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HomeMy WebLinkAbout05.18.26 CITY OF ST. JOSEPH www.cityofstjoseph.com “A safe and welcoming community valuing open communication and civic trust while maintaining the enduring spirit of small-town life.” 75 Callaway Street East | Saint Joseph, Minnesota 56374 Email: cityoffices@cityofstjoseph.com | Phone: 320.363.7201 | Fax 320.363.0342 St. Joseph City Council May 18, 2026 6:00 PM Join Zoom Meeting https://us06web.zoom.us/j/85934223635?pwd=RMIMCTMUqxytpabmBOo1mPCNn1zvdh.1 Meeting ID: 859 3422 3635 Passcode: 638989 1. 6:00 PM Call to order - Pledge of Allegiance 2. Public Comments Up to 3 speakers will be allowed for up to 3 minutes each to address the council with questions/concerns/comments (regarding an item NOT on the agenda). No Council response or action will be given/taken other than possible referral to Administration. 3. Approve Agenda 4. Consent Agenda a. Minutes – Requested Action: Approve the minutes of May 4, 2026. b. Bills Payable c. Donations – Requested Action: Approve Resolution 2026-028 accepting donations. d. Financial Reports e. Street Event Request, Rock 4 Alzheimer’s – Requested Action: Approve Special Event f. Planning Commission Appointment - Requested Action: Approve the appointment of Craig Hern to the Planning Commission. 5. Public Hearing – Special Event Request for Rocktoberfest 6. Special Event Request – White Peony 7. 2025 Audit Presentation 8. Department Reports 9. Mayor and Council Reports/Updates 10. Adjourn May 4, 2026 Page 1 of 1 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Monday, May 4, 2026, at 6:00PM in the St. Joseph Government Center. Members Present: Mayor Adam Scepaniak, Councilmembers Andrew Mooney, Kelly Beniek, Adam Schnettler, Kevin Kluesner City Representatives Present: City Administrator David Murphy, Finance Director Lori Bartlett, Police Chief Dwight Pfannenstein, City Engineer Randy Sabart, Community Development Director Nate Keller, City Clerk Kayla Klein Public Comments: None Approve Agenda: Beniek moved to approve the agenda; seconded by Mooney and passed unanimously. Consent Agenda: Scepaniak moved to approve the consent agenda; seconded by Beniek and passed unanimously. a. Minutes – Requested Action: Approve the minutes of April 20, 2026. b. Bills Payable – Requested Action: Approve Check Numbers 63590-63612, Payroll & Account Payable EFT #4041-4061; ACH Accounts Payable #2401089-#2401111; Regular Pay Period 9. c. Street Closure Request, St. Joseph Lions Parade – Requested Action: Approve the street closure request for the St. Joseph Lions on July 4, 2026, as presented. d. First Quarter Financial Reports – Requested Action: Approve the 2026 first quarter financial reports as presented. e. Police Department Office Remodel – Requested Action: Approve the quote from Winter Construction to install windows in Police Department Office Space. f. Appointment of Recreation Coordinator – Requested Action: Approve hire of Abigayle Peters as the Recreation Coordinator at Grade 4, Step 6 of the City’s Wage Scale effective May 5, 2026. Set 2026 Visioning/Strategic Planning Session: Murphy updated the Council that the visioning/strategic planning session will be on June 17th at St. Bens. Extended Bid Date for the 2026 Street & Utility Improvements: Murphy reported that the bid opening was planned for May 5th; however, it will now be pushed to May 21st in order to allow for the benefit analysis report to come in. Kluesner expressed frustration with the timeline of the project and that the bidding of the project is being completed earlier. Sabart responded that the city will need to look at revamping the city’s entire 429 process, potentially accelerating it by six months in order to bid the project earlier in the year. Scepaniak moved to approve Resolution 2026-027 Extending Bid Date for 2026 Street & Utility Improvements; seconded by Beniek and passed unanimously. Department Reports: Keller reported that Joetown Apartments Phase 2 has begun moving dirt and it will be 40 units and will be the final phase of that project. Wensmann reported that hydrant flushing will take place May 11-13th and May 18-20th. Pfannenstein informed the council that one of the department’s squad cars was totaled in an accident. Murphy welcomed the new Recreation Coordinator Abigayle Peters to the team. Mayor and Council Reports/Updates: Kluesner reported that the Arbor Task Force was out at Millstream and Centennial park marking ash trees. The ATF will be holding a public seminar on June 3rd at city hall for residents to learn more about Emerald Ash Borer. Adjourn: Kluesner made a motion to adjourn the meeting at 6:13 PM; seconded by Schnettler and passed unanimously. Kayla Klein City Clerk STAFF MEMO Prepared by: Debbie Kulzer, Finance Tech Meeting Date: 5/18/26 ☒Consent Agenda Item ☐Regular Agenda Item Agenda Item # Reviewed by: Item: Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐Public Safety Facility/Safe Crossing of CSAH 75 ☐ N/A ACTION REQUESTED Approve the bills payable as presented. BOARD/COMMISSION/COMMITTEE RECOMMENDATION None PREVIOUS COUNCIL ACTION See below REFERENCE AND BACKGROUND The council approved staff to make the following payments through the payroll contracts, regular monthly invoices with due dates prior to the next scheduled council meeting, or actions taken at previous council meetings. The information here is to provide you with all checks and electronic payments made for verification of the disbursement completeness. BUDGET IMPACT Bills Payable – Checks Mailed Prior to Council Approval Regular Payroll 10 $74,915.22 Payroll & Accounts Payable EFT #4062 - #4075 $154,932.09 ACH Accounts Payable #2401112 - #2401134 $33,111.27 Check Numbers #63613 - #63627 $109,026.05 Total $371,984.63 Bills Payable – Checks Awaiting Council Approval Check Numbers - #63628 - #63633 $6,629.22 Total $6,629.22 Total Budget/Fiscal Impact: $378,613.85 Various Funds STAFF RECOMMENDED ACTION Approve the bills payable as presented. SUPPORTING DATA/ATTACHMENTS Bill listing by EFT, paid prior to council approval and awaiting to be paid upon council approval. 4b Bills payable GL Check Check Vendor Invoice Invoice Check Period Issue Date Number Number Payee Number GL Account Amount 26-May 5/13/2026 ACH PAYROLL REG PP 10 VARIOUS 74,915.22$ 74,915.22$ 26-May 5/1/2026 4062 106468 AMERICAN FUNDS PR0424261 101-21705 200.00$ 26-May 5/1/2026 4063 1224 EFTPS PR0424261 101-21701 24,383.23$ 26-May 5/1/2026 4064 897 MN DEPARTMENT OF REVENUE PR0424261 101-21702 5,418.75$ 26-May 5/1/2026 4065 63 PERA PR0424261 101-21704 22,713.23$ 26-May 5/1/2026 4066 106189 VOYA FINANCIAL PR0424261 101-21705 2,900.00$ 26-Apr 4/30/2026 4067 108126 WEX 0002350543-IN 101-41430-300 24.75$ 26-Apr 4/30/2026 4068 108294 MAGNIFI DEBIT CARD APRIL 2026 -DEBIT 101-45202-230 165.59$ 26-May 5/12/2026 4069 106514 DELTA DENTAL CNS0002137207 101-21709 2,829.21$ 26-May 5/12/2026 4070 107068 MEDICA MAY 26 STMT 101-21706 51,193.14$ 26-May 5/12/2026 4071 1349 NCPERS GROUP LIFE INSURANCE 73500052026 101-21711 73.00$ 26-May 5/12/2026 4072 106189 VOYA FINANCIAL PR0410261 101-21715 32,362.43$ 26-May 5/12/2026 4073 108269 FORTE PAYMENTS INC 0015563800, 00155640152 101-41430-300 294.92$ 154,932.09$ 26-May 5/12/2026 4074 106563 PAYMENT SERVICE NETWORK 324928, 324946 101-41530-300 407.80$ 26-May 5/12/2026 4075 100136 XCEL ENERGY 976039037 652-43160-386 11,966.04$ 26-Apr 4/30/2026 2401112 108310 ACME TOOLS 16100242 602-49450-210 29.25$ 26-Apr 4/30/2026 2401112 108310 ACME TOOLS 16132352 602-49450-210 (71.50)$ 26-Apr 4/30/2026 2401112 108310 ACME TOOLS 16177218 601-49440-210 141.12$ 26-Apr 4/30/2026 2401113 102871 C & L EXCAVATING INC 20261047 101-45202-220 825.00$ 26-Apr 4/30/2026 2401114 108444 CASELLE LLC INV-18443 109-41430-582 1,200.00$ 26-Apr 4/30/2026 2401114 108444 CASELLE LLC INV-18444 101-41530-310 200.00$ 26-Apr 4/30/2026 2401115 107807 CENTRAL MOTORCAR SPECIALTIES 21896 101-45202-230 2,808.30$ 26-Apr 4/30/2026 2401116 102901 CORE & MAIN LP V000032452 601-49430-220 75.81$ 26-Apr 4/30/2026 2401116 102901 CORE & MAIN LP V000032698 601-49430-220 1,472.46$ 26-Apr 4/30/2026 2401116 102901 CORE & MAIN LP V000033194 601-49430-220 353.32$ 26-Apr 4/30/2026 2401116 102901 CORE & MAIN LP V000033213 101-45202-210 444.34$ 26-Apr 4/30/2026 2401117 106455 EVOQUA WATER TECHNOLOGIES LLC 907542462 602-49480-210 13,971.49$ 26-Apr 4/30/2026 2401118 108394 FACTORY MOTOR PARTS 1-11630280 101-42152-230 75.00$ 26-Apr 4/30/2026 2401118 108394 FACTORY MOTOR PARTS 124-309042 101-42152-230 34.61$ 26-Apr 4/30/2026 2401118 108394 FACTORY MOTOR PARTS 124-309288 101-43120-230 20.94$ 26-Apr 4/30/2026 2401118 108394 FACTORY MOTOR PARTS 124-309575 101-42152-230 22.81$ 26-Apr 4/30/2026 2401118 108394 FACTORY MOTOR PARTS 124-309664 101-42152-230 138.80$ 26-Apr 4/30/2026 2401119 342 FASTENAL COMPANY MNST1230027 101-43201-210 139.77$ 26-Apr 4/30/2026 2401119 342 FASTENAL COMPANY MNST1230407 101-43201-210 20.00$ 26-Apr 4/30/2026 2401119 342 FASTENAL COMPANY MNST1230507 101-43201-210 281.42$ 26-Apr 4/30/2026 2401120 266 FLEXIBLE PIPE TOOL COMPANY INC 32652 602-49450-230 163.50$ 26-Apr 4/30/2026 2401121 529 GOODIN COMPANY 5540969-00 101-45202-220 13.63$ 26-Apr 4/30/2026 2401122 108441 INTERSTATE ALL BATTERY CENTER 1.9223E+12 601-49440-230 209.95$ 26-Apr 4/30/2026 2401123 146 MIDWAY IRON AND METAL INC 631984 101-43201-210 167.56$ 26-Apr 4/30/2026 2401124 1616 MVTL LABORATORIES INC 1353914 602-49480-312 213.50$ 33,111.27$ 26-Apr 4/30/2026 2401125 105529 NELSON SANITATION & RENTAL INC INV/2026/3929 101-45202-300 127.14$ 26-Apr 4/30/2026 2401125 105529 NELSON SANITATION & RENTAL INC INV/2026/3930 101-45202-300 82.14$ 26-Apr 4/30/2026 2401126 106764 O REILLY AUTO PARTS 5771-413674 101-42152-230 16.13$ 26-Apr 4/30/2026 2401126 106764 O REILLY AUTO PARTS 5771-413675 101-45202-230 10.58$ 26-Apr 4/30/2026 2401126 106764 O REILLY AUTO PARTS 5771-414177 101-45202-230 43.59$ 26-Apr 4/30/2026 2401127 106444 OPG-3 INC 9606 651-49490-310 3,420.00$ 26-Apr 4/30/2026 2401128 104478 POISSANT, ERIC 2026 BOOTS 602-49450-171 79.99$ 26-Apr 4/30/2026 2401129 134 SECURITY LOCK TECHNOLOGIES INV-001092 101-43201-210 947.00$ 26-Apr 4/30/2026 2401130 108505 SITEONE LANDSCAPE SUPPLY LLC 165020160-001 101-45125-580 2,718.94$ 26-Apr 4/30/2026 2401131 109 TENVOORDE FORD INC.5202158 101-42152-230 155.52$ 26-Apr 4/30/2026 2401132 307 TRAUT COMPANIES 387594 601-49420-312 120.00$ 26-Apr 4/30/2026 2401133 6 USA TODAY CO - LOCALIQ 0007631040 101-41430-340 79.16$ 26-Apr 4/30/2026 2401134 107953 WEISMAN CLEANING INC 7980 210-42280-300 2,360.00$ 26-Apr 4/30/2026 63613 160 CITY OF ST. CLOUD AR037300 602-49480-419 74,421.71$ 26-Apr 4/30/2026 63614 105961 FINKEN INC 1543346 101-41942-410 399.50$ 26-Apr 4/30/2026 63615 108506 GRACEVIEW ESTATES HOMEOWNERS ASSOCIATION REFUND 03.26.26 210-42210-34782 200.00$ 26-Apr 4/30/2026 63616 108496 LEGACY UPFITTERS INC 81431 101-43120-230 950.00$ 26-Apr 4/30/2026 63617 102497 MARTIN MARIETTA MATERIALS, INC 48937479 101-43120-210 186.62$ 26-Apr 4/30/2026 63618 179 MCFOA 2026 - MMMC APPLICATION 101-41430-446 125.00$ 26-Apr 4/30/2026 63619 107581 ROCKY, TIM 01.12.26 101-45202-34782 200.00$ 26-Apr 4/30/2026 63620 107650 TRI COUNTY HUMANE SOCIETY 202601 101-42120-300 25.00$ 26-Apr 4/30/2026 63621 2022 UNUM LIFE INSURANCE APRIL 26 STMT 101-21713 2,120.63$ 109,026.05$ 26-Apr 4/30/2026 63621 2022 UNUM LIFE INSURANCE May-26 101-21713 2,054.08$ 26-May 5/7/2026 63622 104694 BADGER METER INC 802333284 601-49430-300 1,910.96$ 26-May 5/7/2026 63623 160 CITY OF ST. CLOUD AR037343 101-45204-308 750.00$ 26-May 5/7/2026 63624 108507 DIAMOND INDUSTRIAL CLEANING EQUIPMENT 28707 101-45202-210 49.95$ 26-May 5/7/2026 63625 103423 STEARNS COUNTY AUDITOR-TREASUR 2026-00000059 101-41550-300 25,357.60$ 26-May 5/7/2026 63626 108509 VILLARREAL, ESMERALDA REFUND 5/5/26 101-45202-34782 200.00$ 26-May 5/13/2026 63627 103570 CITY OF ST. JOSEPH 05.12.26 CONCESSIONS 101-45204-213 75.00$ 26-May 5/14/2026 63628 104893 COLD SPRING CO-OP APRIL 26 STMT 101-43120-220 54.99$ 26-May 5/14/2026 63629 36 HAWKINS INC 7411071 601-49421-210 2,197.18$ 26-May 5/14/2026 63629 36 HAWKINS INC 7411072 601-49420-210 575.80$ 26-May 5/14/2026 63630 108511 HOMAN, THOMAS REFUND 05.06.26 101-45202-34782 200.00$ 6,629.22$ 26-May 5/14/2026 63631 105921 MARCO INC 581233467 101-41430-300 555.41$ 26-May 5/14/2026 63632 11 STEARNS ELECTRIC ASSOCIATION APRIL 26 STMT 652-43160-386 2,971.89$ 26-May 5/14/2026 63633 107773 STERICYCLE INC 8014171056 101-42120-300 73.95$ Payroll $74,915.22 Accounts Payable & Payroll EFT $154,932.09 ACH Accounts Payable $33,111.27 Check #'s $109,026.05 Council Approval Checks $6,629.22 $378,613.85 STAFF MEMO Prepared by: Lori Bartlett, Finance Director Meeting Date: 5-18-26 ☒Consent Agenda Item ☐Regular Agenda Item Agenda Item # Reviewed by: Item: Donations and Contributions Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED Consider approval Resolution 2026-028 accepting donations as presented. BOARD/COMMISSION/COMMITTEE RECOMMENDATION none PREVIOUS COUNCIL ACTION none REFERENCE AND BACKGROUND Minnesota Statute 465.03 requires that all gifts and donations of real or personal property be accepted only with the adoption of a resolution approved by two-thirds of the members of the City Council. By accepting the donations, the city is accepting the intent of the donations. The in-kind donations are estimates. Total Dog Park cash donations received through 4/30/26 = $7,239 + $1,149 for pavers and refreshments. BUDGET IMPACT $25,309.00 STAFF RECOMMENDED ACTION Accept the donations as presented in Resolution 2026-028. SUPPORTING DATA/ATTACHMENTS Resolution 2026-028 Accepting Donations 4c RESOLUTION 2026-028 RESOLUTION ACCEPTED DONATION(S) WHEREAS, The City of St. Joseph is generally authorized to accepts gifts and bequests pursuant to Minnesota Statutes Section 465.03 and Minnesota Statutes Section 471.17 for the benefit of its citizens; and WHEREAS, said Minnesota Statute 465.03 requires that all gifts and donations of real or personal property be accepted only with the adoption of a resolution approved by two-thirds of the members of the City Council; and WHEREAS, the following person/persons and/or entity/entities has/have donated real and/or personal property as follows: DONOR METHOD PURPOSE AMOUNT Anonymous Cash Archery Range $1.00 Anonymous Cash Dog Park $8.00 Norman and Judith Hansen Cash Police WRAP Program $300.00 St. Joseph Fire Relief Cash Fire Radio Replacement $25,000.00 WHEREAS, all such donations have been contributed to assist the various city departments and programs as allowed by law; and WHEREAS, the City Council finds that it is appropriate to accept the donations offered. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH, MINNESOTA, AS FOLLOWS: 1. The donations described above are accepted. 2. The Finance Department is hereby directed to issue receipts to each donor acknowledging the city’s receipt of the donors’ donations. ADOPTED by the City Council this 18th day of May, 2026. CITY OF ST. JOSEPH Adam Scepaniak, Mayor ATTEST David Murphy, City Administrator STAFF MEMO Prepared by: Lori Bartlett Meeting Date: 5-18-2026 ☒Consent Agenda Item ☐Regular Agenda Item Agenda Item # Reviewed by: Item: April Treasurer’s Report Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED Consider acceptance of the treasurer’s reports through April 2026. BOARD/COMMISSION/COMMITTEE RECOMMENDATION none PREVIOUS COUNCIL ACTION Adopted 2026 budget on December 1, 2025. REFERENCE AND BACKGROUND Reversing audit entries have been posted. There are a few reversing entries for debt and capital assets that need to be adjusted before the May reports. The activity presented represents 2026 activity. Cash/investment presented as April 30, 2026. Budget to actual reports attached for Council review. The cash and investment balance decreased $2,844,239 from the beginning of the year. The first half of the year typically reflects a drawdown of cash balances, as property tax settlements and state aid payments are not received until mid-year. There was a one-time cash disbursement in the amount of $762,300 to pay the YMCA for the donations received on the community center project. In addition, the portion of donations received directly at Sentry Bank were returned by the city. The city defeased the 2019A industrial park bonds with a disbursement of $940,698 into an escrow account. Investment earnings average 3.69% interest rate with an average maturity of 25 months. Interest in earnings for April equaled $69,260 on an ending cash balance of $24,122,067. The change in market value increased $11,798. Recorded interest earnings as of April 30th total $110,075. The FOMC Board kept the federal rates unchanged with the uncertainties of the Iran war, among other issues. The General Fund spent 32% of the expenditure budget and received 7% of the revenue budget at the end of April. While revenues and expenditures are operational in nature, there are a couple of items to point out. Development fees picked up with the second Joetown Apts and Monastery permits. Room and shelter fees are near budget as summer and holidays are nearly booked. There is a $57k in insurance recovery. This is for the squad 709 accident. Audit services are billed intermittently until the audit is completed. The final payment will be in late May/early June. There is a severance payment recorded. This is for paid time off leave paid to an employee who resigned. Pickup #50 has been replaced per the replacement schedule. Enterprise funds spent 21% (less depreciation) and received 28% of the revenue budget. The revenue for usage fees represents Jan through April usage. The water operating supplies is mainly for water meters to complete the cellular meter conversion. There was a water main break at 7th and Baker St. Part of the repair costs were paid by April 30th. A sewer pump was replaced in the Baker St lift station. An electrical switch was added to the Northland lift station. Compost permits were on sale beginning in March. The 4d city sold 219 permits by the end of April. BUDGET IMPACT Information only STAFF RECOMMENDED ACTION Accept the treasurer’s reports through April 2026. SUPPORTING DATA/ATTACHMENTS Financial Statements – Cash Allocation Financial Statements – General Fund Financial Statements - Enterprise Funds CITY OF ST JOSEPH COMBINED CASH INVESTMENT APRIL 30, 2026 COMBINED CASH ACCOUNTS 001-10100GENERAL CHECKING24,123,817.13 TOTAL COMBINED CASH24,123,817.13 001-10199CASH ALLOCATED TO OTHER FUNDS( 24,123,817.13) TOTAL UNALLOCATED CASH.00 CASH ALLOCATION RECONCILIATION 101ALLOCATION TO GENERAL FUND1,614,223.69 102ALLOCATION TO EMPLOYEE RETIREMENT RESERVE388,313.75 106ALLOCATION TO PUBLIC SAFETY AID75,009.00 108ALLOCATION TO CABLE PEG ACCESS FEE10,948.87 109ALLOCATION TO GENERAL CAPITAL OUTLAY557,614.83 110ALLOCATION TO DEBT SERVICE RELIEF925,220.19 200ALLOCATION TO ST CLOUD AREA LOCAL SALES TAX1,553,384.21 205ALLOCATION TO PARK DEDICATION FEES166,130.82 210ALLOCATION TO FIRE DEPARTMENT575,587.49 215ALLOCATION TO CHARITABLE GAMBLING294.32 220ALLOCATION TO CVB36,150.15 225ALLOCATION TO DEED CDAP HOUSING GRANTS61,407.74 250ALLOCATION TO EDA75,353.14 251ALLOCATION TO REVOLVING LOAN FUND688,367.98 253ALLOCATION TO TIF 4-1 FORTITUDE SENIOR APTS45,536.46 257ALLOCATION TO TIF 2-1 MILLSTREAM SHOPS LOFTS51,788.71 259ALLOCATION TO TIF 2-3 BAYOU BLUES ALLEY FLAT2,371.12 301ALLOCATION TO 2016 CIP BONDS \[GOVT CENTER\]24,240.89 302ALLOCATION TO 2022A GO ABATE BONDS\[COMMCTR1\]1,624,049.60 304ALLOCATION TO 2016 IMP BONDS \[FIELD ST\]160,223.61 307ALLOCATION TO 2019A IMP BONDS \[OVERLAYS\]146,568.97 308ALLOCATION TO 2019A IMP BONDS \[IND PARK\]341,566.59 310ALLOCATION TO 2020B IMP BONDS \[20TH AVE SE\]355,032.96 311ALLOCATION TO 2021 IMP BOND \[MN ST/OVERLAYS\]540,630.57 312ALLOCATION TO 2020B CIP BONDS \[SHOP 3\]4,069.68 314ALLOCATION TO 2020C CO REFUND \['14 PARK TER\]8,739.81 315ALLOCATION TO 2022 IMP BONDS \[OVERLAYS\]31,079.30 316ALLOCATION TO 2022A EQUIP CERT \[FD TRUCK\]16,960.32 317ALLOCATION TO 2023A IMP \[OVERLAY/ELM ST ROW\]111,640.77 318ALLOCATION TO 2023A EQUIP CERT \[GEN EQ\]18,888.56 319ALLOCATION TO 2024A GO IMP BONDS \[ST IMP\]533,251.02 320ALLOCATION TO 2025A GO IMP BONDS \[ST IMP\]163,258.47 321ALLOCATION TO 2025A EQUIP CERT \[GEN EQ\]2,088.41 322ALLOCATION TO FUND 322( 34.13) 402ALLOCATION TO COMMUNITY CENTER/YMCA PHASE I5,500,074.00 420ALLOCATION TO FUND 420441,421.49 421ALLOCATION TO 2025 EQUIP CERTIFICATES244,747.36 422ALLOCATION TO FUND 422( 132,300.30) 501ALLOCATION TO WAC/WATER TRUNK FEES605,591.14 502ALLOCATION TO SAC/SEWER TRUNK FEES364,545.01 601ALLOCATION TO WATER FUND1,085,528.95 602ALLOCATION TO SEWER FUND3,788,067.84 603ALLOCATION TO REFUSE/RECYCLING/COMPOST313,166.52 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 04:03PM PAGE: 1 CITY OF ST JOSEPH COMBINED CASH INVESTMENT APRIL 30, 2026 651ALLOCATION TO STORM WATER UTILITY848,686.69 652ALLOCATION TO STREET LIGHT UTILITY154,330.56 TOTAL ALLOCATIONS TO OTHER FUNDS24,123,817.13 ALLOCATION FROM COMBINED CASH FUND - 001-10199( 24,123,817.13) ZERO PROOF IF ALLOCATIONS BALANCE.00 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 04:03PM PAGE: 2 City ofSt. Joseph General Fund Balance Sheet Summary AsofApril 30, 2026 Account NumberAccount Name4/30/2026 Assets 101-10199Cash$ 1,614,223.69 102-10199Cash 388,313.75 106-10199Cash 75,009.00 108-10199Cash 10,948.87 109-10199Cash 557,614.83 110-10199Cash 925,220.19 101-10200Petty Cash 200.00 101-10450Interest Receivable - 101-10500Accounts Receivable 20,530.00 108-10500Accounts Receivable - 101-10520State MSAS Receivable - 109-10500Accounts Receivable - 109-10550Due From other Gov tUnits - 102-10550DFOGU - 101-10550Due From Other Gov Units - 110-10550Due From other Gov t Units - 110-10600Prepaids - 101-10600Prepaid Items - 110-10700Taxes Receivable - Delinquent - 101-10700Taxes Receivable - Delinquent - 101-11800Lease Receivable - 110-12100Special Assessments Receivable - 101-12100Special Assessments Receivable - 110-12150Delinquent Special Assmt - 110-15500Due From Other Fund - 101-15500Due From Other Fund - Total Assets$ 3,592,060.33 Liabilities 101-20200Accounts Payable (80,817.38) 102-20200Accounts Payables - 106-20200Accounts Payable - 104-20200ARPA Accounts Payable - 108-20200Accounts Payable - 109-20200Accounts Payable - 110-20200Accounts Payable - 101-20201Salaries Payable - 109-20202Due to Other Govt Units - 101-20202Due to Other Govt Units - 110-20400Contracts Payables - 110-20402Retainage Payable - 101-21701Federal Withholding - 101-21702State Withholding - 101-21703FICA Tax Withholding - 101-21704PERA (0.07) 101-21705Deferred Comp - 101-21706Medical/Dental Insurance (10,066.70) 101-21707Federation Dues (1,709.35) 101-21708MN Paid Leave 529.50 101-21709Vision Insurance 212.60 101-21711Life Insurance 46.55 101-21712Fire Dept Lunch Liability - 101-21713Disability Insurance 1,793.68 101-21714Child Support - 101-21715Flex- Medical/H SA (1,358.36) 101-21716Flex- Dependent Care Reimb (4,749.94) 101-22200Unearned Revenue - 110-22204Deferred Inflow of Resources - 101-22204Deferred Inflow of Resources - 101-22600Deposit Payable - Total Liabilities (96,119.47) Fund Equity Funds 101-110Revenue Under Expenditures YTD 1,205,383.15 101-24410Design. Fd Bal - Working Cap - 101-24411Design. Fd Bal - Elections - 101-24413Design. Fd Bal - Capital - 110-24413Design. Fd Bal - Capital - 110-24414Design. Fd Bal -Debt Serv.Rel. - 101-24500Restricted Equity - 109-24413Design. Fd Bal - Capital - 109-25310Unassigned Fund Balance (662,759.47) 110-24500Restricted Net Position - 101-25310Unassigned Fund Balance (2,835,677.92) 102-25310Unassigned Fund Balance (415,939.77) 106-25310Unassigned Fund Balance (75,009.00) 108-25310Unassigned Fund Balance (10,178.26) 110-25310Unassigned Fund Balance (1,003,720.19) Total Equity (3,797,901.46) Total Liabilities plus Equity$ (3,894,020.93) CITY OF ST JOSEPH REVENUES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETCURRENT BUDGETUNEARNEDPCNT GENERAL FUND REVENUE 101-41430-31010CURRENT AD VALOREM TAXES.00.003,044,958.003,044,958.003,044,958.00.0 101-41430-31320STATE SALES TAX.002.80.00.00( 2.80).0 101-41430-34102ZONING VIOLATION.00.00250.00250.00250.00.0 101-41430-34103ZONING AND SUBDIVISION FEE4,755.0011,137.0015,750.0015,750.004,613.0070.7 101-41430-34104LAND USE DEPOSIT FEE6,000.001,227.80.00.00( 1,227.80).0 101-41430-34105SALE OF MAPS AND PUBLICATIONS114.001.50100.00100.0098.501.5 101-41430-34107ASSESSMENTS SEARCH1,310.001,330.005,000.005,000.003,670.0026.6 101-41430-34111SPECIAL HEARING.00.00150.00150.00150.00.0 101-41430-34221WATER TOWER ANTENNA LEASE853.34878.922,650.002,650.001,771.0833.2 101-41430-34404INTEREST CHARGES.0030.00.00.00( 30.00).0 101-41430-34780SHELTER/ROOM RENTAL FEES400.001,000.001,500.001,500.00500.0066.7 101-41430-34782ROOM RENTAL DAMAGE DEPOSIT.00400.00.00.00( 400.00).0 101-42120-34800ACCIDENT REPORT FEE603.751,127.753,500.003,500.002,372.2532.2 101-42120-34950KENNEL FEES.00.00225.00225.00225.00.0 101-42120-34955POLICE INVESTIGATION CHARGES.00.00525.00525.00525.00.0 101-42120-35101COUNTY FINES10,748.417,212.5538,000.0038,000.0030,787.4519.0 101-42120-35102POLICY FINES15,009.4014,656.0030,000.0030,000.0015,344.0048.9 101-42120-35106SEIZED PROPERTY234.75.002,500.002,500.002,500.00.0 101-42120-35107BOND-FORFEITED CARS.00( 50,364.00).00.0050,364.00.0 101-42120-35108POLICE CASE RECOVERY.004.55.00.00( 4.55).0 101-43120-32000REFUSE PERMITS10,600.0012,000.0010,600.0010,600.00( 1,400.00)113.2 101-43120-34407SNOW REMOVAL.00.00525.00525.00525.00.0 101-45125-34783SCHNEIDER FIELD RENTAL.00.003,000.003,000.003,000.00.0 101-45125-36230DONATIONS - SCHNEIDER FIELD.00.001,000.001,000.001,000.00.0 101-45202-34407WEED CUTTING.00.00315.00315.00315.00.0 101-45202-34780SHELTER/ROOM RENTAL FEES20,600.0019,400.0028,000.0028,000.008,600.0069.3 101-45202-34782PARK RENTAL DAMAGE DEPOSIT16,136.0015,400.00.00.00( 15,400.00).0 101-45204-34405CONCESSIONS.00.00525.00525.00525.00.0 101-45204-34408ADMISSION FEE5,880.008,640.007,350.007,350.00( 1,290.00)117.6 101-45204-36230DONATIONS - RECREATION250.00.00525.00525.00525.00.0 101-49302-39201TRANSFERS FROM OTHER FUNDS.0024,710.95.00.00( 24,710.95).0 101-49302-39305INSURANCE RECOVERY.0057,278.05.00.00( 57,278.05).0 102-49302-39201TRANSFERS FROM OTHER FUNDS11,205.009,440.009,440.009,440.00.00100.0 108-41950-31810FRANCHISE FEES - PEG1,098.94770.614,390.004,390.003,619.3917.6 109-41430-31010CURRENT AD VALOREM TAXES.00.00164,600.00164,600.00164,600.00.0 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:29PM PAGE: 1 CITY OF ST JOSEPH REVENUES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 GENERAL CAPITAL OUTLAY PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETCURRENT BUDGETUNEARNEDPCNT 109-49302-39201TRANSFERS FROM OTHER FUNDS4,000.00.00.00.00.00.0 109-49302-39260SURPLUS PROPERTY5,766.907,481.005,000.005,000.00( 2,481.00)149.6 110-41430-33401LOCAL GOVERNMENT AID.00.0075,000.0075,000.0075,000.00.0 110-43120-31010CURRENT AD VALOREM TAXES277.55.00500.00500.00500.00.0 110-43120-36100SPECIAL ASSESSMENTS.00.006,000.006,000.006,000.00.0 TOTAL GENERAL FUND REVENUE115,843.04143,765.483,461,878.003,461,878.003,318,112.524.2 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:29PM PAGE: 2 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT GENERAL FUND EXPENDITURES 101-41110-101COUNCIL SALARIES6,960.006,960.0020,880.0020,880.0013,920.0033.3 101-41110-104TAXABLE PER DIEM200.00350.002,800.002,800.002,450.0012.5 101-41110-120MN PAID LEAVE.0043.86140.00140.0096.1431.3 101-41110-121PERA CONTRIBUTIONS174.00174.00590.00590.00416.0029.5 101-41110-122FICA CONTRIBUTIONS332.02343.50735.00735.00391.5046.7 101-41110-125MEDICARE CONTRIBUTIONS.00.00345.00345.00345.00.0 101-41110-151WORKERS COMP. INSUR. PREM..00.0035.0035.0035.00.0 101-41110-171CLOTHING ALLOWANCE.00.00200.00200.00200.00.0 101-41110-200OFFICE SUPPLIES64.58821.45105.00105.00( 716.45)782.3 101-41110-331TRAVEL & CONFERENCE EXPENSE1,840.221,814.168,400.008,400.006,585.8421.6 101-41110-361GENERAL LIABILITY INSURANCE512.00544.00520.00520.00( 24.00)104.6 101-41110-433DUES & MEMBERSHIPS29,844.0027,921.0034,050.0034,050.006,129.0082.0 101-41120-103LEGISLATIVE BODIES1,080.001,040.005,640.005,640.004,600.0018.4 101-41120-151WORKERS COMP. INSUR. PREM..00.00320.00320.00320.00.0 101-41120-200OFFICE SUPPLIES.00.0075.0075.0075.00.0 101-41120-340ADVERTISING.00.0050.0050.0050.00.0 101-41130-304LEGAL FEES270.00137.501,000.001,000.00862.5013.8 101-41130-340ADVERTISING170.68.00750.00750.00750.00.0 101-41310-101MAYOR SALARIES2,600.002,600.007,800.007,800.005,200.0033.3 101-41310-104TAXABLE PER DIEM.00.001,000.001,000.001,000.00.0 101-41310-120MN PAID LEAVE.0015.5650.0050.0034.4431.1 101-41310-121PERA CONTRIBUTIONS130.00130.00440.00440.00310.0029.6 101-41310-122FICA CONTRIBUTIONS37.7237.72.00.00( 37.72).0 101-41310-125MEDICARE CONTRIBUTIONS.00.00125.00125.00125.00.0 101-41310-151WORKERS COMP. INSUR. PREM..00.0010.0010.0010.00.0 101-41310-171CLOTHING ALLOWANCE.00.0050.0050.0050.00.0 101-41310-200OFFICE SUPPLIES45.00.0050.0050.0050.00.0 101-41310-331TRAVEL & CONFERENCE EXPENSE191.4385.003,000.003,000.002,915.002.8 101-41310-361GENERAL LIABILITY INSURANCE128.00136.00130.00130.00( 6.00)104.6 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:29PM PAGE: 3 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-41410-101ELECTION SALARIES.00.0012,320.0012,320.0012,320.00.0 101-41410-120MN PAID LEAVE.00.0055.0055.0055.00.0 101-41410-210OPERATING SUPPLIES.00.00300.00300.00300.00.0 101-41410-331TRAVEL & CONFERENCE.00.00700.00700.00700.00.0 101-41410-340ADVERTISING.00.00350.00350.00350.00.0 101-41410-410RENTALS.00600.006,000.006,000.005,400.0010.0 101-41410-580OTHER EQUIPMENT.00.00500.00500.00500.00.0 101-41430-101ADMINISTRATIVE SALARIES96,326.4999,844.68336,555.00336,555.00236,710.3229.7 101-41430-120MN PAID LEAVE.00658.701,885.001,885.001,226.3034.9 101-41430-121PERA CONTRIBUTIONS7,128.227,398.3124,925.0024,925.0017,526.6929.7 101-41430-122FICA CONTRIBUTIONS6,923.707,125.3719,470.0019,470.0012,344.6336.6 101-41430-123DEFERRED COMP-EMPLOYER450.00450.002,600.002,600.002,150.0017.3 101-41430-125MEDICARE CONTRIBUTIONS( 24.66).002,580.002,580.002,580.00.0 101-41430-130H S A- EMPLOYER CONTRIBUTION3,780.002,687.504,800.004,800.002,112.5056.0 101-41430-131HEALTH INSURANCE19,104.6615,836.3260,600.0060,600.0044,763.6826.1 101-41430-132DENTAL INSURANCE1,289.321,180.242,980.002,980.001,799.7639.6 101-41430-133LIFE INSURANCE77.1583.80245.00245.00161.2034.2 101-41430-134DISABILTY INSURANCE836.99769.883,250.003,250.002,480.1223.7 101-41430-151WORKERS COMP. INSUR. PREM..00.00790.00790.00790.00.0 101-41430-171CLOTHING ALLOWANCE.00.00150.00150.00150.00.0 101-41430-200OFFICE SUPPLIES407.08148.662,000.002,000.001,851.347.4 101-41430-201POSTAGE1,354.461,344.975,500.005,500.004,155.0324.5 101-41430-205MOTOR FUEL.00145.46250.00250.00104.5458.2 101-41430-210OPERATING SUPPLIES872.66740.453,150.003,150.002,409.5523.5 101-41430-220REPAIR AND MAINTENANCE132.31.00210.00210.00210.00.0 101-41430-230VEHICLE R&M.00909.361,000.001,000.0090.6490.9 101-41430-300PROFESSIONAL SERVICES1,927.421,669.623,500.003,500.001,830.3847.7 101-41430-310SOFTWARE SUPPORT3,905.804,177.4310,920.0010,920.006,742.5738.3 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:29PM PAGE: 4 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-41530-101FINANCE SALARIES66,194.5270,240.47228,595.00228,595.00158,354.5330.7 101-41530-120MN PAID LEAVE.00469.061,270.001,270.00800.9436.9 101-41530-121PERA CONTRIBUTIONS4,848.185,135.0716,640.0016,640.0011,504.9330.9 101-41530-122FICA CONTRIBUTIONS4,708.054,889.3313,140.0013,140.008,250.6737.2 101-41530-123DEFERRED COMP-EMPLOYER675.00675.001,950.001,950.001,275.0034.6 101-41530-125MEDICARE CONTRIBUTIONS.00.003,075.003,075.003,075.00.0 101-41530-130H S A- EMPLOYER CONTRIBUTION2,400.002,500.004,800.004,800.002,300.0052.1 101-41530-131HEALTH INSURANCE11,734.8012,476.8843,200.0043,200.0030,723.1228.9 101-41530-132DENTAL INSURANCE648.40648.402,980.002,980.002,331.6021.8 101-41530-133LIFE INSURANCE53.2053.20165.00165.00111.8032.2 101-41530-134DISABILTY INSURANCE574.92517.452,185.002,185.001,667.5523.7 101-41530-151WORKERS COMP. INSUR. PREM..00.00535.00535.00535.00.0 101-41530-171CLOTHING ALLOWANCE.00.00100.00100.00100.00.0 101-41530-200OFFICE SUPPLIES72.88243.62525.00525.00281.3846.4 101-41530-300PROFESSIONAL SERVICES1,997.165,687.135,500.005,500.00( 187.13)103.4 101-41530-310SOFTWARE SUPPORT4,763.927,417.4519,280.0019,280.0011,862.5538.5 101-41530-321TELEPHONE244.20235.261,025.001,025.00789.7423.0 101-41530-331TRAVEL & CONFERENCE EXPENSE494.6659.453,000.003,000.002,940.552.0 101-41530-340ADVERTISING235.42.001,500.001,500.001,500.00.0 101-41530-433DUES & MEMBERSHIPS339.9980.00340.00340.00260.0023.5 101-41540-300AUDIT & ACCOUNTING SERVICES.0030,000.0040,350.0040,350.0010,350.0074.4 101-41550-300PROFESSIONAL SERVICES.00.0026,000.0026,000.0026,000.00.0 101-41610-304LEGAL FEES5,176.002,750.5015,000.0015,000.0012,249.5018.3 101-41710-220REPAIR AND MAINTENANCE.00.00500.00500.00500.00.0 101-41710-310IT SERVICES9,058.5823,065.6018,000.0018,000.00( 5,065.60)128.1 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:29PM PAGE: 5 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-41910-101PLANNING & ZONING SALARIES25,647.6126,887.4785,515.0085,515.0058,627.5331.4 101-41910-120MN PAID LEAVE.00176.76440.00440.00263.2440.2 101-41910-121PERA CONTRIBUTIONS1,923.542,016.596,415.006,415.004,398.4131.4 101-41910-122FICA CONTRIBUTIONS1,949.711,967.464,920.004,920.002,952.5440.0 101-41910-123DEFERRED COMP-EMPLOYER146.25292.50425.00425.00132.5068.8 101-41910-125MEDICARE CONTRIBUTIONS.00.001,150.001,150.001,150.00.0 101-41910-130H S A- EMPLOYER CONTRIBUTION780.00812.501,560.001,560.00747.5052.1 101-41910-131HEALTH INSURANCE3,623.124,062.9614,040.0014,040.009,977.0428.9 101-41910-132DENTAL INSURANCE238.88238.80970.00970.00731.2024.6 101-41910-133LIFE INSURANCE17.2817.2855.0055.0037.7231.4 101-41910-134DISABILTY INSURANCE201.52178.24830.00830.00651.7621.5 101-41910-151WORKERS COMP. INSUR. PREM..00.00200.00200.00200.00.0 101-41910-171CLOTHING ALLOWANCE.00.0030.0030.0030.00.0 101-41910-200OFFICE SUPPLIES25.3332.3775.0075.0042.6343.2 101-41910-201POSTAGE13.26.00200.00200.00200.00.0 101-41910-300PROFESSIONAL SERVICES170.46169.736,500.006,500.006,330.272.6 101-41910-303ENGINEERING FEE235.001,177.202,500.002,500.001,322.8047.1 101-41910-304LEGAL FEES112.50220.001,100.001,100.00880.0020.0 101-41910-310SOFTWARE SUPPORT.00.001,425.001,425.001,425.00.0 101-41910-321TELEPHONE124.17115.23520.00520.00404.7722.2 101-41910-331TRAVEL & CONFERENCE EXPENSE.0067.011,300.001,300.001,232.995.2 101-41910-340ADVERTISING274.5675.04600.00600.00524.9612.5 101-41910-431ANNEXATION/RECORDING FEE.00220.12650.00650.00429.8833.9 101-41910-433DUES & MEMBERSHIPS667.00693.40880.00880.00186.6078.8 101-41910-451JOINT PLANNING.00.00250.00250.00250.00.0 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:29PM PAGE: 6 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-41941-101GENERAL GOVERNMENT SALARIES4,894.0214,752.2923,900.0023,900.009,147.7161.7 101-41941-120MN PAID LEAVE.0091.39135.00135.0043.6167.7 101-41941-121PERA CONTRIBUTIONS363.131,102.561,775.001,775.00672.4462.1 101-41941-122FICA CONTRIBUTIONS347.651,084.011,415.001,415.00330.9976.6 101-41941-123DEFERRED COMP-EMPLOYER.00.0065.0065.0065.00.0 101-41941-125MEDICARE CONTRIBUTIONS.00.00330.00330.00330.00.0 101-41941-130H SA- EMPLOYER CONTRIBUTION293.13257.25600.00600.00342.7542.9 101-41941-131HEALTH INSURANCE1,257.441,561.785,190.005,190.003,628.2230.1 101-41941-132DENTAL INSURANCE73.6090.70300.00300.00209.3030.2 101-41941-133LIFE INSURANCE8.1512.7720.0020.007.2363.9 101-41941-134DISABILTY INSURANCE65.2066.19230.00230.00163.8128.8 101-41941-151WORKERS COMP. INSUR. PREM..00.00615.00615.00615.00.0 101-41941-171CLOTHING ALLOWANCE.0016.00.00.00( 16.00).0 101-41941-220REPAIR AND MAINTENANCE.00.00525.00525.00525.00.0 101-41941-361GENERAL LIABILITY INSURANCE2,132.717,049.712,230.002,230.00( 4,819.71)316.1 101-41942-210OPERATING SUPPLIES25.4782.362,625.002,625.002,542.643.1 101-41942-220REPAIR AND MAINTENANCE9.89613.845,000.005,000.004,386.1612.3 101-41942-300PROFESSIONAL SERVICES10,861.7011,159.3446,925.0046,925.0035,765.6623.8 101-41942-361GENERAL LIABILITY INSURANCE6,215.451,431.386,555.006,555.005,123.6221.8 101-41942-381ELECTRIC UTILITIES5,247.595,644.6420,485.0020,485.0014,840.3627.6 101-41942-383GAS UTILITIES4,162.804,208.338,575.008,575.004,366.6749.1 101-41942-410RENTALS399.50399.50525.00525.00125.5076.1 101-41942-437REAL ESTATE TAXES.0019,076.0018,000.0018,000.00( 1,076.00)106.0 101-41950-101CABLE SALARIES700.00700.004,995.004,995.004,295.0014.0 101-41950-120MN PAID LEAVE.004.2025.0025.0020.8016.8 101-41950-122FICA CONTRIBUTIONS53.5553.54310.00310.00256.4617.3 101-41950-125MEDICARE CONTRIBUTIONS.00.0050.0050.0050.00.0 101-41950-151WORKERS COMP. INSUR. PREM..00.0010.0010.0010.00.0 101-41950-210OPERATING SUPPLIES.00.00210.00210.00210.00.0 101-41950-220REPAIR AND MAINTENANCE.00427.00500.00500.0073.0085.4 101-41950-300PROFESSIONAL SERVICES47.9747.97200.00200.00152.0324.0 101-41950-310SOFTWARE SUPPORT.00.00625.00625.00625.00.0 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:29PM PAGE: 7 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-42120-101POLICE SALARIES396,195.06432,911.801,610,210.001,610,210.001,177,298.2026.9 101-42120-120MN PAID LEAVE.002,857.779,195.009,195.006,337.2331.1 101-42120-121PERA CONTRIBUTIONS63,434.9666,456.96264,390.00264,390.00197,933.0425.1 101-42120-122FICA CONTRIBUTIONS9,293.5310,762.7211,490.0011,490.00727.2893.7 101-42120-123DEFERRED COMP-EMPLOYER991.292,565.4411,510.0011,510.008,944.5622.3 101-42120-125MEDICARE CONTRIBUTIONS.0018.8622,255.0022,255.0022,236.14.1 101-42120-130H S A- EMPLOYER CONTRIBUTION17,034.7850,426.4039,490.0039,490.00( 10,936.40)127.7 101-42120-131HEALTH INSURANCE73,278.2098,344.32323,280.00323,280.00224,935.6830.4 101-42120-132DENTAL INSURANCE3,080.263,496.5720,845.0020,845.0017,348.4316.8 101-42120-133LIFE INSURANCE357.02402.191,235.001,235.00832.8132.6 101-42120-134DISABILTY INSURANCE4,006.174,015.6614,875.0014,875.0010,859.3427.0 101-42120-151WORKERS COMP. INSUR. PREM..00.0058,935.0058,935.0058,935.00.0 101-42120-171CLOTHING ALLOWANCE506.51556.9914,000.0014,000.0013,443.014.0 101-42120-200OFFICE SUPPLIES.00157.38200.00200.0042.6278.7 101-42120-201POSTAGE83.33410.30750.00750.00339.7054.7 101-42120-210OPERATING SUPPLIES2,396.571,705.136,300.006,300.004,594.8727.1 101-42120-211AWAIRE SUPPLIES42.50.00250.00250.00250.00.0 101-42120-214SMALL TOOL & MINOR EQUIPMENT.00.00150.00150.00150.00.0 101-42120-220REPAIR AND MAINTENANCE.00.00200.00200.00200.00.0 101-42120-300PROFESSIONAL SERVICES3,920.183,423.0719,950.0019,950.0016,526.9317.2 101-42120-304LEGAL FEES517.502,745.0050,925.0050,925.0048,180.005.4 101-42120-307COMMUNITY POLICING PROGRAMS.00.001,000.001,000.001,000.00.0 101-42120-310SOFTWARE SUPPORT11,783.402,960.7440,200.0040,200.0037,239.267.4 101-42120-314SAFETY PROGRAM.00.001,015.001,015.001,015.00.0 101-42140-210OPERATING SUPPLIES.005,244.008,400.008,400.003,156.0062.4 101-42140-300PROFESSIONAL SERVICES4,685.186,153.147,350.007,350.001,196.8683.7 101-42140-331TRAVEL & CONFERENCE EXPENSE1,560.00.005,250.005,250.005,250.00.0 101-42151-210OPERATING SUPPLIES.00.00105.00105.00105.00.0 101-42151-220TELEPHONE/RADIO REPAIR/MAINT.00235.00250.00250.0015.0094.0 101-42151-320COMMUNICATION SUPPORT1,142.00225.001,575.001,575.001,350.0014.3 101-42151-321TELEPHONE3,673.693,518.6815,355.0015,355.0011,836.3222.9 101-42152-205MOTOR FUEL6,327.456,397.4225,795.0025,795.0019,397.5824.8 101-42152-230VEHICLE REPAIR & MAINTENANCE2,825.462,021.0437,800.0037,800.0035,778.965.4 101-42152-446LICENSE.00.0075.0075.0075.00.0 101-42401-300PROFESSIONAL SERVICES28,500.0028,500.00102,025.00102,025.0073,525.0027.9 101-42401-310SOFTWARE SUPPORT708.36844.131,960.001,960.001,115.8743.1 101-42401-438STATE SURCHARGE501.00591.0010,000.0010,000.009,409.005.9 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:29PM PAGE: 8 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-42500-220REPAIR AND MAINTENANCE.00.00525.00525.00525.00.0 101-42500-300PROFESSIONAL SERVICES900.001,890.001,575.001,575.00( 315.00)120.0 101-42500-326FIRE SIREN22.3935.2095.0095.0059.8037.1 101-42500-331TRAVEL & CONFERENCE EXPENSE.00.001,365.001,365.001,365.00.0 101-42500-433DUES & MEMBERSHIPS.00.00200.00200.00200.00.0 101-43120-101STREET SALARIES65,743.8062,520.33205,035.00205,035.00142,514.6730.5 101-43120-120MN PAID LEAVE.00404.631,190.001,190.00785.3734.0 101-43120-121PERA CONTRIBUTIONS4,852.414,623.9714,205.0014,205.009,581.0332.6 101-43120-122FICA CONTRIBUTIONS4,846.384,636.8712,305.0012,305.007,668.1337.7 101-43120-123DEFERRED COMP-EMPLOYER( 252.13)28.25325.00325.00296.758.7 101-43120-125MEDICARE CONTRIBUTIONS.00.002,875.002,875.002,875.00.0 101-43120-130H S A- EMPLOYER CONTRIBUTION3,412.654,190.737,415.007,415.003,224.2756.5 101-43120-131HEALTH INSURANCE13,904.5613,794.3841,100.0041,100.0027,305.6233.6 101-43120-132DENTAL INSURANCE804.56698.842,235.002,235.001,536.1631.3 101-43120-133LIFE INSURANCE67.5251.76165.00165.00113.2431.4 101-43120-134DISABILTY INSURANCE877.44766.771,855.001,855.001,088.2341.3 101-43120-151WORKERS COMP. INSUR. PREM..00.007,435.007,435.007,435.00.0 101-43120-171CLOTHING ALLOWANCE81.73183.801,740.001,740.001,556.2010.6 101-43120-200OFFICE SUPPLIES.00.00315.00315.00315.00.0 101-43120-201POSTAGE41.68.00210.00210.00210.00.0 101-43120-205MOTOR FUEL2,209.472,135.4410,185.0010,185.008,049.5621.0 101-43120-210OPERATING SUPPLIES2,290.293,097.2620,000.0020,000.0016,902.7415.5 101-43120-214SMALL TOOL & MINOR EQUIPMENT1,131.81.001,500.001,500.001,500.00.0 101-43120-220REPAIR AND MAINTENANCE150.00( 9.01)7,875.007,875.007,884.01( .1) 101-43120-230VEHICLE REPAIR & MAINTENANCE536.621,917.5010,500.0010,500.008,582.5018.3 101-43120-300PROFESSIONAL SERVICES1,500.00.0010,500.0010,500.0010,500.00.0 101-43120-310SOFTWARE SUPPORT1,377.711,480.373,300.003,300.001,819.6344.9 101-43120-314SAFETY PROGRAM119.34299.151,435.001,435.001,135.8520.9 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:29PM PAGE: 9 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-43125-101ICE & SNOW REMOVAL SALARIES31,743.5223,534.4867,210.0067,210.0043,675.5235.0 101-43125-120MN PAID LEAVE.00179.11390.00390.00210.8945.9 101-43125-121PERA CONTRIBUTIONS2,353.081,731.934,545.004,545.002,813.0738.1 101-43125-122FICA CONTRIBUTIONS2,329.001,742.924,015.004,015.002,272.0843.4 101-43125-125MEDICARE CONTRIBUTIONS.00.00940.00940.00940.00.0 101-43125-130H S A- EMPLOYER CONTRIBUTION.00.002,755.002,755.002,755.00.0 101-43125-131HEALTH INSURANCE.00.0013,620.0013,620.0013,620.00.0 101-43125-132DENTAL INSURANCE.00.00820.00820.00820.00.0 101-43125-133LIFE INSURANCE6.8231.8155.0055.0023.1957.8 101-43125-134DISABILTY INSURANCE31.006.86590.00590.00583.141.2 101-43125-205MOTOR FUEL2,213.212,280.964,765.004,765.002,484.0447.9 101-43125-210OPERATING SUPPLIES36,128.3421,556.6455,000.0055,000.0033,443.3639.2 101-43125-230VEHICLE REPAIR & MAINTENANCE12,220.006,239.3220,000.0020,000.0013,760.6831.2 101-43131-303ENGINEERING FEE15,562.6618,943.7455,000.0055,000.0036,056.2634.4 101-43201-200OFFICE SUPPLIES46.3336.84315.00315.00278.1611.7 101-43201-210OPERATING SUPPLIES2,155.543,704.2210,000.0010,000.006,295.7837.0 101-43201-214SMALL TOOL & MINOR EQUIPMENT416.16109.552,000.002,000.001,890.455.5 101-43201-220REPAIR AND MAINTENANCE1,339.173,636.555,000.005,000.001,363.4572.7 101-43201-300PROFESSIONAL SERVICES862.583,438.002,050.002,050.00( 1,388.00)167.7 101-43201-321TELEPHONE1,564.711,584.014,345.004,345.002,760.9936.5 101-43201-381ELECTRIC UTILITIES3,198.303,204.1412,120.0012,120.008,915.8626.4 101-43201-383GAS UTILITIES6,926.616,734.059,435.009,435.002,700.9571.4 101-43201-410RENTALS66.0072.60240.00240.00167.4030.3 101-43220-101SALARIES3,500.664,464.4317,935.0017,935.0013,470.5724.9 101-43220-120MN PAID LEAVE.0027.17105.00105.0077.8325.9 101-43220-121PERA CONTRIBUTIONS258.06333.711,330.001,330.00996.2925.1 101-43220-122FICA CONTRIBUTIONS262.23333.411,065.001,065.00731.5931.3 101-43220-125MEDICARE CONTRIBUTIONS.00.00250.00250.00250.00.0 101-43220-130H S A- EMPLOYER CONTRIBUTION.00.00675.00675.00675.00.0 101-43220-131HEALTH INSURANCE.00.004,110.004,110.004,110.00.0 101-43220-132DENTAL INSURANCE.00.00225.00225.00225.00.0 101-43220-133LIFE INSURANCE3.552.9115.0015.0012.0919.4 101-43220-134DISABILTY INSURANCE15.523.43175.00175.00171.572.0 101-43220-205MOTOR FUEL19.99.00100.00100.00100.00.0 101-43220-230VEHICLE REPAIR & MAINTENANCE1,417.95484.402,625.002,625.002,140.6018.5 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:30PM PAGE: 10 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-45123-101WARMING HOUSE SALARIES4,824.344,515.148,660.008,660.004,144.8652.1 101-45123-120MN PAID LEAVE.0027.0350.0050.0022.9754.1 101-45123-122FICA CONTRIBUTIONS369.06345.38535.00535.00189.6264.6 101-45123-125MEDICARE CONTRIBUTIONS.00.00125.00125.00125.00.0 101-45123-151WORKERS COMP. INSUR. PREM..00.00235.00235.00235.00.0 101-45123-210OPERATING SUPPLIES.00.001,570.001,570.001,570.00.0 101-45123-220REPAIR AND MAINTENANCE.00.00525.00525.00525.00.0 101-45123-381ELECTRIC UTILITIES359.03379.81435.00435.0055.1987.3 101-45123-383GAS UTILITIES107.52162.31940.00940.00777.6917.3 101-45125-210OPERATING SUPPLIES.0049.87750.00750.00700.136.7 101-45125-220REPAIR AND MAINTENANCE57.31.001,575.001,575.001,575.00.0 101-45202-101PARK SALARIES62,818.6467,493.67225,675.00225,675.00158,181.3329.9 101-45202-120MN PAID LEAVE.00438.401,305.001,305.00866.6033.6 101-45202-121PERA CONTRIBUTIONS4,618.685,022.8615,580.0015,580.0010,557.1432.2 101-45202-122FICA CONTRIBUTIONS4,609.964,996.6713,505.0013,505.008,508.3337.0 101-45202-123DEFERRED COMP-EMPLOYER( 189.92).00195.00195.00195.00.0 101-45202-125MEDICARE CONTRIBUTIONS.00.003,160.003,160.003,160.00.0 101-45202-130H S A- EMPLOYER CONTRIBUTION2,756.603,310.358,800.008,800.005,489.6537.6 101-45202-131HEALTH INSURANCE10,619.6811,597.2847,130.0047,130.0035,532.7224.6 101-45202-132DENTAL INSURANCE604.48570.982,830.002,830.002,259.0220.2 101-45202-133LIFE INSURANCE63.3347.63185.00185.00137.3725.8 101-45202-134DISABILTY INSURANCE698.92605.462,035.002,035.001,429.5429.8 101-45202-151WORKERS COMP. INSUR. PREM..00.006,945.006,945.006,945.00.0 101-45202-171CLOTHING ALLOWANCE79.55163.191,740.001,740.001,576.819.4 101-45202-200OFFICE SUPPLIES.00.00150.00150.00150.00.0 101-45202-201POSTAGE41.68.00100.00100.00100.00.0 101-45202-205MOTOR FUEL2,029.632,018.188,105.008,105.006,086.8224.9 101-45202-210OPERATING SUPPLIES3,810.784,123.6330,000.0030,000.0025,876.3713.8 101-45202-214SMALL TOOL & MINOR EQUIPMENT125.96142.98500.00500.00357.0228.6 101-45202-220REPAIR AND MAINTENANCE2,665.841,478.5720,000.0020,000.0018,521.437.4 101-45202-230VEHICLE REPAIR & MAINTENANCE1,068.483,910.5910,000.0010,000.006,089.4139.1 101-45202-300PROFESSIONAL SERVICES2,603.582,559.2822,500.0022,500.0019,940.7211.4 101-45202-310SOFTWARE SUPPORT1,377.711,480.373,300.003,300.001,819.6344.9 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:30PM PAGE: 11 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 GENERAL FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 101-45204-101RECREATION SALARIES11,642.3811,176.4963,165.0063,165.0051,988.5117.7 101-45204-120MN PAID LEAVE.0067.96375.00375.00307.0418.1 101-45204-121PERA CONTRIBUTIONS873.18838.232,705.002,705.001,866.7731.0 101-45204-122FICA CONTRIBUTIONS890.64855.003,915.003,915.003,060.0021.8 101-45204-125MEDICARE CONTRIBUTIONS.00.00915.00915.00915.00.0 101-45204-151WORKERS COMP. INSUR. PREM..00.00515.00515.00515.00.0 101-45204-171CLOTHING ALLOWANCE.00.00400.00400.00400.00.0 101-45204-200OFFICE SUPPLIES60.05.00210.00210.00210.00.0 101-45204-201POSTAGE.00.00315.00315.00315.00.0 101-45204-210OPERATING SUPPLIES6.22.00790.00790.00790.00.0 101-45204-213CONCESSIONS.0046.80370.00370.00323.2012.7 101-45204-220REPAIR AND MAINTENANCE.00.00525.00525.00525.00.0 101-45204-300PROFESSIONAL SERVICES1,472.74238.692,000.002,000.001,761.3111.9 101-45204-308COMMUNITY PROGRAMS1,475.473,937.687,500.007,500.003,562.3252.5 101-45204-310SOFTWARE SUPPORT3,476.253,650.064,440.004,440.00789.9482.2 101-45204-321TELEPHONE124.17115.23520.00520.00404.7722.2 101-45204-328MARKETING318.98110.40750.00750.00639.6014.7 101-45204-331TRAVEL & CONFERENCE EXPENSE50.0085.751,260.001,260.001,174.256.8 101-49300-720TRANSFERS TO OTHER FUNDS7,000.00.00.00.00.00.0 102-41430-110SEVERANCE PAYMENT1,959.30.00.00.00.00.0 102-42120-110SEVERANCE PAYMENT.0037,066.02.00.00( 37,066.02).0 109-41942-300PROFESSIONAL SERVICES.00.0020,000.0020,000.0020,000.00.0 109-42151-580OTHER EQUIPMENT.00.009,200.009,200.009,200.00.0 109-42152-550MOTOR VEHICLES.00.0015,000.0015,000.0015,000.00.0 109-42152-580OTHER EQUIPMENT7,784.1233,301.7219,700.0019,700.00( 13,601.72)169.0 109-42152-581COMPUTER HARDWARE.00.001,000.001,000.001,000.00.0 109-42500-580OTHER EQUIPMENT.00.00500.00500.00500.00.0 109-43125-580OTHER EQUIPMENT.00.0036,375.0036,375.0036,375.00.0 109-43201-520BUILDINGS & STRUCTURES.004,609.00.00.00( 4,609.00).0 109-43201-580OTHER EQUIPMENT6,883.8721,955.153,000.003,000.00( 18,955.15)731.8 IMPROVEMENTS OTHER THAN BLDG109-45202-530.00.008,000.008,000.008,000.00.0 109-45202-550MOTOR VEHICLES.0022,847.585,000.005,000.00( 17,847.58)457.0 109-45202-580OTHER EQUIPMENT.00.0021,700.0021,700.0021,700.00.0 109-49300-720TRANSFERS TO OTHER FUNDS32,365.12.00.00.00.00.0 110-41430-300PROFESSIONAL SERVICES10,000.0010,000.0020,000.0020,000.0010,000.0050.0 110-41941-580OTHER EQUIPMENT.00.00110,000.00110,000.00110,000.00.0 110-41942-300PROFESSIONAL SERVICES.00.002,000.002,000.002,000.00.0 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:30PM PAGE: 12 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 DEBT SERVICE RELIEF PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 110-42120-300PROFESSIONAL SERVICES2,800.00.002,000.002,000.002,000.00.0 110-42120-580OTHER EQUIPMENT4,406.10.00.00.00.00.0 110-43120-300PROFESSIONAL SERVICES.00.002,000.002,000.002,000.00.0 110-43201-220REPAIR AND MAINTENANCE900.00.00.00.00.00.0 110-43201-520BUILDINGS & STRUCTURES2,495.35.00.00.00.00.0 110-43201-580OTHER EQUIPMENT.00.0010,000.0010,000.0010,000.00.0 110-45202-300PROFESSIONAL SERVICES.00.0022,000.0022,000.0022,000.00.0 110-49300-720TRANSFERS TO OTHER FUNDS24,850.0068,500.0018,500.0018,500.00( 50,000.00)370.3 TOTAL GENERAL FUND EXPENDITUR 1,470,658.671,745,373.315,597,680.005,597,680.003,852,306.6931.2 NET REVENUE OVER EXPENDITURES( 1,354,815.63)( 1,601,607.83)( 2,135,802.00)( 2,135,802.00)( 534,194.17)( 75.0) FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:30PM PAGE: 13 CITYOFSTJOSEPH BALANCE SHEET APRIL 30, 2026 FUND 601 - WATER FUND ASSETS 601-10199CASH1,085,528.95 601-10500ACCOUNTS RECEIVABLE174,513.13 601-12100SPECIAL ASSESSMENTS RECEIVABLE25,811.49 601-16100LAND372,941.34 601-16200BUILDING7,502,432.35 601-16210ACCUMULATED DEPR. BUILDING( 3,278,314.58) 601-16300TREATMENT PLANT & LINE11,624,002.57 601-16305IMPROVEMENTS NOT BUILDINGS315,192.96 601-16310ACCUMULATED DEPR. PLANT & LINE( 4,625,709.94) 601-16315ACCUM DEPN - IMPROVE NOT BLDGS( 103,959.40) 601-16400MACHINERY & EQUIPMENT331,450.33 601-16410ACCUMULATED DEPR. MACH & EQUIP( 234,811.87) 601-16500CONSTRUCTION IN PROGRESS58,854.47 TOTAL ASSETS13,247,931.80 LIABILITIES AND EQUITY LIABILITIES 601-20200ACCOUNTS PAYABLE( 1,323.06) 601-22500BONDS PAYABLE -CURRENT PORTION555,000.00 601-22530REVENUE BONDS PAYABLE560,000.00 601-22840NET PENSION LIABILITY98,491.00 601-23200UNAMORTIZED BOND PREMIUM47,700.00 TOTAL LIABILITIES1,259,867.94 FUND EQUITY 601-25310UNASSIGNED FUND BALANCE4,380,870.84 601-26100CONTRIB. FROM DEVELOPERS1,488,015.21 601-26140CONTRIB. FROM CAPITAL FUNDS6,336,429.14 REVENUE OVER EXPENDITURES - YTD( 217,251.33) TOTAL FUND EQUITY11,988,063.86 TOTAL LIABILITIES AND EQUITY13,247,931.80 CITY OF ST JOSEPH REVENUES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 WATER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETCURRENT BUDGETUNEARNEDPCNT UTILITIES REVENUE 601-00000-31010CURRENT AD VALOREM TAXES.00( .69).00.00.69.0 601-00000-31320STATE SALES TAX1,496.811,477.37.00.00( 1,477.37).0 601-00000-34221WATER TOWER ANTENNA LEASE7,679.997,910.4123,790.0023,790.0015,879.5933.3 601-00000-36100SPECIAL ASSESSMENTS( 814.12)( 2,439.98)525.00525.002,964.98(464.8) 601-00000-36210INTEREST EARNINGS24,745.26( 2,147.59)26,250.0026,250.0028,397.59( 8.2) 601-00000-36220AMORTIZATION OF BOND PREMIUM.00( 31,841.96).00.0031,841.96.0 601-00000-36300REIMBURSEMENT.001,052.43.00.00( 1,052.43).0 601-00000-37110USAGE RATE201,198.92209,179.79868,100.00868,100.00658,920.2124.1 601-00000-37111BULK WATER.00( 51.42)770.00770.00821.42( 6.7) 601-00000-37115UNDESIGNATED FUNDS60.0060.00.00.00( 60.00).0 601-00000-37150CONNECTION/RECONNECTION FEES300.00600.001,000.001,000.00400.0060.0 601-00000-37160PENALTIES AND FORFEITED DISC2,024.142,161.772,500.002,500.00338.2386.5 601-00000-37171WATER METER9,334.002,635.002,500.002,500.00( 135.00)105.4 601-00000-37180WATER FIXED CHARGE120,133.03126,203.54411,550.00411,550.00285,346.4630.7 601-00000-37181MDS TEST FEE6,028.189,567.2528,500.0028,500.0018,932.7533.6 601-00000-37190CONTRIBUTED REVENUE.00( 10,000.00).00.0010,000.00.0 601-00000-39201TRANSFERS FROM OTHER FUNDS21,182.565,000.0065,000.0065,000.0060,000.007.7 TOTAL UTILITIES REVENUE393,368.77319,365.921,430,485.001,430,485.001,111,119.0822.3 TOTAL FUND REVENUE393,368.77319,365.921,430,485.001,430,485.001,111,119.0822.3 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 1 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 WATER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT BOND PAYMENT (P & I) 601-47100-413LEASE PAYMENTS.00.005,800.005,800.005,800.00.0 601-47100-600DEBT SERVICE - PRINCIPAL.00555,000.00115,000.00115,000.00( 440,000.00)482.6 601-47100-611BOND INTEREST( 1,784.00)( 843.89)15,260.0015,260.0016,103.89( 5.5) 601-47100-620AGENT FEES.00.00750.00750.00750.00.0 TOTAL BOND PAYMENT (P & I)( 1,784.00)554,156.11136,810.00136,810.00( 417,346.11)405.1 OTHER FINANCING USES 601-49300-720TRANSFERS TO OTHER FUNDS6,865.006,145.006,145.006,145.00.00100.0 TOTAL OTHER FINANCING USES6,865.006,145.006,145.006,145.00.00100.0 POWER AND PUMPING 601-49410-220REPAIR AND MAINTENANCE2,900.00.007,875.007,875.007,875.00.0 601-49410-300PROFESSIONAL SERVICES.00.0026,250.0026,250.0026,250.00.0 601-49410-381ELECTRIC UTILITIES1,261.411,365.067,310.007,310.005,944.9418.7 601-49410-383GAS UTILITIES530.19564.251,345.001,345.00780.7542.0 TOTAL POWER AND PUMPING4,691.601,929.3142,780.0042,780.0040,850.694.5 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 2 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 WATER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT PURIFICATION-PLANT 1 601-49420-210OPERATING SUPPLIES3,128.046,350.6618,900.0018,900.0012,549.3433.6 601-49420-220REPAIR AND MAINTENANCE3,781.798,674.2539,270.0039,270.0030,595.7522.1 601-49420-300PROFESSIONAL SERVICES.00483.331,260.001,260.00776.6738.4 601-49420-310SOFTWARE SUPPORT.00.00190.00190.00190.00.0 601-49420-312TESTS840.00960.003,990.003,990.003,030.0024.1 601-49420-321TELEPHONE1,564.711,584.014,345.004,345.002,760.9936.5 601-49420-381ELECTRIC UTILITIES3,071.633,215.4312,375.0012,375.009,159.5726.0 601-49420-383GAS UTILITIES999.921,193.482,150.002,150.00956.5255.5 601-49420-580OTHER EQUIPMENT.00.0056,500.0056,500.0056,500.00.0 TOTAL PURIFICATION-PLANT 113,386.0922,461.16138,980.00138,980.00116,518.8416.2 PURIFICATION-PLANT 2 601-49421-210OPERATING SUPPLIES3,945.414,825.7129,400.0029,400.0024,574.2916.4 601-49421-214SMALL TOOL & MINOR EQUIPMENT.00.00525.00525.00525.00.0 601-49421-220REPAIR AND MAINTENANCE6,433.0810,205.8331,500.0031,500.0021,294.1732.4 601-49421-300PROFESSIONAL SERVICES1,195.00725.003,500.003,500.002,775.0020.7 601-49421-310SOFTWARE SUPPORT.00.00190.00190.00190.00.0 601-49421-321TELEPHONE1,904.711,924.015,400.005,400.003,475.9935.6 601-49421-381ELECTRIC UTILITIES8,448.218,282.7739,590.0039,590.0031,307.2320.9 601-49421-383GAS UTILITIES3,679.085,065.728,595.008,595.003,529.2858.9 601-49421-580OTHER EQUIPMENT.00.00100,000.00100,000.00100,000.00.0 TOTAL PURIFICATION-PLANT 225,605.4931,029.04218,700.00218,700.00187,670.9614.2 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 3 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 WATER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT DISTRIBUTION 601-49430-210OPERATING SUPPLIES266,182.37278,489.55270,000.00270,000.00( 8,489.55)103.1 601-49430-220REPAIR AND MAINTENANCE3,444.5422,931.537,875.007,875.00( 15,056.53)291.2 601-49430-300PROFESSIONAL SERVICES4,940.136,187.0285,575.0085,575.0079,387.987.2 TOTAL DISTRIBUTION274,567.04307,608.10363,450.00363,450.0055,841.9084.6 WELLHEAD PROTECTION 601-49434-303ENGINEERING FEE.00.003,000.003,000.003,000.00.0 TOTAL WELLHEAD PROTECTION.00.003,000.003,000.003,000.00.0 STORAGE-TOWER 1 601-49435-220REPAIR AND MAINTENANCE.00.002,625.002,625.002,625.00.0 601-49435-300PROFESSIONAL SERVICES.00.00315.00315.00315.00.0 601-49435-321TELEPHONE1,424.711,444.013,915.003,915.002,470.9936.9 601-49435-381ELECTRIC UTILITIES1,216.581,048.523,525.003,525.002,476.4829.8 IMPROVEMENTS OTHER THAN BLDG601-49435-530.00.0040,000.0040,000.0040,000.00.0 TOTAL STORAGE-TOWER 12,641.292,492.5350,380.0050,380.0047,887.475.0 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 4 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 WATER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT WATER MAINTENANCE 601-49440-101WATER DEPT SALARIES( 10,152.39)( 12,055.98)190,080.00190,080.00202,135.98( 6.3) 601-49440-112PENSION EXPENSE.00( 857.00).00.00857.00.0 601-49440-120MN PAID LEAVE.00456.171,100.001,100.00643.8341.5 601-49440-121PERA CONTRIBUTIONS4,935.875,187.1714,020.0014,020.008,832.8337.0 601-49440-122FICA CONTRIBUTIONS( 940.06)( 1,078.48)11,365.0011,365.0012,443.48( 9.5) 601-49440-123DEFERRED COMP-EMPLOYER( 417.53)197.751,125.001,125.00927.2517.6 601-49440-125MEDICARE CONTRIBUTIONS.00.002,655.002,655.002,655.00.0 601-49440-130H S A- EMPLOYER CONTRIBUTION1,897.822,243.487,915.007,915.005,671.5228.3 601-49440-131HEALTH INSURANCE7,137.688,188.0836,810.0036,810.0028,621.9222.2 601-49440-132DENTAL INSURANCE455.52472.321,640.001,640.001,167.6828.8 601-49440-133LIFE INSURANCE64.2554.96150.00150.0095.0436.6 601-49440-134DISABILTY INSURANCE550.76501.191,815.001,815.001,313.8127.6 601-49440-151WORKERS COMP. INSUR. PREM..00.002,890.002,890.002,890.00.0 601-49440-171CLOTHING ALLOWANCE180.07427.301,150.001,150.00722.7037.2 601-49440-200OFFICE SUPPLIES179.98.00210.00210.00210.00.0 601-49440-201POSTAGE6.107.452,600.002,600.002,592.55.3 601-49440-205MOTOR FUEL2,011.012,965.5810,650.0010,650.007,684.4227.9 601-49440-210OPERATING SUPPLIES635.03507.392,100.002,100.001,592.6124.2 601-49440-214SMALL TOOL & MINOR EQUIPMENT46.02.002,000.002,000.002,000.00.0 601-49440-220REPAIR AND MAINTENANCE21,858.0723.5621,000.0021,000.0020,976.44.1 601-49440-230VEHICLE REPAIR & MAINTENANCE396.49304.292,625.002,625.002,320.7111.6 601-49440-300PROFESSIONAL SERVICES1,060.00375.0010,500.0010,500.0010,125.003.6 601-49440-303ENGINEERING FEE1,706.50161.501,575.001,575.001,413.5010.3 601-49440-310SOFTWARE SUPPORT15.75.00775.00775.00775.00.0 601-49440-314SAFETY PROGRAM99.34105.281,435.001,435.001,329.727.3 601-49440-319GOPHER STATE NOTIFICATION72.9385.75785.00785.00699.2510.9 601-49440-321TELEPHONE378.03360.941,245.001,245.00884.0629.0 601-49440-331TRAVEL & CONFERENCE EXPENSE712.60882.001,050.001,050.00168.0084.0 601-49440-361GENERAL LIABILITY INSURANCE26,053.5425,922.7726,110.0026,110.00187.2399.3 601-49440-433DUES & MEMBERSHIPS1,291.301,093.271,250.001,250.00156.7387.5 601-49440-437REAL ESTATE TAXES324.00326.00350.00350.0024.0093.1 601-49440-442WATER PERMIT2,590.222,779.043,950.003,950.001,170.9670.4 601-49440-444ANNUAL WATER CONNECTION FEE4,520.007,180.0028,500.0028,500.0021,320.0025.2 601-49440-446LICENSE.0075.69210.00210.00134.3136.0 601-49440-550MOTOR VEHICLES16,645.0620,873.543,500.003,500.00( 17,373.54)596.4 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 5 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 WATER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT 601-49440-580OTHER EQUIPMENT.00.002,000.002,000.002,000.00.0 601-49440-581COMPUTER HARDWARE.002,469.00750.00750.00( 1,719.00)329.2 TOTAL WATER MAINTENANCE84,313.9670,235.01397,885.00397,885.00327,649.9917.7 WATER GENERAL ADMINISTRATION 601-49490-101WATER ADMIN SALARIES4,363.654,796.8022,395.0022,395.0017,598.2021.4 601-49490-120MN PAID LEAVE.0035.89125.00125.0089.1128.7 601-49490-121PERA CONTRIBUTIONS399.05411.231,680.001,680.001,268.7724.5 601-49490-122FICA CONTRIBUTIONS324.76365.781,285.001,285.00919.2228.5 601-49490-125MEDICARE CONTRIBUTIONS.00.00300.00300.00300.00.0 601-49490-130H SA- EMPLOYER CONTRIBUTION240.00250.00600.00600.00350.0041.7 601-49490-131HEALTH INSURANCE1,232.161,381.765,400.005,400.004,018.2425.6 601-49490-132DENTAL INSURANCE66.6466.64375.00375.00308.3617.8 601-49490-133LIFE INSURANCE5.325.3220.0020.0014.6826.6 601-49490-134DISABILTY INSURANCE61.1254.62225.00225.00170.3824.3 601-49490-151WORKERS COMP. INSUR. PREM..00.0055.0055.0055.00.0 601-49490-171CLOTHING ALLOWANCE.00.0015.0015.0015.00.0 601-49490-200OFFICE SUPPLIES66.63.00150.00150.00150.00.0 601-49490-201POSTAGE1,003.781,585.473,150.003,150.001,564.5350.3 601-49490-210OPERATING SUPPLIES443.61410.622,400.002,400.001,989.3817.1 601-49490-300PROFESSIONAL SERVICES.00.004,200.004,200.004,200.00.0 601-49490-310SOFTWARE SUPPORT2,723.953,031.075,935.005,935.002,903.9351.1 601-49490-317OTHER FEES.00.0015.0015.0015.00.0 601-49490-331TRAVEL & CONFERENCE EXPENSE7.002.90250.00250.00247.101.2 601-49490-340ADVERTISING.0018.34165.00165.00146.6611.1 601-49490-410RENTALS301.19257.87525.00525.00267.1349.1 601-49490-581COMPUTER HARDWARE.00425.07250.00250.00( 175.07)170.0 TOTAL WATER GENERAL ADMINISTRA 11,238.8613,099.3849,515.0049,515.0036,415.6226.5 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 6 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 WATER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT DEPRECIATION EXPENSE 601-49970-420DEPRECIATION.00( 472,538.39)475,000.00475,000.00947,538.39( 99.5) TOTAL DEPRECIATION EXPENSE.00( 472,538.39)475,000.00475,000.00947,538.39( 99.5) TOTAL FUND EXPENDITURES421,525.33536,617.251,882,645.001,882,645.001,346,027.7528.5 NET REVENUE OVER EXPENDITURES( 28,156.56)( 217,251.33)( 452,160.00)( 452,160.00)( 234,908.67)( 48.1) FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 7 CITYOFSTJOSEPH BALANCE SHEET APRIL 30, 2026 FUND 602 - SEWER FUND ASSETS 602-10199CASH3,788,067.84 602-10500ACCOUNTS RECEIVABLE269,894.62 602-16100LAND4,940.50 602-16200BUILDING1,295,253.80 602-16210ACCUMULATED DEPR. BUILDING( 402,928.56) 602-16300TREATMENT PLANT & LINE9,940,907.92 602-16310ACCUMULATED DEPR. PLANT & LINE( 3,553,062.73) 602-16320INTANGIBLE ASSETS9,180,409.24 602-16330ACCUMULATED DEPR. INTANGIBLES( 3,585,353.01) 602-16400MACHINERY & EQUIPMENT736,778.71 602-16410ACCUMULATED DEPR. MACH & EQUIP( 604,021.98) 602-16500CONSTRUCTION IN PROGRESS804,029.16 TOTAL ASSETS17,874,915.51 LIABILITIES AND EQUITY LIABILITIES 602-20200ACCOUNTS PAYABLE828.73 602-22500BONDS PAYABLE -CURRENT PORTION130,000.00 602-22510NOTES PAYABLE -CURRENT PORTION395,299.00 602-22530REVENUE BONDS PAYABLE410,000.00 602-22540NONCURRENT NOTES PAYABLE2,609,771.00 602-22840NET PENSION LIABILITY92,888.00 602-23200UNAMORTIZED BOND PREMIUM28,230.00 TOTAL LIABILITIES3,667,016.73 FUND EQUITY 602-25310UNASSIGNED FUND BALANCE5,998,533.60 602-26120CONTRIB. FROM DEVELOPERS1,735,533.93 602-26140CONTRIB. FROM CAPITAL FUNDS6,288,285.33 REVENUE OVER EXPENDITURES - YTD185,545.92 TOTAL FUND EQUITY14,207,898.78 TOTAL LIABILITIES AND EQUITY17,874,915.51 CITY OF ST JOSEPH REVENUES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 SEWER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT UTILITIES REVENUE 602-00000-36100SPECIAL ASSESSMENTS( 748.83)( 936.10)420.00420.001,356.10(222.9) 602-00000-36210INTEREST EARNINGS50,401.46( 3,250.43)36,750.0036,750.0040,000.43( 8.8) 602-00000-36220AMORTIZATION OF BOND PREMIUM.00( 11,847.61).00.0011,847.61.0 602-00000-36230CONTRIBUTIONS - GENERAL.00.00735.00735.00735.00.0 602-00000-37110SANITARY SEWER USE SERVICE313,305.06311,553.83942,400.00942,400.00630,846.1733.1 602-00000-37160PENALTIES AND FORFEITED DISC2,786.832,862.533,500.003,500.00637.4781.8 602-00000-37180SEWER FIXED CHARGE224,897.96227,162.18674,335.00674,335.00447,172.8233.7 602-00000-37190CONTRIBUTED REVENUE.00( 10,000.00).00.0010,000.00.0 602-00000-39201TRANSFERS FROM OTHER FUNDS16,182.56.0072,500.0072,500.0072,500.00.0 TOTAL UTILITIES REVENUE606,825.04515,544.401,730,640.001,730,640.001,215,095.6029.8 TOTAL FUND REVENUE606,825.04515,544.401,730,640.001,730,640.001,215,095.6029.8 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 8 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 SEWER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT BOND PAYMENT (P & I) 602-47100-600DEBT SERVICE - PRINCIPAL.00130,000.00135,000.00135,000.005,000.0096.3 602-47100-611BOND INTEREST.00( 54,824.00)11,000.0011,000.0065,824.00(498.4) 602-47100-620AGENT FEES.00.00380.00380.00380.00.0 TOTAL BOND PAYMENT (P & I).0075,176.00146,380.00146,380.0071,204.0051.4 OTHER FINANCING USES 602-49300-720TRANSFERS TO OTHER FUNDS29,050.0028,330.0028,330.0028,330.00.00100.0 TOTAL OTHER FINANCING USES29,050.0028,330.0028,330.0028,330.00.00100.0 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 9 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 SEWER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT SANITARY SEWER MAINTENANCE 602-49450-101SEWER DEPT SALARIES( 34,920.19)( 33,573.43)178,050.00178,050.00211,623.43( 18.9) 602-49450-112PENSION EXPENSE.00( 6,060.00).00.006,060.00.0 602-49450-120MN PAID LEAVE.00320.031,025.001,025.00704.9731.2 602-49450-121PERA CONTRIBUTIONS3,076.043,604.3513,150.0013,150.009,545.6527.4 602-49450-122FICA CONTRIBUTIONS( 2,728.65)( 2,646.49)10,615.0010,615.0013,261.49( 24.9) 602-49450-123DEFERRED COMP-EMPLOYER( 401.96)197.76995.00995.00797.2419.9 602-49450-125MEDICARE CONTRIBUTIONS.00.002,485.002,485.002,485.00.0 602-49450-130H S A- EMPLOYER CONTRIBUTION1,716.242,092.247,675.007,675.005,582.7627.3 602-49450-131HEALTH INSURANCE6,440.087,996.2035,070.0035,070.0027,073.8022.8 602-49450-132DENTAL INSURANCE420.72463.561,640.001,640.001,176.4428.3 602-49450-133LIFE INSURANCE37.8440.55145.00145.00104.4528.0 602-49450-134DISABILTY INSURANCE524.72474.501,700.001,700.001,225.5027.9 602-49450-151WORKERS COMP. INSUR. PREM..00.002,435.002,435.002,435.00.0 602-49450-171CLOTHING ALLOWANCE179.36427.011,150.001,150.00722.9937.1 602-49450-200OFFICE SUPPLIES.00102.85210.00210.00107.1549.0 602-49450-205MOTOR FUEL2,403.912,942.0111,095.0011,095.008,152.9926.5 602-49450-210OPERATING SUPPLIES817.21718.982,310.002,310.001,591.0231.1 602-49450-214SMALL TOOL & MINOR EQUIPMENT123.2269.991,575.001,575.001,505.014.4 602-49450-220REPAIR AND MAINTENANCE809.00105.007,875.007,875.007,770.001.3 602-49450-230VEHICLE REPAIR & MAINTENANCE2,294.371,504.334,725.004,725.003,220.6731.8 602-49450-300PROFESSIONAL SERVICES.00375.0010,500.0010,500.0010,125.003.6 602-49450-303ENGINEERING FEE.0048.601,050.001,050.001,001.404.6 602-49450-310SOFTWARE SUPPORT15.75.00775.00775.00775.00.0 602-49450-321TELEPHONE378.03360.901,000.001,000.00639.1036.1 602-49450-331TRAVEL & CONFERENCE EXPENSE362.60879.001,050.001,050.00171.0083.7 602-49450-361GENERAL LIABILITY INSURANCE12,298.5410,698.7712,000.0012,000.001,301.2389.2 602-49450-433DUES & MEMBERSHIPS1,039.30833.281,015.001,015.00181.7282.1 602-49450-446LICENSE.0096.18210.00210.00113.8245.8 602-49450-550MOTOR VEHICLES16,645.0628,074.793,500.003,500.00( 24,574.79)802.1 602-49450-580OTHER EQUIPMENT.00990.0054,500.0054,500.0053,510.001.8 602-49450-581COMPUTER HARDWARE.00978.60750.00750.00( 228.60)130.5 TOTAL SANITARY SEWER MAINTENA 11,531.1922,114.56370,275.00370,275.00348,160.446.0 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 10 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 SEWER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT LIFT STATION-BAKER STREET 602-49470-220REPAIR AND MAINTENANCE1,199.8016,756.202,625.002,625.00( 14,131.20)638.3 602-49470-300PROFESSIONAL SERVICES325.00325.00315.00315.00( 10.00)103.2 602-49470-381ELECTRIC UTILITIES1,276.551,198.464,255.004,255.003,056.5428.2 IMPROVEMENTS OTHER THAN BLDG602-49470-530.00.002,500.002,500.002,500.00.0 TOTAL LIFT STATION-BAKER STREET2,801.3518,279.669,695.009,695.00( 8,584.66)188.6 LIFT STATION-RIDGEWOOD/DBL 602-49471-220REPAIR AND MAINTENANCE.003.992,625.002,625.002,621.01.2 602-49471-300PROFESSIONAL SERVICES.00.00315.00315.00315.00.0 602-49471-381ELECTRIC UTILITIES436.25467.641,780.001,780.001,312.3626.3 602-49471-383GAS UTILITIES282.72241.84525.00525.00283.1646.1 IMPROVEMENTS OTHER THAN BLDG602-49471-530.007,718.37107,500.00107,500.0099,781.637.2 TOTAL LIFT STATION-RIDGEWOOD/DB 718.978,431.84112,745.00112,745.00104,313.167.5 LIFT STATION-NORTHLAND 602-49472-220REPAIR AND MAINTENANCE.00.002,625.002,625.002,625.00.0 602-49472-381ELECTRIC UTILITIES362.87348.161,315.001,315.00966.8426.5 IMPROVEMENTS OTHER THAN BLDG602-49472-530.00.002,500.002,500.002,500.00.0 TOTAL LIFT STATION-NORTHLAND362.87348.166,440.006,440.006,091.845.4 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 11 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 SEWER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT LIFT STATION-CR 121 602-49473-220REPAIR AND MAINTENANCE.00550.002,625.002,625.002,075.0021.0 602-49473-381ELECTRIC UTILITIES528.36965.112,000.002,000.001,034.8948.3 IMPROVEMENTS OTHER THAN BLDG602-49473-530.009,952.602,500.002,500.00( 7,452.60)398.1 TOTAL LIFT STATION-CR 121528.3611,467.717,125.007,125.00( 4,342.71)161.0 LIFT STATION-MAIN 602-49480-201POSTAGE.00.00210.00210.00210.00.0 602-49480-210OPERATING SUPPLIES.0013,978.4815,750.0015,750.001,771.5288.8 602-49480-220REPAIR AND MAINTENANCE1,750.43.005,250.005,250.005,250.00.0 602-49480-300PROFESSIONAL SERVICES325.00325.00164,925.00164,925.00164,600.00.2 602-49480-312TESTS2,906.003,259.0010,000.0010,000.006,741.0032.6 602-49480-321TELEPHONE1,424.731,444.033,915.003,915.002,470.9736.9 602-49480-381ELECTRIC UTILITIES1,403.921,690.806,735.006,735.005,044.2025.1 602-49480-383GAS UTILITIES391.79422.83685.00685.00262.1761.7 602-49480-419SEWER USE RENTAL61,121.1263,623.81315,000.00315,000.00251,376.1920.2 602-49480-580OTHER EQUIPMENT.00.003,000.003,000.003,000.00.0 602-49480-602ST. CLOUD DEBT SERVICE58,681.73588,258.06570,000.00570,000.00( 18,258.06)103.2 TOTAL LIFT STATION-MAIN128,004.72673,002.011,095,470.001,095,470.00422,467.9961.4 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 12 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 SEWER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT SEWER GENERAL ADMINISTRATION 602-49490-101SEWER ADMIN SALARIES4,363.654,796.8022,395.0022,395.0017,598.2021.4 602-49490-120MN PAID LEAVE.0035.89125.00125.0089.1128.7 602-49490-121PERA CONTRIBUTIONS399.05411.231,680.001,680.001,268.7724.5 602-49490-122FICA CONTRIBUTIONS324.76365.781,285.001,285.00919.2228.5 602-49490-125MEDICARE CONTRIBUTIONS.00.00300.00300.00300.00.0 602-49490-130H SA- EMPLOYER CONTRIBUTION240.00250.00600.00600.00350.0041.7 602-49490-131HEALTH INSURANCE1,232.161,381.765,400.005,400.004,018.2425.6 602-49490-132DENTAL INSURANCE66.6466.64375.00375.00308.3617.8 602-49490-133LIFE INSURANCE5.325.3220.0020.0014.6826.6 602-49490-134DISABILTY INSURANCE61.1254.62225.00225.00170.3824.3 602-49490-151WORKERS COMP. INSUR. PREM..00.0055.0055.0055.00.0 602-49490-171CLOTHING ALLOWANCE.00.0015.0015.0015.00.0 602-49490-200OFFICE SUPPLIES66.63.00315.00315.00315.00.0 602-49490-201POSTAGE1,003.791,585.473,150.003,150.001,564.5350.3 602-49490-210OPERATING SUPPLIES443.61410.621,750.001,750.001,339.3823.5 602-49490-300PROFESSIONAL SERVICES.00.004,200.004,200.004,200.00.0 602-49490-310SOFTWARE SUPPORT2,723.953,031.075,935.005,935.002,903.9351.1 602-49490-314SAFETY PROGRAM99.34105.281,435.001,435.001,329.727.3 602-49490-319GOPHER STATE NOTIFICATION72.9285.75525.00525.00439.2516.3 602-49490-331TRAVEL & CONFERENCE EXPENSE7.002.90250.00250.00247.101.2 602-49490-340ADVERTISING.0018.34.00.00( 18.34).0 602-49490-410RENTALS301.20257.87525.00525.00267.1349.1 602-49490-581COMPUTER HARDWARE.00425.07250.00250.00( 175.07)170.0 TOTAL SEWER GENERAL ADMINISTR 11,411.1413,290.4150,810.0050,810.0037,519.5926.2 DEPRECIATION EXPENSE 602-49970-420DEPRECIATION.00( 520,441.87)565,000.00565,000.001,085,441.87( 92.1) TOTAL DEPRECIATION EXPENSE.00( 520,441.87)565,000.00565,000.001,085,441.87( 92.1) FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 13 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 SEWER FUND PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT TOTAL FUND EXPENDITURES184,408.60329,998.482,392,270.002,392,270.002,062,271.5213.8 NET REVENUE OVER EXPENDITURES422,416.44185,545.92( 661,630.00)( 661,630.00)( 847,175.92)28.0 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 14 CITYOFSTJOSEPH BALANCE SHEET APRIL 30, 2026 FUND 603 - REFUSE/RECYCLING/COMPOST ASSETS 603-10199CASH313,166.52 603-10500ACCOUNTS RECEIVABLE96,917.58 603-16400MACHINERY & EQUIPMENT67,997.94 603-16410ACCUMULATED DEPR. MACH & EQUIP( 51,577.21) TOTAL ASSETS426,504.83 LIABILITIES AND EQUITY LIABILITIES 603-22840NET PENSION LIABILITY8,348.00 TOTAL LIABILITIES8,348.00 FUND EQUITY 603-25310UNASSIGNED FUND BALANCE291,810.25 603-26140CONTRIB. FROM CAPITAL FUNDS42,015.46 REVENUE OVER EXPENDITURES - YTD84,331.12 TOTAL FUND EQUITY418,156.83 TOTAL LIABILITIES AND EQUITY426,504.83 CITY OF ST JOSEPH REVENUES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 REFUSE/RECYCLING/COMPOST PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT UTILITIES REVENUE 603-00000-31320STATE SALES TAX5,808.026,606.47.00.00( 6,606.47).0 603-00000-32000LICENSES & PERMITS11,030.009,795.0035,320.0035,320.0025,525.0027.7 603-00000-34404PENALTIES AND FORFEIFTED DISC1,396.211,501.902,625.002,625.001,123.1057.2 603-00000-36100SPECIAL ASSESSMENTS( 368.17)( 264.75)210.00210.00474.75(126.1) 603-00000-36210INTEREST EARNINGS3,236.74( 250.61)4,000.004,000.004,250.61( 6.3) 603-00000-37105REFUSE COLLECTION CHARGES160,716.14178,569.52610,365.00610,365.00431,795.4829.3 603-00000-39201TRANSFERS FROM OTHER FUNDS24,850.0018,500.0018,500.0018,500.00.00100.0 TOTAL UTILITIES REVENUE206,668.94214,457.53671,020.00671,020.00456,562.4732.0 TOTAL FUND REVENUE206,668.94214,457.53671,020.00671,020.00456,562.4732.0 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 15 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 REFUSE/RECYCLING/COMPOST PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT WASTE COLLECTION 603-43230-101REFUSE SALARIES5,134.375,031.3526,865.0026,865.0021,833.6518.7 603-43230-112PENSION EXPENSE.00( 953.00).00.00953.00.0 603-43230-120MN PAID LEAVE.0037.69150.00150.00112.3125.1 603-43230-121PERA CONTRIBUTIONS455.89428.902,015.002,015.001,586.1021.3 603-43230-122FICA CONTRIBUTIONS379.10382.881,560.001,560.001,177.1224.5 603-43230-125MEDICARE CONTRIBUTIONS.00.00365.00365.00365.00.0 603-43230-130H SA- EMPLOYER CONTRIBUTION300.00365.41915.00915.00549.5939.9 603-43230-131HEALTH INSURANCE1,582.161,680.466,480.006,480.004,799.5425.9 603-43230-132DENTAL INSURANCE90.7286.40450.00450.00363.6019.2 603-43230-133LIFE INSURANCE5.765.6525.0025.0019.3522.6 603-43230-134DISABILTY INSURANCE75.9268.24270.00270.00201.7625.3 603-43230-151WORKERS COMP. INSUR. PREM..00.00205.00205.00205.00.0 603-43230-171CLOTHING ALLOWANCE.00.0015.0015.0015.00.0 603-43230-200OFFICE SUPPLIES66.63.00105.00105.00105.00.0 603-43230-201POSTAGE1,003.791,585.472,150.002,150.00564.5373.7 603-43230-210OPERATING SUPPLIES680.00700.00700.00700.00.00100.0 603-43230-300PROFESSIONAL SERVICES.00.0030,985.0030,985.0030,985.00.0 603-43230-302MAINTENANCE REIMBURSEMENT1,180.002,000.002,000.002,000.00.00100.0 603-43230-310SOFTWARE SUPPORT2,543.112,841.075,745.005,745.002,903.9349.5 603-43230-331TRAVEL & CONFERENCE EXPENSE7.002.89250.00250.00247.111.2 603-43230-340ADVERTISING.0018.34.00.00( 18.34).0 603-43230-384REFUSE DISPOSAL113,516.53118,087.91541,540.00541,540.00423,452.0921.8 603-43230-410RENTALS301.21257.881,200.001,200.00942.1221.5 603-43230-510LAND AND LAND IMPROVEMENTS.00.0015,000.0015,000.0015,000.00.0 603-43230-580OTHER EQUIPMENT.00.005,750.005,750.005,750.00.0 603-43230-581COMPUTER HARDWARE.00425.07250.00250.00( 175.07)170.0 TOTAL WASTE COLLECTION127,322.19133,052.61644,990.00644,990.00511,937.3920.6 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 16 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 REFUSE/RECYCLING/COMPOST PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT OTHER FINANCING USES 603-49300-720TRANSFERS TO OTHER FUNDS145.00200.00200.00200.00.00100.0 TOTAL OTHER FINANCING USES145.00200.00200.00200.00.00100.0 DEPRECIATION EXPENSE 603-49970-420DEPRECIATION.00( 3,126.20)3,200.003,200.006,326.20( 97.7) TOTAL DEPRECIATION EXPENSE.00( 3,126.20)3,200.003,200.006,326.20( 97.7) TOTAL FUND EXPENDITURES127,467.19130,126.41648,390.00648,390.00518,263.5920.1 NET REVENUE OVER EXPENDITURES79,201.7584,331.1222,630.0022,630.00( 61,701.12)372.7 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 17 CITYOFSTJOSEPH BALANCE SHEET APRIL 30, 2026 FUND 651 - STORM WATER UTILITY ASSETS 651-10199CASH848,686.69 651-10500ACCOUNTS RECEIVABLE37,285.04 651-16300TREATMENT PLANT & LINE7,331,027.05 651-16310ACCUMULATED DEPR. PLANT & LINE( 2,289,141.19) 651-16320INTANGIBLE ASSETS67,914.92 651-16400MACHINERY & EQUIPMENT172,248.21 651-16410ACCUMULATED DEPR. MACH & EQUIP( 123,284.66) TOTAL ASSETS6,044,736.06 LIABILITIES AND EQUITY LIABILITIES 651-22840NET PENSION LIABILITY17,563.00 TOTAL LIABILITIES17,563.00 FUND EQUITY 651-25310UNASSIGNED FUND BALANCE2,597,512.27 651-26100CONTRIB. FROM DEVELOPERS505,905.98 651-26140CONTRIB. FROM CAPITAL FUNDS2,716,542.00 REVENUE OVER EXPENDITURES - YTD207,212.81 TOTAL FUND EQUITY6,027,173.06 TOTAL LIABILITIES AND EQUITY6,044,736.06 CITY OF ST JOSEPH REVENUES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 STORM WATER UTILITY PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT UTILITIES REVENUE 1252. 651-00000-36100SPECIAL ASSESSMENTS( 4,242.75)( 2,505.04)200.00200.002,705.04 651-00000-36210INTEREST EARNINGS9,970.60( 595.70)6,000.006,000.006,595.70( 9.9) 651-00000-37110STORM WATER USE SERVICE73,420.7775,719.24231,565.00231,565.00155,845.7632.7 651-00000-37160PENALTIES AND FORFEIFTED DISC452.32466.881,630.001,630.001,163.1228.6 TOTAL UTILITIES REVENUE79,600.9473,085.38239,395.00239,395.00166,309.6230.5 TOTAL FUND REVENUE79,600.9473,085.38239,395.00239,395.00166,309.6230.5 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:41PM PAGE: 18 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 STORM WATER UTILITY PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT OTHER FINANCING USES 651-49300-720TRANSFERS TO OTHER FUNDS18,855.0018,630.0018,630.0018,630.00.00100.0 TOTAL OTHER FINANCING USES18,855.0018,630.0018,630.0018,630.00.00100.0 STORM WATER GENERAL ADMIN 651-49490-101STORMWATER ADMIN SALARIES3,272.763,597.5913,435.0013,435.009,837.4126.8 651-49490-120MN PAID LEAVE.0026.9175.0075.0048.0935.9 651-49490-121PERA CONTRIBUTIONS299.26308.401,010.001,010.00701.6030.5 651-49490-122FICA CONTRIBUTIONS243.60274.37770.00770.00495.6335.6 651-49490-125MEDICARE CONTRIBUTIONS.00.00180.00180.00180.00.0 651-49490-130H SA- EMPLOYER CONTRIBUTION180.00187.50360.00360.00172.5052.1 651-49490-131HEALTH INSURANCE924.161,036.323,240.003,240.002,203.6832.0 651-49490-132DENTAL INSURANCE50.0050.00225.00225.00175.0022.2 651-49490-133LIFE INSURANCE4.004.0010.0010.006.0040.0 651-49490-134DISABILTY INSURANCE45.8440.99135.00135.0094.0130.4 651-49490-151WORKERS COMP. INSUR. PREM..00.0030.0030.0030.00.0 651-49490-171CLOTHING ALLOWANCE.00.0010.0010.0010.00.0 651-49490-200OFFICE SUPPLIES66.63.00105.00105.00105.00.0 651-49490-201POSTAGE920.461,485.48.00.00( 1,485.48).0 651-49490-300PROFESSIONAL SERVICES.001,636.00.00.00( 1,636.00).0 651-49490-310SOFTWARE SUPPORT2,369.762,609.005,170.005,170.002,561.0050.5 651-49490-331TRAVEL & CONFERENCE EXPENSE590.252.18150.00150.00147.821.5 651-49490-340ADVERTISING.0018.35.00.00( 18.35).0 651-49490-581COMPUTER HARDWARE.00425.07250.00250.00( 175.07)170.0 TOTAL STORM WATER GENERAL ADM 8,966.7211,702.1625,155.0025,155.0013,452.8446.5 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:42PM PAGE: 19 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 STORM WATER UTILITY PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT STORM WATER MAINTENANCE 651-49900-101STORMWATER DEPT SALARIES4,803.98156.5550,400.0050,400.0050,243.45.3 651-49900-112PENSION EXPENSE.00( 11,022.00).00.0011,022.00.0 651-49900-120MN PAID LEAVE.0028.10290.00290.00261.909.7 651-49900-121PERA CONTRIBUTIONS586.56284.463,700.003,700.003,415.547.7 651-49900-122FICA CONTRIBUTIONS361.147.662,990.002,990.002,982.34.3 651-49900-123DEFERRED COMP-EMPLOYER.00113.00485.00485.00372.0023.3 651-49900-125MEDICARE CONTRIBUTIONS.00.00700.00700.00700.00.0 651-49900-130H S A- EMPLOYER CONTRIBUTION229.45300.561,850.001,850.001,549.4416.3 651-49900-131HEALTH INSURANCE700.001,712.509,750.009,750.008,037.5017.6 651-49900-132DENTAL INSURANCE48.16102.46375.00375.00272.5427.3 651-49900-133LIFE INSURANCE6.134.1440.0040.0035.8610.4 651-49900-134DISABILTY INSURANCE62.00116.46480.00480.00363.5424.3 651-49900-151WORKERS COMP. INSUR. PREM..00.00660.00660.00660.00.0 651-49900-171CLOTHING ALLOWANCE15.1938.53.00.00( 38.53).0 651-49900-210OPERATING SUPPLIES.00.001,680.001,680.001,680.00.0 651-49900-220REPAIR AND MAINTENANCE.00.0010,000.0010,000.0010,000.00.0 651-49900-300PROFESSIONAL SERVICES400.00700.00250.00250.00( 450.00)280.0 651-49900-302MAINTENANCE REIMBURSEMENT14,000.0014,000.0014,000.0014,000.00.00100.0 651-49900-303ENGINEERING FEE275.501,245.005,250.005,250.004,005.0023.7 651-49900-308COMMUNITY PROGRAMS1,620.00.001,890.001,890.001,890.00.0 651-49900-310SOFTWARE SUPPORT.00.001,760.001,760.001,760.00.0 651-49900-321TELEPHONE264.21255.271,025.001,025.00769.7324.9 651-49900-331TRAVEL & CONFERENCE EXPENSE.00.00250.00250.00250.00.0 651-49900-340ADVERTISING.00.0080.0080.0080.00.0 651-49900-410RENTALS.00.00260.00260.00260.00.0 IMPROVEMENTS OTHER THAN BLDG651-49900-530.00.0010,500.0010,500.0010,500.00.0 651-49900-580OTHER EQUIPMENT.00.0016,800.0016,800.0016,800.00.0 TOTAL STORM WATER MAINTENANCE 23,372.328,042.69135,465.00135,465.00127,422.315.9 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:42PM PAGE: 20 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 STORM WATER UTILITY PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT DEPRECIATION EXPENSE 651-49970-420DEPRECIATION.00( 172,502.28)170,000.00170,000.00342,502.28(101.5) TOTAL DEPRECIATION EXPENSE.00( 172,502.28)170,000.00170,000.00342,502.28(101.5) TOTAL FUND EXPENDITURES51,194.04( 134,127.43)349,250.00349,250.00483,377.43( 38.4) NET REVENUE OVER EXPENDITURES28,406.90207,212.81( 109,855.00)( 109,855.00)( 317,067.81)188.6 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:42PM PAGE: 21 CITYOFSTJOSEPH BALANCE SHEET APRIL 30, 2026 FUND 652 - STREET LIGHT UTILITY ASSETS 652-10199CASH154,330.56 652-10500ACCOUNTS RECEIVABLE14,903.38 TOTAL ASSETS169,233.94 LIABILITIES AND EQUITY LIABILITIES 652-22840NET PENSION LIABILITY4,178.00 TOTAL LIABILITIES4,178.00 FUND EQUITY 652-25310UNASSIGNED FUND BALANCE167,071.88 REVENUE OVER EXPENDITURES - YTD( 2,015.94) TOTAL FUND EQUITY165,055.94 TOTAL LIABILITIES AND EQUITY169,233.94 CITY OF ST JOSEPH REVENUES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 STREET LIGHT UTILITY PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT UTILITIES REVENUE 652-00000-36100SPECIAL ASSESSMENTS( 36.30)( 51.19)50.0050.00101.19(102.4) 652-00000-36210INTEREST EARNINGS2,085.41( 132.37)3,500.003,500.003,632.37( 3.8) 652-00000-37110USAGE RATE29,419.8229,911.9492,090.0092,090.0062,178.0632.5 652-00000-37160PENALTIES AND FORFEITED DISC148.10157.20400.00400.00242.8039.3 TOTAL UTILITIES REVENUE31,617.0329,885.5896,040.0096,040.0066,154.4231.1 TOTAL FUND REVENUE31,617.0329,885.5896,040.0096,040.0066,154.4231.1 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:42PM PAGE: 22 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 STREET LIGHT UTILITY PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT STREET LIGHTING 652-43160-101STREET LIGHT SALARIES3,367.233,117.6018,740.0018,740.0015,622.4016.6 652-43160-112PENSION EXPENSE.00453.00.00.00( 453.00).0 652-43160-120MN PAID LEAVE.0023.68105.00105.0081.3222.6 652-43160-121PERA CONTRIBUTIONS290.20255.441,390.001,390.001,134.5618.4 652-43160-122FICA CONTRIBUTIONS251.71236.611,090.001,090.00853.3921.7 652-43160-123DEFERRED COMP.0028.25345.00345.00316.758.2 652-43160-125MEDICARE CONTRIBUTIONS.00.00255.00255.00255.00.0 652-43160-130H S A- EMPLOYER CONTRIBUTION349.46275.75240.00240.00( 35.75)114.9 652-43160-131HEALTH INSURANCE1,316.001,173.304,110.004,110.002,936.7028.6 652-43160-132DENTAL INSURANCE81.5263.40225.00225.00161.6028.2 652-43160-133LIFE INSURANCE4.183.6815.0015.0011.3224.5 652-43160-134DISABILTY INSURANCE61.5254.54185.00185.00130.4629.5 652-43160-151WORKERS COMP. INSUR. PREM..00.00275.00275.00275.00.0 652-43160-171CLOTHING ALLOWANCE.00.005.005.005.00.0 652-43160-201POSTAGE920.461,485.47.00.00( 1,485.47).0 652-43160-220REPAIR AND MAINTENANCE.002,287.634,200.004,200.001,912.3754.5 652-43160-310SOFTWARE SUPPORT354.18492.38850.00850.00357.6257.9 652-43160-331TRAVEL & CONFERENCE EXPENSE3.501.45105.00105.00103.551.4 652-43160-340ADVERTISING.0018.34.00.00( 18.34).0 652-43160-386STREET LIGHTING14,068.8917,679.4556,825.0056,825.0039,145.5531.1 652-43160-387HOLIDAY DECORATIONS.00.002,000.002,000.002,000.00.0 IMPROVEMENTS OTHER THAN BLDG652-43160-530.0022.9815,000.0015,000.0014,977.02.2 652-43160-580OTHER EQUIPMENT.004,000.00750.00750.00( 3,250.00)533.3 TOTAL STREET LIGHTING21,068.8531,672.95106,710.00106,710.0075,037.0529.7 OTHER FINANCING USES 652-49300-720TRANSFERS TO OTHER FUNDS950.00800.00800.00800.00.00100.0 TOTAL OTHER FINANCING USES950.00800.00800.00800.00.00100.0 FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:42PM PAGE: 23 CITY OF ST JOSEPH EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 4 MONTHS ENDING APRIL 30, 2026 STREET LIGHT UTILITY PRIOR YTD AMOUNTYTD ACTUALORIGINAL BUDGETBUDGETUNEXPENDEDPCNT DEPARTMENT 49970 652-49970-420DEPRECIATION EXPENSE.00( 571.43).00.00571.43.0 TOTAL DEPARTMENT 49970.00( 571.43).00.00571.43.0 TOTAL FUND EXPENDITURES22,018.8531,901.52107,510.00107,510.0075,608.4829.7 NET REVENUE OVER EXPENDITURES9,598.18( 2,015.94)( 11,470.00)( 11,470.00)( 9,454.06)( 17.6) FOR ADMINISTRATION USE ONLY33 % OF THE FISCAL YEAR HAS ELAPSED05/14/2026 03:42PM PAGE: 24 STAFF MEMO Prepared by: City Clerk Meeting Date: 5/18/26 ☐Consent Agenda Item ☒Regular Agenda Item Agenda Item # 4e Reviewed by: Item: Special Event Permit – Rock 4 Alzheimers ACTION REQUESTED Motion to approve the special event permit submitted by Bad Habit Brewing Company for Rock 4 Alzheimer’s on September 13, 2026; requiring 1 off-duty officer be present. BOARD/COMMISSION/COMMITTEE RECOMMENDATION N/A PREVIOUS COUNCIL ACTION N/A REFERENCE AND BACKGROUND Bad Habit Brewing Company submitted their special event permit request for Rock 4 Alzheimer’s. The event will be held on September 13, 2026. The event will be held from Noon – 9:00PM. Staff reviewed the request and Chief Pfannenstein is requiring 1 off-duty officers to be at the event. A map of the event is included in the packet. The entire event will remain on the applicant's property so no street/alley closures are needed. BUDGET IMPACT STAFF RECOMMENDED ACTION Motion to approve the special event permit submitted by Bad Habit Brewing Company for Rock 4 Alzheimer’s on September 13, 2026; requiring 1 off-duty officer be present. SUPPORTING DATA/ATTACHMENTS •Application, Map of Event STAFF MEMO Prepared by: Nate Keller, CD Director Meeting Date: May 18th, 2026 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4f Reviewed by: Item: Appointment of Craig Hern to Planning Commission Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐ Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED Consent gives automatic approval of appointment of Craig Hern to Planning Commission. If item is pulled from consent staff requests a motion on the appointment. BOARD/COMMISSION/COMMITTEE RECOMMENDATION N/A PREVIOUS COUNCIL ACTION Appointments are made by Mayor annually and as needed REFERENCE AND BACKGROUND Planning Commission member Isabella Margl has notified staff and the Mayor that she is moving out of St. Joseph. Mayor recommends appointing Craig Hern to fufill the remaining term of Margl which is set to expire end of 2026 (may be reappointed for another term in 2027). Planning Commission terms are two years. Margl also serves on the Joint Planning Board and the PC will provide a recommendation to fill her spot on the Joint Planning Board at their June meeting. BUDGET IMPACT All PC members receive a stipend for attending meetings. This is an already budgeted item. STAFF RECOMMENDED ACTION N/A SUPPORTING DATA/ATTACHMENTS Appointment spreadsheet STAFF MEMO Prepared by: City Clerk Meeting Date: 5/18/26 ☐Consent Agenda Item ☒Regular Agenda Item Agenda Item # 5 Reviewed by: City Administrator Item: Public Hearing – Special Event Request, Rocktoberfest ACTION REQUESTED Conduct public hearing Motion to approve the special event permit for Rocktoberfest on Saturday, September 26, 2026. BOARD/COMMISSION/COMMITTEE RECOMMENDATION N/A PREVIOUS COUNCIL ACTION N/A REFERENCE AND BACKGROUND The St. Joseph Booster Club submitted a special event application for Rocktoberfest. The event will occur on Saturday, September 26, 2026 from 1PM-11PM. The event will take place in the church parking lot on the corner of MN Street and College Avenue. The street closure requested is the same as last year with the closure of MN St from College Ave to 1st Ave NE/SE as well as Collebe Ave from MN Street to the northern entrance of the south parking lot. Soft closures will be initiated at Baker Street and on the eastern side of the alleyway on 1st Ave SE as indicated on the attached map. Two off-duty officers will attend the event. The organziers are also having a kid friendly event on Friday, Sept. 25th. No street closures are requested for this portion and the event will conclude by 9PM. BUDGET IMPACT Off-duty officer expenses will be paid by the applicant. STAFF RECOMMENDED ACTION Approve the special event permit for Roctoberfest on Saturday, September 26, 2026 as presented which includes the outdoor/temporary liquor license and having 2 off-duty police officers be in attendance. SUPPORTING DATA/ATTACHMENTS Special Event Application Event Information Site Plan Street Closure Map Temporary On-Sale Application Red Line = Hard Closure Yellow Line = Soft Closure STAFF MEMO Prepared by: Lori Bartlett, Finance Director Meeting Date: 5-18-26 ☐Consent Agenda Item ☒Regular Agenda Item Agenda Item # Reviewed by: David Murphy, Administrator Item: 2025 Audited Financial Statements Council Priority: ☐ Dispensary ☐ Industrial Park Expansion ☐ Housing ☐Public Safety Facility/Safe Crossing of CSAH 75 ☒ N/A ACTION REQUESTED Consider acceptance of the 2025 audited financial statements. BOARD/COMMISSION/COMMITTEE RECOMMENDATION None PREVIOUS COUNCIL ACTION Council hired Creative Planning (also known as BerganKDV) to perform a financial audit of the city’s 2025 financial statements. This is the third year of the three-year engagement contract. REFERENCE AND BACKGROUND Annually MN State Statute and the MN Office of the State Auditor requires the City to have an independent financial audit completed. The audit consists of reviewing internal controls, policies, adherence to GASB, test compliance of MN Statutes and compliance with federal grants. BerganKDV attestation team began audit work in the end of 2025 through May 2026 for the 2025 audited financial statements. The Partner, Janel Bitzan, Manager, Brittney Lemke, and Supervisor, Victoria De Ferraris, met with David and Lori to report their findings on May 4th. Janel will be present at the council meeting to report their findings to the city council, staff and public. The only finding they reported is a material weakness for the lack of segregation of accounting duties as in past years. Due to costs to hire enough employees to eliminate this finding, council and staff have agreed to monitor policies and internal controls to mitigate misstatements and misappropriation of city funds. The audited financial statements can be cumbersome to read. Although the entire report is important for the users of the statements, the Management Discussion and Analysis (MD&A) on pages 7-13 provides a nice overview of the financial highlights for 2025 and the economic factors that will affect the upcoming years. City staff prepared the MD&A analysis. The report included with the financial statements titled “Communications Letter” is an analysis of the financial conditions of the City and was prepared by BerganKDV. BUDGET IMPACT Informational only STAFF RECOMMENDED ACTION Accept the 2025 audited financial statements. SUPPORTING DATA/ATTACHMENTS 2025 Audited Financial Statements 2025 Communications Letter 07 City of St. Joseph Communications Letter December 31, 2025 City of St. Joseph Table of Contents Report on Matters Identified as a Result of the Audit of the Basic Financial Statements 1 Material Weakness 3 Required Communication 4 Financial Analysis 9 Emerging Issues 23 1 Report on Matters Identified as a Result of the Audit of the Basic Financial Statements Honorable Mayor, Members of the City Council and Management City of St. Joseph St. Joseph, Minnesota In planning and performing our audit of the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Joseph, Minnesota, as of and for the year ended December 31, 2025, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that have not been identified. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error, or fraud may occur and not be detected by such controls. However, as discussed below, we identified a certain deficiency in internal control that we consider to be a material weakness. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the City's basic financial statements will not be prevented, or detected and corrected, on a timely basis. A reasonable possibility exists when the likelihood of an event occurring is either reasonably possible or probable as defined as follows: • Reasonably possible. The chance of the future event or events occurring is more than remote but less than likely. • Probable. The future event or events are likely to occur. The material weakness identified is stated within this letter. The accompanying memorandum also includes financial analysis provided as a basis for discussion. The matters discussed herein were considered by us during our audit and they do not modify the opinion expressed in our Independent Auditor's Report dated May 4, 2026, on such statements. 2 The purpose of this communication, which is an integral part of our audit, is to describe for the Members of the City Council, management, and others within the City and state oversight agencies the scope of our testing of internal control and the results of that testing. Accordingly, this communication is not intended to be and should not be used for any other purpose. St. Cloud, Minnesota May 4, 2026 3 City of St. Joseph Material Weakness Improve Segregation of Accounting Duties Adequate segregation of accounting duties is in place when the four areas of a transaction have been separated: authorization, custody, recording, and reconciliation. As part of this year's audit, we reviewed the City's documentation of its internal control over significant areas including: cash receipts, cash disbursements, capital assets, payroll, and utility billing. The lack of adequate segregation of accounting duties could adversely affect the City's ability to initiate, record, process, and report financial data consistent with the assertions of management in the financial statements. Some of the areas in which we noticed a lack of segregation or an overlap in duties are as follows: Cash Receipts The Administrative Assistant enters cash and checks into the point-of-sale system and reconciles daily receipts. The Account Technician sends late notices/calculate penalties. The Police Clerk records police receipts and receives payments. The Lead Records Technician reconciles the collections. A police officer takes the deposit to the bank. Cash Disbursements The Finance Director also is an authorized signer and has access to the Mayor's electronic signature. At year-end, the Finance Director reconciles and records contracts payable. The City Administrator reviews and approves checks for payment. Capital Assets The Finance Director records, processes, reconciles, and posts journal entries related to capital assets. Department heads review their listing for accuracy. Payroll The Finance Technician reconciles employee's time, processes, and posts payroll, generates a payroll report, distributes paystubs to employees, and posts the journal entries related to payroll. In addition, this same employee reconciles payroll accruals. The Finance Director reviews payroll reports and time off balances and calculates compensated absences balances for the audit. Utility Billing The Account Technician enters new accounts into the utility billing system and uploads meter readings via interfacing with electronic readers. The Account Technician enters any rate changes to the system and can enter manual adjustments. The Account Technician calculates and enters final bills, prints, and mails utility bills, reconciles receipts to billed amounts, and enters receipts batches. The Finance Director approves adjustments and rate changes, and spots check individual utility bill calculations. Cash Reconciliation and Access The Finance Director performs the above noted responsibilities, while also reconciling cash, and generating manual journal entries. We recommend management and the City Council review the above deficiencies and improve segregation of accounting duties where possible to build upon the control environment. We also recommend the City closely follow its internal control plan and follow through with the control activities that have been designed. 4 City of St. Joseph Required Communication We have audited the basic financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended December 31, 2025. Professional standards require that we advise you of the following matters related to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter, our responsibility, as described by professional standards, is to form and express opinions about whether the basic financial statements prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the basic financial statements does not relieve you or management of its respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the basic financial statements are free of material misstatement. An audit of the basic financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City 's internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgement, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Generally accepted accounting principles provide for certain Required Supplementary Information (RSI) to supplement the basic financial statements. Our responsibility with respect to the RSI, which supplements the basic financial statements, is to apply certain limited procedures in accordance with generally accepted auditing standards. However, the RSI was not audited and, because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance, we do not express an opinion or provide any assurance on the RSI. Our responsibility for the supplementary information accompanying the basic financial statements, as described by professional standards, is to evaluate the presentation of the supplementary information in relation to the basic financial statements as a whole and to report on whether the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Our Responsibility in Relation to Government Auditing Standards As communicated in our engagement letter, part of obtaining reasonable assurance about whether the basic financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of basic financial statement amounts. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. 5 City of St. Joseph Required Communication Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied with all relevant ethical requirements regarding independence. Significant Risks We addressed the following significant risks of material misstatement identified in our planning procedures: • Misappropriation of Assets and Segregation of Duties - If duties cannot be appropriately segregated within the accounting and finance department, there is a risk of unauthorized disbursements being made from the City and adjustments being made to the City's general ledger. In addition, generally, this results in less review taking place as transactions are recorded in the financial statements. • Management Override of Internal Control - Management override of internal control is considered a risk in substantially all engagements as management may be incentivized to produce better results. • Improper Revenue Recognition - Revenue recognition is considered a fraud risk on substantially all engagements as it generally has a significant impact on the results of the governments operations. In addition, complexities exist surrounding the calculation and recording of various revenue sources. • Pension Valuation – Net pension liability, deferred outflows of resources related to pensions, and deferred inflows of resources related to pensions are generally material to the financial statements and involve significant estimates. • Lease Receivable and Deferred Inflows – The lease receivable and related deferred inflows are material to the financial statements and involve significant estimates and judgements determined by the City related to discount rate, lease term, and lease payments. Qualitative Aspects of the City's Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in the notes to the basic financial statements. There have been no initial selection of accounting policies and no changes to significant accounting policies or their application during 2025. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. 6 City of St. Joseph Required Communication Qualitative Aspects of the City's Significant Accounting Practices (Continued) Significant Accounting Estimates and Related Disclosures Accounting estimates and related disclosures are an integral part of the basic financial statements prepared by management and are based on management's current judgements. Those judgements are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the basic financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgements. The most sensitive estimates affecting the basic financial statements relate to: Net Pension Liability, Deferred Outflows of Resources Related to Pensions and Deferred Inflows of Resources Related to Pensions – These balances are based on an allocation by the pension plans using estimates based on contributions. Lease Liability and Right-to-Use Lease Assets – These balances are based on estimates and judgments determined by the City related to the discount rate, lease term, and lease payments. We evaluated the key factors and assumptions used to develop the accounting estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units. Financial Statement Disclosures Certain basic financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The basic financial statement disclosures are neutral, consistent, and clear. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For the purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effects of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the basic financial statements taken as a whole and each applicable opinion unit. The following bullet points summarize the uncorrected financial statement misstatement(s) whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the financial statements taken as a whole and each applicable opinion unit. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit. • Prepaid expenditures • Lease liability and leased asset • Pension in-kind revenue and expenditure 7 City of St. Joseph Required Communication Uncorrected and Corrected Misstatements (Continued) • OPEB liability • Inventory • Depreciation expense In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the basic financial statements taken as a whole. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City's basic financial statements or the auditor's report. No such disagreements arose during the course of our audit. Representations Requested from Management We have requested certain written representations from management, which are included in the management representation letter. Management's Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management has informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City's auditor. Other Information Included in Annual Reports Pursuant to professional standards, our responsibility as auditors for other information, whether financial or non-financial, included in the City's annual reports, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. We applied certain limited procedures to the RSI that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. 8 City of St. Joseph Required Communication Other Information Included in Annual Reports (Continued) With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the basic financial statements or to the basic financial statements themselves. Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the basic financial statements. 9 City of St. Joseph Financial Analysis The following pages provide graphic representation of select data pertaining to the financial position and operations of the City for the past five years. Our analysis of each graph is presented to provide a basis for discussion of past performance and how implementing certain changes may enhance future performance. We suggest you view each graph and document if our analysis is consistent with yours. A subsequent discussion of this information should be useful for planning purposes. Tax Capacity, Levy, and Rates The taxable tax capacity increased at a lower rate than the increase in the certified levy in 2025, causing the tax rate to increase to 62.69%. $5,538,243 $5,802,836 $6,674,317 $7,262,829 $7,791,602 $2,957,875 $3,279,949 $3,728,431 $4,097,169 $4,658,289 53.41% 56.52%55.86%56.41% 62.69% 97.74%97.96%99.55%98.49%99.79% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 2021 2022 2023 2024 2025 Tax Capacity, Levy, and Rates Taxable Tax Capacity Certified Tax Levy Tax Rate Collection Rate 10 City of St. Joseph Financial Analysis General Fund For the year ended December 31, 2025, General Fund revenues exceeded expenditures by $703. In addition to this, the fund had transfers in of $12,866 from other funds, transfers out of $159,715 to other funds, and sale of equipment of $29,065 resulting in a decrease in the General Fund balance of $117,081. Of the City's General Fund balance at December 31, 2025, $1,512,057 was assigned for specific expenditures, such as police forfeiture, severance pay and capital outlay reserves. The City had $85,187 of its fund balance restricted for PEG access and public safety aid. The unassigned portion of the fund balance, which includes monies set aside for working capital, totaled $3,445,677 and represents approximately 7 months of 2025 General Fund expenditures. The City's target General Fund balance is to maintain working capital, a portion of the unassigned balance, in the amount of four to six months of the next year's budgeted expenditures of the General Fund. The graphs below and on the following page show the City's General Fund balance and the General Fund revenues and expenditures for the last five years. $2,082,669 $2,208,806 $2,155,118 $3,138,840 $3,445,677 $2,098,456 $1,779,231 $2,105,740 $1,840,752 $1,472,421 $328,899 $140,774 $85,187 $3,274 $17,500 $17,500 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2021 2022 2023 2024 2025 General Fund Balance Unassigned Assigned for Fire Fund Assigned for Other Purposes Restricted Nonspendable 11 City of St. Joseph Financial Analysis General Fund (Continued) 2021 2022 2023 2024 2025 Total Revenues $4,283,181 $4,538,185 $5,582,386 $5,449,027 $5,851,007 Total Expenditures $3,676,354 $4,566,498 $5,160,200 $5,476,402 $5,850,304 Fund Balance 4,189,204 4,016,266 4,607,257 5,120,366 5,003,285 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 During the year ended December 31, 2025, the City's General Fund revenues increased $401,980, or 7.4%, from 2024, and expenditures increased by $373,902, or 6.8%. These changes in revenues and expenditures will be discussed by source and function, respectively, on the following pages. As discussed earlier, fund balance did decrease $117,081 from 2024 to 2025. Fund balance has increased $814,081, or 19.4%, since 2021. 12 City of St. Joseph Financial Analysis General Fund Revenues 2021 2022 2023 2024 2025 Taxes 2,115,511$ 2,102,942$ 2,511,452$ 2,568,726$ 2,957,875$ Special assessments 57,840 4,891 31,864 59,979 52,727 Franchise fees 137,382 140,259 140,406 187,873 225,799 Licenses and permits 151,811 307,357 437,341 336,464 283,499 Intergovernmental 1,570,692 1,883,220 2,021,446 1,936,261 1,914,888 Charges for services 98,913 53,057 66,130 65,544 79,481 Fines and forfeitures 87,381 78,924 121,477 55,130 60,792 Miscellaneous 63,651 (32,465) 252,270 239,050 275,946 Total Revenues 4,283,181$ 4,538,185$ 5,582,386$ 5,449,027$ 5,851,007$ As discussed earlier, the City's revenue increased $401,980 from 2024 to 2025. Taxes revenues accounted for the largest increase from the prior year with an increase of $389,149, or 15.1% due to an increase in the levy. This was partially offset by a decrease of $52,965, or 15.7% in licenses and permits revenue due to less permit activity in 2025. All other revenues remained consistent with the prior year. Total revenues have grown $1,567,826 since 2021, an increase of 36.6%. The largest variances between the types of revenue over the five-year period have been the increases in property taxes, franchise fees, licenses and permits, intergovernmental, and miscellaneous revenues. Other revenues have stayed relatively consistent over that timeframe. The pie charts on the following page show the General Fund sources of revenues for 2025 and 2024 as a percentage of total revenues. The allocation of sources of revenue fluctuates minimally from year- to-year. Intergovernmental revenue and taxes account for the two largest components of revenues, making up 33% and 50% of the total in 2025, respectively. The total of these two categories accounts for approximately 83% and 83% of General Fund revenues for 2025 and 2024, respectively. 13 City of St. Joseph Financial Analysis General Fund Revenues (Continued) 14 City of St. Joseph Financial Analysis General Fund Expenditures 2021 2022 2023 2024 2025 General government 997,357$ 1,078,866$ 1,200,119$ 1,275,664$ 1,282,427$ Public safety 1,657,557 1,701,616 2,023,784 2,219,673 2,330,404 Public works 443,748 716,500 745,955 693,138 741,345 Culture and recreation 362,548 574,640 733,263 714,445 539,980 Capital outlay 215,144 494,876 457,079 573,482 956,148 Total Expenditures 3,676,354$ 4,566,498$ 5,160,200$ 5,476,402$ 5,850,304$ As discussed earlier, General Fund expenditures increased $373,902, or 6.8%. The most significant increases in expenditures were in public safety, public works, and capital outlay; while culture and recreation decreased. Public safety expenditures increased by $110,731. This increase was primarily due to the City hiring additional staff, increased benefit costs, and wage rate increases. Public works expenditures increased by $48,207. This increase was primarily due to more ice and snow removal needed during 2025. Capital outlay expenditures increased by $401,980 with additional capital purchases in 2025, including the site for a future public safety facility. Culture and recreation expenditures decreased due to the disc golf course project in 2024. The pie charts on the following page show the General Fund expenditures by function for 2025 and 2024 as a percentage of total expenditures. The allocation of expenditures by function vary from year to year. Public safety remains the largest component of General Fund expenditures, representing 40% of total expenditures, down from 41% in 2024. 15 City of St. Joseph Financial Analysis General Fund Expenditures (Continued) General government 22% Public safety 40% Public works 13% Culture and recreation 9% Capital outlay 16% General government 23%Public safety 41% Public works 13% Culture and recreation 13% Capital outlay 10% 16 City of St. Joseph Financial Analysis General Fund Budget The table below illustrates the General Fund budget and actual for 2025 revenues and expenditures by function. Original Actual Amounts Revenues Taxes 2,962,824$ 2,957,875$ (4,949)$ Special assessments 5,500 52,727 47,227 Franchise fees 206,590 225,799 19,209 Licenses and permits 208,720 283,499 74,779 Intergovernmental 1,753,651 1,914,888 161,237 Charges for services 64,740 79,481 14,741 Fines and forfeitures 66,000 60,792 (5,208) Miscellaneous 104,020 275,946 171,926 Total revenues 5,372,045 5,851,007 478,962 Expenditures General government 1,307,825 1,282,427 (25,398) Public safety 2,578,570 2,330,404 (248,166) Public works 732,480 741,345 8,865 Culture and recreation 563,015 539,980 (23,035) Capital outlay 392,769 956,148 563,379 Total expenditures 5,574,659 5,850,304 275,645 Excess of receipts over (under) disbursements (202,614) 703 203,317 Other Financing Sources (Uses) Sale of property 21,500 29,065 7,565 Transfers in 11,205 12,866 1,661 Transfers out (13,500) (159,715) (146,215) Total other financing sources 19,205 (117,784) (136,989) Net change in fund balance (183,409)$ (117,081)$ 66,328$ and Final Budget Variance with Final Budget - Over (Under) 17 City of St. Joseph Financial Analysis General Fund Budget (Continued) The City's had no updates to their original budget throughout the year. Budgeted revenues were $5.4 million, budgeted expenditures were $5.6 million, and other financing sources and uses of $19,205. General Fund revenues were over budget by $478,962. Licenses and permits revenue were over budget due to conservative budgeting. Intergovernmental revenue were over budget due to the city receiving some grants that were not budgeted for as they were not known at the time of the budget. The Miscellaneous revenue came in over budget due mostly to investment gains and interest revenue. Other revenues were in line with the budget. Total expenditures were over budget by $275,645. Capital outlay was over budget by $537,564 due to not budgeting for the land purchase for future public safety facility. Public Safety was under budget by $248,166 due to conservative budgeting and holding off on budgeted projects. Other areas were consistent with budgeted amounts. Enterprise Funds Enterprise funds are used to account for operations financed and operated in a manner similar to private business enterprises, where the City intends the cost of providing goods or services to the public be financed or recovered primarily through user charges. The City's Enterprise Funds include the Water, Sanitary Sewer, Refuse, Storm Water, and Street Light Utility Funds. 18 City of St. Joseph Financial Analysis Water Fund 2021 2022 2023 2024 2025 Operating Revenues $1,153,777 $1,162,651 $1,310,497 $1,174,066 $1,201,713 Operating Expenses 886,023 1,061,837 1,200,714 1,326,540 1,426,192 Operating Income (Loss) with Depreciation 267,754 100,814 109,783 (152,474)(224,479) Operating Income without Depreciation 727,537 556,443 564,695 313,429 248,059 $(250,000) $- $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 Water Fund The Water Fund showed an operating loss in 2025 and 2024 after having operating income in the three previous years. Operating revenues increased $27,647, or 2.4%, from 2024 to 2025 due to an increase in usage. Operating expenses increased $99,652, or 7.5%, from 2024 to 2025 due in part to switching the mechanical read meters to cellular based meters. Operations produced an operating loss of $224,479. With the exclusion of $472,538 in depreciation expense, the Fund experienced operating income of $248,059. However, depreciation should be considered as a true expense in operations, as most equipment and facilities will eventually need upgrades or replacement. The operations of the Water Fund covered 53% of depreciation expense. In addition to the operating revenues and expenses of the Water Fund, there were net non-operating revenues of $104,374, which is primarily comprised of investment income, amortization of bond premium, and other income offset by interest expenses. The operating and non-operating activities along with capital contributions, and transfers resulted in a decrease in net position of $95,788, resulting in a net position of $12,205,314 at December 31, 2025. The cash and investments balance at December 31, 2025, totaled $976,853, a decrease of $480,461. 19 City of St. Joseph Financial Analysis Sanitary Sewer Fund Operating revenues increased $62,394, or 4.0%, from 2024 to 2025, while operating expenses increased $129,653, or 11.2%. Revenues increased due to an increase in rates. Expenses increased due to increase in salaries and maintenance costs. The Sewer Fund produced operating income for all five years presented. Due to the nature and cost of the Sewer Fund's assets, it is difficult to establish sewer rates sufficient to cover replacement of the assets represented by depreciation expense. Ideally, sewer revenues should cover all operating expenses, including depreciation. The graph below indicates the Sewer Fund did generate operating income and covered 100% of depreciation each year presented. In addition to the operating revenues and expenses of the Sewer Fund, there were net non-operating revenues and expenses of $149,333, which is primarily comprised of investment income, amortization of bond premium, and other income offset by interest expenses. Capital contributions and transfers along with the operating and non-operating activities resulted in an increase in net position of $489,245, resulting in a net position of $14,022,355 at December 31, 2025. The cash balance at December 31, 2025, totaled $3,740,397, an increase of $366,897. 2021 2022 2023 2024 2025 Operating Revenues $1,395,818 $1,414,646 $1,448,954 $1,564,643 $1,627,037 Operating Expenses 1,133,200 1,131,199 1,130,094 1,154,605 1,284,258 Operating Income with Depreciation 262,618 283,447 318,860 410,038 342,779 Operating Income without Depreciation 814,306 833,803 879,788 940,226 863,221 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 Sanitary Sewer Fund 20 City of St. Joseph Financial Analysis Refuse Fund The following graph displays selected financial data for the Refuse Fund for the past five years. The Fund showed operating income for the third consecutive year. Operating revenues increased $9,209, or 1.8%, while operating expenses increased $25,852, or 5.2%, from 2024 to 2025. The increase in revenues was due in part to an increase in rates in 2025. Expenses increased due to increased fees from the waste collection company. These changes resulted in an operating revenue of $4,151 for 2025. The Fund produced an operating income of $7,277 when depreciation is not considered, thus, the fund is covering all of depreciation expense for 2025. In addition to the operating activities of the fund, there were non-operating revenues of $12,144 which are mostly comprised of investment income. Transfers along with operating and non-operating activities resulted in an increase in net position of $41,000, resulting in a net position of $333,825 at December 31, 2025. The cash balance increased $44,514 in 2025 and totaled $283,440 at December 31, 2025. 2021 2022 2023 2024 2025 Operating Revenues $359,675 $385,244 $432,256 $519,726 $528,935 Operating Expenses 368,772 391,013 407,822 498,932 524,784 Operating Income (Loss) with Depreciation (9,097)(5,769)24,434 20,794 4,151 Operating Income (Loss) without Depreciation (8,982)(5,654)26,626 23,992 7,277 $(50,000) $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $550,000 Refuse Fund 21 City of St. Joseph Financial Analysis Storm Water Fund The Storm Water Fund showed operating losses in four of the five years presented with the current year generating an operating loss. Operating revenues increased $976, or 0.4%, from 2024 to 2025. Operating expenses increased $33,566, or 14.7%. This increase is due to increased salaries and benefits and professional service costs. The Storm Water Fund produced an operating loss of $40,356 with depreciation and an operating income of $132,146 without depreciation expense. The operations of the Storm Water Fund did not cover depreciation expense in 2025. The Storm Water Fund also had net nonoperating revenues of $36,837, and transfers out totaling $18,855. Fund activity resulted in a decrease in net position of $22,374. The cash balance increased $162,228 in 2025 and totaled $824,947 at December 31, 2025. We recommend the City continue to monitor rates as well as operating expenses to ensure the Fund's profitability in the future. 2021 2022 2023 2024 2025 Operating Revenues $184,603 $269,615 $217,500 $219,866 $220,842 Operating Expenses 216,472 215,283 244,682 227,632 261,198 Operating Income (Loss) with Depreciation (31,869)54,332 (27,182)(7,766)(40,356) Operating Income without Depreciation 123,629 209,829 139,550 158,856 132,145 $(50,000) $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 Storm Water Fund 22 City of St. Joseph Financial Analysis Street Light Utility The Street Light Utility Fund was opened during 2013 to track activity relating to the street light utility. The Street Light Utility Fund showed an operating income for the fifth year in a row. Operating revenues stayed consistent with the prior year, increasing only $638 from 2024 to 2025. Operating expenses increased $9,085 due to increase in public utility rates. The Street Light Utility Fund produced operating income of $11,436. The fund also reported non- operating revenues including investment income and special assessments totaling $7,131. Operating income along with non-operating revenues and expenses resulted in an increase in net position of $17,617. The cash balance increased $10,104 in 2025 and totaled $154,752 at December 31, 2025. 2021 2022 2023 2024 2025 Operating Revenues $85,201 $85,720 $87,097 $88,300 $88,938 Operating Expenses 67,231 69,142 76,093 68,417 77,502 Operating Income 17,970 16,578 11,004 19,883 11,436 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 Street Light Utility 23 City of St. Joseph Emerging Issues Executive Summary The following is an executive summary of financial related updates to assist you in staying current on emerging issues in accounting and finance. This summary will give you a preview of the new standards that have been recently issued and what is on the horizon for the near future. The most recent and significant updates include: • Accounting Standard Update – GASB Statement No. 103 – Financial Reporting Model Improvements GASB has issued GASB Statement No. 103 relating to changes in financial reporting requirements. The changes provide clarity, enhance the relevance of information, provide more useful information for decision-making, and provide for greater comparability amongst government entities. • Accounting Standard Update – GASB Statement No. 104 – Disclosure of Certain Capital Assets GASB has issued GASB Statement No. 104 relating to capital asset disclosures. The disclosures required by this Statement provide users of the financial statements with essential information about certain types of capital assets. The following are extensive summaries of the current updates. As your continued business partner, we are committed to keeping you informed of new and emerging issues. We are happy to discuss these issues with you further and their applicability to your City. 24 City of St. Joseph Emerging Issues Accounting Standard Update – GASB Statement No. 103 – Financial Reporting Model Improvements The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government's accountability. This Statement also addresses certain application issues. This Statement addresses 5 areas of the financial statements (1) Management's Discussion and Analysis (MD&A), (2) Unusual or Infrequent Items, (3) Presentation of the Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Net Position, (4) Major Component Unit Information, and (5) Budgetary Comparison Information. This Statement continues the requirement that the MD&A precede the basic financial statements as part of the Required Supplementary Information (RSI). This Statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions. The Statement stresses that detailed analyses should explain why balances and results of operations changed, rather than stating amounts and "boilerplate" discussions. This Statement describes unusual or infrequent items as transactions and other events that are either unusual in nature or infrequent in occurrence. Furthermore, governments are required to display the inflows and outflows related to each unusual or infrequent item separately as the last presented flow(s) of resources prior to the net change in resource flows in the government-wide, governmental fund, and proprietary fund statements of resource flows. This Statement requires that the proprietary fund statement of revenues, expenses, and changes in fund net position continue to distinguish between operating and nonoperating revenues and expenses. The Statement provides clarification regarding operating and nonoperating revenues and expenses. Also, this Statement requires that a subtotal for operating income (loss) and noncapital subsidies be presented before reporting other nonoperating revenues and expenses. This Statement requires governments to present each major component unit separately in the reporting entity's statement of net position and statement of activities if it does not reduce the readability of the statements. If the readability of those statements would be reduced, combining statements of major component units should be presented after the fund financial statements. This Statement requires governments to present budgetary comparison information using a single method of communication - RSI. Governments also are required to present (1) variances between original and final budget amounts and (2) variances between final budget and actual amounts. An explanation of significant variances is required to be presented in notes to RSI. GASB Statement No. 103 is effective for fiscal years beginning after June 15, 2025. Earlier application is encouraged. Information provided above was obtained from www.gasb.org. 25 City of St. Joseph Emerging Issues Accounting Standard Update – GASB Statement No. 104 – Disclosure of Certain Capital Assets The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets. This Statement requires certain types of capital assets continue to be disclosed separately in the capital assets note disclosures including presentation of capital assets by major class and separate disclosure of lease assets, subscription assets, and intangible right-to-use assets. This Statement requires additional disclosures for capital assets held for sale. A capital asset is held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset. GASB Statement No. 104 is effective for fiscal years beginning after June 15, 2025. Earlier application is encouraged. Information provided above was obtained from www.gasb.org. City of St. Joseph Stearns County, Minnesota Basic Financial Statements December 31, 2025 City of St. Joseph Table of Contents Elected Officials and Administration 1 Independent Auditor's Report 3 Management's Discussion and Analysis 7 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 16 Statement of Activities 19 Fund Financial Statements Balance Sheet – Governmental Funds 20 Reconciliation of the Balance Sheet to the Statement of Net Position – Governmental Funds 23 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 24 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities – Governmental Funds 26 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund 27 Statement of Net Positions – Proprietary Funds 28 Reconciliation of the Statement of Net Positions – Business-Type Activities 29 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds 30 Reconciliation of the Statement of Revenues, Expenses, and Changes in Fund Net Position – Business-Type Activities 33 Statement of Cash Flows – Proprietary Funds 34 Notes to Basic Financial Statements 37 Required Supplementary Information Schedule of City's Proportionate Share of Net Pension Liability - General Employees Retirement Fund 78 Schedule of City's Proportionate Share of Net Pension Liability - Public Employees Police and Fire Retirement Fund 78 Schedule of City Contributions - General Employees Retirement Fund 79 Schedule of City Contributions - Public Employees Police and Fire Retirement Fund 79 Schedule of Changes in the Net Pension Liability and Related Ratios – Fire Relief Association 80 Schedule of City Contributions and Non-Employer Contributing Entities – Fire Relief Association 82 Notes to Required Supplementary Information 84 Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund 94 Combining Balance Sheet – Nonmajor Governmental Funds 96 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds 102 City of St. Joseph Table of Contents Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 111 Minnesota Legal Compliance 113 Schedule of Finding and Response on Internal Control 114 1 City of St. Joseph Elected Officials and Administration December 31, 2025 Elected Officials Position Term Expires Adam Scepaniak Mayor January 2027 Adam Schnettler Council Member January 2029 Kelly Beniek Council Member January 2029 Andrew Mooney Council Member January 2027 Kevin Kluesner Council Member January 2027 Administration David Murphy City Administrator Appointed Lori Bartlett Finance Director Appointed 2 (THIS PAGE LEFT BLANK INTENTIONALLY) 3 Independent Auditor's Report Honorable Mayor and Members of the City Council City of St. Joseph St. Joseph, Minnesota Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of St. JosephCity of St. Joseph, as of and for the year ended December 31, 2025, and the related notes to the basic financial statements, which collectively comprise City of St. Joseph's City of St. Josephbasic financial statements as listed in the Table of Contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of St. JosephCity of St. Joseph, as of December 31, 2025, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of City of St. Joseph and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The City of St. Joseph's management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of St. JosephCity of St. Joseph's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 4 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of City of St. Joseph's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about City of St. Joseph's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, which follows this report letter, and Required Supplementary Information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board (GASB) who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 5 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of St. Joseph's basic financial statements. The accompanying supplementary information identified in the Table of Contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 4, 2026, on our consideration of the City of St. Joseph's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of St. Joseph's internal control over financial reporting and compliance. St. Cloud, Minnesota May 4, 2026 6 (THIS PAGE LEFT BLANK INTENTIONALLY) 7 City of St. Joseph Management's Discussion and Analysis MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) This section provides an overview and analysis of the financial activities of the City of St. Joseph for the fiscal year ended December 31, 2025. It is intended to assist readers in understanding the City's financial position and results of operations and should be read in conjunction with the accompanying financial statements and notes. COMMUNITY AND FINANCIAL HIGHLIGHTS The City serves an estimated population of 7,169 residents across approximately 2,289 households. Total net position increased by $3.7 million in 2025, driven primarily by governmental activities supported by stable property tax collections and intergovernmental revenues, including Minnesota Local Government Aid (LGA). The General Fund reported an increase in fund balance of $29,768 before transfers, with an additional $450,000 committed for future projects. This reflects the City's conservative budgeting practices and controlled expenditures. Public safety and general government remain the largest General Fund expenditures. Enterprise funds—including water, sewer, refuse, storm water, and street lighting—continued to operate on a self-supporting basis, with user charges structured to recover operating costs and support capital improvements. OVERVIEW OF THE FINANCIAL STATEMENTS This report includes government-wide financial statements, fund financial statements, and notes to the financial statements. Government-wide statements provide a long-term perspective of the City's financial position, while fund statements focus on short-term operations. The notes provide additional detail necessary for a full understanding of the financial data. The government-wide statements include both governmental activities and business-type activities. The tables on the following two pages present a summary of the government-wide activities and provide a comparison to the prior year. Additional details regarding the government-wide financial statements can be found on pages 16–19. Further analysis and discussion are provided throughout the remaining sections of the Management's Discussion and Analysis. 8 City of St. Joseph Management's Discussion and Analysis OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Current Year Prior Year Assets Current assets $ 24,533,862 $ 23,507,171 Capital assets (net of accumulated depreciation) 22,502,888 20,228,797 Deferred outflows of resources 1,435,023 1,853,535 Total assets and deferred outflows of resources $ 48,471,773 $ 45,589,503 Liabilities Total current liabilities $565,385 $392,797 Total long-term liabilities 22,286,774 22,219,404 Total deferred inflows of resources 1,955,639 2,201,613 Total liabilities and deferred inflows of resources $ 24,807,798 $ 24,813,814 Net Position Net investment in capital assets $10,493,790 $9,065,672 Restricted net position 11,359,590 10,324,473 Unrestricted net position 1,810,595 1,385,544 Total net position $ 23,663,975 $ 20,775,689 Current Year Prior Year Revenues Program revenue – charges for services $ 695,519 $ 742,931 Program revenue – operating grants and contributions 236,860 330,788 Program revenue – capital grants and contribution 2,119,361 1,703,669 General revenue – taxes and franchise fees 5,749,796 5,119,453 General revenue – state aids 1,512,832 1,545,272 General revenue – unrestricted investment earnings 942,269 907,517 Gain on disposal of assets 18,827 52,804 Transfers (26,350) 2,495 Total revenues $ 11,249,114 $ 10,404,929 Expenses General government $ 1,429,412 $ 1,473,900 Public safety 3,075,451 2,929,038 Public works 1,527,992 1,932,425 Economic development 355,276 318,448 Culture and recreation 1,370,914 773,081 Interest on long-term debt 601,783 572,818 Total expenses $ 8,360,828 $ 7,999,710 Change in net position $ 2,888,286 $ 2,405,219 Net position - beginning 20,775,689 18,370,470 Net position - ending $ 23,663,975 $ 20,775,689 Governmental Activities – Statement of Activities Governmental Activities – Statement of Net Position 9 City of St. Joseph Management's Discussion and Analysis OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Current Year Prior Year Assets Current assets $ 7,765,696 $ 7,012,339 Capital assets (net of accumulated depreciation) 30,994,238 30,954,216 Deferred outflows of resources 67,333 60,909 Total assets and deferred outflows of resources $ 38,827,267 $ 38,027,464 Liabilities Total current liabilities $ 287,479 $ 259,324 Total long-term liabilities 5,031,467 5,073,526 Total deferred inflows of resources 172,958 192,948 Total liabilities and deferred inflows of resources $ 5,491,904 $ 5,525,798 Net Position Net investment in capital assets $ 26,329,593 $ 26,218,216 Unrestricted net position 7,005,770 6,283,450 Total net position $ 33,335,363 $ 32,501,666 Current Year Prior Year Revenues Program revenue – charges for services $ 4,097,442 $ 3,795,352 Program revenue – operating grants and contributions 912 7,292 Program revenue – capital grants and contribution 1,780 212 General revenue – taxes 5 4 General revenue – unrestricted investment earnings 310,978 237,363 Gain on disposal of assets - 806,873 Transfers 26,350 (2,495) Total revenues $ 4,437,467 $ 4,844,601 Expenses Water $ 1,430,156 $ 1,343,333 Sanitary sewer 1,310,130 1,206,960 Refuse 524,784 498,932 Storm water 261,198 227,632 Street light utility 77,502 68,417 Total expenses $ 3,603,770 $ 3,345,274 Change in net position $ 833,697 $ 1,499,327 Net position - beginning 32,501,666 31,002,339 Net position - ending $ 33,335,363 $ 32,501,666 Business-Type Activities – Statement of Net Position Business-Type Activities – Statement of Activities FINANCIAL ANALYSIS Governmental revenues increased by 6% compared to the prior year, primarily due to growth in property tax collections and intergovernmental revenues. The City continues to rely on a balanced mix of property taxes and state aid to fund core services. 10 City of St. Joseph Management's Discussion and Analysis OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) While Minnesota does not currently impose levy limits, the City remains committed to maintaining property tax levels that are reasonable and comparable to surrounding communities. Despite this approach, the City continues to experience strong tax base growth. Net tax capacity increased by 7.4% for taxes payable in 2025 and 9.4% for taxes payable in 2026. An additional 14.6% increase is anticipated for taxes payable in 2027 as current development projects are completed, supporting long-term financial stability. Expenses increased by 24%, driven by higher public safety costs, street maintenance, and inflationary pressures. In 2025, the City acquired a vacant former Casey's convenience store property for future use as a public safety facility. Public safety expenditures also increased with the addition of an eighth patrol officer to improve scheduling coverage. Infrastructure investments included two roundabouts constructed in partnership with Stearns County and the extension of Elm Street East to improve connectivity for local businesses. Business-type activities remained stable, with utility revenues generally keeping pace with operating expenses, including depreciation. Operating revenues covered at least 50% of depreciation in the water and storm water funds and 100% in other enterprise funds. The City continues to evaluate utility rate structures to ensure long-term sustainability and adequate funding for infrastructure maintenance and replacement. The City continues to transition water meters from a mechanical-read system to a cellular-read system to improve efficiency and accuracy in utility billing operations. Each year, a group of customers is selected for conversion. Approximately 500 meters were converted in 2025, and 2026 is expected to be the final year of the project, with approximately 480 meters remaining for installation. The remaining meters were ordered in 2025 and are reflected in the year-end water inventory balance. The Sewer Fund maintains a strong cash balance of approximately $3.74 million. Of this amount, the City Council has committed $1.4 million received from the City of Foley for future lift station improvements and utility service expansion related to new development. The City of St. Joseph has requested State capital bonding funds for Phase II infrastructure improvements within the Northland Business Center industrial park. If funding is awarded, a portion of the committed funds may be used toward related infrastructure costs. Staff are also working with developers regarding future single- family housing expansion areas, and a portion of the committed funds may be used to support lift station infrastructure needed for those developments. GENERAL FUND BUDGETARY HIGHLIGHTS Actual revenues exceeded budget by $478,962, primarily due to stronger-than-anticipated development activity and construction-related revenues, as well as receipt of a $95,000 grant for a flashing pedestrian crossing at Lanigan Way. Interest earnings exceeded budget by $155,085 due to favorable market valuation adjustments. 11 City of St. Joseph Management's Discussion and Analysis GENERAL FUND BUDGETARY HIGHLIGHTS (CONTINUED) ("Other Revenues" includes special assessments, fines, investment income, donations, other) Expenditures exceeded budget by $275,645, largely due to planned capital spending. The City follows a five-year capital outlay plan, which results in fluctuations between under- and over-budget years depending on the timing of purchases. Notable 2025 expenditures included parking lot improvements and pickleball court installation at Millstream Park, acquisition of the former Casey's property, and installation of the Lanigan Way pedestrian crossing. Additional overages occurred in sealcoating and crack filling as part of the City's pavement maintenance plan. Project timing varies by year, with some years requiring more extensive street work than others; however, the budget maintains a consistent annual funding level to avoid significant fluctuations in the property tax levy. Building inspection services and engineering costs also exceeded budget, both of which vary with the level of development activity. 2,962,074 2,957,833 1,753,651 1,914,888 208,720 283,499 206,590 225,799 64,740 79,481 176,270 389,507 Original and Final Budget Actual General Fund Revenues -Budget to Actual (2025) Other Revenues Charges for Services Franchise Fees 12 City of St. Joseph Management's Discussion and Analysis CAPITAL ASSETS AND DEBT ADMINISTRATION The City continued to invest in infrastructure and community amenities in 2025. Projects included street overlay maintenance, the Elm Street extension, and trail improvements. Transportation improvements included roundabouts at CSAH 133 and CSAH 2, managed by Stearns County with shared funding from the County, City, and federal sources. Recreational investments included pickleball courts at Millstream Park and Phase I of Rivers Bend Park. Additional details regarding capital asset activity can be found in Note 5 of the basic financial statements. To finance these projects, the City issued 2025A General Obligation Bonds and General Obligation Equipment Certificates. The City participates in a regional wastewater system operated by the City of St. Cloud. In 2024, construction began on the Metro Forcemain project, funded through a Minnesota Public Facilities Authority (PFA) loan at an interest rate of 1.88%. In 2025, St. Joseph's share of the loan increased by just over $1 million. In early 2026, the City completed the defeasance of its 2019A General Obligation Improvement Bonds related to the industrial park. This early payoff generated excess funds, which will be reinvested into new development infrastructure to support future housing and industrial development projects. Outstanding debt increased because of the new issuances but remains within manageable levels consistent with the City's long-term financial planning. See Note 6 in the basic financial statements for further details on long-term debt. ECONOMIC DEVELOPMENT AND GROWTH The City continues to experience steady residential and commercial growth. In 2025, development included two multi-family apartment buildings and 14 single-family homes. Industrial and commercial activity remained strong in the Northland Business Center, which is nearing full build-out in Phase I. Additions in 2025 included Premier Stone, expansion of TB Investments manufacturing facilities, and Floor to Ceiling. Hansen & Company woodworking is under construction and expected to be operational in summer 2026. Development activity has continued into 2026, including permits for a new monastery for the Sisters of St. Benedict and JoeTown Apartments Building #2. The City is also working with developers to expand single-family housing availability. To support future growth, the City has requested State bonding funds to extend infrastructure for Northland Business Center Phase II. The request has been heard by legislative committees, and the City will continue pursuing grant funding opportunities. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The City adopted a balanced 2026 budget with a stable tax rate. Revenue projections continue to rely on property taxes and Minnesota Local Government Aid (LGA), while expenditures reflect inflationary pressures and legislative constraints. 13 City of St. Joseph Management's Discussion and Analysis ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The City will continue to monitor economic conditions, infrastructure needs, and state and federal funding to maintain long-term fiscal stability. Fundraising efforts for a proposed community center in partnership with the YMCA were discontinued after falling short of targets. The City Council formally terminated the project on January 5, 2026. This decision is not expected to have a material impact on the City's financial position. 14 (THIS PAGE LEFT BLANK INTENTIONALLY) 15 BASIC FINANCIAL STATEMENTS See notes to basic financial statements. 16 Governmental Activities Business-Type Activities Total Assets Cash and investments (including cash equivalents)20,201,032$ 6,767,225$ 26,968,257$ Property tax receivable 28,077 1 28,078 Accounts receivable 55,102 581,377 636,479 Interest receivable 120,869 40,172 161,041 Due from other governments 1,971,479 11,112 1,982,591 Notes receivable 15,582 - 15,582 Lease receivable 6,286 56,574 62,860 Special assessments receivable Delinquent 1,164 868 2,032 Deferred 1,818,607 31,139 1,849,746 Inventories - 277,228 277,228 Net pension asset 315,664 - 315,664 Capital assets not being depreciated Land 762,197 377,882 1,140,079 Easements 562,128 67,915 630,043 Construction in progress 3,408,965 1,921,536 5,330,501 Capital assets being depreciated Buildings 7,421,043 8,797,686 16,218,729 Infrastructure 29,931,182 - 29,931,182 Improvements 2,927,657 315,193 3,242,850 Intangible asset 200,000 - 200,000 Plant and lines - 28,895,938 28,895,938 Machinery and equipment 6,599,969 1,456,726 8,056,695 Sewer rights - 9,180,410 9,180,410 Less accumulated depreciation (29,310,253) (20,019,048) (49,329,301) Capital assets (net of accumulated depreciation)22,502,888 30,994,238 53,497,126 Total assets 47,036,750 38,759,934 85,796,684 Deferred Outflows of Resources Deferred outflows of resources related to pensions 1,435,023 67,333 1,502,356 Total assets and deferred outflows of resources 48,471,773$ 38,827,267$ 87,299,040$ City of St. Joseph Statement of Net Position December 31, 2025 See notes to basic financial statements. 17 Governmental Activities Business-Type Activities Total Liabilities Accounts payable 137,337$ 48,459$ 185,796$ Contracts payable 130,265 - 130,265 Due to other governments 9,455 193,066 202,521 Salaries and benefits payable 202,591 17,238 219,829 Interest payable 74,737 28,716 103,453 Unearned revenue 11,000 - 11,000 Bond principal payable (net) Payable within one year 2,153,000 250,000 2,403,000 Payable after one year 18,188,831 761,436 18,950,267 Notes payable (net) Payable within one year - 443,494 443,494 Payable after one year - 3,209,715 3,209,715 Compensated absences payable Payable within one year 239,478 49,144 288,622 Payable after one year 394,867 136,018 530,885 Net pension liability 1,310,598 181,660 1,492,258 Total liabilities 22,852,159 5,318,946 28,171,105 Deferred Inflows of Resources Deferred inflows of resources related to pensions 1,945,349 113,656 2,059,005 Deferred inflows of resources related to debt 4,004 2,728 6,732 Deferred inflows of resources related to leases 6,286 56,574 62,860 Total deferred inflows of resources 1,955,639 172,958 2,128,597 Net Position Net investment in capital assets 10,493,790 26,329,593 34,891,432 Restricted for Debt service 5,745,746 - 5,745,746 Other purposes 5,613,844 - 5,613,844 Unrestricted 1,810,595 7,005,770 10,748,316 Total net position 23,663,975 33,335,363 56,999,338 Total liabilities, deferred inflows of resources, and net position 48,471,773$ 38,827,267$ 87,299,040$ City of St. Joseph Statement of Net Position December 31, 2025 18 (THIS PAGE LEFT BLANK INTENTIONALLY) See notes to basic financial statements. 19 Program Revenues Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-Type Activities Total Governmental activities General government 1,429,412$ 133,891$ 4,917$ -$ (1,290,604)$ -$ (1,290,604)$ Public safety 3,075,451 462,324 229,398 - (2,383,729) - (2,383,729) Public works 1,527,992 44,093 - 1,186,617 (297,282) - (297,282) Economic development 355,276 11,483 - - (343,793) - (343,793) Culture and recreation 1,370,914 43,728 2,545 932,744 (391,897) - (391,897) Interest on long-term debt 601,783 - - - (601,783) - (601,783) Total governmental activities 8,360,828 695,519 236,860 2,119,361 (5,309,088) - (5,309,088) Business-type activities Water 1,430,156 1,424,016 212 1,780 - (4,148) (4,148) Sanitary sewer 1,310,130 1,832,691 408 - - 522,969 522,969 Refuse 524,784 528,935 209 - - 4,360 4,360 Storm water 261,198 222,862 62 - - (38,274) (38,274) Street light utility 77,502 88,938 21 - - 11,457 11,457 Total business-type activities 3,603,770 4,097,442 912 1,780 - 496,364 496,364 Total governmental and business-type activities 11,964,598$ 4,792,961$ 237,772$ 2,121,141$ (5,309,088) 496,364 (4,812,724) General revenues Property taxes 4,660,489 5 4,660,494 Tax increments 175,910 - 175,910 Sales taxes 672,738 - 672,738 Lodging taxes 14,860 - 14,860 Franchise fees 225,799 - 225,799 State aids 1,512,832 - 1,512,832 Unrestricted investment earnings 942,269 310,978 1,253,247 Gain on sale of assets 18,827 - 18,827 Transfers (26,350) 26,350 - Total general revenues and transfers 8,197,374 337,333 8,534,707 Change in net position 2,888,286 833,697 3,721,983 Net position - beginning 20,775,689 32,501,666 53,277,355 Net position - ending 23,663,975$ 33,335,363$ 56,999,338$ Functions/Programs City of St. Joseph Statement of Activities Year Ended December 31, 2025 and Changes in Net Position Net (Expense) Revenue See notes to basic financial statements. 20 Debt Service General Fund (101-110) G.O. Improvement Bonds of 2016B (304) Community Center/YMCA (402) 2025 Street Improvement Project (420) Assets Cash and investments 5,154,004$ 161,493$ 6,487,874$ 464,932$ Taxes receivable - delinquent 18,780 28 - - Special assessments receivable Delinquent - - - - Deferred 152,597 511,739 - - Accounts receivable 45,707 - - - Interest receivable 26,531 1,150 37,575 - Due from other funds - - - - Due from other governments 1,333,203 35 - - Notes receivable - - - - Lease receivable 6,286 - - - Total assets 6,737,108$ 674,445$ 6,525,449$ 464,932$ Liabilities Accounts payable 103,534$ -$ 10,695$ 5,409$ Contracts payable 16,284 - - 64,241 Due to other funds - - - - Due to other governments 9,455 - - - Salaries and benefits payable 101,180 - - - Unearned revenue 11,000 - - - Total liabilities 241,453 - 10,695 69,650 Deferred Inflows of Resources Unavailable revenue - property taxes 18,780 28 - - Unavailable revenue - special assessments 152,597 511,739 - - Unavailable revenue - state shared taxes 1,314,707 - - - Unavailable revenue - lease receivable 6,286 - - - Total deferred inflows of resources 1,492,370 511,767 - - Fund Balances Restricted 85,187 162,678 6,514,754 - Committed - - - - Assigned 1,472,421 - - 395,282 Unassigned 3,445,677 - - - Total fund balances 5,003,285 162,678 6,514,754 395,282 Total liabilities, deferred inflows of resources, and fund balances 6,737,108$ 674,445$ 6,525,449$ 464,932$ Capital Projects City of St. Joseph Balance Sheet - Governmental Funds December 31, 2025 21 Other Governmental Funds Total Governmental Funds 8,719,565$ 20,987,868$ 9,269 28,077 1,164 1,164 1,154,271 1,818,607 9,395 55,102 55,613 120,869 - - 638,241 1,971,479 15,582 15,582 - 6,286 10,603,100$ 25,005,034$ 17,699$ 137,337$ 49,740 130,265 - - - 9,455 101,411 202,591 - 11,000 168,850 490,648 9,269 28,077 1,155,435 1,819,771 - 1,314,707 - 6,286 1,164,704 3,168,841 7,431,422 14,194,041 791,237 791,237 1,046,887 2,914,590 - 3,445,677 9,269,546 21,345,545 10,603,100$ 25,005,034$ 22 (THIS PAGE LEFT BLANK INTENTIONALLY) See notes to basic financial statements. 23 City of St. Joseph Reconciliation of the Balance Sheet to the Statement of Net Position - Governmental Funds Total fund balances - governmental funds 21,345,545$ Capital assets used in governmental activities are not current financial resources and, therefore, are not reported as assets in governmental funds: Cost of capital assets 51,813,141 Less accumulated depreciation/amortization (29,310,253) Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Long-term liabilities at year-end consist of: Bond principal payable, net of premiums and discounts (20,341,831) Deferred charges on refunding (4,004) Compensated absences payable (634,345) Net pension liability (1,310,598) Delinquent receivables will be collected in subsequent years, but are not available soon enough to pay for the current period's expenditures and, therefore, are deferred in the funds: Property taxes 28,077 Special assessments 1,164 Other long-term assets are not available to pay for current expenditures and, therefore, are deferred in the funds: Deferred special assessments 1,818,607 MSA Receivable 1,314,707 Deferred outflows of resources and deferred inflows of resources are created as a result of various differences related to pensions that are not recognized in the governmental funds: Deferred inflows of resources related to pensions (1,945,349) Deferred outflows of resources related to pensions 1,435,023 Net pension assets created through non-employer contributions to defined benefit pension plans are not recognized in the governmental funds: Fire relief net pension asset 315,664 The water access capital project fund is proprietary in nature and, therefore, included in the business-type activities in the Statement of Net Position. (514,841) The sewer access capital project fund is proprietary in nature and, therefore, included in the business-type activities in the Statement of Net Position. (271,995) Governmental funds do not report a liability for accrued interest due and payable. (74,737) 23,663,975$ Amounts reported for governmental activities in the Statement of Net Position are different because: Total net position - governmental activities Year Ended December 31, 2025 See notes to basic financial statements. 24 Debt Service General Fund (101-110) G.O. Improvement Bonds of 2016B (304) Community Center/YMCA (402) 2025 Street Improvement Project (420) Revenues Property taxes 2,957,833$ 4,992$ -$ -$ Tax increments - - - - Sales taxes 42 - - - Lodging taxes - - - Miscellaneous taxes - - - Special assessments 52,727 22,344 - 194,860 Franchise fees 225,799 - - - Licenses and permits 283,499 - - - Intergovernmental 1,914,888 - - - Charges for services 79,481 - - - Fines and forfeitures 60,792 - - - Miscellaneous Investment income 205,085 16,134 262,193 - Contributions and donations 5,045 - 314,100 - Revolving loan repayments - - - - Other 65,816 - - - Total revenues 5,851,007 43,470 576,293 194,860 Expenditures Current General government 1,282,427 - - - Public safety 2,330,404 - - - Public works 741,345 - - - Culture and recreation 539,980 - 111,950 - Economic development - - - - Debt service Principal - 50,000 - - Interest and other charges - 9,920 - - Capital outlay General government 14,798 - - - Public safety 637,101 - - - Public works 191,716 - - 1,757,176 Culture and recreation 112,533 - 1,131 - Economic development - - - - Total expenditures 5,850,304 59,920 113,081 1,757,176 Excess of revenues over (under) expenditures 703 (16,450) 463,212 (1,562,316) Other Financing Sources (Uses) Sale of property 29,065 - - - Bonds issued - - - 1,735,000 Bond premium - - - 123,098 Transfers in 12,866 5,000 - 99,500 Transfers out (159,715) - - - Total other financing sources (uses) (117,784) 5,000 - 1,957,598 Net change in fund balances (117,081) (11,450) 463,212 395,282 Fund Balances Beginning of year 5,120,366 174,128 6,051,542 - End of year 5,003,285$ 162,678$ 6,514,754$ 395,282$ Capital Projects City of St. Joseph Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Year Ended December 31, 2025 25 Other Governmental Funds Total Governmental Funds 1,685,981$ 4,648,806$ 175,910 175,910 672,696 672,738 14,860 14,860 - - 420,874 690,805 - 225,799 - 283,499 533,542 2,448,430 618,052 697,533 - 60,792 452,483 935,895 32,165 351,310 663 663 3,951 69,767 4,611,177 11,276,807 - 1,282,427 374,377 2,704,781 - 741,345 1,492 653,422 357,111 357,111 1,888,000 1,938,000 751,338 761,258 17,273 32,071 137,873 774,974 770,848 2,719,740 653,483 767,147 1,063 1,063 4,952,858 12,733,339 (341,681) (1,456,532) - 29,065 410,000 2,145,000 90,294 213,392 932,839 1,050,205 (896,840) (1,056,555) 536,293 2,381,107 194,612 924,575 9,074,934 20,420,970 9,269,546$ 21,345,545$ See notes to basic financial statements. 26 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement Total net change in fund balances - governmental funds 924,575$ Amounts reported for governmental activities in the Statement of Activities are different because: Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense: Capital outlays 3,808,162 Depreciation expense (1,503,833) Disposal of capital assets (10,238) Transferred to proprietary funds (20,000) Principal payments on long-term debt are recognized as expenditures in the governmental funds but as an increase in net position in the Statement of Activities. 1,938,000 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds: Accrued interest payable (29,201) Amortization of bond discounts, premiums and deferred charges 188,676 Proceeds from long-term debt are recognized as an other financing source in the governmental funds but as a decrease in net position in the Statement of Activities. (2,145,000) The governmental funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. (213,392) Compensated absence payments are recognized as paid in the governmental funds but recognized as the expense is incurred in the Statement of Activities. (44,712) Delinquent receivables will be collected in subsequent years, but are not available soon enough to pay for the current period's expenditures and, therefore, are not revenues in the funds: Delinquent special assessments 769 Delinquent property taxes 11,683 Certain revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds: Deferred special assessments 19,183 MSA receivable 333,130 Governmental funds recognized pension contributions as expenditures at the time of payment whereas the Statement of Activities factors in items related to pensions on a full accrual perspective: Pension expense 34,481 The water access capital project fund is proprietary in nature and, therefore, is reported with business-type activities. (199,150) The sewer access capital project fund is proprietary in nature and, therefore, is reported with business-type activities. (204,847) Change in net position - governmental activities 2,888,286$ of Activities - Governmental Funds City of St. Joseph Year Ended December 31, 2025 See notes to basic financial statements. 27 Original and Final Budget Actual Amounts Revenues Property taxes 2,962,074$ 2,957,833$ (4,241)$ Sales taxes - 42 42 Miscellaneous taxes 750 - (750) Special assessments 5,500 52,727 47,227 Franchise fees 206,590 225,799 19,209 Licenses and permits 208,720 283,499 74,779 Intergovernmental 1,753,651 1,914,888 161,237 Charges for services 64,740 79,481 14,741 Fines and forfeitures 66,000 60,792 (5,208) Miscellaneous revenues Investment income 50,000 205,085 155,085 Contributions and donations 3,650 5,045 1,395 Other 50,370 65,816 15,446 Total revenues 5,372,045 5,851,007 478,962 Expenditures Current General government 1,307,825 1,282,427 (25,398) Public safety 2,578,570 2,330,404 (248,166) Public works 732,480 741,345 8,865 Culture and recreation 563,015 539,980 (23,035) Capital outlay General government 24,000 14,798 (9,202) Public safety 49,235 637,101 587,866 Public works 275,317 191,716 (83,601) Culture and recreation 44,217 112,533 68,316 Total expenditures 5,574,659 5,850,304 275,645 Excess of revenues over (under) expenditures (202,614) 703 203,317 Other Financing Sources (Uses) Sale of property 21,500 29,065 7,565 Transfers in 11,205 12,866 1,661 Transfers out (13,500) (159,715) (146,215) Total other financing sources (uses)19,205 (117,784) (136,989) Net change in fund balances (183,409)$ (117,081) 66,328$ Fund Balances Beginning of year 5,120,366 End of year 5,003,285$ Variance with Final Budget - Over (Under) City of St. Joesph Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund Year Ended December 31, 2025 See notes to basic financial statements. 28 Water (601) Sanitary Sewer (602)Refuse (603) Storm Water (651) Street Light Utility (652)Total Assets Current assets Cash and investments 976,853$ 3,740,397$ 283,440$ 824,947$ 154,752$ 5,980,389$ Taxes receivable - delinquent 1 - - - - 1 Special assessments receivable Delinquent 317 340 159 37 15 868 Deferred 27,934 596 105 2,468 36 31,139 Accounts receivable 168,728 272,366 89,402 36,219 14,662 581,377 Interest receivable 10,746 22,476 1,542 4,490 918 40,172 Due from other governments - 11,112 - - - 11,112 Lease receivable 56,574 - - - - 56,574 Inventory 277,228 - - - - 277,228 Total current assets 1,518,381 4,047,287 374,648 868,161 170,383 6,978,860 Noncurrent assets Capital assets Land 372,941 4,941 - - - 377,882 Easements - - - 67,915 - 67,915 Construction in progress 39,226 1,882,310 - - - 1,921,536 Buildings 7,502,432 1,295,254 - - - 8,797,686 Improvements 315,193 - - - - 315,193 Plants and lines 11,624,003 9,940,908 - 7,331,027 - 28,895,938 Machinery and equipment 381,803 830,975 67,849 172,099 4,000 1,456,726 Sewer rights - 9,180,410 - - - 9,180,410 Total capital assets 20,235,598 23,134,798 67,849 7,571,041 4,000 51,013,286 Less accumulated depreciation (8,714,760) (8,665,234) (54,129) (2,584,354) (571) (20,019,048) Net capital assets 11,520,838 14,469,564 13,720 4,986,687 3,429 30,994,238 Total noncurrent assets 11,520,838 14,469,564 13,720 4,986,687 2,858 30,994,238 Total assets 13,039,219 18,516,851 388,368 5,854,848 173,812 37,973,098 Deferred Outflows of Resources Deferred outflows of resources related to pensions 27,522 27,522 2,747 8,442 1,100 67,333 Total assets and deferred outflows of resources 13,066,741$ 18,544,373$ 391,115$ 5,863,290$ 174,912$ 38,040,431$ Liabilities Current liabilities Accounts payable 1,837$ 6,542$ 37,820$ 283$ 1,977$ 48,459$ Due to other governments 1,739 185,301 6,026 - - 193,066 Salaries and benefits payable 8,078 6,615 657 1,220 668 17,238 Interest payable 844 27,872 - - - 28,716 Long-term liabilities due Within one year 137,949 601,443 739 2,138 369 742,638 Total current liabilities 150,447 827,773 45,242 3,641 3,014 1,030,117 Noncurrent liabilities Compensated absences 89,627 89,627 739 4,800 369 185,162 Notes payable, net - 3,653,209 - - - 3,653,209 Bonds payable, net 580,264 431,172 - - - 1,011,436 Net pension liability 74,252 74,252 7,411 22,777 2,968 181,660 Less amounts due within one year (137,949) (601,443) (739) (2,138) (369) (742,638) Total noncurrent liabilities 606,194 3,646,817 7,411 25,439 2,968 4,288,829 Total liabilities 756,641 4,474,590 52,653 29,080 5,982 5,318,946 Deferred Inflows of Resources Deferred inflows of resources related to pensions 46,456 46,456 4,637 14,250 1,857 113,656 Deferred inflows of resources related to leases 56,574 - - - - 56,574 Deferred inflows of resources related to debt 1,756 972 - - - 2,728 Total deferred inflows 104,786 47,428 4,637 14,250 1,857 172,958 Net Position Net investment in capital assets 10,940,574 10,385,183 13,720 4,986,687 3,429 26,329,593 Unrestricted 1,264,740 3,637,172 320,105 833,273 163,644 6,218,934 Total net position 12,205,314 14,022,355 333,825 5,819,960 167,073 32,548,527 Total liabilities, deferred inflows of resources, 13,066,741$ 18,544,373$ 391,115$ 5,863,290$ 174,912$ 38,040,431$ and net position City of St. Joseph Statement of Net Positions - Proprietary Funds December 31, 2025 See notes to basic financial statements. 29 City of St. Joseph Reconciliation of the Statement of Net Positions - Business-Type Activities December 31, 2025 Total net position - proprietary funds 32,548,527$ Amounts reported for business-type activities in the Statement of Net Position are different because: The water access capital project fund is proprietary in nature and relates to water improvements for the applicable funds. Therefore, it is included as a business-type activity. 514,841 The sewer access capital project fund is proprietary in nature and relates to sewer improvements for the applicable funds. Therefore, it is included as a business-type activity. 271,995 33,335,363$ Total See notes to basic financial statements. 30 Water (601) Sanitary Sewer (602)Refuse (603) Storm Water (651) Operating Revenues Charges for services 1,201,713$ 1,627,037$ 528,935$ 220,842$ Operating Expenses Wages and salaries 299,790 232,686 28,596 56,031 Materials and supplies 300,619 32,441 4,186 3,038 Repairs and maintenance 100,899 61,448 1,180 17,590 Professional services 119,854 21,390 3,778 6,625 Insurance 26,054 12,299 - - Utilities 94,270 23,782 - 1,039 Depreciation 472,538 520,442 3,126 172,501 Contracted services - 375,719 482,534 - Equipment - 1,361 - 2,035 Miscellaneous 12,168 2,690 1,384 2,339 Total operating expenses 1,426,192 1,284,258 524,784 261,198 Operating income (loss)(224,479) 342,779 4,151 (40,356) Nonoperating Revenues (Expenses) Investment income 83,188 173,990 11,935 34,755 Special assessments 1,992 408 209 62 Property taxes 5 - - - Interest expense (35,806) (37,720) - - Amortization of bond premium 31,842 11,848 - - Other income 23,153 807 - 2,020 Total nonoperating revenues (expenses)104,374 149,333 12,144 36,837 Income (loss) before capital contributions and transfers (120,105) 492,112 16,295 (3,519) Capital contributions 10,000 10,000 - - Transfers in 21,182 16,183 24,850 - Transfers out (6,865) (29,050) (145) (18,855) Change in net position (95,788) 489,245 41,000 (22,374) Net Position Beginning of year 12,301,102 13,533,110 292,825 5,842,334 End of year 12,205,314$ 14,022,355$ 333,825$ 5,819,960$ City of St. Joseph Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds Year Ended December 31, 2025 31 Street Light Utility (652)Total 88,938$ 3,667,465$ 17,707 634,810 2,971 343,255 18 181,135 1,261 152,908 - 38,353 54,808 173,899 571 1,169,178 - 858,253 - 3,396 166 18,747 77,502 3,573,934 11,436 93,531 7,110 310,978 21 2,692 - 5 - (73,526) - 43,690 - 25,980 7,131 309,819 18,567 403,350 - 20,000 - 62,215 (950) (55,865) 17,617 429,700 149,456 32,118,827 167,073$ 32,548,527$ 32 (THIS PAGE LEFT BLANK INTENTIONALLY) See notes to basic financial statements. 33 City of St. Joseph Reconciliation of the Statement of Revenues, Expenses, and Changes in Fund Net Position - Business-Type Activities Total net change in fund net position - proprietary funds 429,700$ Amounts reported for business-type activities in the Statement of Activities are different because: Recognized current year activity from the water access capital project fund with the business-type activities. 199,150 Recognized current year activity from the sewer access capital project fund with the business-type activities. 204,847 Capital contributions from governmental activities.(20,000) Transfers in of capital assets from governmental activities.20,000 Change in net position - business-type activities 833,697$ Year Ended December 31, 2025 See notes to basic financial statements. 34 Water (601) Sanitary Sewer (602)Refuse (603) Storm Water (651) Cash Flows - Operating Activities Receipts from customers and users 1,202,930$ 1,605,511$ 527,515$ 221,171$ Payments to suppliers (900,388) (499,283) (491,291) (32,962) Payments to employees (291,621) (219,417) (27,845) (43,993) Other miscellaneous receipts 23,523 1,028 313 3,820 Net cash flows - operating activities 34,444 887,839 8,692 148,036 Cash Flows - Noncapital Financing Activities Transfer from other funds 21,182 16,183 24,850 - Transfer to other funds (6,865) (29,050) (145) (18,855) Net cash flows - noncapital financing Activities 14,317 (12,867) 24,705 (18,855) Cash Flows - Capital and Related Financing Activities Principal paid on debt (555,000) 518,139 - - Interest paid on debt (36,746) (33,100) - - Acquisition of capital assets (21,298) (1,163,052) (425) (425) Net cash flows - capital and related Financing activities (613,044) (678,013) (425) (425) Cash Flows - Investing Activities Interest and dividends received 83,822 169,938 11,542 33,472 Net change in cash and cash equivalents (480,461) 366,897 44,514 162,228 Cash and Cash Equivalents Beginning of year 1,457,314 3,373,500 238,926 662,719 End of year 976,853$ 3,740,397$ 283,440$ 824,947$ Reconciliation of Operating Income (Loss) to Net Cash Flows - Operating Activities Operating income (loss)(224,479)$ 342,779$ 4,151$ (40,356)$ Adjustments to reconcile operating income (loss) to net cash flows - operating activities Depreciation expense 472,538 520,442 3,126 172,501 Pension expense 857 6,060 953 11,022 Other miscellaneous receipts 23,523 1,028 313 3,820 Accounts receivable 1,217 (10,414) (1,420) 329 Inventory (237,823) - - - Accounts payable (9,047) 784 1,598 (296) Due to other governmental units 346 31,063 173 - Salaries payable 1,438 1,335 89 340 Compensated absences payable 5,874 5,874 (291) 676 Total adjustments 258,923 545,060 4,541 188,392 Net cash flows - operating activities 34,444$ 887,839$ 8,692$ 148,036$ Non-Cash Capital and Financing Activities Capital asset contributions from governmental funds 10,000$ 10,000$ -$ -$ City of St. Joseph Statement of Cash Flows - Proprietary Funds Year Ended December 31, 2025 35 Street Light Utility (652)Total 88,984$ 3,646,111$ (62,208) (1,986,132) (18,670) (601,546) 7 28,691 8,113 1,087,124 - 62,215 (950) (55,865) (950) 6,350 - (36,861) - (69,846) (4,000) (1,189,200) (4,000) (1,295,907) 6,941 305,715 10,104 103,282 144,648 5,877,107 154,752$ 5,980,389$ 11,436$ 93,531$ 571 1,169,178 (453) 18,439 7 28,691 46 (10,242) - (237,823) (2,984) (9,945) - 31,582 (364) 2,838 (146) 11,987 (3,323) 993,593 8,113$ 1,087,124$ -$ 20,000$ 36 (THIS PAGE LEFT BLANK INTENTIONALLY) City of St. Joseph Notes to Basic Financial Statements 37 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of St. Joseph (the "City") is a statutory city governed by an elected mayor and four council members. The accompanying financial statements present the government entities for which the government is financially accountable. The financial statements present the City and its component units. The City includes all funds, account groups, organizations, institutions, agencies, departments, and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the basic financial statements of the City because of the significance of their operational or financial relationships with the City. The City is considered financially accountable for a component unit if it appoints a voting majority of the organization's governing body and it is able to impose its will on the organization by significantly influencing the programs, projects, activities, or level of services performed or provided by the organization, or there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on, the City. As a result of applying the component unit definition criteria above, certain organizations have been defined and are presented in this report as follows: Blended Component Unit – Reported as if they were part of the City. Joint Ventures – The relationship of the City with the entity is disclosed. For each of the categories above, the specific entities are identified as follows: 1. Blended Component Unit The St. Joseph Economic Development Authority (EDA) was organized for the purpose of preserving and creating jobs, enhancing the tax base, and promoting the general welfare of the people of the City. The St. Joseph EDA is governed by a five-member board appointed by the City Council, two members of which are City Council Members. The St. Joseph EDA is included as a blended component unit of the City because the St. Joseph EDA is financially accountable to the City, as the City Council approves the budget. The St. Joseph EDA provides services almost entirely for the City. The St. Joseph EDA is presented as the Economic Development Authority Special Revenue Fund. Separate financial statements are not prepared for the St. Joseph EDA. 2. Joint Ventures The Central Minnesota Major Crime Investigation Unit is a group of local law enforcement officers within the four county surrounding areas that will be available to assist any of the participating entities in the investigation and solution of major crimes. During 2025, the City contributed $17,943 to the organization. It is reported as a special revenue fund of the City of Sartell. Complete financial statements can be obtained from: City of Sartell, 125 Pine Cone Road North, Sartell, Minnesota 56377. City of St. Joseph Notes to Basic Financial Statements 38 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Interest on general long-term debt is considered an indirect expense and is reported separately in the Statement of Activities. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Internally dedicated revenues are reported as general revenues rather than program revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current period are all considered to be susceptible to accrual and so have been recognized as revenues of the current period. Only the portion of special assessments receivable due within the current period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. City of St. Joseph Notes to Basic Financial Statements 39 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Description of Funds: Major Governmental Funds: General Fund – This fund is the City's primary operating fund. It accounts for all financial resources of the general City, except those required to be accounted for in another fund. G.O. Improvement Bonds of 2016B – This fund accounts for the payments made on principal and interest on bonds issued in relation to the 2016B G.O. Improvement Bonds. Community Center/YMCA – This fund accounts for costs associated with the St. Joseph Community Center/YMCA construction. 2025 Street Improvement Project – This fund accounts for costs associated with the St. Joseph 2025 Street Improvement construction. Proprietary Funds: Water Fund – This fund accounts for the operations of the City's water utility. Sanitary Sewer Fund – This fund accounts for the operations of the City's sanitary sewer utility. Refuse Fund – This fund accounts for the operations of the City's refuse and compost utility. Storm Water Fund – This fund accounts for the operations of the City's storm water utility. Street Light Utility Fund – This fund accounts for the operations of the City's street light utility. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the City's water, sanitary sewer, refuse, storm water, and street light utility functions and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Water, Sanitary Sewer, Refuse, Storm Water, and Street Light Utility Enterprise Funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. City of St. Joseph Notes to Basic Financial Statements 40 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/ Inflows of Resources, and Net Position or Equity 1. Deposits and Investments Cash and investments include balances from all funds that are combined and invested to the extent available in various securities as authorized by state law. Earnings from the pooled investments are allocated to the individual funds based on the average of month-end cash and investment balances. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. Minnesota Statutes § 118A outlines types of investments allowed, which authorizes the City to invest in obligations of the U.S. Treasury, agencies, and instrumentalities, shares of investment companies whose only investments are in the aforementioned securities, obligations of the State of Minnesota or its municipalities, bankers' acceptances, future contracts, repurchase and reverse repurchase agreements, and commercial paper of the highest quality with a maturity of no longer than 270 days and in the Minnesota Municipal Investment Pool. Certain investments for the City are reported at fair value as disclosed in Note 2. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. In accordance with GASB Statement No. 79, the Minnesota Municipal Investment Pool securities are valued at amortized cost, which approximates fair value. There are no restrictions or limitations on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period will be subject to a penalty equal to 7 days interest on the amount withdrawn. 2. Receivables and Payables All trade and property tax receivables are shown at a gross amount since both are assessable to the property taxes and are collectible upon the sale of the property. The City levies its property tax for the subsequent year during the month of December. December 28 is the last day the City can certify a tax levy to the County Auditor for collection the following year. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. The property tax is recorded as revenue when it becomes measurable and available. Stearns County is the collecting agency for the levy and remits the collections to the City four times a year. The tax levy notice is mailed in March with the first half of the payment due on May 15 and the second half due on October 15. Taxes not collected as of December 31, each year are shown as delinquent taxes receivable. City of St. Joseph Notes to Basic Financial Statements 41 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/ Inflows of Resources, and Net Position or Equity (Continued) 2. Receivables and Payables (Continued) The County Auditor prepares the tax list for all taxable property in the City, applying the applicable tax rate to the tax capacity of individual properties, to arrive at the actual tax for each property. The County Auditor also collects all special assessments, except for certain prepayments paid directly to the City. The County Auditor submits the list of taxes and special assessments to be collected on each parcel of property to the County Treasurer in January of each year. 3. Inventory and Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items are recorded as expenditures at the time of consumption. Inventory is valued at cost using the first in, first out (FIFO) method. 4. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $10,000, $25,000 for infrastructure, and an estimated useful life in excess of three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Property, plant, and equipment of the City are depreciated using the straight-line full year convention method over the following estimated useful lives: Land improvements 5 - 20 Buildings 30 - 40 Building improvements 15 Infrastructure 10 - 50 Sewer rights 20 - 50 Furniture and fixtures 5 - 10 Vehicles 5 - 20 Equipment 3 - 7 Machinery 5 - 7 YearsAssets City of St. Joseph Notes to Basic Financial Statements 42 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/ Inflows of Resources, and Net Position or Equity (Continued) 5. Lease Receivable The City is a lessor for numerous noncancellable leases. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements. At the commencement of a lease, the City measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term in a systematic and rational manner. Key estimates and judgments include how the City determines (1) the discount rate, (2) lease term, (3) lease receipts, and (4) amortization. The City determines the discount rate for leases based on the applicable State and Local Government Securities (SLGS) rate. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee. 6. Deferred Outflows/ Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The City presents deferred outflows of resources on the Statements of Net Position for deferred outflows of resources related to pensions for various estimate differences that will be amortized and recognized over future years. In addition to liabilities, the statement of financial position and fund financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City has four items that qualify for reporting in this category. The City presents deferred inflows of resources on the Governmental Fund Balance Sheet as unavailable revenue. The governmental funds report unavailable revenues from four sources: property taxes, special assessments, lease receivable, and state shared taxes. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City presents deferred inflows of resources on the Statements of Net Position for deferred inflows of resources related to pensions for various estimate differences that will be amortized and recognized over future years. The City presents deferred inflows of resources on the Statements of Net Position for the deferred charge on refunding. A deferred charge on refunding results from the difference in the carrying value of refunded debt and reacquisition price. Deferred inflows of resources related to lease receivable is reported in both the government-wide Statement of Net Position and the Governmental Funds Balance Sheet. City of St. Joseph Notes to Basic Financial Statements 43 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/ Inflows of Resources, and Net Position or Equity (Continued) 7. Compensated Absences The City compensates employees who leave City service in good standing for all earned, unused vacation. Employees can accrue up to 200 hours of vacation depending on years of service. The maximum amount of carryover from year-to-year is 100 hours or the amount of the current vacation accrual rate. In addition, employees are compensated for unused sick leave (up to a maximum of 720 hours or 960 hours for LELS and AFSCME employees) at various rates depending on the employee type and years of service, provided the City's notice of termination policy has been complied with. The liability for compensated absences reported in the Statement of Net Position consists of leave that has not been used that is attributable to services already rendered, accumulates, and is more likely than not to be used for time off or otherwise paid in cash and settled through noncash means. The liability also includes amounts for leave that has been used for time off but has not yet been paid in cash or settled through noncash means and certain other types of leave. 8. Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 9. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and the relief association and additions to/deductions from PERA's and the relief association's fiduciary net position have been determined on the same basis as they are reported by PERA and the relief association except that PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. City of St. Joseph Notes to Basic Financial Statements 44 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/ Inflows of Resources, and Net Position or Equity (Continued) 10. Fund Equity a) Classification In the fund financial statements, governmental funds report fund classifications that comprise a Hierarchy based primarily on the extent to which the City is bond to honor constraints on the specific purpose for which amounts in those funds can be spent. Nonspendable Fund Balances – These are amounts that cannot be spent because they are not in spendable form as they are legally or contractually required to be maintained intact and include amounts set aside for prepaid items. Restricted Fund Balances – These are amounts that are restricted to specific purposes either by a) constraints placed on the use of resources by creditors, grantors, contributors, or laws or regulations of other governments, or b) imposed by law through enabling legislation. Committed Fund Balances – These are amounts that can only be used for specific purposes pursuant to constraints imposed by the City Council (highest level of decision making authority) through resolution. The City Council must also pass a resolution to remove the constraint of committed resources. Assigned Fund Balances – These are amounts that are constrained by the City's intent to be used for specific purposes but are neither restricted nor committed. Assignments are made by the City's Finance Director based on the City Council's direction. Unassigned Fund Balances – These are residual amounts in the General Fund not reported in any other classification. The General Fund is the only fund that can report a positive unassigned fund balance. Other funds would report a negative unassigned fund balance should the total of nonspendable, restricted, committed, and assigned fund balances exceed the total net resources of that fund. When both restricted and unrestricted resources are available for use, it is the City's policy to first use restricted resources and then use unrestricted resources as they are needed. When committed, assigned, and unassigned resources are available for use, it is the City's policy to use resources in the following order: committed, assigned, and unassigned. b) Minimum Fund Balance The City's target General Fund balance is to maintain working capital, a portion of the unassigned balance, in the amount of four to six months of the next year's budgeted expenditures of the General Fund. City of St. Joseph Notes to Basic Financial Statements 45 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/ Inflows of Resources, and Net Position or Equity (Continued) 11. Net Position Net position represents the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources in the government-wide financial statements. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balance of any long-term debt used to build or acquire the capital assets. A reclassification of $1,931,951 between this net position class and unrestricted net position in the total column of the Statement of Net Position to recognize the portion of debt attributable to capital assets donated from governmental activities to business-type activities. Net position is reported as restricted in the government-wide financial statement when there are limitations on use through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. The restricted for other purposes restriction of net position for governmental activities of $5,613,844 includes $10,178 PEG Access Fees, $99,761 for tax increment financing, $2,004,436 in state collected sales tax restricted by enabling legislation, $42,488 restricted for lodging tax, $461,698 in park dedication fees, $2,350 restricted by donors for future projects, Community Center construction $765,300, $61,483 DEED Funds, $15,417 in revolving loan funds restricted for EDA projects, $761,017 restricted for fire service, $ 1,314,707 for unused MSA funds and $75,009 for unused public safety aid funds. 12. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. E. Budgetary Information 1. In August of each year, City staff submits to the City Council, a proposed operating budget for the year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them for the upcoming year. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution after obtaining taxpayer comments. 4. Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. 5. Expenditures may not legally exceed budgeted appropriations at the department level. No fund's budget can be increased without City Council approval. The City Council may authorize transfer of budgeted amounts between departments within any fund. Management may amend budgets within a department level, so long as the total department budget is not changed. City of St. Joseph Notes to Basic Financial Statements 46 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Budgetary Information (Continued) 6. Annual appropriated budgets are adopted during the year for the General Fund and the Economic Development Authority, State Collected Sales Tax, Park Dedication, and Fire special revenue funds and debt service funds. Budgetary control for the remaining special revenue fund is done through the use of project controls when the council authorizes the project. Budgetary control for Capital Projects Funds is accomplished through the use of project controls and formal appropriated budgets are not adopted. 7. Budgeted amounts are as originally adopted by the City Council. Budgeted expenditure appropriations lapse at year-end. Encumbrances outstanding at year-end expire and outstanding purchase orders are canceled and not reported in the financial statements. NOTE 2 – DEPOSITS AND INVESTMENTS Cash balances of the City's funds are combined (pooled) and invested to the extent available in various investments authorized by Minnesota Statutes. Each fund's portion of this pool (or pools) is displayed in the financial statements as "cash and cash equivalents" or "investments." For purposes of identifying risk of investing public funds, the balances and related restrictions are summarized as follows. A. Deposits Custodial Credit Risk – Deposits: This is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City has a policy that requires the City's deposits be collateralized as required by Minnesota Statutes for an amount exceeding FDIC, SAIF, BIF, or FCUA coverage. As of December 31, 2025, the City's bank balance was not exposed to custodial credit risk because it was fully insured through the FDIC or NCUA and fully collateralized with securities held by the pledging financial institutions trust department or agent and in the City's name. As of December 31, 2025, the City's deposits had a carrying value as shown as follows: Certificates of deposits 9,633,218$ Checking (27,893) Savings 3,250,261 Total 12,855,586$ City of St. Joseph Notes to Basic Financial Statements 47 NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments As of December 31, 2025, the City had the following investments: Weighted Fair Average Moody's Value Maturity (Years)Rating Brokered Money Market 1,402,185$ N/A N/A Municipal Bonds 8,734,412 2.5 A Government Bond Securities 1,767,058 0.8 AA+ 4M Funds 2,208,816 N/A N/A Total 14,112,471$ Investment Type Credit Risk: Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Minnesota Statutes §§ 118A.04 and 118A.05 limit investments based on rating level and investment type. The City's investment policy limits the allowable investments in accordance with these statutes. As of December 31, 2025, the City's investments were rated as listed in the table above. Interest Rate Risk: The City should try to minimize the risk that arises from over investing in specific instruments, individual financial institutions, or maturities. The City's investment policy states the investment portfolio will be structured so that securities mature to meet cash flow requirements and avoiding the need to sell securities prior to maturity, investing in short-term securities, investing in long-term securities if the market rate is favorable. Concentration of Credit Risk: Investments should be diversified to avoid incurring unreasonable risks inherent in over investing in specific instruments, individual financial institutions, or maturities. The City's investment policy states the City will attempt to diversify its investments according to type, issuer, and maturity. The portfolio, as much as possible, will contain both short-term and long-term investments. The City will attempt to match its investments with anticipated cash flow requirements. Extended maturities may be utilized to take advantage of higher yields. No more than 20% of the total investments should extend beyond five years and the weighted average maturity of the portfolio shall never exceed five years. As of December 31, 2025, the City's investment in Federal Home Loan Bank (6%) exceed 5% of the investment portfolio. Custodial Credit Risk – Investments: This is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's investment policy addresses this risk and states the City will permit investments only to the extent that there is Securities Investor Protection Corporation (SIPC) and excess SIPC coverage available. The City has the following recurring fair value measurements as of December 31, 2025: • $1,402,186 of investments are valued using a quoted market price (Level 1 inputs) • $10,501,470 of investments are valued using a matrix pricing model (Level 2 inputs) City of St. Joseph Notes to Basic Financial Statements 48 NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED) C. Deposits and Investments The following is a summary of deposits and investments as of December 31, 2025: Deposits (Note 3.A.)12,855,586$ Investments (Note 3.B.)14,112,471 Petty cash 200 Total 26,968,257$ Deposits and investments are presented in the December 31, 2025, basic financial statements as follows: Statement of Net Position Cash and investments 26,968,257$ Total deposits and investments 26,968,257$ NOTE 3 – LEASE RECEIVABLE The City has a Site lease agreement with Verizon Wireless for certain real property located at 3563 County Road 136, in the City of St. Joseph. This lease was originally entered into on June 12, 2009, with the currently signed amendment extension term ending January 31, 2029. Total rent income earned from this lease was $20,387 for the year ended December 31, 2025. The net present value of future lease payments has been recorded as a lease receivable and a deferred inflow of resources, discounted at a 3% discount rate and had an ending balance at December 31, 2025, of $56,574. The revenue will be recognized in future years. City of St. Joseph Notes to Basic Financial Statements 49 NOTE 4 – INTERFUND TRANSFERS B. Transfers The composition of interfund transfers as of December 31, 2025, is as follows: Transfer Out Description Amount General Fund Water Transfer for employee insurance benefits 4,355$ General Fund Sewer Transfer for employee insurance benefits 4,320 General Fund Refuse Transfer for employee insurance benefits 145 General Fund Storm Water Transfer for employee insurance benefits 1,425 General Fund Street Light Utility Transfer for employee insurance benefits 950 General Fund Other Governmental Funds Transfer for employee insurance benefits 10 G.O. Improvement Bonds of 2016B Other Governmental Funds Transfer sales tax revenue committed for bond payment 5,000 Other Governmental Funds Other Governmental Funds Annual transfer for debt payments 445,000 Water Sewer Annual transfer for debt payments 5,000 Other Governmental Funds Water Annual transfer for debt payments 2,510 Other Governmental Funds Sewer Annual transfer for debt payments 19,730 Other Governmental Funds Storm Water Annual transfer for debt payments 17,430 Other Governmental Funds Other Governmental Funds Transfer for Convention Visitor's Bureau 10,000 Other Governmental Funds General Fund Transfer to fund recreation programming 3,000 Refuse General Fund Transfer for compost site operations 24,850 Sewer General Fund Transfer for capital equipment 16,183 Water General Fund Transfer for capital equipment 16,182 2025 Street Improvement Project General Fund Transfer for Minnesota Street project costs 99,500 Other Governmental Funds Other Governmental Funds Transfer for future projects 70,000 General Fund Other Governmental Funds Transfer to close fund 1,661 Other Governmental Funds Other Governmental Funds Transfer to close fund 365,169 Total 1,112,420$ Transfer In City of St. Joseph Notes to Basic Financial Statements 50 NOTE 5 – CAPITAL ASSETS Capital asset activity for the year ended December 31, 2025, was as follows: Beginning Ending Balance Increases Decreases Balance Governmental activities Capital assets not being depreciated Land 762,197$ -$ -$ 762,197$ Easements 439,993 122,135 - 562,128 Construction in progress 2,214,611 3,805,056 2,610,702 3,408,965 Total capital assets not being depreciated 3,416,801 3,927,191 2,610,702 4,733,290 Capital assets being depreciated Buildings 7,421,043 - - 7,421,043 Infrastructure 29,383,500 547,682 - 29,931,182 Improvements 1,465,290 1,478,475 16,108 2,927,657 Intangible assets 200,000 - - 200,000 Machinery and equipment 6,281,942 445,516 127,489 6,599,969 Total capital assets being depreciated 44,751,775 2,471,673 143,597 47,079,851 Less accumulated depreciation for Buildings 2,167,743 189,722 - 2,357,465 Infrastructure 20,684,905 980,573 - 21,665,478 Improvements 864,112 78,604 13,978 928,738 Intangible assets 80,000 10,000 - 90,000 Machinery and equipment 4,143,019 244,934 119,381 4,268,572 Total accumulated depreciation 27,939,779 1,503,833 133,359 29,310,253 Total capital assets being depreciated, net 16,811,996 967,840 10,238 17,769,598 Governmental activities capital assets, net 20,228,797$ 4,895,031$ 2,620,940$ 22,502,888$ City of St. Joseph Notes to Basic Financial Statements 51 NOTE 5 – CAPITAL ASSETS (CONTINUED) Beginning Ending Balance Increases Decreases Balance Business-type activities Capital assets not being depreciated Land 377,882$ -$ -$ 377,882$ Easements 67,915 - - 67,915 Construction in progress 862,883 1,134,553 75,900 1,921,536 Total capital assets not being depreciated 1,308,680 1,134,553 75,900 2,367,333 Capital assets being depreciated Buildings 8,797,686 - - 8,797,686 Improvements other than buildings 315,193 - - 315,193 Plant and lines 28,895,938 - - 28,895,938 Machinery and equipment 1,308,475 150,547 2,296 1,456,726 Sewer rights 9,180,410 - - 9,180,410 Total capital assets being depreciated 48,497,702 150,547 2,296 48,645,953 Less accumulated depreciation for Buildings 3,681,243 214,142 - 3,895,385 Improvements other than buildings 103,959 17,031 - 120,990 Plant and lines 10,467,914 590,599 - 11,058,513 Machinery and equipment 1,013,696 91,354 2,296 1,102,754 Sewer rights 3,585,354 256,052 - 3,841,406 Total accumulated depreciation 18,852,166 1,169,178 2,296 20,019,048 Total capital assets being depreciated, net 29,645,536 (1,018,631) - 28,626,905 Business-type activities captial assets, net 30,954,216$ 115,922$ 75,900$ 30,994,238$ City of St. Joseph Notes to Basic Financial Statements 52 NOTE 5 – CAPITAL ASSETS (CONTINUED) Depreciation expense was charged to functions/programs of the City as follows: Government activities General government 158,120$ Public safety 292,567 Public works 820,656 Culture and recreation 232,298 Economic development 192 Total depreciation expense - governmental activities 1,503,833$ Business-type activities Water 472,538$ Sanitary sewer 520,442 Refuse 3,126 Storm sewer 172,501 Street light utility 571 Total depreciation expense - business-type activities 1,169,178$ NOTE 6 – LONG-TERM DEBT A. General Obligation Bonds The City issues General Obligation (G.O.) bonds to provide for financing improvement, development, and street improvement projects. G.O. bonds are direct obligations and pledge the full faith and credit of the City. These bonds generally are issued as 5 to 20 year serial bonds with equal debt service payments each year. Revenue bonds are issued by the City where the City pledges income derived from the acquired or constructed assets to pay debt service including access and trunk charges and utility user fees. City of St. Joseph Notes to Basic Financial Statements 53 NOTE 6 – LONG-TERM DEBT (CONTINUED) B. Components of Long-Term Liabilities Issue Interest Original Final Principal Due Within Date Rate Issue Maturity Outstanding One Year Governmental activities G.O. Bonds, including Refunding Bonds G.O. Capital Improvement Plan 2016A 07/07/16 2.00%-2.875%4,275,000$ 12/15/36 2,570,000$ 210,000$ G.O. Captial Improvement Plan 2020B 11/12/20 0.40%-2.00%690,000 12/15/33 450,000 60,000 G.O. Certificates of Indebtedness 2022A 08/30/22 4.00%660,000 12/15/31 470,000 70,000 G.O. Certificates of Indebtedness 2023A 10/17/23 4.00%-5.00%440,000 12/15/28 275,000 90,000 G.O. Certificates of Indebtedness 2025A 10/07/25 5.00%410,000 12/15/30 410,000 70,000 Total G.O. Bonds 4,175,000 500,000 G.O. Special Assessment Bonds G.O. Improvement Bonds of 2016B 11/03/16 1.00%-3.00%740,000 12/15/32 340,000 50,000 G.O. Improvement Bonds of 2019A 09/12/19 4.00%-5.00%3,705,000 12/15/29 1,465,000 370,000 G.O. Improvement Bonds of 2020B 11/12/20 0.40%-2.00%625,000 12/15/31 365,000 65,000 Taxable G.O. Crossover Refunding Bonds, Series 2020C 11/12/20 0.40%-1.60%1,365,000 12/01/30 775,000 150,000 G.O. Improvement Bonds of 2021A 09/14/21 2.00%-4.00%3,190,000 12/15/36 2,150,000 255,000 G.O. Improvement Bonds of 2022A 08/30/22 4.00%620,000 12/15/32 425,000 65,000 G.O. Improvement Bonds of 2023A 10/17/23 4.00%-5.00%1,930,000 12/15/33 1,555,000 190,000 G.O. Improvement Bonds of 2024A 09/18/24 4.00%-4.20%977,000 12/15/34 879,000 98,000 G.O. Improvement Bonds of 2025A 10/07/25 5.00%1,735,000 12/15/35 1,735,000 175,000 Total G.O. Special Assessment Bonds 9,689,000 1,418,000 G.O. Abatement Bonds G.O. Tax Abatement Bonds of 2022A 08/30/22 4.00%6,125,000 12/15/42 5,545,000 235,000 Unamortized premiums/discounts 932,831 - Compensated absences 634,345 239,478 Total long-term liabilities, governmental activities 20,976,176$ 2,392,478$ City of St. Joseph Notes to Basic Financial Statements 54 NOTE 6 – LONG-TERM DEBT (CONTINUED) B. Components of Long-Term Liabilities (Continued) Issue Interest Original Final Principal Due Within Date Rate Issue Maturity Outstanding One Year Business-type activities G.O. Revenue Bonds G.O. Sewer Refunding Bonds of 2020B 11/12/20 0.40%-2.00%1,045,000$ 12/15/28 410,000$ 135,000$ Taxable G.O. Crossover Refunding Bonds, Series 2020C 11/12/20 0.40%-1.90%445,000 12/01/32 285,000 35,000 G.O. Water Revenue Refunding Bonds 2021A 09/14/21 4.00%2,185,000 12/15/28 275,000 80,000 Total G.O. Revenue Bonds 970,000 250,000 Notes from direct borrowing Utility Revenue Notes Payable City of St. Cloud SIS Phase 4 (2013B Bonds)11/01/13 3.00%-4.00%650,000 02/01/29 210,000 50,000 City of St. Cloud RUE Project PFA Loan 08/01/10 1.77%4,527,703 08/20/30 967,342 186,737 08/24/16 1.00%469,263 08/20/26 52,321 52,321 City of St. Cloud NR2 Biosolids 10/09/17 1.10%1,744,736 08/20/37 818,627 64,184 City of St. Cloud Forcemain Replacement 10/01/24 1.88%2,085,245 08/20/44 1,604,919 90,252 Total notes from direct borrowing 3,653,209 443,494 Unamortized premium 41,436 - Compensated absences 185,162 49,144 Total business-type activities 4,849,807 742,638 Total all long-term liabilities 25,825,983$ 3,135,116$ Improvements City of St. Cloud Lift Station Long-term bonded indebtedness listed on the previous page and above were issued to finance acquisition and construction of capital assets or to refinance (refund) previous bond issues. City of St. Joseph Notes to Basic Financial Statements 55 NOTE 6 – LONG-TERM DEBT (CONTINUED) C. Changes in Long-Term Liabilities Long-term liability activity for the year ended December 31, 2025, was as follows: Beginning Ending Balance Net Change Additions Reductions Balance Governmental activities Bonds payable General obligation 4,230,000$ -$ 410,000$ 465,000$ 4,175,000$ G.O. Special Assessment Bonds 9,202,000 - 1,735,000 1,248,000 9,689,000 G.O. Abatement Bonds 5,770,000 - - 225,000 5,545,000 Total bonds payable 19,202,000 - 2,145,000 1,938,000 19,409,000 Unamortized premiums/discounts 906,569 - 213,392 187,130 932,831 Compensated absences 589,633 44,712 - - 634,345 Total governmental activities 20,698,202$ 44,712$ 2,358,392$ 2,125,130$ 20,976,176$ Beginning Net Ending Balance Change Additions Reductions Balance Business-type activities Bonds payable G.O. Utility Revenue Bonds 1,655,000$ -$ -$ 685,000$ 970,000$ Note from direct borrowing City of St. Cloud notes 3,005,070 - 1,043,438 395,299 3,653,209 Unamortized premiums 75,930 - - 34,494 41,436 Compensated absences 173,175 11,987 - - 185,162 Total business-type activities 4,909,175 11,987 1,043,438 1,114,793 4,849,807 Total long-term liabilities 25,607,377$ 56,699$ 3,401,830$ 3,239,923$ 25,825,983$ The change in the compensated absences liability is presented as a net change. City of St. Joseph Notes to Basic Financial Statements 56 NOTE 6 – LONG-TERM DEBT (CONTINUED) D. Minimum Debt Payments Minimum annual principal and interest payments required to retire long-term liabilities: Year Ended December 31,Principal Interest Principal Interest 2026 500,000$ 127,665$ 1,418,000$ 383,275$ 2027 520,000 108,493 1,408,000 311,519 2028 525,000 91,493 1,408,000 254,467 2029 440,000 74,093 1,408,000 200,832 2030 455,000 60,593 1,058,000 146,964 2031-2035 1,470,000 148,990 2,869,000 282,982 2036 265,000 7,619 120,000 2,400 Total 4,175,000$ 618,946$ 9,689,000$ 1,582,439$ Year Ended December 31,Principal Interest Total 2026 235,000$ 221,800$ 2,885,740$ 2027 245,000 212,400 2,805,412 2028 255,000 202,600 2,736,560 2029 265,000 192,400 2,580,325 2030 275,000 181,800 2,177,357 2031-2035 1,535,000 735,800 7,041,772 2036-2040 1,875,000 403,000 2,673,019 2041-2042 860,000 52,000 912,000 Total 5,545,000$ 2,201,800$ 23,812,185$ Governmental Activities Abatement Bonds Governmental Activities G.O. Bonds G.O. Special Assessment Bonds City of St. Joseph Notes to Basic Financial Statements 57 NOTE 6 – LONG-TERM DEBT (CONTINUED) D. Minimum Debt Payments (Continued) Year Ended December 31,Principal Interest Principal Interest Total 2026 250,000$ 23,460$ 353,242$ 33,106$ 659,808$ 2027 270,000 17,210 304,917 26,917 619,044 2028 280,000 10,250 314,072 21,035 625,357 2029 40,000 2,930 318,152 14,896 375,978 2030 40,000 2,350 267,390 9,653 319,393 2031-2035 90,000 2,565 346,545 19,342 458,452 2036-2040 - - 143,973 2,369 146,342 Total 970,000$ 58,765$ 2,048,291$ 127,318$ 3,204,374$ Utility Revenue Bonds Business-Type Activities Notes from Direct Borrowing The amortization schedule for the St. Cloud PFA Metro Forcemain Replacement is not available as the loan has not been fully disbursed. Therefore, the amounts for this note are not presented in the table above. E. Conduit Debt Conduit debt obligations are certain limited obligation revenue bonds or similar debt instruments issued for the express purpose of providing capital financing for a specific third party. The City has issued various revenue bonds to provide funding to private sector entities for projects deemed to be in the public interest. Although these bonds bear the name of the City, the City has no obligation for such debt. Accordingly, the bonds are not reported as liabilities in the financial statements of the City. At December 31, 2025, the City's outstanding conduit debt balance consisted of the following: $21,195,000 Senior Housing and Healthcare Revenue Bonds, Series 2019A 20,150,000$ City of St. Joseph Notes to Basic Financial Statements 58 NOTE 7 – FUND BALANCE Fund equity balances are classified as follows to reflect the limitations and restrictions of the respective funds. 2025 Street Nonmajor Community Improvement Governmental General Center Project Fund Total Restricted PEG access fees 10,178$ -$ -$ -$ -$ 10,178$ Public safety aid 75,009 - - - - 75,009 Debt service - 162,678 - - 3,982,772 4,145,450 Community center construction - - 6,514,754 - - 6,514,754 Tax increments - - - - 99,761 99,761 State collected sales tax projects - - - - 2,004,436 2,004,436 Park dedication fees - - - - 461,698 461,698 Fire services - - - - 761,017 761,017 Chartitable gambling - - - - 2,350 2,350 Lodging tax - - - - 42,488 42,488 DEED CDAP - - - - 61,483 61,483 Revolving loan - - - - 15,417 15,417 Total restricted 85,187 162,678 6,514,754 - 7,431,422 14,194,041 Committed Economic development - - - - 791,237 791,237 Assigned Police forfeiture 105,411 - - - - 105,411 Severance pay 415,940 - - - - 415,940 Capital outlay reserves 951,070 - - 395,282 1,046,887 2,393,239 Total assigned 1,472,421 - - 395,282 1,046,887 2,914,590 Unassigned 3,445,677 - - - - 3,445,677 Total 5,003,285$ 162,678$ 6,514,754$ 395,282$ 9,269,546$ 21,345,545$ G.O. Improvement Bonds of 2016B NOTE 8 – RISK MANAGEMENT The City purchases commercial insurance coverage through the League of Minnesota Cities Insurance Trust (LMCIT) with other cities in the state, which is a public entity risk pool currently operating as a common risk management and insurance program. The City pays an annual premium to the LMCIT for its insurance coverage. The LMCIT is self-sustaining through commercial companies for excess claims. The City is covered through the pool for any claims incurred but unreported, however, retains risk for the deductible portion of its insurance policies. The amount of these deductibles is considered immaterial to the financial statements. City of St. Joseph Notes to Basic Financial Statements 59 NOTE 8 – RISK MANAGEMENT (CONTINUED) There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three years. The City's workers' compensation insurance policy is retrospectively rated. With this type of policy, final premiums are determined after loss experience is known. The amount of premium adjustment for 2025 is estimated to be immaterial based on workers' compensation rates and salaries for the year. At December 31, 2025, there were no other claims liabilities reported in the fund based on the requirements of GASB Statement No. 10, which requires a liability for claims be reported if information prior to the issuance of the financial statements indicates it is probable a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. NOTE 9 – PENSION PLANS The City participates in various pension plans. Total pension expense for the year ended December 31, 2025, was $319,601. The components of pension expense are noted in the following plan summaries. For governmental activities, the General Fund typically liquidates the liability related to pensions. For Business-Type Activities, the Water, Sanitary Sewer, Refuse, Storm Water, and Street Light Utility Funds typically liquidate the liability related to pensions. Public Employees' Retirement Association A. Plan Description The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by PERA. PERA's defined benefit pension plans are established and administered in accordance with Minnesota Statutes Chapters 353, 353D, 353E, 353G, and 356. Minnesota Statutes Chapter 356 defines each plan's financial reporting requirements. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. General Employees Retirement Plan Membership in the General Plan includes employees of counties, cities, townships, schools in non- certified positions, and other governmental entities whose revenues are derived from taxation, fees, or assessments. Plan membership is required for any employee who is expected to earn more than $425 in a month, unless the employee meets exclusion criteria. Public Employees Police and Fire Plan Membership in the Police and Fire Plan includes full-time, licensed police officers and firefighters who meet the membership criteria defined in Minnesota Statutes § 353.64 and who are not earning service credit in any other PERA retirement plan or a local relief association for the same service. Employers can provide Police and Fire Plan coverage for part-time positions and certain other public safety positions by submitting a resolution adopted by the City's governing body. The resolution must state that the position meets plan requirements. City of St. Joseph Notes to Basic Financial Statements 60 NOTE 9 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) B. Benefits Provided PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state Legislature. Vested, terminated employees who are entitled to benefits, but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. When a member is vested, they have earned enough service credit to receive a lifetime monthly benefit after leaving public service and reaching an eligible retirement age. Members who retire at or over their Social Security full retirement age with at least one year of service qualify for a retirement benefit. General Employees Plan Benefits General Employees Plan requires three years of service to vest. Benefits are based on a member's highest average salary for any 5 successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for General Plan members. Members hired prior to July 1, 1989, receive the higher of Step or Level formulas. Only the Level formula is used for members hired after June 30, 1989. Under the Step formula, General Plan members receive 1.2% of the highest average salary for each of the first 10 years of service and 1.7% for each additional year. Under the Level formula, General Plan members receive 1.7% of the highest average salary for all years of service. For members hired prior to July 1, 1989, a full retirement benefit is available when age plus years of service equal 90 and normal retirement age is 65. Members can receive a reduced requirement benefit as early as age 55 if they have three or more years of service. Early retirement benefits are reduced by .25% for each month under age 65. Members with 30 or more years of service can retire at any age with a reduction of .25% for each month the member is younger than age 62. The Level formula allows General Plan members to receive a full retirement benefit at age 65 if they were first hired before July 1, 1989 or at age 66 if they were hired on or after July 1, 1989. Early retirement begins at age 55 with an actuarial reduction applied to the benefit. Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1% and a maximum of 1.5%. The 2025 annual increase was 1.25%. Recipients that have been receiving the annuity or benefit for at least a full year as of June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. Police and Fire Plan Benefits Benefits for the Police and Fire Plan members hired before July 1, 2010, are vested after three years of service. Members hired on or after July 1, 2010, are 50% vested after five years of service and 100% vested after 10 years. After five years, vesting increases by 10% each full year of service until members are 100% vested after 10 years. Police and Fire Plan members receive 3% of highest average salary for all years of service. Police and Fire Plan members receive a full retirement benefit when they are 55 and vested, or when their age plus their years of service equals 90 or greater if they were first hired before July 1, 1989. Early retirement starts at age 50, and early retirement benefits are reduced by 0.417% each month members are younger than age 55. City of St. Joseph Notes to Basic Financial Statements 61 NOTE 9 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) Police and Fire Plan Benefits (Continued) Benefit increases are provided to benefit recipients each January. The post-retirement increase is fixed at 1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase. C. Contributions Minnesota Statutes Chapter 353, 353E, 353G, and 356 set the rates for employer and employee contributions. Contribution rates can only be modified by the state Legislature. General Employees Fund Contributions General Plan members were required to contribute 6.5% of their annual covered salary in fiscal year 2025, and the City was required to contribute 7.5% for General Plan members. The City's contributions to the General Employees Fund for the year ended December 31, 2025, were $129,967. The City's contributions were equal to the required contributions as set by state statute. Police and Fire Fund Contributions Police and Fire Plan members were required to contribute 11.8% of their annual covered salary in fiscal year 2025 and the City was required to contribute 17.7% for Police and Fire Plan members. The City's contributions to the Police and Fire Fund for the year ended December 31, 2025, were $186,428. The City's contributions were equal to the required contributions as set by state statute. D. Pension Costs General Employees Fund Pension Costs At December 31, 2025, the City reported a liability of $642,970 for its proportionate share of the General Employees Fund's net pension liability. The City's net pension liability reflected a reduction due to the State of Minnesota's contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the State's contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the City totaled $15,510. City's proportionate share of the net pension liability 642,970$ State of Minnesota's proportionate share of the net pension liability associated with the City 15,510 Total 658,480$ City of St. Joseph Notes to Basic Financial Statements 62 NOTE 9 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) General Employees Fund Pension Costs (Continued) The net pension liability was measured as of June 30, 2025, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2024, through June 30, 2025, relative to the total employer contributions received from all of PERA's participating employers. The City's proportionate share was 0.0194% at the end of the measurement period and 0.0186% for the beginning of the period. For the year ended December 31, 2025, the City recognized pension expense of $58,917 for its proportionate share of General Employees Plan's pension expense. Included in the amount, the City recognized ($2,379) as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $16 million to the General Employees Fund. At December 31, 2025, the City reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual economic experience 58,724$ -$ Changes in actuarial assumptions 15,492 132,061 Net difference between projected and actual investment earnings - 270,218 Changes in proportion 99,119 - Contributions paid to PERA subsequent to the measurement date 64,984 - Total 238,319$ 402,279$ Deferred Outflows of Resources Deferred Inflows of Resources City of St. Joseph Notes to Basic Financial Statements 63 NOTE 9 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) General Employees Fund Pension Costs (Continued) The $64,984 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2026. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ended Expense December 31,Amount 2026 (23,928)$ 2027 (81,155) 2028 (78,158) 2029 (45,703) Total (228,944)$ Police and Fire Fund Pension Costs At December 31, 2025, the City reported a liability of $849,288 for its proportionate share of the Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2025, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2024, through June 30, 2025, relative to the total employer contributions received from all of PERA's participating employers. The City's proportionate share was 0.0725% at the end of the measurement period and 0.0759% for the beginning of the period. City of St. Joseph Notes to Basic Financial Statements 64 NOTE 9 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) Police and Fire Fund Pension Costs (Continued) The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2025. The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The $9 million direct state aid was paid on October 1, 2024, the direct state aid payment will increase by $17.7 million, which was paid on October 1, 2025. Thereafter, by October 1 of each year, the State will pay $26.7 million to the Police and Fire Fund until the fund is 110% funded for a minimum of three consecutive years (on an actuarial value of assets basis. The $9 million in supplemental state aid will continue until the fund and the State Patrol Plan (administered by the Minnesota State Retirement System) are 100% funded for three consecutive years (on an actuarial value of assets basis). The State of Minnesota's proportionate share of the net pension liability associated with the City totaled $29,441. City's proportionate share of the net pension liability 849,288$ State of Minnesota's proportionate share of the net pension liability associated with the City 29,441 Total 878,729$ For the year ended December 31, 2025, the City recognized pension expense of $259,826 for its proportionate share of the Police and Fire Plan's pension expense. Included in this amount, the City recognized $14,245 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $9 million to the Police and Fire Fund. The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $9 million in supplemental state aid because this contribution was not considered to meet the definition of a special funding situation. The City recognized $6,524 for the year ended December 31, 2025, as revenue and an offsetting reduction of the net pension liability for its proportionate share of the State of Minnesota's on-behalf contributions to the Police and Fire Fund. City of St. Joseph Notes to Basic Financial Statements 65 NOTE 9 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) Police and Fire Fund Pension Costs (Continued) At December 31, 2025, the City reported its proportionate share of the Police and Fire Plan's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources. Differences between expected and actual economic experience 379,867$ -$ Changes in actuarial assumptions 557,689 988,935 Net difference between projected and actual investment earnings - 412,502 Changes in proportion 207,791 37,638 Contributions paid to PERA subsequent to the measurement date 93,214 - Total 1,238,561$ 1,439,075$ Deferred Outflows of Resources Deferred Inflows of Resources The $93,214 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2026. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ended Expense December 31,Amount 2026 196,650$ 2027 (151,482) 2028 (348,646) 2029 (4,961) 2030 14,711 Total (293,728)$ City of St. Joseph Notes to Basic Financial Statements 66 NOTE 9 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) E. Long-Term Expected Return on Investment The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Domestic equity 33.5 %5.10 % International equity 16.5 5.30 Fixed income 25.0 0.75 Private markets 25.0 5.90 Total 100.0 % Asset Class Target Allocation Long-Term Expected Real Rate of Return F. Actuarial Methods and Assumptions The total pension liability for each of the cost-sharing defined benefit plans was determined by an actuarial valuation as of June 30, 2025, using the entry-age normal actuarial cost method. The long- term rate of return on pension plan investments used to determine the total liability is 7.0%. The 7.0% assumption is based on a review of inflation and investments return assumptions from a number of national investment consulting firms. The review provided a range of investment return rates considered reasonable by the actuary. An investment return of 7.0% is within that range. Inflation is assumed to be 2.25% for the General Employees Plan and 2.25% for the Police and Fire Plan. Benefit increases after retirement are assumed to be 1.5% for the General Employees Plan and 1% for the Police and Fire Plan. Salary growth assumptions in the General Employees Plan range in annual increments from 11.5% after one year of service to 3.0% after 27 years of service. In the Police and Fire Plan, salary growth assumptions range in annual increments from 10.75% after one year of service to 3.0% after 23 years of service. Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. Mortality rates for the Police and Fire Plan are based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA's experience. City of St. Joseph Notes to Basic Financial Statements 67 NOTE 9 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) F. Actuarial Methods and Assumptions (Continued) Actuarial assumptions for the General Employees Plan are reviewed every four years. The General Employees Plan was last reviewed in 2022. The assumption changes were adopted by the Board and became effective with the July 1, 2023, actuarial valuation. The Police and Fire Plan was reviewed in 2024. The assumption changes were adopted by the board and became effective with the July 1, 2025 actuarial valuation. The following changes in actuarial assumptions and plan provisions occurred in 2025: General Employees Fund Changes in Actuarial Assumptions • The combined service annuity loading factors increased from 15% to 19% for vested terminated members and from 3% to 44% for non-vested, terminated members. The assumed post-retirement benefit increase changed from 1.25% to 1.5%. Changes in Plan Provisions • The post-retirement benefit increase formula changed to 100% of the Social Security annual increase, between 1% and 1.75%, beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less than 85% for the last two consecutive annual valuations or is less than 80% in the most recent actuarial valuation, the maximum is reduced to 1.5%. Previously, the benefit increase was 50% of the Social Security annual increase, between 1% and 1.5%. • The 1% additional employer contribution is eliminated when the plan reaches 98% funded status (on an actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100% funded status. Police and Fire Fund Changes in Actuarial Assumptions • Assumed rates of salary increases were reduced slightly. • Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full) retirements and an overall increase in reduced (early) retirements. • Assumed rates of withdrawal were modified; the new rates will increase predicted terminations, especially in the first few years of employment. • Assumed rates of disabled retirement were significantly increased, especially for ages over age 30. • Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit observed experience. • Percent married assumption for female retirees lowered from 70% to 65%. • Minor changes were made to form of payment assumptions for retirees. • Minor changes were made to assumptions made with respect to missing participant data. • The combined service annuity load changed from 33% to 13% for vested, terminated members and from 2% to 38% for non-vested, terminated members. City of St. Joseph Notes to Basic Financial Statements 68 NOTE 9 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) F. Actuarial Methods and Assumptions (Continued) Police and Fire Fund (Continued) Changes in Plan Provisions • The period of time needed for benefit recipients to receive their first benefit increase was reduced by one year (from 36 months to 24 months for a full increase). • The January 1, 2026, benefit increase changed from 1% to 3%; subsequent January 1 increases will be 1%. • The threshold to end the $9 million annual state aid contribution changed from the earlier of July 1, 2048, or 90% funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years to 100% funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years (on an actuarial value of assets basis). • The threshold to end the additional $9 million annual state aid contribution changed from the earlier of July 1, 2048 or 100% funded for a minimum of three consecutive years to 110% funded for a minimum of three consecutive years (on an actuarial value of assets basis). • An additional $17.7 million in direct state aid will be paid annually each October 1 beginning October 1, 2025, through June 30, 2048. • Join and survivor actuarial equivalent factors were updated to reflect changes in assumptions. G. Discount Rate The discount rate used to measure the total pension liability in 2025 was 7.0%. The projection of cash flows used to determine the discount rate assumed that contributions from Plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net positions of the General Employees and Police and Fire Plans were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. H. Pension Liability Sensitivity The following presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in Current 1% Increase in Discount Rate (6.0%) City's proportionate share of the General Employees Fund net pension liability 1,561,677$ 642,970$ (102,305)$ Discount Rate (8.0%) Discount Rate (7.0%) City of St. Joseph Notes to Basic Financial Statements 69 NOTE 9 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) H. Pension Liability Sensitivity (Continued) 1% Decrease in Current 1% Increase in City's proportionate share of the Police and Fire Fund net pension liability 2,225,320$ 849,288$ (280,648)$ Discount Rate (6.0%) Discount Rate (7.0%) Discount Rate (8.0%) I. Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in a separately issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. Public Employees Defined Contribution Plan (Defined Contribution Plan) The City's council members are covered by the Defined Contribution Plan, a multiple-employer deferred compensation plan administered by PERA. The Defined Contribution Plan is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. The defined contribution plan consists of individual accounts paying a lump-sum benefit. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses; therefore, there is no future liability to the City. Minnesota Statutes Chapter 353D and 356, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5% of salary which is matched by the elected official's employer. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2% of employer contributions and twenty-five hundredths of 1% (.25%) of the assets in each member's account annually. Pension expense for the year is equal to the contributions made. Total contributions made by the City during fiscal year 2025 were: Contribution Amount Percentage of Covered Payroll Employee Employer Employee Employer Required Rate 858$ 858$ 5%5%5% City of St. Joseph Notes to Basic Financial Statements 70 NOTE 9 – PENSION PLANS (CONTINUED) Defined Benefit Pension Plan – Volunteer Firefighter's Relief Association A. Plan Description The City of St. Joseph Volunteer Fire Department Relief Association is the administrator of a single employer defined benefit pension plan established to provide benefits for members of the Relief Association per Minnesota State Statutes. The Association issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to the St. Joseph Volunteer Fire Department Relief Association, 75 Callaway St E, St. Joseph, MN 56374. B. Benefits Provided Volunteer firefighters of the City are member of Joseph Volunteer Fire Department Relief Association. Full retirement benefits are payable to members who have reached age 50 and have completed 20 years of service for lump sum service pension. Partial benefits are payable to members who have reached 50 years and have completed 10 years of service. Disability benefits and widow and children's survivor benefits are also payable to members, or their beneficiaries based upon requirements set forth in the bylaws. These benefit provisions and all other requirements are consistent with enabling state statutes. C. Employees Covered by Benefit Terms At December 31, 2025, the following employees were covered by the benefit terms: Inactive members entitled to but not yet receiving benefits 6 Active members 28 Total 34 D. Contributions Minnesota Statutes Chapter 424A.092 specifies minimum support rates required on an annual basis. The minimum support rates from the municipality and from State aids are determined as the amount required to meet the normal cost plus amortizing any existing prior service costs over a ten-year period. The City's obligation is the financial requirement for the year less state aids. Any additional payments by the City shall be used to amortize the unfunded liability of the relief association. The Association is comprised of volunteers: therefore, there are no payroll expenditures (i.e., there are no covered payroll percentage calculations). The City also contributed $3,000 to the Relief Association. E. Net Pension Liability The City's net pension liability was measured as of December 31, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. City of St. Joseph Notes to Basic Financial Statements 71 NOTE 9 – PENSION PLANS (CONTINUED) Defined Benefit Pension Plan – Volunteer Firefighter's Relief Association (Continued) E. Net Pension Liability (Continued) The total pension liability in the December 31, 2024, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.50 % Investment rate of return 5.75 %, net of pensions plan investment expense including inflation The value of death benefits is similar to the value of the retirement pension. Because of low retirement ages, the plan assumes no pre-retirement mortality. Post-retirement mortality does not apply as the benefit structure and form of payment do not reflect lifetime benefits. The long-term return on assets has been set based on the plan's target investment allocation along with long-term return expectations by asset class. When there is sufficient historical evidence of market outperformance, historical average returns may be considered. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of the measurement date are summarized in the table on the following page. Domestic equity 45.0 %4.52 % International equity 10.0 5.08 Fixed income 40.0 2.44 Real estate and alternatives 0.0 3.73 Cash and equivalents 5.0 0.99 Total 100.0 % Expected Real Target Allocation Rate of Return Long-Term Asset Class The discount rate used to measure the total pension liability was 5.75%. Assets were projected using expected benefit payments and expected asset returns. Expected benefit payments by year were discounted using the expected asset return assumption for years in which the assets were sufficient to pay all benefit payments. Any remaining benefit payments after the trust fund is exhausted are discounted at the municipal bond rate. The equivalent single rate is the discount rate. City of St. Joseph Notes to Basic Financial Statements 72 NOTE 9 – PENSION PLANS (CONTINUED) Defined Benefit Pension Plan – Volunteer Firefighter's Relief Association (Continued) F. Changes in the Net Pension Liability Total Plan Fiduciary Net Pension Pension Net Liability Liability Position (Asset) (a) (b)(a) - (b) Balances as of beginning of year 1,005,842$ 1,129,639$ (123,797)$ Changes for the year Service cost 47,198 - 47,198 Interest cost 50,019 - 50,019 Differences between expected and actual experience (111,871) - (111,871) Changes of assumptions (29,737) - (29,737) Changes of benefit terms 86,493 - 86,493 State and local contributions - 81,934 (81,934) Net investment income - 161,895 (161,895) Administrative expense - (9,860) 9,860 Net changes 42,102 233,969 (191,867) Balances as of end of year 1,047,944$ 1,363,608$ (315,664)$ Increase (Decrease) Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension liability of the City, calculated using the discount rate of 5.75%, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (4.75%) or 1 percentage point higher (6.75%) than the current rate: 1% Decrease in Current 1% Increase in Discount Rate Discount Rate Discount Rate (3.75%)(4.75%)(5.75%) City's proportionate share of the Plan net position liability (asset)(283,074)$ (315,664)$ (347,136)$ Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net position is available in the separately issued relief association financial report. City of St. Joseph Notes to Basic Financial Statements 73 NOTE 9 – PENSION PLANS (CONTINUED) Defined Benefit Pension Plan – Volunteer Firefighter's Relief Association (Continued) G. Pension Expense and Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2025, the City recognized pension expense of $0. At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual liability -$ 131,027$ Changes of assumptions 25,476 27,917 Net difference between projected and actual earnings on pension plan investments - 58,707 Total 25,476$ 217,651$ Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending December 31,Total 2026 (18,191)$ 2027 (13,345) 2028 (60,325) 2029 (41,828) 2030 (20,057) Therafter (38,429) Total (192,175)$ City of St. Joseph Notes to Basic Financial Statements 74 NOTE 10 – COMMITMENTS The City has entered into contracts for construction as follows: Commitment 2025 Street Improvements 748,673$ 630,277$ 118,396$ Lanigan Way Pedestrian Crossing 123,088 119,902 3,186 2024 Elm Street Extension 876,774 748,300 128,474 2024 CSAH 133/Elm St Roundabout 673,763 597,467 76,296 2025 CSAH 2/Minnesota St Roundabout 128,536 126,875 1,661 Total 328,013$ Project Contract Amount Expended through 12/31/25 NOTE 11 – TAX INCREMENT FINANCING The City has entered into four Tax Increment Financing agreements which meet the criteria for disclosure under Governmental Accounting Standards Board Statement No. 77 Tax Abatement Disclosures. The City's authority to enter into these agreements comes from Minnesota Statute § 469. The City entered into these agreements for the purpose of economic development. Under each agreement, the City and developer agree on an amount of development costs to be reimbursed to the developer by the City though tax revenues from the additional taxable value of the property generated by the development (tax increment). A "pay-as-you-go" note is established for this amount, on which the City makes payments for a fixed period of time with available tax increment revenue after deducting for certain administrative costs. During the year ended December 31, 2025, the City generated $175,910 in tax increment revenue and made $160,961, in payments to developers. In addition, the City had an abatement of $109,192 relating to a development agreement. NOTE 12 – NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED GASB Statement No. 103, Financial Reporting Model Improvements. The changes required by this Statement provide clarity, enhance the relevance of information, provide more useful information for decision-making, and provide for greater comparability amongst government entities. This Statement will be effective for the year ending December 31, 2026. GASB Statement No. 104, Disclosure of Certain Capital Assets. The disclosures required by this Statement provide users of the financial statements with essential information about certain types of capital assets. This Statement will be effective for the year ending December 31, 2026. City of St. Joseph Notes to Basic Financial Statements 75 NOTE 13 – SUBSEQUENT EVENTS On March 16, 2026, the City approved the defeasance of the 2019A General Obligation Improvement Bonds, originally issued to fund infrastructure for the Northland Business Center. Strong lot sales and special assessment revenues, along with remaining project funds, have fully covered the outstanding debt and exceeded the balance by $259,405. Because the bonds are not callable until December 15, 2027, the City placed funds in escrow to pay off the bonds at that time, reducing future interest costs. 76 (THIS PAGE LEFT BLANK INTENTIONALLY) 77 REQUIRED SUPPLEMENTARY INFORMATION See notes to required supplementary information. 78 City's Covered Payroll 2016 0.0135%1,096,133$ 14,341$ 1,110,474$ 839,240$ 130.61%68.91% 2017 0.0142%906,519 11,418 917,937 916,373 98.92%75.90% 2018 0.0142%787,758 25,900 813,658 955,440 82.45%79.53% 2019 0.0135%746,385 23,166 769,551 956,520 78.03%80.23% 2020 0.0145%869,341 26,723 896,064 1,031,520 84.28%79.06% 2021 0.0152%649,108 19,868 668,976 1,096,507 59.20%87.00% 2022 0.0155%1,227,605 36,093 1,263,698 1,164,720 105.40%76.67% 2023 0.0167%933,845 25,802 959,647 1,331,120 70.15%83.10% 2024 0.0186%686,759 17,758 704,517 1,572,227 43.68%89.08% 2025 0.0194%642,970 15,510 658,480 1,757,227 36.59%90.78% For Fiscal Year Ended June 30, City's Proportion of the Net Pension Liability (Asset) City's Proportionate Share of the Net Pension Liability (Asset) State's Proportionate Share (Amount) of the Net Pension Liability Associated with the City City's Proportionate Share of the Net Pension Liablility and the State's Proportionate Share of the Net Pension Liablility Associated with the City City's Covered Payroll City's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 2016 0.0540%2,167,114$ N/A 2,167,114$ 518,580$ 417.89%63.88% 2017 0.0540%729,064 N/A 729,064 554,975 131.37%85.43% 2018 0.0581%614,057 N/A 614,057 612,154 100.31%88.84% 2019 0.0559%587,566 N/A 587,566 576,684 101.89%89.26% 2020 0.0555%726,554 17,262$ 743,816 613,525 121.24%87.19% 2021 0.0618%471,468 21,453 492,921 730,853 67.44%93.66% 2022 0.0631%2,745,862 120,034 2,865,896 767,124 373.59%70.53% 2023 0.0673%1,162,184 46,806 1,208,990 883,531 136.84%86.47% 2024 0.0759%998,794 38,074 1,036,868 1,051,277 98.63%90.17% 2025 0.0725%849,288 29,441 878,729 1,100,096 79.88%91.78% Last Ten Years For Fiscal Year Ended June 30, State's Proportionate Share (Amount) of the Net Pension Liability Associated with the City City's Proportionate Share of the Net Pension Liability and the State's Proportionate Share of the Net Pension Liability Associated with the City Public Employees Police and Fire Retirement Fund of Net Pension Liability City of St. Joseph Schedule of City's Proportionate Share of Net Pension Liability Last Ten Years Schedule of City's Proportionate Share General Employees Retirement Fund City's Proportionate Share (Percentage) of the Net Pension Liability (Asset) City's Proportionate Share (Amount) of the Net Pension Liability (Asset) City's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll Plan Fiduciary Net Position as a Percentage of the Total Pension Liability See notes to required supplementary information. 79 2016 66,294$ 66,294$ -$ 883,920$ 7.50% 2017 69,820 69,820 - 930,933 7.50% 2018 71,452 71,452 - 952,693 7.50% 2019 76,798 76,798 - 1,023,973 7.50% 2020 90,784 90,784 - 1,210,453 7.50% 2021 91,994 91,994 - 1,226,587 7.50% 2022 93,278 93,278 - 1,243,707 7.50% 2023 110,146 110,146 - 1,468,613 7.50% 2024 120,298 120,298 - 1,603,973 7.50% 2025 129,967 129,967 - 1,732,893 7.50% 2016 89,587$ 89,587$ -$ 553,006$ 16.20% 2017 93,325 93,325 - 576,080 16.20% 2018 97,377 97,377 - 601,093 16.20% 2019 106,850 106,850 - 630,383 16.95% 2020 118,036 118,036 - 666,870 17.70% 2021 131,669 131,669 - 743,893 17.70% 2022 140,356 140,356 - 792,972 17.70% 2023 174,878 174,878 - 988,011 17.70% 2024 196,031 196,031 - 1,107,520 17.70% 2025 186,428 186,428 - 1,053,266 17.70% Last Ten Years Contributions as a Percentage of Covered Payroll Statutorily Required Contribution Statutorily Required Contribution Contributions in Relation to the Statutorily Required Contributions Contribution Deficiency (Excess) Contributions in Relation to the Statutorily Required Contributions Fiscal Year Ending December 31, City's Covered Payroll Contributions as a Percentage of Covered Payroll Schedule of City Contributions - Public Employees Police and Fire Retirement Fund Fiscal Year Ending December 31, City of St. Joseph Schedule of City Contributions - General Employees Retirement Fund Last Ten Years Contribution Deficiency (Excess) City's Covered Payroll See notes to required supplementary information. 80 Plan Year Plan Year Plan Year Plan Year December 31,December 31,December 31,December 31, 2015 2016 2017 2018 Total Pension Liability (TPL) Service cost 25,691$ 25,641$ 27,172$ 28,180$ Interest 35,786 33,188 32,052 32,323 Differenced between expected and actual experience (29,935) - (35,760) - Changes of assumptions 56,691 4,299 8,441 - Changes of benefit terms - - - 28,541 Benefit payments, including refunds, or member contributions (49,000) (118,151) - - Net change in total pension liability 39,233 (55,023) 31,905 89,044 Beginning of year 571,388 610,621 555,598 587,503 End of Year 610,621$ 555,598$ 587,503$ 676,547$ Plan Fiduciary Net Pension (FNP) Contributions - employer 63,111$ 58,310$ 56,565$ 58,653$ Net investment income 68,585 77,946 (50,418) 118,020 Benefit payments, including refunds of member contributions (49,000) (118,151) - - Administrative expense (7,724) (8,546) (7,582) (9,020) Net change in plan fiduciary net position 74,972 9,559 (1,435) 167,653 Beginning of year 700,995 775,967 785,526 784,091 End of year 775,967$ 785,526$ 784,091$ 951,744$ Net pension liability (NPL)(165,346)$ (229,928)$ (196,588)$ (275,197)$ Plan fiduciary net position as a percentage of the total pension liability 127.1%141.4%133.5%140.7% Covered employee payroll n/a n/a n/a n/a Net pension liability as a percentage of covered payroll n/a n/a n/a n/a * Notes to required supplementary information explains lack of activity for 2024. City of St. Joseph Schedule of Changes in Net Pension Liability and Related Ratios - Fire Relief Association 81 Plan Year Plan Year Plan Year Plan Year Plan Year Plan Year December 31,December 31,December 31,December 31,December 31,December 31, 2019 2020 2021 2022 2023 2024* 30,292$ 34,333$ 36,598$ 36,028$ 47,198$ -$ 37,109 35,949 36,789 38,068 50,019 - (9,251) - (19,521) - (111,871) - 15,976 - (2,834) - (29,737) - 59,260 32,566 - 189,858 86,493 - - (174,884) - (47,041) - - 133,386 (72,036) 51,032 216,913 42,102 - 676,547 809,933 737,897 788,929 1,005,842 1,047,944 809,933$ 737,897$ 788,929$ 1,005,842$ 1,047,944$ 1,047,944$ 62,075$ 63,830$ 67,568$ 70,206$ 81,934$ -$ 117,376 92,565 (165,717) 130,284 161,895 - - (174,884) - (47,041) - - (8,297) (8,951) (8,947) (12,172) (9,860) - 171,154 (27,440) (107,096) 141,277 233,969 - 951,744 1,122,898 1,095,458 988,362 1,129,639 1,363,608 1,122,898$ 1,095,458$ 988,362$ 1,129,639$ 1,363,608$ 1,363,608$ (312,965)$ (357,561)$ (199,433)$ (123,797)$ (315,664)$ (315,664)$ 138.6%148.5%125.3%112.3%130.1%130.1% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a See notes to required supplementary information. 82 2016 2017 2018 2019 Employer Statutorily determined contribution (SDC)-$ -$ -$ -$ Contribution in relation to the SDC 3,000 3,000 3,000 3,000 Contribution deficiency (excess)(3,000)$ (3,000)$ (3,000)$ (3,000)$ Non-employer 2% aid 60,111$ 55,310$ 53,565$ 55,653$ Covered employee payroll n/a n/a n/a n/a Contributions as a percentage of covered employee payroll n/a n/a n/a n/a Measurement Date City of St. Joseph Schedule of Employer Contributions and Non-Employer Contributing Entities - Fire Relief Association 83 2020 2021 2022 2023 2024 2025 -$ -$ -$ -$ -$ -$ 3,000 3,000 6,000 - 6,000 3,000 (3,000)$ (3,000)$ (6,000)$ -$ (6,000)$ (3,000)$ 59,075$ 60,830$ 61,568$ 70,206$ 75,934$ 89,535$ n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Measurement Date City of St. Joseph Notes to Required Supplementary Information 84 General Employees Fund 2025 Changes Changes in Actuarial Assumptions • The combined service annuity loading factors increased from 15% to 19% for vested, terminated members and from 3% to 44% for non-vested, terminated members. • The assumed post-retirement benefit increase changed from 1.25% to 1.5%. Changes in Plan Provisions • The post-retirement benefit increase formula changed to 100% of the Social Security annual increase, between 1% and 1.75%, beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less than 85% for the last two consecutive annual valuations or is less than 80% in the most recent actuarial valuation, the maximum is reduced to 1.5%. Previously, the benefit increase was 50% of the Social Security annual increase, between 1% and 1.5%. • The 1% additional employer contribution is eliminated when the plan reaches 98% funded status (on an actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100% funded status. 2024 Changes Changes in Actuarial Assumptions • Rates of merit and seniority were adjusted, resulting in slightly higher rates. • Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2 members. • Minor increase in assumed withdrawals for males and females. • Lower rates of disability. • Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent experience study. • Minor changes to form of payment assumptions for male and female retirees. • Minor changes to assumptions made with respect to missing participant data. Changes in Plan Provisions • The workers' compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to reflect the changes in assumptions. 2023 Changes Changes in Actuarial Assumptions • The investment return assumption and single discount rate were changed from 6.5% to 7.0%. Changes in Plan Provisions • An additional one-time direct state aid contribution of $170.1 million was contributed to the Plan on October 1, 2023. • The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. • The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. • A one-time, non-compounding benefit increase of 2.5% minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. 2022 Changes Changes in Actuarial Assumptions • The mortality improvement scale was changed from scale MP-2020 to scale MP-2021. City of St. Joseph Notes to Required Supplementary Information 85 General Employees Fund (Continued) 2022 Changes (Continued) Changes in Plan Provisions • There have been no changes since the prior valuation. 2021 Changes Changes in Actuarial Assumptions • The investment return and single discount rates were changed from 7.5% to 6.5% for financial reporting purposes. • The mortality improvement scale was changed from scale MP-2019 to scale MP-2020. Changes in Plan Provisions • There have been no changes since the prior valuation. 2020 Changes Changes in Actuarial Assumptions • The price inflation assumption was decreased from 2.5% to 2.25%. • The payroll growth assumption was decreased from 3.25% to 3.0%. • Assumed salary increase rates were changed as recommended in the June 30, 2019, experience study. The net effect is assumed rates that average 0.25% less than previous rates. • Assumed rates of retirement were changed as recommended in the June 30, 2019, experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. • Assumed rates of termination were changes as recommended in the June 30, 2019, experience study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter. • Assumed rates of disability were changed as recommended in the June 30, 2019, experience study. The change results in fewer predicted disability retirements for males and females. • The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments. • The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. • The assumed spouse age difference was changed from two years older for females to one year older. • The assumed number of married male new retirees electing the 100% Joint and Survivor option changed from 35% to 45%. The assumed number of married female new retires electing the 100% Joint and Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. Changes in Plan Provisions • Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 Changes Changes in Actuarial Assumptions • The mortality projection scale was changed from MP-2017 to MP-2018. City of St. Joseph Notes to Required Supplementary Information 86 General Employees Fund (Continued) 2019 Changes (Continued) Changes in Plan Provisions • The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2018 Changes Changes in Actuarial Assumptions • The mortality projection scale was changed from MP-2015 to MP-2017. • The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per year thereafter to 1.25% per year. Changes in Plan Provisions • The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. • Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1, 2018. • Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. • Contribution stabilizer provisions were repealed. • Annual increases were changed from 1.00% per year with a provision to increase to 2.50% upon attainment of 90.00% funding ratio to 50.00% of the Social Security Cost of Living Adjustment, not less than 1.00% and not more than 1.50%, beginning January 1, 2019. • For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age. This does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. • Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 Changes Changes in Actuarial Assumptions • The CSA loads were changed from 0.8% for active members and 60% for vested and non-vested deferred members. The revised CSA loads are now 0.0% for active member liability, 15% for vested deferred member liability and 3% for non-vested deferred member liability. • The assumed annual increase rate was changed from 1.0% per year for all years to 1.0% per year through 2044 and 2.5% per year thereafter. Changes in Plan Provisions • The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter. • The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The State's contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031. 2016 Changes Changes in Actuarial Assumptions • The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year thereafter to 1.0% per year for all future years. City of St. Joseph Notes to Required Supplementary Information 87 General Employees Fund (Continued) 2016 Changes (Continued) Changes in Actuarial Assumptions (Continued) • The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%. • Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, the inflation was decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Changes in Plan Provisions • There have been no changes since the prior valuation. City of St. Joseph Notes to Required Supplementary Information 88 Police and Fire Fund 2025 Changes Changes in Actuarial Assumptions • Assumed rates of salary increases were reduced slightly. • Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full) retirements and an overall increase in reduced (early) retirements. • Assumed rates of withdrawal were modified; the new rates will increase predicted terminations, especially in the first few years of employment. • Assumed rates of disabled retirement were significantly increased, especially for ages over age 30. • Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit observed experience. • Percent married assumption for female retirees lowered from 70% to 65%. • Minor changes were made to form of payment assumptions for retirees. • Minor changes were made to assumptions made with respect to missing participant data. • The combined service annuity load changed from 33% to 13% for vested, terminated members and from 2% to 38% for non-vested, terminated members. Changes in Plan Provisions • The period of time needed for benefit recipients to receive their first benefit increase was reduced by one year (from 36 months to 24 months for a full increase). • The January 1, 2026, benefit increase changed from 1% to 3%; subsequent January 1 increases will be 1%. • The threshold to end the $9 million annual state aid contribution changed from the earlier of July 1, 2048, or 90% funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years to 100% funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years (on an actuarial value of assets basis). • The threshold to end the additional $9 million annual state aid contribution changed from the earlier of July 1, 2048 or 100% funded for a minimum of three consecutive years to 110% funded for a minimum of three consecutive years (on an actuarial value of assets basis). • An additional $17.7 million in direct state aid will be paid annually each October 1 beginning October 1, 2025, through June 30, 2048. • Joint and survivor actuarial equivalent factors were updated to reflect changes in assumptions. 2024 Changes Changes in Plan Provisions • The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police and Fire Plan and the State Patrol Retirement Fund attain 90% funded status for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90% funded status for one year. • The additional $9.0 million contribution will continue until the Police and Fire Plan is fully funded for a minimum of three consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution was previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year (or July 1, 2048 if earlier). City of St. Joseph Notes to Required Supplementary Information 89 Police and Fire Fund (Continued) 2023 Changes Changes in Actuarial Assumptions • The investment return assumption was changed from 6.5% to 7.0%. • The single discount rate changed from 5.4% to 7.0%. Changes in Plan Provisions • Additional one-time direct state aid contribution of 19.4 million will be contributed to the Plan on October 1, 2023. • Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years, increasing incrementally to 100% after 10 years. • A one-time, non-compounding benefit increase of 3.0% will be payable in a lump sum for calendar year 2024 by March 31, 2024. • Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a psychological condition relating to the member's occupation. • The total and permanent duty disability benefit was increased, effective July 1, 2023. 2022 Changes Changes in Actuarial Assumptions • The mortality improvement scale was changed from scale MP-2020 to scale MP-2021. • The single discount rate was changed from 6.5% to 5.4%. Changes in Plan Provisions • There have been no changes since the prior valuation. 2021 Changes Changes in Actuarial Assumptions • The investment return and single discount rates were changed from 7.5% to 6.5% for financial reporting purposes. • The inflation assumption was changed from 2.5% to 2.25%. • The payroll growth assumption was changed from 3.25% to 3.0%. • The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 Public Safety mortality table. The mortality improvement scale was changed from MP-2019 to MP-2020. • The base mortality table for disabled annuitants was changed from the RP-2014 healthy annuitant mortality table (with future mortality improvement according to scale MP-2019) to the Pub-2010 Public Safety disabled annuitant mortality table (with future mortality improvement according to scale MP-2020). • Assumed rates of salary increase were modified as recommended in the July 14, 2020, experience study. The overall impact is a decrease in gross salary increase rates. • Assumed rates of retirement were changed as recommended in the July 14, 2020, experience study. The changes resulted in slightly more unreduced retirements and fewer assumed early retirements. • Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes resulted in more assumed terminations. • Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates resulted in more projected disabilities. • Assumed % married for active female members was changed from 60% to 70%. Minor changes to form of payment assumptions were applied. City of St. Joseph Notes to Required Supplementary Information 90 Police and Fire Fund (Continued) 2021 Changes (Continued) Changes in Plan Provisions • There have been no changes since the prior valuation. 2020 Changes Changes in Actuarial Assumptions • The mortality projection scale was changed from MP-2018 to MP-2019. Changes in Plan Provisions • There have been no changes since the prior valuation. 2019 Changes Changes in Actuarial Assumptions • The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions • There have been no changes since the prior valuation. 2018 Changes Changes in Actuarial Assumptions • The mortality projection scale was changed from MP-2016 to MP-2017. Changes in Plan Provisions • Annual increases were changed to 1.00% for all years, with no trigger. • An end date of July 1, 2048, was added to the existing $9.0 million state contribution. • New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter until the plan reaches 100% funding, or July 1, 2048, if earlier. • Member contributions were changed from 10.80% to 11.30% of pay, effective January 1, 2019, and 11.80% of pay, effective January 1, 2020. • Employer contributions were changed from 16.20% to 16.95% of pay, effective January 1, 2019, and 17.70% of pay, effective January 1, 2020. • Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1, 2018. • Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. • Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 Changes Changes in Actuarial Assumptions • Assumed salary increases were changed as recommended in the June 30, 2016, experience study. The net effect is proposed rates that average 0.34% lower than the previous rates. • Assumed rates of retirement were changed, resulting in fewer retirements. • The CSA load was 30% for vested and non-vested deferred members. The CSA has been changed to 33% for vested members and 2% for non-vested members. • The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. City of St. Joseph Notes to Required Supplementary Information 91 Police and Fire Fund (Continued) 2017 Changes (Continued) Changes in Actuarial Assumptions (Continued) • Assumed termination rates were decreased to 3% for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. • Assumed percentage of married female members was decreased from 65% to 60%. • Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. • The assumed percentage of female members electing Joint and Survivor annuities was increased. • The assumed annual benefit increase rate was changed from 1% for all years to 1% per year through 2064 and 2.5% thereafter. • The single discount rate was changed from 5.6% per annum to 7.5% per annum. Changes in Plan Provisions • There have been no changes since the prior valuation. 2016 Changes Changes in Actuarial Assumptions • The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% thereafter to 1.0% per year for all future years. • The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%. • The single discount rate changed from 7.90% to 5.60%. • The assumed future salary increases, payroll growth, and inflation was decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Changes in Plan Provisions • There have been no changes since the prior valuation. City of St. Joseph Notes to Required Supplementary Information 92 Fire Relief Association 2025 Changes There have been no changes since the prior valuation. An update to the City's net pension liability/asset amount was not available as the relief association joined PERA for its plan administration effect January 1, 2025. The table below presents the changes in net pension liability during the previous year. Updated net pension liability or asset information will be provided by PERA and available for presentation in the December 31, 2026, financial statements. 2024 Changes Changes in Plan Provisions • The benefit level increased from $3,200 to $3,600. • The discount rate was changed from 4.75% to 5.75%. 2023 Changes Changes in Plan Provisions • The benefit level increased from $2,400 to $3,200 per year. 2022 Changes Changes in Plan Provisions • The disability, mortality and withdrawal assumptions were updated from the rates used in the July 1, 2020, Minnesota PERA Police & Fire Plan actuarial valuation to the rates use in the July 1, 2022, Minnesota PERA Police & Fire Plan actuarial valuation. • The inflation assumption decreased from 2.50% to 2.25%. 2021 Changes Changes in Plan Provisions • The benefit level increased from $2,300 to $2,400 per year. 2020 Changes Changes in Plan Provisions • The benefit level increased from $2,100 to $2,300 per year. Changes in Actuarial Assumptions • The discount rate was changed from 5.25% to 4.75%. 93 SUPPLEMENTARY INFORMATION 94 Original and Final Budget Actual Amounts Revenues Property taxes 2,962,074$ 2,957,833$ (4,241)$ Sales taxes - 42 42 Miscellaneous taxes 750 - (750) Special assessments 5,500 52,727 47,227 Franchise fees 206,590 225,799 19,209 Licenses and permits 208,720 283,499 74,779 Intergovernmental revenue Local government aid 1,491,646 1,491,646 - Police aid 122,000 178,235 56,235 Federal grants 1,500 778 (722) State grants 121,505 222,770 101,265 Other grants and aids 17,000 21,459 4,459 Total intergovernmental revenue 1,753,651 1,914,888 161,237 Charges for services General government 22,815 29,009 6,194 Public safety 3,500 3,646 146 Public works 3,075 3,098 23 Culture and recreation 35,350 43,728 8,378 Total charges for services 64,740 79,481 14,741 Fines and forfeitures 66,000 60,792 (5,208) Miscellaneous revenues Investment income 50,000 205,085 155,085 Contributions and donations 3,650 5,045 1,395 Other 50,370 65,816 15,446 Total miscellaneous revenues 104,020 275,946 171,926 Total revenues 5,372,045 5,851,007 478,962 Expenditures General government Mayor and council 104,430 83,836 (20,594) Administrative and finance 875,845 872,773 (3,072) Other general government 327,550 325,818 (1,732) Capital outlay 24,000 14,798 (9,202) Total general government 1,331,825 1,297,225 (34,600) City of St. Joseph Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund Variance with Final Budget - Over (Under) Year Ended December 31, 2025 95 Actual Amounts Expenditures Public safety Police Current 2,389,765$ 2,204,531$ (185,234)$ Capital outlay 47,735 637,101 589,366 Total police 2,437,500 2,841,632 404,132 Fire Current 75,000 - (75,000) Other Current 113,805 125,873 12,068 Capital outlay 1,500 - (1,500) Total other 115,305 125,873 10,568 Total public safety 2,627,805 2,967,505 339,700 Public works Streets and highways Street maintenance and storm sewers 494,235 548,112 53,877 Snow and ice removal 193,245 133,431 (59,814) Street engineering 45,000 59,802 14,802 Capital outlay 275,317 191,716 (83,601) Total public works 1,007,797 933,061 (74,736) Culture and recreation Current 563,015 539,980 (23,035) Capital outlay 44,217 112,533 68,316 Total culture and recreation 607,232 652,513 45,281 Total expenditures 5,574,659 5,850,304 275,645 Excess of revenues over (under) expenditures (202,614) 703 203,317 Other Financing Sources (Uses) Sale of property 21,500 29,065 7,565 Transfers in 11,205 12,866 1,661 Transfers out (13,500) (159,715) (146,215) Total other financing sources (uses)19,205 (117,784) (136,989) Net change in fund balances (183,409)$ (117,081) 66,328$ Fund Balances Beginning of year 5,120,366 End of year 5,003,285$ Variance with Final Budget - Over (Under) City of St. Joseph Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund Year Ended December 31, 2025 Original and Final Budget 96 Economic Development Authority (250) TIF 2-1 Millstream Shops and Lofts (257) TIF 2-3 Bayou Blues/ Alley Flat (259) TIF 4-1 Fortitude Senior Housing (253) Assets Cash and investments 106,513$ 51,380$ 2,348$ 45,332$ Taxes receivable - delinquent 1,438 - - - Special assessments receivable Delinquent - - - - Deferred - - - - Accounts receivable - - - - Interest receivable 642 310 13 254 Due from other governments 5,931 1,237 - - Notes receivable - - - - Total assets 114,524$ 52,927$ 2,361$ 45,586$ Liabilities Accounts payable 5,754$ 1,113$ -$ -$ Contracts payable - - - - Salaries and benefits payable 1,197 - - - Total liabilities 6,951 1,113 - - Deferred Inflows of Resources Unavailable revenue - property taxes 1,438 - - - Unavailable revenue - special assessments - - - - Total deferred inflows of resources 1,438 - - - Fund Balances Restricted - 51,814 2,361 45,586 Committed 106,135 - - - Assigned - - - - Total fund balances 106,135 51,814 2,361 45,586 Total liabilities, deferred inflows of resources, and fund balances 114,524$ 52,927$ 2,361$ 45,586$ City of St, Joseph Combining Balance Sheet - Nonmajor Governmental Funds Special Revenue December 31, 2025 97 State Collected Sales Tax (200) Park Dedication (205) Charitable Gambling (215) Lodging Tax (220) Revolving Loan (251) Deed Housing (225) 1,743,288$ 96,765$ 2,340$ 40,327$ 681,304$ 61,116$ - - - - - - - - - - - - - - - - - - - 28 - 1,960 - - 9,413 1,382 10 201 3,633 367 251,735 365,262 - - - - - - - - 15,582 - 2,004,436$ 463,437$ 2,350$ 42,488$ 700,519$ 61,483$ -$ 1,739$ -$ -$ -$ -$ - - - - - - - - - - - - - 1,739 - - - - - - - - - - - - - - - - - - - - - - 2,004,436 461,698 2,350 42,488 15,417 61,483 - - - - 685,102 - - - - - - - 2,004,436 461,698 2,350 42,488 700,519 61,483 2,004,436$ 463,437$ 2,350$ 42,488$ 700,519$ 61,483$ Special Revenue 98 Special Revenue St. Joseph Fire Services (210) G.O. Equipment Certificates of 2023A (318) G.O. Improvement Bonds of 2023A (317) G.O. Capital Improvement Plan Bonds of 2016A (301) Assets Cash and investments 861,038$ 18,137$ 107,532$ 22,215$ Taxes receivable - delinquent - 478 873 1,238 Special assessments receivable Delinquent - - 353 - Deferred - - 139,009 - Accounts receivable 2,400 - - - Interest receivable 4,236 393 3,474 630 Due from other governments 1,326 631 1,220 1,569 Notes receivable - - - - Total assets 869,000$ 19,639$ 252,461$ 25,652$ Liabilities Accounts payable 7,769$ 435$ -$ -$ Contracts payable - - - - Salaries and benefits payable 100,214 - - - Total liabilities 107,983 435 - - Deferred Inflows of Resources Unavailable revenue - property taxes - 478 873 1,238 Unavailable revenue - special assessments - - 139,362 - Total deferred inflows of resources - 478 140,235 1,238 Fund Balances Restricted 761,017 18,726 112,226 24,414 Committed - - - - Assigned - - - - Total fund balances 761,017 18,726 112,226 24,414 Total liabilities, deferred inflows of resources, and fund balances 869,000$ 19,639$ 252,461$ 25,652$ December 31, 2025 City of St. Joseph Debt Service Combining Balance Sheet - Nonmajor Governmental Funds 99 G.O. Industrial Park Bonds of 2019A (308) G.O. Improvement Bonds of 2019A (307) 2021 Improvement Bond [MN St/Overlays] (311) G.O. Improvement Bond of 2020B (310) G.O. Capital Improvement Bonds of 2020B (312) Taxable Crossover Improvement Bonds of 2014A/2020C (314) 1,154,253$ 140,628$ 496,921$ 353,077$ 3,465$ 5,702$ - 475 715 50 393 836 - - 313 - - 498 156,181 150,556 187,609 24,840 - 37,729 - - - - - - 8,410 1,334 3,937 2,497 110 184 - 2,084 1,026 36 489 1,085 - - - - - - 1,318,844$ 295,077$ 690,521$ 380,500$ 4,457$ 46,034$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - 475 715 50 393 836 156,181 150,556 187,922 24,840 - 38,227 156,181 151,031 188,637 24,890 393 39,063 1,162,663 144,046 501,884 355,610 4,064 6,971 - - - - - - - - - - - - 1,162,663 144,046 501,884 355,610 4,064 6,971 1,318,844$ 295,077$ 690,521$ 380,500$ 4,457$ 46,034$ Debit Service 100 G.O. Abatement Bonds 2022A (302) G.O. Improvement Bonds of 2022 (315) G.O. Equipment Certificate 2022A (316) 2024A G.O. Improvement Bonds of 2024 (319) Assets Cash and investments 896,007$ 28,811$ 15,008$ 578,229$ Taxes receivable - delinquent - 1,304 1,035 434 Special assessments receivable Delinquent - - - - Deferred - 101,696 - 114,584 Accounts receivable - - - - Interest receivable 7,303 792 615 3,683 Due from other governments - 2,234 1,651 725 Notes receivable - - - - Total assets 903,310$ 134,837$ 18,309$ 697,655$ Liabilities Accounts payable -$ -$ -$ 889$ Contracts payable - - - 49,740 Salaries and benefits payable - - - - Total liabilities - - - 50,629 Deferred Inflows of Resources Unavailable revenue - property taxes - 1,304 1,035 434 Unavailable revenue - special assessments - 101,696 - 114,584 Total deferred inflows of resources - 103,000 1,035 115,018 Fund Balances Restricted 903,310 31,837 17,274 532,008 Committed - - - - Assigned - - - - Total fund balances 903,310 31,837 17,274 532,008 Total liabilities, deferred inflows of resources, and fund balances 903,310$ 134,837$ 18,309$ 697,655$ Debt Service City of St. Joseph Combining Balance Sheet - Nonmajor Governmental Funds December 31, 2025 101 G.O. Improvement Refunding Bonds of 2025A (320) 2025A Equipment Certificate (321) 2025 Equipment Certificate (421) Water Access Fund (501) Sewer Access Fund (502) Total Governmental Funds 159,108$ 1,834$ 260,051$ 514,841$ 271,995$ 8,719,565$ - - - - - 9,269 - - - - - 1,164 242,067 - - - - 1,154,271 5,007 - - - - 9,395 1,515 275 - - - 55,613 - - - - - 638,241 - - - - - 15,582 407,697$ 2,109$ 260,051$ 514,841$ 271,995$ 10,603,100$ -$ -$ -$ -$ -$ 17,699$ - - - - - 49,740 - - - - - 101,411 - - - - - 168,850 - - - - - 9,269 242,067 - - - - 1,155,435 242,067 - - - - 1,164,704 165,630 2,109 - - - 7,431,422 - - - - - 791,237 - - 260,051 514,841 271,995 1,046,887 165,630 2,109 260,051 514,841 271,995 9,269,546 407,697$ 2,109$ 260,051$ 514,841$ 271,995$ 10,603,100$ Capital ProjectsDebit Service 102 Economic Development Authority (250) TIF 2-1 Millstream Shops and Lofts (257) TIF 2-3 Bayou Blues/Alley Flat (259) TIF 4-1 Fortitude Senior Housing (253) Revenues Property taxes 231,039$ -$ -$ -$ Tax increments - 49,079 46,057 80,774 Sales taxes - - - - Lodging taxes - - - - Special assessments - - - - Intergovernmental - - - - Charges for services 9,382 - - - Miscellaneous Investment income 4,967 2,401 101 1,963 Contributions and donations - - - - Revolving loan repayments - - - - Other - - - - Total revenues 245,388 51,480 46,158 82,737 Expenditures Current Public safety - - - - Culture and recreation - - - - Economic development 177,616 48,321 42,843 74,115 Debt service Principal - - - - Interest and other charges - - - - Capital outlay General government - - - - Public safety - - - - Public works - - - - Culture and recreation - - - - Economic development 1,063 - - - Total expenditures 178,679 48,321 42,843 74,115 Excess of revenues over (under) expenditures 66,709 3,159 3,315 8,622 Other Financing Sources (Uses) Bonds issued - - - - Bond premium - - - - Transfers in - - - - Transfers out (80,000) - - - Total other financing sources (uses)(80,000) - - - Net change in fund balances (13,291) 3,159 3,315 8,622 Fund Balances Beginning of year 119,426 48,655 (954) 36,964 End of year 106,135$ 51,814$ 2,361$ 45,586$ Special Revenue City of St. Joseph Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended December 31, 2025 103 State Collected Sales Tax (200) Park Dedication (205) Charitable Gambling (215) Lodging Tax (220) Revolving Loan (251) Deed Housing (225) -$ 50,000$ -$ -$ -$ -$ - - - - - - 672,696 - - - - - - - - 14,860 - - - - - - - - - 519,713 - - - - - 3,851 - - - - 72,866 10,700 76 1,553 28,122 2,840 - 80 - - - - - - - - 663 - - - - 1,438 - - 745,562 584,344 76 17,851 28,785 2,840 - - - - - - - - 1,492 - - - - - - 12,466 1,750 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 623,976 - - - - - - - - - - - 623,976 1,492 12,466 1,750 - 745,562 (39,632) (1,416) 5,385 27,035 2,840 - - - - - - - - - - - - - - 3,000 10,000 70,000 - (450,000) - - - - - (450,000) - 3,000 10,000 70,000 - 295,562 (39,632) 1,584 15,385 97,035 2,840 1,708,874 501,330 766 27,103 603,484 58,643 2,004,436$ 461,698$ 2,350$ 42,488$ 700,519$ 61,483$ Special Revenue 104 Special Revenue St. Joseph Fire Services (210) G.O. Equipment Certificates of 2023A (318) G.O. Improvement Bonds of 2023A (317) G.O. Capital Improvement Plan Bonds of 2016A (301) Revenues Property taxes 240,860$ 89,868$ 174,458$ 224,449$ Tax increments - - - - Sales taxes - - - - Lodging taxes - - - - Special assessments - - 33,322 - Intergovernmental 13,829 - - - Charges for services 163,384 - - - Miscellaneous Investment income 32,788 3,045 26,896 4,874 Contributions and donations 32,085 - - - Revolving loan repayments - - - - Other 2,513 - - - Total revenues 485,459 92,913 234,676 229,323 Expenditures Current Public safety 374,377 - - - Culture and recreation - - - - Economic development - - - - Debt service Principal - 85,000 190,000 205,000 Interest and other charges - 17,404 81,815 67,312 Capital outlay General government - - - - Public safety 8,974 435 - - Public works - - 1,638 - Culture and recreation - - - - Economic development - - - - Total expenditures 383,351 102,839 273,453 272,312 Excess of revenues over (under) expenditures 102,108 (9,926) (38,777) (42,989) Other Financing Sources (Uses) Bonds issued - - - - Bond premium - - - - Transfers in - - - - Transfers out (10) - - - Total other financing sources (uses)(10) - - - Net change in fund balances 102,098 (9,926) (38,777) (42,989) Fund Balances Beginning of year 658,919 28,652 151,003 67,403 End of year 761,017$ 18,726$ 112,226$ 24,414$ City of St. Joseph Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended December 31, 2025 Debt Service 105 G.O. Industrial Park Bonds of 2019A (308) G.O. Improvement Bonds of 2019A (307) 2021 Improvement Bond [MN St/Overlays] (311) 2020A Equipment Certificate (309) G.O. Improvement Bond of 2020B (310) G.O. Capital Improvement Bonds of 2020B (312) -$ 79,814$ 124,721$ 46,500$ 4,782$ 69,887$ - - - - - - - - - - - - - - - - - - 45,609 69,739 - - - - - - - - - - - - - - - 86,547 10,324 30,480 534 19,331 852 - - - - - - - - - - - - - - - - - - 86,547 135,747 224,940 47,034 24,113 70,739 - - - - - - - - - - - - - - - - - - 215,000 155,000 260,000 45,000 65,000 60,000 49,525 35,075 74,039 728 8,809 10,389 - - - - - - - - - - - - 79 - - - - - - - - - - - - - - - - - 264,604 190,075 334,039 45,728 73,809 70,389 (178,057) (54,328) (109,099) 1,306 (49,696) 350 - - - - - - - - - - - - - - 39,670 - - - - - - (1,661) - - - - 39,670 (1,661) - - (178,057) (54,328) (69,429) (355) (49,696) 350 1,340,720 198,374 571,313 355 405,306 3,714 1,162,663$ 144,046$ 501,884$ -$ 355,610$ 4,064$ Debt Service 106 Taxable Crossover Improvement Bonds of 2014A/2020C (314) G.O. Abatement Bonds 2022A (302) G.O. Improvement Bonds of 2022 (315) G.O. Equipment Certificate 2022A (316) Revenues Property taxes 149,769$ -$ 53,453$ 41,205$ Tax increments - - - - Sales taxes - - - - Lodging taxes - - - - Special assessments 10,266 - 19,350 - Intergovernmental - - - - Charges for services - - - 37,438 Miscellaneous Investment income 1,427 56,531 6,132 4,759 Contributions and donations - - - - Revolving loan repayments - - - - Other - - - - Total revenues 161,462 56,531 78,935 83,402 Expenditures Current Public safety - - - - Culture and recreation - - - - Economic development - - - - Debt service Principal 150,000 225,000 65,000 70,000 Interest and other charges 11,696 231,370 19,675 21,673 Capital outlay General government - - - - Public safety - - - - Public works - - - - Culture and recreation - - - - Economic development - - - - Total expenditures 161,696 456,370 84,675 91,673 Excess of revenues over (under) expenditures (234) (399,839) (5,740) (8,271) Other Financing Sources (Uses) Bonds issued - - - - Bond premium - - - - Transfers in - 445,000 - - Transfers out - - - - Total other financing sources (uses)- 445,000 - - Net change in fund balances (234) 45,161 (5,740) (8,271) Fund Balances Beginning of year 7,205 858,149 37,577 25,545 End of year 6,971$ 903,310$ 31,837$ 17,274$ Debt Service City of St. Joseph Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended December 31, 2025 107 2024A G.O. Improvement Bonds of 2024 (319) G.O. Improvement Refunding Bonds of 2025A (320) 2025A Equipment Certificate (321) 2023 Equipment Certificates (418) 2023 Street Imp/Elm St ROW Acq (417) 2024 Street Improvement Project (419) 105,176$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - 31,109 154,028 - - 57,451 - - - - - - - - - - - - - 28,512 11,729 2,132 - - 1 - - - - - - - - - - - - - - - - - - 164,797 165,757 2,132 - 57,451 1 - - - - - - - - - - - - - - - - - - 98,000 - - - - - 50,228 57,920 13,680 - - - - - - 17,273 - - - - - 11,470 - - 27,671 - - - 718,210 - - - - 958 - - - - - - - - 175,899 57,920 13,680 29,701 718,210 - (11,102) 107,837 (11,548) (29,701) (660,759) 1 - - - - - - - 57,793 13,657 - - - 365,169 - - - - - - - - - - (365,169) 365,169 57,793 13,657 - - (365,169) 354,067 165,630 2,109 (29,701) (660,759) (365,168) 177,941 - - 29,701 660,759 365,168 532,008$ 165,630$ 2,109$ -$ -$ -$ Debt Service Capital Projects 108 (THIS PAGE LEFT BLANK INTENTIONALLY) 109 2025 Equipment Certificate (421) Water Access Fund (501) Sewer Access Fund (502) Total Other Governmental Funds Revenues Property taxes -$ -$ -$ 1,685,981$ Tax increments - - - 175,910 Sales taxes - - - 672,696 Lodging taxes - - - 14,860 Special assessments - - - 420,874 Intergovernmental - - - 533,542 Charges for services - 199,150 204,847 618,052 Miscellaneous Investment income - - - 452,483 Contributions and donations - - - 32,165 Revolving loan repayments - - - 663 Other - - - 3,951 Total revenues - 199,150 204,847 4,611,177 Expenditures Current Public safety - - - 374,377 Culture and recreation - - - 1,492 Economic development - - - 357,111 Debt service Principal - - - 1,888,000 Interest and other charges - - - 751,338 Capital outlay General government - - - 17,273 Public safety 116,994 - - 137,873 Public works 23,250 - - 770,848 Culture and recreation 28,549 - - 653,483 Economic development - - - 1,063 Total expenditures 168,793 - - 4,952,858 Excess of revenues over (under) expenditures (168,793) 199,150 204,847 (341,681) Other Financing Sources (Uses) Bonds issued 410,000 - - 410,000 Bond premium 18,844 - - 90,294 Transfers in - - - 932,839 Transfers out - - - (896,840) Total other financing sources (uses)428,844 - - 536,293 Net change in fund balances 260,051 199,150 204,847 194,612 Fund Balances Beginning of year - 315,691 67,148 9,074,934 End of year 260,051$ 514,841$ 271,995$ 9,269,546$ Capital Projects City of St. Joseph Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended December 31, 2025 110 (THIS PAGE LEFT BLANK INTENTIONALLY) 111 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditor's Report Honorable Mayor and Members of the City Council City of St. Joseph St. Joseph, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Joseph, Minnesota, as of and for the year ended December 31, 2025, and the related notes to financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 4, 2026. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did identify a certain deficiency in internal control, as described in the accompanying Schedule of Finding and Response on Internal Control that we consider to be a material weakness, listed as audit finding 2025-001. 112 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. City's Response to Finding Government Auditing Standards requires the auditor to perform limited procedures on the City's response to the finding identified in our audit is described in the accompanying Schedule of Finding and Response on Internal Control. The City's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. St. Cloud, Minnesota May 4, 2026 113 Minnesota Legal Compliance Independent Auditor's Report Honorable Mayor and Members of the City Council City of St. Joseph St. Joseph, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Joseph, Minnesota, as of and for the year ended December 31, 2025, and the related notes to financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 4, 2026. In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the contracting – bid laws, depositories of public funds and public investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota Statutes § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions, insofar as they relate to accounting matters. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. St. Cloud, Minnesota May 4, 2026 City of St. Joseph Schedule of Finding and Response on Internal Control 114 CURRENT AND PRIOR YEAR INTERNAL CONTROL FINDING Material Weakness Audit Finding 2025-001 – Improve Segregation of Accounting Duties Adequate segregation of accounting duties is in place when the four areas of a transaction have been separated: authorization, custody, recording, and reconciliation. As part of this year's audit, we reviewed the City's documentation of its internal control over significant areas including: cash receipts, cash disbursements, capital assets, payroll, and utility billing. The lack of adequate segregation of accounting duties could adversely affect the City's ability to initiate, record, process, and report financial data consistent with the assertions of management in the financial statements. Some of the areas in which we noticed a lack of segregation or an overlap in duties are as follows: Cash Receipts The Administrative Assistant enters cash and checks into the point-of-sale system and reconciles daily receipts. The Account Technician sends late notices/calculate penalties. The Police Clerk records police receipts and receives payments. The Lead Records Technician reconciles the collections. A Police Officer takes the deposit to the bank. Cash Disbursements The Finance Director is also an authorized signer and has access to the Mayor's electronic signature. The Administrator reviews and approves checks for payment. At year-end, the Finance Director reconciles and records accounts and contracts payable. Capital Assets The Finance Director records, processes, reconciles, and posts journal entries related to capital assets. Department heads review their listing for accuracy. Payroll The Finance Technician enters employees' time, processes and posts payroll, generates a payroll report, distributes paystubs to employees, and posts the journal entries related to payroll. In addition, this same employee reconciles payroll accruals. The Finance Director reviews payroll reports and time off balances and calculates compensated absences balances for the audit. Utility Billing The Account Technician enters new accounts into the utility billing system and uploads meter readings via interfacing with electronic readers. The Account Technician enters any rate changes to the system and can enter manual adjustments. The Account Technician calculates and enters final bills, prints, and mails utility bills, reconciles receipts to billed amounts, and enters receipts batches. The Finance Director approves adjustments and rate changes, and spots check individual utility bill calculations. Cash Reconciliation and Access The Finance Director performs the above noted responsibilities, while also reconciling cash, and generating manual journal entries. 115 City of St. Joseph Schedule of Finding and Response on Internal Control CURRENT AND PRIOR YEAR INTERNAL CONTROL FINDING (CONTINUED) Material Weakness (Continued) Audit Finding 2025-001 – Improve Segregation of Accounting Duties (Continued) City's Response: The City Council and City staff are aware of the limited personnel handling the City's financial matters. The processes and internal controls are reviewed frequently to look for ways to improve internal controls. The department heads, City Clerk, Administrative Assistant, City Administrator and City Council each have active roles in monitoring the financial matters of the City to provided additional oversight. It is unlikely complete segregation of accountings duties will be achieved due to the cost of hiring several additional staff.