1 ## City Council ## Work Session Monday, August 3, 2026, 5:30 PM ## 106 Center Street Members of the public may attend the work session either in person or by joining via Zoom either online or by telephone at: https://us02web.zoom.us/j/88526566715 Meeting ID: 885 2656 6715 --- One tap mobile ## +13052241968,,88526566715# US ## +13092053325,,88526566715# US ## AGENDA ## 1. Call to Order/Roll Call ## 2. Agenda Approval ## 3. New Business ## a) Water, Sewer, and Surface Water Rate Study Update 4. Adjournment Page 1 of 32 Item: 3.a. ## ITEM REPORT ## To: City Council ## From: Jenny Palmer, Finance Director ## Meeting Date: August 3, 2026 ## Department/Office: Finance ## Item Name: Water, Sewer, and Surface Water Rate Study Update ## Summary: Included with this memo is an updated analysis of the projected Water, Sewer, and Surface Water utility rates, as well as the future debt levy associated with planned street reconstruction projects. City staff has been working with Baker Tilly to update the City's Capital Improvement Plan based on revised project schedules and cost estimates provided by Public Works and the City Engineer. The updated projections evaluate the anticipated impacts on utility rates and the annual debt levy for the 2027–2033 planning period. Based on the revised analysis, the following rate adjustments and debt levy increases are projected: Water Utility: Rate increases of 10% are projected for 2027, 2028, and 2029, followed by 8% increases in 2030 and 2031. Sewer Utility: Rate increases of 20% are projected for 2027 and 2028, followed by an 18% increase in 2029. No additional rate increases are currently projected after 2029. Surface Water Utility: Annual rate increases of 9% are projected for each year from 2027 through 2033. Debt Levy: The debt levy is projected to increase by $180,000 annually in 2028, 2029, and 2030, decrease to $150,000 in 2031, and then decrease to $100,000 in 2032. These projections are based on the current capital improvement schedule and will continue to be reviewed annually as projects, costs, financing, and infrastructure needs evolve. ## Recommended Action: Review the rate study memo and provide staff direction on next steps. ## Budget: Page 2 of 32 ## Attachments: 1. Excelsior CIP memo for 2026-08-03 2. Excelsior CIP presentation 2026-07-30 Page 3 of 32 ## Summary Memo ## To: ## Members of Excelsior City Council ## Kristi Luger and Jenny Palmer, City of Excelsior ## From: Matt Stark, Manager Date: July 30, 2026 ## Subject: ## City Council Work Session: Impacts of Capital Planning Changes ## BACKGROUND Baker Tilly has prepared an analysis of the City’s updated capital improvement plan to identify the potential impacts that capital spending is likely to have on the City’s Water, Sewer and Surface Water Utility Funds. Consistent with our previous work, the purpose of our recommended rate adjustments is to provide each utility fund with resources sufficient to cover operatin…