Board Spotlight: Board Focuses on 2022
A regular meeting of the Board of Directors of SEMO Electric Cooperative, Inc., (hereinafter referred to as “Cooperative”) was held on Monday, September 20, 2021, at the office of the Cooperative in Sikeston, Missouri. The following Directors were present: Richard Faulkner, Butch Dirnberger, Carl Eftink, Dennis Fowler, James Deneke, Carla Moore, Keith Haynes, Dicky Hanor, Tim Coppage, John Bledsoe, and Hamil Corse. Directors absent: Myron Hawes. Also present were Sean Vanslyke, CEO/General Manager; Megan Ray, General Counsel; Allen Schulte, Auditor, and staff members Angie Byford, Amanda Burnett, Loyd Rice, Becky Ivester, Chris Freed, Marty Vineyard, Ron Montgomery, Dannett Cooper, Brad Milam, Brenda Garner and Kristin Burton. The meeting was called to order by President Faulkner. A prayer of invocation was offered by Deneke.
The chair asked for approval of the agenda. On motion made, seconded and passed, the agenda was approved. The Board considered its consent agenda consisting of: the minutes of the regular meeting of August 16, 2021; new membership applications; membership cancellations; initial review of Policy 410, Non-Standard Metering Policy; and initial review of Policy 411, Security/Street Lighting.
Montgomery presented the monthly safety report. Plus, he shared information on the monthly safety focus of teen drivers. The aim is engaged driving, where teen drivers are continuously attentive and focused. Young adults (ages 18-24) who self-report cell phone use while driving also engage in other risky driving behaviors, such as speeding, running red lights, and impatiently passing a car in front on the right. Following his report, Montgomery left the meeting. At this time, Eftink reported on business from the M&A Electric Power Cooperative meeting. Items of interest included: safety; reliability; construction; and finances. Haynes reported no meeting had been held since the last AMEC (Association of Missouri Electric Cooperatives) Board meeting.
Bobbi Jeffries of CFC (National Rural Utilities Cooperative Finance Corporation) entered the meeting and presented a market update and the cooperative’s Key Ratio Trend Analysis (KRTA) for the year. CFC has published the KRTA — an annual report that tracks the median value of 145 financial and operational ratios for participating electric distribution cooperatives over the previous five years —since 1975. She said the Cooperative is “doing a good job of maintaining expenses.”
Burnett presented a 10-year financial forecast for the Cooperative. Schulte discussed the future tax consequences to the Cooperative as electric income drops below 85% of the Cooperative’s total income. Income from the sale of electricity will remain tax exempt, however non-electric income will be subject to income taxes.
Burnett reviewed the financial summary for the month of August 2021 with revenue and expense analysis, budget comparisons, and a review of the arrears report. Compared to budget, year-to-date expenses are up 5.68%, revenue is up 3.16% and power costs are up 2.02%.
Under old business the Board: reviewed its schedule of meetings; Policy 406, Line Extension to Non-Permanent Installations, was affirmed as presented; and Policy 409, Meter or Equipment Tampering, was affirmed as presented.
Under new business the Board: approved a $10 million line of credit with CFC for fiber construction; approved the 2020 990; resolved to increase the Daily Fixed Charge by 10 cents per day for Rate 1 (residential) and Rate 5 (cabins, barns, RVs,) meters with no increase to the kWh (unit of energy) charge; and resolved to increase the kWh charge by 2% for Rate 12, 14, 20, 21, 22, 23, 24, 31, 32, 61, 64, 71 and 72 meters, with no increase to the Daily Fixed Charge or Demand Charge. The increases are to help offset rising costs for materials, labor, health care, shipping, fuel, fleet, insurance and other items required to provide electricity and broadband services 24/7/365. For residential members, the increase averages $3.04 per month. Increases will be effective with bills due in February 2022.
Department leaders were present to supplement their reports and to answer questions. The remaining staff members were excused from the meeting. Therefore, the Board entered into Executive Session to discuss personnel matters. Afterwards, the Board the meeting was adjourned.
