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HomeMy WebLinkAbout2025-07-30 City Council Special Meeting1 COTTAGE GROVE CITY COUNCIL July 30, 2025 TRAINING ROOM - 5:30 PM 1 Call to Order 2 Workshops - Open to Public A 2026 Budget Workshop Staff Recommendation: Provide staff with feedback and direction regarding the 2026 budget. 3 Adjournment 1 City Council Action Request 2.A. Meeting Date 7/30/2025 Department Administration Agenda Category Action Item Title 2026 Budget Workshop Staff Recommendation Provide staff with feedback and direction regarding the 2026 budget. Budget Implication N/A Attachments 1. 01 2026 Equipment Replacement Memo 2. 01.1 Equipment Replacement Fund 3. 01.2 Equipment Replacement Request Forms 4. 01.3 Memo Take Home Squad Information 5. 01.4 Listing of Equipment Replacement 2026-2031 6. 02 General Fund Public Works Budgets 7. 03 Fund 215-Recycling Fund (Special Revenue Fund) 8. 04 Fund 235-Roadway & Trailway Maintenance Fund (Special Revenue Fund) 9. 05.01 Fund 610 Water Utility Fund (Enterprise Fund) 10. 05.02 Fund 620 Sewer Utility Fund (Enterprise Fund) 11. 05.03 Fund 630 Street Light Uitlity Fund (Enterprise Fund) 12. 05.04 Fund 230-Storm Water Utility Fund (Special Revenue Fund) 13. 05.05 Water and Sewer Rate Study 14. 05.06 Streetlight Rate Study 15. 06 Fund 710-Fleet Maintenance (Internal Service Fund) 16. 07 General Fund General Government Budgets 17. 08 Fund 265- CVB Fund (Special Revenue Fund) 18. 09 Fund 285 EDA Fund (Special Revenue Fund) 19. 10 Fund 280 HRA Fund (Special Revenue Fund) 20. 11 Fund 720-IT Fund (Internal Service Fund) 21. 12 Fund 700-Self Insurance Fund (Internal Service Fund) 22. 13 Financial Management Plan updated for 2026 Budget Process 23. 14 Parks Department Follow-up Memo 24. 14.1 Parks Department Follow-up Employee Cost 25. 14.2 Parks Department Follow-up Employee Annual Cost Sheet To: Honorable Mayor and City Council Jennifer Levitt, City Administrator From: Adam Moshier, Fleet and Facilities Maintenance Manager Date: July 15, 2025 Subject: Equipment Replacement for 2026 Introduction This memo outlines new and replacement equipment that is scheduled for 2026 in Public Works and Parks. Staff is recommending the following equipment be replaced in 2026; Garbage Truck Sign Service Truck Aerial Bucket Truck Bombardier Sidewalk Snow Removal Machine Holder Utility Machine Single Axle Dump Truck Hotsy Mobile Trailer Air Compressor Trailer Scrubber Blower Attachment (add to fleet) The total cost of all equipment is $1,474,000, with $1,324,000 budgeted in the Equipment Replacement fund, $65,000 budgeted in the Water fund and $85,000 in the Fleet fund. Last summer, $2,312,000 in equipment for Public Works and Parks & Recreation had been requested for 2026. However, due to the tight 2026 budget, staff have pushed out $767,000 of those requests to 2027 and $185,000 of those requests out to beyond 2027 . Equipment Recommended for Replacement Garbage Truck, 41-6003-14 This garbage truck is due for replacement based on age, maintenance cost and the condition of the truck. The replacement schedule for a garbage truck is 12 years. This truck is currently 11 years old. The garbage truck usually takes one full year to build and the City would not receive it until late 2026, making the truck over 12 years old by the time it is replaced. This truck has $92,700 dollars in maintenance costs with 2024 being the highest cost to date. This truck has 66,000 miles, although the mileage may not appear high, this is not a good indication of replacement as compared to a typical passenger or highway vehicle. These miles are nearly all in town and in parks along trails, with continuous stopping and starting. This truck has heavy rust and shows signs of wear which will begin to affect the body and lifting mechanism of the truck. The garbage truck collects all of the trash around the park facilities. There is only one garbage truck owned by the city so this needs to be a reliable piece of equipment. Over the past three years, this truck has been out of service during the summer months when it is needed most. It was already out of service for two weeks in 2025 to replace the injectors. Due to its small size and packing style, it is difficult to find a small garbage truck to rent. Staff is considerably less efficient in emptying the trash barrels without the garbage truck. Performing this task manually can lead to back injuries which is why having a reliable garbage truck is needed. Staff is estimating the total cost to replace this truck is $165,000. Staff is proposing to use an equipment certificate to fund this equipment. Sign Service Truck, 32-1101-07 This vehicle is due for replacement based on age and maintenance costs. The replacement schedule for service trucks is 15 years. This truck is 17 years old with 94,000 miles and $111,105 in maintenance costs. It shows signs of heavy rust underneath the body of the vehicle which can lead to more maintenance costs. Currently, this truck is used for everyday sign services including stenciling operations and hauling a trailer. This is the only sign service truck that is equipped to install signs and it needs to be reliable and in service. The past two $0 $5,000 $10,000 $15,000 $20,000 $25,000 Co s t Year Maintenance Cost Per Year Garbage Truck 6003 years have consistently seen this truck in the shop, with higher costs. The total cost to replace this vehicle is $220,000. Staff is proposing to use an equipment certificate to fund this equipment. Forestry Aerial Bucket Truck, 36-6009-07 The forestry aerial bucket truck is scheduled for replacement based off age, reliability and maintenance cost. The replacement schedule for the bucket truck is 12 years. This truck is currently 18 years old and has $88,746 dollars in maintenance costs with 2024 being the highest cost to date. These maintenance costs only cover 9 of the 18 years of life, while the City has owned the vehicle. It does take about one year to build a new bucket truck and this truck will then be 19 years old. Staff purchased this truck used in 2016 which is why the maintenance costs were $20,000 in 2016 due to outfitting the truck to fit staff’s needs and fixing some issues that were present. This aerial truck is a front-line vehicle and needs to be reliable so staff can complete their work orders. This truck has seen significant time out of service in the last two years and has become unreliable. The total cost to replace the bucket truck is $210,000. Staff is proposing to use an equipment certificate to fund this equipment. Bombardier (Sidewalk Snow Removal Machine)-34-8710-18 The bombardier is due for replacement based on age, reliability and efficiency. The bombardier is 7 years old with $41,900 in maintenance costs. The recommended replacement is 8 years. This machine is strictly used for sidewalk snow removal purposes only. With the increase in sidewalks and trails in new developments, these machines need to be reliable and working. Maintenance costs on this machine vary depending upon the snow fall amount. In the years we receive a lot of snow, this machine tends to need more maintenance as it is worked harder. Down time leads to the sidewalk and trails not getting plowed in a timely matter. Residents may have to walk in the road if the sidewalk is not plowed which is a safety hazard. If a sidewalk machine is down, staff have to work longer to make up for the missing piece of equipment. Staff has been researching more efficient and less expensive equipment to use for sidewalks. It is difficult to plow sidewalks with a tracked vehicle as the turn radius on this machine is terrible. It is a larger more clunky machine which makes it harder to maneuver on the sidewalks around light poles and signs. Staff is proposing to purchase a tractor with the goal of less downtime and better parts availability. The cost is significantly less, the total cost of the tractor with snow removal equipment is $100,000 compared to $255,000 for a bombardier. Staff is proposing to use an equipment certificate to fund this equipment. Holder (Utility Vehicle with Attachments)-31-8409-16 The holder is due for replacement based on age, reliability and maintenance cost. The holder is 9 years old, has $112,360 dollars in maintenance costs with 2019 being the highest cost to date. The recommended replacement is 8 years. This machine is used year-round for sidewalk snow removal purposes, sidewalk sweeping and mowing pond areas. With the increase in sidewalks and trails in new developments, these machines need to be reliable and working. Maintenance costs on this machine vary depending upon the snow fall amount. In the years we receive a lot of snow, this machine tends to need m ore maintenance as it is worked harder. If a sidewalk machine is down, staff have to work longer to make up for the missing piece of equipment. The total cost to replace the holder is $255,000. Staff is proposing to use an equipment certificate to fund this equipment. Dump Truck, 31-4001-10 The single axle dump truck is due for replacement based on age and maintenance costs. The replacement schedule for dump trucks is 15 years. Unit 4001 is 15 years old. Dump trucks usually take 1 full year to build, and the City would not receive them until late 202 6 or early 2027. This truck is used year-round with hauling asphalt, dirt and branches in the summer months. As well as plowing and hauling snow in the winter months. Unit 400 1 has $320,000 dollars in maintenance costs with 2023 and 2024 being the highest cost to date. Unit 4001 has 58,000 miles. Although the mileage isn’t relatively high compared to a passenger vehicle, this truck is showing signs of heavy rust and wear. Plowing snow and salting the roads puts extreme strain on the dump trucks and causes a great amount of rust and force to the dump truck. When one truck goes down, the roads get plowed slower and staff have to work longer hours to make up for the lost route. Older trucks tend to have more issues and therefore replacing them according to schedule is a key comp onent in the Public Works operations. The total cost to replace this single axle dump truck is $360,000. Hotsy Trailer, 70-6006-97 The hotsy trailer is due for replacement based on age and reliability. The replacement schedule for trailers is 15 years. This hotsy trailer is 28 years old with $15,820 in maintenance costs. Staff did an overhaul of the machine in 2018 and the past few years it has been costing around $1,000 per year. Currently, this hotsy trailer is used for removing graffiti, cleaning the splash pad, building exteriors and vehicles. This is the only hotsy trailer that the City owns, and it is the most efficient piece of equipment to do this work. The total cost to replace this hotsy trailer is $25,000. This hotsy trailer will be budgeted out of the water fund. Trailered Air Compressor, 70-6007-96 This trailered air compressor is due for replacement based on age and maintenance costs. The replacement schedule for trailers is 15 years. This air compressor trailer is 29 years old with $14,400 in maintenance costs. It is showing signs of age as over the past few years it has needed some major repairs. There are more efficient trailer air compressors in the market and staff needs a higher psi to blowout the larger irrigations systems in the fall. This is the only trailered air compressor the city has so it needs to be reliable and in service. The total cost to replace this air compressor trailer is $40,000. This trailered air compressor will be budgeted out of the water fund. Scrubber Sweeper, 33-8602-12 The scrubber is due for replacement based on age and maintenance costs. The replacement schedule for scrubbers is 12 years. This scrubber is 13 years old with $27,800 in maintenance costs. It shows signs of heavy rust underneath the body and in the hopper of the scrubber which can lead to more maintenance costs. Currently, this scrubber is used for cleaning the Public Safety garage, Public Works garage and the Central Fire Station. This is the only scrubber that is big enough to handle the large areas of cleaning. The past few years have consistently seen this scrubber in the shop, with higher maintenance costs and downtime. The total cost to replace this scrubber is $85,000. Lead time on this unit is almost 1 year. This scrubber will be budgeted out of the fleet fund. New Equipment Added to the Fleet Blower for Tractor Staff is requesting to add a blower attachment to the fleet. This would be added to the current tractor that was purchased previously. There were not enough funds in the budget to purchase this blower when the tractor was built. Parks and Streets use blowers on equipment to assist with snow removal on sidewalks, parking lots and ice rinks. The total cost to add a blower attachment would be $14,000. Conclusion Staff has taken a considerable amount of time to form this equipment replacement recommendation for 2026. If the City is to push back equipment past the recommended replacement schedule, maintenance costs will continue to increase, putting more pressure on the fleet maintenance staff to keep them in service. Costs will continue to increase as equipment will need to be sent to contractors to get repaired in a timely fashion. Downtime becomes a bigger factor which then leads to staff being less efficient and not having the equipment needed to complete the job. Staff is recommending this equipment be replaced to increase efficiency, decrease maintenance costs, decrease down time and enhance the fleet. The total cost of purchasing and replacing all of the equipment highlighted above is $1,474,000. The breakdown of the funds is $1,324,000 budgeted out of Equipment Replacement fund, $65,000 budgeted out of the Water fund and $85,000 budgeted out of the Fleet fund. Equipment Replacement Fund 2024 2025 2026 2027 Revenues: Property Tax Levy-Equipment 317,163$ 321,000$ -$ 900,000$ Debt Levy-Equip. Certificates - - Transfer In 52,900 - - - Equipment Sales 22,984 20,000 20,000 20,000 Investment Interest 52,026 35,000 400 400 Total Revenues:445,073 376,000 20,400 920,400 Expenditures: Equipment Paid 2024 1,807,691 Equipment Paid 2025 from 2024 - 142,000 Equipment Paid 2025 - 2,674,500 Equipment Purchases - - 1,434,000 2,697,900 Total Expenditures:1,807,691 2,816,500 1,434,000 2,697,900 Other Financing Sources/(Uses) Equipment Certificates 500,000 1,970,000 1,310,000 345,000 Transfer Out-Debt Payment - Issuance Costs - - - - Total Other:500,000 1,970,000 1,310,000 345,000 Beginning Fund Balance 1,622,561$ 759,943$ 289,443$ 185,843$ Ending Fund balance 759,943$ 289,443$ 185,843$ (1,246,657)$ 2024 Equipment to not arrive until 2025 Redi-Haul Trailer (41-7013-05)Parks 22,000 2 Admin Vehicles Police 120,000 142,000$ 2026 Equipment PD-2 Vehicle for police 21-1247-13 Police 55,000 PD-3 Vehicle for police 21-1839-14 Police 55,000 PW-1 Garbage truck-Priority 1 41-6003-14 Parks 165,000 Equipment Cert PW-2 Sign truck-Priority 2 32-1101-07 Signs 220,000 Equipment Cert PW-3 Forestry aerial service truck-3 36-6009-07 Forestry 210,000 Equipment Cert PW-4 Blower for new tractor-Priority 4 41 Parks 14,000 PW-5 Tractor-Priority 5 34-8710-18 Snow 100,000 Equipment Cert PW-6 Utility vehicle with attachments-6 31-8409-16 Streets 255,000 Equipment Cert PW-7 Dump Truck Single Axle -Priority 7 31-4001-10 Streets 360,000 Equipment Cert 1,434,000 2027 Equipment PD-5 Vehicle for police 21-1641-16 Police 56,650 PD-6 Vehicle for police 21-1646-16 Police 56,650 PD-4 Squad Cars Squad Cars Police 523,600 Fire-1 Vehicle for fire chief 26-3117-15 Fire 72,000 Fire-2 Fire vehicle for deputy fire chief 26-3127-17 Fire 75,000 Fire-3 Fire vehicle for misc fire staff 26-0344-10 Fire 75,000 Fire-4 Wildland fire pickup 26-3128-13 Fire 200,000 Fire-5 UTV for brush fires 26-0214-14 Fire 40,000 EM-1 Command vehicle Emer Mgmt 750,000 PW-11 Tractor 41-8403-08 Parks 135,000 Moved from 2026 PW-12 Mower 41-8502-19 Parks 122,000 PW-13 Mower 16-foot 41-8511-18 Parks 167,000 Moved from 2026 PW-14 Gator 41-8704-05 Parks 35,000 Moved from 2026 PW-15 Arrow board 31-0036-08 Streets 10,000 PW-16 Arrow board 31-0037-08 Streets 10,000 PW-17 Message board trailer 31-0050-11 Streets 25,000 PW-18 Loader and wing 31-8002-91 Streets 345,000 Equipment Cert; Moved from 2026 2,697,900 Equipment in other Funds in 2026 PW-8 Hotsy trailer 25,000 Water PW-9 Trailered air compressor 40,000 Water PW-10 Scrubber sweeper Fleet Fleet 85,000 Ambulance 340,000 EMS Fund Equipment in other Funds in 2027 PW-19 Pickup 73,500 Water PW-20 Pickup 73,500 Water Ambulance 340,000 EMS Fund To: Honorable Mayor and City Council Jennifer Levitt, City Administrator From: Adam Moshier, Fleet and Facilities Manager Date: 7/24/2025 RE: Take Home Squad Information Background The City of Cottage Grove started the take home squad program in late 2024. This memo summarizes the 2024 maintenance and mileage compared to staff projections for 2024. The take home squad program was not implemented until late September of 2024. The numbers below do include all repairs done to the vehicle, including insurance claims. VEHICLE # ESTIMATED MILEAGE PER YEAR 2024 ACTUAL MILEAGE ESTIMATED MAINTENANCE 2024 ACTUAL MAINTENANCE Total 391,214 357,053 73,541$ 137,518$ Average 16,301 14,877 3,064$ 5,730$ As shown above, the maintenance costs were 87% more than expected and mileage was 9% less than expected. Again, this is not a full representation of the impact take home squads are having as it was started in late 2024. For a comparison, the 2023 average maintenance cost per squad was $5,741 and average miles driven per squad was 16,446. Both 2023 and 2024 numbers are similar. The year 2025 will be a better snapshot of how the take home squad program is affecting maintenance and miles driven as 2025 will be a complete year of take home squad use. The table below shows 2025 maintenance costs through June. The major outlier in this table is unit 2159 where the cost is $14,137. $8,700 of that is from an insurance claim. For 2025, the actual maintenance numbers are trending about the same as 2023 and 2024. Recommendation Receive information on take home squad program. VEHICLE # 2025 ESTIMATED MAINTENANCE 2025 ACTUAL MAINTENANCE Total 79,362$ 69,582$ Average 3,174$ 2,783$ 2014 2013 2010 2016 2007 2019 2007 2014 Isuzu S uads 5 s uad additions and 1 re lacemen 508 32 2013 2007 2015 2017 2017 2016 2016 2019 2018 2008 2005 1991 2008 2008 2011 2014 2016 2018 Ford Ex lorer 2017 GMC 2013 2013 2018 26-3117-15 2015 ford explorer 3117 squad 2 Ford F550 $75,000 Total 2010 Single-Axle Dump Truck Freightliner 31-4001-10 2018 CHEVY TAHOE Chev Tahoe FORD F250 41-6003-14 Isuzu Garbage Truck With Side Loader 21-1848-18 Ford Explorer Squads 4 squad additions and two replacements 21-7042-13 Aluminum Barricade trailer 21-7041-13 Speed Trailer 21-1839-14 2014 Chrysler Chrysler $55,000 Freightliner M2 $360,000 Ford 2028 26-3102-1 $1,942,320Total Toro GM 5910 John Deere Turf 2027 41-8403-08 John Deere 5625 Tractor John Deere 5625 2026 Bombardier SW4S-F Sidewalk Machine Prinoth SW4S-F $100,000 21-1247-13 2013 Ford Explorer Squad 1247 $55,000 $255,000 36-6009-07 Ford F550 $210,000 32-1101-07 $220,000 31-8409-16 Holder GMC Crew Cab Sign Truck C4500 GMC C4500 34-8710-18 Ford F550 Forestry Aerial Service Truck $165,000 31-0037-08 Solar arrow board $10,000 $122,000 26-3127-17 Ford Explorer 3127 FORD EXPLORER $75,000 21-1646-16 Ford Explorer FORD EXPLORER $56,650 21-1641-16 Ford Explorer FORD EXPLORER $56,650 26-0344-10 Ford pickup $75,000 41-8502-19 $135,000 Toro GM4000 Mower Toro GM4000 Equipment Replacement Fund Equipment Replacement Based on Replacement Year Grouped By Replacement Year Updated 6/26/2025 $345,000 41-8511-18 16ft Toro GM5910 Mower $167,000 41-8704-05 John Deere Gator Turf $35,000 31-8002-91 John Deere 772BH Grader & Wing John Deere 772BH 15-4300-07 Command Vehicle Ford Winebago $750,000 26-3128-13 2013 pickup Crew Cab Fire Brush $200,000Ford $58,350 21-1750-17 GMC Sierra $58,350 New Blower $14,000 $523,560 31-0036-08 arrow board $10,000 $2,700,860 31-0050-11 Message Board trailer $25,000 26-0214-14 Utv Polaris 0214 $40,000Polaris Ranger Crew $80 000 $30,000 $10,000 13-1666-16 2016 ford interceptor 1666 Ford Interseptor $45,000 2015 2016 2016 2018 2001 2016 2013 2006 2019 1991 2013 1993 2009 S uads $539,22 2019 Dod e Duran o 2019 Dod e 2019 2015 2017 2016 2017 2016 2017 41-8506-21 Toro Groundmaster 4000-T 2021 Toro 4000-T4 $130,00 2017 2024 2015 2016 2016 2014 S uads $560,00 2010 2015 2016 2018 2017 2015 2018 2015 GMC Sierra Wt GMC Sierra 2029 15-1901-19 Mobile light generator Kromer FC1 $85,000 31-6010-16 $15 000 26-344-10 2010 Ford 4wd Pickup F250 $50,000 41-7007-18 Single Axle Kromer Trailer 83 x 12 Sport Warrior $10,000 $10,000 13-5005-17 $55,0002017 Ford Escape 5005 Ford Escape 41-7006-15 Trailer Tandem 16 foo Towmaster T-12DT 36-9003-16 2016 Stump Grinder Bobcat SGX60 $1,794,000 31-8207-16 32-7016-14 Trailer Single-Axle Aluma $20,000 Stand on Spreader Exmark Spreader $13,000 13-5006-17 2017 Ford Escape 5006 Ford Escape Caterpillar 926M Loader Caterpillar 926M 2017 Ford F250 Crew Cab Ford F250 41-8401-1 John Deere Tractor 5115 John Deere 5115 41-8407-17 John Deere Tractor 3046R John Deere 3046R 41-1701-17 2030 Ford F250 41-8706-17 41-7015-01 Trailer $12,000 New $80,000Crew Cab Streets 31-7004-06 Trailer/7004 $12,000 $85,000 14-1704-15 GMC Pickup 1500 Extended Cab GMC Sierra 1500 $70,000 31-0049-09 Trafficx Scorpion Towed Attenuator $25,000 $55,000 $345,000 $150 00 $50,000 $85,000 John Deere Pro Gator 2030A John Deere 2030A $40,000 Total New $36,000Gator 31-8603-13 Tymco Sweeper (air) $340,000 41-1404-16 2016 Ford F350 1404 Ford F350 $85,000 Ford F250 Tymco Ford F250 41-1409-16 2016 Ford F250 1409 $85,000 51-5001-15 GMC Sierra WT/Recreation GMC Sierra $70,000 41-1402-15 2015 GMC Sierra WT/41-1402-15 GMC Sierra 2500 Total 31-6002-93 Ford Tandem Water tanker $350,000 34-9007-13 Sno Go Blower $2,555,926 $20,000 41-8702-18 Kromer Field Maintainer/Striper 21-1940-19 Dodge caravan $58,000 $150,000 41-8003-91 Huber $40,000 31-1002-16 2016 Ford F250 1002 $85,000 Ford Utility old squad 1857 Ford Explorer $55,000 21-1943-19 Dodge Durango $58,000 $85,000 31-8402-19 MT Trackless $265,000MT Trackless MT7 31-1005-15 13-1754-17 ford explorer/old squad 1754 Ford Explorer $55,000 31-1009-24 Leased vehicle with state Ford F150 13-1857-18 2018 2018 2018 2018 2022 2022 2010 2015 2015 2015 2018 2015 New Mowe $40,000 2020 2020 21-2197-21 2021 Polaris Ran e 2021 Polaris $45,000 21-7046-05 Car Hauler Traile 2005 $10,000 S uads $570,00 2031 2019 2004 2019 2008 2019 2019 2019 2019 2019 2016 2019 2013 S uads $400,00 41-1410-19 41-8406-19 John Deere 4066R Tractor John Deere 4066R $80,000 41-1705-19 Ford F150 1705 $60 000 31-8306-13 Patcher Spray Injection $90,000 31-8301-19 CB1.8 Roller CAT CB1.8 $35,000 $10,000 Interstate Enclosed Cargo Trailer 18 FT Interstate Trailer $55,000 $55,000 $2,448,000 Ford Escape 5002 Ford Escape $38,000 Single Axle Utility Trailer 83 x 12 Sport Warrior $10,000 Cat 926M 14-5002-19 Total $10,000Road Warrior Ford F150 41-7008-18 Tandem Water Tanker Trailer 77 x 12 Road Warrior $10,000 41-8507-22 Western Star 4700SF Western Star 4700SF 31-0044-10 Hydroseeder Finn T75 Cat 926M Loader Ford F250 pickup 1410 Ford F250 $80,000 41-7012-18 41-1401-19 Ford F250 1401 Ford 250 31-8205-18 41-8508-22 2022 Ferris mower 5ft $80,000 41-7014-18 2022 Ferris mower 5ft $40,000 Ferris $360,000 31-4203-15 2015 Ford 1-Ton Dump Truck Ford F450 $150,000 31-4005-15 Dump Truck Single Axle / 31-4005-15 41-7011-18 Single Axle Utility Trailer 83 x 12/ 41-7011 Sport Warrior 8312SA $80,000 $40,000 31-1007-19 FORD F250 Pickup FORD F250 31-7019-16 Felling Deck Over Trailer Felling FT-40-2-LP 32-7001-15 Tandem Axle Utility Trailer 83 x 16 $40,000 31-4004-15 Dump Truck Single Axle 2015 $360,000 $10,000 $360,000 Ferris Total $1,330,000 36-6004-04 GMC Forestry Aerial Truck GMC $250,000 41-0037-08 Dakota Turf Top Dresser $25,000 13-5004-19 Ford Escape 5004 Ford Escape 21-1942-19 2020 Dodge durango Dodge $60,000 21-2067-20 Ford F150 Ford $60,000 7/24/2025 4:04:49 PM Page 1 of 11 Budget Comparison Report Cottage Grove Account Detail 2023 Total AcƟvity 2024 Total AcƟvity Account Number 2025 YTD AcƟvity Through May 2025 2025 2026 2026 Parent Budget Comparison 1 Budget Comparison 1 to Parent % 2027 2027 FALL 2025 Comparison 2 Budget Comparison 2 to Comparison % Increase / (Decrease) Increase / (Decrease) Fund: 620 - SEWER OPERATING Revenue Category: 3030 - SPECIAL ASSESSMENTS Object: 3044 - MISC PEN & INT 2,953.32 2,158.29 0.00 3,000.002,500.00 500.00 20.00% 3,000.00 0.00 0.00%MISC PEN & INT620-00-9620-3044 Total Object: 3044 - MISC PEN & INT:20.00% 0.00%3,000.002,500.00 500.00 3,000.00 0.000.002,158.292,953.32 Total Category: 3030 - SPECIAL ASSESSMENTS:20.00% 0.00%3,000.002,500.00 500.00 3,000.00 0.000.002,158.292,953.32 Category: 3400 - CHARGES FOR SERVICES Object: 3525 - CREDIT CARD RECOVER 0.00 0.00 0.00 32,940.000.00 32,940.00 0.00% 32,940.00 0.00 0.00%CREDIT CARD RECOVER620-81-3160-3525 Total Object: 3525 - CREDIT CARD RECOVER:0.00% 0.00%32,940.000.00 32,940.00 32,940.00 0.000.000.000.00 Total Category: 3400 - CHARGES FOR SERVICES:0.00% 0.00%32,940.000.00 32,940.00 32,940.00 0.000.000.000.00 Category: 3710 - ENTERPRISE CHARGES FOR SERVICES Object: 3724 - SEWER SERVICE 3,573,621.28 3,930,684.58 1,457,937.84 4,577,000.004,140,870.00 436,130.00 10.53% 4,924,852.00 347,852.00 7.60%SEWER SERVICE620-00-9620-3724 Total Object: 3724 - SEWER SERVICE:10.53% 7.60%4,577,000.004,140,870.00 436,130.00 4,924,852.00 347,852.001,457,937.843,930,684.583,573,621.28 Object: 3727 - PENALTIES-UTIL 26,835.02 47,155.79 5,393.24 40,000.0030,000.00 10,000.00 33.33% 40,000.00 0.00 0.00%PENALTIES-UTIL620-00-9620-3727 Total Object: 3727 - PENALTIES-UTIL:33.33% 0.00%40,000.0030,000.00 10,000.00 40,000.00 0.005,393.2447,155.7926,835.02 Object: 3739 - MISC UTIL -37,915.00 0.00 0.00 14,000.0015,000.00 -1,000.00 -6.67% 0.00 -14,000.00 -100.00%MISC UTIL620-00-9620-3739 8,821.75 10,784.90 3,404.45 0.000.00 0.00 0.00% 14,000.00 14,000.00 0.00%MISC UTIL620-80-3100-3739 Total Object: 3739 - MISC UTIL:-6.67% 0.00%14,000.0015,000.00 -1,000.00 14,000.00 0.003,404.4510,784.90-29,093.25 Total Category: 3710 - ENTERPRISE CHARGES FOR SERVICES:10.63% 7.51%4,631,000.004,185,870.00 445,130.00 4,978,852.00 347,852.001,466,735.533,988,625.273,571,363.05 Category: 3809 - INVESTMENT INTEREST Object: 3809 - INTERFUND INTRST 23,350.00 21,250.00 0.00 17,050.0019,200.00 -2,150.00 -11.20% 14,950.00 -2,100.00 -12.32%INTERFUND INTRST620-00-9620-3809 Total Object: 3809 - INTERFUND INTRST:-11.20% -12.32%17,050.0019,200.00 -2,150.00 14,950.00 -2,100.000.0021,250.0023,350.00 Budget Comparison Report 7/24/2025 4:04:49 PM Page 2 of 11 2023 Total AcƟvity 2024 Total AcƟvity Account Number 2025 YTD AcƟvity Through May 2025 2025 2026 2026 Parent Budget Comparison 1 Budget Comparison 1 to Parent % 2027 2027 FALL 2025 Comparison 2 Budget Comparison 2 to Comparison % Increase / (Decrease) Increase / (Decrease) Object: 3810 - INVEST INTEREST 151,663.52 163,883.24 93,624.61 34,900.0037,000.00 -2,100.00 -5.68% 34,800.00 -100.00 -0.29%INVEST INTEREST620-00-9620-3810 Total Object: 3810 - INVEST INTEREST:-5.68% -0.29%34,900.0037,000.00 -2,100.00 34,800.00 -100.0093,624.61163,883.24151,663.52 Total Category: 3809 - INVESTMENT INTEREST:-7.56% -4.23%51,950.0056,200.00 -4,250.00 49,750.00 -2,200.0093,624.61185,133.24175,013.52 Category: 3812 - MISCELLANEOUS Object: 3813 - SALE OF GOODS 0.00 0.00 4,773.75 0.000.00 0.00 0.00% 0.00 0.00 0.00%SALE OF GOODS620-00-9620-3813 Total Object: 3813 - SALE OF GOODS:0.00% 0.00%0.000.00 0.00 0.00 0.004,773.750.000.00 Object: 3816 - REFUND & REIMBRS 0.00 0.00 9,568.94 0.000.00 0.00 0.00% 0.00 0.00 0.00%REFUND & REIMBRS620-80-3100-3816 Total Object: 3816 - REFUND & REIMBRS:0.00% 0.00%0.000.00 0.00 0.00 0.009,568.940.000.00 Total Category: 3812 - MISCELLANEOUS:0.00% 0.00%0.000.00 0.00 0.00 0.0014,342.690.000.00 Category: 3999 - TRANSFERS IN Object: 3900 - CAPITAL CONTRIBUTIONS 5,667,834.00 3,409,406.00 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%CAPITAL CONTRIBUTIONS620-00-9620-3900 Total Object: 3900 - CAPITAL CONTRIBUTIONS:0.00% 0.00%0.000.00 0.00 0.00 0.000.003,409,406.005,667,834.00 Total Category: 3999 - TRANSFERS IN:0.00% 0.00%0.000.00 0.00 0.00 0.000.003,409,406.005,667,834.00 Total Revenue: 4,718,890.001,574,702.83 4,244,570.00 474,320.00 11.17% 5,064,542.00 345,652.00 7.32%7,585,322.809,417,163.89 Expense Category: 4100 - PERSONAL SERVICES Object: 4100 - SALARY-FULL TIME 111,181.65 153,765.96 52,298.27 223,100.00208,600.00 14,500.00 6.95% 231,125.00 8,025.00 3.60%SALARY-FULL TIME620-80-3100-4100 70,506.53 94,207.43 60,004.14 175,200.00148,600.00 26,600.00 17.90% 183,800.00 8,600.00 4.91%SALARY-FULL TIME620-81-3160-4100 Total Object: 4100 - SALARY-FULL TIME:11.51% 4.17%398,300.00357,200.00 41,100.00 414,925.00 16,625.00112,302.41247,973.39181,688.18 Object: 4110 - OVERTIME F. T. 2,724.67 2,322.41 574.68 3,700.003,500.00 200.00 5.71% 3,800.00 100.00 2.70%OVERTIME F. T.620-80-3100-4110 Total Object: 4110 - OVERTIME F. T.:5.71% 2.70%3,700.003,500.00 200.00 3,800.00 100.00574.682,322.412,724.67 Object: 4115 - REGULAR-P/T REG STATUS 0.00 0.00 0.00 12,500.0010,100.00 2,400.00 23.76% 12,950.00 450.00 3.60%REGULAR-P/T REG STATUS620-80-3100-4115 Total Object: 4115 - REGULAR-P/T REG STATUS:23.76% 3.60%12,500.0010,100.00 2,400.00 12,950.00 450.000.000.000.00 Object: 4120 - SAL-P.T./TEMP 0.00 0.00 1,873.58 0.000.00 0.00 0.00% 0.00 0.00 0.00%SAL-P.T./TEMP620-80-3100-4120 Total Object: 4120 - SAL-P.T./TEMP:0.00% 0.00%0.000.00 0.00 0.00 0.001,873.580.000.00 Object: 4138 - MN PAID LEAVE 0.00 0.00 0.00 1,100.000.00 1,100.00 0.00% 1,100.00 0.00 0.00%MN PAID LEAVE620-80-3100-4138 Budget Comparison Report 7/24/2025 4:04:49 PM Page 3 of 11 2023 Total AcƟvity 2024 Total AcƟvity Account Number 2025 YTD AcƟvity Through May 2025 2025 2026 2026 Parent Budget Comparison 1 Budget Comparison 1 to Parent % 2027 2027 FALL 2025 Comparison 2 Budget Comparison 2 to Comparison % Increase / (Decrease) Increase / (Decrease) 0.00 0.00 0.00 800.000.00 800.00 0.00% 800.00 0.00 0.00%MN PAID LEAVE620-81-3160-4138 Total Object: 4138 - MN PAID LEAVE:0.00% 0.00%1,900.000.00 1,900.00 1,900.00 0.000.000.000.00 Object: 4140 - PENSIONS -6,690.00 -3,336.00 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%PENSIONS620-80-3100-4140 Total Object: 4140 - PENSIONS:0.00% 0.00%0.000.00 0.00 0.00 0.000.00-3,336.00-6,690.00 Object: 4141 - PERA 9,507.07 11,121.54 4,084.69 17,900.0016,700.00 1,200.00 7.19% 14,225.00 -3,675.00 -20.53%PERA620-80-3100-4141 5,286.39 7,100.95 4,591.44 13,100.0011,100.00 2,000.00 18.02% 13,800.00 700.00 5.34%PERA620-81-3160-4141 Total Object: 4141 - PERA:11.51% -9.60%31,000.0027,800.00 3,200.00 28,025.00 -2,975.008,676.1318,222.4914,793.46 Object: 4142 - FICA 8,996.94 10,762.30 4,058.35 18,400.0016,900.00 1,500.00 8.88% 16,300.00 -2,100.00 -11.41%FICA620-80-3100-4142 5,292.62 6,987.03 4,538.50 13,400.0011,300.00 2,100.00 18.58% 14,100.00 700.00 5.22%FICA620-81-3160-4142 Total Object: 4142 - FICA:12.77% -4.40%31,800.0028,200.00 3,600.00 30,400.00 -1,400.008,596.8517,749.3314,289.56 Object: 4144 - HEALTH INSURANCE 25,221.00 30,544.00 13,729.15 35,950.0032,950.00 3,000.00 9.10% 32,200.00 -3,750.00 -10.43%HEALTH INSURANCE620-80-3100-4144 16,200.00 24,000.00 11,000.00 28,800.0026,400.00 2,400.00 9.09% 31,600.00 2,800.00 9.72%HEALTH INSURANCE620-81-3160-4144 Total Object: 4144 - HEALTH INSURANCE:9.10% -1.47%64,750.0059,350.00 5,400.00 63,800.00 -950.0024,729.1554,544.0041,421.00 Object: 4148 - WORKERS COMP 4,500.00 5,500.00 3,083.35 6,100.007,400.00 -1,300.00 -17.57% 6,200.00 100.00 1.64%WORKERS COMP620-80-3100-4148 600.00 800.00 416.65 800.001,000.00 -200.00 -20.00% 800.00 0.00 0.00%WORKERS COMP620-81-3160-4148 Total Object: 4148 - WORKERS COMP:-17.86% 1.45%6,900.008,400.00 -1,500.00 7,000.00 100.003,500.006,300.005,100.00 Total Category: 4100 - PERSONAL SERVICES:11.38% 2.17%550,850.00494,550.00 56,300.00 562,800.00 11,950.00160,252.80343,775.62253,326.87 Category: 4200 - COMMODITIES Object: 4200 - OFFICE SUPPLIES 0.00 112.87 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%OFFICE SUPPLIES620-81-3160-4200 Total Object: 4200 - OFFICE SUPPLIES:0.00% 0.00%0.000.00 0.00 0.00 0.000.00112.870.00 Object: 4210 - OP SUPPLY-OTHER 5,454.85 13,140.29 6,080.37 4,100.004,000.00 100.00 2.50% 4,220.00 120.00 2.93%OP SUPPLY-OTHER620-80-3100-4210 0.00 0.00 0.00 2,050.002,000.00 50.00 2.50% 2,110.00 60.00 2.93%OP SUPPLY-OTHER620-80-3135-4210 0.00 0.00 81.54 0.000.00 0.00 0.00% 0.00 0.00 0.00%OP SUPPLY-OTHER620-81-3160-4210 Total Object: 4210 - OP SUPPLY-OTHER:2.50% 2.93%6,150.006,000.00 150.00 6,330.00 180.006,161.9113,140.295,454.85 Object: 4211 - MOTOR FUELS 6,019.23 5,001.94 1,019.64 6,660.006,860.00 -200.00 -2.92% 6,730.00 70.00 1.05%MOTOR FUELS620-80-3100-4211 Total Object: 4211 - MOTOR FUELS:-2.92% 1.05%6,660.006,860.00 -200.00 6,730.00 70.001,019.645,001.946,019.23 Budget Comparison Report 7/24/2025 4:04:49 PM Page 4 of 11 2023 Total AcƟvity 2024 Total AcƟvity Account Number 2025 YTD AcƟvity Through May 2025 2025 2026 2026 Parent Budget Comparison 1 Budget Comparison 1 to Parent % 2027 2027 FALL 2025 Comparison 2 Budget Comparison 2 to Comparison % Increase / (Decrease) Increase / (Decrease) Object: 4216 - FERTILIZER/CHEM 625.23 1,434.65 0.00 3,690.003,600.00 90.00 2.50% 3,800.00 110.00 2.98%FERTILIZER/CHEM620-80-3100-4216 Total Object: 4216 - FERTILIZER/CHEM:2.50% 2.98%3,690.003,600.00 90.00 3,800.00 110.000.001,434.65625.23 Object: 4217 - CLOTHING/UNIFORM 354.06 697.14 0.00 1,380.001,350.00 30.00 2.22% 1,420.00 40.00 2.90%CLOTHING/UNIFORM620-80-3100-4217 Total Object: 4217 - CLOTHING/UNIFORM:2.22% 2.90%1,380.001,350.00 30.00 1,420.00 40.000.00697.14354.06 Object: 4231 - SMALL TOOLS 710.65 0.00 3,380.23 1,030.001,000.00 30.00 3.00% 1,060.00 30.00 2.91%SMALL TOOLS620-80-3100-4231 Total Object: 4231 - SMALL TOOLS:3.00% 2.91%1,030.001,000.00 30.00 1,060.00 30.003,380.230.00710.65 Object: 4271 - OP SUP-OTHER IMP 0.00 417.87 722.01 2,640.002,580.00 60.00 2.33% 2,720.00 80.00 3.03%OP SUP-OTHER IMP620-80-3100-4271 Total Object: 4271 - OP SUP-OTHER IMP:2.33% 3.03%2,640.002,580.00 60.00 2,720.00 80.00722.01417.870.00 Object: 4272 - OP SUP-BUILDINGS 0.00 0.00 0.00 820.00800.00 20.00 2.50% 840.00 20.00 2.44%OP SUP-BUILDINGS620-80-3135-4272 Total Object: 4272 - OP SUP-BUILDINGS:2.50% 2.44%820.00800.00 20.00 840.00 20.000.000.000.00 Object: 4280 - CAPITAL OUTLAY <$5,000 0.00 580.22 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%CAPITAL OUTLAY <$5,000620-80-3100-4280 0.00 1,300.00 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%CAPITAL OUTLAY <$5,000620-81-3160-4280 Total Object: 4280 - CAPITAL OUTLAY <$5,000:0.00% 0.00%0.000.00 0.00 0.00 0.000.001,880.220.00 Total Category: 4200 - COMMODITIES:0.81% 2.37%22,370.0022,190.00 180.00 22,900.00 530.0011,283.7922,684.9813,164.02 Category: 4300 - CONTRACTUAL SERVICES Object: 4300 - PROF SERVICES 11,268.50 14,294.20 14,828.00 12,730.0012,420.00 310.00 2.50% 13,100.00 370.00 2.91%PROF SERVICES620-80-3100-4300 925.42 9,098.94 3,816.68 0.000.00 0.00 0.00% 0.00 0.00 0.00%PROF SERVICES620-81-3160-4300 Total Object: 4300 - PROF SERVICES:2.50% 2.91%12,730.0012,420.00 310.00 13,100.00 370.0018,644.6823,393.1412,193.92 Object: 4301 - ENGINEERING SVS 6,454.80 9,664.14 2,365.75 29,130.0028,420.00 710.00 2.50% 29,980.00 850.00 2.92%ENGINEERING SVS620-80-3100-4301 Total Object: 4301 - ENGINEERING SVS:2.50% 2.92%29,130.0028,420.00 710.00 29,980.00 850.002,365.759,664.146,454.80 Object: 4302 - LEGAL SERVICE 988.00 288.00 272.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%LEGAL SERVICE620-80-3100-4302 Total Object: 4302 - LEGAL SERVICE:0.00% 0.00%0.000.00 0.00 0.00 0.00272.00288.00988.00 Object: 4305 - FEES FOR SERVICE 100.00 550.00 0.00 110.00110.00 0.00 0.00% 110.00 0.00 0.00%FEES FOR SERVICE620-80-3100-4305 0.00 0.00 0.00 3,080.003,000.00 80.00 2.67% 3,170.00 90.00 2.92%FEES FOR SERVICE620-80-3135-4305 14,259.00 14,255.00 87.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%FEES FOR SERVICE620-81-3160-4305 Total Object: 4305 - FEES FOR SERVICE:2.57% 2.82%3,190.003,110.00 80.00 3,280.00 90.0087.0014,805.0014,359.00 Budget Comparison Report 7/24/2025 4:04:49 PM Page 5 of 11 2023 Total AcƟvity 2024 Total AcƟvity Account Number 2025 YTD AcƟvity Through May 2025 2025 2026 2026 Parent Budget Comparison 1 Budget Comparison 1 to Parent % 2027 2027 FALL 2025 Comparison 2 Budget Comparison 2 to Comparison % Increase / (Decrease) Increase / (Decrease) Object: 4309 - CREDIT CARD FEES 34,166.04 55,399.75 26,577.24 72,600.0052,500.00 20,100.00 38.29% 72,600.00 0.00 0.00%CREDIT CARD FEES620-81-3160-4309 Total Object: 4309 - CREDIT CARD FEES:38.29% 0.00%72,600.0052,500.00 20,100.00 72,600.00 0.0026,577.2455,399.7534,166.04 Object: 4310 - COMMUNICATION 682.02 275.32 117.05 700.00680.00 20.00 2.94% 720.00 20.00 2.86%COMMUNICATION620-80-3100-4310 Total Object: 4310 - COMMUNICATION:2.94% 2.86%700.00680.00 20.00 720.00 20.00117.05275.32682.02 Object: 4311 - POSTAGE 24,900.00 25,780.00 11,175.72 35,340.0025,000.00 10,340.00 41.36% 35,340.00 0.00 0.00%POSTAGE620-81-3160-4311 Total Object: 4311 - POSTAGE:41.36% 0.00%35,340.0025,000.00 10,340.00 35,340.00 0.0011,175.7225,780.0024,900.00 Object: 4321 - DATA PROCESSING 152,194.00 165,811.00 78,992.65 129,900.00149,800.00 -19,900.00 -13.28% 125,900.00 -4,000.00 -3.08%DATA PROCESSING620-81-3160-4321 Total Object: 4321 - DATA PROCESSING:-13.28% -3.08%129,900.00149,800.00 -19,900.00 125,900.00 -4,000.0078,992.65165,811.00152,194.00 Object: 4340 - PRINTING 12,633.00 12,633.00 4,012.83 9,355.0020,000.00 -10,645.00 -53.23% 9,355.00 0.00 0.00%PRINTING620-81-3160-4340 Total Object: 4340 - PRINTING:-53.23% 0.00%9,355.0020,000.00 -10,645.00 9,355.00 0.004,012.8312,633.0012,633.00 Object: 4341 - ADVER/PUBLISH 0.00 0.00 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%ADVER/PUBLISH620-00-7280-4341 Total Object: 4341 - ADVER/PUBLISH:0.00% 0.00%0.000.00 0.00 0.00 0.000.000.000.00 Object: 4350 - INSURANCE CHARGE 17,000.00 25,500.00 11,708.35 26,700.0028,100.00 -1,400.00 -4.98% 28,000.00 1,300.00 4.87%INSURANCE CHARGE620-80-3100-4350 0.00 0.00 2,125.00 0.005,100.00 -5,100.00 -100.00% 0.00 0.00 0.00%INSURANCE CHARGE620-80-3135-4350 Total Object: 4350 - INSURANCE CHARGE:-19.58% 4.87%26,700.0033,200.00 -6,500.00 28,000.00 1,300.0013,833.3525,500.0017,000.00 Object: 4360 - UTILITIES 3,009.15 19,063.41 832.28 25,320.0024,700.00 620.00 2.51% 26,060.00 740.00 2.92%UTILITIES620-80-3100-4360 0.00 0.00 1,562.86 14,450.0014,100.00 350.00 2.48% 14,870.00 420.00 2.91%UTILITIES620-80-3135-4360 Total Object: 4360 - UTILITIES:2.50% 2.92%39,770.0038,800.00 970.00 40,930.00 1,160.002,395.1419,063.413,009.15 Object: 4363 - MWCC SERVICE 2,647,616.64 2,752,566.72 1,444,861.32 3,070,864.002,890,000.00 180,864.00 6.26% 3,224,410.00 153,546.00 5.00%MWCC SERVICE620-80-3100-4363 Total Object: 4363 - MWCC SERVICE:6.26% 5.00%3,070,864.002,890,000.00 180,864.00 3,224,410.00 153,546.001,444,861.322,752,566.722,647,616.64 Object: 4370 - MAINT-REPAIR/EQ 0.00 0.00 0.00 3,900.003,800.00 100.00 2.63% 4,010.00 110.00 2.82%MAINT-REPAIR/EQ620-80-3135-4370 Total Object: 4370 - MAINT-REPAIR/EQ:2.63% 2.82%3,900.003,800.00 100.00 4,010.00 110.000.000.000.00 Object: 4371 - MAINT-REPAIR/OTH 143,099.66 182,098.79 65,505.68 214,230.00209,000.00 5,230.00 2.50% 220,500.00 6,270.00 2.93%MAINT-REPAIR/OTH620-80-3100-4371 Total Object: 4371 - MAINT-REPAIR/OTH:2.50% 2.93%214,230.00209,000.00 5,230.00 220,500.00 6,270.0065,505.68182,098.79143,099.66 Budget Comparison Report 7/24/2025 4:04:49 PM Page 6 of 11 2023 Total AcƟvity 2024 Total AcƟvity Account Number 2025 YTD AcƟvity Through May 2025 2025 2026 2026 Parent Budget Comparison 1 Budget Comparison 1 to Parent % 2027 2027 FALL 2025 Comparison 2 Budget Comparison 2 to Comparison % Increase / (Decrease) Increase / (Decrease) Object: 4372 - MAINT-REPAIR/BLD 32,240.25 8,770.84 2,915.01 19,370.0018,900.00 470.00 2.49% 19,940.00 570.00 2.94%MAINT-REPAIR/BLD620-80-3100-4372 0.00 0.00 0.00 5,740.005,600.00 140.00 2.50% 5,910.00 170.00 2.96%MAINT-REPAIR/BLD620-80-3135-4372 Total Object: 4372 - MAINT-REPAIR/BLD:2.49% 2.95%25,110.0024,500.00 610.00 25,850.00 740.002,915.018,770.8432,240.25 Object: 4373 - BUILDING MAINTENANCE LABOR ALLOCATION 0.00 41,925.00 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%620-80-3100-4373 0.00 0.00 14,208.35 37,000.009,400.00 27,600.00 293.62% 38,200.00 1,200.00 3.24%620-80-3135-4373 Total Object: 4373 - BUILDING MAINTENANCE LABOR ALLOC 293.62% 3.24%37,000.009,400.00 27,600.00 38,200.00 1,200.0014,208.3541,925.000.00 Object: 4375 - CHARGE-FLEET MNT 16,457.60 9,454.55 10,342.37 29,715.0028,300.00 1,415.00 5.00% 31,200.00 1,485.00 5.00%CHARGE-FLEET MNT620-80-3102-4375 Total Object: 4375 - CHARGE-FLEET MNT:5.00% 5.00%29,715.0028,300.00 1,415.00 31,200.00 1,485.0010,342.379,454.5516,457.60 Object: 4380 - RENTAL/LEASE 0.00 0.00 356.20 820.00800.00 20.00 2.50% 840.00 20.00 2.44%RENTAL/LEASE620-80-3135-4380 Total Object: 4380 - RENTAL/LEASE:2.50% 2.44%820.00800.00 20.00 840.00 20.00356.200.000.00 Object: 4403 - TRAVEL/TRAIN/CON 1,063.00 3,038.02 695.00 2,150.002,100.00 50.00 2.38% 2,210.00 60.00 2.79%TRAVEL/TRAIN/CON620-80-3100-4403 0.00 0.00 1,315.88 3,100.000.00 3,100.00 0.00% 3,200.00 100.00 3.23%TRAVEL/TRAIN/CON620-81-3160-4403 Total Object: 4403 - TRAVEL/TRAIN/CON:150.00% 3.05%5,250.002,100.00 3,150.00 5,410.00 160.002,010.883,038.021,063.00 Object: 4405 - CLEAN/WASTE REMV 0.00 9,425.50 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%CLEAN/WASTE REMV620-80-3100-4405 0.00 0.00 0.00 3,900.003,800.00 100.00 2.63% 4,010.00 110.00 2.82%CLEAN/WASTE REMV620-80-3135-4405 Total Object: 4405 - CLEAN/WASTE REMV:2.63% 2.82%3,900.003,800.00 100.00 4,010.00 110.000.009,425.500.00 Object: 4449 - OTHER CONTRACT 0.00 60.75 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%OTHER CONTRACT620-80-3100-4449 Total Object: 4449 - OTHER CONTRACT:0.00% 0.00%0.000.00 0.00 0.00 0.000.0060.750.00 Total Category: 4300 - CONTRACTUAL SERVICES:6.07% 4.36%3,750,204.003,535,630.00 214,574.00 3,913,635.00 163,431.001,698,673.223,359,952.933,119,057.08 Category: 4500 - CAPITAL OUTLAY Object: 4530 - MACH & EQUIPMENT 0.00 0.00 0.00 0.00350,000.00 -350,000.00 -100.00% 0.00 0.00 0.00%MACH & EQUIPMENT620-80-3100-4530 Total Object: 4530 - MACH & EQUIPMENT:-100.00% 0.00%0.00350,000.00 -350,000.00 0.00 0.000.000.000.00 Object: 4550 - PROJECT-CONTRACT 239.50 0.00 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%PROJECT-CONTRACT620-80-3100-4550 Total Object: 4550 - PROJECT-CONTRACT:0.00% 0.00%0.000.00 0.00 0.00 0.000.000.00239.50 Object: 4551 - PROJECT-ENGINEER 0.00 0.00 15,017.50 0.000.00 0.00 0.00% 0.00 0.00 0.00%PROJECT-ENGINEER620-00-7280-4551 Total Object: 4551 - PROJECT-ENGINEER:0.00% 0.00%0.000.00 0.00 0.00 0.0015,017.500.000.00 Budget Comparison Report 7/24/2025 4:04:49 PM Page 7 of 11 2023 Total AcƟvity 2024 Total AcƟvity Account Number 2025 YTD AcƟvity Through May 2025 2025 2026 2026 Parent Budget Comparison 1 Budget Comparison 1 to Parent % 2027 2027 FALL 2025 Comparison 2 Budget Comparison 2 to Comparison % Increase / (Decrease) Increase / (Decrease) Object: 4554 - PROJECT-ROW/EASE 1,187.00 0.00 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%PROJECT-ROW/EASE620-80-3100-4554 Total Object: 4554 - PROJECT-ROW/EASE:0.00% 0.00%0.000.00 0.00 0.00 0.000.000.001,187.00 Object: 4559 - PROJECT-OTHER 0.00 0.00 287.47 0.000.00 0.00 0.00% 0.00 0.00 0.00%PROJECT-OTHER620-00-7280-4559 425.00 0.00 475.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%PROJECT-OTHER620-80-3100-4559 Total Object: 4559 - PROJECT-OTHER:0.00% 0.00%0.000.00 0.00 0.00 0.00762.470.00425.00 Total Category: 4500 - CAPITAL OUTLAY:-100.00% 0.00%0.00350,000.00 -350,000.00 0.00 0.0015,779.970.001,851.50 Category: 4600 - OTHER FINANCING USES Object: 4610 - INTEREST 0.00 82,645.00 0.00 118,500.000.00 118,500.00 0.00% 114,500.00 -4,000.00 -3.38%INTEREST620-00-9620-4610 Total Object: 4610 - INTEREST:0.00% -3.38%118,500.000.00 118,500.00 114,500.00 -4,000.000.0082,645.000.00 Object: 4621 - BOND ISSUANCE COSTS 0.00 26,690.32 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%BOND ISSUANCE COSTS620-00-9620-4621 Total Object: 4621 - BOND ISSUANCE COSTS:0.00% 0.00%0.000.00 0.00 0.00 0.000.0026,690.320.00 Total Category: 4600 - OTHER FINANCING USES:0.00% -3.38%118,500.000.00 118,500.00 114,500.00 -4,000.000.00109,335.320.00 Category: 4720 - DEPRECIATION Object: 4720 - DEPRECIATION-CONTRIBUTED 804,780.49 0.00 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%DEPRECIATION-CONTRIBUTED620-00-9620-4720 Total Object: 4720 - DEPRECIATION-CONTRIBUTED:0.00% 0.00%0.000.00 0.00 0.00 0.000.000.00804,780.49 Object: 4721 - DEPRECIATION-PURCHASED 141,223.68 1,031,179.31 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%DEPRECIATION-PURCHASED620-00-9620-4721 Total Object: 4721 - DEPRECIATION-PURCHASED:0.00% 0.00%0.000.00 0.00 0.00 0.000.001,031,179.31141,223.68 Total Category: 4720 - DEPRECIATION:0.00% 0.00%0.000.00 0.00 0.00 0.000.001,031,179.31946,004.17 Category: 4999 - TRANSFERS OUT Object: 4700 - TRANSFERS OUT 446,740.96 225,558.46 87,437.50 216,150.00209,850.00 6,300.00 3.00% 222,600.00 6,450.00 2.98%TRANSFERS OUT620-00-9620-4700 Total Object: 4700 - TRANSFERS OUT:3.00% 2.98%216,150.00209,850.00 6,300.00 222,600.00 6,450.0087,437.50225,558.46446,740.96 Total Category: 4999 - TRANSFERS OUT:3.00% 2.98%216,150.00209,850.00 6,300.00 222,600.00 6,450.0087,437.50225,558.46446,740.96 Total Expense: 4,658,074.001,973,427.28 4,612,220.00 45,854.00 0.99% 4,836,435.00 178,361.00 3.83%5,092,486.624,780,144.60 Total Fund: 620 - SEWER OPERATING:60,816.00-398,724.45 -367,650.00 428,466.00 -116.54% 228,107.00 167,291.00 275.08%2,492,836.184,637,019.29 Report Total:-116.54% 275.08%60,816.00-398,724.45 -367,650.00 428,466.00 228,107.00 167,291.002,492,836.184,637,019.29 Budget Comparison Report 7/24/2025 4:04:49 PM Page 8 of 11 Group Summary Object 2023 Total AcƟvity 2024 Total AcƟvity 2025 YTD AcƟvity Through May 2025 2025 2026 2026 Parent Budget Comparison 1 Budget Comparison 1 to Parent % 2027 2027 FALL 2025 Comparison 2 Budget Comparison 2 to Comparison % Increase / (Decrease) Increase / (Decrease) Fund: 620 - SEWER OPERATING Revenue Category: 3030 - SPECIAL ASSESSMENTS 3044 - MISC PEN & INT 20.00% 0.00%3,000.002,500.00 500.00 3,000.00 0.000.002,158.292,953.32 Total Category: 3030 - SPECIAL ASSESSMENTS:20.00% 0.00%3,000.002,500.00 500.00 3,000.00 0.000.002,158.292,953.32 Category: 3400 - CHARGES FOR SERVICES 3525 - CREDIT CARD RECOVER 0.00% 0.00%32,940.000.00 32,940.00 32,940.00 0.000.000.000.00 Total Category: 3400 - CHARGES FOR SERVICES:0.00% 0.00%32,940.000.00 32,940.00 32,940.00 0.000.000.000.00 Category: 3710 - ENTERPRISE CHARGES FOR SERVICES 3724 - SEWER SERVICE 10.53% 7.60%4,577,000.004,140,870.00 436,130.00 4,924,852.00 347,852.001,457,937.843,930,684.583,573,621.28 3727 - PENALTIES-UTIL 33.33% 0.00%40,000.0030,000.00 10,000.00 40,000.00 0.005,393.2447,155.7926,835.02 3739 - MISC UTIL -6.67% 0.00%14,000.0015,000.00 -1,000.00 14,000.00 0.003,404.4510,784.90-29,093.25 Total Category: 3710 - ENTERPRISE CHARGES FOR SERVICES:10.63% 7.51%4,631,000.004,185,870.00 445,130.00 4,978,852.00 347,852.001,466,735.533,988,625.273,571,363.05 Category: 3809 - INVESTMENT INTEREST 3809 - INTERFUND INTRST -11.20% -12.32%17,050.0019,200.00 -2,150.00 14,950.00 -2,100.000.0021,250.0023,350.00 3810 - INVEST INTEREST -5.68% -0.29%34,900.0037,000.00 -2,100.00 34,800.00 -100.0093,624.61163,883.24151,663.52 Total Category: 3809 - INVESTMENT INTEREST:-7.56% -4.23%51,950.0056,200.00 -4,250.00 49,750.00 -2,200.0093,624.61185,133.24175,013.52 Category: 3812 - MISCELLANEOUS 3813 - SALE OF GOODS 0.00% 0.00%0.000.00 0.00 0.00 0.004,773.750.000.00 3816 - REFUND & REIMBRS 0.00% 0.00%0.000.00 0.00 0.00 0.009,568.940.000.00 Total Category: 3812 - MISCELLANEOUS:0.00% 0.00%0.000.00 0.00 0.00 0.0014,342.690.000.00 Category: 3999 - TRANSFERS IN 3900 - CAPITAL CONTRIBUTIONS 0.00% 0.00%0.000.00 0.00 0.00 0.000.003,409,406.005,667,834.00 Total Category: 3999 - TRANSFERS IN:0.00% 0.00%0.000.00 0.00 0.00 0.000.003,409,406.005,667,834.00 Total Revenue: 4,718,890.001,574,702.83 4,244,570.00 474,320.00 11.17% 5,064,542.00 345,652.00 7.32%7,585,322.809,417,163.89 Expense Category: 4100 - PERSONAL SERVICES 4100 - SALARY-FULL TIME 11.51% 4.17%398,300.00357,200.00 41,100.00 414,925.00 16,625.00112,302.41247,973.39181,688.18 4110 - OVERTIME F. T.5.71% 2.70%3,700.003,500.00 200.00 3,800.00 100.00574.682,322.412,724.67 4115 - REGULAR-P/T REG STATUS 23.76% 3.60%12,500.0010,100.00 2,400.00 12,950.00 450.000.000.000.00 4120 - SAL-P.T./TEMP 0.00% 0.00%0.000.00 0.00 0.00 0.001,873.580.000.00 4138 - MN PAID LEAVE 0.00% 0.00%1,900.000.00 1,900.00 1,900.00 0.000.000.000.00 4140 - PENSIONS 0.00% 0.00%0.000.00 0.00 0.00 0.000.00-3,336.00-6,690.00 4141 - PERA 11.51% -9.60%31,000.0027,800.00 3,200.00 28,025.00 -2,975.008,676.1318,222.4914,793.46 4142 - FICA 12.77% -4.40%31,800.0028,200.00 3,600.00 30,400.00 -1,400.008,596.8517,749.3314,289.56 Budget Comparison Report 7/24/2025 4:04:49 PM Page 9 of 11 Object 2023 Total AcƟvity 2024 Total AcƟvity 2025 YTD AcƟvity Through May 2025 2025 2026 2026 Parent Budget Comparison 1 Budget Comparison 1 to Parent % 2027 2027 FALL 2025 Comparison 2 Budget Comparison 2 to Comparison % Increase / (Decrease) Increase / (Decrease) 4144 - HEALTH INSURANCE 9.10% -1.47%64,750.0059,350.00 5,400.00 63,800.00 -950.0024,729.1554,544.0041,421.00 4148 - WORKERS COMP -17.86% 1.45%6,900.008,400.00 -1,500.00 7,000.00 100.003,500.006,300.005,100.00 Total Category: 4100 - PERSONAL SERVICES:11.38% 2.17%550,850.00494,550.00 56,300.00 562,800.00 11,950.00160,252.80343,775.62253,326.87 Category: 4200 - COMMODITIES 4200 - OFFICE SUPPLIES 0.00% 0.00%0.000.00 0.00 0.00 0.000.00112.870.00 4210 - OP SUPPLY-OTHER 2.50% 2.93%6,150.006,000.00 150.00 6,330.00 180.006,161.9113,140.295,454.85 4211 - MOTOR FUELS -2.92% 1.05%6,660.006,860.00 -200.00 6,730.00 70.001,019.645,001.946,019.23 4216 - FERTILIZER/CHEM 2.50% 2.98%3,690.003,600.00 90.00 3,800.00 110.000.001,434.65625.23 4217 - CLOTHING/UNIFORM 2.22% 2.90%1,380.001,350.00 30.00 1,420.00 40.000.00697.14354.06 4231 - SMALL TOOLS 3.00% 2.91%1,030.001,000.00 30.00 1,060.00 30.003,380.230.00710.65 4271 - OP SUP-OTHER IMP 2.33% 3.03%2,640.002,580.00 60.00 2,720.00 80.00722.01417.870.00 4272 - OP SUP-BUILDINGS 2.50% 2.44%820.00800.00 20.00 840.00 20.000.000.000.00 4280 - CAPITAL OUTLAY <$5,000 0.00% 0.00%0.000.00 0.00 0.00 0.000.001,880.220.00 Total Category: 4200 - COMMODITIES:0.81% 2.37%22,370.0022,190.00 180.00 22,900.00 530.0011,283.7922,684.9813,164.02 Category: 4300 - CONTRACTUAL SERVICES 4300 - PROF SERVICES 2.50% 2.91%12,730.0012,420.00 310.00 13,100.00 370.0018,644.6823,393.1412,193.92 4301 - ENGINEERING SVS 2.50% 2.92%29,130.0028,420.00 710.00 29,980.00 850.002,365.759,664.146,454.80 4302 - LEGAL SERVICE 0.00% 0.00%0.000.00 0.00 0.00 0.00272.00288.00988.00 4305 - FEES FOR SERVICE 2.57% 2.82%3,190.003,110.00 80.00 3,280.00 90.0087.0014,805.0014,359.00 4309 - CREDIT CARD FEES 38.29% 0.00%72,600.0052,500.00 20,100.00 72,600.00 0.0026,577.2455,399.7534,166.04 4310 - COMMUNICATION 2.94% 2.86%700.00680.00 20.00 720.00 20.00117.05275.32682.02 4311 - POSTAGE 41.36% 0.00%35,340.0025,000.00 10,340.00 35,340.00 0.0011,175.7225,780.0024,900.00 4321 - DATA PROCESSING -13.28% -3.08%129,900.00149,800.00 -19,900.00 125,900.00 -4,000.0078,992.65165,811.00152,194.00 4340 - PRINTING -53.23% 0.00%9,355.0020,000.00 -10,645.00 9,355.00 0.004,012.8312,633.0012,633.00 4341 - ADVER/PUBLISH 0.00% 0.00%0.000.00 0.00 0.00 0.000.000.000.00 4350 - INSURANCE CHARGE -19.58% 4.87%26,700.0033,200.00 -6,500.00 28,000.00 1,300.0013,833.3525,500.0017,000.00 4360 - UTILITIES 2.50% 2.92%39,770.0038,800.00 970.00 40,930.00 1,160.002,395.1419,063.413,009.15 4363 - MWCC SERVICE 6.26% 5.00%3,070,864.002,890,000.00 180,864.00 3,224,410.00 153,546.001,444,861.322,752,566.722,647,616.64 4370 - MAINT-REPAIR/EQ 2.63% 2.82%3,900.003,800.00 100.00 4,010.00 110.000.000.000.00 4371 - MAINT-REPAIR/OTH 2.50% 2.93%214,230.00209,000.00 5,230.00 220,500.00 6,270.0065,505.68182,098.79143,099.66 4372 - MAINT-REPAIR/BLD 2.49% 2.95%25,110.0024,500.00 610.00 25,850.00 740.002,915.018,770.8432,240.25 4373 - BUILDING MAINTENANCE LABOR ALLOCATION 293.62% 3.24%37,000.009,400.00 27,600.00 38,200.00 1,200.0014,208.3541,925.000.00 4375 - CHARGE-FLEET MNT 5.00% 5.00%29,715.0028,300.00 1,415.00 31,200.00 1,485.0010,342.379,454.5516,457.60 4380 - RENTAL/LEASE 2.50% 2.44%820.00800.00 20.00 840.00 20.00356.200.000.00 4403 - TRAVEL/TRAIN/CON 150.00% 3.05%5,250.002,100.00 3,150.00 5,410.00 160.002,010.883,038.021,063.00 4405 - CLEAN/WASTE REMV 2.63% 2.82%3,900.003,800.00 100.00 4,010.00 110.000.009,425.500.00 4449 - OTHER CONTRACT 0.00% 0.00%0.000.00 0.00 0.00 0.000.0060.750.00 Total Category: 4300 - CONTRACTUAL SERVICES:6.07% 4.36%3,750,204.003,535,630.00 214,574.00 3,913,635.00 163,431.001,698,673.223,359,952.933,119,057.08 Budget Comparison Report 7/24/2025 4:04:49 PM Page 10 of 11 Object 2023 Total AcƟvity 2024 Total AcƟvity 2025 YTD AcƟvity Through May 2025 2025 2026 2026 Parent Budget Comparison 1 Budget Comparison 1 to Parent % 2027 2027 FALL 2025 Comparison 2 Budget Comparison 2 to Comparison % Increase / (Decrease) Increase / (Decrease) Category: 4500 - CAPITAL OUTLAY 4530 - MACH & EQUIPMENT -100.00% 0.00%0.00350,000.00 -350,000.00 0.00 0.000.000.000.00 4550 - PROJECT-CONTRACT 0.00% 0.00%0.000.00 0.00 0.00 0.000.000.00239.50 4551 - PROJECT-ENGINEER 0.00% 0.00%0.000.00 0.00 0.00 0.0015,017.500.000.00 4554 - PROJECT-ROW/EASE 0.00% 0.00%0.000.00 0.00 0.00 0.000.000.001,187.00 4559 - PROJECT-OTHER 0.00% 0.00%0.000.00 0.00 0.00 0.00762.470.00425.00 Total Category: 4500 - CAPITAL OUTLAY:-100.00% 0.00%0.00350,000.00 -350,000.00 0.00 0.0015,779.970.001,851.50 Category: 4600 - OTHER FINANCING USES 4610 - INTEREST 0.00% -3.38%118,500.000.00 118,500.00 114,500.00 -4,000.000.0082,645.000.00 4621 - BOND ISSUANCE COSTS 0.00% 0.00%0.000.00 0.00 0.00 0.000.0026,690.320.00 Total Category: 4600 - OTHER FINANCING USES:0.00% -3.38%118,500.000.00 118,500.00 114,500.00 -4,000.000.00109,335.320.00 Category: 4720 - DEPRECIATION 4720 - DEPRECIATION-CONTRIBUTED 0.00% 0.00%0.000.00 0.00 0.00 0.000.000.00804,780.49 4721 - DEPRECIATION-PURCHASED 0.00% 0.00%0.000.00 0.00 0.00 0.000.001,031,179.31141,223.68 Total Category: 4720 - DEPRECIATION:0.00% 0.00%0.000.00 0.00 0.00 0.000.001,031,179.31946,004.17 Category: 4999 - TRANSFERS OUT 4700 - TRANSFERS OUT 3.00% 2.98%216,150.00209,850.00 6,300.00 222,600.00 6,450.0087,437.50225,558.46446,740.96 Total Category: 4999 - TRANSFERS OUT:3.00% 2.98%216,150.00209,850.00 6,300.00 222,600.00 6,450.0087,437.50225,558.46446,740.96 Total Expense: 4,658,074.001,973,427.28 4,612,220.00 45,854.00 0.99% 4,836,435.00 178,361.00 3.83%5,092,486.624,780,144.60 Total Fund: 620 - SEWER OPERATING:60,816.00-398,724.45 -367,650.00 428,466.00 -116.54% 228,107.00 167,291.00 275.08%2,492,836.184,637,019.29 Report Total:-116.54% 275.08%60,816.00-398,724.45 -367,650.00 428,466.00 228,107.00 167,291.002,492,836.184,637,019.29 Budget Comparison Report 7/24/2025 4:04:49 PM Page 11 of 11 Fund Summary Fund 2023 Total AcƟvity 2024 Total AcƟvity 2025 YTD AcƟvity Through May 2025 2025 2026 2026 Parent Budget Comparison 1 Budget Comparison 1 to Parent % 2027 2027 FALL 2025 Comparison 2 Budget Comparison 2 to Comparison % Increase / (Decrease) Increase / (Decrease) 620 - SEWER OPERATING 60,816.00-398,724.45 -367,650.00 428,466.00 -116.54% 228,107.00 167,291.00 275.08%2,492,836.184,637,019.29 Report Total:-116.54% 275.08%60,816.00-398,724.45 -367,650.00 428,466.00 228,107.00 167,291.002,492,836.184,637,019.29 To: Honorable Mayor and City Council Members Jennifer Levitt, City Administrator From: Brenda Malinowski, Finance Director Judy Afdahl, Assistant Finance Director Date: July 24, 2025 Subject: Water and Sewer Rates Introduction Rate studies for the water and sewer funds were completed in 2017 and 2022 by the consultant S.E.H. Since the most recent rate study has been completed in 2022, operating expenses and a possible change in funding the operation of our water treatment plants has prompted the need for a new study. Judy Afdahl, Assistant Finance Director, completed rates studies for both the water and sewer funds this summer. City staff including Ryan Burfeind, Rick Alt, Rich Moen, and Abigail Eucker contributed throughout the process. By completing the study internally, it will be easier to update and analyze the study as part of the budget process each year. City staff will be able to incorporate any new capital demands or changes in operations to provide a document that would support any increase to utility rates. As part of the rate studies, the following items were reviewed:  Review of O&M costs, 10-year capital costs, and cash flow reserves  Review debt service on new Utilities Building  Review historical data and determine trends, population, and connection increases  Review historical data for consumption trends including irrigation  Develop ten-year O&M cost projections  Identify future replacement schedules for meter replacement  Establish cost recovery of depreciation through an analysis of the next ten years of capital costs  Review impacts of various rate adjustments  Complete a comparison with other communities Discussion The rate study included 4% increases in personnel costs, 2.5% increases in commodities and contractual, and a 5% increase in the sewer MCES costs per year. Estimated operating costs for the new utilities building were included in the rate study. In addition, the following capital items need to be funded in the next ten years:  Water o Meter and radio replacement -Average of $300,000 per year o Well rehabilitation -Average of $104,000 per year o Pavement management water projects -Average of $335,000 per year including $1.5M project contribution in 2032 o Water tower painting of four towers -$1M to $2M per tower o Various other capital and vehicle replacements  Sewer o Sewer slip lining -$50,000 per year o 90th & Jamaica sewer slip lining -$1.5M in 2031 o Pavement management sewer projects -Average $225,000 per year The operating costs for the water treatment plants were also evaluated as part of the study since it is unknown if reimbursement for these operating costs will occur after July 2027. In the sewer fund, 6% annual rate increases are necessary to fund operations and capital needs in the next ten years. In the water fund, 6% annual rate increases are also necessary to fund operations and capital needs in the next ten years if not including water treatment plant operating costs. When adding the operation of the water treatment facilities, higher rate increases are needed. There were three options that staff considered: 2026 2027 2028 2029 2030 2031 2032 2033 Recommendation 10% 15% 15% 15% 6% 6% 6% 6% Scenario #2 6% 20% 15% 15% 6% 6% 6% 6% Scenario #3 6% 18% 17% 15% 6% 6% 6% 6% The staff recommendation has a more gradual impact on the utility customers. Rate Comparisons With the proposed rates, Cottage Grove still compares favorably to other cities. City staff has prepared rate comparisons for water, sewer, stormwater and the street light utility as well as a combined bill comparison. The total monthly residential bill comparison is shown below. Total Monthly Residential Bill (All Services) City 3,000 Gallons 6,000 Gallons 10,000 Gallons 15,000 Gallons Cottage Grove (Existing) $ 38.15 $ 55.07 $ 80.90 $ 120.44 Hastings $ 38.72 $ 58.15 $ 85.23 $ 125.08 Cottage Grove (Proposed) $ 40.65 $ 58.72 $ 86.43 $ 129.02 Woodbury $ 43.78 $ 62.53 $ 89.60 $ 127.05 Oakdale $ 49.20 $ 66.02 $ 95.10 $ 132.30 Lake Elmo $ 47.33 $ 47.33 $ 108.91 $ 158.31 St Paul Park $ 41.30 $ 63.50 $ 93.63 $ 132.23 Rosemount $ 38.86 $ 65.63 $ 103.21 $ 151.71 Apple Valley $ 53.41 $ 70.94 $ 94.66 $ 128.76 Inver Grove Heights $ 47.22 $ 74.31 $ 112.53 $ 162.88 Burnsville $ 51.70 $ 75.07 $ 107.91 $ 148.96 Newport $ 65.19 $ 100.68 $ 152.67 $ 223.32 The comparison of each individual utility service is included as part of this memo. Action Requested Receive information on the water & sewer rate study and provide direction. City 3,000 Gallons 6,000 Gallons 10,000 Gallons 15,000 Gallons Cottage Grove (Existing)$ 6.89 $ 10.40 $ 18.35 $ 35.54 Cottage Grove (Proposed)$ 7.58 $ 11.44 $ 20.19 $ 39.09 Rosemount $ 9.53 $ 16.44 $ 27.54 $ 42.94 Woodbury $ 10.06 $ 16.99 $ 28.30 $ 46.05 Oakdale $ 12.69 $ 20.25 $ 30.81 $ 44.86 St Paul Park $ 12.92 $ 21.35 $ 33.12 $ 48.77 Hastings $ 12.95 $ 17.95 $ 25.79 $ 41.59 Inver Grove Heights $ 13.59 $ 24.12 $ 40.26 $ 63.01 Apple Valley $ 14.58 $ 20.23 $ 27.95 $ 39.95 Lake Elmo $ 17.11 $ 25.76 $ 38.76 $ 58.21 Burnsville $ 18.05 $ 26.42 $ 39.26 $ 55.31 Newport $ 20.07 $ 30.60 $ 49.31 $ 78.36 City 3,000 Gallons 6,000 Gallons 10,000 Gallons 15,000 Gallons Cottage Grove (Existing)$ 18.47 $ 31.88 $ 49.76 $ 72.11 Cottage Grove (Proposed)$ 19.58 $ 33.79 $ 52.75 $ 76.44 Rosemount $ 19.86 $ 39.72 $ 66.20 $ 99.30 St Paul Park $ 20.78 $ 34.55 $ 52.91 $ 75.86 Hastings $ 21.50 $ 35.93 $ 55.17 $ 79.22 Lake Elmo $ 22.30 $ 38.27 $ 62.23 $ 92.18 Woodbury $ 22.65 $ 34.47 $ 50.23 $ 69.93 Burnsville $ 22.72 $ 37.72 $ 57.72 $ 82.72 Apple Valley $ 24.13 $ 36.01 $ 52.01 $ 74.11 Inver Grove Heights $ 24.50 $ 41.06 $ 63.14 $ 90.74 Oakdale $ 27.07 $ 36.33 $ 54.85 $ 78.00 Newport $ 35.58 $ 60.54 $ 93.82 $ 135.42 City City Oakdale $ 3.73 Hastings - Hastings $ 4.27 Lake Elmo - St Paul Park $ 5.33 Inver Grove Heights $ 1.33 Newport $ 6.46 St Paul Park $ 2.27 Cottage Grove (Existing)$ 6.47 Rosemount $ 2.39 Cottage Grove (Proposed)$ 6.66 Woodbury $ 2.55 Rosemount $ 7.08 Apple Valley $ 2.62 Inver Grove Heights $ 7.80 Burnsville $ 2.95 Lake Elmo $ 7.92 Newport $ 3.08 Burnsville $ 7.98 Oakdale $ 5.71 Woodbury $ 8.52 Cottage Grove (Existing)$ 6.32 Apple Valley $ 12.08 Cottage Grove (Proposed)$ 6.83 City of Cottage Grove Residential Utility Rate Comparison Monthly Residential Water Rates Monthly Residential Sewer Rates Monthly Residential Storm Water Rates Monthly Residential Street Light Rates *** All other city rates are based on 2025 rates. The City of Cottage Grove proposed rate is based on the 2026 budget. Water Rate Increase Recommendation Actual Budget Projection Projection Projection Projection Projection Projection Projection Projection 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Water Rate Increase 3.00% 5.50% 10.00% 15.00% 15.00% 15.00% 6.00% 6.00% 6.00% 6.00% REVENUES Billing Revenues 3,281,669 3,874,152 4,427,000 5,161,882 6,018,754 7,017,868 7,551,226 8,125,119 8,742,628 9,407,067 Penalties 47,821 33,000 41,000 47,150 54,223 62,356 66,097 70,063 74,267 78,723 Other Service Charges 31,050 30,000 36,000 36,576 37,161 37,756 38,360 38,974 39,597 40,231 Water Meter Sales 149,310 148,600 152,151 156,140 160,044 164,045 168,146 172,349 176,658 181,075 Other Revenue Sources Investment Earnings 756,885 53,748 93,700 86,300 80,400 76,100 76,300 80,700 83,400 104,900 Intergovernmental 124,710 98,000 232,200 243,000 250,290 - - - - - Miscellaneous 34,970 14,000 34,000 34,340 34,683 35,030 35,381 35,734 36,092 36,453 TOTAL REVENUES 4,426,415 4,251,500 5,016,051 5,765,388 6,635,555 7,393,154 7,935,509 8,522,939 9,152,642 9,848,448 OPERATING EXPENSES Operating Expenses 3,559,440 3,617,390 3,982,241 4,182,570 4,239,131 4,375,748 4,516,957 4,663,401 4,814,726 4,971,084 Payment on Long Term Debt 328,006 500,871 591,694 590,850 589,444 591,131 592,069 588,600 588,225 590,756 TOTAL EXPENDITURES 3,887,446 4,118,261 4,573,935 4,773,420 4,828,575 4,966,879 5,109,026 5,252,001 5,402,951 5,561,840 Net Increase (or Decrease)538,969$ 133,239$ 442,116$ 991,968$ 1,806,980$ 2,426,275$ 2,826,483$ 3,270,938$ 3,749,691$ 4,286,608$ Unrestricted Cash Balance Baginning Balance Jan 1 7,608,243.00$ 10,760,798.00$ 6,388,259.00$ 5,650,475.00$ 5,003,943.00$ 5,072,322.78$ 4,805,597.90$ 5,422,080.61$ 5,344,318.93$ 5,323,509.77$ Income/(Loss) 538,969.00 133,239.00 442,116.00 991,968.00 1,806,979.78 2,426,275.13 2,826,482.71 3,270,938.32 3,749,690.84 4,286,607.82 Capital Projects (6,246,598.00) (5,069,038.00) (1,179,900.00) (1,638,500.00) (538,600.00) (693,000.00) (150,000.00) (1,226,700.00) (1,584,500.00) (113,000.00) WTP Operations & Maintenance - - - - (1,200,000.00) (2,000,000.00) (2,060,000.00) (2,122,000.00) (2,186,000.00) (2,252,000.00) MPCA-UEB Reimbursement-CO #1 - 563,260.00 - - - - - - - - Bond Proceeds 8,551,882.00 - - - - - - - - - Accruals 308,302.00 - - - - - - - - - Ending Balance Dec 31 10,760,798.00$ 6,388,259.00$ 5,650,475.00$ 5,003,943.00$ 5,072,322.78$ 4,805,597.90$ 5,422,080.61$ 5,344,318.93$ 5,323,509.77$ 7,245,117.59$ Net Cash Impact 3,152,555.00$ (4,372,539.00)$ (737,784.00)$ (646,532.00)$ 68,379.78$ (266,724.87)$ 616,482.71$ (77,761.68)$ (20,809.16)$ 1,921,607.82$ Cash Reserve Target 7,378,604.00$ 3,762,714.50$ 4,320,635.00$ 3,847,609.63$ 4,472,005.01$ 4,030,547.62$ 5,208,000.40$ 5,673,087.87$ 4,315,298.21$ 6,134,011.33$ Cash Reserves 10,760,798.00 6,388,259.00 5,650,475.00 5,003,943.00 5,072,322.78 4,805,597.90 5,422,080.61 5,344,318.93 5,323,509.77 7,245,117.59 Excess/(Deficit)3,382,194.00$ 2,625,544.50$ 1,329,840.00$ 1,156,333.38$ 600,317.77$ 775,050.29$ 214,080.21$ (328,768.94)$ 1,008,211.57$ 1,111,106.26$ WATER RATE INCREASES OTHER SCENARIOS Scenario #2 Actual Budget Projection Projection Projection Projection Projection Projection Projection Projection 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Water Rate Increase 3.00%5.50%6.00%20.00%15.00%15.00%6.00%6.00%6.00%6.00% Billing Revenues 3,360,540 3,874,152 4,266,100 5,187,578 6,048,715 7,052,802 7,588,815 8,165,565 8,786,148 9,453,895 Unrestricted Cash Balance Baginning Balance Jan 1 7,608,243.00$ 10,760,798.00$ 6,388,259.00$ 5,489,575.00$ 4,870,788.60$ 4,971,486.95$ 4,742,407.80$ 5,399,353.94$ 5,365,084.94$ 5,391,025.15$ Income/(Loss)538,969.00 133,239.00 281,216.00 1,019,713.60 1,839,298.35 2,463,920.86 2,866,946.14 3,314,430.99 3,796,440.21 4,336,858.48 Capital Projects (6,246,598.00) (5,069,038.00) (1,179,900.00) (1,638,500.00) (538,600.00) (693,000.00) (150,000.00) (1,226,700.00) (1,584,500.00) (113,000.00) WTP Operations & Maintenance - - - - (1,200,000.00) (2,000,000.00) (2,060,000.00) (2,122,000.00) (2,186,000.00) (2,252,000.00) MPCA-UEB Reimbursement - 563,260.00 - - - - - - - - Bond Proceeds 8,551,882.00 - - - - - - - - - Accruals 308,302.00 - - - - - - - - - Ending Balance Dec 31 10,760,798.00$ 6,388,259.00$ 5,489,575.00$ 4,870,788.60$ 4,971,486.95$ 4,742,407.80$ 5,399,353.94$ 5,365,084.94$ 5,391,025.15$ 7,362,883.63$ Net Cash Impact 3,152,555.00$ (4,372,539.00)$ (898,684.00)$ (618,786.40)$ 100,698.35$ (229,079.14)$ 656,946.14$ (34,269.01)$ 25,940.21$ 1,971,858.48$ Cash Reserve Target 7,378,604.00$ 3,762,714.50$ 4,320,635.00$ 3,847,609.63$ 4,472,005.01$ 4,030,547.62$ 5,208,000.40$ 5,673,087.87$ 4,315,298.21$ 6,134,011.33$ Cash Reserves 10,760,798.00 6,388,259.00 5,489,575.00 4,870,788.60 4,971,486.95 4,742,407.80 5,399,353.94 5,365,084.94 5,391,025.15 7,362,883.63 Excess/(Deficit)3,382,194.00$ 2,625,544.50$ 1,168,940.00$ 1,023,178.98$ 499,481.94$ 711,860.19$ 191,353.54$ (308,002.94)$ 1,075,726.94$ 1,228,872.29$ Scenario #3 Actual Budget Projection Projection Projection Projection Projection Projection Projection Projection 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Water Rate Increase 3.00%5.50%6.00%18.00%17.00%15.00%6.00%6.00%6.00%6.00% Billing Revenues 3,360,540 3,874,152 4,266,100 5,102,256 6,051,275 7,055,787 7,592,027 8,169,021 8,789,866 9,457,896 Unrestricted Cash Balance Baginning Balance Jan 1 7,608,243.00$ 10,760,798.00$ 6,388,259.00$ 5,489,575.00$ 4,784,646.60$ 4,887,929.21$ 4,661,862.92$ 5,322,050.43$ 5,291,268.67$ 5,320,960.65$ Income/(Loss)538,969.00 133,239.00 281,216.00 933,571.60 1,841,882.61 2,466,933.71 2,870,187.52 3,317,918.23 3,800,191.98 4,340,894.84 Capital Projects (6,246,598.00) (5,069,038.00) (1,179,900.00) (1,638,500.00) (538,600.00) (693,000.00) (150,000.00) (1,226,700.00) (1,584,500.00) (113,000.00) WTP Operations & Maintenance - - - - (1,200,000.00) (2,000,000.00) (2,060,000.00) (2,122,000.00) (2,186,000.00) (2,252,000.00) MPCA-UEB Reimbursement - 563,260.00 - - - - - - - - Bond Proceeds 8,551,882.00 - - - - - - - - - Accruals 308,302.00 - - - - - - - - - Ending Balance Dec 31 10,760,798.00$ 6,388,259.00$ 5,489,575.00$ 4,784,646.60$ 4,887,929.21$ 4,661,862.92$ 5,322,050.43$ 5,291,268.67$ 5,320,960.65$ 7,296,855.49$ Net Cash Impact 3,152,555.00$ (4,372,539.00)$ (898,684.00)$ (704,928.40)$ 103,282.61$ (226,066.29)$ 660,187.52$ (30,781.77)$ 29,691.98$ 1,975,894.84$ Cash Reserve Target 7,378,604.00$ 3,762,714.50$ 4,320,635.00$ 3,847,609.63$ 4,472,005.01$ 4,030,547.62$ 5,208,000.40$ 5,673,087.87$ 4,315,298.21$ 6,134,011.33$ Cash Reserves 10,760,798.00 6,388,259.00 5,489,575.00 4,784,646.60 4,887,929.21 4,661,862.92 5,322,050.43 5,291,268.67 5,320,960.65 7,296,855.49 Excess/(Deficit)3,382,194.00$ 2,625,544.50$ 1,168,940.00$ 937,036.98$ 415,924.20$ 631,315.30$ 114,050.03$ (381,819.20)$ 1,005,662.44$ 1,162,844.15$ SEWER RATE INCREASE Actual Budget Projection Projection Projection Projection Projection Projection Projection Projection 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Sewer Rate Increase 5.00% 5.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% REVENUES Billing Revenues 3,930,685 4,140,870 4,577,000 4,924,852 5,299,141 5,701,875 6,135,218 6,601,495 7,103,208 7,643,052 Penalties 47,156 30,000 40,000 40,000 42,400 44,944 47,641 50,499 53,529 56,741 Other Revenue Sources Investment Earnings 163,883 37,000 34,900 34,800 36,400 37,200 41,000 38,600 38,100 47,300 Interfund Interest 21,250 19,200 17,050 14,950 12,650 10,025 7,275 4,450 1,500 - Miscellaneous 12,943 17,500 17,000 17,000 17,510 18,035 18,576 19,134 19,708 20,299 TOTAL REVENUES 4,175,917 4,244,570 4,685,950 5,031,602 5,408,101 5,812,080 6,249,710 6,714,177 7,216,045 7,767,392 OPERATING EXPENSES Operating Expenses 3,951,972 4,262,220 4,536,474 4,718,735 4,925,756 5,142,320 5,368,882 5,605,916 5,853,922 6,113,423 Payment on Long Term Debt 109,335 169,957 197,231 196,950 196,481 197,044 197,356 196,200 196,075 196,919 TOTAL EXPENDITURES 4,061,307 4,432,177 4,733,705 4,915,685 5,122,237 5,339,364 5,566,238 5,802,116 6,049,997 6,310,342 Net Increase (or Decrease)114,610$ (187,607)$ (47,755)$ 115,917$ 285,864$ 472,716$ 683,472$ 912,061$ 1,166,047$ 1,457,050$ Unrestricted Cash Balance Baginning Balance Jan 1 2,996,218.00$ 3,669,702.00$ 2,392,095.00$ 2,258,340.00$ 2,443,157.00$ 2,665,421.13$ 2,885,236.92$ 3,687,209.28$ 3,278,170.35$ 4,542,517.84$ Income/(Loss) 114,610.00 (187,607.00) (47,755.00) 115,917.00 285,864.13 472,715.79 683,472.36 912,061.07 1,166,047.50 1,457,049.87 Interfund Loan-Principal Payment 210,000.00 210,000.00 210,000.00 210,000.00 250,000.00 275,000.00 275,000.00 290,000.00 300,000.00 - Capital Projects (2,523,330.00) (1,300,000.00) (296,000.00) (141,100.00) (313,600.00) (527,900.00) (156,500.00) (1,611,100.00) (201,700.00) (341,200.00) Bond Proceeds 2,850,628.00 - - - - - - - - - Accruals 21,576.00 - - - - - - - - - Ending Balance Dec 31 3,669,702.00$ 2,392,095.00$ 2,258,340.00$ 2,443,157.00$ 2,665,421.13$ 2,885,236.92$ 3,687,209.28$ 3,278,170.35$ 4,542,517.84$ 5,658,367.71$ Net Cash Impact 673,484.00$ (1,277,607.00)$ (133,755.00)$ 184,817.00$ 222,264.13$ 219,815.79$ 801,972.36$ (409,038.93)$ 1,264,347.50$ 1,115,849.87$ Cash Reserve Target 3,601,067.00$ 2,761,468.00$ 2,697,417.50$ 2,972,958.81$ 3,296,103.98$ 3,038,296.81$ 4,610,258.10$ 3,324,736.16$ 3,594,830.37$ 3,536,213.79$ Cash Reserves 3,669,702.00 2,392,095.00 2,258,340.00 2,443,157.00 2,665,421.13 2,885,236.92 3,687,209.28 3,278,170.35 4,542,517.84 5,658,367.71 Excess/(Deficit)68,635.00$ (369,373.00)$ (439,077.50)$ (529,801.81)$ (630,682.85)$ (153,059.89)$ (923,048.83)$ (46,565.82)$ 947,687.47$ 2,122,153.92$ 2025-2031 Streetlight Rate Study July 24, 2025 Background The City of Cottage Grove operates and maintains the municipal streetlighting system to provide safe, reliable public lighting for roadways and neighborhoods. The Streetlight Utility Fund is currently funded through monthly charges to utility accounts holders. Due to increasing energy costs, equipment aging, and rising maintenance expenses, the City has reviewed the fund to ensure future financial stability. Cottage Grove’s streetlight infrastructure currently includes 3,317 city-owned residential and commercial light poles. Additionally, Xcel Energy owns 578 streetlights in a centralized area of Cottage Grove. Streetlights, owned by Xcel, takes longer to be repaired and costs more to residents per month. Although having streetlights owned by the city requires employees, equipment and maintenance expenses that otherwise would not be needed, it also allows streetlights to be maintained more efficiently. The Streetlight Maintenance fund is used for the following expenditure items. • Public Works personnel services • Commodities, which include operating supplies • Professional services, which include engineering services • Minor maintenance, which includes minor maintenance completed by Public Works staff • Major maintenance, which includes capital outlay projects and equipment • Miscellaneous contractual services, which include bills paid to Xcel Energy • Administrative and general expenditures for utility billing Under Cottage Grove’s rate structure, residential properties, commercial properties, churches, townhomes, schools, and multifamily properties with city-owned streetlights are billed monthly, while rural properties are billed yearly. Commercial, churches, townhomes, schools and multifamily properties are given a rate per RLE (Residential Lot Equivalent). This rate is calculated using a formula of 2.5 lots/acre for commercial/churches and 1.25 lots/acre for schools. Residential properties with Xcel-owned streetlights are also included in this table. Rate Structure Property Type 2019 2020 2021 2022 2023 2024 2025 Residential City- Owned $3.12 $ 3.27 $ 3.46 $ 5.00 $ 5.40 $ 5.85 $ 6.32 Percent Increase -4.81% 5.81% 44.51% 8.00% 8.33% 8.03% Residential Xcel- Owned $5.70 $ 5.70 $ 5.70 $ 6.00 $ 6.50 $ 7.05 $ 7.61 Percent Increase -0.00% 0.00% 5.26% 8.33% 8.46% 7.94% Rural $ 4.75 $ 5.04 $ 5.04 $ 5.28 $ 5.28 $ 5.76 $ 6.22 Percent Increase -6.11% 0.00% 4.76% 0.00% 9.09% 7.99% Commercial Churches Townhomes Schools Multifamily Percent Increase -4.81% 5.81% 30.80% 8.00% 8.33% 8.03% Maintenance Fee 1.08$ 1.13$ 1.16$ -$ -$ -$ -$ Percent Increase -4% 3%- - - - RLE = 2.5 units per acre for commercial and churches, 1.25 units/acre for schools Large rate increase is due to the quarterly maintenacne fee and standard fee being combined $ 3.12 $ 3.27 Monthly Maintenance Fee Streetlight Monthly Fees Per Lot Per Month Per Lot Per Year Per RLE Per Month $ 3.46 $ 5.00 $ 5.40 $ 5.85 $ 6.32 The below table summarizes the conversion of the above rates into quarterly rates. A quarterly rate structure is used by many cities similar to Cottage Grove in population size and land area. A comparison of cities with this same structure and size will be shown in a following section. A significant rate increase can be seen in the table below for the year 2022. This increase is due to the quarterly maintenance fee being combined with the standard fee. A fee increase of 8% was assessed in the year 2022. Past Quarterly Streetlight Utility Rates Rate Structure Property Type 2019 2020 2021 2022 2023 2024 2025 Residential City- Owned $ 9.36 $ 9.81 $ 10.38 $ 15.00 $ 16.20 $ 17.55 $ 18.96 Residential Xcel- Owned $17.10 $ 17.10 $ 17.10 $ 18.00 $ 19.50 $ 21.15 $ 22.83 Per Lot Per Quarter Rural $ 1.18 $ 1.26 $ 1.26 $ 1.32 $ 1.32 $ 1.44 $ 1.56 Commercial Churches Townhomes Schools Multifamily -$ -$ Per Lot Per Quarter Per RLE Per Quarter $ 9.36 $ 9.81 $ 10.38 $ 15.00 Quarterly Maintenance Fee Maintenance Fee 3.24$ 3.39$ 3.48$ -$ -$ $ 16.20 $ 17.55 $ 18.96 Streetlight Program 2019-2025 A series of fiscal years with nominal rate increases did not account for the growing infrastructure needs as well as increased contractual costs. The City of Cottage Grove experienced significantly higher than anticipated levels of development from 2020-2023. This high level of increased development was not accounted for in a Rate Study conducted in 2020 which allowed for inflation and city owned infrastructure costs to outpace the proposed rate increases. The City of Cottage Grove maintains its traffic signals from the Streetlight Enterprise Fund, which helps ensure proper maintenance and operations without relying on the general fund. Other expenses such as city-wide streetlights and streetlight banner purchases have historically been purchased through the Streetlight Fund. In 2021, summertime streetlight banners were purchased for $15,500. Operational costs such as a cabinet update in 2021 for $31,780. The painting of traffic signals and light poles is also a necessary expense for the Streetlight Enterprise Fund. Pole painting operations were completed in 2019 for $25,000 and in 2022 for $14,190. Cottage Grove contracts with the City of St. Paul for annual preventative maintenance services and signal repairs, which average $10,000/year for each annually, for a total of $20,000. Xcel Energy bills for traffic signals traffic signals total $7,000/year. Professional services for signal detection and re-timing are also paid for out of the streetlight utility fund, which is approximately $5,000/year. On an annual basis, traffic signals have cost the city approximately $89,000/year to maintain and repair. - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2019-2025 Streetlight Fund Total Operating Revenues Total Expenses City Rate Comparison The residential streetlight utility fee for a single-family home for the City of Cottage Grove is currently $6.32 per month, or $18.96 per quarter. When comparing this to the fees from 9 other cities, Cottage Grove is above the average fee of $13.08 for those cities. Cottage Grove’s Utility Department prides itself in a high degree of service and is committed to a serving its residents through quality and reliable infrastructure. Without a streetlight rate that allows the City to achieve such a high level of service, the City’s lighting infrastructure would not be as efficient as it’s been in recent years. Xcel Energy’s residential streetlight rate has historically been higher than Cottage Grove’s and is reflected in the graph below. The City of Cottage Grove’s rates are higher in comparison to other alike cities but expenses such as signal maintenance/electricity, pole painting expenses, summertime banners and winter decorations are accounted for in the rate. Multi Family housing complexes have historically been charged the appropraite RLE (Residential Lot Equivlant). After an analysis on how similar sized muncipalities tax multi family buildings, the vast majority of cities charge by a per unit rate. Fee collection per unit increases revenue to spread the costs across all users of the city lighting system. Projected Streetlight Budget 2025-2031 The City of Cottage Grove has experienced significant residential growth since 2020 which has expanded the City’s public lighting infrastructure. With growth expected to remain steady, additional expenditure is needed to offset increased costs. In 2027, a $10,000 addition is outlined in the rate study to cover the transition to LED from high pressure sodium (HPS) bulbs. This addition will allow the city to replace approximately 250 high pressure sodium bulbs each $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 City Comparison -Residential Quarterly Rates year using a LED conversion bulb as the HPS bulbs fail. HPS bulbs are being phased out in the industry, and it is important that Cottage Grove is ready for this. Previously it was a concern that full luminaries would need to be replaced when transitioning to LED, which currently cost $1,710/fixture, however the LED conversion bulb only costs $50. This is still greater than the HPS bulb cost of $13 dollars Transitioning to LED lights has a decrease in cost of approximately 43% on average. Transitioning to LED has an initial installation cost associated with the conversion, but the city would see a payback from cost savings in approximately two years. A $50,000 budget addition in 2027 and 2028 has been accounted for to increase the budgeted amount for directional drilling and light pole painting operations. Personnel additions are essential for promoting growth in divisions while the city’s taxbase is expanding. The addition of a new Utility Department employee and bucket truck are accounted for in the Streetlight Utility Fund for 2028. Capital Outlay expenses in the projected budget fluctuate significantly in the future years presented in the study. Referencing the table below, 2028 and 2030 are projecting higher Capital Outlay expenses but continued rate increases are anticipated to help ensure a fund balance is sustainable. Continued monitoring of revenues and expenses from 2026-3031 will be done to address any additional fee increases that are not suggested in this study due to unseen circumstances at this time. Discrepancies recognized within a projected budget are often difficult to theorize as development and contractual services vary from each fiscal year. Unexpected expenditures such as increased directional drilling needs due to an energy source break, create unique challenges within an enterprise fund. Projected Total Expenses Projected Streetlight Utility Fund Operating and maintaining a utility such as a street lighting system is becoming increasingly costly. Aging infrastructure as well as continued city-wide growth requires an increase within the fund responsible for operating the system. A proposed 8% increase from 2026-2030 will help increase fund balance while allowing the City’s utility department to efficiently maintain Personal Services 201,824 207,879 371,215 386,064 401,506 417,566 Transfers Out 100,000 103,000 106,090 109,273 112,551 115,927 Commodities- Items for Resale 100,000 103,000 106,090 109,273 112,551 115,927 Travel/Training 1,415 1,457 1,501 1,546 1,592 1,640 Commodities 101,168 114,203 117,629 121,157 124,792 128,536 Contractual Services 1400-4360 168,920 173,988 179,207 184,583 190,121 195,825 Contractual Services 450,539 514,055 579,477 596,861 614,767 633,210 Capital Outlay 261,000 79,000 552,000 221,000 623,000 146,000 Total Expenses 1,384,865$ 1,296,581$ 2,013,208$ 1,729,757$ 2,180,880$ 1,754,631$ 2031Streetlight Fund 2026-2031 2026 2027 2028 2029 2030 the public lighting system. Projected growth numbers of residential units have been estimated at 250 units for the entire five-year rate study as data is showing consistent housing trends. Streetlight Utility Fund 2025-2031 Streetlight Utility Fee Recommendation Aggressively managing the Streetlight Utility Fund from 2026-2030, with consecutive years of 8% increases, will allow the City to maintain a high degree of certainty the fund will stay at a level that allows unexpected expenses to be covered by the fund. The table below shows the recommended Streetlight Rate from 2026-2031. Continued increases of Xcel Energy’s lighting rate is expected to increase which the city feels should be used as a baseline for outdoor lighting rates. This rate study has projected the city’s streetlight rate to be slightly lower than the baseline to offer its residents a rate in which they receive a high level of service at a lower cost per account. 2025-2031 Streetlight Utility Fund Breakdown 2024 Actual 2025 2026 2027 2028 2029 2030 2031 Streetlight Utility Rate Revenue 1,212,725.00 1,339,057 1,481,565 1,638,248 1,810,420 1,999,656 2,164,151 Total Expenditures 1,383,230.00 1,386,559 1,298,326 2,015,005 1,731,609 2,182,790 1,756,601 Income (170,505.00) (47,502) 183,239 (376,757) 78,811 (183,134) 407,550 Cash 464,255.00 293,750.00 246,248 429,488 52,730 131,541 (51,593) 355,957 Proposed Quarterly Rates Budget Review Continuing a steady trend of rate increases to allow for growth, as well as tending to maintenance of existing infrastructure is a main driving factor for the rates proposed in this rate study. Significant rate increases in past fiscal years have directed the fund to a closer primary goal of staying cash positive at fiscal yearend. Taking into consideration projected developmental growth, as well as the needs of the streetlighting enterprise fund, continued significant rate increases will need to be enacted. Further discussions are needed to determine how multi-family residences/apartments are categorized and charged to ensure costs are distributed evenly across all users. Rate Structure Property Type 2025 Actual % Increase 2026 % Increase 2027 % Increase 2028 % Increase 2029 % Increase 2030 % Increase 2031 Residential City-Owned $ 6.32 8% $ 6.83 8% $ 7.37 8% $ 7.96 8% $ 8.60 8% $ 9.29 6% 9.84$ Residential Xcel-Owned $ 7.61 5% $ 7.95 4% $ 8.27 4% $ 8.60 4% $ 8.95 4% $ 9.30 4% 9.68$ Per Lot Per Year Rural $ 6.22 8% $ 6.72 8% $ 7.26 8% $ 7.84 8% $ 8.46 8% $ 9.14 6% 9.69$ Commercial $ 6.32 8% $ 6.83 8% $ 7.37 8% $ 7.96 8% $ 8.60 8% $ 9.29 6% 9.84$ Churches $ 6.32 8% $ 6.83 8% $ 7.37 8% $ 7.96 8% $ 8.60 8% $ 9.29 6% 9.84$ Townhomes $ 6.32 8% $ 6.83 8% $ 7.37 8% $ 7.96 8% $ 8.60 8% $ 9.29 6% 9.84$ Schools $ 6.32 8% $ 6.83 8% $ 7.37 8% $ 7.96 8% $ 8.60 8% $ 9.29 6% 9.84$ Multifamily $ 6.32 8% $ 6.83 8% $ 7.37 8% $ 7.96 8% $ 8.60 8% $ 9.29 6% 9.84$ Per Lot Per Month Per RLE Per Month 2025 2026 2027 2028 2029 2030 2031 Residential City-Owned $ 18.96 $ 20.48 $ 22.11 $ 23.88 $ 25.79 $ 27.86 29.53$ Residential Xcel-Owned $ 22.83 $ 23.86 $ 24.81 $ 25.80 $ 26.84 $ 27.91 29.03$ Per Lot Per Quarter Rural $ 1.56 $ 1.68 $ 1.81 $ 1.96 $ 2.12 $ 2.28 2.42$ Commercial $ 18.96 $ 20.48 $ 22.11 $ 23.88 $ 25.79 $ 27.86 29.53$ Churches $ 18.96 $ 20.48 $ 22.11 $ 23.88 $ 25.79 $ 27.86 29.53$ Townhomes $ 18.96 $ 20.48 $ 22.11 $ 23.88 $ 25.79 $ 27.86 29.53$ Schools $ 18.96 $ 20.48 $ 22.11 $ 23.88 $ 25.79 $ 27.86 29.53$ Multifamily $ 18.96 $ 20.48 $ 22.11 $ 23.88 $ 25.79 $ 27.86 29.53$ Per Lot Per Quarter Per RLE Per Quarter 7/18/2025 11:40:17 AM Page 1 of 4 Budget Comparison Report Cottage Grove Account Detail 2023 Total Ac vity 2024 Total Ac vity Account Number 2025 YTD Ac vity Through May 2025 2025 2026 2026 Parent Budget Comparison 1 Budget Comparison 1 to Parent Budget % 2027 2027 FALL 2025 Comparison 2 Budget Comparison 2 to Comparison 1 Budget % Increase / (Decrease) Increase / (Decrease) Revenue Category: 3310 - INTERGOVERNMENTAL 68,590.00 0.00 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%FEDERAL GRANTS265-00-1150-3310 14,000.00 10,000.00 0.00 2,000.000.00 2,000.00 0.00% 2,000.00 0.00 0.00%STATE GRANTS265-00-1150-3324 Total Category: 3310 - INTERGOVERNMENTAL: 2,000.000.00 0.00 2,000.00 0.00% 2,000.00 0.00 0.00%10,000.0082,590.00 Category: 3400 - CHARGES FOR SERVICES 5,095.00 4,450.00 3,275.00 4,500.004,500.00 0.00 0.00% 4,500.00 0.00 0.00%ADVERTISING SALES265-00-1150-3574 8,050.00 17,900.00 4,238.50 15,900.0015,500.00 400.00 2.58% 15,900.00 0.00 0.00%SPECIAL EVENTS265-00-1150-3575 Total Category: 3400 - CHARGES FOR SERVICES: 20,400.007,513.50 20,000.00 400.00 2.00% 20,400.00 0.00 0.00%22,350.0013,145.00 Category: 3809 - INVESTMENT INTEREST 71.41 4,618.65 1,440.51 0.000.00 0.00 0.00% 0.00 0.00 0.00%INVEST INTEREST265-00-9265-3810 Total Category: 3809 - INVESTMENT INTEREST: 0.001,440.51 0.00 0.00 0.00% 0.00 0.00 0.00%4,618.6571.41 Category: 3812 - MISCELLANEOUS 41,144.00 8,584.40 0.00 8,000.008,000.00 0.00 0.00% 8,000.00 0.00 0.00%DONATE & CONTRI265-00-1150-3812 71,647.01 70,167.58 14,502.97 71,550.0072,300.00 -750.00 -1.04% 71,550.00 0.00 0.00%LODGING TAX265-00-1150-3840 Total Category: 3812 - MISCELLANEOUS: 79,550.0014,502.97 80,300.00 -750.00 -0.93% 79,550.00 0.00 0.00%78,751.98112,791.01 Category: 3999 - TRANSFERS IN 66,481.31 0.00 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%TRANSFER IN265-00-1150-3899 Total Category: 3999 - TRANSFERS IN: 0.000.00 0.00 0.00 0.00% 0.00 0.00 0.00%0.0066,481.31 Total Revenue: 101,950.0023,456.98 100,300.00 1,650.00 1.65% 101,950.00 0.00 0.00%115,720.63275,078.73 Expense Category: 4100 - PERSONAL SERVICES 61,934.72 66,323.93 14,994.47 18,900.0018,600.00 300.00 1.61% 19,700.00 800.00 4.23%SALARY-FULL TIME265-00-1150-4100 0.00 276.00 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%SAL-P.T./TEMP265-00-1150-4120 4,341.08 4,854.90 1,061.44 1,400.001,400.00 0.00 0.00% 1,500.00 100.00 7.14%PERA265-00-1150-4141 4,505.53 4,970.48 1,140.16 1,500.001,400.00 100.00 7.14% 1,500.00 0.00 0.00%FICA265-00-1150-4142 8,100.00 9,450.00 1,083.35 2,800.002,600.00 200.00 7.69% 3,200.00 400.00 14.29%HEALTH INSURANCE265-00-1150-4144 Total Category: 4100 - PERSONAL SERVICES: 24,600.0018,279.42 24,000.00 600.00 2.50% 25,900.00 1,300.00 5.28%85,875.3178,881.33 Category: 4200 - COMMODITIES 0.00 0.00 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%OFFICE SUPPLIES265-00-1150-4200 Budget Comparison Report 7/18/2025 11:40:17 AM Page 2 of 4 2023 Total Ac vity 2024 Total Ac vity Account Number 2025 YTD Ac vity Through May 2025 2025 2026 2026 Parent Budget Comparison 1 Budget Comparison 1 to Parent Budget % 2027 2027 FALL 2025 Comparison 2 Budget Comparison 2 to Comparison 1 Budget % Increase / (Decrease) Increase / (Decrease) 0.00 703.03 537.22 300.00300.00 0.00 0.00% 300.00 0.00 0.00%OP SUPPLY-OTHER265-00-1150-4210 Total Category: 4200 - COMMODITIES: 300.00537.22 300.00 0.00 0.00% 300.00 0.00 0.00%703.030.00 Category: 4300 - CONTRACTUAL SERVICES 29,886.05 20,451.88 0.00 21,200.0021,200.00 0.00 0.00% 21,200.00 0.00 0.00%PROF SERVICES265-00-1150-4300 956.00 1,152.00 2,816.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%LEGAL SERVICE265-00-1150-4302 1,380.00 1,630.00 560.00 1,680.001,680.00 0.00 0.00% 1,680.00 0.00 0.00%FEES FOR SERVICE265-00-1150-4305 0.00 0.00 38.53 400.000.00 400.00 0.00% 400.00 0.00 0.00%CREDIT CARD FEES265-00-1150-4309 202.44 0.00 0.00 0.000.00 0.00 0.00% 0.00 0.00 0.00%COMMUNICATION265-00-1150-4310 575.76 492.47 99.25 800.00800.00 0.00 0.00% 800.00 0.00 0.00%POSTAGE265-00-1150-4311 7,162.00 13,260.00 6,220.00 11,000.0011,000.00 0.00 0.00% 11,000.00 0.00 0.00%PRINTING265-00-1150-4340 25,447.00 8,847.66 5,001.75 16,630.0016,630.00 0.00 0.00% 16,630.00 0.00 0.00%ADVER/PUBLISH265-00-1150-4341 390.00 410.00 1,750.00 2,210.00410.00 1,800.00 439.02% 2,210.00 0.00 0.00%DUES & SUBS265-00-1150-4401 456.25 0.00 250.00 4,200.001,700.00 2,500.00 147.06% 4,200.00 0.00 0.00%TRAVEL/TRAIN/CON265-00-1150-4403 18,383.42 24,972.22 7,234.36 26,430.0026,425.00 5.00 0.02% 26,430.00 0.00 0.00%SPECIAL EVENTS265-00-1150-4434 Total Category: 4300 - CONTRACTUAL SERVICES: 84,550.0023,969.89 79,845.00 4,705.00 5.89% 84,550.00 0.00 0.00%71,216.2384,838.92 Total Expense: 109,450.0042,786.53 104,145.00 5,305.00 5.09% 110,750.00 1,300.00 1.19%157,794.57163,720.25 Report Total: 95.06% 17.33%-7,500.00-19,329.55 -3,845.00 -3,655.00 -8,800.00 -1,300.00-42,073.94111,358.48 Budget Comparison Report 7/18/2025 11:40:17 AM Page 3 of 4 Group Summary Category 2023 Total Ac vity 2024 Total Ac vity 2025 YTD Ac vity Through May 2025 2025 2026 2026 Parent Budget Comparison 1 Budget Comparison 1 to Parent Budget % 2027 2027 FALL 2025 Comparison 2 Budget Comparison 2 to Comparison 1 Budget % Increase / (Decrease) Increase / (Decrease) Revenue 3310 - INTERGOVERNMENTAL 2,000.000.00 2,000.00 0.00% 2,000.00 0.00 0.00%0.0010,000.0082,590.00 3400 - CHARGES FOR SERVICES 20,400.0020,000.00 400.00 2.00% 20,400.00 0.00 0.00%7,513.5022,350.0013,145.00 3809 - INVESTMENT INTEREST 0.000.00 0.00 0.00% 0.00 0.00 0.00%1,440.514,618.6571.41 3812 - MISCELLANEOUS 79,550.0080,300.00 -750.00 -0.93% 79,550.00 0.00 0.00%14,502.9778,751.98112,791.01 3999 - TRANSFERS IN 0.000.00 0.00 0.00% 0.00 0.00 0.00%0.000.0066,481.31 Total Revenue: 101,950.0023,456.98 100,300.00 1,650.00 1.65% 101,950.00 0.00 0.00%115,720.63275,078.73 Expense 4100 - PERSONAL SERVICES 24,600.0024,000.00 600.00 2.50% 25,900.00 1,300.00 5.28%18,279.4285,875.3178,881.33 4200 - COMMODITIES 300.00300.00 0.00 0.00% 300.00 0.00 0.00%537.22703.030.00 4300 - CONTRACTUAL SERVICES 84,550.0079,845.00 4,705.00 5.89% 84,550.00 0.00 0.00%23,969.8971,216.2384,838.92 Total Expense: 109,450.0042,786.53 104,145.00 5,305.00 5.09% 110,750.00 1,300.00 1.19%157,794.57163,720.25 Report Total: 95.06% 17.33%-7,500.00-19,329.55 -3,845.00 -3,655.00 -8,800.00 -1,300.00-42,073.94111,358.48 Budget Comparison Report 7/18/2025 11:40:17 AM Page 4 of 4 Fund Summary Fund 2023 Total Ac vity 2024 Total Ac vity 2025 YTD Ac vity Through May 2025 2025 2026 2026 Parent Budget Comparison 1 Budget Comparison 1 to Parent Budget % 2027 2027 FALL 2025 Comparison 2 Budget Comparison 2 to Comparison 1 Budget % Increase / (Decrease) Increase / (Decrease) 265 - CG CONVENTION & VISITORS BUREA -7,500.00-19,329.55 -3,845.00 -3,655.00 95.06% -8,800.00 -1,300.00 17.33%-42,073.94111,358.48 Report Total: 95.06% 17.33%-7,500.00-19,329.55 -3,845.00 -3,655.00 -8,800.00 -1,300.00-42,073.94111,358.48 City Of Cottage Grove Financial Management Plan Summary 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Budget Budget Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected General Fund Revenue General Property Tax 18,567,010 21,667,200 23,503,900 26,033,600 27,715,240 29,618,498 31,363,574 33,430,868 35,124,583 36,769,639 38,458,228 40,221,449 Delinquent Property Tax - - - - - - - - - - - - Licenses and Permits 2,371,670 2,369,970 2,524,700 2,568,450 2,580,700 2,292,400 1,991,200 1,879,000 1,762,400 1,763,200 1,792,200 1,821,900 One-time public safety aid 716,350 638,750 414,100 - - - - - - - - - Other Intergovernmental 921,460 1,023,000 1,108,900 1,149,000 1,172,000 1,195,400 1,219,300 1,243,700 1,268,600 1,294,000 1,319,900 1,346,300 Fines and Forfeitures 150,000 150,000 150,000 150,000 153,000 156,100 159,200 162,400 165,600 168,900 172,300 175,700 Charges For Services 1,567,910 1,705,700 1,992,200 1,688,300 1,722,100 1,756,500 1,791,600 1,827,400 1,863,900 1,901,200 1,939,200 1,978,000 Interest On Investments 126,250 129,000 165,000 168,000 169,700 171,400 173,100 174,800 176,500 178,300 180,100 181,900 Miscellaneous 82,665 78,240 99,600 96,000 97,900 99,900 101,900 103,900 106,000 108,100 110,300 112,500 Donations - - - - - - - - - - - - Transfers In 649,325 684,450 705,000 726,100 747,900 770,400 793,500 817,300 841,700 866,900 893,000 919,800 Use of fund balance 130,300 140,100 Total General Fund Revenue 25,152,640 28,446,310 30,793,700 32,719,550 34,358,540 36,060,598 37,593,374 39,639,368 41,309,283 43,050,239 44,865,228 46,757,549 General Fund Expenditures Contingency 200,000 275,000 540,000 600,000 750,000 900,000 950,000 1,450,000 1,508,000 1,568,320 1,631,053 1,696,295 Personnel 15,311,305 17,512,300 19,122,350 20,414,350 21,230,900 22,080,100 22,963,300 23,881,800 24,837,100 25,830,600 26,863,800 27,938,400 Commodities 1,177,775 1,229,355 1,203,490 1,255,810 1,306,000 1,358,200 1,412,500 1,469,000 1,527,800 1,588,900 1,652,500 1,718,600 Contractual 3,190,695 3,400,395 3,449,670 3,502,380 3,642,500 3,788,200 3,939,700 4,097,300 4,261,200 4,431,600 4,608,900 4,793,300 FMP-One position per year 135,000 275,400 286,400 297,900 309,800 322,200 335,100 348,500 Capital Outlay 179,500 - 11,000 11,440 11,898 12,374 12,868 13,383 13,919 14,475 15,054 Insurance Internal Service Fund 2,504,915 2,905,700 3,045,050 3,337,650 3,504,500 3,679,700 3,863,700 4,056,900 4,259,700 4,472,700 4,696,300 4,931,100 Fleet Internal Service Fund 1,489,050 1,879,260 2,016,540 2,102,760 2,207,900 2,318,300 2,434,200 2,555,900 2,683,700 2,817,900 2,958,800 3,106,700 IT Internal Service Fund 1,099,400 1,244,300 1,346,600 1,420,900 1,491,900 1,566,500 1,644,800 1,727,000 1,813,400 1,904,100 1,999,300 2,099,300 Transfers Out - - 70,000 74,700 78,400 82,300 86,400 90,700 95,200 100,000 105,000 110,300 Total General Fund Expenditures 25,152,640 28,446,310 30,793,700 32,719,550 34,358,540 36,060,598 37,593,374 39,639,368 41,309,283 43,050,239 44,865,228 46,757,549 8.25% Net Change in Fund Balance - - - - - - - - - - - - Ending General Fund Balance 15,842,505 16,252,205 16,712,105 17,462,105 18,362,105 19,312,105 20,762,105 22,270,105 23,838,425 25,469,478 27,165,773 Assigned/Nonspendable 1,211,000 1,211,000 1,211,000 1,211,000 1,211,000 1,211,000 1,211,000 1,211,000 1,211,000 1,211,000 1,211,000 Unassigned 14,631,505 15,041,205 15,501,105 16,251,105 17,151,105 18,101,105 19,551,105 21,059,105 22,627,425 24,258,478 25,954,773 Fund Balance as a % of Next Year's Expenditures 47.51% 45.97% 45.12% 45.07% 45.62% 45.66% 47.33% 48.92% 50.43% 51.88% - City Of Cottage Grove Financial Management Plan Summary 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Budget Budget Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Property Tax Levies Total General Fund Levy General Fund 18,567,010 21,667,200 23,503,900 26,033,600 27,715,240 29,618,498 31,363,574 33,430,868 35,124,583 36,769,639 38,458,228 40,221,449 Total General Fund Levy 18,567,010 21,667,200 23,503,900 26,033,600 27,715,240 29,618,498 31,363,574 33,430,868 35,124,583 36,769,639 38,458,228 40,221,449 8.48% 10.76% 6.46% 6.87% 5.89% 6.59% 5.07% 4.68% 4.59% 4.58% Other Special Levies Municipal Building Fund Levy 300,000 300,000 350,000 350,000 400,000 400,000 400,000 400,000 550,000 700,000 850,000 1,000,000 EDA Levy 275,000 137,500 187,500 237,500 287,500 1,000,000 1,100,000 1,300,000 1,500,000 1,500,000 1,500,000 1,500,000 HRA Levy - 137,500 142,500 146,000 196,000 246,000 296,000 346,000 396,000 446,000 496,000 546,000 Equipment Levy 319,100 321,000 - 900,000 1,100,000 1,300,000 1,700,000 2,100,000 2,200,000 2,300,000 2,400,000 2,500,000 Parks Capital Levy - - 65,000 190,000 190,000 190,000 190,000 190,000 190,000 190,000 190,000 190,000 Total Special Levies 894,100 896,000 745,000 1,823,500 2,173,500 3,136,000 3,686,000 4,336,000 4,836,000 5,136,000 5,436,000 5,736,000 Total Current Debt Service Levies 3,664,490 3,564,800 4,278,600 4,139,450 4,188,000 3,614,500 3,526,700 3,224,910 3,282,200 3,167,400 3,039,620 2,382,400 Total Future Debt Service Levies - - - 695,283 1,643,900 2,113,300 2,598,700 3,106,200 3,373,300 3,857,000 4,443,600 5,053,500 Total Debt Service Levies 3,664,490 3,564,800 4,278,600 4,834,733 5,831,900 5,727,800 6,125,400 6,331,110 6,655,500 7,024,400 7,483,220 7,435,900 Total Tax Levies 23,125,600 26,128,000 28,527,500 32,691,833 35,720,640 38,482,298 41,174,974 44,097,978 46,616,083 48,930,039 51,377,448 53,393,349 Percent Increase In Gross Levy 12.98% 9.18% 14.60% 9.26% 7.73% 7.00% 7.10% 5.71% 4.96% 5.00% 3.92% Existing Tax Base 62,216,047 62,300,128 65,942,570 67,261,421 70,186,682 73,467,611 76,746,394 80,331,786 83,557,617 86,665,629 89,760,430 92,838,665 Existing TIF Districts Decertifying 43,690 - 22,512 251,683 - - - - - New Growth Net Tax Capacity 1,505,361 1,840,388 1,751,440 1,758,576 1,587,446 1,408,686 1,334,793 1,257,869 1,256,438 Total Net Tax Capacity 62,216,047 62,300,128 65,942,570 68,810,473 72,027,070 75,241,563 78,756,653 81,919,232 84,966,303 88,000,422 91,018,299 94,095,103 Tax Rate On Tax Capacity 32.909% 37.199% 38.438% 42.712% 44.494% 46.063% 47.256% 48.877% 49.925% 50.642% 51.583% 51.951% Tax Rate % Change 13.03% 3.33% 11.12% 4.17% 3.53% 2.59% 3.43% 2.14% 1.44% 1.86% 0.71% Existing Tax Base Inflation 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Budget Budget Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected City Taxes on Median Home Market Value 365,200$ 354,500$ 368,400$ 375,800$ 383,300$ 391,000$ 398,800$ 406,800$ 414,900$ 423,200$ 431,700$ 440,300$ % Market Value Increase/(Decrease)-2.93% 3.92% 2.01% 2.00% 2.01% 1.99% 2.01% 1.99% 2.00% 2.01% 1.99% City Property Taxes 1,184.77$ 1,264.77$ 1,364.55$ 1,550.45$ 1,650.73$ 1,750.39$ 1,833.53$ 1,940.42$ 2,026.96$ 2,101.65$ 2,187.12$ 2,249.49$ $ Tax Increase/(Decrease)71$ 80$ 99.78 186$ 100$ 100$ 83$ 107$ 87$ 75$ 85$ 62$ % Tax Increase / (Decrease)6.75% 7.89% 13.62% 6.47% 6.04% 4.75% 5.83% 4.46% 3.69% 4.07% 2.85% City Taxes on Sample Property 1 Market Value 371,400$ 362,900$ 372,700$ 380,200$ 387,800$ 395,600$ 403,500$ 411,600$ 419,800$ 428,200$ 436,800$ 445,500$ % Market Value Increase/(Decrease)-2.29% 2.70% 2.01% 2.00% 2.01% 2.00% 2.01% 1.99% 2.00% 2.01% 1.99% City Property Taxes 1,209.75$ 1,298.25$ 1,382.61$ 1,571.80$ 1,672.97$ 1,773.43$ 1,857.16$ 1,964.86$ 2,051.92$ 2,126.97$ 2,218.07$ 2,280.66$ $ Tax Increase/(Decrease)88$ 84$ 189$ 101$ 100$ 84$ 108$ 87$ 75$ 91$ 63$ % Tax Increase / (Decrease)7.32% 6.50% 13.68% 6.44% 6.00% 4.72% 5.80% 4.43% 3.66% 4.28% 2.82% To: Honorable Mayor and City Council Jennifer Levitt, City Administrator From: Zac Dockter, Parks and Recreation Director Brenda Malinowski, Finance Director Date: June 26, 2025 Subject: Budget Meeting Follow Up Report Introduction Staff has been studying and preparing a response regarding Council comments from the July 23, 2025 Budget Workshop Meeting. Below is a written responses by topic. Parks Seasonal Positions Staff’s recommendation for the addition of three 6-month seasonal park maintenance positions is for the purpose of fulfilling routine maintenance service needs thus freeing full-time employees to focus on more specialized and skilled labor needs. These specialized labor needs include roles such as building maintenance, small construction projects, carpentry, skilled excavation, forestry, landscaping, large- scale athletic facility repair, irrigation installation, turf rehabilitation and more. These roles require significant experience with heavy operating equipment, technical expertise and proper safety procedure know-how and equipment. As the park system has grown both physically and in recreational use, full- time staff has been filling in routine service need gaps such as mowing and ballfield maintenance which significantly reduces the team’s ability to perform those specialized projects. The end result is the work must be contracted out or is delayed as deferred maintenance. The three additional seasonals would be primarily used in the field as follows: Employee 1 – Mowing Crew Employee 2 – Athletic Field/Turf Trimming/Playground Crew Employee 3 – Horticulture Crew The crew work mentioned above is seasonal in nature. Thus, 6-month seasonals are the most efficient approach to fulfilling this need. There are periodic job market challenges to finding enough qualified 6- month applicants, but the management team feels this is an appropriate step forward as opposed to adding a full-time position in the present. If the added employee program works out as planned, more work will be completed when it is most needed for a significantly less cost than a single full-time position. Staff projects the costs of each option as follows: One Full-Time Employee – $117,800 in 2026 and $123,200 in 2027 Three Seasonal Employees - $66,000 Equipment must also be considered when adding any employees in this field of work. With the 6-month employee request, there will be no additional equipment purchase necessary. These positions will utilize equipment already in existence for the jobs aforementioned. The full-time employees that are relieved of those job duties will simply utilize their current trucks and other specialized equipment already in the fleet. Alternatively, adding a full-time position would require the addition of a pickup truck at an estimated capital expense of $80,000 and annual operating and maintenance expense of $4,875. Additional full-time employee expenses to be considered can be found on the attached form entitled “Annual Cost of a New Public Service Worker”. Park Maintenance Overtime work which is the root of this budget addition discussion. However, management truly believes that the next full-time position requested in the future will likely be responsible for some level of weekend and/or evening coverage to help fulfill these service needs and will take necessary steps in future labor contract negotiations to plan accordingly. There does not appear to be any financial savings opportunities in this scenario as it stands today and more likely increases the risk of reduced quality of service in terms of facility maintenance. River Oaks Patron Discount Eagle Valley (Woodbury) Inver Wood (Inver Grove Heights) Valleywood (Apple Valley) Braemar (Edina) Ice Arena Zamboni Replacement stalls out to this day (which causes damage to the ice), hard starts, hitches when driving, backfires and in general does not resurface the ice to staff expectations. Staff has had Zamboni service technicians in frequently the past two years to diagnose these problems and performed the following repairs amounting to over $10K: Parks Employee-Mid range PSW III 2026 2027 Salary 80,585.44 87,385.93 Holiday Pay -- OT 4,495.65 5,167.53 PERA 6,381.08 6,941.51 Medicare 6,508.70 7,080.34 Workers Comp 5,011.28 407.24 Health Insurance 14,400.00 15,840.00 PFML 374.36 407.24 117,800.00 123,200.00 Uniform 1,174.00 - Vehicle 80,000.00 - Mileage per year 1,700.00 0 - Fleet cost per year 3,000.00 - Truck Insurance per year 175.00 - Supplies 200.00 Currently in budget - Training 1,825.00 IT Allocation 1,800.00 Currently in budget 207,674.00 123,200.00 Salary & Benefits: 117,756.51 Other Expenses: 89,560.00 Total: $207,316.51 Annual Cost of a Parks Employee Salary : $80,585.441 OT : $4,495.652 PERA: $6,381.08 Medicare: $6,508.70 Workers Comp: $5,011.28 Health Insurance: $14,400.00 PFML: $374.36 Total: $ 117,756.51 Salary and Benef its Uniform: $860.00 Vehicle: Initial purchase $80,000.00 Mileage/year : $1,700.003 Fleet cost/year: $3,000.00 Truck Insurance/year: $175.00 Supplies: $200.00 Training: $1,825.00 IT Allocation: $1,800.00 Total: $89,560.00 Other Expenses 1: Parks Service Worker at level III. 2: Average of 82 hours in overtime in 2024. 3: Average of 4,412 miles per year.