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2025-11-13 City Council Work Session Agenda Packet
1.Call to Order/Roll Call 2.Scheduled Items a.Administration Department 2026 Budget Briefing b.Public Works Operations and Parks 2026 Budget Briefing c.Public Works Sewer and Water 2026 Budget Briefing 3.Adjournment Corcoran City Council - Work Session Agenda November 13, 2025 5:30 PM *Includes Materials - Materials relating to these agenda items can be found in the Council Chambers Agenda Packet book located by the entrance. The complete Council Agenda Packet is available electronically on the City website at www.corcoranmn.gov. 1 STAFF REPORT Agenda Item: 2.a Council Meeting: November 13, 2025 Prepared By: Nalisha Williams, Assistant City Administrator Jay Tobin, City Administrator Topic: Administration Department 2026 Budget Briefing Action Required: Direction Council Action Attachments 1. 2026 Administration Department Budget Presentation Final Updated 11.12.25.pdf 2. Administration Department Budget Itemized 11.13.25.pdf 2 2026 Administration Department Budget Presentation BY: JAY TOBIN & NALISHA WILLIAMS 3 Administration Department Organizational Chart 4 Human Resources 2025 Accomplishments: •Recruited 4FT positions, 2 PT positions, and 2 seasonal positions •Implemented online recruitment process; improved candidate experience •Developed and implemented online onboarding program •Completed and implemented Compensation and Classification Study 2026 Opportunities: •MN PL Administration (new law in effect 1/1/2026) •Employee Handbook Updates •Labor Negotiations •Develop and Implement performance review/management city-wide 5 Communications 2025 Accomplishments: •Quarterly Newsletter –increased content and outsourced printing •Develop and Implemented “Corcoran Compass” –Monthly Meeting(s) Recap •Develop and Implemented Mayor’s Memo/Minute •Improved Internal Employee Communication •City Logo –Trademarked with the State •Social Media Policy •Photo Contest 2026 Opportunities: •Website improvements and implementation of new vendor •ADA Accessibility Requirements 6 Information Technology 2025 Accomplishments: •City Hall Fiber Internet Connection •iPad Distribution and Training for Council and Commissioners (iLegislate) •Improved Internal IT budget process 2026 Opportunities: •SCALE Computing Project •Laserfiche Weblink •Expand SharePoint sites and capabilities •Public Safety Motorola Server Upgrade 7 City Clerk 2024 Elections: •Approximately 91 days total of Absentee Voting for both the Primary and General Elections •93% voter turnout for November General Election: 2,759 voted early, 2,311 voted on Election Day 2025 Accomplishments: •Charter Commission Amendments (coming to 12/11/25 Council Meeting) •Recycling Services Contract •Completed Granicus Agenda Management 2026 Opportunities: •Municode •2026 Elections •Laserfiche 8 Finance 2025 Accomplishments: •Hired a part-time accounts payable clerk to streamline accounts payable functions •Completion of the 2024 audit with an unmodified opinion •Improved payroll function through new processing procedure 2026 Opportunities: •Finance Director •Questica budget software implementation •City Center (City Hall/Police Department) Bonding 9 Administration Budget Summary Business Unit Total 2025 Budget Total 2026 Budget 2025/2026 Difference % Change City Council $27,135 $28,320 $1,185 4.37% Communication $0 $152,607 $152,607 100.00% City Administrator $229,703 $262,150 $32,447 14.13% Administration $643,505 $607,926 ($35,579)-5.53% Election $2,000 $49,300 $47,300 2365.00% Finance $319,908 $563,627 $243,719 76.18% Assessing ---0% Legal $85,000 $155,000 $70,000 82.35% Central Services $591,253 $551,700 ($39,553)-6.69% Information Technology $337,093 $445,181 $108,088 32.06% Total $2,235,597 $2,815,811 $580,214 25.95% 10 Communication/City Administrator/ Administration/Legal Budget Item 2025 Budget 2026 Budget 2025/2026 Difference % Change Comments COMMUNICATION:$-$152,607 $152,607 +100% •Personnel Costs (Wages, Benefits, Training) (Reallocation from Administration) •New Website Implementation •Current Website Maintenance Fee (moved from IT Budget) •Newsletter Printing and Postage CITY ADMINISTRATOR: $229,703 $262,150 $32,447 +14.13% •Personnel Costs (Wages, Benefits, Training) ADMINISTRATION: $643,505 $607,926 ($35,579)-5.53% •League of Minnesota Cities Dues ($11,000) moved from Central Services to Administration •Communication Personnel Costs moved from Administration to Communication LEGAL:$85,000 $155,000 $70,000 +82.35%•Rate Adjustment •Legal Fees for Labor Negotiations 11 Elections Budget Item 2025 Budget 2026 Budget 2025/2026 Difference % Change Comments ELECTIONS $2,000 $49,300 $47,300 +2365.00% •Personnel Costs (Overtime, Hourly Rate Adjustment for Election Judges, PT Seasonal Election Specialist) •Legal Notices •Operating Supplies 2026 Requests: •Seasonal Part-Time Election Specialist 20 hours per week June – December $20/hour •Election Judge Rate Adjustments 2024 Rates: Regular Election Judge $10/hr., Head Judge $10.50 2026 Proposed Rates: Regular Election Judge $15/hr., Head Judge $20/hour 12 Central Services Budget Item 2025 Budget 2026 Budget 2025/2026 Difference % Change Comments Central Services $591,253 $557,700 ($39,553)-6.69% •$25,000 reallocated to Information Technology Budget •Professional Service Expenses (HRIS, Background Checks, etc.) •Office Equipment Leases •Elm Creek Watershed Membership Dues ($23,000) •Victim Advocacy Service •City Hall Maintenance 13 Information Technology Budget Item 2025 Budget 2026 Budget 2025/2026 Difference % Change Comments Information Technology $337,093 $445,181 $108,088 32.06% •Personnel costs •Replacement Hardware •$50,000 SCALE project •$20,000 Public Safety Motorola Server Upgrade •$25,000 moved from Central Services software to IT software 14 Finance Budget Item 2025 Budget 2026 Budget 2025/2026 Difference % Change Comments Finance $319,908 $563,627 $243,719 76.18% •Personnel costs (Accountant, 6 months of Finance Director salary, PT AP Clerk) •Abdo Professional Services •Tuition Reimbursement Request 2026 Requests: •Finance Director (Cost projected for 6mos – earlier implementation offset by decreased contracting needs) 15 CITY OF CORCORAN DEPARTMENT GL NUMBER DESCRIPTION 2025 BUDGET 2026 BUDGET Amount Changed % Changed CITY COUNCIL 100-41110-50101 FULL-TIME EMPLOYEES - REGULAR 19,630 19,260 (370) -1.88% 100-41110-50122 FICA 1,200 1,195 (5) -0.42% 100-41110-50126 MEDICARE 200 280 80 40.00% 100-41110-50127 MN PAID LEAVE 85 85 100.00% 100-41110-50207 TRAINING AND INSTRUCTIONAL SUPPLIES 5,000 5,500 500 10.00% 100-41110-50210 OPERATING SUPPLIES 1,000 2,000 1,000 100.00% 100-41110-50320 COMMUNICATIONS (GENERAL) 100-41110-50365 WORKER'S COMPENSATION INSURANCE 105 (105) -100.00% CITY COUNCIL Total 27,135 28,320 1,185 4.37% COMMUNICATION 100-41130-50101 FULL-TIME EMPLOYEES - REGULAR 90,744 90,744 100.00% 100-41130-50121 PERA 6,806 6,806 100.00% 100-41130-50122 FICA 5,627 5,627 100.00% 100-41130-50126 MEDICARE 1,316 1,316 100.00% 100-41130-50127 MN PAID LEAVE 400 400 100.00% 100-41130-50130 EMPLOYER PAID INSURANCE 17,341 17,341 100.00% 100-41130-50207 TRAINING AND INSTRUCTIONAL SUPPLIES 1,000 1,000 100.00% 100-41130-50300 PROFESSIONAL SERVICES 10,000 10,000 100.00% 100-41130-50307 PERSONNEL ADMINISTRATION 1,500 1,500 100.00% 100-41130-50322 POSTAGE 4,000 4,000 100.00% 100-41130-50325 OTHER COMMUNICATION 13,500 13,500 100.00% 100-41130-50350 GENERAL NOTICES AND PUB INFO - 100-41130-50365 WORKER'S COMPENSATION INSURANCE 373 373 100.00% COMMUNICATION Total 152,607 152,607 100.00% CITY 100-41320-50101 FULL-TIME EMPLOYEES - REGULAR 165,864 190,241 24,377 14.70% ADMINISTRATOR 100-41320-50121 PERA 12,440 14,269 1,829 14.70% 100-41320-50122 FICA 10,284 11,795 1,511 14.69% 100-41320-50126 MEDICARE 2,405 2,759 354 14.72% 100-41320-50127 MN PAID LEAVE 838 838 100.00% 100-41320-50130 EMPLOYER PAID INSURANCE 23,801 27,668 3,867 16.25% 100-41320-50207 TRAINING AND INSTRUCTIONAL SUPPLIES 5,000 5,000 - 0.00% 100-41320-50210 OPERATING SUPPLIES 200 200 100.00% 100-41320-50300 PROFESSIONAL SERVICES - 100-41320-50307 PERSONNEL ADMINISTRATION 1,500 1,500 - 0.00% 100-41320-50321 TELEPHONE 600 600 - 0.00% 100-41320-50331 TRAVEL EXPENSE 5,000 5,000 - 0.00% 100-41320-50365 WORKER'S COMPENSATION INSURANCE 1,309 780 (529) -40.41% 100-41320-50433 DUES AND MEMBERSHIPS 1,500 1,500 - 0.00% CITY ADMINISTRATOR Total 229,703 262,150 32,447 14.13% ADMINISTRATION 100-41400-50101 FULL-TIME EMPLOYEES - REGULAR 453,779 411,359 (42,420) -9.35% 100-41400-50102 FULL-TIME EMPLOYEES - OVERTIME 5,000 2,500 (2,500) -50.00% 100-41400-50111 PART-TIME EMPLOYEES - REGULAR - 100-41400-50112 PART-TIME EMPLOYEES - OVERTIME - 100-41400-50121 PERA 34,034 31,040 (2,994) -8.80% 100-41400-50122 FICA 28,135 25,660 (2,475) -8.80% 100-41400-50126 MEDICARE 6,580 6,002 (578) -8.78% 100-41400-50127 MN PAID LEAVE 1,810 1,810 100-41400-50130 EMPLOYER PAID INSURANCE 91,287 88,768 (2,519) -2.76% 100-41400-50140 UNEMPLOYMENT COMPENSATION - 100-41400-50207 TRAINING AND INSTRUCTIONAL SUPPLIES 12,000 11,000 (1,000) -8.33% Page 1 of 3 16 CITY OF CORCORAN DEPARTMENT GL NUMBER DESCRIPTION 2025 BUDGET 2026 BUDGET Amount Changed % Changed 100-41400-50210 OPERATING SUPPLIES 2,500 2,500 100-41400-50300 PROFESSIONAL SERVICES - 100-41400-50307 PERSONNEL ADMINISTRATION 7,500 6,000 (1,500) -20.00% 100-41400-50321 TELEPHONE 600 600 - 0.00% 100-41400-50331 TRAVEL EXPENSE 1,000 5,000 4,000 400.00% 100-41400-50365 WORKER'S COMPENSATION INSURANCE 2,090 1,687 (403) -19.28% 100-41400-50433 DUES AND MEMBERSHIPS 1,500 14,000 12,500 833.33% ADMINISTRATION Total 643,505 607,926 (35,579) -5.53% ELECTIONS 100-41410-50101 FULL-TIME EMPLOYEES - REGULAR - 100-41410-50102 FULL-TIME EMPLOYEES - OVERTIME 1,000 1,000 100.00% 100-41410-50114 TEMPORARY/SEASONAL EMPLOYEES 40,000 40,000 100.00% 100-41410-50122 FICA - 100-41410-50207 TRAINING AND INSTRUCTIONAL SUPPLIES - 100-41410-50210 OPERATING SUPPLIES 2,000 6,000 4,000 200.00% 100-41410-50331 TRAVEL EXPENSE 300 300 100.00% 100-41410-50430 MISCELLANEOUS EXPENSE 2,000 2,000 100.00% ELECTIONS Total 2,000 49,300 47,300 2365.00% FINANCE 100-41500-50101 FULL-TIME EMPLOYEES - REGULAR 74,267 161,138 86,871 116.97% 100-41500-50102 FULL-TIME EMPLOYEES - OVERTIME 1,500 1,500 - 0.00% 100-41500-50111 PART-TIME EMPLOYEES - REGULAR 31,439 31,439 100.00% 100-41500-50121 PERA 5,570 14,557 8,987 161.35% 100-41500-50122 FICA 4,605 12,033 7,428 161.30% 100-41500-50126 MEDICARE 1,077 2,815 1,738 161.37% 100-41500-50127 MN PAID LEAVE 710 710 100.00% 100-41500-50130 EMPLOYER PAID INSURANCE 19,559 29,245 9,686 49.52% 100-41500-50140 UNEMPLOYMENT COMPENSATION - 100-41500-50207 TRAINING AND INSTRUCTIONAL SUPPLIES 2,000 5,000 3,000 150.00% 100-41500-50300 PROFESSIONAL SERVICES 208,000 300,000 92,000 44.23% 100-41500-50301 PROFESSIONAL SERVICES - ACCOUNTING - 100-41500-50307 PERSONNEL ADMINISTRATION 1,500 3,000 1,500 100.00% 100-41500-50331 TRAVEL EXPENSE 300 500 200 66.67% 100-41500-50365 WORKER'S COMPENSATION INSURANCE 780 790 10 1.28% 100-41500-50433 DUES AND MEMBERSHIPS 750 700 (50) -6.67% 100-41500-50437 PROPERTY TAXES 200 200 100.00% FINANCE Total 319,908 563,627 243,719 76.18% ASSESSING 100-41550-50210 OPERATING SUPPLIES - 100-41550-50300 PROFESSIONAL SERVICES - ASSESSING Total - LEGAL 100-41600-50300 PROFESSIONAL SERVICES 85,000 155,000 70,000 82.35% LEGAL Total 85,000 155,000 70,000 82.35% CENTRAL 100-41900-50200 OFFICE SUPPLIES 7,500 8,000 500 6.67% SERVICES 100-41900-50201 POSTAGE/SHIPPING - 100-41900-50210 OPERATING SUPPLIES 25,000 25,000 - 0.00% 100-41900-50212 MOTOR FUELS 1,000 1,000 - 0.00% 100-41900-50221 REPAIR AND MAINTENANCE SUPPLIES - EQUIP.1,500 2,000 500 33.33% 100-41900-50300 PROFESSIONAL SERVICES 15,000 30,000 15,000 100.00% 100-41900-50308 SOFTWARE 25,000 (25,000) -100.00% 100-41900-50321 TELEPHONE 6,000 4,000 (2,000) -33.33% 100-41900-50322 POSTAGE 6,000 6,000 - 0.00% Page 2 of 3 17 CITY OF CORCORAN DEPARTMENT GL NUMBER DESCRIPTION 2025 BUDGET 2026 BUDGET Amount Changed % Changed 100-41900-50350 GENERAL NOTICES AND PUB INFO 17,200 15,000 (2,200) -12.79% 100-41900-50360 INSURANCE 155,000 150,000 (5,000) -3.23% 100-41900-50380 UTILITY SERVICES 15,000 11,000 (4,000) -26.67% 100-41900-50381 ELECTRIC UTILITIES 30,000 30,000 - 0.00% 100-41900-50382 WATER & SEWER 100 2,000 1,900 1900.00% 100-41900-50400 REPAIR AND MAINTENANCE - CONTRACT 15,000 5,000 (10,000) -66.67% 100-41900-50401 REPAIR AND MAINTENANCE - BUILDING 25,000 20,000 (5,000) -20.00% 100-41900-50403 REPAIR AND MAINTENANCE - VEHICLE 5,000 3,500 (1,500) -30.00% 100-41900-50404 REPAIR AND MAINTENANCE - MACHINERY/EQU 7,500 3,000 (4,500) -60.00% 100-41900-50413 OFFICE EQUIPMENT RENTAL 750 10,000 9,250 1233.33% 100-41900-50430 MISCELLANEOUS EXPENSE - 100-41900-50431 BANKING CHARGES 400 200 (200) -50.00% 100-41900-50432 CREDIT CARD FEES 5,000 3,000 (2,000) -40.00% 100-41900-50433 DUES AND MEMBERSHIPS 30,000 23,000 (7,000) -23.33% 100-41900-50520 BUILDINGS AND STRUCTURES - 100-41900-50700 TRANSFERS 198,303 200,000 1,697 0.86% CENTRAL SERVICES Total 591,253 551,700 (39,553) -6.69% INFORMATION 100-41920-50101 FULL-TIME EMPLOYEES - REGULAR 89,816 117,533 27,717 30.86% TECHNOLOGY 100-41920-50102 FULL-TIME EMPLOYEES - OVERTIME - 100-41920-50121 PERA 6,737 8,815 2,078 30.84% 100-41920-50122 FICA 5,569 7,287 1,718 30.85% 100-41920-50126 MEDICARE 1,303 1,705 402 30.85% 100-41920-50127 MN PAID LEAVE 518 518 100.00% 100-41920-50130 EMPLOYER PAID INSURANCE 11,758 17,341 5,583 47.48% 100-41920-50210 OPERATING SUPPLIES 30,000 30,000 100.00% 100-41920-50221 REPAIR AND MAINTENANCE SUPPLIES - EQUIP.45,000 80,000 35,000 77.78% 100-41920-50300 PROFESSIONAL SERVICES 150,000 130,000 (20,000) -13.33% 100-41920-50307 PERSONNEL ADMINISTRATION 1,500 1,500 - 0.00% 100-41920-50308 SOFTWARE 25,000 50,000 25,000 100.00% 100-41920-50365 WORKER'S COMPENSATION INSURANCE 410 482 72 17.56% 100-41920-50400 REPAIR AND MAINTENANCE - CONTRACT INFORMATION TECHNOLOGY Total 337,093 445,181 108,088 32.06% TOTAL:2,235,597 2,815,811 580,214 25.95% Page 3 of 3 18 STAFF REPORT Agenda Item: 2.b Council Meeting: November 13, 2025 Prepared By: Kevin Mattson, Public Works Director, Topic: Public Works Operations and Parks 2026 Budget Briefing Action Required: Direction Council Action Direction Attachments 1. Budget Presentation 2026- FINAL.pdf 2. Public Works Operations and Parks Full Budget.pdf 19 Public Works Department Budget Presentation 20 21 Public Works Department Annually, the Public Works Operations team maintains and improves: •35 miles of gravel roads •Dust control •Grading •Snow removal •90 miles of ditches •Bi-annual ditch mowing •Culvert Replacement •Tree Trimming •45 miles of paved roads •Crack sealing and patching •Pavement rejuvenator application •Snow removal Collaborated with Hennepin County on the Cost Share Agreement Project for the cropland north of City Hall 22 Public Works Department Organizational Chart The Public Works Department currently has one unfilled positions: Maintenance Worker The Public Works Department is proposing the following changes : •Elevation of Maintenance Worker to Fleet Lead •Reassignment of Crew Leader to Parks and Facilities Lead 23 Public Works and Parks Budget Summary Business Unit Total 2025 Budget Total 2026 Budget 2025/2026 Difference % Change Highways, Streets & Roadways $1,668,701 $1,473,828 -$194,873 -11.68% Paved Streets $375,000 $525,000 $150,000 40.0% Unpaved Streets*$515,000 $540,000 *(-$40,000 dust control bids) $25,000 4.9% Ice & Snow Removal $72,100 ----$72,100 -100.0% Engineering $364,884 $380,504 $15,620 4.3% Parks $181,260 $664,505 $483,245 266.6% Total Public Works Budget $3,176,945 $3,583,837 $406,892 12.8% 24 Highways, Streets, and Roadways Budget Item 2025 Budget 2026 Budget 2025/2026 Difference % Change Comments 100-43100-50101 (Full Time Employees- Regular)$799,034 $613,470 -$185,564 -23.2%Reallocation of personnel costs to Parks (45200) 100-43100-50102 (Full Time Employees- Overtime)$53,000 $25,000 -$28,000 -52.8%Redistribution between 43100 and Sewer/Water 100-43100-50121 (PERA)$59,928 $46,011 -$13,917 -23.2%Reallocation of personnel costs to Parks (45200) 100-43100-50122 (FICA)$51,904 $40,493 -$11,411 -21.9% Reallocation of personnel costs to Parks (45200) 25 Highways, Streets, and Roadways Budget Item 2025 Budget 2026 Budget 2025/2026 Difference % Change Comments 100-43100-50130 (Employer Paid Insurance)$162,502 $116,395 -$46,107 -28.4%Reallocation of personnel costs to Parks (45200) 100-43100-50210 (Operating Supplies)$45,000 $55,000 $10,000 22.2%Demand and supply cost increases 100-43100-50217 (Ice & Snow Removal Supplies)---$75,000 $75,000 100.0% Moved from 100-43125-50210 Closing out Dept 43125 100-43100-50223 (Building Repair Supplies)$20,000 $25,000 $5,000 25.0% Demand and supply cost increases 26 Highways, Streets, and Roadways Budget Item 2025 Budget 2026 Budget 2025/2026 Difference % Change Comments 100-43100-50226 (Sign Repair Materials)$10,000 $15,000 $5,000 50.0%Demand and supply cost increases 100-43100-50365 (Worker’s Compensation Insurance) $40,570 $27,481 -$13,089 -32.3% Reallocation of personnel costs to Parks (45200) 27 Paved Streets Budget Item 2025 Budget 2026 Budget 2025/2026 Difference % Change Comments 100-43121-50400 (Repair & Maintenance- Contract)$350,000 $500,000 $150,000 42.9% $135,000 increase for pavement overlay material costs and increased demand; $15,000 increase in pavement rejuvenator material costs and increased demand 28 Unpaved Streets Budget Item 2025 Budget 2026 Budget 2025/2026 Difference % Change Comments 100-43122-50400 (Repair & Maintenance- Contract) 2.9% increase overall $150,000 Gravel Hauling $130,000 Gravel Hauling -$20,000 -13.3% 2025 costs plus 10% Demand and supply cost increases $200,000 Dust Control $270,000 initial $230,000 amended Dust Control $30,000 15% Amended budget item based on accepted dust control bid 29 Ice & Snow Removal Budget Item 2025 Budget 2026 Budget 2025/2026 Difference % Change Comments 100-43125-50210 (Operating Supplies)$70,000 ----$70,000 -100.0% Moved to 100-43100-50217 (Ice & Snow Removal Supplies) 30 Engineering Budget Item 2025 Budget 2026 Budget 2025/2026 Difference % Change Comments 100-43170-50207 (Training & Instructional Supplies)---$5,000 $5,000 100.0% Professional development funds for Public Works Director and Development Engineering Superintendent 31 Parks Budget Item 2025 Budget 2026 Budget 2025/2026 Difference % Change Comments 100-45200-50101 (Full Time Employees-Regular)---$277,780 $277,780 100.0%Reallocation of personnel costs to Parks (45200) 100-45200-50121 (PERA)$3,920 $24,902 $20,982 535.3%Reallocation of personnel costs to Parks (45200) 100-45200-50122 (FICA)$3,241 $20,586 $17,345 535.2%Reallocation of personnel costs to Parks (45200) 100-45200-50130 (Employer Paid Insurance)---$64,959 $64,959 100.0%Reallocation of personnel costs to Parks (45200) 32 Parks Budget Item 2025 Budget 2026 Budget 2025/2026 Difference % Change Comments 100-45200-50210 (Operating Supplies)$50,000 $55,000 $5,000 10.0%Demand and supply cost increases 100-45200-50221 (Repair & Maintenance Supplies)$50,000 $55,000 $5,000 10.0%Demand and supply cost increases 100-45200-50365 (Worker’s Compensation Insurance) $5,470 $18,262 $12,792 233.9%Reallocation of personnel costs to Parks 100-45200-50382 (Water & Sewer)$2,500 $10,000 $7,500 300%Utility bills for parks and recreation uses 33 Parks Budget Item 2025 Budget 2026 Budget 2025/2026 Difference % Change Comments 100-45200-50405 (Snowmobile Trail Maintenance)---$45,000 $45,000 100.0% Northwest Trails Grant Funds Reallocated from Dues & Mems 100-45200-50417 (Uniforms)---$9,000 $9,000 100%Reallocation of personnel costs to Parks (45200) 34 Revenue Budget Item 2025 Budget 2026 Budget 2025/2026 Difference % Change Comments 100-00000-33418 (Municipal State Aid for Streets- Maintenance) $200,000 $250,000 $50,000 25% Increased mileage and traffic counts formulaic by State 35 Stormwater Area Fees Background Update •Current Approach •Meet current regulations •Require development to mitigate off-site impacts •Examples - Rush Creek Reserve, Ravinia, Bass Lake Crossing, Garages Too, Hope Meadows •In 2022 city explored stormwater area fees •Fee based on a set parameter (acres developed, impervious surface, number of lots etc.) •Resources used to addressed impacts from growth •Projects should still be connected via nexus •Utility Fee •Has not been fully explored by the City. No interest from Council in 2022. •Typically, city-wide fee •Amounts may vary between residential vs commercial vs industrial •Provides more flexibility for types of uses of funds 36 Pavement Management Plan Background Update •Current Approach •“Free Overlay” pavement maintenance policy nearing completion (3-5 years) •Future Pavement Management Planning •Develop city-wide program •Determine costs and prioritize needs •Leverage software assessment programs •Identify Revenue Sources •Current Policy •General Levy •Assessments •Consider alternate sources with the anticipated significant gap between costs and needs •Example: Franchise Fees 37 Our Greatest Asset- Our Public Works Operations Team! 38 Material Changes of at least $5,000 and 10% are highlighted in blue 2025 Adopted Budget 2026 Department Requested Budget Amount Change Percentage Change Dept 43100 - HIGHWAYS, STREETS & ROADWAYS 100-43100-50101 FULL-TIME EMPLOYEES - REGULAR $799,034.00 $613,470.00 -$185,564.00 -23.22% 100-43100-50102 FULL-TIME EMPLOYEES - OVERTIME $53,000.00 $25,000.00 -$28,000.00 -52.83% 100-43100-50111 PART-TIME EMPLOYEES - REGULAR $38,124.00 $39,643.00 $1,519.00 3.98% 100-43100-50112 PART-TIME EMPLOYEES - OVERTIME $0.00 0.00% 100-43100-50121 PERA $59,928.00 $46,011.00 -$13,917.00 -23.22% 100-43100-50122 FICA $51,904.00 $40,493.00 -$11,411.00 -21.98% 100-43100-50126 MEDICARE $12,139.00 $9,471.00 -$2,668.00 -21.98% 100-43100-50127 MN PAID LEAVE $2,764.00 $2,764.00 100.00% 100-43100-50130 EMPLOYER PAID INSURANCE $162,502.00 $116,395.00 -$46,107.00 -28.37% 100-43100-50140 UNEMPLOYMENT COMPENSATION $0.00 0.00% 100-43100-50200 OFFICE SUPPLIES $1,000.00 $2,000.00 $1,000.00 100.00% 100-43100-50207 TRAINING AND INSTRUCTIONAL SUPPLIES $7,500.00 $7,500.00 $0.00 0.00% 100-43100-50210 OPERATING SUPPLIES $45,000.00 $55,000.00 $10,000.00 22.22% 100-43100-50211 STREETSCAPE BEAUTIFICATION $20,000.00 $20,000.00 $0.00 0.00% 100-43100-50212 MOTOR FUELS $65,000.00 $65,000.00 $0.00 0.00% 100-43100-50217 ICE & SNOW REMOVAL SUPPLIES $75,000.00 $75,000.00 100.00% 100-43100-50220 REPAIR AND MAINTENANCE SUPPLIES $78,500.00 $80,000.00 $1,500.00 1.91% 100-43100-50223 BUILDING REPAIR SUPPLIES $20,000.00 $25,000.00 $5,000.00 25.00% 100-43100-50225 LANDSCAPE/DITCH MATERIALS $45,000.00 $45,000.00 $0.00 0.00% 100-43100-50226 SIGN REPAIR MATERIALS $10,000.00 $15,000.00 $5,000.00 50.00% 100-43100-50300 PROFESSIONAL SERVICES $3,500.00 $3,500.00 100.00% 100-43100-50307 PERSONNEL ADMINISTRATION $12,000.00 $7,500.00 -$4,500.00 -37.50% 100-43100-50314 PROFESSIONAL SERVICES - ICE & SNOW REMOVAL $2,100.00 $2,100.00 100.00% 100-43100-50321 TELEPHONE $12,500.00 $15,000.00 $2,500.00 20.00% 100-43100-50323 RADIO UNITS $5,000.00 $6,000.00 $1,000.00 20.00% 100-43100-50350 GENERAL NOTICES AND PUB INFO $500.00 $500.00 100.00% 100-43100-50365 WORKER'S COMPENSATION INSURANCE $40,570.00 $27,481.00 -$13,089.00 -32.26% 100-43100-50380 UTILITY SERVICES $22,000.00 $22,000.00 $0.00 0.00% 100-43100-50381 ELECTRIC UTILITIES $60,000.00 $60,000.00 $0.00 0.00% 100-43100-50400 REPAIR AND MAINTENANCE - CONTRACT $10,000.00 $10,000.00 $0.00 0.00% Public Works Operations and Parks Expenditures 39 100-43100-50401 REPAIR AND MAINTENANCE - BUILDING $10,000.00 $10,000.00 $0.00 0.00% 100-43100-50403 REPAIR AND MAINTENANCE - VEHICLE $12,500.00 $10,000.00 -$2,500.00 -20.00% 100-43100-50417 UNIFORMS $15,000.00 $16,000.00 $1,000.00 6.67% 100-43100-50430 MISCELLANEOUS EXPENSE $500.00 $500.00 $0.00 0.00% 100-43100-50433 DUES AND MEMBERSHIPS $500.00 $500.00 100.00% Total Expenditures - 43100 - HIGHWAYS, STREETS & ROADWAYS $1,668,701.00 $1,473,828.00 -$194,873.00 -11.68% Dept 43121 - PAVED STREETS 100-43121-50224 STREET MAINTENANCE MATERIALS $25,000.00 $25,000.00 $0.00 0.00% 100-43121-50400 REPAIR AND MAINTENANCE - CONTRACT $350,000.00 $500,000.00 $150,000.00 42.86% Total Expenditures - 43121 - PAVED STREETS $375,000.00 $525,000.00 $150,000.00 40.00% Dept 43122 - UNPAVED STREETS 100-43122-50224 STREET MAINTENANCE MATERIALS $165,000.00 $180,000.00 $15,000.00 9.09% 100-43122-50400 REPAIR AND MAINTENANCE - CONTRACT $350,000.00 $360,000.00 $10,000.00 2.86% Total Expenditures - 43122 - UNPAVED STREETS $515,000.00 $540,000.00 $25,000.00 4.85% Dept 43125 - ICE & SNOW REMOVAL 100-43125-50210 OPERATING SUPPLIES $70,000.00 -$70,000.00 -100.00% 100-43125-50300 PROFESSIONAL SERVICES $2,100.00 -$2,100.00 -100.00% Total Expenditures - 43125 - ICE & SNOW REMOVAL $72,100.00 -$72,100.00 -100.00% Dept 43170 - ENGINEERING 100-43170-50101 FULL-TIME EMPLOYEES - REGULAR $192,385.00 $201,987.00 $9,602.00 4.99% 100-43170-50102 FULL-TIME EMPLOYEES - OVERTIME $0.00 0.00% 100-43170-50111 PART-TIME EMPLOYEES - REGULAR $0.00 0.00% 100-43170-50121 PERA $14,429.00 $15,149.00 $720.00 4.99% 100-43170-50122 FICA $11,928.00 $12,524.00 $596.00 5.00% 100-43170-50126 MEDICARE $2,790.00 $2,929.00 $139.00 4.98% 100-43170-50127 MN PAID LEAVE $889.00 $889.00 100.00% 100-43170-50130 EMPLOYER PAID INSURANCE $38,142.00 $34,097.00 -$4,045.00 -10.61% 100-43170-50207 TRAINING AND INSTRUCTIONAL SUPPLIES $5,000.00 $5,000.00 100.00% 100-43170-50300 PROFESSIONAL SERVICES $80,000.00 $80,000.00 $0.00 0.00% 100-43170-50307 PERSONNEL ADMINISTRATION $4,500.00 $4,500.00 $0.00 0.00% 100-43170-50308 SOFTWARE $1,500.00 $1,500.00 100.00% 100-43170-50309 WATERSHED LGU $12,500.00 $12,500.00 $0.00 0.00% 100-43170-50365 WORKER'S COMPENSATION INSURANCE $8,210.00 $6,929.00 -$1,281.00 -15.60% 100-43170-50433 DUES AND MEMBERSHIPS $2,500.00 $2,500.00 100.00% Total Expenditures - 43170 - ENGINEERING $364,884.00 $380,504.00 $15,620.00 4.28% 40 Dept 45200 - PARKS 100-45200-50101 FULL-TIME EMPLOYEES - REGULAR $277,780.00 $277,780.00 100.00% 100-45200-50102 FULL-TIME EMPLOYEES - OVERTIME $0.00 100.00% 100-45200-50111 PART-TIME EMPLOYEES - REGULAR $52,271.00 $54,240.00 $1,969.00 3.77% 100-45200-50121 PERA $3,920.00 $24,902.00 $20,982.00 535.26% 100-45200-50122 FICA $3,241.00 $20,586.00 $17,345.00 535.17% 100-45200-50126 MEDICARE $758.00 $4,815.00 $4,057.00 535.22% 100-45200-50127 MN PAID LEAVE $1,461.00 $1,461.00 100.00% 100-45200-50130 EMPLOYER PAID INSURANCE $64,959.00 $64,959.00 100.00% 100-45200-50140 UNEMPLOYMENT COMPENSATION $0.00 0.00% 100-45200-50207 TRAINING AND INSTRUCTIONAL SUPPLIES $100.00 $1,000.00 $900.00 900.00% 100-45200-50210 OPERATING SUPPLIES $50,000.00 $55,000.00 $5,000.00 10.00% 100-45200-50221 REPAIR AND MAINTENANCE SUPPLIES - EQUIP.$50,000.00 $55,000.00 $5,000.00 10.00% 100-45200-50300 PROFESSIONAL SERVICES $1,000.00 $1,000.00 $0.00 0.00% 100-45200-50307 PERSONNEL ADMINISTRATION $4,500.00 $4,500.00 100.00% 100-45200-50321 TELEPHONE $2,000.00 $2,000.00 $0.00 0.00% 100-45200-50365 WORKER'S COMPENSATION INSURANCE $5,470.00 $18,262.00 $12,792.00 233.86% 100-45200-50380 UTILITY SERVICES $7,500.00 $10,000.00 $2,500.00 33.33% 100-45200-50381 ELECTRIC UTILITIES $2,500.00 $5,000.00 $2,500.00 100.00% 100-45200-50382 WATER & SEWER $2,500.00 $10,000.00 $7,500.00 300.00% 100-45200-50405 SNOWMOBILE TRAIL MAINTENANCE $45,000.00 $45,000.00 100.00% 100-45200-50417 UNIFORMS $9,000.00 $9,000.00 100.00% 100-45200-50433 DUES AND MEMBERSHIPS $0.00 0.00% 100-45200-50530 IMPROVEMENTS OTHER THAN BLDGS $0.00 0.00% 100-45200-50580 OTHER EQUIPMENT $0.00 0.00% Total Expenditures - 45200 - PARKS $181,260.00 $664,505.00 $483,245.00 266.60% Total Expenditures $3,176,945.00 $3,583,837.00 406,892.00 12.81% Public Works Operations and Parks Expenditures Dept 45200 - PARKS 100-00000-33418 MUN STATE AID STREETS- MAINT 200,000 250,000 50,000 25.00% Total Revenue $200,000.00 $250,000.00 $50,000.00 25.00% 41 STAFF REPORT Agenda Item: 2.c Council Meeting: November 13, 2025 Prepared By: Kevin Mattson, Public Works Director, Topic: Public Works Sewer and Water 2026 Budget Briefing Action Required: Direction Council Action Direction. Attachments 1. Sewer and Water Full Budget-FINAL.pdf 2. Budget Presentation Utilities 2026-FINAL.pdf 42 Material changes of $5,000 and 10% are highlighted in blue Water Expenditures 2025 Adopted Budget 2026 Department Requested Budget Amount Change Percentage Change Dept 49400 - WATER 601-49400-50101 FULL-TIME EMPLOYEES - REGULAR $153,770.00 $218,498.00 $64,728.00 42.1% 601-49400-50102 FULL-TIME EMPLOYEES - OVERTIME $12,500.00 $12,500.00 100.0% 601-49400-50111 PART-TIME EMPLOYEES - REGULAR $3,998.00 $3,998.00 100.0% 601-49400-50121 PERA $11,533.00 $16,688.00 $5,155.00 44.7% 601-49400-50122 FICA $9,534.00 $13,795.00 $4,261.00 44.7% 601-49400-50126 MEDICARE $2,230.00 $3,227.00 $997.00 44.7% 601-49400-50127 MN PAID LEAVE $924.00 $924.00 100.0% 601-49400-50130 EMPLOYER PAID INSURANCE $29,379.00 $39,532.00 $10,153.00 34.6% 601-49400-50200 OFFICE SUPPLIES $5,000.00 $3,000.00 -$2,000.00 -40.0% 601-49400-50207 TRAINING AND INSTRUCTIONAL SUPPLIES $4,500.00 $5,000.00 $500.00 11.1% 601-49400-50210 OPERATING SUPPLIES $10,000.00 $60,000.00 $50,000.00 500.0% 601-49400-50212 MOTOR FUELS $5,000.00 $5,000.00 100.0% 601-49400-50216 CHEMICALS $25,000.00 $25,000.00 100.0% 601-49400-50220 REPAIR AND MAINTENANCE SUPPLIES $25,000.00 $40,000.00 $15,000.00 60.0% 601-49400-50227 UTILITY SYSTEM MAINTENANCE SUPPLIES $100,000.00 $120,000.00 $20,000.00 20.0% 601-49400-50300 PROFESSIONAL SERVICES $60,000.00 $35,000.00 -$25,000.00 -41.7% 601-49400-50303 ENGINEERING FEES $10,000.00 $10,000.00 $0.00 0.0% 601-49400-50304 LEGAL FEES $5,000.00 $5,000.00 $0.00 0.0% 601-49400-50306 INSPECTIONS $50,000.00 $10,000.00 -$40,000.00 -80.0% 601-49400-50307 PERSONNEL ADMINISTRATION $1,500.00 $2,250.00 $750.00 50.0% 601-49400-50308 SOFTWARE $7,035.00 $7,035.00 0.0% 601-49400-50310 OTHER PROFESSIONAL SERVICES $52,000.00 $39,404.00 -$12,596.00 -24.2% 601-49400-50311 WATER PURCHASED $330,000.00 $455,000.00 $125,000.00 37.9% 601-49400-50313 UTILITY LOCATES $8,500.00 $8,500.00 100.0% 601-49400-50321 TELEPHONE $2,500.00 $2,500.00 100.0% 601-49400-50322 POSTAGE $13,800.00 $3,000.00 -$10,800.00 -78.3% 601-49400-50350 GENERAL NOTICES AND PUB INFO $500.00 $500.00 $0.00 0.0% 601-49400-50360 INSURANCE $1,500.00 $1,500.00 $0.00 0.0% 43 601-49400-50365 WORKER'S COMPENSATION INSURANCE $6,243.00 $5,397.00 -$846.00 -13.6% 601-49400-50380 UTILITY SERVICES $1,500.00 $15,000.00 $13,500.00 900.0% 601-49400-50381 ELECTRIC UTILITIES $500.00 $60,000.00 $59,500.00 11900.0% 601-49400-50400 REPAIR AND MAINTENANCE - CONTRACT $1,500.00 $1,500.00 $0.00 0.0% 601-49400-50401 REPAIR AND MAINTENANCE - BUILDING $50,000.00 $50,000.00 100.0% 601-49400-50403 REPAIR AND MAINTENANCE - VEHICLE $7,500.00 $7,500.00 100.0% 601-49400-50413 OFFICE EQUIPMENT RENTAL $500.00 $500.00 $0.00 0.0% 601-49400-50417 UNIFORMS $4,000.00 $4,000.00 100.0% 601-49400-50430 MISCELLANEOUS EXPENSE $0.00 0.0% 601-49400-50432 CREDIT CARD FEES $10,000.00 $12,500.00 $2,500.00 25.0% 601-49400-50433 DUES AND MEMBERSHIPS $1,500.00 $1,500.00 $0.00 0.0% 601-49400-50600 DEBT SERVICE PRINICPAL $551,600.00 $578,800.00 $27,200.00 4.9% 601-49400-50610 DEBT SERVICE INTEREST $926,185.00 $898,081.00 -$28,104.00 -3.0% 601-49400-50611 BOND ISSUANCE COSTS $0.00 0.0% 601-49400-50720 INTERFUND TRANSFERS $376,243.00 $233,740.00 -$142,503.00 -37.9% Total Expenditures - 49400 - WATER $2,751,017.00 $3,015,369.00 $264,352.00 9.61% WATER REVENUE Dept 601-00000- WATER 601-00000-33100 FEDERAL GRANT 0.00% 601-00000-36100 SPECIAL ASSESSMENTS 0.00% 601-00000-36200 MISCELLANEOUS REVENUES 0.00% 601-00000-36210 INTEREST EARNINGS $15,000.00 $25,000.00 $10,000.00 66.67% 601-00000-36232 DEVELOPER CONTRIBUTION 0.00% 601-00000-36400 REFUNDS/REIMBURSEMENTS 0.00% 601-00000-37101 WATER METERS $115,500.00 $132,000.00 $16,500.00 14.29% 601-00000-37102 BULK WATER SALES $500.00 $500.00 $0.00 0.00% 601-00000-37110 WATER RESIDENTIAL USAGE $828,000.00 $854,000.00 $26,000.00 3.14% 601-00000-37120 WATER MULTI-RESIDENTAL USAGE $26,600.00 $26,600.00 $0.00 0.00% 601-00000-37130 WATER COMMERCIAL/INDUSTRIAL $33,800.00 $36,000.00 $2,200.00 6.51% 601-00000-37150 WATER RECONNECT/DISCONNECT FEE 0.00% 44 601-00000-37155 MAPLE GROVE CONNECTION 0.00% 601-00000-37160 WATER PENALTY $100.00 $4,000.00 $3,900.00 3900.00% 601-00000-37170 WATER CONNECTION CHARGE $411,840.00 $282,800.00 -$129,040.00 -31.33% 601-00000-37180 WATER TRUNK CHARGES (TLAC) $3,208,400.00 $1,929,600.00 -$1,278,800.00 -39.86% 601-00000-39201 TRANSFER FROM GENERAL FUND 0.00% 601-00000-39700 CAPITAL CONTRIBUTIONS GOV ACT 0.00% Total Revenue- 601-00000- WATER $4,639,740.00 $3,290,500.00 -$1,349,240.00 -29.08% SEWER EXPENDITURES Dept 49450- Sewer 602-49450-50101 FULL TIME EMPLOYEES- REGULAR $167,316.00 $218,498.00 $51,182.00 30.6% 602-49450-50102 FULL TIME EMPLOYEES- OVERTIME $12,500.00 $12,500.00 100.0% 602-49450-50111 PART-TIME EMPLOYEES - REGULAR $3,998.00 $3,998.00 100.0% 602-49450-50121 PERA $12,549.00 $16,688.00 $4,139.00 33.0% 602-49450-50122 FICA $10,374.00 $13,795.00 $3,421.00 33.0% 602-49450-50126 MEDICARE $2,427.00 $3,227.00 $800.00 33.0% 602-49450-50127 MN PAID LEAVE $924.00 $924.00 100.0% 602-49450-50130 EMPLOYER PAID INSURANCE $34,082.00 $39,532.00 $5,450.00 16.0% 602-49450-50200 OFFICE SUPPLIES $250.00 $3,000.00 $2,750.00 1100.0% 602-49450-50207 TRAINING AND INSTRUCTIONAL SUPPLIES $1,500.00 $5,000.00 $3,500.00 233.3% 602-49450-50210 OPERATING SUPPLIES $3,000.00 $15,000.00 $12,000.00 400.0% 602-49450-50212 MOTOR FUELS $5,000.00 $5,000.00 100.0% 602-49450-50220 REPAIR AND MAINTENANCE SUPPLIES $20,000.00 $20,000.00 $0.00 0.0% 602-49450-50300 PROFESSIONAL SERVICES $62,000.00 $75,000.00 $13,000.00 21.0% 602-49450-50303 ENGINEERING FEES $10,000.00 $10,000.00 $0.00 0.0% 602-49450-50304 LEGAL FEES $2,500.00 $0.00 -$2,500.00 -100.0% 602-49450-50306 INSPECTIONS $10,000.00 $10,000.00 $0.00 0.0% 602-49450-50307 PERSONNEL ADMINISTRATION $1,500.00 $2,250.00 $750.00 50.0% 45 602-49450-50312 MCES SEWAGE TREATMENT $368,000.00 $350,000.00 -$18,000.00 -4.9% 602-49450-50313 UTILITY LOCATES $8,500.00 $8,500.00 100.0% 602-49450-50321 TELEPHONE $2,500.00 $2,500.00 100.0% 602-49450-50322 POSTAGE $2,500.00 $3,000.00 $500.00 20.0% 602-49450-50350 GENERAL NOTICES AND PUB INFO $500.00 $500.00 $0.00 0.0% 602-49450-50360 INSURANCE $500.00 $1,500.00 $1,000.00 200.0% 602-49450-50365 WORKER'S COMPENSATION INSURANCE $2,000.00 $4,788.00 $2,788.00 139.4% 602-49450-50380 UTILITY SERVICES $1,500.00 $15,000.00 $13,500.00 900.0% 602-49450-50381 ELECTRIC UTILITIES $4,500.00 $5,000.00 $500.00 11.1% 602-49450-50400 REPAIR AND MAINTENANCE - CONTRACT $3,000.00 $1,500.00 -$1,500.00 -50.0% 602-49450-50401 REPAIR AND MAINTENANCE - BUILDING $15,000.00 $15,000.00 100.0% 602-49450-50403 REPAIR AND MAINTENANCE - VEHICLE $7,500.00 $7,500.00 100.0% 602-49450-50413 OFFICE EQUIPMENT RENTAL $500.00 $500.00 $0.00 0.0% 602-49450-50417 UNIFORMS $4,000.00 $4,000.00 100.0% 602-49450-50430 MISCELLANEOUS EXPENSE $0.00 0.0% 602-49450-50432 CREDIT CARD FEES $10,000.00 $12,500.00 $2,500.00 25.0% 602-49450-50433 DUES AND MEMBERSHIPS $1,500.00 $1,500.00 $0.00 0.0% 602-49450-50600 DEBT SERVICE PRINICPAL $88,400.00 $91,200.00 $2,800.00 3.2% 602-49450-50610 DEBT SERVICE INTEREST $33,788.00 $31,094.00 -$2,694.00 -8.0% 602-49450-50611 BOND ISSUANCE COSTS $0.00 0.0% 602-49450-50720 INTERFUND TRANSFERS $392,611.00 $250,990.00 -$141,621.00 -36.1% Total Expenditures - 49450 - SEWER $1,246,797.00 $1,260,984.00 $14,187.00 1.1% SEWER REVENUE Dept 602-00000- SEWER 602-00000-36100 SPECIAL ASSESSMENTS 0.00% 602-00000-36200 MISCELLANEOUS REVENUES $8,500.00 $6,000.00 -$2,500.00 -29.41% 602-00000-36210 INTEREST EARNINGS $15,000.00 $25,000.00 $10,000.00 66.67% 602-00000-36400 REFUNDS/REIMBURSEMENTS 0.00% 602-00000-37210 SEWER RESIDENTIAL $854,000.00 $1,000,000.00 $146,000.00 17.10% 602-00000-37230 SEWER COMMERCIAL/INDUSTRIAL $30,000.00 $33,000.00 $3,000.00 10.00% 46 602-00000-37250 SEWER RECONNECT/DISCONNECT FEE 0.00% 602-00000-37260 SEWER PENALTY $100.00 $4,000.00 $3,900.00 3900.00% 602-00000-37275 SEWER ACCESS CHARGES-CITY $407,400.00 $271,590.00 -$135,810.00 -33.34% 602-00000-37280 SEWER TRUNK CHARGES $831,600.00 $435,554.00 -$396,046.00 -47.62% 602-00000-39201 TRANSFER FROM GENERAL FUND 0.00% 602-00000-39700 CAPITAL CONTRIBUTIONS GOV ACT 0.00% Total Revenue- 602-00000- SEWER $2,146,600.00 $1,775,144.00 -$371,456.00 -17.30% 47 Utilities Department Budget Presentation 48 49 Public Works Utilities Department Some Highlights from 2025 include: •Responding to 2,595 locate tickets •Responding to 8 emergency locate tickets •Issuing 288 new water meters as of 10/30/2025 •The opening and operation of Corcoran’s FIRST Water Treatment Plant and Water Tower! From August 5-October 30, 2025, 16.8million gallons of water have been pumped through our new water supply system! 50 Public Works Department Organizational Chart The Public Works Utilities Department is undergoing a utility rate study which will identify future staffing needs and timelines. 51 Sewer & Water Operating BudgetSummary % Change2024/2025 DifferenceTotal 2026 BudgetTotal 2025 BudgetBusiness Unit 9.6%$264,352$3,015,369$2,751,017Water (Fund 601) 1.1%$14,187$1,260,984$1,246,797Sewer (Fund 602) 52 WATER Comments% Change2025/2026 Difference2026 Budget2025 BudgetBudget Item Proposed COLA and standby compensation42.1%$64,728$218,498$153,770601-49400-50101 (Full Time Employees- Regular) Redistribution between 43100 and Sewer/Water100.0%$12,500$12,500---601-49400-50102 (Full Time Employees- Overtime) Increased personnel costs34.6%$10,153$39,532$29,379601-49400-50130 (Employer Paid Insurance) 53 WATER Comments% Change2025/2026 Difference2026 Budget2025 BudgetBudget Item Sampling supplies and equipment, flushing equipment, pressure and flow equipment 500.0%$50,000$60,000$10,000601-49400-50210 (Operating Supplies) Truck and generator fuel Split 50/50 between 49400and 49450 100.0%$5,000$5,000---601-49400-50212 (Motor Fuels) Water Treatment Plant100.0%$25,000$25,000---601-49400-50216 (Chemicals) Parts, supplies, and tools. (i.eHydrantnozzles)60.0%$15,000$40,000$25,000601-49400-50220 (Repair & Maintenance Supplies) Increase in cost of water meters. Costs passed on with new construction permits. 20.0%$20,000$120,000$100,000 601-49400-50227 (Utility Maintenance System Supplies) 54 WATER Comments% Change2025/2026 Difference2026 Budget2025 BudgetBudget Item Utility Rate Study -41.7%-$25,000$35,000$60,000601-49400-50300 (Professional Services) Building permit water serviceconnections-80.0%-$40,000$10,000$50,000601-49400-50306 (Inspections) Neptune 360, GIS Mapping100.0%$7,035$7,035---601-49400-50308 (Software) Maple Grove Connection Payback-24.2%-$12,596$39,404$52,000601-49400-50310 (Other Professional Services) Maple Grove cost increase Projected use increase was reduced by15% for NE service area 37.9%$125,000$455,000$330,000601-49400-50311 (Water Purchased) 55 WATER Comments% Change2025/2026 Difference2026 Budget2025 BudgetBudget Item Reallocating from 50210 and increased budget for purchase of locator. Split 50/50 between 49400 and 49450 100.0%$8,500$8,500---601-49400-50313 (Utility Locates) Decrease budget and split 50/50 between 49400 and 49450 -78.3%-$10,800$3,000$13,800601-49400-50322 (Postage) Internet, Gas, Garbage at Treatment Plant/Office900.0%$13,500$15,000$1,500601-49400-50380 (Utility Services) Electricity for Water Treatment Plant, Water Tower, and Meter Pits 11,900.0%$59,500$60,000$500601-49400-50381 (Electric Utilities) 56 WATER Comments% Change2025/2026 Difference2026 Budget2025 BudgetBudget Item Additional WTP operationalimprovements100.0%$50,000$50,000---601-49400-50401 (Repair & Maintenance-Building) Fleet servicing and maintenance (Split 49400 and 49450) 100.0%$7,500$7,500---601-49400-50403 (Repair & Maintenance-Vehicle) Payment to General Fund for Overhead Expenditures-37.9%-$142,503$233,740$376,243601-49400-50720 (Interfund Transfers) 57 REVENUE Water Comments% Change2025/2026 Difference2026 Budget2025 BudgetBudget Item 66.6%$10,000$25,000$15,000601-00000-36210 (Interest Earnings) Reflects increase in 601-49400-50227 per fee schedule 14.3%$16,500$132,000$115,500601-00000-37101 (Water Meters) Reduceddevelopable acresprojection-31.3%-$129,040$282,800$411,840601-00000-37170 (Water Connection Charge) Reduced developable acres projection-39.9%-$1,278,800$1,929,600$3,208,400601-00000-37180 (Water Trunk Charges-TLAC) 58 SEWER Comments% Change2025/2026 Difference2026 Budget2025 BudgetBudget Item Proposed COLA andstandby compensation30.6%$51,182$218,498$167,316602-49450-50101 (Full Time Employees-Regular) Redistribution between43100 and Sewer/Water 100.0%$12,500$12,500---602-49450-50102 (Full Time Employees-Overtime) Increased personnel costs16.0%$5,450$39,532$34,082602-49450-50130 (Employer Paid Insurance) 59 SEWER Comments% Change2025/2026 Difference2026 Budget2025 BudgetBudget Item Demand and supply cost increases400.0%$12,000$15,000$3,000602-49450-50210 (Operating Supplies) Truck and generator fuel100.0%$5,000$5,000---602-49450-50212 (Motor Fuels) Maintenance on LS, Sewer lines, and rate study21.0%$13,000$75,000$62,000602-49450-50300 (Professional Services) 60 SEWER Comments% Change2025/2026 Difference2026 Budget2025 BudgetBudget Item Reallocating from 50210and increased budget for purchase of locator. Split50/50 between 49400 and49450 100.0%$8,500$8,500---602-49450-50313 (Utility Locates) Internet, Garbage, Gas at Office and Lift Stations900.0%$13,500$15,000$1,500602-49450-50380 (Utility Services) Additional Lift Station operationalimprovements 100.0%$15,000$15,000---602-49450-50401 (Repair & Maintenance-Building) Fleet servicing andmaintenance100.0%$7,500$7,500---602-49450-50403 (Repair & Maintenance-Vehicle) 61 REVENUE Sewer Comments% Change2025/2026 Difference2026 Budget2025 BudgetBudget Item 66.6%$10,000$25,000$15,000602-00000-36210 (Interest Earnings) Projected increase in users and usage17.1%$146,000$1,000,000$854,000602-00000-37120 (Sewer Residential) Reduced developable acres projection-33.3%-$135,810$271,590$407,400602-00000-37275 (Sewer Access Charges-City) Reduced developable acres projection-47.6%-$396,046$435,554$831,600602-00000-37280 (Sewer Trunk Charges) 62 Our Greatest Asset-Our Public Works Utilities Team! 63