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HomeMy WebLinkAbout2025-12-02 Work Session Meeting Packet Meeting location: Edina City Hall Community Room 4801 W. 50th St. Edina, MN City Council Work Session Meeting Agenda Tuesday, December 2, 2025 5:30 PM Accessibility Support: The City of Edina wants all residents to be comfortable being part of the public process. If you need assistance in the way of hearing amplification, an interpreter, large-print documents or something else, please call 952-927-8861 at least 72 hours in advance of the meeting. 1. Call to Order 2. Roll Call 3. Meeting Topics 3.1. 2026–2027 Budget: Fire Staffing Update 3.2. Utility Rate Study Update 4. Adjournment Page 1 of 44 d ITEM REPORT Date: December 2, 2025 Item Activity: Discussion Meeting: City Council Agenda Number: 3.1 Prepared By: Pa Thao, Finance Director Item Type: Other Department: Finance Item Title: 2026–2027 Budget: Fire Staffing Update Action Requested: Discussion only. Information/Background: Council will discuss the 2026 – 2027 budget as it relates to Fire Staffing. This is a continuation of a series of budget discussions with Council Members in advance of the final levy approval in December 2025. Resources/Financial Impacts: The City is also required to certify the final property tax levy to the county by December 28, 2025. Relationship to City Policies: The Biennial budget details the key priorities of the City Council and the resources dedicated to achieve results for Edina residents utilizing strategic guidance from Vision Edina, the Comprehensive Plan and the Capital Improvement Plan. Supporting Documentation: 1. Staff Report Page 2 of 44 Staff Report Date: 12/02/2025 To: City Council CC: City Manager From: Andrew Slama, Fire Chief Subject: Fire Department Staffing Staff Recommendation (Summary) Increase staffing levels of the Edina Fire Department by adding six Paramedic Firefighters in 2026. Staffing will strengthen Edina’s fire and EMS response, improve NFPA 1710 alignment, keep all three ambulances in service and reduce risks from overlapping calls and staffing shortages. Information/Background: In 2025, the City Council engaged in multiple conversations around the service and response levels of the Edina Fire Department (EFD). The focus of these conversations was to better understand the complex nature of emergency response. Edina Fire Department operates a traditional fire response and the Advanced Life Suppport (ALS) Emergency ambulance response. There are no State or Federal requirements for response requirements. Although there are industry best practices, the decision on response remains a local policy decision that should match community expectations. Safer Grant Background and NFPA 1710 Alignment This year EFD submitted a grant application for a Staffing for Adequate Fire and Emergency Response (SAFER) Grant. This grant is administered through the Federal Emergency Management Agency (FEMA). The grant application explained the need that currently exists in the City of Edina as it relates to the National Fire Protection Association (NFPA) 1710 standard. NFPA 1710 is the Standard for the Organization and Deployment of Fire Suppression Operations, Emergency Medical Operations, and Special Operations to the Public by Career Fire Departments. At the time of the grant application, Edina had proposed moving the six positions deferred in the 2025 budget to 2026 budget. The grant application advised FEMA that these positions and 12 additional positions funded by SAFER would add a total of 18 Paramedic Firefighters to our roster. With this addition, our aligment with NFPA 1710 in single-family homes would go from about zero percent to an estimated 100 percent alignment. In addition to this alignment with NFPA 1710, our trucks would be staffed with firefighters. As of 2025, most days our fire trucks that should be staffed with four members have only two. A driver of the truck, and a Captain. We were not selected for the SAFER grant in 2025. I recommend we continue to explore Federal grants that support our increased need for staffing. If unsuccessful in attaining a Federal grant, continue to address our needs locally. Page 3 of 44 Key Concepts: “Speed” and “Weight” When reviewing the response needs of our Community, it is important to remember that emergency response for fire and Emergency Medical System (EMS) is complex, however, it can be reduced down to two critical factors. “Speed” and “Weight” of the response. The emergency call, and our response protocols dictate the “weight” of the response necessary to mitigate the emergency and bring the situation back to a normal status. “Speed” of the response is how fast we can get our responders to the scene and begin mitigating the emergency. Both of these critical factors are important and have a direct effect on the outcomes desired for a response. If we have all of the staff (“weight”) to respond, but they cannot arrive in a timely manner (“speed”), the outcome is poor. If we can arrive quickly (“speed”), but do not have enough resources (“weight”) to safely mitigate the emergency, the outcome is poor. Our goal at EFD continues to strive to meet both critical factors in our response. We evaluate these factors as we make recommendations to Council. This is an ongoing evaluation and will continue as we make changes to each of these factors. These changes include additional staffing, station location, and the number of apparatus to respond, increasing call volume and resident demand. Impact of Staffing on Ambulance Availability Although “Speed” and “Weight” are simple principles regarding the Fire Department response. There are a number of considerations that affect both. For example, it would be reasonable to assume that adding a Paramedic Firefighter only affects the “weight” of the response. However, this can also have a positive effect on the “speed” of response. As of this staff report, there are multiple days when our third ambulance is out of service because we do not have enough staff to cover the positions. 51% of the time, in the last three months, have required some or all of the third ambulance to be cut due to staffing levels below our minimum staffing levels. This means we have offered voluntary overtime to fill the staffing gap, with no one voluntarily picking up the shift. Our options are limited to mandating an existing employee who has just completed a 24-hour shift to stay against their wishes or cutting our third ambulance, leaving only two ambulances to cover the entire City. Overlapping EMS Calls and Mutual Aid Dependence When the third ambulance does not have staffing, it leads to a delay in resident ambulance response when two or more EMS incidents occur at the same time. In 2025 year to date, 52% (2,858 incidents) of EMS medical calls overlapped with one or more medical calls at the same time. 13.47% (732 incidents) where three medical calls overlapped with each other. This data point outlines the importance of all three available Edina ambulances when the overlap of three medical calls averages more than twice a day. When only two ambulances are staffed, this increases the reliance on mutual aid ambulances and ensures that the resident receives a slower response. Adding Paramedic Firefighters to our shift will decrease the number of times the third ambulance will be shut down. With three ambulances in service responding from one of our stations, the “speed” of response is also affected by adding staffing (“weight”). It further reduces the risk to the City of overlapping medical incidents where no Edina ambulance is available. When all available ambulances are assigned to a call, and another call for service comes in, we must call for mutual aid for assistance. So far this year, EFD has requested a mutual aid ambulance 152 times. By adding Paramedic Firefighters, we work to ensure our ambulances remain staffed, we reduce the number of times no ambulances are available, and ensure our “speed” and “weight” matches community expectations. Page 4 of 44 Effect of Benefit Time Off and Staffing Levels As previously communicated to Council, benefited time off has an operational impact that continues to increase with new benefited time off leave provided to employees through Minnesota State Law. In short, our employees have more time off available to use. This increases our Staff Relief Factor, or the number of full-time employees(FTE) needed to staff one position for 24 hours. In 2024, the Staff Relief Factor increased to 3.77 full-time employees (scheduled perfectly) to fill one position for 24 hours. We anticipate the number growing to about 3.9 in 2025 and over 4 in 2026 based on benefit time off forecasting. Although our need continues to grow, and staffing levels are below industry best practices, we schedule our employees to staff three ambulances with two members each and two engines with three members each. Each 24-hour shift currently has 12 employees assigned to it. Impact of Planned and Unplanned Leave on Operations If no employees are on benefit time off, both fire engines are staffed with three employees, and three ambulances have 2 employees each. Each day, two employees are allowed to be on benefited time off. Additional staff may also be on benefited time off that is not planned. This comes in the form of sick calls, injury, parental leave, military leave, Family Medical Leave, Etc. Benefited time off, planned and unplanned, reduces staffing levels and removes employees from being able to fill positions on a fire engine or ambulance. EFD should ensure that are staffing levels are adequate for our known conditions by continuing to evaluate our Staff Relief Factor. Using our estimated Staff Relief Factor for 2025, without including the known changes in time off use of 2026, EFD should assign about 46.8 FTE’s to cover each position all year. We currently have 36 members assigned to shift operations. Adding Paramedic Firefighters to address these gaps is critical to ensure service impacts are reduced across the City, and positions in the fire engine and ambulance remain filled despite planned and unplanned benefit time. This ongoing staffing needs analysis is one metric that will continue to guide recommendations and planning moving forward. Community Trends and Increasing Service Demands We must continue to evaluate community expectations and fire department response. This evaluation should be purposeful and data-driven to drive the local policy decision. Throughout this past year, conversations with Council have outlined the population growth, development demands, our aging community with growing needs, the increased complexity and duration of incidents, and the evaluation of current EFD performance. An investment in staffing is critical to maintain the high level of services our community expects and deserves. To address these needs, an initial investment in 2026 should be made, and an ongoing investment that considers both short-term and long-term impacts must be made. Budget Options Considered Multiple options in the budget process have been discussed. One option in the budget process was seeking a faster and more effective short-term investment, with 12 Paramedic Firefighters included in the 2026 preliminary budget. The option(s), as presented in the November work session, included two different start dates of January 1 and July 1. This investment does fast-track many of the goals Council has discussed as desirable and is in line with the Fire Department’s response goals to ensure a more effective “weight” and “speed” of response. It would still allow EFD to submit for Federal Funding assistance in 2026, but would reduce the number of Firefighters requested with Federal dollars to six, Page 5 of 44 since 12 would already be funded in 2026. If this option for staffing were more desirable to the Council, I would recommend the hiring option of six FTEs on January 1 and six additional FTEs on July 1. Final Recommendation My final recommendation continues to be a purposeful evaluation and ongoing investment into our fire and EMS response. Adding six Paramedic Firefighters in the 2026 City Manager's proposed budget addresses critical needs and provides another opportunity to seek additional SAFER funding in 2026. If not successful in the SAFER application in 2026, I recommend funding an additional six full-time employees in the 2027 and 2028 budgets to achieve the impact of 18 FTEs originally submitted in this year’s SAFER application. This recommendation begins addressing the current risk and volume in our City with a thoughtful approach and continued evaluation of each investment along the way. This recommendation is made to continue a prepared, planned, and fiscally responsible approach to staffing for fire department response. Seeking first to attain Federal financial assistance, and if unsuccessful, supporting this investment locally. Page 6 of 44 d ITEM REPORT Date: December 2, 2025 Item Activity: Discussion Meeting: City Council Agenda Number: 3.2 Prepared By: Pa Thao, Finance Director Item Type: Other Department: Finance Item Title: Utility Rate Study Update Action Requested: None; discussion only. Information/Background: Continuation discussion of the Utility Rate Study update from November 12th for the 2026 - 2027 utility rates. Formal approval of the 2026 rates will be presented to Council on December 2nd, 2025. Resources/Financial Impacts: Budget - Utility Funds Relationship to City Policies: Three year best practice study update Budget Pillar: Strong Foundation Reliable Service Livable City Values Impact: Engagement The Utility Rate Study can help residents understand how utility services are funded and maintained. This transparent approach builds trust, strengthens relationships, and helps every resident feel connected to the shared responsibility of sustaining essential City services. Page 7 of 44 Sustainability Clean water is a valued community resource. Tiered water utility rates are currently structured to promote water conservation and should continue to incentivize conservation strategies, with the largest consumers paying a higher rate for their consumption. Climate change is increasing Edina’s flood risk, and the city will need to continue to invest in innovative technologies, like adaptive level controls, to reduce localized flooding risks. Increasing stormwater utility revenue will allow the City to continue to make these critical climate-adaptive investments. Stewardship The Utility Rate Study will ensure that revenues continue to cover the cost of repairing and adding long-lasting water infrastructure to provide water to residents. The tiered rates also encourage people to use water responsibly, and if they choose to continue high usage, the study’s increased tiered rates will provide additional revenue for water infrastructure improvements all over the City. Equity In general, keeping on pace with this study update every three years is important to the performance of utility rates and monitoring possible changes of disproportionate impact on different groups of utility customers. Revenues are considered capital intensive, so it is important to understand how any changes to capital planning directly impact specific customers/neighborhoods and their level of service, quality of life and/or flood risk. Supporting Documentation: 1. 2025 Utility Rate Study - Implementation Memo 2. Utility Rate Analysis for 2026 Rates Page 8 of 44 MEMORANDUM TO: Pa Thao, Finance Director FROM: Nick Anhut DATE: November 25, 2025 SUBJECT: 2025 Utility Rate Study - Implementation City staff and Ehlers presented the preliminary findings from the 2025 Utility Rate Study with the City Council at its October 7th and November 12th work sessions. Ehlers reviewed the current financial condition and projected needs for each utility fund and sought feedback from the Council on recommended rate changes for the coming fiscal year. The City’s fee schedule is adopted through an ordinance process and the City has scheduled the first reading on December 2, 2025. The purpose of this memo is to summarize the study’s recommended rate changes and address questions raised during the work sessions for consideration of next steps. 2025 Utility Rate Study The primary goal of a Utility Rate Study is to design a long-term financial plan for each fund that identifies future revenue needs and informs the City’s rate setting process. The plan considers historical financial and operating performance, existing obligations and future capital improvement needs. The study also reviewed water rate structural changes implemented in 2023 for alignment with City policy objectives. The study involved collaborating with City staff to build upon the City’s existing 5-year Capital Improvement Plan (CIP) adopted in 2024 and extend the forecast for each fund to 10-years. The resulting CIP identifies over $300 million in future capital reinvestment which includes ongoing support for the City’s street reconstruction program, equipment and infrastructure replacement, Water Treatment Plant #5 construction, various trunk sanitary sewer improvements and flood mitigation projects. These capital investments have been identified by staff to ensure long-term service reliability, enhance infrastructure and better position the city’s utility systems for future redevelopment activity. The 2025 analysis determined that annual rate increases are necessary to generate sufficient annual revenue to support operations and finance the anticipated capital improvements. These increases are designed to maintain the financial health of each utility fund, ensuring sufficient working capital is set aside to support operations, debt service obligations, and adequate reserves. They are also designed to be implemented annually to moderate impacts on the City’s rate payers and allow the City to validate the study’s assumptions and actual capital needs each year. Projected Annual Increases Utility Fund Prior Study Recommendations 2025 Study Recommendations Water Rates 5.00% 5.25% Sanitary Sewer Rates 6.00% 9.25% Storm Sewer Rates 8.00% 15.00% Water Connection Fee 3.00% 3.00% Sewer Connection Fee 5.00% 9.00% Work Session Discussion During the work session, the Council reviewed the study’s financial recommendations, discussed future capital improvements, and raised questions about the water rate structure and ongoing consumption patterns. The Page 9 of 44 questions centered around changes adopted to the water rate structure in 2023 and whether an additional tier could be implemented for high volume residential water use. The City has used a tiered water rate structure to assign a higher price on water consumed above certain thresholds, making it both more expensive to use large amounts of water. A goal of the 2022 study was to restructure the City’s water rates to improve conservation efforts and increase the allocation of costs to high consumption and the seasonal use patterns driving demands on system capacity. For 2023, the Council approved tightening residential tier thresholds to better align with general patterns of essential (i.e. “indoor”) use versus non-essential (irrigation and other outdoor) use. The Council also added a third tier to Commercial accounts and tightened the tier threshold applied to Irrigation-only accounts. As part of this year’s study, Ehlers analyzed the actual 2023 water consumption data to verify the adequacy of the existing usage tiers and inform future revenue projections. The findings confirmed that the newly established tiers are aligned appropriately with seasonal usage patterns. The analysis also validated the policy objective that revenues from consumption within each of the City’s customer classifications (Residential, Commercial, and Multifamily) align with their water use. However, during summer and fall quarters a large amount of residential consumption remains well above the highest tier threshold. This suggests an additional tier may well be warranted. While our current analysis provides a solid baseline to inform at what level of consumption another tier could be established, additional analysis and data validation can better inform setting the appropriate tier break, its corresponding pricing, as well as model long-term revenue impacts. Additional questions the council may want to conside include: - Whether the 4th tier intended to be revenue neutral, meaning there would be a potential reduction to lower tier residential pricing to further incentivize limited use? - The tier threshold for Irrigation-only accounts was designed to match that of residential accounts. If a 4th residential tier is established should an additional tier be added to Irrigation-only accounts as well? - If not, should irrigation-only accounts be subject to the same 4th tier residential water price? Implementation Options The recommendations from the Utility Rate Study are included within the fee schedule under consideration December 2nd so that they can be in effect for 2026. In consideration of the next steps for establishing a fourth residential tier, we recommend the Council consider the following options: - Option #1: Proceed with the recommendations of the Utility Rate Study and continue discussion of a 4th residential tier for implementation before the 2026 summer quarter. • Utilize the existing analysis to establish a 4th tier within the same timeline that the City updates its fee schedule for the Morningside Area water customers once Minneapolis has finalized its wholesale water charges (anticipated in early 2026). - Option #2: Proceed with the recommendations of the Utility Rate Study only. • Plan to consider establishing a 4th tier as part of next year’s 2027 fee schedule adoption process. • Gather more usage data from 2024/2025 to inform the analysis and discuss corresponding rate setting for Irrigation-only accounts. - Option #3: Pause the current utility rate implementation timeline and re-evaluate funding needs in 2026 We look forward to continuing our work with the City. Please contact me at 651-697-8507 if you have any questions or require further information. Page 10 of 44 Proposed 2026 Utility Rates - Comparison to 2025 Rates Page 11 of 44 4 Page 12 of 44 BUILDING COMMUNITIES. IT’S WHAT WE DO. December 2, 2025 UTILITY RATE ANALYSIS FOR 2026 RATES: City of Edina, MN Prepared by: Ehlers 3060 Centre Pointe Drive Roseville, Minnesota 55113 Page 13 of 44 City of Edina, MN Utility Rate Study Analysis 1 TABLE OF CONTENTS I. EXECUTIVE SUMMARY II. METHODOLOGY AND ASSUMPTIONS III. BACKGROUND INFORMATION IV. WATER FUND ANALYSIS V. SANITARY SEWER FUND ANALYSIS VI. STORM SEWER FUND ANALYSIS VII. CASH RESERVES VIII. COMMUNITY COMPARISON IX. SUMMARY APPENDIX A: CAPITAL IMPROVEMENT PLANS AND CASHFLOW MODELS 2 3 4 8 12 14 15 17 21 Page 14 of 44 City of Edina, MN Utility Rate Study Analysis 2 I. EXECUTIVE SUMMARY The City of Edina, Minnesota (“City”) conducts periodic reviews of its utility rates and charges, operating expenses and future needs through a utility rate study. The goal of each study is to ensure self-sufficiency and the long-term financial health of the utility enterprise funds. The recommendations from the last such study were first implemented in 2023, which included amending its existing water and sewer rate structures to respond to customer feedback and tighten conservation measures. In 2025, the City engaged Ehlers to update the utility rate study. The goals of the study were to: • Develop a funding plan to support utility operations, outstanding debt obligations and future capital improvements. • Analyze the sufficiency of each fund’s rate structure as it relates to cost recovery for fixed overhead and usage patterns. • Inform ongoing capital planning and policy decisions. • Establish utility rates that will be adequate to grow and maintain appropriate fund balance. Municipal utility funds are enterprise funds. They are intended to be operated like a self-sufficient private enterprise in which the fee revenue pays for all associated operations and capital expenses. In the City’s Annual Comprehensive Financial Report (ACFR), enterprise funds are segregated funds, recognizing the unique purpose and revenue streams of these functions. In addition to the ACFR segregating the enterprise funds, the City’s Capital Improvement Plan (CIP) distinguishes between projects that will be funded by the enterprise funds. Utilities are capital intensive operations with over $300 million in future capital costs estimated for the three utility funds between 2026 and 2035. This report provides the key findings and recommendations of the 2025 study, as well as descriptions of the study’s underlying assumptions and other supporting information. Page 15 of 44 City of Edina, MN Utility Rate Study Analysis 3 II. METHODOLOGY AND ASSUMPTIONS Funding capital improvements for a redeveloping community as well as replacing aging utility infrastructure drive the need for adequate utility revenue. Specifically for this purpose, Ehlers worked with City staff to develop an updated 10-year Capital Improvement Plan for the water, sewer and storm water utilities (See Appendix A). This exercise intentionally extended beyond the existing City’s 5-year CIP adopted in December, 2024 to further anticipate long-term system needs. As part of this study, Ehlers prepared a 10-year cash flow projection for each utility fund through the year 2035. This projection examines anticipated revenue and expenditure cash flows in future years and estimates the potential revenue increases from user rates necessary to meet all anticipated financial obligations of each utility fund while maintaining adequate cash reserves to continue to support operational and future capital needs. The cash flow analysis method determines future revenue requirements by incorporating operating and maintenance expenses, transfer payments, current and future debt service and anticipated future capital outlays. We also build in future growth estimates for the model to anticipate associated costs and calculating connection fees. The primary financial inputs of the analysis were the City’s audited financial statements, current budget documents, annual water billing data for 2023, and the aforementioned Capital Improvement Plan. The study assumes a baseline of approximately 2.0 billion gallons per year of water consumption based on applying a 12.6% reduction factor adjusted from the test year 2023 actual use. The 2023 data set was selected to validate the rate structure put in place from the prior study and reflective of a “normal” rainfall year versus high rainfall in 2024. The cashflow projections include the following assumptions: • 3% annual operating expense growth; 5% for personnel costs. Page 16 of 44 City of Edina, MN Utility Rate Study Analysis 4 • 7% annual inflation on Met Council Environmental Service (MCES) disposal charges (Sanitary Sewer Fund only). • 1% investment income • Growth of 175 new SAC units per year for the connection fee analysis • We did not assume any additional water consumption tied to growth for our user revenue calculations. This is intended to be conservative for purpose of funding expectations and also based on historical observations on city-wide usage patterns decreasing as conversions to more efficient appliances and fixtures in new and existing development. III. BACKGROUND INFORMATION Water Fund There are three main components to the City’s water utility revenues: • Base Fee - fixed charge • Volumetric (Usage) Charges • WAC Fees (Water Access Charge or connection fee) Current fixed charges are a quarterly fee based on the size of the water meter. The fixed charge is established to recover certain administration expenses, such as meter reading and billing, plus a portion of distribution costs. The 2025 fixed charge for single family residential accounts is $28.62 per quarter for a ¾” meter and it increases as the size of the meter increases. Volumetric charges are based on the metered water use during the quarter. Water is sold in units and one unit represents 1,000 gallons. The billing structure for most Edina residents is tiered so that the rate per unit increases for additional use above defined thresholds. The City has tiered rates in place for Residential, Commercial and Irrigation accounts. - Multifamily non-irrigation accounts are charged at a flat usage rate as the accounts do not separately meter each unit’s individual consumption. - Water usage in the Morningside area is charged at a flat rate per unit to cover the cost of purchasing water from the City of Minneapolis who supplies that area and a pro-rata share of the City’s distribution costs. Page 17 of 44 City of Edina, MN Utility Rate Study Analysis 5 Water Access Charges (WAC) are paid by developers of new homes and businesses when a building permit is pulled. The fee is not charged on replacing or renovating an existing unit, only upon adding a new connection to the system. The connection fees help pay for capacity expansion capital costs. The City currently charges $3,235 per unit. Capital and annual debt expenditures comprise 50% of the total 2025 budgeted expenditures in the Water Fund as shown in Figure 1. The annual investment in capital improvements do not fluctuate with consumption; therefore, the fund’s revenue stream needs to be reliable from year to year. Figure 1. 2025 Budgeted Water Expenditures (Excluding Depreciation) Sanitary Sewer Fund There are two components to the City’s sanitary sewer utility revenues: • Usage Fees • SAC Fees (Sewer Access Charge or connection fee) Currently, usage fees are based on the lesser of the metered use of water in the winter quarter or current quarter, with a minimum of 8,000 gallons charged to all users. As single-family residential properties do not have an additional meter to specifically measure external use that does not enter the sewer system, Winter quarter averaging is used to avoid billing for residential irrigation use. Run-off due to water used externally is part of the storm water collection system and should not be part of the sewer charge. Page 18 of 44 City of Edina, MN Utility Rate Study Analysis 6 The minimum charge is established similar to the water fixed charge to provide season cashflow stability for the fund and recover certain administration and distribution fixed costs that the system bears regardless of use. As part of the 2023 implementation, the sewer minimum was reduced from 12,000 gallons in response to customer feedback and to make sewer charges more affordable for low volume customers. Sewer Access Charges (SAC) are paid by developers of new homes and businesses when a building permit is pulled. The fee is not charged on replacing or renovating an existing unit, only upon adding a new connection to the system. The connection fees help pay for capacity expansion capital costs. The City currently charges $2,968 per unit. The City participates in the Metropolitan Council Environmental Services (MCES) sewer system. This means that the City’s sanitary sewer system flows in the MCES treatment plant and the City receives a bill for the service. The City does not maintain its own treatment plant. MCES allocates the cost of the metro area sanitation system to user cities based on their relative percent flow into their treatment system. Total MCES charges have increased 5.6% and 5.8% in the most recent years. Currently, the MCES charge is approximately 39% of the City’s sewer fund budgeted annual expenditures, the single largest expense within the fund. The Sanitary Sewer Fund’s capital and annual debt service expenditures comprise another 42% of the total 2025 budgeted expenditures as shown in Figure 2. Together with MCES, 81% of the annual cash expenditures do not fluctuate directly with the city’s user consumption; therefore, the fund’s revenue stream needs to be reliable from year to year. Page 19 of 44 City of Edina, MN Utility Rate Study Analysis 7 Figure 2. 2025 Budgeted Sanitary Sewer Expenditures (Excluding Depreciation) Storm Sewer Fund The storm sewer fund was created to pay for the management of storm water runoff in concert with the local watershed. City projects include repair and maintenance of storm water infrastructure such as catch basins, manholes, pipes and sediment collection devices. Capital costs for the stormwater system have increased in recent years to meet increasingly stringent state standards intended to improve water quality. In addition, there are related construction costs in connection with street reconstruction and flood mitigation efforts. The City’s storm sewer fund revenue is a fixed charge applied to each account’s type of property use. Single- or Double-dwelling unit properties pay a fixed quarterly fee established as the stormwater drainage charge. Commercial and other property types are charged this same fee adjusted by Residential Equivalency Factor (REF) and multiplied by the actual acreage of the property. The REF is a standardized unit intended to allocate stormwater costs to other property types by the intensity of land use and potential impervious surface relative to that of a typical single-family home. Capital and annual debt expenditures within the storm sewer fund comprise 63% of the total 2025 budgeted expenditures as shown in Figure 3 below. Page 20 of 44 City of Edina, MN Utility Rate Study Analysis 8 Figure 3. 2025 Budgeted Storm Sewer Expenditures (Excluding Depreciation) IV. WATER FUND ANALYSIS For many years, the City has utilized a tiered rate structure setup to incentivize water conservation. However, the prior rate study determined that the existing structure was not actively impacting patterns of high residential use throughout the community. MN Department of Natural Resources (MN DNR) estimates that the average Minnesota resident uses 52 gallons per person per day for all water use. At 2.3 persons per Edina household, this equates to 10,764 gallons per household each quarter. Historical Edina use patterns suggested average winter quarter use of 13,700 gallons and increasing above 27,500 gallons in the summer watering period. Under the 2022 rate structure, a small percentage of residential accounts had any use that exceeded its tier 1 level (26,000 gallons) and an even smaller percentage had any use beyond tier 2 (49,000). The structure was determined to lack an adequate price signal for customers to monitor their usage or incentivize conservation, resulting in similar fees being collected for all water use: whether for essential use, outdoor irrigation, or others. The City implemented tightening residential tiers 1 and 2 starting in 2023 to promote conservation, coupled with reducing the rate applied to tier 1 use and allocating more costs to tier 2 and 3 use. The policy established new tier Page 21 of 44 City of Edina, MN Utility Rate Study Analysis 9 breaks designed so that essential use largely fell within tiers 1 and 2, while a higher degree of consumption during summer and fall quarter patterns when use increases dramatically primarily from outdoor watering would now be included in the highest priced tier 3. Irrigation-only accounts usage would also be priced equivalent to the higher tiers. The restructuring was implemented for 2023, and this study analyzed the actual 2023 use to review the adequacy of the tier breaks. As shown in Figure 4, only 7% of residential accounts had usages exceeding the second-tier break during the winter period of lowest seasonal consumption. During this observed period, the median residential use was 11,000 gallons, all of which charged at the lowest tier rate. This suggests that the implemented tier breaks adequately match patterns of indoor or “essential” residential use, while still providing a moderate pricing incentive to curb tier 2 use for over 40% of users. Figure 4. Current Tiers and Residential Accounts by Usage (1Q, 2023) As shown in Figure 5, the summer usage pattern dramatically increases, with 61% of residential accounts exceeding the second-tier break. Median use increased to 32,400 gallons during this period. Under the previous rate Page 22 of 44 City of Edina, MN Utility Rate Study Analysis 10 structure, the first 26,000 gallons would have been charged at the tier 1 rate and the remaining 6,400 gallons at tier 2. The previous tier 3 rate would not be applied. In fact, the tier 3 rate would not have applied its conservation pricing incentive for over 66% of residential accounts during that period when residential use was over three times the MN DNR average. As a result of the restructuring, the first 12,000 gallons were charged at the reduced tier 1 rate, the next 12,000 at a tier 2 rate, and the remaining 8,400 of median use (26% of the total 32,400) now received a pricing signal to monitor consumption more closely. Figure 5. Current Tiers and Residential Accounts by Usage (3Q, 2023) An additional objective of the City’s 2023 implemented rate restructuring sought to balance water consumption with the usage revenue received among the City’s different user types. Figure 6 shows the composition of 2023 usages among the Residential, Multifamily and Commercial classifications. These comparisons include the irrigation use among the different types. Based on the balanced composition of each classification’s total consumption and allocated usage charges, the study does not recommend any changes to the City’s rate structure at this time. Page 23 of 44 City of Edina, MN Utility Rate Study Analysis 11 Figure 6. Water Consumption and Use Revenue by Classification (2023) Water Revenue Needs The primary objectives of a water rate study are to determine sufficiency of charges to support ongoing operations and determine what annual rate increases are necessary to help pay for the capital reinvestment anticipated for the City’s water system. Between 2026 and 2035, City staff has identified the water utility funding potentially $114 million in capital improvements. This list of projects includes ongoing street reconstruction efforts, equipment replacement, well rehabilitation, replacement of aging infrastructure, and also the construction of the new Water Treatment Plant #5. A detailed project listing is included within Appendix A. Water connection fees are collected when new units are added to the system in order to fund a portion of this CIP. The study recommends the city implement a 3% increase to its WAC fees to $3,332 per unit. At this level, WAC fees are anticipated to fund approximately $12 million (or 10.5%) of the capacity expansion projects identified within the CIP over the 10-year projection. The remaining CIP and ongoing operations are recommended to be funded from a combination of cash and debt supported by revenues from the City’s base fee and volumetric water user rates. The complete proposed water rate structure can be seen in Table 1. The proposed changes are estimated to Page 24 of 44 City of Edina, MN Utility Rate Study Analysis 12 generate a 5.25% increase in water revenue in 2026. For the remaining period, the study recommends uniform annual inflationary rate increases of 5.25% from 2027-2035 to continue to fund operations and the CIP. This is a slight increase from the previous study’s recommendation of 5% annual increases. Table 1. Proposed 2026 Water Rates V. SANITARY SEWER FUND ANALYSIS The Utility Rate Study does not recommend any structural changes to the City’s sanitary sewer rates. The analysis focuses on determining the sufficiency of charges to support ongoing operations and what level of annual rate increases are necessary to help pay for the anticipated capital reinvestment needed for the City’s sanitary sewer system. Between 2026 and Page 25 of 44 City of Edina, MN Utility Rate Study Analysis 13 2035, the City has identified over $91 million in capital improvements to be funded from the sewer utility fund. This includes ongoing replacement of sewer mains under street reconstruction projects, equipment replacement, and anticipates the costs of constructing the York and South (Cahill) Trunk capacity expansion projects. A detailed project listing is included within Appendix A. Sewer connection fees are collected when new units are added to the system in order to fund a portion of this CIP. The study recommends the city implement a 9% increase to its SAC fees to $3,235 per unit based on the projected CIP capacity expansion projects. Sewer connection fees are anticipated to fund approximately $16.7million (or 18%) of the CIP projects over the 10-year projection. The remaining CIP and ongoing operations are recommended to be funded from a combination of cash and debt supported by revenues from the City’s sanitary sewer usage rate. Since the MCES charge is the single largest expense within the sanitary sewer fund (39% of the fund’s budgeted annual expenses), the primary driver for the rate increases is based on keeping pace with future MCES charges - assumed to grow at 7% annually. A comparison between the City’s 2025 and proposed 2026 sewer charges can be seen in Table 2. The proposed changes are estimated to generate a 9.25% increase in sewer fund revenue in 2026. Upon confirming annual MCES charges, the study recommends continuing with uniform annual inflationary rate increases of 9.25% from 2027-2030 to fund the forecasted operations (including MCES expenses) and anticipated CIP expenditures. This is an escalated level of increases beyond the 6.0% recommended from the previous study. Page 26 of 44 City of Edina, MN Utility Rate Study Analysis 14 Table 2. Proposed 2026 Sanitary Sewer Rates VI. STORM SEWER FUND ANALYSIS The primary objective of the storm sewer rate study is to perform a revenue analysis determining the sufficiency of the City’s stormwater charges to support ongoing operations and pay for anticipated capital reinvestment. Between 2026 and 2035, the City has identified the storm sewer utility funding potentially $98 million in capital improvements. The list of CIP projects is largely comprised of ongoing street reconstruction efforts and various projects identified in response to the City’s Flood Risk Reduction Strategy. A detailed project listing along with their anticipated timing is included within Appendix A. The CIP and ongoing operations are recommended to be funded from a combination of cash and debt supported by revenues from the City’s storm sewer charges. A comparison between the City’s 2025 and proposed 2026 charges can be seen in Table 3. The recommended rate increase is estimated to generate a 15.0% increase in fund revenue in 2026 in order to build up resources to fund the CIP’s significant capital investment through 2028 and service the anticipated debt. The pace of recommended increases is phased to 14% in 2027 and 2028, and lowered to 8.5% in later years of this study’s CIP. Page 27 of 44 City of Edina, MN Utility Rate Study Analysis 15 Table 3. Proposed 2026 Storm Sewer Rates VII. CASH RESERVES The proposed rate increases informed by this analysis for the water, sanitary sewer and storm sewer utilities are designed to maintain the financial health of each of the utility funds. The study designed a specific target cash reserve for each fund in order to position them for continued self-sufficiency and avoid excessive reliance on debt. The target is set as the annual amount necessary to provide adequate operating cashflow plus be able to fund the next year’s debt service payments, a portion of expected capital expenditures, as well as a $3 million reserve within the water and sanitary sewer funds for line breaks or other unplanned replacement costs. The 2026 and following annual increases in rates are designed to achieve this target cash reserve by 2035. Figures 7 to 9, below, show graphs comparing the projected year-end cash balance in the fund (in dark blue) against the City’s target cash reserve (in light blue) for the full period of the study. Page 28 of 44 City of Edina, MN Utility Rate Study Analysis 16 Figure 7. Projected Water Fund Cash Balances Note: Cash balance in 2030 reflects receipt of bond proceeds in anticipation of multi- year construction of Water Treatment Plant #5. Figure 8. Projected Sanitary Sewer Fund Cash Balances Page 29 of 44 City of Edina, MN Utility Rate Study Analysis 17 Figure 9. Projected Storm Sewer Fund Cash Balances VIII. COMMUNITY COMPARISON Every community’s utility system has features and differing demands that make it unique – growth patterns, groundwater sources, soil conditions, geography, usage patterns and differing infrastructure. Therefore, we recommend rates be set based on each individual community’s documented needs while it goes through its periodic rate review. Nevertheless, it is helpful to know how the City compares to neighboring and peer communities within the metropolitan area. Figures 10 to 12 are provided to compare the utility bills of sample Edina residential customers against the 2025 charges imposed for the same use in other peer communities (2026 fee schedules for peers are unavailable). Figure 10 shows the combined quarterly utility bill expected for water, sewer and stormwater charges of an example residential user with a ¾” meter and consuming 12,000 gallons. Figures 11 and 12 compare water bills for sample residential accounts consuming 24,000 and 50,000 gallons. Page 30 of 44 City of Edina, MN Utility Rate Study Analysis 18 Figure 10. Residential Quarterly Bill Comparison of Neighboring Communities Figure 11. Residential Quarterly Water Bill Comparison - 24,000 gallon use Page 31 of 44 City of Edina, MN Utility Rate Study Analysis 19 Figure 12. Residential Quarterly Water Bill Comparison - 50,000 gallon use Tables 4 through 7 are provided to show the impacts of the proposed 2026 utility rate changes on sample residential and commercial users. For instance, as shown in Table 4, the proposed rates for 2026 on a 10,000 gallon residential user at the sewer minimum with a ¾” meter is expected to be paying approximately 9.8% more for the same use under the prior rates and charges. Table 4. Impacts to Residential Bill – 10k gallon water; 8k gallon sewer Page 32 of 44 City of Edina, MN Utility Rate Study Analysis 20 Table 5. Impacts to Residential Bill – 24k gallon water; 12k gallon sewer Table 6. Impacts to Commercial Bill – 24k gallons; 1” meter Table 7. Impacts to Commercial Bill – 502,000 gallons; 1” meter Page 33 of 44 City of Edina, MN Utility Rate Study Analysis 21 IX. SUMMARY The City of Edina’s utility funds have been well managed and have adequate cash reserves. However, inflationary changes to annual operating costs place upward pressure on revenue needs as it is. Additionally, each utility is facing unique challenges related to anticipated reconstruction and future capital investment needs based on the anticipated CIP and long-range policy objectives. The proposed water utility increases accommodate the City’s commitment to funding street reconstruction projects, expanding and maintaining the system, achieving water conservation, and maintaining adequate cash reserves. Our analysis of the 2023 water usage indicates there is no immediate need to change the existing rate structures to improve the equitable allocation of charges among the city’s customer classes. However, the City has expressed an ongoing interest in further promoting water conservation within its water rate structure, primarily through adding a fourth tier to residential water structure applied to extreme summer use. In discussions with staff leading up to the scope of this study, we did not specifically analyze the design of a fourth tier nor forecast its potential second-order consumption behavioral or fund revenue impacts. Conservation tiers are required to be set in a defensible manner using clearly defined threshold values and is supported by documented usage characteristics. We recommend additional analysis to review potential tier boundaries, model impacts, verify the timeline required to program or reconfigure the City’s billing software, and discuss corresponding equity adjustments to the City’s proposed irrigation and other tier usage rates. However, we believe that the required exercise could be completed to add a fourth tier in 2026 ahead of the high usage watering season. In closing, to address the financial needs of each fund Ehlers’ study proposes setting 2026 rates to achieve 5.25% revenue increase in the water fund, 9.25% increase in the sanitary sewer fund, and 15.0% in the storm sewer fund as depicted in Tables 1 to 3 in this report. Page 34 of 44 City of Edina, MN Utility Rate Study Analysis 22 Appendix A – Capital Improvement Plans (CIP) and Cashflow Models Water Fund Sanitary Sewer Fund Storm Sewer Fund Page 35 of 44 Capital Project 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Utilities Equipment Replacement PWK23201 Var 66,667 225,667 99,000 214,000 188,000 - - - - - New Water Treatment Plant 5 - Southdale 15-162 2029 - - - 2,166,667 - - - - - - New Water Treatment Plant 5 - Southdale 15-162 2030 - - - - 2,166,667 - - - - - New Water Treatment Plant 5 - Southdale 15-162 2031 - - - - - 2,166,667 - - - - New Water Treatment Plant 5 - Southdale 15-162 2030 - - - - 12,500,000 - - - - - New Water Treatment Plant 5 - Southdale 15-162 2031 - - - - - 12,500,000 - - - - Asset Management Software and Equipment 15-173 Var 10,000 10,000 10,000 - - - - - - - Pamela Park B (Peacdale Ave) Reconstruction ENG25010 2029 - - - 492,398 - - - - - - Pamela Park C (Halifax Ave) Reconstruction ENG25011 2029 - - - 376,540 - - - - - - Breamar Hills E (Washington Ave) Reconstruction ENG25012 2030 - - - - 51,164 - - - - - Minnehaha Woods D Reconstruction ENG25076 2029 - - - 897,902 - - - - - - Watermain Rehabilitation (Citywide) ENG23035 2026 1,400,000 - - - - - - - - - South Cornelia B Reconstruction ENG25077 2027 - 1,530,669 - - - - - - - - South Cornelia D Reconstruction ENG25078 2030 - - - - 2,343,549 - - - - - Prospect Knolls A Reconstruction ENG23001 2026 1,700,000 - - - - - - - - - Prospect Knolls C Reconstruction 19-308 2026 854,577 - - - - - - - - - Prospect Knolls D Reconstruction 19-309 2026 260,088 - - - - - - - - - Chowen Park C Reconstruction ENG25005 2028 - - 2,434,705 - - - - - - - Chowen Park E Reconstruction ENG25006 2028 - - 1,511,196 - - - - - - - Indian Trails A Reconstruction 19-314 2027 - 584,530 - - - - - - - - Benton Avenue A Reconstruction ENG23004 2030 - - - - 369,875 - - - - - Todd Park B Reconstruction ENG23003 2028 - - 783,583 - - - - - - - W 77th Street D Reconstruction ENG25003 2029 - - - 379,800 - - - - - - Water Main Condition Assessment 19-351 Var 160,000 160,000 165,000 160,000 160,000 - - - - - Maloney Ave Watermain Rehabilitation ENG25044 2026 1,000,000 - - - - - - - - - Watermain Replacement LB Tr/Shannon Dr/Coventry Way ENG25046 2026 225,000 - - - - - - - - - Heights Neighborhood Watermain Rehabilitation ENG25047 2029 - - - 6,250,000 - - - - - - Well #2 Rehabilitation and Facility Improvement PW23007 2028 - - 170,000 - - - - - - - Well #6 Rehabilitation and Facility Improvements PW23008 2028 - - 180,000 - - - - - - - Well #7 Rehabilitation 19-913 2029 - - - 120,000 - - - - - - Well #11 Rehabilitation and Facility Improvements 19-915 2026 120,000 - - - - - - - - - Well #11 Rehabilitation and Facility Improvements 19-915 2030 - - - - 120,000 - - - - - Well #10 Rehabilitation and Facility Improvements PW23004 2030 - - - - 120,000 - - - - - Well #12 Rehabilitation and Facility Improvements PW23005 2027 - 180,000 - - - - - - - - Well #13 Rehabilitation and Facility Improvements PW23006 2028 - - 180,000 - - - - - - - Well #15 Rehabilitation and Facility Improvements PW23002 2030 - - - - 140,000 - - - - - The Heights A Reconstruction ENG25013 2030 - - - - 2,248,376 - - - - - The Heights C Reconstruction ENG25014 2030 - - - - 1,873,647 - - - - - Parklawn (Parklawn Ct) Reconstruction ENG25074 2026 59,449 - - - - - - - - - Rolling Green Reconstrucion ENG25075 2027 - 1,676,678 - - - - - - - - Countryside E Reconstruction ENG23002 2030 - - - - 584,093 - - - - - Minnehaha Woods B Reconstruction ENG25009 2029 - - - 692,075 - - - - - - Hilary Lane Reconstruction ENG23101 2030 - - - - 786,652 - - - - - Parklawn Avenue A Reconstruction ENG25002 2029 - - - 201,768 - - - - - - West 76th Street A Reconstruction ENG25064 2029 - - - 247,724 - - - - - - Fire Station #2 York Ave Building Demo FAC25109 2026 500,000 - - - - - - - - - Water Meter Radio Receivers PWK25101 Var 1,380,000 1,400,000 1,430,000 1,460,000 - - - - - - Filter Media Replacement PWK25102 2029 - - - 450,000 - - - - - - Filter Installation, Van Valkenburg Tower PWK25103 2026 160,000 - - - - - - - - - Grandview Area Watermain Improvements PH 2 ENG23036 2028 - - 240,000 - - - - - - - Water Supply Grandview Area PH 3 ENG21058 2027 - 2,500,000 - - - - - - - - Water Supply 50th and France ENG21059 2031 - - - - - 2,000,000 - - - - Water Supply Pentagon Park ENG21060 2030 - - - - 1,000,000 - - - - - Southdale Water Tower Replacement Project 2035 - - - - - - - - - 9,000,000 70th Street Watermain Upsizing Project 2035 - - - - - - - - - 5,000,000 Interlachen Blvd Reconstruction, ENG25201 ENG25201 2027 - 786,652 - - - - - - - - Future water improvements 2031 - - - - - 4,000,000 - - - - Future water improvements 2032 - - - - - - 4,100,000 - - - Future water improvements 2033 - - - - - - - 4,200,000 - - Future water improvements 2034 - - - - - - - - 4,300,000 - Future water improvements 2035 - - - - - - - - - 4,400,000 7,895,781 9,054,196 7,203,484 14,108,874 24,652,023 20,666,667 4,100,000 4,200,000 4,300,000 18,400,000 Water Total Capital Projects Project YearProject Number Page 36 of 44 City of Edina , MN Utility Rate StudyBase Model - Fund Cashflows Budget 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Revenue Growth - Rates 5.00%5.00%5.25%5.25%5.25%5.25%5.25%5.25%5.25%5.25%5.25%5.25% Expense growth - operating 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% Expense growth - personnel 5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00% Expense growth - MCES (Sewer Only)0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Beginning net assets 49,140,300 53,963,465 57,141,989 60,827,232 64,969,816 69,543,554 74,598,153 80,109,092 86,226,616 92,736,259 99,778,538 107,412,178 Operating Revenues Water revenues 10,631,204 10,674,391 11,898,722 12,523,405 13,180,884 13,872,880 14,601,207 15,367,770 16,174,578 17,023,743 17,917,490 18,858,158 Sanitary sewer revenues Storm sewer revenues Total Operating Revenues 10,631,204 10,674,391 11,898,722 12,523,405 13,180,884 13,872,880 14,601,207 15,367,770 16,174,578 17,023,743 17,917,490 18,858,158 Operating Expenses Personal services 1,716,480 1,672,131 1,765,273 1,854,468 1,947,191 2,044,551 2,146,779 2,254,117 2,366,823 2,485,164 2,609,423 2,739,894 Contractual services 1,653,859 2,033,536 1,799,411 1,782,493 1,835,968 1,891,047 1,947,778 2,006,212 2,066,398 2,128,390 2,192,242 2,258,009 Commodities 848,253 1,085,800 1,123,800 1,135,000 1,169,050 1,204,122 1,240,245 1,277,452 1,315,776 1,355,249 1,395,907 1,437,784 Internal services 607,078 584,808 602,668 654,439 674,072 694,294 715,123 736,577 758,674 781,434 804,877 829,024 MCES - Sanitary Sewer Only 0 0 0 0 Depreciation 2,847,015 2,932,425 3,020,398 3,111,010 3,204,340 3,300,471 3,399,485 3,501,469 3,606,513 3,714,709 3,826,150 3,940,935 Total Operating Expenses 7,672,685 8,308,700 8,311,550 8,537,410 8,830,622 9,134,484 9,449,410 9,775,828 10,114,185 10,464,947 10,828,599 11,205,645 Net Operations 2,958,519 2,365,691 3,587,172 3,985,995 4,350,262 4,738,396 5,151,797 5,591,942 6,060,393 6,558,796 7,088,891 7,652,513 Non-operating revenues (expenses) Investment Income (Loss)420,853 140,000 144,200 148,526 138,056 161,900 144,100 257,924 137,015 139,483 147,110 161,715 Intergovemental revenue 0 0 0 0 0 0 0 0 0 0 0 0 Interest on existing debt (242,762)(251,025)(345,369)(300,138)(240,800)(190,475)(148,850)(115,925)(91,625)(80,750)(48,625)(39,500) Connection Fee Revenue 1,515,706 771,750 583,109 600,602 618,620 637,179 656,294 675,983 696,262 717,150 738,665 760,825 Other income (expense)3,332 3,332 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Transfers in Transfers out (268,101)(149,412)(288,869)(297,401)(297,401)(297,401)(297,401)(297,401)(297,401)(297,401)(297,401)(297,401) Bond discount 164,665 Bond costs (58,239) Bond premium 356,427 Total non operating revenue (expenses)1,593,693 812,833 98,071 156,590 223,475 316,203 359,143 525,581 449,251 483,482 544,749 590,639 Net increase (decrease) in resources 4,552,212 3,178,524 3,685,243 4,142,585 4,573,737 5,054,599 5,510,940 6,117,523 6,509,644 7,042,278 7,633,640 8,243,152 Change in accounting principle 270,953 Ending net assets 53,963,465 57,141,989 60,827,232 64,969,816 69,543,554 74,598,153 80,109,092 86,226,616 92,736,259 99,778,538 107,412,178 115,655,330 Water Fund Actual Preliminary Projected Page 37 of 44 City of Edina , MN Utility Rate StudyBase Model - Fund Cashflows Budget 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Revenue Growth - Rates 5.00%5.00%5.25%5.25%5.25%5.25%5.25%5.25%5.25%5.25%5.25%5.25% Expense growth - operating 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% Expense growth - personnel 5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00% Expense growth - MCES (Sewer Only)0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Water Fund Actual Preliminary Projected CIP Funding Purchase of Capital Assets (6,487,134)(7,895,781)(9,054,196)(7,203,484)(14,108,874)(24,652,023)(20,666,667)(4,100,000)(4,200,000)(4,300,000)(18,400,000) Bond Proceeds 3,215,000 2,814,700 3,207,300 3,945,900 6,250,000 4,000,000 12,000,000 Bond Proceeds - Expansion Projects 6,250,000 Bond Proceeds-Water Treatment Plant 23,750,000 Unspent bond proceeds Bond P&I - Future (348,757)(348,757)(348,757)(348,757)(348,757)(348,757)(348,757)(348,757)(348,757) Bond P&I - Future Bond P&I - Future (402,351)(402,351)(402,351)(402,351)(402,351)(402,351)(402,351)(402,351) Bond P&I - Future Bond P&I - Future (375,035)(375,035)(375,035)(375,035)(375,035)(375,035)(375,035) Bond P&I - Future (1,905,761)(1,905,761)(1,905,761)(1,905,761)(1,905,761) Bond P&I - Future (789,868)(789,868)(789,868)(789,868)(789,868)(789,868) Bond P&I - Future (501,516)(501,516)(501,516)(501,516)(501,516) Bond P&I - Future (505,515)(505,515)(505,515)(505,515) Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future (505,515)(505,515)(505,515)(505,515) Bond Prin - Existing (1,900,000)(1,580,000)(1,400,000)(1,645,000)(1,385,000)(1,150,000)(960,000)(720,000)(435,000)(460,000)(365,000)(385,000) Beginning Cash 12,178,143 12,909,292 14,168,107 14,392,668 13,805,610 16,189,996 14,410,049 25,792,441 13,701,479 13,948,317 14,710,986 16,171,458 Ending Cash 12,909,292 14,168,107 14,392,668 13,805,610 16,189,996 14,410,049 25,792,441 13,701,479 13,948,317 14,710,986 16,171,458 16,236,225 Other investments 0 0 0 0 0 0 0 0 0 0 Ending net assets 53,963,465 57,141,989 60,827,232 64,969,816 69,543,554 74,598,153 80,109,092 86,226,616 92,736,259 99,778,538 107,412,178 115,655,330 Target minimum working capital 9,286,597 9,469,886 10,078,010 10,296,718 10,546,385 11,270,002 13,575,339 14,453,866 14,650,806 14,712,732 14,919,118 15,121,323 Actual working capital-cash balance 12,909,292 14,168,107 14,392,668 13,805,610 16,189,996 14,410,049 25,792,441 13,701,479 13,948,317 14,710,986 16,171,458 16,236,225 Over (Under) target working capital 3,622,695 4,698,221 4,314,658 3,508,892 5,643,611 3,140,047 12,217,101 (752,387)(702,488)(1,746)1,252,339 1,114,902 Page 38 of 44 Capital Project 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Utilities Equipment Replacement PWK23201 Var 66,667 225,667 99,000 214,000 188,000 - - - - - Asset Management Software and Equipment 15-173 Var 10,000 10,000 10,000 - - - - - - - Chowen Park C Reconstruction ENG25005 2028 - - 929,616 - - - - - - - Chowen Park E Reconstruction ENG25006 2028 - - 577,003 - - - - - - - Pamela Park B (Peacdale Ave) Reconstruction ENG25010 2029 - - - 188,007 - - - - - - Pamela Park C (Halifax Ave) Reconstruction ENG25011 2029 - - - 143,770 - - - - - - Prospect Knolls A Reconstruction ENG23001 2026 686,265 - - - - - - - - - Prospect Knolls C Reconstruction 19-308 2026 573,550 - - - - - - - - - Prospect Knolls D Reconstruction 19-309 2026 174,559 - - - - - - - - - Braemar Hills E (Washington Ave) Reconstruction ENG25012 2030 - - - - 34,339 - - - - - The Heights A Reconstruction ENG25013 2030 - - - - 858,472 - - - - - The Heights C Reconstruction ENG25014 2030 - - - - 715,394 - - - - - Indian Trails A Reconstruction 19-314 2027 - 392,308 - - - - - - - - Minnehaha Woods D Reconstruction ENG25076 2029 - - - 342,836 - - - - - - South Cornelia B Reconstruction ENG25077 2027 - 1,071,904 - - - - - - - - South Cornelia D Reconstruction ENG25078 2030 - - - - 957,073 - - - - - Sanitary Trunk Capacity Expansion York Segs 4 & Fairview 19-336 2027 - 2,350,000 - - - - - - - - Sanitary Trunk Capacity Expansion York Segs 4 & Fairview 19-336 2028 - - 2,350,000 - - - - - - - Sanitary Trunk Capacity Expansion York to Hazelton ENG23033 2033 - - - - - - - 1,200,000 - - Sanitary Trunk Capacity Expansion York to 69th St W ENG23034 2033 - - - - - - - 1,400,000 - - South Trunk Segment G-72nd Street ENG23007 2026 6,000,000 - - - - - - - - - Parklawn Avenue A Reconstruction ENG25002 2029 - - - 103,924 - - - - - - Rolling Green Reconstrucion ENG25075 2027 - 281,326 - - - - - - - - Countryside E Reconstruction ENG23002 2030 - - - - 391,999 - - - - - Todd Park B Reconstruction ENG23003 2028 - - 299,187 - - - - - - - Benton Avenue A Reconstruction ENG23004 2030 - - - - 186,198 - - - - - W 77th Street D Reconstruction ENG25003 2029 - - - 195,622 - - - - - - Minnehaha Woods B Reconstruction ENG25009 2029 - - - 464,487 - - - - - - Hilary Lane Reconstruction ENG23101 2030 - - - - 303,883 - - - - - Sanitary Targeted Inflow Reduction Project 19-340 2030 - - - - 130,000 - - - - - Lift Station Pump and VFD Renewal PWK25105 Var 30,000 30,000 30,000 30,000 30,000 - - - - - Olinger Road Sanitary Sewer Replacement ENG25034 2026 100,000 - - - - - - - - - Olinger Road Dip Replacement: 130 LF + Road Repair PWK23011 2026 80,000 - - - - - - - - - Parklawn (Parklawn Ct) Reconstruction ENG25074 2026 39,899 - - - - - - - - - West 76th Street A Reconstruction ENG25064 2029 - - - 165,248 - - - - - - 70th Street Watermain Upsizing Project 2035 - - - - - - - - - 1,000,000 South Trunk Segment B - Hibiscus, ENG23007 2034 - - - - - - - - 18,400,000 - South Trunk Segment C - Hibiscus ENG23007 2033 - - - - - - - 9,120,000 - - South Trunk Segment D - Kellogg ENG23007 2032 - - - - - - 3,470,000 - - - South Trunk Segment E - Gilford ENG23007 2031 - - - - - 6,290,000 - - - - South Trunk Segment A - Highway 100 ENG23008 2035 - - - - - - - - - 3,600,000 South Trunk Segment F-Oaklawn ENG23007 2030 - - - - 13,900,000 - - - - - Interlachen Blvd Reconstruction ENG25201 2027 - 303,883 - - - - - - - - Future Sanitary Sewer improvements 2031 - - - - - 2,000,000 - - - - Future Sanitary Sewer improvements 2032 - - - - - - 2,100,000 - - - Future Sanitary Sewer improvements 2033 - - - - - - - 2,200,000 - - Future Sanitary Sewer improvements 2034 - - - - - - - - 2,300,000 - Future Sanitary Sewer improvements 2035 - - - - - - - - - 2,400,000 7,760,940 4,665,088 4,294,806 1,847,894 17,695,358 8,290,000 5,570,000 13,920,000 20,700,000 7,000,000 Sanitary Sewer Total Capital Projects Project YearProject Number Page 39 of 44 City of Edina , MN Utility Rate StudyBase Model - Fund Cashflows Revenue Growth - Rates Expense growth - operating Expense growth - personnel Expense growth - MCES (Sewer Only) Beginning net assets Operating Revenues Water revenues Sanitary sewer revenues Storm sewer revenues Total Operating Revenues Operating Expenses Personal services Contractual services Commodities Internal services MCES - Sanitary Sewer Only Depreciation Total Operating Expenses Net Operations Non-operating revenues (expenses) Investment Income (Loss) Intergovemental revenue Interest on existing debt Connection Fee Revenue Other income (expense) Transfers in Transfers out Bond discount Bond costs Bond premium Total non operating revenue (expenses) Net increase (decrease) in resources Change in accounting principle Ending net assets 0.66298076 4.0%6.0%3.7% Budget 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 5.50%5.50%9.25%9.25%9.25%9.25%9.25%9.00%9.00%9.00%9.00%9.00% 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00% 0.00%0.00%7.00%7.00%7.00%7.00%7.00%7.00%7.00%7.00%7.00%7.00% 36,661,283 39,532,295 41,299,402 43,234,209 45,776,473 49,046,529 53,141,648 58,139,304 64,079,004 71,067,130 79,095,572 88,349,934 10,434,104 11,392,931 12,252,916 13,386,311 14,624,545 15,977,315 17,455,217 19,026,186 20,738,543 22,605,012 24,639,463 26,857,014 10,434,104 11,392,931 12,252,916 13,386,311 14,624,545 15,977,315 17,455,217 19,026,186 20,738,543 22,605,012 24,639,463 26,857,014 388,093 843,129 835,231 874,121 917,827 963,718 1,011,904 1,062,500 1,115,625 1,171,406 1,229,976 1,291,475 272,780 242,749 311,501 310,926 320,254 329,861 339,757 349,950 360,448 371,262 382,400 393,872 42,798 103,250 103,250 103,250 106,348 109,538 112,824 116,209 119,695 123,286 126,984 130,794 652,219 616,215 668,643 743,320 765,620 788,588 812,246 836,613 861,712 887,563 914,190 941,616 6,227,469 6,600,624 6,844,942 7,324,088 7,836,774 8,385,348 8,972,323 9,600,385 10,272,412 10,991,481 11,760,885 12,584,147 1,471,325 1,515,465 1,560,929 1,607,757 1,655,989 1,705,669 1,756,839 1,809,544 1,863,830 1,919,745 1,977,338 2,036,658 9,054,684 9,921,432 10,324,496 10,963,461 11,602,811 12,282,723 13,005,893 13,775,201 14,593,722 15,464,743 16,391,773 17,378,561 1,379,420 1,471,499 1,928,420 2,422,849 3,021,733 3,694,592 4,449,323 5,250,985 6,144,820 7,140,269 8,247,690 9,478,454 563,356 171,000 176,130 181,414 174,644 189,187 195,407 190,839 198,456 208,950 220,372 232,572 (538,698)(557,300)(662,950)(604,038)(523,900)(446,775)(371,175)(298,150)(229,575)(195,200)(88,125)(56,250) 1,311,885 496,125 566,146 617,099 672,638 733,175 799,161 871,086 949,484 949,484 949,484 949,484 (1,167)(1,167)(1,167)(1,167)(1,167)(1,167)(1,167)(1,167)(1,167)(1,167)(1,167)(1,167) (66,613)(149,412)(71,773)(73,893)(73,893)(73,893)(73,893)(73,893)(73,893)(73,893)(73,893)(73,893) 222,829 (62,842) 399,204 1,491,592 295,608 6,386 119,416 248,322 400,527 548,333 688,715 843,305 888,174 1,006,671 1,050,746 2,871,012 1,767,107 1,934,806 2,542,265 3,270,055 4,095,119 4,997,656 5,939,700 6,988,125 8,028,443 9,254,361 10,529,200 39,532,295 41,299,402 43,234,209 45,776,473 49,046,529 53,141,648 58,139,304 64,079,004 71,067,130 79,095,572 88,349,934 98,879,133 Sanitary Sewer Fund Acutal Preliminary Projected Page 40 of 44 City of Edina , MN Utility Rate StudyBase Model - Fund Cashflows Revenue Growth - Rates Expense growth - operating Expense growth - personnel Expense growth - MCES (Sewer Only) CIP Funding Purchase of Capital Assets Bond Proceeds Bond Proceeds - Expansion Projects Bond Proceeds-Water Treatment Plant Unspent bond proceeds Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond Prin - Existing Beginning Cash Ending Cash Other investments Ending net assets Target minimum working capital Actual working capital-cash balance Over (Under) target working capital 0.66298076 4.0%6.0%3.7% Budget 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 5.50%5.50%9.25%9.25%9.25%9.25%9.25%9.00%9.00%9.00%9.00%9.00% 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00% 0.00%0.00%7.00%7.00%7.00%7.00%7.00%7.00%7.00%7.00%7.00%7.00% Sanitary Sewer Fund Acutal Preliminary Projected (5,226,694)(7,760,940)(4,665,088)(4,294,806)(1,847,894)(17,695,358)(8,290,000)(5,570,000)(13,920,000)(20,700,000)(7,000,000) 3,600,000 1,000,000 1,000,000 1,506,619 13,900,000 6,290,000 3,470,000 11,320,000 18,400,000 4,600,000 6,000,000 2,350,000 2,350,000 (2,146,198) (123,905)(123,905)(123,905)(123,905)(123,905)(123,905)(123,905)(123,905)(123,905) (743,433)(743,433)(743,433)(743,433)(743,433)(743,433)(743,433)(743,433)(743,433) (421,183)(421,183)(421,183)(421,183)(421,183)(421,183)(421,183)(421,183) (296,990)(296,990)(296,990)(296,990)(296,990)(296,990)(296,990) 0 0 0 0 0 0 (190,405)(190,405)(190,405)(190,405)(190,405)(190,405)(190,405) (1,756,666)(1,756,666)(1,756,666)(1,756,666)(1,756,666) (794,923)(794,923)(794,923)(794,923) (438,535)(438,535)(438,535) (1,430,608)(1,430,608) (2,325,370) (745,000)(1,340,000)(1,510,000)(1,840,000)(1,745,000)(1,555,000)(1,640,000)(1,455,000)(1,375,000)(1,440,000)(1,515,000)(670,000) 14,627,500 15,796,106 16,111,984 17,336,779 17,464,375 18,918,711 19,540,689 19,083,910 19,845,573 20,895,025 22,037,174 23,257,226 15,796,106 16,111,984 17,336,779 17,464,375 18,918,711 19,540,689 19,083,910 19,845,573 20,895,025 22,037,174 23,257,226 24,231,066 39,532,295 41,299,402 43,234,209 45,776,473 49,046,529 53,141,648 58,139,304 64,079,004 71,067,130 79,095,572 88,349,934 98,879,133 11,028,663 10,811,741 12,692,819 12,345,647 14,260,303 16,518,940 16,542,192 17,627,886 18,957,026 20,437,517 22,391,379 22,821,686 15,796,106 16,111,984 17,336,779 17,464,375 18,918,711 19,540,689 19,083,910 19,845,573 20,895,025 22,037,174 23,257,226 24,231,066 4,767,443 5,300,242 4,643,960 5,118,728 4,658,408 3,021,749 2,541,718 2,217,687 1,937,999 1,599,657 865,847 1,409,379 Page 41 of 44 Capital Project 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Utilities Equipment Replacement PWK23201 Var 66,667 225,667 99,000 214,000 188,000 - - - - - Asset Management Software and Equipment 15-173 Var 15,000 15,000 15,000 - - - - - - - 69th Street Roundabout 17-011 2029 - - - 100,000 - - - - - - Chowen Park C Reconstruction ENG25005 2028 - - 2,460,776 - - - - - - - Chowen Park E Reconstruction ENG25006 2028 - - 1,527,378 - - - - - - - Minnehaha Woods B Reconstruction ENG25009 2029 - - - 1,282,707 - - - - - - Pamela Park B (Peacdale Ave) Reconstruction ENG25010 2029 - - - 454,631 - - - - - - Pamela Park C (Halifax Ave) Reconstruction ENG25011 2029 - - - 347,659 - - - - - - Braemar Hills E (Washington Ave) Reconstruction ENG25012 2030 - - - - 332,148 - - - - - Prospect Knolls A Reconstruction ENG23001 2026 1,583,418 - - - - - - - - - Prospect Knolls C Reconstruction 19-308 2026 1,386,936 - - - - - - - - - Prospect Knolls D Reconstruction 19-309 2026 422,111 - - - - - - - - - The Heights A Reconstruction ENG25013 2030 - - - - 2,370,717 - - - - - The Heights C Reconstruction ENG25014 2030 - - - - 1,729,936 - - - - - 50th St Concrete Curb and Gutter Replacement ENG25027 2027 - 55,000 - - - - - - - - Indian Trails A Reconstruction 19-314 2027 - 1,038,475 - - - - - - - - CWS 1 - Lake & Pond Sediment Phosphorus Sequest ENG25036 Var 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 CWS 2 - Targeted Intensive Street Sweeping ENG25037 Var - 20,000 - 70,000 - - - - - - CWS 3 - Assurance, Monitoring, Lakegrades ENG25038 Var 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 CWS 4 - Rough Fish Management ENG25039 2027 - 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 CWS 5 - New Clean Water Infrastructure ENG25040 2029 - - - 150,000 - - - - - - South Cornelia B Reconstruction ENG25077 2027 - 2,049,875 - - - - - - - - South Cornelia D Reconstruction ENG25078 2030 - - - - 1,830,277 - - - - - CWRMP Major Amendment and Model Update 19-346 2026 200,000 - - - - - - - - - Parklawn (Parklawn Ct) Reconstruction ENG25074 2026 110,184 - - - - - - - - - Rolling Green Reconstrucion ENG25075 2027 - 4,009,243 - - - - - - - - Minnehaha Woods D Reconstruction ENG25076 2029 - - - 946,760 - - - - - - Hilary Lane Reconstruction ENG23101 2030 - - - - 1,009,245 - - - - - Parklawn Avenue A Reconstruction ENG25002 2029 - - - 226,673 - - - - - - West 76th Street A Reconstruction ENG25064 2029 - - - 385,207 - - - - - - Countryside E Reconstruction ENG23002 2030 - - - - 850,851 - - - - - Todd Park B Reconstruction ENG23003 2028 - - 826,220 - - - - - - - Benton Ave A Reconstruction ENG23004 2030 - - - - 434,318 - - - - - W 77th Street D Reconstruction ENG25003 2029 - - - 426,678 - - - - - - Wooddale Bridge Rehab - Historic 19-301 2026 400,000 - - - - - - - - - Concord Flood Infrastrucure Project (#2 area)ENG23010 2026 200,000 950,000 9,500,000 - - - - - - - Arden & 50th Flood Infrastructure Project (#3 area)ENG23011 2027 - 200,000 - - - - - 4,500,000 - - Lake Cornelia and Normandale Park Flood Infrastructure ENG23012 2033 - - - - - - - 16,000,000 - - France Avenue Crossing (Minnehaha Creek)ENG23013 2029 - - - 200,000 6,000,000 - - - - - Adaptive Level Management Project Phase 2 (Minnehaha Creek)ENG23014 2025 - - - - 2,500,000 - - - - - Adaptive Level Management Project (Nine Mile Creek)ENG23015 2026 2,500,000 - - - - - - - - - Minor Pipe and Grading Project (Citywide)ENG23016 2028 - - 2,500,000 - - - - - - - Chowen and 60th Flood Project ENG23017 2030 - - - - 1,100,000 - - - - - Future storm improvements 2031 - - - - - 4,000,000 - - - - Future storm improvements 2032 - - - - - - 4,100,000 - - - Future storm improvements 2033 - - - - - - - 4,200,000 - - Future storm improvements 2034 - - - - - - - - 4,300,000 - Future storm improvements 2035 - - - - - - - - - 4,400,000 7,019,316 8,738,260 17,103,374 4,979,315 18,520,492 4,175,000 4,275,000 24,875,000 4,475,000 4,575,000 Project Year Project Number Storm Sewer Total Capital Projects Page 42 of 44 City of Edina , MN Utility Rate StudyBase Model - Fund Cashflows Revenue Growth - Rates Expense growth - operating Expense growth - personnel Expense growth - MCES (Sewer Only) Beginning net assets Operating Revenues Water revenues Sanitary sewer revenues Storm sewer revenues Total Operating Revenues Operating Expenses Personal services Contractual services Commodities Internal services MCES - Sanitary Sewer Only Depreciation Total Operating Expenses Net Operations Non-operating revenues (expenses) Investment Income (Loss) Intergovemental revenue Interest on existing debt Connection Fee Revenue Other income (expense) Transfers in Transfers out Bond discount Bond costs Bond premium Total non operating revenue (expenses) Net increase (decrease) in resources Change in accounting principle Ending net assets Budget 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 8.00%8.00%15.00%14.75%14.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50% 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00% 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% 33,367,584 35,547,068 37,444,824 39,662,372 42,895,032 47,355,648 52,644,792 58,785,034 65,886,839 74,003,574 83,188,683 93,647,769 6,349,555 6,851,982 7,879,779 9,042,047 10,353,144 11,233,161 12,187,979 13,223,958 14,347,994 15,567,574 16,890,817 18,326,537 6,349,555 6,851,982 7,879,779 9,042,047 10,353,144 11,233,161 12,187,979 13,223,958 14,347,994 15,567,574 16,890,817 18,326,537 551,198 976,631 1,139,891 1,193,456 1,253,129 1,315,785 1,381,575 1,450,653 1,523,186 1,599,345 1,679,312 1,763,278 669,515 798,248 844,463 940,163 968,368 997,419 1,027,341 1,058,162 1,089,907 1,122,604 1,156,282 1,190,970 444,631 174,100 154,600 154,600 159,238 164,015 168,936 174,004 179,224 184,600 190,138 195,843 339,056 344,325 396,253 417,113 429,626 442,515 455,791 469,464 483,548 498,055 512,996 528,386 0 0 0 0 0 0 0 0 0 0 0 0 1,884,273 1,940,801 1,999,025 2,058,996 2,120,766 2,184,389 2,249,921 2,317,418 2,386,941 2,458,549 2,532,305 2,608,275 3,888,673 4,234,105 4,534,232 4,764,328 4,931,127 5,104,123 5,283,563 5,469,701 5,662,805 5,863,153 6,071,035 6,286,752 2,460,882 2,617,877 3,345,547 4,277,719 5,422,017 6,129,037 6,904,417 7,754,257 8,685,189 9,704,420 10,819,783 12,039,785 438,635 112,000 115,360 118,821 100,529 123,437 102,680 121,479 114,551 117,568 130,134 179,444 (882,543)(1,034,813)(1,086,950)(1,002,850)(900,900)(802,300)(705,825)(612,900)(521,975)(475,850)(329,800)(280,250) 0 0 0 0 0 0 0 0 0 0 0 0 (145,165)(74,706)(156,409)(161,030)(161,030)(161,030)(161,030)(161,030)(161,030)(161,030)(161,030)(161,030) 307,675 (50,349) 327,747 (281,398)(720,121)(1,127,999)(1,045,059)(961,401)(839,893)(764,175)(652,451)(568,454)(519,312)(360,696)(261,836) 2,179,484 1,897,756 2,217,548 3,232,660 4,460,616 5,289,144 6,140,242 7,101,806 8,116,735 9,185,108 10,459,087 11,777,949 35,547,068 37,444,824 39,662,372 42,895,032 47,355,648 52,644,792 58,785,034 65,886,839 74,003,574 83,188,683 93,647,769 105,425,718 Storm Sewer Fund Actual Preliminary Projected Page 43 of 44 City of Edina , MN Utility Rate StudyBase Model - Fund Cashflows Revenue Growth - Rates Expense growth - operating Expense growth - personnel Expense growth - MCES (Sewer Only) CIP Funding Purchase of Capital Assets Bond Proceeds Bond Proceeds - Expansion Projects Bond Proceeds-Water Treatment Plant Unspent bond proceeds Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond P&I - Future Bond Prin - Existing Beginning Cash Ending Cash Other investments Ending net assets Target minimum working capital Actual working capital-cash balance Over (Under) target working capital Budget 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 8.00%8.00%15.00%14.75%14.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50% 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00% 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Storm Sewer Fund Actual Preliminary Projected (4,143,730)(7,019,316)(8,738,260)(17,103,374)(4,979,315)(18,555,492)(4,175,000)(4,275,000)(24,875,000)(4,475,000)(4,575,000) 2,955,000 3,392,500 6,059,100 15,988,200 16,540,200 20,500,000 4,475,000 (3,097,903) (420,349)(420,349)(420,349)(420,349)(420,349)(420,349)(420,349)(420,349)(420,349) (570,019)(570,019)(570,019)(570,019)(570,019)(570,019)(570,019)(570,019) (1,519,587)(1,519,587)(1,519,587)(1,519,587)(1,519,587)(1,519,587)(1,519,587) 0 0 0 0 0 0 (1,572,051)(1,572,051)(1,572,051)(1,572,051)(1,572,051) (1,948,407)(1,948,407) (2,090,000)(2,075,000)(2,020,000)(2,380,000)(2,185,000)(2,060,000)(1,985,000)(1,855,000)(1,845,000)(1,930,000)(2,030,000)(1,875,000) 8,161,952 11,096,132 11,670,959 10,240,717 10,052,864 12,343,703 10,267,966 12,147,881 11,455,098 11,756,767 13,013,418 17,944,397 11,096,132 11,670,959 10,240,717 10,052,864 12,343,703 10,267,966 12,147,881 11,455,098 11,756,767 13,013,418 17,944,397 19,850,207 35,547,068 37,444,824 39,662,372 42,895,032 47,355,648 52,644,792 58,785,034 65,886,839 74,003,574 83,188,683 93,647,769 105,425,718 6,984,576 9,591,888 9,495,467 8,332,571 13,596,480 10,568,355 14,188,284 14,302,313 14,560,143 12,210,604 16,708,461 16,840,329 11,096,132 11,670,959 10,240,717 10,052,864 12,343,703 10,267,966 12,147,881 11,455,098 11,756,767 13,013,418 17,944,397 19,850,207 4,111,556 2,079,071 745,250 1,720,292 (1,252,778)(300,389)(2,040,403)(2,847,214)(2,803,375)802,814 1,235,936 3,009,878 Page 44 of 44