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9-8-2025 City Council Conference Meeting September 08, 2025 5:30 PM Fridley City Hall, 7071 University Avenue N.E. Agenda Agenda 1.Staff Updates 2.2026 Budget/Levy Discussion Accessibility Notice: If you need free interpretation or translation assistance, please contact City staff. Si necesita ayuda de interpretación o traducción gratis, comuníquese con el personal de la ciudad. Yog tias koj xav tau kev pab txhais lus los sis txhais ntaub ntawv dawb, ces thov tiv tauj rau Lub Nroog cov neeg ua hauj lwm. Haddii aad u baahan tahay tarjumaad bilaash ah ama kaalmo tarjumaad, fadlan la xiriir shaqaalaha Magaalada. Upon request, accommodation will be provided to allow individuals with disabilities to participate in any City of Fridley services, programs or activities. Hearing impaired persons who need an interpreter or other persons who require auxiliary aids should contact CityClerk@FridleyMN.govor (763) 572-3450. 1 Jufn!2/ AGENDA REPORT Meeting Date:September 8, 2025 Meeting Type:City CouncilConference Meeting Submitted By:Rebecca Hellegers, Director of Employee Resources Title Staff Updates Background The Employee Resources Department will share about the newstaff who have joined the City of Fridley since the start of 2025. Financial Impact N/A Recommendation N/A Focus on Fridley Strategic Alignment Vibrant Neighborhoods &PlacesCommunity Identity &Relationship Building Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship X Organizational Excellence Attachments and Other Resources Vision Statement We believe Fridley will be a safe,vibrant, friendly and stable home for families and businesses. 2 Jufn!3/ AGENDA REPORT Meeting Date:September 8, 2025 Meeting Type:City Council Conference Meeting Submitted By:Joe Starks, Finance Director/City Treasurer Title 2026Budget/LevyDiscussion Background This is another opportunity to address any remaining questions/issues/assumptions as the Cityof Fridley nd heads towards preliminary levy/proposed budget adoption at the September 22Regular Council Meeting. Included are the proposed budget/levy and 2026-2030 Capital Investment Program (CIP) documents. Focus on Fridley Strategic Alignment Vibrant Neighborhoods &PlacesCommunity Identity &Relationship Building X Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship Organizational Excellence Attachments and Other Resources 2026Proposed Budget and Property Tax Review PDF Presentation 2026Proposed Budget 2026CIP PDF Presentation 2026-2030 CIP Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 3 Jufn!3/ PROPOSED 2026 BUDGET AND PRELIMINARY LEVY AUGUST 25, 2025 4 Jufn!3/ AGENDA •Introduction •Economic Expectations and General Assumptions •Proposed 2026 General Fund Budget •Property Tax Levy Analysis •Next Steps •Council Input/Questions/Feedback 5 2 Jufn!3/ FRIDLEY’S FINANCIAL STRENGTH •Aa2 credit rating •Strong Financial Position (healthy fund balance and cash balance) •Growing tax base located favorably in the Twin Cities metropolitan area •Strong financial policies & practices •Conservative budgetary approach •Multi-year operating and capital budget forecasting •Clean Financial Audit •City Awards •Certificate of Achievement for Excellence in Financial Reporting •Popular Annual Financial Reporting Award •Distinguished Budget Presentation Award 6 3 Jufn!3/ BUDGET OBJECTIVES/PRINCIPLES •Fund excellent public services at a fiscally responsible cost •Stabilize ongoing revenues and expenditures and minimize/eliminate unanticipated variances •Maintain structural balance and appropriate cash/fund balance levels •Make best use of existing City resources •Set levy in conjunction with long-term plans to mitigate “peaks and valleys” and “pushing it down the road” •Provide accountability and transparency throughout the budget process •Conservative budgetary approach 7 4 Jufn!3/ OVERVIEW •Preliminary levy increase of 6.29% •Median value home (296,400 up 1.66% from 291,550 last year) could see annual increase to City property taxes of approximately $141, or about $12 monthly •Based on preliminary valuation/tax capacity information received from Anoka County and subject to change •As a reminder, the preliminary levy can be decreased, but not increased, for final levy adoption 8 5 Jufn!3/ NET TAX CAPACITY BY PROPERTY CLASS Net Tax Capacity by Classification –Net Tax Capacity by Classification – Net Tax Capacity by Classification –Payable Payable 2024Payable 2025 2026 2% 2% 17% 1% 15% 18% 35% 32% 38% 47% 48% 46% Residential Homestead Residential Homestead Residential Homestead Commercial/Industrial Commercial/Industrial Commercial/Industrial Railroad/Public Utility Railroad/Public Utility Railroad/Public Utility Residential, Non-Homestead Residential, Non-Homestead Residential, Non-Homestead Property Taxes Payable for 2024 Property Taxes Payable for 2026 Property Taxes Payable for 2025 Median Value Homestead: $284,700 Median Value Homestead: $296,400 Median Value Homestead: $291,550 Tax base/burden shift from C/I and Residential, Non- Homestead to Residential Homestead 9 6 Jufn!3/ FISCAL DISPARITIES •Fiscal disparities program is a system for partial sharing of commercial-industrial (C/I) property tax base among all jurisdictions within a geographic area •Each taxing jurisdiction annually contributes 40% of the growth in its C/I tax base •Each municipality then receives a shared of the areawide contributed tax base and it is based on its share of the area’s population and its tax base per capita •2026 Contribution (lowers tax capacity or tax base) of $10,842,780 •Increase of $994,330 from 2025, or 10.10% •Increase was $1,215,520, or 14.08%, previous year •2026 Distribution (lowers levy amount) of $3,011,405 •Increase of $139,884 from 2025, or 4.87% •Increase was $283,212, or 10.97%, previous year 10 7 Jufn!3/ FISCAL DISPARITIES, CONTINUED 11 8 Jufn!3/ ECONOMIC EXPECTATIONS •State Forecast •The State’s projected budget surplus for FY 2026-27 is currently $456 million, down from $3.7 billion at this time last year and $17.5 billion the year before •Projected shortfall for FY 2028-29 just short of $6 billion •One-time Public Safety Aid received by City in December 2024 $1,292,504 •2026 Certified Local Government Aid (LGA) decreased $302,580 from 2025 •$327,209 increase for 2024 •Multi-decade high inflation has slowed over the last year but continues to be impactful •July 2025 inflation rate slowed to 2.7% (versus 8.5% in July 2023) 12 9 Jufn!3/ GENERAL ASSUMPTIONS •Proposed budget/levy funds existing service level •Anticipated contractual obligations for wages and benefits o 4 Public Safety labor agreements o Planned progression through the City’s compensation plan and market adjustments/reclassifications •Health Insurance •2025 included a negotiated increase of 12% (as part of 0% increase for 2024) •2026 increase was not negotiated and is TBD, using assumption of 15.0% •MN Paid Family Leave •2 Elections (0 in 2025) •Removal of one-time expenditures and revenues from 2025 budget to the 2026 budget Major Budget Assumptions, Expenditures CategoryAdjustment Salaries and Wages (not including step 4.0% movement) Health Insurance15.0% Worker’s Compensation0.0% Property/Liability Insurance0.0% 13 10 Jufn!3/ GENERAL FUND PROPOSED 2026 BUDGET 14 11 Jufn!3/ GENERAL FUND EXPENDITURES •Personnel Services o Comparable to previous fiscal years, Personnel Services comprises 77.95% of all General Fund expenditures (78.51% for 2025) o For the Proposed 2026 Budget, Personnel Services increased approximately $994,400, or 5.21%, compared to Adopted 2025 Budget 4 Public Safety labor agreements Planned progression through the City’s compensation plan and market adjustments/reclassifications Health Insurance increase Elections Increase Embedded Social Worker (fully grant funded in 2025, partially offset with grant funds in 2026) 2 New School Resource Officers (SROs) (fully funded by Fridley Schools) Fire Intern Program Placeholder for Parks and Recreation Staffing Placeholder for Public Works Staffing 15 12 Jufn!3/ GENERAL FUND EXPENDITURES, CONTINUED General Fund, Expenditure Summary $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- BudgetActualBudgetActualBudgetBudget 202320232024202420252026 61 - Personnel Services62 - Supplies63 - Other Services & Charges 80 - Debt Service99 - Other Financing Uses 16 13 Jufn!3/ GENERAL FUND EXPENDITURES, CONTINUED General Fund Expenditures by Department $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- BudgetActualBudgetActualBudgetProposed 202320232024202420252026 11 - Legislative12 - City Management13 - Finance 14 - Non-departmental21 - Public Safety31 - Public Works 41 - Parks and Recreation51 - Community Development 17 14 Jufn!3/ GENERAL FUND REVENUES •Property Taxes o The Proposed 2026 Budget assumes a certified property tax levy of approximately $17,384,400 or $1,286,100 (7.99%) more than 2025. •Licenses and Permits o Per recent trend and average redevelopment activity, the Proposed 2026 Budget decreases by about $145,800, or 12.38%, compared to the previous fiscal year •Charges for Services o Assumes an increase of about $181,100 or 5.89%, primarily due to 2 new SROs with Fridley Schools 18 15 Jufn!3/ GENERAL FUND REVENUES, CONTINUED •Intergovernmental Grants and Aids o Assumes an increase of about $82,100, or 2.95% Assumes a decrease in General Fund LGA of about 175,300 Assumes an increase in Affordable Housing Aid of about $176,500 Assumes an increase in Police Aid of about $25,000 Assumes an increase in Municipal Maintenance Aid of about $47,500 •2026 LGA as percentage of all General Fund Revenue = 2.95% •3.84% for 2025 •2026 Intergovernmental Aid as a percentage of all General Fund Revenue = 11.13% •11.46% for 2025 19 16 Jufn!3/ LOCAL GOVERNMENT AID (LGA) ALLOCATION Local Government Aid Allocation, 2023–2030 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 202320242025B2026P2027F2028F2029F2030F General Fund Capital Project Funds 20 17 Jufn!3/ GENERAL FUND REVENUES, CONTINUED General Fund, Revenue Summary 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - BudgetActualBudgetActualBudgetBudget 202320232024202420252026 41 - Taxes42 - Special Assessments43 - Licenses and Permits 44 - Intergovernmental45 - Charges for Services46 - Fines and Forfeitures 47 - Miscellaneous49 - Other Financing Sources 21 18 4% COLA/General Increase $353,800(1.6%) Jufn!3/ Decrease in LGA $175,000(0.8%) Decrease in Permits/Licenses $145,800(0.7%) P&R Staffing $141,100(0.7%) 2026 LEVY PW Staffing $101,900(0.5%) IMPACTS Creation of New Step $100,000(0.5%) Embedded Social Worker $85,400(0.4%) Elections $78,000 (0.4%) Health Insurance Increase $55,000(0.3%) MN Paid Leave $50,000(0.2%) Debt Service Obligations $49,900(0.2%) SNC Fund $23,250(0.1%) IT Capital Projects $3,500(0.0%) Total Levy Increase $1,362,650 (6.29%) 22 19 Jufn!3/ PROPERTY TAX LEVY PROPOSED 2026 BUDGET 23 20 Jufn!3/ PROPERTY TAX LEVY •The Proposed 2026 Budget assumes an overall preliminary property tax levy increase of about 6.29%. Generally, this change supports: o Anticipated contractual obligations for wages and benefits o Cost pressures on various City activities; and the o Debt service obligations for Civic Campus and the Park System Improvement Plan 24 21 Jufn!3/ PROPERTY TAX LEVY, CONTINUED 25 22 Jufn!3/ PROPERTY TAX LEVY, CONTINUED •Between assessment year 2024 and 2025, the median–valued residential homestead increased about 1.66% •Assuming the proposed property tax levy change, a property owner with a $296,400 residential homestead could pay an estimated $141 more per year, or about $12 more monthly. 26 23 Jufn!3/ PROPERTY TAX LEVY, CONTINUED Property Tax Levy %, 2017-2026P 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2017201820192020202120222023202420252026P 27 24 Jufn!3/ PROPERTY TAX LEVY, CONTINUED City2026P Change (%) Andover3.99% New Hope4.75% Richfield5.97% Fridley6.29% Ham Lake6.50% Spring Lake Park6.54% New Brighton7.31% Ramsey7.50% Average = 8.01% Coon Rapids7.60% *Preliminary figures and subject to Maplewood8.48% change Anoka County9.90% Blaine9.90% Anoka10.54% Lino Lakes16.80% 28 25 Jufn!3/ NEXT STEPS/OTHER INFORMATION PROPOSED 2026 BUDGET 29 26 Jufn!3/ PROPOSED 2026 BUDGET CALENDAR September 8Discuss Proposed 2026 Budgets/Preliminary Levy & CIP with City Council September 22Adopt Proposed 2026 General Fund Budget and Preliminary Property Tax Levy September 22Adopt Final Housing and Redevelopment Authority Property Tax Levy September 22Discuss Utility Budgets and Rates Skipping ahead… October 13Discuss Utility Budgets and Rates October 27Adopt 2026 Utility Rates & Fees November 10Discuss 2026 Budget, including CIP, with City Council December 8Conduct Truth–in–Taxation Public Hearing 7:00pm December 22Adopt Final 2026 Budget, Levy and 2026-2030 CIP 30 27 Jufn!3/ COUNCIL INPUT/FEEDBACK •Any guidance for staff? •Questions? •Feedback? 31 28 Jufn!3/ THANK YOU! PROPOSED 2026 BUDGETANDPRELIMINARYLEVY 32 29 Jufn!3/ 33 Jufn!3/ 34 Jufn!3/ 35 Jufn!3/ 36 Jufn!3/ 37 Jufn!3/ 38 Jufn!3/ 39 Jufn!3/ 40 Jufn!3/ 41 Jufn!3/ 42 Jufn!3/ 43 Jufn!3/ 44 Jufn!3/ 45 Jufn!3/ 46 Jufn!3/ 47 Jufn!3/ 48 Jufn!3/ 49 Jufn!3/ 50 Jufn!3/ 51 Jufn!3/ 52 Jufn!3/ 53 Jufn!3/ 54 Jufn!3/ 55 Jufn!3/ 56 Jufn!3/ 57 Jufn!3/ 58 Jufn!3/ 59 Jufn!3/ 60 Jufn!3/ 61 Jufn!3/ 62 Jufn!3/ 63 Jufn!3/ 64 Jufn!3/ 65 Jufn!3/ PROPOSED 2026–2030 CAPITAL INVESTMENT PROGRAM (CIP) PROPOSED 2026 BUDGET SEPTEMBER 8, 2025 66 Jufn!3/ CAPITAL PROJECT FUNDS P ROPOSED 2026–2030 CIP 67 2 Jufn!3/ PROPOSED 2026–2030 CIP Capital Projects by Funding Source 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - BudgetProjectionProjectionProjectionProjection 20262027202820292030 StreetStorm WaterWaterSanitary SewerCapital Equipment 68 3 Jufn!3/ PROPOSED 2026–2030 CIP, PROVISIONAL Capital Project Expenditures, by Funding Source 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - BudgetProjectionProjectionProjectionProjection 20262027202820292030 StreetStorm WaterWaterSanitary SewerCapital Equipment ParksIT ProjectsBuildingsLiquorProvisional 69 4 Jufn!3/ LOCAL GOVERNMENT AID (LGA) ALLOCATION Local Government Aid Allocation, 2023–2030 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 202320242025B2026B2027F2028F2029F2030F General Fund Capital Project Funds 70 5 Jufn!3/ CAPITAL PROJECT FUNDS •The Proposed CIP consists of a collection of Capital Project Funds designed to coordinate the financing of capital equipment, improvements and other projects •The City currently maintains six Capital Project Funds: 1.Building Capital Improvement Fund 2.Street Improvement Fund 3.Parks Capital Improvement Fund 4.Information Technology Projects Fund 5.Capital Equipment Fund 6.Community Investment Fund 71 6 Jufn!3/ BUILDING CAPITAL PROJECTS FUND •Proposed 2026 CIP Project Highlights o$120,000, Public Works Building Solar Installation o$100,000, Civic Campus Systems Optimization o$81,000, Commons Building Solar o$50,000, Facility Security Improvements o$20,000, General Building Improvements •Proposed CIP Provisional Projects (through 2030) o NA •Assumptions and Other Considerations o$350,000 for Fire Station 2 Remodel in 2029 o Stays above fund balance requirement through 2030 •Funding Sources o Investment Income o Grants (Federal & State) o Fund Balance 72 7 Jufn!3/ BUILDING FUND, CONTINUED Proposed 2026 –2030 CIP, Funding Sources and Expenditures $600,000 $1,800,000 $1,600,000 $500,000 $1,400,000 $400,000 $1,200,000 $1,000,000 $300,000 $800,000 $200,000 $600,000 $400,000 $100,000 $200,000 $- $- BudgetProjectionProjectionProjectionProjection 20262027202820292030 Funding SourcesCapital Plan ExpendituresEnding Fund Balance 73 8 Jufn!3/ STREET CAPITAL PROJECTS FUND •Proposed 2026 CIP Project Highlights o$1,300,000, Safe Routes to School Project o$1,275,000, Street Rehabilitation Project o$251,000, Trunk Highway Signal LED Retrofit o$130,000, ADA Improvements o$125,000, Traffic Signal Installation/Replacements o$105,000, Trail and Sidewalk Upgrades •Proposed CIP Provisional Projects (through 2030) th o$32,000,000, 57Ave Bridge Construction o$1,700,000, Trunk Highway 47 Corridor Improvements o$1,450,000, Mississippi Street Improvement th o$1,200,000, 57Ave. Reconstruction 74 9 Jufn!3/ STREET CAPITAL PROJECTS FUND, CONTINUED •Assumptions and Other Considerations o Use of Municipal State Aid (MSA) reimbursements to fund other portions of the street improvement program o Assume maximum use of MSA throughout the five–year period o The Proposed CIP assumes a use of about $1,200,000 of fund balance in 2026 o Stays above fund balance requirement through 2030 •Funding Sources o Municipal State Aid (State Aid Routes & Local Routes) o Special Assessments o Grants o Local Government Aid o Transportation Advancement Account •Invests approximately $11,291,000 in transportation infrastructure between 2026 and 2030 75 10 Jufn!3/ STREET CAPITAL PROJECTS FUND, CONTINUED Street Capital Projects Fund Summary Proposed 2026 –2030 CIP, Funding Sources and Expenditures $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- BudgetProjectionProjectionProjectionProjection 20262027202820292030 Funding SourcesCapital ProjectsEnding Fund BalanceMin Fund Balance 76 11 Jufn!3/ PARKS CAPITAL PROJECTS FUND •Proposed 2026 CIP Project Highlights o$4,500,000, Commons Park Improvements o$963,000, Flanery Park Improvements o$300,000, Community Park Soccer Complex Development o$271,000, Summit Square Park Improvements •Proposed CIP Provisional Projects (through 2030) o$150,000, Springbrook Nature Center Exhibit Gallery Enhancements (2028/2029) •FutureYearProjectsAddedSince Last Discussion o$385,000,InnsbruckParkImprovements o$180,000, Jay Park Improvements o$415,000, Terrace Park Improvements 77 12 Jufn!3/ PARKS CAPITAL PROJECTS FUND, CONTINUED •Assumptions and Other Considerations o Assumes transfer in from the Community Investment Fund to support parks capital projects, namely the Park System Improvement Plan (PSIP) o The fund presently supports any costs related to Park System or Springbrook Nature Center facilities o Stays above fund balance requirement through 2030 •Funding Sources o Bond Proceeds o Community Investment Fund o Local Government Aid (LGA) o Investment Income 78 13 Jufn!3/ PARKS CAPITAL PROJECTS FUND, CONTINUED Parks Capital Projects Fund Summary Proposed 2026 -2030 CIP, Funding Sources and Expenditures $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- BudgetProjectionProjectionProjectionProjection 20262027202820292030 Funding SourcesCapital Plan ExpendituresEnding Fund Balance 79 14 Jufn!3/ INFORMATION TECHNOLOGY PROJECTS FUND •Proposed 2026 CIP Project Highlights o$130,000, Technology Purchases and Upgrades o$130,000, Replacement of Copiers Citywide •Assumptions and Other Considerations o The proposed CIP assumes fund balance use of $17,000 in 2026 o Stays above fund balance requirement through 2030 •Funding Sources o LGA o Property Taxes o Investment Income 80 15 Jufn!3/ IT CAPITAL PROJECTS FUND, CONTINUED Information Technology Fund Summary Proposed 2026 -2030 CIP, Funding Sources and Expenditures $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- BudgetProjectionProjectionProjectionProjection 20262027202820292030 Funding SourcesCapital Plan ExpendituresEnding Fund Balance 81 16 Jufn!3/ CAPITAL EQUIPMENT FUND •Proposed 2026 CIP Project Highlights o$345,000, Wheeled Loader Replacements o$165,000, Police Division Vehicle Replacement (Lease) o$150,000, Public Safety Communications Upgrade o$112,100, Parks Pick-Up Truck Replacement (Lease) o$100,000, Police Division Vehicle Replacement •Assumptions and Other Considerations o The Proposed CIP assumes fund balance use of approximately $182,100 in 2026 o Stays above fund balance requirement through 2030 •Funding Sources o Local Government Aid (LGA) o Liquor Store Proceeds (Transfer In) o Auction Proceeds o Public Safety Aid o Interfund Loan (Community Investment Fund) in 2027 repaid over 5 years o Investment Income 82 17 Jufn!3/ CAPITAL EQUIPMENT FUND, CONTINUED Capital Equipment Fund Summary Proposed 2026 -2030 CIP, Funding Sources and Expenditures $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- BudgetProjectionProjectionProjectionProjection 20262027202820292030 Funding SourcesCapital Plan ExpendituresEnding Fund Balance 83 18 Jufn!3/ COMMUNITY INVESTMENT FUND (CIF) •Proposed 2026 CIP Project Highlights o Approximately $2,700,000 towards Parks System Improvement Plan (PSIP) Depends on timing of bond proceeds spend down •Assumptions and Other Considerations o Assumes approximately $422,000 of interfund loan repayments in 2026 o Funds approximately $10,000,000 towards (PSIP) o Cash Balance of $12,519,738 at the end of 2024 Fund Balance of $14,927,617 •Future o$1,300,000, Interfund loan to Equipment Fund in 2027 repaid over 5 years with interest (Ladder Truck) 84 19 Jufn!3/ ENTERPRISE FUNDS P ROPOSED 2026–2030 CIP 85 20 Jufn!3/ ENTERPRISE FUNDS •Generally, Enterprise Funds are designed to account for certain proprietary activities for which fees or rates are charged to external users for goods or services •The City currently maintains four Enterprise Funds 1.Water Utility Fund 2.Sanitary Sewer Utility Fund 3.Storm Water Utility Fund 4.Municipal Liquor Fund 86 21 Jufn!3/ WATER UTILITY FUND •Proposed 2026 CIP Project Highlights o$3,300,000, Locke Park WTP GAC Treatment Addition o$1,750,000, New Distribution System Extension-Watermain o$1,500,000, Storage Retrofits and Reconditioning o$1,500,000, Treatment Plant Retrofits o$700,000, Water Distribution Upgrades with Street Projects •Proposed CIP Provisional Projects (through 2030) o$120,000, Common WTP Solar o$100,000, WTP #3 Solar 87 22 Jufn!3/ SANITARY SEWER UTILITY FUND •Proposed 2026 CIP Project Highlights o$1,250,000 Sanitary Sewer Collection System Lining o$200,000 Sanitary Sewer Lift Station •Proposed CIP Provisional Projects (through 2030) o N/A 88 23 Jufn!3/ STORM WATER UTILITY FUND •Proposed 2026 CIP Project Highlights o$750,000, Sediment Removal Projects o$450,000, Norton Creek Flood Control o$400,000, TMDL Water Quality Projects o$220,000, Storm Water System Upgrades with Street Projects o$200,000, Watershed District Water Quality Projects o$150,000, Storm Water System Upgrades •Proposed CIP Provisional Projects (through 2030) o N/A 89 24 Jufn!3/ MUNICIPAL LIQUOR FUND •Proposed 2026 CIP Project Highlights o N/A •Assumptions and Other Considerations o LS #1 (Fridley Market) Lease through 10/31/2028 o Capital needs for LS #2 90 25 Jufn!3/ NEXT STEPS AND OTHER CONSIDERATIONS P LANNING 2026 B UDGET 91 26 Jufn!3/ PROPOSED 2026 BUDGET CALENDAR July 28Discuss Proposed 2026–2030 CIP with City Council July 30Proposed 2026–2030 CIP submitted to Anoka County for comment August 11 Discuss Property Tax Levy scenarios with City Council August 24Discuss Tax Levy and 2026-2030 CIP with City Council September 8 Discuss Proposed 2026 Budget and Property Tax Levy with City Council, if needed September 22Adopt the Proposed 2026 Budget and Property Tax Levy September 22Adopt Final Housing and Redevelopment Authority Property Tax Levy 92 27 Jufn!3/ THANK YOU! QUESTIONS? 93 28 Jufn!3/ 94 Jufn!3/ 95 Jufn!3/ 96 Jufn!3/ 97 Jufn!3/ 98