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2026-5 - ERMU - Regular Commission Meeting REGULAR MEETING OF THE UTILITIES COMMISSION May 12, 2026, 3:30 P.M. Utilities Conference Room ______________________________________________________________________________ Page 1 of 1 AGENDA __________________ 1.0 GOVERNANCE 1.1 Call Meeting to Order 1.2 Pledge of Allegiance 1.3 Consider the Agenda 1.4 2026 ERMU Scholarship 1.5 Recognition of Employee Longevity – Russell Stuhr, 12 Years 1.6 New Employee Verbal Introduction – Alex Skoog 2.0 CONSENT (Routine items. No discussion. Approved by one motion.) 2.1 Check Register – April 2026 2.2 Regular Meeting Minutes – April 14, 2026 2.3 2026 First Quarter Utilities Performance Metrics Scorecard Statistics 2.4 2026 First Quarter Delinquent Items 3.0 OPEN FORUM (Non-agenda items for discussion. No action. Presenters must adhere to a time limit of 3 minutes.) 4.0 POLICY & COMPLIANCE (Policy review, policy development, and compliance monitoring.) 4.1 Commission Compensation 5.0 BUSINESS ACTION (Current business action requests and performance monitoring reports.) 5.1 Financial Report – March 2026 5.2 Market-Based Electric Service Agreement for 19178 Industrial Boulevard NW 5.3 2026 Annual Business Plan Amendment 6.0 BUSINESS DISCUSSION (Future business planning, general updates, and informational reports.) 6.1 Staff Updates 6.2 City Council Update 6.3 Future Planning (Announce the next regular meeting, special meeting, or planned quorum.) a. Regular Commission Meeting – June 9, 2026 b. 2026 Governance Agenda 6.4 Other Business (Items added during agenda approval.) 7.0 CLOSED SESSION (Requires a motion to close the meeting to the public and a motion to reopen after.) 7.1 Annual General Manager Performance Evaluation Note: This meeting may be closed pursuant to Minn. Stat. § 13D.05, subd. 3(a) for the performance evaluation of Mark Hanson, ERMU General Manager. 8.0 ADJOURN REGULAR MEETING 1 ______________________________________________________________________________ Page 1 of 1 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Tony Mauren – Governance & Communications Manager MEETING DATE: May 12, 2026 AGENDA ITEM NUMBER: 1.4 SUBJECT: 2026 ERMU Scholarship ACTION REQUESTED: None BACKGROUND/DISCUSSION: ERMU is excited to announce that Elk River High School seniors Breanna Allen and Owen Bassett have been selected as the recipients of the 2026 ERMU scholarships. Breanna was brought up in the utility world, as her father is a substation technician at Connexus. She shares, “When I was little I was able to go to his work and see how electricity gets to members' homes. He also introduced me to the Electrical Engineers that worked in the same industry. I was very interested and this gave me excitement for the career. I am grateful that my dad gave me this opportunity to see the electrical industry.” Breanna will be pursuing an associate’s degree in electrical engineering at Anoka Ramsey Community College before transferring to Saint Cloud State University to earn her bachelor’s degree. Owen has already had extensive experience that will prepare him for his future career as a lineworker, with classes in engineering, welding, manufacturing, small engines, and an internship. Owen feels his greatest strength is his work ethic, explaining that he learned from his family that “…real character is grown by working hard even when nobody is watching.” ERMU wishes both students the best as they pursue their goals in these vital fields. 2 Page 1 of 1 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Mark Hanson – General Manager MEETING DATE: May 12, 2026 AGENDA ITEM NUMBER: 1.5 SUBJECT: Recognition of Employee Longevity – Russell Stuhr, 12 years ACTION REQUESTED: Recognize Russell Stuhr for 12 years of service and award the Longevity Bonus paycheck BACKGROUND: In September 2021, the Commission approved a Longevity Pay benefit to be paid to qualifying, eligible employees based on their years of service according to the schedule below. 8 years $1,550 12 years $2,025 16 years $2,100 20 years $2,125 24 years $2,300 28 years $3,000 32 years $3,000 DISCUSSION: Russell Stuhr has been an employee with ERMU since May 12, 2014, and, therefore, has earned the 12-year longevity pay benefit. We recognize Russell and all his contributions to the success of ERMU through his service. 3 CHECK REGISTER April 2026 APPROVED BY: John Dietz Jill Larson-Vito Mary Stewart Matt Westgaard Nick Zerwas 4 Payroll/Labor Check Register Totals Page: 105/01/2026 3:49:08 pm Elk River Municipal Utilities 04/10/2026 To 04/10/2026 Rev: 202303050330 Pays Job Amount Hours Gross Pay 170,912.63 2,957.752Reg Hours 1,409.81 16.093Overtime 0.00 0.004Double Time 3,335.96 56.005On-Call/Stand-by 140.96 0.0024FLSA 0.00 0.0025Rest Time 0.00 0.0010Bonus Pay 600.00 0.0018Commissioner Reimb - Electric 60.00 0.00104Commission Stipend 26,714.06 469.10VACVacation Pay 2,786.56 51.15SICKSick Pay 0.00 0.00HOLHoliday Pay 0.00 0.0078Retro Earnings 663.39 6.505-2 On-Call/Stand-by/OT 150.00 0.0018ACommissioner Reimb. - Water 0.00 0.0010-3 Bonus Pay Overtime 15.00 0.00104ACommission Stipend - Water 1,296.40 24.00PTOYPersonal Day - Year 5,025.60 57.413COvertime-Comp Time 0.00 0.004CDouble Time-Comp Time -5,025.60 -57.41CM3COvertime-Comp Time Adjusted 0.00 0.00CM4CDouble Time-Comp Time Adjusted 0.00 0.00COMPComp Time Taken 0.00 0.00106Longevity Pay 0.00 0.00MILMilitary Pay - Calendar Year Gross Pay Total:208,084.77 3,580.59 Total Pays:208,084.77 3,580.59 /pro/rpttemplate/acct/2.64.1/pl/PL_CHK_REG_TOTALS.xml.rpt KGreenberg25252035 Payroll/Labor Check Register Totals Page: 105/01/2026 3:50:01 pm Elk River Municipal Utilities 04/17/2026 To 04/17/2026 Rev: 202303050330 Pays Job Amount Hours Gross Pay 0.00 0.002Reg Hours 0.00 0.003Overtime 0.00 0.004Double Time 0.00 0.005On-Call/Stand-by 0.00 0.0024FLSA 0.00 0.0025Rest Time 0.00 0.0010Bonus Pay 101,008.84 0.00105Perf. Metr. Distr. 0.00 0.00VACVacation Pay 0.00 0.00SICKSick Pay 0.00 0.00HOLHoliday Pay 0.00 0.0078Retro Earnings 0.00 0.005-2 On-Call/Stand-by/OT 0.00 0.0010-3 Bonus Pay Overtime 0.00 0.00PTOYPersonal Day - Year 0.00 0.003COvertime-Comp Time 0.00 0.004CDouble Time-Comp Time 0.00 0.00CM3COvertime-Comp Time Adjusted 0.00 0.00CM4CDouble Time-Comp Time Adjusted 0.00 0.00COMPComp Time Taken 0.00 0.00106Longevity Pay 0.00 0.00MILMilitary Pay - Calendar Year Gross Pay Total:101,008.84 0.00 Total Pays:101,008.84 0.00 /pro/rpttemplate/acct/2.64.1/pl/PL_CHK_REG_TOTALS.xml.rpt KGreenberg25252036 Payroll/Labor Check Register Totals Page: 105/01/2026 3:50:41 pm Elk River Municipal Utilities 04/24/2026 To 04/24/2026 Rev: 202303050330 Pays Job Amount Hours Gross Pay 194,203.36 3,382.002Reg Hours 1,791.23 19.503Overtime 272.16 2.004Double Time 3,277.40 56.005On-Call/Stand-by 373.71 0.0024FLSA 327.73 5.0025Rest Time 0.00 0.0010Bonus Pay 0.00 0.00105Perf. Metr. Distr. 10,738.78 183.25VACVacation Pay 1,957.54 37.25SICKSick Pay 0.00 0.00HOLHoliday Pay 0.00 0.0078Retro Earnings 1,940.84 19.755-2 On-Call/Stand-by/OT 0.00 0.0010-3 Bonus Pay Overtime 440.72 8.00PTOYPersonal Day - Year 635.03 6.753COvertime-Comp Time 252.20 2.004CDouble Time-Comp Time -635.03 -6.75CM3COvertime-Comp Time Adjusted -252.20 -2.00CM4CDouble Time-Comp Time Adjusted 892.23 17.00COMPComp Time Taken 0.00 0.00106Longevity Pay 0.00 0.00MILMilitary Pay - Calendar Year Gross Pay Total:216,215.70 3,729.75 Total Pays:216,215.70 3,729.75 /pro/rpttemplate/acct/2.64.1/pl/PL_CHK_REG_TOTALS.xml.rpt KGreenberg25252037 Page 105/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 1 - GENERAL FUND Check / Tran Date Pmt Type AmountVendor NameVendor Reference WIRE23904/6/26 FISERV5655 CC FEES - MARCH 2026 2,288.04 CC FEES - MARCH 2026 572.01 CC FEES - MARCH 2026 2,182.82 CC FEES - MARCH 2026 545.71 CC FEES - MARCH 2026 560.96 CC FEES - MARCH 2026 140.24 CC FEES - MARCH 2026 2,283.94 CC FEES - MARCH 2026 570.98 CC FEES - MARCH 2026 102.75 CC FEES - MARCH 2026 25.69 CC FEES - MARCH 2026 757.66 CC FEES - MARCH 2026 189.41 Total for Check/Tran - 2390:10,220.21 Total for Bank Account - 1 :(1)10,220.21 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt252038 Page 205/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference WIRE51824/1/26 AMERICAN EXPRESS1008 APPA NAT'L CONF AIRFARE - 186 6.26 886.81 APPA NAT'L CONF AIRFARE - 151 6.26 986.81 Total for Check/Tran - 5182:1,873.62 WIRE51834/2/26 MINNESOTA REVENUE (ELECTRONIC)154 PAYROLL TAXES - STATE 7,711.37 PAYROLL TAXES - STATE 1,691.38 Total for Check/Tran - 5183:9,402.75 WIRE51844/2/26 HEALTHEQUITY, INC738 FSA CLAIM REIMBURSEMENTS - 164 222.22 FSA CLAIM REIMBURSEMENTS - 164 55.55 Total for Check/Tran - 5184:277.77 WIRE51864/3/26 CINTAS28 ICE MELT 154.81 ICE MELT 22.11 MATS & TOWELS 529.75 MATS & TOWELS 75.67 MATS & TOWELS 529.75 MATS & TOWELS 75.67 Total for Check/Tran - 5186:1,387.76 WIRE51884/8/26 HEALTHEQUITY, INC738 ADMINISTRATIVE FEE INVOICE - APRIL 2026 125.70 ADMINISTRATIVE FEE INVOICE - APRIL 2026 25.30 Total for Check/Tran - 5188:151.00 WIRE51894/9/26 ONLINE UTILITY EXCHANGE (ELECTR166 UTILITY EXCHANGE REPORT 300.48 UTILITY EXCHANGE REPORT 75.12 Total for Check/Tran - 5189:375.60 WIRE51914/9/26 MEDICA8708 MEDICAL EE INSURANCE - APRIL 2026 11,203.80 MEDICAL ER INSURANCE - APRIL 2026 59,929.91 MEDICAL COBRA INSURANCE - APRIL 2026 1,374.88 MEDICAL EE INSURANCE - APRIL 2026 2,712.20 MEDICAL ER INSURANCE - APRIL 2026 15,616.28 Total for Check/Tran - 5191:90,837.07 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt252039 Page 305/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference WIRE51924/13/26 CHARTER COMMUNICATIONS549 OFFICE TELEPHONE & CABLE 217.21 OFFICE TELEPHONE & CABLE 54.30 Total for Check/Tran - 5192:271.51 WIRE51934/14/26 PERA (ELECTRONIC)153 PERA EMPLOYEE CONTRIBUTION 10,982.70 PERA CONTRIBUTIONS 12,672.35 PERA EMPLOYEE CONTRIBUTION 2,489.17 PERA CONTRIBUTIONS 2,872.12 Total for Check/Tran - 5193:29,016.34 WIRE51944/14/26 MINNESOTA REVENUE (ELECTRONIC)154 PAYROLL TAXES - STATE 7,751.25 PAYROLL TAXES - STATE 1,756.78 Total for Check/Tran - 5194:9,508.03 WIRE51954/14/26 VOYA INSTITUTIONAL TRUST COMPAN160HCSP EMPLOYEE CONTRIBUTIONS 2,525.97 HCSP EMPLOYEE CONTRIBUTIONS 467.11 Total for Check/Tran - 5195:2,993.08 WIRE51964/14/26 VOYA INSTITUTIONAL TRUST COMPAN161MNDCP EE MANAGER CONTRIBUTIONS 368.37 MNDCP EMPLOYEE CONTRIBUTIONS 3,945.60 MNDCP EMPLOYER CONTRIBUTION 2,846.30 MNDCP EMPLOYER MGR CONTRIBUTION 619.54 MNDCP EE ROTH CONTRIBUTIONS 1,824.50 MNDCP EE ROTH MGR CONTRIBUTIONS 251.17 MNDCP EE MANAGER CONTRIBUTIONS 51.74 MNDCP EMPLOYEE CONTRIBUTIONS 351.67 MNDCP EMPLOYER CONTRIBUTION 603.91 MNDCP EMPLOYER MGR CONTRIBUTION 85.52 MNDCP EE ROTH CONTRIBUTIONS 393.44 MNDCP EE ROTH MGR CONTRIBUTIONS 33.78 Total for Check/Tran - 5196:11,375.54 WIRE51974/14/26 JOHN HANCOCK285 W&A EMPLOYER CONTRIBUTION 1,334.36 W&A MANAGER CONTRIBUTION 436.88 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520310 Page 405/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference WENZEL EMPLOYEE CONTRIBUTIONS 1,588.46 WENZEL MANAGER CONTRIBUTIONS 136.43 DEF COMP ROTH CONTRIBUTIONS W&A 900.00 WENZEL EE ROTH MGR CONTRIBUTIONS 300.45 W&A EMPLOYER CONTRIBUTION 456.35 W&A MANAGER CONTRIBUTION 67.50 WENZEL EMPLOYEE CONTRIBUTIONS 140.56 WENZEL MANAGER CONTRIBUTIONS 34.11 DEF COMP ROTH CONTRIBUTIONS W&A 347.78 WENZEL EE ROTH MGR CONTRIBUTIONS 33.39 Total for Check/Tran - 5197:5,776.27 WIRE51984/14/26 MINNESOTA CHILD SUPPORT PAYMEN598 CHILD SUPPORT 304.10 WIRE51994/14/26 HEALTHEQUITY, INC738 HSA EMPLOYEE CONTRIBUTION 2,834.43 HSA EMPLOYEE CONTRIBUTION 585.34 Total for Check/Tran - 5199:3,419.77 WIRE52004/14/26 IRS - USA TAX PMT (ELECTRONIC)152 2025 FICA CORRECTION - GTL 19 159 162 -29.40 2025 FICA CORRECTION - GTL 19 159 162 -58.44 PAYROLL TAXES - FEDERAL & FICA 17,436.93 PAYROLL TAXES - FEDERAL & FICA 24,281.90 PAYROLL TAXES - FEDERAL & FICA 3,821.38 PAYROLL TAXES - FEDERAL & FICA 5,558.28 Total for Check/Tran - 5200:51,010.65 WIRE52034/16/26 HEALTHEQUITY, INC738 FSA CLAIM REIMBURSEMENTS - 164 222.22 FSA CLAIM REIMBURSEMENTS - 164 55.55 Total for Check/Tran - 5203:277.77 WIRE52054/21/26 PERA (ELECTRONIC)153 PERA EMPLOYEE CONTRIBUTION 147.29 PERA CONTRIBUTIONS 169.95 PERA EMPLOYEE CONTRIBUTION 5,273.51 PERA CONTRIBUTIONS 6,084.84 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520311 Page 505/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference PERA EMPLOYEE CONTRIBUTION 1,144.80 PERA CONTRIBUTIONS 1,320.93 Total for Check/Tran - 5205:14,141.32 WIRE52064/21/26 IRS - USA TAX PMT (ELECTRONIC)152 PAYROLL TAXES - FEDERAL & FICA 16,688.50 PAYROLL TAXES - FEDERAL & FICA 12,412.98 PAYROLL TAXES - FEDERAL & FICA 3,622.91 PAYROLL TAXES - FEDERAL & FICA 2,694.72 PAYROLL TAXES - FEDERAL & FICA 346.68 Total for Check/Tran - 5206:35,765.79 WIRE52084/21/26 MINNESOTA REVENUE SALES TX (ELE174 SALES AND USE TAX - MARCH 2026 212,327.12 SALES AND USE TAX - MARCH 2026 -4.18 SALES AND USE TAX - MARCH 2026 3,200.06 Total for Check/Tran - 5208:215,523.00 WIRE52094/23/26 MINNESOTA REVENUE (ELECTRONIC)154 PAYROLL TAXES - STATE 132.42 PAYROLL TAXES - STATE 4,741.07 PAYROLL TAXES - STATE 1,029.23 Total for Check/Tran - 5209:5,902.72 WIRE52114/24/26 PERA (ELECTRONIC)153 PERA EMPLOYEE CONTRIBUTION 11,559.04 PERA CONTRIBUTIONS 13,337.38 PERA EMPLOYEE CONTRIBUTION 2,494.97 PERA CONTRIBUTIONS 2,878.80 Total for Check/Tran - 5211:30,270.19 WIRE52124/24/26 VOYA INSTITUTIONAL TRUST COMPAN160HCSP EMPLOYEE CONTRIBUTIONS 2,588.81 HCSP EMPLOYEE CONTRIBUTIONS 498.61 Total for Check/Tran - 5212:3,087.42 WIRE52134/24/26 VOYA INSTITUTIONAL TRUST COMPAN161MNDCP EE MANAGER CONTRIBUTIONS 368.37 MNDCP EMPLOYEE CONTRIBUTIONS 4,025.10 MNDCP EMPLOYER CONTRIBUTION 2,850.60 MNDCP EMPLOYER MGR CONTRIBUTION 619.54 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520312 Page 605/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference MNDCP EE ROTH CONTRIBUTIONS 1,824.49 MNDCP EE ROTH MGR CONTRIBUTIONS 251.17 MNDCP EE MANAGER CONTRIBUTIONS 51.74 MNDCP EMPLOYEE CONTRIBUTIONS 372.17 MNDCP EMPLOYER CONTRIBUTION 624.61 MNDCP EMPLOYER MGR CONTRIBUTION 85.52 MNDCP EE ROTH CONTRIBUTIONS 393.45 MNDCP EE ROTH MGR CONTRIBUTIONS 33.78 Total for Check/Tran - 5213:11,500.54 WIRE52144/24/26 HEALTHEQUITY, INC738 HSA EMPLOYEE CONTRIBUTION 2,866.22 HSA EMPLOYEE CONTRIBUTION 593.55 Total for Check/Tran - 5214:3,459.77 WIRE52154/14/26 CARDMEMBER SERVICE9654 FIRST NATIONAL BANK VISA 12,847.06 FIRST NATIONAL BANK VISA 11,561.88 Total for Check/Tran - 5215:24,408.94 WIRE52164/27/26 MINNESOTA CHILD SUPPORT PAYMEN598 CHILD SUPPORT 304.10 WIRE52174/27/26 JOHN HANCOCK285 W&A EMPLOYER CONTRIBUTION 940.22 W&A MANAGER CONTRIBUTION 436.88 WENZEL EMPLOYEE CONTRIBUTIONS 1,588.45 WENZEL MANAGER CONTRIBUTIONS 136.43 DEF COMP ROTH CONTRIBUTIONS W&A 900.00 WENZEL EE ROTH MGR CONTRIBUTIONS 300.45 W&A EMPLOYER CONTRIBUTION 421.56 W&A MANAGER CONTRIBUTION 67.50 WENZEL EMPLOYEE CONTRIBUTIONS 140.57 WENZEL MANAGER CONTRIBUTIONS 34.11 DEF COMP ROTH CONTRIBUTIONS W&A 347.78 WENZEL EE ROTH MGR CONTRIBUTIONS 33.39 Total for Check/Tran - 5217:5,347.34 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520313 Page 705/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference WIRE52184/28/26 IRS - USA TAX PMT (ELECTRONIC)152 PAYROLL TAXES - FEDERAL & FICA 18,668.02 PAYROLL TAXES - FEDERAL & FICA 25,510.18 PAYROLL TAXES - FEDERAL & FICA 3,788.42 PAYROLL TAXES - FEDERAL & FICA 5,536.40 Total for Check/Tran - 5218:53,503.02 WIRE52204/30/26 MINNESOTA REVENUE (ELECTRONIC)154 PAYROLL TAXES - STATE 8,198.70 PAYROLL TAXES - STATE 1,742.73 Total for Check/Tran - 5220:9,941.43 WIRE52214/30/26 HEALTHEQUITY, INC738 FSA CLAIM REIMBURSEMENTS - 164 222.22 FSA CLAIM REIMBURSEMENTS - 164 55.55 Total for Check/Tran - 5221:277.77 DD234624/2/26 BORDER STATES ELECTRIC SUPPLY9 Overhead Material -16.84 Mtce of URD Primary 16.84 Total for Check/Tran - 23462:0.00 DD234634/2/26 CITY OF ELK RIVER11 PARTS & LABOR FOR UNIT #36 -1.24 PARTS & LABOR FOR UNIT #36 78.74 PARTS & LABOR FOR UNIT #36 -0.06 PARTS & LABOR FOR UNIT #36 4.14 DOT INSPECTION - UNIT #31 130.00 PARTS & LABOR FOR UNIT #29 -16.24 PARTS & LABOR FOR UNIT #29 547.43 PARTS & LABOR FOR UNIT #20 -1.43 PARTS & LABOR FOR UNIT #20 84.62 PARTS & LABOR FOR UNIT #22 81.25 PARTS & LABOR FOR UNIT #19 -17.62 PARTS & LABOR FOR UNIT #19 533.84 DOT INSPECTION - UNIT #4 227.50 DOT INSPECTION - UNIT #39 227.50 DOT INSPECTION - UNIT #10 195.00 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520314 Page 805/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference DOT INSPECTION - UNIT #11 195.00 PARTS & LABOR FOR UNIT #11 -11.07 PARTS & LABOR FOR UNIT #11 249.25 DOT INSPECTION - UNIT #75 130.00 PARTS & LABOR FOR UNIT #8 -0.79 PARTS & LABOR FOR UNIT #8 433.29 DOT INSPECTION - UNIT #50 195.00 PARTS & LABOR FOR UNIT #50 -19.91 PARTS & LABOR FOR UNIT #50 500.33 PARTS & LABOR FOR UNIT #31 -77.65 PARTS & LABOR FOR UNIT #31 1,323.73 PARTS & LABOR FOR UNIT #31 -119.60 PARTS & LABOR FOR UNIT #31 2,028.50 FUEL USAGE - FEB 2026 1,254.89 FUEL USAGE - FEB 2026 753.02 ASSESSMENTS 365.00 ASSESSMENTS 305.00 Total for Check/Tran - 23463:9,577.42 DD234644/2/26 DSC COMMUNICATIONS778 RADIO REPAIR 405.66 RADIO REPAIR 57.95 Total for Check/Tran - 23464:463.61 DD234654/2/26 ELK RIVER MUNICIPAL UTILITIES23 CYCLE 2 - INV GRP 436 - FEB 2026 2,738.05 CYCLE 2 - ACCT 41038 - FEB 2026 117.17 CYCLE 2 - ACCT 41038 - FEB 2026 6.17 Total for Check/Tran - 23465:2,861.39 DD234664/2/26 INNOVATIVE OFFICE SOLUTIONS LLC6836 OFFICE SUPPLIES 285.59 OFFICE SUPPLIES 64.11 Total for Check/Tran - 23466:349.70 DD234674/2/26 JT SERVICES OF MINNESOTA8083 SWITCHGEAR -180.59 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520315 Page 905/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference BULBS 180.59 Total for Check/Tran - 23467:0.00 DD234684/2/26 NCPERS MINNESOTA573 EXTRA LIFE INSURANCE - APRIL 2026 268.80 EXTRA LIFE INSURANCE - APRIL 2026 67.20 Total for Check/Tran - 23468:336.00 DD234694/2/26 RESCO130 Connector 739.99 Discount -0.36 Total for Check/Tran - 23469:739.63 DD235194/9/26 A1 RENT IT725 CHAINSAW PARTS 50.80 DD235204/9/26 MICHAEL ATWOOD665 Mileage-Schools and Meetings 63.80 DD235214/9/26 CITY OF ELK RIVER11 TRASH BILLED - MARCH 2026 174,441.17 DD235224/9/26 ELK RIVER MUNICIPAL UTILITIES23 CYCLE 3 - INV GRP 395 - FEB 2026 8,966.25 DD235234/9/26 FRONTIER ENERGY, INC664 PROFESSIONAL SERVICES - FEB 2028 15,890.97 DD235244/9/26 ANGELA HAUGE4984 Mileage 169.07 Schools and Meetings 29.89 Mileage 42.27 Schools and Meetings 2.84 Total for Check/Tran - 23524:244.07 DD235254/9/26 HAWKINS, INC.809 CHLORINE CYLINDER RENTAL 240.00 Water Chemicals 377.47 Total for Check/Tran - 23525:617.47 DD235264/9/26 INNOVATIVE OFFICE SOLUTIONS LLC6836 OFFICE SUPPLIES 8.26 OFFICE SUPPLIES 2.06 Total for Check/Tran - 23526:10.32 DD235274/9/26 JT SERVICES OF MINNESOTA8083 SWITCHGEAR -4,146.53 BRONZE POLE 4,146.53 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520316 Page 1005/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference Total for Check/Tran - 23527:0.00 DD235284/9/26 LOCATORS & SUPPLIES INC.417 White Flags 591.55 DD235294/9/26 MARILU INC828 MONTHLY CLEANING FOR THE PLANT-MAR 2026 2,982.74 MONTHLY CLEANING FOR THE PLANT-MAR 2026 426.11 Total for Check/Tran - 23529:3,408.85 DD235304/9/26 METRO SALES, INC330 COPIER MTC CONTRACT - 2/21 to 3/20/26 162.37 COPIER MTC CONTRACT - 2/21 to 3/20/26 40.59 Total for Check/Tran - 23530:202.96 DD235314/9/26 MINNESOTA MUNICIPAL POWER AGEN1001 PURCHASED POWER - MARCH 2026 1,673,548.25 PURCHASED POWER - MARCH 2026 331,098.62 Total for Check/Tran - 23531:2,004,646.87 DD235324/9/26 KATY OLSON5006 Mileage 29.00 DD235334/9/26 PLAISTED COMPANIES, INC.5056 GRANITE 515.96 GRANITE 73.71 Total for Check/Tran - 23533:589.67 DD235344/9/26 RESCO130 GANG SWITCH 7,050.25 Discount -3.53 Total for Check/Tran - 23534:7,046.72 DD235354/9/26 MARY STEWART423 MMPA MTG MEAL & MILEAGE - 151 104.99 DD235364/9/26 RUSSELL STUHR9276 Mileage 28.56 DD235374/9/26 VESSCO, INC5536 Break Box 376.80 DD235384/9/26 WRIGHT HENNEPIN COOPERATIVE ELE610SECURITY - 1435 & 1705 MAIN ST 54.55 SECURITY - 1435 & 1705 MAIN ST 7.79 Total for Check/Tran - 23538:62.34 DD235844/16/26 AUTOMATIC SYSTEMS CO1327 PROGRAMMING - WELL #5 7 8 9 952.50 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520317 Page 1105/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference DD235854/16/26 BORDER STATES ELECTRIC SUPPLY9 Overhead Material -5,231.26 Mtce of OH Primary 89.00 Mtce of Street Lighting 709.18 Overhead Material 23,137.78 ELBOW ARRESTER 2,619.25 Mtce of URD Primary 707.25 Mtce of URD Primary 16.84 SWITCHGEAR 68,074.60 SPARROW WIRE 661.50 Mtce of URD Primary -16.84 Total for Check/Tran - 23585:90,767.30 DD235864/16/26 CROW RIVER FARM EQUIP CO36 PARTS FOR MEZ GATE 37.38 PARTS FOR MEZ GATE 5.34 PARTS FOR MEZ GATE 13.76 PARTS FOR MEZ GATE 1.96 Total for Check/Tran - 23586:58.44 DD235874/16/26 ELK RIVER MUNICIPAL UTILITIES23 CYCLE 4 - INV GRP 396 - MARCH 2026 306.33 CYCLE 4 - ACCT 51086 - MARCH 2026 62.59 Total for Check/Tran - 23587:368.92 DD235884/16/26 FASTENAL COMPANY671 MISC PARTS & SUPPLIES - UNIT #56 41.94 DD235894/16/26 HAWKINS, INC.809 Water Chemicals 769.55 DD235904/16/26 LOCATORS & SUPPLIES INC.417 SAFETY GLASSES 226.23 SAFETY GLASSES 56.55 Total for Check/Tran - 23590:282.78 DD235914/16/26 MMUA39 UNDERGROUND SCHOOL - 167 195 5.26 1,170.00 DD235924/16/26 NEGSTAD CONSULTING, LLC712 QUARTERLY COACHING - 181 220.00 QUARTERLY COACHING - 181 55.00 Total for Check/Tran - 23592:275.00 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520318 Page 1205/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference DD235934/16/26 NORTHERN TOOL43 COUPLER 27.18 DD235944/16/26 PLAISTED COMPANIES, INC.5056 ROCK FOR FSB PATIO 513.43 ROCK FOR FSB PATIO 73.34 Total for Check/Tran - 23594:586.77 DD235954/16/26 DANIEL R PLUDE5131 EMPLOYEE RECOGNITION - 196 67.33 EMPLOYEE RECOGNITION - 196 16.83 Total for Check/Tran - 23595:84.16 DD235964/16/26 RALPHIE'S MINNOCO8897 RALPHIE'S MINNOCO 90.18 DD235974/16/26 RESCO130 Spring Washers 88.00 Discount -0.04 Total for Check/Tran - 23597:87.96 DD235984/16/26 RUSSELL STUHR9276 RATCHET - UNIT #9 49.87 RATCHET - UNIT #9 1.63 Total for Check/Tran - 23598:51.50 DD235994/16/26 SUMMIT FIRE PROTECTION CO488 ANNUAL FIRE EXTINGUISHER INSPECTION 2,064.95 ANNUAL FIRE EXTINGUISHER INSPECTION 516.24 Total for Check/Tran - 23599:2,581.19 DD236004/16/26 WATER LABORATORIES INC135 WATER SAMPLING - MARCH 2026 396.00 DD236474/23/26 CITY OF ELK RIVER11 REVENUE TRANSFER - MARCH 2026 134,899.57 REVENUE TRANSFER - MARCH 2026 3,095.88 2026 QTR 1 FRANCHISE FEE 249,102.40 2026 QTR 1 FRANCHISE FEE-WRITE OFF -211.00 SEWER BILLED - MARCH 2026 251,259.11 STORMWATER BILLED - MARCH 2026 58,919.82 Total for Check/Tran - 23647:697,065.78 DD236484/23/26 CRC7448 CUSTOMER SERVICE AFTER HOURS 2,671.02 CUSTOMER SERVICE AFTER HOURS 667.75 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520319 Page 1305/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference Total for Check/Tran - 23648:3,338.77 DD236494/23/26 ELK RIVER GAS, INC493 FUEL 37.63 DD236504/23/26 GOPHER STATE ONE-CALL91 LOCATES FOR - MARCH 2026 306.52 LOCATES FOR - MARCH 2026 16.13 Total for Check/Tran - 23650:322.65 DD236514/23/26 MMUA39 2026 Q2 JTS & SAFETY TRAINING 2,565.00 2026 Q2 SAFETY TRAINING 10,516.00 2026 Q2 SAFETY TRAINING 2,629.00 Total for Check/Tran - 23651:15,710.00 DD236524/23/26 NISC9300 PRINT SERVICES INVOICE - MARCH 2026 6,551.49 PRINT SERVICES INVOICE - MARCH 2026 1,637.87 AGREEMENTS INVOICE - MARCH 2026 53.94 AGREEMENTS INVOICE - MARCH 2026 792.40 AGREEMENTS INVOICE - MARCH 2026 11,787.03 AGREEMENTS INVOICE - MARCH 2026 260.00 AGREEMENTS INVOICE - MARCH 2026 339.60 AGREEMENTS INVOICE - MARCH 2026 2,658.22 AGREEMENTS INVOICE - MARCH 2026 65.00 MISC INVOICE & REMIT SOFTWARE-MARCH 2026 747.71 Server 3,793.48 MISC INVOICE & REMIT SOFTWARE-MARCH 2026 186.93 Server 948.37 Total for Check/Tran - 23652:29,822.04 DD236534/23/26 RESCO130 FIBERGLASS ARM 6,195.00 Discount -3.10 Total for Check/Tran - 23653:6,191.90 DD236544/30/26 BEAUDRY OIL COMPANY6 DIESEL 4,390.27 UNLEADED FUEL 2,168.40 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520320 Page 1405/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference Total for Check/Tran - 23654:6,558.67 DD236554/30/26 CDW GOVERNMENT663 Equipment 2,893.17 Equipment 363.65 Equipment 723.30 Equipment 90.91 Total for Check/Tran - 23655:4,071.03 DD236564/30/26 ELK RIVER MUNICIPAL UTILITIES23 CYCLE 1 - INV GRP 421 - MARCH 2026 5,211.41 CYCLE 1 - ACCT 183 - MARCH 2026 1,532.23 CYCLE 1 - INV GRP 101 - MARCH 2026 3,853.27 CYCLE 1 - INV GRP 101 - MARCH 2026 22.37 CYCLE 1 - INV GRP 101 - MARCH 2026 723.34 CYCLE 1 - INV GRP 101 - MARCH 2026 616.68 CYCLE 1 - INV GRP 101 - MARCH 2026 180.83 MEADOWVALE BOOSTER - TRANSFORMER INSTALL 27,588.79 Total for Check/Tran - 23656:39,728.92 DD236574/30/26 FASTENAL COMPANY671 MISC PARTS & SUPPLIES 47.57 BOLTS 84.10 BOLTS 123.23 Total for Check/Tran - 23657:254.90 DD236584/30/26 INNOVATIVE OFFICE SOLUTIONS LLC6836 OFFICE SUPPLIES 29.18 OFFICE SUPPLIES 7.29 OFFICE SUPPLIES 102.25 OFFICE SUPPLIES 25.56 OFFICE SUPPLIES 12.57 OFFICE SUPPLIES 3.14 Total for Check/Tran - 23658:179.99 DD236594/30/26 MMUA39 RISK MGMT WEBINAR - 172 212.00 RISK MGMT WEBINAR - 172 53.00 Total for Check/Tran - 23659:265.00 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520321 Page 1505/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference DD236604/30/26 NCPERS MINNESOTA573 EXTRA LIFE INSURANCE - MAY 2026 297.60 EXTRA LIFE INSURANCE - MAY 2026 38.40 Total for Check/Tran - 23660:336.00 DD236614/30/26 RESCO130 ARRESTER 1,668.25 Discount -0.83 Total for Check/Tran - 23661:1,667.42 DD236624/30/26 MOTION AUTOMATION INTELLIGENCE716 Equipment 5,065.13 Equipment 145.87 Equipment 1,266.27 Equipment 36.46 Equipment 1,151.67 Equipment 287.92 Total for Check/Tran - 23662:7,953.32 CHK906714/2/26 ACE HARDWARE766 PARTS FOR MEZ GATE 20.60 PARTS FOR MEZ GATE 2.94 MISC PARTS & SUPPLIES 35.66 MISC PARTS & SUPPLIES 5.09 MISC PARTS & SUPPLIES - MEZ GATE 22.53 MISC PARTS & SUPPLIES - MEZ GATE 3.22 BOLTS & SCREWS 21.66 Total for Check/Tran - 90671:111.70 CHK906724/2/26 ALLINA HEALTH SYSTEM568 AED BATTERY PAK 2,015.00 CHK906734/2/26 AT & T MOBILITY4531 CELL PHONES & iPAD BILLING 41.07 CELL PHONES & iPAD BILLING 3,156.68 CELL PHONES & iPAD BILLING 17.60 CELL PHONES & iPAD BILLING 854.53 Total for Check/Tran - 90673:4,069.88 CHK906744/2/26 BLAINE LOCK & SAFE, INC.376 Door Replacement 4,662.89 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520322 Page 1605/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference Door Replacement 5,994.47 Total for Check/Tran - 90674:10,657.36 CHK906754/2/26 CINTAS28 MATS & TOWELS 529.75 MATS & TOWELS 75.67 MATS & TOWELS 529.75 MATS & TOWELS 75.67 Total for Check/Tran - 90675:1,210.84 CHK906764/2/26 SARAH DEHNE9997 INACTIVE REFUND 70.78 CHK906774/2/26 KARI DEMARCO9997 INACTIVE REFUND 161.96 CHK906784/2/26 NEYYA DHAMMA9997 INACTIVE REFUND 31.57 CHK906794/2/26 ELK HOLDINGS LLC9997 INACTIVE REFUND 60.19 CHK906804/2/26 ELK RIVER CUB FOODS9192 SAFETY TRAINING SNACKS 37.54 SAFETY TRAINING SNACKS 9.38 Total for Check/Tran - 90680:46.92 CHK906814/2/26 ETTA HOBBICK9997 Credit Balance Refund 108.93 CHK906824/2/26 ILLINOIS TOLLWAY832 FERN NC MUTUAL AID TOLLS 33.65 FERN NC MUTUAL AID TOLLS 68.15 Total for Check/Tran - 90682:101.80 CHK906834/2/26 LEWIS CUSTOM HOMES, INC9997 Credit Balance Refund 227.74 CHK906844/2/26 LEWIS CUSTOM HOMES, INC9997 Credit Balance Refund 134.84 CHK906854/2/26 MAIN ST PROPERTIES OF ER9997 INACTIVE REFUND 238.07 CHK906864/2/26 MARCO TECHNOLOGIES, LLC8605 OFFICE 365 - 2/24 to 3/23/26 1,313.88 OFFICE 365 - 2/24 to 3/23/26 305.28 Total for Check/Tran - 90686:1,619.16 CHK906874/2/26 DANIEL MATTSEN9997 INACTIVE REFUND 50.55 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520323 Page 1705/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference CHK906884/2/26 MENARDS145 HOSE FOR MOP SINK 13.20 HOSE FOR MOP SINK 1.89 MISC PARTS & SUPPLIES - MEZ GATE 49.45 MISC PARTS & SUPPLIES - MEZ GATE 7.07 MISC PARTS & SUPPLIES 8.94 MISC PARTS & SUPPLIES 38.80 MISC PARTS & SUPPLIES 23.56 Total for Check/Tran - 90688:142.91 CHK906894/2/26 AUSTIN MERRITT9997 INACTIVE REFUND 298.28 CHK906904/2/26 MOBOTREX, LLC14 TRAFFIC LIGHT LED 1,859.77 TRAFFIC LIGHT LED -135.77 Total for Check/Tran - 90690:1,724.00 CHK906914/2/26 MUTUAL OF OMAHA633 PFML - 2026 QTR 1 9,637.92 PFML - 2026 QTR 1 2,143.39 Total for Check/Tran - 90691:11,781.31 CHK906924/2/26 NAPA AUTO PARTS120 PARTS FOR UNIT #5 43.66 PARTS FOR UNIT #57 10.12 PARTS FOR UNIT #57 2.52 FUSES 5.04 PARTS FOR UNIT #57 54.35 PARTS FOR UNIT #57 13.58 Total for Check/Tran - 90692:129.27 CHK906934/2/26 RDO EQUIPMENT CO.3218 PARTS FOR UNIT #57 -39.84 PARTS FOR UNIT #57 507.14 PARTS FOR UNIT #57 -9.96 PARTS FOR UNIT #57 126.79 Total for Check/Tran - 90693:584.13 CHK906944/2/26 STUART C. IRBY CO.6107 PEDESTAL 26,291.83 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520324 Page 1805/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference CHK906954/2/26 VIKING ELECTRIC375 OXIDE INHIBITOR -93.39 OXIDE INHIBITOR 1,279.23 Total for Check/Tran - 90695:1,185.84 CHK906964/2/26 WESCO RECEIVABLES CORP.55 COLD SHRINK KIT 6,200.00 SPLICE COVER 2,066.40 COLD SHRINK TERMINATOR 923.58 COLD SHRINK TERMINATOR 1,036.56 Test Switch 299.88 Total for Check/Tran - 90696:10,526.42 CHK906974/2/26 MEGAN ZEECE9997 INACTIVE REFUND 43.88 CHK906984/9/26 AMARIL UNIFORM COMPANY2512 Employee Clothing - 142 622.53 Employee Clothing - 174 695.70 Employee Clothing - 178 288.03 Employee Clothing - 136 541.50 Employee Clothing - 106 202.58 Employee Clothing - 106 10.65 Employee Clothing - 32 370.00 Employee Clothing - 128 395.00 Employee Clothing - 9 416.53 Employee Clothing - 149 261.64 Employee Clothing - 149 13.76 Employee Clothing - 182 1,337.70 Employee Clothing - 167 1,200.50 Employee Clothing - 165 1,062.70 Employee Clothing - 190 1,595.95 Total for Check/Tran - 90698:9,014.77 CHK906994/9/26 GARY ANDERSON9997 Credit Balance Refund 199.65 CHK907004/9/26 BLUE CROSS BLUE SHIELD OF MINNES5224 VISION INSURANCE - MAY 2026 312.69 VISION INSURANCE - MAY 2026 89.73 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520325 Page 1905/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference Total for Check/Tran - 90700:402.42 CHK907014/9/26 CORE & MAIN LP54 COUPLINGS 878.00 CHK907024/9/26 DGR ENGINEERING656 ARC FLASH ASSESSMENT - FEB 2026 5,848.50 ELEC SYS COORD STUDY - FEB 2026 6,000.00 ELEC SYS STUDY - FEB 2026 3,500.00 EAST SUBSTATION - FEB 2026 1,431.00 MMPA SOLAR - FEB 2026 2,299.50 MMPA GAS FACILITY - FEB 2026 1,186.50 Total for Check/Tran - 90702:20,265.50 CHK907034/9/26 GALVANIZERS INC.118 East Sub Station 116,015.00 CHK907044/9/26 JAMES HAMMARLUND9997 Credit Balance Refund 120.46 CHK907054/9/26 HEALTHPARTNERS631 DENTAL EE INSURANCE - MAY 2026 1,063.62 DENTAL ER INSURANCE - MAY 2026 2,874.69 DENTAL EE INSURANCE - MAY 2026 182.09 DENTAL ER INSURANCE - MAY 2026 862.45 Total for Check/Tran - 90705:4,982.85 CHK907064/9/26 HUDSON HOMES MANAGEMENT9997 Credit Balance Refund 464.67 CHK907074/9/26 MARCO TECHNOLOGIES, LLC8605 MICROSOFT LICENSES - TO 3/24/27 14,429.70 MICROSOFT LICENSES - TO 3/24/27 3,557.85 Total for Check/Tran - 90707:17,987.55 CHK907084/9/26 MARCO TECHNOLOGIES, LLC8605 PRINTER MTC CONTRACT - 4/1 to 5/1/26 196.66 PRINTER MTC CONTRACT - 4/1 to 5/1/26 49.16 Total for Check/Tran - 90708:245.82 CHK907094/9/26 MENARDS145 SHOP TOOLS 39.89 MISC PARTS & SUPPLIES 38.65 Total for Check/Tran - 90709:78.54 CHK907104/9/26 MINNESOTA COMPUTER SYSTEMS INC119 COPIER MTC CONTRACT - 3/12 to 4/11/26 97.98 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520326 Page 2005/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference COPIER MTC CONTRACT - 3/12 to 4/11/26 24.50 Total for Check/Tran - 90710:122.48 CHK907114/9/26 MINNESOTA EQUIPMENT INC349 SLIP PLATE 34.17 CHK907124/9/26 MPCA279 AIR ANNUAL FEE 25.00 CHK907134/9/26 O'REILLY AUTOMOTIVE STORES, INC3769 MISC PARTS & SUPPLIES 25.88 PARTS FOR UNIT #57 8.25 PARTS FOR UNIT #57 2.06 Total for Check/Tran - 90713:36.19 CHK907144/9/26 PRIME ADVERTISING & DESIGN, INC.811 MONTHLY HOSTING OF WEBSITE 60.00 MONTHLY HOSTING OF WEBSITE 60.00 MONTHLY HOSTING OF WEBSITE 30.00 Total for Check/Tran - 90714:150.00 CHK907154/9/26 QUADIENT FINANCE USA, INC8606 POSTAGE MACHINE LEASE - 2/6 to 5/5/26 226.66 POSTAGE MACHINE LEASE - 2/6 to 5/5/26 56.66 Total for Check/Tran - 90715:283.32 CHK907164/9/26 REPUBLIC SERVICES, INC574 TRASH & RECYCLING SERVICE - MARCH 2026 1,494.12 TRASH & RECYCLING SERVICE - MARCH 2026 213.44 TRASH SERVICE - MARCH 2026 524.85 TRASH & RECYCLING SERVICE - MARCH 2026 87.44 TRASH & RECYCLING SERVICE - MARCH 2026 12.49 Total for Check/Tran - 90716:2,332.34 CHK907174/9/26 SHERBURNE COUNTY SHERIFF'S DEPA47 2026 RADIO MTC CONTRACT 4,256.00 2026 RADIO MTC CONTRACT 224.00 Total for Check/Tran - 90717:4,480.00 CHK907184/9/26 SHORT ELLIOTT HENDRICKSON INC159 FEASIBILITY STUDY 7,122.68 CHK907194/9/26 STUART C. IRBY CO.6107 ANIMAL GUARD 4,750.00 ADJUSTABLE FEED THRU 1,906.00 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520327 Page 2105/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference BUG WRENCH 96.53 Total for Check/Tran - 90719:6,752.53 CHK907204/9/26 JANELLE THOMPSON9997 Credit Balance Refund 107.42 CHK907214/9/26 TRACTOR SUPPLY CREDIT PLAN4532 TRACTOR SUPPLY 23.72 CHK907224/9/26 TRANSUNION331 SKIP TRACING - MARCH 2026 80.00 SKIP TRACING - MARCH 2026 20.00 Total for Check/Tran - 90722:100.00 CHK907234/9/26 WRUCK SEWER AND PORTABLE RENT5451 PORTABLE TOILET RENTAL SERVICE 16.18 CHK907244/16/26 ABDO LLP102 AUDIT SERVICES - 2025 5,160.00 AUDIT SERVICES - 2025 1,290.00 AUDIT SERVICES - 2025 lease crunchafi 655.20 Total for Check/Tran - 90724:7,105.20 CHK907254/16/26 ACE HARDWARE766 MISC PARTS & SUPPLIES 66.32 CHK907264/16/26 AMARIL UNIFORM COMPANY2512 Employee Clothing - 177 1,526.44 CHK907274/16/26 CORE & MAIN LP54 MISC PARTS & SUPPLIES -190.08 MISC PARTS & SUPPLIES 190.08 RISER 213.16 CHK907284/16/26 ELK RIVER WINLECTRIC122 SIDE CUT PLIERS -2.90 SIDE CUT PLIERS 39.83 PARTS FOR MEZ GATE -3.49 PARTS FOR MEZ GATE 47.76 PARTS FOR MEZ GATE -0.49 PARTS FOR MEZ GATE 6.81 WIRE FOR MEZ GATE -2.08 WIRE FOR MEZ GATE 28.51 WIRE FOR MEZ GATE -0.30 WIRE FOR MEZ GATE 4.07 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520328 Page 2205/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference TREATMENT PLANT #2 LIGHT -12.01 TREATMENT PLANT #2 LIGHT 164.63 Total for Check/Tran - 90728:270.34 CHK907294/16/26 GRAINGER80 COBALT CUTTER 189.46 CHK907304/16/26 GREATAMERICA FINANCIAL SERVICES730LEASE FOR COPIER AT PLANT 105.01 LEASE FOR COPIER AT PLANT 26.26 Total for Check/Tran - 90730:131.27 CHK907314/16/26 HOME DEPOT CREDIT SERVICES824 HOME DEPOT 155.06 HOME DEPOT 16.15 Total for Check/Tran - 90731:171.21 CHK907324/16/26 HP MINNESOTA I, LLC9997 Credit Balance Refund 276.32 CHK907334/16/26 J&R LARSON GROUNDS MAITENANCE,9999 Hydrant Rental Deposit Refund 1,488.69 CHK907344/16/26 NATHAN JACOBSON9997 INACTIVE REFUND 115.12 CHK907354/16/26 JASON KARAS9997 INACTIVE REFUND 98.77 CHK907364/16/26 SANTY KING9997 INACTIVE REFUND 108.90 CHK907374/16/26 MBI, INC.316 Piping 24,800.00 CHK907384/16/26 MENARDS145 MISC PARTS & SUPPLIES 3.17 MISC PARTS & SUPPLIES 8.91 MISC PARTS & SUPPLIES 66.24 HANG WHITEBOARD - 172 28.28 HANG WHITEBOARD - 172 4.05 MISC PARTS & SUPPLIES 12.14 MISC PARTS & SUPPLIES 22.66 PVC ELL - WELL #8 4.30 TIE WIRE -12.92 TARP 30.18 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520329 Page 2305/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference Total for Check/Tran - 90738:167.01 CHK907394/16/26 ED MUJICA9997 INACTIVE REFUND 182.56 CHK907404/16/26 PETERSON GROUP AGENCY INC9997 INACTIVE REFUND 216.51 CHK907414/16/26 PRIME ADVERTISING & DESIGN, INC.811 Marketing 1,500.00 CHK907424/16/26 RDO EQUIPMENT CO.3218 PARTS & LABOR FOR UNIT #53 415.80 PARTS FOR UNIT #54 -51.27 PARTS FOR UNIT #54 652.72 Total for Check/Tran - 90742:1,017.25 CHK907434/16/26 SHERBURNE COUNTY PUBLIC WORKS848 UTILITY PERMIT - CTY 35 100.00 CHK907444/16/26 JANET STAUPE9997 INACTIVE REFUND 198.98 CHK907454/16/26 STUART C. IRBY CO.6107 FAULT TRACKER 23,500.00 CHK907464/16/26 SUMMIT AR822 COMMISSIONS DUE COLLECTION AGENCY 247.07 CHK907474/16/26 WEST VIRGINIA PARKWAYS AUTHORI839 FERN NC MUTUAL AID TOLLS 14.00 FERN NC MUTUAL AID TOLLS 7.00 Total for Check/Tran - 90747:21.00 CHK907484/23/26 AMARIL UNIFORM COMPANY2512 Employee Clothing - 142 109.59 Employee Clothing - 135 596.40 Employee Clothing - 63 297.68 Employee Clothing - 63 74.42 Employee Clothing - 187 854.22 Employee Clothing - 157 712.50 Employee Clothing - 196 1,096.00 Employee Clothing - 162 1,733.75 Total for Check/Tran - 90748:5,474.56 CHK907494/23/26 BENEFIT EXTRAS, INC662 COBRA ADMIN - MARCH 2026 15.00 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520330 Page 2405/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference CHK907504/23/26 KELSEY BENSON9997 INACTIVE REFUND 20.48 CHK907514/23/26 TODD BIALON9997 INACTIVE REFUND 13.81 CHK907524/23/26 CARA R CARLSON9997 INACTIVE REFUND 50.84 CHK907534/23/26 CENTERPOINT ENERGY3982 NATURAL GAS & IRON REMOVAL - MAR 2026 1,792.00 NATURAL GAS & IRON REMOVAL - MAR 2026 764.25 Total for Check/Tran - 90753:2,556.25 CHK907544/23/26 CITY OF DAYTON5592 2026 QTR 1 FRANCHISE FEE 2,541.69 CHK907554/23/26 CITY OF OTSEGO3498 2026 QTR 1 FRANCHISE FEES 19,077.05 CHK907564/23/26 ECM PUBLISHERS INC25 CLASSIFIED AD - IT/OT SPECIALIST 218.68 CLASSIFIED AD - IT/OT SPECIALIST 54.67 Total for Check/Tran - 90756:273.35 CHK907584/23/26 JARED ERDMAN9997 INACTIVE REFUND 411.68 CHK907594/23/26 GRAINGER80 PIPE WRENCH 360.90 CHECK VALVE 65.80 Total for Check/Tran - 90759:426.70 CHK907604/23/26 YANA LIN9997 INACTIVE REFUND 150.80 CHK907614/23/26 MENARDS145 GARDEN STAKES 18.86 GARDEN STAKES 2.70 MISC PARTS & SUPPLIES 28.87 PARTS FOR UNIT #5 56.34 TIE WIRE 12.92 REBATE -13.49 REBATE -43.48 REBATE -5.12 MISC PARTS & SUPPLIES -38.81 Total for Check/Tran - 90761:18.79 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520331 Page 2505/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference CHK907624/23/26 MINNESOTA EQUIPMENT INC349 HARD HAT 140.31 CHK907634/23/26 MUTUAL OF OMAHA633 ELEC LIFE INSURANCE - MAY 2026 261.25 LIFE & LTD INSURANCE - MAY 2026 1,773.28 ELEC LIFE INSURANCE - MAY 2026 212.90 LIFE & LTD INSURANCE - MAY 2026 452.88 Total for Check/Tran - 90763:2,700.31 CHK907644/23/26 SPEEDCUTTERS OUTDOOR MAINTENA8141 LAWN MOWING SERVICES - APRIL 2026 890.02 LAWN MOWING SERVICES - APRIL 2026 2,197.70 Total for Check/Tran - 90764:3,087.72 CHK907654/23/26 STUART C. IRBY CO.6107 Oxide Paste 491.05 CHK907664/23/26 SUNBELT RENTALS, INC762 SCISSOR LIFT RENTAL 1,820.35 CHK907674/23/26 UC LABORATORY222 PHOSPHORUS SAMPLING - MARCH 2026 17.66 CHK907684/23/26 JOHN VANDENHOEK9997 INACTIVE REFUND 51.95 CHK907694/23/26 VERIFIED CREDENTIALS, LLC8381 BACKGROUND SCREENING - SKOOG 97.50 CHK907704/23/26 VIKING ELECTRIC375 FUSE PULLER 116.95 FUSE PULLER 23.29 FUSE PULLER 46.58 FUSE PULLER 23.29 Total for Check/Tran - 90770:210.11 CHK907714/23/26 WESCO RECEIVABLES CORP.55 INSERT FEED THRU 1,362.66 MISC PARTS & SUPPLIES 474.75 Mtce of OH Primary 487.50 Total for Check/Tran - 90771:2,324.91 CHK907724/23/26 WRUCK SEWER AND PORTABLE RENT5451 PORTABLE TOILET RENTAL-3/20 TO 4/16/26 106.58 CHK907734/30/26 ALTEC INDUSTRIES, INC398 TRAVEL FOR UNIT #9 567.00 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520332 Page 2605/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference CHK907744/30/26 AMARIL UNIFORM COMPANY2512 Employee Clothing - 203 438.72 Employee Clothing - 119 1,188.60 Total for Check/Tran - 90774:1,627.32 CHK907754/30/26 BATTERIES PLUS BULBS2920 EMERGENCY LIGHT BATTERIES 64.00 EMERGENCY LIGHT BATTERIES 9.14 Total for Check/Tran - 90775:73.14 CHK907764/30/26 BAYCOM, INC.8079 Toughbook 3,618.16 CHK907774/30/26 CINTAS28 MATS & TOWELS 529.75 MATS & TOWELS 75.67 MATS & TOWELS 529.75 MATS & TOWELS 75.67 Total for Check/Tran - 90777:1,210.84 CHK907784/30/26 HASSAN SAND & GRAVEL308 PULVERIZED TOPSOIL 473.94 Discount -8.79 PULVERIZED TOPSOIL 24.94 Discount -0.46 Total for Check/Tran - 90778:489.63 CHK907794/30/26 HPA US1 LLC9997 Credit Balance Refund 132.65 CHK907804/30/26 LENNAR HOMES9997 Credit Balance Refund 164.92 CHK907814/30/26 LENNAR HOMES9997 Credit Balance Refund 134.71 CHK907824/30/26 LENNAR HOMES9997 Credit Balance Refund 226.16 CHK907834/30/26 LENNAR HOMES9997 Credit Balance Refund 67.41 CHK907844/30/26 LGI HOMES, MN9997 Credit Balance Refund 219.34 CHK907854/30/26 LGI HOMES, MN9997 Credit Balance Refund 180.26 CHK907864/30/26 MARCO TECHNOLOGIES, LLC8605 ACE PROGRAM - 3/29 to 4/28/26 1,479.16 /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520333 Page 2705/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities 04/01/2026 To 04/30/2026 Bank Account: 5 - GENERAL FUND WITHDRAWALS Check / Tran Date Pmt Type AmountVendor NameVendor Reference ACE PROGRAM - 3/29 to 4/28/26 369.79 Total for Check/Tran - 90786:1,848.95 CHK907874/30/26 MENARDS145 MISC PARTS & SUPPLIES 24.64 MISC PARTS & SUPPLIES 23.61 GRINDING WHEELS 22.62 Total for Check/Tran - 90787:70.87 CHK907894/30/26 NAPA AUTO PARTS120 PARTS FOR UNIT #28 0.09 PARTS FOR UNIT #28 9.07 Total for Check/Tran - 90789:9.16 CHK907904/30/26 ST LOUIS MRO, INC463 PRE-EMPLOYMENT DRUG SCREENING - 203 25.00 CHK907914/30/26 STUART C. IRBY CO.6107 Tape 2,750.27 CHK907924/30/26 THE SHERWIN-WILLIAMS CO.2560 PAINT - WELL #2 94.80 CHK907934/30/26 THE UPS STORE 50933360 OFFICE SUPPLIES 18.85 OFFICE SUPPLIES 4.71 SHIPPING 17.10 Total for Check/Tran - 90793:40.66 CHK907944/30/26 USABLUEBOOK543 GATE VALVE & HYDRANT METER 2,030.81 CHK907954/30/26 WESCO RECEIVABLES CORP.55 Hoist 1,878.75 J-BOX 15,544.90 J Box 1,731.64 Total for Check/Tran - 90795:19,155.29 Total for Bank Account - 5 :(215)4,181,883.08 Grand Total :4,192,103.29(216) /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520334 Page 2805/01/2026 3:51:32 PM Rev: 202303050106 Accounts Payable Check Register Elk River Municipal Utilities PARAMETERS ENTERED: Check Date:04/01/2026 To 04/30/2026 Bank:All Vendor:All Check: Journal:All Format:All GL References/Amounts Extended Reference:No Check/TransactionSort By: Voids:None AllPayment Type: NoGroup By Payment Type: Minimum Amount:0.00 Authorization Listing:No Credit Card Charges:No /pro/rpttemplate/acct/2.64.1/ap/AP_CHK_REGISTER.xml.rpt2520335 Elk River Municipal Utilities Commission Meeting Minutes April 14, 2026 Page 1 ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION HELD AT UTILITIES CONFERENCE ROOM April 14, 2026 Members Present: Chair John Dietz, Vice Chair Mary Stewart, Commissioners Jill Larson-Vito, Matt Westgaard, and Nick Zerwas ERMU Staff Present: Mark Hanson, General Manager Sara Youngs, Administrations Director Melissa Karpinski, Finance Manager Tony Mauren, Governance & Communications Manager Tom Geiser, Operations Director Chris Sumstad, Electric Superintendent Mike Tietz, Technical Services Superintendent Dave Ninow, Water Superintendent Megan Zachman, HR Generalist Jenny Foss, Communications & Administrative Coordinator Others Present: Jared Shepherd, Attorney; Justin Nilson, Partner with Abdo Solutions; Susan Johnson, Clerk for the City of Buffalo, Minnesota 1.0 GOVERNANCE 1.1 Call Meeting to Order Prior to the meeting, Mr. Mauren introduced Ms. Johnson, who was auditing the meeting as preparation for the City of Buffalo’s formation of a utilities commission. The regular meeting of the Utilities Commission was called to order at 3:30 p.m. by Chair Dietz. 1.2 Pledge of Allegiance The Pledge of Allegiance was recited. 1.3 Consider the Agenda Moved by Commissioner Westgaard and seconded by Commissioner Larson-Vito to approve the April 14, 2026, agenda. Motion carried 5-0. 1.4 Resolution Recognizing 2026 Drinking Water Week Mr. Ninow highlighted the importance of Drinking Water Week, scheduled for May 3-9, 2026, as being an opportunity to recognize the essential work of the Utility’s water teams in ensuring clean, safe water for the community. 36 Elk River Municipal Utilities Commission Meeting Minutes April 14, 2026 Page 2 Moved by Commissioner Stewart and seconded by Commissioner Westgaard to adopt Resolution 26-3 Recognizing Drinking Water Week, May 3-9, 2026. Motion carried 5-0. 1.5 Resolution Recognizing 2026 Lineworker Appreciation Day Chris Sumstad announced that Lineworker Appreciation Day would be celebrated on April 18, 2026. He acknowledged the utility's eight lineworkers and two forepersons for their dedication and highlighted key achievements, including mutual aid responses and participation in the national rodeo competition. Moved by Commissioner Larson-Vito and seconded by Commissioner Stewart to adopt Resolution 26-4 Recognizing Lineworkers and Designating April 18, 2026, as Lineworker Appreciation Day. Motion carried 5-0. 1.6 Recognition of American Public Power Association Certificate of Excellence in Reliability Mr. Tietz announced that the utility again received the Certificate of Excellence in Reliability from the American Public Power Association (APPA) for its improved performance in 2025, with the average customer outage duration dropping to just under 19 minutes. Mr. Tietz commended all staff for their efforts which contribute to this result. 1.7 Recognition of American Public Power Association Safety Award of Excellence Ms. Zachman informed the Commission that the utility had received the Diamond Level Safety Award of Excellence from the APPA, the highest level of recognition, based on a low incident record in 2026 and strong overall safety culture. 1.8 Recognition of American Public Power Association Reliable Public Power Provider Designation Mr. Tietz reported that the Utility achieved the Diamond Level RP3 designation from the APPA for the first time. This three-year designation recognizes excellence in reliability, safety, workforce development, and system improvement. Commissioner Stewart proposed a round of applause for staff for these accomplishments. 2.0 CONSENT AGENDA (Approved By One Motion) Moved by Commissioner Westgaard and seconded by Commissioner Zerwas to approve the Consent Agenda as follows: 2.1 Check Register – March 2026 2.2 Regular Meeting Minutes – March 10, 2026 37 Elk River Municipal Utilities Commission Meeting Minutes April 14, 2026 Page 3 2.3 Resolution Electing Not to Waive Statutory Tort Limits for Liability Insurance 2.4 Summary of Information Security Committee Closed Session 2.5 Mission, Vision, Values Policy Updates 2.6 2026 Schedule of Rate and Fees Update Motion carried 5-0. 3.0 OPEN FORUM No one appeared for open forum. 4.0 POLICY & COMPLIANCE 4.1 2025 Financial Audit Mr. Nilson from Abdo presented ERMU’s 2025 audit results, which issued a clean, unmodified opinion, the highest possible result, with no significant deficiencies or internal control findings. The audit confirmed full compliance with all tested Minnesota state statutes. During discussion it was noted that on page 103 of the packet the 2026 rate adjustments for electric and water had been misstated and should read 2% increase for electric and 4% increase for water. This was noted for correction. There was discussion about the opportunity to prepay or refinance outstanding bonds when advantageous to the utilities. Moved by Commissioner Stewart and seconded by Commissioner Westgaard to receive and file the 2025 Annual Financial Report. Motion carried 5-0. 4.2 2025 Year End Reserve Balance Ms. Karpinski presented her memo which recommends that unrestricted reserve balances above target levels for the Water Utility fund, calculated at $588,000, be designated to the Electric Utility fund as an inter-fund loan to support upcoming substation work. Moved by Commissioner Westgaard and seconded by Commissioner Zerwas to designate unrestricted reserve balances above target levels for Water funds. Motion carried 5-0 4.3 2025 Utilities Performance Incentive Compensation Distribution Ms. Karpinski presented the memo which called for a 2% distribution to qualifying employees per the terms of the policy and based upon staff achieving all stated metrics. 38 Elk River Municipal Utilities Commission Meeting Minutes April 14, 2026 Page 4 The Commission discussed the practice of reviewing the metrics for the program to ensure they are set at the appropriate level. There was discussion about the Wage & Benefits Committee reviewing them for 2027 in the fall. Moved by Commissioner Zerwas and seconded by Commissioner Stewart to award the Performance Metrics and Compensation Distribution of 2% to qualifying employees per the terms of the policy. Motion carried 5-0. 5.0 BUSINESS ACTION 5.1 Financial Report – February 2026 Ms. Karpinski presented the financial report for February 2026 showing that year-to-date, the combined utilities show a net margin position of approximately $1.2 million, which is $1.1 million favorable to the budget. Ms. Karpinski noted the Energy Adjustment Clause from the power provider has been lower than anticipated in recent months, which has allowed ERMU to not include a passthrough Power Cost Adjustment to customers. There was discussion. Moved by Commissioner Zerwas and seconded by Commissioner Larson-Vito to receive the February 2026 Financial Report. Motion carried 5-0. 5.2 2025 Annual Reliability Report Mr. Tietz presented his memo which highlighted report data on ERMU’s result from the 2025 eReliaiblity Tracker. He explained that the results demonstrate a solidly built electric system and excellence response times by crews. Mr. Tietz added that ERMU doesn’t remove major events from its calculation of outage times in order for the Utility to hold itself to a higher standard. He also thanked the Commission for regularly budgeting for tree trimming service as that helps reduce outages caused by falling limbs. Moved by Commissioner Westgaard and seconded by Commissioner Stewart to receive the 2025 Annual Reliability Report. Motion carried 5-0. 5.3 Information Technologies Services Memorandum of Understanding with the City of Elk River Ms. Youngs presented an updated Memorandum of Understanding (MOU) for Information Technology (IT) services between ERMU and the City of Elk River. The MOU is intended to 39 Elk River Municipal Utilities Commission Meeting Minutes April 14, 2026 Page 5 support reliable operations, enhance the partnership between the City and ERMU, and align with current technology and cybersecurity needs. There was discussion about budgeting for future IT needs. Moved by Commissioner Stewart and seconded by Commissioner Zerwas to approve Information Technologies Services Memorandum of Understanding with the City of Elk River. Motion carried 5-0. 5.4 Letter of Intent for Large Industrial Electric Load Mark Hanson presented a non-binding letter of intent with a developer for a data center to potentially be sited in ERMU’s service territory. He explained that ERMU can support a 33 MW load brought on in two phases. Per policy, the developer will be responsible for all system upgrade costs, currently estimated at just under $6.5 million. A system impact study by Great River Energy, coordination with ERMU’s power provider Minnesota Municipal Power Agency (MMPA), and a Conditional Use Permit from the City of Elk River are required. The developer will use a closed-loop cooling system, not the municipal water supply, for ongoing cooling purposes. There was discussion about the future rate structures for data centers. Moved by Commissioner Stewart and seconded by Commissioner Zerwas to Approve Letter of Intent for Large Industrial Electric Load. Motion carried 5-0. 6.0 BUSINESS DISCUSSION 6.1 Staff Updates The Commission received notice that a link to complete Mr. Hanson’s annual performance evaluation should be in their email inbox. City staff is bringing updated, clarifying ordinance language regarding commission compensation before the City Council, with a target of the first meeting in May. Following that update, the Commission will be able to institute its new compensation rates and structures decided at the March meeting. 6.2 City Council Update Chair Dietz provided a City Council Update. 40 Elk River Municipal Utilities Commission Meeting Minutes April 14, 2026 Page 6 6.3 Future Planning Chair Dietz announced the following: a. Regular Commission Meeting – May 12, 2026 1. Closed Meeting: General Manager Performance Review b. 2026 Governance Agenda 6.4 Other Business There was discussion about the Sherburne County Board of Commissioners recent denial of Minnesota Municipal Power Agency’s (MMPA) solar field project in Big Lake Township. Mr. Hanson shared that the topic would be discussed at a future MMPA board meeting. 7.0 ADJOURN REGULAR MEETING Moved by Commissioner Westgaard and seconded by Commissioner Larson-Vito to adjourn the regular meeting of the Elk River Municipal Utilities Commission at 5:36 p.m. Motion carried 5-0. Minutes prepared by Tony Mauren. ___________________________________ John J. Dietz, ERMU Commission Chair ___________________________________ Justin Dunford, City Clerk 41 ______________________________________________________________________________ Page 1 of 1 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Melissa Karpinski – Finance Manager MEETING DATE: May 12, 2026 AGENDA ITEM NUMBER: 2.3 SUBJECT: 2026 First Quarter Utilities Performance Metrics Scorecard Statistics ACTION REQUESTED: None BACKGROUND: Following the Commission’s adoption of the Performance Metrics program in December 2012, and its most recent revision in 2025, staff will track performance for 2026, with any related incentive awards to be distributed in 2027. This program incentivizes employee performance aligned with the company’s core values. Metrics are organized into categories and subcategories with measurable targets that require companywide collaboration. Achievement of these goals is intended to drive improved service and increased value for customers. DISCUSSION: At close of the fiscal year 2026, and following the completion of the audit, the final scorecard will be evaluated and presented to the Commission in 2027 for consideration of the related distribution. Staff will monitor and report progress on a quarterly basis throughout 2026. The first quarter scorecard is attached and includes notes summarizing initial results. FINANCIAL IMPACT: No immediate financial impact. An accrual has been recorded based on first quarter 2026 performance results, subject to adjustment as performance progresses throughout the year. Final financial impact will be determined upon Commission approval of the incentive distribution in 2027. ATTACHMENTS: • Performance Metrics and Incentive Compensation Policy Scorecard – 2026 1st Quarter 42 Elk River Municipal Utilities G.4g1a - Performance Metrics and Incentive Compensation Policy Scorecard - 2026 Category Percent Sub-Category Sub- Percent Goal Score Awarded Multiplier Percent Water Quality Standards 5 Meet Requirements met requirement Lead and Copper quality 5 90th percentile met requirement Bacteria Detection 5 0 positive samples 0 on target CAIDI 5 <120 Min 92.95 on target SAIDI 5 <60 Min 0.4089 on target SAIFI 5 <0.4 0.00434 on target Line Loss 5 <5%-0.28%on target Water Loss 5 <12%6.20%on target Employee Turnover 10 < 7.5%0%on target Participation in Recommended and Mandatory Trainings 10 95%88%off target Margins/Net Profit 15 > Budget on target Inventory Accuracy 5 >98%99.999%on target Clean Energy Choice Program Participation 5 +30 net +1 off target Conservation Improvement Program 5 >95%51%off target Strategic Plan 10 Dashboard Progress (Average)10 >50%47.56%off target 1.4% Adopted December 12, 2012 Revised October 11, 2016 Revised December 17, 2019 Revised December 14, 2021 Revised December 13, 2022 Revised December 12, 2023 Revised December 10, 2024 Communications/ Customer Service 10 Total Multiplier: Safety, Reliability and Quality of Utility Services 40 Workforce Development 20 Financial Goals 20 43 ______________________________________________________________________________ Page 1 of 2 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Melissa Karpinski – Finance Manager MEETING DATE: May 12, 2026 AGENDA ITEM NUMBER: 2.4 SUBJECT: 2026 First Quarter Delinquent Items ACTION REQUESTED: Approve the 2026 first quarter delinquent items submitted. BACKGROUND: First quarter delinquent items are presented for your review. We have previously reported on four different categories of delinquents as follows: • Assessments are delays in collecting the money owed and is assessed to the property taxes in the fall. Please note this number will only be presented in the fourth quarter. • Collections amounts are those we send to the collection agency to try and collect after we have exhausted all our internal collection efforts. We receive 70% of the amounts collected after the agency receives their split. • Revenue Recapture (RR) is the program through the state where funds are collected from individuals’ tax refunds and remitted to us, with the balance (if any) remitted to the individual. It presents an opportunity to collect funds rather than splitting with a collection agency or having to write them off completely. There is a six-year limit for keeping items on RR and if uncollected at this time, amounts are removed and written off. • Write Offs are amounts removed from the books with no further collection efforts being extended. DISCUSSION: I have for review recap comparisons with last year, identifying the categories and amounts for each quarter and the running totals. Regarding the first quarter totals: • The amounts listed for assessments culminate in the fourth quarter and include items previously submitted to other collection services, and if not collected, are removed, and assessed. The assessment amount for 2026 is $0.00 as there has been no activity yet for this year. • The amounts submitted only to Collection Agencies for 2026 is $0.00. Please note that amounts submitted to Revenue Recapture were also submitted to Collection Agencies. • The amounts submitted to Revenue Recapture were higher than the prior year. The Q1 2026 RR amount is $11,455.15. We collected a total of $8,339.74 from RR in Q1 2026. 44 ______________________________________________________________________________ Page 2 of 2 • Write Offs for Q1 2026 of $2,140.90 is less than the prior year. $1,448.14 of the Write- Offs were due to the removal of old account balances due to a six-year limit mandated by the state. The attached report shows those dollars submitted to both the Collection Agency and RR. The first quarter totals are $11,455.15 broken down by provider are: $5,997.66 for Electric, $4,679.75 for Water, $268.58 for Sewer, $242.60 for Trash, $215.16 for Franchise Fees, and $51.40 for Storm Water. Our allowance for doubtful accounts (a reserve for bad debt/write-offs) is $25,605. According to the American Public Power Association’s most recent published standard ratios, the industry standard is between $.0001 and $.0037. The Central region median is $.008. Based off the latest survey ERMU is $.0004. ATTACHMENTS: • 2026 First Quarter Delinquent Items Comparison • 2026 First Quarter Delinquent Items Submitted 45 Delinquent Items Comparisons Year Quarter Assessments Collection Agency Revenue Recapture Rev Recap/Coll Agen Write-Offs Rev Recap Pmts 2022 1 - - 6,446.46 6,446.46 1,405.27 6,749.22 2022 2 - - 7,547.92 7,547.92 2,402.70 3,648.77 2022 3 - - 15,900.91 15,900.91 4,364.37 2,285.05 2022 4 9,042.25 - 6,796.66 6,796.66 6,008.66 167.94 2023 1 - 520.00 7,160.11 7,680.11 1,961.37 7,179.17 2023 2 - - 5,379.18 5,379.18 22,049.08 3,449.26 2023 3 - - 5,514.33 5,514.33 1,643.54 2,723.58 2023 4 10,994.99 465.14 12,853.33 13,318.47 5,222.43 1,564.65 2024 1 - - 2,879.26 2,879.26 2,962.89 8,955.64 2024 2 - - 5,095.50 5,095.50 4,102.00 3,166.13 2024 3 - - 8,444.30 8,444.30 6,495.34 1,322.98 2024 4 15,379.59 - 9,691.36 9,691.36 2,498.27 258.83 2025 1 - - 3,379.27 3,379.27 3,097.48 10,193.73 2025 2 - 147.98 6,313.45 6,461.43 2,082.66 5,004.02 2025 3 - - 5,614.42 5,614.42 2,772.02 1,321.75 2025 4 32,397.42 - 7,936.25 7,936.25 1,444.83 488.24 2026 1 - - 11,455.15 11,455.15 2,140.90 8,339.74 2026 2 - 2026 3 - 2026 4 - 0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 2022 2023 2024 2025 2026 Quarterly Write-Offs by Year 1 2 3 4 Quarter 0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 2022 2023 2024 2025 2026 Quarterly Amts Submitted for Collection by Year 1 2 3 4 Quarter 46 0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500 30,000 32,500 2022 2023 2024 2025 2026 Total Assessments 2022 2023 2024 2025 2026 Year 0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500 30,000 32,500 2022 2023 2024 2025 2026 Total Write-Offs 2022 2023 2024 2025 2026 Year 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2022 2023 2024 2025 2026 Rev Recap to Write-Off Comparison Total Submitted to RR Total RR Pmts Total Write-Offs Values 47 Sum of Total AR Agency Provider B 1ERUE 5,997.66$ 2ERUW 4,679.75$ 3CTYS 268.58$ 4CTYT 242.60$ 6CTYF 215.16$ 7CTYS 51.40$ Grand Total 11,455.15$ 48 ______________________________________________________________________________ Page 1 of 2 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Tony Mauren – Governance & Communications Manager MEETING DATE: May 12, 2026 AGENDA ITEM NUMBER: 4.1 SUBJECT: Commission Compensation ACTION REQUESTED: • Adopt Resolution No. 26-6 - Utilities Commission Bylaws Amendment • Adopt Resolution No. 26-7 - Commission Compensation • Adopt ERMU Policy – G.2j – Commission Compensation BACKGROUND: Currently ERMU Commissioners are compensated $150 per month for their work on the body and receive a $75 per day stipend for additional activities such as representing the Utilities at meetings, conferences, and events outside of commission meetings. These amounts were last reviewed in November 2015. As it has been over ten years since that review, staff conducted a survey of Minnesota municipal utilities governed by a commission to compile data on compensation. During the February and March 2026 meetings, the Commission reviewed data from 15 municipal utilities which, among other data points, showed that the overall average monthly compensation for those bodies is $277. Removing the two electric-only utilities brought the average monthly compensation up to $307/month. Ultimately, the Commission adopted a monthly compensation rate of $300, increased the addition activities stipend to $85, created a board meeting preparation day stipend of $85, and established a three-year review cycle on the rates and structure. DISCUSSION: ERMU staff has prepared the attached documents for commission adoption to implement the compensation rates and structure, effective May 2026. 1. Resolution No. 26-6 - Utilities Commission Bylaws Amendment, align commission policy with ordinance language on commission compensation updated at the May 4, 2026, City Council meeting. Redline updates to the Bylaws are also attached. 49 ______________________________________________________________________________ Page 2 of 2 2. Resolution No. 26-7 – Commission Compensation formally establishes the compensation rates so that they are accessible without needing to include dollar amounts in policy. This resolution is to be reviewed for update and adoption every three years. 3. ERMU Policy – G.2j – Commission Compensation establishes the three compensation categories, the terms of these categories, and a standing three-year review of the policy, rates, and structure. FINANCIAL IMPACT: None. ATTACHMENTS: • Resolution No. 26-6 - Utilities Commission Bylaws Amendment • Redlines - ERMU Policy - G.1a - Bylaws • Resolution No. 26-7 - Commission Compensation • ERMU Policy – G.2j – Commission Compensation 50 RESOLUTION NO. 26-6 BOARD OF COMMISSIONERS ELK RIVER MUNICIPAL UTILITIES A RESOLUTION OF THE BOARD OF COMMISSIONERS OF ELK RIVER MUNICIPAL UTILITIES TO AMEND ITS BYLAWS. WHEREAS, Chapter 2, Article V, Section 2-195 of the City of Elk River’s Code Ordinances was amended on May 4, 2026, to state that: Members of the Economic Development Authority, Housing and Redevelopment Authority, and the Public Utilities Commission may receive compensation for their service, from the funds of the respective authority or commission, and compensation for those members shall be set by enabling resolutions, policies, or bylaws, and, as applicable, limits imposed by statute and the city council. ;and WHEREAS, Article III, Section 5 of Elk River Municipal Utilities Bylaws does not reflect that language in stating “No member of the Commission shall receive a salary except as fixed by the City Council”; and WHEREAS, Staff is seeking to align the governing language; NOW, THEREFORE, BE IT RESOLVED THAT ARTICLE III, SECTION 5 OF ELK RIVER MUNICIPAL UTILITIES BYLAWS SHALL READ. Section 5. The Commission shall establish its own compensation structure and rates within any limits imposed by statute or the City Council. Compensation shall be budgeted for and paid by Elk River Municipal Utilities. This Resolution Passed and Adopted this 12th day of May 2026. John J. Dietz, Chair Mark Hanson, General Manager 51 ______________________________________________________________________________ Page 1 of 4 COMMISSION POLICY Section: Category: Governance Authorities and Purpose Policies Policy Reference: Policy Title: G.1a Bylaws ARTICLE I – AUTHORITY Section 1. The Village of Elk River Water, Light, Power and Building Commission was created on July 11, 1947, by resolution adopted by the Village of Elk River Trustees. Section 2. Pursuant to Minnesota Statutes, Section 412.331, adopted in 1949, any water, light, power and building commission then in existence was required to thereafter operate as a public utilities commission under Minnesota Statutes, Sections 412.321 to 412.391. The Village of Elk River Water, Light, Power and Building Commission became Elk River Municipal Utilities. Section 3. Elk River Municipal Utilities is a public utilities commission operating pursuant to and subject to Minnesota Statutes, Sections 412.321 to 412.391 and Elk River City Code Sections 2-271 to 2-276. ARTICLE II – JURISDICTION Section 1. Elk River Municipal Utilities has jurisdiction over: A. The City of Elk River Municipal electric utility; and B. The City of Elk River water utility. ARTICLE III – COMMISSION MEMBERSHIP Section 1. Pursuant to Laws of Minnesota 2016, Chapter 97 – House File No. 2718, and Elk River City Code Section 2-271, the Elk River Municipal Utilities Commission shall consist of five members. No more than two members may also serve as City Council members. Section 2. Commissioners shall be appointed by the City Council to staggered terms. 52 ERMU Commission Policy – G.1a Bylaws ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 4 Section 3. Each Commissioner shall serve for a term of three years and until a successor is appointed and qualified. Section 4. Commissioners shall comply with the City’s conflict of interest ordinance, Elk River City Code Sections 2-131 to 2-135. Section 5. No member of the Commission shall receive a salary except as fixed by the City Council. The Commission shall establish its own compensation structure and rates within any limits imposed by statute or the City Council. Compensation shall be budgeted for and paid by Elk River Municipal Utilities. ARTICLE IV – OFFICERS Section 1. The Commission shall annually choose a president from among its members. The president shall be designated the Chair of the Commission and shall perform such duties as shall be delegated to the Chair in the Commission’s adopted policies Section 2. The Commission may also annually appoint a Vice-Chair of the Commission who shall perform such duties as shall be delegated to the Vice-Chair in the Commission’s adopted policies. The Vice-Chair shall preside at meetings of the Commission if the Chair is absent. Section 3. The Commission shall also appoint a Secretary for an indefinite term. The Secretary need not be a member of the Commission and shall perform such duties as shall be delegated to the Secretary in the Commission’s adopted policies. Section 4. The Commission shall have the power to revoke a Commission member’s appointment as Chair or Vice-Chair, and appoint a replacement Chair or Vice Chair, if the Commission determines, by a vote of a majority of its members, to do so. The Commission shall also have the power to replace the Secretary at any time by a vote of the majority of its members. ARTICLE V – MEETINGS Section 1. The Commission shall hold at least one regular meeting each month, on the day and at the time designated by the Commission from time to time. Regular meetings shall be noticed as required by Minnesota Statutes. Section 2. The Commission may hold special meetings from time to time at the request of the Chair or the request of two other Commissioners. Special meetings shall be noticed as required by Minnesota Statutes. Section 3. A majority of the Commissioners shall constitute a quorum for the transaction of business, and the votes of a majority of the Commissioners present shall be sufficient to adopt any motion or resolution. The votes of members on any action shall be taken by ayes and nays recorded in the minutes. 53 ERMU Commission Policy – G.1a Bylaws ______________________________________________________________________________ ______________________________________________________________________________ Page 3 of 4 Section 4. Commission meetings are open to the public unless closed as authorized by Minnesota Statutes, and shall be governed by Roberts Rules of Order, latest revised edition, for all situations to which they apply and in which they are not inconsistent with these Bylaws, the Commission’s adopted Policies, and any special rules of order that the Commission may adopt.. ARTICLE VI – POWERS Section 1. The Commission shall have all of the powers enumerated in Minnesota Statutes, Section 412.361 and, except as provided in the Bylaws and the Commission’s adopted Policies, shall exercise those powers on its own behalf. ARTICLE VII – GENERAL MANAGER Section 1. The Commission shall have the power to appoint a General Manager, whose responsibilities, duties, limits of authority and accountability to the Commission shall be set forth in these Bylaws and as designated by the Commission from time to time in its adopted Policies. Section 2. The General Manager shall have the authority to implement the Commission’s powers under Minnesota Statutes, Section 412.361, Subds. 1 and 2 to enter into contracts for the operation of the utility and to employ all necessary help for the management and operation of the public utility, by entering into contracts and employing personnel consistent with the Commission’s adopted budget and pay plan. However, all contracts requiring public bidding, all contracts falling under Minnesota Statutes, Section 412.361, Subds. 3, 4 and 5, and all contracts required by the Commission’s adopted Policies to be approved by the Commission, shall be approved by the Commission. Section 3. If the position of the General Manager is vacant, the Commission may designate another to perform all or some of the General Manager’s duties. ARTICLE VIII – FINANCES, FUNDS AND REPORTS Section 1. The Commission shall maintain the funds, conduct the audits and make the reports required by Minnesota Statutes, Sections 412.371 and 412.381. ARTICLE IX – APPLICATION AND AMENDMENT Section 1. In the event that any provision of these Bylaws is or may be in conflict with the laws of any governmental body or power having jurisdiction over the Elk River Municipal Utilities Commission, or over the subject matter to which such provision of these Bylaws applies or may apply, such provision of these Bylaws shall be inoperative to the extent only that the operation thereof unavoidably conflicts with such law and shall in all other respects be in full force and effect. 54 ERMU Commission Policy – G.1a Bylaws ______________________________________________________________________________ ______________________________________________________________________________ Page 4 of 4 Section 2. These Bylaws may be amended by the Commission at any regular meeting by a majority vote of the entire Commission, provided the proposed amendment is on the agenda and made public no later than three days before the meeting. Section 3. In addition to these Bylaws, the Commission may adopt, from time to time, Governance Policies (adopted Policies) that are not inconsistent with these Bylaws. BYLAW HISTORY: Adopted June 13, 2017 Revised May 12, 2026 55 RESOLUTION NO. 26-7 BOARD OF COMMISSIONERS ELK RIVER MUNICIPAL UTILITIES A RESOLUTION OF THE BOARD OF COMMISSIONERS OF ELK RIVER MUNICIPAL UTILITIES TO SET THE COMMISSION COMPENSATION STRUCTURE AND RATES. WHEREAS, commission compensation is intended to recognize the time, effort, and expertise required to fulfill duties; attract and retain qualified members; and promote accountability; and WHEREAS, the board received data at the February 2026 regular meeting that the compensation rate for Elk River Municipal Utilities commissioners was below the average of 15 peer utilities; and WHEREAS, Elk River Municipal Utilities seeks to establish a clear, consistent framework for compensating members of the Commission for their service; NOW, THEREFORE, BE IT RESOLVED THAT ELK RIVER MUNICIPAL UTILITIES COMMISSIONERS SHALL BE COMPENSATED AS FOLLOWS. 1. Monthly compensation of $300 for service and participation in commission business, such as reviewing meeting materials, correspondence, and attending regular and special meetings. Monthly compensation does not depend on meeting attendance. 2. Daily compensation of $85 for representing Elk River Municipal Utilities at approved additional activities beyond commission business, such as community engagement, external board meetings, or conferences. 3. Daily compensation of $85 for preparation to serve on approved external boards. This is supplemental to the daily compensation rate of $85 for representing ERMU at additional activities beyond commission business. Commissioners will be compensated for one (1) day of preparation per event. This Resolution Passed and Adopted this 12th day of May 2026. John J. Dietz, Chair Mark Hanson, General Manager 56 ______________________________________________________________________________ Page 1 of 1 COMMISSION POLICY Section: Category: Governance Governance Policies Policy Reference: Policy Title: G.2j Commission Compensation PURPOSE: The purpose of this policy is to establish a clear, consistent framework for compensating members of the Commission for their service. Compensation is intended to recognize the time, effort, and expertise required to fulfill Commission duties; attract and retain qualified members; and promote accountability. This policy aligns compensation practices with applicable state statutes and Article V, Division 1, Section 2-195 of the City of Elk River’s Code of Ordinances. POLICY: Commission members shall receive compensation for the following: 1. Monthly compensation for service and participation in commission business, such as reviewing meeting materials, correspondence, and attending regular and special meetings. Monthly compensation does not depend on meeting attendance. 2. Daily compensation for representing ERMU at approved additional activities beyond commission business, such as community engagement, external board meetings, or conferences. 3. Daily compensation for preparation to serve on approved external boards. This is supplemental to the daily compensation rate for representing ERMU at additional activities beyond commission business. Commissioners will be compensated for one (1) day of preparation per event. Commission compensation shall be reviewed every three (3) years to ensure it remains appropriate, equitable, and aligned with the responsibilities of commission service. POLICY HISTORY: Adopted May 12, 2026 57 ______________________________________________________________________________ Page 1 of 2 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Melissa Karpinski – Finance Manager MEETING DATE: May 12, 2026 AGENDA ITEM NUMBER: 5.1 SUBJECT: Financial Report – March 2026 ACTION REQUESTED: Receive the March 2026 Financial Report DISCUSSION: Please note that these are the preliminary unaudited financial statements. Electric March year to date (YTD) electric kWh sales are up 3% compared to the prior year. The breakdown is as follows: • Residential usage increased 1% • Small Commercial usage decreased by less than 0.5% • Large Commercial usage increased 4% For March 2026, the Electric Department is performing ahead of the prior YTD and is favorable to the YTD budget. Additional variance analysis is provided in the attached Summary Electric Statement of Revenues, Expenses and Changes in Net Position. Water March YTD gallons of water sold are up 2% compared to the prior year. The breakdown is as follows: • Residential usage increased by less than 0.5% • Commercial usage increased 3% For March 2026, the Water Department is performing behind the prior YTD results and unfavorable to the YTD budget. Additional variance analysis is provided in the attached Summary Water Statement of Revenues, Expenses and Changes in Net Position. ATTACHMENTS: • Balance Sheet • Electric Balance Sheet • Water Balance Sheet • Summary Electric Statement of Revenues, Expenses and Changes in Net Position • Summary Water Statement of Revenues, Expenses and Changes in Net Position 58 ______________________________________________________________________________ Page 2 of 2 • Graphs Prior Year and YTD 2026 • Detailed Electric Statement of Revenues, Expenses and Changes in Net Position • Detailed Water Statement of Revenues, Expenses and Changes in Net Position • Financial Presentation 59 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA COMBINED BALANCE SHEET FOR PERIOD ENDING MARCH 2026 ELECTRIC WATER ASSETS CURRENT ASSETS CASH 6,449,1723,622,386 ACCOUNTS RECEIVABLE 5,985,2572,622,803 INVENTORIES 76,0102,643,554 PREPAID ITEMS 77,561274,226 CONSTRUCTION IN PROGRESS 102,6942,645,109 TOTAL CURRENT ASSETS 12,690,69511,808,076 RESTRICTED ASSETS BOND RESERVE FUND 01,779,016 EMERGENCY RESERVE FUND 4,334,4197,823,914 UNRESTRICTED RESERVE FUND 00 TOTAL RESTRICTED ASSETS 4,334,4199,602,930 FIXED ASSETS PRODUCTION 17,316,297795,920 LFG PROJECT 00 TRANSMISSION 02,305,024 DISTRIBUTION 31,206,71457,385,042 GENERAL 1,794,65125,905,542 FIXED ASSETS (COST)50,317,66286,391,527 LESS ACCUMULATED DEPRECIATION (25,645,560)(40,072,643) TOTAL FIXED ASSETS, NET 24,672,10146,318,884 INTANGIBLE ASSETS POWER AGENCY MEMBERSHIP BUY-IN 021,546,212 LOSS OF REVENUE INTANGIBLE 08,110,733 LESS ACCUMULATED AMORTIZATION 0(5,009,863) TOTAL INTANGIBLE ASSETS, NET 024,647,082 OTHER ASSETS AND DEFERRED OUTFLOWS 82,418396,358 TOTAL ASSETS 41,779,63392,773,330 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES ACCOUNTS PAYABLE 326,7474,160,049 SALARIES AND BENEFITS PAYABLE 205,2621,277,999 DUE TO CITY 6,810894,954 DUE TO OTHER FUNDS 00 NOTES PAYABLE-CURRENT PORTION 00 BONDS PAYABLE-CURRENT PORTION 70,000510,000 UNEARNED REVENUE 230,27515,052 TOTAL CURRENT LIABILITIES 839,0946,858,054 LONG TERM LIABILITIES OPEB LIABILITY 00 LFG PROJECT 00 DUE TO COUNTY 00 DUE TO CITY 00 BONDS PAYABLE, LESS CURRENT PORTION 1,411,98126,100,572 PENSION LIABILITIES 323,1431,541,981 TOTAL LONG TERM LIABILITIES 1,735,12427,642,553 TOTAL LIABILITIES 2,574,21834,500,607 DEFERRED INFLOWS OF RESOURCES 5,488,4821,034,353 FUND EQUITY CAPITAL ACCOUNT CONST COST 01,779,016 CONTRIBUTED CAPITAL 00 RETAINED EARNINGS 34,167,14153,934,486 NET INCOME (LOSS) (THROUGH PREVIOUS MONTH)(450,208)1,524,869 TOTAL FUND EQUITY 33,716,93357,238,371 TOTAL LIABILITIES & FUND EQUITY 41,779,63392,773,330 60 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA ELECTRIC BALANCE SHEET Current Month Change from Prior MonthMarch 31, 2026 February 28, 2026 ASSETS CURRENT ASSETS CASH 3,622,386 3,183,780 438,606 ACCOUNTS RECEIVABLE 2,622,803 2,934,569 (311,766) INVENTORIES 2,643,554 2,532,281 111,272 PREPAID ITEMS 274,226 269,215 5,011 CONSTRUCTION IN PROGRESS 2,645,109 2,421,528 223,581 TOTAL CURRENT ASSETS 11,808,076 11,341,373 466,704 RESTRICTED ASSETS BOND RESERVE FUND 1,779,016 1,779,016 0 EMERGENCY RESERVE FUND 7,823,914 7,800,932 22,982 TOTAL RESTRICTED ASSETS 9,602,930 9,579,948 22,982 FIXED ASSETS PRODUCTION 795,920 795,920 0 TRANSMISSION 2,305,024 2,305,024 0 DISTRIBUTION 57,385,042 57,385,042 0 GENERAL 25,905,542 25,905,542 0 FIXED ASSETS (COST)86,391,527 86,391,527 0 LESS ACCUMULATED DEPRECIATION (40,072,643)(39,835,238)(237,405) TOTAL FIXED ASSETS, NET 46,318,884 46,556,289 (237,405) INTANGIBLE ASSETS POWER AGENCY MEMBERSHIP BUY-IN 21,546,212 21,546,212 0 LOSS OF REVENUE INTANGIBLE 8,110,733 8,110,733 0 LESS ACCUMULATED AMORTIZATION (5,009,863)(4,954,185)(55,678) TOTAL INTANGIBLE ASSETS, NET 24,647,082 24,702,760 (55,678) OTHER ASSETS AND DEFERRED OUTFLOWS 396,358 396,358 0 TOTAL ASSETS 92,773,330 92,576,727 196,603 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES ACCOUNTS PAYABLE 4,160,049 4,009,425 150,624 SALARIES AND BENEFITS PAYABLE 1,277,999 1,219,202 58,796 DUE TO CITY 894,954 926,091 (31,137) BONDS PAYABLE-CURRENT PORTION 510,000 510,000 0 UNEARNED REVENUE 15,052 16,725 (1,672) TOTAL CURRENT LIABILITIES 6,858,054 6,681,443 176,611 LONG TERM LIABILITIES BONDS PAYABLE, LESS CURRENT PORTION 26,100,572 26,105,560 (4,989) PENSION LIABILITIES 1,541,981 1,541,981 0 TOTAL LONG TERM LIABILITIES 27,642,553 27,647,541 (4,989) TOTAL LIABILITIES 34,500,607 34,328,984 171,623 DEFERRED INFLOWS OF RESOURCES 1,034,353 1,034,353 0 FUND EQUITY CAPITAL ACCOUNT CONST COST 1,779,016 1,779,016 0 RETAINED EARNINGS 53,934,486 53,934,486 0 NET INCOME (LOSS) (THROUGH PREVIOUS MONTH)1,524,869 1,499,889 24,981 TOTAL FUND EQUITY 57,238,371 57,213,390 24,981 TOTAL LIABILITIES & FUND EQUITY 92,773,330 92,576,727 196,603 61 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA WATER BALANCE SHEET Current Month Change from Prior MonthMarch 31, 2026 February 28, 2026 ASSETS CURRENT ASSETS CASH 6,449,172 6,557,972 (108,800) ACCOUNTS RECEIVABLE 5,985,257 5,988,510 (3,253) INVENTORIES 76,010 76,339 (329) PREPAID ITEMS 77,561 81,340 (3,779) CONSTRUCTION IN PROGRESS 102,694 102,694 0 TOTAL CURRENT ASSETS 12,690,695 12,806,856 (116,161) RESTRICTED ASSETS EMERGENCY RESERVE FUND 4,334,419 4,328,674 5,746 TOTAL RESTRICTED ASSETS 4,334,419 4,328,674 5,746 FIXED ASSETS PRODUCTION 17,316,297 17,316,297 0 DISTRIBUTION 31,206,714 31,206,714 0 GENERAL 1,794,651 1,794,651 0 FIXED ASSETS (COST)50,317,662 50,317,662 0 LESS ACCUMULATED DEPRECIATION (25,645,560)(25,529,034)(116,527) TOTAL FIXED ASSETS, NET 24,672,101 24,788,628 (116,527) INTANGIBLE ASSETS OTHER ASSETS AND DEFERRED OUTFLOWS 82,418 82,418 0 TOTAL ASSETS 41,779,633 42,006,575 (226,942) LIABILITIES AND FUND EQUITY CURRENT LIABILITIES ACCOUNTS PAYABLE 326,747 366,711 (39,964) SALARIES AND BENEFITS PAYABLE 205,262 193,296 11,966 DUE TO CITY 6,810 31,399 (24,588) BONDS PAYABLE-CURRENT PORTION 70,000 70,000 0 UNEARNED REVENUE 230,275 230,275 0 TOTAL CURRENT LIABILITIES 839,094 891,681 (52,587) LONG TERM LIABILITIES BONDS PAYABLE, LESS CURRENT PORTION 1,411,981 1,412,535 (554) PENSION LIABILITIES 323,143 323,143 0 TOTAL LONG TERM LIABILITIES 1,735,124 1,735,678 (554) TOTAL LIABILITIES 2,574,218 2,627,359 (53,141) DEFERRED INFLOWS OF RESOURCES 5,488,482 5,488,482 0 FUND EQUITY RETAINED EARNINGS 34,167,141 34,167,141 0 NET INCOME (LOSS) (THROUGH PREVIOUS MONTH)(450,208)(276,407)(173,801) TOTAL FUND EQUITY 33,716,933 33,890,734 (173,801) TOTAL LIABILITIES & FUND EQUITY 41,779,633 42,006,575 (226,942) 62 2026 2026 2026 YTD 2026 2025 2025 YTD Variance YTD Budget ANNUAL VARIANCE Item Electric BUDGET Variance BUDGET 2,679,341 9,125,017 9,729,004 (603,986)(6)43,306,594 2,932,844 9,129,629 (4,612)(0) 279,972 975,076 1,017,089 (42,013)(4)4,454,313 314,315 969,707 5,369 1 15,369 57,050 59,768 (2,718)(5)241,665 17,884 57,087 (37)(0) 19,278 69,951 72,852 (2,901)(4)294,054 23,526 71,642 (1,691)(2) 23,817 71,517 69,999 1,518 2 280,000 23,885 69,651 1,866 3 400 1,200 1,200 0 0 4,800 400 1,200 0 0 3,018,177 10,299,811 10,949,911 (650,101)(6)48,581,426 3,312,855 10,298,916 895 0 (110,647)(35,351)87,501 (122,852)(140)350,000 38,776 117,652 (153,002)(130)(1) 23,406 65,180 76,251 (11,071)(15)305,000 19,053 64,043 1,138 2 130,723 242,203 63,750 178,453 280 255,000 13,429 30,738 211,465 688 (2) 87,828 689,915 315,753 374,162 118 1,193,000 96,361 370,959 318,956 86 (3) 131,310 961,948 543,255 418,693 77 2,103,000 167,618 583,391 378,557 65 3,149,487 11,261,759 11,493,166 (231,408)(2)50,684,426 3,480,473 10,882,307 379,451 3 2,004,647 6,003,353 6,984,830 (981,477)(14)31,659,362 2,060,791 6,230,105 (226,752)(4) 363 538 80,499 (79,961)(99)321,993 28,379 85,476 (84,938)(99)(4) 2,963 8,784 17,499 (8,715)(50)70,000 2,412 8,377 406 5 81,367 234,015 136,251 97,764 72 545,000 49,861 136,806 97,208 71 (5) 98,309 400,170 537,738 (137,568)(26)1,990,000 196,290 561,323 (161,153)(29)(6) 293,083 889,652 883,284 6,368 1 3,533,136 287,409 861,635 28,017 3 59,108 178,198 178,198 0 0 699,543 61,983 187,224 (9,025)(5) 3,893 30,138 27,315 2,823 10 414,250 22,549 31,364 (1,226)(4) 31,483 110,669 108,750 1,919 2 435,000 34,859 101,804 8,864 9 357,901 1,287,306 1,302,490 (15,184)(1)4,617,413 329,236 1,221,714 65,592 5 56,491 135,016 164,322 (29,306)(18)657,300 37,849 111,312 23,704 21 (7) 2,989,606 9,277,839 10,421,176 (1,143,337)(11)44,942,997 3,111,618 9,537,140 (259,302)(3) 134,900 459,051 486,450 (27,400)(6)2,165,330 118,062 367,386 91,665 25 (8) 0 0 0 0 0 0 19,786 58,829 (58,829)(100)(9) 134,900 459,051 486,450 (27,400)(6)2,165,330 137,848 426,215 32,836 8 24,981 1,524,869 585,540 939,329 160 3,576,100 231,006 918,952 605,917 66 Item Variance of +/- $25,000 and +/- 15% (1)Budget and PYTD variance is due to the change in Fair Market Value. (2)Budget and PYTD variance is due to large a large connection agreement in January 2026. (3)Budget and PYTD variance is mainly due to Contributions from Customers having a large SOW for a dedicated feeder in January 2026. (4)Budget and PYTD variance is due to not using majority of generating g/l accounts in 2026 due to retirement of power plant engines and reclassing to distribution expense. (5)Budget and PYTD variance is due to reclassing generating g/l accounts in 2026 to distribution expense. (6) (7)Budget variance is mainly due to timing of commercial rebates. (8)PYTD variance is due to PILOT being changed from 4% to 5%, increased usage and rates in 2026. (9)PYTD variance is due to the change to PILOT that was made in 2026. Budget variance is mainly due to an even budget spread throughout year and PYTD variance is mainly due to tree trimming (contracted in 2025), Mtce URD Primary and Transportation Exp labor in 2025. Utilities & Labor Donated Total Operating Transfer Net Income Profit(Loss) Interest Expense Operating Transfer/Other Funds Other Operating Expense Customer Accounts Expense Administrative Expense General Expense Total Expenses(before Operating Transfers) Operating Transfer Operating & Mtce Expense Transmission Expense Distribution Expense Maintenance Expense Depreciation & Amortization Purchased Power Customer Penalties Connection Fees Misc Revenue Total Other Revenue Total Revenue Expenses Revenue Operating Revenue Elk River Otsego Interest/Dividend Income Rural Big Lake Dayton Public St & Hwy Lighting Other Electric Sales Total Operating Revenue Other Operating Revenue ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING MARCH 2026 2026 YTD Bud Var% 2025 v. 2026 Actual Var% MARCH YTD MARCH YTD 63 2026 2026 2026 YTD 2026 2025 2025 YTD Variance YTD Budget ANNUAL VARIANCE Item Water BUDGET Variance BUDGET 154,794 477,228 490,172 (12,944)(3)3,226,078 149,654 463,911 13,317 3 154,794 477,228 490,172 (12,944)(3)3,226,078 149,654 463,911 13,317 3 (26,546)(4,145)31,500 (35,645)(113)126,000 10,589 32,546 (36,691)(113)(1) 1,424 4,241 8,751 (4,510)(52)35,000 1,069 6,855 (2,615)(38) 8,044 78,084 111,501 (33,417)(30)446,000 51,394 99,835 (21,751)(22)(2) 2,745 4,725 7,024 (2,299)(33)477,350 975 4,327 398 9 (14,333)82,904 158,776 (75,872)(48)1,084,350 64,026 143,564 (60,660)(42) 140,461 560,132 648,948 (88,816)(14)4,310,428 213,680 607,475 (47,343)(8) 22,729 51,512 31,251 20,261 65 125,000 9,466 30,436 21,076 69 (3) 55,075 165,506 167,004 (1,498)(1)668,000 40,936 146,446 19,060 13 16,106 64,129 132,123 (67,994)(51)447,500 66,223 138,761 (74,632)(54)(4) 116,527 349,513 353,751 (4,238)(1)1,415,000 115,387 346,387 3,126 1 2,496 7,487 7,487 0 0 28,782 2,712 8,137 (650)(8) 178 567 156 411 263 50,625 52 187 380 203 8,113 25,005 26,064 (1,059)(4)104,250 8,138 24,546 459 2 90,079 336,838 345,166 (8,328)(2)1,251,950 83,643 301,294 35,544 12 89 238 1,815 (1,577)(87)7,250 471 615 (377)(61) 311,166 1,000,795 1,064,817 (64,022)(6)4,098,357 327,028 996,810 3,985 0 3,096 9,545 9,804 (259)(3)64,522 0 0 9,545 0 0 0 501 (501)(100)2,000 0 0 0 0 3,096 9,545 10,305 (760)(7)66,522 0 0 9,545 0 (173,801)(450,208)(426,174)(24,034)(6)145,550 (113,349)(389,335)(60,873)(16) Item Variance of +/- $15,000 and +/- 15% (1)Budget and PYTD variance is due to the change in Fair Market Value. (2)Budget variance is due to timing (even spread) and PYTD variance due to a large connection agreements in March of 2025. (3)Budget and PYTD variance is mainly due to labor, and misc mtce expenses in 2026. (4)Budget variance is mainly due to an even budget spread throughout year. PYTD variance is due to mtce of water mains (Polk & Business Center Dr), water mapping labor and water meter service repairs. Net Income Profit(Loss) Total Expenses(before Operating Transfers) Operating Transfer Utilities & Labor Donated Total Operating Transfer Operating Transfer/Other Funds Customer Accounts Expense Administrative Expense General Expense Depreciation & Amortization Interest Expense Other Operating Expense Expenses Production Expense Pumping Expense Distribution Expense Misc Revenue Total Other Revenue Total Revenue Other Operating Revenue Interest/Dividend Income Customer Penalties Connection Fees Revenue Operating Revenue Water Sales Total Operating Revenue ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING MARCH 2026 2026 YTD Bud Var% 2025 v. 2026 Actual Var% MARCH YTD MARCH YTD 64 35.0 40.0 45.0 50.0 55.0 60.0 65.0 70.0 75.0 80.0 Demand in MWMonth Elk River Municipal Utilities Monthly Electrical Demand 2025 2026 15,000 20,000 25,000 30,000 35,000 40,000 Energy Purchases in MWHMonth Elk River Municipal Utilities Monthly Energy Purchases 2025 2026 65 15,000 20,000 25,000 30,000 35,000 40,000 Electric Load in MWHMonth Elk River Municipal Utilities Monthly Total Electric Load 2025 2026 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 Sales in DollarsMonth Elk River Municipal Utilities Monthly Electric Sales 2025 2026 66 - 5,000 10,000 15,000 20,000 25,000 Loads in MWHMonth Elk River Municipal Utilities Monthly Residential, Commercial & Industrial Loads 2025 Residential 2026 Residential 2025 Commercial 2026 Commercial 2025 Industrial 2026 Industrial $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Sales in DollarsMonth Elk River Municipal Utilities Monthly Residential, Commercial & Industrial Sales 2025 Residential 2026 Residential 2025 Commercial 2026 Commercial 2025 Industrial 2026 Industrial 67 0.0 20.0 40.0 60.0 80.0 100.0 120.0 Pumpage in Million Gal.Month Elk River Municipal Utilities Monthly Water Pumpage 2025 2026 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Peak Day in Million Gal.Month Elk River Municipal Utilities Peak Day Pumpage 2025 2026 68 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 0 20 40 60 80 100 120 140 160 180 Sales In DollarsSales in Million Gal.Month Elk River Municipal Utilities Monthly Water Sales 2025 MG 2026 MG 2025 $2026 $ 69 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING MARCH 2026 2026 MARCH 2025 MARCH 2026 YTD 2025 YTD 2026 YTD BUDGET 2026 YTD Bud Var% 2025 v. 2026 Actual Var% YTD VARIANCE 2026 ANNUAL BUDGETElectric Revenue Operating Revenue Elk River ELECT SALES - ELK RIVER RESID 1,016,551 3,455,3701,025,876 3,700,3613,540,585 (4)214,974,097 85,215 ELECT SALES - ELK RIVER NON-D 274,616 880,663275,514 934,505894,352 (4)23,713,891 13,689 ELECT SALES - ELK RIVER DEMA 1,282,795 3,962,7771,377,949 3,985,3294,242,918 6 719,613,600 280,140 PCA SALES REVENUE - ELK RIVE 116,363 287,7050397,109159,013 (60)(45)1,606,959 (128,691) PCA SALES REVENUE - ELK RIVE 34,804 79,3240110,36240,853 (63)(48)438,600 (38,471) PCA SALES REVENUE - ELK RIVE 207,711 463,7880601,336247,293 (59)(47)2,959,444 (216,494) 2,679,341 9,125,017 9,729,003 2,932,843 9,129,629(6)0Total For Elk River:43,306,593 (4,612) Otsego ELECT SALES - OTSEGO RESIDEN 118,895 385,302119,163 420,943404,789 (4)51,703,415 19,486 ELECT SALES - OTSEGO NON-DEM 38,229 119,62036,742 138,923121,194 (13)1552,104 1,574 ELECT SALES - OTSEGO DEMAND 119,592 376,622124,065 348,766399,523 15 61,716,440 22,900 PCA SALES REVENUE - OTSEGO R 13,444 32,046045,17418,170 (60)(43)182,803 (13,876) PCA SALES REVENUE - OTSEGO N 4,984 11,257012,5546,030 (52)(46)49,894 (5,227) PCA SALES REVENUE - OTSEGO D 19,168 44,855050,72725,367 (50)(43)249,653 (19,488) 279,971 975,076 1,017,088 314,315 969,706(4)1Total For Otsego:4,454,313 5,369 Rural Big Lake ELECT SALES - BIG LAKE RESIDE 15,857 52,10415,194 51,52553,948 5 4208,506 1,844 ELECT SALES - BIG LAKE NON-DE 164 5081741,175533 (55)54,674 24 PCA SALES REVENUE - BIG LAKE 1,852 4,45005,5292,554 (54)(43)22,376 (1,896) PCA SALES REVENUE - BIG LAKE 10 2301,53713 (99)(46)6,107 (10) 15,368 57,049 59,767 17,884 57,087(5)0Total For Rural Big Lake:241,664 (37) Dayton ELECT SALES - DAYTON RESIDEN 17,904 56,13916,222 54,93656,942 4 1222,309 803 ELECT SALES - DAYTON NON-DE 3,203 9,9693,055 10,41110,023 (4)141,376 53 PCA SALES REVENUE - DAYTON R 2,045 4,67605,8952,535 (57)(46)23,857 (2,141) PCA SALES REVENUE - DAYTON 372 85501,610449 (72)(47)6,511 (406) 19,277 69,951 72,852 23,526 71,641(4)(2)Total For Dayton:294,054 (1,690) Public St & Hwy Lighting ELECT SALES - SEC LTS 23,885 69,65023,817 69,99971,516 2 3280,000 1,865 23,817 71,516 69,999 23,885 69,6502 3Total For Public St & Hwy Lighting:280,000 1,865 Other Electric Sales SUB-STATION CREDIT 400 1,2004001,2001,200 0 04,800 0 70 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING MARCH 2026 2026 MARCH 2025 MARCH 2026 YTD 2025 YTD 2026 YTD BUDGET 2026 YTD Bud Var% 2025 v. 2026 Actual Var% YTD VARIANCE 2026 ANNUAL BUDGETElectric 400 1,200 1,200 400 1,2000 0Total For Other Electric Sales:4,800 0 Total Operating Revenue 3,312,854 10,298,9163,018,176 10,949,91110,299,810 (6)048,581,426 894 Other Operating Revenue Interest/Dividend Income INTEREST & DIVIDEND INCOME 38,776 117,651(110,647)87,501(35,350)(140)(130)350,000 (153,002) (110,647)(35,350)87,501 38,776 117,651(140)(130)Total For Interest/Dividend Income:350,000 (153,002) Customer Penalties CUSTOMER DELINQUENT PENALT 19,052 64,04223,405 76,25165,180 (15)2305,000 1,137 23,405 65,180 76,251 19,052 64,042(15)2Total For Customer Penalties:305,000 1,137 Connection Fees DISCONNECT & RECONNECT CHA 13,429 30,738130,723 63,750242,203 280 688255,000 211,465 130,723 242,203 63,750 13,429 30,738280 688Total For Connection Fees:255,000 211,465 Misc Revenue MISC ELEC REVENUE - TEMP CHG 880 2,4202,450 7503,110 315 293,000 690 STREET LIGHT 0 005,00029,800 496 025,000 29,800 TRANSMISSION INVESTMENTS 46,471 157,46051,065 170,001159,504 (6)1680,000 2,043 MISC NON-UTILITY 7,420 19,39434,313 27,50162,767 128 224110,000 43,373 GAIN ON DISPOSITION OF PROPER 6,255 22,755025,0000 (100)(100)25,000 (22,755) CONTRIBUTIONS FROM CUSTOME 35,332 168,929087,501434,733 397 157350,000 265,804 87,828 689,915 315,753 96,360 370,958118 86Total For Misc Revenue:1,193,000 318,956 Total Other Revenue 167,618 583,391131,310 543,255961,947 77 652,103,000 378,556 131,310 961,947 543,255 167,618 583,39177 65Total For Total Other Revenue:2,103,000 378,556 3,480,473 10,882,3073,149,486 11,493,166 Total Revenue 11,261,758 (2)350,684,426 379,451 Expenses Purchased Power PURCHASED POWER 1,528,869 4,884,5521,673,548 5,131,6295,097,231 (1)424,051,075 212,678 ENERGY ADJUSTMENT CLAUSE 531,921 1,345,552331,098 1,853,200906,121 (51)(33)7,608,286 (439,430) 2,004,646 6,003,352 6,984,829 2,060,791 6,230,104(14)(4)Total For Purchased Power:31,659,361 (226,752) Operating & Mtce Expense OPERATING SUPERVISION - DNU 11,733 39,150040,1970 (100)(100)160,783 (39,150) NATURAL GAS 6,608 13,63406,8760 (100)(100)27,501 (13,634) ELECTRIC & WATER CONSUMPTI 5,434 17,355016,3020 (100)(100)65,208 (17,355) 71 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING MARCH 2026 2026 MARCH 2025 MARCH 2026 YTD 2025 YTD 2026 YTD BUDGET 2026 YTD Bud Var% 2025 v. 2026 Actual Var% YTD VARIANCE 2026 ANNUAL BUDGETElectric PLANT SUPPLIES & OTHER EXPEN 538 1,03603,0000 (100)(100)12,000 (1,036) MISC POWER GENERATION EXPE 211 351362249537116 531,000 186 MAINTENANCE OF STRUCTURE -839 5,20803,7500 (100)(100)15,000 (5,208) MTCE OF PLANT ENGINES/GENER 97 29801260(100)(100)500 (298) MTCE OF PLANT/LAND IMPROVE 2,916 8,44209,9990 (100)(100)40,000 (8,442) 362 537 80,499 28,379 85,475(99)(99)Total For Operating & Mtce Expense:321,992 (84,937) Transmission Expense TRANSMISSION MTCE AND EXPE 2,411 8,3772,963 17,4998,783 (50)570,000 406 2,963 8,783 17,499 2,411 8,377(50)5Total For Transmission Expense:70,000 406 Distribution Expense SUPERVISION & ENGINEERING - D 0 015,467 042,347 0 0042,347 REMOVE EXISTING SERVICE & M 0 166050174(85)(56)2,000 (92) SCADA EXPENSE 3,713 13,7565,440 16,25117,676 9 2865,000 3,920 TRANSFORMER EXPENSE OH & U 971 3,3911,912 6,2494,280 (31)2625,000 889 MTCE OF SIGNAL SYSTEMS 221 221075092123 3153,000 699 METER EXPENSE - REMOVE & RE 242 72603750(100)(100)1,500 (726) TEMP SERVICE - INSTALL & REM 274 1,6956882,1247,377 247 3358,500 5,681 MISC DISTRIBUTION EXPENSE 44,437 116,84857,857 110,001161,336 47 38440,000 44,488 81,366 234,014 136,251 49,860 136,80672 71Total For Distribution Expense:545,000 97,208 Maintenance Expense MTCE OF STRUCTURES 9,945 29,49913,470 22,50027,696 23 (6)90,000 (1,802) MTCE OF SUBSTATIONS 482 1,0753,886 9,9999,675 (3)80040,000 8,600 MTCE OF SUBSTATION EQUIPME 6,096 12,8761327,9991,571 (94)(88)112,000 (11,305) MTCE OF OH LINES/TREE TRIM 34,728 136,68819,199 84,00071,029 (15)(48)175,000 (65,658) MTCE OF OH LINES/STANDBY 4,357 11,1544,519 12,49810,796 (14)(3)50,000 (357) MTCE OF OH PRIMARY 20,245 57,45313,706 48,75032,279 (34)(44)195,000 (25,173) MTCE OF URD PRIMARY 43,185 86,1894,290 75,00031,128 (58)(64)300,000 (55,061) LOCATE ELECTRIC LINES 4,941 14,0662,842 31,24811,185 (64)(20)125,000 (2,880) LOCATE FIBER LINES 152 2660999187(81)(30)4,000 (79) MTCE OF LINE TRANSFORMERS 8,370 16,199(28,098)23,7487,652 (68)(53)95,000 (8,546) MTCE OF STREET LIGHTING 1,201 11,6934,196 17,49920,583 18 7670,000 8,889 MTCE OF SECURITY LIGHTING 1,209 6,5793,544 6,2497,260 16 1025,000 680 MTCE OF METERS 508 2,9968,507 15,00018,797 25 52760,000 15,801 VOLTAGE COMPLAINTS 1,045 2,1838712,4992,778 11 2710,000 595 SALARIES TRANSMISSION & DIST 2,360 8,5053,378 9,2499,364 1 1037,000 85972 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING MARCH 2026 2026 MARCH 2025 MARCH 2026 YTD 2025 YTD 2026 YTD BUDGET 2026 YTD Bud Var% 2025 v. 2026 Actual Var% YTD VARIANCE 2026 ANNUAL BUDGETElectric ELECTRIC MAPPING 18,216 43,99412,390 40,50052,412 29 19162,000 8,418 FIBER MAPPING 0 002,4990 (100)010,000 0 MTCE OF OH SECONDARY 2,196 7,3314,014 7,5006,457 (14)(12)30,000 (873) MTCE OF URD SECONDARY 2,962 13,1666,243 20,00113,076 (35)(1)80,000 (89) TRANSPORTATION EXPENSE 34,085 99,40421,331 80,00166,236 (17)(33)320,000 (33,168) 98,309 400,170 537,738 196,290 561,322(26)(29)Total For Maintenance Expense:1,990,000 (161,152) Depreciation & Amortization DEPRECIATION 231,730 694,601237,404 716,250722,618 1 42,865,000 28,017 AMORTIZATION 55,677 167,03355,677 167,034167,033 0 0668,136 0 293,082 889,652 883,284 287,408 861,6351 3Total For Depreciation & Amortization:3,533,136 28,017 Interest Expense INTEREST EXPENSE - BONDS 66,971 202,18964,096 193,164193,164 0 (4)759,406 (9,025) AMORTIZATION OF DEBT DISCOU (4,988)(14,965)(4,988)(14,965)(14,965)0 0(59,863)0 59,107 178,198 178,198 61,982 187,2230 (5)Total For Interest Expense:699,543 (9,025) Other Operating Expense EV CHARGING EXPENSE 171 57382312247(21)(57)1,250 (325) LOSS ON DISPOSITION OF PROP (C 18,258 18,2580000 (100)25,000 (18,258) OTHER DONATIONS 0 2176550187074 3012,000 653 MUTUAL AID 0 0122018,164 0 0018,164 PENSION EXPENSE 0 00000 0280,000 0 OTHER INTEREST EXPENSE 0 0014,0010 (100)056,000 0 INTEREST EXPENSE - METER DEP 4,118 12,3143,622 12,50110,854 (13)(12)50,000 (1,460) 3,892 30,137 27,315 22,548 31,36310 (4)Total For Other Operating Expense:414,250 (1,226) Customer Accounts Expense METER READING EXPENSE 2,847 8,9471,999 6,2496,455 3 (28)25,000 (2,491) DISCONNECT/RECONNECT EXPEN 66 6601,2510 (100)(100)5,000 (66) MISC CUSTOMER ACCOUNTS EXP 29,696 89,89229,075 95,00189,993 (5)0380,000 100 BAD DEBT EXPENSE & RECOVER 2,248 2,8984076,24914,219 128 39125,000 11,321 31,482 110,668 108,750 34,859 101,8042 9Total For Customer Accounts Expense:435,000 8,864 Administrative Expense SALARIES OFFICE & COMMISSION 78,894 238,01191,830 271,251247,917 (9)41,085,000 9,906 TEMPORARY STAFFING 0 009990(100)04,000 0 OFFICE SUPPLIES 5,210 19,5836,333 31,25127,211 (13)39125,000 7,628 ELECTRIC & WATER CONSUMPTI 1,796 5,5151,707 7,1375,001 (30)(9)28,552 (514) BANK FEES 201 698200750657(12)(6)3,000 (41) 73 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING MARCH 2026 2026 MARCH 2025 MARCH 2026 YTD 2025 YTD 2026 YTD BUDGET 2026 YTD Bud Var% 2025 v. 2026 Actual Var% YTD VARIANCE 2026 ANNUAL BUDGETElectric LEGAL FEES 1,407 3,3063406,2492,481 (60)(25)25,000 (824) AUDITING FEES 1,720 5,1601,800 5,6255,400 (4)522,500 240 INSURANCE 14,866 44,60015,516 35,75135,691 0 (20)143,000 (8,908) UTILITY SHARE - DEFERRED COM 12,751 50,06011,468 53,00054,906 4 10125,000 4,845 UTILITY SHARE - MEDICAL/DENT 66,678 314,39763,313 327,600332,156 1 6945,000 17,759 UTILITY SHARE - PERA 25,775 78,59627,769 87,12681,659 (6)4348,500 3,062 UTILITY SHARE - FICA 24,942 75,19826,715 85,62677,888 (9)4342,500 2,690 EMPLOYEE SICK PAY 14,661 78,46115,670 58,36279,492 36 1233,450 1,030 EMPLOYEE HOLIDAY PAY 0 47,430050,00049,653 (1)5197,401 2,223 EMPLOYEE VACATION & PTO PA 20,892 113,15922,863 121,000119,912 (1)6344,307 6,753 UPMIC DISTRIBUTION 18,105 18,10516,510 21,50016,510 (23)(9)86,000 (1,595) LONGEVITY PAY 1,472 1,47201,4731,550 5 58,040 77 CONSULTING FEES 0 21,2207,444 13,95032,902 136 5555,800 11,682 TELEPHONE 2,833 8,5503,508 7,7499,248 19 831,000 698 ADVERTISING 970 3,4051,008 5,0013,528 (29)420,000 123 DUES & SUBSCRIPTIONS - FEES 15,022 39,55314,351 35,46944,513 26 13141,878 4,960 SCHOOLS & MEETINGS 20,168 52,63129,006 72,87057,400 (21)9291,482 4,769 MTCE OF GENERAL PLANT & OFFI 865 2,5955402,7511,620 (41)(38)11,000 (975) 357,900 1,287,306 1,302,490 329,236 1,221,714(1)5Total For Administrative Expense:4,617,413 65,592 General Expense CIP REBATES - RESIDENTIAL 6,400 22,0537,471 22,68923,079 2 590,758 1,025 CIP REBATES - COMMERCIAL 2,364 4,32918,421 27,99918,421 (34)326112,000 14,092 CIP - ADMINISTRATION 13,284 34,62414,112 45,45940,336 (11)17181,840 5,712 CIP - MARKETING 3,568 14,2632,569 13,71614,635 7 354,864 372 CIP - LABOR 8,898 26,44510,224 34,02027,888 (18)5136,078 1,443 CIP REBATES - LOW INCOME 0 007,4400 (100)029,760 0 CIP - LOW INCOME LABOR 872 2,5801,013 2,4992,644 6 310,000 64 ENVIRONMENTAL COMPLIANCE 2,384 7,1422,675 9,2498,025 (13)1237,000 883 MISC GENERAL EXPENSE 76 (126)2 1,251(15)(101) 885,000 110 56,491 135,016 164,322 37,849 111,311(18) 21Total For General Expense:657,300 23,704 Total Expenses(before Operating Transfers) 3,111,618 9,537,1402,989,606 10,421,1769,277,838 (11)(3)44,942,996 (259,301) Operating Transfer Operating Transfer/Other Funds TRANSFER TO CITY ELK RIVER R 118,061 367,385134,899 486,450459,050 (6)252,165,329 91,66474 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING MARCH 2026 2026 MARCH 2025 MARCH 2026 YTD 2025 YTD 2026 YTD BUDGET 2026 YTD Bud Var% 2025 v. 2026 Actual Var% YTD VARIANCE 2026 ANNUAL BUDGETElectric 134,899 459,050 486,450 118,061 367,385(6)25Total For Operating Transfer/Other Funds:2,165,329 91,664 Utilities & Labor Donated UTILITIES & LABOR DONATED TO 19,786 58,8280000 (100)0 (58,828) 0 0 0 19,786 58,8280 (100)Total For Utilities & Labor Donated:0 (58,828) Total Operating Transfer 134,899 459,050 486,450 137,848 426,214(6)8Total For Total Operating Transfer:2,165,329 32,836 231,006 918,95224,980 585,540 Net Income Profit(Loss)1,524,869 160 663,576,099 605,916 75 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING MARCH 2026 2026 MARCH 2025 MARCH 2026 YTD 2025 YTD 2026 YTD BUDGET 2026 YTD Bud Var% 2025 v. 2026 Actual Var% YTD VARIANCE 2026 ANNUAL BUDGETWater Revenue Operating Revenue Water Sales WATER SALES RESIDENTIAL 90,133 282,61195,370 308,919294,338 (5)41,821,515 11,726 WATER SALES COMMERCIAL 57,804 176,18057,630 175,272177,574 1 11,039,959 1,394 WATER SALES IRRIGATION 1,716 5,1181,793 5,9795,314 (11)4364,602 195 154,794 477,228 490,172 149,653 463,911(3)3Total For Water Sales:3,226,078 13,316 Total Operating Revenue 149,653 463,911154,794 490,172477,228 (3)33,226,078 13,316 154,794 477,228 490,172 149,653 463,911(3)3Total For Total Operating Revenue:3,226,078 13,316 Other Operating Revenue Interest/Dividend Income INTEREST & DIVIDEND INCOME 10,588 32,546(26,545)31,251(4,712)(115)(114)125,000 (37,258) OTHER INTEREST/MISC REVENUE 0 00249566128 01,000 566 (26,545)(4,145)31,500 10,588 32,546(113)(113)Total For Interest/Dividend Income:126,000 (36,691) Customer Penalties CUSTOMER PENALTIES 1,068 6,8551,423 8,7514,240 (52)(38)35,000 (2,614) 1,423 4,240 8,751 1,068 6,855(52)(38)Total For Customer Penalties:35,000 (2,614) Connection Fees WATER/ACCESS/CONNECTION FE 39,600 79,2003,600 91,50067,110 (27)(15)366,000 (12,090) CUSTOMER CONNECTION FEES 7,293 12,6931,021 12,5015,252 (58)(59)50,000 (7,441) BULK WATER SALES/HYDRANT R 4,499 7,9413,422 7,5005,721 (24)(28)30,000 (2,220) 8,043 78,083 111,501 51,393 99,835(30)(22)Total For Connection Fees:446,000 (21,751) Misc Revenue MISC NON-UTILITY 0 3100243025 (90)100 (280) GAIN ON DISPOSITION OF PROPER 0 004,0000 (100)04,000 0 MISCELLANEOUS REVENUE 0 1,09102490(100)(100)1,000 (1,091) HYDRANT MAINTENANCE PROGR 975 2,9252,744 2,7514,694 71 6111,000 1,769 WATER TOWER LEASE 0 00000 0386,250 0 LEASE INTEREST REVENUE 0 00000 075,000 0 2,744 4,724 7,024 975 4,327(33)9Total For Misc Revenue:477,350 397 Total Other Revenue 64,025 143,563(14,333)158,77682,903 (48)(42)1,084,350 (60,659) (14,333)82,903 158,776 64,025 143,563(48)(42)Total For Total Other Revenue:1,084,350 (60,659) 76 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING MARCH 2026 2026 MARCH 2025 MARCH 2026 YTD 2025 YTD 2026 YTD BUDGET 2026 YTD Bud Var% 2025 v. 2026 Actual Var% YTD VARIANCE 2026 ANNUAL BUDGETWater 213,679 607,474140,460 648,948 Total Revenue 560,131 (14)(8)4,310,428 (47,342) Expenses Production Expense MTCE OF STRUCTURES 9,465 30,43522,729 31,25151,512 65 69125,000 21,076 22,729 51,512 31,251 9,465 30,43565 69Total For Production Expense:125,000 21,076 Pumping Expense SUPERVISION 6,965 19,4686,847 20,00119,697 (2)180,000 228 ELECTRIC & GAS UTILITIES 14,630 60,71119,419 75,00059,820 (20)(1)300,000 (891) SAMPLING 845 4,8771,324 6,0005,250 (12)824,000 373 CHEMICAL FEED 2,960 8,0403,263 12,5017,292 (42)(9)50,000 (747) MTCE OF WELLS 13,267 50,38822,916 50,00171,644 43 42200,000 21,255 SCADA - PUMPING 2,267 2,9591,304 3,5011,800 (49)(39)14,000 (1,158) 55,074 165,505 167,004 40,936 146,446(1)13Total For Pumping Expense:668,000 19,059 Distribution Expense MTCE OF WATER MAINS 48,386 54,6934,480 43,7499,969 (77)(82)175,000 (44,724) LOCATE WATER LINES 1,163 2,7761116,249792 (87)(71)25,000 (1,983) WATER METER SERVICE 6,702 21,6071,539 12,5017,841 (37)(64)50,000 (13,766) BACKFLOW DEVICE INSPECTION 1,229 3,8981,441 5,7514,107 (29)523,000 209 MTCE OF CUSTOMERS SERVICE 3,126 8,5253,039 9,0008,478 (6)(1)36,000 (46) WATER MAPPING 1,909 13,7041,006 6,2491,047 (83)(92)25,000 (12,657) FIBER MAPPING 0 002,4990 (100)010,000 0 MTCE OF WATER HYDRANTS - PU 552 7,1341,282 5,4992,075 (62)(71)22,000 (5,059) MTCE OF WATER HYDRANTS - PR 0 001,5000 (100)06,000 0 WATER CLOTHING/PPE 837 9162223,750666 (82)(27)15,000 (250) WAGES WATER 722 2,2368682,3762,325 (2)49,500 88 TRANSPORTATION EXPENSE 1,591 3,2301,768 6,0004,587 (24)4224,000 1,356 WATER PERMIT 0 20,03734527,00022,238 (18)1127,000 2,201 16,105 64,129 132,123 66,222 138,761(51)(54)Total For Distribution Expense:447,500 (74,632) Depreciation & Amortization DEPRECIATION 115,386 346,387116,526 353,751349,512 (1)11,415,000 3,125 116,526 349,512 353,751 115,386 346,387(1)1Total For Depreciation & Amortization:1,415,000 3,125 Interest Expense INTEREST EXPENSE - BONDS 3,266 9,7993,050 9,1509,150 0 (7)35,433 (649) AMORTIZATION OF DEBT DISCOU (554)(1,662)(554)(1,662)(1,662)0 0(6,650)0 2,495 7,487 7,487 2,712 8,1370 (8)Total For Interest Expense:28,782 (649) 77 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING MARCH 2026 2026 MARCH 2025 MARCH 2026 YTD 2025 YTD 2026 YTD BUDGET 2026 YTD Bud Var% 2025 v. 2026 Actual Var% YTD VARIANCE 2026 ANNUAL BUDGETWater Other Operating Expense DAM MAINTENANCE EXPENSE 0 3013304320 1,2970402 PENSION EXPENSE 0 00000 050,000 0 INTEREST EXPENSE - METER DEP 52 15644156133(14)(14)625 (22) 177 566 156 52 186263 203Total For Other Operating Expense:50,625 379 Customer Accounts Expense METER READING EXPENSE 556 1,6644981,2511,678 34 15,000 13 MISC CUSTOMER ACCOUNTS EXP 7,581 22,8817,615 24,75023,326 (6)299,000 445 BAD DEBT EXPENSE & RECOVER 0 00630(100)02500 8,113 25,005 26,064 8,138 24,546(4)2Total For Customer Accounts Expense:104,250 458 Administrative Expense SALARIES OFFICE & COMMISSION 23,451 70,16227,631 83,25078,745 (5)12333,000 8,583 TEMPORARY STAFFING 0 002490(100)01,000 0 OFFICE SUPPLIES 2,434 5,8532,075 7,5009,326 24 5930,000 3,472 ELECTRIC & WATER CONSUMPTI 449 1,3794261,6201,250 (23)(9)6,500 (129) BANK FEES 50 18050177170(3)(5)708 (9) LEGAL FEES 351 826851,500620 (59)(25)6,000 (206) AUDITING FEES 976 1,8364501,7491,350 (23)(26)7,000 (486) INSURANCE 3,487 10,4624,502 10,74911,571 8 1143,000 1,109 UTILITY SHARE - DEFERRED COM 2,308 7,9682,590 10,7509,559 (11)2025,000 1,591 UTILITY SHARE - MEDICAL/DENT 16,978 75,38116,489 82,50080,763 (2)7251,110 5,381 UTILITY SHARE - PERA 4,856 15,2046,239 17,87418,298 2 2071,500 3,093 UTILITY SHARE - FICA 4,681 14,6046,051 17,62517,619 0 2170,500 3,014 EMPLOYEE SICK PAY 2,814 13,6653,420 13,25115,663 18 1553,000 1,997 EMPLOYEE HOLIDAY PAY 0 9,413010,95011,081 1 1843,000 1,668 EMPLOYEE VACATION & PTO PA 4,104 22,3564,955 26,00026,164 1 1772,000 3,807 UPMIC DISTRIBUTION 3,642 3,6423,830 4,7503,830 (19)519,000 187 WELLHEAD PROTECTION 0 003750(100)01,500 0 LONGEVITY PAY 77 770780(100)(100)1,260 (77) CONSULTING FEES 6,712 16,2723,401 6,5497,403 13 (55)26,200 (8,869) TELEPHONE 638 1,9139422,1512,490 16 308,600 577 ADVERTISING 242 1,2112521,251882 (29)(27)5,000 (329) DUES & SUBSCRIPTIONS - FEES 2,060 20,6172,167 27,87030,042 8 46111,474 9,425 SCHOOLS & MEETINGS 3,107 7,6144,380 15,7239,598 (39)2662,897 1,983 MTCE OF GENERAL PLANT & OFFI 216 648135675405(40)(38)2,700 (243) 78 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR PERIOD ENDING MARCH 2026 2026 MARCH 2025 MARCH 2026 YTD 2025 YTD 2026 YTD BUDGET 2026 YTD Bud Var% 2025 v. 2026 Actual Var% YTD VARIANCE 2026 ANNUAL BUDGETWater 90,078 336,838 345,166 83,643 301,294(2)12Total For Administrative Expense:1,251,949 35,543 General Expense CIP REBATES - RESIDENTIAL 0 252550150(90)1002,000 25 CIP REBATES - COMMERCIAL 0 002490(100)01,000 0 CIP - MARKETING 0 003750(100)01,500 0 CIP - LABOR 0 001260(100)05000 ENVIRONMENTAL COMPLIANCE 471 58963501188(62)(68)2,000 (401) MISC GENERAL EXPENSE 0 00630(100)02500 88 238 1,815 471 614(87)(61)Total For General Expense:7,250 (376) Total Expenses(before Operating Transfers) 327,028 996,809311,166 1,064,8171,000,795 (6)04,098,356 3,985 Operating Transfer Operating Transfer/Other Funds TRANSFER TO CITY ELK RIVER R 0 03,095 9,8049,544 (3)064,521 9,544 Utilities & Labor Donated WATER & LABOR DONATED TO CI 0 005010(100)02,000 0 Total Operating Transfer 3,095 9,544 10,305 0 0(7)0Total For Total Operating Transfer:66,521 9,544 (113,348)(389,335)(173,801)(426,174) Net Income Profit(Loss)(450,207)(6)(16)145,549 (60,872) 79 March 2026 Financials Report Highlights 5/12/2026 PRESENTED AT MEETING - MARCH 2026 FINANCIAL PRESENTATION 2 YTD Profit & Profit Margin % Purpose: To show the overall health of the organization. •YTD ERMU’s revenue is exceeding expenses by $1.1M •Resulting in a profit margin of 9.1% Profit & Profit Margins % March 2026 $1,074,661 9.09% Revenue Expense $11,821,891 $10,747,229 PRESENTED AT MEETING - MARCH 2026 FINANCIAL PRESENTATION 3 Electric YTD Profit & Profit Margin % Profit & Profit Margins % March 2026 $1,524,869 13.54% Revenue Expense $11,261,759 $9,736,889 PRESENTED AT MEETING - MARCH 2026 FINANCIAL PRESENTATION 4 Water YTD Profit & Profit Margin % Profit (Loss) & Profit Margins % March 2026 ($450,208) (80.38%) Revenue Expense $560,132 $1,010,340 PRESENTED AT MEETING - MARCH 2026 FINANCIAL PRESENTATION 5 Revenue vs Expense (YTD) Purpose: To compare revenue vs expense by utility service. •Green illustrates electric and blue illustrates water. •Overall, revenue is greater than expense. REVENUE EXPENSE PRESENTED AT MEETING - MARCH 2026 FINANCIAL PRESENTATION 6 YTD Actuals to Budget Comparison Purpose: To illustrate the combined net position actuals versus budgeted amounts. •Overall, ERMU is favorable to budget YTD •Bars represent each month, lines represent cumulative PRESENTED AT MEETING - MARCH 2026 FINANCIAL PRESENTATION 7 Purpose: To illustrate Electric’s net position actuals versus budgeted amounts. •YTD Electric is favorable to budget Electric YTD Actuals to Budget Comparison PRESENTED AT MEETING - MARCH 2026 FINANCIAL PRESENTATION 8 Purpose: To illustrate Water’s net position actuals versus budgeted amounts. •YTD Water is unfavorable to budget Water YTD Actuals to Budget ComparisonPRESENTED AT MEETING - MARCH 2026 FINANCIAL PRESENTATION 9 Accounts Receivable-Utility Aging 3/31/2026 Purpose: an overview of outstanding payments from customers and how long they are past due. •City services make up $420k of total A/R balances of $2.275M •Over 90 days is only 3% of total A/R compared to 87% being current GREEN IS GOOD! PRESENTED AT MEETING - MARCH 2026 FINANCIAL PRESENTATION 10 Accounts Receivable-Utility Aging 3/31/2026 Note: Electric and water accounts receivable can be reviewed separately on the “Combined Balance Sheet” provided in the packet. PRESENTED AT MEETING - MARCH 2026 FINANCIAL PRESENTATION 11 Electric Department – Purchased Power Purpose: To illustrate 5-year comparison in purchased power costs. •Purchased power 2026 YTD is approximately 62% of total expenses. •2026 YTD purchased power is favorable to budget 14%. •2026 expense is 4% less than 2025. YTD 2026 is $227k less than 2025. 2% higher kWh purchased but 33% less EAC charges. PRESENTED AT MEETING - MARCH 2026 FINANCIAL PRESENTATION 12 Electric Department – Electric Usage Sales Purpose: To illustrate a 5-year comparison in electric usage sales. •Usage can vary greatly from year to year with weather being a primary factor. •Electric kWh usage is 7% higher in 2026 as compared to 2025. YTD sales revenue is 1% higher. •***Through April 2026*** PRESENTED AT MEETING - MARCH 2026 FINANCIAL PRESENTATION 13 Water Department – Water Usage Sales Purpose: To illustrate trends and view comparisons in water usage sales. •Usage can vary greatly from year to year based on a variety of factors such as weather. •The water sales graph highlights both usage and revenue dollars. •Water usage is up 7% YTD, and sales revenue is up 7% YTD over prior year. •***Through April 2026*** PRESENTED AT MEETING - MARCH 2026 FINANCIAL PRESENTATION Thank You! Melissa Karpinski, CPA - Finance Manager mkarpinski@ermumn.com PRESENTED AT MEETING - MARCH 2026 FINANCIAL PRESENTATION UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Mark Hanson – General Manager MEETING DATE: May 12, 2026 AGENDA ITEM NUMBER: 5.2 SUBJECT: Market-Based Electric Service Agreement for 19178 Industrial Boulevard NW ACTION REQUESTED: Approve the Market-Based Electric Service Agreement for 19178 Industrial Boulevard NW pending final legal review, with provision of authorization to the general manager and ERMU’s attorney to approve any subsequent changes that are not material. BACKGROUND: At the April meeting, the Commission approved a letter of intent to reserve 33 megawatts of capacity for a potential data center project located in an existing building at 19178 Industrial Boulevard NW. Since then, staff have worked with this potential customer to finalize mutually agreeable development terms. The attached Market-Based Electric Service Agreement (ESA) outlines the negotiated terms regarding necessary infrastructure upgrades, payment schedules, operational terms, and applicable rates. DISCUSSION: This project represents a significant new load on ERMU’s electric system and will require infrastructure upgrades to support the growth. While the ESA represents the final negotiated terms, additional commitments remain contingent upon completion of a future market-based rate, confirmation of transmission capacity through Great River Energy’s (GRE) system impact study, and installation of required infrastructure upgrades. Our power provider, Minnesota Municipal Power Agency, has confirmed they are able to meet the customer’s power requirements. The project is proposed to be developed in two phases: • Phase One, anticipated to be in service by the second quarter of 2027, includes minor infrastructure upgrades to existing feeders and the installation of two new feeders from existing substation transformers to provide approximately 23 MW of capacity. • Phase Two, anticipated to be in service by the second quarter of 2029, includes major infrastructure upgrades to our West Substation to support the installation of a third substation transformer. The new transformer will support two additional feeders which will provide 10 MW of additional capacity and ensure system redundancy. The attached ESA requires the data center to be built with a closed-loop glycol-based cooling system (similar to an engine’s cooling system in your vehicle), so once the system is filled and 80 operational, no water will need to be added for cooling. As such, there is no need to modify the existing domestic water service to the building. In light of the current public concern regarding data centers, it is important to note that this project represents minimal risk to ERMU, our customers, or our transmission and power providers. Under the terms of the attached ESA, the potential customer is responsible for 100% of the infrastructure costs required to meet their energy demand and must pay these costs prior to any equipment purchase or infrastructure upgrades. Additionally, the applicable rate, being developed in coordination with our power supplier, requires customer-owned back-up generation, that in combination with meeting energy requirements via day-ahead market pricing and a pass-through cost structure, will eliminate the need for our power provider to build large power generation facilities to support this proposed project. As of the writing of this report, staff have not received the results of the system impact study from GRE. Once received, the attached ESA will be updated to reflect the estimated costs for any necessary infrastructure modifications. Neither party will sign the ESA until the estimated costs are received. Staff request commission approval of the agreement, pending final legal review, as well as provision of authorization to the General Manager and ERMU’s attorney to approve any subsequent changes that are not material. FINANCIAL IMPACT: Since the property has an existing service that is being upgraded, the customer is responsible for all costs that directly support their capacity needs. Cost-sharing may apply for infrastructure upgrades that also benefit the broader distribution system. ATTACHMENTS: Market-Based Electric Service Agreement for 19178 Industrial Boulevard NW 81 DRAFT SUBJECT TO COMMISSION APPROVAL 1 MARKET-BASED ELECTRIC SERVICE AGREEMENT BETWEEN ELK RIVER MUNICIPAL UTILITIES AND ELK RIVER CAPITAL, LLC This Market-Based Electric Service Agreement (“Agreement”) is made and entered into the ____ day of May, 2026, by and between the Elk River Municipal Utilities Commission d/b/a Elk River Municipal Utilities (“ERMU”), a municipal utility under the laws of the State of Minnesota, and Elk River Capital, LLC, a limited liability company duly organized and existing under the laws of Minnesota (the “Customer”), individually referred to as a “Party” and collectively as the “Parties.” WHEREAS, the Customer is developing a data center located at 19178 Industrial Boulevard NW, Elk River, Minnesota, (the “Project”) in two phases (23 megawatts followed by an additional 10 megawatts), as further described herein; WHEREAS the Customer has requested that ERMU arrange three-phase electric service with capacity sufficient to serve the Project’s total capacity of up to 33 megawatts when completed; WHEREAS ERMU has confirmed capacity for the Project in a Letter of Intent executed by the Customer and delivered to ERMU as of April 15, 2026 (the “Letter of Intent”), subject to the terms of this Agreement; and WHEREAS, the Parties wish to set forth the terms and conditions under which ERMU will provide electric service to the Project, (an Electric Services Agreement, as defined in the Letter of Intent) which, by its terms, supersedes and replaces the Letter of Intent. NOW THEREFORE, in consideration of the commitments herein and for other good and valuable consideration, the sufficiency of which is acknowledged, ERMU and the Customer agree as follows: 1. INTENT AND INTERPRETATION The Parties acknowledge and agree that Customer's anticipated load is significant as compared to ERMU’s current electrical system load. The Parties acknowledge and agree that the Customer shall be responsible for all components of costs attributable to providing or arranging electric service to Customer, except as specifically provided in this Agreement. The Parties acknowledge and agree that ERMU’s service to Customer shall not prejudice ERMU’s service to its remaining customers. The Parties acknowledge and agree that ERMU’s electric service to the Customer shall not interfere with the operation of ERMU’s system, reduce the quality of electric service provided to ERMU’s other customers, or create a negative financial impact on ERMU’s other customers. 82 DRAFT SUBJECT TO COMMISSION APPROVAL 2 2. DEFINITIONS The Act has the meaning provided in Section 15.3. Affiliate means any person or entity that directly or indirectly controls, is under the control of, or is under common control with, the named entity by the power to direct or cause the direction of the management of the policies of named entity, whether through ownership interest, by contract or otherwise. Business Days means Monday through Friday, excluding federal holidays. Calendar Days means consecutive, daily counting on a calendar, for a full 24-hour period, starting at midnight and ending at the following midnight; and includes all 365/366 days in a year, as applicable. Contract Year shall mean the twelve-month period beginning on January 1 and ending on December 31 of each year of the Term. Defaulting Party has the meaning provided in Section 14.6. Delivery Points means the points of delivery under this Agreement for ERMU’s retail service is specified in Section 6.1. Disconnect means ERMU’s stopping the supply of power to the Delivery Points as permitted in this Agreement. For the avoidance of doubt, disconnect does not refer to termination of the Agreement, and the Customer may be eligible for reconnection of power upon satisfying the requirements in Section 7.6. Due Date has the meaning provided in Section 7.3. Early Termination Date has the meaning provided in Section 14.6. Effective Date has the meaning provided in Section 3. Electric Department Rules means the policy, as may be revised, established and used by ERMU to fairly and consistently execute electric service operations. Event of Default has the meaning provided in Section 14.1. Force Majeure means an event or circumstance (i) that prevents one Party from performing its obligations under this Agreement (the “Claiming Party”); (ii) that is not within the reasonable control of or the result of the negligence of the Claiming Party; (iii) that was not anticipated as of the effective date of the Agreement; and (iv) that the Claiming Party, by the exercise of due diligence, is unable to overcome, to avoid, or cause to be avoided. Infrastructure Costs has the meaning provided in Section 8.5. 83 DRAFT SUBJECT TO COMMISSION APPROVAL 3 Infrastructure Modifications mean changes to infrastructure determined by ERMU to be required to serve the Project at the Delivery Points, generally identified in the attached Exhibit A, including without limitation: a) Construction of two underground substation feeders to the project in Phase One. b) Construction of two additional underground substation feeders to the project and expansion work at West Substation to support installation of a new transformer at ERMU’s West Substation in Phase Two. c) Any other equipment required to provide service to the project, including without limitation, transmission system modifications required by Great River Energy. Letter of Intent has the meaning provided in the recitals. Load Factor shall mean: [ billing period kWh / (number of days of billing period x 24 hours per day x peak demand)] x 100% = % load factor. ERMU shall calculate the Load Factor over the course of a calendar year. The Load Factor calculation excludes any interruption due to, caused by, or within the control of MISO, when Customer is either directed to shed load or electric service is interrupted by direction of MISO. Minimum Demand has the meaning provided in Section 5.3. MISO shall mean the Midcontinent Independent System Operator, Inc., or any successor thereto. Non-Defaulting Party has the meaning provided in Section 14.6 Obligations has the meaning provided in Section 5.4. Party shall mean either the Customer or ERMU as a party to this Agreement. Performance Assurance means a pledge from the Customer to ERMU as security for Customer’s Obligations under this Agreement, including without limitation, cash deposit, a letter of credit, or other security and/or collateral acceptable to ERMU in its sole discretion. Phase One of the Project means up to 23 megawatts of capacity expected to be operational in the fourth quarter of 2026, or the second quarter of 2027, depending on delivery of required materials. Phase Two of the Project means up to an additional 10 megawatts of capacity expected to be operational in 2028 or 2029, depending on the delivery of the required substation transformer. Tariff has the meaning provided in Section 5.14 Term has the meaning provided in Section 4.1 84 DRAFT SUBJECT TO COMMISSION APPROVAL 4 Termination Payment has the meaning provided in Section 14.6 Water Department Rules means the policy, as may be revised, established and used by ERMU to fairly and consistently execute water service operations. Wholesale Provider means the Minnesota Municipal Power Agency. 3. CONDITION PRECEDENT. The following requirement is a condition precedent to the effectiveness of performance by ERMU under this Agreement: Delivery of the first scheduled payment of estimated Infrastructure Costs on or before June 3, 2026, as provided in Section 8.8. Until this condition precedent has occurred, this Agreement shall not become effective and neither Party shall have any rights or obligations by reason of this Agreement, regardless of whether or not it has been executed. The “Effective Date” of this Agreement shall commence upon the Customer making the first scheduled payment, as provided in Section 8.8. 4. TERM OF AGREEMENT 4.1. Term. The initial term of this Agreement (the “Initial Term”) shall commence upon the Effective Date and shall continue for a period of twelve (12) years from the date Customer delivers notice of operational capacity for Phase One to ERMU. Thereafter, the Agreement will automatically be extended for separate additional terms of five (5) years each (each an “Additional Term” and collectively the “Additional Terms”). The Initial Term and all exercised Additional Terms are collectively referred to herein as the “Term.” Notwithstanding the foregoing, the Customer may elect to terminate this Agreement effective at the end of the Initial Term by delivering written notice of such election to ERMU at least twelve (12) months before the last day of the Initial Term. Further, Customer may elect to terminate this Agreement effective at the end of any Additional Term by delivering written notice of such election to ERMU at least twelve (12) months before the last day of the Additional Term in effect. 4.2. Letter of Intent. The Parties acknowledge and agree that this Agreement supersedes and replaces in its entirety the Letter of Intent. ERMU has received the Reservation Payment (as defined in the Letter of Intent) and, provided the conditions precedent to this Agreement are satisfied, ERMU will apply the Reservation Payment to ERMU’s pre-design and planning efforts for the Infrastructure Modifications. 5. ELECTRIC SERVICE CONDITIONS AND RATE COMPONENTS. 5.1. Service. 30 MW of Service shall be provided at three-phase, 60 hertz, alternating current at a voltage of 12,470GRDY/7,200 volts primary. Three (3) MW of Service shall be provided at three-phase, 60 hertz, alternating current at a voltage of 480 volts secondary. 85 DRAFT SUBJECT TO COMMISSION APPROVAL 5 5.2. Capacity. The Customer acknowledges and agrees that capacity for the Project shall not exceed 23 megawatts for Phase One and an additional 10 megawatts for Phase Two. Any request for additional capacity or services may require a system impact study through Great River Energy or MISO, as applicable. Capacity is also subject to Section 5.10. 5.3. Minimum Demand Charge. The Customer agrees to pay in each monthly billing period a monthly minimum demand charge (the “Minimum Demand”) in an amount equal to 80% of the Project’s 23 MW for Phase One and 33 MW for Phase Two (i.e. 18,400 kW for Phase One and 26,400 kW for Phase Two) all according to the demand charge in the Tariff. The Minimum Demand is due regardless of actual demand usage. If the Project’s actual demand usage is higher than the Minimum Demand, the actual demand usage will be billed to and payable by Customer as provided in Section 7.1. 5.4. Other Obligations. In addition to the Minimum Demand, the Customer shall be responsible for monthly electric service under the Tariff and all other costs, fees, and expenses as set forth herein or that may be adopted by ERMU, and any other charges or penalties related to providing service or costs that arise due to Customer’s use of electric service at the Project. All amounts due by Customer to ERMU in accordance with this Agreement, including without limitation ERMU’s service regulations, shall be referred to as the “Obligations.” 5.5. Late Fee. In addition to all other remedies provided herein, the failure to timely pay the Obligations will result in a late fee equal to 10% of the unpaid amount due hereunder. The late fee of 10% is automatically due and owing upon the failure of Customer to timely make any payment required under this Agreement and ERMU shall not be obligated to deliver a billing statement for the late fee. In the event ERMU delivers a billing statement to customer that does not include an otherwise accrued late fee, such delivery shall not constitute a waiver of ERMU’s right to collect such late fee from Customer. 5.6. Performance Assurance. If the Customer fails to make a timely payment under this Agreement twice in a Contract Year, then upon the second occurrence of an untimely payment (even if remedied during any applicable cure period), the Customer must provide, within twenty (20) Business Days of ERMU’s written request, a letter of credit or other Performance Assurance in an amount equal to one-and-one-half times the then applicable monthly prepayment amount due under Section 7.2 at the time of ERMU’s written request. 5.7. Maximum Permitted Load. ERMU shall have no obligation to upgrade its facilities for any electric load above the design load level detailed in this Agreement in Section 5.2. 5.8. Planned Outages and Operations Updates. The Customer will provide ERMU with information related to its energy consumption, including any planned outages for 86 DRAFT SUBJECT TO COMMISSION APPROVAL 6 operations and any ramping up or ramping down of operations, in writing, at least seven (7) days in advance of such changes in energy consumption. 5.9. Customer’s Failure to Take. If the Customer fails to take all or a portion of the power or energy provided under this Agreement, then Customer shall nonetheless remain obligated to pay the Minimum Demand. For the avoidance of doubt, the Customer shall be responsible for any additional costs required by its failure to take all or a portion of the power and energy provided under this Agreement. 5.10. Minimum Load Factor. Starting five years from the Effective Date, ERMU will determine the Load Factor of the Project after each Contract Year. If the Customer’s Load Factor falls below 50% of the 26.4 MW Project load level for a Contract Year, the Customer has one year to satisfy this minimum Load Factor; if the Customer fails to satisfy this minimum Load Factor, the Parties will meet and discuss the Customer’s two options: (a) the Customer shall pay for the minimum Load Factor for the subsequent Contract Year (regardless of actual Load Factor) and retain the full capacity of the Project; or (b) the Customer shall forfeit any rights to capacity that it failed to use under this Agreement. 5.11. Resale Prohibited. As a retail end user under Minnesota law, the Customer is prohibited from reselling any power or energy under this Agreement. 5.12. Conservation Improvement Plan. Under Minnesota law, a conservation improvement plan fee of 1.5% of all electric utility charges (CIP) is required for loads less than 20 MW. ERMU will bill and collect this fee until the Customer provides ERMU written notice that the Customer’s load has reached at least 20 MW and that Customer has received approval from state authorities to opt-out of the CIP program. ERMU shall reasonably cooperate with and assist Customer to seek approval from state authorities to opt-out of said program. Until the Department of Commerce approves the Customer’s exemption, the CIP applies. 5.13. All Requirements. During the Term of this Agreement the Customer agrees not to purchase electric power or energy within ERMU’s electric service territory from any person or party other than ERMU, and in consideration of the undertakings by ERMU to arrange service to the Customer, not to construct generation to serve the Project or the Customer that operates in parallel with ERMU’s system without ERMU’s consent. For the avoidance of doubt, the Customer may arrange back-up generation for a portion of Customer’s load to operate when ERMU is unable to provide service. 5.14. Tariff. ERMU is conducting an electric rate study to determine the appropriate components and amounts for the Market-Based Electric Service tariff (the “Tariff”) that will apply to the Project. ERMU anticipates the Tariff will encompass all of ERMU’s costs to serve the Project, including, but not limited to, wholesale power supply, demand, energy, transmission, renewable energy requirements, MISO costs and applicable services, such as scheduling and ancillary services, conservation improvement requirements, power cost adjustments, fuel cost adjustments, facilities costs, operation and maintenance, insurance, depreciation, allocable general and administrative, professional services, and financing expenses. The Customer shall be responsible for all 87 DRAFT SUBJECT TO COMMISSION APPROVAL 7 taxes and fees, including any franchise fees, from the Delivery Points. The Tariff will be subject to modifications and adjustments, from time to time, at ERMU’s discretion subject to nondiscriminatory treatment of all customers in the applicable customer class. In addition to the terms and conditions contained in this Agreement, service to the Customer shall also be subject to the terms and conditions contained in ERMU’s applicable policies and electric service regulations promulgated by ERMU’s Commission as a local unit of government. 5.15. Future Governmental Impositions. If any governmental authority during the Term of this Agreement imposes any tax, charge, or assessment on ERMU, which increases ERMU’s cost of serving the Customer, ERMU shall be entitled to recover those increased costs from the Customer. 5.16. Governmental Mandates or Requirements. If the State of Minnesota or the United States of America or any agency of these governments imposes any renewable generation requirement, conservation improvement mandate, environmental tax or assessment, transmission requirement, and/or any other requirement, tax, or assessment on ERMU or the Customer that increases ERMU’s costs of providing service under this Agreement, ERMU shall be entitled to pass such cost through to the Customer. Without limiting the generality of this Section, costs relating to compliance with renewable energy objectives under law such as Minnesota Statutes, Section 216B.1691, as may be amended, shall be Customer’s responsibility. If the Parties mutually agree in writing, Customer may meet any requirements under this Section 5.16 through the Customer’s own procurement of renewable energy credits or other applicable instruments. 5.17. Non-Redundant Primary Feed. The Customer acknowledges and agrees that (a) it has opted for ERMU supplying Phase One of the Project with non-redundant primary feed; (b) non-redundant primary feed creates a risk that a substation failure, cut line, or other problem with the primary feed, could result in ERMU’s inability to supply 20 MW of the desired 23 MW of Phase One power for an extended time; (c) if the primary feed is down, ERMU will only be able to supply approximately 3 MW of power to the Project from ERMU’s existing power system; and (d) Customer accepts the risk of down time in the primary feed and releases ERMU from any claims arising from such down time. The Infrastructure Modifications for Phase One and Phase Two are expected to create redundant primary feed for the Project. 5.18. Character and Continuity of Service. Service to the Customer will be scheduled or dispatched in accordance with prudent utility practice, subject however, to transmission system requirements, MISO rules, regulations, curtailments and availability, and Section 5.19. 5.19. Emergency Interruptions; Curtailment. If there is a constraint on the distribution or transmission system requiring ERMU to curtail service to the Customer, then upon being notified by MISO, or ERMU determining a system emergency, the Customer will promptly comply with such curtailment within fifteen (15) minutes for no more than eight (8) hours of duration. It is the express intention of this provision that any curtailment order issued to ERMU shall fall equitably on all similar end use loads within the affected control 88 DRAFT SUBJECT TO COMMISSION APPROVAL 8 area and the load served by ERMU. If the Customer fails to comply, ERMU shall be entitled to limit delivery to the Customer to effectuate the curtailment requirements during the period in which any shortage exists. ERMU shall not incur any liability to the Customer with any such action so taken by ERMU. ERMU may temporarily interrupt, increase, or reduce deliveries of electric energy to the Customer if such action is necessary in case of emergencies, ERMU distribution system interruption, or ERMU material equipment failure, in ERMU’s reasonable discretion. 5.20. Planned Interruptions. After seven (7) days written notice to the Customer, ERMU or its agent will coordinate any planned interruption or reduced deliveries of electric energy to the Customer to install equipment in or make repairs to or replacements, investigations, and inspections of or to perform other maintenance work on the generation or transmission facilities and apparatuses. In the event of any temporary interruption, increase, or reduction of deliveries of electric energy due to such planned interruptions, the Customer shall not be responsible, or required to pay, for any period of temporary interruption, increase, or reduction. 5.21. Force Majeure. To the extent a Claiming Party is prevented by Force Majeure from carrying out, in whole or in part, its obligations under this Agreement and the Claiming Party gives notice and details of the Force Majeure to the other Party as soon as practicable, then the Claiming Party shall be excused from the performance of its obligations with respect to this Agreement, other than the obligation to make payments due or becoming due with respect to performance before the Force Majeure. The Claiming Party shall remedy the Force Majeure with all reasonable dispatch. 5.22. Force Majeure Exceptions. Force Majeure shall not be based upon: (1) a decrease in Customer’s expected load; (2) the Customer’s inability to economically use or receive the power or energy provided; or (3) ERMU’s ability to resell the power or energy at a price greater than the pricing set forth in the Agreement. 5.23. Wholesale Provider Coordination. ERMU is a member of the Wholesale Provider, which also serves as ERMU’s wholesale power supplier. ERMU has coordinated with the Wholesale Provider about the Project and Wholesale Provider plans (a) to purchase capacity and energy in real-time pricing through the MISO day ahead market to serve the Project and (b) to purchase renewable energy credits to fulfill state mandates related to the Project. Customer acknowledges and understands ERMU’s Wholesale Provider may require the Customer to register their generation assets with MISO. Customer acknowledges and agrees that it shall comply with such requirements upon receipt of notice of same from ERMU. 6. DELIVERY AND EQUIPMENT. 6.1. Delivery Points and Metering. The Customer shall have metered Delivery Points as further described in Exhibit B. 89 DRAFT SUBJECT TO COMMISSION APPROVAL 9 6.2. Equipment Ownership. The Customer shall install, own, operate, and maintain, at its sole expense, all facilities necessary to interconnect with ERMU’s distribution system. 7. OPERATIONAL BILLING AND PAYMENT. 7.1. Prepayment Requirement. Customer must pay ERMU an initial prepayment before ERMU is obligated to provide any service to Customer. ERMU will provide the initial prepayment amount by written notice to Customer at least ten (10) days before the Due Date (as later defined herein). Thereafter, Customer shall make monthly prepayments on an ongoing basis during the Term of the Agreement. The amount of the monthly prepayment may vary depending upon actual usage, as described in Section 7.2. ERMU shall establish the amount of the prepayment each month, consistent with an average of forty-five (45) days of usage, based upon (a) the estimated bill amount at 80% of demand and energy of 23 MW in Phase One; and (b) the estimated bill amount at 80% of demand and energy of 33 MW in Phase Two. ERMU will adjust the usage calculation annually in January of each Contract Year. 7.2. Billing Statement. Unless ERMU determines, in its sole discretion, to issue billing statements more frequently, ERMU will send a billing statement to the Customer on or about the third Business Day of each month. The billing statements may be delivered by email or other electronic transmission. Consistent with the Tariff, each billing statement will include the prior month’s actual meter readings, and the application of the prepayment to true-up actual usage. If the prepayment for a month exceeds the actual amount owing under this Agreement and the terms of the Tariff, ERMU will credit the Customer’s account and adjust the amount of the prepayment due in the applicable billing statement. If the prepayment for a month is less than the actual amount owing under this Agreement and the terms of the Tariff, then the billing statement will state any additional amount due from the Customer. 7.3. Payments. The Customer’s payments are due in same day funds five (5) Business Days following issuance of a billing statement (the “Due Date”). Same day funds means funds that are available for ERMU’s use on the same day as the Due Date. Bills not paid in same day funds on or before such Due Date as printed on the billing statement are past due or delinquent and shall bear a late fee provided in Section 5.5. 7.4. Delinquent Amounts; Disconnect. The Customer’s bills become delinquent if not paid on or before the Due Date and ERMU may Disconnect service for delinquency upon five (5) Business Days written notice delivered to the Customer by email or other electronic transmission. 7.5. Amounts Owing. ERMU’s Disconnect of service for any cause shall not release the Customer from any obligation to make payments for any Obligation under this Agreement. Any delinquent amounts will be subject to collection procedures. ERMU may employ any and all reasonable methods for collecting unpaid amounts, including assignment to collection agencies, or legal actions against the Customer. If ERMU believes the Customer is insolvent, is in financial difficulty or considering bankruptcy, 90 DRAFT SUBJECT TO COMMISSION APPROVAL 10 ERMU may take appropriate action to secure payment of previous and present Obligations. Such action may include obtaining Performance Assurance, an adequate security deposit, collecting payment on a more frequent basis, or other such actions as may be deemed necessary and reasonable under the circumstances. 7.6. Reconnection Request. Before ERMU considers any request by the Customer for reconnection of service, all amounts past due under this Agreement must be paid in full. Before reconnecting service, ERMU may require a reconnect charge, deposit, assessment, security, Performance Assurance or other appropriate conditions which provide adequate assurance of future performance in ERMU’s discretion. 7.7. Billing Disputes. In the event of any dispute as to any portion of any billing statement, the Customer shall nevertheless pay the full amount of the disputed charges when due and shall give written notice of the dispute to ERMU not later than the date such payment is due. Such notice shall identify the amount in dispute and set forth a summary of the grounds on which such dispute is based. ERMU shall consider such dispute and shall advise the Customer of ERMU’s position within thirty (30) days following receipt of such written notice. Upon final determination (whether by agreement, adjudication, or otherwise) of the correct amount, any difference between such correct amount and such full amount shall be properly reflected in the billing statement next submitted to the Customer after such determination. 7.8. Unconditional Payment Obligation. The Customer shall pay its billing statement whether or not service is suspended, interrupted, interfered with, reduced, curtailed, or terminated in whole or in part. 8. INFRASTRUCTURE COSTS AND CONSTRUCTION. 8.1. Infrastructure Modification Plans. ERMU, in its discretion, will determine the necessary Infrastructure Modifications, including without limitation the facilities and work necessary to provide electric service to the Project. The Infrastructure Modifications must follow ERMU’s requirements, including without limitation, requirements for design, competitive bidding, procurement, construction, and technical requirements. 8.2. Infrastructure Ownership. ERMU will solely own and operate the Infrastructure Modifications upon completion. The Infrastructure Modifications, and services provided in connection therewith, may include components that are used to serve users other than the Customer and/or the Project. 8.3. Cooperation. The Customer shall fully cooperate with ERMU in planning and implementing the Infrastructure Modifications by, among other things, providing detailed specifications and information needed to plan the Infrastructure Modifications and determine the costs of completion thereof. 8.4. Customer Facilities. The Customer shall be responsible, at its own cost, for enabling the Project to receive electric service at the Delivery Points, including without limitation, providing primary metered service and all downstream equipment according to 91 DRAFT SUBJECT TO COMMISSION APPROVAL 11 ERMU’s Tariff and applicable “Electric Department Rules,” as may be revised, and other standard terms, conditions, and policies for providing primary metered electric service. 8.5. Infrastructure Costs. The actual costs to complete the Infrastructure Modifications (the “Infrastructure Costs”) shall include without limitation: the actual fees, costs, charges, expenses, etc. associated with, necessary for, and incurred for design, engineering, planning, purchasing equipment, facilities, and materials, labor, professional services, restoration, easement rights, acquisition, installation, and construction of the Infrastructure Modifications. For the avoidance of doubt, the Infrastructure Costs do not include the construction costs of any modifications to the existing substation transformers, but they do include all modification work necessary to the substation grounds, structures, materials, and equipment to accommodate, install, tie-in (connect), and commission a third substation transformer. 8.6. Customer Responsibility. The Customer shall pay ERMU the actual Infrastructure Costs detailed as an estimate in Exhibit C as an agreed-upon capital contribution in aid of construction as set forth herein. If agreed upon in writing by ERMU, the Customer may purchase certain materials and equipment (e.g. underground wire and substation transformer), including all manufacturer warranties, to be delivered to ERMU as a donation or gift in lieu of ERMU purchasing the same items and charging the Customer as part of the Infrastructure Costs. 8.7. ERMU Estimate. ERMU has estimated the Customer’s responsibility of the Infrastructure Costs under Section 8.6 as further detailed in Exhibit C. The Customer has approved ERMU’s initial estimate in Exhibit C. The Customer acknowledges and agrees that: (i) the estimated Infrastructure Costs are purely estimates and do not reflect the real, actual, payable costs to be incurred for the Infrastructure Modifications; (ii) the estimated costs in Exhibit C are subject to change over time; and (iii) the Customer is responsible for the actual cost of Infrastructure Costs, subject to a true-up process described in Section 8.10. 8.8. Payment for Infrastructure Costs. The Customer shall arrange for payment of funds to ERMU equal to the Infrastructure Costs set forth in the payment schedule set forth in this section. The first payment is due June 3, 2026. The detailed description is set forth in Exhibit C. The Customer shall make payments to ERMU in same-day funds for Infrastructure Costs according to the following payment schedule: Due Date Description Amount June 3, 2026 Procurement/Installation $2,500,000.00 June 10, 2026 Transmission Mods $___________ September 1, 2026 Design/Procurement $1,850,000.00 September 1, 2027 Installation/Expansion $1,350,000.00 Total Infrastructure Costs $___________ 8.9. Funds for Infrastructure Costs. Payments received by ERMU will initially be recorded in a Project-specific liability account and applied to Customer costs as they are 92 DRAFT SUBJECT TO COMMISSION APPROVAL 12 incurred. Amounts will be trued up as provided in Section 8.10. Customer understands and agrees that all work for the Infrastructure Modifications is required, regardless of final load, to provide sufficient system redundancies for the Project. Delinquent payments are subject to the late fees and service Disconnect under Sections 5.5 and 7.3. ERMU will draw down any funds in the separate account in its sole discretion to advance Infrastructure Modifications and to arrange utility service to the Project. ERMU will not order materials or incur any expense for Infrastructure Costs or the Project until Customer has made the required timely payment under the payment schedule in Section 8.8. 8.10. True-Up Process. During the planning and construction period of the Infrastructure Modifications, ERMU shall compare, on an annual basis, the actual Infrastructure Costs incurred as compared to estimated Infrastructure Costs in Exhibit C. If the projected Infrastructure Costs do not substantially correspond with actual costs, or if at any time during the Contract Year there are or are expected to be extraordinary costs substantially affecting costs, ERMU shall notify the Customer of any billing adjustments as may be applicable to the remainder of such Contract Year. If the actual Infrastructure Costs are lower than the estimated costs, ERMU shall notify the Customer and apply any remaining overage as a credit to the next installment of Infrastructure Costs, unless mutually agreed by the Parties to proceed otherwise. If necessary, ERMU shall provide revised estimates to the Customer of Infrastructure Costs, substantial changes in construction schedules, plans, or specifications. Upon completion of the Infrastructure Modifications, ERMU shall complete a final true-up as to actual costs and amounts due from or to the Customer. 8.11. Access; Easements. The Customer shall allow ERMU access reasonably necessary to install, construct, operate, maintain, upgrade, and replace facilities used to provide service to the Project. The Parties acknowledge and agree that ERMU shall require easements on, over, or under the property of the Project for these purposes and the Parties shall cooperate, including preparation and signature of easements (without additional cost to ERMU) and documents reasonably necessary for these purposes, each Party bearing its own expenses. 8.12. Project Termination. If the Customer does not proceed with the Project, ERMU is not obligated to return any of the dollars that ERMU has already spent or encumbered as Infrastructure Costs for the Project. The Customer will be responsible for windup and/or decommissioning costs. ERMU will provide a final accounting of the Infrastructure Costs. 8.13. ERMU Policies/Requirements. All expenditures made by ERMU on behalf of the Customer or the Project must comply with ERMU’s policies and applicable requirements, including without limitation municipal competitive bidding, procurement, and the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13. 9. CERTAIN OBLIGATIONS OF THE CUSTOMER. 9.1. Local Approvals. The Project is subject to all typical and customary local approvals, including, but not limited to: comprehensive plan, zoning, subdivision, noise, 93 DRAFT SUBJECT TO COMMISSION APPROVAL 13 environmental, historic preservation approval process, traffic management plans, inspections, site plan and design reviews, conditional use permits, variances, and other applicable zoning and land use approvals. The Customer shall use reasonable best efforts to obtain all required Project approvals. 9.2. Customer Facilities Responsibility. The Customer shall maintain, repair, and replace its facilities in good condition and repair at all times under this Agreement. The Customer shall comply with all applicable permits, state, federal, and local laws and requirements. The Customer shall give ERMU access at all reasonable times to allow ERMU to inspect the Customer’s facilities and interconnection with ERMU’s system to confirm compliance with the requirements of this Section. 9.3. Water Usage Limitations. The Customer and Project are expressly prohibited from using ongoing water services for any cooling or other non-domestic purposes related to the Project. The Project must contain a closed loop cooling system that may include an initial fill. ERMU shall provide the Project with domestic water services in accordance with ERMU’s standard terms, conditions, and/or policies, including without limitation “ERMU’s Water Department Rules.” The Customer shall reasonably cooperate with ERMU to assure compliance with this Section. 9.4. Compliance with Applicable Laws. The Customer must comply with all applicable laws, including without limitation, ERMU utility service requirements, MISO requirements, and federal, state, and local laws (including, without limitation, City zoning, permit, and noise requirements). 9.5. Transmission Study. The Parties acknowledge and agree that a transmission system impact study has been completed by Great River Energy. A separate transmission or distribution system impact study may be required for a redundant loop feed distribution system; if required, the study shall be paid for by the Customer. 10. [Intentionally Omitted.] 11. REPRESENTATIONS AND WARRANTIES BY CUSTOMER. The Customer represents and warrants as of the Effective Date that: 11.1. It is a limited liability company duly organized, validly existing and in good standing under the laws of Minnesota and has all requisite power and authority (corporate and otherwise) and has made all registrations and filings (if any) required under the laws of the State of Minnesota to own its property and to carry on its business as now conducted and as intended to be conducted under this Agreement, and to enter into and carry out the terms of this Agreement. 11.2. The execution and delivery of this Agreement by the Customer and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary board, shareholder, or other company action on behalf of the Customer, and the Customer is not subject to any charter, bylaw, lien or encumbrance, agreement, instrument, order or decree of any court or governmental body (other than 94 DRAFT SUBJECT TO COMMISSION APPROVAL 14 any required governmental approval) which would prevent the consummation of the transactions contemplated by this Agreement. 11.3. The execution, delivery, and performance of this Agreement by the Customer do not and will not violate any material statute, ordinance, or governmental rule or regulation applicable to the Customer, or result in a breach or constitute a default under any indenture or agreement to which it is a party or by which it or its property may be bound. 11.4. This Agreement has been duly executed and delivered by the Customer, and this Agreement and such instruments executed as the result thereof shall, constitute legal, valid, and binding obligations of the Customer enforceable in accordance with their terms, subject, however, to the effects of bankruptcy, insolvency, reorganization, moratorium and similar laws from time to time in effect relating to the rights and remedies of creditors, as well as to general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law). 11.5. No further consent, approval, permit, license, or authorization of any governmental body is required in connection with the execution, delivery and performance of this Agreement by the Customer. 11.6. There is no action, suit, proceeding, inquiry, or investigation, at law or in equity, before or by any court, governmental agency, public board or body, pending or, to the knowledge of the Customer, threatened against or affecting the Customer as to the execution, delivery, validity, performance, or enforceability of this Agreement. 11.7. No event has occurred and is continuing which would constitute, or upon the passage of time or the giving of notice or both could constitute, directly or indirectly, a default as to the Customer under this Agreement. 11.8. Neither the Customer nor any Affiliate of the Customer has taken any action which would give rise to a valid claim against ERMU for a brokerage commission, finder’s fee, or other like payment. 11.9. The Customer is and will continue to be solvent throughout the Term of this Agreement, including without limitation: (a) the Customer’s entry into this Agreement will not cause the Customer to be insolvent; (b) the Customer is not insolvent as defined in the Bankruptcy Code, 11 U.S.C. §101, et seq.; (c) the Customer does not contemplate filing a petition in bankruptcy or for an arrangement or reorganization, nor are there any threatened or actual bankruptcy or insolvency proceedings against the Customer; (d) the Customer is and at all times during the Term of this Agreement will be able to pay its debts as they mature and become due and payable; and (e) the reasonable salable value of each of the Customer’s assets exceeds the 95 DRAFT SUBJECT TO COMMISSION APPROVAL 15 aggregate amount of the Customer’s debts and liabilities, whether actual or contingent. 11.10. The Customer is a sufficiently capitalized operating entity capable of independently performing its obligations under this Agreement and paying its debts in the ordinary course of business, including without limitation: (a) the Customer shall not maintain its assets in such a manner that it will be costly or difficult to segregate, ascertain, or identify its individual assets from those of any Affiliate; and (b) the Customer is financially independent of any Affiliate and financially able to perform its obligations under this Agreement through its own business operations. 11.11. To the best of the Customer’s knowledge, neither the statements or representations made in this Agreement, nor any financial statement of the Customer, nor any statement, list, certificate, or other information furnished or to be furnished on behalf of the Customer to ERMU in connection with this Agreement contains or will contain any untrue statement of a material fact, or omits or will omit to state a material fact necessary to make the statements contained therein, in light of the circumstances in which they are made, not materially misleading. 12. REPRESENTATIONS AND WARRANTIES BY ERMU. ERMU represents and warrants as of the Effective Date that: 12.1. ERMU is a municipal utilities commission duly established and existing under the laws of the State of Minnesota. ERMU has the power and authority under the law to own its property and to carry on its business as now conducted and to enter into and to carry out the terms of this Agreement. 12.2. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary approval on behalf of ERMU, and ERMU is not subject to any constitutional provision, statute, bylaw, lien or encumbrance of any kind, or any agreement, instrument, order or decree of any court or governmental body (other than any required governmental approval) which would prevent consummation of the transactions contemplated by this Agreement. 12.3. The execution, delivery, and performance of this Agreement by ERMU does not or will not violate any material constitutional provision, statute, charter, ordinance, or governmental rule or regulation applicable to ERMU, or result in a breach or constitute a default under any indenture or agreement to which ERMU is a party or by which its properties may be bound. 12.4. This Agreement has been duly executed and delivered by ERMU, and this Agreement does constitute legal, valid, and binding obligations of ERMU enforceable in accordance with their terms, subject, however, to the effects of bankruptcy, insolvency, 96 DRAFT SUBJECT TO COMMISSION APPROVAL 16 reorganization, moratorium and similar laws from time to time in effect relating to the rights and remedies of creditors, as well as to general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law). 12.5. No further consent, approval, permit, license, or authorization of any governmental body or the voting public is required in connection with the execution, delivery, and performance of this Agreement by ERMU. 12.6. There is no action, suit, proceeding, inquiry, or investigation, at law or in equity, before or by any court, governmental agency, public board or body, pending or, to the knowledge of ERMU, threatened against or affecting ERMU contesting or affecting as to ERMU the execution, delivery, validity, or enforceability of this Agreement. 12.7. No event has occurred and is continuing which would constitute, or upon the passage of time or the giving of notice or both could constitute, directly or indirectly, a default as to ERMU under this Agreement. 13. DISCONNECT OF SERVICE. 13.1. ERMU may refuse to connect, or may Disconnect service for good cause, including, but not limited to, violation of any of its service regulations, failure to provide the Performance Assurance when requested, failure to pay utility charges when due, theft or illegal diversion of the electricity, or upon receipt of written instructions from the proper authorities of the violation of municipal, state, or national electric codes. 13.2. Upon unauthorized use of electricity by the Customer during periods of ordered interruption, ERMU, in its sole discretion, may, or its agent may, immediately Disconnect service. 13.3. If ERMU, in its sole discretion, determines a safety issue or system emergency, ERMU or its agent may immediately Disconnect service to the Customer. 14. DEFAULT AND REMEDIES; EARLY TERMINATION; LIABILITY. 14.1. Event of Default. Each of the following shall constitute a default (“Event of Default”) under this Agreement: (a) The failure of the Customer to make any payment in full when due under this Agreement after fifteen (15) Business Days written notice; (b) The Customer’s violation or failure to perform, observe, or abide by any Obligations, other than as provided in 14.1(a), and upon ERMU demand to the Customer, the failure to cure within thirty (30) days of written notice from ERMU; (c) A Party (i) shall institute voluntary insolvency proceedings under Title 11 of the United States Code in bankruptcy, or other applicable insolvency laws, (ii) 97 DRAFT SUBJECT TO COMMISSION APPROVAL 17 involuntary insolvency proceedings under Title 11 of the United States Code in bankruptcy, or other applicable insolvency laws, shall be instituted against a Party that are not dismissed or discharged within ninety (90) days thereafter, (iii) any proceedings shall be instituted by or against a Party under any law relating to insolvency or bankruptcy reorganization, and in the case of an involuntary proceeding, that is not discharged within ninety (90) days after filing, (iv) a trustee or receiver shall be appointed for a Party by any court of competent jurisdiction, or (v) shall make a general assignment for the benefit of its creditors; (d) If the Customer provides written notice of permanent cessation of material data center operations, and after the Parties meet and confer within five (5) Calendar days to determine a mutually agreed upon wind-down period not to exceed twelve (12) months, and the Customer fails to provide Performance Assurance for Section 14.6 within thirty (30) Calendar Days; or (e) Any representation or warranty made by a Party in this Agreement shall prove to have been incorrect when made, in any material respect. 14.2. Costs Relating to Default. Whenever there occurs any default, any condition or state of affairs which with the lapse of time or the giving of notice could result in an Event of Default, or an actual Event of Default, and if ERMU employs attorneys, engineers, financial advisors, or other consultants, or incurs other expenses for the collection of payments due or to become due or for the enforcement of performance or observance of any term, condition, or promise on the part of the Customer under this Agreement, the Customer agrees that it shall pay ERMU any and all expenses and costs incurred by ERMU. The Customer further agrees that it shall, within thirty (30) Calendar Days of written demand by ERMU, pay to ERMU the costs and such other expenses so incurred by ERMU. 14.3. Immediate Action. In the event of the Customer’s failure to cease interruptible service or if ERMU, in its sole discretion, determines the existence of a safety issue or system emergency, ERMU or its agent shall be entitled to immediately, without further notice, Disconnect the Customer’s service. 14.4. Other Remedies. Upon the occurrence of an Event of Default, the Non-Defaulting Party shall have the immediate right to exercise any and all remedies for enforcement of this Agreement, including without limitation: (a) any remedy afforded hereunder or by applicable law; (b) seek specific performance or other equitable relief; (c) sue for any monetary amount owed; (d) appoint a receiver; 98 DRAFT SUBJECT TO COMMISSION APPROVAL 18 (e) Disconnect service as provided in this Agreement; (f) Draw down or collect against any Performance Assurance, in whole or in part, in ERMU’s discretion; and (g) terminate this Agreement, as provided in Section 14.6. 14.5. Remedies Cumulative; Limitation on Remedies; Waiver. All rights and remedies set forth in this Agreement are cumulative and in addition to the Parties’ rights and remedies at law or in equity, subject, however, to any limitation on damages, fees and costs as provided for in this Agreement. A Party’s exercise of any such right or remedy shall not prevent the concurrent or subsequent exercise of any other right or remedy. A Party’s delay or failure to exercise or enforce any rights or remedies shall not constitute a waiver of any such rights, remedies, or obligations. No Party shall be deemed to have waived any default unless such waiver is expressly set forth in an instrument signed by such Party. If a Party waives in writing any default, then such waiver shall not be construed as a waiver of any covenant or condition set forth in this Agreement, except as to the specific circumstances described in such written waiver. Neither payment of a lesser amount than the sum due hereunder, nor endorsement or statement on any check or letter accompanying such payment shall be deemed an accord and satisfaction, and the other Party may accept the same without prejudice to the right to recover the balance of such sum or to pursue any other remedy. No Party shall be liable to the other Party for consequential or special damages. 14.6. Early Termination. If a Party (the “Defaulting Party”) undergoes an Event of Default under this Agreement pursuant to Section 14.1(a), (c), or (d), the other Party (the "Non-Defaulting Party") shall have the right: (a) to designate a day, at least fifteen (15) Calendar days from the day such notice is effective, as an early termination date ("Early Termination Date"); (b) to terminate the Agreement between the Parties, effective as of the Early Termination Date; (c) to withhold any payments due to the Defaulting Party under this Agreement, until such time as amounts due under this Agreement are reconciled in accordance with the provisions set forth herein; and (d) to immediately suspend performance due under this Agreement. (a) Termination Payment. Following delivery of notice of the Early Termination Date, the Non-Defaulting Party shall calculate, in a commercially reasonable manner: i. all amounts owed by the Defaulting Party to the Non-Defaulting Party through the Early Termination Date; ii. the Non-Defaulting Party’s costs and expenses of collection, including reasonable attorneys’ fees, actually incurred by the Non-Defaulting Party with respect to the Event of Default; and iii. if the Customer is the Defaulting Party, an amount equal to $1,000,000 per Contract Year multiplied by the years (or months, if partial Contract 99 DRAFT SUBJECT TO COMMISSION APPROVAL 19 Year) remaining in the Initial Term of the Agreement (the “Termination Payment”). (b) Timing. The amount(s) calculated pursuant to subsection 14.6(a) shall be due within ten (10) Business Days after the date the Defaulting Party receives written notice of such amount(s). (c) Dispute Process. If the Defaulting Party disputes the Non-Defaulting Party's calculation under Section 14.6(a), in whole or in part, the Defaulting Party shall, within five (5) Business Days of receipt of the calculated amount, provide to the Non-Defaulting Party a detailed written explanation of the basis for such dispute; provided, however, that where the Termination Payment is due, the Defaulting Party shall first transfer Performance Assurance to the Non- Defaulting Party in an amount equal to the Non-Defaulting Party's calculation of the Termination Payment. 14.7. Responsibilities Following Expiration or Termination. Upon the termination or expiration of this Agreement, in addition to such rights and responsibilities enumerated elsewhere in this Agreement, the grant of any and all right and interest to Customer to the supply of power and energy shall cease, and the Parties shall immediately prepare any commercially reasonably documents or filings and perform all other acts necessary to transfer all such rights and interests to ERMU. 14.8. Immunity. Nothing contained in this Agreement shall in any way affect or impair ERMU’s immunity or the immunity of its commissioners, officials, employees, agents, attorneys, consultants, or independent contractors, whether on account of official immunity, legislative immunity, statutory immunity, discretionary immunity or otherwise. Nothing contained in this Agreement, including any provisions regarding obtaining insurance or otherwise being insured, shall in any way affect or impair the limitations on ERMU’s liability or the liability of ERMU’s commissioners, officials, employees, agents, attorneys, consultants, or independent contractors set forth in Minnesota Statutes, Chapter 466, as such statute may be amended, modified, or replaced from time to time. By entering into this Agreement, EMU does not waive any rights, protections, or limitations provided to ERMU or its commissioners, officials, employees, agents, attorneys, consultants, or independent contractors under the various rules of governmental immunity or under Minnesota Statutes, Chapter 466, as such statute may be amended, modified, or replaced from time to time. 14.9. Responsibilities. Each Party shall be responsible for its own acts or omissions and the results thereof to the extent authorized by law and shall not be responsible for the acts or omissions of any others and the results thereof. The Customer, its successors, and assigns, shall be solely responsible and liable for the Customer’s obligations under the terms of this Agreement. The failure by the Customer to meet such obligations shall not create or give rise to any claim, liability, or obligation of ERMU. 100 DRAFT SUBJECT TO COMMISSION APPROVAL 20 15. NOTICE; DATA. 15.1. Notice. Any notice, election or other correspondence required or permitted under this Agreement shall become effective upon receipt and, except invoices and payments, shall be deemed to have been properly given or delivered when made in writing and delivered by letter, personal service, facsimile, or other documentary form to the authorized representative of the Parties designated below: IF TO ERMU: Elk River Municipal Utilities Attn: General Manager 13069 Orono Parkway – PO Box 430 Elk River, MN 55330-0430 Phone: 763-441-2020 Email: mhanson@ermumn.com IF TO THE CUSTOMER: Elk River Capital, LLC Attn: Ned Abdul 510 North 1st Avenue Suite 600 Minneapolis, MN 55403 Phone: 612-332-8323 x602 Email: ned@swervo.com 15.2. Change of Contact Information. The Parties shall provide each other with written notice to any change or updated contact information for notice purposes under this Agreement, as soon as reasonably practicable after such change. ERMU shall provide the Customer with any updated contact information for its Wholesale Provider. 15.3. Protected Data. The Parties acknowledge and agree that ERMU is subject to the Minnesota Governmental Data Practices Act, Minnesota Statutes, Chapter 13 (the “Act”). The Customer’s electric usage levels and other identifying information of the Customer “customer data” is governed by the Act. The Customer acknowledges and agrees that this Agreement requires close communication with the Wholesale Provider and ERMU’s authorized agents. The Customer authorizes and consents to ERMU providing customer data to Wholesale Provider and ERMU’s authorized agents for the purpose of design, planning, engineering, construction, installation, performing, billing, collecting, and enforcing this Agreement. Any data that a Party provides that is not generally available to the public and that contains value in remaining confidential shall be marked “trade secret.” 15.4. Forward Contract. The Parties acknowledge and agree that transactions under this Agreement constitute forward contracts within the meaning of the United States Bankruptcy Code. 101 DRAFT SUBJECT TO COMMISSION APPROVAL 21 16. GENERAL 16.1. Entire Agreement. This Agreement, including exhibits and recitals, constitutes the entire Agreement and, with respect to provision of electric service to the Project, supersedes all prior agreements and understandings, oral and written, all prior oral and written communications, proposals, agreements, representations, statements, negotiations, and undertakings, whether express or implied, between the Parties hereto with respect to electric service to the Project. The Customer acknowledges and agrees that: (a) this Agreement is not entered into in reliance, in whole or in part, upon any statement or representation made by or on behalf of ERMU, or its agents, except any such statement or representation expressly set out in this Agreement. Headings are for convenience and are not a part of this Agreement. 16.2. Successors and Assigns. This Agreement shall be binding upon the respective Parties, their successors and assigns, on and after the Effective Date hereof; provided, however, that neither this Agreement, nor any interest herein, shall be transferred, sold, or otherwise conveyed by the Customer to a third party, except upon: (a) written notice to ERMU and written consent by ERMU to same, which consent shall not be unreasonably withheld, conditioned, or delayed; and (b) the express written assumption by the proposed assignee to the terms and conditions of this Agreement. The Customer shall remain obligated to continue payments under Section 5.3 through the end of the Term unless and until conditions (a) and (b) in this Section are satisfied. 16.3. Joint Drafting. The Parties agree that they participated equally in, and are jointly responsible for, the drafting of this Agreement. In the event of any dispute, any ambiguity in this Agreement shall not be construed against either Party. 16.4. Captions. Captions and paragraph headings used herein are for convenience only and are not a part of this Agreement and shall not be used in construing or interpreting this Agreement. 16.5. Modification. No term or provision of this Agreement may be changed, revised, altered, or waived, except by an instrument in writing signed by both of the Parties. 16.6. Choice of Law; Venue. The validity, interpretation, and performance of this Agreement and each of its provisions shall be governed by the laws of the State of Minnesota without regard to its conflicts of law principles. The Parties agree that any claim, action, or proceeding seeking any relief in connection with this Agreement shall be brought in a court of competent jurisdiction located in the Sherburne County, Minnesota. The Customer hereby waives any objection that it may have to the venue of any such suit, action, or proceeding, arising under or related to this Agreement and hereby irrevocably consents to the personal jurisdiction of the District Courts for the State of Minnesota in any such suit, action, or proceeding. 16.7. Counsel. Each Party understands, acknowledges, and agrees that they have had the opportunity to consult with legal counsel of their choice regarding this Agreement. Customer agrees and acknowledges that it has read and understands this Agreement, is 102 DRAFT SUBJECT TO COMMISSION APPROVAL 22 entering into it freely and voluntarily, has been advised to seek counsel prior to entering into this Agreement and has had ample opportunity to do so. 16.8. Severability. If any provision in this Agreement is determined by any court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions will not in any way be affected or impaired and they shall remain in force and effect. 16.9. Duly Authorized Signatories; Binding Effect of Execution. Each Party represents and warrants that the person executing this Agreement on its respective behalf is duly authorized to do so, and that, by such execution set forth on the following page of this Agreement, such Party is hereby duly and lawfully bound by this Agreement. 16.10. Counterparts. This Agreement may be executed in counterpart copies by the Parties and each counterpart, when taken together with the other, shall be deemed one and the same executed Agreement. [Signature page follows.] 103 DRAFT SUBJECT TO COMMISSION APPROVAL 23 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by the duly authorized signatories the _______ day of , 2026. ELK RIVER MUNICIPAL UTILITIES COMMISSION By: __________________________________________ Title: _________________________________________ By: __________________________________________ Title: _________________________________________ ELK RIVER CAPITAL, LLC, a Minnesota limited liability company By: __________________________________________ Nedal Abdul-Hajj Title: Chief Manager 104 EXHIBIT A to MARKET-BASED ELECTRIC SERVICE AGREEMENT BETWEEN ELK RIVER MUNICIPAL UTILITIES AND ELK RIVER CAPITAL, LLC Map Routes shown are subject to change at ERMU’s sole discretion. Phase One Primary Feed Phase Two Primary Feed 105 EXHIBIT B to MARKET-BASED ELECTRIC SERVICE AGREEMENT BETWEEN ELK RIVER MUNICIPAL UTILITIES AND ELK RIVER CAPITAL, LLC Delivery Points Red box indicates approximate area of: • Two 480-volt primary feeds from 1500 kVA transformers, and • Two 12,470-volt primary feeds from metering cabinets. • Final siting of transformers, metering cabinets, and required switchgear to be determined as Project layout progresses. 106 EXHIBIT C to MARKET-BASED ELECTRIC SERVICE AGREEMENT BETWEEN ELK RIVER MUNICIPAL UTILITIES AND ELK RIVER CAPITAL, LLC Estimate of Customer’s Portion of Infrastructure Costs Estimated Date Description of Work Estimated Amount Customer Share Customer Amount June 3, 2026 Feeders 75/85 Material Procurement $700,000 100% $700,000 West Bank 3 Transformer Procurement $1,800,000 100% $1,800,000 June 10, 2026 GRE Transmission Costs $__________ 75% $__________ September 1, 2026 Feeders 75/85 Installation $150,000 100% $150,000 West Bank 3 Engineering/Design $150,000 100% $150,000 Feeders WB3A/B Material Procurement $700,000 100% $700,000 WB3 Structures & Equipment Procurement $850,000 100% $850,000 April 1, 2027 Feeders WB3A/B Installation $200,000 100% $200,000 West Substation Bank 3 Expansion $1,200,000 75% $900,000 West Bank 3 Transformer Installation $250,000 100% $250,000 $__________ $__________ 107 ______________________________________________________________________________ Page 1 of 2 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Melissa Karpinski – Finance Manager MEETING DATE: May 12, 2026 AGENDA ITEM NUMBER: 5.3 SUBJECT: 2026 Annual Business Plan Amendment ACTION REQUESTED: Adopt Resolution No. 26-8 - Amending ERMU 2026 Budget BACKGROUND: At the December 18, 2025, special meeting, the Commission adopted the 2026 Annual Business Plan. Since that time, a proposed data center project has created opportunities to leverage economies of scales that necessitate adjustments to the capital project timelines. As a result, a formal amendment to the approved budget is required. Key updates are summarized below. DISCUSSION: Electric Budget The 2026 capital budget, as adopted in December included the West Bank 2 Transformer Replacement project scheduled for 2034 with an estimated cost of $1.25 million. In response to the cost saving opportunity presented by the proposed data center project, this transformer purchase should be accelerated to 2027. In addition, the total project cost has been updated from $1.25 million to $2.0 million. This increase is due to inflation and a revised project scope that includes dual-voltage capability. The updated funding plan includes an $800,000 allocation in 2026 for a down payment, with the remaining $1.2 million planned for 2027. Advancing the project timeline requires initiating a sealed bid process in 2026 and issuing a down payment within the same year. The amended portions of the 2026 Annual Business Plan, including the revised capital budgets, is submitted for approval. Adoption of these amended portions of the plan will supersede and replace those portions previously approved in the 2026 Annual Business Plan. FINANCIAL IMPACT: As outlined above, the proposed amendment includes an $800,000 increase to the 2026 Capital Budget to accommodate the down payment for the West Bank 2 Transformer Replacement project, with total project costs now estimated at $2.0 million. 108 ______________________________________________________________________________ Page 2 of 2 ATTACHMENTS: • Proposed Amendments to 2026 Annual Business Plan o 2026 Amended Summary of Budgets o 2026 Amended Electric Capital Budget o 2026 Amended Electric Capital 20-Year Projections • Resolution No. 26-8 - Amending ERMU 2026 Budget 109 ELK RIVER MUNICIPAL UTILITIES SUMMARY OF YEAR 2026 BUDGETS ELECTRIC BUDGET SUMMARY 2026 ELECTRIC REVENUE $50,684,426 ELECTRIC EXPENDITURES (47,108,326) ELECTRIC NET FOR CAPITAL 3,576,100 7.06%Margin 110% annual avg debt svc 0.00% #REF!#REF! DEPRECIATION 3,533,136 CAPITAL EQUIPMENT/CONSTRUCTION (8,829,452) DEBT RETIREMENT (1,035,000) TOTAL IMPACT TO CASH RESERVES (2,755,217) WATER BUDGET SUMMARY 2026 WATER REVENUE $4,310,428 WATER EXPENDITURES (4,164,879) WATER NET FOR CAPITAL 145,550 3.38%Margin 105% debt svc #REF!#REF! DEPRECIATION 1,415,000 CAPITAL EQUIPMENT/CONSTRUCTION (3,925,550) DEBT RETIREMENT (70,000) TOTAL IMPACT TO CASH RESERVES (2,435,000) 110 Elk River Municipal Utilities Business Plan/Budget 2026 Electric Department Capital Budget Capital Construction Projects Cost Description 1 125,000$ Cty Rd 44 Rebuild 2 300,000$ Rebuild: Ogden, 196th 3 250,000$ Rebuild: Zebulon and Xerxes 4 250,000$ Unidentified Projects 5 50,000$ Otsego Street Lights Subtotal 975,000$ *in order of priority Capital Construction Substations Cost Description 1,818,000$ East Substation Construction Reserves 150,000$ North Recloser Tank Replacement 1,280,120$ Otsego Transformer Replacement 28,000$ Otsego Recloser Controller Replacement 120,000$ Otsego Recloser Tank Replacement 20,000$ 14-4 Relay Panel Replacement 800,000$ West Bank 2 Transformer Replacement 50,000$ SCADA Network Upgrades Subtotal 4,266,120$ Capital Construction Feeders Cost Description 175,000$ Feeder 65 Rebuild OH from Landfill to North Sub 200,000$ East Sub Feeders #11, 13, 14 250,000$ Unidentified Feeders Subtotal 625,000$ Capital Construction System Cost Description 425,000$ Transformers and Meters 70,607$ AMI 350,000$ New Development Distribution Installation 50,000$ Street Lighting 75,000$ Ongoing OH Equip Replacement (Poles, Switches, Cut-Outs) 900,000$ Ongoing URD Equip Replacement (Switches, J-Boxes, Fuse Pads) 50,000$ Fault Indicators Replacements Subtotal 1,920,607$ Capital Equipment Needs Cost Description 65,000$ Replace Truck new foreperson 50,000$ Hot Arms 152,200$ Electric share of Administration 303,250$ Electric Share of Technical Services Subtotal 570,450$ Capital Facilities & Misc Needs Cost Description 472,275$ Territory Acquisition - Loss of Revenue Pmt (2015 Contract - Area 1&2, 3&4, 5&6, 7&8)Reserves Subtotal 472,275$ Total Capital 8,829,452$ Electric Noteworthy Non-Recurring Expenses Cost Description 3,500$ Computers, iPads, Software, Accessories 10,000$ Paint Transformers/Switchgear 10,000$ Paint Street Lights 10,000$ Tools 30,000$ Contractor Testing and Inspections 12,240$ Electric share of Administration 23,275$ Electric share of Technical Services Total 99,015$ 111 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 34 3536 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 A B C D E F G H I J K L M N O P Q R S T U V Description 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Projects OH to URD 208th, Wilson, 207th, single phase on Brook Rd $250,000 $100,000 Dayton Rebuild 2400V OH to 7200V URD $376,000 $306,000 $102,000 $80,000 $83,000 Cty Rd 32 single phase OH to three phase UG $300,000 198th Ave & Polk St OH to URD $100,000 $100,000 198th Ave & Gary St OH to URD $100,000 Otsego Street Lights $50,000 $50,000 Highway 169 redefine $25,000 3 Phase on Co Rd 1 from Co Rd 33 to 221st $300,000 Co Rd 39 O'dean to Nashua - OH to URD $200,000 Rebuild Parrish $200,000 Rebuild: Dayton River Road $200,000 $200,000 $200,000 Rebuild: Zebulon and Xerxes $250,000 Rebuild: 190th Ave, Waco Street $250,000 Rebuild: Ogden, 196th $300,000 Rebuild: 211th $100,000 Rebuild: 227th, 223rd $100,000 Rebuild: Dodge Elk Hills and 190th $125,000 Rebuild: 192nd Zane and Yale wire $125,000 Rebuild: Kennedy and Lincoln wire $125,000 Rebuild: Main and Gates OH to UR $250,000 $250,000 Rebuild: 5th St and Line Ave $100,000 Gravel Mine Development $250,000 $250,000 $250,000 $250,000 $250,000 Cty Rd 33 $200,000 $200,000 Waco Business Center Dr Recon $125,000 $125,000 Cty Rd 44 Rebuild $125,000 $125,000 Rebuild: Mississippi Rd/Orono Rd Unidentified Projects $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 Total Projects Budget $1,350,000 $975,000 $1,075,000 $1,000,000 $850,000 $876,000 $1,406,000 $802,000 $780,000 $583,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 Substations East Design Construction $1,250,000 $1,655,000 Recloser Controller $28,000 $28,000 Recloser Tank $120,000 $120,000 Contractor Testing and Inspection $15,000 North Transformer Replacement (Target Date 2053) Relay Panel Replacement $25,000 Recloser Controller Replacement $35,000 $6,000 $6,000 $6,000 Recloser Tank Replacement $150,000 $150,000 $45,000 $15,000 $15,000 Communication Equipment Replacement $10,000 Meter Replacement $7,500 Orrock (Future) Design $150,000 Construct $1,850,000 Otsego Transformer Replacement (Target Date 2023)$1,280,120 Relay Panel Replacement $25,000 Recloser Controller Replacement $28,000 Recloser Tank Replacement $120,000 $15,000 $45,000 Communication Equipment Replacement $10,000 Meter Replacement $7,500 Otsego East (Future) Design $150,000 Construct $1,850,000 Station 14-3 Transformer Replacement (Target Date 2037)$1,250,000 Relay Panel Replacement Recloser Controller Replacement $49,000 $30,000 Recloser Tank Replacement $150,000 $15,000 $15,000 Communication Equipment Replacement $10,000 Meter Replacement $7,500 Station 14-4 Transformer Replacement (Target Date 2046) Relay Panel Replacement $20,000 Recloser Controller Replacement $14,000 $6,000 $6,000 Recloser Tank Replacement $60,000 $30,000 Communication Equipment Replacement $10,000 ver Municipal Utilities Business Plan/B Electric Utility Capital Budget 2026-2045 112 1 2 3 4 A B C D E F G H I J K L M N O P Q R S T U V Description 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 ver Municipal Utilities Business Plan/B Electric Utility Capital Budget 2026-2045 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 109 110 111 112 113 114 115 116 117 118 119 120 121 123 124 125 126 127 128 129 131 132 133 134 135 137 138 139 140 141 142 143 144 145 146 148 Meter Replacement $7,500 Waco Bank #1 Transformer Replacement (Target Date 2047) Relay Panel Replacement $25,000 Recloser Controller Replacement $6,000 Recloser Tank Replacement $60,000 $30,000 Communication Equipment Replacement $10,000 Meter Replacement $7,500 Waco Bank #2 Transformer Replacement (Target Date 2057) Relay Panel Replacement $25,000 Recloser Controller Replacement $21,000 $18,000 Recloser Tank Replacement Communication Equipment Replacement $10,000 Meter Replacement $7,500 West Bank #1 Transformer Replacement (Target Date 2046) Relay Panel Replacement Recloser Controller Replacement $21,000 $14,000 $12,000 $6,000 Recloser Tank Replacement $30,000 $15,000 Communication Equipment Replacement $10,000 Meter Replacement $7,500 West Bank #2 Transformer Replacement (Target Date 2027)$800,000 $1,200,000 Relay Panel Replacement Recloser Controller Replacement $28,000 $28,000 $18,000 Recloser Tank Replacement $60,000 $60,000 $15,000 Communication Equipment Replacement $10,000 Meter Replacement $7,500 Cap and Reg Controllers SCADA Network Upgrades $50,000 $50,000 Substations voltage upgrade to 115kV $2,000,000 $2,000,000 $2,000,000 $2,000,000 Total Substations Budget $1,772,000 $4,266,120 $1,302,000 $354,000 $156,000 $1,862,000 $33,000 $138,000 $87,500 $21,000 $2,057,000 $2,085,000 $3,373,000 $2,000,000 $150,000 $1,850,000 $52,500 $0 $0 $0 $0 Feeders Feeder 22 OH Rebuild $150,000 $150,000 $150,000 Quaday to River Road NE $500,000 County Rd 35 Feeder to Waco $100,000 Highway 10 Feeder from 101 to Jarvis $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 Rebuild Feeder 46 Substation to Hwy 10 $250,000 Gravel Mine Feeders $250,000 $250,000 $250,000 $250,000 $250,000 Feeder 71/72 Replace 500 MCM fr $25,000 Feeder 65 Rebuild OH from Landfi $150,000 $175,000 East Sub Feeders #11, 13, 14 $200,000 Unidentified Feeders $750,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 Total Feeders Budget $925,000 $625,000 $350,000 $650,000 $900,000 $650,000 $650,000 $650,000 $650,000 $650,000 $400,000 $400,000 $400,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 Miscellaneous Territory Acquisition - Loss of Revenue Pmt (1991 Contract) County Rd 12 Interconnection Agreement - Connexus Territory Acquisition - Loss of Reve $935,000 $472,275 $316,884 $198,046 $100,816 $100,816 Total Miscellaneous Budget $935,000 $472,275 $316,884 $198,046 $100,816 $100,816 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Facilities Vactron clean out west sub West sub storage asphalt Total Facilities Budget $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 System Transformers and Meters $375,000 $425,000 $425,000 $425,000 $425,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 AMI $1,425,000 $70,607 New Development Distribution Ins $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 Street Lighting $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 Ongoing OH Equip Replacement (P $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 Ongoing URD Equip Replacement ( $150,000 $900,000 $900,000 $650,000 $650,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 Fault Indicators Replacements $75,000 $50,000 Total System Budget $2,500,000 $1,920,607 $1,800,000 $1,550,000 $1,550,000 $875,000 $875,000 $875,000 $875,000 $875,000 $875,000 $875,000 $875,000 $875,000 $875,000 $875,000 $875,000 $875,000 $875,000 $875,000 $875,000 113 1 2 3 4 A B C D E F G H I J K L M N O P Q R S T U V Description 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 ver Municipal Utilities Business Plan/B Electric Utility Capital Budget 2026-2045 149150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 170 171 172 173 174 175176 177 178 179 180181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 213 Inventory/Equipment Digger Truck $335,000 $500,000 Bucket Truck $300,000 $302,500 $332,750 Dump Truck/Flatbed Truck $75,000 $50,000 $85,000 Vactron $145,000 $145,000 Excavator $45,000 $45,000 $45,000 $45,000 Brush Chipper $30,000 Cable Plow $200,000 $250,000 Bore Rig $400,000 John Deere Tractor Diesel Tank Trailer $55,000 $40,000 $20,000 $20,000 $17,000 $30,000 $20,000 $15,000 $30,000 $20,000 $20,000 Shared Equipment $12,800 $21,600 $48,000 $65,000 $16,000 Pickup Trucks $65,000 $65,000 $195,000 $65,000 $65,000 $65,000 $65,000 $195,000 $66,000 $66,000 $66,000 Chipper Box $55,000 Dump Trailer Hot Arms $50,000 Ez Spot Tools at Field Services Building Total Inventory/Equipment Budge $892,800 $115,000 $685,000 $537,500 $595,000 $574,350 $105,000 $120,000 $130,000 $130,000 $420,000 $20,000 $255,000 $30,000 $20,000 $36,000 $0 $0 $66,000 $66,000 $66,000 Total $8,374,800 $8,374,002 $5,678,884 $4,439,546 $4,301,816 $4,938,166 $3,069,000 $2,585,000 $2,522,500 $2,259,000 $4,002,000 $3,630,000 $5,153,000 $3,405,000 $1,545,000 $3,261,000 $1,427,500 $1,375,000 $1,441,000 $1,441,000 $1,441,000 Reserves $3,333,000 $2,290,275 $2,000,000 $1,250,000 $1,850,000 Bonding Grants Inter-Fund Borrowing $1,425,000 $1,400,000 Total Less Additional Funding $3,616,800 $4,683,727 $5,678,884 $4,439,546 $4,301,816 $4,938,166 $3,069,000 $2,585,000 $2,522,500 $2,259,000 $2,002,000 $3,630,000 $3,903,000 $3,405,000 $1,545,000 $1,411,000 $1,427,500 $1,375,000 $1,441,000 $1,441,000 $1,441,000 Difference from Previous Year $337,300 $1,066,927 $995,157 ($1,239,338)($137,730)$636,350 ($1,869,166)($484,000)($62,500)($263,500)($257,000)$1,628,000 $273,000 ($498,000)($1,860,000)($134,000)$16,500 ($52,500)$66,000 0 0 Non-Capital Expenses - Noteworthy Computers/iPads $10,500 $3,500 $10,500 $5,500 $1,300 $5,500 $14,000 $3,500 $10,500 $5,500 $1,300 $5,500 $14,000 $3,500 $10,500 $5,500 $1,300 $5,500 $14,000 $3,500 $10,500 Paint Trailer Paint Truck Paint Transformers/Switchgear $15,000 $10,000 Paint Street Lights $10,000 Tools $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Highway 10 (Future) Contractor Testing and Inspections (Expense)$15,000 $15,000 North Contractor Testing and Inspections (Expense)$15,000 $15,000 Otsego Transformer Arrestor Replacement (Expense) Contractor Testing and Inspections (Expense)$15,000 Otsego East (Future) Contractor Testing and Inspections (Expense)$15,000 Station 14-3 Transformer Arrestor Replacement (Expense) Contractor Testing and Inspections (Expense)$15,000 $15,000 Station 14-4 Contractor Testing and Inspections (Expense)$15,000 $15,000 $15,000 $15,000 $15,000 Waco Bank #1 Contractor Testing and Inspections (Expense)$15,000 $15,000 Waco Bank #2 Contractor Testing and Inspections (Expense)$15,000 $15,000 West Bank #1 Contractor Testing and Inspections (Expense)$15,000 West Bank #2 Transformer Arrestor Replacement and Current Transformers (Expense) Contractor Testing and Inspections $15,000 $15,000 $15,000 Total Non-Capital Expenses - Not 50,500$ 63,500$ 35,500$ 30,500$ 11,300$ 30,500$ 39,000$ 28,500$ 35,500$ 30,500$ 26,300$ 30,500$ 39,000$ 28,500$ 35,500$ 30,500$ 26,300$ 30,500$ 39,000$ 28,500$ 35,500$ 114 RESOLUTION NO. 26-8 BOARD OF COMMISSIONERS ELK RIVER MUNICIPAL UTILITIES A RESOLUTION AMENDING THE ELK RIVER MUNICIPAL UTILITIES 2026 BUDGET WHEREAS, the Elk River Municipal Utilities Commission adopted the 2026 budget, as contained in the 2026 Annual Business Plan, on December 18, 2025; and WHEREAS, the Commission has received information from staff on a potential project necessitating adjustments to the capital project timelines, in particular moving the West Bank 2 transformer purchase from 2034 to 2027; and WHEREAS, the Commission views the project as an opportunity to leverage economies of scale that should be pursued; NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE BOARD OF COMMISSIONERS OF ELK RIVER MUNICIPAL UTILITIES, BASED UPON THE FOREGOING RECITALS INCORPORATED HEREIN, AS FOLLOWS: 1. The Elk River Municipal Utilities 2026 budget is hereby amended as presented. This Resolution Passed and Adopted this 12th day of May, 2026. John J. Dietz, Chair Mark Hanson, General Manager 115 ______________________________________________________________________________ Page 1 of 1 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Mark Hanson – General Manager MEETING DATE: May 12, 2026 AGENDA ITEM NUMBER: 6.1a SUBJECT: Staff Update ACTION REQUESTED: None DISCUSSION: • On April 17, I attended the funeral for Roger Warehime, Owatonna Public Utilities’ (OPU) general manager. Numerous other municipal utility representatives attended as well. Roger passed away on April 10, 2026, from a heart attack. • I attended Minnesota Municipal Utilities Association’s (MMUA) May 5 board meeting. In addition to approving the 2025 audit, the board approved the creation of the Roger Warehime Leadership Award. The award recognizes a municipal utility leader who reflects the leadership, service, and character demonstrated by Roger Warehime. In addition to serving as OPU’s general manager, Roger was MMUA’s Board secretary/treasurer and chaired MMUA’s Legislative Committee. He was highly regarded amongst peers and friends. • The Minnesota Municipal Power Agency (MMPA) Board of Directors met on April 28 at Faribault Energy Park in Faribault, Minnesota, and via videoconference. Commissioner Stewart and I attended. The public summary is below: o The Board reviewed the Agency’s financial and operating performance for March 2026. o Participation in the residential Clean Energy Choice program increased by 24 customers. Customer penetration for the program is at 6.8% of residential customers. o The MN Public Utilities Commission approved MMPA’s Integrated Resource Plan for planning years 2025 – 2039. o The Board discussed the status of electric generation and renewable natural gas projects the Agency is pursuing. o The Sherburne County Board denied the land use permit for the Elk River Solar Project on April 7, 2026, by a 5–0 vote. Following this decision, the MMPA Board considered its options and determined that it will not pursue an appeal of the county’s action and will discontinue the project. 116 ______________________________________________________________________________ Page 1 of 1 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Sara Youngs – Administrations Director MEETING DATE: May 12, 2026 AGENDA ITEM NUMBER: 6.1b SUBJECT: Staff Update ACTION REQUESTED: None DISCUSSION: • Office walk-in traffic for April consisted of 195 customers, averaging 39 customers per week over the five-week period. • ERMU disconnections for April. The Cold Weather Rule was in effect, preventing customer disconnections until 30 days after a disconnection notice is issued. o Cycle 4 – 6 disconnections o Cycle 1 – 10 disconnections o Cycle 2 – 4 disconnections o Cycle 3 – 8 disconnections o Cycle 4 – 6 disconnections • The Cold Weather Rule ended on April 30, 2026. Customers will receive one past due reminder and an automated phone call that they are subject to disconnection for nonpayment. Once a customer is disconnected, they must pay their full past due balance for services to be restored. • During the month of April 2026, the customer service team entered into 46 payment arrangements with customers. During April 2025 there were 72 payment arrangements. • Currently there is one active residential solar photovoltaic project planned or under construction in the ERMU service territory. • In late April, 18 staff members from the office and field participated in a three-day Business Process Consultation (BPC) with National Information Solutions Cooperative to evaluate our Work Management system, identify efficiencies, and align processes across departments. Thank you to all staff for their time and active involvement, which helped generate actionable next steps to improve consistency and better utilize existing tools. • Interviews have begun for the IT/OT Specialist position. We received 30 applications, with eight candidates meeting the qualifications for first-round interviews. 117 ______________________________________________________________________________ Page 1 of 1 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Melissa Karpinski – Finance Manager MEETING DATE: May 12, 2026 AGENDA ITEM NUMBER: 6.1c SUBJECT: Staff Update ACTION REQUESTED: None DISCUSSION: • The 2025 Utilities Performance Metrics Incentive Compensation was processed and distributed to employees on April 17 via direct deposit. • Annual surveys and required regulatory reports continue to be completed. • 2025 Minnesota Revenue ST-11 has been submitted. • Property & Casualty Insurance renewal application has been sent to the underwriter for the 2026-2027 year. 118 ______________________________________________________________________________ Page 1 of 1 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Tony Mauren – Governance & Communications Manager MEETING DATE: May 12, 2026 AGENDA ITEM NUMBER: 6.1d SUBJECT: Staff Update ACTION REQUESTED: None DISCUSSION: • In May, all residential and commercial electric customers will receive their respective Who Owns What? flyer which lays out the ownership and the party responsible with regard to utility infrastructure. • In addition to the bill insert topic, May social media will cover the National Electrical Safety Month, Drinking Water Week (May 3-9), Recognition of ERMU Water Department Staff, the Excellence in Reliability Award, and a commission meeting reminder. • Communications & Administrative Coordinator attended the Government Social Media Conference (GSMCON) in New Orleans, LA, from May 4–7. Session topics included photography and videography, design software, crisis communications, data tracking, AI, and more. • The U.S. Department of Justice has extended the ADA Title II – government website accessibility compliance deadline by one year. For municipalities with populations below 50,000, this means they will have until April 26, 2028, to bring their site into compliance with Website Content Accessibility Guidelines 2.1 Level AA standards. Staff has made considerable progress in selecting a solution for this matter and will review options during budgeting. As a reminder, staff is currently focusing on solutions that address the compliance of forms and pdfs linked on the site, as the content within the site has been supported by an accessibility widget and monthly audits since 2020. ATTACHMENTS: • Bill Insert – Residential - Who Owns What? • Bill Insert – Commercial - Who Owns What? 119 ERMUMN.COM | 763.441.2020 | 13069 ORONO PARKWAY | PO BOX 430 | ELK RIVER, MN 55330-0430 Power pole Service line Transformer Power distribution lines Padmounted transformer Electric service line Service pointWeatherhead Service mast Service panel Water meter (Located inside home) Meter socket Meter Water main Water service line Corporation valve Service mast guy ELECTRICAL UTILITY OWNED ELECTRICAL CUSTOMER OWNED WATER UTILITY OWNED WATER CUSTOMER OWNED Curb stop valve Utility-Owned Equipment VS Residential Customer-Owned Equipment The illustration below helps explain equipment ownership and responsibility regarding maintenance and repairs. The utility is responsible for utility-owned electric equipment (green) and water equipment (blue), while customers are responsible for customer-owned electric equipment (yellow) and water equipment (orange). Customer-owned equipment should be repaired by a licensed tradesperson. This illustration depicts residential service for overhead electric, underground electric, and water utilities. Please be aware of the type of service you receive in your home. Customers should contact us with specific questions. RESIDENTIAL WHO OWNS WHAT? 120 ERMUMN.COM | 763.441.2020 | 13069 ORONO PARKWAY | PO BOX 430 | ELK RIVER, MN 55330-0430 Power pole Service line Transformer Power distribution lines Padmounted transformer Electric service line Service pointWeatherhead Service mast Service panel Water meter (Located inside business) Meter socket Meter Water main Water service line Corporation valve Service mast guy ELECTRICAL UTILITY OWNED ELECTRICAL CUSTOMER OWNED WATER UTILITY OWNED WATER CUSTOMER OWNED Service line isolation valve Utility-Owned Equipment VS Commercial Customer-Owned Equipment The illustration below helps explain equipment ownership and responsibility regarding maintenance and repairs. The utility is responsible for utility-owned electric equipment (green) and water equipment (blue), while customers are responsible for customer-owned electric equipment (yellow) and water equipment (orange). Customer-owned equipment should be repaired by a licensed tradesperson. This illustration depicts commercial service for overhead electric, underground electric, and water main utilities. Please be aware of the type of service you receive in your business. Some businesses also have private fire hydrants and private fire protection service lines which are customer owned. Customers should contact us with specific questions. COMMERCIAL WHO OWNS WHAT? 121 ______________________________________________________________________________ Page 1 of 2 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Thomas Geiser – Operations Director MEETING DATE: May 12, 2026 AGENDA ITEM NUMBER: 6.1e SUBJECT: Staff Update ACTION REQUESTED: None DISCUSSION: • Working through the second round review of maps for the new GIS mapping system that we plan to move forward with in the future. I have gone through all 115 maps. • ERMU has received seven reclosers so far but is still waiting for 23 out of 30 units to be repaired. A plan has been set to repair the rest, the vendor currently has 13 in for repair. • ERMU has started the Cooper switchgear replacement plan. We have replaced two so far and plan to do approximately 15 per year for the next 3-4 years. • Our new Bucket Truck #5 went back to Altec in Shakopee for some corrections. • I am helping to gather info for GIS Mapping. • I attended the Minnesota Municipal Utilities Association’s Job Training & Safety Meeting in Marshall, MN, April 22-23. The focus was planning the overhead school in September. • I attended the Advisory Board Meeting at the Minnesota State Community/Technical College in Wadena, MN. This is an opportunity to bring input from the field to instructors as we share what is happening in the industry and what skills new lineworkers will need to possess. • Staff and I attended the National Information Solutions Cooperative training at the field services building April 28-30. 122 ______________________________________________________________________________ Page 2 of 2 123 ______________________________________________________________________________ Page 1 of 1 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Chris Sumstad – Electric Superintendent MEETING DATE: May 12, 2026 AGENDA ITEM NUMBER: 6.1f SUBJECT: Staff Update ACTION REQUESTED: None DISCUSSION: • Installed 18 new residential services, which involves the connection of a secondary line once the customer requests service. • Crews finished up rework at the downtown Elk River parking lot recently. We removed a few electric boxes to make room for more parking stalls and placed new primary wire to loop the remaining transformer. • Crews have been working along County Road 44 recently, adjusting our pole line to fit the rebuild project. • Over the past month a line crew has been supporting the substation apparatus technician at the new East substation. This has been a growth opportunity for line crews as they are called to perform tasks they don’t do on a regular basis. • Other work in the substations this past month included a recloser/controller replacement at Station 14 for Feeder 94 and a jumper replacement at Waco Bank 1. • The bore crew will be starting work at East substation soon placing underground feeders that connect to existing lines. • New housing developments will be a big part of the 2026 construction season. We are currently terminating the underground that was placed this winter in the Bradford Park 2nd addition, there is a 3rd phase in Bradford, as well as the 1st phase of Oakwater Ridge and Meadowsweet Bend. • The inventory & procurement staff along with a few other staff from electric and water departments held a backup power exercise for the field services building campus on April 8. This is done annually and involves bringing one of the water departments mobile generators over from a well to power the building to ensure preparation for an emergency. 124 ______________________________________________________________________________ Page 1 of 1 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Mike Tietz – Technical Services Superintendent MEETING DATE: May 12, 2026 AGENDA ITEM NUMBER: 6.1g SUBJECT: Staff Update ACTION REQUESTED: None DISCUSSION: • In April, the locators processed 826 locate tickets. These consisted of 735 normal tickets, 0 emergency tickets, 41 updated tickets, 16 meetings, 4 boundary surveys, 5 planning and 25 cancellations. This was a 239.9% increase over last month and a 66.9% increase over April last year and was driven by Gateway Fiber construction across our service territory. Metronet Fiber has also begun installing facilities around Elk River, which could strain our two locators to keep up with completing tickets on time. Damage prevention activities are paramount to reliability and safety for all excavations and are critical to protecting our infrastructure, our staff, contractors, and the public. • In April, the electrical technicians completed 56 service order tasks, updated the power bill, addressed customer meter issues and any off-peak concerns. • The electrical technicians have continued to replace three-phase meters and test current transformers at all our commercial accounts. Staff must test, program and verify the programming of each of these meters as we work through the exchange process for all the commercial meters. The Advanced Metering Infrastructure project remains at an overall completion rate of 99%. • Staff has completed the installation of the steel structures and bus work at our East substation. GRE has completed installation of the transmission structures and conductor to the substation. The fiber communications network has been completed, and staff is working on installing the network switches inside the control building to provide SCADA communications. The transformer ship date from WEG remains scheduled for August 25, 2026, which is 25 days behind schedule. This date is subject to change. I am still waiting for clarification on the change order requested by the circuit breaker manufacturer, which was submitted to account for US tariffs that were put in place in February. We are still on schedule for commissioning of the substation about September 15. • Our monthly peak was 45.34 MW on April 22, at 6:54pm. 125 ______________________________________________________________________________ Page 1 of 1 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Dave Ninow – Water Superintendent MEETING DATE: May 12, 2026 AGENDA ITEM NUMBER: 6.1h SUBJECT: Staff Update ACTION REQUESTED: None DISCUSSION: • Delivered a water meter, installed a Smart Point module, and took curb stop ties for eight new water services • Completed 20 BACTI/Total Chlorine Residual Samples o All confirmed negative for coliform bacteria o Bacteriological/Disinfectant Residual Monthly Report submitted to the Minnesota Department of Health (MDH) • Completed 22 routine fluoride samples o All samples met the MDH standards o Submitted the MDH Fluoride Report • Submitted Discharge Monitoring Report (DMR) for the Water Treatment Plants to the Minnesota Pollution Control Agency (MPCA). • Submitted DMR for the Diesel Generation Plant to the MPCA. • The water department continues flushing fire hydrants through the end of May. The schedule for flushing and a map with the timeline shown in zones has been added to our website blog section and social media. • Contractors working on the Oakwater Ridge development made connection to existing water main at Gateway Road and 165th Avenue and are installing new water main along 165th Avenue crossing Highway 10 and into the new development. • Water department staff are working with city staff to coordinate replacement of existing water main and a fire hydrant while preserving existing water services in the downtown Elk River parking lot that is going to be redeveloped this spring/summer. • As part of our backflow prevention program our Water Utility Worker Bill has begun annual testing of backflow prevention devices for residential customers. ATTACHMENTS: • April 2026 Pumping by Well 126 Values Are Displayed in Millions of Gallons (Well #, Gallons Pumped, Percentage of Pumping) Well #2, 5.449, 11% Well #3, 7.964, 16% Well #4, 11.519, 23% Well #5, 5.299, 11% Well #6, 5.131, 10% Well #7, 4.679, 9% Well #8, 4.823, 10% Well #9, 5.106, 10% April 2026 Monthly Pumping By Well 127 Tuesday, January 13: •Annual Review of Committee Charters Tuesday, February 10: •Review Strategic Plan and 2025 Annual Business Plan Results Tuesday, March 10: •Oath of Office •Election of Officers •Annual Commissioner Orientation and Review Governance Responsibilities and Role Tuesday, April 14: •Audit of 2025 Financial Report •Financial Reserves Allocations •Review 2025 Performance Metrics Tuesday, May 12: •Annual General Manager Performance Evaluation and Goal Setting Tuesday, June 6: •Annual Commission Performance Evaluation Tuesday, July 14: Tuesday, August 11: •Annual Business Plan – Review Proposed 2027 Travel, Training, Dues, Subscriptions, and Fees Budget Tuesday, September 8: •Annual Business Plan – Review Proposed 2027 Capital Projects Budget Tuesday, October 13: •Annual Business Plan – Review Proposed 2027 Expenses Budget •Review and Update Strategic Plan Wednesday, November 10: •Annual Business Plan - Review Proposed 2027 Rates and Other Revenue •Adopt 2027 Fee Schedule •2027 Stakeholder Communication Plan Tuesday, December 8: •Adopt 2027 Official Depository and Delegate Authority for Electronic Funds Transfers •Designate Official 2027 Newspaper •Approve 2027 Regular Meeting Schedule •Adopt 2027 Governance Agenda •Adopt 2027 Annual Business Plan 2026 GOVERNANCE AGENDA 128