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10/6/2025 - City Council - Regular - Agendas* The Consent Agenda lists those items of business which are routine, recommended for approval, and/or which need no discussion. The several separate items listed on the Consent Agenda are acted upon by one motion. There will be no separate discussion of these items unless a Council Member makes a request, in which event the item will be removed from the Consent Agenda and placed elsewhere on the regular agenda for Council discussion and action. ** Under Public Comment, individuals may address the City Council about any item not contained on the regular agenda. Each speaker should keep their statements to three minutes to allow sufficient time for others. The Council will take no official action on items discussed at the forum, except for referral to staff for future report. CITY OF SPRING PARK CITY COUNCIL AGENDA OCTOBER 6, 2025 – 6:00 PM SPRING PARK CITY HALL 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. PUBLIC COMMENT** Those wishing to speak must state their name and address for the record. Each person will have three (3) minutes to make their remarks unless Council allows more time. Speakers will address all comments to the City Council as a whole and not one individual councilmember. The Council may not take action on an item presented during the Public Comment period. When appropriate, the Council may refer inquiries and items brought up during the Public Comment period to the City Administrator for follow-up. 5. REQUESTS & PRESENTATIONS: 2026-2030 Rate Study – Justin Nilson, ABDO Solutions 6. CONSENT AGENDA* a. Regular City Council Meeting & Work Session Minutes – September 15, 2025 b. Approve Payroll, Expenditures, and Claims for Payment c. Approve City Clerk Hoffman’s Request for Reduced Hours to 32 Hrs./Week d. Special Event Permit #25-20: Pink Wave, Back Channel Brewing e. Approve Final Payment – Bituminous Roadways 7. ACTION AGENDA a. Approve ABDO Utility Rate Study 8. REPORTS a. Mayor & Council b. Staff 9. ANNOUNCEMENTS/MISCELLANEOUS (INFORMATION ONLY) a. October 8, 2025 – Planning Commission Meeting – 6:00PM b. October 20, 2025 – Regular City Council Meeting – 6:00PM c. October 20, 2025 – Council Work Session – 5:00PM d. November 3, 2025 – Regular City Council Meeting – 6:00PM 10. ADJOURNMENT City of Spring Park Utility Rate Study DRAFT 2 The rate study for all funds (Water and Sewer) is arrived at to ensure the City meets projected targeted cash reserves and a positive cashflow at the end of the plan in year 2030. •It should be noted the Water fund recommendation does meet the projected target reserve by 2030 but does not achieve positive cashflows until shortly thereafter. The Sewer fund recommendation does not meet the projected target reserve by 2030 but does achieve positive cashflows and is expected to achieve the projected target cash serve shortly thereafter. Target cash reserve is calculated and presented as 100% of the following years’ debt payments and 50% of projected operating expenses. Introduction DRAFT 3 •Future activity is arrived at by reviewing the three prior years actual ledger balances, and reviewing the 2025-2026 City outlined budgets. Some modifications were made for debt requirements, capital purchases, transfers and investment earnings agreed upon by management. •Operating and Payroll Expenses increasing 3% per year to keep up with future inflation. •Capital improvements/infrastructure, equipment, and other capital maintenance items have been identified in the City’s capital plan and are identified to be accounted for in the related enterprise fund. The City does have a few significant projects upcoming that are projected to require future debt issuance. •The average usage for residential and commercial customers is calculated at approximately 9,000 gallons/quarter. Charts and graphs were prepared using the calculated average by quarter. Key Assumptions DRAFT 4 Key Assumptions 2026 2027 2028 2029 2030 Water Sunset Drive - Water*1,000,000$ -$ -$ -$ -$ Water Lining - 100,000 100,000 100,000 100,000 Water Treatment (Filters and Software)- 50,000 50,000 50,000 50,000 Water Tower Maintenance*- 1,000,000 - - - Meter Reading Upgrades - 12,500 12,500 12,500 12,500 Total Water Fund Capital 1,000,000$ 1,162,500$ 162,500$ 162,500$ 162,500$ Average annual cost over a 5 year period 530,000$ Sewer Sunset Drive - Sewer*1,000,000$ -$ -$ -$ -$ Sewer Lining - 100,000 100,000 100,000 100,000 Lift Station Upgrades 100,000 75,000 75,000 75,000 75,000 Meter Reading Upgrades - 12,500 12,500 12,500 12,500 Total Sewer Fund Capital 1,100,000$ 187,500$ 187,500$ 187,500$ 187,500$ Average annual cost over a 5 year period 370,000$ * Debt Financed DRAFT 5 •Water •The scenario presented proposes a 20% increase to usage rates and 5% increase to fixed rates throughout the life of the plan (2026 – 2030). The recommended increase is made to ensure the City meets projected targeted cash reserves and a positive cashflow at the end of the plan in year 2030. It should be noted that even with the recommended increases the cashflow in 2030 is yet to reach positive cashflow but is expected shortly thereafter. •Sewer •20% increase to the base fee and 5% increase to both the per gallon usage fee and Met Council fee. throughout life of the plan (2026 – 2030). The recommended increase is made to ensure the City meets projected targeted cash reserves and a positive cashflow at the end of the plan in year 2030. It should be noted that even with the recommended increases the fund does not meet the target cash reserve by 2030 but is expected shortly thereafter. Important Reiteration: The recommended increases are made to ensure the City meets projected targeted cash reserves and a positive cashflow at the end of the plan . Utility Rate Recommendations DRAFT 6 Sample Residential Utility Bills – Current and Recommended Current 2026 2027 2028 USAGE - Gallons 9,000 01-00000123-00-1 SAMPLE CUSTOMER At X Drive Send Email Bill 001 RES WATER 63.27 70.47$ 78.84$ 88.60$ 003 RES SEWER 78.21 86.13 95.31 105.88 021 MET SEWER RES 51.30 53.91 56.61 59.4 050 RES TEST FEE 2.13 Cur Charges/Total 194.91 $210.51 $230.76 $253.88 Water 63.27 70.47 78.84 88.60 Sewer 129.51 140.04 151.92 165.28 DRAFT 7 Bill Projections Water Current Rates 2026 2027 2028 2029 2030 Proposed Change in Rates - Blended 11%12%12%13%13% Quarterly bill based on 9,000 gallons 63.27$ 70.47$ 78.84$ 88.60$ 100.00$ 113.36$ Quarterly $ increase for a 9,000 gallon user 7.20$ 8.37$ 9.76$ 11.40$ 13.36$ Annual $ increase for an average 9,000 gallon user 28.80$ 33.48$ 39.04$ 45.60$ 53.44$ Residential/Commercial Base fee 27.00 32.40 38.88 46.66 55.99 67.19 Per 1,000 gallons - 0 to 8,999 4.03 4.23 4.44 4.66 4.89 5.13 Per 1,000 - 9,000 to 17,999 gallons 6.05 6.35 6.67 7.00 7.35 7.72 Per 1,000 - 18,000+ gallons 8.06 8.46 8.88 9.32 9.79 10.28 DRAFT 8 Bill Projections Sewer Current Rates 2026 2027 2028 2029 2030 Proposed Change in Rates - Blended 8%8%9%9%10% Quarterly bill based on 9,000 gallons 129.51$ 140.04$ 151.92$ 165.28$ 180.55$ 198.05$ Quarterly $ increase for a 9,000 gallon user 10.53$ 11.88$ 13.36$ 15.27$ 17.50$ Annual $ increase for an average 9,000 gallon user 42.12$ 47.52$ 53.44$ 61.08$ 70.00$ Residential/Commercial Base fee 27.00 32.40 38.88 46.66 55.99 67.19 Per 1,000 gallons 5.69 5.97 6.27 6.58 6.91 7.26 Met Council Fee 5.70 5.99 6.29 6.60 6.93 7.28 DRAFT 9 Quarterly Billing Projections DRAFT 10 Questions?DRAFT 11 Water Fund Cash flow from operations and Target Reserve DRAFT 12 Water Fund Note positive cashflow or net increase in cash is still not achieved by 2030 as noted. Estimated Estimated Estimated Estimated Estimated Estimated 2025 2026 2027 2028 2029 2030 Projected rate increase Fixed 20%20%20%20%20% Usage 5%5%5%5%5% Cash receipts Receipts from customers 526,345$ 568,847$ 608,090$ 651,487$ 699,977$ 753,991$ Other receipts 82,877 89,543 127,392 94,427 91,660 90,140 Proceeds of long-term debt - 2,000,000 - - - - Total Cash Receipts 609,222 2,658,390 735,482 745,914 791,637 844,131 Cash disbursements Operating payments 362,394 374,082 386,161 398,644 411,549 424,888 Debt service payments 67,213 66,502 330,792 323,479 316,143 308,784 Acquisition of capital assets - 1,000,000 1,162,500 162,500 162,500 162,500 Total Cash Disbursements 429,607 1,440,584 1,879,453 884,623 890,192 896,172 Net Increase (Decrease) In Cash and Cash Equivalents 179,615 1,217,806 (1,143,971) (138,709) (98,555) (52,041) Cash and Cash Equivalents, January 1 1,344,208 1,523,823 2,741,629 1,597,658 1,458,949 1,360,394 Cash and Cash Equivalents, December 31 1,523,823$ 2,741,629$ 1,597,658$ 1,458,949$ 1,360,394$ 1,308,353$ DRAFT 13 Sewer Fund Cash flow from operations and Target Reserve Note the ending cash balance does not meet the target reserve by 2030. DRAFT 14 Sewer Fund Estimated Estimated Estimated Estimated Estimated Estimated 2025 2026 2027 2028 2029 2030 Projected rate increase Fixed Rate 20%20%20%20%20% Usage and Met Council 5%5%5%5%5% Cash receipts Receipts from customers 735,787$ 826,399$ 895,327$ 972,698$ 1,060,996$ 1,162,037$ Other receipts - 4,257 8,413 5,964 5,614 7,744 Proceeds of long-term debt - 1,000,000 - - - - Total Cash Receipts 735,787 1,830,656 903,740 978,662 1,066,610 1,169,781 Cash disbursements Operating payments 510,269 520,185 530,516 541,282 552,505 564,194 Debt service payments 71,201 71,916 267,385 261,520 255,608 249,649 Acquisition of capital assets - 1,100,000 187,500 187,500 187,500 187,500 Total Cash Disbursements 581,470 1,692,101 985,401 990,302 995,613 1,001,343 Net Increase (Decrease) In Cash and Cash Equivalents 154,317 138,555 (81,661) (11,640) 70,997 168,438 Cash and Cash Equivalents, January 1 (12,425) 141,892 280,447 198,786 187,146 258,143 Cash and Cash Equivalents, December 31 141,892$ 280,447$ 198,786$ 187,146$ 258,143$ 426,581$ DRAFT 15 Water Fund – Assuming Zero Percent Base Increase and 5% Usage Estimated Estimated Estimated Estimated Estimated Estimated 2025 2026 2027 2028 2029 2030 Projected rate increase Fixed 0%0%0%0%0% Usage 5%5%5%5%5% Cash receipts Receipts from customers 526,345$ 556,366$ 580,631$ 606,046$ 632,971$ 661,097$ Other receipts 82,877 89,543 127,017 93,217 89,051 85,442 Proceeds of long-term debt - 2,000,000 - - - - Total Cash Receipts 609,222 2,645,909 707,648 699,263 722,022 746,539 Cash disbursements Operating payments 362,394 374,082 386,161 398,644 411,549 424,888 Debt service payments 67,213 66,502 330,792 323,479 316,143 308,784 Acquisition of capital assets - 1,000,000 1,162,500 162,500 162,500 162,500 Total Cash Disbursements 429,607 1,440,584 1,879,453 884,623 890,192 896,172 Net Increase (Decrease) In Cash and Cash Equivalents 179,615 1,205,325 (1,171,805) (185,360) (168,170) (149,633) Cash and Cash Equivalents, January 1 1,344,208 1,523,823 2,729,148 1,557,343 1,371,983 1,203,813 Cash and Cash Equivalents, December 31 1,523,823$ 2,729,148$ 1,557,343$ 1,371,983$ 1,203,813$ 1,054,180$ DRAFT 16 Sewer Fund – Assuming Zero Percent Base Increase and 5% Usage, 5% Met Council Estimated Estimated Estimated Estimated Estimated Estimated 2025 2026 2027 2028 2029 2030 Projected rate increase Fixed Rate 0%0%0%0%0% Usage and Met Council 5%5%5%5%5% Cash receipts Receipts from customers 735,787$ 795,785$ 827,976$ 861,238$ 896,642$ 934,186$ Other receipts - 4,257 7,495 2,997 - - Proceeds of long-term debt - 1,000,000 - - - - Total Cash Receipts 735,787 1,800,042 835,471 864,235 896,642 934,186 Cash disbursements Operating payments 510,269 520,185 530,516 541,282 552,505 564,194 Debt service payments 71,201 71,916 267,385 261,520 255,608 249,649 Acquisition of capital assets - 1,100,000 187,500 187,500 187,500 187,500 Total Cash Disbursements 581,470 1,692,101 985,401 990,302 995,613 1,001,343 Net Increase (Decrease) In Cash and Cash Equivalents 154,317 107,941 (149,930) (126,067) (98,971) (67,157) Cash and Cash Equivalents, January 1 (12,425) 141,892 249,833 99,903 (26,164) (125,135) Cash and Cash Equivalents, December 31 141,892$ 249,833$ 99,903$ (26,164)$ (125,135)$ (192,292)$ DRAFT All meetings of the Spring Park City Council are video recorded and available for viewing online at www.ci.spring-park.mn.us or Spring Park | Lake Minnetonka Cable Commission (lmcc-tv.org). Meeting minutes are intended to be a general synopsis of the meetings of the City Council. Additional detail regarding discussions and policy considerations is provided by watching the recording of the meeting. CITY OF SPRING PARK CITY COUNCIL MINUTES SEPTEMBER 15, 2025 – 6:00 PM SPRING PARK CITY HALL 1. CALL TO ORDER The meeting was called to order at 6:00p.m. Council Present: Mayor Chase, Council Member’s Sippel, Suttle and Turner were present. Council Member Horton was absent. Staff Present: City Administrator Anderson, City Engineer Morast, City Planner WSB 2. PLEDGE OF ALLEGIANCE Mayor Chase led the audience to recite the Pledge of Allegiance. 3. APPROVAL OF AGENDA Council Member Sippel motioned, being seconded by Council Member Suttle, to approve the agenda as amended removing item 7b. Approving Quote for New Wreaths and replacing with Ordinance #25-04: Creating Chapter 43: Subdivisions and Platting. On vote being taken, the motion was unanimously approved. 4. PUBLIC COMMENT: None 5. REQUESTS & PRESENTATIONS: a. Mike Mason – Noise Ordinance Recommandation (18-125). Resident Mike Mason reviewed his suggestions to change the language in the noise ordinance code to include moving trucks and idling vehicles. 6. CONSENT AGENDA* a. Regular City Council Meeting Minutes – September 2, 2025 b. Approve Payroll, Expenditures, and Claims for Payment c. Special Event Permit #25-19: Back Channel - Ultimate Vikings Game Day Experience d. Resolution #25-10: Premises Permit for Lawful Gambling – NW Tonka Lions-Back Channel Brewing Council Member Sippel motioned, being seconded by Council Member Suttle, to approve the consent agenda as presented. On vote being taken, the motion was unanimously approved. 7. ACTION AGENDA a. Accepting Snow Removal Contract – Larson Lawnscape Mayor Chase motioned, being seconded by Council Member Sippel, to table the snow removal contract with Larson Lawnscape until the October meeting and until the contract language includes limiting salt distribution. On vote being taken, the motion was unanimously approved. Approving Quote for New Wreaths – removed from agenda. b. Ordinance #25-04: Creating Chapter 43: Subdivisions and Platting Council Member Sippel motioned, being seconded by Council Member Suttle, to rescind Ordinance #25-03: Amending Chapter 42: Article 111, Section 42-105 and replacing with Ordinance #25-04: Creating Chapter 43 Subdivisions and Platting. On vote being taken, the motion was unanimously approved. All meetings of the Spring Park City Council are video recorded and available for viewing online at www.ci.spring-park.mn.us or Spring Park | Lake Minnetonka Cable Commission (lmcc-tv.org). Meeting minutes are intended to be a general synopsis of the meetings of the City Council. Additional detail regarding discussions and policy considerations is provided by watching the recording of the meeting. 8. REPORTS a. Mayor & Council - none b. Staff - none 9. ANNOUNCEMENTS/MISCELLANEOUS (INFORMATION ONLY) a. October 6, 2025 – Regular City Council Meeting – 6:00PM b. October 8, 2025 – Planning Commission Meeting – 6:00PM c. October 20, 2025 – Regular City Council Meeting – 6:00PM d. October 20, 2025 – Council Work Session – 5:00PM 10. ADJOURNMENT There being no further discussion, Council Member Sippel motioned, being seconded by Council Member Suttle, to adjourn the meeting at 6:19p.m. On vote being taken, the motion was unanimously approved. Respectfully submitted, Jamie Hoffman, City Clerk CITY OF SPRING PARK WORK SESSION MINUTES SEPTEMBER 15, 2025 – 5:00 PM SPRING PARK CITY HALL (Work Session discussion times are approximate) 1. 5:00: Rhonda Nelson – Gillespie Center Rhonda Nelson presented a year-end review for the center and thanked the Council for the prior donation. Council Member Sippel again requested the usage data for Spring Park residents and Rhonda said she would provide. For 2026, she requested a donation of $5,000.00 and the Council unanimously agreed. 2. 5:20: Sunset Drive Update – Moore Engineering John Morast said the reclamite application went well and he was pleased with the results. Regarding Sunset, he has calls into Amber regarding the retaining wall wondering if it can be included in the LRIP. Council Member Sippel stated his concern about the retaining wall was the design and whether it can effectively allow for proper snow removal. Sippel also asked about the status of the undergrounding of utilities. Morast said he met with Xcel for a utility coordination meeting and was waiting for their feedback on his drawing and placement of the lines. Administrator Anderson said the construction would not begin until later in the 4th quarter. 3. 5:40: Special Event Permit Process Staff will come up with a recommendation on process and fees for the SPEV permits. 4. 5:55: Miscellaneous Council agreed to the part-time request from City Clerk Hoffman for a trial period to be officially approved at the October 6th meeting. Council Member Sippel requested a monthly building permit report to be included in the packet. 5. 6:00: Adjourn After no further discussion, the work session was adjourned at 6:00PM. *Check Summary Register© CITY OF SPRING PARK 10/02/25 3:07 PM Page 1 Batch: 100625PAY Name Check Date Check Amt 10100 Wells Fargo Bank NA 34429 CITY OF BLOOMINGTON 10/2/2025 $28.00 Aug 25' Water Testing Fees 34430 CATALIS LLC 10/2/2025 $2,114.00 Website Management 3/1/25-2/29/26 34431 CORRECTIVE ASPHALT MATERI 10/2/2025 $14,586.00 Reclamite application for Warren, West Arm an 34432 ECM PUBLISHERS, INC.10/2/2025 $34.40 Oct. 8, 2025 Public Hearing Proposed Subdivis 34433 HAWKINS, INC.10/2/2025 $2,004.49 Purchased Chemicals for WTP 34434 LAKESIDE NETWORKS 10/2/2025 $175.00 Internet Service from 9/26/25-10/25/25 34435 MOORE ENGINEERING, INC 10/2/2025 $3,476.25 Eng. Services for Sunset Drive Utility Design 34436 XIONG, PATRIA 10/2/2025 $244.80 Mileage Reim. For 2025 MNGFOA Conference 34437 SECURITY & SOUND CO 10/2/2025 $195.00 Service call and labor to fix access control 34438 SHAUGHNESSY LAWN CARE 10/2/2025 $1,142.86 Clean Up and Mowing Services August 15 - Se 34439 SOLUTION BUILDERS, INC.10/2/2025 $1,759.75 APC replacement battery cartridge - 2 yr warra 34440 THE STANDARD INSURANCE CO 10/2/2025 $5.10 Sept. 25' Life Insurance Premium 34441 UNICLEAN CLEANROOM SERVIC 10/2/2025 $126.48 Rug rental services 08/31/25-09/27/25 34442 WSB & ASSOCIATES, INC.10/2/2025 $1,939.75 August 25' Planning Services - General Plannin 34443 XCEL ENERGY 10/2/2025 $100.75 Electric Usage 8/25/25-9/24/25 Total Checks $27,932.63 Batch: 100625PAY Page 1 10/02/25 3:09 PMCITY OF SPRING PARK *Check Detail Register© Amount CommentInvoiceCheck #Check Date Vendor Name 10100 Wells Fargo Bank NA 34429 10/02/25 CITY OF BLOOMINGTON $28.00 Aug 25' Water Testing FeesTesting Fees 25484E 601-49400-306 $28.00Total 34430 10/02/25 CATALIS LLC $704.68 Website Management 3/1/25-2/29/26IT Technology Support INV30835979E 101-41500-330 $704.66 Website Management 3/1/25-2/29/26IT Technology Support INV30835979E 601-49400-330 $704.66 Website Management 3/1/25-2/29/26IT Technology Support INV30835979E 602-49450-330 $2,114.00Total 34431 10/02/25 CORRECTIVE ASPHALT MATERIALS LLC $14,586.00 Reclamite application for Warren, West Arm and Black Lake Repairs/Maint Streets/Str 25139MNE 101-43100-402 $14,586.00Total 34432 10/02/25 ECM PUBLISHERS, INC. $34.40 Oct. 8, 2025 Public Hearing Proposed SubdivisionLegal Notices Publishing 1067300E 101-41600-351 $34.40Total 34433 10/02/25 HAWKINS, INC. $20.00 Purchased Chemicals for WTPChemicals and Chem Pro 7196680E 601-49400-216 $1,984.49 Purchased Chemicals for WTPChemicals and Chem Pro 7206543E 601-49400-216 $2,004.49Total 34434 10/02/25 LAKESIDE NETWORKS $58.34 Internet Service from 9/26/25-10/25/25Internet Service 003496E 101-42000-324 $58.33 Internet Service from 9/26/25-10/25/25Internet Service 003496E 601-49400-324 $58.33 Internet Service from 9/26/25-10/25/25Internet Service 003496E 602-49450-324 $175.00Total 34435 10/02/25 MOORE ENGINEERING, INC $3,476.25 Eng. Services for Sunset Drive Utility DesignSunset Drive - Improv. Pro 41937E 201-43100-536 $3,476.25Total 34436 10/02/25 XIONG, PATRIA $244.80 Mileage Reim. For 2025 MNGFOA ConferenceOther Miscellaneous 2025MNGFOE 101-41500-437 $244.80Total 34437 10/02/25 SECURITY & SOUND CO $195.00 Service call and labor to fix access controlContracted Services 30200E 101-41900-310 $195.00Total 34438 10/02/25 SHAUGHNESSY LAWN CARE $1,142.86 Clean Up and Mowing Services August 15 - Sept 15, 2025 Contracted ServicesE 101-45200-310 $1,142.86Total 34439 10/02/25 SOLUTION BUILDERS, INC. $113.98 APC warrant extensionOther Miscellaneous 11492E 101-41500-437 $641.25 New quote request for WTPIT Technology Support 11544E 601-49400-330 $250.34 Nov. 25' Managed IT ServicesComputer Support/Supplie 11609E 101-41500-207 Batch: 100625PAY Page 2 10/02/25 3:09 PMCITY OF SPRING PARK *Check Detail Register© Amount CommentInvoiceCheck #Check Date Vendor Name $250.33 Nov. 25' Managed IT ServicesComputer Support/Supplie 11609E 601-49400-207 $250.33 Nov. 25' Managed IT ServicesComputer Support/Supplie 11609E 602-49450-207 $253.52 APC replacement battery cartridge - 2 yr warrantyOffice Supplies 11706E 101-41500-200 $1,759.75Total 34440 10/02/25 THE STANDARD INSURANCE COMPANY $1.70 Sept. 25' Life Insurance PremiumPERA/FICA/Hosp Ins Sept2025E 101-41500-121 $1.70 Sept. 25' Life Insurance PremiumPERA/FICA/Hosp Ins Sept2025E 601-49400-121 $1.70 Sept. 25' Life Insurance PremiumPERA/FICA/Hosp Ins Sept2025E 602-49450-121 $5.10Total 34441 10/02/25 UNICLEAN CLEANROOM SERVICES $126.48 Rug rental services 08/31/25-09/27/25Contracted Services 216008E 101-41900-310 $126.48Total 34442 10/02/25 WSB & ASSOCIATES, INC. $1,311.00 August 25' Planning Services - General Planning/Zoning Admin Contracted Services R-026595-00E 101-41910-310 $628.75 August 25' Planning Services - Lake MTKA ShoresContracted Services R-026595-00E 101-41910-310 $1,939.75Total 34443 10/02/25 XCEL ENERGY $100.75 Electric Usage 8/25/25-9/24/25Utilities/Electric/Gas 1218013702E 101-41900-381 $100.75Total 10100 $27,932.63 Fund Summary 10100 Wells Fargo Bank NA 101 GENERAL FUND $19,752.60 201 PUBLIC IMPROV REVOLVING FUND $3,476.25 601 WATER FUND $3,688.76 602 SEWER FUND $1,015.02 $27,932.63 City of Spring Park 4349 WARREN AVENUE, SPRING PARK, MINNESOTA 55384-9711 (952) 471-9051 FAX (952) 471-9160 WWW.CI.SPRING-PARK.MN.US Staff Memo Date: October 6, 2025 To: City Council From: Jamie Hoffman, City Clerk Subject: Part-Time Hours Request – 40 Hours/Week to 32 Hours Per Week Requesting Council approval for reduced hours/week from 40 hours to 32 hours. Initially this will be on a trial basis until the end of 2025. If there are no coverage issues, the schedule will remain in place moving forward. City Hall hours are Mon-Thurs. 7:30-5:00 and Friday, 7:30-11:30. With 9-hour days other than Friday, the easiest reduced schedule is Monday – Thursday, 8:30 – 5:00, with Fridays off. My work responsibilities will be met without overflowing to the other staff members and include flexibility when needed for coverage for other staff members and during other times when needed such as elections. Thank you! Jamie STAFF MEMO SPECIAL EVENT BACK CHANNEL BREWING PINK WAVE OCTOBER 11, 2025 1. BACKGROUND: Back Channel Brewing has submitted a special event permit application for a special event to take place October 11, 2025 from 2:00 - 8:00pm. In parentship with Hope Chest, the event is a fundraiser for breast cancer to include a DJ, vendor fair, and live auction. 2. DISCUSSION: The request for outdoor music (including music played by a DJ) requires a special event permit. The music will take place between 2:00p.m. and 8:00p.m. and complies with Section 18-122 of the Spring Park City Code. Any alcoholic beverages being taken outside of the principal building or patio area shall be limited to a defined area. At no point shall any alcoholic beverages be allowed outside of the outdoor patio area, the extended area demarcated by barriers, or the principal building. The event organizers will coordinate with the Mound Fire Department and Orono Police Department prior to the event to ensure that all necessary safety precaution s have been put into place. 3. FINANCIAL & SAFETY CONSIDERATIONS: All required permit fees have been received and both the Orono Police and Mound Fire have approved these events without concern. 4. RECOMMENDED ACTION: Approve Special Event Application No.#25-20, Pink Wave for Back Channel Brewing. From 1. 2. 3. 4. 5. a.X b.X c. 6. 7. 8. 9. Payment Recommended By Engineer $ Payment Approved by Owner $ Title:Title: Date:Date: Approved by Funding Agency By:By: Title:Title: Date:Date: Recommended by Engineer Approved by Owner By:By: Contractor: Signature:Date: (Line 8 or other - attach explanation of the other amount) Contractor's Certification The undersigned Contractor certifies, to the best of its knowledge, the following: (1) All previous progress payments received from Owner on account of Work done under the Contract have been applied on account to discharge Contractor's legitimate obligations incurred in connection with the Work covered by prior Applications for Payment; (2) Title to all Work, materials and equipment incorporated in said Work, or otherwise listed in or covered by this Application for Payment, will pass to Owner at time of payment free and clear of all liens, security interests, and encumbrances (except such as are covered by a bond acceptable to Owner indemnifying Owner against any such liens, security interest, or encumbrances); and (3) All the Work covered by this Application for Payment is in accordance with the Contract Documents and is not defective. Amount due this application 5,847.35$ Balance to finish, including retainage (Line 3 - Line 6)9,409.69$ 5,847.35 (Line 8 or other - attach explanation of the other amount) Total Retainage (Line 5.a + Line 5.b)-$ Amount eligible to date (Line 4 - Line 5.c)292,367.31$ Less previous payments (Line 6 from prior application)286,519.96$ $ 292,367.31 Work Completed -$ $ - Stored Materials -$ Total Work completed and materials stored to date (Sum of Column J Unit Price Total)292,367.31$ Retainage Original Contract Price 301,777.00$ Net change by Change Orders -$ Current Contract Price (Line 1 + Line 2)301,777.00$ Application Period:8/30/2024 to 10/17/2024 Contract:2024 Mill and Overlay Application No.:3-FINAL Application Date:10/17/2024 Contractor:Bituminous Roadways, Inc.Contractor's Project No.: Project: Contractor's Application for Payment Owner:City of Spring Park Owner's Project No.: Engineer:Moore Engineering, Inc.Engineer's Project No.:23671C EJCDC C-620 Contractor's Application for Payment (c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved. Owner: Engineer:23671C Contractor: Project: Contract: Application No.:3-FINAL Application Period: From 8/30/2024 to 10/17/2024 10/17/2024 A C D E F G H I J K L Current Item Quantity Units Unit Price ($) Value of Bid Item (C X E) ($) Estimated Quantity Installed This Period Estimated Quantity Incorporated in the Work Value of Work Completed to Date (E X G) ($) A - Mill and Overlay 1 1.0000 MOBILIZATION 1.00 LS 7,000.00$ 7,000.00$ 1.00 7,000.00$ 7,000.00$ 100%-$ 2 2.00 2" MILL BITUMINOUS PAVEMENT 6,400.00 2%3.00$ 19,200.00$ 5,900.00 17,700.00$ 17,700.00$ 92%1,500.00$ 3 3.00 TYPE SP 9.5 WEARING COURSE MIXTURE (3,B)715.00 TON 106.00$ 75,790.00$ 645.31 68,402.86$ 68,402.86$ 90%7,387.14$ B - Curb, Gutter, and Utilities 0.00 4 4.00 MOBILIZATION 1.00 LS 8,000.00$ 8,000.00$ 1.00 8,000.00$ 8,000.00$ 100%-$ 5 5.00 REMOVE CURB AND GUTTER 27.00 LF 10.00$ 270.00$ 41.00 410.00$ 410.00$ 152%(140.00)$ 6 6.00 REMOVE PAVEMENT 1,606.00 SY 18.00$ 28,908.00$ 1,335.33 24,035.94$ 24,035.94$ 83%4,872.06$ 7 7.00 AGGREGATE BASE (CV) CLASS 5 275.00 CY 52.00$ 14,300.00$ 342.16 17,792.32$ 17,792.32$ 124%(3,492.32)$ 8 8.00 12" RC PIPE CULVERT CLASS III 72.00 LF 110.00$ 7,920.00$ 72.00 7,920.00$ 7,920.00$ 100%-$ 9 9.00 CONNECT TO EXISTING MANHOLES 1.00 EACH 1,400.00$ 1,400.00$ 1.00 1,400.00$ 1,400.00$ 100%-$ 10 10.00 CONST DRAINAGE STRUCTURE DESIGN G 1.00 EACH 5,200.00$ 5,200.00$ 1.00 5,200.00$ 5,200.00$ 100%-$ 11 11.00 CONCRETE CURB AND GLJTTER DESIGN B618 937.00 LF 55.00$ 51,535.00$ 781.00 42,955.00$ 42,955.00$ 83%8,580.00$ 12 12.00 CONCRETE CURB & GUTTER DESIGN D412 200.00 LF 75.00$ 15,000.00$ 405.50 30,412.50$ 30,412.50$ 203%(15,412.50)$ 13 13.00 6" CONCRETE DRIVEWAY PAVEMENT 274.00 SY 85.00$ 23,290.00$ 232.33 19,748.05$ 19,748.05$ 85%3,541.95$ 14 14.00 7" CONCRETE VALLEY GUTTER 132.00 SY 105.00$ 13,860.00$ 136.00 14,280.00$ 14,280.00$ 103%(420.00)$ 15 15.00 4" TYPE SP 9.5 WEARING COURSE MIXTURE (2,B)214.00 TON 136.00$ 29,104.00$ 191.99 26,110.64$ 26,110.64$ 90%2,993.36$ 16 16.00 TEMPORARY EROSION CONTROL 1.00 LS 1,000.00$ 1,000.00$ 1.00 1,000.00$ 1,000.00$ 100%-$ *Bolded "Current Item Quantity" indicates a change due to a Change Order Original Contract Totals 301,777.00$ 292,367.31$ -$ 292,367.31$ 0%9,409.69$ 301,777.00$ 292,367.31$ -$ 292,367.31$ 97%9,409.69$ Additions Deductions Net Change Change Order No. [1]-$ -$ -$ Change Order No. [2]-$ -$ -$ Change Order No. [3]-$ -$ -$ -$ -$ -$ Current Contract and Change Orders Project Totals Change Order Summary Change Order Totals Current Contract % of Value of Item (J / F) (%) Balance to Finish (F - J) ($) B Bid Item No.Description Contract Information Work Completed Materials Currently Stored (not in G) ($) Work Completed and Materials Stored to Date (H + I) ($) Application Date: Progress Estimate - Unit Price Work Contractor's Application for Payment City of Spring Park Owner's Project No.: Moore Engineering, Inc.Engineer's Project No.: Bituminous Roadways, Inc.Contractor's Project No.: 2024 Mill and Overlay Unit Price 3-FINAL EJCDC C-620 Contractor's Application for Payment (c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved.2 of 2 2025 - 2030 Utility Rate Study City of Spring Park Spring Park, Minnesota DRAFT City of Spring Park, Minnesota 2025 - 2030 Utility Rate Study Memo Table of Contents Page No. Introductory Section Assumptions and Future Actions 4 Financial Section Scenario 1 – Recommended Increases and Implementation of Water Conservation Tiers Water Fund Cash Flow Projections - Detailed 8 Cash Flow Projections - Summary 9 Sewer Fund Cash Flow Projections - Detailed 10 Cash Flow Projections - Summary 11 Future Debt Principal and Interest Water Fund Cash Flow From Operations 12 Cash Balances Including Target Cash Reserves 12 Future Debt Principal and Interest 12 Sewer Fund Cash Flow From Operations 12 Cash Balances Including Target Cash Reserves 13 Future Debt Principal and Interest 13 Other Quarterly Utility Bill Residential - Current and Future (Average Usage at 9,000 Gallons) 15 Capital Improvement Plan) 15 DRAFT 2 INTRODUCTORY SECTION CITY OF SPRING PARK, MINNESOTA 2025 - 2030 UTILITY RATE STUDY DRAFT 3 NEED DATE Honorable Mayor and City Council City of Spring Park Introduction We have prepared the attached 2025 - 2030 Utility Rate Study for the City that is intended to give a big picture view of the financial status of the Water and Sewer Enterprise funds as they stand currently and how forecasted assumptions will change things six years from now. We have not examined the projection and do not express an opinion or any other form of assurance on the accompanying schedules or assumptions. Furthermore, there will usually be differences between the forecasted and actual results because events and circumstances frequently do not occur as expected and those differences may be material. We have no responsibility to update this report for events and circumstances occurring after the date of this report. The City’s assumptions made are as follows: Assumptions - Forecasting • The recommended scenario for all funds (Water and Sewer) is arrived at to ensure the City meets projected targeted cash reserves and a positive cashflow at the end of the plan in year 2030. It should be noted the Water fund recommendation does meet the projected target reserve by 2030 but does not achieve positive cashflows until shortly thereafter. The Sewer fund recommendation does not meet the projected target reserve by 2030 but does achieve positive cashflows and is expected to achieve the projected target cash serve shortly thereafter. • Target cash reserve is calculated and presented as 100% of the following years’ debt payments and 50% of projected operating expenses. • The prior three years actual ledger balances were used for projecting 2025 activity and beyond. For cashflow purposes, some modifications were made for debt requirements, capital assets and depreciation, and grant receipts reviewed with management. o 2025 activity is also projected using the prior three years actual ledger balances while also comparing to the unaudited current activity known from the general ledger so far. Balances are compared and reviewed for relative accuracy without knowing actuals for accrual and year-end adjustments. •Operating expenses as well as certain operating revenues (unrelated to customer billings) will increase by a 3.0 percent inflation. Salary and benefit expenditures will also increase at 3.0 percent per year. No material changes to employee wage allocations or new enterprise fund positions have been incorporated. •Met Council charges are forecasted to remain consistent due to management estimates for current and future Sewer usage. •Interest earned on cash held in the City’s name is assumed to earn interest at a rate of 3.0 percent. DRAFT 4 Assumptions – Forecasting (Continued) • Capital improvements/infrastructure, equipment, and other capital maintenance items have been identified in the City’s capital plan and are identified to be accounted for in the related enterprise fund. All purchases are assumed to be purchased with debt proceeds due to the low cash reserves on hand. o The City does have a plan for bonding for some larger project costs during the year 2026. The bonds are expected to pay for the Water and Sewer portion of Sunset Drive and Water Tower Maintenance, specifically. o Debt is assumed to be issued in the amount of $2,000,000 for Water and $1,000,000 for Sewer in 2026. The bonds are assumed to be issued for 20 years at a 4.0% interest rate. o In the current assumptions there are no capital assets expected in 2025. • The assumptions include no new connection fees and similarly, no new residents to be billed in the future. • The average usage for residential customers is calculated at approximately 9,000 gallons/quarter. Charts and graphs were prepared using the calculated average and presented at that amount. • The City rate structure tiers were reviewed and recommended to remain consistent to ensure average users are at or near the first billing tier. Assumptions - Other • The City’s has significant infrastructure projects that are expected to take place in the near future. More information about the project is below. o Reconstruction of Sunset Drive is a project expected in 2026 and will require significant capital expenses for both the Water and Sewer funds. The City is also planning for $1,000,000 of approximate expenses in the Water fund for Water Tower Maintenance. o Future payment schedules for the new bonds noted above were prepared with the assumption of 20-year financing, at 4.0%. This estimate is significant for the resources needed in future years and any changes to the financing year, amount, and/or interest rate could have a significant impact on future projections. Water Fund • The recommended scenario has no projected change to the Water rate structure, but increases are recommended for future rates. The current and future recommended rates are outlined below. Current Rates 2026 2027 2028 2029 2030 Proposed Change in Rates - Blended 11%12%12%13%13% Quarterly bill based on 9,000 gallons 63.27$ 70.47$ 78.84$ 88.60$ 100.00$ 113.36$ Quarterly $ increase for a 9,000 gallon user 7.20$ 8.37$ 9.76$ 11.40$ 13.36$ Annual $ increase for an average 9,000 gallon user 28.80$ 33.48$ 39.04$ 45.60$ 53.44$ Residential/Commercial Base fee 27.00 32.40 38.88 46.66 55.99 67.19 Per 1,000 gallons - 0 to 8,999 4.03 4.23 4.44 4.66 4.89 5.13 Per 1,000 - 9,000 to 17,999 gallons 6.05 6.35 6.67 7.00 7.35 7.72 Per 1,000 - 18,000+ gallons 8.06 8.46 8.88 9.32 9.79 10.28 DRAFT 5 Water Fund (Continued) • The recommended scenario presented reviews the overall financial impact of the change in tiers and includes the following rate increase recommendations: ▪ 20% increase to usage rates and 5% increase to fixed rates throughout the life of the plan (2026 – 2030). The recommended increase is made to ensure the City meets projected targeted cash reserves and a positive cashflow at the end of the plan in year 2030. It should be noted that even with the recommended increases the cashflow in 2030 is yet to reach positive cashflow but is expected to shortly thereafter. Sewer Fund • The recommended scenario has no projected change to the Sewer rate structure but increases are recommended for future rates. The current and future recommended rates are outlined below. Current Rates 2026 2027 2028 2029 2030 Proposed Change in Rates - Blended 8%8%9%9%10% Quarterly bill based on 9,000 gallons 129.51$ 140.04$ 151.92$ 165.28$ 180.55$ 198.05$ Quarterly $ increase for a 9,000 gallon user 10.53$ 11.88$ 13.36$ 15.27$ 17.50$ Annual $ increase for an average 9,000 gallon user 42.12$ 47.52$ 53.44$ 61.08$ 70.00$ Residential/Commercial Base fee 27.00 32.40 38.88 46.66 55.99 67.19 Per 1,000 gallons 5.69 5.97 6.27 6.58 6.91 7.26 Met Council Fee 5.70 5.99 6.29 6.60 6.93 7.28 • The recommended scenario presented reviews the overall financial impact of the change in tiers and includes the following rate increase recommendations: ▪ 20% increase to the base fee and 5% increase to both the per gallon usage fee and Met Council fee. throughout life of the plan (2026 – 2030). The recommended increase is made to ensure the City meets projected targeted cash reserves and a positive cashflow at the end of the plan in year 2030. It should be noted that even with the recommended increases the fund does not meet the target cash reserve by 2030 but is expected to shortly thereafter. Things to Consider with Future Action • The recommended scenario ensures the City is working towards the cash reserves and cashflows absent any new debt and capital assets based on the assumptions. The recommended increases below are aimed towards keeping up with inflation and the additional debt service requirements for the completed infrastructure projects. Other scenarios are presented for informational use and comparison. • Actual project costs should be reviewed and monitored for any changes. Any significant change in expenditure or debt projections could have an impact on recommended rates. • Currently all activity and rate structure change is consistent for both residential and commercial and can be reviewed with future management directions if different structures are necessary for commercial users. Sincerely, Abdo Financial Solutions Minneapolis, Minnesota NEED DATE DRAFT 6 FINANCIAL SECTION CITY OF SPRING PARK, MINNESOTA 2025 - 2030 UTILITY RATE STUDY DRAFT 7 City of Spring Park, Minnesota Water Fund Cash Flow Projections - Detailed For the Years Ending December 31, 2025 through 2030 Estimated Estimated Estimated Estimated Estimated Estimated 2022 2023 2024 2025 2026 2027 2028 2029 2030 Projected Rate Increase Fixed Rates 20%20%20%20%20% Usage Rates 5%5%5%5%5% Cash Flows from Operating Activities Receipts from customers and users 368,441$ 441,940$ 496,436$ 526,345$ 568,847$ 608,090$ 651,487$ 699,977$ 753,991$ Other receipts - 34,376 41,294 42,551 43,828 45,143 46,497 47,892 49,328 Payments to suppliers/service providers (211,577) (242,751) (356,162) (246,199) (253,585) (261,193) (269,028) (277,099) (285,412) Payments to employees (109,709) (95,619) (110,490) (116,195) (120,497) (124,968) (129,616) (134,450) (139,476) Net Cash from Operating Activities 47,155 137,946 71,078 206,502 238,593 267,072 299,340 336,320 378,431 Cash Flows from Noncapital Financing Activities Transfers in - 32,779 - - - - - - - Intergovernmental 579,999 - - - - - - - - Net Cash from Noncapital Financing Activities 579,999 32,779 - - - - - - - Cash Flows from Capital and Related Financing Activities Acquisition of capital assets (83,717) (249,784) (113,431) - (1,000,000) (1,162,500) (162,500) (162,500) (162,500) Capital contributions to other funds - (501,366) - - - - - - - Proceeds of bonds issued 916,123 - - - 2,000,000 - - - - Principal paid on long-term debt (56,250) (57,500) (111,500) (62,500) (63,750) (191,250) (191,250) (191,250) (191,250) Interest paid on long-term debt (47,664) (38,615) (33,754) (4,713) (2,752) (139,542) (132,229) (124,893) (117,534) Net Cash from Capital and Related Financing Activities 728,492 (847,265) (258,685) (67,213) 933,498 (1,493,292) (485,979) (478,643) (471,284) Cash Flows from Investing Activities Investment earnings and other (2,340) 41,857 23,594 40,326 45,715 82,249 47,930 43,768 40,812 Net Increase (Decrease) in Cash and Cash Equivalents 1,353,306 (634,683) (164,013) 179,615 1,217,806 (1,143,971) (138,709) (98,555) (52,041) Cash and Cash Equivalents, January 1 789,598 2,142,904 1,508,221 1,344,208 1,523,823 2,741,629 1,597,658 1,458,949 1,360,394 Cash and Cash Equivalents, December 31 2,142,904$ 1,508,221$ 1,344,208$ 1,523,823$ 2,741,629$ 1,597,658$ 1,458,949$ 1,360,394$ 1,308,353$ Target Cash Reserve 265,300$ 378,580$ 248,410$ 253,543$ 523,873$ 522,801$ 521,918$ 521,228$ 502,240$ Projected Cash in Excess of Target 1,877,604$ 1,129,641$ 1,095,798$ 1,270,280$ 2,217,757$ 1,074,857$ 937,032$ 839,166$ 806,114$ Average Quarterly Bill (9,000 Gallons)63.27$ 70.47$ 78.84$ 88.60$ 100.00$ 113.36$ Average Percentage Increase 11%12%12%13%13% Average Quarterly Dollar Increase 7.20$ 8.37$ 9.76$ 11.40$ 13.36$ Average Annual Dollar Increase 28.80$ 33.48$ 39.04$ 45.60$ 53.44$ Five Year Average Capital Expenses 530,000$ Actual Results Rate Study Projections DRAFT 8 City of Spring Park, Minnesota Water Fund Cash Flow Projections - Summary For the Years Ending December 31, 2025 through 2030 Estimated Estimated Estimated Estimated Estimated Estimated 2025 2026 2027 2028 2029 2030 Projected rate increase Fixed Rate 20%20%20%20%20% Usage 5%5%5%5%5% Cash receipts Receipts from customers 526,345$ 568,847$ 608,090$ 651,487$ 699,977$ 753,991$ Other receipts 82,877 89,543 127,392 94,427 91,660 90,140 Proceeds of long-term debt - 2,000,000 - - - - Total Cash Receipts 609,222 2,658,390 735,482 745,914 791,637 844,131 Cash disbursements Operating payments 362,394 374,082 386,161 398,644 411,549 424,888 Debt service payments 67,213 66,502 330,792 323,479 316,143 308,784 Acquisition of capital assets - 1,000,000 1,162,500 162,500 162,500 162,500 Total Cash Disbursements 429,607 1,440,584 1,879,453 884,623 890,192 896,172 Net Increase (Decrease) In Cash and Cash Equivalents 179,615 1,217,806 (1,143,971) (138,709) (98,555) (52,041) Cash and Cash Equivalents, January 1 1,344,208 1,523,823 2,741,629 1,597,658 1,458,949 1,360,394 Cash and Cash Equivalents, December 31 1,523,823$ 2,741,629$ 1,597,658$ 1,458,949$ 1,360,394$ 1,308,353$ DRAFT 9 Estimated Estimated Estimated Estimated Estimated Estimated 2022 2023 2024 2025 2026 2027 2028 2029 2030 Projected Rate Increase Fixed Rates 20%20%20%20%20% Usage Rates 5%5%5%5%5% Met Council Rate 5%5%5%5%5% Cash Flows from Operating Activities Receipts from customers and users 454,683$ 497,716$ 615,199$ 735,787$ 826,399$ 895,327$ 972,698$ 1,060,996$ 1,162,037$ Payments to suppliers/service providers (418,954) (449,586) (361,903) (392,609) (396,642) (400,797) (405,077) (409,488) (414,026) Payments to employees (109,704) (95,619) (110,491) (117,660) (123,543) (129,719) (136,205) (143,017) (150,168) Net Cash from Operating Activities (73,975) (47,489) 142,805 225,518 306,214 364,811 431,416 508,491 597,843 Cash Flows from Noncapital Financing Activities Transfers in - 29,455 - - - - - - - Intergovernmental 311,195 - - - - - - - - Net Cash from Noncapital Financing Activities 311,195 29,455 - - - - - - - Cash Flows from Capital and Related Financing Activities Acquisition of capital assets (118,184) (249,785) - - (1,100,000) (187,500) (187,500) (187,500) (187,500) Capital contributions to other funds (119,507) (501,366) - - - - - - - Proceeds of bonds issued 965,831 - - - 1,000,000 - - - - Principal paid on long-term debt (57,500) (60,000) (116,000) (65,000) (67,500) (163,500) (163,500) (163,500) (163,500) Interest paid on long-term debt (50,953) (40,940) (36,149) (6,201) (4,416) (103,885) (98,020) (92,108) (86,149) Net Cash from Capital and Related Financing Activities 619,687 (852,091) (152,149) (71,201) (171,916) (454,885) (449,020) (443,108) (437,149) Cash Flows From Investing Activities Investment earnings and other 566 9,457 114 - 4,257 8,413 5,964 5,614 7,744 Net Increase (Decrease) in Cash and Cash Equivalents 857,473 (860,668) (9,230) 154,317 138,555 (81,661) (11,640) 70,997 168,438 Cash and Cash Equivalents, January 1 - 857,473 (3,195) (12,425) 141,892 280,447 198,786 187,146 258,143 Cash and Cash Equivalents, December 31 857,473$ (3,195)$ (12,425)$ 141,892$ 280,447$ 198,786$ 187,146$ 258,143$ 426,581$ Target Cash Reserve 373,543$ 388,346$ 326,336$ 332,009$ 532,643$ 532,161$ 531,861$ 531,746$ 494,831$ Projected Cash in Excess of Target -$ -$ -$ -$ -$ -$ Average Quarterly Bill (9,000 Gallons)129.51$ 140.04$ 151.92$ 165.28$ 180.55$ 198.05$ Average Percentage Increase 8%8%8%8%9% Average Quarterly Dollar Increase 10.53$ 11.88$ 13.36$ 15.27$ 17.50$ Average Annual Dollar Increase 42.12$ 47.52$ 53.44$ 61.08$ 70.00$ Five Year Average Capital Expenses 370,000$ Actual Results Rate Study Projections City of Spring Park, Minnesota Sewer Fund Cash Flow Projections - Detailed For the Years Ending December 31, 2025 through 2030 DRAFT 10 City of Spring Park, Minnesota Sewer Fund Cash Flow Projections - Summary For the Years Ending December 31, 2025 through 2030 Estimated Estimated Estimated Estimated Estimated Estimated 2025 2026 2027 2028 2029 2030 Projected rate increase Fixed Rate 20%20%20%20%20% Usage and Met Council 5%5%5%5%5% Cash receipts Receipts from customers 735,787$ 826,399$ 895,327$ 972,698$ 1,060,996$ 1,162,037$ Other receipts - 4,257 8,413 5,964 5,614 7,744 Proceeds of long-term debt - 1,000,000 - - - - Total Cash Receipts 735,787 1,830,656 903,740 978,662 1,066,610 1,169,781 Cash disbursements Operating payments 510,269 520,185 530,516 541,282 552,505 564,194 Debt service payments 71,201 71,916 267,385 261,520 255,608 249,649 Acquisition of capital assets - 1,100,000 187,500 187,500 187,500 187,500 Total Cash Disbursements 581,470 1,692,101 985,401 990,302 995,613 1,001,343 Net Increase (Decrease) In Cash and Cash Equivalents 154,317 138,555 (81,661) (11,640) 70,997 168,438 Cash and Cash Equivalents, January 1 (12,425) 141,892 280,447 198,786 187,146 258,143 Cash and Cash Equivalents, December 31 141,892$ 280,447$ 198,786$ 187,146$ 258,143$ 426,581$ DRAFT 11 City of Spring Park, Minnesota 2025 - 2030 Utility Rate Study Financial Section (Continued) Water Fund $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 2024 2025 2026 2027 2028 2029 2030 Cash Flow From Operations Debt Principal and Interest Operating Expenses Revenue From Operations $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2024 2025 2026 2027 2028 2029 2030 Cash Balance Including Target Cash Reserve Cash Balances Target Cash Reserve DRAFT 12 City of Spring Park, Minnesota 2025 - 2030 Utility Rate Study Financial Section (Continued) $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 2025 2026 2027 2028 2029 2030 Future Debt Principal and Interest Sewer Fund $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2024 2025 2026 2027 2028 2029 2030 Cash Flow From Operations Debt Principal and Interest Operating Expenses Revenue From Operations DRAFT 13 City of Spring Park, Minnesota 2025 - 2030 Utility Rate Study Financial Section (Continued) $(100,000) $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2024 2025 2026 2027 2028 2029 2030 Cash Balance Including Target Cash Reserve Cash Balances Target Cash Reserve $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2025 2026 2027 2028 2029 2030 Future Debt Principal and Interest DRAFT 14 City of Spring Park, Minnesota 2025 - 2030 Utility Rate Study Financial Section (Continued) Other $63.3 $70.5 $78.8 $88.6 $100.0 $113.4 $129.5 $140.0 $151.9 $165.3 $180.6 $198.1 $192.8 $210.5 $230.8 $253.9 $280.6 $311.4 $- $40 $80 $120 $160 $200 $240 $280 $320 $360 2025 2026 2027 2028 2029 2030 Quarterly Utility Bill Residential -Current and Future (Average Usage 9,000 gallons) Water Sewer Total Bill Capital Improvement Plan 2026 2027 2028 2029 2030 Water Sunset Drive - Water*1,000,000$ -$ -$ -$ -$ Water Lining - 100,000 100,000 100,000 100,000 Water Treatment (Filters and Software)- 50,000 50,000 50,000 50,000 Water Tower Maintenance*- 1,000,000 - - - Meter Reading Upgrades - 12,500 12,500 12,500 12,500 Total Water Fund Capital 1,000,000$ 1,162,500$ 162,500$ 162,500$ 162,500$ Average annual cost over a 5 year period 530,000$ Sewer Sunset Drive - Sewer*1,000,000$ -$ -$ -$ -$ Sewer Lining - 100,000 100,000 100,000 100,000 Lift Station Upgrades 100,000 75,000 75,000 75,000 75,000 Meter Reading Upgrades - 12,500 12,500 12,500 12,500 Total Sewer Fund Capital 1,100,000$ 187,500$ 187,500$ 187,500$ 187,500$ Average annual cost over a 5 year period 370,000$ * Debt Financed DRAFT 15