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SCC Item 1. Utility Fund Budgets
TO: Mayor and Councilmembers FROM: Adam Flaherty, City Administrator/Finance Director DATE: October 27, 2025 SUBJECT: Budget Meeting #4 __________________________________________________________________________________________________ On Monday, Council and staff will continue the 2026 budgeting discussions. I have developed an outline of discussion topics below. Please note that the information presented during this meeting is for discussion only and that nothing is final or set in stone at this point in the process. Staff would only be asking for Council direction on the items below to move the budgeting process forward effectively and efficiently. Utility Operations Overview Utility Operations Manager Neidermeier will be present for this portion of the meeting and will provide an overview of the Utility Department Operations and Capital Projects for 2026. Water Utility Fund City Administrator/Finance Director Flaherty along with Utility Operations Manager Neidermeier will review the following in detail: Materials for Review and Discussion 1)Line-Item Budgets 2)Line-Item Budgets - Detail 3)Capital Improvement Plan Summary Sanitary Sewer Utility Fund City Administrator/Finance Director Flaherty along with Utility Operations Manager Neidermeier will review the following in detail: Materials for Review and Discussion 1)Line-Item Budgets 2)Line-Item Budgets - Detail 3)Capital Improvement Plan Summary Storm Water Utility Fund City Administrator/Finance Director Flaherty will review the following in detail: Materials for Review and Discussion 1)Line-Item Budgets 2)Line-Item Budgets - Detail SCC. Item 1 Utility Rates The City is currently in process of wrapping up a rate study that is evaluating the user rates for the Water Utility. The preliminary recommendations from that study have been included in the draft budget presented at this meeting. City staff anticipate this study being completed and any additional adjustments included within the final budget, which will be presented for adoption in December. The rate changes and study recommendations would be presented to the City Council for formal consideration of approval in February 2026 for implementation with the March 2026 utility billing cycle. User rates for the Sanitary Sewer Utility were last evaluated in 2023 and the recommendations from that study have been included in draft budgets being presented at this meeting. These rate changes would be presented to the City Council for formal consideration of approval in February 2026 for implementation with the March 2026 utility billing cycle. Development fees for Water and Sanitary Sewer system Availability and Connection Charges were last evaluated in 2023 and the recommendations from that study have been included in draft budgets being presented at this meeting. These rate changes would be presented to the City Council for formal consideration of approval in December 2025 as part of the fee schedule ordinance for implementation in January 2026. User rates for the Storm Water Utility are still under evaluation and awaiting the release of inflationary indices from the Engineering News Record. The City Council implemented a phased rate increase during the 2025 budgeting process, so staff will be presenting a baseline increase of 7.43% and will also factor in the inflationary factor. These rate changes would be presented to the City Council for formal consideration of approval in December 2025 as part of the fee schedule ordinance for implementation in January 2026. Property Tax Levy The City Council adopted the preliminary levy on September 22. Wright County has since released additional information on tax capacity and tax rates for the 2026 preliminary levy. City staff will review the levy summary included in the packet and will review and discuss the changes with the City Council. A brief description of each column is as follows: - Green: Preliminary levy as adopted with tax capacity estimates available at that time. - Yellow: Preliminary levy as adopted with updated tax capacity information from Wright County. - Purple: Current working levy with updated tax capacity information from Wright County. Materials for Review and Discussion 1) Preliminary Tax Levy for 2026 Next Steps November 10 – No special meeting currently scheduled. The City Council should advise whether to schedule a meeting. November 24 – No special meeting currently scheduled. City staff would recommend this meeting to provide final review of numerous budget and property tax levy components, including but not limited to Cost-of-Living Adjustments, the Capital Improvement Plan Document, changes to operating budgets, and the proposed property tax levy. December 2 – Truth In Taxation December 8 – Final Adoption of Operating Budgets, the Capital Improvement Plan, and the Property Tax Levy. City of OtsegoEnterprise Fund Budget - 2026Water UtilityActual Actual Year-to-Date Budget BudgetFund Department Source Account Description 2023 2024 2025 2025 2026 CommentsRevenues601 49400 37150 WATER SALES 2,576,779$ 2,113,972$ 2,304,358$ 2,947,274$ 2,951,344$ Based on 2025 Utility Rate Study (7.00% Rate Increase)601 49400 37155 WATER SALES - IRRIGATION 559,552 427,405 449,646 507,000 478,000 Estimated - Represents Average of Actuals for 2024-2025 (YTD)601 49400 37160 WATER NSF 300 330 118 - - 601 49400 31900 PENALTIES AND INTEREST 75,078 74,751 73,425 68,000 79,000 Estimated - Represents Average of Actuals for 2023-2025 (YTD)TOTAL - OPERATING3,211,709 2,616,457 2,827,547 3,522,274 3,508,344 601 49400 33100 FEDERAL GRANTS AND AIDS - - - 2,652,000 748,000 Federal CDS Grant (Wellhouse 4 Water Treatment) - 22% of Grant in 2026601 49400 33422 OTHER STATE AID GRANTS 20,000 243 - - - 601 49400 33424 OTHER GRANTS - - 3,521 3,500 - 601 49400 34109 OTHER ADMINISTRATIVE CHARGES 17,625 17,175 20,500 16,000 17,000 601 49400 34302 WATER METERS 100,328 104,986 109,477 120,960 142,500 285 Meters at $500 (Cost of $470 + 1 HR Admin Time $30)601 49400 36100 SPECIAL ASSESSMENTS 137,408 185,207 96,367 - - 601 49400 36210 INTEREST EARNINGS 157,795 155,668 - - - 601 49400 36213 NET CHANGE IN INVESTMENT FMV 103,362 67,654 - - - 601 49400 36232 CAPITAL CONTRIB. DEVELOPERS 308,100 1,665,699 - - - 601 49400 37165 WATERTOWER RENTALS-ANTENNAS 96,181 97,389 92,321 101,633 104,887 Tower #1 (T-Mobile and Verizon) and Tower #3 (Nextera)601 49400 37170 DNR FEES FOR STATE 50,048 52,672 55,278 56,376 59,292 Estimated 6,100 Accounts at $9.72 (Actual is 5,808 as of 9/8/2025)60149400 38990 OTHER MISCELLANEOUS- - - - - 601 49400 38991 REFUNDS & REIMBURSEMENTS9,910 9,054 5,081 7,500 10,000 601 49400 39101 SALES OF FIXED ASSETS- 6,000 - - - 601 49400 39250 TRANSFER IN - CAPITAL ASSETS9,194 - - - - 601 49400 39300 PROCEEDS - BONDS ISSUED- - - 4,098,000 26,441,878 PFA Note Draw Requests & G.O. Revenue Bond Issuance (Per Rate Study)TOTAL - NON OPERATING1,009,952 2,361,747 382,546 7,055,969 27,523,557 TOTAL - REVENUES4,221,661 4,978,204 3,210,093 10,578,243 31,031,901 Expenses601 49400 101 FULL-TIME EMPLOYEES REGULAR187,205 215,163 175,107 247,673 356,416 Includes Utility Operator Hire (April 2026 Start Date)601 49400 102 WAGES - FT OVERTIME10,951 12,959 15,391 9,500 15,000 601 49400 104 WAGES - PT EMPLOYEES7,308 7,138 7,665 22,589 22,880 Seasonal Staff (26 Weeks at 40 Hours Per Week)601 49400 121 PERA12,057 17,013 14,464 20,310 27,856 601 49400 122 FICA AND MEDICARE15,028 17,645 14,772 21,532 30,164 601 49400 130 OTHER EMPLOYER PAID INS24,486 28,066 26,700 41,844 53,610 601 49400 135 MN PAID LEAVE- - - - 1,735 601 49400 150 WORKERS COMPENSATION5,182 5,587 7,321 6,124 4,640 Based on Actual 2025-2026 Premiums + 3% Inflation601 49400 191 GERF PENSION EXPENSE5,257 1,313 - - - Audit Entry - No Cash ImpactTOTAL - PERSONAL SERVICES267,474 304,884 261,419 369,572 512,301 601 49400 201 OFFICE SUPPLIES AND EXPENSES7,053 6,855 4,264 6,300 7,350 Estimated - Represents Average of Actuals for 2023-2025 (YTD) + 5%601 49400 202 FUEL8,515 5,083 58 8,130 6,647 Allocated 25% of 7,235 Gallons (2024 Actual + 5%) at $3.50 (Same as Fleet)601 49400 206 POSTAGE9,435 7,522 9,218 11,880 1,000 601 49400 210 OPERATING SUPPLIES7,560 7,079 7,176 7,500 7,500 Operational & Preventative Maintenance Items601 49400 216 CHEMICAL SUPPLIES225,066 209,846 173,735 212,900 232,050 Estimated - Represents Average of Actuals for 2023-2025 (YTD) + 5%601 49400 220 REPAIRS/MAINT SUPPLIES13,135 54,714 24,112 35,450 37,500 See Detailed Attachment601 49400 225 UNIFORMS/CLOTHING ALLOWANCE2,519 2,329 1,122 3,750 2,625 See Detailed Attachment601 49400 227 SAFETY SUPPLIES1,273 1,196 1,504 6,300 4,500 601 49400 228 UTILITY SYSTEM SUPPLIES300,571 87,175 160,256 148,000 185,700 See Detailed Attachment601 49400 240 SMALL TOOLS/EQUIPMENT4,789 8,958 5,850 8,250 5,000 Cordless Tools & Batteries, Hand Tools, Etc.601 49400 298 W/S FLEET EXPENSES4,515 5,323 - 6,000 6,000 TOTAL - SUPPLIES584,431 396,079 387,296 454,460 495,872 Fund 601 - Water UtilityAccount NumberY:\Budget\2026\Utility Funds\2026 UTILITY BUDGETS INPUTWater FundWATER - 1 City of OtsegoEnterprise Fund Budget - 2026Water UtilityActual Actual Year-to-Date Budget BudgetFund Department Source Account Description 2023 2024 2025 2025 2026 CommentsFund 601 - Water UtilityAccount Number601 49400 301 LEGAL SERVICES2,184 7,311 3,418 4,000 5,000 Estimated - Represents Average of Actuals for 2023-2025 (YTD)601 49400 302 ENGINEERING FEES68,856 59,522 22,406 67,000 50,000 See Detailed Attachment601 49400 303 PLANNING FEES800 3,050 700 1,000 1,000 601 49400 306 PERMITS & FEES76,488 73,950 41,635 91,800 94,700 See Detailed Attachment601 49400 309 SOFTWARE & SUPPORT100 - - - 26,470 See Detailed Attachment601 49400 315 GIS SERVICES2,102 3,569 2,686 2,500 3,000 601 49400 320 TELEPHONE11,772 16,743 10,318 14,200 14,100 See Detailed Attachment601 49400 321 MILEAGE/TRAVEL119 62 446 300 300 601 49400 322 UTILITIES155,890 192,236 91,539 160,000 165,000 Estimated - Represents Average of Actuals for 2023-2025 (YTD)601 49400 350 PRINT & PUBLISHING1,336 1,370 1,139 1,300 1,400 Statutory Requirements (Budget & Financial Statements) + Irrigation Flyers601 49400 355 DUES & MEMBERSHIPS525 463 488 565 500 See Detailed Attachment601 49400 360 EDUCATION/TRAINING/CONFERENCES1,660 3,120 4,998 6,300 6,900 See Detailed Attachment601 49400 361 LIABILITY AND PROPERTY INSURAN20,857 26,149 56,485 32,887 33,840 Based on Actual 2025-2026 Premiums + 4% Inflation601 49400 390 CONTRACTED SERVICES112,465 128,708 68,280 129,300 122,600 See Detailed Attachment601 49400 402 REPAIRS/MAINT BUILDINGS11,997 1,174 15,122 10,000 12,000 Well House - Siding, Door Replacements, & LED Lighting601 49400 410 RENTALS2,195 2,259 1,646 2,446 2,446 Folding & Envelope Stuffing Machine - Lease Payments & R/M Allowance601 49400 437 BANK SERVICE CHARGES17,052 18,166 21,930 17,850 22,050 Estimated - Represents Average of Actuals for 2023-2025 (YTD) + 5%TOTAL - SERVICES & OTHER CHARGES486,398 537,853 343,238 541,448 561,306 601 49400 500 CAPITAL OUTLAY (GENERAL)186 - 4,408 4,500 2,200 IT Equipment - Computer Additions and Replacements - 25% Allocation601 49400 501 EQUIPMENT4,763 8,243 - 8,200 8,000 Outfitting of Department Vehicles601 49400 510 LAND ACQUISITIONS/EASEMENTS63,024 288,182 806,137 - - 601 49400 525 BUILDING IMPROVEMENTS- - 29,549 33,000 3,000 WIFI Boosters, Wireless Access Points, & IT Hardware Replacements601 49400 530 IMPROVEMENTS OTHER THAN BLDG4,402,970 2,044,554 3,831,248 13,040,000 15,661,063 See Detailed Attachment601 49400 550 MOTOR VEHICLES93,666 73,888 12,845 24,750 - 601 49400 590 REHABILITATION & REPLACEMENT9 - - 50,000 50,000 Ongoing investment for costs of R&R - Water Master Plan601 49400 599 CAPITALIZED ASSET OFFSET(4,452,644) (2,255,945) - - - TOTAL - CAPITAL OUTLAY111,974 158,922 4,684,188 13,160,450 15,724,263 601 49400 420 DEPRECIATION882,583 993,164 - 1,462,718 1,792,351 Estimated 2025 Amount from 2025 Utility Rate Study601 49400 601 BOND PRINCIPAL- - - - 40,955 Debt Service - 2025 PFA (Based on Estimated Amortization)601 49400 602 BOND INTEREST85,442 78,030 - - 9,982 Debt Service - 2025 PFA (Based on Estimated Amortization)601 49400 620 FISCAL AGENT FEES839 674 - - - 601 49400 650 DEBT SERVICE AMORTIZATION'S(15,695) (15,695) - - - 601 49400 720 OPERATING TRANSFERS80,150 106,750 119,500 119,500 150,000 Administrative Contribution to General FundTOTAL - OTHER1,033,319 1,162,923 119,500 1,582,218 1,993,288 TOTAL - EXPENSES2,483,596 2,560,661 5,795,641 16,108,148 19,287,030 NET INCOME / (LOSS)1,738,065$ 2,417,542$ (2,585,547)$ (5,529,905)$ 11,744,871$ Y:\Budget\2026\Utility Funds\2026 UTILITY BUDGETS INPUTWater FundWATER - 2 City of OtsegoEnterprise Fund Budget - 2026Detail of Line Item RequestsWater UtilityBudget Budget2025 2026 Item Detail / Description Comment16,500$ 17,000$ Wellhouse Components (Ex. Chemical Pumps, Valves, Repairs)5,750 6,000 Hydrants - Repair Kits, Paint, Replacement Flags (100)4,950 6,000 Wells - Meters, Electronics, Drives, Instrumentation8,250 8,500 Valves - Caps, Extensions, Sections, Pressure Reducing Valves- - 35,450 37,500 2,300$ 1,600$ Clothing Allowance = $400 x 2 Operators + 1 Manager (50%) & $600 x 1 New Hire1,100 700 Boot Allowance = $200 x 3 Operators + 1 Manager (50% Allocation)150 150 Clothing Allowance = $150 x 1 Seasonal Operator150 150 Boot Allowance = $150 x 1 Seasonal Operator50 25 Clothing Allowance - Administrative Staff (50% Allocation)3,750 2,625 148,000$ -$ Prior Year Total - Lump Sum- 134,010 New Residential Meters & Horns (285)- 35,150 Replacement Meters - 5/8" Residential Meters - (95)- 3,790 Replacement (2) & New (4) - 1" Meters- 7,104 Replacement (2) & New (4) - 1.5" Meters & Flange Kits- 5,600 Replacement (1) & New (3) - 2" Meters & Flange Kits- 46 Rounding148,000 185,700 15,000$ 15,000$ General Water Engineering (Regulatory, Distribution System, Consultation)35,000 35,000 Instrumentation Services & Modeling17,000 - Water Supply and Wellhead Protection Plan Updates67,000 50,000 R/M SUPPLIES601-49400-225ENGINEERING FEES601-49400-228UTILITY SYSTEM SUPPLIESAccount No. & Description601-49400-220Repair and maintenance related to aging equipment and infrastucture. Larger equipment maintenance items are budgeted specifically in Object #590 as Replacement and Rehabilitation costs.UNIFORMS/CLOTHING ALLOWANCE601-49400-302Y:\Budget\2026\Utility Funds\2026 UTILITY BUDGETS INPUT601-DetailWATER - 3 City of OtsegoEnterprise Fund Budget - 2026Detail of Line Item RequestsWater UtilityBudget Budget2025 2026 Item Detail / Description CommentAccount No. & Description56,376$ 59,292$ Minnesota Department of Health Testing ($9.72 at 6,100 Accounts)35,000 35,000 DNR - Water Usage400 400 Tier II Permits (4 @ $100)24 8 Rounding91,800 94,700 -$ 9,270$ Neptune Service Agreement - Ferguson AMR and 360 Professional Services- 5,220 Aveva WonderWare Customer Support Agreement - 50% Allocation- 750 OpWorks Software Agreement - 50% Allocation- 1,080 WIN-911 Remote Monitoring Mobile Application - Allocated 50%- 3,399 NOVO Solutions Software Subscription (25% Allocation)- 6,750 VM Software SCADA (50% Allocation)- 1 Rounding- 26,470 1,735$ 3,160$ Employee Cell Phones ($45 x 4) + Replacement Phones ($1,000)984 984 CenturyLink SCADA Alarm Phone Lines at East Facilities ($82 Per Month)960 1,440 Answering Service ($120 Monthly 2025 YTD Average)480 540 Land Line Telephone Service ($45 Monthly)240 240 Tablet's Data Plan ($40 x 2) - Allocated 25%1,080 - WIN-911 Remote Monitoring Mobile Application - Allocated 50%- 1,440 Charter Communications - Internet Services for Security/SCADA (~$120 Per Month x 1)8,640 6,240 SCADA System Data Plans ($40 x 13)81 56 Rounding14,200 14,100 300$ 425$ Minnesota Rural Water Association65 65 Suburban Utility Superintendent's Association - Allocated 50%200 10 Rounding565 500 818$ 1,104$ Citywide Safety Program Training3,300 3,600 Operator Certification Licensing and Training ($300 x 12 Operators)2,125 2,125 Commercial Drivers License (2) - Training and Certification - Allocated 25%57 71 Rounding6,300 6,900 601-49400-306Environment, Natural Resources Bill passed increasing water use permit fees for months of May - September over January use. Accounts as of 9/8/2025 = 5,808.PERMITS & FEES601-49400-355DUES & MEMBERSHIPSSOFTWARE & SUPPORT601-49400-320TELEPHONE601-49400-360EDUCATION / TRAINING / CONFERENCECertain budgeted items have been relocated to Account Code #309 (WIN-911).601-49400-309Y:\Budget\2026\Utility Funds\2026 UTILITY BUDGETS INPUT601-DetailWATER - 4 City of OtsegoEnterprise Fund Budget - 2026Detail of Line Item RequestsWater UtilityBudget Budget2025 2026 Item Detail / Description CommentAccount No. & Description49,963$ 43,566$ Locates (Hakanson) - Based on 2023 - 2025 YTD Monthly Average + 5%3,014 2,672 Locates (Gopher One) - Based on 2023 - 2025 YTD Monthly Average + 5%15,000 15,000 Electrical Maintenance3,500 - Neptune Service Agreement5,220 - Aveva WonderWare Customer Support Agreement - 50% Allocation750 - OpWorks Software Agreement - 50% Allocation4,380 2,736 W/H Security Monitoring @ $228 per month (Tower 4, Booster Station, & 4 Well Houses)6,900 7,000 Lab Testing - Regulatory Distribution and Routine Well Sampling5,500 5,500 Equipment Inspections & Testing - Generator/ Meters/RPZ15,000 15,000 Distribution Repairs / Watermain Leaks2,000 2,000 Mechanical - Heating & Air Conditioning3,500 2,000 VFD Inspections & Preventative Maintenance400 400 800Mhz Infrastructure fees ($100 per radio) Wright County8,000 8,000 Fire Hydrant Painting (100 Hydrants)- 3,400 Water Tower 3 Cleaning - ROV or Dry Tank6,000 - Water Rate Study- 15,293 Quadient - Utility Bill Printing & Mailing Services (40% Allocation based on Revenue)173 33 Rounding Contingency + Inflationary Factor129,300 122,600 6,300,000$ 2,200,000$ Water Treatment at Wellhouse 4170,000 75,000 Annual Well Equipment Inspection and Reconditioning (Well #7 Probable for 2026)435,000 - Well #11135,000 - SCADA Instrumentation Improvements1,500,000 - Odean Ave Watermain - Extension from CSAH 38 to 77th Street (Crimson Ponds West)1,000,000 3,836,100 Water Treatment at Wellhouse 3- 539,620 Well #12- 150,000 Lift Station No. 4 Improvements (Martin Farms LS - Future Well Preparations)- 119,000 Watermain Extensions - Existing Wellhouse 3 to Future Wellhouse 3 WTP/Well #123,500,000 6,943,250 South Central WTP Building & Ground Storage Resovoir- 1,243,093 South Central Wellfield - Phase 1 - Test & Observation Wells (6 Wells)- 155,000 South Central Wellfield - Phase 2 - Well Development & Watermains (5 Wells)- 400,000 East-West Watermain Interconnect - Phase 2- - 13,040,000 15,661,063 601-49400-530IMPROVEMENTS OTHER THAN BUILDINGSCONTRACTED SERVICES601-49400-390Certain budgeted items have been relocated to Account Code #309 (Neptune / Aveva / OpWorks).Y:\Budget\2026\Utility Funds\2026 UTILITY BUDGETS INPUT601-DetailWATER - 5 City of OtsegoEnterprise Fund Budget - 2026Water Infrastructure + Buildings (WAC)Actual Actual Year-to-Date Budget BudgetFund Department Object Account Description 2023 2024 2025 2025 2026 CommentsRevenues360 47000 34406 WATER AVAILABILITY + CONNECTION CHARGES 1,101,123$ 2,013,070$ 1,694,862$ 1,455,400$ 1,769,460$ Rate Increase (20%) - 100 Final Plats + 285 New Connections360 47000 36100 SPECIAL ASSESSMENTS 18,587 11,159 36,338 85,533 70,325 Current Levied WAC Assessments360 47000 36210 INVESTMENT EARNINGS 112,567 200,880 - - - 360 47000 36213 INVESTMENT FAIR MARKET VALUE ADJUSTMENT 73,736 87,303 - - - TOTAL 1,306,013 2,312,412 1,731,200 1,540,933 1,839,785 Expenditures360 47000 390 CONTRACTED SERVICES 8,365 709 - - - 360 47000 601 PRINCIPAL - - 260,000 962,000 995,800 Debt Service - 2019A / 2021A / 2021B360 47000 602 INTEREST 138,225 93,535 104,078 134,651 96,824 Debt Service - 2019A / 2021A / 2021B360 47000 620 FISCAL AGENT FEE'S 700 535 673 1,250 1,250 360 47000 650 DEBT SERVICE AMORTIZATION'S (116,578) (116,577) - (132,272) (132,272) Audit Entry - No Cash Impact360 47000 750 TRANSFER OUT - CAPITAL ASSETS 9,194 - - - - TOTAL 39,906 (21,798) 364,751 965,629 961,602 EXCESS (DEFICIENCY) OF REVENUESOVER (UNDER) EXPENDITURES1,266,107$ 2,334,210$ 1,366,449$ 575,304$ 878,183$ Fund 360 - Water Infrastructure + Buildings (WAC)Account NumberWATER - 6 WATER - 7 City of OtsegoEnterprise Fund Budget - 2026Sanitary Sewer UtilityActual Actual Year-to-Date Budget BudgetFund Department Source Account Description 2023 2024 2025 2025 2026 CommentsRevenues602 49450 37200 SEWER SALES 3,985,189$ 4,364,798$ 3,755,886$ 4,378,725$ 4,597,888$ Based on 2023 Utility Rate Study (2.00% Rate Increase)602 49450 31900 PENALTIES AND INTEREST 97,640 111,498 117,477 89,000 115,000 Estimated - Represents Average of Actuals for 2023-2025 (YTD)TOTAL - OPERATING4,082,829 4,476,296 3,873,363 4,467,725 4,712,888 602 49450 33100 FEDERAL GRANTS AND AIDS 737,311 - - - - 602 49450 33422 OTHER STATE AID GRANTS73,411 8,000,243 - - - 602 49450 33424 OTHER GRANTS- - 3,521 3,500 - 602 49450 36200 MISCELLANEOUS REVENUES50 1,902 - - - 602 49450 36210 INTEREST EARNINGS1,268,690 146,632 - - - 602 49450 36213 NEY CHANGE IN INVESTMENT FMV232,383 63,727 - - - 602 49450 36232 CAPITAL CONTRIB. DEVELOPERS378,909 1,563,692 - - - 602 49450 38991 REFUNDS & REIMBURSEMENTS8,720 2,278 2,196 5,000 2,500 602 49450 39101 SALES OF FIXED ASSETS5376,000 - - - 602 49450 39250 TRANSFER IN - CAPITAL ASSETS9,194 - - - - 602 49450 39300 PROCEEDS - BONDS ISSUED- - 5,196,401 6,000,000 - PFA Note Draw RequestsTOTAL - NON OPERATING2,709,204 9,784,474 5,202,117 6,008,500 2,500 TOTAL - REVENUES6,792,033 14,260,769 9,075,480 10,476,225 4,715,388 Expenses602 49450 101 FULL-TIME EMPLOYEES REGULAR433,689 645,488 525,318 743,019 877,643 602 49450 102 WAGES - FT OVERTIME19,515 38,877 46,174 28,500 45,000 602 49450 104 WAGES - PT EMPOYEES10,848 21,414 22,995 67,768 22,880 Seasonal Staff (26 Weeks at 40 Hours Per Week)602 49450 121 PERA36,159 51,040 43,392 60,931 69,198 602 49450 122 FICA AND MEDICARE34,009 52,936 44,315 64,595 72,333 602 49450 130 OTHER EMPLOYER PAID INS73,453 84,200 80,098 125,531 123,561 602 49450 135 MN PAID LEAVE- - - - 4,083 602 49450 150 WORKERS COMPENSATION15,545 16,757 19,645 18,372 11,533 Based on Actual 2025-2026 Premiums + 3% Inflation602 49450 191 GERF PENSION EXPENSE15,667 4,036 - - - Audit Entry - No Cash ImpactTOTAL - PERSONAL SERVICES638,884 914,747 781,937 1,108,716 1,226,231 602 49450 201 OFFICE SUPPLIES AND EXPENSES8,759 10,565 16,048 9,450 13,650 Estimated - Represents Average of Actuals for 2023-2025 (YTD) + 5%602 49450 202 FUEL28,027 19,882 2,806 24,390 19,941 Allocated 25% of 7,235 Gallons (2024 Actual + 5%) at $3.50 (Same as Fleet)602 49450 206 POSTAGE9,206 11,237 9,004 11,880 500602 49450 210 OPERATING SUPPLIES16,843 31,776 34,413 45,000 41,000 See Detailed Attachment602 49450 216 CHEMICAL SUPPLIES174,548 189,233 154,260 271,200 270,750 See Detailed Attachment602 49450 220 REPAIRS/MAINT SUPPLIES140,820 126,158 121,333 140,000 115,700 See Detailed Attachment602 49450 225 UNIFORMS/CLOTHING ALLOWANCE3,073 4,923 2,244 3,750 5,425 See Detailed Attachment602 49450 227 SAFETY SUPPLIES4,287 3,404 8,696 8,500 7,500 602 49450 240 SMALL TOOLS/EQUIPMENT4,363 8,652 10,977 18,000 21,450 See Detailed Attachment602 49450 298 W/S FLEET EXPENSES13,545 15,970 - 20,000 20,000 TOTAL - SUPPLIES403,472 421,799 359,781 552,170 515,916 Fund 602 - Sanitary Sewer UtilityAccount NumberY:\Budget\2026\Utility Funds\2026 UTILITY BUDGETS INPUTSewer FundSANITARY SEWER - 1 City of OtsegoEnterprise Fund Budget - 2026Sanitary Sewer UtilityActual Actual Year-to-Date Budget BudgetFund Department Source Account Description 2023 2024 2025 2025 2026 CommentsFund 602 - Sanitary Sewer UtilityAccount Number602 49450 301 LEGAL SERVICES1,999 360 1,209 3,000 1,000 Estimated - Represents Average of Actuals for 2023-2025 (YTD)602 49450 302 ENGINEERING FEES32,495 28,335 23,253 54,080 55,000 See Detailed Attachment602 49450 303 PLANNING FEES800 100 300 1,000 1,000 Estimated - Represents Average of Actuals for 2023-2025 (YTD)602 49450 306 PERMIT & FEES7,350 8,590 7,350 11,800 11,800 See Detailed Attachment602 49450 309 SOFTWARE & SUPPORT140 - - - 28,000 See Detailed Attachment602 49450 315 GIS SERVICES6,634 2,844 3,618 4,000 4,000 602 49450 320 TELEPHONE12,297 12,942 13,204 19,500 28,700 See Detailed Attachment602 49450 321 MILEAGE/TRAVEL1,833 2,051 505 2,000 2,000 602 49450 322 UTILITIES395,353 353,761 333,650 381,000 461,150 Estimated - Represents Average of Actuals for 2023-2025 (YTD) + 15%602 49450 325 GARBAGE SERVICE31,272 33,869 20,996 33,000 31,000 Estimated - Represents Average of Actuals for 2023-2025 (YTD)602 49450 350 PRINT & PUBLISHING295 123 - 300 300 Statutory Publish Requirements (Budget & Financial Statements)602 49450 355 DUES & MEMBERSHIPS- 63 63 65 65 Suburban Utility Superintendent's Association602 49450 360 EDUCATION/TRAINING/CONFERENCES6,851 7,336 7,073 12,200 12,750 See Detailed Attachment602 49450 361 LIABILITY AND PROPERTY INSURAN65,974 77,671 186,347 83,516 130,523 Based on Actual 2025-2026 Premiums + 4% Inflation602 49450 390 CONTRACTED SERVICES188,396 186,696 103,187 214,500 215,200 See Detailed Attachment602 49450 402 REPAIRS/MAINT BUILDINGS2,432 6,769 15,466 18,600 40,000 See Detailed Attachment602 49450 410 RENTALS2,195 2,195 1,947 2,446 2,446 Folding & Envelope Stuffing Machine - Lease Payments & R/M Allowance602 49450 419 BIOSOLIDS HAULING36,869 66,890 17,511 113,000 50,000 See Detailed Attachment602 49450 437 BANK SERVICE CHARGES51,157 54,498 35,222 53,550 53,550 Estimated - Represents Average of Actuals for 2023-2025 (YTD) + 5%TOTAL - SERVICES & OTHER CHARGES844,344 845,094 770,900 1,007,557 1,128,484 602 49450 500 CAPITAL OUTLAY (GENERAL)1,089 - 14,040 13,500 6,600 IT Equipment - Computer Additions and Replacements - 75% Allocation602 49450 501 EQUIPMENT1,648 8,829 - 8,200 10,000 Skidloader - Track Replacement602 49450 525 BUILDING IMPROVEMENTS- - - 3,000 9,000 WIFI Boosters, Wireless Access Points, & IT Hardware Replacements602 49450 530 IMPROVEMENTS OTHER THAN BLDG15,240,702 15,905,400 4,127,825 6,595,000 1,675,000 See Detailed Attachment602 49450 550 MOTOR VEHICLES139,062 226,019 370,231 401,250 - 602 49450 590 REHABILITATION & REPLACEMENT28,999 212,228 465 325,000 350,000 See Detailed Attachment602 49450 599 CAPITALIZED ASSET OFFSET(15,363,218) (16,113,382) - - - TOTAL - CAPITAL OUTLAY48,280 239,093 4,512,561 7,345,950 2,050,600 602 49450 420 DEPRECIATION1,576,558 1,640,956 - 2,951,123 3,086,969 Estimated 2026 Amount from 2023 Utility Rate Study602 49450 601 BOND PRINCIPAL(1) - 804,000 804,000 814,000 Debt Service - 2020 PFA602 49450 602 BOND INTEREST978,872 678,069 163,179 163,178 153,844 Debt Service - 2020 PFA602 49450 620 FISCAL AGENT FEES36,776 357 - 500 500 602 49450 720 OPERATING TRANSFERS242,600 320,250 358,500 358,500 450,000 Administrative Contribution to General FundTOTAL - OTHER2,834,804 2,639,632 1,325,679 4,277,301 4,505,313 TOTAL - EXPENSES4,769,785 5,060,365 7,750,858 14,291,694 9,426,544 NET INCOME / (LOSS)2,022,249$ 9,200,405$ 1,324,623$ (3,815,469)$ (4,711,156)$ Y:\Budget\2026\Utility Funds\2026 UTILITY BUDGETS INPUTSewer FundSANITARY SEWER - 2 City of OtsegoEnterprise Fund Budget - 2026Detail of Line Item RequestsSanitary Sewer UtilityBudget Budget2024 2025 Item Detail / Description Comments11,000$ 13,000$ Facility Operations & Preventative Maintenance Supplies5,000 3,000 Collection System / Lift Stations Operations & Maintenance Supplies17,500 15,000 Lubrication Supplies - Oil & Grease11,500 10,000 Air Filters- - 45,000 41,000 55,000$ 57,000$ Ferric Chloride - Phosphorous Removal 16,000 16,000 Polymer - Belt Thickening Process74,000 75,000 Lime - Solids Processing92,000 95,000 Polymer - Solids Processing700750 Sulfamic Acid - Solids Processing5,500 7,000 Bleach24,000 16,000 Citric Acid4,000 4,000 Freight and Rounding271,200 270,750 17,000$ 42,700$ East Wastewater Treatment Faciltiy Corrective Maintenance17,000 11,000 West Wastewater Treatment Facility Corrective Maintenance12,000 19,000 Lift Stations Corrective Maintenance74,000 23,000 Collection System Corrective Maintenance (Ex. Chimney Replacements)2,000 - Solids Handling Apparatus, Hoses, and Fittings8,000 - Combination Unit - Nozzles, Jet Line, Clamps, and Screens4,000 8,000 Forcemain & Air Releif Valve Maintenance6,000 12,000 Landscaping - Trees, Mulch, Herbicide- - 140,000 115,700 2,300$ 3,400$ Clothing Allowance = $400 x 8 Operators + 1 Manager (50% Allocation)1,100 1,700 Boot Allowance = $200 x 8 Operators + 1 Manager (50% Allocation)150150Clothing Allowance = $150 x 1 Seasonal Operator150150Boot Allowance = $150 x 1 Seasonal Operator50 25 Clothing Allowance - Administrative Staff (50% Allocation)3,750 5,425 18,000$ -$Prior Year Total - Lump Sum- 5,850 Non-Itemized Items - Cordless Tools & Batteries, Hand Tools, Etc.- 6,500 Solids Analyzer- 8,000 HiEdry Dehumidifiers- 1,100 Portable ORP Probe- - 18,000 21,450 R/M SUPPLIES602-49450-220Account No. & Description602-49450-210OPERATING SUPPLIES602-49450-216CHEMICAL SUPPLIESRepair and maintenance related to aging equipment and infrastucture. Mill and Overlay Street Projects increased number of collection system repairs within the project areas.602-49450-225UNIFORMS/CLOTHING ALLOWANCE602-49450-240SMALL TOOLS/EQUIPMENTY:\Budget\2026\Utility Funds\2026 UTILITY BUDGETS INPUT602-DetailSANITARY SEWER - 3 City of OtsegoEnterprise Fund Budget - 2026Detail of Line Item RequestsSanitary Sewer UtilityBudget Budget2024 2025 Item Detail / Description CommentsAccount No. & Description25,000$ 25,000$ General Sewer Engineering (Regulatory, Collection System, Consultation)29,080 30,000 AE2S - Instrumentation Services- - 54,080 55,000 5,900$ 5,900$ MPCA - Municipal Permit Annual Fee - East WWTF5,900 5,900 MPCA - Municipal Permit Annual Fee - West WWTF- - 11,800 11,800 -$1,200$ Toshiba Printer Services and Support Agreement ($100 Monthly for 4 Devices)- 5,220 Aveva WonderWare Customer Support Agreement - 50% Allocation- 750OpWorks Software Agreement - 50% Allocation- 10,196 NOVO Solutions Software Subscription (75% Allocation)- 6,750 VM Software SCADA (50% Allocation)- 200Network Firewall ($200 Annually)- 2,600 Server Hardware Maint Contract ($2,600 Annually)- 1,080 WIN-911 Remote Monitoring Mobile Application - Allocated 50%- 4 Rounding- 28,000 5,205$ 5,860$ Employee Cell Phones ($45 x 9) + Replacement Phones ($1,000)984984CenturyLink SCADA Alarm Phone Lines at East Facilities ($82 Per Month)9601,440 Answering Service ($120 Monthly 2025 YTD Average)1,440 1,560 Land Line Telephone Service ($130 Monthly)720720Tablet's Data Plan ($40 x 2) - Allocated 75%1,080 - WIN-911 Remote Monitoring Mobile Application - Allocated 50%8,100 17,088 Charter Communications - Fiber Internet Services for WWTF 960960SCADA System Data Plans ($40 x 2)51 88 Rounding19,500 28,700 2,452$ 2,745$ Citywide Safety Program Training3,300 3,600 Operator Certification Licensing and Training ($300 x 12 Operators)6,375 6,375 Commercial Drivers License (2) - Training and Certification - Allocated 75%73 30 Rounding12,200 12,750 602-49450-302602-49450-360EDUCATION / TRAINING / CONFERENCEENGINEERING FEES602-49450-320TELEPHONECertain budgeted items have been relocated to Account Code #309 (WIN-911).PERMITS & FEES602-49450-309SOFTWARE & SUPPORT602-49450-306Y:\Budget\2026\Utility Funds\2026 UTILITY BUDGETS INPUT602-DetailSANITARY SEWER - 4 City of OtsegoEnterprise Fund Budget - 2026Detail of Line Item RequestsSanitary Sewer UtilityBudget Budget2024 2025 Item Detail / Description CommentsAccount No. & Description57,000$ 51,450$ Required Certified Lab Analysis - Based on 2023 - 2025 YTD Monthly Average + 5%49,963 43,566 Locates (Hakanson) - Based on 2023 - 2025 YTD Monthly Average + 5%3,014 2,672 Locates (Gopher One) - Based on 2023 - 2025 YTD Monthly Average + 5% 15,000 15,000 Electrical6,000 1,080 East WWTF - Security Monitoring & Fire Monitoring (W/H @ $90 Monthly)- 780West WWTF - Security Monitoring (ECSI @ $65 Monthly)6,000 6,000 Lawn Services - Spraying5,500 5,500 Equipment inspections / Testing - Generators 15,000 15,000 Collection System Repairs - Forcemain Pipes7,500 7,500 Mechanical - Heating & Air Conditioning400 400 800Mhz Infrastructure fees ($100 per radio) Wright County3,000 3,000 Collection System Inspections & Cleaning - Video Camera Services2,500 2,500 Meter Calibrations4,000 4,000 VFD Inspections & Preventative Maintenance5,220 - Aveva WonderWare Customer Support Agreement - 50% Allocation750- OpWorks Software Agreement - 50% Allocation6,000 - Rate Study2,800 2,800 East WWTF - Feenics Card Access Management (ProTech Design)6,500 - RICE NESHAP Testing (West WWTF Generator)300300Toxic Sensor Testing15,000 15,000 Pipe Channel & Manhole Liners3,000 16,000 Vac Truck Contracted Services- 22,557 Quadient - Utility Bill Printing & Mailing Services (59% Allocation based on Revenue)53 95 Rounding Contingency + Inflationary Factor214,500 215,200 18,600$ -$Prior Year Total - Lump Sum- 19,000 West WWTF - Doors- 6,000 E GBT Rollup Door- 15,000 East & West WWTF - Perimeter fencework and screening18,600 40,000 602-49450-390CONTRACTED SERVICES602-49450-402REPAIR / MAINT BUILDINGSCertain budgeted items have been relocated to Account Code #309 (Aveva / OpWorks).Y:\Budget\2026\Utility Funds\2026 UTILITY BUDGETS INPUT602-DetailSANITARY SEWER - 5 City of OtsegoEnterprise Fund Budget - 2026Detail of Line Item RequestsSanitary Sewer UtilityBudget Budget2024 2025 Item Detail / Description CommentsAccount No. & Description85,000$ 25,000$ Landfill Disposal - East WWTF Biosolids Material28,000 25,000 Contracted Transportation of Rolloff Containers- - 113,000 50,000 6,000,000$ -$West WWT Liquids Capacity Expansion195,000 - Annual Lift Station Equipment Inspection and Reconditioning- 850,000 Lift Station No. 4 Improvements (Martin Farms LS)- 150,000 Pretreatment Equipment (East WWTF Grit System)350,000 550,000 Sanitary Collection System Extension - Kadler Avenue to Jalger Avenue50,000 125,000 SCADA Instrumentation Improvements (West WWTF)- - 6,595,000 1,675,000 325,000$ 73,000$ Ongoing investment for costs of R&R as identified in Wastewater Treatment Master Plan.- 110,000 Odor Control Media Changeout (East WWTF)- 25,500 Annual Lift Station Equipment Inspection and Reconditioning- 80,000 East WWTF - Repair of Structures, Lining and Bypass- 21,500 Disinfection and Aeration Components- 25,000 Solids Equipment- 15,000 Lift Station Access Replacements325,000 350,000 602-49450-590REHABILITATION & REPLACEMENT602-49450-530Annual LS Equipment Inspection & Reconditioning now accounted for in Object Code 590 for budget year and CIP.IMPROVEMENTS OTHER THAN BUILDINGS602-49450-419BIOSOLIDS HAULING/DISPOSALY:\Budget\2026\Utility Funds\2026 UTILITY BUDGETS INPUT602-DetailSANITARY SEWER - 6 City of OtsegoEnterprise Fund Budget - 2026Sanitary Sewer Infrastructure + Buildings (SAC)Actual Actual Year-to-Date Budget BudgetFund Department Object Account Description 2023 2024 2025 2025 2026 CommentsRevenues361 47000 34407 SEWER AVAILABILITY + CONNECTION CHARGES 3,095,248$ 4,388,925$ 3,505,287$ 2,866,060$ 3,028,305$ Rate Increase (4%) - 100 Final Plats + 285 New Connections361 47000 36100 SPECIAL ASSESSMENTS 66,076 40,177 121,683 289,547 262,475 Current Levied SAC Assessments361 47000 36210 INVESTMENT EARNINGS 440,897 772,511 ---361 47000 36213 INVESTMENT FAIR MARKET VALUE ADJUSTMENT 288,807 335,737 ---TOTAL3,891,028 5,537,349 3,626,971 3,155,607 3,290,780 Expenditures361 47000 390 CONTRACTED SERVICES23,809 2,017 ---361 47000 601 PRINCIPAL--1,349,000 2,597,000 2,686,200 Debt Service - 2019A / 2021A / PFA 2023361 47000 602 INTEREST245,733 166,286 801,052 884,178 950,319 Debt Service - 2019A / 2021A / PFA 2023361 47000 620 FISCAL AGENT FEE'S977 812 317 1,000 1,000 36147000 650 DEBT SERVICE AMORTIZATION'S(207,250) (207,248) -(207,249) (207,248) Audit Entry - No Cash Impact361 47000 750 TRANSFER OUT - CAPITAL ASSETS9,194 ----TOTAL72,463 (38,133) 2,150,368 3,274,929 3,430,271 EXCESS (DEFICIENCY) OF REVENUESOVER (UNDER) EXPENDITURES3,818,566$ 5,575,482$ 1,476,602$ (119,322)$ (139,491)$ Fund 361 - Sanitary Sewer Infrastructure + Buildings (SAC)Account NumberSANITARY SEWER - 7 SANITARY SEWER - 8 City of OtsegoEnterprise Fund Budget - 2026Storm Water UtilityActual Actual Year-to-Date Budget BudgetFund Department Source Account Description 2023 2024 2025 2025 2026 CommentsRevenues603 49490 37500 STORMWATER UTILITY CHARGES 108,367$ 117,476$ 126,848$ 126,702$ 143,500$ Based on 2025 Forecasted Revenue + 7.43% Rate Increase + ENR % (Pending)603 49490 31900 PENALTIES AND INTEREST2,188 2,771 3,146 2,000 3,000 Estimated - Represents Average of Actuals for 2023-2025 (YTD)TOTAL - OPERATING110,555 120,247 129,993 128,702 146,500 603 49490 31010 CURRENT AD VALOREM TAXES38,000 - - - - 603 49490 36100 SPECIAL ASSESSMENTS33,406 36,884 19,211 35,274 35,274 Based on 2026 Assessment Roll (Pending Final Updates)603 49490 36210 INTEREST EARNINGS16,046 28,749 - - - 603 49490 36213 NET CHANGE IN INVESTMENT FMV10,511 12,495 - - - 603 49490 36232 DEVELOPER CONTRIBUTED ASSETS559,056 1,542,834 - - - 603 49490 38990 MISCELLANEOUS- 1,141 - - - 603 49490 39250 TRANSFER IN - CAPITAL ASSETS336,480 291,400 - - - TOTAL - NON OPERATING993,499 1,913,503 19,211 35,274 35,274 TOTAL - REVENUES 1,104,054 2,033,750 149,205 163,976 181,774 Expenses603 49490 119 PAYROLL ALLOCATION8,778 14,974 - 10,000 12,000 Reimbursement of Payroll - Storm Water Maintenance by Public WorksTOTAL - PERSONAL SERVICES8,778 14,974 - 10,000 12,000 603 49490 220 REPAIRS/MAINT SUPPLIES 270 2,681 - 3,000 3,000 Rip-Rap-Rock / Fabric60349490 292 CULVERTS419 (788) 13,795 10,000 10,000 TOTAL - SUPPLIES689 1,893 13,795 13,000 13,000 603 49490 301 LEGAL SERVICES - 38 - 500 500 603 49490 302 ENGINEERING FEES13,457 38,680 11,852 22,000 24,000 Stormwater Pollution Prevention Plan (SWPPP) + General Engineering603 49490 303 PLANNING FEES- 550 200 500 500 603 49490 315 GIS SERVICES- - - 1,000 1,000 60349490 355 DUES & MEMBERSHIPS1,050 1,370 1,440 1,400 1,500 LMC - Annual Stormwater Coalition Contribution603 49490 360 EDUCATION/TRANING/CONFERENCE- 925 500 1,000 1,000 60349490 361 LIABILITY AND PROPERTY INSURAN- - 151 - 157 Based on Actual 2025-2026 Premiums + 4% Inflation603 49490 390 CONTRACTED SERVICES1,000 2,000 2,920 2,500 3,300 See Detailed Attachment603 49490 441 LICENSES, TAXES & FEES4,618 2,422 3,012 5,000 5,000 TOTAL - SERVICES & OTHER CHARGES20,125 45,985 20,075 33,900 36,957 603 49490 500 CAPITAL OUTLAY (GENERAL)- - - - 28,000 Drum Mulcher Attachment for Excavator (Storm Pond Maintenance)603 49490 530 IMPROVEMENTS OTHER THAN BLDG- 28,374 - - - TOTAL - CAPITAL OUTLAY- 28,374 - - 28,000 603 49490 420 DEPRECIATION 194,776 244,275 - 225,000 265,000 603 49490 720 OPERATING TRANSFERS - - - -- TBD - Pending Review of Fleet CIP Stormwater AllocationTOTAL - OTHER194,776 244,275 - 225,000 265,000 TOTAL - EXPENSES 224,367 335,501 33,870 281,900 354,957 NET INCOME / (LOSS)879,686$ 1,698,249$ 115,334$ (117,924)$ (173,183)$ Change ($)(55,259) Change (%) 46.86%Fund 603 - Storm Water UtilityAccount NumberSTORM WATER - 1 City of OtsegoEnterprise Fund Budget - 2026Detail of Line Item RequestsStorm Water Utility Budget Budget2024 2025 Item Detail / Description Comments2,500$ 2,500$ Animal Trapping- 765 Quadient - Utility Bill Printing & Mailing Services (59% Allocation based on Revenue)- 35 Rounding Contingency + Inflationary Factor2,500 3,300 603-49490-390CONTRACTED SERVICESAccount No. & DescriptionY:\Budget\2026\Utility Funds\2026 UTILITY BUDGETS INPUT603-DetailSTORM WATER - 2 City of OtsegoProperty Tax Levy CalculationsPayable 2026Revised: October 24, 2025$% $% $%2024 2025 2026 Change Change 2026 Change Change 2026 Change Change CommentGeneral Fund 6,336,000 7,000,000 7,802,000 802,000 11.46% 7,802,000 802,000 11.46% 7,802,000 802,000 11.46%Tax Abatements 88,224 87,436 108,624 21,188 24.23% 108,624 21,188 24.23% 108,624 21,188 24.23%Debt ServiceSeries 2018A 102,144 104,308 106,314 2,006 106,314 2,006 106,314 2,006 Series 2020A 197,000 186,000 186,000 - 186,000 - 186,000 - Series 2024A - - 1,339,065 1,339,065 1,339,065 1,339,065 1,275,300 1,275,300 UPDATED - Staff to Review ChangesSub-total 299,144 290,308 1,631,379 1,341,071 461.95% 1,631,379 1,341,071 461.95% 1,567,614 1,277,306 439.98%Capital ReservesPavement Management 1,000,000 800,000 600,000 (200,000) 600,000 (200,000) 600,000 (200,000) Trails Management 70,000 76,000 82,000 6,000 82,000 6,000 82,000 6,000 Parks Equipment 400,000 425,000 450,000 25,000 450,000 25,000 450,000 25,000 Capital Equipment Revolving 550,393 587,937 613,954 26,017 613,954 26,017 613,954 26,017 Fire Reserve 210,000 - - - - - - - Fire Capital Revolving - 6,189 8,333 2,144 8,333 2,144 8,333 2,144 City Buildings & Property 35,000 120,000 130,000 10,000 130,000 10,000 130,000 10,000 Sub-total 2,265,393 2,015,126 1,884,287 (130,839) -6.49% 1,884,287 (130,839) -6.49% 1,884,287 (130,839) -6.49%Use of Fund Balances (220,152) (220,152) (220,152) (220,152) (220,152) (220,152) Grand Total 8,988,761 9,392,870 11,206,138 1,813,268 19.30% 11,206,138 1,813,268 19.30% 11,142,373 1,749,503 18.63%Growth (%) -3.66% 4.50%Tax Capacity 39,516,976 39,284,126 40,707,494 42,446,791 42,446,791 UPDATED - Per Wright CountyGrowth (%) 23.20% -0.59% 3.62% 8.05% 8.05%Net Tax Capacity 38,897,895 38,570,629 40,337,056 41,701,870 41,701,870 UPDATED - Per Wright CountyGrowth (%) 23.29% -0.84% 4.58% 8.12% 8.12%Tax Rate 23.109 24.352 27.781 26.872 26.719 Population 22,705 23,132 23,790 23,790 23,790 Source = MN State DemographerTax Levy Per Capita 396 406 471 471 468 Residential City Tax City Tax City Tax City TaxValuation Tax Capacity 2025 2026 Change ($) Change (%) 2026 Change ($) Change (%) 2026 Change ($) Change (%)200,000 1,715 418 476 58 13.88% 461 43 10.29% 458 40 9.57%300,000 2,805 683 779 96 14.06% 754 71 10.40% 749 66 9.66%402,500 3,922 955 1,090 135 14.14% 1,054 99 10.37% 1,048 93 9.74%500,000 4,985 1,214 1,385 171 14.09% 1,339 125 10.30% 1,332 118 9.72%600,000 6,250 1,522 1,736 214 14.06% 1,680 158 10.38% 1,670 148 9.72%Description 2024 2025 2026 Change ($) Change (%) 2026 Change ($) Change (%) 2026 Change ($) Change (%)Median Appraised Value 402,700 386,400 402,500 16,100 4.17% 402,500 16,100 4.17% 402,500 16,100 4.17%Less: MV Exclusion (997) (11,774) (10,325) (10,325) (10,325) Taxable Market Value 401,703 374,626 392,175 392,175 392,175 Tax Capacity 4,017 3,746 3,922 175 4.68% 3,922 175 4.68% 3,922 175 4.68%Taxing Estimated Estimated Estimated Estimated EstimatedAuthority Tax Tax Tax Change ($) Change (%) Tax Change ($) Change (%) Tax Change ($) Change (%)City of Otsego 928 912 1,090 178 19.52% 1,054 142 15.57% 1,048 136 14.91%Levy DescriptionCity Taxes Only. Bold valuation is the Median Value of all residential properties within the City and is provided by the Wright County Assessor. This range of values represents 92.8% of all residential homesteads within the City.City Taxes Only. Based on the Median Value for each respective year. Note: The formula for tax capacity changed in 2025 to due legislative changes for the Homestead Market Value Exclusion Program.Preliminary Levy - (9/22/2025) Preliminary Levy - UPDATED Tax Capacity Current Working LevyY:\Budget\2026\Property Taxes\Tax Levy Calculations (2026)2026-V3