HomeMy WebLinkAbout10-12-2026
City Council Conference Meeting
October 12, 2026 at 5:30 p.m.
7071 University Avenue NE
Agenda
1. Finance Update – September 2026 Year-to-Date
2.2027 Proposed Utility Budgets/Rates Discussion
3.2027-2031 Capital Investment Program (CIP) Discussion
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AGENDA REPORT
Meeting Date: October 12, 2026
Meeting Type:City Council Conference
Submitted By:Joe Starks, Finance Director
Title: Finance Update – September 2026 Year-to-Date
Background
A year-to-date financial update will be provided.
Recommendation
Attachments and Other Resources
1.Sep 2026 YTD Financial Update
2.Sep 2026 YTD Liquor Store
3.September 2026 YTD Investment Summary
Vision Statement
We believe Fridley will be a safe, vibrant, friendly, and stable home for families and
businesses.
For the fiscal period ending 9/30/2026
% of Year Remaining: 25%
Revenues 2026 Current Budget2026 YTD Actual2025 Balance% RemainingNote
General Fund$ 25,954,900$ 14,836,517$ 11,118,38343%A
Cable TV Fund$ 214,600$ 124,343 $ 90,25742%B
Solid Waste Abatement$ 573,200$ 390,970 $ 182,23032%C
Police Activity Fund$ 256,000$ 135,149 $ 120,85147%D
SNC Fund$ 844,400$ 469,685$ 374,71544%A
Water Utility Fund$ 7,572,200$ 5,254,509$ 2,317,69131%C
Sewer Utility Fund$ 8,180,000$ 5,760,921$ 2,419,07930%C
Storm Water Utility Fund$ 2,404,100$ 1,518,624$ 885,47637%C
Liquor Fund$ 5,970,200$ 4,161,606$ 1,808,59430%
TOTAL REVENUES$ 51,969,600$ 32,652,323$ 19,317,27737%
Expenditures 2026 Current Budget2026 YTD Actual2025 Balance% RemainingNote
General Fund$ 25,954,900$ 18,942,554$ 7,012,34627%
Cable TV Fund$ 468,300$ 356,906 $ 111,39424%
Solid Waste Abatement$ 568,500$ 373,005 $ 195,49534%
Police Activity Fund$ 256,300$ 173,053 $ 83,24732%
SNC Fund$ 815,400$ 623,632 $ 191,76824%
Water Utility Fund$ 15,302,300$ 5,413,636$ 9,888,66465%H
Sewer Utility Fund$ 10,588,900$ 7,786,462$ 2,802,43826%
Storm Water Utility Fund$ 5,396,700$ 1,226,454$ 4,170,24677%I
Liquor Fund$ 6,146,500$ 4,302,527$ 1,843,97330%J
TOTAL EXPENDITURES$ 65,497,800$ 39,198,229$ 26,299,57140%
GENERAL FUND
GF Revenue Types 2026 Current Budget2026 YTD Actual2025 Balance% RemainingNote
Taxes$ 17,324,600$ 8,931,534$ 8,393,06648%A
Special Assessments$ 70,000$ 29,197 $ 40,80358%A
Licenses and Permits$ 1,077,000$ 1,037,905$ 39,0954%E
Intergovernmental$ 2,936,600$ 1,721,805$ 1,214,79541%F
Charges for Services$ 3,273,600$ 2,589,752$ 683,84821%
Fines and Forfeitures$ 172,300$ 117,564 $ 54,73632%
Miscellaneous$ 518,300$ 9,385 $ 508,91598%G
Other Financing Sources$ 582,500$ 399,375 $ 183,12531%
TOTAL GF REVENUES$ 25,954,900$ 14,836,517$ 11,118,38343%
GF Dept. Expenditures 2026 Current Budget2026 YTD Actual2025 Balance% RemainingNote
Legislative$ 184,400$ 146,270 $ 38,13021%K
City Management$ 2,810,400$ 1,790,074$ 1,020,32636%
Finance$ 2,203,000$ 1,730,697$ 472,30321%L
Public Safety$ 12,386,100$ 9,066,547$ 3,319,55327%
Public Works$ 5,493,400$ 4,250,814$ 1,242,58623%
Parks & Recreation$ 1,201,100$ 807,562 $ 393,53833%
Community Development$ 1,676,500$ 1,150,591$ 525,90931%
TOTAL GF EXPENDITURES$ 25,954,900$ 18,942,554$ 7,012,34627%
Notes:
A - 1st half property tax settlement received in July, 2nd half in December and short settlement in January, 2027.
B - Cable franchise fee payments are received quarterly.
C - Timing of quarterly utility bills and receipt of corresponding payments.
D - Timing of reimbursement requests
E - Building permit activity below
F - 1st installment of State Aid and Local Government Aid received in July, 2nd in December. Police aid received in October.
G - Investment income allocated at year-end, based on average cash balances, as part of year-end process.
Negative amount is reversal of year-end unrealized gain/market value book entry.
H - Timing of capital projects.
I - Timing of capital projects.
J - Includes transfer to General Fund and Equipment Capital Fund.
K - Annual dues and subscriptions already paid for year.
L - Journal entry for chargeback of staff time to utility funds to be completed at year-end.
Building Permit Activity
Year# of PermitsValuation
2024 YTD 1,882 $ 25,064,246
2025 YTD 2,038 $ 37,290,860
2026 YTD 2,063 $ 74,144,807
Liquor Store #1 - Fridley MarketSep 2026 YTD
Category202420252026
Sales 2,416,621 3,567,189 3,454,551
Cost of Sales 1,721,174 2,509,357 2,413,689
Gross Profit ($) 695,447 1,057,832 1,040,862
Gross Profit (%)28.78%29.65%30.13%
Operating Expenses 573,442 892,512 918,352
165,321 122,510
Income/Loss 122,005
Nonoperating Revenues 3,033 (11,624) (25,807)
Nonoperating Expenses - -
Net Profit/Loss125,038153,69796,703
Transfer 164,250 246,375 246,375
Liquor Store #2 - Hwy. 65
Category202420252026
Sales 499,415 720,278 732,862
Cost of Sales 370,280 533,372 533,423
Gross Profit ($) 129,135 186,907 199,439
Gross Profit (%)25.86%25.95%27.21%
Operating Expenses 88,906 140,736 145,688
Income/Loss 40,229 46,171 53,750
Nonoperating Revenues - - -
Nonoperating Expenses - -
Net Profit/Loss 40,229 46,171 53,750
Transfer 30,000 30,000 45,000
Liquor Stores - Combined
Category202420252026
Sales 2,916,036 4,287,467 4,187,413
Cost of Sales 2,091,455 3,042,728 2,947,112
Gross Profit ($) 824,582 1,244,739 1,240,301
Gross Profit (%)28.28%29.03%29.62%
Operating Expenses 662,348 1,033,248 1,064,040
Income/Loss 162,234 211,491 176,261
Nonoperating Revenues 3,033 (11,624) (25,807)
Nonoperating Expenses - - -
Net Profit/Loss 165,267 199,867 150,454
Transfer 194,250 276,375 291,375
AGENDA REPORT
Meeting Date: October 12, 2026
Meeting Type:City Council Conference
Submitted By:Joe Starks, Finance Director
Title: 2027 Proposed Utility Budgets/Rates Discussion
Background
Staff and Council will discuss the 2027 Proposed Utility Budgets and Rates. Items to be
discussed will include assumptions being used for all funds and those specific to each fund,
impacts on each specific fund, including capital projects, utility costs of comparable/surrounding
cities and any objectives and guidance Council deems import as the budgets and rates are
developed.
Recommendation
Attachments and Other Resources
1.10-12-2026 Proposed 2027 Utility Funds Budget
Vision Statement
We believe Fridley will be a safe, vibrant, friendly, and stable home for families and
businesses.
UTILITY FUNDS OUTLOOK
AND OBJECTIVES
2027 BUDGET
OCTOBER 12, 2026
OVERVIEW
•Assumptions for All Utility Funds
•Water
•Sanitary Sewer
•Stormwater
•Solid Waste Abatement (Recycling)
•Next Steps and Other Considerations, Objectives, Guidance
2
WHAT ARE UTILITY FUNDS?
•Separate funds (enterprise funds) used to account for the revenues and
expenses of providing essentially utility services such as water, sewer and
stormwater
•Operates like a business in that they are self supported through user fees
•Operates independently from the general fund, which is supported by property
tax revenue
3
UTILITY FUNDS
2027 BUDGETIMPACTSANDASSUMPTIONS
4
ASSUMPTIONS/IMPACTS ON ALL UTILITY
FUNDS
•Personnel Services
•Planned progression through the City’s compensation plan and market
adjustments/reclassifications
•Capital
•No ARPA funds to fund capital projects moving forward
•ARPA funds allowed the City to stabilize rate increases while paying for capital needs
•Impact of Tariffs on Capital Expenditures/Projects
5
WATER UTILITY FUND
2027 B UDGETIMPACTSANDASSUMPTIONS
6
IMPACTS ON WATER UTILITY FUND
•Locke Water Treatment Plant (WTP) Granular Activated Carbon (GAC) Upgrade
•$5.9 mil. project between 2026 & 2027
•Received low interest (2.413%) project financing
•Received 50% loan forgiveness (approximately $2.95 mil.) due to emerging PFAS contaminant
designation
•Project $2.95 mil. in proceeds in 2026 and same in 2027 (dependent upon timing of project work)
•Approximate $191k annual repayment beginning in 2027/28 for 20 years (dependent upon
timing of project work)
•Other Debt Service
•2016A Water Revenue Bonds paid off in 2031 (approximately $300k annually)
•Consumption Trends
•Loss of 3 major water users (Rich Products & Aramark in 2024, BAE in 2025 (December)
•Conservation
•Weather patterns
•Other considerations
•Drinking Water Regulations –Lead/Copper Rule, PFAS and other contaminant standard changes
•Higher fund balance is prudent due to the age of water infrastructure
7
WATER CAPITAL INVESTMENT PROGRAM
(CIP)
•Proposed 2027 CIP Project Highlights
o$2,950,000, Locke Park WTP GAC Treatment Addition (depending on timing of project
work/completion)
o$800,000, Water Distribution Upgrades with Street Projects
o$100,000, Water Treatment Plant 3 Valve Replacement
•Future CIP Project Highlights
•$3,900,000, Annual Water Distribution Upgrades with Street Projects (2028-2031)
•$3,000,000, Storage Retrofits and Reconditioning Water Storage Systems (2028-2029)
•$1,200,000, Treatment Plant Retrofits (Commons WTP, 2028)
8
SANITARY SEWER UTILITY FUND
2027 B UDGETIMPACTSANDASSUMPTIONS
9
IMPACTS ON SEWER UTILITY FUND
•Metropolitan Council Environmental Services (MCES) Fee
•0.75% increase for 2027 (approximate $49k increase)
•12.88% increase for 2026 (approximate $748k increase)
•Since 2021, will have increased 44.6% (approximate $2 mil. increase)
•Average increase over last 5 years has been approximately 6.6%
•MCES charge is over 80% of fund’s operating expenditures
•Debt Service
•N/A
•Consumption Trends
•Loss of 3 major water users (Rich Products & Aramark in 2024, BAE in 2025 (December)
•Conservation
•Weather patterns
•Higher fund balance is prudent due to the age of sanitary sewer infrastructure
and volatility of charges from MCES
10
SANITARY SEWER CIP
•Proposed 2027 CIP Project Highlights
o$1,800,000, Sanitary Sewer Lift Station Rehabilitation
o$250,000, Sanitary Sewer Force Main Construction
•Future CIP Highlights
•$4,950,000, Sanitary Sewer Collection System Lining (2028-2031)
•$2,100,000, Sanitary Sewer Lift Station Rehabilitation (2029-2030)
11
STORM WATER UTILITY FUND
2027 B UDGETIMPACTSANDASSUMPTIONS
12
IMPACTS ON STORM WATER UTILITY FUND
•Debt Service
•N/A
•Other Considerations
•Higher fund balance is prudent due to the age of storm water infrastructure
and the potential for emergency events (flooding, etc.) within the City
13
STORM WATER CIP
•Proposed 2027 CIP Project Highlights
o$450,000, Norton Creek Flood Control
o$225,000, Storm Water System Upgrades with Street Projects
o$200,000, Total Maximum Daily Load (TMDL) Water Quality Projects
o$200,000, Watershed District Quality Projects
o$200,000, Storm Water System Upgrades
o$150,000, Storm Water Pond Maintenance
•Future CIP Project Highlights
o$1,400,000, TMDL Water Quality Projects (2028-2031)
o$1,200,000, Watershed District Water Quality Projects (2028-2031)
o$950,000, Storm Water System Upgrades with Street Projects (2028-
2031)
14
Monthly Utility Bill for Comparable Cities
Andover
Oakdale
Ramsey
Anoka
White Bear Lake
New Brighton
Inver Grove Heights
Fridley
Champlin
Roseville
Richfield
Columbia Heights
Prior Lake
Forest Lake
$- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00
WaterWastewaterStormwater
15
Water costs for Minneapolis/St. Paul Area Based on 6,000 Gallons Monthly
CityPopulationWaterWastewaterStormwaterTotal
Forest Lake 20,991 $ 42.67$ 63.22$ 4.92$ 110.81
Prior Lake 28,000 $ 35.09$ 51.37$ 13.85$ 100.31
Columbia Heights 22,358 $ 50.14$ 31.94$ 6.38$ 88.46
Richfield 36,994 $ 34.60$ 40.07$ 8.01$ 82.68
Roseville 36,810 $ 41.39$ 31.16$ 8.74$ 81.29
Champlin 24,115 $ 21.95$ 48.18$ 9.31$ 79.44
Fridley 30,289$ 27.86$ 44.87 $ 4.91$ 77.64
Inver Grove Heights 36,129 $ 24.93$ 41.06$ 9.75$ 75.74
New Brighton 22,556 $ 26.34$ 37.19$ 7.91$ 71.44
White Bear Lake 24,880 $ 26.03$ 33.42$ 4.00$ 63.45
Anoka 18,178 $ 21.69$ 35.32$ 5.20$ 62.21
Ramsey 28,850 $ 22.87$ 32.14$ 6.42$ 61.43
Oakdale 29,013 $ 21.06$ 36.33$ 3.73$ 61.12
Andover 33,426 $ 22.93$ 23.63$ 4.50$ 51.06
Average$ 29.97$ 39.28 $ 6.97$ 76.22
16
SOLID WASTE ABATEMENT
(RECYCLING) FUND
2027 B UDGETIMPACTSANDASSUMPTIONS
17
IMPACTS ON RECYCLING FUND
•City received updated recycling rate from Republic Services, which will go into effect on
May 1, 2027
•2027 recycling charge will be $4.15 per household up from $3.75 per household
•Yearly average is $4.02 ($3.75 for 4 months, $4.15 for 8 months)
•Up from $3.74
•Increase is driven by a 4.5% increase in the pickup charge as outlined in contract as well
as in increase in processing charge
•Increase in processing charge primarily driven by dip in commodity value
•6-year look back on commodity values below:
Commodity
20-Jan21-Jan22-Jan23-Jan24-Jan25-Jan26-Jan
Type
Mix paper$0/ton$45/ton$90/ton$0/ton$55/ton$55/ton$50/ton
OCC$50/ ton$75/ton$160/ton$35/ton$90/ton$80/ton$75/ton
PET$190/ton$150/ton$410/ton$240/ton$280/ton$335/ton$145/ton
HDPE #2
$1280/ton$1370/ton$1200/ton$1260/ton$700/ton$1570/ton$1000/ton
Nat
HDPE #2
$370/ton$470/ton$550/ton$260/ton$520/ton$125/ton$60/ton
PIG
18
NEXT STEPS AND
OTHER CONSIDERATIONS
2027 B UDGETIMPACTSANDASSUMPTIONS
19
PROPOSED 2027 BUDGET CALENDAR
October 12Discuss Proposed 2026 Budget and Utility Rates with Council
October 26Discuss Proposed 2026 Budget and Utility Rates with Council
November 9Council Consideration of Approval Proposed 2027 Budget and
Utility Rates
November 23Council Consideration of Approval Proposed 2027 Budget and
Utility Rates, if needed
20
THANK YOU! QUESTIONS?
21
AGENDA REPORT
Meeting Date: October 12, 2026
Meeting Type:City Council Conference
Submitted By:Joe Starks, Finance Director
Title: 2027-2031 Capital Investment Program (CIP) Discussion
Background
City Council and staff will discuss the 2027-2031 CIP, particularly as it relates to utility funds.
Recommendation
Attachments and Other Resources
1.CIP Projects Summary 10.12.2026
2.Project Details 10.12.2026
Vision Statement
We believe Fridley will be a safe, vibrant, friendly, and stable home for families and
businesses.
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712.71.38113!361-111!
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712.71.385:5!241-111!
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712.71.392:2!71-111!
712.71.392:3!4-111-111!
712.71.39559!611-111!
712.71.39588!31-111!
712.71.395:8!2-311-111!
712.71.3:113!86-111!
712.71.3:2:1!211-111!
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712.71.3:2:2!61-111!
712.71.41711!21-111!
712.71.41712!41-111!
712.71.41713!91-111!
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