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10-27-2025
AGENDA CITY COUNCIL WORK SESSION October 27, 2025 - 6:00 PM Lakeville City Hall, Marion Conference Room Members of the public can participate in person at Lakeville City Hall, Marion Conference Room. Members of the public may join the meeting via Teams Meeting, Meeting ID: 276 485 596 886 or by calling Toll Number 1-323-433-2142; Conference ID: 432 130 403#. The mayor will allow for public comments and questions at the appropriate time. The City Council is provided background information for agenda items in advance by staff and appointed commissions, committees, and boards. Decisions are based on this information, as well as City policy, practices, input from constituents, and a council member’s personal judgment. 1. Call to order, moment of silence and flag pledge 2. Citizen Comments 3. Discussion Items 20 min a. Pan-O-Prog Update 30 min b. New Fire Station Design Update Allyn Kuennen, Michael Meyer c. Amended and Restated Joint Powers Agreement with ISD #194 Joseph Masiarchin 25 min d. 2026 Enterprise Fund Budgets & Utility Rates Julie Stahl 10 min e. 2026 Proposed Fee Schedule Julie Stahl 5 min f. 3rd Qtr 2025 Financial Report & Finance Department Update Julie Stahl 4. Items for Future Discussion 5. Committee/ City Administrator Updates 6. Adjourn Page 1 of 88 Date: 10/27/2025 Pan-O-Prog Update Proposed Action N/A Overview Representatives from the Pan-O-Prog Board will provide a debrief of the 2025 festival and highlight initiatives the board is planning for the 2026 event. Supporting Information None Financial Impact: Budgeted: Yes Source: Envision Lakeville Community Values: A sense of community and belonging Report Completed by: Paul Oehme, Public Works Director Page 2 of 88 Date: 10/27/2025 New Fire Station Design Update Proposed Action Discussion only. Overview At the September work session, the City Council reviewed a schematic design of the proposed new fire station planned to be constructed at the northeast corner of 179th Street and Granby Lane. The proposed station was approximately 53,000 square feet with an estimated construction cost of $30.8 million. The City Council directed staff to review the design to find ways to reduce the overall costs of the station. Over the past month staff has been working with CNH Architects and RJM Construction to identify areas of the building that could be eliminated, reduced in size or reconfigured to help lower the overall construction cost of the station without compromising efficiencies or service levels. The attached plans identify several areas of the fire station that have been revised to reduce the overall square footage of the station by 3,256 square feet which has reduced the estimated construction cost of the station to $29,605,624. A reduction of $1,223,471 from the previous plan. The team is continuing to review the plans to possibly find further reductions without comprising the current and future operations of the fire department. The exterior building materials and architecture will also be reviewed to ensure it includes good quality durable materials, with a modest building design. Staff and representatives from CNH Architects will be at the October work session to review and discuss the proposed revisions and to discuss next steps. Supporting Information 1. Schematic Overall Site Plan 2. Schematic First Floor Plan 3. Schematic Second Floor Plan 4. RJM Budget 10-27-25 Financial Impact: $N/A Budgeted: No Source: Envision Lakeville Community Values: Safety Throughout the Community Page 3 of 88 Report Completed by: Allyn Kuennen, Assistant City Administrator and Mike Meyer, Fire Chief Page 4 of 88 G r a n b y L a n e D o d d B o u l e v a r d 1 3 2 ' - 6 " 1 0 0 ' - 0 " O u t d o o r F i t n e s s F i r e f i g h t e r P a r k i n g S t a l l s ( 1 7 ) A d m i n P a r k i n g S t a l l s ( 1 0 ) P u b l i c P a r k i n g S t a l l s (3 6 ) 3 0 ' - 0 " P r o p e r t y S e t b a c k L i n e P a r k i n g S e t b a c k L i n e B u i l d i n g S e t b a c k L i n e 2 7 ' - 0 " 5 ' - 0 " 3 0 ' - 0 " Proposed Stormwater Proposed Fire Station 2 4 ' - 0 " 6 5 ' - 7 1 /2 " © CNH ARCHITECTS, LTD. CNH NO.: REVISIONS: DATE: 7300 147TH WEST STREET SUITE 504 APPLE VALLEY, MN 55124 (952) 431-4433 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 A B C D E F G H J K L M A B C D E F G H J K L M 2 3 4 5 6 7 8 9 10 11 12 13 14 151 N P Q R 16 17 18 16 17 18 N P Q R C: \ R E V I T ( l o c a l ) \ 2 0 2 4 \ 2 4 0 5 1 - L a k e v i l l e C o m b i n e d F i re S t a t i o n _ b j a c o b s o n - c n h . r v t 10 / 2 0 / 2 0 2 5 2 : 3 6 : 3 2 P M NOT FOR CONSTRUCTION SC87 La k e v i l l e C o m b i n e d F i r e S t a t i o n La k e v i l l e , M N 24051 10/20/25 Schematic Overall Site Plan 1" = 30'-0"SC87 A1 Schematic Overall Site Plan Page 5 of 88 SC B A W a s h e r RE F . REF. RE F . Fill Station To o l Ch e s t Cylinder Cart DW Fitness Quartermaster Storage Fitness Storage Mechanical Storage Vestibule Stair A IT Vestibule Lobby Conference Room Classroom / EOC Storage - Tables & Chairs Storage - Training Equipment Breakout Room Janitor Truck Display Men's Restroom Apparatus Bays Apparatus Bays Janitor Storage - Equipment Racks Storage -EMS Tornado Shelter / Locker Room Mech / Elec Restroom / Shower Restroom / Shower Restroom Stair B Elevator Firepole Vestibule Training Captain Fire Marshal Fire InspectorAdmin Assistant Conference Room Kitchenette / Collab Area Future Workspace Storage Battalion Office Captain Office Firefighter Workroom / Dispatch Battalion Chief Fire Chief Hose / Training Tower SCBA Mech / Elec / IT Mezzanine Stair Turnout Gear Fire Inspector Chemical Detox (Future) Riser Room Electrical Future Office Work Room Storage / Janitor / Truck Wash Gear Wash / Decon Decon Restroom Decon Showers Asst. Chief Women's Restroom Decon Bay © CNH ARCHITECTS, LTD. CNH NO.: REVISIONS: DATE: 7300 147TH WEST STREET SUITE 504 APPLE VALLEY, MN 55124 (952) 431-4433 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 A B C D E F G H J K L M A B C D E F G H J K L M 2 3 4 5 6 7 8 9 10 11 12 13 14 151 N P Q R 16 17 18 16 17 18 N P Q R C: \ R E V I T ( l o c a l ) \ 2 0 2 4 \ 2 4 0 5 1 - L a k e v i l l e C o m b i n e d F i re S t a t i o n _ b j a c o b s o n - c n h . r v t 10 / 2 0 / 2 0 2 5 2 : 4 3 : 2 7 P M NOT FOR CONSTRUCTION SC88 La k e v i l l e C o m b i n e d F i r e S t a t i o n La k e v i l l e , M N 24051 10/20/25 Schematic First Floor Plan 1" = 10'-0"SC88 A1 Schematic First Floor Plan Page 6 of 88 W D WD SCBA Compressor Kitchen Dining Dayroom Laundry / Janitor Stair B Stair A Pantry Mech Chase Elevator Firepole Hotsy Training Mezzanine Training Storage Mech / Elec Hose / Training Tower Mezzanine Stair Training Hallway Lo c k e r H a l l w a y Restroom Dorm Lo c k e r H a l l w a y Dorm Restroom Lo c k e r H a l l w a y Dorm Restroom Restroom Dorm Lo c k e r H a l l w a y Dorm Restroom Wellness Locker Hallway Dorm Restroom Dorm Restroom Locker Hallway Dorm Restroom Dorm Restroom Locker Hallway Dorm Restroom Lo c k e r H a l l w a y Locker Hallway Locker Hallway Patio Training Hallway Hose / Training Tower © CNH ARCHITECTS, LTD. CNH NO.: REVISIONS: DATE: 7300 147TH WEST STREET SUITE 504 APPLE VALLEY, MN 55124 (952) 431-4433 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 A B C D E F G H J K L M A B C D E F G H J K L M 2 3 4 5 6 7 8 9 10 11 12 13 14 151 N P Q R 16 17 18 16 17 18 N P Q R C: \ R E V I T ( l o c a l ) \ 2 0 2 4 \ 2 4 0 5 1 - L a k e v i l l e C o m b i n e d F i re S t a t i o n _ b j a c o b s o n - c n h . r v t 10 / 2 0 / 2 0 2 5 2 : 3 6 : 4 5 P M NOT FOR CONSTRUCTION SC89 La k e v i l l e C o m b i n e d F i r e S t a t i o n La k e v i l l e , M N 24051 10/20/25 Schematic Second Floor Plan 1" = 10'-0"SC89 A1 Schematic Second Floor Plan 1" = 10'-0"SC89 M15 Schematic Third Floor Plan - Traning / Hose Tower Page 7 of 88 Allyn Kuennen Assistant City Administrator City of Lakeville Re:City of Lakeville Fire Station Dear Allyn Kuennen, Total Project Estimate:$30,829,096 ALTERNATES: No. 1: Eliminate snow melt system at concrete aprons Deduct ($60,750) No. 2: Reduce staff parking at fitness & reduce pavements/sidewalks Deduct ($30,630) No. 3: Reduce fitness room (400sf)Deduct ($94,652) No. 4: Reduce fitness storage (60sf)Deduct ($14,294) No. 5: Reduce locker room, restroom, & shower (260sf)Deduct ($64,029) No. 6: Remove fitness vestibule & eliminate (1) tornado shelter door Deduct ($45,411) No. 7: Remove truck display (560sf)Deduct ($162,873) No. 8: Remove conference room (435sf)Deduct ($124,258) No. 9: Remove operable partition & reduce classroom by (148sf)Deduct ($72,669) No. 10: Reduce classroom seating capacity from 80 to 70 (200sf)Deduct ($58,169) No. 11: Reduce apparatus bays by 4' (644sf)Deduct ($167,235) No. 12: Reduce hose/training tower on (3) levels (249sf)Deduct ($19,404) No. 13: Turn (2) dorms suites into future (rough in only) Deduct ($67,895) No. 14: Eliminate (relocate) wellness (300sf)Deduct ($90,369) No. 15: Metal stud framing at admin space in lieu of CMU Deduct ($150,834) Total Deduction:($1,223,471) Total Project Estimate with Deductions:$29,605,624 CLARIFICATIONS: No. 1: No. 2: No. 3: No. 4: No. 5: Sincerely, Brad Barickman Vice President - Community Our estimate does not include any SAC and WAC fees. (Included in soft cost) Thank you for the opportunity to provide this estimate. Our team is experienced and competent in your market; this applied knowledge will assist the team in obtaining the best possible project value. Please feel free to contact RJM if you have any questions or need additional information. October 21, 2025 RJM Construction is pleased to present a budget for the City of Lakeville Fire Station project located in Lakeville, MN. Together with the City of Lakeville and CNH Architect, we can work as a team to deliver the project goals of cost, schedule and quality. Our estimate is based upon drawings dated August 8th, 2025. This estimate assumes that all work will be done during regular business hours. We do not include removing, storing or re-installing any systems furniture. Phone, data, AV and security are all excluded. (Included in soft cost) Architectural and engineering fees are not included. (Included in soft cost) Page 8 of 88 ESTIMATE DATE: PROJECT: ARCHITECT: DRAWING DATE: System $/System Base $/gsf DESCRIPTION Qty Unit SF Estimate 53,151 Construction Costs Cleaning & Waste Management 1 LS $197,378.00 $197,378 $3.71 39,625 SF $25.73 $1,019,603 $19.18 53,151 SF $60.32 $3,206,092 $60.32 37,145 SF $61.52 $2,285,215 $42.99 39,625 SF $29.19 $1,156,543 $21.76 53,151 SF $79.07 $4,202,794 $79.07 2 ST $80,000.00 $160,000 $3.01 53,151 SF $4.75 $252,467 $4.75 53,151 SF $29.00 $1,541,379 $29.00 53,151 SF $58.00 $3,082,758 $58.00 53,151 SF $46.50 $2,471,522 $46.50 1 LS $261,140.00 $261,140 $4.91 39,625 SF $17.51 $693,650 $13.05 39,625 SF $14.38 $570,000 $10.72 64,258 SF $14.16 $909,855 $17.12 2,900 LF $18.00 $52,200 $0.98 3,662 SY $35.00 $128,170 $2.41 1 LS $225,000.00 $225,000 $4.23 Preconstruction 1 LS $25,000.00 $25,000 $0.47 59 WK $12,266 $723,665 $13.62 59 WK $1,506 $88,851 $1.67 1 LS $253,615 $253,615 $4.77 1 LS $74,932 $74,932 $1.41 1 LS $20,000 $20,000 $0.38 1 LS $277,730 $277,730 $5.23 Subtotal Construction Costs $23,879,558 $449.28 3.00%$716,387 $13.48 5.00%$1,229,797 $23.14 5.00%$1,229,797 $23.14 1.25%$338,194 $6.36 Total Construction Estimate $27,393,734 $515.39 SAC/WAC $175,000 $3.29 Building Envelope Commissioning $25,000 $0.47 City of Lakeville Fire Station CNH Architects August 8, 2025 October 21, 2025 Footings and Foundations Structure Enclosure Roof Interiors Elevator Utilities Reinforced Concrete & Sidewalks Curb and Gutters Asphalt Paving Landscaping and Irrigation Allowance Fire Protection Plumbing HVAC Electrical Temp Barriers & Enclosures Earthwork Owner Costs General Conditions General Requirements General Liability Insurance Builders Risk Insurance Contractor's Fee Building Permit Escalation Design Contingency Construction Contingency Bond Page 2 Of 3 Page 9 of 88 ESTIMATE DATE: PROJECT: ARCHITECT: DRAWING DATE: City of Lakeville Fire Station CNH Architects August 8, 2025 October 21, 2025 HVAC Commissioning $30,000 $0.56 Special Inspections $70,000 $1.32 Low Voltage Cabling $125,000 $2.35 Audio Visual $250,000 $4.70 Security Systems $150,000 $2.82 Station Alerting System $125,000 $2.35 Owner FF&E $425,000 $8.00 GearGrid $60,000 $1.13 Owner Furniture $346,738 $6.52 Owner Artwork and Signage $10,000 $0.19 Subtotal Owner Costs $1,791,738 $33.71 Design Fees Arch. Design Fees $1,643,624 $30.92 Subtotal Design Fees $1,643,624 $30.92 Contingency Owner Contingency $0 $0.00 Subtotal Contingency $0 $0.00 Total Project Estimate $30,829,096 $580.03 Page 3 Of 3 Page 10 of 88 Date: 10/27/2025 Amended and Restated Joint Powers Agreement with ISD #194 Proposed Action No formal action. Overview The City of Lakeville and Independent School District #194 have utilized a joint powers agreement (JPA) for many years to address the use of shared facilities and the conditions under which those facilities are used. The original JPA, adopted in 2006, allowed for periodic reviews of the agreement terms and has been modified twice since its initial adoption. Either party is welcome to propose changes to the agreement; the agreement is automatically renewed annually. Given the changes to park facilities and recreation programming, staff felt that a review of the JPA was necessary at this time. Staff have met several times over the last few months with representatives from the school district to amend the agreement. Attached in your packet is the 2013 JPA and the proposed Amended and Restated Joint Powers Agreement with ISD #194. The proposed changes to the JPA will provide clarity to staff and permit holders on field usage, closures and scheduling processes. Additionally, the agreement modifies the maintenance partnership between the city and the school district for school district- owned fields. Maintenance performed by City staff on district-owned fields will be transferred to the school district. This will be a beneficial change for Parks staff, allowing for the reallocation of their time and resources to other City park-related duties. Staff presented the amended JPA to the Parks, Recreation and Natural Resources Committee at their October 1 meeting. The committee made a recommendation to approve the amended agreement as presented by City staff. At this time, staff is asking for feedback from the Mayor and City Council on the proposed Amended and Restated Joint Powers Agreement with ISD #194. Supporting Information 1. Amended and Restated ISD 194 Joint Powers Agreement Financial Impact: $NA Budgeted: No Source: NA Envision Lakeville Community Values: Report Completed by: Joe Masiarchin, Parks and Recreation Director Page 11 of 88 236507v1 Amended and Restated JOINT POWERS AGREEMENT AMENDED AND RESTATED JOINT POWERS AGREEMENT (“Agreement”) made ____ day of _____________, 2025 by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation (“City”), and INDEPENDENT SCHOOL DISTRICT No. 194 (“District”) . RECITALS 1. The City and District have had a long history of shared use of buildings and grounds for recreational, instructional, and meeting purposes. This shared use has benefited the residents of the City and District and has resulted in the substantial savings of tax dollars by avoiding duplication and by making optimal use of facilities. 2. Minn. Stat. § 471.15, et seq., authorizes the City and District to enter into a joint powers agreement for the shared use of grounds and buildings. 3. The City and the District entered into a Joint Powers Agreement regarding the shared use of facilities in 1993 which agreement was amended and restated on October 16, 2006 and on November 12, 2013 (“Original Agreement”). 4. The City and the District desire to amend and restate the Original Agreement as provided in this Agreement. NOW, THEREFORE, the parties agree as follows: 1. Use of District Buildings and Grounds. The City may use District buildings and grounds located within the City for City-sponsored programs, subject to availability. Requests must be submitted in writing to the District at least one week prior to the first date of use. A Facility Use Permit will serve as confirmation of reservation. The Director of Community Education may waive the advance notice requirement. The City will not be charged rent or consumable fees, except as specified in Section 3. 2. Use of City Buildings and Grounds. The District may use City buildings and grounds located within the District for District-sponsored programs, subject to availability. Requests must be submitted in writing to the City at least one week prior to the first date of use. A Permit Receipt will serve as confirmation of approved Page 12 of 88 236507v1 reservation. The Parks & Recreation Director may waive the advance notice requirement. The District will not be charged rent or consumable fees, except as specified in Section 3. 3. Additional Expenses. Both parties agree that no custodial or facility attendant wages or overtime will be charged. However, if either party incurs additional expenses directly related to the event that would not otherwise occur, those costs may be billed to the event sponsor. These may include, but are not limited to: 3.1 Food Service wages/overtime when kitchen or concession stands use is involved. 3.2 Wages for any special services or supervision (i.e. Technical or Theater Staff) which is deemed necessary by the School Principal, Facility Use & Systems Manager, Director of Community Education, Recreation Manager, Art Center Manager or Parks & Recreation Director. 3.3 Additional garbage removal if necessary 3.4 Snow removal if necessary 3.5 Any mutually agreed-upon fees by the Director of Community Education and the Parks & Recreation Director 4. Usage rules. 4.1 The requesting District or City representative is responsible for obtaining and sharing any facility use procedures or rules and communicating the procedures with the event or site supervisor. 4.2 Events sponsored by the District or City that result in issues such as inadequate supervision, vandalism, spilled food, or excessive trash may be billed for custodial services. Repeated problems may result in denial of future facility use. 5. Site-Specific Agreements. The parties may from time to time enter into site- specific agreements. These site specific agreements must be approved in writing by the Director of Community Education and the Parks & Recreation Director. This Joint Powers Agreement shall not be applicable to a site operating under such an agreement. 6. Informal Arrangements to Continue. The current practices as modified herein shall continue: 6.1 The City and the District will share use and storage of equipment as agreed Page 13 of 88 236507v1 upon in writing by the Director of Community Education and the Parks & Recreation Director. 7. Use and Scheduling. 7.1 The parties agree that District facilities shall be treated as “school ground” as contemplated by the alcohol control provision of Minn. Stat. § 624.701; that the District’s alcohol and tobacco policies and administrative procedures, and any additions or amendments thereto, shall apply to all District facilities; that the area should be appropriately posted; and that the City may withhold access from groups for drug, alcohol or tobacco violations. The City agrees to enforce applicable statutes and ordinances in and around District facilities in the same way the City enforces applicable statutes and ordinances on park and City property. 7.2 As reference for the purpose of understanding current usage, the parties’ current use of buildings and grounds is set forth in Exhibit “A”. Exhibit “A” is provided as an example of use and does not imply a future obligation. 8. Liability Insurance and Indemnification. 8.1 The District agrees to maintain insurance for commercial general liability in an amount no less than the minimum statutory limits of liability set forth in Minnesota Statutes § 466.01 et. seq.. A certificate of insurance naming the City as an additional insured will be sent to the City within 30 days of the execution of this agreement. 8.2 The City agrees to maintain insurance for commercial general liability or through the League of Minnesota Cities Insurance Trust in an amount no less than the minimum statutory limits of liability set forth in Minnesota Statutes § 466.01 et. seq.. A certificate of insurance naming the District as an additional insured will be sent to the District within 30 days of the execution of this agreement. 8.3 Subject to the limitations and immunities in Minnesota Statutes, the District agrees to indemnify, hold harmless and defend City from and against any claims, costs, causes of action, expenses and liabilities, including but not limited to reasonable attorney’s fees the City incurs because of the District’s negligent acts or its failure to comply with the terms of the Agreement. 8.4 Subject to the limitations and immunities in Minnesota Statutes Chapter 466, the City agrees to indemnify, hold harmless and defend the District from and against any claims, costs, causes of action, expenses and liabilities, including but not limited to reasonable attorney’s fees the District Page 14 of 88 236507v1 incurs because of City’s negligent acts or its failure to comply with the terms of the Agreement. 9. Term 9.1 The term of this Agreement shall extend from the date hereof to ________, and shall be automatically renewed thereafter on annual basis unless either party elects to terminate the agreement subject to the provisions in Section 9.2. 9.2 Six months prior to ________ every other year, and thereafter six months prior to each bi-annual renewal date, either party may terminate this Agreement by written notice to the other party. 9.3 The parties agree to a formal review of this Agreement every four years. 10. Remedies. In the event that either party fails to perform any obligation under this Agreement, and such failure continues for ninety (90) days after written notice from the other party, such other party’s exclusive remedy is to terminate this Agreement. 11. Effect of Agreement. This Agreement amends, restates, and supersedes in its entirety, the Original Agreement, which shall be of no further force and effect, and shall become null and void, upon the full execution of this Agreement. THIS AGREEMENT executed by the parties hereto the day and year first above written. CITY OF LAKEVILLE, a Minnesota INDEPENDENT SCHOOL DISTRICT municipal corporation NO. 194 BY: BY: Luke Hellier, Mayor Matt Swanson, Chair AND AND Ann Orlofsky, City Clerk Kim Baker, Clerk Page 15 of 88 Page 1 Date: 10/27/2025 Proposed 2026 Enterprise Fund Budgets & Utility Rate Projections Proposed Action: Staff is seeking direction from the Council regarding: • Planned/proposed Utility fund budgets and 2026 rate recommendations • Proposed 2026 Liquor fund budget Overview The rate changes for 2026 include a 6% increase to Water rates, 3% increase to Sewer rates, 4% increase to the Environmental Resources rate, and 5% for the Street Light rate. The 10-year projections are included by Fund and incorporate the anticipated revenues from the 2026 rate changes, proposed 2026 budgets, staff projections for future years, and the Capital Improvement Plan. Program Summary Cash targets One of the financial targets is a certain level of unassigned cash by fund at the end of each year. For Water and Sanitary Sewer, this amount is currently $500,000. For Street Lights and Environmental Resources, the amount is currently $100,000. Our model also includes an estimate of planned capital expenditures for the following year when calculating the amount of cash on hand needed at the end of each period. Many of the City’s capital improvement projects are led and/or influenced by the County, and although we determine jointly what needs to be replaced, the cost is somewhat out of our control, and the level of predictability in our costs is reduced. We have included estimates of the utility costs related to these projects; however, some costs are unknown until the project is underway. At some point in the future, we may desire to increase the unassigned cash targets beyond $500,000 and $100,000. Risks The projected cash and revenue amounts by year can vary significantly from actuals depending on weather and usage. The 10-year projections discussed and portrayed in charts below are based on our predictions at a point in time, and our best guess of normal volumes based on our historical data. Effective 1/1/2023, Lakeville implemented four separate water tiers, when historically it was three tiers. In October 2024, Lakeville transitioned to a new Utility Billing system. This impacts the consistency of reports we have available to analyze the data, and we do not yet have a full year of data in the new system. Additionally, the weather in recent years has been somewhat abnormal, with a drought in 2023 and an abnormally rainy year in 2024. Therefore, our assumption of “normal” volume levels may shift over time as we progress under the new tier structure, in combination of whether a year has more or less rainfall, and as we have more data in the new utility billing system to analyze. Page 16 of 88 Page 2 Aging infrastructure The 10-year rate projections include estimates for replacement or upgrade of aging utilities infrastructure. The chart below includes various statistics related to the current utility infrastructures, and illustrates the significant cost involved in maintaining the infrastructure. Infrastructure item: Statistic Water Water mains (miles) 402* Fire hydrants 4,595 Wells 19 Water Towers 6 Water capital asset gross historical cost $189,552,000 Sanitary Sewer Sanitary sewer mains (miles) 309* Sanitary sewer lift stations 19 Sanitary sewer capital asset gross historical cost $108,669,000 Source: City of Lakeville 2024 Annual Comprehensive Financial Report, except items with asterisk* were updated based on more recent information. Proposed 2026 rates and impact The following chart reflects the fee changes that have been incorporated into the proposed revenues for each of the Utility Funds in the next year: 2026 2025 Qu ar t er ly r at es Basis Pr op osed Act u al Water base Account 11.58$ 10.92$ 0.66$ 6% Water tier 1 -up to 6,000 gallons per quarter Gallonage*1.51$ 1.42$ 0.09$ 6% Water tier 2 -over 6,000 and up to 15,000 gallons per quarter (additional 9,000 gallons max)Gallonage*1.67$ 1.58$ 0.09$ 6% Water tier 3 -over 15,000 and up to 30,000 gallons per quarter (additional 15,000 gallons max)Gallonage*3.23$ 3.05$ 0.18$ 6% Water tier 4 -over 30,000 gallons per quarter Gallonage*5.67$ 5.35$ 0.32$ 6% Irrigation sprinkler accounts Gallonage*5.67$ 5.35$ 0.32$ 6% Water testing fee**3.81$ 2.43$ 1.38$ 57% Sanitary sewer base Account 11.68$ 11.34$ 0.34$ 3% Sanitary sewer usage Gallonage*5.79$ 5.62$ 0.17$ 3% Sanitary sewer non metered accounts Account 115.90$ 112.50$ 3.40$ 3% Street light s Account 10.63$ 10.12$ 0.51$ 5% front footage 0.2974$ 0.2832$ 0.0142$ 5% Environmental Resources Fee Account 16.00$ 15.38$ 0.62$ 4% Environmental Resources Fee Annual 64.00$ 61.53$ 2.47$ 4% * Per 1000 gallons ** The Water testing fee is mandated by the state-- this is a pass-through fee for the City. Pr op osed 2026 Ut ilit y Fee St r u ct u re In crease Page 17 of 88 Page 3 The estimated impact to an average residential user during a winter quarter is an increased cost of $7.47, which is approximately $2.49 per month. The estimated impact to a residential user with average summer usage is an increased cost of $11.53 per quarter, which is approximately $3.84 per month. The estimated impact on a high irrigation residential user is an increased cost of $30.34 per quarter, which is approximately $10.11 per month. PERSONNEL REQUESTS There are no new positions requested that impact the 2026 Utility budgets. UTILITY BILLING CYCLES The City currently issues utility bills on a quarterly basis. Staff had previously contemplated changing to a monthly billing cycle to provide customers better visibility to their usage and costs. With the recent implementation of a fixed base meter system throughout the City giving customers the ability to see real-time usage via WaterSmart, Staff currently does not believe the increase in billing/processing costs that would result from 12 annual billings instead of four would be worthwhile, but is interested in hearing Council’s thoughts on this topic. Imp act of Ut ilit y Rat e In cr eases (p er q u ar t er )- Av g Win t er Usag e 2026 2025 Ch an g e W ater 35.67$ 33.66$ 2.01$ Sewer 98.53 95.58 2.95 Street Lights 10.63 10.12 0.51 Environmental Res ourc es 16.00 15.38 0.62 State Surcharge 3.81 2.43 1.38 Tota l 164.64$ 157.17$ 7.47$ Imp act of Ut ilit y Rat e In cr eases (p er q u ar t er )- Av g Su mmer Usag e 2026 2025 Ch an g e W ater 109.07$ 103.00$ 6.07$ Sewer*98.53 95.58 2.95 Street Lights 10.63 10.12 0.51 Environmental Res ourc es 16.00 15.38 0.62 State Surcharge 3.81 2.43 1.38 Tota l 238.04$ 226.51$ 11.53$ Imp act of Ut ilit y Rat e In cr eases (p er q u ar t er )- Hig h Ir r ig at ion Usag e 2026 2025 Ch an g e W ater 445.58$ 420.70$ 24.88$ Sewer*98.53 95.58 2.95 Street Lights 10.63 10.12 0.51 Environmental Res ourc es 16.00 15.38 0.62 State Surcharge 3.81 2.43 1.38 Tota l 574.55$ 544.21$ 30.34$ Page 18 of 88 Page 4 WATER OPERATING FUND The proposed 2026 Water Operating Fund budget reflects the cost of operating the City’s water system as well ongoing well rehabilitation, watermain maintenance as part of the 2026 Street Reconstruction Project and other 2026 street projects. This fund has annual debt service obligations of $964K-$1.32 million in the next five years for $6.405 million in remaining bond principal at 12/31/2025, from bonds issued between 2014 and 2021. Debt is not planned to be issued for regular major maintenance projects in the future, however bonds will likely be needed to fund a portion of the future water treatment plant expansion or new satellite water treatment plant (currently planned for 2027). Two different scenarios are included with the 10-year water projection attachments. 1) The impact on rates of building a $44M satellite water treatment plant in 2027. 2) The impact of expanding the current water treatment plant in 2027, at a cost of $26.1M. Both scenarios include a proposed increase of 6% in 2026, but the amount of the cash contribution from Water Operating Fund toward the water treatment plant project in 2027 could be less with the expansion project, and future rate increases would also be lower. The underlying goals with annual rate adjustments are as follows: • Maintain a minimum cash balance to fund three months of operating expenses, debt service payments, major maintenance expenses (net of any bond proceeds during the period), emergency maintenance expenses (target of $500K), and accumulate a cash contribution toward the Water Treatment Plant project to reduce the amount of bonds needed on that project; • Avoid issuing debt for major maintenance projects in future years and reduce the amount of bonds needed for the Water Treatment Plant construction in 2027. This means that the current users of the water system are paying for the depreciation of the system (replacement costs) as we go. The current debt outstanding is scheduled to be completely paid off by 2036 (excluding any new bonds issued for the water treatment plant project). • Maintain a debt service coverage ratio of at least 125%. • Maintain a ratio of unrestricted net assets that is at least 50% of the subsequent year’s operating expenses. The proposed water rates for 2026 (and projected increases for 2026-2034) are projected to have the following impacts on the financial targets for the years 2026-2035: • Achieve cash target for all future years • Achieve debt service coverage ratio for all years 2026-2035 except for 2026 and 2028 • Achieve unrestricted net assets percentage for all years 2026-2035 except for 2027. Staff develops the rate projections using a combination of historical financial and volume data as well as assumptions about future growth and volumes. There are three large unique financial considerations taken in the current projections. 1. The first is the projected ability to contribute $8M-$9M in cash toward the water treatment plant expansion or new water treatment satellite plant (whichever option Council opts to proceed with in the future). This has been made possible by the following: Page 19 of 88 Page 5 a. Deliberate past rate increases and careful review of projections to avoid additional debt issuance for this fund b. Drought conditions in recent years, which have prompted customers to water grass and therefore increased water revenues beyond expected amounts through 2023. Revenues in 2024 and 2025 have not been as high due to rainier conditions at various points during the watering season, but excess funds remain set aside for the water treatment plant project from prior years. c. The City received approximately $740K in revenues from the 3M PFAS settlement during 2025, which will be set aside for PFAS mitigation systems as part of the 2027 water treatment plant project. The City’s total award from the 3M settlement distribution is $1.35M (less attorney fees), so the City is anticipating additional funding that is not currently included in the projections due to uncertain timing and precise amounts. 2. From 2014-2021, there was debt issued on behalf of the Water Operating fund for regular maintenance activities with principal totaling $17.945M. This level of debt carries a significant principal and interest cost on an annual basis (2026 payments for principal and interest are more than $1.37M). These annual bond issuances started to mature in 2025, and there is a significant decrease in annual payments beginning in 2031 (down to $783K of principal and interest payments that year). 3. The 2027 water treatment plant project will likely require bond financing for a portion of the costs, with the bulk of the principal and interest repayment to come from the Water Operating Fund. a. The current projections in scenario #1 for the satellite water treatment plant assume $35M of bonds will be issued in 2027 toward the $44M project, with $500K-$2M contributions from the Water Operating Fund toward principal and interest repayment each subsequent year for 20 years. b. The current projections in scenario #2 for the water treatment plant expansion assume $10M of bonds will be issued in 2027 toward the $26.1M project, with $500K-$800K contributions from the Water Operating Fund toward principal and interest repayment each subsequent year for 20 years. The projected rates under each scenario over the next 10 years, both using 20-year bonds for repayment, are as follows: *The 2026 rate is planned to be the same under either scenario so that the Water Operating Fund can contribute as much as possible in cash to either project to reduce the amount of bonds that need to be issued. After the existing and new debt matures, the current projections indicate that we may be able to hold water rates flat and/or decrease the rates for several years and still meet financial targets. 2026*2027 2028 2029 2030 2031 2032 2033 2034 2035 Satellite plant 6%5%5%0%0%0%0%0%0%0% Expansion 6%2%0%0%0%0%0%0%0%0% Page 20 of 88 Page 6 SANITARY SEWER OPERATING FUND The proposed 2026 Sanitary Sewer Fund budget reflects the cost of operating the City’s wastewater system as well as sewer main repair projects, other major maintenance and debt repayment for the debt that was issued in 2016 for lift station #6 rehabilitation. In addition, the Metropolitan Wastewater Charge as communicated by the Met Council will have an 8.3% increase for the City of Lakeville in 2026. The wastewater charges are the most significant component of the Sanitary Sewer Fund annual budget. The City does not control this cost, although the cost is based on our share of the discharge into the regional wastewater system. To keep rates lower and due to the current cash position in the fund, we are only proposing a 3% increase rather than an amount closer to the Met Council increase. The 2026 revenues for sanitary sewer sales are based on increasing the rates by 3%. Years 2026- 2035 reflect annual increases of 3%-5%. The underlying goals with these rate adjustments are as follows: • Maintain a minimum cash balance to fund three months of operating expenses, debt service payments, and emergency maintenance expenses. • Maintain a debt service coverage ratio of at least 125%. The bonds outstanding as of 12/31/2024 were completely paid off during 2025, and no additional debt is planned to be issued for the Sewer Operating Fund. • Maintain a ratio of unrestricted net assets that is at least 50% of the subsequent year’s operating expenses. The 2026 sewer rates and projected increases for 2027-2035 are projected to have the following impacts on the financial targets: • Cash targets met in all years 2026-2035 • Achieve debt service coverage ratio for all years 2026-2035 • Achieve unrestricted net assets percentage for all years 2026-2035 Currently, the projected sewer revenues by year are not sufficient to meet the forecasted expenses by year for all the next 10 years. On the other hand, the cash position by year is projected to exceed the desired cash position/targets. Since we would prefer to increase rates by the smallest possible amount to cover costs, staff is comfortable with the revenues being slightly under the expenses by year, knowing there is excess cash to cover the shortfall. We will continue reviewing each year to balance minimal rate changes with meeting the financial targets. One possibility for use of the excess cash on hand is to do a one-time transfer to the Water Operating Fund to assist with the construction costs of the Water Treatment Plant expansion or Satellite Plant project, to further reduce the amount of bonds issued on that project. STREET LIGHTING OPERATING FUND The Street Lighting Operating Fund reflects the cost of operating city street lights. The 2026 revenues for the Street Lighting Operating Fund reflect a rate increase of 5%. Increases of 4-5% are planned for 2027-2030, with 0% increases thereafter. Current cash projections include some Xcel street light replacements based on available information from Xcel and staff estimates, but the timing of those projects is uncertain. As those projects are scheduled in the future, rates may need to be adjusted accordingly. Page 21 of 88 Page 7 The underlying goals of street light rates are as follows: • Maintain a minimum cash balance to fund three months of operating expenses, debt service payments, and emergency maintenance expenses ($100K). • Maintain a debt service coverage ratio of at least 125%. The current debt outstanding is scheduled to be completely paid off by 2026. • Maintain a ratio of unrestricted net assets that is at least 50% of the subsequent year’s operating expenses. The current Street Light rate estimates are projected to have the following impacts on the financial targets: • Achieve cash targets for nine of the 10 years presented • Achieve debt service coverage ratio for all years presented except for 2026, but the debt will be paid off in 2026 anyhow. • Achieve unrestricted net assets percentage for all years presented ENVIRONMENTAL RESOURCES OPERATING FUND The Environmental Resources Fund reflects the cost of managing, promoting, and protecting the City’s natural resources including lakes, wetlands, streams, prairies and woodlands. The 2026 budget includes annual storm water rehabilitation projects as well as grant-funded projects. The revenues for this Fund are based on an increase of 4%, with annual increases between 1%-5% projected for 2027-2035. The underlying goals with these rate adjustments are as follows: • Maintain a minimum cash balance to fund three months of operating expenses, debt service payments, and emergency maintenance expenses ($100K). • Maintain a debt service coverage ratio of at least 125%. • Maintain a ratio of unrestricted net assets that is at least 50% of the subsequent year’s operating expenses. The proposed Environmental Resources rate projections are anticipated to have the following impacts on the financial targets: • Meeting all cash targets for all years presented • The Environmental Resources Fund currently does not hold any debt, so the debt service coverage ratio target is not applicable. • Meeting unrestricted net assets target percentage for 2026-2029, but slightly below the target in 2030-2033, but back up to the target in 2034-2035. The cash position is expected to exceed targeted levels for all years presented, therefore, staff is comfortable with being below the target for the unrestricted net assets percentage in 2030-2033. This will be monitored as projections are updated in subsequent years. CHARTS The following charts reflect the expenses, revenues, and projected cash position for each of the utility funds, including proposed rate increases. These will be referenced during our discussion. Page 22 of 88 Page 8 WATER CHARTS The water charts below are based on scenario #1, the satellite water treatment plant project. Note- Cash position with rate increases line includes anticipated contributions to the water treatment plant project in 2027 (assumes payment toward the project in 2027, so the above chart shows a drop in both the cash position and the desired cash position at the end of 2027). Page 23 of 88 Page 9 Note- The sharp increase in revenues in 2028 represents the estimated timing of the capital contribution from the Water Trunk Fund for the water treatment plant project. It is not cash revenues. Page 24 of 88 Page 10 Page 25 of 88 Page 11 SEWER CHARTS Page 26 of 88 Page 12 Page 27 of 88 Page 13 STREET LIGHT CHARTS Page 28 of 88 Page 14 *The desired cash position for the Street Light Operating Fund includes a reserve for unscheduled capital replacement, which is our current estimate from data obtained from Xcel Energy. The timing of these replacements will be largely determined by Xcel. Page 29 of 88 Page 15 ENVIRONMENTAL RESOURCES CHARTS Page 30 of 88 Page 16 2026 Liquor Fund Budget The 2025 sales revenues of all four stores combined are looking to come in over budget, and profit margins are slightly up. Compared to the 2025 budget, the 2025 year-end estimate reflects a $374 K increase in sales with a $131K increase in gross profit. Expenditures in 2025 are expected to come in $236K above budget. After transfers out (and including depreciation and OPEB expenses), the Liquor Fund anticipates ending 2025 with a decrease in net position of $727K versus the budgeted decrease in net position of $865K. Staff is proposing to increase the 2026 sales and gross profit budgets slightly to align more with recent sales activity. The budgeted 2026 gross profit is $190K (3%) more than the 2025 budget. The new Keokuk location’s projected sales for 2025 are roughly $4K more than budgeted. The 2026 budget reflects the following increases/decreases in sales revenues (combined total increase of 2.6%): • Heritage – 3.4% • Galaxie – 3.2% • Kenrick – 3.0% • Keokuk – 1.1% Personnel expense increase of $263K reflects staffing transitions, city-support services (IT/Finance/HR/Communications), and step/COLA increases of existing liquor staff. The 2026 budget includes $2.35 million in transfers from the Liquor Fund to support other City endeavors. If not for these Liquor Fund transfers, the tax levy would need to be raised or other funding sources identified to cover these expenditures. The 2026 budgeted transfers, along with prior year comparisons, include the following: Expenditure type 2021 Actual 2022 Actual 2023 Actual 2024 Actual 2025 Actual 2026 Budget Debt - PD station bonds $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 Debt - Keokuk liq store bonds* $0 $177,910 $348,900 $350,500 $346,800 $347,800 Equip Fund- capital equip $500,000 $500,000 $500,000 $500,000 $900,000 $1,500,000 Tech Fund- capital equip $31,300 $38,500 $ 38,500 $59,500 $67,610 $68,340 Gen Fund- admin/tech $150,075 $164,085 $238,286 $0 $0 $0 Gen Fund- fireworks $15,000 $15,000 $30,000 $30,000 $30,000 $30,000 Total $1,096,375 $1,295,495 $1,555,686 $1,340,000 $1,744,410 $2,346,140 *The debt service for the Keokuk liquor store was not previously shown as a transfer. Page 31 of 88 Page 17 Financial Targets of Liquor Fund The Fund Balance Policy, last amended on January 3, 2023 contains the following parameters for the Liquor Fund. The Liquor Fund is used to account for the financial activities associated with operating a municipal liquor operation. When evaluating the use of funds, the city intends to meet the following management targets: • Available cash on hand to cover the following objectives: o Three months of operating cash o Following year debt service payments o Next year planned capital expenditures not financed with bonds • Income Before Contributions and Transfers not less than 125% of annual debt service on existing and planned debt. The Liquor Fund estimates are projected to have the following impacts on the financial targets: • Achieve cash targets for years 2026-2030 • Achieve debt service coverage ratio for years 2028-2030 • Debt service coverage ratio slightly under desired target for years 2025-2027, but still above 105% bond requirements. The last debt payment for the Galaxie store is in 2027. BUDGET AND FEE SCHEDULE REVIEW SCHEDULE Nov 24 Workshop – Final 2026 Budget Review; 2025 Yearend Preview Dec 1 Meeting – Public Budget Meeting (Truth in Taxation) / Adopt 2026 Budget & 2026 Tax Levy / Adopt 2026 Fee Schedule Attachments: 1) Utility Financial Planning Models- Staff Proposal a. Water Fund – Expansion scenario (pg.18-20) b. Water Fund – Satellite scenario (pg.21-23) c. Sewer Fund (pg.24-26) d. Street Lighting Fund (pg.27-28) e. Environmental Resources (pg.29-30) 2) Liquor Fund Budget a. 2026 Budget Summary by Department/Store b. Liquor Store Proforma c. Projected Working Capital d. Capital Outlay by store From: Justin Miller, City Administrator Julie Stahl, Finance Director Page 32 of 88 Table 1 Water Fund Summary Water Fund 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Revenues 10,417,199 10,304,598 10,278,037 36,280,072 10,195,272 10,243,536 9,805,905 9,875,669 9,938,276 10,023,253 10,110,523 Expenses 11,349,686 11,998,697 18,799,603 13,725,852 12,820,630 12,586,018 12,800,024 12,968,898 13,093,785 13,215,230 13,333,780 Revenue Over (Under) Expense (932,487) (1,694,099) (8,521,566) 22,554,220 (2,625,357) (2,342,482) (2,994,119) (3,093,228) (3,155,509) (3,191,977) (3,223,257) Projected Ending Cash by Purpose For future capital and unassigned 1,122,729 1,121,181 1,587,965 1,165,181 2,016,777 3,486,594 4,623,940 6,038,069 7,510,883 9,199,878 10,782,974 For planned capital 5,864,728 6,800,090 202,526 519,754 302,042 290,000 488,883 290,682 290,000 300,595 371,000 3M PFAS Settlement funds (restricted to PFAS remediation)740,031 - For 3-months of operating cash 1,765,216 1,467,639 1,914,066 1,620,490 1,563,837 1,622,548 1,661,106 1,691,990 1,724,272 1,757,125 1,792,560 For following year debt service 1,519,331 1,374,207 1,866,906 2,071,157 2,015,206 1,583,301 1,588,040 1,433,551 1,309,862 1,048,913 1,049,900 Projected Ending Cash 10,272,004 11,503,148 5,571,463 5,376,582 5,897,862 6,982,443 8,361,969 9,454,293 10,835,017 12,306,511 13,996,434 Net Position Ending unrestricted net position 13,985,916 14,501,812 8,596,043 8,427,336 8,975,052 10,086,333 11,492,826 12,612,387 14,020,620 15,519,899 17,237,884 As % of expense 123% 121%46%61% 70% 80% 90% 97% 107% 117% 129% Target: 50% or higher Net Revenues as % of Debt Service 204% 131% 194% 127% 202% 243% 253% 308% 301% 390% 385% Target: 50% or higher 1.25x Projected Rate changes by year n/a 6% 2% 0% 0% 0% 0% 0% 0% 0% 0% Page 33 of 88 Table 7 Water Fund Pro Forma Lakeville Finance Plan Water Fund 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Service charges 8,209,000 8,898,693 9,137,842 9,186,016 9,203,914 9,236,951 9,269,987 9,303,024 9,336,060 9,384,234 9,432,409 Senior discounts - - - - - - - - - - - Service charges - bulk water 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Service charges - unbilled revenues 124,000 125,240 126,492 127,757 129,035 130,325 131,628 132,945 134,274 135,617 136,973 Service charges - cancels/manual bill adjusts 37,000 37,370 37,744 38,121 38,502 38,887 39,276 39,669 40,066 40,466 40,871 Services charges 8,400,000 9,091,303 9,332,078 9,381,894 9,401,452 9,436,163 9,470,892 9,505,637 9,540,400 9,590,318 9,640,253 Connection permits - - - - - - - - - - - Sales of meters 32,376 32,376 32,376 32,376 32,376 32,376 32,376 32,376 32,376 32,376 32,376 Penalties and other revenues 50,000 50,500 51,005 51,515 52,030 52,551 53,076 53,607 54,143 54,684 55,231 Investment income and other earnings 445,829 395,419 287,579 139,287 134,415 147,447 174,561 209,049 236,357 270,875 307,663 Intergovernmental revenues 15,673 - - - - - - - - - - Other revenues and special items 812,519 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 Special assessments 160,802 160,000 - - - - - - - - - Transfers in - - - - - - - - - - - Capital contributions 500,000 500,000 500,000 26,600,000 500,000 500,000 - - - - - Total Revenues 10,417,199 10,304,598 10,278,037 36,280,072 10,195,272 10,243,536 9,805,905 9,875,669 9,938,276 10,023,253 10,110,523 Expenses Fixed Expenses Personnel services 1,707,359 1,826,339 1,881,129 1,937,563 1,995,690 2,055,561 2,117,227 2,180,744 2,246,167 2,313,552 2,382,958 Major maintenance not capitalized 1,539,333 2,370,000 1,046,122 2,716,767 1,425,910 1,078,628 1,187,883 1,215,234 1,208,714 1,202,803 1,193,500 Transfers out General Fund - - - - - - - - - - - Transfer out Debt Service Fund 522,045 248,369 250,519 748,219 1,051,594 1,050,544 1,049,088 1,052,128 1,049,788 1,052,050 1,048,913 Transfer out Other Funds 43,065 7,500 8,018,835 26,614 950 8,850 7,670 20,348 28,920 22,679 13,251 Interest and fiscal expense 233,175 189,609 168,588 133,538 97,988 62,838 39,038 25,588 13,288 3,906 - Depreciation 4,444,384 4,466,002 4,486,005 5,156,068 5,181,562 5,201,613 5,208,863 5,221,085 5,228,352 5,235,602 5,243,117 Subtotal Fixed Expenses 8,489,361 9,107,819 15,851,197 10,718,768 9,753,693 9,458,033 9,609,769 9,715,127 9,775,228 9,830,592 9,881,738 Variable Expenses Commodities 914,319 979,843 999,440 1,019,429 1,039,817 1,060,614 1,081,826 1,103,462 1,125,532 1,148,042 1,171,003 Other charges for services/disposal of assets 1,946,006 1,911,035 1,948,966 1,987,656 2,027,119 2,067,372 2,108,430 2,150,309 2,193,025 2,236,596 2,281,038 Subtotal Variable Expenses 2,860,325 2,890,878 2,948,406 3,007,084 3,066,936 3,127,985 3,190,255 3,253,771 3,318,557 3,384,638 3,452,041 Total Expenses 11,349,686 11,998,697 18,799,603 13,725,852 12,820,630 12,586,018 12,800,024 12,968,898 13,093,785 13,215,230 13,333,780 Beginning net position 133,621,511 132,689,024 130,994,925 122,473,359 145,027,578 142,402,221 140,059,739 137,065,620 133,972,392 130,816,883 127,624,907 Change in Net Position (932,487) (1,694,099) (8,521,566) 22,554,220 (2,625,357) (2,342,482) (2,994,119) (3,093,228) (3,155,509) (3,191,977) (3,223,257) Ending net position 132,689,024 130,994,925 122,473,359 145,027,578 142,402,221 140,059,739 137,065,620 133,972,392 130,816,883 127,624,907 124,401,650 Page 34 of 88 Table 8 Water Fund Projected Year End Cash Balance Lakeville Ending Cash Balance Water Fund 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Estimate Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Use of Cash Operations & Maintenance 6,074,404 7,060,864 5,870,557 7,656,265 6,481,961 6,255,350 6,490,190 6,644,425 6,767,962 6,897,087 7,028,499 Capital Acquisition 3,057,970 364,728 300,090 202,526 519,754 302,042 290,000 488,883 290,682 290,000 300,595 Other Interfund Transfers 43,065 7,500 8,018,835 26,614 950 8,850 7,670 20,348 28,920 22,679 13,251 Debt Service (includes transfers for debt) 1,797,833 1,519,331 1,374,207 1,866,906 2,071,157 2,015,206 1,583,301 1,588,040 1,433,551 1,309,862 1,048,913 Total Use of Cash 10,973,272 8,952,423 15,563,689 9,752,310 9,073,822 8,581,448 8,371,161 8,741,696 8,521,115 8,519,628 8,391,258 Source of Cash Revenues 9,917,199 9,804,598 9,778,037 9,680,072 9,695,272 9,743,536 9,805,905 9,875,669 9,938,276 10,023,253 10,110,523 Total Source of Cash 9,917,199 9,804,598 9,778,037 9,680,072 9,695,272 9,743,536 9,805,905 9,875,669 9,938,276 10,023,253 10,110,523 Net Change in Other Assets and Liabilities (850,187) (361,062) (146,033) (122,643) (100,170) (77,508) (55,217) (41,650) (36,437) (32,131) (29,341) Change in Cash Balance (1,906,260) 491,113 (5,931,684) (194,882) 521,281 1,084,581 1,379,526 1,092,324 1,380,724 1,471,494 1,689,923 Projected Ending Cash 11,012,035 11,503,148 5,571,463 5,376,582 5,897,862 6,982,443 8,361,969 9,454,293 10,835,017 12,306,511 13,996,434 Ending Cash by Purpose Unassigned 1,122,729 1,121,181 1,587,965 1,165,181 2,016,777 3,486,594 4,623,940 6,038,069 7,510,883 9,199,878 10,782,974 For capital improvements WTF Expansion 5,500,000 6,500,000 - - - 3M PFAS Settlement funds (restricted to PFAS remediation) 740,031 740,031 For next year planned capital 364,728 300,090 202,526 519,754 302,042 290,000 488,883 290,682 290,000 300,595 371,000 Long term capital needs (watermain replacement) For 3-months of operating cash 1,765,216 1,467,639 1,914,066 1,620,490 1,563,837 1,622,548 1,661,106 1,691,990 1,724,272 1,757,125 1,792,560 For following year debt service 1,519,331 1,374,207 1,866,906 2,071,157 2,015,206 1,583,301 1,588,040 1,433,551 1,309,862 1,048,913 1,049,900 Projected Ending Cash 11,012,035 11,503,148 5,571,463 5,376,582 5,897,862 6,982,443 8,361,969 9,454,293 10,835,017 12,306,511 13,996,434 Note: Cash balances include cash and investments. Beginning Cash 12,918,295 11,012,035 11,503,148 5,571,463 5,376,582 5,897,862 6,982,443 8,361,969 9,454,293 10,835,017 12,306,511 Plus revenues 9,917,199 9,804,598 9,778,037 9,680,072 9,695,272 9,743,536 9,805,905 9,875,669 9,938,276 10,023,253 10,110,523 Plus bond proceeds - - - - - - - - - - - Less capital assets acquisition (3,057,970) (364,728) (300,090) (202,526) (519,754) (302,042) (290,000) (488,883) (290,682) (290,000) (300,595) Less principal on debt (1,010,000) (1,055,000) (950,000) (980,000) (915,000) (895,000) (490,000) (505,000) (365,000) (250,000) - Less interest and fiscal charges (265,788) (215,962) (173,688) (138,687) (104,563) (69,662) (44,213) (30,912) (18,763) (7,812) - Less operating and other costs (6,074,404) (7,060,864) (5,870,557) (7,656,265) (6,481,961) (6,255,350) (6,490,190) (6,644,425) (6,767,962) (6,897,087) (7,028,499) Plus transfers in - - - - - - - - - - - Less transfers out other (43,065) (7,500) (8,018,835) (26,614) (950) (8,850) (7,670) (20,348) (28,920) (22,679) (13,251) Less transfers out debt service (522,045) (248,369) (250,519) (748,219) (1,051,594) (1,050,544) (1,049,088) (1,052,128) (1,049,788) (1,052,050) (1,048,913) Net change in other assets (1,271,665) (43,775) (45,097) (45,547) (46,003) (46,463) (46,928) (47,397) (47,871) (48,350) (48,833) Net change in other liabilities 421,478 (317,287) (100,937) (77,096) (54,167) (31,045) (8,290) 5,747 11,433 16,218 19,492 Total Change in Cash (1,906,260) 491,113 (5,931,684) (194,882) 521,281 1,084,581 1,379,526 1,092,324 1,380,724 1,471,494 1,689,923 Projected Ending Cash 11,012,035 11,503,148 5,571,463 5,376,582 5,897,862 6,982,443 8,361,969 9,454,293 10,835,017 12,306,511 13,996,434 Must be zero - - - - - - - - - - - Must be zero - - - - - - - - - - - Page 35 of 88 Table 1 Water Fund Summary Water Fund 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Revenues 10,417,199 10,304,598 10,565,915 54,957,829 10,993,921 11,059,823 10,627,771 10,690,754 10,746,410 10,825,487 10,906,709 Expenses 11,349,686 11,998,697 19,799,603 14,173,352 13,468,130 13,733,518 14,447,524 14,616,398 14,741,285 14,862,730 14,981,280 Revenue Over (Under) Expense (932,487) (1,694,099) (9,233,688) 40,784,477 (2,474,209) (2,673,695) (3,819,753) (3,925,643) (3,994,875) (4,037,243) (4,074,571) Projected Ending Cash by Purpose For future capital and unassigned 1,122,729 1,121,181 875,843 1,030,815 1,981,060 3,067,165 3,826,376 4,855,591 5,936,538 7,227,767 8,407,050 For planned capital 5,864,728 6,800,090 202,526 519,754 302,042 290,000 488,883 290,682 290,000 300,595 371,000 3M PFAS Settlement funds (restricted to PFAS remediation)740,031 - For 3-months of operating cash 1,765,216 1,467,639 1,914,066 1,620,490 1,563,837 1,622,548 1,661,106 1,691,990 1,724,272 1,757,125 1,792,560 For following year debt service 1,519,331 1,374,207 1,866,906 2,271,157 2,715,206 2,783,301 2,788,040 2,633,551 2,509,862 2,248,913 2,249,900 Projected Ending Cash 10,272,004 11,503,148 4,859,341 5,442,217 6,562,146 7,763,013 8,764,406 9,471,814 10,460,672 11,534,400 12,820,509 Net Position Ending unrestricted net position 13,985,916 14,501,812 7,883,921 8,492,970 9,639,335 10,866,903 11,895,263 12,629,908 13,646,276 14,747,788 16,061,960 As % of expense 123% 121%40%60% 72% 79% 82% 86% 93% 99% 107% Target: 50% or higher Net Revenues as % of Debt Service 204%120%154%100%144% 163% 165% 180% 177% 196% 194% Target: 50% or higher 1.25x Projected Rate changes by year n/a 6% 5% 5% 0% 0% 0% 0% 0% 0% 0% Page 36 of 88 Table 7 Water Fund Pro Forma Lakeville Finance Plan Water Fund 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Service charges 8,209,000 8,898,693 9,425,719 9,981,576 10,000,922 10,036,631 10,072,339 10,108,048 10,143,756 10,195,827 10,247,898 Senior discounts - - - - - - - - - - - Service charges - bulk water 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Service charges - unbilled revenues 124,000 125,240 126,492 127,757 129,035 130,325 131,628 132,945 134,274 135,617 136,973 Service charges - cancels/manual bill adjusts 37,000 37,370 37,744 38,121 38,502 38,887 39,276 39,669 40,066 40,466 40,871 Services charges 8,400,000 9,091,303 9,619,955 10,177,454 10,198,459 10,235,843 10,273,244 10,310,661 10,348,096 10,401,910 10,455,742 Connection permits - - - - - - - - - - - Sales of meters 32,376 32,376 32,376 32,376 32,376 32,376 32,376 32,376 32,376 32,376 32,376 Penalties and other revenues 50,000 50,500 51,005 51,515 52,030 52,551 53,076 53,607 54,143 54,684 55,231 Investment income and other earnings 445,829 395,419 287,579 121,484 136,055 164,054 194,075 219,110 236,795 261,517 288,360 Intergovernmental revenues 15,673 - - - - - - - - - - Other revenues and special items 812,519 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 Special assessments 160,802 160,000 - - - - - - - - - Transfers in - - - - - - - - - - - Capital contributions 500,000 500,000 500,000 44,500,000 500,000 500,000 - - - - - Total Revenues 10,417,199 10,304,598 10,565,915 54,957,829 10,993,921 11,059,823 10,627,771 10,690,754 10,746,410 10,825,487 10,906,709 Expenses Fixed Expenses Personnel services 1,707,359 1,826,339 1,881,129 1,937,563 1,995,690 2,055,561 2,117,227 2,180,744 2,246,167 2,313,552 2,382,958 Major maintenance not capitalized 1,539,333 2,370,000 1,046,122 2,716,767 1,425,910 1,078,628 1,187,883 1,215,234 1,208,714 1,202,803 1,193,500 Transfers out General Fund - - - - - - - - - - - Transfer out Debt Service Fund 522,045 248,369 250,519 748,219 1,251,594 1,750,544 2,249,088 2,252,128 2,249,788 2,252,050 2,248,913 Transfer out Other Funds 43,065 7,500 9,018,835 26,614 950 8,850 7,670 20,348 28,920 22,679 13,251 Interest and fiscal expense 233,175 189,609 168,588 133,538 97,988 62,838 39,038 25,588 13,288 3,906 - Depreciation 4,444,384 4,466,002 4,486,005 5,603,568 5,629,062 5,649,113 5,656,363 5,668,585 5,675,852 5,683,102 5,690,617 Subtotal Fixed Expenses 8,489,361 9,107,819 16,851,197 11,166,268 10,401,193 10,605,533 11,257,269 11,362,627 11,422,728 11,478,092 11,529,238 Variable Expenses Commodities 914,319 979,843 999,440 1,019,429 1,039,817 1,060,614 1,081,826 1,103,462 1,125,532 1,148,042 1,171,003 Other charges for services/disposal of assets 1,946,006 1,911,035 1,948,966 1,987,656 2,027,119 2,067,372 2,108,430 2,150,309 2,193,025 2,236,596 2,281,038 Subtotal Variable Expenses 2,860,325 2,890,878 2,948,406 3,007,084 3,066,936 3,127,985 3,190,255 3,253,771 3,318,557 3,384,638 3,452,041 Total Expenses 11,349,686 11,998,697 19,799,603 14,173,352 13,468,130 13,733,518 14,447,524 14,616,398 14,741,285 14,862,730 14,981,280 Beginning net position 133,621,511 132,689,024 130,994,925 121,761,236 162,545,713 160,071,505 157,397,810 153,578,057 149,652,413 145,657,539 141,620,296 Change in Net Position (932,487) (1,694,099) (9,233,688) 40,784,477 (2,474,209) (2,673,695) (3,819,753) (3,925,643) (3,994,875) (4,037,243) (4,074,571) Ending net position 132,689,024 130,994,925 121,761,236 162,545,713 160,071,505 157,397,810 153,578,057 149,652,413 145,657,539 141,620,296 137,545,725 Page 37 of 88 Table 8 Water Fund Projected Year End Cash Balance Lakeville Ending Cash Balance Water Fund 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Estimate Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Use of Cash Operations & Maintenance 6,074,404 7,060,864 5,870,557 7,656,265 6,481,961 6,255,350 6,490,190 6,644,425 6,767,962 6,897,087 7,028,499 Capital Acquisition 3,057,970 364,728 300,090 202,526 519,754 302,042 290,000 488,883 290,682 290,000 300,595 Other Interfund Transfers 43,065 7,500 9,018,835 26,614 950 8,850 7,670 20,348 28,920 22,679 13,251 Debt Service (includes transfers for debt) 1,797,833 1,519,331 1,374,207 1,866,906 2,271,157 2,715,206 2,783,301 2,788,040 2,633,551 2,509,862 2,248,913 Total Use of Cash 10,973,272 8,952,423 16,563,689 9,752,310 9,273,822 9,281,448 9,571,161 9,941,696 9,721,115 9,719,628 9,591,258 Source of Cash Revenues 9,917,199 9,804,598 10,065,915 10,457,829 10,493,921 10,559,823 10,627,771 10,690,754 10,746,410 10,825,487 10,906,709 Total Source of Cash 9,917,199 9,804,598 10,065,915 10,457,829 10,493,921 10,559,823 10,627,771 10,690,754 10,746,410 10,825,487 10,906,709 Net Change in Other Assets and Liabilities (850,187) (361,062) (146,033) (122,643) (100,170) (77,508) (55,217) (41,650) (36,437) (32,131) (29,341) Change in Cash Balance (1,906,260) 491,113 (6,643,807) 582,875 1,119,929 1,200,867 1,001,392 707,409 988,858 1,073,728 1,286,110 Projected Ending Cash 11,012,035 11,503,148 4,859,341 5,442,217 6,562,146 7,763,013 8,764,406 9,471,814 10,460,672 11,534,400 12,820,509 Ending Cash by Purpose Unassigned 1,122,729 1,121,181 875,843 1,030,815 1,981,060 3,067,165 3,826,376 4,855,591 5,936,538 7,227,767 8,407,050 For capital improvements WTF Expansion 5,500,000 6,500,000 - - - 3M PFAS Settlement funds (restricted to PFAS remediation) 740,031 740,031 For next year planned capital 364,728 300,090 202,526 519,754 302,042 290,000 488,883 290,682 290,000 300,595 371,000 Long term capital needs (watermain replacement) For 3-months of operating cash 1,765,216 1,467,639 1,914,066 1,620,490 1,563,837 1,622,548 1,661,106 1,691,990 1,724,272 1,757,125 1,792,560 For following year debt service 1,519,331 1,374,207 1,866,906 2,271,157 2,715,206 2,783,301 2,788,040 2,633,551 2,509,862 2,248,913 2,249,900 Projected Ending Cash 11,012,035 11,503,148 4,859,341 5,442,217 6,562,146 7,763,013 8,764,406 9,471,814 10,460,672 11,534,400 12,820,509 Note: Cash balances include cash and investments. Beginning Cash 12,918,295 11,012,035 11,503,148 4,859,341 5,442,217 6,562,146 7,763,013 8,764,406 9,471,814 10,460,672 11,534,400 Plus revenues 9,917,199 9,804,598 10,065,915 10,457,829 10,493,921 10,559,823 10,627,771 10,690,754 10,746,410 10,825,487 10,906,709 Plus bond proceeds - - - - - - - - - - - Less capital assets acquisition (3,057,970) (364,728) (300,090) (202,526) (519,754) (302,042) (290,000) (488,883) (290,682) (290,000) (300,595) Less principal on debt (1,010,000) (1,055,000) (950,000) (980,000) (915,000) (895,000) (490,000) (505,000) (365,000) (250,000) - Less interest and fiscal charges (265,788) (215,962) (173,688) (138,687) (104,563) (69,662) (44,213) (30,912) (18,763) (7,812) - Less operating and other costs (6,074,404) (7,060,864) (5,870,557) (7,656,265) (6,481,961) (6,255,350) (6,490,190) (6,644,425) (6,767,962) (6,897,087) (7,028,499) Plus transfers in - - - - - - - - - - - Less transfers out other (43,065) (7,500) (9,018,835) (26,614) (950) (8,850) (7,670) (20,348) (28,920) (22,679) (13,251) Less transfers out debt service (522,045) (248,369) (250,519) (748,219) (1,251,594) (1,750,544) (2,249,088) (2,252,128) (2,249,788) (2,252,050) (2,248,913) Net change in other assets (1,271,665) (43,775) (45,097) (45,547) (46,003) (46,463) (46,928) (47,397) (47,871) (48,350) (48,833) Net change in other liabilities 421,478 (317,287) (100,937) (77,096) (54,167) (31,045) (8,290) 5,747 11,433 16,218 19,492 Total Change in Cash (1,906,260) 491,113 (6,643,807) 582,875 1,119,929 1,200,867 1,001,392 707,409 988,858 1,073,728 1,286,110 Projected Ending Cash 11,012,035 11,503,148 4,859,341 5,442,217 6,562,146 7,763,013 8,764,406 9,471,814 10,460,672 11,534,400 12,820,509 Must be zero - - - - - - - - - - - Must be zero - - - - - - - - - - - Page 38 of 88 Table 2 Sanitary Sewer Fund Summary Sanitary Sewer Fund 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Revenues 10,479,346 10,658,393 10,771,518 11,021,633 11,277,484 11,427,620 11,182,343 11,423,635 11,676,258 11,933,986 12,304,969 Expenses 10,821,702 11,497,841 12,040,650 12,244,648 12,681,337 12,786,698 13,215,136 13,564,878 13,907,193 14,232,192 14,562,950 Revenue Over (Under) Expense (342,356) (839,448) (1,269,132) (1,223,015) (1,403,853) (1,359,078) (2,032,793) (2,141,243) (2,230,935) (2,298,206) (2,257,981) Projected Ending Cash by Purpose For future capital and unassigned 3,970,319 4,715,074 5,172,483 5,509,219 5,803,051 5,586,905 5,688,869 5,887,076 5,998,840 6,032,497 5,911,793 For planned capital 2,207,078 188,090 147,526 264,755 237,041 727,171 273,884 75,682 75,000 85,595 275,000 For 3-months of operating cash 2,273,319 2,401,960 2,446,968 2,557,776 2,577,535 2,680,395 2,762,949 2,845,912 2,928,253 3,012,765 3,104,652 For following year debt service 292 - - - - - - - - - - Projected Ending Cash 8,451,008 7,305,124 7,766,977 8,331,750 8,617,627 8,994,471 8,725,702 8,808,670 9,002,093 9,130,857 9,291,445 Net Position Ending unrestricted net position 10,236,022 9,085,088 9,541,841 10,101,462 10,382,136 10,753,725 10,479,648 10,557,255 10,745,265 10,868,560 11,023,625 As % of expense 95% 79% 79% 82% 82% 84% 79% 78% 77% 76% 76% Target: 50% or higher Net Revenues as % of Debt Service n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Target: 1.25X Projected Rate changes by year n/a 3.00% 3.00% 4.00% 4.00% 3.00% 4.00% 4.00% 4.00% 4.00% 5.00% Page 39 of 88 Table 10 Sanitary Sewer Fund Pro Forma Lakeville Finance Plan Sanitary Sewer Fund 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Service charges 9,609,000 9,726,042 9,865,885 10,102,505 10,342,269 10,483,271 10,726,565 10,972,549 11,221,049 11,471,874 11,837,549 Service charges - unbilled revenues 76,000 76,760 77,528 78,303 79,086 79,877 80,676 81,482 82,297 83,120 83,951 Service charges - cancels/manual bill adjusts 115,000 116,150 117,312 118,485 119,669 120,866 122,075 123,296 124,529 125,774 127,032 Services charges 9,800,000 9,918,952 10,060,724 10,299,293 10,541,024 10,684,014 10,929,315 11,177,327 11,427,875 11,680,768 12,048,532 Penalties and other revenues - - - - - - - - - - - Investment income and other earnings 150,000 211,275 182,628 194,174 208,294 215,441 224,862 218,143 220,217 225,052 228,271 Intergovernmental revenues - - - - - - - - - - - Other revenues and special items 1,180 - - - - - - - - - - Transfers in 28,166 28,166 28,166 28,166 28,166 28,166 28,166 28,166 28,166 28,166 28,166 Capital contributions 500,000 500,000 500,000 500,000 500,000 500,000 - - - - - Total Revenues 10,479,346 10,658,393 10,771,518 11,021,633 11,277,484 11,427,620 11,182,343 11,423,635 11,676,258 11,933,986 12,304,969 Expenses Fixed Expenses Personnel services 1,467,018 1,425,856 1,468,632 1,512,691 1,558,071 1,604,813 1,652,958 1,702,547 1,753,623 1,806,232 1,860,419 Personal services / FTE changes - - - - - - - - - - - Major maintenance not capitalized 797,872 980,000 1,258,622 1,156,767 1,305,950 1,078,629 1,177,883 1,190,234 1,198,715 1,192,803 1,183,500 Transfers out General Fund - - - - - - - - - - - Transfer out Debt Service Fund - - - - - - - - - - - Transfer out Other Funds 43,065 7,500 18,835 26,614 950 8,850 7,670 20,348 28,920 22,679 13,251 Interest and fiscal expense 3,771 292 - - - - - - - - - Depreciation 2,329,095 2,396,772 2,413,975 2,430,163 2,449,282 2,467,708 2,485,887 2,492,734 2,494,626 2,496,501 2,498,641 Subtotal Fixed Expenses 4,640,821 4,810,420 5,160,063 5,126,234 5,314,253 5,160,000 5,324,398 5,405,863 5,475,884 5,518,215 5,555,810 Variable Expenses Commodities 140,698 167,674 171,027 174,448 177,937 181,496 185,126 188,828 192,605 196,457 200,386 Other charges for services/disposal of assets 417,715 432,208 440,669 449,300 458,103 467,082 476,241 485,583 495,111 504,831 514,744 MCES disposal charge 5,622,468 6,087,539 6,268,890 6,494,667 6,731,044 6,978,120 7,229,372 7,484,605 7,743,592 8,012,690 8,292,010 Bond issuance cost - - - - - - - - - - - Subtotal Variable Expenses 6,180,881 6,687,421 6,880,587 7,118,414 7,367,084 7,626,698 7,890,738 8,159,015 8,431,308 8,713,977 9,007,140 Total Expenses 10,821,702 11,497,841 12,040,650 12,244,648 12,681,337 12,786,698 13,215,136 13,564,878 13,907,193 14,232,192 14,562,950 Beginning net position 79,706,029 79,363,673 78,524,224 77,255,092 76,032,077 74,628,224 73,269,147 71,236,353 69,095,111 66,864,176 64,565,970 Change in Net Position (342,356) (839,448) (1,269,132) (1,223,015) (1,403,853) (1,359,078) (2,032,793) (2,141,243) (2,230,935) (2,298,206) (2,257,981) Ending net position 79,363,673 78,524,224 77,255,092 76,032,077 74,628,224 73,269,147 71,236,353 69,095,111 66,864,176 64,565,970 62,307,989 0.519554852 Page 40 of 88 Table 11 Sanitary Sewer Fund Projected Ending Cash Balance Lakeville Ending Cash Balance Sanitary Sewer Fund 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Estimate Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Use of Cash Operations & Maintenance 8,445,771 9,093,277 9,607,841 9,787,872 10,231,105 10,310,141 10,721,579 11,051,796 11,383,646 11,713,012 12,051,059 Capital Acquisition 1,060,217 2,207,078 188,090 147,526 264,755 237,041 727,171 273,884 75,682 75,000 85,595 Interfund Transfers 43,065 7,500 18,835 26,614 950 8,850 7,670 20,348 28,920 22,679 13,251 Debt Service 73,771 292 - - - - - - - - - Total Use of Cash 9,622,824 11,308,147 9,814,766 9,962,012 10,496,810 10,556,032 11,456,420 11,346,028 11,488,248 11,810,691 12,149,904 Source of Cash Revenues 9,951,180 10,130,227 10,243,352 10,493,467 10,749,318 10,899,454 11,154,177 11,395,469 11,648,092 11,905,820 12,276,803 Bond Proceeds - - - - - - - - - - - Interfund Transfer 28,166 28,166 28,166 28,166 28,166 28,166 28,166 28,166 28,166 28,166 28,166 Total Source of Cash 9,979,346 10,158,393 10,271,518 10,521,633 10,777,484 10,927,620 11,182,343 11,423,635 11,676,258 11,933,986 12,304,969 Net Change in Other Assets and Liabilities 23,414 3,870 5,101 5,152 5,203 5,255 5,308 5,361 5,414 5,468 5,523 Change in Cash Balance 379,936 (1,145,884) 461,853 564,773 285,877 376,844 (268,770) 82,968 193,424 128,764 160,588 Beginning Cash Balance 8,071,072 8,451,008 7,305,124 7,766,977 8,331,750 8,617,627 8,994,471 8,725,702 8,808,670 9,002,093 9,130,857 Projected Ending Cash 8,451,008 7,305,124 7,766,977 8,331,750 8,617,627 8,994,471 8,725,702 8,808,670 9,002,093 9,130,857 9,291,445 Ending Cash by Purpose Unassigned 3,970,319 4,715,074 5,172,483 5,509,219 5,803,051 5,586,905 5,688,869 5,887,076 5,998,840 6,032,497 5,911,793 For next year planned capital 2,207,078 188,090 147,526 264,755 237,041 727,171 273,884 75,682 75,000 85,595 275,000 For 3-months of operating cash 2,273,319 2,401,960 2,446,968 2,557,776 2,577,535 2,680,395 2,762,949 2,845,912 2,928,253 3,012,765 3,104,652 For following year debt service 292 - - - - - - - - - - Projected Ending Cash 8,451,008 7,305,124 7,766,977 8,331,750 8,617,627 8,994,471 8,725,702 8,808,670 9,002,093 9,130,857 9,291,445 Note: Cash balances include cash and investments. Beginning Cash 8,071,072 8,451,008 7,305,124 7,766,977 8,331,750 8,617,627 8,994,471 8,725,702 8,808,670 9,002,093 9,130,857 Plus revenues 9,951,180 10,130,227 10,243,352 10,493,467 10,749,318 10,899,454 11,154,177 11,395,469 11,648,092 11,905,820 12,276,803 Plus bond proceeds - - - - - - - - - - - Less capital assets acquisition and COI (1,060,217) (2,207,078) (188,090) (147,526) (264,755) (237,041) (727,171) (273,884) (75,682) (75,000) (85,595) Less principal on debt (70,000) - - - - - - - - - - Less interest and fiscal charges (3,771) (292) - - - - - - - - - Less operating and other costs (8,445,771) (9,093,277) (9,607,841) (9,787,872) (10,231,105) (10,310,141) (10,721,579) (11,051,796) (11,383,646) (11,713,012) (12,051,059) Plus transfers in 28,166 28,166 28,166 28,166 28,166 28,166 28,166 28,166 28,166 28,166 28,166 Less transfers out other (43,065) (7,500) (18,835) (26,614) (950) (8,850) (7,670) (20,348) (28,920) (22,679) (13,251) Less transfer out debt service - - - - - - - - - - - Net change in other assets (99,109) - - - - - - - - - - Net change in other liabilities 122,523 3,870 5,101 5,152 5,203 5,255 5,308 5,361 5,414 5,468 5,523 Total Change in Cash 379,936 (1,145,884) 461,853 564,773 285,877 376,844 (268,770) 82,968 193,424 128,764 160,588 Projected Ending Cash 8,451,008 7,305,124 7,766,977 8,331,750 8,617,627 8,994,471 8,725,702 8,808,670 9,002,093 9,130,857 9,291,445 Must be zero - - - - - - - - - - - Must be zero - - - - - - - - - - - Page 41 of 88 Street Light Summary Street Light Fund Revised 10.1.2025 2025 2026 2027 2028 2029 2030 2031 2032 2033 Ending Cash by Purpose Unassigned (target $100,000) 502,479 197,231 162,637 117,597 100,453 112,750 107,197 98,447 101,222 For 3-months of operating cash 365,680 299,400 308,382 317,634 327,163 336,978 347,087 357,500 368,225 For following year debt service 51,250 - - - - - - - - For next year planned capital 30,000 260,000 250,000 300,000 300,000 300,000 300,000 300,000 300,000 Ending Cash by Purpose 949,409 756,631 721,020 735,231 727,616 749,727 754,284 755,947 769,447 Unrestricted Net Assets Unrestricted Net Assets 1,119,025 976,247 940,636 954,847 947,232 969,345 973,904 975,569 989,071 Subsequent Year's Operating Expense* 1,462,720 1,197,602 1,233,530 1,270,536 1,308,652 1,347,911 1,388,348 1,429,999 1,472,899 Unrestricted Net Assets as % of Expense 77% 82% 76% 75% 72% 72% 70% 68% 67% Revenues 1,300,619 1,351,193 1,421,990 1,497,741 1,562,920 1,630,765 1,652,469 1,690,014 1,743,501 Expenditures 1,381,123 1,492,720 1,457,602 1,483,530 1,570,536 1,608,652 1,647,911 1,688,348 1,729,999 Cash 949,409 756,631 721,020 735,231 727,616 749,727 754,284 755,947 769,447 Net Revenue for Debt Coverage (80,504) (141,527) (35,611) 14,211 (7,615) 22,113 4,558 1,665 13,502 Total Street Light Fund Debt Service 52,762 51,250 0 - - - - - - Debt Service Coverage Ratio (1.53) (2.76) N/A N/A N/A N/A N/A N/A N/A Rate increase 0% 5% 5% 5% 4% 4% 0% 0% 0% Change in Net Position (83,266) (142,777) (35,611) 14,211 (7,615) 22,113 4,558 1,665 13,502 Targets Minimum Unassigned Cash Balance 100,000 Unrestricted Net Assets as % of Expense 50% Debt Service Coverage 1.25 No New Debt After n/a *Excludes major maintenance estimates Page 42 of 88 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET PROPOSED QUARTERLY RATE:10.12 10.62 11.16 11.71 12.18 12.67 12.67 12.67 12.67 12.67 12.67 Revenues Street light fees 1,293,006 1,344,547 1,416,694 1,492,694 1,557,774 1,625,672 1,647,221 1,684,734 1,738,209 1,807,647 1,893,641 Penalties - - - - - - - - - - - Service charge - - - - - - - - - - - Other 7,613 6,646 5,296 5,047 5,147 5,093 5,248 5,280 5,292 5,386 5,667 Total Revenues 1,300,619 1,351,193 1,421,990 1,497,741 1,562,920 1,630,765 1,652,469 1,690,014 1,743,501 1,813,033 1,899,308 Expenses Personnel services 22,741 21,064 21,696 22,347 23,017 23,708 24,419 25,152 25,906 26,683 27,484 Commodities 22 20 21 21 22 23 23 24 25 25 26 Contractual services 1,348,360 1,441,636 1,175,885 1,211,162 1,247,496 1,284,921 1,323,469 1,363,173 1,404,068 1,446,190 1,489,576 Major maintenance projects 10,000 30,000 260,000 250,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 Total Expenses 1,381,123 1,492,720 1,457,602 1,483,530 1,570,536 1,608,652 1,647,911 1,688,348 1,729,999 1,772,899 1,817,086 Net Operating Income (loss)(80,504) (141,527) (35,611) 14,211 (7,615) 22,113 4,558 1,665 13,502 40,135 82,222 Other Receipts (Disbursements) Transfers from/(to) General Fund - - - - - - - - - - - Transfers from/(to) Other funds Bond Proceeds/premium amortization - - - - - - - - - - - Debt Service Payments-Interest (2,762) (1,250) - - - - - - - - - Capital outlay acquisitions - - - - - - - - - - - Net Other (2,762) (1,250) - - - - - - - - - Net Increase (Decrease)(83,266) (142,777) (35,611) 14,211 (7,615) 22,113 4,558 1,665 13,502 40,135 82,222 Net Assets, January 1 1,202,290 1,119,025 976,247 940,636 954,847 947,232 969,345 973,904 975,569 989,071 1,029,206 Net assets, December 31 1,119,025 976,247 940,636 954,847 947,232 969,345 973,904 975,569 989,071 1,029,206 1,111,428 - - - - - - - - - - - STREET LIGHT OPERATING FUND Statement of Revenue, Expense and Changes in Net Position G:\Budget\2026 Budget\Revenues- Utilities\2026 Rates- Env Resources and Street Lights : Street Light Pro Forma 10/7/2025 Page 43 of 88 Environmental Resources Summary of Financial Targets- 10-yr projections Environmental Resources Fund Revised 10.1.2025 2025 2026 2027 2028 2029 2030 2031 2032 2033 Ending Cash by Purpose Unassigned (target $100,000) 2,311,031 1,770,157 1,473,141 1,235,820 395,868 333,409 341,284 411,809 604,670 For 3-months of operating cash 753,105 695,349 711,256 727,545 744,226 763,357 780,849 798,764 817,110 For following year debt service - - - - - - - - - For next year planned capital 100,000 - - - 692,835 - - 36,596 - Ending Cash by Purpose 3,164,136 2,465,506 2,184,397 1,963,366 1,832,928 1,096,766 1,122,134 1,247,169 1,421,780 Unrestricted Net Assets Unrestricted Net Assets 3,032,418 2,329,332 2,064,375 1,865,664 1,764,645 1,054,428 1,107,559 1,262,283 1,461,627 Subsequent Year's Operating Expense* 3,012,420 2,781,396 2,845,026 2,910,182 2,976,902 3,053,427 3,123,397 3,195,055 3,268,442 Unrestricted Net Assets as % of Expense 101% 84% 73% 64% 59%35% 35% 40% 45% Revenues (A)2,237,367 2,346,404 2,452,541 2,581,450 2,743,332 2,892,724 3,038,798 3,209,400 3,361,310 Expenditures (B)2,791,452 3,012,420 2,781,396 2,845,026 2,910,182 2,976,902 3,053,427 3,123,397 3,195,055 Cash 3,164,136 2,465,506 2,184,397 1,963,366 1,832,928 1,096,766 1,122,134 1,247,169 1,421,780 Net Revenue for Debt Coverage (A-B)(554,085) (666,016) (328,855) (263,575) (166,850) (84,178) (14,629) 86,002 166,255 Total Env Resources Fund Debt Service - - - - - - - - - Debt Service Coverage Ratio N/A N/A N/A N/A N/A N/A N/A N/A N/A Rate increase* 4.0% 4.0% 4.0% 5.0% 6.0% 5.0% 5.0% 5.0% 4.0% Change in Net Position (556,470) (667,086) (329,957) (264,711) (168,019) (85,382) (15,870) 84,725 164,939 Targets Minimum Unassigned Cash Balance 100,000 Unrestricted Net Assets as % of Expense 50% Debt Service Coverage 1.25 No New Debt After 20XX n/a * 2023 decrease is due to moving Forestry activities to the General Fund, and implementing a corresponding rate decrease effective 1/1/2023. Page 44 of 88 Statement of Revenue, Expense and Changes in Net Position 10-year Forecast 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET Revenues Environmental Resources Fees 2,012,200 2,113,404 2,219,443 2,352,952 2,517,965 2,668,827 2,828,429 2,997,266 3,145,618 3,205,783 3,266,828 Other fees/misc 120,248 127,324 127,324 127,324 127,324 127,324 127,324 127,324 127,324 127,324 127,324 Revenues from development contracts- MS4 ins 19,919 20,676 21,463 22,486 23,776 24,914 26,110 27,368 28,424 28,700 28,979 Grants/donations 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 Investment income 50,000 50,000 49,310 43,688 39,267 36,659 21,935 22,443 24,943 28,436 32,903 Total Revenues 2,237,367 2,346,404 2,452,541 2,581,450 2,743,332 2,892,724 3,038,798 3,209,400 3,361,310 3,425,243 3,491,034 Expenses Personnel services 814,882 884,663 911,203 938,539 966,695 995,696 1,025,567 1,056,334 1,088,024 1,120,665 1,154,285 Commodities 55,978 71,288 72,714 74,168 75,651 77,164 78,708 80,282 81,888 83,525 85,196 Contractual services 1,785,039 1,923,803 1,962,279 2,001,525 2,041,555 2,082,386 2,124,034 2,166,515 2,209,845 2,254,042 2,299,123 Contractual services- projection adjustment - (270,300) (275,706) (281,220) (286,845) (292,581) (298,433) (304,402) (310,490) (316,700) Depreciation Expense 61,287 64,000 65,000 66,000 67,000 68,000 69,000 70,000 71,000 72,000 73,000 Total Expenses 2,717,186 2,943,754 2,740,896 2,804,526 2,869,682 2,936,402 3,004,727 3,074,697 3,146,355 3,219,742 3,294,903 Net Operating Income (loss)(479,819) (597,350) (288,355) (223,075) (126,350) (43,678) 34,071 134,702 214,955 205,501 196,131 Other Receipts (Disbursements) Transfer to Equipment Fund (40,500) (40,500) (40,500) (40,500) (40,500) (40,500) (48,700) (48,700) (48,700) (48,700) (48,700) Transfer to CPF- Technology Fund (2,385) (1,070) (1,102) (1,135) (1,169) (1,204) (1,240) (1,278) (1,316) (1,355) (1,396) Transfer to Sanitary Sewer Operating (33,766) (28,166) - - - - - - - - - Net Other (76,651) (69,736) (41,602) (41,635) (41,669) (41,704) (49,940) (49,978) (50,016) (50,055) (50,096) - Net Increase (Decrease) in net assets (556,470) (667,086) (329,957) (264,711) (168,019) (85,382) (15,870) 84,725 164,939 155,445 146,034 Net position, January 1 4,340,866 3,784,397 3,117,311 2,787,354 2,522,643 2,354,624 2,269,242 2,253,372 2,338,097 2,503,036 2,658,482 Net position, December 31 3,784,397 3,117,311 2,787,354 2,522,643 2,354,624 2,269,242 2,253,372 2,338,097 2,503,036 2,658,482 2,804,516 - - - - - - - - - - - ENVIRONMENTAL RESOURCES OPERATING F G:\Budget\2026 Budget\Revenues- Utilities\2026 Rates- Env Resources and Street Lights : Env Resources ProForma 10/7/2025 Page 45 of 88 08/21/2025 LIQUOR BUDGET - SUMMARY BY BUSINESS UNIT Calculations As Of 12/31/2025 2025 2026 $ Variance % Variance 2023 2024 Adopted 2025 DEPT Request vs.Request vs. GL Number Activity Activity Budget Projected REQUESTED Adopted Adopted 7800 - LIQUOR FUND 2,355,146 40,043 - - - - #DIV/0! 7810 - HERITAGE REVENUES 5,770,619 5,697,132 5,691,204 5,828,384 5,886,419 195,215 3.4% 7830 - GALAXIE REVENUES 6,680,228 6,406,539 6,597,828 6,742,890 6,810,068 212,240 3.2% 7840 - KENRICK REVENUES 4,939,629 4,854,032 4,875,721 4,973,649 5,023,135 147,414 3.0% 7850 - KEOKUK REVENUES 5,450,522 5,714,729 6,090,829 6,094,810 6,155,508 64,679 1.1% 7880 - EMPORIUM ROOM REVENUE 71,655 65,504 87,800 78,090 79,870 (7,930) -9.0% Estimated Revenues 25,267,799 22,777,979 23,343,382 23,717,823 23,955,000 611,618 2.6% Less Transfer in (2,354,946) - - - - - #DIV/0! Less non-operating revenues (220,406) (130,893) (105,000) (105,000) (105,000) - 0.0% Operating Revenues 22,692,447 22,647,086 23,238,382 23,612,823 23,850,000 611,618 2.6% 7800 - LIQUOR FUND 4,076,042 1,339,950 1,744,410 1,744,410 2,346,140 601,730 34.5% 7800 - GALAXIE BOND PRINCIPAL PYMT 250,000 260,000 265,000 265,000 270,000 5,000 1.9% 7811 - HERITAGE EXPENSES 5,256,493 5,325,152 5,459,336 5,566,490 5,629,332 169,996 3.1% 7831 - GALAXIE EXPENSES 6,017,122 5,769,416 5,957,685 6,040,986 6,157,051 199,366 3.3% 7841 - KENRICK EXPENSES 4,654,957 4,747,399 4,850,938 4,920,384 5,035,262 184,324 3.8% 7851 - KEOKUK EXPENSES 5,243,758 5,362,406 5,801,455 5,780,963 5,913,700 112,245 1.9% 7881 - EMPORIUM ROOM EXPENSES 100,750 118,500 129,967 126,505 132,802 2,835 2.2% Appropriations 25,599,122 22,922,823 24,208,791 24,444,738 25,484,287 1,275,496 5.3% Less Bond Principal Pymt - Galaxie (250,000) (260,000) (265,000) (265,000) (270,000) (5,000) 1.9% Less Transfer out (3,678,729) (1,339,950) (1,744,410) (1,744,410) (2,346,140) (601,730) 34.5% Less OPEB (non-cash)(273,943) 8,603 (180,000) (180,000) (160,000) 20,000 -11.1% Less non-operating expenses (40,061) (30,452) - - - - #DIV/0! Operating Expenses 21,356,389 21,301,024 22,019,381 22,255,328 22,708,147 688,766 3.1% Net Operating Income 1,336,058 1,346,062 1,219,001 1,357,495 1,141,853 (77,148) -6.3% CHANGE IN NET POSITION TOTAL ESTIMATED REVENUES 25,267,799 22,777,979 23,343,382 23,717,823 23,955,000 611,618 2.6% TOTAL APPROPRIATIONS 25,599,122 22,922,823 24,208,791 24,444,738 25,484,287 1,275,496 5.3% Total Fund 7800 LIQUOR FUND: (331,323) (144,844) (865,409) (726,915) (1,529,287) (663,878) 76.7% Page 46 of 88 CITY OF LAKEVILLE - LIQUOR STORE PROFORMA Actual Actual Actual Projected Budget 2022 2023 2024 2025 2026 2027 2028 2029 2030 Sales 21,858,786 22,692,543 22,647,729 23,612,823 23,850,000 24,259,375 24,676,134 25,100,415 25,532,357 Cost of goods sold 16,008,561 16,474,954 16,331,345 17,072,035 17,250,117 17,490,815 17,791,529 18,097,673 18,409,349 Gross profit 5,850,225 6,217,589 6,316,384 6,540,788 6,599,883 6,768,560 6,884,605 7,002,742 7,123,008 Gross Profit %26.76%27.40%27.89%27.70%27.67%27.90%27.90%27.90%27.90% Total operating expenses (incl.Depr)4,679,088 5,155,380 4,954,818 5,363,293 5,618,030 5,705,134 5,737,722 5,865,633 6,007,461 Net operating income 1,171,137 1,062,209 1,361,566 1,177,495 981,853 1,063,426 1,146,883 1,137,109 1,115,547 Total Other Rev/(Exp) - Interest Inc (200,697) 180,254 93,551 105,000 105,000 94,500 85,000 85,000 85,000 Net income before transfers 970,440 1,242,463 1,455,117 1,282,495 1,086,853 1,157,926 1,231,883 1,222,109 1,200,547 Total transfers (971,500) (974,900) (989,500) (1,397,610) (1,998,340) (1,999,028) (1,659,326) (1,531,212) (1,575,399) Net income (1,060) 267,563 465,617 (115,115) (911,487) (841,102) (427,443) (309,103) (374,852) Bond principal pmts (Keokuk)(177,866) (348,883) (350,450) (346,800) (347,800) (347,800) (348,400) (348,600) (348,400) Income after bond principal pmts (178,926) (81,320) 115,167 (461,915) (1,259,287) (1,188,902) (775,843) (657,703) (723,252) FINANCIAL METRICS Projected Ending Cash by Purpose Future and unassigned 1,701,979 1,881,230 1,741,736 1,441,245 516,328 (75,905) (835,425) (1,030,660) (2,075,821) Planned capital 201,473 - - 103,248 85,000 - 65,000 - 361,860 3-months of operating cash 1,169,772 1,288,845 1,238,705 1,340,823 1,404,508 1,426,284 1,434,431 1,466,408 1,501,865 Subsequent year debt service *634,400 638,350 631,775 629,750 632,100 348,100 347,900 348,650 351,800 Projected Ending Cash 3,707,624 3,808,425 3,612,215 3,515,066 2,637,936 1,698,478 1,011,906 784,398 139,704 Income before Contributions & Transfers Net Revenue for Debt Coverage 970,440 1,242,463 1,455,117 1,282,495 1,086,853 1,157,926 1,231,883 1,222,109 1,200,547 Total CY Debt Service**865,835 1,034,400 1,038,350 1,031,775 1,029,750 1,032,100 748,100 747,900 748,650 Debt Service Coverage Ratio 112%120%140%124%106%112%165%163%160% * Includes Galaxie (2017A HRA Lse Rev) and Keokuk (2018B Tax Abate) bonds ** Includes transfer to Debt Service for Police Station Bonds to meet policy objectives for ending cash and net position. 10/22/2025 Page 47 of 88 2025 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2022 2023 2024 ADOPTED DEPART BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET ACTUAL ACTUAL ACTUAL BUDGET ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE Revenues Rentals & Events 30,520 41,763 51,106 66,300 66,300 68,080 68,761 69,448 70,143 70,844 71,553 72,268 72,991 73,721 Liquor sales 21,828,266 22,650,780 22,596,623 23,172,082 23,546,523 23,781,920 24,190,614 24,606,686 25,030,272 25,461,513 25,900,551 26,347,531 26,802,602 27,265,914 Cost of goods sold (16,008,561) (16,474,954) (16,331,345) (16,828,635) (17,072,035) (17,250,117) (17,490,815) (17,791,529) (18,097,673) (18,409,349) (18,726,660) (19,049,710) (19,378,605) (19,713,456) Net revenues 5,850,225 6,217,589 6,316,384 6,409,747 6,540,788 6,599,883 6,768,560 6,884,605 7,002,742 7,123,008 7,245,444 7,370,089 7,496,988 7,626,179 Expenses Personnel services 2,630,721 2,913,425 3,012,937 3,177,512 3,099,030 3,382,463 3,461,772 3,540,755 3,634,060 3,730,907 3,831,461 3,935,899 4,044,403 4,157,171 Commodities 96,980 111,452 72,675 97,056 93,731 82,544 83,570 84,612 85,673 86,751 87,848 88,963 90,097 91,251 Contractual services 1,101,079 1,185,276 1,162,351 1,577,184 1,623,587 1,621,161 1,627,930 1,664,996 1,701,926 1,734,896 1,773,262 1,793,613 1,823,983 1,855,051 Total expenses 3,828,780 4,210,153 4,247,963 4,851,752 4,816,348 5,086,168 5,173,272 5,290,364 5,421,659 5,552,555 5,692,571 5,818,475 5,958,483 6,103,473 Net operating income/(loss)2,021,445 2,007,436 2,068,421 1,557,995 1,724,440 1,513,715 1,595,288 1,594,241 1,581,083 1,570,453 1,552,873 1,551,615 1,538,505 1,522,706 Other Receipts (Disbursements) Interest income (175,869) 220,139 126,404 105,000 105,000 105,000 94,500 85,000 85,000 85,000 85,000 85,000 85,000 85,000 Other Income/(Expense)44,971 (278) 73,615 - - - - - - - - - - - Sale of capital assets (27,334) - (69,896) - - - - - - - - - - - Capital outlay acquisitions (201,473) - - (160,000) (103,248) (85,000) - (65,000) - (361,860) (100,000) (280,000) (91,000) - Lease interest (42,465) (39,607) (36,572) - - - - - - - - - - - Debt principal pmts (B/S item)(245,000) (250,000) (260,000) (265,000) (265,000) (270,000) (280,000) - - - - - - - Total other (647,170) (69,746) (166,449) (320,000) (263,248) (250,000) (185,500) 20,000 85,000 (276,860) (15,000) (195,000) (6,000) 85,000 Net incr(decr) before transfers 1,374,275 1,937,690 1,901,972 1,237,995 1,461,192 1,263,715 1,409,788 1,614,241 1,666,083 1,293,593 1,537,873 1,356,615 1,532,505 1,607,706 Transfer from Debt Service (TIF 10)- 2,354,946 - - - - - - - - - - - - Transfer to General Fund (Admin.)(18,000) - - - - - - - - - - - - - Transfer to Gen Fund (Fireworks)(15,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,600) (31,212) (31,836) (32,473) (33,122) (33,785) (34,461) Transfer to Building Fund - (1,218,246) - - - - - - - - - - - - Transfer to Equipment Fund (500,000) (1,636,700) (500,000) (900,000) (900,000) (1,500,000) (1,200,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) Transfer to Technology Fund (38,500) (44,900) (59,500) (67,610) (67,610) (68,340) (169,028) (128,726) - (43,563) (17,498) (114,694) (85,651) (64,642) Transfer to Communications Fund - (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) Transfer to DSF (Keokuk Bonds)(177,866) (348,883) (350,450) (346,800) (346,800) (347,800) (347,800) (348,400) (348,600) (348,400) (349,150) (352,300) (351,650) (350,900) Transfer to DSF Police Station Bonds (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) - - - Total transfers (1,149,366) (1,323,783) (1,339,950) (1,744,410) (1,744,410) (2,346,140) (2,346,828) (2,007,726) (1,879,812) (1,923,799) (1,899,121) (1,600,116) (1,571,086) (1,550,003) Net increase/(decrease)224,909 613,907 562,022 (506,415) (283,218) (1,082,425) (937,040) (393,485) (213,729) (630,206) (361,248) (243,502) (38,581) 57,703 Working capital, Jan 1 3,967,678 4,192,587 4,806,494 5,368,516 5,368,516 5,085,298 4,002,873 3,065,834 2,672,349 2,458,619 1,828,414 1,467,165 1,223,664 1,185,083 Working capital, Dec 31 4,192,587 4,806,494 5,368,516 4,862,101 5,085,298 4,002,873 3,065,834 2,672,349 2,458,619 1,828,414 1,467,165 1,223,664 1,185,083 1,242,786 Total Working Capital 4,192,587 4,806,494 5,368,516 4,862,101 5,085,298 4,002,873 3,065,834 2,672,349 2,458,619 1,828,414 1,467,165 1,223,664 1,185,083 1,242,786 Work Cap -Reserved for future (Kenrick sa 1,622,361 1,429,361 1,241,965 1,044,662 1,044,662 847,359 650,056 443,572 232,498 21,424 - - - - Work Cap - Available for operations 2,570,227 3,377,134 4,126,552 3,817,440 4,040,637 3,155,515 2,415,777 2,228,777 2,226,122 1,806,990 1,467,165 1,223,664 1,185,083 1,242,786 Note: Amounts above do not include Depreciation, Lease amortization, or OPEB expenditures LIQUOR FUND PROJECTED WORKING CAPITAL Page 48 of 88 2025 2025 2026 2023 2024 ADOPTED BUDGET WORKING CIP ACTUAL ACTUAL BUDGET ESTIMATE BUDGET 17xx CAPITAL OUTLAY - HERITAGE TENANT IMPROVEMENTS Facilities - 100,000 - - - TOTAL HERITAGE - 100,000 - - - 17xx CAPITAL OUTLAY - GALAXIE PARKING LOT MILL & OVERLAY (2024)Facilities - 208,720 - - - WINE ROOM REMODEL Facilities - - 120,000 74,248 - FLOORING REPLACEMENT Facilities - - - - 45,000 TOTAL GALAXIE - 208,720 120,000 74,248 45,000 17xx CAPITAL OUTLAY - KENRICK OFFICE SPACE RENOVATION Facilities 10,352 - - - - OUTDOOR SIGN Other Impr - 15,000 - - - REACH IN COOLER Facilities 6,486 - - - - COOLER MECHINACIALS Facilities - - - - 40,000 TOTAL KENRICK 16,838 15,000 - - 40,000 17xx CAPITAL OUTLAY - KEOKUK FENCING Other Impr 38,390 - - - - OUTDOOR SIGN (NORTH SIDE) Other Impr - 18,600 - - - LANDSCAPING (See Major Maint.) Other Impr - - 20,000 - - TOTAL KEOKUK 38,390 18,600 20,000 - - 17xx CAPITAL OUTLAY - EMPORIUM ROOM EXTERIOR SIGN Equipment 9,839 - - - - LANDSCAPING Other Impr - 16,000 - - - WAINSCOATING Facilities - - 20,000 19,000 - PORTABLE BAR Equipment - - - 10,000 - TOTAL EMPORIUM ROOM 9,839 16,000 20,000 29,000 - ALL STORES COMBINED BUILDING IMPROVEMENTS Facilities 10,352 100,000 140,000 93,248 45,000 COOLERS Facilities 6,486 - - - 40,000 GROUNDS MAINTENANCE Other Impr 38,390 16,000 20,000 - - PARKING LOT MILL AND OVERLAY Other Impr - 208,720 - - - SIGNAGE AND DISPLAYS Other Impr 9,839 33,600 - - - SALES EQUIPMENT Equipment - - - 10,000 - 65,067 358,320 160,000 103,248 85,000 - - - - - LIQUOR FUND SCHEDULE OF CAPITAL OUTLAY 8/25/2025 5:38 PM Page 49 of 88 Date: 10/27/2025 2026 Proposed Fee Schedule Proposed Action Staff is seeking direction from the Council regarding planned/proposed changes to City fees. Overview Annually staff reviews the fee schedule as part of the budget process and makes recommendations to the City Council for changes or additions as needed. The goal of fee changes is to recover our best estimate of costs incurred by the City in providing services. The Council is required to announce the time and place of the council meeting at which the 2026 official fee schedule would be discussed, and which would allow for stakeholder input. A public hearing as required by State Statute 462.353 is being held on December 1, 2025. The requirements to adopt a fee schedule set out in Minnesota Statute 462.353 subd. 4 will be met at the December 1, 2025 Council meeting. The public hearing will allow citizens and other interested parties to voice their opinions regarding the fees and charges. The input received from the October 27th work session and public hearing on December 1st will be incorporated into the 2026 Official Fee Schedule. The 2026 Official Fee Schedule will be incorporated into the City Code with an effective date of January 1, 2026 unless noted otherwise. New fees, including fees that have historically been charged but haven’t been reflected on the fee schedule, and proposed changes are indicated in the table on the attachment alongside their present amount. Please see the explanation for proposed changes below. Supporting Information 1. 2026 Fee Schedule - Attachment - Proposed Fee Changes Financial Impact: $ Budgeted: Yes Source: Envision Lakeville Community Values: Good Value for Public Service Report Completed by: Julie Stahl, Finance Director Page 50 of 88 ITEM/ACTIVITY 2025 Fee Proposed 2026 Fee 1 Residential (High-Density) $3,042 per dwelling unit $3,133 per dwelling unit Residential (Medium-Density) $3,968 per dwelling unit $4,087 per dwelling unit Residential (Low-Density) $5,832 per dwelling unit $6,007 per dwelling unit Commercial $9,477 per acre $9,761 per acre Industrial $5,615 per acre $5,783 per acre 2 Tree Preservation Fee Tree Replacement Fee in lieu of replacement n/a- new fee in 2026 $175 per diameter inch of replacement 3 City Engineer $203.00 $210.00 Assistant City Engineer $181.00 $187.00 Senior Project Engineer $171.00 $176.00 Project Engineer $152.00 $157.00 Civil Engineer $128.00 $132.00 Graduate Engineer $114.00 $117.00 GIS Manager $144.00 $148.00 GIS Analyst $114.00 $117.00 Environmental Resources Manager $152.00 $157.00 Environmental Resources Specialist $121.00 $124.00 Environmental Resources Technician $107.00 $111.00 City Forester $144.00 $148.00 Forester Technician $96.00 $98.00 Administrative Assistant $96.00 $98.00 Public Works Coordinator $181.00 $187.00 Construction Services Superintendent $171.00 $176.00 Senior Construction Representative $128.00 $132.00 Construction Representative $114.00 $117.00 4 CDs/DVDs No Charge No Charge 5 THC Licenses $150.00 $150.00 6 Resident Half Day $70.00 $80.00 Full Day $100.00 $110.00 Non-Resident Half Day $90.00 $100.00 Full Day $150.00 $160.00 Resident Half Day $120.00 $140.00 Full Day $150.00 $170.00 Non-Resident Half Day $140.00 $160.00 Full Day $200.00 $220.00 Resident Half Day $90.00 $100.00 Full Day $120.00 $130.00 Non-Resident Half Day $110.00 $120.00 Full Day $170.00 $180.00 2026 PROPOSED FEE SCHEDULE CHANGES* City of Lakeville *This schedule only includes the proposed changes/additions to fees, and is not the full fee schedule. Connection Charges and Development Fees Park Dedication Fee Engineering and Construction Services Staff Services Licenses Other license fees General Government services Copies (Provided in electronic format when possible) Engineering Charges Parks & Recreation- Shelter/Buildings Outdoor Park Shelter Rental Fees Antlers Park Shelter A Rental Fees Antlers Park Shelters B & C Rental Fees Ed Mako ELC Rental Fees Page 51 of 88 Resident $35/hr, 2 hour minimum $200 refundable deposit $45/hr, 2 hour minimum $200 refundable deposit Non-Resident $45/hr, 2 hour minimum $200 refundable deposit $55/hr, 2 hour minimum $200 refundable deposit 7 Key Rental $25.00 refundable deposit $25.00 refundable deposit Parks & Recreation- Field Rental fees 8 Baseball, Softball and Athletic Deck (per field/deck, per hour) 1,2 (Groups 2 and 3- field rental fee is waived for regular season league play and tournaments) Group 2- $10 Group 3-$12 Group 4- $14 Group 5- $16 Group 2- $15 Group 3-$17 Group 4- $19 Group 5- $21 9 Grand Prairie baseball field stadium $150/game 10 Aronson Park 2 (Softball fields 1-9, Saturday/Sunday, Tournament use). See below for separate light fees. Group 3-$400 Group 4- $500 Group 5- $600 Group 3-$400 Group 4- $500 Group 5- $600 11 Parks & Recreation Staff Services (hourly fees are associated with staff time to facilitate rentals when the building would not otherwise be open). Facility Attendant $69.00/hour $78.00/hour 12 2 hour minimum rental time 25% discount available for Community Theater events advertised in the Playbill. n/a- new fee in 2026 $20.00/hour $15.00/hour with theater rental 13 65% of building permit fee for permits with valuations greater than $10,000 except residential permits with less than $10,000 valuation. 14 Residential - Minimum repairs and alterations (one trip)$40.00 $55.00 Residential - Additions, remodels, lower levels (two trips)$80.00 $110.00 Residential - New installation (up to three trips)$135.00 $220.00 Commercial 1.5% of contract/valuation price up to $10,000 and 1.0% of contract/valuation price above $10,000 *Minimum fee $40.00 1.5% of contract/valuation price up to $10,000 and 1.0% of contract/valuation price above $10,000 *Minimum fee $55.00 Additional trip charge $40.00 $55.00 Separate permit for electrical hookup $40.00 $55.00 15 Building permit $200.00 $200.00 16 All structures other than residential accessory $50.00 $70.00 17 Zoning Letter $130.00 $148.00 18 Code Enforcement Officer $107.00 $111.00 Senior Planner $144.00 $148.00 Planning Manager $192.00 $198.00 Community Development Director $229.00 $235.00 19 Gas line encroachment (vehicle charge only; staff costs to be separately added) $173.00/hr $178.00/hr Extinguish illegal burning (includes recreational fire)- vehicle charge only; staff costs to be separately added $173.00/hr $178.00/hr 20 Fire department contract services $58.00/hr/person $60.00/hr/person 21 Fire inspection services (provided to other cities) Regular time Overtime $113.00/hour $139.00/hour $115.00/hour $141.00/hour Other public safety charges Permits Demolition (Adopted by Ordinance) Electrical Permits (Adopted by Ordinance) Manufactured Home Inspections (Adopted by Ordinance) Single Family Home to Assisted Living Conversion, Change of Use (Commercial) (Adopted by Ordinance) Heritage Center Plan Check Fees (Adopted by Ordinance) Response fees/fire Other shelter-related fees Other planning and zoning fees Planning and Zoning Staff Services (hourly fees) Planning & Zoning Public Safety Arts Center Greenroom B Page 52 of 88 Police Officers $121.00 $125.00 Community Service Officers $58.00 $60.00 Fire Chief $228.00 $235.00 Assistant Fire Chief $181.00 $186.00 Fire Captain $123.00 $133.00 Firefighter (FT)$97.00 $105.00 22 Mats Room (Defensive Tactics)n/a- new in 2026 $260/day Full classroom (114 seats)n/a- new in 2026 $500/day Half classroom (57 seats )n/a- new in 2026 $250/day 50-yd Shooting Range n/a- new in 2026 $235/hr 25-yd Shooting Range n/a- new in 2026 $235/hr Virtual Reality n/a- new in 2026 $100/hr RBT - Indoor & Outdoor n/a- new in 2026 $525/day Reality-Based Training Areas n/a- new in 2026 $525/day - Includes flexible wall system, customizable environments (including smoke) - Training Elements include: < Ladder rescue drills - balcony, windows and rooftop < Ground ladder training < SCBA confidence course < Search & rescue- Training 23 Part-time seasonal $39.00 $49.00 Service Tech $101.00 $104.00 Maintenance II $101.00 $104.00 Lead Maintenance $119.00 $122.00 Lead Service Tech $119.00 $122.00 Fleet, Streets, Parks Supervisor $144.00 $148.00 Superintendent $171.00 $176.00 Administration $96.00 $98.00 *See Engineering section for Construction Services staff rates. Part-time seasonal $39.00 $49.00 Maintenance I $76.00 $78.00 Maintenance II $101.00 $104.00 Lead Maintenance $119.00 $122.00 Supervisor $144.00 $148.00 Superintendent $181.00 $187.00 Administration $96.00 $98.00 24 Loader 950 $94.00 $94.00 Loader 938 $75.00 $116.00 Loader 908 $50.00 $83.00 Motor Grader $160.00 $160.00 Dump Truck Tandem $75.00 $100.00 Dump Truck Tandem w/Plow Equipment $100.00 $133.00 Dump Truck Single Axle $55.00 $75.00 Dump Truck Single Axle w/Plow Equipment $80.00 $108.00 Walk Behind Striper $6.00 $13.00 Air Compressor $18.00 $27.00 Street Sweeper $184.00 $95.00 Tanker Truck $44.00 $66.00 Ditch Mower $50.00 $70.00 Public Works Streets and Parks staff services (per hour) (Hourly fees are typically charged in cases where FEMA is involved, or if City staff assists another community/agency in an emergency situation). Fees may be billed based on the titles below or any changes to the position titles during the year. Utilities staff services (per hour) (Hourly fees are typically charged in cases where FEMA is involved, if City staff assists another community/agency in an emergency situation, or for water disconnection/reconnection or other service call). Fees may be billed based on the titles below or any changes to the position titles during the year. Equipment Use Fees (per hour) (Hourly fees are typically charged in cases where FEMA is involved, or if City staff assists another community/agency in an emergency situation). Staff fees to be added separately. Police and Fire Staff Services (hourly fees) FiRST Center- General Facility Pricing* *All training requires 4-hour segment rental agreements. Rates are for public safety professionals unless specifically noted that they are open to the public. FiRST Center- Fire Training Facility Pricing Page 53 of 88 Fork Lift $18.00 $24.00 Tractor Backhoe $91.00 $110.00 Mini Excavator $50.00 $57.00 25 Valve replacement (fee includes cost of the valve and staff time to replace the valve; typically completed only as needed at the time of water meter replacement) $45.00 per valve replacement $46.00 per valve replacement 26 Base Charge- per dwelling unit, per quarter $11.34 $11.68 Usage Charge • Based on actual consumption during the first or second quarter of the year, depending on location within the City, or actual water consumption during the billing period. • When an account is newly established, the maximum sewer usage charge shall be set at 18,000 gallons. Sewer for the remainder of the year will be set at this figure or actual usage, whichever is less. • Residential customers shall be billed for a minimum of 5,000 gallons per quarter. • For apartments and manufactured homes served by a single meter, the usage charge is determined by dividing the total gallons of water by the # of units. $5.62/1000 Gal $5.79/1000 Gal Flat rate- per dwelling unit, per quarter shall be charged to those residential customers who do not have metered water. $112.50 $115.90 Base Charge- per account, per quarter $11.34 $11.68 Usage Charge • Based on actual consumption during the first quarter of the year, or actual water consumption during the billing period, whichever is less • When an account is newly established, the maximum sewer usage charge shall be set at 18,000 gallons. Sewer for the remainder of the year will be set at this figure or actual usage, whichever is less. • Industrial, Institutional, and Commercial customers shall be billed for a minimum of 5,000 gallons per quarter. $5.62/1000 Gal $5.79/1000 Gal 27 Base Charge- per dwelling unit, per quarter $10.92 $11.58 Usage Charge • Based on actual metered gallons consumed each quarter Tier 1- up to 6,000 gallons per quarter 1.42/1000 Gal 1.51/1000 Gal Tier 2- over 6,000 gallons up to 15,000 gallons per quarter (additional 9,000 gallons max) 1.58/1000 Gal 1.67/1000 Gal Tier 3- over 15,000 gallons up to 30,000 gallons per quarter (additional 15,000 gallons max) 3.05/1000 Gal 3.23/1000 Gal Tier 4- over 30,000 gallons per quarter 5.35/1000 Gal 5.67/1000 Gal Irrigation sprinkler meters 5.35/1000 Gal 5.67/1000 Gal Base Charge- per account, per quarter $10.92 $11.58 Usage Charge • Based on actual metered gallons consumed each quarter Tier 1- up to 6,000 gallons per quarter 1.42/1000 Gal 1.51/1000 Gal Tier 2- over 6,000 gallons up to 15,000 gallons per quarter (additional 9,000 gallons max) 1.58/1000 Gal 1.67/1000 Gal Tier 3- over 15,000 gallons up to 30,000 gallons per quarter (additional 15,000 gallons max) 3.05/1000 Gal 3.23/1000 Gal Tier 4- over 30,000 gallons per quarter 5.35/1000 Gal 5.67/1000 Gal Irrigation sprinkler meters 5.35/1000 Gal 5.67/1000 Gal Usage Charge o Based on actual metered gallons consumed each quarter $6.36/1000 Gal $6.74/1000 Gal 28 Out of Cycle Meter Read (during normal business hours only) First and second out of cycle meter read no charge no charge Third and subsequent out of cycle meter reads $72.00/visit $74.00/visit Special meter read for tenant/owner changes $72.00/visit $74.00/visit 29 5/8" to 1"$68.00 $84.00 1 1/4" to 2"$94.00 $108.00 30 During normal business hours $72.00/visit $74.00/visit After normal business hours $178.00/visit $206.00/visit Water Disconnection, Reconnection or other Service Call Other Other public works fees OTHER UTILITY FEES Testing of Water Meters (only if meter tests correct, in accordance with Ordinance 7-5-4-6) SEWER USAGE RATES- Quarterly Charges Residential, Apartments and Manufactured Homes (Apartment & Manufactured Homes Base charge and consumption limits are multiplied by the # of units at the time the meter is read) Commercial, Industrial and Institutional WATER USAGE RATES- Quarterly Charges Residential, Apartments and Manufactured Homes Commercial, Industrial and Institutional Bulk Water Accounts Page 54 of 88 31 MN State water supply service connection fee (state testing fee) $2.43/quarter/connection $3.81/quarter/connection 32 Monthly new customer list- electronic n/a- new in 2026 $60.00/year 33 Mini Manhole Cover plus installation *Includes cost of mini manhole plus an additional 15% for staff administrative processing time, and staff time to install (including staff use of City patch truck). Actual cost of mini manhole cover + 15%; plus $286 for installation Actual cost of mini manhole cover + 15%; plus $294 for installation 34 Residential and multiple family units $10.12/dwelling unit/quarter $10.63/dwelling unit/quarter Commercial, Industrial and Institutional $0.2832/front foot/quarter $0.2974/front foot/quarter New subdivisions, as part of development contract $40.48/residential dwelling unit $42.52/residential dwelling unit Residential and multiple family units $40.48/dwelling unit $42.52/dwelling unit Manufactured homes and Manufactured Home Parks No charge No charge 35 -Single family (residential equivalent utility factor) Environmental Resources Fee $15.38/dwelling unit/quarter $16.00/dwelling unit/quarter Utility accounts not served by water and/or sanitary sewer shall be billed annually. -Residential equivalent utility factor Environmental Resources Fee $61.52/dwelling unit/year $64.00/dwelling unit/year New subdivisions, as part of development contracts; one-time fee $61.52/dwelling unit $64.00/dwelling unit Utility accounts NOT served by water and/or sanitary sewer Other STREET LIGHTS Utility accounts served by water and/or sanitary sewer Utility accounts NOT served by water and/or sanitary sewer shall be billed annually ENVIRONMENTAL RESOURCES FEE (stormwater maintenance) Utility accounts served by water and/or sanitary sewer Page 55 of 88 Page 1 Explanations of Fee Changes 1. The residential, commercial, and industrial park dedication fees are proposed to increase by 3% as of January 1, 2026, to coincide with the increase in estimated market value of unplatted land. 2. Addition of a tree replacement fee in lieu of replacement. The City Council recently approved an updated Tree Preservation Ordinance that requires replacement if tree removal exceeds allowed removal thresholds. If a site cannot accommodate the required tree replacement, a fee in lieu of replacement will be accepted at $175 per diameter inch of replacement. 3. Revised the staff hourly fees to reflect estimates for 2026 cost of living adjustments. Consistent with prior years, the rates are calculated using 2.5 times payroll costs (to account for benefit and other indirect costs). 4. Removed the line item to provide CD/DVD copies, because the City no longer has a method by which to provide these. Instead, electronic copies are typically provided by flash drive or posting files online, and the line item for electronic copies covers this method. 5. Removed the THC Licenses fee. The City is no longer able to license for THC since that is now run through the Office of Cannabis Management at the State. 6. Increased the rates for several shelter/building rentals in accordance with market rates and to support cost recovery for staff time and building/shelter maintenance costs. 7. Removed the key rental fee because we now use the Proxess system instead of checking out keys. 8. Increased the field rental fees in accordance with market rates and to ensure we are recovering staff costs/field maintenance costs. 9. Added a new rental fee for the Grand Prairie Baseball Field Stadium that will be opening in 2026. 10. Removed the field rental fees specific to Aronson Park as they will instead follow the overall field rental fees. 11. Revised the staff hourly fees to reflect estimates for 2026 cost of living adjustments. Consistent with prior years, the rates are calculated using 2.5 times payroll costs (to account for benefit and other indirect costs). 12. Added a new fee for the Greenroom B at the Arts Center, which recently become available to rent after moving pottery to the Fine Arts building, and after it was remodeled to accommodate performance groups. 13. Amended the verbiage of the plan check fees to charge the fee on commercial permits with valuations less than $10,000, which require staff time for inspections and plan review time. 14. Updated electrical permit fees to reflect increases made at the State level. 15. Added Change of Use (Commercial) building permit fee at the same rate as the fee for Single Family Home to Assisted Living Conversion building permit fee. This fee is used to cover staff costs of a site inspection, any necessary code updates that affect life safety or accessibility, perform a reinspection if needed, and process a new certificate of occupancy. 16. Increased the demolition fee permit to be the same as other City minimum permit fees. 17. Increased cost of providing a zoning letter to reflect the same hourly fee for the Senior Planner staff rate, to assist the City in recovering its costs in providing the letter. 18. Revised the staff hourly fees to reflect estimates for 2026 cost of living adjustments. Consistent with prior years, the rates are calculated using 2.5 times payroll costs (to account for benefit and other indirect costs). Page 56 of 88 Page 2 19. Increased the response/fire fees if gas line encroachment and extinguish illegal burning to reflect increases in costs to perform these activities. 20. Increased the Fire department contract services rate from $58/hour to $60/hour to account for increases in payroll costs, and other fire response fees to account for increases in staff costs. 21. Increased the Public Safety Staff Services fees (Police Officers, Community Service Officers, Fire Chief, Assistant Fire Chief, and Fire inspection services fees) for estimated 2026 cost of living adjustments, the goal being to ensure City costs are recovered for when these services are billed. 22. Added fees for the FiRST Center, which is currently under construction and expected to open during 2026. Currently excluded is a fee for public use of the shooting range, which is planned to be brought to Council during 2026 after input from the future FiRST Center Manager and additional research on pricing and times for the public access to the range. 23. Revised the staff hourly fees to reflect estimates for 2026 cost of living adjustments. Consistent with prior years, the rates are generally calculated using 2.5 times payroll costs (to account for benefit and other indirect costs). 24. Adjusted various equipment use fees and equipment descriptions to match the most recent FEMA schedule. Removed the Loader 950 since the City no longer has that equipment. 25. Adjusted the fee for valve replacement from $45/valve to $46/valve to account for changes in both staff and valve costs. 26. Sewer rates are proposed to increase to cover infrastructure improvements on lift stations in the 2026-2030 Capital Improvement Plan, as well as an 8.3% increase in the MCES charges, which are not controllable by the City. The recommended increase is a $0.34 per quarter for the basic sewer charge and $0.17 per thousand gallons of discharge. For the average residence using 15,000 gallons, the increase in the quarterly bill will be $2.95. More detail is provided in the October 27th Utility Budget/Rate memo. 27. Water rates are proposed to increase to cover infrastructure improvements as proposed in the 2026-2030 Capital Improvement Plan, as well as cost increases for normal operating expenses. The recommended increase is $0.66 per quarter for the basic water charge and $0.09 per thousand gallons of consumption (tier 1), $0.09 per thousand gallons of consumption (tier 2), $0.18 per thousand gallons of consumption (tier 3), and $0.32 per thousand gallons of consumption (tier 4 and irrigation sprinklers). For the average residence using 15,000 gallons of water, the increase in the quarterly bill will be $2.01. More detail is provided in the October 27th Utility Budget/Rate memo. 28. Increased the fee for third and subsequent out of cycle meter reads, and the special meter read for tenant/owner changes to be $74/visit, consistent with the utility service call fees (during normal business hours). 29. Increased the water meter testing fees to ensure we are recovering costs incurred on water meter testing. 30. The water service call fees are proposed to be increased from $72/visit to $74/visit for calls during normal business hours and from $178/visit to $206/visit for service calls after normal business hours. The purpose of these increases is to better reflect the actual costs incurred by the City in performing the service calls. These fees are charged for water disconnection, water reconnection, other service calls, and for meter reading of customers who have opted out of the radio-read type meters (meter must be read manually). The after-business hours charge is higher due to the minimum 2.5 hours paid to staff for after-hours work per the union contract. Page 57 of 88 Page 3 31. The State of Minnesota water supply service connection fee is increasing from $9.72 to $15.22 per service connection per year, effective January 1, 2026. The City includes one quarter of the annual fee on each quarterly customer bill, and then remits those amounts to the State. Thus, the fee included on City water bills is increasing from $2.43 per quarter per connection to $3.81 per quarter per connection. This fee is not controlled by the City. It is collected by the City from customers and then sent to the State of Minnesota. 32. Added fee to compensate for employee’s time to prepare and send a new customer list monthly to individuals/organizations as requested. Charging a fee is consistent with other cities in the metro area. 33. Increased fees for mini manhole cover installation to ensure we are recovering costs incurred in providing these services (increase due to increase in staff costs). 34. Street Light rates are proposed to increase to cover costs projected in the 2026-2030 Capital Improvement Plan, as well as normal operating increases. The recommended increase is a $0.51 per quarter for the quarterly fee. More detail is provided in the October 27th Utility Budget/Rate memo. 35. Environmental Resources rates are proposed to increase to cover costs projected in the 2026- 2030 Capital Improvement Plan, as well as normal operating increases. The recommended increase is a $0.62 per quarter for the quarterly fee. More detail is provided in the October 27th Utility Budget/Rate memo. Page 58 of 88 Date: 10/27/2025 3rd Qtr 2025 Financial Report & Finance Department Update Proposed Action No formal action reuiqred. For discussion only. Overview The attached financial report analysis offers readers a narrative overview of the financial activities of the City for the 3rd quarter of 2025. The Finance Department report provides an overview of completed and ongoing projects, along with statistics for Utility Accounts and Accounts Payable. Supporting Information 1. 2025 3Qtr Financial Report 2. Finance Dept 3Q2025 Presentation Financial Impact: $ Budgeted: Yes Source: General, Communications, Liquor, Utility funds Envision Lakeville Community Values: Good Value for Public Service Report Completed by: Julie Stahl, Finance Director Page 59 of 88 i FINANCIAL HIGHLIGHTS: The following financial report and analysis offers readers a narrative overview of the financial activities of the City for the nine-month period ended September 30, 2025. This report includes the General Fund, Communications Fund, Liquor Fund and Utility Operating Funds. The readers are encouraged to consider the information presented here in conjunction with the unaudited financial statements attached to this report, the adopted budget, and the five-year Capital Improvement Plan. General Fund - Revenues Property tax revenues. • Tax payments from Dakota County are received in two installments, typically in June and December. General Fund property tax revenues are anticipated to be $33.3 million for 2025. Licenses and Permits. • Building permit revenues continue to exceed the budget expectations through the third quarter. The following chart illustrates the number of permits issued during the third quarter compared to the same period in 2024 and the 2025 adopted budget projections: • Year-to-date permits issued through October 21, 2025 are as follows: • Single Family – 181 • Townhome – 243 YTD 3rd 2025 YTD 3rd Quarter Adopted Quarter Permit Type 2024 Budget 2025 Single Family 220 300 176 Townhome 87 150 231 Apartments (Units)1 (89 units) 1 (182 units) 0 Commercial 4 2 8 Industrial 1 2 0 Page 60 of 88 ii FINANCIAL HIGHLIGHTS (continued): Historical Building Permits • As shown in the chart below, building permits for single-family experienced record- breaking activity in 2019, 2020 and 2021. Permit activity has since stabilized, reflecting steady growth similar to pre-pandemic trends. The composition of permits continues to evolve, with an increasing share of townhome and apartment complex developments. Intergovernmental. • Revenues comprised of police and fire aid and various grants are typically received in the third and fourth quarters. Grant revenues are $800K more than this same period last year and are comprised of the Forestry Shade Tree grant, Police’s ICPOET Cadet grant and the first SAFER grant receipts of $775,000 (six months reimbursed). However, due to the federal government shutdown, future SAFER grant payments are expected to be delayed until operations resume. Charges for Services • General government services are in line with the budget and slightly below the previous year. $169,000 has been received for fiscal agent fees from Dakota 911 and Lakeville Arenas which is up $35,200 over the previous year. • Public Safety revenues are in line with the budget. SRO contributions are up from 2024 due to changes in staffing of the SRO Officers. The renewed fire contract with Eureka Township, billed in June, yielded revenue of $64,478 ($12,600 more than 2024). Page 61 of 88 iii FINANCIAL HIGHLIGHTS (continued): • Public works revenues are based mainly on summer construction projects and year-to-date revenues exceeding the annual budget. Engineering developer contract administration fees are recognized as revenue when collected with the development contract. This contract administration revenue is $54,000 higher from the same period a year ago due to more and larger developments in 2025. These revenues tend to be volatile from year to year, as the timing of large projects can significantly influence annual results. • Parks and Recreation revenues are down $15,000 from the prior year. Recreation programs are exceeding budget estimates (at 81%) as most programs are held in the summer. Court Fines. • Revenues from court fines ($143,000) represent 60% of the budget estimates and are down $18,000 from the same period in 2024. Court fine revenues and the membership fees paid to the Dakota 911 are both impacted by the number of CAD calls. General Fund - Expenditures Total expenditures are roughly $2 million greater than 3Q 2025 and are 68% of the 2025 budget. Personnel. Expenditures for the third quarter for personnel are at 66% of the 2025 budget. Several employee vacancies and transitions have resulted in lower costs than expected. Motor Fuels. Motor fuels through September 30 are at 64% of the 2025 Budget. Fuel expenses are slightly lower ($3,389) than the same period in 2024 as fuel costs continue to fluctuate. The City does have a contract for fuel prices in place to mitigate some of the price increases. Street Chemicals. Salt purchases in 2025 are $208K lower than the same period in 2024 and represent 76% of the annual $188K budget. Salt purchased at the end of the 2024–2025 winter season is currently stored at the central maintenance facility and will be available for use in late fall if needed. Storage capacity is full, and staff does not anticipate the need to replenish reserves in 2025. The current encumbrance of $165K is not included in the expenditures. Under the new BS&A system, encumbrances are used to track committed funds prior to the actual expenditure. A budget amendment may be considered if utilization of these encumbered funds becomes necessary. Utilities. Electric costs are at 79% of budget and are $92K more than the same period in 2024. Increased electricity rates are a major factor for this increase. Natural gas costs are $11K higher than the same period in 2024. Combined electric and natural gas costs are at 64% of budget. Mayor and Council. Expenditures are higher than the same period in 2024. This is mainly attributed to the timing of dues for the League of MN Cities. City Administration. Expenditures are at 72% of budget, partially due to the new membership in the National League of Cities. City Clerk. Expenditures are within the 2025 budget and lower compared to the prior year due to the elections in 2024. The County billed for election equipment costs in the second quarter of 2024. Page 62 of 88 iv FINANCIAL HIGHLIGHTS (continued): General Fund - Expenditures (continued) Legal. Legal fees are over budget. Expenditures are $20K higher than the same period in 2024. Community and Economic Development. Expenditures are 66% of budget and $90K lower than the previous year. The departments Community and Economic Development and Planning were consolidated starting in 2024. Inspections. Expenditures are below budget benchmark at 65% and $73K lower than the previous year due to a position vacancy. Contractual electrical inspections are lower by $37K from the prior year which correlates to the decrease in permit revenues. General Government Facilities. Salaries in 2025 are up over the same period in 2024 due to vacancies being filled. Commodities and other charges and services are at 65% of budget and are expected to be within the adopted 2025 budget. Finance Department. Personnel costs are below budget benchmarks at 69% and lower than the same period in 2024, mainly due to increased staff time during ERP transition in 2024. Other charges and services are $68K lower compared to 2024, as the ERP implementation took place that year. These expenses are expected to be within the 2025 adopted budget. Information Technology. Overall expenditures are at 83% of the adopted 2025 budget. Timing of annual maintenance agreements can impact the expense comparison each year. Allocations to other departments for their respective technology applications is done at year-end. Human Resources. Personnel costs are lower than budget (65%) and lower than the same period in 2024 due to transition costs occurring in the 4Q 2024. Professional fees are lower than the prior year due to ERP implementation costs. Police. Personnel services are slightly under budget at 68% and higher than the previous year by $400K due to new staff additions that were approved in the 2025 budgets. The overall expenditures are within the budget benchmark. Capital outlay in 2025 relates to the K-9 replacements, which are fully funded through donations and collaborative fundraising efforts between Liquor and Police staff. Fire. Personnel services are under budget (at 54%) and higher than the previous year by $1M due to the addition of 6 full-time firefighters at the end of the second quarter of 2024. Firefighter pay is contingent on the number of fire calls during the year and is expected to fluctuate as the department continues to expand into a hybrid model of both paid on call and full-time staff. Commodities are $143K higher than prior year due to outfitting of new personnel. Capital outlay of $98K consists mainly of the purchase of 2 AEDs. The City was awarded the SAFER grant which provides reimbursement on the 15 additional full-time firefighters that were hired in 2025. City staff is working with consultants to submit grant reimbursements monthly. Page 63 of 88 v FINANCIAL HIGHLIGHTS (continued): Engineering/GIS. Total expenditures are slightly below budget estimates (at 63%) but are expected to be within the 2025 budget benchmark. Forestry. Total expenditures are slightly above budget estimates (at 77%) and are expected to be within the 2025 budget benchmark. Construction Services. Personnel services are below budget at 53% due to employee vacancies. Streets. Personnel services are below budget (at 65%) and lower than the prior year due to decreases in overtime cost related to snow events. Commodities are under the prior year due to chemicals purchased at the end of the 2024 winter season. All unused chemicals are stored for use in the fall. The salt storage is currently at capacity. Parks. Overall expenditures are slightly under budget (at 72%) and $131K less than the same period last year. Recreation and Arts Center. Expenses are within budget in the third quarter and are $45K more than the prior year. Communications Fund Revenues from Franchise fees are received on a quarterly basis. They are typically received by the end of the month following the quarter. Revenues continue to be lower than historical and have trended down $35K from the prior year as there are other options for residents to utilize for their entertainment. Expenditures are under budget estimates and are up $34K from the same period in 2024. Liquor Fund Sales through the third quarter amounted to $15.9 million, representing a 3.6% decrease compared to the same period in 2024. Both customer counts and sales per transaction have declined year-over-year. Gross profit margin stands at 28.7% in 2025, up from 28.5% in 2024. THC sales have significantly outperformed expectations, reaching $594K through September - nearly triple the $178K annual budget for this category. Total operating expenditures are at 66% of budget appropriations and are $189K lower than the same period in 2024. Page 64 of 88 vi FINANCIAL HIGHLIGHTS (continued): 2025 Budgeted Transfers Out include $900K to the Equipment Fund; $400K to the Debt Service Fund for the police station bonds (final maturity - February 2032); $346,800 to the Debt Service Fund for the Keokuk Liquor Store; $30K for the 2025 fireworks; and $67,605 to the Technology Fund. Capital outlay consists of a wine room remodel at the Galaxie store and wains coating in the Emporium Room at the Keokuk store. Water Fund Water revenues in the third quarter were lower, primarily due to a wet spring and summer, which is typical for this time of year. However, revenues are higher – by $1.2M – compared to the same period in 2024, largely due to the growth in the customer base. A new water rate structure, implemented on February 1, 2023 encourages conservation and provides a more equitable model, resulting in lower bills for customers with lower usage. Operating expenditures are under budget estimates (at 72%) and are $215K lower than last year. Sewer Fund Sewer revenues exceed budget expectations, currently at 90%, and are higher than the same period in 2024 by $813K. As with water revenues, this increase is primarily driven by the growth in the customer base. Disposal charges paid to Metropolitan Council of Environmental Services increased 4.5% over the 2024 rates and are projected to be $5.6 million for 2025. Operating expenditures are below budget estimates at 68%. Street Lighting Fund Revenues are above the budget benchmark and are up over the same period in 2024 due to increase in customer base. Streetlight rates did not increase for 2025. Expenditures are currently at 84% of budget appropriation, exceeding expectations due to an additional $38K spent on streetlight replacements. Page 65 of 88 vii FINANCIAL HIGHLIGHTS (continued): Environmental Resources Fund Revenues are currently at 83% of budget appropriations and are $174K higher than the same period in 2024, driven by customer base growth and a 4% rate increase implemented in 2025. Intergovernmental grant revenues are budgeted at $535,000 for the following restorations: o Aquatic invasive species – Dakota County funding $35,000 o CP 24-44 Greenridge Park Water quality improvements - $500,000 The request for funding will be made once the final contract payments are made. Personnel expenditures are below budget due to employee transitions. Contractual expenditures are also tracking below budget, which is typical for the third quarter. Projects are either still in progress or have not yet started, contributing to lower overall expenses compared to the budget. Page 66 of 88 2025 2025 Variance from Adopted Amended 9/30/25 Amended Budget Actual 9/30/24 Budget Budget Actual Positive (Neg) Percent Actual Revenues General property taxes 33,300,000$ 33,300,000$ 17,524,578$ (15,775,422)$ 52.6% 15,797,947$ 1,726,631$ 110.9% Licenses and permits 3,259,689 3,259,689 2,744,163 (515,526) 84.2% 2,455,774 288,389 111.7% Intergovernmental 3,478,938 3,674,484 1,221,087 (2,453,397) 33.2% 409,762 811,325 298.0% Charges for services 3,061,144 3,101,894 3,091,902 (9,992) 99.7% 2,723,128 368,774 113.5% Court fines 240,000 240,000 143,235 (96,765) 59.7% 161,257 (18,022) 88.8% Investment income 500,000 500,000 732,620 232,620 146.5% 651,602 81,018 112.4% Miscellaneous 166,746 125,996 162,900 36,904 129.3% 128,185 34,715 127.1% Total revenues 44,006,517 44,202,063 25,620,485 (18,581,578) 58.0% 22,327,655 3,292,830 114.7% Expenditures General Government Mayor and Council 126,321 126,321 119,030 7,291 94.2% 86,346 (32,684) 137.9% Committees and Commissions 143,422 141,922 93,720 48,202 66.0% 148,495 54,775 63.1% City Administration 587,089 586,984 424,127 162,857 72.3% 414,283 (9,844) 102.4% City Clerk 225,579 225,544 158,585 66,959 70.3% 240,956 82,371 65.8% Legal Counsel 87,000 88,500 90,953 (2,453) 102.8% 69,313 (21,640) 131.2% Community/Econ Development 1,089,649 1,089,439 722,667 366,772 66.3% 813,556 90,889 88.8% Inspections 1,918,122 1,917,714 1,248,464 669,250 65.1% 1,321,149 72,685 94.5% General Gov' Facilities 669,991 669,886 511,885 158,001 76.4% 424,819 (87,066) 120.5% Finance 1,235,639 1,235,359 829,953 405,406 67.2% 911,405 81,452 91.1% Information Systems 989,146 989,006 823,769 165,237 83.3% 648,239 (175,530) 127.1% Human Resources 688,489 693,302 451,877 241,425 65.2% 559,608 107,731 80.7% Insurance 250,000 250,000 187,500 62,500 75.0% 206,250 18,750 90.9% Public Safety Police 17,227,952 17,227,357 12,032,465 5,194,892 69.8% 11,286,887 (745,578) 106.6% Fire 5,588,299 5,702,793 3,359,493 2,343,300 58.9% 2,054,231 (1,305,262) 163.5% Public Works Engineering 946,722 946,442 598,299 348,143 63.2% 547,262 (51,037) 109.3% Forestry 680,154 680,084 523,382 156,702 77.0% 376,865 (146,517) 138.9% Construction Services 701,328 701,153 407,920 293,233 58.2% 302,684 (105,236) 134.8% Streets 4,409,718 4,408,855 2,822,862 1,585,993 64.0% 2,811,749 (11,113) 100.4% Parks & Recreation Parks 3,768,652 3,768,022 2,715,203 1,052,819 72.1% 2,846,097 130,894 95.4% Recreation 1,126,418 1,126,313 945,125 181,188 83.9% 848,805 (96,320) 111.3% Arts Center 1,033,734 1,033,734 777,694 256,040 75.2% 918,995 141,301 84.6% Other --- - 0.0%- - 0.0% Total expenditures 43,493,424 43,608,730 29,844,973 13,763,757 68.4% 27,837,994 (2,006,979) 111.3% Excess (deficiency) of revenues over expenditures 513,093 593,333 (4,224,488) 4,817,821 (5,510,339) (1,285,851) Other financing sources (uses) Transfer from other funds 170,000 170,000 30,000 (140,000) 17.6% 226,998 196,998 13.2% Transfer to other funds -(1,850,000) (1,850,000) -100.0% (215,000) (1,635,000) 860.5% Total other financing sources (use 170,000 (1,680,000) (1,820,000) 140,000 108.3% 11,998 (1,438,002) 111.3% Net change in fund balance 683,093 (1,086,667) (6,044,488) 4,957,821 (5,498,341) (546,147) Beginning fund balance 21,747,353 23,186,629 23,186,629 -22,372,997 813,632 Ending fund balance 22,430,446$ 22,099,962$ 17,142,141$ 4,957,821$ 16,874,656$ 267,485$ Restrict fund balance (775,000) (775,000) (775,000) Fund Bal of CY Exp 49.8%48.9% 54.8%60.6% Expenditure Summary Personnel services 33,047,698 33,156,616 22,078,705 11,077,911 66.6% 20,528,453 (1,304,484) 107.6% Commodities 2,439,091 2,439,091 1,572,872 866,219 64.5% 1,633,453 60,149 96.3% Other charges and services 7,930,040 7,867,384 5,856,962 2,010,422 74.4% 5,595,978 (731,205) 104.7% Capital outlay 76,595 145,639 336,435 (190,796) 231.0% 80,110 (155,784) 420.0% Total expenditures 43,493,424$ 43,608,730$ 29,844,974$ 13,763,756$ 48.1% 27,837,994$ (2,131,324)$ 111.3% - CITY OF LAKEVILLE, MINNESOTA Summary Statement of Revenues, Expenditures and Changes in Fund Balances For the Nine-Month Period Ended September 30, 2025 Comparative GENERAL FUND Positive (Negative) Variance from 2024 Actual UNAUDITED Page 67 of 88 2025 2025 Variance from Adopted Amended 9/30/25 Amended Budget Actual 9/30/24 Budget Budget Actual Positive (Neg) Percent Actual Revenues Franchise taxes 489,685$ 489,685$ 237,583$ (252,102)$ 48.5% 272,817$ (35,234)$ 87.1% Charges for services 34,116 34,116 19,927 (14,189) 58.4% 26,135 (6,208) 76.2% Investment income 6,052 6,052 49,190 43,138 812.8% 44,240 4,950 111.2% Miscellaneous 2,000 2,000 - (2,000) 0.0%- - 0.0% Total revenues 531,853 531,853 306,700 (225,153) 57.7% 343,192 (36,492) 89.4% Expenditures Current General government 805,067 805,067 561,643 243,424 69.8% 535,393 (26,250) 104.9% Capital outlay General government 33,000 33,000 13,457 19,543 40.8% 6,155 (7,302) 218.6% Total expenditures 838,067 838,067 575,100 262,967 68.6% 541,548 (33,552) 111.3% Excess (deficiency) of revenues over expenditures (306,214) (306,214) (268,400) (37,814) (198,356) 70,044 135.3% Other financing (uses) Transfer to other funds (4,155) (4,155) (4,155) - 100.0% (7,300) (3,145) 56.9% Total other financing (uses) (4,155) (4,155) (4,155) - 100.0% (7,300) (3,145) 111.3% Net change in fund balance (310,369) (310,369) (272,555) (37,814) (205,656) (66,899) Beginning fund balance 1,384,987 1,282,765 1,282,765 - 1,384,987 (102,222) Ending fund balance 1,074,618$ 972,396$ 1,010,210$ (37,814)$ 1,179,331$ (169,121)$ CITY OF LAKEVILLE, MINNESOTA Special Revenue - Communications Summary Statement of Revenues, Expenditures and Changes in Fund Balances For the Nine-Month Period Ended September 30, 2025 Comparative Variance from 2024 Actual Positive (Negative) UNAUDITED Page 68 of 88 Unaudited 2025 2025 Percent Adopted Amended 9/30/25 of 9/30/24 Budget Budget Actual Variance Budget Actual Sales and cost of sales Sales 23,238,382$ 23,238,382$ 15,928,043$ (7,310,339)$ 68.5% 16,525,827$ (597,784)$ 96.4% Cost of sales 16,828,635 16,828,635 11,349,896 5,478,739 67.4%11,818,886 468,990 96.0% Gross profit 6,409,747 6,409,747 4,578,147 (1,831,600) 71.4%4,706,941 (128,794) 97.3% Gross profit %27.6% 27.6% 28.7%28.5% Operating expenses Personnel services 3,357,512 3,357,512 2,199,857 1,157,655 65.5% 2,158,709 (41,148) 101.9% Commodities 97,056 97,056 65,005 32,051 67.0% 55,494 (9,511) 117.1% Other charges and services 1,916,183 1,916,183 1,253,442 662,741 65.4%1,114,824 (138,618) 112.4% Total operating expenses 5,370,751 5,370,751 3,518,304 1,852,447 65.5%3,329,027 (189,277) 105.7% Operating income 1,038,996 1,038,996 1,059,843 20,847 102.0%1,377,914 (318,071) 76.9% Non-operating revenue (expense) Investment income 105,000 105,000 104,660 (340)99.7% 51,354 53,306 203.8% Lease payment (265,000) (265,000) (265,000) -100.0% (260,000) (5,000) 101.9% Transfers in (out) General Fund - Fireworks (30,000) (30,000) (30,000) -100.0% (30,000) -100.0% Debt Service: Tax Abatement - Keokuk (346,800) (346,800) (346,800) -100.0% (350,450) 3,650 99.0% CIP Bonds-Police Station (400,000) (400,000) (400,000) -100.0% (400,000) -100.0% Capital Projects: Equipment Fund (900,000) (900,000) (900,000) -100.0% (500,000) (400,000) 180.0% Technology Fund (67,605) (67,605) (67,605) - 100.0%(59,500) (8,105) 113.6% Total non-operating (net)(1,904,405) (1,904,405) (1,904,745) (340) 100.0%(1,548,596) (356,149) 123.0% Net change in net position (865,409) (865,409) (844,902) 20,507 (170,682) (674,220) Beginning net position 12,734,454 12,984,719 12,984,719 250,265 12,869,554 115,165 Ending net position 11,869,045$ 12,119,310$ 12,139,817$ 270,772$ 12,698,872$ (559,055)$ Variance from 2024 Actual Positive (Negative) CITY OF LAKEVILLE, MINNESOTA Enterprise - Liquor Fund Statement of Revenues, Expenditures and Changes in Working Capital For the Nine-Month Period Ended September 30, 2025 Comparative Page 69 of 88 Unaudited 2025 2025 Percent Adopted Amended 9/30/25 of 9/30/24 Budget Budget Actual Variance Budget Actual Operating revenues User charges for services 8,150,143$ 8,150,143$ 5,812,309$ (2,337,834)$ 71.3% 4,486,057$ 1,326,252$ 129.6% Other 75,000 75,000 426,656 351,656 568.9%540,273 (113,617) 79.0% Total operating revenue 8,225,143 8,225,143 6,238,965 (1,986,178) 75.9%5,026,330 1,212,635 -39.5% Operating expenses Personnel services 1,904,000 1,904,000 1,491,697 412,303 78.3% 899,860 (591,837) 165.8% Commodities 949,549 949,549 445,559 503,990 46.9% 499,359 53,800 89.2% Other charges and services 1,952,059 1,952,059 1,384,980 567,079 70.9% 1,691,183 306,203 81.9% Major Maintenance 30,000 30,000 149,398 (119,398) 498.0%596,093 446,695 25.1% Total operating expenses 4,835,608 4,835,608 3,471,634 1,363,974 71.8%3,686,495 214,861 94.2% Operating income (loss)3,389,535 3,389,535 2,767,331 (622,204) 1,339,835 1,427,496 Non-operating revenue (expense) Investment income 54,327 54,327 523,300 468,973 963.2% 471,467 51,833 111.0% Debt Service (232,725) (232,725) (253,287) (20,562) 108.8% (166,364) (86,923) 152.2% Transfers (out)(580,109) (580,109) (565,110) 14,999 97.4%(563,727) (1,383) 100.2% Total non-operating (net)(758,507) (758,507) (295,097) 463,410 (258,624) (36,473) Net change in net position 2,631,028 2,631,028 2,472,234 (158,794) 1,081,211 1,391,023 228.7% Beginning net position 126,419,489 137,973,673 137,973,673 11,554,184 128,899,158 9,074,515 107.0% Ending net position 129,050,517$ 140,604,701$ 140,445,907$ 11,395,390$ 129,980,369$ 10,465,538 108.1% CITY OF LAKEVILLE, MINNESOTA Enterprise - Utility Fund Water Operation Statement of Revenues, Expenditures and Changes in Working Capital For the Nine-Month Period Ended September 30, 2025 Comparative Variance from 2024 Actual Positive (Negative) Page 70 of 88 Unaudited 2025 2025 Percent Adopted Amended 9/30/25 of 9/30/24 Budget Budget Actual Variance Budget Actual Operating revenue User charges for services 8,635,692$ 8,635,692$ 7,738,550$ (897,142)$ 89.6%6,925,403$ 813,147$ 111.7% Operating expenses Personnel services 1,242,775 1,242,775 670,868 571,907 54.0% 423,847 (247,021) 158.3% Commodities 140,372 140,372 73,850 66,522 52.6% 88,044 14,194 83.9% Other charges and services 420,723 420,723 760,270 (339,547) 180.7% 1,095,366 335,096 69.4% Disposal charges 5,622,468 5,622,468 4,216,851 1,405,617 75.0% 4,485,292 268,441 94.0% Major maintenance projects 980,000 980,000 21,425 958,575 2.2%- (21,425) 0.0% Total operating expenses 8,406,338 8,406,338 5,743,264 2,663,074 68.3%6,092,549 349,285 94.3% Operating income (loss)229,354 229,354 1,995,286 1,765,932 832,854 1,162,432 239.6% Non-operating revenue (expense) Intergovernmental State aid - - - - 0.0% - - 0.0% Investment income 47,867 47,867 347,994 300,127 727.0% 314,040 33,954 110.8% Debt service (71,750) (71,750) (70,295) 1,455 98.0% (67,319) (2,976) 104.4% Transfers in 33,766 33,766 - (33,766) 0.0% - - 0.0% Transfers (out)(43,064) (43,064) - 43,064 0.0%(60,192) 60,192 0.0% Total non-operating (net)(33,181) (33,181) 277,699 310,880 -836.9%186,529 91,170 148.9% Net change in net position 196,173 196,173 2,272,985 2,076,812 1,019,383 1,253,602 223.0% Beginning net position 74,250,464 79,706,030 79,706,030 5,455,566 74,695,434 5,010,596 106.7% Ending net position 74,446,637$ 79,902,203$ 81,979,015$ 7,532,378$ 75,714,817$ 6,264,198$ 108.3% Variance from 2024 Actual Positive (Negative) CITY OF LAKEVILLE, MINNESOTA Enterprise - Utility Fund Sanitary Sewer Operation Statement of Revenues, Expenditures and Changes in Working Capital For the Nine-Month Period Ended September 30, 2025 Comparative Page 71 of 88 Unaudited 2025 2025 Percent Adopted Amended 9/30/25 of 9/30/24 Budget Budget Actual Variance Budget Actual Operating revenue User charges for services 1,246,370$ 1,246,370$ 985,446$ (260,924)$ 79.1%959,591$ 25,855$ 102.7% Operating expenses Personnel services 25,084 25,084 - 25,084 0.0% - - 0.0% Commodities 103 103 - 103 0.0% - - 0.0% Other charges and services 1,129,818 1,129,818 970,353 159,465 85.9%723,178 (247,175) 134.2% Total operating expenses 1,155,005 1,155,005 970,353 184,652 84.0%723,178 (247,175) 134.2% Operating income (loss)91,365 91,365 15,093 (76,272) 236,413 (221,320) 6.4% Non-operating revenue (expense) Investment income 8,204 8,204 40,817 32,613 497.5% 36,908 3,909 110.6% Debt service (52,762) (52,762) (51,674) 1,088 97.9% (48,111) (3,563) 107.4% Transfers in (out) - General Fund - - - - 0.0%(3,453) 3,453 0.0% Total non-operating (net)(44,558) (44,558) (10,857) 33,701 24.4%(14,656) 3,799 74.1% Net change in net position 46,807 46,807 4,236 (42,571) 221,757 (217,521) 1.9% Beginning net position 1,175,893 1,205,652 1,205,652 29,759 940,928 264,724 128.1% Ending net position 1,222,700$ 1,252,459$ 1,209,888$ (12,812)$ 1,162,685$ 47,203$ 104.1% Variance from 2024 Actual Positive (Negative) CITY OF LAKEVILLE, MINNESOTA Enterprise - Utility Fund Street Light Operation Statement of Revenues, Expenditures and Changes in Working Capital For the Nine-Month Period Ended September 30, 2025 Comparative Page 72 of 88 Unaudited 2025 2025 Percent Adopted Amended 9/30/25 of 9/30/24 Budget Budget Actual Variance Budget Actual Revenues User charges for services 2,048,300$ 2,048,300$ 1,691,947$ (356,353)$ 82.6%1,518,198$ 173,749$ 111.4% Total revenues 2,048,300 2,048,300 1,691,947 (356,353) 82.6%1,518,198 173,749 -23.5% Expenditures - Public works Personnel services 871,649 871,649 541,641 330,008 62.1% 531,202 (10,439) 102.0% Commodities 55,978 55,978 22,823 33,155 40.8% 40,287 17,464 56.7% Other charges and services 1,986,896 1,986,896 781,293 1,205,603 39.3% 377,263 (404,030) 207.1% Major maintenance/capital outlay - - 1,224 (1,224) 0.0%- (1,224) 0.0% Total expenditures 2,914,523 2,914,523 1,346,981 1,567,542 46.2%948,752 (398,229) 142.0% Operating income (loss)(866,223) (866,223) 344,966 1,211,189 569,446 (224,480) 60.6% Non-operating revenue (expense) Intergovernmental 535,000 535,000 - (535,000) 0.0% - - 0.0% Investment income 10,221 10,221 108,886 98,665 1065.3% 94,877 14,009 114.8% Transfers in (out) Building Fund - - - - 0.0% (220,000) 220,000 0.0% Equipment Fund (40,500) (40,500) (40,500) - 100.0% (40,500) - 100.0% Technology Fund (2,384) (2,384) (2,384) - 100.0% (10,792) 8,408 22.1% Water Operating Fund 15,000 15,000 - (15,000) 0.0% - - 0.0% Sanitary sewer operations (33,766) (33,766) (33,766) - 100.0%- (33,766) 0.0% Total other financing (uses)483,571 483,571 32,236 (451,335) 6.7%(176,415) 208,651 -18.3% Net change in net position (382,652) (382,652) 377,202 759,854 393,031 (15,829) 96.0% Beginning net position 2,962,282 4,340,866 4,340,866 1,378,584 3,663,270 677,596 118.5% Ending net position 2,579,630$ 3,958,214$ 4,718,068$ 2,138,438$ 4,056,301$ 661,767$ 116.3% Variance from 2024 Actual Positive (Negative) CITY OF LAKEVILLE, MINNESOTA Enterprise - Utility Fund Environmental Resources Operation Statement of Revenues, Expenditures and Changes in Working Capital For the Nine-Month Period Ended September 30, 2025 Comparative Page 73 of 88 Lakeville, Minnesota—Positioned to Thrive Finance Department 2025 October 27, 2025 Page 74 of 88 Lakeville, Minnesota—Positioned to Thrive Award Received •Certificate of Excellence in Financial Reporting •2023 Annual Comprehensive Financial Report (ACFR) •Since1988 – 36 years Page 75 of 88 Lakeville, Minnesota—Positioned to Thrive Completed Projects •2024 Audits •City •Lakeville Fire Relief Association •Dakota 911 •Lakeville Arenas Page 76 of 88 Lakeville, Minnesota—Positioned to Thrive Completed Projects •Dakota Co Communications Center •Dakota 911 •2026 Budget •City staff time on D911 has been measured •Lakeville Arenas •2026 Budget •City staff time on Lakeville Arenas has been measured Page 77 of 88 Lakeville, Minnesota—Positioned to Thrive Completed Projects •2025A Bonds Sold in March – $22.25 million •Street Reconstruction Projects •Collector Rehabilitation •CIP Bonds (FiRST Center) $18.1M •Maintained Aaa Bond Rating – Moody’s Page 78 of 88 Lakeville, Minnesota—Positioned to Thrive Approaching Completion •2026 Budget •2026-2030 Capital Improvement Plan (done) •Delinquent Certifications •Utility, Code Enforcement, False Alarms, Tree Preservations Page 79 of 88 Lakeville, Minnesota—Positioned to Thrive Current Projects •Procedural documentation (ERP changed several processes) •Process improvements & catch-up •Arbitrage reporting Page 80 of 88 Lakeville, Minnesota—Positioned to Thrive Statistics – Utility Accounts @ 9/30/25 +32% Page 81 of 88 Lakeville, Minnesota—Positioned to Thrive Statistics- Utility Customers @ 9/30/25 Page 82 of 88 Lakeville, Minnesota—Positioned to Thrive Statistics- Utility Customers @ 9/30/25 •12,356 (50%) customers have signed up for e-bills as of Sept 2025 •2023 = 7,584 (32%) Page 83 of 88 Lakeville, Minnesota—Positioned to Thrive Statistics- Utility Customers @ 9/30/25 •8,862 (35.8%) customers have signed up for auto pay as of Sep 2025 •2023 = 7,651 (32%) Page 84 of 88 Lakeville, Minnesota—Positioned to Thrive Statistics – Utility Customers @ 9/30/25 Move In/Move Out counted as “1” Page 85 of 88 Lakeville, Minnesota—Positioned to Thrive Statistics – Accounts Payable @ 9/30/25 Page 86 of 88 Lakeville, Minnesota—Positioned to Thrive Statistics – Accounts Payable @ 9/30/25 Page 87 of 88 Lakeville, Minnesota—Positioned to Thrive Questions? 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