Joint Special Meeting of The Common Council and Shawano Municipal Utility Commission

CITY OF SHAWANO JOINT SPECIAL MEETING OF THE COMMON COUNCIL AND SHAWANO MUNICIPAL UTILITY COMMISSION AGENDA TUESDAY, NOVEMBER 18, 2025 6:00 PM SHAWANO CITY HALL, 127 S. SAWYER STREET, SHAWANO TO JOIN THE MEETING VIA MICROSOFT TEAMS CLICK THE LINK Join the meeting now MEETING ID: 235 867 033 741 8 PASSCODE: VM279Q6C - OPEN PUBLIC HEARING • 2026 CITY OF SHAWANO BUDGET • 2026 SHAWANO MUNICIPAL UTILITIES BUDGET - CLOSE PUBLIC HEARING • MAYOR BRUCE MILAVITZ HAS CALLED A SPECIAL JOINT COMMON COUNCIL/SHAWANO MUNICIPAL UTILITY COMMISSION MEETING TO BE HELD TUESDAY NOVEMBER 18, 2025 TO IMMEDIATELY FOLLOW THE CLOSING OF THE PUBLIC HEARING. THE PURPOSE OF THE MEETING IS AS FOLLOWS: 1) CALL SPECIAL JOINT COMMON COUNCIL/SHAWANO MUNICIPAL COMMISSION MEETING TO ORDER 2) SILENT PRAYER 3) PLEDGE OF ALLEGIANCE 4) JOINT ROLL CALL 5) REPORT OF CLERK FOR COMPLIANCE WITH OPEN MEETING LAW 6) APPROVAL OF AGENDA AND/OR OTHER MATTERS AUTHORIZED BY LAW 7) RESOLUTIONS/ORDINANCES • Resolution No.89-25: Approve 2026 City of Shawano Budget Page 1 of 52  • Resolution No.90-25: Approve 2026 Shawano Municipal Utilities Commission Budget 8) ADJOURNMENT OF JOINT COMMON COUNCIL/SMU COMMISSION MEETING DISABLED ACCESSIBLE (Contact City Clerk prior to meeting if require additional services.) It is possible that members of and possibly a quorum of members of other governmental bodies of the municipality may be in attendance at the above-stated meeting to gather information; no action will be taken by any governmental body at the above-stated meeting other than the governmental body specifically referred to above in this notice. OPEN MEETING LAW COMPLIANCE This agenda was posted in 3 public places (City Hall, Premier Community Bank and the Shawano Library) as well as sent to local news media. Therefore, all laws regarding posting of agendas for open meeting law compliance have been met. Page 2 of 52  City of Shawano, Wisconsin FY 2026 Budget Hearing Presentation NOVEMBER 18, 2025 Page 3 of 52  Budget Summary (2026 vs 2025) 2026 City’s General Property Tax Levy • $6,259,702 (an increase of $151,786 or a 2.49%) Budget • Operating portion increased by $57,899 to $3,584,069 (>95% General Fund) Summary • Debt Service portion increased by $93,887 to $2,675,633 (general city projects) Combined Impact to City Property Taxpayers • $100,000 of Assessed Value will see a $60 increase or 3.16% • $31 from City Levy / $29 from combined County, School District, Tech College Tax Increment District (TID) Levy • $2,238,194 (an increase of $281,899 or a 14.4%, because of new development) City Property Taxes Fund a Portion of Different Budgets • General Fund ($9.7 million budget, 35.1% Levy supported) • Capital Program ($8.1 million budget, 35.1% Debt supported – future debt service) Page 2 Page 4 of 52  The City’s 2026 proposed property tax levy for general operations and debt service is $6,259,702. This is an increase of $151,786 or a 2.49% increase over last year’s general property tax levy. City’s General Purpose 2024/2025 2025/2026 Levy General Property Tax Levy General City Levy General City Levy Year Over Year Change General Fund 3,373,254 3,420,153 46,899 Airport Fund 143,916 154,916 11,000 City Cab Fund 9,000 9,000 - Operating Levy* 3,526,170 3,584,069 57,899 Debt Service Levy 2,581,746 2,675,633 93,887 Total General Levy** 6,107,916 6,259,702 151,786 2.49% * Operating Levy is subject to State of Wisconsin Levy Limit restrictions. ** Total Levy is subject to State of Wisconsin Expenditure Program restrictions. Page 3 Page 5 of 52  Below provides the Citywide Levy amounts for: • General Governmental Purposes (all four units) • Tax Incremental Districts (only for TID eligible projects) Citywide 2025/2026 2025/2026 2025/2026 Levy General City Levy TID Levy* Citywide Levy City of Shawano 6,259,702 1,005,820 7,265,522 Shawano School District 4,340,743 697,478 5,038,221 Shawano County 2,914,927 468,376 3,383,303 VTAE District 413,985 66,520 480,505 13,929,357 2,238,194 16,167,551 less School Tax Credit: (1,055,662) Net Citywide Levy: 15,111,889 * TID Levy paid by properties located in TIDs and retained for TID eligible projects. Page 4 Page 6 of 52  Citywide Tax Levy / Share of Dollar 2025/2026 Property Taxpayers in the City will Citywide Share of pay a total of $15,111,889 but local Citywide Levy Total (%) City of Shawano 6,259,702 38.7% governments will receive Shawano School District 4,340,743 26.8% $16,167,551 with state school Levy Shawano County VTAE District 2,914,927 413,985 18.0% 2.6% credit. The City of Shawano will receive 38.7% City of Shawano TIDs 2,238,194 13.8% Adjacent are the percent allocations. 16,167,551 100.0% of the Citywide Levy for general governmental purposes. Allocation of Total Citywide Levy 13.8% The City will also receive 13.8% of the 2.6% Citywide Levy for TID eligible projects, giving the City a combined 52.6% 38.7% share of the total Citywide Levy. 18.0% 26.8% City of Shawano Shawano School District Shawano County VTAE District City of Shawano TIDs Page 5 Page 7 of 52  All four taxing entities increased the dollars levied year-over-year. The Citywide property tax increase on $100,000 of assessed value is: Year-Over-Year • $60.00 • 3.16% Impact to City 2024/2025 2025/2026 Taxpayers Levy Citywide Mill Rate Levy Citywide Mill Rate City of Shawano 6,982,549 9.1043 7,265,522 9.4171 Shawano School District 5,005,915 6.5270 5,038,221 6.5302 Shawano County 3,177,615 4.1432 3,383,303 4.3852 VTAE District 451,810 0.5891 480,505 0.6228 15,617,889 20.3636 16,167,551 20.9554 (1,055,662) (1.3764) (1,055,662) (1.3683) 14,562,227 18.9872 15,111,889 19.5871 Taxes per $100,000 Assessed Value: $ 1,898.72 $ 1,958.71 Increase ($): $ 60.00 Increase (%): 3.16% Page 6 Page 8 of 52  Assessed vs. Equalized Property Values Assessed vs. We have presented the total property tax dollars to be levied for CY 2026, but how to allocate? Equalized Assessed Values: A local municipal assessor (e.g., Associated Appraisal) Property Values determines each taxable property's assessed value as of January 1st Equalized Values: • The Wisconsin Department of Revenue (DOR) adjusts this local assessed value to create the equalized value. • This adjustment factor includes elements like actual property sales within the municipality over the past year to account for variations in local assessment practices. • The stated goal is to ensure that each type of property has a comparable value across the state, regardless of local assessment methods, which helps ensure that property taxes are distributed fairly. The County, School District, and Tech College levy based on Equalized Values. The City takes Net Citywide Levy and allocates based on Assessed Values. Page 7 Page 9 of 52  Assessed Value (AV) and Equalized Value (EV) Trends The DOR’s two LARGE increases in Equalized Values (2022 & 2025), forces the City’s local assessor to “chase” the State. Low AV / EV ratios temporary lower Utility PILOT payments and assessed value of Manufacturing real estate. Assessed and Equalized Values Assessed to Equalized Value Ratio 1,000,000,000 105% 905,747,100 900,000,000 771,521,600 100% 800,000,000 718,697,200 700,000,000 598,206,400 95% 600,000,000 500,000,000 90% 400,000,000 85.18% 85% 83.23% 300,000,000 200,000,000 80% 100,000,000 0 75% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total Assessed Value Total Equalized Value DOR Assessed to Equalized Ratio Target (100%) Page 10 of 52 Page 8  City Property Taxes Fund a Portion of Different Budgets Budgeted General Property Taxes Other Major Name Rev. / Exp. ($) Share of Total Sources of Revenue General Fund 9,732,572 3,420,153 35.1% State Aids, Public Charges for Service, Special Assessments Debt Service Fund 3,546,493 2,675,633 75.4% TID financed projects paid with TID revenues Capital Projects* 8,083,802 - 0.0% General Obligation Debt Proceeds, Grants, Utility Funds Airport 359,237 154,916 43.1% Fuel Sales, Hangar Rentals City Cab 530,000 9,000 1.7% Operating Grants, New Vehicle Grants, Cab Fares 6,259,702 * Debt Service associated with General City projects financed with Debt Proceeds will be paid back with General Property Taxes. Page 9 Page 11 of 52  General Fund / Newspaper Format Adopted Proposed YOY Budget 2023 2024 2025 2026 Increase % REVENUES: Actual Actual Budget Budget (Decrease) Change Taxes $3,308,497 $3,433,685 $3,464,354 $3,523,452 $59,098 1.7% Special Assessments 1,487 5,490 301,275 310,275 9,000 2.9% General Fund Intergovernmental Revenues 2,198,707 2,625,758 2,700,885 2,795,538 94,653 3.4% Licenses and Permits 216,975 230,094 225,500 225,313 (187) -0.1% Fines, Forfeits and Penalties 88,008 87,012 100,000 96,000 (4,000) -4.2% Public Charges for Services 749,669 791,237 738,000 807,000 69,000 8.6% Intergovernmental Service Charges 645,056 681,908 688,054 763,715 75,661 9.9% The City proposes a balanced budget Miscellaneous Revenue 528,880 578,370 221,040 241,279 20,239 8.4% each year. Other Financing Sources (PILOT) 776,765 930,075 1,065,000 970,000 (95,000) -9.8% TOTAL REVENUES: $8,514,044 $9,363,629 $9,504,108 $9,732,572 $228,464 2.35% EXPENDITURES: Actual results can vary as illustrated by General Government $1,319,566 $1,576,763 $1,511,592 $1,687,791 $176,199 10.4% 2023 and 2024 audited results. Public Safety 3,894,167 4,130,817 4,327,800 4,476,287 148,487 3.3% Public Works 2,170,495 2,041,569 2,241,190 2,112,088 (129,102) -6.1% Health and Human Services 86,077 96,350 133,288 136,744 3,455 2.5% Culture, Recreation and Education 1,070,027 1,162,442 1,195,906 1,218,368 22,461 1.8% Conservation and Development 45,315 55,402 48,332 55,295 6,963 12.6% Transfers to Other Funds 46,000 46,000 46,000 46,000 0 0.0% TOTAL EXPENDITURES: $8,631,647 $9,109,343 $9,504,108 $9,732,572 $228,464 2.35% REVENUE OVER (UNDER) EXPENDITURES ($117,603) $254,286 ($0) $0 Page 12 of 52 Page 10  General Fund / 2026 Notable Adjustments Revenues (up $228,464) • Property Taxes up • State Shared Revenues up General Fund Expenditures (up $228,464) • City’s Health Insurance up slightly (surcharge reduced to 50%) • Cost of Living Adjustments for employee wages • Holding one position at Public Works open for 2026 • One Public Works employee moved to Finance Department • Full year Recreation Center expenses built into 2026 budget Page 13 of 52 Page 11  General Fund / Expenditure Trends General Fund Expenditure Trends $5,000,000 General Fund $4,500,000 4,476,287 Expenditure $4,000,000 Trends $3,500,000 $3,000,000 $2,500,000 2,112,088 $2,000,000 $1,687,791 $1,500,000 1,218,368 $1,000,000 $500,000 136,744 55,295 46,000 $0 General Government Public Safety Public Works Health and Human Culture, Recreation Conservation and Transfers to Other Services and Education Development Funds 2023 Actual 2024 Actual 2025 Budget 2026 Proposed Budget Page 14 of 52 Page 12  General Obligation State Grants Solid Waste Water Fund Sewer Fund Total 2026 Department Request Title Proceeds Airport Airport Capital Contribution 10,000 10,000 Total Airport 10,000 -- -- -- -- 10,000 DPW Major Street 2026 Center St (Main to Sawyer) 142,997 64,856 69,028 276,881 Major Street 2026 Pine St (Bartlett to Franklin) 77,713 26,000 12,107 115,820 Major Street 2026 N Washington St (GB to Fourth) 240,768 91,461 87,166 419,395 Street Repave 2026 Bay Lakes Road 30,000 270,000 300,000 Street Repave 2026 Industrial Dr 199,151 199,151 1,122,404 Street Repave Projects (Option A or Option B) 431,775 431,775 Contingency (Option A) 13,256 13,256 2026 Traffic Signal Replacements (two on E Green Bay) 10,000 90,000 100,000 Used SMU Bucket Truck 15,000 15,000 DPW Pickup Truck 50,000 50,000 Pavement Rejuvenator/Sealcoat 40,000 40,000 Capital Projects Asphalt Crack Filling Services 50,000 50,000 Sidewalk Replacement Program 30,000 30,000 Outside Engineering Services 19,000 24,000 24,000 67,000 Outside GIS Services (R&M and SMU) 9,483 9,483 9,483 28,450 DPW Wages and Fringe Expense 60,000 25,000 25,000 110,000 Note the $431,775 earmarked for 296,739 Water Meters -- 135,000 -- 135,000 Total DPW 1,419,143 386,000 -- 361,907 214,677 2,381,727 Street Repave projects. Fire Fire Station Garage Door w/Openers 20,000 20,000 Gear Room Remodel Station 1 55,000 55,000 The City has two possible sets of Total Fire 75,000 -- -- -- -- 75,000 projects for this $431,775. General Government -- -- City Hall Improvements 66,000 10,000 10,000 10,000 96,000 Total General Government 66,000 -- 10,000 10,000 10,000 96,000 If a 50% grant is received, the City will Other Trans. Annual Rail Spur Repairs 17,000 17,000 pursue Richmond Street. Total Other Transportation 17,000 -- -- -- -- 17,000 Parks Recreation Center Construction Project 1,000,000 4,250,000 5,250,000 If the grant fails to materialize, the City Recreation Center Foundation/Roof Change Order Land Preparation (Cemetery) 100,000 7,500 100,000 7,500 has several smaller pavement projects. Baseball/Softball Diamond Rehab 7,500 7,500 Total Parks 1,115,000 4,250,000 -- -- -- 5,365,000 Police Taser Replacement 20,239 20,239 Staying flexible allows the City to Radio Equipment 15,000 15,000 maximize available dollars spent on Drug/Tactical Equipment In-Squad Camera/BWC (1) 8,000 14,986 8,000 14,986 projects. Two Police Vehicles (pulled fwd to 2025) 80,850 80,850 Total Police 139,075 -- -- -- -- 139,075 Total Funding Sources 2,841,218 4,636,000 10,000 371,907 224,677 8,083,802 Page 15 of 52 Page 13 35.1%  2025-2026 Capital Projects The City borrowed $4.7 million in 2025 to finance 2025 and 2026 capital projects. 2025-2026 Capital Projects The City was required to stay flexible and monitor project spending closely with the Rec Center taking a $1.1 million share of the total borrowing. Below is the planned spending on debt funded General Government projects and the Rec Center project in 2025 and 2026. General Gov. Recreation November 2025 Purposes Center Total 2025 CIP (adjusted) 1,857,896 - 1,857,896 2026 CIP (proposed) 1,741,218 1,100,000 2,841,218 3,599,114 1,100,000 4,699,114 Estimated Excess / (Shortfall) vs. $4.7 million Budget: 886 Page 16 of 52 Page 14  Share of the Dollar 2026 Budgeted Share of $1.00 Share of Budgeted Expenditures (totals $1.00) Expenditures (Cents) General Fund City Cab, 2.4 Airport, 1.6 General Government (City Hall) 1,687,791 7.6 Public Safety (Police, Fire, Ambulance) 4,476,287 20.1 Public Works (Streets, Plowing, Waste Collection) 2,112,088 9.5 Health and Human Services (Cemetery) 136,744 0.6 Culture, Recreation and Education (Park & Rec.) 1,218,368 5.5 Conservation and Development (Forestry) 55,295 0.2 Transfers to Other Funds (Solid Waste Equipment) 46,000 0.2 9,732,572 43.7 Capital Projects, General Fund, Debt Service Fund 36.3 43.7 G.O. Debt Service (w/o Parks) 3,420,818 15.4 G.O. Debt Service (Parks) 125,675 0.6 3,546,493 15.9 Capital Projects Capital (Debt Funded) 2,841,218 12.8 Capital (Grant Funded) 4,636,000 20.8 Capital (Utility Funded) 606,584 2.7 8,083,802 36.3 Airport 359,237 1.6 City Cab 530,000 2.4 Debt Service Total 22,252,104 $ 1.00 Fund, 15.9 Page 17 of 52 Page 15  2026 Budget Public Hearing Presentation November 18, 2025 Page 18 of 52  2026 Electric Operating Budget Page 19 of 52  2026 Technology Department Operating Budget Page 20 of 52  2026 SMU Capital Improvements $1.5M Page 21 of 52 Wescott Substation  2026 Electric Capital Budget Total $1.5M • Pole Replacement - $125k • Tools, Equipment, & Vehicles - $110k • Transformer Purchases - $265k • Meter Purchases - $120k • Annual Blanket Work Orders - $299k • Substation Upgrades & Equipment - $225k • Underground Projects - $75k • Solar Primary Extension- $200k • Cutout Replacements- $95k Page 22 of 52  2026 Office Capital Budget • Landscape river rock around SMU Headquarters $10k Page 23 of 52  2026 Technology Capital Budget Total $35k  Fiber Cable Replacements/Additions - $30k  Fiber Hub Upgrades - $5k Page 24 of 52  Electric Rate Comparison Residential Monthly Electric Bill - 1000 kWh Rates as of 11-1-25 $220 $198 $200 $180 $173 $161 $160 $140 $134 $127 $129 $120 $100 Page 25 of 52 Shawano Gresham Utilities Oconto Falls WPS Alliant WE Energies Municipal Utilities Utilities  Thank you from the SMU Team! Page 26 of 52  City of Shawano 127 S Sawyer Street, Shawano, WI 54166 (715) 526-6138 Fax: (715) 526-5751 RESOLUTION NO. 89-25 SPONSORED BY: Finance Committee INTRODUCED BY: SECONDED BY: WHEREAS, this Resolution appropriates the necessary funds for the operation and administration of the City of Shawano for the year 2026. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Shawano that: 1. There is hereby appropriated out of the receipts of the City of Shawano for the year 2025, including monies received from the general property tax levy to the various purposes set up on the budget approved by Council on November 18, 2025, and attached herewith the purpose therein stated. 2. There is hereby levied against all taxable property of the City of Shawano, Wisconsin, a total tax levy of $16,167,550. This is a direct tax for: • City of Shawano $6,259,702 • Shawano School District $4,340,743 • Northeast Wisconsin Technical College $413,985 • Shawano County $2,914,927 • The State of Wisconsin $0.00 • Tax Increment Finance District #04 $331,224 • Tax Increment Finance District #06 $319,136 • Tax Increment Finance District #07 $1,412,868 • Tax Increment Finance District #08 $131,272 • Tax Increment Finance District #09 $43,693 3. The City Clerk and Finance Director are hereby authorized and directed to spread the said tax upon the current tax roll of the City of Shawano. Adopted: Signed: Bruce Milavitz, Mayor Signed: _ Lesley Nemetz, City Clerk Page 27 of 52  City of Shawano, Wisconsin FY 2026 Budget Hearing Presentation NOVEMBER 18, 2025 Page 28 of 52  Budget Summary (2026 vs 2025) 2026 City’s General Property Tax Levy • $6,259,702 (an increase of $151,786 or a 2.49%) Budget • Operating portion increased by $57,899 to $3,584,069 (>95% General Fund) Summary • Debt Service portion increased by $93,887 to $2,675,633 (general city projects) Combined Impact to City Property Taxpayers • $100,000 of Assessed Value will see a $60 increase or 3.16% • $31 from City Levy / $29 from combined County, School District, Tech College Tax Increment District (TID) Levy • $2,238,194 (an increase of $281,899 or a 14.4%, because of new development) City Property Taxes Fund a Portion of Different Budgets • General Fund ($9.7 million budget, 35.1% Levy supported) • Capital Program ($8.1 million budget, 35.1% Debt supported – future debt service) Page 29 of 52 Page 2  The City’s 2026 proposed property tax levy for general operations and debt service is $6,259,702. This is an increase of $151,786 or a 2.49% increase over last year’s general property tax levy. City’s General Purpose 2024/2025 2025/2026 Levy General Property Tax Levy General City Levy General City Levy Year Over Year Change General Fund 3,373,254 3,420,153 46,899 Airport Fund 143,916 154,916 11,000 City Cab Fund 9,000 9,000 - Operating Levy* 3,526,170 3,584,069 57,899 Debt Service Levy 2,581,746 2,675,633 93,887 Total General Levy** 6,107,916 6,259,702 151,786 2.49% * Operating Levy is subject to State of Wisconsin Levy Limit restrictions. ** Total Levy is subject to State of Wisconsin Expenditure Program restrictions. Page 30 of 52 Page 3  Below provides the Citywide Levy amounts for: • General Governmental Purposes (all four units) • Tax Incremental Districts (only for TID eligible projects) Citywide 2025/2026 2025/2026 2025/2026 Levy General City Levy TID Levy* Citywide Levy City of Shawano 6,259,702 1,005,820 7,265,522 Shawano School District 4,340,743 697,478 5,038,221 Shawano County 2,914,927 468,376 3,383,303 VTAE District 413,985 66,520 480,505 13,929,357 2,238,194 16,167,551 less School Tax Credit: (1,055,662) Net Citywide Levy: 15,111,889 * TID Levy paid by properties located in TIDs and retained for TID eligible projects. Page 31 of 52 Page 4  Citywide Tax Levy / Share of Dollar 2025/2026 Property Taxpayers in the City will Citywide Share of pay a total of $15,111,889 but local Citywide Levy Total (%) City of Shawano 6,259,702 38.7% governments will receive Shawano School District 4,340,743 26.8% $16,167,551 with state school Levy Shawano County VTAE District 2,914,927 413,985 18.0% 2.6% credit. The City of Shawano will receive 38.7% City of Shawano TIDs 2,238,194 13.8% Adjacent are the percent allocations. 16,167,551 100.0% of the Citywide Levy for general governmental purposes. Allocation of Total Citywide Levy 13.8% The City will also receive 13.8% of the 2.6% Citywide Levy for TID eligible projects, giving the City a combined 52.6% 38.7% share of the total Citywide Levy. 18.0% 26.8% City of Shawano Shawano School District Shawano County VTAE District City of Shawano TIDs Page 32 of 52 Page 5  All four taxing entities increased the dollars levied year-over-year. The Citywide property tax increase on $100,000 of assessed value is: Year-Over-Year • $60.00 • 3.16% Impact to City 2024/2025 2025/2026 Taxpayers Levy Citywide Mill Rate Levy Citywide Mill Rate City of Shawano 6,982,549 9.1043 7,265,522 9.4171 Shawano School District 5,005,915 6.5270 5,038,221 6.5302 Shawano County 3,177,615 4.1432 3,383,303 4.3852 VTAE District 451,810 0.5891 480,505 0.6228 15,617,889 20.3636 16,167,551 20.9554 (1,055,662) (1.3764) (1,055,662) (1.3683) 14,562,227 18.9872 15,111,889 19.5871 Taxes per $100,000 Assessed Value: $ 1,898.72 $ 1,958.71 Increase ($): $ 60.00 Increase (%): 3.16% Page 33 of 52 Page 6  Assessed vs. Equalized Property Values Assessed vs. We have presented the total property tax dollars to be levied for CY 2026, but how to allocate? Equalized Assessed Values: A local municipal assessor (e.g., Associated Appraisal) Property Values determines each taxable property's assessed value as of January 1st Equalized Values: • The Wisconsin Department of Revenue (DOR) adjusts this local assessed value to create the equalized value. • This adjustment factor includes elements like actual property sales within the municipality over the past year to account for variations in local assessment practices. • The stated goal is to ensure that each type of property has a comparable value across the state, regardless of local assessment methods, which helps ensure that property taxes are distributed fairly. The County, School District, and Tech College levy based on Equalized Values. The City takes Net Citywide Levy and allocates based on Assessed Values. Page 34 of 52 Page 7  Assessed Value (AV) and Equalized Value (EV) Trends The DOR’s two LARGE increases in Equalized Values (2022 & 2025), forces the City’s local assessor to “chase” the State. Low AV / EV ratios temporary lower Utility PILOT payments and assessed value of Manufacturing real estate. Assessed and Equalized Values Assessed to Equalized Value Ratio 1,000,000,000 105% 905,747,100 900,000,000 771,521,600 100% 800,000,000 718,697,200 700,000,000 598,206,400 95% 600,000,000 500,000,000 90% 400,000,000 85.18% 85% 83.23% 300,000,000 200,000,000 80% 100,000,000 0 75% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total Assessed Value Total Equalized Value DOR Assessed to Equalized Ratio Target (100%) Page 35 of 52 Page 8  City Property Taxes Fund a Portion of Different Budgets Budgeted General Property Taxes Other Major Name Rev. / Exp. ($) Share of Total Sources of Revenue General Fund 9,732,572 3,420,153 35.1% State Aids, Public Charges for Service, Special Assessments Debt Service Fund 3,546,493 2,675,633 75.4% TID financed projects paid with TID revenues Capital Projects* 8,083,802 - 0.0% General Obligation Debt Proceeds, Grants, Utility Funds Airport 359,237 154,916 43.1% Fuel Sales, Hangar Rentals City Cab 530,000 9,000 1.7% Operating Grants, New Vehicle Grants, Cab Fares 6,259,702 * Debt Service associated with General City projects financed with Debt Proceeds will be paid back with General Property Taxes. Page 36 of 52 Page 9  General Fund / Newspaper Format Adopted Proposed YOY Budget 2023 2024 2025 2026 Increase % REVENUES: Actual Actual Budget Budget (Decrease) Change Taxes $3,308,497 $3,433,685 $3,464,354 $3,523,452 $59,098 1.7% Special Assessments 1,487 5,490 301,275 310,275 9,000 2.9% General Fund Intergovernmental Revenues 2,198,707 2,625,758 2,700,885 2,795,538 94,653 3.4% Licenses and Permits 216,975 230,094 225,500 225,313 (187) -0.1% Fines, Forfeits and Penalties 88,008 87,012 100,000 96,000 (4,000) -4.2% Public Charges for Services 749,669 791,237 738,000 807,000 69,000 8.6% Intergovernmental Service Charges 645,056 681,908 688,054 763,715 75,661 9.9% The City proposes a balanced budget Miscellaneous Revenue 528,880 578,370 221,040 241,279 20,239 8.4% each year. Other Financing Sources (PILOT) 776,765 930,075 1,065,000 970,000 (95,000) -9.8% TOTAL REVENUES: $8,514,044 $9,363,629 $9,504,108 $9,732,572 $228,464 2.35% EXPENDITURES: Actual results can vary as illustrated by General Government $1,319,566 $1,576,763 $1,511,592 $1,687,791 $176,199 10.4% 2023 and 2024 audited results. Public Safety 3,894,167 4,130,817 4,327,800 4,476,287 148,487 3.3% Public Works 2,170,495 2,041,569 2,241,190 2,112,088 (129,102) -6.1% Health and Human Services 86,077 96,350 133,288 136,744 3,455 2.5% Culture, Recreation and Education 1,070,027 1,162,442 1,195,906 1,218,368 22,461 1.8% Conservation and Development 45,315 55,402 48,332 55,295 6,963 12.6% Transfers to Other Funds 46,000 46,000 46,000 46,000 0 0.0% TOTAL EXPENDITURES: $8,631,647 $9,109,343 $9,504,108 $9,732,572 $228,464 2.35% REVENUE OVER (UNDER) EXPENDITURES ($117,603) $254,286 ($0) $0 Page 37 of 52 Page 10  General Fund / 2026 Notable Adjustments Revenues (up $228,464) • Property Taxes up • State Shared Revenues up General Fund Expenditures (up $228,464) • City’s Health Insurance up slightly (surcharge reduced to 50%) • Cost of Living Adjustments for employee wages • Holding one position at Public Works open for 2026 • One Public Works employee moved to Finance Department • Full year Recreation Center expenses built into 2026 budget Page 38 of 52 Page 11  General Fund / Expenditure Trends General Fund Expenditure Trends $5,000,000 General Fund $4,500,000 4,476,287 Expenditure $4,000,000 Trends $3,500,000 $3,000,000 $2,500,000 2,112,088 $2,000,000 $1,687,791 $1,500,000 1,218,368 $1,000,000 $500,000 136,744 55,295 46,000 $0 General Government Public Safety Public Works Health and Human Culture, Recreation Conservation and Transfers to Other Services and Education Development Funds 2023 Actual 2024 Actual 2025 Budget 2026 Proposed Budget Page 39 of 52 Page 12  General Obligation State Grants Solid Waste Water Fund Sewer Fund Total 2026 Department Request Title Proceeds Airport Airport Capital Contribution 10,000 10,000 Total Airport 10,000 -- -- -- -- 10,000 DPW Major Street 2026 Center St (Main to Sawyer) 142,997 64,856 69,028 276,881 Major Street 2026 Pine St (Bartlett to Franklin) 77,713 26,000 12,107 115,820 Major Street 2026 N Washington St (GB to Fourth) 240,768 91,461 87,166 419,395 Street Repave 2026 Bay Lakes Road 30,000 270,000 300,000 Street Repave 2026 Industrial Dr 199,151 199,151 1,122,404 Street Repave Projects (Option A or Option B) 431,775 431,775 Contingency (Option A) 13,256 13,256 2026 Traffic Signal Replacements (two on E Green Bay) 10,000 90,000 100,000 Used SMU Bucket Truck 15,000 15,000 DPW Pickup Truck 50,000 50,000 Pavement Rejuvenator/Sealcoat 40,000 40,000 Capital Projects Asphalt Crack Filling Services 50,000 50,000 Sidewalk Replacement Program 30,000 30,000 Outside Engineering Services 19,000 24,000 24,000 67,000 Outside GIS Services (R&M and SMU) 9,483 9,483 9,483 28,450 DPW Wages and Fringe Expense 60,000 25,000 25,000 110,000 Note the $431,775 earmarked for 296,739 Water Meters -- 135,000 -- 135,000 Total DPW 1,419,143 386,000 -- 361,907 214,677 2,381,727 Street Repave projects. Fire Fire Station Garage Door w/Openers 20,000 20,000 Gear Room Remodel Station 1 55,000 55,000 The City has two possible sets of Total Fire 75,000 -- -- -- -- 75,000 projects for this $431,775. General Government -- -- City Hall Improvements 66,000 10,000 10,000 10,000 96,000 Total General Government 66,000 -- 10,000 10,000 10,000 96,000 If a 50% grant is received, the City will Other Trans. Annual Rail Spur Repairs 17,000 17,000 pursue Richmond Street. Total Other Transportation 17,000 -- -- -- -- 17,000 Parks Recreation Center Construction Project 1,000,000 4,250,000 5,250,000 If the grant fails to materialize, the City Recreation Center Foundation/Roof Change Order Land Preparation (Cemetery) 100,000 7,500 100,000 7,500 has several smaller pavement projects. Baseball/Softball Diamond Rehab 7,500 7,500 Total Parks 1,115,000 4,250,000 -- -- -- 5,365,000 Police Taser Replacement 20,239 20,239 Staying flexible allows the City to Radio Equipment 15,000 15,000 maximize available dollars spent on Drug/Tactical Equipment In-Squad Camera/BWC (1) 8,000 14,986 8,000 14,986 projects. Two Police Vehicles (pulled fwd to 2025) 80,850 80,850 Total Police 139,075 -- -- -- -- 139,075 Total Funding Sources 2,841,218 4,636,000 10,000 371,907 224,677 8,083,802 Page 40 of 52 Page 13 35.1%  2025-2026 Capital Projects The City borrowed $4.7 million in 2025 to finance 2025 and 2026 capital projects. 2025-2026 Capital Projects The City was required to stay flexible and monitor project spending closely with the Rec Center taking a $1.1 million share of the total borrowing. Below is the planned spending on debt funded General Government projects and the Rec Center project in 2025 and 2026. General Gov. Recreation November 2025 Purposes Center Total 2025 CIP (adjusted) 1,857,896 - 1,857,896 2026 CIP (proposed) 1,741,218 1,100,000 2,841,218 3,599,114 1,100,000 4,699,114 Estimated Excess / (Shortfall) vs. $4.7 million Budget: 886 Page 41 of 52 Page 14  Share of the Dollar 2026 Budgeted Share of $1.00 Share of Budgeted Expenditures (totals $1.00) Expenditures (Cents) General Fund City Cab, 2.4 Airport, 1.6 General Government (City Hall) 1,687,791 7.6 Public Safety (Police, Fire, Ambulance) 4,476,287 20.1 Public Works (Streets, Plowing, Waste Collection) 2,112,088 9.5 Health and Human Services (Cemetery) 136,744 0.6 Culture, Recreation and Education (Park & Rec.) 1,218,368 5.5 Conservation and Development (Forestry) 55,295 0.2 Transfers to Other Funds (Solid Waste Equipment) 46,000 0.2 9,732,572 43.7 Capital Projects, General Fund, Debt Service Fund 36.3 43.7 G.O. Debt Service (w/o Parks) 3,420,818 15.4 G.O. Debt Service (Parks) 125,675 0.6 3,546,493 15.9 Capital Projects Capital (Debt Funded) 2,841,218 12.8 Capital (Grant Funded) 4,636,000 20.8 Capital (Utility Funded) 606,584 2.7 8,083,802 36.3 Airport 359,237 1.6 City Cab 530,000 2.4 Debt Service Total 22,252,104 $ 1.00 Fund, 15.9 Page 42 of 52 Page 15 City of Shawano, 127 S Sawyer St, Shawano, WI Shawano Municipal Utilities, 122 N Sawyer St, Shawano, WI RESOLUTION NO. 90-25 SPONSORED BY: Utility Commission INTRODUCED BY: SECONDED BY: WHEREAS, the Shawano Municipal Utilities has established a budget for 2026; and WHEREAS, the Utility Commission has reviewed and recommended this budget to the Council for approval. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Shawano that the attached 2026 budget for the Shawano Municipal Utilities be approved. Adopted: Signed: Bruce Milavitz, Mayor Signed: Lesley Nemetz, City Clerk Page 43 of 52  2026 Budget Public Hearing Presentation November 18, 2025 Page 44 of 52  2026 Electric Operating Budget Page 45 of 52  2026 Technology Department Operating Budget Page 46 of 52  2026 SMU Capital Improvements $1.5M Page 47 of 52 Wescott Substation  2026 Electric Capital Budget Total $1.5M • Pole Replacement - $125k • Tools, Equipment, & Vehicles - $110k • Transformer Purchases - $265k • Meter Purchases - $120k • Annual Blanket Work Orders - $299k • Substation Upgrades & Equipment - $225k • Underground Projects - $75k • Solar Primary Extension- $200k • Cutout Replacements- $95k Page 48 of 52  2026 Office Capital Budget • Landscape river rock around SMU Headquarters $10k Page 49 of 52  2026 Technology Capital Budget Total $35k  Fiber Cable Replacements/Additions - $30k  Fiber Hub Upgrades - $5k Page 50 of 52  Electric Rate Comparison Residential Monthly Electric Bill - 1000 kWh Rates as of 11-1-25 $220 $198 $200 $180 $173 $161 $160 $140 $134 $127 $129 $120 $100 Page 51 of 52 Shawano Gresham Utilities Oconto Falls WPS Alliant WE Energies Municipal Utilities Utilities  Thank you from the SMU Team! 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