--- ## title: Microsoft Word - Social Media & Internet Use Policy.docx ## author: Keisha Seys date: D:20260515112842-05'00' --- c\TY o^ ## CITY OF SAINT PETER, MINNESOTA ## AGENDA AND NOTICE OF MEETING City Council Workshop Session of Monday, May 18, 2026 - 5:30 p.m. ## Community Center - Governor's Room (600 South Fifth Street) ## I. CALL TO ORDER ## II. DISCUSSION a. Social Media & Internet Use Policy - p. 2-10 b. Enviro Services Fund Review - p. 11-16 c. Stormwater Fund Review - p. 17-21 ## III. ADJOURNMENT ## Todd Prafke ## City Administrator ## Memorandum ## TO: Honorable Mayor Nowell DATE: 5/15/2026 ## Members of the City Council FROM: Todd Prafke Corree Johnson City Administrator Sustainability/Communications Coordinator ## RE: Social Media & Internet Use Policy Update ## ACTION/RECOMMENDATION The purpose of this memo is to present an updated Social Media & Internet Use Policy for adoption as an appendix to the City of Saint Peter Personnel Policy Manual. As part of this update, the City’s existing social media policy language, currently contained within the Personnel Policy Manual, would be removed and replaced with a revised and expanded standalone appendix titled “City of Saint Peter Social Media & Internet Use Policy.” ## BACKGROUND The City of Saint Peter uses social media and digital communication platforms to share information regarding City services, programs, projects, events, public safety updates, and community initiatives. As the City’s use of social media has expanded, staff identified the need to modernize and clarify the existing policy to better reflect current communication practices, security standards, records retention requirements, and employee responsibilities. The updated policy establishes clearer procedures for: • Social media account approval and oversight; • Employee publishing and commenting authorization; • Use of approved publishing software; • Comment moderation and public interaction; • Records retention and data practices compliance; and • Employee use of personal social media accounts when discussing City matters. The policy also supports the City’s broader communications strategy by creating more standardized workflows and improving coordination between departments. ## KEY POLICY UPDATES ## Centralized Oversight & Account Management The updated policy formalizes approval requirements for all official City social media accounts and ensures the Administration Department maintains administrative access to City-affiliated accounts for security, continuity, and records retention purposes. 2 The policy also formally prohibits the use of personal social media accounts to administer or manage official City pages. ## Publishing & Commenting Authorization The revised policy clarifies that having access to publish content does not automatically authorize an employee to publicly respond to comments or engage in discussions on behalf of the City. The Administration Department will maintain a list of authorized employees permitted to publicly comment or respond on City social media pages, subject to approval by the City Administrator. This approach helps ensure consistent messaging, reduces unauthorized responses, and creates clearer oversight of public communications. ## Use of Approved Publishing Tools The policy requires official City social media content and authorized responses to be published through approved City-managed software platforms unless otherwise authorized. This improves: • Account security; • Administrative continuity; • Records retention compliance; and • Multi-user management across departments. ## Employee Personal Social Media Guidance The updated policy also clarifies that employees may not use personal social media accounts to speak on behalf of the City or respond to concerns regarding City services, projects, or operations unless specifically authorized. Employees are encouraged to refer online concerns or misinformation to authorized staff so that an official response may be reviewed and issued if appropriate. ## Additional Updates Additional revisions include: • Expanded comment moderation standards for City social media pages; • Accessibility best practices for digital communications; • Clarification regarding photography and video use at City events; and • Updated public records and records retention language. The proposed policy update does not create a direct fiscal impact. The policy formalizes existing operational practices while improving administrative oversight, communication workflows, account security, and records management. The goal for your workshop is to provide additional opportunities for the Council to receive addition information on the changes and provide input. The goal is to put the Council in a position to approve change in the near future. Those changes would include the approval of the appendix (updated policy) and removal of the related sections from the current personnel policy. Please feel free to contact us with any questions regarding this system. ## TP/CJ/ks 3 ## APPENDIX I ## CITY OF SAINT PETER SOCIAL MEDIA & INTERNET USE POLICY ## A. PURPOSE The City of Saint Peter maintains official social media accounts to provide timely, accurate, and relevant information regarding City services, programs, projects, initiatives, events, and operations. Social media is intended to support transparency, enhance public awareness, encourage civic engagement, and strengthen communication between the City and the public. The City’s social media platforms are intended primarily for informational and educational purposes and are not official channels for submitting formal public comments, service requests, legal notices, Minnesota Government Data Practices Act requests, or other official business requiring formal City action. The City website, www.saintpetermn.gov, remains the official and primary source of City information. This policy establishes guidelines governing the creation, administration, use, monitoring, and maintenance of official City social media accounts and establishes expectations for employee conduct related to social media and internet use. For purposes of this policy, “social media” includes, but is not limited to, Facebook, Instagram, X/Twitter, LinkedIn, YouTube, blogs, forums, RSS feeds, social networking sites, comment platforms, messaging tools, and other online communication platforms. City computers, mobile devices, internet access, software platforms, and communication systems are provided for official City business and shall be used in accordance with this policy and all other applicable City policies. ## B. SOCIAL MEDIA SITE APPROVAL & ACCOUNT ADMINISTRATION All requests for new social media accounts or platforms representing the City of Saint Peter must be approved by the appropriate Department Director and then submitted to the Communications Coordinator. Final approval must be granted by the City Administrator. Official City social media accounts must:  Clearly identify themselves as affiliated with the City of Saint Peter; 4  Accurately reflect the department, division, program, service, or facility represented; and  Comply with applicable City branding and communication standards. The Communications Coordinator and/or designated Administration Department staff shall be added as administrators to all City-affiliated social media accounts, including existing and newly approved accounts, to ensure continuity, security, records retention, and policy compliance. City social media accounts shall not be created, managed, or controlled exclusively by a single employee. The City reserves the right to suspend, modify, remove, or discontinue any City-affiliated social media account at any time. ## C. AUTHORIZED PUBLISHING, COMMENTING & PUBLIC INTERACTION When acting in an official capacity as a City employee, employees may not publish content, respond to comments, send direct messages, or otherwise engage publicly on behalf of the City without authorization. Only employees specifically authorized through the processes outlined in this policy may publish or interact on official City social media accounts. Access to a social media account, publishing platform, scheduling platform, or software system does not automatically authorize an employee to publish content or respond to comments on behalf of the City. Publishing authorization and commenting/responding authorization are considered separate permissions. The Communications Coordinator shall maintain a current list of employees authorized to respond to comments or engage directly with the public on City social media platforms. Departments requesting comment-response authorization for an employee must submit a request to the Communications Coordinator for review. Final approval must be granted by the City Administrator prior to any employee responding to comments or otherwise engaging publicly on behalf of the City. Authorization to publish content, respond to comments, or otherwise engage on behalf of the City may be modified or revoked at any time at the discretion of the City Administrator. The City generally does not respond to comments or postings unless specifically authorized under this policy. Not every comment requires a response. Authorized employees may respond only to direct, factual, informational questions that can be answered clearly and consistently with approved City messaging. Responses should remain professional, factual, concise, and non-argumentative. Whenever possible, responses should direct users to the City’s website or the appropriate department for additional information. Employees shall not respond to comments or messages that are: 5  Argumentative, inflammatory, or hostile;  Speculative or opinion-based;  Political in nature;  Related to personnel matters, pending legal matters, or confidential issues;  Likely to escalate conflict or controversy; or  Outside the scope of verified City information. When uncertainty exists regarding whether or how to respond, employees shall consult the Communications Coordinator or City Administrator before engaging. ## D. USE OF PERSONAL ACCOUNTS & APPROVED PUBLISHING TOOLS City social media accounts must not be created, managed, administered, or directly linked to an employee’s personal social media account. Employees may not use personal accounts to administer, publish to, respond from, message from, or otherwise represent official City social media accounts or pages. Employees shall not use personal social media accounts to make official statements, respond to complaints, provide project updates, clarify City decisions, or otherwise speak on behalf of the City, its departments, elected officials, programs, projects, or operations unless specifically authorized to do so. If an employee becomes aware of misinformation, complaints, concerns, or online discussions they believe warrant an official City response, the employee should refer the matter to the appropriate authorized staff member, Department Director, Communications Coordinator, or City Administrator for review and possible official response. Employees should not engage in debates, arguments, or extended discussions regarding City matters through personal social media accounts. All official City social media content must be published through approved City social media management software, unless otherwise authorized by the Communications Coordinator. This requirement applies to both publishing content and authorized comment responses whenever platform capabilities allow. Employees shall not circumvent approved publishing workflows, account permissions, or approval processes by posting directly through native social media platforms unless specifically authorized by the Communications Coordinator. Having technical access to a social media account or publishing platform does not constitute authorization to independently publish content or respond to comments on behalf of the City. Login credentials for City social media accounts shall be maintained in a secure, shared manner as directed by the Communications Coordinator and may not be tied to an individual employee’s personal email address, phone number, or personal social media profile. 6 ## E. SOCIAL MEDIA SITE MAINTENANCE & RECORDS MANAGEMENT The department responsible for a City social media account shall be responsible for ensuring content is timely, accurate, professional, relevant, and consistent with City policies and branding standards. Employees are responsible for all content they publish or respond to on behalf of the City. Whenever possible, social media posts should include links directing users to the City’s website for additional information, forms, documents, or services. City social media accounts will generally be monitored during normal business hours. Messages, comments, or requests received outside normal business hours will be reviewed as soon as practical. Social media platforms shall not be relied upon for reporting emergencies or urgent public safety concerns. Emergency or urgent public safety concerns should be reported through the City’s Alerts and Notifications system. All information published to or received through City social media accounts may constitute a public record and shall be managed in accordance with the Minnesota Government Data Practices Act and applicable records retention requirements. Social media activity, including removed comments when required, may be archived to comply with records retention obligations. Departments shall promptly report concerns regarding inappropriate activity, unauthorized access, security concerns, or policy violations to the Communications Coordinator and/or City Administrator. ## F. COMMENTING POLICY & LIMITED PUBLIC FORUM Official City social media pages are considered limited public forums. The City of Saint Peter welcomes community engagement and reserves the right to moderate content in accordance with this policy, applicable law, and platform terms of service. Comments or content may be removed if they contain:  Profane, obscene, sexually explicit, or violent content;  Personal attacks, harassment, or threats;  Discriminatory remarks directed toward protected classes;  Promotion of illegal activity;  Political campaigning or advocacy for or against candidates, campaigns, or ballot measures;  Commercial advertisements, solicitations, or promotions unrelated to City business;  Spam, repetitive postings, or unrelated links; 7  False information that may compromise public safety or misrepresent City operations;  Content violating copyright, trademark, or intellectual property laws; or  Content not topically related to the original post. The City may restrict or block users who repeatedly violate this policy. All removed content shall be documented and retained in accordance with applicable records retention requirements. If a social media platform allows public commenting or interaction, the City may include a the following disclaimer: “Comments posted to this page may be monitored. The City reserves the right to remove comments containing obscene language or sexual content, threats, harassment, discriminatory remarks, political advocacy, commercial solicitations, illegal activity, or content unrelated to the topic being discussed.” ## G. PROHIBITED USES Employees shall not use City social media accounts or internet resources to:  Publish obscene, sexually explicit, discriminatory, threatening, harassing, or unlawful content;  Support or oppose political candidates, campaigns, or ballot measures while acting in an official capacity;  Promote illegal or unethical activity;  Disclose confidential, private, protected, or non-public information;  Violate copyright, trademark, intellectual property, or records retention laws;  Engage in personal disputes or arguments;  Misrepresent City policies, positions, or operations; or  Endorse or appear to endorse private individuals, organizations, businesses, products, or services unless authorized as part of an approved City partnership, sponsorship, or official initiative. Employees shall not publish information prohibited by City policy or applicable law. When in doubt, employees should not post or respond and should instead consult the Communications Coordinator and/or City Administrator. ## H. CONFIDENTIAL & PRIVATE INFORMATION Private, confidential, protected, or non-public information, as defined by the Minnesota Government Data Practices Act or other applicable law, shall never be published or shared through social media. 8 Employees are responsible for ensuring all online communications comply with applicable legal, regulatory, and data privacy requirements. ## I. PHOTOS, VIDEOS & ACCESSIBILITY Publishing photographs or videos depicting City facilities, staff, residents, volunteers, visitors, or program participants requires approval from the appropriate Department Director and must comply with the Minnesota Government Data Practices Act and any applicable consent or release requirements. Photography and videography captured at public meetings, public events, public programs, or in public spaces generally do not require individual photo or video release forms. However, departments are strongly encouraged to use release forms whenever practical, particularly when images or video may be used for promotional, marketing, advertising, recruitment, or recurring communication purposes. Departments should exercise additional caution when photographing or recording minors, vulnerable individuals, or sensitive situations. Whenever practical, photo/video release forms should be obtained for minors participating in non-public programs, activities, camps, classes, or events. The City may maintain standard photo and video release forms for departmental use. Employees should consult the Communications Coordinator when questions arise regarding photo/video permissions, consent requirements, or appropriate use of images involving minors. The City will make reasonable efforts to ensure social media communications are accessible and consistent with applicable accessibility standards, including the use of captions, alternative text, or other accessibility features when practical. ## J. PERSONAL SOCIAL MEDIA USE Employees may identify themselves as employees of the City on personal social media accounts. However, employees must make clear that personal opinions do not represent official City positions. Employees who post comments related to the City or their employment with the City should include a disclaimer substantially similar to the following: “The views expressed are my own and do not necessarily represent the views of the City of ## Saint Peter.” While the City does not seek to interfere with lawful personal social media activity, employees remain responsible for their online conduct. Online activity that adversely affects job performance, workplace operations, working relationships, public trust, or the City’s interests may result in disciplinary action, up to and including termination of employment. This includes, but is not limited to:  Discriminatory remarks; 9  Harassment;  Threats of violence;  Disclosure of confidential information; or  Conduct that undermines the employee’s ability to perform job responsibilities or the City’s ability to effectively serve the public. These standards apply even when activity occurs outside the workplace, during non-working hours, or on personal devices or networks. ## K. DISCLAIMERS ## Public Records Disclaimer Content published to or received through City social media accounts may be subject to disclosure under the Minnesota Government Data Practices Act. ## No Endorsement Disclaimer A follow, like, share, repost, mention, tag, or interaction by the City of Saint Peter does not constitute official endorsement by the City, its employees, elected officials, departments, programs, services, policies, viewpoints, products, or organizations. Content shared from external organizations or agencies is provided for informational purposes only. ## Cross-Posting Disclaimer Content may vary across social media platforms. The City website remains the official and primary source of City information. ## Emergency Disclaimer Social media is not a substitute for emergency reporting. Always dial 911 for emergencies. ## L. POLICY ADMINISTRATION & UPDATES The City of Saint Peter reserves the right to modify, update, interpret, suspend, or discontinue this policy at any time to reflect operational needs, technological changes, legal requirements, records retention obligations, platform changes, or industry best practices. Questions regarding the interpretation or application of this policy should be directed to the Communications Coordinator and/or City Administrator. 10 ## Memorandum ## TO: Todd Prafke DATE: 4/30/2026 ## City Administrator FROM: Peter Moulton Perry Solheim Director of Public Works Finance Director ## RE: 2025-2026 Update/Review Environmental Services Fund Budget ## ACTION/RECOMMENDATION None needed. For City Council review and discussion only. ## BACKGROUND The Council has previously adopted a two-year budget for the Environmental Services Fund. As is our practice, time has been set aside at the upcoming workshop to provide for mid-cycle reviews of those adopted budgets. The Environmental Services (EVS) fund protects the environment by providing for the operations of: • Refuse and recycling collection throughout the community. • Operation of a yard waste drop-off site and compost site; annual curb-side yard waste, brush, and leaf pick up; and Christmas tree pick up. • Maintenance of the City's urban forest, tree removal, and tree planting and replacement program on and in boulevards, parks, and other public areas. • Implementation of the Emerald Ash Borer (EAB) management program. • Food Waste program. • Maintenance of the downtown flower baskets, downtown median plantings, and urns. The EVS fund receives revenues from the three different refuse collection levels, and the charges cover curbside garbage, recycling collection, and an Environmental Service Fee. Environmental Service Fees are also charged monthly to both residential and commercial customers within City limits. These fees cover the cost of: • Downtown flower baskets and urns. • Labor provided for installation and removal of downtown holiday lighting. • Curbside yard waste and leaf pickup. • Christmas tree pickup. • Operation of the Swift Street yard-waste drop off site. • Tree trimming and tree replacement in City parks and on City boulevards. 11 • Emerald Ash Borer (EAB) tree removal and replacement. • Food waste composting containers placed at various sites in Saint Peter for residents to use. EAB management costs are increasing. We have applied for grants to offset some of the costs. Grant Funds totaling $50,281 were received in 2025. Staff continue to look for and apply for grants to help offset EAB costs. As provided in the operating results and budgets, refuse hauling and disposal expense is approximately 45% in 2025 and 50% in 2026 of total operating expenses. These costs are incurred through two contracts. • The City contracts with MN Waste Processing Center (MWPC) for disposal of refuse. This contract expires January 31, 2027. In 2025 the monthly service cost the City between $20,300 and $23,500 per month. • The City contracts with West Central Sanitation for refuse and recycling pickup and hauling. In 2025 the monthly service cost the City between $29,600 and $30,600 per month. Large projects and costs for service included in the Environmental Services budget include: ## Curbside Leafe Pick-Up $14,840 ## Brush Hauling $26,057 ## Downtown Flowers and Hanging Baskets $21,505 ## Total Cost $62,402 The unaudited 2025 capital expenditures totaled $12,990 which was a reduction of $8,010 from 2024 and include the following: • $470 Engineering Services • $12,500 for a Dump Trailer The 2026 capital needs total $21,000 and include the following: • $6,000 Engineering Services • $5,000 Swift Street Drop Off Site Improvements • $10,000 Diamond SK Brush Cutter ( Split with Parks will be on an Equipment Certificate in 2026) The Environmental Services Fund is free of debt obligations; however, we proposed the issuance of an equipment certificate in the amount of $10,000 in 2026 for the Brush Cutter. Our policy for empty homes/vacationers is to remove the garbage/recycling charges when the property is vacant for over one month, however, the environmental services charge is not removed. Recycle, recycle, recycle. The single sort recycling program has been operating well. Staff continue to promote and educate residents in efforts to increase recycling and lower disposal amounts. The Environmental Services Fund has been running a negative fund balance. The unaudited ## Fund B alance at the end of 2025 is ($421,423) which is down $105,379 from 2024. By the end of 12 2026 we expect the fund balance to improve to ($211,253). We believe the current rates and operating expenses will continue to increase the fund balance in the coming years. We hope to reach a target reserve of 35% within four years. We do not see a need to adjust rates or budget for the 2026 year. We will evaluate the need for rate changes during the 2027-2028 budget cycle. The goal for the Council workshop is for staff to provide information to the Council about the status of this fund as we move from the first to the second year of the two-year budget cycle and put the Council in a position to better understand the needs we see for the next budget cycle. The budget includes different types of income and expenses, as well as other impacts and resources and continues to be a way to help express our goals and strategies in measurable terms and show whether the fund has a surplus or a deficit as we plan for future activities and service provision. The value of this process is understanding any deviations from the budget plan based on work that has been done. Please feel free to contact us if you have questions or concerns. ## PM/PS 13 ## Environmental Services Fund ## Revenues 2021 ## Actual 2022 ## Actual 2023 ## Actual 2024 ## Actual 2025 ## Budget 2025 ## Unaudited 2026 ## Budget Total Revenues956,955 1,019,750 1,076,259 1,477,785 1,594,350 1,600,154 1,691,515 ## Expenditures Operations788,504 942,988 1,054,390 1,218,300 1,226,311 1,205,670 1,226,311 Administrative and General77,666 121,482 155,087 277,870 169,808 207,234 169,808 Customer Account38,855 36,957 41,507 48,713 44,006 50,773 44,006 Operating Expenses905,025 1,101,427 1,250,984 1,544,883 1,440,125 1,463,677 1,440,125 Operating Income (loss):$51,930 ($81,677) ($174,725) ($67,098) $154,225 $136,477 $251,390 Depreciation30,328 32,057 38,238 39,352 41,220 31,098 41,220 ## Interest Payments0000000 ## Transfers0000000 Other Expenses30,328 32,057 38,238 39,352 41,220 31,098 41,220 NET INCOME(Loss):$21,602 ($113,734) ($212,963) ($106,450) $113,005 $105,379 $210,170 Capital - General Plant3,5204,9882,320946 21,000 12,990 21,000 ## Bond Principal Payments000000 Non Income Cash Uses3,5204,9882,320946 21,000 12,990 21,000 ## NET INCOME:21,602 (113,734) (212,963) (106,450) 113,005 105,379 210,170 Non Income Cash Uses(3,520) (4,988) (2,320)(946) (21,000) (12,990) (21,000) Non Cash Expenses (Depreciation)30,328 32,057 38,238 39,352 41,220 31,098 41,220 ## Debt Proceeds0000000 Change in Cash48,410 (86,665) (177,045) (68,044) 133,225 123,487 230,390 Ending Cash & Current Receivables460,747 374,082 197,037 128,993 262,218 252,480 482,870 Ending Fund Balance(93,655) (207,389) (420,352) (526,802) (413,797) (421,423) (211,253) 14 ## ENVIRO SERVICE 2021 ## Actual 2022 ## Actual 2023 ## Actual 2024 ## Actual 2025 ## Unaudited 2026 ## Budget Revenue956,955 1,019,750 1,076,259 1,477,785 1,594,350 1,600,154 Operating Income51,930(81,677) (174,725) (67,098)154,225136,477 OpExpenditures905,025 1,101,427 1,250,984 1,544,883 1,440,125 1,463,677 ## Capital Expend3,5204,9882,32094621,00012,990 Reserve Balance(93,655) (207,389) (420,352) (526,802) (413,797) (421,423) ## Goal Reserve Balance 316,759385,499437,844540,709504,044512,287 ## 2021 Actual2022 Actual2023 Actual2024 Actual2025 Unaudited2026 Budget ## Revenue 956,9551,019,7501,076,2591,477,7851,594,3501,600,154 ## Operating Income 51,930(81,677)(174,725)(67,098)154,225136,477 ## OpExpenditures 905,0251,101,4271,250,9841,544,8831,440,1251,463,677 ## Capital Expend 3,5204,9882,32094621,00012,990 ## Reserve Balance (93,655)(207,389)(420,352)(526,802)(413,797)(421,423) ## Goal Reserve Balance 316,759385,499437,844540,709504,044512,287 (1,000,000.00) (500,000.00) 0.00 500,000.00 1,000,000.00 1,500,000.00 2,000,000.00 ## ENVIROMENTAL SERVICES KEY INDICATORS 15 ## Environmental Services Capital Expenses 2025 ## Unaudited 2026 ## PROJECTED 2027 ## PROJECTED 2028 ## PROJECTED 2029 ## PROJECTED 2030 ## PROJECTED 2031 ## PROJECTED 2032 ## PROJECTED 2033 ## PROJECTED 2034 ## PROJECTED 2035 ## PROJECTED ## TOTAL ## Professional/Engineering Services ## Engineering Services 2,5002,5002,5002,5002,5002,5002,5002,5002,5002,5002,50027,500 ## GIS Professional Services3,5003,5003,5003,5003,5003,5003,5003,5003,5003,5003,500 38,500 6,0006,0006,0006,0006,0006,0006,0006,0006,0006,0006,000 66,000 ## Motor Vehicles #322 Ford F250 201570,00070,000 #142 Toyota Hino (2008); 1 Ton15,000100,000115,000 #320 Ford 750 Bucket Truck (2010)220,000220,000 #919 Leaf Vac (2019)90,000 90,000 015,00070,0000220,000100,00090,0000000 495,000 ## Equipment/Site Dump Trailer 7'x14' (7,000lb)15,00020,00035,000 ## Swift Street Drop Off Site Improvements5,00010,00020,00035,000 #408A Tree Puller/Cutter (2016)10,00010,000 #13 Vermeer Wood chipper (1988) 100,000100,000 Stump Grinder (2020) replace bobcat stump grinder with pull type80,00020,000100,000 #FOGGER20 Mosquito sprayer/fogger (2020)10,00010,000 John Deere 5130M Utility Tractor: $113,224.98 (Split) Equip. ## Certificate 57,50057,500 #7326 Diamond SK Brush Cutter Pro X 72" (Split with Parks $20,000) ## Equipment Certificate 10,00010,000 $72,500$15,000$10,000$100,000$10,000$20,000$10,000$0$0$100,000$20,000$357,500 16 ## Memorandum ## TO: Todd Prafke DATE: 4/30/2026 ## City Administrator FROM: Peter Moulton Perry Solheim Director of Public Works Finance Director ## RE: 2025-2026 Update/Review Stormwater Fund Budget ## ACTION/RECOMMENDATION None needed. For City Council review and discussion only. ## BACKGROUND In December of 2024, the City Council adopted a 2-year budget cycle to include maintenance and capital improvements for the years 2025-2026. This fund is used for services that include: • Stormwater management and treatment. • Planning, review, and inspection of construction in the City right-of-way or public improvements (i.e. Traverse Green and developments). • Locating City owned utilities in the rights-of-way. • Coordinating utility installations within the City's rights-of-way. • Repair and maintenance of stormwater infrastructure within our community. The fund is supported by a utility charge implemented in 2007 and is billed to all properties within the City based on size and type of property. The fund is also supported by fees paid to install utilities in the rights-of-way and easements. The goal for the Council workshop is for us to provide information to the Council about the current status of this fund as we move from the first to the second year of the two-year budget cycle. We hope to put the Council in a position to better understand the needs we see for the next budget cycle. 2025 - 2026 Projections: Rate increases for January 1, 2025 and January 1, 2026 were approved: January 1, 2025 Rate of $33.09 REF January 1, 2026 Rate of $38.27 REF • REF is defined as Residential Equivalency Factor and is a commonly used basis for the application of stormwater cost. It helps mathematically define the relative difference in impervious surface based on land uses. So those land uses that are more likely to have 17 more stormwater runoff generally pay more for stormwater than land uses that can absorb more precipitation, meaning less treatment from the City system is needed. Unaudited operating income for 2025 is $68,501 versus the budget of $111,700. Operating income missed budget primarily due to operating expenses. The 2025 unaudited operating revenues of $717,700 were $3,351 below the budget of $721,051. Operating expenses of $649,199 were $39,848 higher than the budget of $609,351. The difference in operating expenses was driven primarily by administrative personnel costs. Administrative costs were higher than expected in 2025 due to changes in staffing and overlap in some positions (Finance Director and General Accountant). Negative operating income indicates a possible need to re-evaluate stormwater fees and/or administrative cost allocations between enterprise funds. The higher operating loss versus budget was partially mitigated by extra interest income to result in a 2025 unaudited net loss of $273,019 versus budgeted loss of $256,843. Stormwater also continues to contribute 6.5% of gross sales to the General Fund in the 2025- 2026 budget cycle. We plan to review this practice for the 2027-2028 budget cycle as we have done in each of the last 30+ years. There are also transfers from Wastewater to Stormwater of $100,000 per the approved budget by the City Council based on overall concerns about rate changes and the relative cash needs of this fund versus Wastewater. Capital Improvements Plans (CIP) for 2025 were budgeted at $131,500 and 2026 projection is $338,335. An additional $250,000 was spent on infrastructure treatment related to roadway improvements driven by the Klein Street project. Again, this is part of your overall plan and related to the assessment policy that was adopted a few years ago. Going into the second year (2026) of the budget cycle we do not see any reason for any changes to planned rates or the approved budget. The goal for the Council workshop is for us to provide information about the status of this fund as we move from the first to the second year of the two-year budget cycle. We hope to put the Council in a position to better understand the needs we see for the next budget cycle. The budget includes different types of income and expenses, as well as other impacts and resources and the budget is a way to help express our goals and strategies in measurable terms and show whether the fund has a surplus or a deficit as we plan for future activities and service provisions. The value of this process is understanding deviations from the budget based on the work that has been done. Please feel free to contact us if you have questions or concerns. ## PM/PS 18 ## STORMWATER FUND 2021 ## Actual 2022 ## Actual 2023 ## Actual 2024 ## Actual 2025 ## Budget 2025 ## Unaudited 2026 ## Budget Stormwater Charges492,956 542,335 589,028 625,498 696,651 705,733 696,651 Other Operating Revenue96,962 107,708 77,191 26,699 24,400 11,967 24,400 ## TOTAL OPERATING REVENUES589,918 650,043 666,219 652,197 721,051 717,700 721,051 Non-Operating Revenue11,149 107,467 111,725 255,479 4,300 73,875 4,300 ## TOTAL REVENUES601,067 757,510 777,944 907,676 725,351 791,575 725,351 ## Stormwater Expenses Collections/Lift Stations219,228 203,855 241,581 242,113 254,742 269,875 254,742 Source/Treatment87,210 62,943 81,581 91,432 145,999 97,770 145,999 Administrative and General150,300 197,048 201,586 181,478 188,423 260,222 188,423 Customer Accounts18,207 18,531 20,049 21,407 20,187 21,332 20,187 Operating Expenses474,945 482,377 544,797 536,430 609,351 649,199 609,351 Operating Income (loss):$114,973 $167,666 $121,422 $115,767 $111,700 $68,501 $111,700 Depreciation274,407 262,310 273,260 281,376 315,325 354,599 315,325 Interest Payments00 14,799 11,660 12,236 14,923 12,236 Transfers32,042 35,415 184,127 40,657 45,282 45,873 45,282 Other Expenses306,449 297,725 472,186 333,693 372,843 415,395 372,843 NET INCOME (Loss):($180,327) ($22,592) ($239,039) $37,553 ($256,843) ($273,019) ($256,843) Capital - Collector System/Lift Stations49,135000 51,000 9,047 51,000 Capital - Treatment525000 24,000 292,469 24,000 Capital - General Plant28,507 360 365 9,976 56,500 36,819 56,500 Bond Principal Payments0000 56,070 103,803 153,136 Non Income Cash Uses78,168 360 365 9,976 187,570 442,138 284,636 ## NET INCOME:(180,327) (22,592) (239,039) 37,553 (256,843) (273,019) (256,843) Non Income Cash Uses(78,168) (360) (365) (9,976) (187,570) (442,138) (284,636) Non Cash Expenses (Depreciation)274,407 262,310 273,260 281,376 315,325 354,599 315,325 ## Debt Proceeds00 389,3520000 Change in Cash15,912 239,358 423,208 308,953 (129,088) (360,558) (226,154) ## Ending Cash & Current Receivables546,095785,4531,208,6611,447,4571,318,3691,086,899860,745 Ending Fund Balance1,102,162 1,079,570 840,531 1,149,164 892,321 876,145 619,302 Unrestricted FB % of Ops Exp232% 224% 154% 214% 146% 135% 102% 19 Stormwater Utility Capital PlanProjected Projected ProjectedProjectedProjected Projected Projected Projected Projected Projected Projected Draft 9/19/2024 Approved 3/2025 Revised 10/8/2025 20252026202720282029203020312032203320342035 ## 606.48610Collector System/Lift Station 300Engineering$26,000$22,500$36,500$55,000$23,200$24,500$31,200$55,000$65,000$70,000$75,000$483,900 532Utility Infrastructure $25,000$30,000$35,000$40,000$45,000$50,000$55,000$60,000$65,000$70,000$75,000$550,000 N 4th (Chatham to Skaro) $126,224$126,224 606.48610Collector System/Lift Station Totals $51,000$178,724$71,500$95,000$68,200$74,500$86,200$115,000$130,000$140,000$150,000$1,160,124 606.48620Stormwater Treatment 300Professional Services / Engineering$8,000$8,000$8,000$8,000$8,000$8,000$8,000$8,000$9,000$10,000$12,000$95,000 520Building/Structural Improvements$16,000$18,000$20,000$22,000$24,000$26,000$28,000$30,000$32,000$34,000$36,000$286,000 ## North Traverse Green - Cullen Street extension$53,000$53,000 ## Klein Street (50% Split with MNDOT)$156,572$156,572 Klein Street Basin (moved from 2026 to 2028) $500,000$500,000 ## HWY 169 N Basin (Dranttel Street) $240,000$240,000 ## Brown Street Basin (Bond)$450,000$450,000 ## Downstream Defender Replacement$250,000$250,000 606.48620Stormwater Treatment Totals $233,572$26,000$728,000$530,000$272,000$34,000$36,000$38,000$41,000$44,000$48,000$2,030,572 606.48630General Plant 520Building / Structure Improvements ## Public Works Improvements$6,500$6,500$7,000$7,000$7,000$7,000$7,000$7,000$8,000$8,000$9,000$80,000 ## Roof Repair - Hermel Building$5,000$10,000$15,000 ## 550#144 2017 Mack Vactor Truck (25% Split with WW)$150,000$150,000 #716- Dodge Ram 1500 Tradesman (2017)$50,000$50,000 #3123 - Dodge Ram 1500 Tradesman (2023).$85,000$85,000 #714- Ford F150 (2014) (Split SW/W/WW) (move to seasonal truck 2025)$15,000$15,000 ## #3225 GMC Sierra 1500 Ext Cab (Split SW/W/WW)$17,000$17,000 #308 - 2008 Ford F150 $40,000$40,000 580#914 - 2014 Harper DewEze Mower (2022) $45,000$60,000$60,000 ## #921 John Deere X584 Mower (2021) (Split with W/WW/SW)$6,000$6,000 #202 John Deere Z970R Mower (2020) (Split with Water) $20,000$20,000 #318 Hustler Super Z 72" 37hp (2018)$20,000$20,000 #75 - 8" Godwin Pump #2 $60,000$60,000 #613 - 8" Godwin Pump #1$60,000$60,000 #84 - 5410 John Deere Tractor (1998)$50,000$50,000 #414 Finn Hydromulcher (2014)$60,000$60,000 ## #615 Towmaster T-5DT Trailer (Split with Water)$7,000$7,000 ## #619 Polaris Ranger Electric Vehicle (2019)$25,000$25,000 #717 Case 590 SN Backhoe (2017) (Split with W/SW/WW) $50,000$50,000 #916 Bobcat Toolcat w/attachment (2016) (Split with SW/W/WW $90,000) ## SURPLUS MEMO COUNCIL 1.26.26 $37,000$37,000 ## Jack hammer Replacement (Split W/SW/WW/E/S)$5,800$5,800 ## New Trimble Unit/ Ipads (2021) $8,800$8,800 606.48630General Plant TOTALS$46,500$43,500$257,800$164,000$67,000$117,000$81,800$7,000$103,000$25,000$9,000$921,600 TOTALS - CAPITAL STORMWATER SYSTEMS$331,072$248,224$1,057,300$789,000$407,200$225,500$204,000$160,000$274,000$209,000$207,000$4,112,296 20 2021 ## Actual 2022 ## Actual 2023 ## Actual 2024 ## Actual 2025 ## Budget 2025 ## Unaudited 2026 ## Budget ## Revenue601,067757,510777,944907,676725,351791,575725,351 ## Operating Income114,973167,666121,422115,767111,70068,501111,700 ## Expenses781,394780,1021,016,983870,123982,1941,064,594982,194 ## Net Income(180,327)(22,592)(239,039)37,553(256,843)(273,019)(256,843) ## Capital Exp. and Bond Costs78,1683603659,976187,570442,138284,636 ## Unrestricted Reserve Balance1,102,1621,079,570840,5311,149,164892,321876,145619,302 ## Goal Reserve Balance260,465260,034338,994290,041327,398354,865327,398 (400,000) (200,000) 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 ## STORMWATER FUND KEY INDICATORS 21