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City Council Packet 11 03 2025 City Council Regular Meeting & Work Session Agenda Monday, November 3, 2025 6:30 PM Elk River City Hall ▪ Regular meeting in Council Chambers ▪ Work Session meeting in Upper Town Conference Room immediately following regular meeting 1. CALL MEETING TO ORDER 2. PLEDGE OF ALLEGIANCE 3. CONSIDER AGENDA 4. CONSENT AGENDA Considered to be routine and noncontroversial and will be approved by one motion. There will be no separate discussion of these items unless there is a request to remove the item from the consent agenda to the regular agenda. 4.1 October 6, 2025, Minutes 4.2 October 20, 2025, Minutes 4.3 Check Register 4.4 Professional Services Agreement 25-31: Statewide Affordable Housing Aid Disbursement to Main Street Family Services 4.5 Agreement 25-32: Architectural Services with LSE Architects for Northbound/Cannabound. 4.6 Ordinance Amendment 25-15: Community Event Center Commission 4.7 Resolution 25 - 64: Final Plat of Oakwater Ridge First Addition 5. OPEN FORUM An opportunity to provide comments and feedback regarding items not on the agenda. Information provided in Open Forum will not be discussed at this meeting; rather, the information will be referred to staff and/or scheduled for discussion at a future meeting. 6. PRESENTATIONS, AWARDS, AND RECOGNITION 7. PUBLIC HEARINGS An opportunity for the public to express their opinions and raise questions pertaining to the agenda item. All comments become part of the official public record. For this reason, all comments must be made at the podium so they can be heard and recorded. Comments may also be provided in writing. There will not be deliberations, discussions, or answers to questions until the hearing is closed. It is important to be courteous and allow each presenter to comment before adding additional testimony. 7.1 Conditional Use Permit CU 24-22: Winlectric CUP Revocation Hearing 8. GENERAL BUSINESS Items in which the information is presented by city staff or consultants, then deliberation and action occur. General Business items are not opportunities to receive or provide public input. However, the presiding officer may, at its sole discretion, solicit public feedback. Page 1 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity 8.1 Discuss Work Session Items 9. COUNCIL LIAISON UPDATES 9.1 Council Liaison Updates 10. MOTION TO ADJOURN REGULAR MEETING 11. WORK SESSION Work Sessions are less formal meetings to encourage dialog. Official action or votes are not typically taken. At the conclusion of a discussion, a simple consensus provides staff direction for execution of the item. This portion of the agenda is audio recorded but not video recorded or broadcast. Work Sessions are open to the public; however, visitors who wish to provide input must be invited by the presiding officer, assume a seat at the discussion table and provide their full name and address for the official record. 11.1 Northbound/Cannabound Store Design Update 11.2 Fire Station No. 1 Space Needs Update 11.3 Community Service Officer Tuition Reimbursement 11.4 Cannabound Branding 11.5 Compensation Plan Update 11.6 2026 Budget 12. MOTION TO ADJOURN 13 Information 13.1 September Financial Reports Page 2 of 322 Meeting of the City Council Held at the Elk River City Hall Monday, October 6, 2025 Members Present: Mayor John Dietz, Councilmembers Cory Grupa, J. Brian Calva, Mike Beyer, and Jennifer Wagner Members Absent: None Staff Present: City Administrator Cal Portner, Senior Planner Chris Leeseberg, Business Services Director/Assistant City Administrator Joe Stremcha, Public Works Director/Chief Engineer Justin Femrite, Fire Chief Mark Dickinson, Records Specialist Dawn Robertson, and City Clerk Tina Allard 1. CALL MEETING TO ORDER Pursuant to due call and notice thereof, the meeting was called to order at 6:30 p.m. 2. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 3. CONSIDER AGENDA Moved by Councilmember Wagner and seconded by Councilmember Beyer to approve the agenda. Motion Carried 5-0. 4. CONSENT AGENDA Moved by Councilmember Grupa and seconded by Councilmember Calva to approve the following consent items as outlined in their respective staff reports. Motion Carried 5-0. 4.1 September 15, 2025, Special Budget Minutes 4.2 September 15, 2025, Regular Minutes 4.3 Check Register 4.4 Hire Part-Time Senior Activity Center Assistant 4.5 Hire Part-Time Building Permit Technician Page 3 of 322 City Council Minutes October 6, 2025 --------- Page 2 of 7 4.6 Hire IT Specialist (Public Safety Emphasis) 4.7 Hire Secretary/Receptionist 4.8 Resolution 25-53: Findings of Fact for Denial of Everlight Solar Solicitor Licenses 4.9 Resolution 25-54: Donation from Elk River Nordic Ski Club 4.10 Resolution 25-55: Accept Donation of Flag 4.11 Resolution 25-57: Acknowledging Donation from Zimmerman Fire Relief Association 4.12 Resolution 25-58: Accept Funds from Sherburne County Agricultural Society 4.13 Lease Agreement 25-25 for City-owned Property Located at 509 US-10, Elk River, with the Elk River Area Chamber of Commerce. 4.14 Resolution 25-56: Grant Agreement for Toward Zero Death Program 4.15 Agreement 25-24: Authorize Grant Agreement for Traffic Safety Officer 4.16 Mortgage Satisfaction - Lot 2, Block 2, Trott Brook Crossing 4.17 Release and Termination of Deed Restrictions 5. OPEN FORUM No one appeared for open forum. 6. PRESENTATIONS, AWARDS, AND RECOGNITION 6.1 Recognition for 30 Years of Service: Firefighter Jeremy Collins Chief Dickinson discussed Firefighter Chris Collins' 30 years of service with the fire department. The mayor read and presented a plaque. The Council thanked Chris for his service. Page 4 of 322 City Council Minutes October 6, 2025 --------- Page 3 of 7 7. PUBLIC HEARINGS There were no public hearings. 8. GENERAL BUSINESS 8.1 Variance: Garage/Accessory Dwelling Unit Size, Jennifer Belde - 21131 Vernon St NW The staff report was presented. Moved by Councilmember Calva and seconded by Councilmember Grupa to direct staff to draft a resolution stating that findings of fact are made, denying the accessory structure size variances, as the standards for approval, as noted below, are not met. The City Council would consider the resolution on October 20, 2025. 1. The variance is not in harmony with the general purpose and intent of the ordinance, as the proposed ADU exceeds the maximum allowable living area by 600 square feet and the accessory structure exceeds the permitted size by 148 square feet, undermining the ordinance standards intended to ensure ADUs remain subordinate to the principal dwelling and that accessory structures remain consistent with neighborhood character. 2. The variance is not consistent with the Comprehensive Plan, which anticipates orderly residential development supported by zoning standards. Granting the variance would conflict with the implementing ordinances that guide residential scale and character. 3. The property can be reasonably used without the variance, as the zoning ordinance already permits a 1,000 square foot ADU and accessory structures up to 2,500 square feet. A compliant ADU and garage could be constructed without exceeding size limits. 4. The plight of the applicant is not due to circumstances unique to the property, but rather a result of the existing home and garage design, which does not justify exceeding ordinance limits. Economic considerations or design preferences do not constitute practical difficulties. 5. Granting the variance could alter the essential character of the locality, as the size of the proposed ADU may compete in scale with principal dwellings, changing the intended residential character of the R-1a district. Additionally, direct staff to work with the city attorney and draft an ordinance providing applicants with an opportunity to request variances specifically related to ADA requirements.. Motion Carried 5-0. 8.2 Discuss Work Session Items There was no discussion. 9. COUNCIL LIAISON UPDATES Page 5 of 322 City Council Minutes October 6, 2025 --------- Page 4 of 7 9.1 Council Liaison Updates The council members provided updates as outlined in the respective advisory board's minutes. 10. MOTION TO ADJOURN REGULAR MEETING Moved by Councilmember Wagner and seconded by Councilmember Grupa to adjourn the meeting of City Council. Motion Carried 5-0. The meeting adjourned at 6:58 p.m. 11. WORK SESSION Pursuant to due call and notice thereof, the worksession meeting was called to order at 7:10 p.m. 11.1 Winlectric Conditional Use Permit Discussion The staff report was presented. Mr. Leeseberg stated the new owner is requesting additional time to come into compliance and staff is comfortable allowing the additional time. The Council was unsure the owners would be willing to comply, noting continued storage issues and that the city has been dealing with this for three years. The Council's consensus was to begin the revocation process with a discussion to be held on October 20, 2025. (Due to the required timeline for the public hearing process, this item was delayed to the November 3, 2025, meeting agenda.) 11.2 Fire Station #1 Design Update The staff report was presented. Chief Dickinson introduced CNH Architects Quinn Hutson and Brooke Jacobson, and Terra Construction Vice President Ben Newlin. Mr. Hutson discussed the project size, space needs, site location and fire station orientation. The Council asked how these needs are determined and whether the consultant took information from the staff or from industry standards. Mr. Hutson explained how they utilize both methods. Chief Dickinson discussed the consultant's experience and how they have helped staff through the process. Mr. Newlin reviewed the proposed floor plan and the exterior features. He noted it is an OSHA requirement to have physical activity space. The Council asked about the dorm rooms and who would be utilizing them. Chief Dickinson stated some of the rooms would be used by the ambulance service and some are for future growth of the department for full-time firefighters. Ms. Jacobson reviewed cost estimates, which she stated are consistent with the current market. The following comments were expressed by Councilmembers: ▪ The majority of the second floor is designed for having full-time firefighters and should only be finished as a shell versus fully furnished. ▪ The city already has a fitness center and one is not needed at this station. ▪ The classroom space is not needed as the department has other spaces, such as the Emergency Operations Center. Page 6 of 322 City Council Minutes October 6, 2025 --------- Page 5 of 7 ▪ Staff does not need additional office space because they already have space at other locations, so maybe this could be cut to one shareable office space. ▪ How is this going to be paid for as there is reluctance to add to the tax levy and could a .5% sales tax be considered as an option? ▪ Space is not needed for the antique fire truck. ▪ Asked for the costs of leaving the second floor as a shell versus what the build-out costs would be at a later date. ▪ In addition to the safety of the firefighters, why is this facility needed and what is the benefit to the community, what will be the efficiencies and will it help with response times? ▪ How much of the space is used by the ambulance service and can there be some cost participation by them? ▪ What is the current agreement with the ambulance service? ▪ An additional $2 million is also being requested for a ladder truck. ▪ There is a lot of duplication with what the other stations have and items that could be cut. Mr. Hutson noted this is a paired down version compared to other stations across the state. The Council asked for data to support this statement. The Council expressed the need to do their due diligence and to be able to answer the public's questions. 11.3 Northbound and Cannabound Design Update The staff report was presented. Mr. Stremcha introduced BrianTempas with LSE Architects. Mr. Tempas reviewed the site, floor plan, design concepts, parking, parking sharing, and constraints, such as the stormwater basin and topography. He also reviewed the construction timeline. He noted this parcel would include two building spaces on a tight site. He also discussed the tasting/class room noting it is a new trend among liquor and cannabis stores to allow for education and brand strengthening. The council expressed the following comments: ▪ Has there been any thought to swapping the liquor and cannabis spaces to allow for more privacy? The store deliveries flow from the east side of the stores with proximity to liquor for bulk deliveries and are out of sight from the main storefront like Coborn's. ▪ Does this new liquor store add more storage space to allow for bulk purchasing? Mr. Stremcha stated there is more vertical space. ▪ How security in the cannabis store is affected if the manager is in the shared office space area. Mr. Tempas stated this would not be an issue. ▪ Concern for the branding colors and having a marijuana leaf in the logo. Councilmember Wagner felt the brand should be modern, classy, and educational. Staff will provide more insight on this topic at a future meeting. ▪ Feel the more profitable liquor business should be in the front area. Mr. Tempas discussed the strategy of having the cannabis business in the front and that the liquor store will bring customers to see the cannabis store. Page 7 of 322 City Council Minutes October 6, 2025 --------- Page 6 of 7 ▪ Will the loading dock affect the residential area that is located adjacent? Mr. Tempas noted there is dense forest separating the areas. ▪ Felt the conference/tasting room is not needed because this is not a private business. The room is designed to be a tasting and educational space for both liquor and cannabis events. ▪ Why would there be a private patio? Utilized for tastings/educational events and staff breaks similar to City Hall and Public Works facilities. ▪ Does this location meet our ordinance requirements for distance from a school? Staff will research this further to maintain compliance. 11.4 2025 Elk RiverFest Recap and Plans for 2026 The staff report was presented. Mr.Shelby stated planning for 2026 is underway. He asked the Council if the evening part of the event should be kept and if staff should continue to try to build it into something more that can grow or if they should focus more on a daytime event. He also asked about having liquor at the event. The Council concurred on a family-focused daytime event with liquor sales. 11.5 Wastewater and Stormwater Rate Analysis The staff report was presented. Mr. Femrite introduced President Mark Derany with AMKO Bond Services, who discussed the adequacy of the revenue the city is collecting to cover wastewater and stormwater infrastructure costs. Mr. Derany reviewed his reports and explained his methodology as outlined in the staff report. He focused on three categories for wastewater: basic growth, debt service coverage, and the capital improvement plan. He stated the city had been projecting about a 3% growth annually, but it does not include the debt service coverage or future projects. He commented that the city has a really well run utility from a financial standpoint. He recommended a 5% increase to rates, including connection fees, to be implemented annually from 2026 through 2030 to cover inflation of operating expenses, and to cover the capital improvement plan project expenditures. He also reviewed his stormwater analysis and recommended a 3% increase in the stormwater fee. Mr. Femrite summarized the recommendation of a 5% rate for the sanitary system and a 5% rate on our connection fees, and 3% rate for storm sewer which is in line with projections from five years ago. He discussed how the city participates in an annual rate survey where our rates are compared against other cities and Elk River is the lowest. He noted our systems are different, but have good value for the residents. He noted the Council will have the opportunity to review and adopt fees later this year when the fee schedule is updated. 11.6 Northeast Sewer and Water Extension Sub Area Study The staff report was presented. Mr. Femrite introduced Ursinio Puga, with AE2S. Mr. Puga provided an overview of the study in the staff report. He discussed the lift stations and recommended upsizing the smallest pump in the River Park lift station from 388 gallons per minute (gpm) to 610 gpm. He discussed the trunk sewer and recommended adding two small lift stations and an 8-inch gravity pipe. He discussed the water system and noted no additional upgrades were needed. Page 8 of 322 City Council Minutes October 6, 2025 --------- Page 7 of 7 He outlined the cost of the pump upgrade to be approximately $59,000. He noted this is the required city trunk infrastructure upgrade but that there will be developer-driven costs, such as additional lift stations that will be incurred and paid by the developer. He further recommended capping development density at 2 units per acre. Mr. Femrite stated he would meet with an interested developer to discuss the information presented to the Council tonight. He noted if the developer is interested in pursuing a project, then he'd come back to the council with recommended changes to the Urban Service District. 12. MOTION TO ADJOURN Moved by Councilmember Calva and seconded by Councilmember Grupa to adjourn the meeting of City Council. Motion Carried 5-0. The meeting adjourned at 10:10 p.m. Minutes prepared by City Clerk Tina Allard. ___________________ John J. Dietz, Mayor ___________________ Tina Allard, City Clerk Page 9 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 4.2 Meeting Date November 3, 2025 Prepared By Item Description October 20, 2025, Minutes Reviewed by Cal Portner Tina Allard Action Requested Background/Discussion Financial Impact Mission/Policy/Goal Explain how this meets the city's mission, current policies and/or council goals Attachments None Page 10 of 322 Meeting of the City Council Held at the Elk River City Hall Monday, October 20, 2025 Members Present: Mayor John Dietz, Councilmember Cory Grupa, Councilmember J. Brian Calva, Councilmember Mike Beyer, Councilmember Jennifer Wagner Members Absent: None Staff Present: City Administrator Cal Portner, City Attorney Richard Hansen, Senior Planner Chris Leeseberg, Business Services Director/Assistant City Administrator Joe Stremcha, Environmental Services and Projects Specialist Joe Hale, Street Division Foreman Chris Teff, Deputy Clerk Jolene Richter, and Records Specialist Dawn Robertson. Others Present: Commissioner Mike Westgaard 1. CALL MEETING TO ORDER Pursuant to due call and notice thereof, the meeting was called to order at 6:00 p.m. 2. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 3. CONSIDER AGENDA Moved by Councilmember Wagner and seconded by Councilmember Beyer to approve the agenda. Motion carried 5-0. 4. CONSENT AGENDA Moved by Councilmember Grupa and seconded by Councilmember Calva to approve the following consent items as outlined in their respective staff reports. Motion carried 5-0. 4.1 Check Register 4.2 Agreement 25-29: Construction Manager at Risk with Terra Construction for Fire Station #1 4.3 Agreement 25-30: Construction Manager at Risk with Terra Construction for Northbound/Cannabound. 4.4 Agreement 25-28: Lease of Lion John Weicht Park Basketball Courts for Outdoor Ice with Elk River Youth Hockey. Page 11 of 322 City Council Minutes October 20, 2025 --------- Page 2 of 6 4.5 Agreement 25-26: Professional Services for Preparation of a Significant Industrial User Agreement 4.6 Agreement 25-27: Use Agreement with Minnesota Youth Ski League for Woodland Trails Shed Space 4.7 Resolution 25-60: Finding of Fact for Denial of Variance (Belde) 5. OPEN FORUM No one appeared for open forum. 6. PRESENTATIONS, AWARDS, AND RECOGNITION 6.1 City of Elk River Volunteer of the Month Mayor Dietz presented the October Volunteer of the Month award to Debra Hjermstad. He highlighted the following: ▪ Member of Beautification and Public Arts Committee ▪ Treasurer, Sherburne County Master Gardeners ▪ Works at the Farmers Market information table ▪ Maintains the flower garden near Whimsical Windmill ▪ Co-organizer for Community Garden ▪ Serves as a Co-Head Election Judge ▪ Teaches grade school lessons to Junior Master Gardeners ▪ Very Involved in Maple Grove church before moving to Elk River 7. PUBLIC HEARINGS 7.1 Variance: Setback for Building Expansion, Spikes & Houles Feed, Seed, & Pet Supply - 906 US Highway 10 NW The staff report was presented. Mayor Dietz opened the public hearing. There being no one to speak to this matter, Mayor Dietz closed the public hearing. Moved by Councilmember Calva and seconded by Councilmember Grupa to approve, the side yard setback variance request of 15 feet for the following reasons: 1. The general purpose and intent of the ordinance are met. 2. The property has a land use guidance of Neighborhood Commercial, and the use is consistent with the Comprehensive Plan. 3. The proposed use is reasonable and is otherwise permitted in the zoning ordinance. Page 12 of 322 City Council Minutes October 20, 2025 --------- Page 3 of 6 4. The plight of the petitioner is due to circumstances unique to the property, not a consequence of the petitioner’s own action or inaction. 5. The variance will not alter the essential character of the locality. And with the following conditions: 1. A full survey of the property shall be completed for the building permit. 2. The proposed additions shall not be closer than 5 feet to the west property line nor be located in any easement, whichever is greater. Motion carried 5-0. 7.2 Resolution 25-61: Easement Vacation, Ricky and Edward Buttweiler - 12891 187th Circle NW The staff report was presented. Mayor Dietz opened the public hearing. There being no one to speak to this matter, Mayor Dietz closed the public hearing. Moved by Councilmember Beyer and seconded by Councilmember Wagner to adopt Resolution 25-61 vacating drainage and utility easements, subject to the condition that the lot line adjustment is completed prior to the vacation being recorded. Motion carried 5-0. 7.3 Resolutions 25-62 and 25-63: Approving Easement Vacation and Final Plat of Prairie Haven The staff report was presented. Mayor Dietz opened the public hearing. There being no one to speak to this matter, Mayor Dietz closed the public hearing. Moved by Councilmember Calva and seconded by Councilmember Grupa to adopt Resolution 25-62 vacating a portion of the roadway easement for 192 1/2 Ave NW. Motion carried 5-0. Moved by Councilmember Wagner and seconded by Councilmember Beyer to adopt Resolution 25-63 approving the final plat of Prairie Haven, subject to the following conditions: 1. The resolution vacating a portion of 192 1/2 Ave NW is recorded immediately before the plat. 2. The applicant shall pay park dedication for two lots before releasing the final plat for approval. Motion carried 5-0. 7.4 Twin Lakes Road Apartment PUD, Pat Briggs - 17379 Twin Lakes Road NW The staff report was presented. No action required. Page 13 of 322 City Council Minutes October 20, 2025 --------- Page 4 of 6 8. GENERAL BUSINESS 8.1 Northstar Trucking Deadline Extension The staff report was presented. Moved by Councilmember Calva and seconded by Councilmember Grupa to direct the applicant to apply for an amendment to their CUP by October 27, 2025, to extend the deadline to allow additional time to satisfy the conditions. Motion carried 5-0. 8.2 Yard Waste Transfer Site Rules, Fees, and Ordinance 25-14 Amendment The staff report was presented. Mayor Dietz confirmed that the $25 fee will go into effect on January 1. He also asked if residents would be able to come into City Hall to buy their passes. Mr. Hale explained that the passes will be through the Citizenserve Portal, which will be online, but residents will be able to come into City Hall, and there will be computers similar to the building department that they can use to complete their passes. Mayor Dietz asked if the Public Works offices could be open for April to help with the transition when people start using the site more. Mr. Teff stated that they could explore that option to help manage. He went on to explain that it is the idea that the Citizenserve portal will be used, and a lot of the idea is that residents will get them through the mail like they do now, so there will be the same concept. Mr. Teff explained that Sherburne County will be wiping out all the cards in their current system because they believe there are about 15,000-20,000 cards that are not being used, so everyone in the county will need to reapply for a card. Mayor Dietz asked how many resident cards would need to be renewed. Mr. Teff stated that around 2,000 residents and up to about 50 commercial users. Mayor Dietz asked if a resident gets an Elk River card to use at Elk River's site, would they be able to still get a card with Sherburne County to use at the county's sites? Mr. Teff stated yes, they could, since they still live in the county. Mayor Dietz confirmed that the commercial people are on board with the Elk River program. Mr. Teff stated that it will be beneficial for the commercial users, as a lot of commercial companies are running out of places to dump material, so they are excited about the opportunity. Councilmember Wagner clarified regarding the commercial passes of who will be able to dump. Mr. Teff stated that they would only accept businesses from Elk River. Councilmember Wagner asked how the information would get out to the public. Mr. Hale stated they would be working with the Communications Department, but some ideas were the web page, an information video, brochures, and an article in the newspaper. Mr. Teff explained they will be working on signage as well. Mayor Dietz recommended again keeping the public works office open for April to help with the Page 14 of 322 City Council Minutes October 20, 2025 --------- Page 5 of 6 transition to alleviate the frustrations for people needing a card who didn't know beforehand, so they don't have to drive to City Hall and back. Moved by Councilmember Grupa and seconded by Councilmember Calva to adopt the Yard Waste Transfer Site Rules and Fees. Motion carried 5-0. Moved by Councilmember Wagner and seconded by Councilmember Beyer to adopt Ordinance 25-14 amending City Code Sections 58-31 and 58-39 regarding yard waste. Motion carried 5-0. 9. MOTION TO ADJOURN REGULAR MEETING Moved by Councilmember Beyer and seconded by Councilmember Grupa to adjourn the meeting of City Council. Motion carried 5-0. The regular meeting adjourned at 6:33 p.m. Mayor Dietz called the work session to order at 6:34 p.m. 10. WORK SESSION 10.1 Community Event Center Commission The staff report was presented. Community Event Center Commission Chair Westgaard stated that they reviewed the commission's duties and explained that there was not enough business to warrant six meetings throughout the year. Councilmember Wagner clarified that the Council will still have a joint meeting with the Commission. Mr. Stremcha explained that yes, but it would be a special or a joint meeting and would be voluntary. Councilmember Wagner explained that she believes it is essential to receive feedback from the Commission. Councilmember Beyer explained that it is important to still have that feedback from the commission members. Commissioner Westgaard stated that if there were ever a staff change, they could be there for them, and if needed, they could always call a special meeting. The Council agreed to make the recommended changes. 11. MOTION TO ADJOURN Moved by Councilmember Calva and seconded by Councilmember Wagner to adjourn the meeting of the City Council. Motion carried 5-0. The meeting adjourned at 6:43 p.m. Minutes prepared by Jolene Richter. 12. INFORMATION Page 15 of 322 City Council Minutes October 20, 2025 --------- Page 6 of 6 ___________________ John J. Dietz, Mayor ___________________ Tina Allard, City Clerk Page 16 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 4.3 Meeting Date November 3, 2025 Prepared By Amy Stangler, Accounting Clerk Item Description Check Register Reviewed by Lori Stich Joe Stremcha Cal Portner Tina Allard Action Requested Approve, by motion, the check registers for the period ending November 3, 2025. Background/Discussion The details for the period ending November 3, 2025, are attached to this request for action. Total for All Funds $862,494.54 Financial Impact N/A Mission/Policy/Goal N/A Attachments 1. 4.3 at1 Check Register 2. 4.3 at2 Check Register 3. 4.3 at3 Check Register - Taxes & Cr Card Page 17 of 322 Page 18 of 322 Page 19 of 322 Page 20 of 322 Page 21 of 322 Page 22 of 322 Page 23 of 322 Page 24 of 322 Page 25 of 322 Page 26 of 322 Page 27 of 322 Page 28 of 322 Page 29 of 322 Page 30 of 322 Page 31 of 322 Page 32 of 322 Page 33 of 322 Page 34 of 322 Page 35 of 322 Page 36 of 322 Page 37 of 322 Page 38 of 322 Page 39 of 322 Page 40 of 322 Page 41 of 322 Page 42 of 322 Page 43 of 322 Page 44 of 322 Page 45 of 322 Page 46 of 322 Page 47 of 322 Page 48 of 322 Page 49 of 322 Page 50 of 322 Page 51 of 322 Page 52 of 322 Page 53 of 322 Page 54 of 322 Page 55 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 4.4 Meeting Date November 3, 2025 Prepared By Joshua Mollan, Economic Development Specialist Item Description Professional Services Agreement 25-31: Statewide Affordable Housing Aid Disbursement to Main Street Family Services Reviewed by Brent O'Neil Cal Portner Tina Allard Action Requested Approve, by motion, execution of the professional services agreement 25-31 with Main Street Family Services to distribute SAHA funds. Background/Discussion The city has received annual Statewide Affordable Housing Aid (SAHA) allocations from the State of Minnesota for qualifying affordable housing uses since December 2023. The city's current balance is roughly $210,000. Following a recommendation from Sherburne County Health and Human Services, the HRA met with representatives from Main Street Family Services (MSFS) and ultimately approved a recommendation to the Council to approve the agreement to distribute $50,000 to MSFS through December 31, 2026. Main Street Family Services is a local social services non-profit. With these funds, MSFS will support eligible residents of Elk River by means of emergency rental/mortgage assistance, utility payments to avoid shut-offs, and other housing-related assistance. The key terms of the agreement are as follows: • Follow the eligibility criteria set by the Minnesota Department of Revenue and Department of Housing. • $50,000 from the agreement date to December 31, 2026 with $10,000 on execution, and $10,000 every 90 days following. • Limited to serving only Elk River residents. • No payments will be directly given to recipients; instead, given to landlords, banks, utilities, etc. • Payments not to exceed $3,000 annually per household. • 10% cap on administration expenditures. • MSFS is to report to the city quarterly. Financial Impact $50,000 to be drawn from the Development Fund. Page 56 of 322 Mission/Policy/Goal Improve citizen quality of life. Attachments 1. ER MSFS SAHA Agreement and Exhibit Page 57 of 322 1 PROFESSIONAL SERVICES AGREEMENT BETWEEN: The City of Elk River AND: Main Street Family Services EFFECTIVE DATE: ___ day of ___________, 2025 This Professional Services Agreement (this “Agreement”) is made and entered into this ___ day of ___________, 2025 (the “Effective Date”) by and between the City of Elk River, a political subdivision of the State of Minnesota (the “City”), 13065 Orono Parkway Elk River, MN 55330, and Main Street Family Services, a Minnesota nonprofit corporation, 400 Jackson Avenue NW, Suite 101 Elk River, MN 55330 (the “Consultant”). RECITALS WHEREAS, the City is in need of a service provider to administer Minnesota Statewide Affordability Housing Aid allocated to the City (the “Project”); and WHEREAS, the Consultant meets the needs of the City and is willing to provide the services provided for in this Agreement. Further, pursuant to Minnesota Statute § 471.59, the City has the authority to contract for services and the Consultant has the authority to enter into an Agreement for such services. AGREEMENT 1. TERM. Notwithstanding the date of the signatures of the parties to this Agreement, the term of this Agreement shall commence on the Effective Date and, unless earlier terminated pursuant to this Agreement, shall terminate on December 31, 2026. 2. DUTIES OF THE CONSULTANT. 2.1 Consultant’s Services. The Consultant shall provide professional services related to the administration of Minnesota Affordability Housing Aid allocated to the City, as described in Exhibit A, attached, and made a part of this Agreement. All services provided by the Consultant shall be for the benefit of persons residing or found in the City of Elk River. The Consultant shall confer with the City’s Authorized Representative as often as is necessary in connection with the services to be performed under this Agreement. 2.2 Personnel. All work the Consultant is to perform shall be performed by competent and qualified personnel. Consultant’s Executive Director will have primary responsibility Page 58 of 322 2 for overseeing the performance of work by Consultant under this Agreement and will serve as the primary contact with the City. 2.3 Documentation. The Consultant shall maintain complete and accurate records and files pertaining to the services and benefits provided pursuant to this Agreement. The Consultant will comply with the City’s requests for any information or documentation related to the Project. The Consultant shall also provide documentation as necessary to the City to ensure compliance with Minnesota Statute § 477A.36 and all reporting requirements required by the State of Minnesota. 2.4 Quarterly Reporting. The Consultant shall submit to the City a quarterly report by the 15th of January, April, July, and October during the term of the Agreement. Each report shall include a summary of the work completed by the Consultant for the City. All work documented shall be for the benefit of residents/persons who are found within the limits of the City of Elk River. Each report shall also provide an accounting of Project costs that includes a break-down of direct benefit costs and administrative costs. 2.5 Project Start Date. The Consultant shall start work on the Project upon full execution of the Agreement. 2.6 Standard of Care and Liability for Work. In performing the work under this Agreement, the Consultant will use that degree of care, knowledge and skill ordinarily exercised by other reputable professionals in the field under like circumstances within the State of Minnesota. 3. ITEMS PROVIDED BY THE CONSULTANT. All data or materials developed by the Consultant will remain the property of the Consultant upon expiration or termination of this Agreement. 4. PAYMENT TO CONSULTANT. 4.1 Payment Schedule. The total amount payable to the Consultant for services under this Agreement shall not exceed $50,000, to be paid in five installments as provided for herein. An initial $10,000 payment shall be made to the Consultant upon full execution of this Agreement. Following the City’s initial payment, $10,000 shall be paid to the Consultant every 90 days during the term of this Agreement. In the event funds paid to Consultant under this paragraph remain unspent by Consultant upon expiration of the Agreement’s term, the parties shall have the option to extend this Agreement or the Consultant shall return the funds back to the City. Any extension of this Agreement shall be effectuated by execution of a written amendment to this Agreement signed by the parties. 4.2 Use of Payments. At least 90% of the total funds paid to Consultant under paragraph 4.1 shall be spent on direct benefits for individuals or families. No more 10% of Page 59 of 322 3 the total funds paid to Consultant under paragraph 4.1 shall be spent on administrative costs incurred by Consultant in connection with the Project. 5. AUTHORIZED REPRESENTATIVE. The City Administrator shall serve as the Authorized Representative for the City. The City shall have the right to change its Authorized Representative from time to time and shall inform the Consultant of any such change in writing. The Main Street Family Services Executive Director shall serve as the Authorized Representative of the Consultant and as the primary contact and liaison with the City. The Consultant shall have the right to change its Authorized Representative from time to time and shall inform the City of any such change in writing. The Consultant shall submit reports, invoices and other materials prepared pursuant to this Agreement to the City’s Authorized Representative, by mailing or delivering them to: City Administrator or designee City of Elk River 13065 Orono Parkway Elk River MN, 55330 6. RELATIONSHIP BETWEEN THE PARTIES. 6.1 Independent Contractor. Nothing in this Agreement shall be construed as creating the relationship of co-partners, joint ventures, or an association, nor shall the Consultant, its employees, representatives or subcontractors be considered employees, agents or representatives of the City. The Consultant is to be and shall remain an independent contractor with respect to all services performed under this Agreement. The Consultant shall, at its expense, secure all personnel required to perform the services under this Agreement. Any and all personnel of the Consultant or other persons engaged in the performance of any work or services required by the Consultant will have no relationship with the City and will not be considered employees of the City. Such personnel or other persons shall not be entitled to any compensation, rights or benefits of any kind from the City, including, without limitation, Worker’s Compensation, medical care, disability, severance pay and retirement benefits. 6.2 Assignment and Subcontracting. The Consultant shall not assign any interest in this Agreement and shall not transfer any interest in the same, whether by subcontract, assignment or novation. The Consultant shall be responsible for the performance of its work under this Agreement. The Consultant shall not enter into subcontracts for performance of services described in this Agreement. 7. INSURANCE AND INDEMNIFICATION. 7.1 Insurance. Consultant shall meet the following insurance requirements: Page 60 of 322 4 a. General Liability. Consultant at its expense, shall procure and maintain commercial general liability insurance in a minimum amount of $1,000,000 per occurrence; $3,000,000 annual aggregate. b. Automobile Liability. If Consultant operates a motor vehicle in performing the services under this agreement, Consultant shall maintain commercial automobile liability insurance, including owned, hired, and non-owned automobiles, with a minimum liability limit of $1,000,000 combined single limit. c. Workers Compensation. Consultant agrees to provide worker’s compensation insurance for all its employees in accordance with the statutory requirements of the State of Minnesota. The insurance requirements may be met through any combination of primary and umbrella/excess insurance. Consultant shall prior to commencing services under this Agreement deliver to the City a Certificate of Insurance as evidence that the above coverages are in full effect. 7.2 Indemnification. The Consultant agrees to defend, indemnify and hold harmless the City and its officers, officials, agents, volunteers and employees from any and all liability, claims, losses, damages, costs, judgments, or expenses resulting directly or indirectly from any negligent, tortious or illegal act or omission, including without limitation, professional errors or omissions by the Consultant (including its officers, employees, agents and subConsultants) arising from the performance of its services pursuant to this Agreement. For clarification and not by way of limitation, this obligation to indemnify and hold harmless shall apply to all materials prepared or furnished pursuant to this Agreement, including, without limitation, claims resulting from any alleged infringement of copyright or any property right of another, and the unlawful disclosure or use of protected data or other noncompliance with the Records and Information provisions set forth herein. The terms and provisions of this Section shall survive the expiration, suspension or termination of this Agreement. 8. RECORDS AND INFORMATION. 8.1 Data Practices. The Consultant and its employees, agents, successors and assigns will comply with the Minnesota Government Data Practices Act (Minnesota Statutes Chapter 13) as it applies to all data created, collected, received, stored, used, maintained, or disseminated by Consultant pursuant to this Agreement. 8.2 Private and Confidential Data. The Consultant and its employees, agents, successors and assigns shall comply with the provisions of the Minnesota Government Data Practices Act (Minnesota Statutes Ch. 13) and all other applicable state and federal laws, rules and regulations relating to data privacy or confidentiality, which may include, but are not limited to, the Health Insurance Portability and Accountability Act (HIPAA and/or the Health Information Technology for Economic and Clinical Health Act (HITECH). Page 61 of 322 5 9. AUDIT. The Consultant shall maintain complete and accurate records with respect to costs incurred and services performed under this Agreement for a period of at least six (6) years after the termination of this Agreement. Pursuant to Minnesota Statute § 16C.05, Subd. 5, the Consultant shall allow the Legislative or State Auditor, access to the records of the Consultant at reasonable hours, including all books, records, documents, and accounting procedures and practices of the Consultant relevant to the subject matter of the Agreement, for purposes of audit. 10. NOTICE. Any notices required or permitted to be given under this Agreement: (i) shall be in writing signed by or on behalf of the party making the same; (ii) shall be deemed given or delivered (a) if delivered personally, when received, (b) if sent from within the United States by registered or certified mail, postage prepaid, return receipt requested, on the third business day after mailing, or (c) if sent by messenger or reputable overnight courier service, on the next business day after mailing; and (iii) shall be addressed to each party at its address set forth in this Agreement, or at such other address as the parties shall designate in writing by personal delivery, certified mail, or overnight courier service. 11. DISPUTES. The Consultant’s Authorized Representative and the City’s Authorized Representative shall meet and confer in good faith on any issue that arises under this Agreement. This meet and confer shall be a condition precedent to either party’s exercise of the rights and remedies they may have under this Agreement or at law with respect to the claim, dispute or other matter. 12. TERMINATION AND SUSPENSION. 12.1 With Cause. This Agreement may be suspended or terminated by the City if the Consultant violates any of the terms or conditions of this Agreement. 12.2 Without Cause. Either party may terminate this Agreement without cause by giving at least 30 days written notice to the other party. Upon receipt of a notice of such termination, the Consultant shall take all action necessary to discontinue work or further commit City funds. 12.3 Payment Upon Termination. All funds paid to Consultant under paragraph 4.1 that are unspent as of the date the Agreement is terminated shall be returned immediately to the City. The City shall have no further obligation to make any outstanding installment payments provided for under paragraph 4.1 in the event this Agreement is terminated. 13. GENERAL PROVISIONS. Page 62 of 322 6 13.1 Entire Agreement; Amendments; Conflicts. This Agreement constitutes the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, documents and proposals, oral or written, between the parties with respect thereto. Any amendment or modification to this Agreement shall not be valid unless such amendment or modification (i) is in writing and signed by authorized representatives of both parties and (ii) references this Agreement. The terms and conditions of the exhibits are integral parts of this Agreement and are fully incorporated herein by this reference. 13.2 Compliance with Applicable Law. The Consultant agrees to comply with applicable federal, state and local laws or ordinances, and applicable rules, regulations, and standards established by any agency of such governmental units, which are now or hereafter promulgated insofar as they relate to the Consultant’s performance of the provisions of this Agreement. This includes, but is not be limited to, complying will all rules, regulations and requirements established by the State of Minnesota, or any agency thereof, including the Minnesota Department of Revenue and Minnesota Department of Housing, pertaining to Minnesota Statewide Affordability Housing Aid. 13.3 Governing Law; Jurisdiction; Venue. This Agreement shall be governed by the laws of the State of Minnesota, without regard to its conflict of laws rules. For the purpose of resolving conflicts related to or arising out of this Agreement, the parties expressly agree that venue shall be exclusively in the State of Minnesota, County of Sherburne. The parties hereby expressly consent to the exclusive personal jurisdiction of the federal and state courts located in the State of Minnesota, regardless of the citizenship or residency of either party at the time of the commencement of any legal proceeding. 13.4 Conflict of Interest. The Consultant affirms that, to the best of the Consultant’s knowledge, the Consultant’s involvement in this Agreement does not result in a conflict of interest with any party or entity, which may be affected by the terms of this Agreement. 13.5 Assignment and Delegation. Neither party shall assign its rights or delegate its duties under this Agreement. 13.6 Successors in Interest. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties and their permitted successors and assigns. 13.7 Severability. In the event that any portion of this Agreement shall be held to be invalid, such invalidity shall not affect the validity of the remainder of this Agreement. 13.8 Execution. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and to constitute one and the same instrument. Electronic copies of this Agreement, including without limitation, those transmitted by facsimile or scanned to an image file, shall be considered originals. [Signature page follows.] Page 63 of 322 7 IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the Effective Date set forth above. CITY OF ELK RIVER MAIN STREET FAMILY SERVICES By: _____________________________ By: _____________________________ John Dietz, Mayor And: ____________________________ Its: _____________________________ Tina Allard, City Clerk Date: ____________________________ Date: ____________________________ Page 64 of 322 A-1 EXHIBIT A Main Street Family Services Family Resource Center Guide for Use of SAHA Funds The following requirements shall govern services provided by Main Street Family Services (the “Consultant”) in administering Minnesota Affordability Housing Aid (“SAHA”) received from the City of Elk River (the “City”): I. Use of Funds. SAHA received by the Consultant from the City shall only be used as follows: • Funds must be used for housing-related expenses, such as: o Lease, rent or mortgage assistance o Utility payments and disconnects, including telephone and internet services. o Emergency shelter support to help with transitions and housing o Security deposits or application fees • SAHA may be utilized for emergency rental assistance that will prevent an eviction or secure housing for anyone who is homeless, and have a household earning of less than 80% of the area median income for the Minneapolis-St. Paul-Bloomington, MN- WI HUD Metro FMR Area, which includes Sherburne County, as defined by HUD and available for verification at https://www.huduser.gov. • Payments shall not exceed $3,000 per household per year without approval from the City’s authorized representative. • No payment will be directly given to recipients. II. Eligibility Criteria. Consultant shall ensure SAHA is used to aid individuals and families based on the following criteria: • Must be a resident of Elk River. • Must demonstrate financial need or housing instability. • Priority may be given to families with children, seniors, or individuals with disabilities. • Funds are not available for crises resulting from fraud or misrepresentation on the part of the individual or family. • Any housing-related emergency prompting the individual or family to seek assistance must not have been caused by money mismanagement, defined as follows: o Repeated inability to plan the use of income to meet necessary expenditures. o Repeated failure to meet obligations for rent, utilities, food, and other essentials. o Repeated eviction notices and/or utility disconnects. o Repeated use of Emergency Assistance funds. o Utilizing money on unnecessary purchases that may have led to or caused an emergency. • Funds will be approved for the most cost-effective solution. • Payment in combination with other resources must be able to resolve the emergency, not just postpone it. Page 65 of 322 A-2 • Eligible households must first apply through the Sherburne County Emergency Assistance (EA/EGA) programs when applying for emergency assistance for housing or utilities. • Within the time necessary to resolve the crisis, the household must be unable to resolve its emergency by combining the following sources of all household members: o Liquid assets & any other assets can quickly liquidate (not including vehicles) o Income they anticipate receiving o Tax refunds o Other funds for which they are eligible Any of the criteria listed above may be waived only with approval from the City’s authorized representative. III. Documentation Requirements. Those applying for SAHA must provide the following documentation as a condition of receiving aid: • Proof of income or financial hardship • Proof of residency • Proof of need, such as lease agreements or utility bills • Person identification, such as a driver’s license, birth certificate, or other government- issued ID IV. Compliance and Reporting. • Misuse of funds may result in disqualification from future assistance. • Those receiving SAHA are required to complete and provide to Consultant a Form W-9. Page 66 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 4.5 Meeting Date November 3, 2025 Prepared By Joe Stremcha, Business Services Director/Assistant City Administrator Item Description Agreement 25-32: Architectural Services with LSE Architects for Northbound/Cannabound. Reviewed by Cal Portner Tina Allard Action Requested Approve, by motion, Agreement 25-32, the AIA B133-2019 contract agreement with LSE Architects for Northbound and Cannabound. Background/Discussion On April 7, the City Council approved a letter of engagement to begin preliminary design efforts for Northbound and Cannabound. The AIA B133-2019 agreement solidifies the terms and conditions of our partnership with LSE Architects for the duration of the project. Financial Impact Base fee: $427,000 (7% of construction costs). Optional fee items as detailed in the LSE Letter of Engagement (March 2025): ▪ Low Voltage (AV/ security/ data) - $9,250.00 ▪ B3 level process - $31,250.00 ▪ Energy Modeling (exterior envelope) - $28,250.00 Mission/Policy/Goal Responsible for every dollar - good stewards. Meet changing needs - agile. Attachments 1. B133-2019 - Northbound-Cannabound 2025.10.22 - Final 2. EXHIBIT-C Invoice schedule_10.23.2025 3. Exhibit B - LSE Reimbursable Expenses_2025 4. Exhibit A - LSE Hourly Rates_2025 Page 67 of 322 Page 68 of 322 Page 69 of 322 Page 70 of 322 Page 71 of 322 Page 72 of 322 Page 73 of 322 Page 74 of 322 Page 75 of 322 Page 76 of 322 Page 77 of 322 Page 78 of 322 Page 79 of 322 Page 80 of 322 Page 81 of 322 Page 82 of 322 Page 83 of 322 Page 84 of 322 Page 85 of 322 Page 86 of 322 Page 87 of 322 Page 88 of 322 Page 89 of 322 Page 90 of 322 Page 91 of 322 Page 92 of 322 Page 93 of 322 EXHIBIT C - Northbound | Cannabound Exhibit C - Invoice ScheduleNorthbound + CannaboundDate: 10.23.2025 MAYJUNEJULYAUGSEPTOCTNOVDECJANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDECJANTOTALSContract A/E FeesInvoice Date 05/20/25 06/30/25 07/31/25 08/31/25 09/30/25 10/31/25 11/30/25 12/31/25 01/31/26 02/28/26 03/31/26 04/30/26 05/31/26 06/30/26 07/31/26 08/31/26 09/30/26 10/31/26 11/30/26 12/31/26 01/31/27Project Phase RETAINER PROG/ ASSESS PROG/ CONCEPTConcept/DESIGNDESIGN DESIGN DOCUMENTS DOCUMENTS DOCUMENTS/BID BID/PERMIT PERMITTING CA mo. 1 CA mo. 2 CA mo. 3 CA mo. 4 CA mo. 5 CA mo. 6 CA mo. 7 CA mo. 8 CA mo. 9 CA mo. 10 Base Contract Fees496,500$ 15,000$ 12,424$ 12,424$ 20,000$ -$ 40,000$ 115,000$ 115,000$ 66,500$ 4,965$ 4,965$ 9,024$ 9,024$ 9,024$ 9,024$ 9,024$ 9,024$ 9,024$ 9,024$ 9,024$ 9,008$ 496,500$ Total Monthly Fee Invoice 15,000$ 12,424$ 12,424$ 20,000$ -$ 40,000$ 115,000$ 115,000$ 66,500$ 4,965$ 4,965$ 9,024$ 9,024$ 9,024$ 9,024$ 9,024$ 9,024$ 9,024$ 9,024$ 9,024$ 9,008$ 496,500$ InvoicedPage 94 of 322 EXHIBIT B - LSE REIMBURSABLE EXPENSES Description Rates Reproduction 8-1/2” x 11” B&W $ .15 8-1/2” x 11” Color $ 1.35 11” x 17” B&W $ .30 11” x 17” Color $ 2.50 HP Plotter Bond $ .75/sf CANON Plotter 7 mil Matte or Satin $ 7.25/sf Foam Core Boards (depending on size) $5.00 – 15.00 Mileage (rate per mile) Prevailing Government Rate Air Fare As billed to LSE Auto Rental As billed to LSE Other Transportation As billed to LSE Parking and Tolls As billed to LSE Meals As billed to LSE Lodging As billed to LSE Postage/Delivery Charges As billed to LSE Telephone (Long Distance) As billed to LSE Materials and Supplies As billed to LSE Models, Animations and Renderings (Presentation) As billed to LSE Photographic/Film As billed to LSE Codes/Ordinances As billed to LSE Legal As billed to LSE Consultants Cost plus 10% - 25% Sales Tax, If Applicable As billed to LSE Project Reimbursable Expenses will be invoiced at cost plus 10%, except Consultants which will be billed as noted. Effective January 1, 2025 Subject to Periodic Adjustment Page 95 of 322 EXHIBIT A - LSE HOURLY RATES Category/Position Billing Rate Description of Category Principal $250 - Principals who lead client projects Senior Professional $150 - $200 - All registered or licensed professionals with 10 years or more experience - All personnel in equivalent roles in related professional disciplines in which there is no registration, but who have 15 years experience in their field including 10 years experience in leadership roles in those related disciplines. Examples of these disciplines are: Construction Administration, Design, Technology or similar areas of expertise. Professional $100 - $125 - New registrants and all registered professionals with less than 10 years since registration - Non-registered Architectural or Design personnel who have more than 15 years experience in their professional discipline and are in direct professional leadership roles in their field. - All personnel in equivalent roles in related professional disciplines in which there is no registration, but who have 15 years experience and are in direct leadership roles in their field. Examples of these disciplines are: Construction Administration, Design, Technology or similar areas of expertise. Professional Support $85 - $100 - New professional degreed graduates and interns who are not yet registered - Non-registered Architectural or Design personnel who have 10 years experience in their professional discipline under the supervision of registered professionals or related discipline professionals. - All personnel in related professional disciplines in which there is no registration, but have 10 years experience in their field. Examples of these disciplines are: Construction Administration, Design, Technology or similar areas of expertise and work under the supervision of others in their field. - - Drafters, CADD technicians, Designers and similar technicians without registration, but with 10 years experience in their professional support field Technical $75 - Non-registered Architectural or Design personnel who have less than 10 years experience in their professional discipline. - All personnel in related professional disciplines in which there is no registration, but have less than 10 years experience in their professional support field. - - Drafters, CADD technicians, Designers and similar technicians without registration, but with less than 10 years experience in their professional support field. - - All Administrative support, clerical and word processing personnel with 10 years experience. Clerical $50 - All Administrative support, clerical and word processing personnel with less than 10 years experience. Effective January 1, 2025 Subject to Periodic Adjustment Page 96 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 4.6 Meeting Date November 3, 2025 Prepared By Joe Stremcha, Business Services Director/Assistant City Administrator Item Description Ordinance Amendment 25-15: Community Event Center Commission Reviewed by Joe Stremcha Cal Portner Tina Allard Action Requested Approve, by motion, an ordinance amendment as recommended by the Community Event Center Commission. Background/Discussion Motion by Commissioner Beyer and seconded by Vice Chair Walker to recommend the following ordinance changes to City Council: ▪ Remove section 4 (3) - developing an annual report on the outcomes and activities of the facility to the City Council, as this will now be completed by staff. ▪ Remove section 4 (4) - no longer review facility rental rates and recommend a fee schedule to the City Council for incorporation into the annual budget. ▪ Revise section 4 (5) to: The Commission shall recommend a preliminary budget that balances facility revenue and expenses. The budget will include projected revenue, expenses, transfers, and capital improvements and shall be completed no later than June 30 of each year. Financial Impact None. Mission/Policy/Goal Work with citizens to achieve goals. Attachments 1. Draft Ordinance Page 97 of 322 Strikethroughs to be removed Underlines to be added Ordinance 25-15 An Ordinance Amending Chapter 2, Division 4, Multipurpose Facility AdvisoryCommunity Event Center Commission of the City of Elk River, Minnesota, City Code The City Council of the City of Elk River does hereby ordain as follows: SECTION 1. That §2- 253. Powers and Duties of the City of Elk River Code of Ordinances shall be amended as follows: The community event center commission authority shall include, but not be limited to, the study and recommendation to the city council on the following: (1) Review the value and mission statement annually and amend as so desired. (2) Serves as a conduit to the public to gain feedback on the effectiveness of the facility and services provided. Holds at least one annual public hearing to receive community comments regarding the operation, use, and future development of the facility. (3) Develop an annual report on the outcomes and activities of the facility to the city council. (4) The commission shall review facility rental rates annually and recommend a fee schedule to the city council for incorporation into the annual budget. (5) The commission shall recommend a preliminary budget that balances facility revenue and expenses. The budget will include projected revenue, expenses, transfers, and capital improvements and shall be completed no later than June 30 of each year. The budget shall be completed no later than November 1 of each year. (6) The commission shall annually provide a draft capital improvement plan to the city council that includes capital replacements, repairs, and additions. The plan shall project improvements over a rolling ten-year period. The capital plan shall be completed no later than November 1 of each year. (7) The commission shall review and recommend operational policies for the facility and review all policies at a minimum every two years. SECTION 2. That this ordinance shall take effect upon adoption and be published as provided by law. Passed and adopted by the City Council of the City of Elk River this 17th day of November, 2025. ______________________________ John J. Dietz, Mayor Page 98 of 322 Strikethroughs to be removed Underlines to be added ATTEST: _______________________________ Tina Allard, City Clerk Page 99 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 4.7 Meeting Date November 3, 2025 Prepared By Zack Carlton, Community Development Director Item Description Resolution 25 - 64: Final Plat of Oakwater Ridge First Addition Reviewed by Chris Leeseberg Cal Portner Tina Allard Action Requested Adopt Resolution 25-64 approving the final plat of Oakwater Ridge, subject to the following conditions. 1. Staff approval of all engineering, grading, utility, site, and landscape plans. 2. Park dedication shall be paid at an adjusted rate of $1,000 per lot. 3. The Water Availability Charge shall be paid prior to releasing the final plat. 4. The developer shall convey outlots A, C, and O to the city prior to releasing the final plat. 5. Developer must coordinate the relocation or modification of overhead power lines and poles with Elk River Municipal Utilities (ERMU). 6. Prior to releasing the Final Plat for recording, the developer shall furnish a boundary survey of the proposed property to be platted with all property corner monumentation in place and marked with lath and a flag. 7. Council approval of a Development Contract outlining the responsibilities of the developer and the city. 8. A letter of credit equal to 100% of the cost of the public improvements must be provided prior to releasing the plat for recording. 9. Upon completion of all public improvements and acceptance by the city, a security or warranty in a form acceptable to the public works director must be secured. 10. All wet stormwater basins require a 25-foot easement in accordance with setback and buffer requirements outlined in Sec. 30-1852. The buffer must be marked with approved signs. 11. Setback lines shown on all plans must reflect the 45-foot setback required for all wet ponds. 12. Trails and other features within the floodplain must comply with the floodplain ordinance standards. 13. All temporary dead ends must include signage stating "Future Through Street" and a temporary cul-de- sac when the street will have driveway access. 14. The developer and the city must design and install access improvements at Highway 10 and 165th Ave to support the traffic needs of the proposed development. 15. Any item or condition found that indicates the site is likely to yield information important to pre- history or history shall be reported to the city immediately. Furthermore, the city reserves the right to halt work authorized for its approval until the site has been properly investigated and the work is authorized. Page 100 of 322 Background/Discussion The applicant, Capstone Homes, is seeking approval for their first phase of Oakwater Ridge. This phase will consist of 89 single-family lots, ranging in size from 50 feet to 100 feet wide, and will establish the primary entrance into the subdivision off Highway 10. This intersection is still under development in partnership between the City of Elk River and the developer and is expected to be constructed in late 2026. This first addition also includes the two-acre city park on the top of the bluff and ties into the association- maintained park along the river. The existing billboards will be removed by the time construction begins. The city has issued the permits for the billboards planned to move from the south side of Highway 10 to the north side. That work is expected to be completed before the end of the year. Staff and the developer are working to finalize the language for a development agreement that outlines the responsibilities and costs for this project. There are a few remaining items for discussion, specifically the issuance of Certificates of Occupancy and Building Permits. This may come back for City Council discussion at a later date. Financial Impact None Mission/Policy/Goal Support the growth and development of the community. Opportunity to live, work, and play. Attachments 1. Location Map 2. Grading and Development Plans dated September 5, 2025 3. Oakwater Ridge Final Plat 4. Final Plat Resolution Page 101 of 322 Page 102 of 322 Page 103 of 322 Page 104 of 322 Page 105 of 322 Page 106 of 322 Page 107 of 322 Page 108 of 322 Page 109 of 322 Page 110 of 322 Page 111 of 322 Page 112 of 322 Page 113 of 322 Page 114 of 322 Page 115 of 322 Page 116 of 322 Page 117 of 322 Page 118 of 322 Page 119 of 322 OAKWATER RIDGEPage 120 of 322 OAKWATER RIDGEMISSISSIPPI RIVER165TH AVENUE NW165TH AVENUE NW165TH AVENUE NWSTREE TWILSON ST. NWVANCEYALENNNN(see sheet 4of 12 sheets)INSET B(see sheet 3of 12 sheets)INSET A(see sheet 5of 12 sheets)INSET C(see sheet 6of 12 sheets)INSET D(see sheet7 of 12sheets)INSET ENW STR E E T WILSONULYSSESST. NWNW NW WILSONST. NWXAVIERSTREET NWXAVIERSTREETNWSTREETNW(see sheet8 of 12sheets)INSET F(see sheet9 of 12sheets)INSET G(see sheet 10of 12 sheets)INSET H(see sheet 11of 12 sheets)INSET I(see sheet 12of 12 sheets)INSET JULY S S E S STRE E T Page 121 of 322 OAKWATER RIDGEMATC H LI N E A (SEE S H E E T 6 O F 1 2 S H E E T S)AVENUEULYS S E S S T R E E T N W ULYSSES STREET NWINSET A165THNWMATCH LINE B(SEE SHEET 4 OF 12 SHEETS)VANCE STREETNWPage 122 of 322 OAKWATER RIDGENW INSET BULYSSESVANCEWILSON STREET NWSTREET STREET NW MATCH LINE B(SEE SHEET 3 OF 12 SHEETS)Page 123 of 322 OAKWATER RIDGEINSET CWILSONSTREETNWPage 124 of 322 OAKWATER RIDGEINSET DMATCH LINE A(SEE SHEET 3 OF 12 SHEETS)165THWILSON STREET NWSTREETNWW I L S O N S T R E E T N W MATCH LINE C(SEE SHEET 7 OF 12 SHEETS)Page 125 of 322 INSET EOAKWATER RIDGEMISSI S S I P P I R I V E R165TH AVENUE NWXAVIER STREET NWXAVIER STREET NWNWSTREETYALENWYALE STREETMATCH LINE C(SEE SHEET 6 OF 12 SHEETS)Page 126 of 322 OAKWATER RIDGEINSET FMISSISSIPP I R I V E R Page 127 of 322 OAKWATER RIDGEINSET GMISSISSIPPI RIVERPage 128 of 322 OAKWATER RIDGEINSET HPage 129 of 322 OAKWATER RIDGEINSET IMIS SI S SI P PI RI V E R Page 130 of 322 OAKWATER RIDGEINSET JPage 131 of 322 Resolution 25- 64 A Resolution of the City of Elk River Granting Final Plat Approval for Oakwater Ridge Case No. P 25-21 WHEREAS, application has been made for final plat approval, pursuant to Section 30-374 of the Elk River City Code of Ordinances, of the property legally described on attached Exhibit A and hereinafter referred to as “the Property”; and WHEREAS, a preliminary plat for the north half of the Property was approved by the City Council on July 21, 2025; and WHEREAS, the proposed final plat is consistent with the preliminary plat as approved by the City council; and WHEREAS, the proposed final plat complies with each of the conditions set forth by the City Council in its approval of the preliminary plat of the Property. NOW, THEREFORE, BE IT RESOLVED 1. It is hereby determined by the City Council for the City of Elk River as follows: A. The proposed subdivision is consistent with the Chapter of 30 of the City Code of Ordinances and conforms with all its requirements. B. The proposed subdivision is consistent with all applicable general and specialized city, county, and regional plans including, but not limited to, the City’s Comprehensive Plan. C. The physical characteristics of the site, including, but not limited to, topography, soils, vegetation, susceptibility to erosion and siltation, susceptibility to flooding, and drainage are suitable for the type and density of development and uses contemplated. D. The proposed subdivision makes adequate provision for water supply, storm drainage, sewage transportation, erosion control and all other services, facilities and improvements otherwise required herein. Page 132 of 322 E. The proposed subdivision will not cause substantial environmental damage. F. The proposed subdivision will not conflict with easements of record or with easements established by judgment of a court. G. The proposed subdivision will not have an undue or adverse impact on the reasonable development of neighboring land. 2. Final plat approval is hereby granted for the Property, subject to the conditions set forth in attached Exhibit B. 3. The officers of the City are hereby authorized, once the conditions set forth in Exhibit B are met and complied with, to sign the final plat for the Property and to issue a certified copy of this Resolution giving final approval of the plat. 4. The owner of the Property is authorized to record the final plat as required by law and shall file proof of said recording with the City. No building permits will be issued for the Property until the final plat is recorded. 5. This final plat approval shall expire two years from the date of this resolution if the final plat is not recorded within that time. Passed and adopted this 3rd day of November 2025. John J. Dietz, Mayor ATTEST: Tina Allard, City Clerk Page 133 of 322 EXHIBIT A LEGAL DESCRIPTION Parcel 1: Those parts of the West Half of the Northeast Quarter and the Southeast Quarter of the Northeast Quarter, all in Section 14, Township 32, Range 26, Sherburne County, Minnesota, which lies Southwesterly of the Southwesterly Right of Way line of U.S. Highway No. 10 and Northwesterly of the Northwesterly Right of Way line of Kelley Farm Road N.W., both Right of Way lines per the recorded plat of Minnesota Department of Transportation Monumentation Plat 71-M2. Parcel 2: Government Lot 1, and that part of the Southeast Quarter of Southwest Quarter, Section 11, Township 32, Range 26, Sherburne County, Minnesota, which lies Southwesterly of the Southwesterly right of way line of U.S. Highway No. 10, per the recorded plat of Minnesota Department of Transportation Monumentation Plat 71- M1. Parcel 3: Government Lot 3; Government Lot 4; and that part of the Northeast Quarter of the Northwest Quarter, all in Section 14, Township 32, Range 26, Sherburne County, Minnesota, which lies Southwesterly of the Southwesterly Right of Way line of U.S. Highway No. 10 per the recorded plat of Minnesota Department of Transportation Monument Plat 71-M2. Abstract Property Page 134 of 322 EXHIBIT B CONDITIONS OF APPROVAL 1. Staff approval of all engineering, grading, utility, site, and landscape plans. 2. All park dedication requirements described the preliminary plat and planned unit development approvals. 3. Park dedication shall be paid at an adjusted rate of $1,000 per lot. 4. The Water Availability Charge shall be paid prior to releasing the final plat. 5. The developer shall convey outlots A, C, and O to the city prior to releasing the final plat. 6. Developer must coordinate the relocation or modification of overhead power lines and poles with Elk River Municipal Utilities (ERMU). 7. Prior to releasing the Final Plat for recording, the Developer shall furnish a boundary survey of the proposed property to be platted with all property corner monumentation in place and marked with lath and a flag. 8. Council approval of a Development Agreement outlining the responsibilities of the developer and the city. 9. A letter of credit equal to 100% the costs of the public improvements must be provided prior to releasing the plat for recording. 10. Upon completion of all public improvements and acceptance by the city, a security or warranty in a form acceptable to the Public Works Director must be secured. 11. All wet stormwater basins require a 25-foot easement in accordance with setback and buffer requirements outlined in Sec. 30-1852. The buffer must be marked with approved signs. 12. Setback lines shown on all plans must reflect the 45-foot setback required for all wet ponds. 13. Trails and other features within the floodplain must comply with the floodplain ordinance standards. 14. All temporary dead ends included in future development plans must include signage stating, "Future Through Street" and a temporary cul-de-sac when the street will have driveway access. 15. The developer and the city must design and install access improvements at Highway 10 and 165th Ave to support the traffic needs of the proposed development. 16. Any item or condition found that indicates the site is likely to yield information important to pre-history or history shall be reported to the city immediately. Further, the city reserves the right to stop work authorized in its approval until the site is appropriately investigated and work is authorized. Page 135 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 7.1 Meeting Date November 3, 2025 Prepared By Chris Leeseberg, Senior Planner Item Description Conditional Use Permit CU 24-22: Winlectric CUP Revocation Hearing Reviewed by Zack Carlton Cal Portner Tina Allard Action Requested Open the public hearing, receive evidence and testimony regarding the revocation of Conditional Use Permits (CU 22-11 & CU 24-22), issued to Elk River Winlectric at 12777 Meadowvale Road NW, and, at the conclusion of the hearing, the Council may: 1. Direct staff to prepare a resolution revoking the Conditional Use Permits; and, 2. Allow the property owner to avoid revocation of the CUP if all outdoor materials are properly stored behind fencing, within the building, or removed from the property by November 17, 2025. or 1. Direct the applicant to apply for an amendment by November 24, 2025, to further extend the deadline. Background/Discussion Conditional Use Permit (CU 22-11) was approved on July 18, 2022, with specific conditions pertaining to outdoor storage. The permit required compliance with these conditions by July 18, 2024. Staff extended the deadline to December 31, 2024, after the applicant noted that they required additional time to meet the standards. Before the extended deadline, the conditions were not expected to be satisfied by the end of December, and the applicant applied for an amendment on December 26, 2024. On March 17, 2025, the city approved an amendment (CU 24-22) to the original CUP, which extended the timeline to satisfy the approved conditions to July 1, 2025, as requested by the applicant. When compliance was not achieved by that date, staff extended the deadline to August 25, 2025, and, again, granted a final extension to September 30, 2025. Additionally, Winlectric has had recent staff changes, and the former company representative that staff had been working with is no longer with the company. The new contact has indicated that the fence has been approved internally, and the fence contractor completed a property survey on October 27, 2025, to verify the property lines. Staff have been informed that the fence installation is set to begin on Wednesday, November Page 136 of 322 5, 2025. The council can do one of the following: 1. Direct staff to prepare a resolution revoking the Conditional Use Permits; and, 2. Give the property owner the opportunity to avoid revocation of the CUP if all outdoor materials are properly stored behind fencing, within the building, or removed from the property by November 17, 2025. or, 3. Direct the applicant to apply for an amendment by November 24, 2025, to further extend the deadline. Financial Impact None Mission/Policy/Goal Ethical, efficient, and responsible. Attachments 1. City Council Memo 10-6-2025 Page 137 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 11.1 Meeting Date October 6, 2025 Prepared By Chris Leeseberg, Senior Planner Item Description Winlectric Conditional Use Permit Discussion Reviewed by Zack Carlton Cal Portner Tina Allard Action Requested Direct staff to extend the deadline for CUP compliance or call a public hearing to begin the formal revocation process. Background/Discussion The Conditional Use Permit (CU 22-11) was approved on July 18, 2022, with specific conditions pertaining to outdoor storage. The permit required compliance with these conditions by July 18, 2024; however, staff extended the deadline to December 31, 2024. The CUP conditions were not on schedule to be satisfied by the end of December and the applicant applied for an amendment on December 26, 2024. On March 17, 2025, the city approved an amendment (CU 24-22) to the original CUP, which extended the compliance deadline to July 1, 2025, as requested by the applicant. When compliance was not achieved by that date, staff extended the deadline to August 25, 2025, and, again, granted a final extension to September 30, 2025. As documented in the attached correspondence, staff have made consistent efforts to work with the applicant to facilitate compliance with the conditions of the CUP. The City Council can choose to extend the deadline for compliance with the conditions of approval for the two CUPs, or direct staff to schedule a public hearing to discuss the possible revocation of the CUPs. Financial Impact None Mission/Policy/Goal Ethical, efficient, and responsible. Attachments 1. CU 24-22 CC Action Letter 2. Site Photos 10-2-2025 Page 138 of 322 3. Ongoing Emails Page 139 of 322 Phone: 763.635.1000 www.ElkRiverMN.gov March 19, 2025 Elk River Winlectric - Troy Tamm Via email: Tetamm@winlectric.com 12777 Meadowvale Rd. NW Elk River, MN 55330 Wholesalers Property CO LLC – Ward Allen 3110 Kettering Blvd Kettering OH 45439 RE: City Council Action for Case No. CU 24-22 Dear Mr. Tamm and Mr. Allen: On March 17, 2025, the City Council reviewed your application for an Amendment to Conditional Use Permit CU 22-11 for Winlectric, located at the address listed above and approved the request with the following conditions: 1. The property shall comply with Section 30-807 regarding outdoor storage. 2. All outdoor storage must occur within fenced in areas. 3. All temporary outdoor storage structures shall be removed from the property by July 1, 2025. 4. All areas utilized for outdoor storage be completely screened from view from all public rights-of-way by July 1, 2025. 5. No product can be stored higher than the top of the fence. 6. The parking lot shall be striped by July 1, 2025. 7. An amendment to this Conditional Use Permit will be required for any future changes. If you have any questions regarding the meeting or the conditions listed above, please let me know. When conditions are complete, the CUP document will be recorded at Sherburne County and the recorded copy uploaded into CitizenServe portal. Sincerely, Chris Leeseberg Senior Planner Ph: 763.635.1033 cleeseberg@ElkRiverMN.gov Page 140 of 322 Page 141 of 322 Page 142 of 322 Page 143 of 322 Page 144 of 322 On Going Emails July 18, 2022 Original CUP (CU 22-11) approved. Tue, Nov 12, 2024 Good afternoon Troy, We are following up regarding a few Conditional Use Permit (CUP) issues that need to be addressed. While we understand the need for staging on site and consider that acceptable, there are concerns with the prolonged storage of materials outside your approved storage area, including behind the building. Per Condition #5, all outdoor storage must occur within fenced areas. Additionally, all temporary outdoor storage structures were to be removed from the property by July 18, 2024. Both of these items were discussed back in November 2023. We request that all outdoor storage items be moved within the fenced area or inside and all temporary structures be removed by December 13, 2024. If these actions are not completed by that date, we will bring the matter to the City Council for discussion on a potential CUP revocation. We will notify you of any meetings, if needed. We understand there are other businesses in the area with unscreened outdoor storage also, and we will be reaching out to them regarding this matter. Please reach out if you have any questions. Thank you, Chris Tuesday, November 12, 2024 Good afternoon I assume you have more complaints in regards to this....I thought we did a hell of a job getting into compliance with fencing in 1/2 of the property. We try to avoid items being outside the fence area when possible, but loading and shipping causes items to remain overnight at times. We discussed adding the fence behind the building to eliminate the items behind us and were gonna pursue this in spring of 2025. McChesney took down a tree and tore up some of his landscaping late summer early fall and wanted to wait until he was done with his project. We are still on waiting list of additional storage next to us (KISER) in there storage garages, we have 3 and are looking to add 2-3 more and would be able to eliminate the job containers that are still present. We do fill and ship job lots in these containers. We did move the one we had in back and eliminated it. Maybe we can see if we can extend the CUP permit for this matter, it would help us out tremendously. We do our best to keep our property looking as good as possible. Page 145 of 322 Thanks Troy Wednesday, November 20, 2024 10:39 AM Good morning Troy, You are correct, your property/landscaping looks good, and your outdoor storage is well-organized. However, the current issue is that, according to both the approved CUP and the ordinance, outdoor storage is required to be screened from view in the public right-of-way. We have not received any additional complaints, and the current correspondence is our follow-up to ensure compliance with both city ordinances and the approved CUP. As mentioned, we understand that you are very busy, your business is thriving and have a need for on-site staging and find it acceptable. With lead times on products being unpredictable, we recognize the importance of planning ahead by ordering extra. However, long-term storage remains a concern, for example, the conduit on the east side has been there since early summer. As an additional reminder of these requirements, and as outlined in your approved CUP from November 2022, the deadline to substantially complete the work was July 18, 2024. Staff’s goal is to work with every applicant to meet the standards and will provide an extension through the remainder of the year. All outdoor storage items must be relocated to an area within the fenced area or indoors, and all temporary structures must be removed by December 31, 2024. As an alternative, you may request an amendment to your CUP. This is the same process/cost as you went through with the original request, with a public hearing, Planning Commission recommendation, and City Council action. Please let me know if you have any questions. Thank you, Chris March 17, 2025 Original CUP Amendment (CU 24-22) approved. Wednesday, March 19, 2025 11:51 AM Troy, Attached is the City Council approval letter for your request to amend CU 22-11 to extend requirements for outdoor storage requirements until July 1, 2025. Please read the attached letter outlining the conditions of the approval. If you have any questions, please reach out to Chris. Page 146 of 322 Thank you, Jennifer Wednesday, May 28, 2025 4:33 PM Hi Troy, With July 1, 2025, not too far away, we are checking in to see how you are coming along with your required conditions and if you have any questions. Thank you, Chris Friday, June 13, 2025 9:50 AM Hi Troy, As you are aware, the City Council approved your extension to complete your conditions by July 1, 2025. A recent review of your property shows limited progress on bringing the outdoor storage into compliance. All outdoor storage must be located within fenced in areas and completely screened from view from all public rights-of-way or removed, and all temporary outdoor storage structures must be removed. If the conditions of the approved CUP are not met by July 1, 2025, we will schedule a meeting with the City Council to discuss possible revocation of your permit. Let me know if you have any questions. Thank you, Chris Friday, June 13, 2025 10:01 AM Good morning It'll be done. The City spent 5 weeks getting the permit issued to Chad, who is building the storage unit that we are moving into. So, blame the person or people who dropped the ball on issuing his permit if it runs over july 1st. The construction started on wednesday and hopefully concrete on the 23rd. Once concrete is in the new building the storage containers will be moved. thanks troy Fri, Jun 13, 2025 at 11:42 AM Troy, Page 147 of 322 The city is pleased to hear you are confident that you will be able to bring your business and CUP into compliance by the Council approved date. Please understand the approval of your CUP was not contingent on other properties. I had the building department investigate the timeline: • They applied on 4/07/2025 • All reviews were completed by 4/14/2025 (6 business days) • An email on 4/11/2025 was sent that the city needed plans to be signed by a licensed architect. This is stated on the permit application also. • Signed plans were received on 5/15/2025. (34 days after applicant was notified) • Updated plans were put back into review on 5/16/2025. (late Friday) • The plans were approved on 5/19/2025. (1 business day) • In total, the time this plan spent in city review was 7 business days, not 5 weeks. Your CUP was approved on July 18, 2022, nearly three years ago. Thank you and have a great weekend. Chris Friday, June 13, 2025 10:57 AM I just talked with Chad and his permit was submitted (march) and had everything done, but after he submitted the structural plan the building dept said 5 weeks after he submitted, that he needed an architectural plan also. He said all this could've been done on the original submission date 4/7/25. Whatever. The building will be up next week, with concrete going in the next, so the plan is June 27th having the storage containers gone. Thanks Troy Fri, Jun 13, 2025 at 12:12 PM Troy, That is incorrect but beside the point for your CUP. You only mention the storage containers will be gone, please remember everything stored outside needs to be behind a fence or moved inside. It sounds like everything should work out as needed, which is great and the goal of the city. Thank you, Chris Page 148 of 322 Friday, June 13, 2025 12:11 PM There will be a fence going up in back. I can't store pipe inside the building or spools, that is staying outside. We do also stage shipping a day or two ahead of time and we use our yard for that. Thanks Troy Fri, Aug 8, 2025 at 12:55 PM Troy, As you are aware, the City Council granted an extension for completion of the conditions associated with your Conditional Use Permit (CUP) until July 1, 2025. As of today, more than a month has passed since that deadline, and several required conditions remain unfulfilled. 1. The property shall comply with Section 30-807 regarding outdoor storage. 2. All outdoor storage must occur within fenced in areas. (not completed) 3. All temporary outdoor storage structures shall be removed from the property by July 1, 2025. (completed) 4. All areas utilized for outdoor storage be completely screened from view from all public rights-of-way by July 1, 2025. (not completed) 5. No product can be stored higher than the top of the fence. (not completed) 6. The parking lot shall be striped by July 1, 2025 (not completed) 7. An amendment to this Conditional Use Permit will be required for any changes to the site plan dated May 17, 2025. If all outstanding conditions are not addressed by August 25, 2025, the matter will be placed on the September 2, 2025, City Council agenda for discussion and direction regarding potential revocation of the CUP, should the property remain out of compliance. Please note that I will be out of the office from August 11–15. During that time, you may contact Zack Carlton with any questions or concerns. We appreciate your attention to this matter and your continued cooperation. Please do not hesitate to reach out with any questions. Thank you, Chris Monday, August 11, 2025 8:09 AM Good morning I been doing best to comply, but when a company has been part of the community since 1995 and only in the last 2 years this has become a problem, I'm starting to feel serious harassment. You Page 149 of 322 stated 30-807 section of local ordinances, but there's 132 pages in this section. Can you please send the info from that section for the building we have? I have seen 20-30 business that would fall under failure to comply, The parking lot was stripped last year, it will probably need to be redone because of fading. I talked with my neighbor (McChensey) and he was furious about a fence going in between the buildings. I got a $12,000 quote to install a fence for practically no reason. We pay our taxes and we do our best to keep outside clean, if I need to put this fence in behind the building, we will be taking down 15 full grown trees, is this something the city wants? If this is the case, I'll be removing the trees in front of our building also and convert the in front to outdoor storage and extend that fence. I stage deliveries all week and we do have items sitting outside. Do items need to be moved each day to comply with you? Elk River Winlectric has been a solid business for this city for 30 years and has given to the community thru taxes, charity events, including the Chamber, The local schools, Guardian Angels and more. Do you recommend I get an attorney, because there's only so many things that can be done without seeing trees and lawns destroyed. Let me know, maybe there can be a 5-10 year CUP permit offered for us. Thanks, Troy Tuesday, August 19, 2025 3:48 PM Hi Troy, Winlectric continues to be a valued business and a real asset to the city. Your commitment to maintaining such a well-kept landscape sets a great example, and it is appreciated. As you know, the city received a complaint over 3 ½ years ago, and since that time, we have been working with you to bring the property into compliance. The City Council even extended your deadline to align with the July 1, 2025, date you requested. To provide some clarity, the city adopted an outdoor storage ordinance designed to keep outside materials screened from view. I’ve attached Section 30-807 (one page) for your reference. Outdoor storage is allowed in a location of your choice and sized to your needs, provided the storage areas comply with Section 30-807, particularly setback requirements (30-feet from front property lines, you have front property lines on each street). You may remove or retain trees as you see fit. I also spoke with your neighbor, who shared that they do not object to a fence, they prefer it not be covered with “fabric.” I explained that the city has permitted the use of fabric under your Conditional Use Permit (CUP). Staging deliveries is acceptable for a short period (a day or two), but materials must then be placed in the screened storage area. Additionally, the ordinance addresses the expiration of CUPs and states: If the proposed work described in a conditional use permit has not been substantially completed within two years after its date of issuance, the permit shall expire and become void, except that the council may, following recommendation of the planning commission, extend the permit for an additional period Page 150 of 322 determined by the council on the receipt of a request for a permit extension prior to its expiration. A conditional use permit authorizes only the use specified in the permit and shall expire if, for any reason, the authorized use ceases for more than six months. Your first CUP technically should have expired on July 18, 2024, since the required conditions were not met and the permit was never recorded. This is why we request you apply for the amendment/extension. We understand these requirements can be cumbersome and at times costly. That said, the city’s intent is simply to ensure outdoor storage is properly screened, consistent with the original complaint. You have had approximately 3 ½ years to complete the required conditions, and we appreciate your continued cooperation. We are again extending your deadline, for the last time, and ask that all outstanding items be fully addressed no later than September 30, 2025. If the property is not brought into compliance by that date, the matter will be placed on the October 6, 2025, City Council agenda for discussion and direction regarding potential revocation of the CUP. Thank you, Chris Wednesday, September 17, 2025 10:28 AM Good morning Troy, We are touching base on your progress, can you give us an update on where things are at and what your scheduling looks like to complete the items that need to be done by September 30, 2025. We have updated the City Council on your concerns so if we do meet with them on October 6, 2025, they will have some background. Let me know if you have any questions and have a great day. Thank you, Chris Thursday, September 18, 2025 2:08 PM Good afternoon I had my city council member Cory Grupa stop by and discuss a proper way to handle this without costing the city and Elk River Winlectric. All items were removed from behind the building and cleaned up, we are in works with a contractor to level the front back corner to put the enclosed fenced area and limit the need to remove tree's and grass. Thanks, Troy Page 151 of 322 Friday, September 19, 2025 12:57 PM Good afternoon Troy, Thank you for the update. I think there is a misunderstanding about what needs to be completed. Based on your approved CUP conditions, everything needs to be removed or screened with fencing. On September 16, 2025, we documented numerous items behind the building. We also documented other properties with outdoor storage issues in the area, and the city will be working to address those as well. Our review shows that you have completed condition #3. Conditions 1, 2, 4, 5, and 6 still need to be completed. 1. The property shall comply with Section 30-807 regarding outdoor storage. 2. All outdoor storage must occur within fenced in areas. 3. All temporary outdoor storage structures shall be removed from the property by July 1, 2025. 4. All areas utilized for outdoor storage be completely screened from view from all public rights-of-way by July 1, 2025. 5. No product can be stored higher than the top of the fence. 6. The parking lot shall be striped by July 1, 2025 7. An amendment to this Conditional Use Permit will be required for any changes to the site plan dated May 17, 2025. Please share your schedule to complete the outstanding items, which must be completed by September 30, 2025. Thank you for your continued cooperation. Thank you, Chris Friday, September 19, 2025 1:05 PM That's correct. The enclosed fence will store outside items. Thanks, Troy Friday, September 19, 2025 1:10 PM Troy, Sounds good, thank you for the clarification. Thank you Page 152 of 322 Friday, September 19, 2025 1:23 PM Good afternoon. As a business owner of this city and as a property and sales tax generating business, I think more consideration should be taken in part of the city to these hard working businesses. I know there's 15-20 businesses in violation of your ordinance and I don't have any issues with any of them and I wish the city would leave them alone, if it's not causing burden to public safety. We have removed and done so much to make everything better and very close to compliance, but yet I keep getting more and more costs adding up to appease you all. I did talk with Chad (McChesney cab) and he really doesn't want the fence in back, so I replanned to make a smaller fenced in area to make you happy. I discussed this with Cory Grupa and he seemed to think it was a much better idea. I will not put a fence around our entire property, it won't work for truck deliveries. These full semi trucks with trailers need room to turn and a fence will cause issues. I have yet to be explained on what is happening with this walking trail/bike trail that seems to be making progress and going thru the front of our property. It would be a great idea to maybe have someone from the city inform the businesses in person on the plan. I have already been in discussion with the city of Big Lake in possibly moving the business and building a new structure, I feel we are a very good asset to the city of Elk River, but I'm getting very frustrated with all the updating that needs to be done. I trying to make it simple, but I feel this will never end. Thanks, Troy Friday, September 19, 2025 4:05 PM Troy, The trail is a Sherburne County project. I reached out to them, and they will contact you next week. In the meantime, here is one link to some information on the project and a second link to additional information. Have a great weekend. Thank you, Chris Page 153 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 8.1 Meeting Date November 3, 2025 Prepared By Jolene Richter, Deputy Clerk Item Description Discuss Work Session Items Reviewed by Cal Portner Tina Allard Action Requested Review work session items listed below and identify future work session topics. Background/Discussion Work sessions will be added to the end of regular meetings on the first and third Mondays as needed. At the first Council meeting of each month, staff will present a list of future work session topics for Council review. The proposed work session topics are as follows: ▪ Fire Station 1 Facility Funding (after legislative session) ▪ Public Safety Grant Expenditure update ▪ Review of zoning north of 197th Ave and the gravel mining area following Highway 169 construction ▪ Update of traffic light timing along Highway 169 ▪ City Mission and Vision Review Financial Impact N/A Mission/Policy/Goal Responsibly grow, meet changing needs (agile), and ethical, efficient, and responsible. Attachments None Page 154 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 9.1 Meeting Date November 3, 2025 Prepared By Jolene Richter, Deputy Clerk Item Description Council Liaison Updates Reviewed by Cal Portner Tina Allard Action Requested Councilmembers to provide liaison updates. Background/Discussion The Mayor and Councilmembers serve as liaisons to multiple committees and commissions. The first meeting of the month provides an opportunity for the Council to provide updates on the work of those committees and commissions. ▪ Community Event Center Commission – CM Beyer ▪ Heritage Preservation Commission – CM Calva ▪ Parks and Recreation Commission – CM Grupa ▪ Planning Commission – CM Wagner ▪ Housing and Redevelopment Authority - Mayor Dietz ▪ Utilities Commission – Mayor Dietz ▪ Region 7W – Mayor Dietz Other Committees, Commissions, etc. Financial Impact None Mission/Policy/Goal Elk River Mission Attachments None Page 155 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 11.1 Meeting Date November 3, 2025 Prepared By Joe Stremcha, Business Services Director/Assistant City Administrator Item Description Northbound/Cannabound Store Design Update Reviewed by Cal Portner Tina Allard Action Requested Staff and LSE Architects will present updated design concepts for the new construction of Northbound (Liquor) and Cannabound (Cannabis) retail stores. Background/Discussion Staff and LSE Architects introduced a preliminary design concept for the new retail stores to the Council on October 6, 2025. The store design team has continued to refine and enhance the store layout. The team includes the following members: City Reps.: ▪ Retail Operations Manager Joe Audette ▪ Northbound Manager Megan Knopik ▪ Westbound Manager Brenda Gustafson ▪ Cannabound Manager Jacqara Jackson ▪ Senior Communications Coordinator Starr Sorheim ▪ IT Manager Seth Calvin ▪ Facilities Maintenance Superintendent Gary Lore ▪ Assistant City Administrator Joe Stremcha LSE Reps.: ▪ Brain Tempas ▪ Quin Scott ▪ Brenda West ▪ Sam Ero-Phillips Terra Construction Reps.: ▪ Ben Newlin Page 156 of 322 ▪ Jake Dahlheimer ▪ Kory Reiners Financial Impact The budget for store construction is $6,000,000. Mission/Policy/Goal Meet changing needs - agile. Responsible for every dollar - good stewards. Attachments 1. 2025.11.03 - Northbound Cannabound_Floor Plan DD refinements Page 157 of 322 A4013A401A401A401142AB21345CDEFGHJK11121314154.50A4023A4022A4021A40241A4202A4203A4204A4205A4201' - 10"24' - 0"24' - 0"1' - 10"1' - 10"23' - 0"25' - 0"25' - 0"25' - 0"1' - 10"1' - 11"29' - 0"29' - 0"22' - 0"14' - 0"1' - 10"1' - 10" 24' - 0" 24' - 0" 24' - 0" 24' - 0" 24' - 0" 24' - 0" 7' - 0" 25' - 6"97' - 9"36' - 9" 4' - 10"AISLE6' - 2" 4' - 6" 41' - 0"7' - 9" 4' - 6"AISLE6' - 2" 4' - 10"1' - 9"12' - 11"10' - 0" 5' - 7" 14' - 11" 8' - 0"6' - 2"22' - 0"8' - 0"147' - 8"51' - 8"15°3' - 10"9' - 0"9' - 1" 21' - 8" 6' - 0"40' - 0"5' - 0" 5' - 0" 24' - 2" 3' - 4" 14' - 2" 3' - 4"2' - 6"2' - 6"21' - 1"2' - 6"2' - 6"2' - 6"2' - 6"2' - 6"2' - 6"2' - 6"2' - 6"2' - 6"2' - 6"2' - 6"12' - 6"2' - 6"2' - 6"2' - 6"2' - 6"2' - 6"5' - 10 13/32"4' - 4"12' - 10 19/32"10' - 0"TYP2' - 0"10' - 0"10' - 0"10' - 0"10' - 0"10' - 0"130NORTHBOUND100VESTIBULE314 SF101WAITING102CANNABOUND128BEVERAGE COOLERS124STORAGE120MEP116OFFICE112ADMIN110BREAK ROOM109TOILET108ROOF ACCESS118HALL101A128A125A114110A110B125B100A 100B100F 100E100C 100D112124A128B4' - 0"ROW 1ROW 2ROW 3ROW 4ROW 5ROW 1ROW 24' - 0"15' - 2" 2' - 6" 5' - 0" 11' - 6" 5' - 0" 2' - 6" 5' - 0"11' - 6" 5' - 0" 2' - 6" 5' - 0" 11' - 6" 5' - 0" 2' - 6"5' - 0" 43' - 7"ROW 3ROW 45' - 0" 5' - 0"136 SF114OFFICE15' - 5"125IT11' - 2"10' - 0"18' - 6"10' - 0"103STORAGE105VESTIBULE106OFFICE104VAULT10' - 0"3' - 6"119JANITOR9' - 11"123TOILET121TOILET5' - 6"8' - 0"8' - 0"7' - 0"CLEAR8' - 0"13.512.5MN2' - 6"3' - 4"5' - 0"6' - 3"2' - 6"34' - 2"2' - 6"6' - 3"6' - 7"9' - 5"101' - 8"DISPLAY SYSTEMS BY OWNERDISPLAY SYSTEMS BY OWNER4' - 2"5' - 0"3' - 4"AISLE3' - 6" 4' - 0"AISLE3' - 0" 4' - 0"AISLE3' - 0" 4' - 0"AISLE3' - 0" 4' - 0"AISLE4' - 6"AISLE4' - 0"73' - 0"AISLE4' - 0"DEEP INVENTORY STORAGE SYSTEMS BY OWNERPALLET4'X4'PALLET4'X4'STANDARDCOMPACTOR80"X50"LOADING80"X50"PRE-MANUFACTURED COOLER DISPLAY SYSTEMS BY OWNERDEEP IN COOLER STORAGE SYSTEMS BY OWNERPRE-MANUFACTURED COOLER DISPLAY SYSTEMS BY OWNERDEEP IN COOLER STORAGE SYSTEMS BY OWNER101B103A103B108109106104116119121123125120Copyright © LSE Architects, Inc.ProjectDateDrawn byChecked byDrawing NumberNo.DateRevision DescriptionKey PlanThese drawings including all design, details, specifications and information, are the sole copyright of LSE Architects, Inc. and are for use on this specific project and shall not be used on any other work without agreement and written permission of LSE Architects, Inc. © 11/3/2025 1:25:30 PM Autodesk Docs://25.1018.01 Northbound Cannabound/25.1018.01 Northbound Cannabound_AR25.rvt25.1018.01October 22nd, 2025AuthorCheckerA201LEVEL 1 FLOORPLANNorthboundCannabound19420 181st Dr NW,Elk River, MN 55330A2011/8" = 1'-0"1LEVEL 1Page 158 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 11.2 Meeting Date November 3, 2025 Prepared By Mark Dickinson, Fire Chief Item Description Fire Station No. 1 Space Needs Update Reviewed by Mark Dickinson Cal Portner Tina Allard Action Requested Receive information and provide staff direction. Background/Discussion Review the space needs of the new Fire Station No. 1 and explain the benefits to the department and community. Financial Impact N/A Mission/Policy/Goal Mission statement Attachments 1. Council presentation november 25 2. Fire_Station_1_Council_Handout Page 159 of 322 Elk River Fire Station No. 1 Space needs November 3, 2025 Page 160 of 322 Fire Station No. 1 Council Update •What was the process to determine spaces & Square footage? •What is the proposed Square Footage comparison with other cities. •Price difference if we did not finish spaces and what the future cost would be compared to savings. •What is the cost of the Ambulance area (estimated). •Show improved response with the proposed facility & spaces, including future benefits to the community. •Tax impact. Page 161 of 322 What was the process to determine spaces & Square footage? Page 162 of 322 What is the proposed Square Footage comparison with other cities. Page 163 of 322 Fire Station No. 1 Current and Proposed Spaces •6 Fire bays •2 Ambulance bays •Classroom/Training Room with Kitchenette •Work room for Firefighters •Fire Relief Office • Dayroom •1 office for EMS Coordinator •EMS supplies room •EMS Narcotics room •2 rooms for full-time paramedics •3 bathrooms •Workshop •Storage •Kitchen •5 Fire bays •3 Ambulance bays •Classroom/Training Room with Kitchenette •Work room for Firefighters •Fire Relief Office •Dayroom •1 office for EMS Coordinator •EMS Supplies Room •EMS Narcotics Room •8 rooms for full-time paramedics and firefighters •4 bathrooms •Workshop •Storage •Kitchen Page 164 of 322 Fire Station No. 1 Proposed Additional Spaces •Decontamination spaces 794 Square ft. •Firefighter Physical Training 732 Square ft. •Fire Administration Offices 691 Square ft. •2 bedrooms with lockers and bath 463 Square ft.Times four Page 165 of 322 Price difference if we did not finish spaces and what the future cost would be compared to savings. Savings and projected costs in future Office Space Savings Cost in Future Police Office $19,000 5% - 6% each year Relief Assoc.$14,000 Fire Offices $15,000 each Classroom $630,000 - $750,000 1 suite: 2 bedrooms, 1 bathroom, lockers $51,000 - $61,000 Page 166 of 322 What is the cost of the Ambulance area (estimated). •Breakout Pricing: $2 million •1st floor I.Office/Admin II.Supply Storage III.Narcotics Storage IV.Ambulance Bay •2nd floor $1 million •Factor 2100 SF used by EMS •Not including Mechanical/Storage Page 167 of 322 Community Education Page 168 of 322 Training EMS/Fire •Emergency Medical Training every month •Fire classroom training •Training at multiple stations simultaneously •Officer meeting/training Page 169 of 322 Administrative Offices •Current offices were part of re-model at station 2 (never completed) •On average, 15 random visits from the community a week at station 1 •Admin staff respond to emergencies on Apparatus (faster response from new station) Page 170 of 322 Firefighter Specific Physical Training Page 171 of 322 Page 172 of 322 Occupational Safety and Health Administration, 1910.156(b)(2) Personnel. The employer shall assure that employees who are expected to do interior structural fire fighting are physically capable of performing duties which may be assigned to them during emergencies. Page 173 of 322 On-Site Physical Training •Improved Fireground Performance •Improve Overall Health •Manage Stress •Boost Immunity •Enhance Resiliency •Visibility for Safety •Firefighting is one of the most physically demanding jobs. It involves lifting, carrying, pulling, and dragging heavy items and people, often in high-stress, hazardous environments. Page 174 of 322 Community Benefits of Police Space •A central location allows officers to respond more quickly to incidents across the city. •Increases visibility of law enforcement presence in key areas, deterring crime and improving community confidence. •A location where SROs can privately meet with parents and students who are victims of crimes •Daily interaction between police, fire, and EMS fosters stronger working relationships. •Residents have convenient access to both police and fire services at a single, easily reachable location. •A satellite office provides a safe, approachable environment for citizens to report concerns, obtain information, or connect with officers. •Officers in the fire station can conduct reports, meet with the public, or take breaks without returning to our police department building, keeping them in the field longer.Page 175 of 322 Fire Station Space E1 L1 R1T1 U1 IST G1 G4DO E2 T2 Fire Prev G2 U T V U2 E3E4 G3 T3 Vent C1 C2 C3 C4 DO Burn Trailer Burn Trailer Page 176 of 322 Apparatus Bays Page 177 of 322 Construction Cost Update 2013: 7% +/- Increase 2014: 21% +/- Increase 2015: 3% +/- Increase 2016: 18% +/- Increase 2017: 22% +/- Increase 2018: 20% +/- Increase 2019: 8% +/- Increase 2020: 14% +/- Increase 2021: 21% +/- Increase 2022: 20% +/- Increase 2023: 18% +/- Increase 2024: 11% +/- Increase 2025: 8% Page 178 of 322 Cost Estimate •Construction Cost = $18,798,552.63 •*Construction cost does not include soft costs (testing & inspections, FF&E) •Property Tax Levy increase for Station No. 1 is 8.3% (based on $20 million) Page 179 of 322 Legacy Fire vs Modern Fire Page 180 of 322 Legacy Fire vs Modern Fire Page 181 of 322 Statistical Analysis •HTTP://24.179.222.235:3000 Page 182 of 322 Fire Station No. 1 Space Needs City Council Quick Reference Guide Project Overview Fire Station No. 1 will be rebuilt to address critical operational deficiencies and improve emergency response capabilities. The facility will serve as a modern, multi-purpose emergency services hub with enhanced training, administrative, and response capabilities. Key Financial Information • Construction Cost: $18,798,552.63 (does not include soft costs) • Property Tax Levy Impact: 8.3% increase (based on $20 million total) • EMS Area Cost: $3 million total ($2M first floor, $1M second floor) Facility Space Comparison Current Station 1 Proposed Station 1 • 6 Fire bays • 2 Ambulance bays • 2 Paramedic rooms • 3 Bathrooms • Limited training space • No decontamination area • No physical training area • 5 Fire bays • 3 Ambulance bays • 8 Paramedic/Firefighter rooms • 4 Bathrooms • Classroom with kitchenette • Decontamination space (794 SF) • Physical training area (732 SF) • Fire admin offices (691 SF) Key Community Benefits Improved Emergency Response • Enhanced ambulance capacity (3 bays vs. 2) for growing EMS demand • Central location enables faster response times across the city • Administrative staff on-site can respond immediately to emergencies Health and Safety Improvements • Decontamination spaces to reduce cancer-causing carcinogen exposure • On-site physical training meets OSHA requirements for firefighter fitness • Modern facilities improve firefighter health, reduce injuries, and lower long-term costs Training and Education • Enhanced classroom space for monthly EMS and fire training • Ability to train multiple stations simultaneously • Community fire safety education programs Police Partnership • Satellite office for increased police visibility and faster response • Private meeting space for School Resource Officers with parents and students • Enhanced coordination between police, fire, and EMS Page 183 of 322 Operational Efficiency • Station 1 receives approximately 15 public visits per week • Consolidates administrative functions with improved public access • Houses critical apparatus including Engine 1, Ladder 1, Rescue 1, Tower 1, and more Why Build Now? • Construction costs have risen dramatically: 7-22% annual increases from 2013-2023 • Delayed construction costs more: Waiting means higher future costs • Unfinished spaces are costly to complete later: Better to finish during construction • Current station is inadequate: Cannot support modern firefighting and EMS demands Key Talking Points for Citizens • This facility is essential for maintaining emergency response times as our city grows • The design meets modern safety standards and protects firefighter health • Building now saves money compared to waiting for future construction • Station 1's central location provides critical coverage for the entire community • The facility will serve multiple purposes: fire, EMS, training, administration, and police • This investment protects lives, property, and our community's future Page 184 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 11.3 Meeting Date November 3, 2025 Prepared By Lindsay Brandner, Senior Administrative Assistant Item Description Community Service Officer Tuition Reimbursement Reviewed by David Kuhnly Cal Portner Tina Allard Action Requested Discuss the implementation of tuition reimbursement for part-time Community Service Officers. Background/Discussion The police department is proposing to develop a tuition reimbursement program for part-time community service officers (CSO) using the city's current tuition reimbursement policy as a guide. Tuition reimbursement is a common recruitment practice in retaining CSOs to become future police officers. This tuition reimbursement program is only available to part-time CSOs who are committed to becoming police officers for the Elk River Police Department and will not receive reimbursement until they have completed schooling and the police officer hiring process. Financial Impact No financial impact in the 2025 budget. The department does not anticipate any budget impact based on current staffing in 2026. Funding will be requested during the 2027 budget process. Mission/Policy/Goal The City of Elk River Misssion and Vision Statements. Attachments 1. Personnel Policy - Employee Development and Tuition Reimbursement 2. 2025 CSO I Employment Agreement Page 185 of 322 13065 Orono Parkway Elk River, MN 55330 Phone: 763.635.1000 www.ElkRiverMN.gov Employee Development / Tuition Reimbursement The below text is pulled from the City of Elk River Personnel Policy section titled “Employee Development/ Tuition Reimbursement.” This policy is already in existence and was used as a guide to develop the CSO I reimbursement proposal. The city encourages and recommends lifelong learning and offers reimbursement to regular, full-time employees for up to 75% of the tuition paid by the employee, excluding scholarships and grants up to a maximum reimbursement of $3,000 per year (based on the budget year the expense is applied) for accredited college or other instruction directly related to the employee’s position with the city. To be eligible for reimbursement the following requirements must be met: 1. Prior to registration, a completed Tuition Reimbursement Request Form must be signed and on file with Human Resources; and 2. The instruction must be to obtain a degree, certification, or license and apply directly to the employee’s position or be required to complete an associate, bachelor’s, master’s, or doctorate degree in the field in which the employee works; and 3. The employee must successfully complete the instruction. If letter grades are assigned, the minimum grade required for reimbursement is a C; and 4. The reimbursement must be submitted within 60 days of instruction completion. Books, activity fees, technology fees, and other non-tuition charges do not qualify for reimbursement. All instruction must be taken on employee time and time spent on instruction is not considered hours worked. If any portion of the employee’s class/development activity is conducted during regular work hours, the employee must take vacation or compensatory leave, an unpaid leave of absence, if approved, or arrange for flexible scheduling, if approved by the department director. Courses taken to maintain licensure, affiliation, certification, or credentialing as well as work-related seminars and training are paid for with City Council approved budgeted training funds. Page 186 of 322 13065 Orono Parkway Elk River, MN 55330 Phone: 763.635.1000 www.ElkRiverMN.gov Employment Agreement Part-time Community Service Officer I The part-time Community Service Officer I (CSO I) position is classified as a temporary, part- time position and is not eligible for city health insurance or other benefits not provided by state law. This position does receive paid time off benefits as a regularly scheduled part-time employee. The CSO I position is a non-union position intended to provide police department experience and mentorship while the employee is actively and successfully enrolled in an eligible degree program culminating in Minnesota Police Officer Standards and Testing (POST) licensure as a peace officer. The City of Elk River intends to assist and encourage the progression of eligible employees through tuition reimbursement under the following conditions. 1. Employment is for a defined, limited period as indicated: a. The CSO I employment period is limited to three (3) years. b. An extension may be considered at the chief’s discretion. Consideration will be based on unforeseen or uncontrollable situations for an employee performing at or above department and city expectations. c. The employee is responsible for communicating schedule conflicts and degree program requirements with their supervisor. d. The employee service as a CSO I is expected to be actively working toward a degree in law enforcement and POST Board police officer eligibility. e. Continued employment requires that the employee remain in good standing. Good standing is defined as: i. Meets performance standards. ii. Follows department and city policies. iii. Maintains good attendance. iv. Exhibits professional conduct. v. Has no disciplinary issues. Page 187 of 322 2. CSO I Tuition Reimbursement a. CSO I is eligible for tuition reimbursement up to $6,000.00 not to exceed 75% of the total cost of tuition, excluding scholarships and grants. Books, activity fees, technology fees, and other non-tuition charges do not qualify for reimbursement. b. Tuition reimbursement is provided in two payments up to $3,000.00 under the following conditions: i. CSO I becomes a sworn police officer with the City of Elk River. ii. Employment is concurrent from CSO I employment to police officer. iii. The employee shall be employed as CSO I for a minimum of 12 months. iv. Successful completion of the degree program within the conditions listed above. v. The first payment will be paid when the employee has passed the POST licensing exam and has a start date to become a City of Elk River police officer. vi. The second payment will be paid after successful completion of the probationary period as a licensed police officer with the City of Elk River. vii. Conditions of this agreement precede labor union eligibility and therefore are not grievable under any circumstances. I have read and agree to the terms and conditions of employment as stated above. I understand that if these conditions are not met, it will result in termination of my employment with the City of Elk River. Printed Name Signature Date Page 188 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 11.4 Meeting Date November 3, 2025 Prepared By Joe Stremcha, Business Services Director/Assistant City Administrator Item Description Cannabound Branding Reviewed by Starr Sorheim Cal Portner Tina Allard Action Requested Staff will provide an overview of the Cannabound branding and address Council feedback. Background/Discussion The city hemp-based THC brand was introduced to our liquor operation in March 2024. This brand served as a guide for the Cannabound brand development to create synergy between the city's cannabis and liquor operations and was included in the Cannabis Business Plan approved February 3, 2025. Financial Impact A strong brand provides the benefits of increased customer recognition, loyalty, a competitive advantage, the ability to command premium pricing, and a solid connection with both employees and partners. Mission/Policy/Goal Meet changing needs - agile. Attachments 1. Cannabis Business Plan Marketing Overview 2. 2025 Cannabound - Brand 3. Cannabis Branding Appeal for Younger Adults 4. NFD_CannabisConsumersinAmerica2023_Part1 5. NFD_CannabisConsumersinAmerica2023_Part3_Final 6. Cannabound Branding Presentation November 2025 7. Councilmemeber Wagner's Leaf Design Page 189 of 322 Cannabis Marketing Overview Identify demographics and target audiences Identify competitors for geofencing marketing Build on tourism or individuals who do not have a cannabis retailer near them Define unique products, sustainability, local suppliers, and other individual elements to add to the brand Establish the official brand while taking the current THC brand and Elk River Liquor Store brands into consideration Obtain domain and develop website plan Research current SEO for cannabis retailers in Minnesota and set our SEO ranking goal Incorporate email marketing in our current system Create social media profile generation plan and content management plan Utilize mobile ads and geofencing M a r k e t R e s e a r c h a n d A n a l y s i s B r a n d i n g a n d P o s i t i o n i n g D i g i t a l M a r k e t i n g S t r a t e g y Work with staff to plan and market grand opening Work with staff on campus and in-store signage and displays Work with staff on a possible loyalty program Work with staff on educational events, series, and tools POV walkthroughs of what to expect, product information, and the experience I n -S t o r e E x p e r i e n c e Discuss with staff attending local community events and sponsorships Incorporate billboards, newspaper, guerilla marketing, direct mailers, and other avenues into the general marketing plan L o c a l A d v e r t i s i n g Page 190 of 322 Press release announcing the store opening to local media outlets Work with community voices on reviews and influencer marketing P u b l i c R e l a t i o n s Work with staff on any customer deals, loyalty points, coupons, special holidays (4/20) and more opportunities P r o m o t i o n s a n d D i s c o u n t s Stay up to date with local laws, regulations, and online laws for cannabis advertising (Meta, Google, YouTube, etc.) C o m p l i a n c e C u r r e n t H e m p -D e r i v e d T H C B r a n d Make decisions on these additions with the current status of the communications staff and their workload S t a f f i n g Page 191 of 322 Page 192 of 322 Strategic Branding Guide for Next-Generation Cannabis Consumers (Ages 21–36) I. Executive Summary: The Imperative for Brand Modernization 1.1. Strategic Mandate: Aligning Brand Identity with Next-Generation Consumer Values The analysis of modern cannabis consumer demographics reveals a fundamental disconnect between the prevalent legacy brand aesthetic and the sophisticated purchasing behaviors of the target 21–36 age cohort, comprising Gen Z and Millennials. The existing brand identity, characterized by vibrant or "colorful" designs, is identified as a strategic liability. This aesthetic—often associated with "old-school 'pothead' symbols like green leaves, tie-dye colors, or stoner jokes" 1—is now perceived as dated, untrustworthy, and unprofessional. To capture market share among young professionals and parents who view cannabis functionally, a strategic pivot from the "Stoner Cliché" to "Sophisticated Wellness" is required. This shift is critical not only for attracting the target demographic but also for mitigating the unintended alienation of the 50+ segment. While the 21–36 age group seeks functional control and professional discretion, older generations, such as the Silent Generation, demonstrate a strong preference for medical utility, spending 40% of their money on non-inhaled products like tinctures and capsules.2 For this older, wellness-focused segment, overly colorful packaging clashes with the perceived medical efficacy and trust required for relief-based products.3 Therefore, a unified move toward minimalist, high-trust packaging simultaneously addresses the demands of both the next-generation consumer and the Page 193 of 322 medically motivated senior population. 1.2. Key Findings Overview Data collected on the 21–36 consumer profile mandates a complete realignment of product presentation and messaging: ● Product Preference: Younger consumers prioritize modern, convenient, and functional formats. This cohort shows strong adoption of Vapor Pens (20% for Gen Z, 21% for Millennials) and packaged convenience items like Pre-rolls, with Millennials dominating 45% of the pre-roll market.2 Edibles and beverages are also preferred formats, valued for controlled, low-dose delivery.3 The packaging architecture must, therefore, reflect technological sophistication and product consistency rather than abstract recreational themes. ● Aesthetic Shift: Brand appeal in this market is driven by sophisticated, understated design. The preferred aesthetic is minimalist, utilizing matte textures, elegant typography, and strategic metallic or holographic accents.4 This approach achieves an "air of sophistication" that contrasts sharply with the "overly saturated packaging designs" common in budget segments.6 ● Compliance & Sustainability: The move toward sophistication is intrinsically linked to regulatory safety and value alignment. Regulatory bodies strictly prohibit "youth-appealing" features, which often include bright colors and designs mimicking candy.8 By adopting a minimalist, neutral, and premium aesthetic, the brand minimizes compliance risk. Furthermore, sustainability is a core value for this demographic, with over 72% of consumers preferring eco-friendly packaging.9 Integrating sustainable materials and communicating these values is now a fundamental requirement for building brand loyalty. II. Demographic Segmentation and Consumption Profile (Ages 21–36) This consumer group, encompassing Gen Z and Millennials, represents the primary growth engine of the legal cannabis market, demonstrating purchasing habits and motivations significantly different from previous generations. Page 194 of 322 2.1. Defining the Target Consumer: Gen Z and Millennials as Functional Users Gen Z (currently ages 21–27, born 1997–2012) represents the fastest-growing cohort in legal cannabis sales, integrating cannabis into their lives as a normalized cultural element.3 They have come of age in a world where legal dispensaries and CBD products are commonplace, fostering an inherent acceptance of the plant.10 For many in this age bracket, cannabis is viewed as a safer, cleaner, and more manageable substitute for alcohol; a 2024 survey showed that among 18–24-year-olds, 69% prefer cannabis over alcohol.3 Millennials (currently ages 28–36 within the target range, and up to 43 overall) dominate established, convenient consumption segments. They account for 45% of the $3 billion pre-roll market, a category whose sales revenue has increased by over 450% in the last five years.5 This dominance highlights their role as consumers who prioritize speed and simplicity. Millennials are positioned in the "sweet spot" where they typically possess greater disposable income and more freedom than younger consumers, coupled with having grown up with cannabis normalization, leading to reshaping consumer spending trends across the industry.5 2.2. Product Format Preferences and the Shift from Traditional Flower The 21–36 cohort's purchasing behavior is heavily weighted toward modern, packaged formats that prioritize discretion, portability, and predictable effects. ● Vapor Pens: This format is highly preferred across the cohort, with Gen Z showing a 20% preference rate and Millennials at 21%.2 Vapor Pens align with the desires of "convenience seekers" and reflect a sleek, technology-forward appearance.4 Their popularity is linked to the broader cultural acceptance of vaping as a consumption method. ● Pre-Rolls: The leading position of Millennials in pre-roll consumption 5 underscores the demand for a contained, easy, and shareable consumption method. This format removes the preparation ritual associated with flower, catering to consumers who value efficiency. ● Edibles & Beverages: Both Gen Z and Millennials seek out edibles, particularly those that "actually taste good" and low-dose beverages that avoid mimicking "frat house energy drinks".3 This preference is fundamentally driven by the desire for control and clarity, favoring microdosing over chasing the highest possible THC content.3 ● Flower Preference: Traditional Flower, while still a prominent category across all Page 195 of 322 demographics, sees a comparatively lower preference rate among younger generations (42% for both Gen Z and Millennials) than among Baby Boomers (50%).2 This structural preference for value-added products (vapes, edibles, pre-rolls) over raw flower dictates that packaging must elevate the perceived value and function of the packaged product. 2.3. The Age-Based Consumption Dichotomy: Justifying the Pivot The current brand aesthetic, likely designed to appeal broadly or to older, traditional consumers, fails precisely because it ignores the functional needs of the 21–36 demographic. The dichotomy in consumption habits provides the strongest justification for the branding pivot: The 50+ segment is split between Baby Boomers who maintain a high preference for Flower and the Silent Generation, who exhibit a general aversion to inhaled products, directing 40% of their spending toward non-inhaled, wellness-adjacent formats like Tinctures and Capsules.2 These products require packaging that inherently communicates trust, medical utility, and straightforward guidance.4 In contrast, the 21–36 group demands convenience, predictability, and a reflection of a modern, normalized lifestyle. The high prevalence of sophisticated, pre-packaged, and discreet formats in their purchasing repertoire necessitates packaging that conveys high-end technology, precise function, and clinical reliability. This structural shift in product preference confirms that branding associated with abstract, recreational color schemes and unsophisticated design—which may appeal to traditionalists seeking raw flower—actively works against the modern consumer’s desire for control and high-quality packaged goods. The following comparative summary highlights the differing strategic requirements for each consumer group: Comparative Product Preference by Age Group (2023 Data) Age Group Primary Motivation/Focus Key Product Preferences Branding Implication 21–27 (Gen Z) Novelty, Social Appeal, Anxiety Relief, Alcohol Substitution Vapor Pens (20%), Edibles, Infused Beverages Technology, Clean Aesthetics, Novelty Accents, Anti-Cringe Lifestyle Page 196 of 322 28–36 (Millennials) Practical Wellness, Consistency, Function, Stress/Burnout Relief Vapor Pens (21%), Pre-rolls (45% market share), Low-Dose Edibles, Topicals Consistency, Clarity, Function-First Design, Discreet Professionalism 50+ (Boomers/Silent Gen) Pain Reduction, Traditional Habit, Non-Inhalation, Reliability Flower (Boomers), Edibles, Tinctures, Capsules Trust, Medical/Wellness Association, Straightforward Guidance, Clarity III. Psychological Drivers: The Value Proposition for Modern Consumers Effective branding for the 21–36 demographic must be rooted in a deep understanding of their core psychological drivers, which are largely centered on function, anxiety relief, and social authenticity rather than traditional recreational pursuit. 3.1. Millennial Psychology: Function, Fatigue, and Practical Wellness Millennials are driven by pragmatism. Research shows that this generation is primarily motivated by "getting through than getting high," seeking relief from pervasive life pressures, including professional responsibilities, parenting, economic instability, and chronic fatigue.3 They actively prioritize control, consistency, and clarity in their product choices and are "not chasing the highest THC punch".3 The brand message must therefore be grounded in utility. The products they seek—tinctures, topicals, and low-dose edibles—are for managing specific symptoms such as chronic pain, anxiety, or burnout.3 This requires adopting a pragmatic and non-exaggerated tone. Packaging must communicate reliability, positioning cannabis as a standard, beneficial component of a responsible adult's wellness regimen, rather than a novelty item. When dosing and effect predictability are the primary value drivers, branding must prioritize clear, concise, Page 197 of 322 and accessible information. 3.2. Gen Z Psychology: Anxiety, Authenticity, and Cultural Normalization For Gen Z, cannabis serves as a "pressure valve" against existential tension and generalized anxiety.3 Their motivations are distinct: they seek "novelty, social appeal, and something to take the edge off".3 Crucially, this generation values transparency and views product choice as an extension of their personal and ethical beliefs. They favor brands that align with sustainability values and demonstrate ethical practices and commitment to social equity.10 This focus on authenticity extends directly to brand perception. Since this cohort is highly connected via social media, the physical product and its packaging must be designed for elegant digital presentation. The brand experience must integrate seamlessly into a "curated reality," where a "stoned selfie is chill," while a display of low-quality, unsophisticated goods is considered "the epitome of cringe".3 This mandates sophisticated product design and high-quality materials, ensuring the brand image translates effectively from physical product to digital platform.11 3.3. Rejecting the Cliche: The Demand for Authentic, Non-Gimmicky Brands The greatest liability of the "colorful" legacy branding is its inherent link to outdated "stoner tropes".1 As the industry matures, consumers are demanding authentic, non-gimmicky products they can trust. When brands adhere to clichés, they risk being seen as dated, untrustworthy, or unserious, missing the opportunity to connect with this expanding audience of professionals and parents.1 For consumers seeking functional benefits, the inclusion of appropriate, substantiated wellness claims on packaging is a powerful attractor. Research indicates that specific health claims, such as sleep aid or pain relief, significantly increase product appeal, particularly among past-year nonusers.12 Since Millennials are actively seeking relief from chronic fatigue and pain 3, leveraging these functional claims—paired with an aesthetic that communicates trust and reliability—is critical for attracting new or lapsed consumers who are expanding the market beyond traditional users. The brand’s purpose must shape everything, moving beyond Page 198 of 322 a simple recreational "vibe" to reflect a comprehensive adult lifestyle.1 IV. Visual Branding Architecture: The Minimalist and Premium Mandate The transition to a sophisticated, future-proofed brand requires adherence to a strict visual architecture defined by minimalist design principles, strategic color restraint, and high-end textural finishes. 4.1. The New Aesthetic: Industrial Sophistication and Minimalist Control The packaging aesthetic must migrate from bright, abstract, or cartoonish designs to a clean, functional style that mirrors high-end consumer packaged goods (CPG), luxury cosmetics, or modern pharmaceuticals (e.g., Dosist, Caliva).13 This approach, often referred to as "minimalist branding," is highly effective for appealing to young professionals by projecting an "air of sophistication" and establishing a distinct identity against the visual noise of "overly saturated packaging designs" common in the competitive marketplace.6 Successful brand prototypes, such as Enlightened, achieve this effect by utilizing natural materiality, soft lighting, and intuitive design that instills a sense of calm and inclusivity.15 Minimalism works because it aligns the packaging with the target consumer's desire for control and clarity, prioritizing essential information and a high-end look that is suitable for discretion and public display. 4.2. Color Theory for the Target Market: Strategic Restraint A radical overhaul of the color palette is non-negotiable, driven equally by aesthetic appeal and compliance imperatives. ● Mandate for Avoidance: Neon colors, bright greens that may turn yellowish, and overly saturated palettes must be eliminated. These are visually jarring, potentially Page 199 of 322 non-compliant with state laws mandating opaque, single-color packaging 16, and critically, they elevate the regulatory risk of being perceived as "youth-appealing".8 ● Recommended Core Palette: The foundation must be built on strategic restraint. Matte black is paramount, as it consistently maintains a premium appearance and creates the ideal high-contrast backdrop for metallic or holographic elements.4 Deep purples are also effective, retaining richness and signaling quality.4 For wellness and topical lines, white or light blue packaging signals medical association, purity, and trust.4 ● Metallic Finishes: Gold, copper, and bronze should be used as strategic accents. These metallic finishes catch light appealingly without creating harsh glare, instantly elevating the perceived value and sophistication of the product.4 4.3. High-End Finishes and Textural Appeal The tactile experience of the packaging is a primary differentiator for the 21–36 demographic. The expectation is that the packaging should "feel as premium" as the product inside, moving away from "cheap plastic jars".19 ● Matte Lamination and Soft-Touch: These finishes provide a luxury, tactile appeal that elevates the consumer experience and contributes to a professional, high-end feel.19 ● Holographic and Foil Stamping: The strategic pairing of a sophisticated matte base with metallic foil stamping or holographic elements is highly effective for this market segment. Matte black provides the professional foundation, while holographic elements provide the necessary "wow-factor" and visual energy that appeals directly to Gen Z consumers seeking novelty and high visibility on social platforms.7 This synergy balances sophisticated restraint with youthful, modern visual dynamics. Holographic finishes, by refracting light, generate instant shelf appeal and elevate the perceived value without requiring complex, expensive rigid packaging.7 4.4. Typography and Illustration: Clarity and Brand Identity Typography serves a critical functional purpose in the new architecture: clarity and rapid comprehension of product information and dosing. ● Typography: Fonts must be clean, highly legible, and functional. Utilizing contemporary approaches such as custom, variable, or hybrid font systems allows the brand to develop a unique personality while ensuring flawless readability across both physical packaging Page 200 of 322 and digital platforms.20 Typefaces should be chosen to emphasize functional benefits (e.g., Sleep, Focus, Relief), a strategy proven effective by brands like Dosist.13 ● Illustration: If illustrations are used, they should retain a minimalist, line-drawn style.21 Brands may experiment with subtle, non-cartoonish on-trend techniques, such as "noisy gradients" or 1980s-influenced color schemes, to provide a modern visual edge that appeals to Gen Z and Millennials without compromising the overall sophisticated aesthetic.21 The following toolkit outlines the mandatory aesthetic parameters for the rebranding initiative: Aesthetic Branding Toolkit for the 21-36 Segment Design Element Recommended Approach Justification for 21-36 Appeal Compliance/De-Ri sking Benefit Primary Color Base Matte Black, Charcoal, Deep Navy, White/Neutrals Sophistication, Modernity, Premium Contrast 4 Avoids "youth-appealing" vibrant/neon colors 8 Accent Finishes Holographic/Foil Stamping (Gold, Copper, Bronze) High-End Look, Visual Pop, Luxury Feel 4 Elevates perception away from low-cost, budget items Texture/Material Soft-Touch Matte Laminate, Rigid Boxes, Sustainable Materials Tactile Premium Experience, Perceived Value 18 Aligns with Millennial/Gen Z values (e.g., dislike of "cheap plastic jars") 9 Messaging Clean, legible typography; Focus on functional benefit (Sleep, Focus, Relief) Clarity, Consistency, Function over "High," Practical Wellness 3 Supports required warning recall and appropriate health claims 12 V. Strategic Implementation and Future-Proofing Page 201 of 322 Successful brand implementation for the modern cannabis consumer requires integration of technological transparency and adherence to sustainability standards, alongside the refined visual architecture. 5.1. Sustainability as a Core Brand Value Proposition Sustainability is no longer a peripheral consideration but a core expectation that drives purchasing decisions among Gen Z and Millennials.3 Over 72% of consumers express a preference for eco-friendly packaging.9 A sophisticated brand identity must actively demonstrate corporate responsibility, linking product choice directly to personal values. This mandates the immediate adoption of eco-friendly packaging solutions. Actionable steps include utilizing biodegradable materials such as hemp-based plastics, recycled paper, and compostable pouches (following successful industry examples like Wyld edibles).9 Furthermore, the packaging and labeling must overtly communicate this commitment, using clear declarations such as "raw," "pure," or "sustainable" to appeal directly to the eco-conscious segment.18 5.2. Technological Transparency (Smart Packaging) In a market where consumers prioritize clarity and control, packaging must be transformed into a trust verification tool. The integration of smart packaging features, specifically QR codes and Near Field Communication (NFC) tags, is becoming an industry standard.9 These technological features fulfill the demand for transparency by providing instant, direct access to critical, verifiable information. A simple scan can lead the consumer to Certificates of Analysis (COAs), precise dosage instructions, ingredient lists, and detailed brand storytelling.9 This high level of supply chain visibility, authenticity, and access to verifiable data is crucial for securing brand loyalty among Millennials and Gen Z, who expect transparency from the companies they patronize. 5.3. Navigating Regulatory Constraints: De-Risking the Brand Page 202 of 322 The adoption of a highly controlled, sophisticated, and minimalist aesthetic serves as a crucial de-risking strategy against complex and often state-specific regulatory burdens.23 The regulatory environment is intensely focused on preventing packaging that appeals to minors.8 The current "colorful" branding is highly susceptible to regulatory action under rules prohibiting "youth-appealing" features.17 Regulatory prohibitions explicitly forbid: 1. Using designs, colors, shapes, or branding that imitate candy, popular children's/adolescent cartoons, or toys.8 2. Including any likeness or picture of an edible product on its packaging.8 3. Using neon colors, as they can create harsh reflections that reduce text readability.4 4. Violating single-color mandates, as seen in some state laws requiring packaging to be opaque, light-resistant, and of a single color, except for logos.16 By strictly adhering to the recommended high-contrast, limited color palette, and prioritizing clean typography over illustrative flair, the brand signals maturity and responsibility to both regulators and consumers. This proactive approach ensures compliance across diverse legal markets, which is a major competitive differentiator in the industry.23 VI. Conclusions and Recommendations The objective analysis of the 21–36 demographic confirms that the existing brand, characterized by an overly colorful aesthetic, fundamentally misrepresents the product’s intended use and alienates the target consumer base. The shift in consumption motivation from recreational pursuit to functional wellness, convenience, and anxiety management demands a corresponding shift in brand identity. 6.1. Strategic Brand Alignment The 21–36 demographic demands sophistication, clarity, and authenticity. They view cannabis as a practical tool for daily support, not a rebellious symbol. The recommended branding architecture—Minimalist Sophistication—achieves a dual strategic advantage: 1. Functional Wellness: The clean aesthetic and clear typography provide the functional clarity and consistency demanded by Millennials and the 50+ cohort seeking relief and Page 203 of 322 reliable dosing. 2. Sophisticated Social Appeal: The use of matte textures, premium materials, and strategic holographic accents provides the high-design "anti-cringe" appeal required by Gen Z for visual representation and social currency. 6.2. Actionable Recommendations The rebranding initiative should proceed with an emphasis on the highest-growth categories to maximize initial impact and return on investment: 1. Immediate Design Mandate: Implement the minimalist design toolkit (Section IV), strictly enforcing the use of matte black/neutral bases, metallic/holographic accents, and functional typography. Eliminate all designs that utilize overly bright or cartoonish color schemes immediately. 2. Prioritized Phased Rollout: Begin the packaging overhaul with the highest-growth formats favored by the target cohort: Vapor Pens, Pre-rolls, and functional Edibles. This focuses immediate resources where the demographic alignment is strongest. 3. Technological Integration: Mandate the inclusion of QR codes on all new packaging to provide instant access to COAs and product guidance, fulfilling the consumer expectation for transparency and control. 4. Sustainability Commitment: Publicly commit to and initiate the transition to sustainable packaging materials (e.g., compostable, biodegradable) and use "sustainable" labeling to align with the core values of the 21–36 consumer. Works cited 1. You're Branding Cannabis Wrong. Here's How to Fix It., accessed October 28, 2025, https://cannatechtoday.com/youre-branding-cannabis-wrong-heres-how-to-fix-i t/ 2. The demographics of cannabis consumers - Headset.io, accessed October 28, 2025, https://www.headset.io/industry-reports/a-look-at-cannabis-consumer-demogra phics-in-2023 3. Who's Really Buying Cannabis in 2025? (Spoiler: It's Not Who You Think), accessed October 28, 2025, https://hybridmarketingco.com/cannabis-emerging-demographics/ 4. Custom Cannabis Bags: Which Colors Convert in Dispensaries - PackagingBest, accessed October 28, 2025, https://www.packagingbest.com/which-colors-are-eye-catching-for-cannabis-p ackaging/ Page 204 of 322 5. Millennials buy more cannabis pre-rolls than other generations, report says - MJBizDaily, accessed October 28, 2025, https://mjbizdaily.com/millennials-buy-more-cannabis-pre-rolls-than-other-gene rations/ 6. An Inside Look at Minimalist Branding for Cannabis Companies, accessed October 28, 2025, https://www.highopes.co/blog/what-is-minimalist-branding-pros-cons-for-canna bis-brands/ 7. Holographic Paper - Marijuana Packaging Solution, accessed October 28, 2025, https://marijuanapackagingsolution.com/holographic-paper/ 8. Cannabis products that could be attractive to children are prohibited, accessed October 28, 2025, https://cannabis.ca.gov/2024/08/cannabis-products-attractive-to-children-prohib ited/ 9. The Future of Cannabis Packaging in 2025: Trends & Regulations - innorhino, accessed October 28, 2025, https://innorhino.com/blog/industry-insight/future-cannabis-packaging-2025-tre nds-regulations 10. The Weed Generation: How Gen Z Is Turning Cannabis Into a Lifestyle Movement | stupidDOPE | Est. 2008, accessed October 28, 2025, https://stupiddope.com/2025/10/the-weed-generation-how-gen-z-is-turning-ca nnabis-into-a-lifestyle-movement/ 11. Exposure to cannabis marketing in social and traditional media and past-year use among adolescents in states with legal retail cannabis - NIH, accessed October 28, 2025, https://pmc.ncbi.nlm.nih.gov/articles/PMC6980270/ 12. Packaging of Cannabis Edibles, Health Warning Recall, and Perceptions Among Young Adults - PMC - NIH, accessed October 28, 2025, https://pmc.ncbi.nlm.nih.gov/articles/PMC11969283/ 13. Cannabis Packaging Design Trends in 2021 - CaseMakes, accessed October 28, 2025, https://casemakes.com/resources/blog/cannabis-packaging-design-trends-in-20 21/ 14. 8 Best Cannabis Packaging Designs to Spark Your Imagination - Filestage, accessed October 28, 2025, https://filestage.io/blog/cannabis-packaging/ 15. Cannabis Dispensary Design | Case Study - The McBride Company, accessed October 28, 2025, https://mcbridedesign.com/case-studies/cannabis-projects-5 16. Cannabis Plain Packaging Rules: Examples and Opportunities - Troutman Pepper Locke, accessed October 28, 2025, https://www.troutman.com/insights/cannabis-plain-packaging-rules-examples-an d-opportunities/ 17. Full article: Washington State Teens' Perceptions of Cannabis-Infused Product Packaging: A Qualitative Study - Taylor & Francis Online, accessed October 28, 2025, https://www.tandfonline.com/doi/full/10.1080/10810730.2025.2514835?src= 18. trend of weed packs 2025: Sustainability & Smart Design - Accio, accessed October 28, 2025, https://www.accio.com/business/trend-of-weed-packs Page 205 of 322 19. Cannabis Packaging Trends 2025: Design & Consumer Insights, accessed October 28, 2025, https://www.beastcoastpackaging.com/trends/cannabis-packaging-trends/ 20. Typography and Font Choices That Resonate with Cannabis Consumers, accessed October 28, 2025, https://420packaging.com/blogs/resources/typography-and-font-choices-that-r esonate-with-cannabis-consumers 21. Cannabiz Trend Report: The Evolution of Marijuana Branding in 2020 - Shutterstock, accessed October 28, 2025, https://www.shutterstock.com/blog/cannabiz-trend-report-cannabis-branding 22. Cannabis Packaging: Challenges and Opportunities - innorhino, accessed October 28, 2025, https://innorhino.com/blog/packaging-trend/cannabis-packaging-overcoming-ch allenges-and-seizing-opportunities 23. Cannabis Branding Essentials: Navigating Regulations, accessed October 28, 2025, https://cannabiscreative.com/blog/cannabis-branding-essentials-navigating-the-r egulations/ Page 206 of 322 2023Cannabis Consumers in America Part 1: An Overview of Consumers Today ©2023 New Frontier Data All Rights Reserved Page 207 of 322 Contents Cannabis Consumers in America 2023: Part 1 4 Cannabis & U.S. Adults 6 U.S. Consumers in Context 8 Current Consumers Use Frequency 10 Motivations for Use 12 Medical Consumers 14 Product Forms 16 Non-consumers & Potential Use 24 Sourcing & Spending 26 Social Factors & Use 32 Policy Beliefs 35 Other Consumption 36 38 Key Takeaways 41 Methodology 43 About Us Page 208 of 322 ADVERTISEMENT Page 209 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 14 © New Frontier Data, All Rights Reserved. Cannabis & U.S. Adults 42% of U.S. adults say they have used cannabis and will likely use it again. 37% of U.S. adults are “current consumers” – those who use at least annually and plan to use cannabis again in the future. Unless otherwise specified, all charts in this report describe current consumers. U.S. Adults' Relationship to Cannabis 42% of U.S. adults have used cannabis and say they will use it again. 37% 5%13% 15% 30% Current Consumers (use at least annually) Lapsed Consumers (use less than annually, but will use again) Former (used in the past, don't intend to use again) Potential (never used, but would consider trying) Never Used (don't intend to use) Page 210 of 322 CANNAbIS & U.S. ADUlTS 5© New Frontier Data, All Rights Reserved. There has been a slight increase in the share of U.S. adults who are cannabis consumers since last year. The share of U.S. adults who say they never have and never will consume cannabis has decreased slightly from last year – down to 30% from 34% – indicating an increase in openness to cannabis among U.S. adults. 42%39% 34%30% 15% 14% 13% 13% 2022 2023 Consumers (have used and will use again) Former (used in past, won't use again) Potential (never used, would consider trying) Never used (don't intend to use) U.S. Adults' Relationship to Cannabis: 2022 vs. 2023 Page 211 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 16 © New Frontier Data, All Rights Reserved. Source this page: SAMHSA *Daily/almost daily rates were not available in 2021; growth rate for daily/almost daily use is based on 2020 data. Changes in Past Month Use Past month use of cannabis has increased between 2017 and 2021 in every age group except among young adults ages 18-20. U.S. Consumers in Context 0% 5% 10% 15% 20% 25% 30% Ages 18-20 Ages 21-25 Ages 26-29 Ages 30-34 Ages 35-39 Ages 40-44 Ages 45-49 Ages 50-54 Ages 55-59 Ages 60-64 Ages 65+ -8% +20%+43% +57% +55%+64%+62%+49%+36%+58% +96% U.S. Adult Cannabis Consumption Rates 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021* CHANGES IN USE FREQUENCY Lifetime +23%arrow-up-right2 Past year +118%arrow-up-right2 Past month +150%arrow-up-right2 Daily / almost daily* +238%arrow-up-right2 2017 2021 Page 212 of 322 U.S. CoNSUMERS IN CoNTExT 7© New Frontier Data, All Rights Reserved. Home State Cannabis Laws Percent of total U.S. population. Product Share of Sales In legal markets, 2022 average. 74% of the total U.S. population lives in a state with some form of legal cannabis framework. Adult-usestates Medicalonly states Illicitstates 48% 26% 26% Growth of the U.S. Legal Cannabis Industry 2020 2022 2024 2026 2028 2030 $70B $74 B $77B $73B $71B $69B $68B $67B $66B $66B $66B 2020 2021 2022 2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e $11B $15B $16B $21B $25B $29B $33B $36B $39B $41B $42B $9B $12B $12B $13B $14B $14B $14B $15B $15B $15B $15B $19B $27B $29B $34B $39B $43B $47B $50B $54B $56B $58B Legal medical use Legal adult-use Ů Illicit market Flower: 43% Preroll: 6% Vape: 29% Edible/ Beverage: 11% Extract: 9% Tincture: 1% Topical: 0.5% Other: 0.4% ADULT-USE STATE 160.2 million MEDICAL STATE 87.7 million ILLICIT STATE 88.7 million Page 213 of 322 8 © New Frontier Data, All Rights Reserved. Current Consumers Who are the current cannabis consumers? 57% of current consumers are under age 45. Gender THIS REPORT FOCUSES ON CURRENT CONSUMERS, OR THOSE WHO USE CANNABIS AT LEAST ANNUALLY. Age 18-24 25-34 35-44 45-54 55-64 65+ 10% 24%23% 18%15% 10% Racial/Ethnic Identity White Hispanic/Latinx Black Mixed/Multiracial Asian Other 63% 14% 14% 4% 3% 2% Women: 46% Men: 54% Political Alignment 15% 21% 28% 19% 10% 7% Stronglyliberal/left Moderatelyliberal/left Independent Moderatelyconservative/right Stronglyconservative/right Notpolitical 36% LIBERAL 29% CONSERVATIVE Page 214 of 322 CURRENT CoNSUMERS 9© New Frontier Data, All Rights Reserved. 38% have a bachelors degree or higher. Home State Cannabis Laws Adult-usestate Medicalonly state Illicit state 52% 25% 23% Living Situation With a spouse/partner and children On my own With a spouse/partner only With parents/immediate family With children only With roommates Extended/multigenerational family 27% 25% 24% 8% 7% 5% 3% Education Some highschool High schooldiploma Somecollege Associatedegree/tradeschool Bachelor'sdegree Advanceddegree 3% 22%21% 16% 24% 14% Parenthood Have adult children 22%38%40% Have children under 18 Don’t have children Annual Household Income Under $25k $25-$50k $50-$75k $75-$100k $100-$125k $125-$150k $150-$175k $175-$200k $200k plus 17% 21% 19% 14% 8% 6% 4% 4% 5% Page 215 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 110 © New Frontier Data, All Rights Reserved. Younger consumers generally use cannabis more frequently than do older consumers, and men use cannabis slightly more frequently than women on average. Use frequency does not vary significantly by home state market type. Use Frequency Multipletimes / day 1x / day A fewtimes /week 1x / week A coupletimes /month 1x / month 1 to a fewtimes /year 31% 12% 21% 5% 11% 5% 16% 41% 37%34%32%32% 32%30%29% 28% 26% 25%23%22% 20% 19%17% 17% 15%12%10% Ages 18-34 Ages 35-54 Ages 55+Men Women Multipletimes/day Once everyday or two Once/week -once/month 1 to a fewtimes/year Use Frequency: By Age & Gender 33% use once every day or two. 21% use once a week to once a month. Page 216 of 322 USE FREqUENCY 11© New Frontier Data, All Rights Reserved. Increased Stayedthe same Decreased 47% 40% 14% 38% 51% 11% 23% 60% 17% Strongly agree Somewhatagree Neitheragree nordisagree Somewhatdisagree Stronglydisagree 6% 13% 32% 21% 28% Change in Consumption Since 1 Year Ago: By Age Younger consumers are more likely than older consumers to report that their use increased in the last year. I would like to cut back on my cannabis consumption. Despite some self-reported increases in use, fewer than one in five consumers want to cut back on their use. 14% 23% 49% 8% 5% Increased a lot Increased a little Stayed the same Decreased a little Decreased a lot Change in Consumption Since 1 Year Ago 37% INCREASED 13% DECREASED 19% AGREE 49% DISAGREE Ages 18-34 Ages 35-54 Ages 55+ Page 217 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 112 © New Frontier Data, All Rights Reserved. Unwinding (relaxation, stress relief, reducing anxiety), pain management, and aiding sleep are the leading reasons consumers report using cannabis. Motivations for Use Relaxation Stress relief Reducing anxiety Pain management Improving sleep quality Falling asleep Enjoying social experiences Increasing overall wellness Treating a medical condition Appetite stimulation Stimulating creativity Making normal tasks more interesting Increasing focus/attention Reducing/replacing alcohol drinking Enhancing sexual experiences As a healthier alternative to another behavior Feeling more energized Making work more interesting Reducing spending on other prescription drugs Managing the negative eects of other medications Enhancing meditation or religious experiences Improving exercise/training performance 64% 59% 52% 48% 45% 45% 30% 22% 21% 21% 20% 18% 18% 16% 15% 15% 14% 10% 10% 9% 8% 8% 83% use for unwinding (relaxation, stress or anxiety). 61% use for sleep (improving quality or falling asleep). Page 218 of 322 MoTIVATIoNS FoR USE 13© New Frontier Data, All Rights Reserved. 70%of current consumers say that their cannabis use helps them achieve a specific objective. Primary Reason for Use 46% UNWINDING relaxation / stress / anxiety 21% MEDICAL treating pain / a medical condition 11% SLEEP Relaxation Pain management Reducing anxiety Stress relief Falling asleep Improving sleep quality Enjoying social experiences Increasing overall wellness Treating a medical condition Making normal tasks more interesting Stimulating creativity As a healthier alternative to other behavior 19% 17% 14% 12% 6% 5% 5% 4% 4% 2% 2% 2% Activities While/After Consuming 56%52%45%37%36%35%33% Watching video/TV/moviesat home Listening to music athome Sleeping Browsing theinternet orsocial media Eating Spending timewith family/partner Socializing atsomeone'shouse 22%25%25%29%30%32% Drinkingalcohol Spending timein nature Having sex Cooking Housecleaning/chores Playingvideo games Page 219 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 114 © New Frontier Data, All Rights Reserved. Chronic pain Migraines PTSD Osteoarthritis Rheumatoid arthritis Neuropathy IBS Fibromyalgia Cancer Autism Glaucoma Seizures/epilepsy Anorexia nervosa Crohn's disease 46% 21% 17% 10% 9% 9% 5% 5% 5% 4% 3% 3% 3% 3% Medical Consumers While more consumers consider themselves broadly “recreational” than “medical” cannabis users, a majority (53%) describe their cannabis use as both medical and recreational. Self-Identified User Type Diagnosed Medical Conditions Being Treated with Cannabis 75% of self-identified medical consumers say they are treating a specific medical condition a diagnosed by a doctor. 42% MEDICAL 53% DUAL USE 58% RECREATIONAL Exclusivelymedical Primarilymedical Primarilyrecreational Exclusivelyrecreational 15% 28% 25% 32% Among current (annual+) consumers who describe their use as primarily or exclusively medical. Page 220 of 322 MEDICAl CoNSUMERS 15© New Frontier Data, All Rights Reserved. 51% of self-identified medical consumers say they have replaced at least some of their prescription medication use with cannabis. 94% say their medical condition/symptom has improved. Cannabis Impact on Medical Condition/Symptoms Improvedsigniﬁcantly Improvedslightly Stayedthe same Worsened: Don't know: 55% 39% 5% 1% 1% Among current (annual+) consumers who describe their use as primarily or exclusively medical. Pain Anxiety Depression Insomnia Inﬂam-mation Lack ofappetite Nausea/vomiting Othermooddisturbance Troublesocializing Night-mares Spasms/seizures 64% 55% 41%40% 28% 18% 14%13%10%10%9% What Symptoms Are You Treating with Cannabis? Among current (annual+) consumers who describe their use as primarily or exclusively medical. Page 221 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 116 © New Frontier Data, All Rights Reserved. Current consumers 1 Ages 18-34 Ages 35-54 Ages 55+ 2 Men Women 56% 66% 59% 36% 59% 52% 23% 22% 21% 28% 27% 19% 21% 12% 19% 36% 15% 29% Since last year, there has been a small increase in the share of consumers who say they use exclusively non-smokable forms of cannabis (from 17% to 21%). Product Forms Flower vs. Nonflower USE AGE GENDER BY CONSUMER SEGMENT 2022 VS. 2023 23% 40% 8% 7% 21% Exclusivelyﬂower Mostly ﬂower Flower as oftenas nonﬂower Mostlynonﬂower Exclusivelynonﬂower 2022 2023 25% 23% 57% 56% 17% 21% Flower only Both Nonflower only Page 222 of 322 PRoDUCT FoRMS 17© New Frontier Data, All Rights Reserved. 61% 58% 36% 32% 32% 30% 19% 18% 16% 15% 13% 13% 8% 6% 3%2% Joints Edibles Blunts Hand pipes Vape pens Bongs Topicals Dabs Joints with added concentrate Infused beverages Tinctures Splis Pills/capsules Tabletop vaporizers Transdermal patches Sublingual strips Joints and edibles are the leading forms, each used by a majority of current consumers. Vape pens are the next most commonly used non-flower form, with about a third (32%) of consumers using them. Popular Product Forms FORM MOST FREQUENTLY USED FAVORITE Flower 60%56% Edibles 21%24% Vape pens 10%9% Topicals 3%3% Tinctures/capsules 3%3% Dabs 2%3% Beverages 1%1% Page 223 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 118 © New Frontier Data, All Rights Reserved. ACCESS Which forms consumers use is limited by what they have access to. Fewer than half of consumers report having access to any forms of cannabis other than flower, prerolls, and edibles, even in adult-use states. We expect use of many of these forms to gradually increase in popularity as legal markets expand and dispensaries diversify their product offerings. What forms of cannabis do you have access to? Younger consumers are especially interested in new products. 44% of current consumers express interest in trying new cannabis products. Flower Edibles Prerolls Disposable vape cartridges Vape oil Concentrates Topicals Ready-to-drink beverages Tinctures Drink mix/tea bags/honey Prerolls with added concentrate Pills/capsules Transdermal patch Sublingual strip 69% 60% 51% 43% 36% 30% 28% 26% 23% 20% 18% 16% 6% 3% 73% 65% 62% 49% 42% 35% 34% 34% 28% 25% 26% 20% 8% 5% When I hear about a new cannabis product, I am eager to try it. Ages 18-34 Ages 35-54 Ages 55+ 23% 48% 54% All consumers Consumers in adult-use states Page 224 of 322 PRoDUCT FoRMS 19© New Frontier Data, All Rights Reserved. Among current (annual+) consumers who use more than one form of cannabis. Among current (annual+) consumers who use more than one form of cannabis. USE OF MULTIPLE FORMS I choose different forms of cannabis... I choose different forms of cannabis: By Age Younger consumers are more likely to have reasoning behind their selection of different product forms than are consumers over 55. To engage indierentactivities To createdierent moods At dierenttimes of day To consume indierentlocations When I amaround dierentpeople None of these 45% 37% 29% 18%17%17% To engage indierentactivities To createdierent moods At dierenttimes of day To consume indierentlocations When I amaround dierentpeople None of these 51% 45% 31% 19%19% 11% 49% 36% 29% 21% 17%14% 24%24%26% 13%15% 36% Ages 18-34 Ages 35-54 Ages 55+ Page 225 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 120 © New Frontier Data, All Rights Reserved. PRODUCT SELECTION THC potency and effect of the product are the attributes that consumers say are most relevant in deciding which product to choose. 56% of consumers named one of these as the most important attribute to know about a product. Which information is most helpful to you when choosing which cannabis product to purchase or use? THC content/potency Eect theproduct willhave Whether it issativa, indica,or hybrid Strain name Aroma orﬂavor proﬁle Minorcannabinoidor terpenes None ofthese 29%27% 15% 9%8%6%6% -20%0%20%40%60%80%-40%100% THC potency The eect it says it will create Price Familiarity with the strain/product name Total chemical proﬁle Recommendations from friends Online product reviews Non-cannabis ingredients Which company made the product Design of packaging 72% 67% 64% 44% 43% 42% 35% 35% 31% 22% Product Purchase Selection Factors Not important Slightly important Moderately important Very important Extremely important Very + Extremely important Among current (annual+) legal consumers. Legal consumers are defined as consumers who are using cannabis in compliance with their states’ cannabis laws, encompassing: consumers age 21 and over in adult-use states, or consumers who are registered medical patients in medical-only states. Page 226 of 322 PRoDUCT FoRMS 21© New Frontier Data, All Rights Reserved. THC potency and effect have an outsized importance for older consumers. 64% of consumers 55 and older name one of these as the most important, compared to 55% of 35-54-year-olds and 52% of 18-34-year-olds. Among men, the most important attribute to know about a product is its THC potency; for women it is the effect. Which information is most helpful to you when choosing which cannabis product to purchase or use: By Age & Gender 33%33% 31%30% 28%28% 27% 26% 24%23% 17%16%15%14%13% 12% 11% 10% 10% 9% 9% 9% 8% 8% 7%7% 7% 7%6%5% 5% 5%4% 3% 3% Ages 18-34 Ages 35-54 Ages 55+Men Women THC content/potency Eect theproductwill have Whether it issativa, indica,or hybrid Strain name Aroma orﬂavor proﬁle Minorcannabinoidor terpenes None of these Page 227 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 122 © New Frontier Data, All Rights Reserved. All charts this page: Among current (annual+) consumers who use smokable forms of cannabis. STRAINS VS. MINOR CANNABINOIDS & TERPENES Despite recently increased industry focus on minor cannabinoids and terpenes, most consumers still use strains to make decisions. 77% of flower consumers say strains are important. 47% say minor cannabinoid and terpene profile is important. What type of cannabis do you prefer? Sativa Hybrid Indica I don’t care I don’t know 27%26%23%14%10% Importance of Minor Cannabinoid/Terpene Profile 22% 26% 15% 26% 11% Very important Somewhat important Not important I don't know what a minorcannabinoid/ terpene proﬁle is I don't have access to information aboutminor cannabinoids/ terpenes in my cannabis 84% 50% 42% 22% 19% 15% 11% 11% Gummies Cookies/brownies Chocolates Beverages Hard candies Savory snacks Caramel/tay Mints How important are strains to you? 40% 37% 23% Very important Somewhat important Not important Page 228 of 322 Among current (annual+) consumers who use edibles/beverages and typically know how many milligrams of THC they consume at a time Product Forms 23© New Frontier Data, All Rights Reserved. EDIBLES Lessthan2mg 2-4mg 5mg 6-9mg 10mg 11-15mg 16-20mg 21-30mg 31-50mg 51-100mg 101-250mg Morethan250mg 5% 14% 18% 7% 17% 5%6%6%5%4%4% 2% Among current (annual+) consumers who use edibles. 84% 50% 42% 22% 19% 15% 11% 11% Gummies Cookies/brownies Chocolates Beverages Hard candies Savory snacks Caramel/tay Mints Most Commonly Used Edible Type THC Dose per Session in Edibles/Beverages The most common doses for manufactured edibles and drinks are 2mg, 5mg, and 10mg, which accounts for the relative popularity of these doses per session. Page 229 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 124 © New Frontier Data, All Rights Reserved. Among respondents who do not use cannabis. *Among respondents in medical-only or illicit states If I become ill with a condition whichmight be helped with cannabis I would not consider tryingcannabis in any circumstance If my doctor recommends it If it becomeslegal in my state* If I had access to cannabisI knew was safe If it becomes legal nationally If a friend I trustoers it to me If I travel to a state orcountry where it is legal If I had any access at all 64% 60% 49% 33% 25% 15% 13% 12% 28% 43% 35% 6% 4% 4% 2% 2% 2% 36% 31% 29% 22% 13% 12% 7% 6% 4% Non-consumers & Potential Use Medical/health motivators – medical conditions or a doctor’s recommendation – are the leading reasons non-consumers would consider using cannabis (or using it again, in the case of former consumers). While smokable products are the most commonly used forms of cannabis among consumers, ingestible and topical forms are most appealing to non-consumers. Circumstances When Non-consumers Would Consider Using Cannabis Potential Forms of Interest to Non-consumers Edible Topical Beverage Tincture Flower Vaporizer 71% 44%39% 26%22%23% 40% 25%25%13%11%9% Potential (never used, but would consider) Never Used (don't intend to) Former (used before, will not again) Among respondents who have never used cannabis. Page 230 of 322 NoN-CoNSUMERS & PoTENTIAl USE 25© New Frontier Data, All Rights Reserved. Among respondents who used cannabis in the past but do not intend to use again.Former Consumers: Reasons for Stopping The leading reasons former consumers stopped using cannabis relate to the effects of cannabis use. Non-consumers Likely to Use Cannabis in the Next 6 Months 16% of all non-consumers say they are likely to use cannabis in the next 6 months. I disliked the feeling of being high I disliked the eect on my motivation/behavior I disliked a side eect It was too expensive It interfered with professional responsibilities I had children It interfered with personal responsibilities Too dicult/risky to obtain People important in my life want me to abstain It interfered with personal relationships I am now drug tested 37% 32% 31% 17% 16% 14% 14% 12% 10% 9% 8% Potential Never used, would consider 40% Never Used Don’t intend to 7% Former Used before, will not again 11% Among respondents who do not use cannabis. Page 231 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 126 © New Frontier Data, All Rights Reserved. Sourcing & Spending More than 2 in 5 U.S. consumers say a brick-and- mortar dispensary is their primary source for cannabis. Friends are the next leading source, followed by delivery services. This pattern does not vary significantly between different ages and genders. Home state market type continues to be the biggest determinant of consumers’ method of sourcing cannabis. In adult-use markets, a majority (52%) of consumers report brick-and-mortar dispensaries as their primary source. In illicit markets, friends are the leading primary source (31%). Primary Source of Cannabis Primary Source: By Home State Market Brick-and-mortardispensary Friend Delivery Dealer 52% 16%17% 6% 37% 26% 14%12% 29%31% 12% 17% Brick-and-mortar dispensary: 43% Friend: 22% Delivery: 15% Dealer: 10% Family: 7% Homegrow: 2% Adult-use state Medical only state Illicit state Page 232 of 322 SoURCINg & SPENDINg 27© New Frontier Data, All Rights Reserved. In the last year, the share of consumers who source primarily from brick-and- mortar dispensaries has increased significantly, from 34% to 43%. It is expected that this share will continue to grow over the next few years as more states legalize and markets become operational. Despite the dramatic growth in use of brick- and-mortar dispensaries, friends and family continue to be a prevalent source. 39% of current consumers report supplying cannabis for their family or friends, including nearly half (49%) of consumers under age 35. Primary Source: 2022 vs. 2023 23% of consumers acquire cannabis from a friend or family member and consume with that person. 31% of consumers acquire cannabis from a friend or family member to consume at a later time. Ever supply family or friends with cannabis. Brick-and-mortardispensary Friend/family Delivery Dealer 34% 29% 18% 13% 43% 29% 15% 10% 49%44%42%34%22% Ages 18-34 Ages 35-54 Ages 55+Men Women Brick-and-mortar dispensary: 43% Friend: 22% Delivery: 15% Dealer: 10% Family: 7% Homegrow: 2% 2022 2023 Page 233 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 128 © New Frontier Data, All Rights Reserved. Among current (annual+) consumers who source cannabis from a business (brick & mortar or delivery service). OUT-OF-STATE SOURCING 42% of consumers have sourced cannabis from out of state. BUSINESS SOURCING DECISIONS Source Decision Factors Acquired themselves Had someone else acquire Not important Slightly important Moderately important Very important Extremely important Very + Extremely important -20%0%20%40%60%80%-40%100% Product quality Product selection Price Knowledgeable sta Convenient location Friendly sta Speed of purchase/transaction Current promotions/sales Loyalty rewards or discounts Availability of online ordering Cashless payment option Woman, BIPOC, or veteran owned 27% 41% 47% 50% 60% 61% 71% 73% 76% 79% 82% 90% 25%15%8%6%4% Acquiredout-of-stateto consumethere Acquiredout-of-stateto bring home Had someoneelse acquirefrom anotherstate Acquiredout-of-stateand shippedhome Had someoneelse shipto me Page 234 of 322 SoURCINg & SPENDINg 29© New Frontier Data, All Rights Reserved. Among consumers who always or usually source from the same cannabis business. Among consumers who source from different cannabis businesses. I am familiarwith it The location isconvenient The sta isknowledgeable They carry theproducts I want They oer greatdiscounts Convenientpaymentoptions Customerloyalty rewardsprogram 58% 48% 36%35% 25%24%22% Take advantage of promotions at dierent stores Visit dierent businesses based on what is near me Try somewhere new /check out unfamiliar businesses Find speciﬁc products/strains not available at every source 54%44%35%33% Business Loyalty Reasons Business Switching Reasons Page 235 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 130 © New Frontier Data, All Rights Reserved. ACQUISITION FREQUENCY Two in five current consumers acquire cannabis at least once per week. Younger consumers are more likely than older consumers to acquire at least weekly. 13% 10% 33% 42% Once to a couple times/year Every couple months Once to a couple times/month Once/week or more 42% of current consumers acquire cannabis at least once a week. Acquisition Frequency: By Age Once/week or more Once to a coupletimes/month Every couplemonths Once to a coupletimes/year 56% 28% 6%8% 44% 34% 9%11% 19% 37% 18% 22% Ages 18-34 Ages 35-54 Ages 55+ Page 236 of 322 SoURCINg & SPENDINg 31© New Frontier Data, All Rights Reserved. All of it Most of it Half or less None of it 61%21% 14% 4% Never pay Under $20 $20 - $49 $50 - $99 $100 - $199 $200 - $399 $400+ 4% 8% 30% 32% 19% 5% 1% How much of the cannabis you consume do you pay for? Typical Spend per Purchase SPENDING 82% of consumers pay for most or all of the cannabis they consume. Only 4% say they never pay for cannabis. 62% of consumers say they typically spend $20-99 each time they purchase. Page 237 of 322 Social Factors & Use Most current consumers (63%) report always or usually consuming cannabis alone. of the 17% who always or usually consume with others, about half typically use with just one other person. Use Context If you consume with others, how many people are you typically with? Always consumealone Usuallyconsumealone Consumealone and withothers equally Usuallyconsume withothers Always consume withothers 33% 30% 21% 11% 6% 49% 43% 8% 1 other person 2-3 other people 4+ other people Among current (annual+) consumers who always or usually consume with others. Page 238 of 322 PolICY bElIEFS 33© New Frontier Data, All Rights Reserved. Among consumers who typically use cannabis with others, women are more likely to consume with just one other person, whereas men are more likely to consume with 2-3 others. If you consume with others, how many people are you typically with: By Gender With whom have you consumed cannabis in the last year? 56% 52%40% 36% 8% 8% 1 other person 2-3 other people 4+ other people Men Women Friends Spouse/partner Sibling(s) Coworker(s) Extended family People I did not previously know My parent(s) My child(ren) 45% 39% 13% 10% 9% 6% 6% 4% 26% of consumers say cannabis is sometimes a part of holiday gatherings/celebrations with family. Among current (annual+) consumers who always or usually consume with others. Page 239 of 322 Among current (annual+) consumers who have friends or family that know about their cannabis use. 34 OPENNESS 93% 89% 48% Friends Family Coworkers They generally support it They generally tolerate it They are generally against it There are a mix of opinions 59%25% 2%8% 68% 61% 35% Who knows you consume cannabis? Most of my friends are cannabis consumers: By AgeNearly 3 in 5 consumers report that most of their friends are also cannabis users. Among consumers under 35 years old, it is two thirds. likelihood of friends also being cannabis consumers did not differ significantly by gender or home state market type. How do your friends/ family feel about your cannabis use? 57% of current consumers say most of their friends are cannabis consumers. Ages 18-34 Ages 35-54 Ages 55+ Page 240 of 322 PolICY bElIEFS 35© New Frontier Data, All Rights Reserved. Policy Beliefs Legalized/decriminalized Legal for medicaluse only Entirely illegal Don’t know 89% 5%3%3% 46% 31% 11%12% People should not be incarcerated for any cannabis oenses There should be public spaces, like bars and cafes,where smoking cannabis is permitted Legal cannabis is safer than illegal cannabis People can become addicted to cannabis Local jurisdictions should be able to limit cannabis operations Employers should be allowed to drug test their employees for cannabis I worry that legalizing cannabis will do more harm than good 74% 73% 68% 46% 40% 35% 17% 44% 33% 50% 63% 55% 56% 41% General Population: Which best describes your views on cannabis legalization? Which best describes your views on cannabis legalization: Consumers vs. Non-consumers Policy Beliefs: Consumers vs. Non-consumers Should be legalized/ decriminalized Should be legal for medical use only Should be entirely illegal Don't know Consumers Non-consumers 64% 20% 8% 8% Page 241 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 136 © New Frontier Data, All Rights Reserved. Among respondents who have ever tried CBD. Other Consumption At least a fewtimes/week A few times/monthto once/week Once/month or less Never 34% 30% 21% 15% 21% 26%26%27% 36% 26% 22% 20%19%18%17% 15%14%13% Daily Once to acoupletimes/week Once to acoupletimes/month Once to acoupletimes/year Only evertried CBDonce or twice ALCOHOL Frequency of Alcohol Use: Consumers vs. Non-consumers CBD Frequency of CBD Use: Consumers vs. Non-consumers Cannabis consumers are more likely than non-consumers to also consume alcohol, and generally use it more frequently. 54% of cannabis consumers have tried CBD. 16% of non-consumers have tried CBD. Consumers Non-consumers Page 242 of 322 © New Frontier Data, All Rights Reserved. Among respondents who have used CBD more than once or twice. 62%15% 23% Oil/tincture Edibles Topicals/cosmetics/bath products Vapes Pills/capsules Smokablehemp ﬂower Infusedbeverage 25%24%18%12%8%8%6%27%18%25%11%11%4%4% Most Frequently Used CBD Form: Consumers vs. Non-consumers Among consumers of both CBD and THC, most consider themselves primarily THC users. Consumers Non-consumers I'm primarily a THC consumer Primarily a CBD consumer I'm an equal consumer of both Page 243 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 138 © New Frontier Data, All Rights Reserved. As legalization of cannabis expands, acceptance and use continue to grow among Americans. With 42% of U.S. adults having used cannabis and likely to use it again, and 15% expressing interest in trying it in the future, the industry can expect a steady increase in consumer base. As the number of adults who have not tried cannabis and do not intend to decreases, this trend signifies growing receptiveness and potential opportunities for market expansion. The cannabis consumer demographic is diverse, with users spread across age groups, genders, economic brackets, and political affiliations. Instead of trying to speak to the whole range of consumer identities at once, brands and retailers should identify a specific target consumer type and cater to their specialized needs. Cannabis prohibition does not materially affect the frequency with which consumers use cannabis. Use frequency patterns among consumers vary by widely by age and somewhat by gender, but not by the cannabis laws of consumer’s home state. Use frequency distribution across adult-use, medical only, and illicit states is constant. Regulators, legislators, and policymakers should not expect to be able to affect the frequency with which consumers use cannabis. Key Takeaways The cannabis consumer demographic is diverse... brands and retailers should identify a specific target consumer type and cater to their specialized needs. Page 244 of 322 KEY TAKEAWAYS 39© New Frontier Data, All Rights Reserved. Access to forms of cannabis other than flower and edibles remains limited for many consumers, even in adult-use states. As such, regulators should work to ensure that a wider variety of cannabis products are made available to consumers, and existing operators who have focused primarily on flower and edibles should expand their product offerings to reach new consumers, as well as providing existing consumers with additional product options. A majority of cannabis consumers use the product for both medical and recreational purposes. This underscores the need for product development that focuses on delivering specific effects, such as boosting energy or relieving pain, and understanding that one consumer may seek several distinct effects in different contexts. brands should invest resources in understanding the constellation of desired effects among their target users to be able to deliver across many potential use cases. Unwinding, pain management, and aiding sleep have stabilized as the leading reasons consumers report using cannabis. With consumers and non-consumers alike becoming increasingly comfortable openly discussing cannabis use, it is likely some individuals who do not currently use cannabis but experience problems their friends and loved ones commonly address with cannabis will be persuaded to try using cannabis to address pain, stress, or sleep disorders. Despite expanding legalization, many consumers still face limited access to cannabis. Although 74% of Americans live in states with legal adult-use or medical markets, local regulatory restrictions and geographical distribution of dispensaries result in barriers to fully participating in the legal market for some, especially outside major metropolitan areas. A majority of cannabis consumers use the product for both medical and recreational purposes. Page 245 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 140 © New Frontier Data, All Rights Reserved. Despite the growth in dispensary usage, friends and family continue to be a significant source of cannabis. The use of informal sources such as friends and family will never entirely disappear, but the importance of this channel can be capitalized upon by brands and by leveraging referral programs and other initiatives to encourage word-of-mouth marketing. Younger consumers are not only shopping for themselves, but for older family members as well. Half of current consumers ages 18-34 report supplying friends & family, and 10% of consumers ages 55 and older say family is their primary source of cannabis. This underscores the importance of educating younger consumers on products that would benefit their older relatives. Which forms consumers use is limited by what they have access to. Fewer than half of all consumers report having access to any forms of cannabis other than flower, prerolls, and edibles, even in adult use states. The shift toward non-flower products will continue slowly as access to and familiarity with these forms increases over the coming years. As legal markets expand and dispensaries diversify their product offerings, consumer interest in trying new cannabis products will grow in the short term. This presents an opportunity for operators and investors to explore innovative product forms and delivery methods. In particular, younger consumers are more likely to be interested in new products and are more likely to use both flower and non-flower products, so focusing on this demographic could yield positive results. The increasing prevalence of brick- and-mortar dispensaries as the primary source of cannabis reflects the expansion of legal markets. The share of sales captured by brick-and-mortar dispensaries will increase over the coming years as more states legalize and regulate cannabis and this channel becomes available to more consumers. The degree to which illicit dealers continue to prevail as a source within a state will depend on the cost of cannabis and the retail options created by that state’s regulatory framework. Younger consumers are more likely to be interested in new products and are more likely to use both flower and non-flower products. Page 246 of 322 METHoDologY 41© New Frontier Data, All Rights Reserved. NEW FRoNTIER DATA designed and conducted an online survey to assess cannabis consumer attitudes, perceptions, and consumption across legal and unregulated markets in the United States. Survey themes included: cannabis use, purchasing behavior and decision influencers, product preferences and expenditures, beliefs about cannabis, and other consumption behaviors. U.S. adults who were not cannabis consumers were also surveyed about potential future cannabis use, and beliefs and attitudes about cannabis, and social and personal connections to cannabis consumers. Sampling was demographically representative of the adult population in the United States. Analyses were conducted among 4,358 can- nabis consumers – respondents who indicated that they consumed cannabis in the past, and will consume it again, as well as 1,176 non-con- sumers. The survey was conducted in q1 2023. Methodology SURVEY OVERVIEW Methodology Online Survey Sample Size Total Respondents 5,534 Consumers 4,358 Non-consumers 1,176 Fielding Dates Feb 17 - Feb 26, 2023 Mean Duration 16 minutes Margin of Error Consumers ±1.48% Non-consumers ±2.86% Page 247 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 142 © New Frontier Data, All Rights Reserved. SAMPLE DESCRIPTIVES SURVEY SAMPLE DEMOGRAPHICS CURRENT CONSUMERS NON-CONSUMERS Sample Size 3867 1176 Age 18-24 10.1%10.7% 25-34 23.8%12.2% 35-44 23.1%13.4% 45-54 17.7%16.8% 55-64 15.0%18.5% 65+10.3%28.5% Gender Male 54.2%45.0% Female 45.6%55.0% Nonbinary/other 0.2%0.0% Home State Cannabis Market Adult-use 52.1%43.9% Medical only 25.3%26.8% Illicit 22.6%29.3% User Type Self-Identification only medical 14.8%n/a Primarily medical 27.7%n/a Primarily recreational 25.2%n/a only recreational 32.4%n/a Household Annual Gross Income Under $25,000 16.7%15.2% $25,000 - $49,999 20.6%21.9% $50,000 - $74,999 19.2%17.3% $75,000 - $99,999 14.0%13.0% $100,000 - $124,999 8.4%8.8% $125,000 - $149,999 6.5%6.5% $150,000 - $174,999 4.2%4.6% $175,000 - $199,999 4.3%3.1% $200,000 or more 5.4%7.9% Prefer not to say 0.7%1.7% Education Some high school 3.0%2.6% High school diploma 21.9%17.6% Some college 21.4%17.3% Associate's degree/Trade school 15.6%15.0% bachelor's degree 24.5%29.1% Advanced degree 13.7%18.4% other 0.1%0.1% Racial/Ethnic Identity White 62.6%63.4% Hispanic/latinx 14.4%12.6% black 14.2%12.4% Asian 3.2%6.5% Mixed 3.7%2.7% Middle Eastern/North African 0.3%0.5% Pacific Islander/Native Hawaiian 0.2%0.3% Native American/First Nations 1.0%0.3% other 0.2%0.3% Prefer not to answer 0.3%1.1% Page 248 of 322 AboUT NEW FRoNTIER DATA 43© New Frontier Data, All Rights Reserved. NEW FRoNTIER DATA is the premier data, analytics, and technology firm specializing in the global cannabis industry, delivering solutions that enable investors, operators, advertisers, brands, researchers, and policymakers tow, engage, and transact with the cannabis industry and its consumers. New Frontier Data's global reach and reputation is evidenced by research and analysis citations in more than 85 countries. Founded in 2014, New Frontier Data is headquartered in Washington, D.C., with presence in Europe, latin America, and Africa. Mission New Frontier Data’s mission is to inform policy and commercial activity for the global legal cannabis industry. We maintain a neutral position on the merits of cannabis legalization through comprehensive and transparent data analysis and projections that shape industry trends, dynamics, demand and opportunity drivers. Core Values Honesty Respect Understanding Vision To be the nexus of data for the global cannabis industry. Commitment to Our Clients The trusted one-stop shop for cannabis business intelligence, New Frontier Data provides individuals and organizations operating, researching, or investing in the cannabis industry with unparalleled access to actionable industry intelligence and insight, helping them leverage the power of big data to succeed in a fast-paced and dynamic market. We are committed to the highest standards and most rigorous protocols in data collection, analysis, and reporting, protecting all IP and sources, as we continue to improve transparency into the global cannabis industry. About Us Page 249 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 144 © New Frontier Data, All Rights Reserved. Report Contributors EDITOR Dr. Amanda Reiman Chief Knowledge officer New Frontier Data AUTHOR Dr. Molly McCann, Senior Director, Consumer Insights New Frontier Data CREATIVE DIRECTOR Emily Watkins Director, brand & Creative New Frontier Data DATE PUBLISHED May 2023 Copyright Copyright © 2023 by Frontier Financial Group, Inc., dba/ New Frontier Data. All rights reserved. Photocopying or reproducing this report in any form, including electronic or facsimile transmission, scanning or electronic storage, is a violation of federal copyright law and is strictly prohibited without the publisher’s express written permission. This report may not be resold. New Frontier Data only sells its publication directly or through authorized resellers. Information concerning authorized resellers may be obtained from New Frontier Data, 5614 Connecticut Ave NW, #331 Washington, DC 20015. While every effort has been made by New Frontier Data, Inc. to ensure the accuracy of information in this report, it accepts no responsibility for errors or omissions. The report is sold as is, without warranty of any kind, either express or implied, respecting its contents, including but not limited to implied warranties for the report’s quality, performance, merchantability, or fitness for any particular purpose. Neither New Frontier Data nor its dealers of distributors shall be liable to the purchaser or any other person or entity with respect to any liability, loss, or damage caused or alleged to be caused directly or indirectly by this report. Page 250 of 322 NEW FRONTIER DATA HEADQUARTERS5614 Connecticut Ave NW / Suite #331 / Washington, DC 20015 info@NewFrontierData.com 844-420-D8TA Equio.io Subscribe to the CannaBit NewFrontierData.com Page 251 of 322 COMPARING ARCHETYPES 1© New Frontier Data, All Rights Reserved. Cannabis Consumers in America Part 3: Growing the Legal Market: Expanding the Consumer Base 2023 Page 252 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 32 © New Frontier Data, All Rights Reserved. Contents Cannabis Consumers in America 2023: Part 3 5 Introduction 8 Bringing new consumers to the regulated market 13 Moving gray-market consumers to the regulated market In adult-use markets 13 In medical-only markets 22 29 Conclusion 30 Methodology 34 About Us Page 253 of 322 See Results. Get Results. Get Your First Insights Report FREE Dominate the Market with NXTeck: Unleash the Potential of 430 Million+ Mobile Ad IDs and 160 Million+ Cannabis Profiles New Frontier Data’s NXTeck tool has provided us with incredible insight into our customers. 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CO- BRANDED MARKETING W e sen d o ut f ollow up em ails t o pa tien t s w ith a c ustom i z e offer o f you r choice- d riving v i s i tor s b ack through your d oor s! EMAIL RETARGETING O n a v e r a g e m e d i c a l p a t i e n t s s p e n d $3 0 m o r e p e r t r a n s a c t i o n t h a n k s t o t a x b r e a k s a n d h i g h e r p u r c h a s e l i m i t s . Attract MoreMedical Patients cannacaredocs.com I info@cannacaredocs.com JOIN OUR FREE PARTNER PROGRAM We’ve Got You! W e c re at e c o-br an de d cou po ns, business c ards, p o sters, d oor s i gn s an d m o re t o p rom ote online an d in yo ur s t ore ! Page 255 of 322 COMPARING ARCHETYPES 5© New Frontier Data, All Rights Reserved. Introduction As states continue to grapple with the dynamics of regulation and legalization and many early-adopting consumers settle into predictable consumption and purchasing patterns, producers and retailers are becoming concerned about the sustained growth of the industry. But two key audiences remain under-addressed: potential consumers and those participating in gray markets in legal states. More than half of Americans live in a state with some form of access to high-THC cannabis. However, the illicit market continues to outperform legal state markets nationally. New Frontier Data estimated that illicit sales of cannabis surpassed $74B in 2022 while legal sales were a mere $28B. Based just on current legal states, illicit sales will continue to surpass legal market sales through 2030. Meanwhile, the legal cannabis market is embroiled in competition amongst itself to serve the pool of consumers who already rely on regulated channels. A significant opportunity lies in tapping into those dependent on unregulated channels and the millions of adults who are interested in cannabis but remain hesitant. This report delves into understanding these segments, based on data from New Frontier Data’s 2023 cannabis survey of over 5500 US adults across all market types who use a wide range of sources for cannabis. By understanding their behaviors, preferences, and concerns, the industry can better strategize its approach to invite and integrate these legacy and canna-curious audiences. From demographics to product preferences and barriers to entry, this report highlights avenues through which the cannabis market can grow by welcoming these potential participants. Page 256 of 322 An estimated 42% of US consumers* rely primarily on their home state regulated market as a source for cannabis. Most of these consumers live in adult-use markets (34%) and the rest are registered patients in medical-only markets (8%). About one quarter (24%) of US consumers have or could potentially have access to legal cannabis in their home state, but do not currently use those channels as a primary source. 17% live in adult-use markets but source cannabis primarily outside the regulated market, typically from friends, family, or dealers. The other 7% live in medical-only markets and use cannabis primarily for medical reasons, but are not registered patients and so cannot currently participate in the regulated markets in their states. These are the consumer segments discussed in this report. The remaining 34% of US cannabis consumers are either non-medical consumers in medical- only markets (11%) or live in states where cannabis remains illegal (23%). Legal reform would be necessary in order for the regulated market to serve these consumers in their home states. *Consumers are defined as individuals who have used cannabis in the past and intend to use it again in the future. CANNABIS CONSUMERS IN AMERICA 2023: PART 36 © New Frontier Data, All Rights Reserved. U.S. Cannabis Consumers Need regulatory action May be converted [MED] Use regulated market May be converted [AU] No legal marketto use in state Unregisteredrecreationalconsumers Unregisteredmedicalconsumers RegisteredpatientsUse gray market Use regulatedmarket 23% 11% 7% 8%17% 34% Page 257 of 322 Three quarters (75%) of US adults who are not cannabis consumers do not currently intend to use cannabis in the future. Most of these people have never consumed cannabis before (52%), others have used cannabis in the past (23%). While they do not currently plan to use cannabis, it is worth noting that many said they would consider using cannabis in medical circumstances, e.g., if they became ill with a condition which could be helped by cannabis or if a doctor recommended it. One quarter (25%) of non-consumers in the US said they have never used cannabis but are open to trying it in the future. 14% live in states without legal adult-use cannabis, meaning regulatory barriers exist to their immediate participation in the legal market. But 11% of non-consumers in the US express an interest in using cannabis and live in adult-use states, giving them access to legal cannabis whenever they choose to try it. This is the first population discussed in the report. COMPARING ARCHETYPES 7© New Frontier Data, All Rights Reserved. U.S. Non Consumers Never consume Formerconsumer Potential -Illicit state Potentially -Medical-onlystate Potential -Adult-use state 52% 23% 7% 7% 11% Will never consume Need regulatory action May consume legally Page 258 of 322 Relative to current cannabis consumers, potential consumers are older; nearly one quarter (24%) of potential consumers are age 65 or older, compared to only 11%. Potential consumers are more likely to be women; 51% of potential consumers are women, while 45% of current consumers are women. Potential consumers are also more likely than current consumers to live in suburban areas (54% vs. 46%). 18-24 25-34 35-44 45-54 55-64 65+ 11% 16%19%16%15% 24% 10% 23%23% 18%15% 11% Bringing new consumers to the regulated market New cannabis consumers living in adult-use states should be easily reached and served by the regulated market. Friends or family may be a source of cannabis for first-time or very infrequent new consumers, but over time, lessening stigma around cannabis and the desire for safe products of known dosage and quality will favor retail as a regular source. So who are these potential consumers? “Potential Consumers” are defined as individuals who have never used cannabis but are open to trying it in the future. In New Frontier Data’s 2023 survey, 15% of the adult general population of the U.S. were potential consumers. In this section we examine potential consumers in adult- use states—those who have legal access to cannabis whenever they should they decide to use it. In adult-use states, potential consumers account for 13% of the adult population. CANNABIS CONSUMERS IN AMERICA 2023: PART 38 © New Frontier Data, All Rights Reserved. Who are potential new consumers in adult use markets? Age Potential consumers Current consumers Page 259 of 322 In age, gender, and urbanicity, potential consumers differ from current consumers but are similar to the general population. However, potential consumers have slightly higher educational attainment and income on average than both current consumers and the general population. 53% of potential consumers have at least a bachelor’s degree (compared to 46% of current consumers), and 39% of potential consumers report a household income of $100,000 or more (compared to 32% of current consumers). Potential consumers are also disproportionately likely to be Asian. While about 8% of the general population is Asian, 17% of potential consumers are Asian, and just 4% of current consumers are Asian. High schooldiploma or less Some college Associatedegree/Tradeschool Bachelorsdegree Graduatedegree 18%16%13% 34% 19%23%20% 14% 27% 15% White Hispanic/Latinx Black Asian Mixed Race Other 56% 12%7% 17% 6%3% 61% 17%12% 4%3%2% COMPARING ARCHETYPES 9© New Frontier Data, All Rights Reserved. Education Potential consumers Current consumers Ethinicity Potential consumers Current consumers Page 260 of 322 Roughly two in five (39%) potential consumers in adult-use states described themselves as likely to try cannabis in the next 6 months. And the good news is that for any of these potential consumers who choose to begin consuming cannabis, retail is a likely and attractive source of cannabis relative to the illicit market. Retail has many strengths relative to the illicit market when it comes to attracting and meeting the needs of new consumers: Edibles Topicals Beverages Tinctures Smoking Flower Vaporizer Not Sure 76% 50% 42% 28% 18%13% 6% • Finding cannabis dispensaries and purchasing from them is straightforward, and increasingly more like any other kind of retail shopping. Dispensaries may not be able to advertise online, but are easily searchable, most with menus and product information online. • Retailers are the most likely source to offer a wide variety of product forms which appeal to new consumers. While a majority of current cannabis consumers use flower, potential consumers are generally not interested in inhalable products, preferring ingestible and topical products. Friends and dealers are unlikely to carry as wide a variety of these products as retailers. CANNABIS CONSUMERS IN AMERICA 2023: PART 310 © New Frontier Data, All Rights Reserved. Potential consumers’ beliefs and expected preferences What products forms would you be interested in trying? Page 261 of 322 The regulated cannabis retail experience and the products it offers feel more legitimate and safer than illicit options. Product safety is especially relevant for new consumers given their preference for non- inhalable products mentioned previously. Testing and labeling standards of the regulated market—especially for manufactured products—reassure new consumers, who want to know how potent their product is. There is a need for approachable, informed sources to answer questions for new consumers, and retailers are an obvious solution. Most (69%) potential consumers say they have friends or family who consume cannabis, but a third (34%) of them say they don’t know anyone they consider knowledgeable who they can ask questions about cannabis. While this looks good for converting potential consumers, there are still some major barriers to adoption for potential consumers. Most of these barriers have to do with fears, uncertainty, and safety concerns, and can be addressed by education, or will continue to fade as the remnants of prohibitionist thinking continue to subside. About two in five (37%) potential consumers said they feel apprehensive about trying cannabis. Most said they believed cannabis would make them experience positive or neutral effects (e.g. feeling relaxed, sleepy, hungry, or happy), but some potential consumers expect cannabis to make them feel disoriented, out of control, or anxious. Cannabis itself still causes concern for some potential consumers; one in eight (13%) said they feel unsafe when someone nearby has cannabis. COMPARING ARCHETYPES 11© New Frontier Data, All Rights Reserved. 62% of potential consumers believe that regulated cannabis is safer than unregulated cannabis. Page 262 of 322 New consumers must be able to find cannabis retail, both online and in physical space in the case of a brick-and-mortar locations. Familiarity is the main factor that drives customer loyalty to dispensaries, so being the first retailer a customer purchases from goes a long way to ensuring future business. All touchpoints of a retail operation must be approachable, and potential consumers should know what to expect. Understand from a potential consumer’s perspective what may seem intimidating, unwelcoming, or just unfamiliar, whether that is security operations, multi-step ID validation procedures, or being assigned a budtender, and consider where adjustments can be made. Retailers should carry a variety of product forms appropriate for new consumers. Low-dose edibles and beverages are good places to start, as are topicals and tinctures. And while it might seem obvious, many potential consumers still need to be assured that topicals are not psychoactive. Lots of information about products and how to use them should be made available—especially information geared toward new or potential consumers—for those key product types. It would be best to provide this information in written form, since new consumers might not remember spoken information, or wish to refer back to it while or before consuming their products at a later time. Potential consumers could be directed to information on a website, or better yet—since many potential consumers are over age 65—provided with physical printouts of key information. CANNABIS CONSUMERS IN AMERICA 2023: PART 312 © New Frontier Data, All Rights Reserved. Attracting potential consumers: Page 263 of 322 Notably, homegrow is a primary source of cannabis for just under 3% of frequent users in adult-use states, and is not the threat to retail cannabis that some had worried it may become pre-legalization. In adult-use states today, many dispensaries are fighting over the same pool of consumers who already participate in the regulated market. Regulated dispensaries are trying to poach consumers from nearby regulated dispensaries or delivery services from other delivery services. But the heaviest consumers are not yet participating regularly in the legal market, and though there are challenges to reaching them, converting them to the regulated market represents immense potential growth for the industry and retailers that can serve them. One quarter (27%) of consumers in adult- use markets who use cannabis at least once a month primarily source cannabis outside of regulated retail channels (typically from friends, family, or dealers). Those relying on dealers are the heaviest and most frequent consumers, and their lack of participation in the regulated market is limiting its success. COMPARING ARCHETYPES 13© New Frontier Data, All Rights Reserved. Adult-use states: Moving gray market consumers to the regulated market Page 264 of 322 Gen X frequent consumers have generally been consuming since before legalization, and many will have been sourcing from dealers since before regulated retail was an option, maybe even the same dealer they use now. This cohort is also just on the cusp of having children old enough to source on their behalf from regulated retail, which we see in frequent consumers age 55 and older, who disproportionately source from friends and family, probably of a younger generation. 18-24 24-34 35-44 45-54 55-64 65+ 10% 26%24% 19% 13% 9% 14% 21%21% 16%16% 11% 18% 22%22%22% 11% 5% “Frequent gray-market consumers” are defined as consumers who live in markets with legal adult-use states and use cannabis at least once a month but source primarily from friends/family or dealers as opposed to regulated retail channels. This section compares their behaviors and preferences to those who source from retail (brick-and-mortar or regulated delivery). CANNABIS CONSUMERS IN AMERICA 2023: PART 314 © New Frontier Data, All Rights Reserved. Male Female 56% 43% 54% 46% 66% 34% Gender Distribution Primary source from retail Primary source from Friends/Family Primary source from dealer Who are frequent gray-market consumers? Primary source from retail Primary source from Friends/Family Primary source from dealer Page 265 of 322 Frequent adult-use consumers who source from dealers are disproportionately male (66% vs. 56% average), while those who source from friends/family are slightly more likely than average to be female (46% vs. 43%). Dealers are also disproportionately used by Black frequent consumers; 34% of frequent adult-use consumers who source from dealers are Black, while only 13% of all frequent adult-use consumers are Black. Frequent adult-use consumers who source from dealers live disproportionately in urban areas, while those who source from friends/family live disproportionately in suburban and rural areas. White Hispanic/Latinx Black Asian Mixed Race Other 59% 20% 11% 4%4%2% 61% 16%15% 3%4%2% 43% 13% 34% 4%4%1% COMPARING ARCHETYPES 15© New Frontier Data, All Rights Reserved. Racial/Ethnic Identity Distribution Urban Suburban Rural 41%44% 13% 38% 47% 16% 53% 40% 8% Urbanicity Distribution Primary source from retail Primary source from Friends/Family Primary source from dealer Primary source from retail Primary source from Friends/Family Primary source from dealer Page 266 of 322 Among at-least-monthly consumers in adult-use markets, a clear pattern of sourcing and use frequency emerges; those who source from dealers tend to be the most frequent users (56% use multiple times per day). For those using this frequently, cost is a major concern (dealers are cheaper than retail). The next most frequently consuming sourcing group is those who shop primarily at retail (the plurality—40%—use once every day or two). These consumers use often enough to want to select their own products, as opposed to less frequently consuming friend/ family sourcers (37% use between once a week and once a month), who use infrequently enough that they trust product selection to others. Multiple times per day Once everyday or two Once per week - once per month 36%40% 24% 32%30% 37% 56% 31% 13% Differences in behavior and preference by source Frequent adult-use consumers who source from dealers have lower household incomes than those who source from friends/family, who have lower incomes on average than those who source primarily from retail. Under 50,000 50,000 - 99,999 100,000 - 149,999 150,000+ 33%34% 17%15% 44% 25% 14%16% 46% 31% 11%10% CANNABIS CONSUMERS IN AMERICA 2023: PART 316 © New Frontier Data, All Rights Reserved. Use Frequency Primary source from retail Primary source from Friends/Family Primary source from dealer Annual Household Income Distribution Primary source from retail Primary source from Friends/Family Primary source from dealer Page 267 of 322 Frequent adult-use consumers who source from dealers are the most likely of the three sourcing groups to see themselves as recreational (as opposed to medical) consumers, with 79% describing their cannabis consumption as recreational. Those who source from friends/family are also more likely than frequent consumers on average (67% vs. 62%) to consider their cannabis use recreational. It’s not clear the extent to which the source used affects a consumer’s self-image of whether their use is medical or recreational. 59% 67% 79% Frequent consumers who source from dealers report using cannabis for many widely varying reasons, from stress relief to stimulating creativity and increasing focus and attention. They describe wanting cannabis to make them feel happy, focused, and creative. These consumers may be using cannabis for productivity, some perhaps to manage ADHD. On the other hand, frequent consumers who source from friends/family seem to use cannabis disproportionately to relax and socialize, and are the most likely group to also drink alcohol while consuming cannabis. Frequent consumers who source from dealers are the most likely of the three sourcing groups to say that their cannabis use is an important part of their identity. This is unsurprising given how frequently and for how many different reasons they tend to use cannabis, but it is unclear whether purchasing cannabis specifically from a dealer also contributes to their sense of identity. Frequent consumers who source from friends/ family are less likely than consumers on average to consider their cannabis use an important part of their identity. COMPARING ARCHETYPES 17© New Frontier Data, All Rights Reserved. Self-Identify as Recreational Consumers Primary source from retail Primary source from Friends/Family Primary source from dealer Primarily source from retail Primarily source from friends/family Primarily source from dealer 41% 33% 47% Using cannabis is an important part of my identity Primary source from retail Primary source from Friends/Family Primary source from dealer Page 268 of 322 Frequent consumers who source from dealers acquire cannabis much more frequently on average than their counterparts, and tend to spend less per purchase occasion. Consumers who source primarily from retail spend more on a typical purchase occasion than those who source from dealers or friends/family. Much of this difference in spending is probably a result of taxes and a higher basket share of manufactured products for retail shoppers. 48%45% 66% Less than $50 $50 - $199 $200+ 34% 60% 6% 45%49% 6% 48% 42% 9% CANNABIS CONSUMERS IN AMERICA 2023: PART 318 © New Frontier Data, All Rights Reserved. Acquire cannabis at least once per week Primary source from retail Primary source from Friends/Family Primary source from dealer Typical spend per purchase occasion Primary source from retail Primary source from Friends/Family Primary source from dealer Page 269 of 322 Primarily source from retail Primarily source from Family/ Friends Primarily source from dealer 43% 50%58% COMPARING ARCHETYPES 19© New Frontier Data, All Rights Reserved. Friends/family as a source: It’s complicated. In adult-use markets, because retail is a widely used source, much of the product consumers receive from friends/family likely originates from the regulated market. For example, many consumers may add a topical to a delivery order to give to an older relative, or purchase extra edibles at the dispensary to share with friends at an upcoming social gathering. We don’t know exactly what share of product sourced from friends/family originated from the regulated market, but we know that frequent consumers who source from dealers are more likely than those who source from retail to supply friends/family with cannabis, and that they do so with greater frequency. Do you supply your friends/family with cannabis? Primary source from retail Primary source from Friends/Family Primary source from dealer Page 270 of 322 Smoked Flower Edibles Vape Pens Tinctures/ Capsules/ Sublinguals Dabs/ Concentrates 57% 22% 12% 3%3% 70% 14%8%1%2% 83% 4%6%3%2% A majority of all frequent consumers say that smoked flower is the form of cannabis they use most often, but there are differences in how large that majority is by which source consumers primarily use. 83% of frequent consumers who source from dealers consume flower most frequently, compared to 70% of those sourcing primarily from friends/family and 57% of those sourcing primarily from retail. Under 1 gram 1 gram - 1/8 oz. 1/8 oz. - 1/4 oz. 1/4 oz. - 1/2 oz. 1/2 oz. - 1 oz. More than 1 oz. 7% 17% 21% 18% 14%15% 10% 17%19% 16% 12%13% 0% 13%12% 20% 11% 32% This tendency toward flower among consumers sourcing from friends/family and especially dealers is likely a result of both preference and access. Consumers sourcing from friends/ family and dealers report very limited access to any forms of cannabis other than flower or prerolls. Some of those who don’t primarily source from retail will occasionally shop from retail, probably in response to limited access Those sourcing primarily from dealers also consume the highest volume of cannabis flower per month by a wide margin: roughly a third (32%) consume more than an ounce of dried flower per month, while only 15% of those sourcing from retail and 13% of those sourcing from friends consume as much. from their primary source. About 1/5 (18%) of frequent adult-use consumers who source from dealers and 1/4 (24%) who source from friends/family say they also sometimes purchase cannabis from regulated dispensaries. These are likely the purchase occasions when consumers are buying manufactured (non- flower) products which are unavailable or have limited selection from their typical source. CANNABIS CONSUMERS IN AMERICA 2023: PART 320 © New Frontier Data, All Rights Reserved. Most Frequently Used Product Form Primary source from retail Primary source from Friends/Family Primary source from dealer Volume of Flower Consumed per Month Primary source from retail Primary source from Friends/Family Primary source from dealer Page 271 of 322 Converting frequent gray-market consumers Retail pricing must be competitive with the gray market. This is the most important factor in combatting the gray market in adult-use states. Frequent consumers who rely on dealers to source cannabis in adult-use markets have significantly lower incomes on average than consumers who source from friends/family, and both groups have lover household income on average than cannabis retail shoppers. Retailers should aim to have products at a variety of price points and offer promotions or loyalty discounts where possible. Regulatory and taxation structure set a floor for pricing, so achieving competitive prices in some states with exceptionally high taxes on legal cannabis may require regulatory revision. Retailers must offer a variety of product forms, and options within each product category. Fewer than half of all consumers report having access to any forms of cannabis other than flower, prerolls, and edibles, even in adult use states. Between one fifth and one quarter of frequent consumers in adult use markets who source primarily from friends/family or dealers do shop at regulated dispensaries occasionally; these visits are most likely to acquire manufactured (non-flower) products, which the majority use in addition to flower. Retailers should take advantage of these visits to promote affordable flower products, for example bundled with manufactured products those consumers visit retail to purchase. Product quality must be superior to— or at least competitive with—the gray market. Much of the gray-market flower that is available around the country is grown in California and is of high quality. In addition to competing on price, retail cannabis flower quality must be comparable to that on the gray market. This is particularly true for frequent consumers who source from dealers, as they consume more purposefully and frequently than those who source from friends/family. Retail channels must be in accessible locations/cover underserved areas. Frequent consumers who primarily source from dealers live disproportionately in urban areas, where they may or may not have convenient transportation to dispensaries. They tend to have lower incomes and purchase cannabis in smaller dollar amounts than retail shoppers but consume very often and so would need to be able to make frequent trips to a dispensary. This all means that unless the dispensary is in a very convenient location, achieving loyalty from such a customer would be difficult. Similarly, frequent consumers who source primarily from friends/family live in disproportionately rural areas, where there may be no nearby dispensaries, and where there may be no delivery coverage. Both regulators and businesses should take these factors into account when determining zoning guidelines or potential dispensary locations or delivery coverage areas. COMPARING ARCHETYPES 21© New Frontier Data, All Rights Reserved. Page 272 of 322 Medical-only states: Moving gray market consumers to the regulated market We know that expanding access to cannabis is a powerful tool to encourage illicit consumers to take advantage of legal channels. So the most effective way to grow the legal cannabis markets in medical-only states would of course be to legalize adult-use cannabis, a trend which dozens of states have followed in the last decade after observing the benefits of regulation play out in other markets. But short of legalizing adult use, medical-only markets still have room to grow. In medical-only states, there are many consumers who describe their cannabis use as medical (as opposed to recreational) but who are not registered patients and are therefore consuming outside the regulated market. This segment will be called “unregistered medical consumers”. Roughly half (48%) of all self-identified medical consumers in medical-only markets are unregistered medical consumers, despite the majority (65%) of them using cannabis to manage a specific diagnosed medical condition. Who are unregistered medical consumers? …and how do they differ from registered medical patients? Among self-described medical consumers in medical-only states… • those over 45 years old are less likely than those under 45 to be registered patients. • women are less likely than men to be registered patients • those in rural and suburban areas are less likely than those in urban areas to be registered. • those with annual household income under $50,000 are less likely than higher earners to be registered. Considering state-specific regulations is necessary when determining what actions may effectively capture more of the unregulated medical use in a market. Medical-only state cannabis programs vary widely in terms of recognized conditions, costs of participation, and philosophy of the program. CANNABIS CONSUMERS IN AMERICA 2023: PART 322 © New Frontier Data, All Rights Reserved. Page 273 of 322 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 + 9% 27%29% 16% 13% 6%7% 26% 19%21% 15%14% Under $50,000 $50,000 - $99,999 $100,000 - $149,000 $150,000 or higher 29% 39% 17%15% 40% 32% 14%13% COMPARING ARCHETYPES 23© New Frontier Data, All Rights Reserved. Age Distribution Annual Household Income Registered medical consumers Unregistered medical consumers Registered medical consumers Unregistered medical consumers Page 274 of 322 Unregistered medical consumers’ behaviors and preferences Acquired cannabis out-of-state to consume there Acquired cannabis out-of-state to bring home Acquired cannabis out-of-state and shipped it home Had someone bring them cannabis from another state Had someone ship them cannabis from another state 16% 12% 7%8% 5% Sourcing: Because regulated retail is not an option for unregistered medical consumers, the plurality (38%) source primarily from friends or family. Even if that friend or family member is purchasing directly from a cannabis retailer (more often they are sourcing from an illicit dealer), this chain of sourcing represents limited choice for the end user. The unregistered medical consumer would likely spend more, find more suitable products, and develop more loyalty to both brands and retail sources if they were able to come into a dispensary, ask any questions, see the available options, select their own products, and feel they were seen and their needs were heard. Currently, more than a quarter (27%) of unregistered medical consumers acquire cannabis from out of state, presumably because they would rather have a retail experience described above—plus assurances about dosage and safety—than acquire in their home state from a dealer with less selection and less information about the products. Retail and consumers will benefit if unregistered medical consumers are transitioned to the regulated market. CANNABIS CONSUMERS IN AMERICA 2023: PART 324 © New Frontier Data, All Rights Reserved. Out-of-state Cannabis Acquisition 27% acquire cannabis from out of state. Page 275 of 322 Multiple times per day Once every day or two Once a week - once a month Once to a few times per year 23% 37% 23% 18% 26%29% 22%23% Depending on their home state, many unregistered medical consumers may have a chance of being granted registered patient status, based on their specific health conditions and which conditions are recognized in their state cannabis regulations. Furthermore, unregistered medical consumers are high-value potential consumers for retailers compared to their recreational counterparts, unregistered recreational consumers. Unregistered medical consumers use and acquire cannabis more frequently, spend more per purchase, and have a relative preference for manufactured forms (for which there tend to be higher markups and higher brand loyalty). Use Frequency: Unregistered medical consumers use cannabis more frequently on average than their recreational counterparts. 59% of unregistered medical consumers use at least every other day, compared to 54% of unregistered recreational consumers. COMPARING ARCHETYPES 25© New Frontier Data, All Rights Reserved. Use Frequency Unregistered medical consumers Unregistered recreational consumers Page 276 of 322 Flower is still the most widely used form for unregistered medical consumers —which may be related to their constricted access to other manufactured forms. It is reasonable to assume that rates of use of other forms would increase if unregistered medical consumers gained access to a variety of those products in a retail setting. 80% of unregistered medical consumers use at least one nonflower form of cannabis, compared to 65% of unregistered recreational consumers. Smokeable forms Edibles Topicals/transdermals Vape pen Tinctures Dabs/concentrates Infused beverages Pills/capsules Tabletop vaporizers 87% 51% 11% 28% 8% 16% 9% 5% 3% 66% 54% 29% 28% 19% 19% 11% 9% 5% CANNABIS CONSUMERS IN AMERICA 2023: PART 326 © New Frontier Data, All Rights Reserved. Forms Used Unregistered medical consumers Unregistered recreational consumers Product Forms Page 277 of 322 Acquisition & Spending: Unregistered medical consumers acquire cannabis more frequently than unregistered recreational consumers (72% and 66% respectively acquire at least monthly). Unregistered medical consumers also spend slightly more per purchase on average (50% of unregistered medical consumers spend $50 or more per purchase, compared to 45% or unregistered recreational consumers). In addition to retail and the industry benefitting, most unregistered medical consumers would also benefit from having access to retail cannabis, which compared to other in-state source options (friends and dealers) offers wider product options, safer products, and more accurate dosage information—all especially important considerations for manufactured products and medical-purpose use. The same principles apply here as in the previous section about converting gray market consumers in adult-use states, particularly: • Retail pricing must be competitive with the gray market. • Retail channels must be in accessible locations/ cover underserved areas. • Retailers must offer a variety of product forms, and options within each product category. When comparing self-described medical consumers who are registered patients in medical- only markets versus those who are not registered, the unregistered consumers have lower incomes on average and are more likely to live outside of urban areas than the registered patients. Among all unregistered consumers in medical-only markets, those who consider themselves medical consumers are more likely to use nonflower products than those who think of themselves as recreational consumers. To meet their medical needs and make it worth the trouble of going through the registration process, they would need access to a variety of product forms (especially edibles, topicals, vapes, and tinctures) in addition to flower. COMPARING ARCHETYPES 27© New Frontier Data, All Rights Reserved. Reaching unregistered medical consumers Page 278 of 322 But retailers alone can effect limited change in medical patient registration rates in medical-only states; actions taken by regulators, public health officials, and physicians could be far more influential: A state’s list of qualifying medical conditions must be inclusive of common conditions and symptoms which research affirms can be managed or improved by cannabis. Chronic pain and anxiety are some of the most widely experienced medical conditions in the country, and medical research has found that symptoms can be managed effectively by cannabis in many situations, yet not all states recognize these as eligible conditions in their medical programs. Regulators must consider the cost—in time and money—of becoming a registered patient. Requiring too many trips to the doctor, specialist consultations, or excessive fees severely limits which patients can have access to cannabis as medicine (but not who can access it on the illicit market). Many patients who would benefit greatly from medical cannabis—especially as a less expensive alternative to other medication—are not able to afford navigating the many steps required of them to obtain a medical registration card. States should also consider how long patient registration is valid—for example only requiring registrations to be renewed every two or three years for chronic conditions instead of annually. Medical and nursing schools must teach comprehensive, up-to-date research and findings related to medical cannabis. While there is cannabis-related continuing medical education (CME) available in many states, it is not required and usually only appeals to physicians already knowledgeable or interested in medical cannabis. Despite such widespread use—including medical use of cannabis—many prospective doctors can still complete medical school without studying recent literature on cannabis. CANNABIS CONSUMERS IN AMERICA 2023: PART 328 © New Frontier Data, All Rights Reserved. Page 279 of 322 The legal cannabis landscape is teeming with growth opportunities, yet its full potential can only be realized by reaching out to the currently untapped segments of potential and gray-market consumers. It can be tempting for operators to focus primarily on consumers already engaging with the legal market, but the insights presented here underscore the importance of understanding the distinct preferences, concerns, and barriers these groups face. By offering competitive pricing, accessible retail locations, varied product forms, and a dedicated focus on educating the public about the advantages of regulated cannabis, the industry can foster trust and broaden its consumer base. Many of these illicit consumers might not have found their favorite product form or settled into a consumption pattern that best meets their unique use case. Canna-curious individuals who haven’t even experienced cannabis yet might require a knowledgeable budtender to discuss their needs to walk them through their options. Moreover, collaboration with regulators and medical professionals can bridge gaps in access and knowledge. As the cannabis market continues to evolve, embracing these strategies will be paramount for ensuring not only its commercial success but also its role in promoting safe and informed consumption. After all, a rising tide lifts all boats. COMPARING ARCHETYPES 29© New Frontier Data, All Rights Reserved. Conclusion Page 280 of 322 New Frontier Data designed and conducted an online survey to assess cannabis consumer attitudes, perceptions, and consumption across legal and unregulated markets in the United States. Survey themes included: cannabis use, purchasing behavior and decision influencers, product preferences and expenditures, beliefs about cannabis, and other consumption behaviors. U.S. adults who were not cannabis consumers were also surveyed about potential future cannabis use, and beliefs and attitudes about cannabis, and social and personal connections to cannabis consumers. Sampling was demographically representative of the adult population in the United States. Analyses were conducted among 4,358 cannabis consumers – respondents who indicated that they consumed cannabis in the past, and will consume it again, as well as 1,176 non-consumers. The survey was conducted in Q1 2023. CANNABIS CONSUMERS IN AMERICA 2023: PART 330 © New Frontier Data, All Rights Reserved. Methodology SURVEY OVERVIEW Methodology Online Survey Sample Size Total Respondents 5,534 Consumers 4,358 Non-Consumers 1,176 Fielding Dates February 17-26, 2023 Mean Duration 16 minutes Margin of Error Consumers ±1.48% Non-Consumers ±2.86% Page 281 of 322 COMPARING ARCHETYPES 31© New Frontier Data, All Rights Reserved. SAMPLE DESCRIPTIVES SURVEY SAMPLE DEMOGRAPHICS CURRENT CONSUMERS NON CONSUMERS Sample Size 3867 1176 Age 18-24 10.1%10.7% 25-34 23.8%12.2% 35-44 23.1%13.4% 45-54 17.7%16.8% 55-64 15.0% 18.5% 65+10.3% 28.5% Gender Male 54.2% 45.0% Female 45.6% 55.0% Nonbinary/other 0.2%0.0% Home State Cannabis Market Adult-use 52.1% 43.9% Medical only 25.3% 26.8% Illicit 22.6% 29.3% User Type Self-Identification Only medical 14.8% n/a Primarily medical 27.7% n/a Primarily recreational 25.2% n/a Only recreational 32.4% n/a Page 282 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 332 © New Frontier Data, All Rights Reserved. SAMPLE DESCRIPTIVES... CONT Education Some high school 3.0% 2.6% High school diploma 21.9% 17.6% Some college 21.4% 17.3% Associate's degree/Trade school 15.6% 15.0% Bachelor's degree 24.5% 29.1% Advanced degree 13.7% 18.4% Other 0.1%0.1% Household Annual Gross Income Under $25,000 16.7% 15.2% $25,000 - $49,999 20.6% 21.9% $50,000 - $74,999 19.2% 17.3% $75,000 - $99,999 14.0% 13.0% $100,000 - $124,999 8.4% 8.8% $125,000 - $149,999 6.5% 6.5% $150,000 - $174,999 4.2% 4.6% $175,000 - $199,999 4.3% 3.1% $200,000 or more 5.4% 7.9% Racial/Ethnic Identity White 62.6%63.4% Hispanic/Latinx 14.4%12.6% Black 14.2%12.4% Asian 3.2%6.5% Mixed 3.7%2.7% Middle Eastern/North African 0.3%0.5% Pacific Islander/Native Hawaiian 0.2%0.3% Native American/First Nations 1.0%0.3% Other 0.2%0.3% Prefer not to say 0.3%1.1% Page 283 of 322 COMPARING ARCHETYPES 33© New Frontier Data, All Rights Reserved. Report Contributors EDITOR Dr. Amanda Reiman Chief Knowledge Officer New Frontier Data AUTHOR Dr. Molly McCann, Senior Director, Consumer Insights New Frontier Data CREATIVE DIRECTOR Neeve Cole Graphic Designer New Frontier Data DATE PUBLISHED January 2024 Copyright Copyright © 2023 by Frontier Financial Group, Inc., dba/ New Frontier Data. All rights reserved. Photocopying or reproducing this report in any form, including electronic or facsimile transmission, scanning or electronic storage, is a violation of federal copyright law and is strictly prohibited without the publisher’s express written permission. This report may not be resold. New Frontier Data only sells its publication directly or through authorized resellers. Information concerning authorized resellers may be obtained from New Frontier Data, 5614 Connecticut Ave NW, #331 Washington, DC 20015. While every effort has been made by New Frontier Data, Inc. to ensure the accuracy of information in this report, it accepts no responsibility for errors or omissions. The report is sold as is, without warranty of any kind, either express or implied, respecting its contents, including but not limited to implied warranties for the report’s quality, performance, merchantability, or fitness for any particular purpose. Neither New Frontier Data nor its dealers of distributors shall be liable to the purchaser or any other person or entity with respect to any liability, loss, or damage caused or alleged to be caused directly or indirectly by this report. Page 284 of 322 CANNABIS CONSUMERS IN AMERICA 2023: PART 334 © New Frontier Data, All Rights Reserved. NEW FRONTIER DATA is the premier data, analytics, and technology firm specializing in the global cannabis industry, delivering solutions that enable investors, operators, advertisers, brands, researchers, and policymakers tow, engage, and transact with the cannabis industry and its consumers. New Frontier Data's global reach and reputation is evidenced by research and analysis citations in more than 85 countries. Founded in 2014, New Frontier Data is headquartered in Washington, D.C., with presence in Europe, Latin America, and Africa. Mission New Frontier Data’s mission is to inform policy and commercial activity for the global legal cannabis industry. We maintain a neutral position on the merits of cannabis legalization through comprehensive and transparent data analysis and projections that shape industry trends, dynamics, demand and opportunity drivers. Core Values Honesty Respect Understanding Vision To be the nexus of data for the global cannabis industry. Commitment to Our Clients The trusted one-stop shop for cannabis business intelligence, New Frontier Data provides individuals and organizations operating, researching, or investing in the cannabis industry with unparalleled access to actionable industry intelligence and insight, helping them leverage the power of big data to succeed in a fast-paced and dynamic market. We are committed to the highest standards and most rigorous protocols in data collection, analysis, and reporting, protecting all IP and sources, as we continue to improve transparency into the global cannabis industry. About Us Page 285 of 322 COMPARING ARCHETYPES 35© New Frontier Data, All Rights Reserved. ADVERTISEMENT D I S C O V E R W H A T T Y P E O F C A N N A B I S W O R K S B E S T F O R Y O U C L I C K H E R E $1 0 O F F Y O U R M E D E V A L U A T I O N D O W N L O A D T E T R A G R A M A P P F R E E P R O M O C O D E :T E T R A G R A M 1 0 Page 286 of 322 NEW FRONTIER DATA HEADQUARTERS5614 Connecticut Ave NW / Suite #331 / Washington, DC 20015 info@NewFrontierData.com 844-420-D8TA Equio.io Subscribe to the CannaBit NewFrontierData.com Page 287 of 322 Page 288 of 322 Page 289 of 322 Page 290 of 322 Page 291 of 322 Page 292 of 322 Page 293 of 322 Page 294 of 322 Page 295 of 322 Page 296 of 322 Page 297 of 322 Page 298 of 322 Page 299 of 322 Page 300 of 322 ! i V) - --_t\r.v : u ■ Page 301 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 11.5 Meeting Date November 3, 2025 Prepared By Lauren Wipper, Human Resources Manager Item Description Compensation Plan Update Reviewed by Cal Portner Tina Allard Action Requested Discuss and provide staff direction. Background/Discussion City Council directed staff to perform a market study. Staff is prepared to discuss the results of this study. The League of Minnesota Cities maintains a database each year for cities to update their wage and benefit plans. We also requested compensation plans from our peer cities to ensure accuracy. For positions not covered by our peers (wastewater primarily), we surveyed other cities outside the Met Council counties near the Twin Cities for comparative data. Financial Impact Dependent upon Council direction. Mission/Policy/Goal The Elk River Mission statement. Attachments 1. Jennie's Jeans Page 302 of 322 How to Build a Pay Plan Page 303 of 322 3 Considerations 1.Pay Equity Act §Report to state every 3 years 2.External Market/Comparables 3.Internal Equity Andover Anoka Champlin Cottage Grove Farmington Fridley Hastings Prior Lake Ramsey Rosemount Savage White Bear Lake Page 304 of 322 2006 contracted with Rod Kelsey for comp study Methodology uses 5 factors: 1.Formal Preparation and Experience 2.Decision Making Impact 3.Thinking Challenges and Problem Solving 4.Interactions and Communications 5.Work Environment Page 305 of 322 Pay Plan Design Page 306 of 322 Pay Plan Design Page 307 of 322 Pay Plan Design Page 308 of 322 2007 Implemented Rod Kelsey study 2017 Review all positions, market study, redesigned pay plan 2022 Market study 2025 Market study Page 309 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 11.6 Meeting Date November 3, 2025 Prepared By Cal Portner, City Administrator Item Description 2026 Budget Reviewed by Lori Stich Joe Stremcha Cal Portner Tina Allard Action Requested Discuss and provide staff direction. Background/Discussion At the last budget work session, the Council consensus was to approve a preliminary levy at the rate of 7.9% and seek additional budget adjustments to decrease the rate. ERMU has discussed an increase in the Payment in Lieu of Taxes provided each year to the city. The city has been informed that it will no longer qualify for Local Government Aid, which has been utilized to fund capital replacements. The Council will need to consider that revenue replacement, as well as how to discontinue fund transfers from enterprise and capital funds to fund General Fund operations sustainably. Financial Impact The Preliminary Levy approved in September amounts to a $77 annual city property tax increase ($6.42 monthly) on the median valued home in Elk River ($369,200). Total city taxes would amount to approximately $120 per month for city services. Mission/Policy/Goal The City of Elk River Mission and Vision Statements Attachments 1. 2026 Property Tax impacts 2. 2025-26 Rev/Exp Comparison 3. 2026 Preliminary Budget 4. 2026 Preliminary Levy Page 310 of 322 CITY OF ELK RIVERESTIMATED TAX IMPACT Residential (Homestead): With Valuation Change Impact Tax Capacity Rate Value 39.524%40.359%Percent 2025 2026 Change 2025 2026 2025 2026 2025 2026 change $296,500 $296,600 0.0%$19,865 $19,856 $2,766 $2,767 $1,093 $1,117 $24 $2.00 2.2% $344,200 $344,500 0.1%$15,572 $15,545 $3,286 $3,290 $1,299 $1,328 $29 $2.42 2.2% $346,800 $349,900 0.9%$15,338 $15,059 $3,315 $3,348 $1,310 $1,351 $41 $3.42 3.1% $388,900 $394,500 1.4%$11,549 $11,045 $3,774 $3,835 $1,491 $1,548 $57 $4.75 3.8% $469,500 $473,200 0.8%$4,295 $3,962 $4,652 $4,692 $1,839 $1,894 $55 $4.58 3.0% $571,100 $571,300 0.0%$0 $0 $5,711 $5,713 $2,257 $2,306 $49 $4.08 2.2% $606,300 $615,800 1.6%$0 $0 $6,063 $6,158 $2,396 $2,485 $89 $7.42 3.7% $358,100 $369,200 3.1%$14,321 $13,322 $3,438 $3,559 $1,359 $1,436 $77 $6.42 5.7% ** Median Value Home Commercial/Industrial: Tax Capacity Rate Value 39.524%40.359%Percent 2025 2026 Change 2025 2026 2025 2026 change $2,130,000 $2,355,200 10.6%$41,850 $46,354 $16,541 $18,708 $2,167 $180.58 13.1% $3,531,900 $3,896,300 10.3%$69,888 $77,176 $27,623 $31,147 $3,524 $293.67 12.8% $5,054,400 $5,426,200 7.4%$100,338 $107,774 $39,658 $43,497 $3,839 $319.92 9.7% $1,555,900 $1,688,200 8.5%$30,368 $33,014 $12,003 $13,324 $1,321 $110.08 11.0% $2,500,000 $2,500,000 0.0%$49,250 $49,250 $19,466 $19,877 $411 $34.25 2.1% Estimated City Tax Estimated Property Value Property Value Estimated City Tax Estimated Value Market Value Exclusion * As property value increases, the market value exclusion is phased out at $517,200 & over. (This is an increase from $413,800 & over in 2024.) Dollar Change ANNUAL MONTHLY ANNUAL MONTHLY Dollar Change Tax Capacity Tax Capacity Value Page 311 of 322 2024 6/30/2025 2025 2026 INCREASE/% ACTUAL YTD BUDGET BUDGET (DECREASE)CHANGE 12/31/2024 6/30/2025 12/31/2025 12/31/2026 TAXES 101-3-0000-3111 Current Ad Valorem Taxes 14,819,897 5,616,859 15,626,050 16,864,450 1,238,400 7.9% 101-3-0000-3121 Gravel Tax 168,050 15,290 225,000 220,000 (5,000)-2.2% Total Taxes 15,055,586 5,635,539 15,851,050 17,084,450 1,233,400 7.8% LICENSES & PERMITS 101-3-0000-3211 Liquor License 82,520 82,121 82,000 85,000 3,000 3.7% 101-3-0000-3212 THC License 4,000 650 5,000 5,000 0 0.0% 101-3-0000-3213 Cigarette License 3,800 150 4,000 4,000 0 0.0% 101-3-0000-3214 Rental License 47,880 17,400 65,000 65,000 0 0.0% 101-3-0000-3216 Mining License 26,888 27,006 26,000 27,000 1,000 3.8% 101-3-0000-3217 Garbage Hauler License 3,335 580 2,500 2,500 0 0.0% 101-3-0000-3218 Other Business License/Permit 21,628 9,050 16,000 18,000 2,000 12.5% 101-3-0000-3229 NPDES Permit 16,800 9,625 23,000 17,000 (6,000)-26.1% 101-3-0000-3231 Building Permit 432,043 334,652 550,000 550,000 0 0.0% 101-3-0000-3232 Plumbing/Heating Permit 113,621 132,890 175,000 180,000 5,000 2.9% 101-3-0000-3233 Permit Surcharge 3,088 3,510 700 700 0 0.0% 101-3-0000-3235 Animal License 450 325 0 500 500 0.0% 101-3-0000-3237 Other Non-Business Lic/Permit 12,942 32,664 25,000 30,000 5,000 20.0% Total Licenses & Permits 768,995 650,623 974,200 984,700 10,500 1.1% INTERGOVERNMENTAL REVENUES 101-3-0000-3322 MV Credit 5,360 0 6,000 6,000 0 0.0% 101-3-0000-3323 Fire State Aid 329,633 0 275,000 300,000 25,000 9.1% 101-3-0000-3325 Police 2% Aid 414,088 0 414,000 425,000 11,000 2.7% 101-3-0000-3326 Police Training Reimb 31,423 0 35,000 35,000 0 0.0% 101-3-0000-3329 State Crime Prevention Grant 128,329 28,114 48,000 50,000 2,000 4.2% Total Intergovernmental Revenues 921,230 41,903 778,000 816,000 38,000 4.9% CHARGES FOR SERVICES 101-3-0000-3412 Planning & Zoning Fees 29,435 22,277 25,000 25,000 0 0.0% 101-3-0000-3413 Plan Check Fee 184,004 158,814 230,000 230,000 0 0.0% 101-3-0000-3415 Special Assessment Search 210 150 500 500 0 0.0% 101-3-0000-3417 Copies 1,284 677 1,500 1,500 0 0.0% 101-3-0000-3430 Lockout Fees 2,228 880 3,500 3,000 (500)-14.3% 101-3-0000-3431 Police Services 50,692 5,275 46,000 50,000 4,000 8.7% 101-3-0000-3432 School Liaison 195,965 194,021 185,000 200,000 15,000 8.1% 101-3-0000-3434 Animal Impound Fee 500 550 500 500 0 0.0% 101-3-0000-3436 Fire Contracts 470,798 253,422 465,750 480,050 14,300 3.1% 101-3-0000-3437 Fire Services 7,009 0 3,000 5,000 2,000 66.7% 101-3-0000-3451 Street Services 37,738 16,944 35,000 35,000 0 0.0% 101-3-0000-3452 Engineering Services Reimb 11,999 0 20,000 20,000 0 0.0% 101-3-0000-3461 Recreation Fees 49,424 35,332 52,500 52,500 0 0.0% 101-3-0000-3462 Sr Center Activities 46,450 27,924 47,500 55,500 8,000 16.8% 101-3-0000-3463 Farmer's Market 57,987 28,378 15,000 15,000 0 0.0% 101-3-0000-3469 Elk RiverFest 23,028 6,590 20,000 15,000 (5,000)-25.0% 101-3-0000-3472 Park Use Fee 83,509 44,140 76,900 77,000 100 0.1% 101-3-0000-3483 Sewer Inspection Fee 17,515 7,630 15,000 15,000 0 0.0% 101-3-0000-3484 Contractor License Check 1,060 580 1,200 1,200 0 0.0% Total Charges for Services 1,271,008 803,724 1,243,850 1,281,750 37,900 3.0% FINES & FORFEITS 101-3-0000-3510 Court Fines 173,459 66,586 155,000 170,000 15,000 9.7% Total Fines & Forfeits 176,559 66,586 155,000 170,000 15,000 9.7% OTHER REVENUE 101-3-0000-3621 Interest Income 235,657 69,523 175,000 200,000 25,000 14.3% 101-3-0000-3625 Refunds & Reimbursements 199,996 248,667 150,000 175,000 25,000 16.7% 101-3-0000-3626 Contributions 26,250 26,000 26,000 27,000 1,000 3.8% 101-3-0000-3629 Miscellaneous Revenue 15,298 5,712 10,000 12,000 2,000 20.0% Total Other Revenue 477,201 349,901 361,000 414,000 53,000 14.7% TRANSFERS IN 101-3-0000-3926 Transfer-Capital Outlay Reserv 97,500 0 95,000 89,000 (6,000)-6.3% 101-3-0000-3942 Transfer-WWTS 175,000 0 180,000 187,200 7,200 4.0% 101-3-0000-3943 Transfer-Liquor 1,000,000 0 850,000 850,000 0 0.0% 101-3-0000-3944 Transfer-Garbage 58,000 0 60,000 62,400 2,400 4.0% 101-3-0000-3945 Transfer-Utilities 1,400,000 583,620 1,450,000 1,500,000 50,000 3.4% 101-3-0000-3946 Transfer-Stormwater 135,000 0 125,000 130,000 5,000 4.0% 101-3-0000-3948 Transfer-EDA 46,000 0 48,000 49,900 1,900 4.0% 101-3-0000-3949 Transfer-HRA 37,500 0 39,000 40,550 1,550 4.0% Total Transfers In 2,953,568 583,620 2,847,000 2,909,050 62,050 2.2% Total Revenues 21,724,060 8,131,896 22,210,100 23,659,950 1,449,850 6.5% Page 312 of 322 2025 2026 Increase/% BUDGET PRELIMINARY (Decrease)Change 12/31/2025 12/31/2026 PERSONNEL SERVICES Total 4101 - Regular Pay 11,540,150.00 12,125,050.00 584,900 5.1% Total 4102 - Overtime Pay 263,500.00 263,500.00 0 0.0% Total 4103 - Part-time Pay 712,500.00 848,000.00 135,500 19.0% Total 4104 - PERA 1,394,700.00 1,488,050.00 93,350 6.7% Total 4105 - FICA 472,650.00 489,850.00 17,200 3.6% Total 4106 - Other Retirement Contr 305,000.00 330,000.00 25,000 8.2% Total 4107 - Medicare 181,500.00 191,350.00 9,850 5.4% Total 4108 - Insurance 1,658,750.00 1,734,750.00 76,000 4.6% Total 4109 - Workers Comp 470,250.00 499,650.00 29,400 6.3% Total 4110 - Unemployment Benefits 0.00 0.00 0 0.0% Total 4112 - PFML 0.00 65,100.00 65,100 0.0% Total 4334 - Car Allowance 9,600.00 9,600.00 0 0.0% Total Personnel Services 16,999,000.00 18,044,900.00 1,045,900 6.2%*requested positions are still in here SUPPLIES Total 4201 - Office Supplies 35,250.00 21,700.00 (13,550)-38.4% Total 4212 - Fuels & Lubes 273,500.00 268,650.00 (4,850)-1.8% Total 4217 - Uniform Allowance 109,400.00 113,550.00 4,150 3.8% Total 4219 - Operating Supplies 768,200.00 812,700.00 44,500 5.8% Total 4221 - Equipment Parts 176,800.00 181,800.00 5,000 2.8% Total 4226 - Sign Materials 31,000.00 32,000.00 1,000 3.2% Total Supplies 1,394,150.00 1,430,400.00 36,250 2.6% SERVICES & CHARGES Total 4301 - Audit Fees 23,000.00 23,000.00 0 0.0% Total 4303 - Engineering Fees 0.00 1,500.00 1,500 0.0% Total 4304 - Legal Fees 300,000.00 340,000.00 40,000 13.3% Total 4319 - Other Professional Services 178,750.00 211,800.00 33,050 18.5% Total 4321 - Telephone 82,500.00 92,350.00 9,850 11.9% Total 4322 - Postage 13,100.00 12,350.00 (750)-5.7% Total 4331 - Travel, Conferences & Schools 217,550.00 211,400.00 (6,150)-2.8% Total 4349 - Advertising/Marketing 8,000.00 8,000.00 0 0.0% Total 4359 - Publishing 19,200.00 18,750.00 (450)-2.3% Total 4361 - Insurance 269,450.00 296,300.00 26,850 10.0% Total 4389 - Utilities 562,800.00 540,600.00 (22,200)-3.9% Total 4401 - Bldg Repair/Maint Services 193,350.00 199,550.00 6,200 3.2% Total 4404 - Equip Repair/Maint Services 688,600.00 921,150.00 232,550 33.8% Total 4409 - Contractual Services 373,800.00 431,400.00 57,600 15.4% Total 4412 - Building Rent 5,000.00 5,500.00 500 10.0% Total 4415 - Equipment Rental 25,500.00 34,100.00 8,600 33.7% Total 4433 - Dues & Subscriptions 81,050.00 105,900.00 24,850 30.7% Total 4437 - Taxes & Licenses 850.00 1,850.00 1,000 117.6% Total 4438 - Credit Card Fees 41,250.00 61,000.00 19,750 47.9% Total 4440 - Miscellaneous 16,250.00 14,500.00 (1,750)-10.8% Total 4460 - Equip Replacement Charge 509,000.00 539,550.00 30,550 6.0% Total 4462 - IT Equip Charge 88,450.00 114,100.00 25,650 29.0% Total Services & Charges 3,707,050.00 4,184,650.00 477,600 12.9% CAPITAL OUTLAY Total 4560 - Equipment 0.00 0.00 0 0.0% Total 4570 - Lease Expenditure 26,400.00 0.00 (26,400)-100.0%*JE to move here from 4404 after auditors review Total 4602 - Principal Payment-Lease 83,500.00 0.00 (83,500)-100.0%*budgeted in 4404 - JE after audit Total 4612 - Interest Expense - Lease 0.00 0.00 0 0.0% Total Capital Outlay 109,900.00 0.00 (109,900)-100.0% GENERAL FUND TOTAL 22,210,100.00 23,659,950.00 1,449,850 6.5% Page 313 of 322 General Fund Revenues: Property taxes Othertaxes Licenses & Permits Intergovernmental Revenues Charges for Services Fines Other Revenues Other Financing Source - Lease Transfers In Total General Fund Revenues General Fund Expenditures General Government: Mayor & Council Communications Administrative Services Human Resources Elections Finance Information Technology Legal Community Dev/Planning Facilities Maintenance Energy City Total General Government Public Safety: Police Fire Building Safety Code Enforcement Environmental Total Public Safety Public Works: Street Maintenance Snow Removal Equipment Services Engineering Total Public Works Culture & Recreation: Park Maintenance Recreation Sr. Citizen Programs Total Culture & Recreation Transfers Out Total General Fund Expenditures CITY OF ELK RIVER 2026 PRELIMINARY BUDGET GENERAL FUND 2023 2024 2025 6/30/2025 2026 ACTUAL ACTUAL BUDGET ACTUAL PRELIMINARY 13,785,282 14,887,537 15,626,050 5,620,248 16,864,450 156,365 168,050 225,000 15,290 220,000 976,260 768,995 974,200 650,623 984,700 706,917 921,230 778,000 41,903 816,000 1,210,808 1,271,008 1,243,850 803,724 1,281,750 169,910 176,559 155,000 66,586 170,000 445,610 477,201 361,000 349,901 414,000 99,914.00 3,202,249 2,953,568 2,847,000 583,620 2,909,050 20,653,401 21,724,062 22,210,100 8,131,895 23,659,950 196,879 196,900 233,000 90,787 243,150 436,535 461,967 522,150 243,823 554,850 691,952 732,615 727,050 317,814 722,950 398,243 433,692 456,150 204,885 471,650 6,280 76,300 6,800 6,306 53,550 733,973 822,161 850,250 439,512 1,040,450 617,017 814,783 748,200 282,049 846,850 288,808 334,342 300,000 116,579 340,000 460,952 489,137 504,750 250,250 516,950 1,054,680 1,087,119 1,151,350 499,172 1,165,950 56,284 21,268 40,200 0 0 4,941,603 5,470,284 5,539,900 2,451,177 5,956,350 7,190,412 7,847,040 8,028,300 3,642,382 8,635,300 1,979,598 2,103,602 2,096,450 819,856 2,213,550 572,772 621,274 648,400 285,530 614,200 116,261 123,987 132,900 58,916 142,150 128,842 125,041 57,800 28,699 77,050 9,987,885 10,820,944 10,963,850 4,835,383 11,682,250 1,532,241 1,500,154 1,778,350 686,274 1,885,900 338,473 263,917 380,650 224,361 398,200 363,728 402,213 428,700 193,827 465,400 464,372 408,497 382,100 166,330 411,300 2,698,814 2,574,781 2,969,800 1,270,792 3,160,800 1,558,303 1,649,764 1,736,000 701,565 1,779,650 773,426 785,316 784,500 330,684 808,450 178,074 203,726 216,050 98,928 272,450 2,509,803 2,638,806 2,736,550 1,131,177 2,860,550 20,138,105 21,504,815 22,210,100 9,688,529 23,659,950 of Increase/ Budget Decrease) Change 71.3% 1,238,400 7.9% 0.9% 5,000) 2.2% 4.2% 10,500 1.1% 3.4% 38,000 4.9% 5.4% 37,900 3.0% 0.7% 15,000 9.7% 1.7% 53,000 14.7% 0.0% 0 0.0% 12.3% 62,050 2.2% 100.0% 1,449,850 6.5% 1.0% 10,150 4.4% 2.3% 32,700 6.3% 3.1% 4,100) 0.6% 2.0% 15,500 3.4% 0.2% 46,750 687.5% 4.4% 190,200 22.4% 3.6% 98,650 13.2% 1.4% 40,000 13.3% 2.2% 12,200 2.4% 4.9% 14,600 1.3% 0.0% 40,200) 100.0% 25.2% 416,450 7.5% 36.5% 607,000 7.6% 9.4% 117,100 5.6% 2.6% 34,200) 5.3% 0.6% 9,250 7.0% 0.3% 19,250 33.3% 49.4% 718,400 6.6% 8.0% 107,550 6.0% 1.7% 17,550 4.6% 2.0% 36,700 8.6% 1.7% 29,200 7.6% 13.4% 191,000 6.4% 7.5% 43,650 2.5% 3.4% 23,950 3.1% 1.2% 56,400 26.1% 12.1% 124,000 4.5% 0.0% 0.00% 100.0% 1,449,850 6.5% Page 31 of 32Page 10 of 12Page 314 of 322 Page 12 of 12Page 315 of 322 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 13.1 Meeting Date November 3, 2025 Prepared By Lori Stich, Finance Manager Item Description September Financial Reports Reviewed by Lori Stich Joe Stremcha Cal Portner Tina Allard Action Requested Information only. Background/Discussion This report is designed to provide summary information regarding the overall level of revenues and expenditures in the General Fund, the Multipurpose Facility Special Revenue Fund, and the Enterprise Funds. These funds provide an important picture of the city’s financial health. For the month of September, actual revenues (excluding property taxes and transfers in) and expenditures should run about 75% of the annual budget. It is natural for some of the items to vary from month to month, such as exceeding budget for Supplies but being below budget for Services. This is not considered serious as long as the total expenditure budget amount is not overspent. Significant variances from budget are highlighted below accompanied by a general discussion of the variance. General Fund Revenues: ▪ License & permit collections are 83% of budget estimates. September collections were primarily building-related permits. ▪ Charges for services are about 78% of estimates with plan check fees and recreation fees making up the majority of September collections. ▪ Court fines which lag a month are about 65% of budget including August collections received by the county. ▪ Transfers in consist of ERMU’s 4% August monthly electric revenues. Expenditures: Page 316 of 322 ▪ Total departmental expenditures are about 70% of budget. Most departments are within or below budget estimates. FTCenter Through the end of September, expenditures $1,362,654 exceed revenues of $1,333,693 by $28,961. The majority of September collections consist of ice rent, facility rentals, naming rights/sponsorships and concessions/catering revenue, while expenditures are primarily attributable to personal services, utilities and field house improvements. Financial Impact N/A Mission/Policy/Goal Responsible for every dollar - good stewards. Attachments 1. 09-2025 Financial Reports Page 317 of 322 General Fund As of:9/30/2025 75.00%OF YEAR COMPLETED REVENUES Budget YTD Actual % of budget Budget Balance Taxes 101-3-0000-3111 Current Ad Valorem Taxes 15,626,050.00 8,025,706.36 51.36%7,600,343.64 101-3-0000-3112 Delinquent Ad Valorem Taxes 0.00 56,048.69 0.00%(56,048.69) 101-3-0000-3121 Gravel Tax 225,000.00 60,594.54 26.93%164,405.46 101-3-0000-3131 Penalties/Interest 0.00 3,322.56 0.00%(3,322.56) Total Taxes 15,851,050.00 8,145,672.15 51.39%7,705,377.85 Licenses & Permits 101-3-0000-3211 Liquor License 82,000.00 85,668.25 104.47%(3,668.25) 101-3-0000-3212 THC License 5,000.00 800.00 16.00%4,200.00 101-3-0000-3213 Cigarette License 4,000.00 300.00 7.50%3,700.00 101-3-0000-3214 Rental License 65,000.00 23,220.00 35.72%41,780.00 101-3-0000-3216 Mining License 26,000.00 27,006.10 103.87%(1,006.10) 101-3-0000-3217 Garbage Hauler License 2,500.00 580.00 23.20%1,920.00 101-3-0000-3218 Other Business License/Permit 16,000.00 13,290.00 83.06%2,710.00 101-3-0000-3229 NPDES Permit 23,000.00 13,825.00 60.11%9,175.00 101-3-0000-3231 Building Permit 550,000.00 440,048.05 80.01%109,951.95 101-3-0000-3232 Plumbing/Heating Permit 175,000.00 160,257.50 91.58%14,742.50 101-3-0000-3233 Permit Surcharge 700.00 2,152.84 307.55%(1,452.84) 101-3-0000-3235 Animal License 0.00 550.00 0.00%(550.00) 101-3-0000-3237 Other Non-Business Lic/Permit 25,000.00 37,918.49 151.67%(12,918.49) Total Licenses & Permits 974,200.00 805,616.23 82.70%168,583.77 Intergovernmental Revenue 101-3-0000-3322 MV Credit 6,000.00 0.00 0.00%6,000.00 101-3-0000-3323 Fire State Aid 275,000.00 0.00 0.00%275,000.00 101-3-0000-3325 Police 2% Aid 414,000.00 0.00 0.00%414,000.00 101-3-0000-3326 Police Training Reimb 35,000.00 31,821.75 90.92%3,178.25 101-3-0000-3329 State Crime Prevention Grant 48,000.00 54,352.04 113.23%(6,352.04) 101-3-0000-3330 Other State Grants 0.00 25,640.14 0.00%(25,640.14) Total Intergovernmental Revenue 778,000.00 111,813.93 14.37%666,186.07 Charges for Services 101-3-0000-3412 Planning & Zoning Fees 25,000.00 36,997.32 147.99%(11,997.32) 101-3-0000-3413 Plan Check Fee 230,000.00 195,389.65 84.95%34,610.35 101-3-0000-3415 Special Assessment Search 500.00 180.00 36.00%320.00 101-3-0000-3417 Copies 1,500.00 4,079.16 271.94%(2,579.16) 101-3-0000-3418 Other General Govt Services 0.00 57.25 0.00%(57.25) 101-3-0000-3430 Lockout Fees 3,500.00 1,560.00 44.57%1,940.00 101-3-0000-3431 Police Services 46,000.00 20,597.69 44.78%25,402.31 101-3-0000-3432 School Liaison 185,000.00 195,383.56 105.61%(10,383.56) 101-3-0000-3434 Animal Impound Fee 500.00 700.00 140.00%(200.00) 101-3-0000-3436 Fire Contracts 465,750.00 253,422.01 54.41%212,327.99 101-3-0000-3437 Fire Services 3,000.00 0.00 0.00%3,000.00 101-3-0000-3438 Fire Inspections 0.00 10.14 0.00%(10.14) 101-3-0000-3451 Street Services 35,000.00 20,495.84 58.56%14,504.16 101-3-0000-3452 Engineering Services Reimb 20,000.00 8,841.75 44.21%11,158.25 101-3-0000-3461 Recreation Fees 52,500.00 45,839.76 87.31%6,660.24 101-3-0000-3462 Sr Center Activities 47,500.00 37,379.10 78.69%10,120.90 101-3-0000-3463 Farmer's Market 15,000.00 46,922.00 312.81%(31,922.00) 101-3-0000-3469 Elk RiverFest 20,000.00 7,915.00 39.58%12,085.00 Page 318 of 322 101-3-0000-3472 Park Use Fee 76,900.00 75,825.31 98.60%1,074.69 101-3-0000-3475 Building Rent 0.00 542.24 0.00%(542.24) 101-3-0000-3483 Sewer Inspection Fee 15,000.00 13,460.00 89.73%1,540.00 101-3-0000-3484 Contractor License Check 1,200.00 958.31 79.86%241.69 Total Charges for Services 1,243,850.00 966,556.09 77.71%277,293.91 Fines & Forfeits 101-3-0000-3510 Court Fines 155,000.00 101,011.81 65.17%53,988.19 Total Fines & Forfeits 155,000.00 101,011.81 65.17%53,988.19 Other Revenue 101-3-0000-3621 Interest Income 175,000.00 82,508.93 47.15%92,491.07 101-3-0000-3625 Refunds & Reimbursements 150,000.00 250,287.40 166.86%(100,287.40) 101-3-0000-3626 Contributions 26,000.00 26,000.00 100.00%0.00 101-3-0000-3629 Miscellaneous Revenue 10,000.00 18,859.31 188.59%(8,859.31) Total Other Revenue 361,000.00 377,655.64 104.61%(16,655.64) Transfers In 101-3-0000-3926 Transfer-Capital Outlay Reserv 95,000.00 95,000.00 100.00%0.00 101-3-0000-3942 Transfer-WWTS 180,000.00 180,000.00 100.00%0.00 101-3-0000-3943 Transfer-Liquor 850,000.00 850,000.00 100.00%0.00 101-3-0000-3944 Transfer-Garbage 60,000.00 60,000.00 100.00%0.00 101-3-0000-3945 Transfer-Utilities 1,450,000.00 1,066,492.22 73.55%383,507.78 101-3-0000-3946 Transfer-Stormwater 125,000.00 125,000.00 100.00%0.00 101-3-0000-3948 Transfer-EDA 48,000.00 48,000.00 100.00%0.00 101-3-0000-3949 Transfer-HRA 39,000.00 39,000.00 100.00%0.00 Total Transfers In 2,847,000.00 2,463,492.22 86.53%383,507.78 TOTAL GENERAL FUND REVENUES 22,210,100.00 12,971,818.07 58.41%9,238,281.93 Page 319 of 322 General Fund As of:9/30/2025 75.00%OF YEAR COMPLETED EXPENDITURE SUMMARY Budget YTD Actual % of budget Budget Balance General Government City Council 233,000.00 172,856.09 74.19%60,143.91 Communications 522,150.00 360,565.44 69.05%161,584.56 Administrative Services 727,050.00 500,077.97 68.78%226,972.03 Human Resources 456,150.00 339,109.07 74.34%117,040.93 Elections 6,800.00 6,305.86 92.73%494.14 Finance 850,250.00 654,957.20 77.03%195,292.80 Information Technology 748,200.00 500,567.74 66.90%247,632.26 Legal 300,000.00 219,759.38 73.25%80,240.62 Community Development 0.00 0.00 0.00%0.00 Planning 504,750.00 400,274.98 79.30%104,475.02 Building Maintenance 1,151,350.00 782,853.05 67.99%368,496.95 Total General Government 5,499,700.00 3,937,326.78 71.59%1,562,373.22 Public Safety Police Administration 1,257,000.00 954,678.75 75.95%302,321.25 Patrol 3,992,500.00 2,730,862.59 68.40%1,261,637.41 Investigations 1,523,350.00 1,107,430.71 72.70%415,919.29 Police Support Services 1,002,750.00 678,181.52 67.63%324,568.48 Police Reserves 16,550.00 4,249.62 25.68%12,300.38 Public Safety Building 236,150.00 167,209.77 70.81%68,940.23 Fire Administration 1,405,400.00 839,288.28 59.72%566,111.72 Fire Operations 658,900.00 529,724.41 80.40%129,175.59 Emergency Management 32,150.00 34,296.78 106.68%(2,146.78) Building Safety 648,400.00 445,391.84 68.69%203,008.16 Code Enforcement 132,900.00 92,849.96 69.86%40,050.04 Environmental 57,800.00 48,658.69 84.18%9,141.31 Total Public Safety 10,963,850.00 7,632,822.92 69.62%3,331,027.08 Public Works Street Maintenance 1,778,350.00 1,124,834.61 63.25%653,515.39 Snow Removal 380,650.00 229,402.82 60.27%151,247.18 Equipment Services 428,700.00 300,004.18 69.98%128,695.82 Engineering 382,100.00 283,697.78 74.25%98,402.22 Total Public Works 2,969,800.00 1,937,939.39 65.25%1,031,860.61 Culture & Recreation Parks Department 1,736,000.00 1,177,015.61 67.80%558,984.39 Parks & Rec Admin 576,100.00 406,684.31 70.59%169,415.69 Recreation Programs 146,550.00 128,389.97 87.61%18,160.03 Farmers Market 61,850.00 61,891.18 100.07%(41.18) Sr Citizen Programs 216,050.00 157,423.50 72.86%58,626.50 Total Culture & Recreation 2,736,550.00 1,931,404.57 70.58%805,145.43 Economic Development Economic Development 0.00 34,415.87 0.00%(34,415.87) Energy City 40,200.00 0.00 0.00%40,200.00 Total Economic Development 40,200.00 34,415.87 85.61%5,784.13 TOTAL GENERAL FUND EXPENDITURES 22,210,100.00 15,473,909.53 69.67%6,736,190.47 REVENUES OVER/(UNDER) EXPENDITURES 0.00 (2,502,091.46)2,502,091.46 Page 320 of 322 Current Budget Year to Date Actual % of Budget Revenues: Ice Rental $861,000 $536,978 62.37% Admissions 6,000 10,493 174.89% Dry Floor Events/Craft Shows 0 3,672 0.00% Facility Rental 245,400 223,709 91.16% Advertising/Naming Rights/Sponsorships 192,550 156,133 81.09% Recreation fees (Skating/Hockey)160,000 119,357 74.60% Concessions/catering/vending 363,000 262,857 72.41% Other Revenues (interest, etc.)29,600 20,493 69.23% Total Revenues $1,857,550 $1,333,693 71.80% Operating expenses: Personal services $930,900 $669,336 71.90% Supplies 197,550 142,524 72.15% Other service charges 585,450 435,993 74.47% Capital Outlay 141,750 114,801 80.99% Total Expenditures $1,855,650 $1,362,654 73.43% Revenues over/(under) expenditures $1,900 ($28,961) CITY OF ELK RIVER FTCENTER - BUDGET TO ACTUAL MONTH ENDED SEPTEMBER 30, 2025 Budget, $1,857,550 Budget, $1,855,650 Actual $1,333,693 Actual $1,362,654 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 Total Revenues Total Expenditures FTCenter SEPTEMBER 2025 Page 321 of 322 Current Budget Year to Date Actual % of Budget Current Budget Year to Date Actual % of Budget Current Budget Year to Date Actual % of Budget Current Budget Year to Date Actual % of Budget Sales and cost of sales: Sales 8,640,000$ 6,334,709$ 73.32% Cost of sales (6,235,750) (4,267,303) 68.43% Gross profit 2,404,250 2,067,406 85.99% Operating revenues: User charges - - - 2,745,000$ 1,977,544$ 72.04%2,070,000$ 1,330,049$ 64.25%675,000$ 451,246$ 66.85% Delinquency collections - - - 1,500 1,422 94.80%- 1,013 - - 45 - Other 9,000 4,082 45.35%195,000 130,196 66.77%- - - - - - Total operating revenues 9,000 4,082 45.35%2,941,500 2,109,162 71.70%2,070,000 1,331,062 64.30%675,000 451,291 66.86% Operating expenses: Personal services 1,268,300 879,080 69.31%901,300 623,642 69.19%29,900 15,554 52.02%- - - Supplies 31,500 9,529 30.25%334,900 199,445 59.55%23,250 869 3.74%1,000 - 0.00% Other service charges 397,650 446,854 112.37%1,007,950 739,912 73.41%1,844,550 1,198,013 64.95%302,950 25,055 8.27% Depreciation *70,000 - 0.00%1,710,000 - 0.00%- - - 500,000 - 0.00% Total operating expenses 1,767,450 1,335,462 75.56%3,954,150 1,562,999 39.53%1,897,700 1,214,436 64.00%803,950 25,055 3.12% Operating income (loss)645,800 736,025 113.97%(1,012,650) 546,163 -53.93%172,300 116,626 67.69%(128,950) 426,237 -330.54% Nonoperating revenues (expenses): Interest income 135,000 37,951 28.11%135,000 114,499 84.81%10,000 11,896 118.96%30,000 28,761 95.87% Interest expense/agent fees - - - (77,550) (76,985) 99.27%- - - - - - Total nonoperating revenues (expenses)135,000 37,951 28.11%57,450 37,514 65.30%10,000 11,896 118.96%30,000 28,761 95.87% Income (loss) before contributions & transfers 780,800 773,976 99.13%(955,200) 583,677 -61.11%182,300 128,522 70.50%(98,950) 454,998 -459.83% Contributions - connection fees - - - 1,000,000 843,426 84.34%- - - - - - Transfers in (ARPA funds)- - 0.00% Sale of assets - - 0.00%- - 0.00%- - 0.00%- - 0.00% Transfers out (1,100,000) (1,350,000) 122.73%(180,000) (180,000) 100.00%(60,000) (60,000) 100.00%(125,000) (125,000) 100.00% NET INCOME (LOSS)(319,200) (576,024) 180.46%(135,200) 1,247,103 -922.41%122,300 68,522 56.03%(223,950) 329,998 -147.35% Items reclassified to balance sheet at year end: Bond Proceeds - - Capital Outlay - - - (343,000) (261,540) - - - - (150,000) - - Bond Payment - - - (530,000) (530,000) - - - - - - - Revenues over/(under) expenditures (319,200) (576,024) (1,008,200) 455,564 122,300 68,522 (373,950) 329,998 * Recorded at year-end CITY OF ELK RIVER ENTERPRISE FUNDS - BUDGET TO ACTUAL MONTH ENDED SEPTEMBER 30, 2025 Liquor Sewer Garbage Stormwater Page 322 of 322