ERMUSR 09-09-2025 - Laserfiche WebLink

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4. Water Department Capital 20-Year Projections — Highlights anticipated large non- recurring capital construction projects, recurring capital construction projects, and asset preservation projects through 2045. 5. Technical Services and Administrative 2026 Capital Budgets — Includes capital projects and capital equipment purchases. Notable items for 2026 include a fiber extension to East substation, and security upgrades. 6. Administration and Technical Services Departments Capital 20-Year Projections — Highlights anticipated large non -recurring capital construction projects, recurring capital construction projects, and asset preservation projects through 2045. The utilities utilize a vehicle replacement evaluation system implemented with the city. Additional information on vehicle evaluations is available upon request. FINANCIAL IMPACT: The 2026 Electric Department Capital Budget has increased compared to the prior year. The main driver of the increase is the construction of the new East substation and the completion of Otsego transformer replacement projects in 2026. As in years past, we will use reserves to pay for the territory expansion costs. We will also plan on using reserves to pay for the East substation construction, Otsego transformer replacement, any unidentified feeder work, and replacement of underground equipment. We also plan to do an inter -fund loan from the Water department to partially fund the electric portion of the capital projects. The 2026 Water Department Capital Budget has increased compared to the prior year. We plan to bond for the new water treatment plant and then plan on using reserves to pay for the remaining capital needs in 2026. In 2022, both the Electric Department and Water Department started a multi -year project implementing AMI. The AMI project should be completed for both departments in 2026. The Administration and Technical Services Departments' Capital Budgets have increased compared to the prior year. These projects are allocated to the Electric and Water Departments and are shown as separate lines on their capital budgets. ATTACHMENTS: • 2026 Electric Department Capital Budget • 2026 Electric Department Capital 20-Year Projections • 2026 Water Department Capital Budget • 2026 Water Department Capital 20-Year Projections • 2026 Administration and Technical Services Departments Capital Budgets • 2026 Administration and Technical Services Departments Capital 20-Year Projections Page 2 of 2 67