Executive Session was convened to deliberate legal and personnel matters, with remaining staff excused from the meeting. With no further business, the meeting adjourned at 4:47 p.m.

Amanda Burnett of Team SEMO elaborates on the cooperative's 2024 budget, earmarking $1.75 million for tree trimming and $5.2 million for electric construction projects. SEMO Electric has outlined an array of initiatives, including the replacement of 600 poles in the Lilbourn and Kelly regions and the reconductoring of 10 miles of aged primary lines. Additionally, the budget accounts for meter upgrades in Bloomfield, Frisco, and Idalia, alongside multiple smart grid enhancements spanning the service area.
Chris Freed from Team SEMO outlines the fiber construction plans for 2024, intending to lay 243 miles of fiber across Puxico, Duck Creek, and central Stoddard County. Additionally, the cooperative aims to pursue grant funding for expanded broadband infrastructure. However, the 2024 budget accounts for various rate hikes from vendors, suppliers, and contractors. Given the prevailing uncertainties regarding inflation, supply chain disruptions, interest rates, and economic conditions, the year ahead poses challenges that need careful consideration and management.